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HomeMy WebLinkAbout1.00 General Application Materials_PartE111111111111111111111111111111111111111 111 1111111111111 571158 10/20/2000 03:09P B1213 P568 11 ALSDORF 6 of 19 R 95. 00 D 0.00 GARFIELD COUNTY CO any part of a bifurcated Basalt Water Conservancy District contract issued to the Trust or any transferee of any of the Trust's Taps shall not constitute a default hereunder, but the Association may require that as a condition to initial or continuing service from the Water System, the owner of a Tap demonstrate to the reasonable satisfaction of the Association that such owner has adequate legal water rights to support such Tap or has furnished the Association with such rights.) Upon the permitted transfer of a Tap by the Trust or a transferee of a Tap belonging to the Trust hereunder, the transferor shall be released from any responsibility whatsoever for any costs or charges as a user of the Water System accruing in connection with such Tap after the date of transfer. Notwithstanding anything to the contrary contained herein, from and after the Activation of a Tap, such Tap (and the corresponding rights and obligations hereunder) shall be appurtenant to the fee simple title to the tract of land (or any portion thereof designated by the owner of the Tap at the time of Activation of the Tap) upon which is situated the dwelling receiving water service pursuant to such Tap. The owner of the fee simple title to such land shall automatically be the owner of such appurtenant Tap, and such Tap shall automatically pass with fee simple title to such land. 6. Insurance; Indemnification; Waiver of Subrogation. The Association shall fully indemnify, defend and hold the Trust, its Trustees, beneficiaries, agents and employees, harmless from all losses, costs, expenses and liabilities and every demand or claim or assertion of liability, or any claim or action founded thereon, arising or alleged to have arisen out of the ownership, use or non-use of the Water System or any act or omission in connection with the Administration of the Water System. The Association shall at all times maintain comprehensive general liability insurance with a responsible insurance company reasonably satisfactory to the Trust, properly protecting and indemnifying the Trust with combined single limit coverage in an amount reasonably satisfactory to the Trust, but not less than $1,000,000.00 per occurrence, covering all risks associated with the ownership and use of the Water System and the Administration of the Water System. The Trust shall be named as an additional insured on such policy, and the Association shall furnish the Trust with a certificate or certificates of such insurance, so naming the Trust and providing that such insurance cannot be terminated or amended to reduce the scope or amount of coverage except with ten (10) days prior written notice to the Trust. The Association hereby releases the Trust from any and all liability or responsibility to the Association or anyone claiming through or under the Association by way of subrogation or otherwise for any loss or damage to property which is or could be covered by "all-risk" or other property damage insurance, even if such loss or damage is caused by the fault or negligence of the Trust or anyone for whom the Trust may be responsible. The Association covenants that any insurance it obtains respecting the Water System or the Administration of the Water System shall contain an appropriate provision whereby the insurance company or companies consents to the release of liability and waiver of subrogation contained in this paragraph. 7. Relinquishment of Rights to Water System. If either the Association, the Trust or any other user of the Water System should ever desire to relinquish its rights in and to the Water System, it may do so by ceasing all use of the Water System and by conveying its interest in the Water System, the Water Rights and this Agreement to the Association or pro rata to the other users of the Water System for Whitecloud Ridge Domestic Water System Operating Agreement Page 6 1 111111 11111 111111 11111 111111 11111 11111 1111111111111111 571158 10/20/2000 03:09P 81213 P569 M ALSDORF 7 of 19 R 95. 00 D 0.00 GARFIELD COUNTY CO nominal consideration. Upon the execution and delivery of appropriate documents of conveyance, the relinquishing party shall lose all of its interest and rights in and to the Water System and this Agreement, shall no longer be considered to be a party to this Agreement, and shall also be absolved of any further responsibility with respect to the Administration of the Water System, except for previously accruing obligations. In the event that alternative municipal water service becomes available to the users of the Water System, ownership, operation and control, or management of the Water System may be turned over to the provider of such alternative municipal water service upon such terms and conditions as may be unanimously approved by the Association and the owners of the Taps belonging to the Trust hereunder. 8. Default, Remedies. a. Events of Default. The following shall be deemed to be an event of default by a party ("Event of Default"): If any party shall fail in the performance of or compliance with any of the covenants, agreements, terms or conditions contained in this Agreement and such failure shall continue for a period of thirty (30) days after written notice thereof from a nondefaulting party to the party failing to perform or comply, specifying in detail the nature of such default, or, in the case of a nonmonetary default which cannot with due diligence be cured within such thirty (30) day period, if said party fails to proceed promptly and with all due diligence to cure the same and thereafter to prosecute the curing of such failure with all due diligence (it being intended that in connection with a failure not susceptible of being cured with due diligence within thirty (30) days that the time within which to cure the same shall be extended for such period as may be necessary to complete the same with all due diligence, but in no event longer than ninety (90) days); b. Remedies. Upon the occurrence of an Event of Default by any party hereunder which is not cured within the time period permitted, a non -defaulting party shall be entitled to: i. Specific performance of the defaulting party's obligations hereunder and injunctive relief, as applicable, under the laws of the State of Colorado. ii. Demand payment of all amounts due the non -defaulting party under the terms of this Agreement, and demand the payment of all costs, damages, expenses and reasonable attorneys' fees of the non -defaulting party due to said default; iii. Remedy any Event of Default, and in connection with such remedy, the non -defaulting party may pay all expenses and employ counsel, and all sums so expended or obligations incurred by said party in connection therewith shall be paid by the defaulting party to the nondefaulting party upon demand, and on failure of such reimbursement, the nondefaulting party may, at its option, deduct all costs and expenses incurred in connection with remedying an Event of Default from the next sums subsequently becoming due to said defaulting party under the terms of this Agreement; and iv. No remedy herein conferred upon or reserved to a party is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be Whitecloud Ridge Domestic Water System Operating Agreement Page 7 111111111111111111111111111111111111111 111 111111111 1111 571158 10/20/2000 03:09P B1213 P570 M ALSDORF 8 of 19 R 95. 00 D 0. 00 GARFIELD COUNTY CO cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any breach by any party shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. c. Attorneys Fees. The parties agree that if any action at law or in equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement; the prevailing party shall be entitled to recover reasonable attorneys' fees from the nonprevailing party, which fees may be set by the Court in the trial of such action and may be enforced in a separate action brought for that purpose, and which fees shall be in addition to any other relief which may be awarded. 9. Miscellaneous. a. Successors and Assigns. This Agreement and the rights and obligations set forth herein shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Except as the Trust and transferees of Taps are permitted to assign their interest in and to this Agreement as provided in paragraph 5 hereof, this Agreement and the rights and obligations set forth herein may not be assigned by any party without the prior written consent of the other then parties hereto. At such time as Developer has properly completed its obligations under paragraph 2 hereof and, pursuant to paragraph 3 hereof, has properly transferred the Water System and the Water Rights to the Association and the Trust, respectively, then Developer's obligations hereunder shall be deemed to have been fully performed and Developer shall be released from, and no longer considered to be a party to, this Agreement. b. Severability; Partial Invalidity. If any one or more of the provisions of this Agreement, or the applicability of any such provision to a specific situation, shall be held invalid or unenforceable, such provision shall be modified to the minimum extent necessary to make it or its application valid and enforceable, and the validity and enforceability of all other provisions of this Agreement and all other applications of any such provisions shall not be affected thereby. c. Heading and Terms. The captions and headings herein are for convenience of reference only and shall not be used to construe the agreement of the parties as set forth herein. Words of any gender used herein shall be construed to include any other gender, and words in the singular shall be held to include the plural, unless the context requires otherwise. d. No Waiver. No delay of or forbearance by any party hereto in exercising any right or remedy hereunder and no performance of any act or matter which is not expressly required to be undertaken by such party shall be construed, respectively, to be a waiver of such party's rights or to represent any agreement by such party to undertake or perform such act or matter thereafter. e. Entire Agreement and Amendment. This Agreement contains the entire agreement of the parties relating to the subject matter hereof. No amendment or supplement hereto shall be binding unless by agreement in writing signed by all the then parties hereto. Whitecloud Ridge Domestic Water System Operating Agreement Page 8 1111111111111111111111111111111111111111111111111111111 571158 10/20/2000 03:09P B1213 P571 M ALSDORF 9 of 19 R 95. 00 D 0.00 GARFIELD COUNTY CO f. Notices. All notices or other communications (collectively, "notices") required or provided for under this Agreement shall be in writing and shall be served by hand delivery, by prepaid United States certified mail, return receipt requested, or by reputable overnight delivery service guaranteeing next -day delivery and providing a receipt. All notices shall be addressed to the parties at the respective addresses as set forth below, except that any party may, by notice in manner provided above, change this address for all subsequent notices. Notices shall be deemed served and received upon the earlier of the third day following the date of mailing (in the case of notices mailed by certified mail) or upon delivery (in all other cases). A party's failure or refusal to accept service of a notice shall constitute delivery of the notice. If to Developer: If to the Association: If to the Trust: g. Thomas W. Levitt Molly G. Levitt P.O. Box 414740 Kansas City, MO 64141 Whitecloud Ridge Homeowners Association c/o Lawrence R. Green, Esq. Delaney & Balcomb, P.C. P.O. Drawer 790 Glenwood Springs, CO 81601 The 1993 Thomas W. Levitt Family Trust P.O. Box 414740 Kansas City, MO 64141 Governing Law. This Agreement shall be governed by and construed in accordance with Colorado Law. Venue for any legal action arising out of this Agreement shall lie solely in Garfield County, Colorado. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. DEVELOPER: JLF7fL THOMAS W. LEVITT Val MOLL G. LEVITT Whitedoud Ridge Domestic Water System Operating Agreement Page 9 15/t8!11111/1/10111111101!!!11Y1P1141511/1211111501111III1111111111111 P572 t1 ALSDORF 10 of 19 R 95. 00 D 0.00 GARFIELD COUNTY CO ASSOCIATION: WHITECLOUD RIDGE HOMEOWNERS ASSOCIATION, a Colorado non-profit Corporation TRUST: STATE OF COUNTY OF ss. By //1,4~-, Thomas W. Levitt, President THE 1993 THOMAS W. LEVITT FAMILY TRUST, under agreement dated January 20, 1993 74," By By Thomas W. Levitt, Trustee John C. Davis, Trustee The f6regoing instrument was acknowledged before me this Thomas W. Levitt and Molly G. Levitt. CAROL RAKOSKI Notary Public —Notary Seal STATE OF MISSOURI Jackson Cc7 r,ty My Commission Expires: ;,;:;;; official se day o OTARY PUBLI My commission expires: / Y f' C' Address: r kS -s Q l fle v41pb Whitecloud Ridge Domestic Water System Operating Agreement Page 10 1997, by 1 111111 11111 111111 11111 111111 11111 11111 111 111111 111 1111 571158 10/20/2000 03:09P B1213 P573 M ALSDORF 11 of 19 R 95.00 D 0.00 GARFIELD COUNTY CO STATE OF COUNTY OF 42J-(1).- ss. The P:s egoing instrument was acknowledged beforeg me this Y day o , 1997, byThomasW. Levitt, President of Whitecloud Ridge Homeowners Association, a Colorado non-profitCorporation. WITNESS- Illy hand arid ufIic.d CAROL RAKOSKI Notary Public —Notary Seal STATE OF MISSOURI Jackson County My Commission Expires: June 15, 1998 My commission expires Address: ! AO I k) ML11 414-1k1 A -a 0- STATE OF COUNTY OF 27 rna( i h 1 seal. a TARP P : IC X519 The f going instrument was acknowledged before me this I r day /7/. 1997, byThomasW. evitt and John C. Davis, Trustees of The 1993 Thomas W. Levitt Family Trust, under agreement dated January 20, 1993. k CAROLRAK Notary Public —Notary Seal STATE OF MISSOURI Jackson Cunt INity urat; 1 My commission expires: Address: 10\0( L 1A -rt S A$ Gt I g\cvittlwateragr.169\June 24, 1997 official seal. TARY PUBLIC c) ( 9 E eT Yv10 (A104, 4v Whitecloud Ridge Domestic Water System Operating Agreement Page 11 MOM fg 000 In 0 E a A PARCEL OF LAND SITUATED IN THE SWI/4 OF SECTION 28 AND THE SEI/4SE1/4 E z OF SECTION 29 TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL 0 MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID PROPERTY BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: r)W mow N IL momm a COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 28, A GARFIELD ez COUNTY SURVEYOR BRASS CAP IN PLACE, THE TRUE POINT OF BEGINNING; Gl THENCE S 89055'39" W ALONG THE SOUTHERLY LINE OF SAID SECTION 29 1324.02 e9 0 FEET TO THE EAST SIXTEENTH CORNER OF SECTION 29 AND SECTION 32; THENCE MINm m N 03 '37'21" E ALONG THE WESTERLY LINE OF THE SEI/4SE1/4 OF SAID SECTION N GI 291376.58 FEET TO THE SOUTHEAST SIXTEENTH CORNER OF SECTION 29; THENCE N °1 N 89 '27'43" E ALONG THE NORTHERLY LINE OF SAID SE1 /4SEI /41355.71 FEET TOIMM a THE SOUTH SIXTEENTH CORNER OF SECTION 28 AND SECTION 29; THENCE co N 04 '53' 43" E ALONG THE WESTERLY LINE OF SAID SECTION 2814.53 FEET TO A to c POINT IN AN EXISTING FENCE; THENCE LEAVING SAID WESTERLY LINE THE FOLLOWING FIVE (5) COURSES ALONG SAID EXISTING FENCE: 1. S 89'50'52" E 489.38 FEET 2. N 88 °49'00" E 162.00 FEET 3. S 89 °21'00" E 230.00 FEET 4. N 89 °48'00" E 174.98 FEET 5. S 89000'00" E 277.90 FEET; THENCE LEAVING SAID EXISTING FENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 120.00 FEET AND A CENTRAL ANGLE OF 77047'32" A DISTANCE OF 162.93 FEET (CHORD BEARS S 42 °41'34" W 150.70 FEET); THENCE S 81°35'20" W 281.45 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 220.00 FEET AND A CENTRAL ANGLE OF 52 °15'54" A DISTANCE OF 200.68 FEET (CHORD BEARS S 55 °27'23" W 193.80 FEET); THENCE S 29°19126" W 99.23 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 280.00 FEET AND A CENTRAL ANGLE OF 17 °47149" A DISTANCE OF 86.97 FEET (CHORD BEARS S 38 '13'21" W 86.62 FEET); THENCE S 36°43'42" E 100.68 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 05 008152" A DISTANCE OF 35.94 FEET (CHORD BEARS S 34 °09'16" E 35.93 FEET); THENCE S 31 034150" E 76. 82 FEET; THENCE ALONG THE ARC OFA CURVE TO THE LEFT HAVING A RADIUS OF 170.00 FEET AND A CENTRAL ANGLE OF 68'26'41" A DISTANCE OF 203.08 FEET (CHORD BEARS S 65 '48'11" E 191.22 FEET); THENCE N 79 °58'28" E 155.83 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 17 °43' 43" A DISTANCE OF 154.71 FEET (CHORD BEARS N 71 006137" E 154.09 FEET); THENCE N 62 014146" E 15.12 FEET TO A POINT ON THE EASTERLY LINE OF SW1 /4S W1/4 OF SECTION 28; THENCE S 03 °23'54" W ALONG SAID EASTERLY LINE 801.53 FEET TO THE WEST SIXTEENTH CORNER OF SECTION 28 AND SECTION 33; THENCE S 89040'17" W ALONG THE SOUTHERLY LINE OF SAID SECTION 281371.75 FEET TO THE TRUE POINT OF BEGINNING; SAID PARCEL CONTAINING 79.451 ACRES, MORE OR LESS. Exhibit A 0 aa- E NI 0 d4 PI la w OAC NM=°° PROPERTY DESCRIPTION Exhibit B m 0 en THE 1993 THOMAS W. LEVITT FAMILY TRUST PROPERTY (MODIFIED AGAIN) A PARCEL OF LAND SITUATED IN THE SW1/4 AND THE W1/2SE1/4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 63°50'49" E 1573.54 FEET TO A POINT ON THE EASTERLY LINE OF THE SWI/4SW1/4 OF SAID SECTION 28, THE TRUE POINT OF BEGINNING; THENCE N 03023'54" E ALONG SAID EASTERLY LINE 114.62 FEET; THENCE LEAVING SAID EASTERLY LINE S 62°14' 46" W 15.12 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 17°43'43" A DISTANCE OF 154.71 FEET CHORD BEARS S 71°06'37" W 154.09 FEET); THENCE S 79°58'28" W 155.83 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 170.00 FEET AND A CENTRAL ANGLE OF 68°26'41" A DISTANCE OF 203.08 FEET CHORD BEARS N 65°48'11" W 191.22 FEET); THENCE N 31°34'50" W 76.82 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 05°08'52" A DISTANCE OF 35.94 FEET (CHORD BEARS N 34°09'16" W 35.93 FEET); THENCE N 36°43' 42" W 100.68 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 280.00 FEET AND A CENTRAL ANGLE OF 17°47'49" A DISTANCE OF 86.97 FEET (CHORD BEARS N 38° 13' 21 " E 86.62 FEET); THENCE N 29°19'26" E 99. 23 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 220.00 FEET AND A CENTRAL ANGLE OF 52°15'54" A DISTANCE OF 200.68 FEET (CHORD BEARS N 55°27'23" E 193.80 FEET); THENCE N 81°35'20" E 281.45 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 120.00 FEET AND A CENTRAL ANGLE OF 77°47'32" A DISTANCE OF 162.93 FEET (CHORD BEARS N 42°41'34" E 150.70 FEET) TO A POINT ON THE EASTERLY LINE OF THE NW1/4SW1 /4 OF SAID SECTION 28; THENCE N 03°23' 54" E ALONG SAID EASTERLY LINE 105.57 FEET; THENCE LEAVING SAID EASTERLY LINE S 89°45'54" E 603.84 FEET; THENCE N 69°11'09" E 876.78 FEET TO A POINT ON THE CENTERLINE OF HARMONY LANE; THENCE THE FOLLOWING THIRTEEN (13) COURSES ALONG SAID CENTERLINE: 1. S 00°34'25" W 226.26 FEET 2. S 02°28'40" E 91.04 FEET 3. S 06°19'45" E 119.31 FEET 4. N 89°44'08" W 5.95 FEET uniii 11111 111111 11111 imu 1111111111 iii 111111 111 ini 571158 10/20/2000 03:09P 81213 P576 M ALSDORF 14 of 19 R 95.00 D 0.00 GARFIELD COUNTY CO PAGE NO. 2 THE 1993 THOMAS W. LEVITT FAMILY TRUST PROPERTY (MODIFIED AGAIN) 5. S 01°14'48" E 280.88 FEET 6. S 02°01'27" W 115.18 FEET 7. S 00°39' 06" W 148.53 FEET 8. S 01°44'55" E 133.99 FEET 9. S 04°29'01" E 106.53 FEET 10. ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 1475.00 FEET AND A CENTRAL ANGLE OF 03°53' 15" A DISTANCE OF 100.08 FEET (CHORD BEARS S 06°25'38" E 100.06 FEET) 11. S 08°22'15" E 67.98 FEET 12. ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 126.84 FEET AND A CENTRAL ANGLE OF 43°01'03", A DISTANCE OF 95.23 FEET (CHORD BEARS S 13°08' 18" W 93.01 FEET) 13. S 38°11'47" W 18.82 FEET THENCE LEAVING SAID CENTERLINE S 89°43'12" W 30.74 FEET; THENCE N 01°52'30" E 329.19 FEET; THENCE N 89°58'25" W 110.00 FEET; THENCE N 02°06' 23" E 49.20 FEET; THENCE S 89°56'49" W 1353.02 FEET TO THE TRUE POINT OF BEGINNING; SAID PARCEL CONTAINING 36.607 ACRES, MORE OR LESS. IGS OLIN Tie r NG NEER/NG 111111111111111111111111111111111111111 111 min ui ini 571158 10/20/2000 03:09P 81213 P577 M ALSDORF 15 of 19 R 95.00 D 0.00 GARFIELD COUNTY CO Exhibit C, page 1 of 5 LEVITT WELL #2 A WELL SITUATED IN THE NE1/4SW1./4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; THE LOCATION OF SAID WELL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 56° 28'00" E 2681.24 FEET TO SAID LEVITT TRUST WELL #2. 923 Cooper Avenue • Glenwood Springs, CO 81601 Telephone: (970) 945-8676 • FAX: (970) 945-2555 1111111 11111 111111 11111 11111111111111111111111111111111 571158 10/20/2000 03:09P 81213 P578 M ALSDORF 16 of 19 R 95.00 D 0.00 GARFIELD COUNTY CO Exhibit C, page 2 of 5 LEVITT WELL #3 A WELL SITUATED IN THE NEI/4SW I/4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; THE LOCATION OF SAID WELL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 55°56'20" E 2635.24 FEET TO SAID LEVITT TRUST WELL #3. 923 Cooper Avenue • Glenwood Springs, CO 81601 Telephone: (970) 945-8676 • FAX: (970) 945-2555 GM Oi 4VTR r NGN1/££R/NG 1111111 11111 1111111111111111111111 11111 111 111111 111 1111 571158 10/20/2000 03:09P 81213 P579 M ALSDORF 17 of 19 R 95.00 D 0.00 GARFIELD COUNTY CO Exhibit C, page 3 of 5 100' DIA. UTILITY AND ACCESS EASEMENT DESCRIPTION A 100.00' DIAMETER CIRCLE OF LAND SITUATED IN THE NE1/4SW1/4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID EASEMENT BEING A 50.00' RADIUS FROM THE FOLLOWING DESCRIBED RADIUS POINT: COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 59°56' 09" E 3133.38 FEET TO SAID RADIUS POINT. 95060.05 9510601WATEREAS.REV 923 Cooper Avenue • Glenwood Springs, CO 81601 Telephone: (970) 945-8676 • FAX: (970) 945-2555 IGfrf 401.1N TR r NO/NL-E/20•10 1111111111111111111111111111111111111101110111111111 571158 10/20/2000 03:09P 81213 P580 M ALSDORF 18 of 19 R 95.00 D 0.00 GARFIELD COUNTY CO Exhibit C, page 4 of 5 30' UTILITY AND ACCESS EASEMENT DESCRIPTION A 30.00' WIDE STRIP OF LAND SITUATED IN THE E1/2SW1/4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID EASEMENT LYING 15.00 FEET TO EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 61°55'01" E 1605.16 FEET TO THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID EASTERLY LINE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 545.00 FEET AND A CENTRAL ANGLE OF 01°15'41", A DISTANCE OF 12.00 FEET (CHORD BEARS N 62°52'37" E 12.00 FEET); THENCE N 62°14'46" E 15.13 FEET; THENCE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 338.02 FEET AND A CENTRAL ANGLE OF 12°43' 20", A DISTANCE OF 75.05 FEET (CHORD BEARS N 55°53'06" E 74.90 FEET); THENCE N 49°31'26" E 224.71 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 385.00 FEET AND A CENTRAL ANGLE OF 37°55'26", A DISTANCE OF 254.83 FEET (CHORD BEARS N 68°29'09" E 250.20 FEET); THENCE N 87°26'52" E 24.64 FEET; THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 285.00 FEET AND A CENTRAL ANGLE OF 26°48'21", A DISTANCE 133.34 FEET (CHORD BEARS S 79°08' 57" E 132.13 FEET); THENCE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 265.00 FEET AND A CENTRAL ANGLE OF 00°54'05", A DISTANCE OF 4.17 FEET (CHORD BEARS S 66°11'49" E 4.17 FEET); THENCE N 00°00'00" E 469.68 FEET; THENCE N 79°28' 45" E 658.74 FEET TO A POINT ON A 50' RADIUS WATER TANK EASEMENT, THE TERMINUS, WHENCE THE SOUTHWEST CORNER OF SAID SECTION 28 BEARS S 59°37'31" W 3086.30 FEET. 95060.05 6/23/97 9510601WATEREAS.REV 923 Cooper Avenue • Glenwood Springs, CO 81601 Telephone: (970) 945-8676 • FAX: (970) 945-2555 1111111111111111111111111111111111111111111111111111111 571158 10/20/2000 03:09P 81213 P581 N ALSDORF 19 of 19 R 95.00 D 0.00 GARFIELD COUNTY CO Exhibit C, page 5 of 5 40' UTILITY AND ACCESS EASEMENT DESCRIPTION A 40.00' WIDE STRIP OF LAND SITUATED IN THE NE1/4SW1/4 AND THE NW1/4SE1/4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID EASEMENT LYING 20.00 FEET TO EACH SIDE OF THE FOLLOWING DESCRIBEDCENTERLINE: COMMENCING AT THE SOUTHWEST CORNER OF SAID SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 60°37'21" E 3307.12 FEET TO A POINT ON THE EASTERLY BOUNDARY OF THE 1993 THOMAS W. LEVITT FAMILY TRUST PROPERTY, TH T PIIN • B N ; THENCE LEAVING SAID EASTERLY LINE S 80° 04'44" W 131.91 FEET TO A POINT ON A 50' RADIUS WATER TANK EASEMENT, THE TERMINUS, WHENCE THE SOUTHWEST CORNER OF SAID SECTION 28 BEARS S 59°49'54" W 3183.05 FEET. 95060.05 6/23/97 9510601WATEREAS.REV 923 Cooper Avenue • Glenwood Springs, CO 81601 Telephone: (970) 945-8676 • FAX: (970) 945-2555 v. WHITECLOUD RIDGE HOMEOWNERS ASSOCIATION RESOLUTION OF BOARD OF DIRECTORS CONCERNING THE ADOPTION OF RULES AND REGULATIONS The Whitecloud Ridge Homeowners Association, a Colorado non-profit corporation (the “Association”), is the homeowners association for the Whitecloud Ridge Subdivision (the “Subdivision”), as set forth in that certain Declaration of Protective Covenants of Whitecloud Ridge Subdivision, recorded in the real property records of Garfield County, Colorado, on October 20, 2000, at reception number 571156 (the “Original Declaration”). The Original Declaration was amended by that certain First Amendment to and Supplemental Declaration of Protective Covenants of Whitecloud Ridge Subdivision, recorded in the real property records of Garfield County, Colorado, on February 23, 2022, at reception number 971321 (the “First Amendment to Declaration”; the Original Declaration and the First Amendment to Declaration collectively are referred to as the “Declaration”). The Board of Directors of the Association, acting without a meeting, hereby adopts the following Resolution concerning the adoption of Rules and Regulations for the Association. WHEREAS, SKYFOOZE1, LLC, a Pennsylvania limited liability company, is the Declarant (the “Declarant”) for the Subdivision and the sole Member of the Association. WHEREAS, Declarant owns all of the Lots within the Subdivision and therefore is the sole Member of the Association. WHEREAS, Declarant, acting in its capacity as the sole Member of the Association, appointed Skyler Fussner and Jeffrey Fussner to the Board of Directors of the Association pursuant to a resolution dated January 27, 2022. There are no other members of the Board of Directors. WHEREAS, the Board of Directors has determined that it is in the best interests of the Association to adopt Rules and Regulations for the Association for various purposes, including without limitation, the interpretation and implementation of the Declaration, the operation of the Association, the use and enjoyment of Association Properties, and the use of any other property within the Common Interest Community, including Lots. NOW, THEREFORE, BE IT RESOLVED: 1. Pursuant to Section 11.14 of the Declaration, the Board of Directors hereby adopts as the “Rules and Regulations” of the Association, as such term “Rules and Regulations” is defined in the Declaration, the Rules, Regulations, & Policies attached hereto as Exhibit A. Effective as of the execution of this Resolution, the attached Exhibit A are the Rules and Regulations for the Association. [signature page follows] 2 IN WITNESS WHEREOF, the undersigned, being the sole members of the Board of Directors, have executed this Resolution effective as of the 9th day of March, 2022. ________________________________________ Skyler Fussner, Board Member ________________________________________ Jeffrey Fussner, Board Member 18389497_v1 3 EXHIBIT A RULES & REGULATIONS OF WHITECLOUD RIDGE HOMEOWNERS ASSOCIATION [see attached] WHITECLOUD RIDGE HOMEOWNERS ASSOCIATION RULES, REGULATIONS & POLICIES Adopted by the Board of Directors of Whitecloud Ridge Homeowners Association Effective March 9, 2022 i TABLE OF CONTENTS Page I. ARTICLE I: INTERPRETATION & FEES APPLICABLE TO LOT SALES .............. 1 1. Interpretation.. ................................................................................................................................... 1 2. Transfer Fee ...................................................................................................................................... 1 3. Exempt Transfers .............................................................................................................................. 1 II. ARTICLE II: POTABLE WATER SYSTEM ................................................................ 2 1. Potable Water System ....................................................................................................................... 2 2. Non-Subdivision Property Water Use ............................................................................................... 2 3. Owner’s Responsibility to Comply with Rules and Regulations ...................................................... 2 4. Allocation of Potable Water .............................................................................................................. 2 5. Installation and Maintenance ............................................................................................................ 2 6. Backflow Prevention Devices ........................................................................................................... 5 7. Emergencies/Water Shortages .......................................................................................................... 6 8. Potable Water Assessments .............................................................................................................. 7 III. ARTICLE III: IMPOSITION OF FINES AND SUSPENSION OF SERVICES ........ 7 1. Demand ............................................................................................................................................. 7 2. Notice ................................................................................................................................................ 7 3. Hearing .............................................................................................................................................. 7 4. Proof .................................................................................................................................................. 7 5. Appeal ............................................................................................................................................... 8 6. Allocation of Attorney Fees and Costs ............................................................................................. 8 7. Non-Applicability of Penalty Policy ................................................................................................. 8 8. Rights to Immediate Relief ............................................................................................................... 8 IV. ARTICLE IV: ALTERNATIVE DISPUTE RESOLUTION ........................................ 8 1. Agreement to Encourage Resolution of Disputes Without Litigation .............................................. 8 2. Alternative Dispute Resolution Procedures. ..................................................................................... 9 3. Settlement ....................................................................................................................................... 10 V. ARTICLE V: ARCHITECTURAL REVIEW PROCESS & GUIDELINES ............ 10 1. Exterior Materials ........................................................................................................................... 10 2. Roofs and Eaves .............................................................................................................................. 11 3. Landscaping .................................................................................................................................... 11 4. Architectural Review Fee................................................................................................................ 11 5. Construction Damage Deposit ........................................................................................................ 12 6. Construction Fines .......................................................................................................................... 12 ii 7. Pools ................................................................................................................................................ 12 8. Sheds ............................................................................................................................................... 13 9. Yard Structures ............................................................................................................................... 13 VI. ARTICLE VI: OWNER EDUCATION......................................................................... 14 VII. ARTICLE VII: PUBLIC DISCLOSURES .................................................................... 14 VIII. ARTICLE VIII: MEETINGS ..................................................................................... 14 1. Notice .............................................................................................................................................. 14 2. Attendance ...................................................................................................................................... 15 3. Comment ......................................................................................................................................... 15 4. Executive Session ........................................................................................................................... 15 5. Rules and Regulations ..................................................................................................................... 15 IX. ARTICLE IX: NOXIOUS WEED CONTROL ............................................................ 15 X. ARTICLE X: IRRIGATION COMPANY SHARES ................................................... 16 1. Association’s Ownership in the Missouri Heights-Mountain Meadow Irrigation Company ......... 16 2. Allocation of Water Available Under the Irrigation Company Shares ........................................... 16 3. Irrigation Water Assessments ......................................................................................................... 17 XI. ARTICLE XI: MISCELLANEOUS PROVISIONS .................................................... 17 1. Restrictions on Aircraft. .................................................................................................................. 17 2. Leasing of Lots ............................................................................................................................... 17 3. Marijuana Grow Houses ................................................................................................................. 17 1 I. ARTICLE I: INTERPRETATION & FEES APPLICABLE TO LOT SALES 1. Interpretation. Capitalized terms used herein but not defined herein shall have the meaning ascribed to them in the Declaration of Protective Covenants of Whitecloud Ridge Subdivision, recorded in the real property records of Garfield County, Colorado, at reception number 571156, and all amendments thereto (as amended, the “Declaration”). 2. Transfer Fee. In the event any Lot is sold or otherwise transferred, the Association shall assess a transfer fee equal to 1% of the sale price against the purchaser or the transferee, not to exceed $15,000.00 in any instance (the “Transfer Fee”). The Transfer Fee shall be due and payable at the closing of the sale or transfer that triggers such fees. The purchaser, or the transferee, shall deliver such documents requested by the Association to verify the sale of a Lot and the sale price of the Lot. The sale price of the Lot shall be the amount of the consideration paid by the purchaser or the transferee, not including any deductions for prorations, to the seller in order to obtain record title to the Lot. For any Transfer Fee that is assessed but unpaid, whether in whole or in part, the Association shall have the right to record a lien against the Lot that was the subject of the transaction that generated such Transfer Fee. 3. Exempt Transfers. The following transfers of a Lot are exempt from the Transfer Fee: A. In the event of any default on the part of an Owner under any first Mortgage that entitles the holder thereof to foreclose the same, any sale under such foreclosure, including delivery of a deed in lieu of foreclosure, shall be made free and clear of the Transfer Fee; B. The transfer by operation of law, of a deceased joint tenant’s interest to the surviving joint tenant(s); C. The transfer of a deceased’s interest to a devisee or devisees by will or to his heirs at law under intestacy laws; D. The transfer of an Owner’s interest, in whole or in part, to a blood relative, including where the Owner and the transferee are legal entities and the members, owners, shareholders, partners, or beneficiaries, under such legal entities are all blood relatives; E. The transfer of an Owner’s interest by treasurer’s deed pursuant to a sale for delinquent taxes; F. The transfer of all or any part of a partner’s interest as a result of withdrawal, death, or otherwise, to the remaining partners carrying on the partnership business, and/or of a partner’s or partners’ interests between one or more partners, and/or to persons becoming partners; G. The transfer of a corporation’s interest to the persons formerly owning the stock of the corporation as a result of dissolution. A transfer to the resulting entity following a corporate merger or consolidation; provided, however, that at least fifty percent 2 (50%) of the stock of the resulting entity is owned by the stockholders of the corporation formerly owning the Lot; and H. The transfer between co-tenants of all or a part of a co-tenant’s interest. If the purchaser or transferee of a Lot can establish to the satisfaction of the Board that a transfer is exempt from the Transfer Fee, then such transfer will not be subject to the Transfer Fee. II. ARTICLE II: POTABLE WATER SYSTEM 1. Potable Water System. The Association operates a community-treated water system (the “Potable Water System”), defined as the “Water System” in the Amended and Restated Whitecloud Ridge Domestic Water System Operating Agreement recorded in the Records of the Garfield County Clerk and Recorder on February 23, 2022, as Reception No. 971324 (the “Domestic Water System Operating Agreement”), which was constructed to provide potable water service to Lots and property within the Whitecloud Ridge Subdivision and to the real property described in the attached Exhibit A (the “Non-Subdivision Property”). The Association owns and manages certain water rights, wells, easements, primary water system components, and personal property, together with the right and privilege to conduct, maintain, and operate the Potable Water System for the Owners of the Whitecloud Ridge Subdivision and for other users of the Potable Water System, all in accordance with the Domestic Water System Operating Agreement. 2. Non-Subdivision Property Water Use. If the Potable Water System serves all or any portion of the Non-Subdivision Property, then such service of the Potable Water System to the Non-Subdivision Property and any use of the Potable Water System on the Non- Subdivision Property shall be subject to the terms of Articles II, III, and IV of these Rules and Regulations. The owner of the Non-Subdivision Property, or the owner of any portion thereof, is considered an Owner for the purposes of Articles II, III, and IV. The Non- Subdivision Property, and any portion thereof that is further subdivided, is considered a Lot for purposes of Article II, III, and IV. 3. Owner’s Responsibility to Comply with Rules and Regulations. It is the responsibility of every Owner to abide by the most current set of Rules and Regulations. Violation of any rule or regulation by an Owner may jeopardize the Association’s water rights, and consequently any Owner in violation of any Association rules and regulations may result in the termination of the right of that Owner to receive water service from the Potable Water System. 4. Allocation of Potable Water. The Owner of each Lot is subject to the limitations on the use of potable water as set forth in the attached Exhibit B. For any amount of potable water provided to a Lot in excess of the monthly allocation amounts set forth in the Exhibit B, the charges specified in the attached Exhibit C shall apply. 5. Installation and Maintenance. A. Other than those wells already in existence on certain Lots, individual wells shall not be permitted on any Lot, except that the Board may approve construction of one 3 or more new wells to replace, or to supplement the water supply from, the existing wells that are components of the Potable Water System. B. Individual Owners are responsible for the extension, construction, and maintenance of any water lines necessary to service any structures that may be built on a Lot. C. Only one tap into the Potable Water System is allowed per Lot. Notwithstanding the previous sentence, up to seven (7) taps are allowed on the Non-Subdivision Property, whether or not the Non-Subdivision Property is further subdivided, consistent with the Domestic Water System Operating Agreement. D. All water use from the Potable Water System is required to be individually metered, and the cost of the meter, installation, repair, and replacement thereof shall be the responsibility of the Owner. Each Owner is required to have a Potable Water System meter on the Lot. The water meter must be installed after the curb stop valve for the Lot adjacent to a community street at a location approved by the Architectural Committee; or, for Non-Subdivision Property, the water meter must be installed after the curb stop valve for every tap within the Non-Subdivision Property that is adjacent to a street at a location and in a manner such that the water meter is reasonably accessible year-round. The Association shall have no obligation to provide water service to Lots or taps without domestic water meters. i. Meters shall be read at least quarterly, and the readings will be kept on file by the Board or by a management firm retained by the Board. ii. Owners exceeding the number of gallons that they are allocated per month will be assessed a water surcharge as provided herein. iii. Any Owner who does not have a working domestic meter shall be subject to fines as outlined in Article III, Imposition of Fines and Suspension of Services. Failure to install or maintain a working domestic meter may result in the termination of domestic water service to the Lot, subject to written notice to the Owner and opportunity to be heard in accordance with the procedure set forth herein for imposition of fines. E. The water line from the Association’s Potable Water System to a home may not be larger than one inch. F. No pressure augmentation system or device may be used to create a suction on the line from the Association’s Potable Water System to a home on a Lot. G. For any new tap, the Owner requesting such tap must pay to the Association a nonrefundable $12,000.00 fee prior to installing such tap. In addition, if the Owner of Lot 12 or Lot 13 desires to construct a second dwelling unit on the Lot, then the Owner must pay to the Association a nonrefundable $8,400.00 fee prior to constructing the second dwelling unit. The Board in its sole discretion periodically may change this fee to reflect increasing water system costs. 4 H. The number of outside hose bibs is limited to two (2), and lines to such bibs may not exceed 3/4 inch. I. Under no circumstances may the Potable Water System be used to create or fill a water feature, hot tub, or a swimming pool. Water features, swimming pools and outdoor hot tubs may only be filled with water provided from an outside source with proof of purchase of the water submitted to the Board. J. An Owner may use the Potable Water System to irrigate a portion of its Lot in a manner consistent with the potable water allocations set forth in Exhibit B; provided, however, the Board, in its reasonable discretion, may impose conservation measures upon such use of potable water for irrigation purposes, or the Board, in its reasonable discretion, may prohibit the use of potable water for irrigation purposes. Use of the Potable Water System for outdoor irrigation in a manner inconsistent with the allocations set forth in Exhibit B or with the conservation measures or restrictions imposed by the Board may result in fines or suspension of service. K. The Owner is responsible for the maintenance, repair, and replacement of the water line from the Association’s Potable Water System to the home, including the repair, maintenance, or replacement of the water meter. Owners who seek to replace or move the water line from the meter to the home must get permission from the Association and may be required to deposit such amounts as may be determined by the Board to cover the expense that might be incurred by the Association. L. Inspectors and other duly authorized employees of the Association with proper credentials shall be permitted to enter upon all Lots and other properties served by the Potable Water System or serving the Potable Water System at reasonable times as necessary for the purpose of inspection, observation, measurement, sampling and testing and repairing any of the water or service lines, and checking for leaks or cross-connections. M. All Owners must provide the contact information for a person located within 50- miles of the Whitecloud Ridge Subdivision who can respond to emergencies or other water issues within a 24-hour period. This information shall include both a phone number and e-mail address. If an Owner resides in the house but will be out of town for an extended period of time (2 weeks or more), the Owner must provide the Association with an alternate contact person. The contact person must be able to physically enter the property. N. If contacted about a water issue, the contact person must respond to the Association representative within 24 hours. If the Owner or contact person fails to respond within 24 hours, the Association may take such steps as it deems necessary to address the problem, which depending on circumstances, include imposition of fines, curtailment of service or suspension of service as provided in Article III, below. 5 O. If a leak is found by the Association in a service line at any point between the service connection and the residence served, the Association shall notify the Owner of the property served that a leak has been discovered and that the leak must be repaired. If the repair is made within seventy-two (72) hours, there shall be no charge for water use attributed to the leak. If the leak is not repaired within seventy- two (72) hours, the Owner shall be charged for water attributed to the leak at the Tier Three Rate contained in the attached Exhibit C. This regulation shall not be construed in any way to prevent the Association from suspending service in the event of an emergency or other violation of these Rules and Regulations. P. The Association, upon failure of an Owner following notice to make timely repairs to the private service line and appurtenances from the Association’s Potable Water System, may suspend service until the Owner has made the necessary repairs. The Association may also charge the Owner, as a Reimbursement Assessment, for all related costs incurred by the Association, including but not limited to any related engineering, legal, or operator costs. 6. Backflow Prevention Devices. A. No residence or Lot shall have a cross-connection to a pipe, fixture, or supply, any of which might contain water other than the Association’s potable water. It is the responsibility of each customer to have interior plumbing with no cross- connections. B. Pursuant to State of Colorado regulations, all Owners must install and maintain an Association-approved backflow prevention device that has been manufactured in full conformance with the standards established by the American Water Works Association. For any new construction, proof of installation of a backflow prevention device must be provided before the residence may be occupied. C. State of Colorado regulations further require that all backflow prevention devices be inspected annually. Owners are required to arrange for an annual inspection and must provide the annual inspection report to the Association no later than the first day of October of each year. If not received by that date, the Association may begin proceedings to impose monetary penalties, to conduct such inspection, the cost of which may be charged to the Owner as a Reimbursement Assessment, or, if still unresolved, to suspend water service to that property as provided in Article III, below. D. All backflow prevention devices shall be repaired, overhauled or replaced at the expense of the Owner whenever these devices are found to be defective. E. Water service to any premise may be suspended if a required backflow prevention device is not installed, tested, and maintained, and inspected annually as required herein, or if a backflow prevention device has been removed or bypassed. An unprotected cross-connection on any premises may also result in suspension of service. Service will not be restored until such conditions or defects are corrected. 6 F. When a cross connection condition becomes known, the Board will follow the procedures outlined in Article III for suspension of water service. The absence of a proper backflow prevention device, or the existence of an unprotected cross connection, may constitute an immediate threat of harm to the public health, safety, or welfare, in which case the procedures in Article III for suspension of service for emergencies may apply. 7. Emergencies/Water Shortages. A. Whenever there is a shortage of water, system operating failure, system repair, or emergency, the Association shall have the power to regulate and curtail water usage. B. It shall be the Association’s policy to implement reasonably practicable water conservation measures during those times when water supplies are limited due to drought-like conditions. This shall become effective upon a finding by the Board, with a majority of the Board required to vote, that a water shortage exists (a “Water Shortage”). Upon such finding, the Association may reduce, on a pro rata basis, service to all Lots or any other property otherwise served by the Potable Water System. The duration of the Water Shortage will be decided by the Board according to the exigencies of the particular situation. C. The provisions of this Section II.8 shall apply only to the use of the potable water supply of the Association. Separate provisions are provided in Article X of these Rules and Regulations for the non-potable irrigation water supply. D. During the period designated Water Shortage, there shall be no washing of sidewalks, driveways, parking areas, tennis courts, patios, or other paved areas, and no washing of privately owned cars, other motor vehicles, trailers, or boats, except from a bucket and except that a hose equipped with a positive shut-off nozzle may be used for a quick rinse. E. In the event the Association becomes aware of an immediate threat of harm to Association property, or the public health, safety or welfare, water service may be immediately suspended until compliance with these Rules and Regulations is established. F. If immediate suspension of water service is necessary, the Association will make every reasonable effort to contact the Owner verbally prior to discontinuing water service. A Notice of Emergency Water Service Suspension shall be posted in a conspicuous place at the service location. As soon as practicable after the water service has been suspended, the Association will deposit the notice in the United States Mail postage prepaid, addressed to the Owner’s address as appears in the records of the Association. The Notice of Emergency Water Service Suspension shall include the following information: i. The reasons for water service suspension and the action that must occur for water service to be resumed; and 7 ii. The name and contact information of the person at the Association who can answer questions about the water service suspension; and iii. Notice that the Owner may appeal the water service suspension. 8. Potable Water Assessments. The Association shall assess fees for potable water service in accordance with the Association’s Bylaws and the Domestic Water System Operating Agreement. In accordance with the Domestic Water System Agreement, the Association’s authority to assess fees and charges for potable water service extends to all users of the Potable Water System, including the owner of the Non-Subdivision Property, or the owner of any portion thereof. III. ARTICLE III: IMPOSITION OF FINES AND SUSPENSION OF SERVICES In compliance with C.R.S. § 38-33.3-209.5, the Association hereby adopts a written policy regarding imposition of fines and suspension of services. Prior to the imposition of a fine for violations of the Association’s Declaration, Bylaws, or Rules and Regulations, or the suspension of services, the Board shall comply with the following procedure: 1. Demand. Written demand to cease and desist from the alleged violation will be mailed by certified mail upon the alleged violator specifying: (1) the alleged violation; (2) the action required to abate the violation; and (3) a time period of not less than 10 days during which the violation may be abated without further penalty (if such violation is a continuing one) or a statement that any additional similar violation may result in the imposition of a penalty after notice and a hearing (if the violation is not continuing). 2. Notice. At any time within 12 months of such demand, if the violation continues past the period allowed in the demand for abatement or if the same rule is subsequently violated, the Board or its delegate will serve the violator with written notice by certified mail of a hearing to be held by the Board. The notice will contain the following: (1) the nature of the alleged violation; (2) the time and place of the hearing, which time will be not less than 10 days from the giving of the notice; (3) an invitation to attend the hearing and produce any statement, evidence and witness on the Owner’s behalf; and (4) the proposed penalty to be imposed. 3. Hearing. The hearing will be held pursuant to the notice, affording the Owner a reasonable opportunity to be heard in front of the Board. A decision maker shall not be deemed to have a direct personal or financial interest in the outcome if the decision make will not, as a result of the outcome, receive any greater benefit or detriment than will the general membership of the association. The Board shall be assumed to be an impartial decision maker without specific evidence presented to the contrary. 4. Proof. Official minutes shall be taken at any hearing to impose a penalty. Prior to the effectiveness of any penalty, proof of notice and an invitation to be heard will be placed in the minutes of the meeting. Such proof will be deemed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the officer, director, or agent who delivered such notice. The notice requirement will be deemed satisfied if the alleged violator appears at the meeting. The minutes of the meeting will 8 contain a written statement of the results of the hearing and the penalty, if any, imposed. The presenting party will provide copies of any written evidence to the other party or parties. The decision of the Board will be final. 5. Appeal. The Board may in its discretion appoint a committee to hear the matter (a “Hearing Committee”). In such event the above procedure will apply except that either party may appeal the decision of the Hearing Committee to the Board by written notice to the Hearing Committee, the other party, and the Board. The Board will consider the minutes of the hearing and report the decision of the Board within a reasonable period of time not exceeding 60 days after receipt of the notice. The decision of the Board will be final. 6. Allocation of Attorney Fees and Costs. If, as a result of the hearing, it is determined that the Owner should not be held responsible for the alleged violation, the Association shall not allocate to the Owner’s account with the Association any of the Association’s costs or attorney’s fees incurred in asserting or hearing the claim. 7. Non-Applicability of Penalty Policy. The Association shall not be required to follow the foregoing procedures in any action to impose any penalty, cost or fee for nonpayment of a delinquent Assessment. 8. Rights to Immediate Relief. Nothing herein shall restrict the rights of the Association to seek immediate relief, including suspending domestic water service, or seeking relief from a court, including injunctive relief, for any violation involving the domestic water system, the Water Court decrees of the Association, the peace, health or safety to person or property, or for any matter where the time frame for imposing fines could result in irreversible actions being taken (i.e., construction of improvements). IV. ARTICLE IV: ALTERNATIVE DISPUTE RESOLUTION In compliance with C.R.S. § 38-33.3-124, the Association hereby adopts a written policy statement setting forth its procedure for addressing disputes arising between the Association and its Owners. 1. Agreement to Encourage Resolution of Disputes Without Litigation. The Association and its Owners, Board, and committee members, all persons subject to the Declaration, and any person not otherwise subject to the Declaration who agrees to submit to this provision (collectively, “Bound Parties”), agree that it is in the best interests of all concerned to encourage the amicable resolution of disputes involving the Association and its Owners without the emotional and financial costs of litigation. Accordingly, each Bound Party agrees not to file suit in any court with respect to a Claim described below, unless and until it has first submitted such Claim to the alternative dispute resolution (“ADR”) procedures set forth in Section 2 of this Article IV in a good faith effort to resolve such Claim. A. Definition of Claim. As used in this article, the term “Claim” shall refer to any claim, grievance, or dispute arising out of or relating to (1) interpretation, application, or enforcement of the Association documents, such as the Declaration, Bylaws, or these Rules and Regulations; (2) the rights, obligations, and duties of any Bound Party under the Association documents, such as the Declaration, 9 Bylaws, or these Rules and Regulations, or under the Colorado Common Interest Ownership Act; (3) the design or construction of improvements within the Whitecloud Ridge Subdivision; or (4) any decision of the Architectural Committee. B. Exceptions from Claim. Notwithstanding the foregoing, the following will not be considered “Claims” unless all parties to the matter otherwise agree to submit the matter to the procedures set forth in Section 2 of this Article IV: (1) any suit by the Association to collect assessments or other amounts due, including fees, from any Owner; (2) any suit by the Association to obtain a temporary restraining order (or emergency equitable relief and such ancillary relief as the court may deem necessary in order to maintain the status quo); (3) any suit involving an imminent threat to peace, health or safety of persons or property or for any matter where the time to undertake ADR could result in irreversible actions being undertaken (i.e. construction of improvements); (4) any suit involving the integrity of any water system, compliance with any water court decrees affecting the Association or the Whitecloud Ridge Subdivision, or compliance with the any requirements related to the irrigation water rights; (5) any suit between Owners, which does not include Declarant or the Association as a party, if such suit asserts a claim which would constitute a cause of action independent of the Association documents, such as the Declaration, Bylaws, or these Rules and Regulations; (6) any suit in which an indispensable party is not a Bound Party; and (7) any suit as to which any applicable statute of limitations would expire within 180 days of giving the Notice, unless the parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Article. 2. Alternative Dispute Resolution Procedures. A. Notice. The Bound Party asserting a Claim (“Claimant”) against another Bound Party (“Respondent”) shall give written notice to each Respondent and to the Executive Board stating plainly and concisely: (1) the nature of the Claim, including the persons involved and the Respondent’s role in the Claim; (2) the legal basis of the Claim (i.e. the specific authority out of which the Claim arises); (3) the Claimant’s proposed resolution or remedy; and (4) the Claimant’s desire to meet with the Respondent to discuss in good faith ways to resolve the Claim. B. Negotiation. The Claimant and Respondent shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the parties in negotiating a resolution of the Claim. C. Mediation. If the parties have not resolved the Claim through negotiation within 30 days of the date of the notice described in Section 2A (or within such other period as the parties may agree upon), the Claimant and Respondent may agree to submit the Claim to mediation with an entity designated by the Association (if the Association is not a party to the Claim) or to an independent agency providing 10 dispute resolution services in Eagle, Garfield, or Pitkin County. If the parties agree to submit to mediation, the parties shall schedule the mediation within sixty (60) days. The cost of hiring the mediator shall be shared equally. All parties shall pay their estimated respective costs of the mediation prior to the mediation occurring. Failure to pay the respective costs of the mediation by one party in advance of the mediation shall be grounds for any other party to cancel the mediation. If the parties do not settle the Claim within 30 days after submission of the matter to mediation, or within such time as determined reasonable by the mediator, the mediator shall issue a notice of termination of the mediation proceedings indicating that the parties are at an impasse and the date that mediation was terminated. The Claimant shall thereafter be entitled to file suit or to initiate administrative proceedings on the Claim, as appropriate. 3. Settlement. Any settlement of the claim through negotiation or mediation shall be documented in writing and signed by the parties and may be presented to the court as a stipulation. If any party thereafter fails to abide by the terms of such agreement, then any other party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in this Section. In such event, the party taking action to enforce the agreement or award shall, upon prevailing, be entitled to recover from the non-complying party (or if more than one non-complying party, from all such parties in equal proportions) all costs incurred in enforcing such agreement or award, including, without limitation, attorney’s fees and court costs. V. ARTICLE V: ARCHITECTURAL REVIEW PROCESS & GUIDELINES In compliance with C.R.S. § 38-33.3-302(3)(b), the Association hereby adopts standards and procedures to guide decisions concerning the approval or denial of an Owner’s application for architectural or landscaping changes. 1. Exterior Materials. The exterior materials used on structures in the Whitecloud Ridge Subdivision shall be as follows: A. Walls. All structures shall use a combination of cement board, stone, stucco, or other materials approved by the Architectural Committee. B. Roofs. All roofs shall have natural colors and consist of asphalt, shingles, non- reflective metal, or other materials approved by the Architectural Committee. C. Exterior Doors. Exterior front doors on structures must conform with the architecture of the structure. Garage doors shall be wood, metal, or masonite with a wood veneer stained to match the front door as closely as possible, or as approved by the Architectural Committee. D. No bright, unfinished surfaces shall be allowed. All metallic surfaces, such as roof vents, flashing, fireplace flues and gutters shall be coated or painted to match the predominant color of the roof, fascia or exterior siding of the house, or as approved by the Architectural Committee. 11 2. Roofs and Eaves. The form of the roof and the materials used on it create a significant part of the visual impact of a building, and will be carefully reviewed by the Architectural Committee. Gable, hip and shed roofs will generally be acceptable for residential construction, while gambrel, flat, mansard and A-frame roofs will not be encouraged. Large roof forms or long, uninterrupted ridge lines should be complemented with smaller forms, such as dormers or shed roofs. With few exceptions, the predominate roof pitch should not be less than 5:12, with steeper pitches encouraged. Roof eaves are encouraged to be 18" to 24" in length for roofs with a shallower pitch, and in no event less than 12" for steeper pitch roofs. However, these roofs and any other unique forms developed will be reviewed on their merits on a case-by-case basis. 3. Landscaping. The Architectural Committee encourages the use of landscaping, plant materials of a variety of heights and sizes, walkways and paths, and berms and swales to enhance the appearance of a residence and surrounding neighborhood. A. Within six (6) months after completion of improvements or additions, or within any extension period granted by the Architectural Committee, all yards and open space shall be landscaped and thereafter maintained in landscape; provided, however, that the open space that is a portion of Lots 7, 8, 9, and 10 and encircled by Whitecloud Road, as depicted on that Whitecloud Ridge Subdivision Final Plat recorded at reception number 571155 in the real property records of the Garfield County Clerk and Recorder, shall be landscaped, irrigated, and maintained by the Association, and the Owner(s) of Lots 7, 8, 9, and 10 shall not be responsible for the landscaping, irrigation, or maintenance or such open space. B. Areas surrounding the structure may incorporate more manicured plant materials (i.e., sod). It is recommended that a buffer comprised of flowers, bushes, shrubs or trees exist between the foundation and sodden areas to reduce the visual impact of the structure. The plant materials in buffer areas should require low levels of irrigation water. Grades surrounding the house should exceed 3% to allow proper drainage away from the foundation. 4. Architectural Review Fee. At the time an application is submitted to the Architectural Committee for review of any plans as required by the Declaration, the Owner shall deposit with the Association (i) a non-refundable fee of $5,000, (ii) a refundable (subject to these Rules and Regulations) fee of $20,000. The Owner shall be responsible to reimburse the Association for all amounts generated as the result of a review of an application by the Architectural Committee, even if such review exceeds $25,000. If such review exceeds $5,000, then such excess costs shall be deducted from the $20,000 deposit. The Association and/or Architectural Committee shall prepare an accounting of costs that exceed the $5,000 initial payment and shall provide the same to the Owner. The Owner shall reimburse the Association the amount on the accounting that exceeds both the $5,000 deposit and the $20,000 deposit, in the aggregate, within thirty (30) days. Failure to reimburse the Association the amount on the accounting in a timely manner may result in a lien being placed on the Owner’s property by the Association. Following substantial completion of the improvements, if the Architectural Committee determines in its reasonable discretion that such improvements comply with the plans approved by the Architectural Committee, 12 then the Association shall refund the $20,000 or the portion of such deposit that remains after accounting for review costs, without interest. If the constructed improvements on the Owner’s Lot are not in substantial compliance with the plans the Architectural Committee approved, then, in its reasonable discretion, the Architectural Committee may withhold all or a portion of the $20,000 deposit; if, in the Architectural Committee’s reasonable discretion, the Owner cures such non-compliance, then the Architectural Committee shall return the remainder of such $20,000 deposit (without interest) that it withheld, less any additional review costs, to the Owner. 5. Construction Damage Deposit. Prior to receiving an approval from the Architectural Committee for constructing any improvement on any Lot, the Owner shall deposit with the Association the amount of $10,000. This deposit shall be deposited into an account of the Association that is separate from the general operating account of the Association. After the Owner has completed the approved improvements on the Lot, the Owner shall give the Association notice of completion in writing. The Association shall have thirty (30) days to inspect the improvements and the impact of construction thereof on any improvements, lands or infrastructure owned or maintained by the Association (i.e., common elements, roads, sidewalks, water pipes, irrigation ditches, open spaces areas). In the event that construction on an Owner’s Lot has resulted in the imposition of a construction debris fine described in Section 6 below or caused damage to improvements, lands or infrastructure owned or maintained by the Association, the Association shall provide an accounting of the damage to the Owner within forty-five (45) days of receiving the notice of completion. The Association shall be entitled to withhold such amounts from the deposit as will be required to offset any fines and to repair or replace any damage. The remainder, if any, shall be returned to the Owner together with the accounting, without interest. The Owner shall be responsible to reimburse the Association for all amounts required to repair or replace the damage, even if such review exceeds the deposit of $10,000. The Owner shall reimburse the Association the amount on the accounting within thirty (30) days. Failure to reimburse the Association the amount on the accounting in a timely manner may result in a lien being placed on the Owner’s property by the Association. 6. Construction Fines. All Owners are required to maintain neat, orderly construction sites on the Lots and to prevent construction debris from blowing into and accumulating upon adjacent Lots. In the event an Owner fails to maintain his or her Lot construction site in such a debris-free and orderly manner, the Architectural Committee, with the approval of the Board of Directors, shall have the authority to levy reasonable fines of up to $100.00 per day per occurrence payable from the construction damage deposit. The Architectural Committee shall first provide written notice to the Owner by first class mail describing the construction debris issue. Upon failure by the Owner to cure the condition within ten (10) days of the posting of the notice, the Architectural Committee may assess the fine and withhold such monies from the construction damage deposit. 7. Pools. No above ground swimming pools are permitted. Architectural Committee approval of all swimming pools is as follows: 13 A. The Owner must demonstrate compliance with all County, State, and other governmental legal requirements. B. Plans submitted to the Architectural Committee must include: (a) pool size, (b) placement of pool on Lot, (c) required safety fencing and (d) landscaping. All swimming pools shall be consented to by any neighboring Owner whose line of sight would be affected; such neighboring Owner(s) shall evidence their consent in writing. C. The signed plans must then be presented to the Architectural Committee for final approval. D. Construction of pool to be completed within sixty (60) days. Extensions may be granted at discretion of the Architectural Committee. E. Any debris or mud deposited on a Subdivision street as a result of construction must be removed and the street returned to preconstruction condition at Owner’s expense. 8. Sheds. Any Owner wishing to construct, erect, or otherwise maintain a shed must: A. Have a completed residence on the Lot prior to construction of a shed. B. The exterior of the shed must conform to building materials and colors of residence. C. The location of the shed shall be submitted to any adjacent Owners whose line of sight would be affected, and such Owners shall have a period of no less than fourteen (14) to submit comments to the Architectural Committee before the Architectural Committee makes any determination on the approval of the shed. D. After submittal of the signed plans to all adjacent Owners whose line of sight would be affected, the signed plans must then be presented to the Architectural Committee for final approval, which approval may not be given sooner than fourteen (14) days after submittal of the signed plans. The Architectural Committee shall consider comments from any adjacent Owners whose line of sight would be affected. 9. Yard Structures. Any yard structure, including but not limited to, solar panels, swings, slides, forts, water features, gazebos, shall be constructed only after obtaining the signed approval of the Architectural Committee. The Architectural Committee may issue its approval only after adjacent Owners whose line of sight would be affected have been given written notice of such proposed yard structure and not less than fourteen (14) days to provide comments to the Architectural Committee. The placement of solar panels must take into consideration the affect glare may have on other Owners. Additional screening or landscaping may be necessary. Color of yard structures should be in accordance with the Association’s architectural guidelines. The signed plans must then be presented to the Architectural Committee for final approval. 14 VI. ARTICLE VI: OWNER EDUCATION In compliance with C.R.S. § 38-33.3-209.7, the Association hereby adopts a policy regarding owner education. 1. The Association shall provide, or cause to be provided, education to Members at no cost on at least an annual basis as to the general operations of the Association and the rights and responsibilities of Members, the Association, and its Board under Colorado law. 2. The Board has determined that any or all of the following actions shall constitute compliance with such statutory education requirements: A. Making available a copy of the Colorado Common Interest Ownership Act “CCIOA” at the property management firm. B. Upon Owner request, providing a copy of the CCIOA provisions at no charge to the Owner. VII. ARTICLE VII: PUBLIC DISCLOSURES In compliance with C.R.S. § 38-33.3-209.4, the Association hereby adopts a written policy regarding public disclosures. 1. The Association shall make all information required by C.R.S. § 38-33.3- 209.4 available to all Owners at no charge to Owners. 2. The Association may use any or all of the following methods and means of disclosure in compliance with this policy: A. Posting the information on an Internet web page with accompanying notice of the web address to the Owners. B. Maintenance of a literature table or binder at the Association’s property management firm. C. U.S. mail. D. Personal delivery. 3. The cost of such distribution shall be accounted for as a common expense liability. VIII. ARTICLE VIII: MEETINGS In compliance with C.R.S. § 38-33.3-308 and to supplement the Association’s Bylaws, the Association hereby adopts a written policy regarding meetings. 1. Notice. Notice of any meeting of the Owners shall be physically posted in a conspicuous place, in addition to any electronic posting or electronic mail notices that may be 15 given. At least twenty-four (24) hours prior to the meeting, the Association shall provide notice of all regular and special meetings of Owners by e-mail to all Owners who have requested such notice and who have furnished the Association with their e-mail addresses. 2. Attendance. All regular and special meetings of the Association’s Board or any committee thereof shall be open to all Owners or their representatives. Agendas for meetings of the Board shall be made reasonably available for examination by Owners or representatives prior to said meetings, whenever reasonably possible. 3. Comment. At an appropriate time determined by the Board, but before the Board votes on an issue under discussion, Owners or their designated representatives shall be permitted to speak regarding that issue. A. The Board may place reasonable time restrictions on persons speaking during the meeting. B. If more than one (1) person desires to address an issue and there are opposing views, the Board shall provide for a reasonable number of persons to speak on each side of the issue. 4. Executive Session. The members of the Board or any committee thereof may hold an executive or closed-door session and may restrict attendance to Board members and any other persons requested by the Board during a regular or specially announced meeting or a part thereof. A. The matters to be discussed at an executive session shall be limited to the matters enumerated in C.R.S. § 38-33.3-308(4). B. Prior to the executive session, the chair of the Board of committee thereof shall announce the general matter of discussion at the session. C. The minutes of all meetings at which an executive session was held shall indicate that an executive session was held and the general subject matter of the executive session. 5. Rules and Regulations. A rule or regulation may be validly adopted only during a regular or special meeting open to all Owners and not during an executive session. IX. ARTICLE IX: NOXIOUS WEED CONTROL The Association is committed to protecting the native plant communities within the Whitecloud Ridge Subdivision and recognizes that noxious weed control is best achieved by raising homeowner awareness through education, suppressing, and eradicating existing noxious weed populations, and preventing further spread of noxious weed growth into future areas. Private property in Colorado is subject to the Colorado Noxious Weed Act, which mandates, among other provisions, that “is the duty of all persons to use integrated methods to manage noxious weeds if the same are likely to be materially damaging to the land of neighboring landowners.” C.R.S. § 35- 5.5-104. Noxious weeds that have established as a result of a site disturbance or are present in the 16 “natural area” of the landscape are required to be managed under a program of control. This requirement extends to undeveloped Lots in the Whitecloud Ridge Subdivision. Any Owner that fails to control noxious weeds on their Lot will be notified by the Association. The Owner shall have two (2) weeks to undertake appropriate weed eradication efforts. Failure of an Owner to adequately control weeds on a Lot may result in notice being given by the Association to the appropriate regulatory authority. The Association may also impose fines on an Owner in accordance with Article III of these Rules and Regulations for non-compliance with a notice to eradicate noxious weeds. The state Agricultural Commissioner’s office maintains lists of noxious plants divided according to the following: List A – species new or not yet present in the state but proven threats to surrounding states; List B – species more common and widespread; and List C – species so numerous and common that the goal is containment to present boundaries. Information on identification and containment of noxious weeds is available from on the Colorado Department of Agriculture website. X. ARTICLE X: IRRIGATION COMPANY SHARES 1. Association’s Ownership in the Missouri Heights-Mountain Meadow Irrigation Company. The Association owns 150 shares of Class A stock and 270 shares of Class B stock (the “Irrigation Company Shares”) in the Missouri Heights-Mountain Meadow Irrigation Company (“MHMMIC”). Water available under the Irrigation Company Shares is authorized for irrigation use within the Whitecloud Ridge Subdivision. The quantity of water available under the Irrigation Company Shares may vary from year-to-year; in dry years, there may be no water available for delivery under the Irrigation Shares. 2. Allocation of Water Available Under the Irrigation Company Shares. Water available under the Association’s Shares is allocated to each Lot as described in the following table, provided that the Association does not guarantee the delivery of any quantity of water available under the Irrigation Company Shares to any Lot. Lot Allocation of Water Available Under the Association’s Shares 1 2.5% 2 2.5% 3 2.5% 4 2.5% 5 5.0% 6 5.0% 7 5.0% 8 2.5% 9 2.5% 10 7.0% 11 18.0% 17 12 21.0% 13 21.5% 14 2.5% 3. Irrigation Water Assessments. The Association shall assess fees for irrigation water to cover expenses associated with the operation, maintenance and repair of the irrigation delivery infrastructure and to cover annual Irrigation Company assessments. Such fees shall be assessed in accordance with the Association’s Bylaws. XI. ARTICLE XI: MISCELLANEOUS PROVISIONS 1. Restrictions on Aircraft. No aircraft larger than three feet in length and 3 feet in width are permitted to be operated on the Whitecloud Ridge Subdivision. 2. Leasing of Lots. “Leasing,” for purposes of these Rules and Regulations, means regular, exclusive occupancy or a Lot, dwelling, structure, improvement, or any portion thereof, by any person other than the Owner, for which the Owner receives any consideration of benefit, including rental payments, other fees or charges, services, or gratuities. All such leases must be in writing and specifically state that such lease is subject to the Declaration, the Bylaws, and these Rules and Regulations, and any failure of a tenant to comply therewith will be a default under the lease. The Owner shall be liable for any violation of the Declaration, Bylaws, or Rules and Regulations committed by such Owner’s tenant. The Owner must make available to each tenant copies of the Declaration, Bylaws, and Rules and Regulations. No lease or other right to occupy a Lot, dwelling, structure, improvement, or any portion thereof or any portion of the Whitecloud Ridge Subdivision shall have a duration that is shorter than 90 days; provided, however, that a lease for an ADU may be for fewer than 90 days. 3. Marijuana Grow Houses. No more than three (3) marijuana plants shall be grown on any Lot at any single time. Any such plants shall be out of sight of all other Owners and shall not create a nuisance, whether due to odors or otherwise, of any sort for other Owners. 18 EXHIBIT A Legal Description of Non-Subdivision Property A PARCEL OF LAND SITUATED IN THE SW1/4 AND THE W1/2SE1/4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 63 DEGREES 50'49" E A DISTANCE OF 1573.54 FEET TO A POINT ON THE WESTERLY BOUNDARY OF THE SE1/4SW1/4 OF SAID SECTION 28; THENCE N 03 DEGREES 23'54" E ALONG SAID WESTERLY BOUNDARY A DISTANCE OF 44.97 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF LEVITT LANE, THE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WESTERLY BOUNDARY N 03 DEGREES 23'54" E A DISTANCE OF 69.65 FEET TO A POINT ON THE NORTHERLY BOUNDARY OF SAID LEVITT LANE; THENCE LEAVING SAID WESTERLY BOUNDARY S 62 DEGREES 14'46" W ALONG SAID NORTHERLY BOUNDARY A DISTANCE OF 15.12 FEET; THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 17 DEGREES 43'43", A DISTANCE OF 154.71 FEET (CHORD BEARS S 71 DEGREES 06'37" W A DISTANCE OF 154.09 FEET); THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY S 79 DEGREES 58'28" W A DISTANCE OF 155.83 FEET; THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 170.00 FEET AND A CENTRAL ANGLE OF 68 DEGREES 26'41", A DISTANCE OF 203.08 FEET (CHORD BEARS N 65 DEGREES 48'11" W A DISTANCE OF 191.22 FEET); THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY N 31 DEGREES 34'50" W A DISTANCE OF 76.82 FEET; THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 05 DEGREES 08'52", A DISTANCE OF 35.94 (CHORD BEARS N 34 DEGREES 09'16" W A DISTANCE OF 35.93 FEET); THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY N 36 DEGREES 43'42" W A DISTANCE OF 100.68 FEET TO A POINT ON THE EASTERLY BOUNDARY OF WHITECLOUD ROAD; THENCE LEAVING SAID NORTHERLY BOUNDARY ALONG THE EASTERLY BOUNDARY OF WHITECLOUD ROAD ALONG THE ARC OF A NON-TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 280.00 FEET AND A CENTRAL ANGLE OF 17 DEGREES 47'49" A DISTANCE OF 86.97 FEET (CHORD BEARS N 38 DEGREES 13'21" E A DISTANCE OF 86.62 FEET); THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY N 29 DEGREES 19'26" E A DISTANCE OF 99.23 FEET; THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 220.00 FEET AND A CENTRAL ANGLE OF 52 DEGREES 15'54" A DISTANCE OF 200.68 FEET (CHORD BEARS N 55 DEGREES 27'23" E 193.80 FEET); THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY N 81 DEGREES 35'20" E A DISTANCE OF 281.45 FEET; THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 120.00 FEET AND A CENTRAL ANGLE OF 77 DEGREES 47'32" A DISTANCE OF 162.93 FEET (CHORD BEARS N 42 DEGREES 41'34" E A DISTANCE OF 150.70 FEET); THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY N 03 DEGREES 23'54" E A DISTANCE OF 105.57 FEET; THENCE LEAVING SAID EASTERLY BOUNDARY S 89 DEGREES 45'54" E A DISTANCE OF 603.84 FEET; THENCE N 69 DEGREES 11'09" E A DISTANCE OF 876.78 FEET TO A POINT ON THE CENTERLINE OF HARMONY LANE; THENCE THE FOLLOWING THIRTEEN (13) COURSES ALONG SAID CENTERLINE: 1. S 00 DEGREES 34'25" W A DISTANCE OF 226.26 FEET 2. S 02 DEGREES 28'40" E A DISTANCE OF 91.04 FEET 3. S 06 DEGREES 19'45" E A DISTANCE OF 119.31 FEET 4. N 89 DEGREES 44'08' W A DISTANCE OF 5.95 FEET 5. S 01 DEGREES 14'48" E A DISTANCE OF 280.78 FEET 6. S 02 DEGREES 01'27" W A DISTANCE OF 115.18 FEET 7. S 00 DEGREES 39'06" W A DISTANCE OF 148.53 FEET 8. S 01 DEGREES 44'55" E A DISTANCE OF 133.99 FEET 19 9. S 04 DEGREES 29'01" E A DISTANCE OF 106.53 FEET 10. ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 1475.00 FEET AND A CENTRAL ANGLE OF 03 DEGREES 53'15" A DISTANCE OF 100.08 FEET (CHORD BEARS S 06 DEGREES 25'38" E A DISTANCE OF 100.06 FEET) 11. S 08 DEGREES 22'15" E A DISTANCE OF 67.98 FEET 12. ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 126.84 FEET AND A CENTRAL ANGLE OF 43 DEGREES 01'03", A DISTANCE OF 95.23 FEET (CHORD BEARS S 13 DEGREES 08'18" W A DISTANCE OF 93.01 FEET) 13. S 38 DEGREES 11'47" W A DISTANCE OF 18.82 FEET THENCE LEAVING SAID CENTERLINE S 89 DEGREES 43'12" W A DISTANCE OF 30.74 FEET; THENCE N 01 DEGREES 52'30" E A DISTANCE OF 329.19 FEET; THENCE N 89 DEGREES 58'25" W A DISTANCE OF 110.00 FEET TO A POINT ON THE EASTERLY BOUNDARY OF THE GLEN SUBDIVISION EXEMPTION; THENCE N 02 DEGREES 06'23" E ALONG SAID EASTERLY BOUNDARY A DISTANCE OF 49.20 FEET TO THE NORTHEAST CORNER OF SAID SUBDIVISION EXEMPTION; THENCE S 89 DEGREES 56'49" W ALONG THE NORTHERLY BOUNDARY OF SAID SUBDIVISION EXEMPTION A DISTANCE OF 677.27 FEET TO THE NORTHWEST CORNER OF SAID SUBDIVISION EXEMPTION; THENCE S 02 DEGREES 39'45" W ALONG THE WESTERLY BOUNDARY OF SAID SUBDIVISION EXEMPTION A DISTANCE OF 682.91 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF SAID SECTION 28; THENCE S 89 DEGREES 39'09" W ALONG SAID SOUTHERLY BOUNDARY A DISTANCE OF 503.16 FEET; THENCE LEAVING SAID SOUTHERLY BOUNDARY N 00 DEGREES 00'00" W A DISTANCE OF 30.00 FEET; THENCE N 89 DEGREES 39'09" E A DISTANCE OF 425.10 FEET; THENCE N 00 DEGREES 00'00" W A DISTANCE OF 59.07 FEET; THENCE N 41 DEGREES 24'02' W A DISTANCE OF 642.79 FEET; THENCE N 00 DEGREES 00'00" W A DISTANCE OF 83.42 FEET; THENCE N 49 DEGREES 45'04" E A DISTANCE OF 99.80 FEET; THENCE N 00 DEGREES 06'30" W A DISTANCE OF 76.47 FEET; THENCE N 40 DEGREES 28'34" W A DISTANCE OF 69.78 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF AN ACCESS AND UTILITY EASEMENT; THENCE S 49 DEGREES 31'26" W ALONG SAID SOUTHERLY BOUNDARY A DISTANCE OF 97.08 FEET; THENCE CONTINUING ALONG SAID BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 330.00 FEET AND A CENTRAL ANGLE OF 12 DEGREES 43'20", A DISTANCE OF 73.27 FEET (CHORD BEARS S 55 DEGREES 53'06" W A DISTANCE OF 73.12 FEET); THENCE CONTINUING ALONG SAID BOUNDARY S 62 DEGREES 14'46" W A DISTANCE OF 17.93 FEET; THENCE CONTINUING ALONG SAID BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 560.00 FEET AND A CENTRAL ANGLE OF 02 DEGREES 08'23", A DISTANCE OF 20.91 FEET (CHORD BEARS S 63 DEGREES 18'58" W A DISTANCE OF 20.91 FEET) TO THE POINT OF BEGINNING. COUNTY OF GARFIELD STATE OF COLORADO Parcel/Lot Dwelling Units Lawn and Garden Area Livestock Jan Feb March April May June July Aug Sept Oct Nov Dec Total Total (square feet)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(AF) 1 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 2 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 3 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 4 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 5 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 6 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 7 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 8 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 9 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 10 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 11 1 1,500 2 12,000 12,000 12,000 15,000 30,000 30,000 30,000 30,000 30,000 12,000 12,000 12,000 237,000 0.73 12 2 1,500 2 22,830 22,830 22,830 23,830 36,000 36,000 36,000 36,000 36,000 25,430 22,830 22,830 343,410 1.05 13 2 1,500 2 22,830 22,830 22,830 23,830 36,000 36,000 36,000 36,000 36,000 25,430 22,830 22,830 343,410 1.05 C(14)1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 D 7 10,500 6 77,160 77,160 77,160 80,660 120,330 120,330 120,330 120,330 120,330 86,260 77,160 77,160 1,154,370 3.54 Open Space 0 21,780 6,500 20,000 20,000 20,000 20,000 20,000 6,500 113,000 0.35 Total 23 53,280 12 250,320 250,320 250,320 270,820 517,330 517,330 517,330 517,330 517,330 285,420 250,320 250,320 4,394,490 13.49 Total (AF)0.77 0.77 0.77 0.83 1.59 1.59 1.59 1.59 1.59 0.88 0.77 0.77 13.49 EXHIBIT B - Water Allocation Whitecloud HOA Potable Water System Monthly Allocation 21650 LRE WATER 20 MJE February 2, 2022 21 EXHIBIT C Water Charges For any amount of potable water provided to a Lot in excess of the monthly allocation amounts set forth in Exhibit B to these Rules, Regulations & Policies, the following charges shall apply: a.For the first 1,000 gallons in excess of the Lot’s potable water allocation: $200.00 (the “Tier One Rate”); b.For the second through fifth 1,000 gallons in excess of the Lot’s potable water allocation: $300.00 per 1,000 gallons (the “Tier Two Rate”); and c.For the sixth and each subsequent 1,000 gallons in excess of the Lot’s water allocation: $400.00 per 1,000 gallons (the “Tier Three Rate”). These charges shall be imposed at the Board’s discretion. If there are mitigating circumstances beyond the Owner’s control, the charges may be waived or reduced by the Board. 17915125_v11 WHITECLOUD RIDGE HOMEOWNERS ASSOCIATION RULES, REGULATIONS & POLICIES Adopted by the Board of Directors of Whitecloud Ridge Homeowners Association Effective March 9, 2022 i TABLE OF CONTENTS Page I. ARTICLE I: INTERPRETATION & FEES APPLICABLE TO LOT SALES .............. 1 1. Interpretation.. ................................................................................................................................... 1 2. Transfer Fee ...................................................................................................................................... 1 3. Exempt Transfers .............................................................................................................................. 1 II. ARTICLE II: POTABLE WATER SYSTEM ................................................................ 2 1. Potable Water System ....................................................................................................................... 2 2. Non-Subdivision Property Water Use ............................................................................................... 2 3. Owner’s Responsibility to Comply with Rules and Regulations ...................................................... 2 4. Allocation of Potable Water .............................................................................................................. 2 5. Installation and Maintenance ............................................................................................................ 2 6. Backflow Prevention Devices ........................................................................................................... 5 7. Emergencies/Water Shortages .......................................................................................................... 6 8. Potable Water Assessments .............................................................................................................. 7 III. ARTICLE III: IMPOSITION OF FINES AND SUSPENSION OF SERVICES ........ 7 1. Demand ............................................................................................................................................. 7 2. Notice ................................................................................................................................................ 7 3. Hearing .............................................................................................................................................. 7 4. Proof .................................................................................................................................................. 7 5. Appeal ............................................................................................................................................... 8 6. Allocation of Attorney Fees and Costs ............................................................................................. 8 7. Non-Applicability of Penalty Policy ................................................................................................. 8 8. Rights to Immediate Relief ............................................................................................................... 8 IV. ARTICLE IV: ALTERNATIVE DISPUTE RESOLUTION ........................................ 8 1. Agreement to Encourage Resolution of Disputes Without Litigation .............................................. 8 2. Alternative Dispute Resolution Procedures. ..................................................................................... 9 3. Settlement ....................................................................................................................................... 10 V. ARTICLE V: ARCHITECTURAL REVIEW PROCESS & GUIDELINES ............ 10 1. Exterior Materials ........................................................................................................................... 10 2. Roofs and Eaves .............................................................................................................................. 11 3. Landscaping .................................................................................................................................... 11 4. Architectural Review Fee................................................................................................................ 11 5. Construction Damage Deposit ........................................................................................................ 12 6. Construction Fines .......................................................................................................................... 12 ii 7. Pools ................................................................................................................................................ 12 8. Sheds ............................................................................................................................................... 13 9. Yard Structures ............................................................................................................................... 13 VI. ARTICLE VI: OWNER EDUCATION......................................................................... 14 VII. ARTICLE VII: PUBLIC DISCLOSURES .................................................................... 14 VIII. ARTICLE VIII: MEETINGS ..................................................................................... 14 1. Notice .............................................................................................................................................. 14 2. Attendance ...................................................................................................................................... 15 3. Comment ......................................................................................................................................... 15 4. Executive Session ........................................................................................................................... 15 5. Rules and Regulations ..................................................................................................................... 15 IX. ARTICLE IX: NOXIOUS WEED CONTROL ............................................................ 15 X. ARTICLE X: IRRIGATION COMPANY SHARES ................................................... 16 1. Association’s Ownership in the Missouri Heights-Mountain Meadow Irrigation Company ......... 16 2. Allocation of Water Available Under the Irrigation Company Shares ........................................... 16 3. Irrigation Water Assessments ......................................................................................................... 17 XI. ARTICLE XI: MISCELLANEOUS PROVISIONS .................................................... 17 1. Restrictions on Aircraft. .................................................................................................................. 17 2. Leasing of Lots ............................................................................................................................... 17 3. Marijuana Grow Houses ................................................................................................................. 17 1 I. ARTICLE I: INTERPRETATION & FEES APPLICABLE TO LOT SALES 1. Interpretation. Capitalized terms used herein but not defined herein shall have the meaning ascribed to them in the Declaration of Protective Covenants of Whitecloud Ridge Subdivision, recorded in the real property records of Garfield County, Colorado, at reception number 571156, and all amendments thereto (as amended, the “Declaration”). 2. Transfer Fee. In the event any Lot is sold or otherwise transferred, the Association shall assess a transfer fee equal to 1% of the sale price against the purchaser or the transferee, not to exceed $15,000.00 in any instance (the “Transfer Fee”). The Transfer Fee shall be due and payable at the closing of the sale or transfer that triggers such fees. The purchaser, or the transferee, shall deliver such documents requested by the Association to verify the sale of a Lot and the sale price of the Lot. The sale price of the Lot shall be the amount of the consideration paid by the purchaser or the transferee, not including any deductions for prorations, to the seller in order to obtain record title to the Lot. For any Transfer Fee that is assessed but unpaid, whether in whole or in part, the Association shall have the right to record a lien against the Lot that was the subject of the transaction that generated such Transfer Fee. 3. Exempt Transfers. The following transfers of a Lot are exempt from the Transfer Fee: A. In the event of any default on the part of an Owner under any first Mortgage that entitles the holder thereof to foreclose the same, any sale under such foreclosure, including delivery of a deed in lieu of foreclosure, shall be made free and clear of the Transfer Fee; B. The transfer by operation of law, of a deceased joint tenant’s interest to the surviving joint tenant(s); C. The transfer of a deceased’s interest to a devisee or devisees by will or to his heirs at law under intestacy laws; D. The transfer of an Owner’s interest, in whole or in part, to a blood relative, including where the Owner and the transferee are legal entities and the members, owners, shareholders, partners, or beneficiaries, under such legal entities are all blood relatives; E. The transfer of an Owner’s interest by treasurer’s deed pursuant to a sale for delinquent taxes; F. The transfer of all or any part of a partner’s interest as a result of withdrawal, death, or otherwise, to the remaining partners carrying on the partnership business, and/or of a partner’s or partners’ interests between one or more partners, and/or to persons becoming partners; G. The transfer of a corporation’s interest to the persons formerly owning the stock of the corporation as a result of dissolution. A transfer to the resulting entity following a corporate merger or consolidation; provided, however, that at least fifty percent 2 (50%) of the stock of the resulting entity is owned by the stockholders of the corporation formerly owning the Lot; and H. The transfer between co-tenants of all or a part of a co-tenant’s interest. If the purchaser or transferee of a Lot can establish to the satisfaction of the Board that a transfer is exempt from the Transfer Fee, then such transfer will not be subject to the Transfer Fee. II. ARTICLE II: POTABLE WATER SYSTEM 1. Potable Water System. The Association operates a community-treated water system (the “Potable Water System”), defined as the “Water System” in the Amended and Restated Whitecloud Ridge Domestic Water System Operating Agreement recorded in the Records of the Garfield County Clerk and Recorder on February 23, 2022, as Reception No. 971324 (the “Domestic Water System Operating Agreement”), which was constructed to provide potable water service to Lots and property within the Whitecloud Ridge Subdivision and to the real property described in the attached Exhibit A (the “Non-Subdivision Property”). The Association owns and manages certain water rights, wells, easements, primary water system components, and personal property, together with the right and privilege to conduct, maintain, and operate the Potable Water System for the Owners of the Whitecloud Ridge Subdivision and for other users of the Potable Water System, all in accordance with the Domestic Water System Operating Agreement. 2. Non-Subdivision Property Water Use. If the Potable Water System serves all or any portion of the Non-Subdivision Property, then such service of the Potable Water System to the Non-Subdivision Property and any use of the Potable Water System on the Non- Subdivision Property shall be subject to the terms of Articles II, III, and IV of these Rules and Regulations. The owner of the Non-Subdivision Property, or the owner of any portion thereof, is considered an Owner for the purposes of Articles II, III, and IV. The Non- Subdivision Property, and any portion thereof that is further subdivided, is considered a Lot for purposes of Article II, III, and IV. 3. Owner’s Responsibility to Comply with Rules and Regulations. It is the responsibility of every Owner to abide by the most current set of Rules and Regulations. Violation of any rule or regulation by an Owner may jeopardize the Association’s water rights, and consequently any Owner in violation of any Association rules and regulations may result in the termination of the right of that Owner to receive water service from the Potable Water System. 4. Allocation of Potable Water. The Owner of each Lot is subject to the limitations on the use of potable water as set forth in the attached Exhibit B. For any amount of potable water provided to a Lot in excess of the monthly allocation amounts set forth in the Exhibit B, the charges specified in the attached Exhibit C shall apply. 5. Installation and Maintenance. A. Other than those wells already in existence on certain Lots, individual wells shall not be permitted on any Lot, except that the Board may approve construction of one 3 or more new wells to replace, or to supplement the water supply from, the existing wells that are components of the Potable Water System. B. Individual Owners are responsible for the extension, construction, and maintenance of any water lines necessary to service any structures that may be built on a Lot. C. Only one tap into the Potable Water System is allowed per Lot. Notwithstanding the previous sentence, up to seven (7) taps are allowed on the Non-Subdivision Property, whether or not the Non-Subdivision Property is further subdivided, consistent with the Domestic Water System Operating Agreement. D. All water use from the Potable Water System is required to be individually metered, and the cost of the meter, installation, repair, and replacement thereof shall be the responsibility of the Owner. Each Owner is required to have a Potable Water System meter on the Lot. The water meter must be installed after the curb stop valve for the Lot adjacent to a community street at a location approved by the Architectural Committee; or, for Non-Subdivision Property, the water meter must be installed after the curb stop valve for every tap within the Non-Subdivision Property that is adjacent to a street at a location and in a manner such that the water meter is reasonably accessible year-round. The Association shall have no obligation to provide water service to Lots or taps without domestic water meters. i. Meters shall be read at least quarterly, and the readings will be kept on file by the Board or by a management firm retained by the Board. ii. Owners exceeding the number of gallons that they are allocated per month will be assessed a water surcharge as provided herein. iii. Any Owner who does not have a working domestic meter shall be subject to fines as outlined in Article III, Imposition of Fines and Suspension of Services. Failure to install or maintain a working domestic meter may result in the termination of domestic water service to the Lot, subject to written notice to the Owner and opportunity to be heard in accordance with the procedure set forth herein for imposition of fines. E. The water line from the Association’s Potable Water System to a home may not be larger than one inch. F. No pressure augmentation system or device may be used to create a suction on the line from the Association’s Potable Water System to a home on a Lot. G. For any new tap, the Owner requesting such tap must pay to the Association a nonrefundable $12,000.00 fee prior to installing such tap. In addition, if the Owner of Lot 12 or Lot 13 desires to construct a second dwelling unit on the Lot, then the Owner must pay to the Association a nonrefundable $8,400.00 fee prior to constructing the second dwelling unit. The Board in its sole discretion periodically may change this fee to reflect increasing water system costs. 4 H. The number of outside hose bibs is limited to two (2), and lines to such bibs may not exceed 3/4 inch. I. Under no circumstances may the Potable Water System be used to create or fill a water feature, hot tub, or a swimming pool. Water features, swimming pools and outdoor hot tubs may only be filled with water provided from an outside source with proof of purchase of the water submitted to the Board. J. An Owner may use the Potable Water System to irrigate a portion of its Lot in a manner consistent with the potable water allocations set forth in Exhibit B; provided, however, the Board, in its reasonable discretion, may impose conservation measures upon such use of potable water for irrigation purposes, or the Board, in its reasonable discretion, may prohibit the use of potable water for irrigation purposes. Use of the Potable Water System for outdoor irrigation in a manner inconsistent with the allocations set forth in Exhibit B or with the conservation measures or restrictions imposed by the Board may result in fines or suspension of service. K. The Owner is responsible for the maintenance, repair, and replacement of the water line from the Association’s Potable Water System to the home, including the repair, maintenance, or replacement of the water meter. Owners who seek to replace or move the water line from the meter to the home must get permission from the Association and may be required to deposit such amounts as may be determined by the Board to cover the expense that might be incurred by the Association. L. Inspectors and other duly authorized employees of the Association with proper credentials shall be permitted to enter upon all Lots and other properties served by the Potable Water System or serving the Potable Water System at reasonable times as necessary for the purpose of inspection, observation, measurement, sampling and testing and repairing any of the water or service lines, and checking for leaks or cross-connections. M. All Owners must provide the contact information for a person located within 50- miles of the Whitecloud Ridge Subdivision who can respond to emergencies or other water issues within a 24-hour period. This information shall include both a phone number and e-mail address. If an Owner resides in the house but will be out of town for an extended period of time (2 weeks or more), the Owner must provide the Association with an alternate contact person. The contact person must be able to physically enter the property. N. If contacted about a water issue, the contact person must respond to the Association representative within 24 hours. If the Owner or contact person fails to respond within 24 hours, the Association may take such steps as it deems necessary to address the problem, which depending on circumstances, include imposition of fines, curtailment of service or suspension of service as provided in Article III, below. 5 O. If a leak is found by the Association in a service line at any point between the service connection and the residence served, the Association shall notify the Owner of the property served that a leak has been discovered and that the leak must be repaired. If the repair is made within seventy-two (72) hours, there shall be no charge for water use attributed to the leak. If the leak is not repaired within seventy- two (72) hours, the Owner shall be charged for water attributed to the leak at the Tier Three Rate contained in the attached Exhibit C. This regulation shall not be construed in any way to prevent the Association from suspending service in the event of an emergency or other violation of these Rules and Regulations. P. The Association, upon failure of an Owner following notice to make timely repairs to the private service line and appurtenances from the Association’s Potable Water System, may suspend service until the Owner has made the necessary repairs. The Association may also charge the Owner, as a Reimbursement Assessment, for all related costs incurred by the Association, including but not limited to any related engineering, legal, or operator costs. 6. Backflow Prevention Devices. A. No residence or Lot shall have a cross-connection to a pipe, fixture, or supply, any of which might contain water other than the Association’s potable water. It is the responsibility of each customer to have interior plumbing with no cross- connections. B. Pursuant to State of Colorado regulations, all Owners must install and maintain an Association-approved backflow prevention device that has been manufactured in full conformance with the standards established by the American Water Works Association. For any new construction, proof of installation of a backflow prevention device must be provided before the residence may be occupied. C. State of Colorado regulations further require that all backflow prevention devices be inspected annually. Owners are required to arrange for an annual inspection and must provide the annual inspection report to the Association no later than the first day of October of each year. If not received by that date, the Association may begin proceedings to impose monetary penalties, to conduct such inspection, the cost of which may be charged to the Owner as a Reimbursement Assessment, or, if still unresolved, to suspend water service to that property as provided in Article III, below. D. All backflow prevention devices shall be repaired, overhauled or replaced at the expense of the Owner whenever these devices are found to be defective. E. Water service to any premise may be suspended if a required backflow prevention device is not installed, tested, and maintained, and inspected annually as required herein, or if a backflow prevention device has been removed or bypassed. An unprotected cross-connection on any premises may also result in suspension of service. Service will not be restored until such conditions or defects are corrected. 6 F. When a cross connection condition becomes known, the Board will follow the procedures outlined in Article III for suspension of water service. The absence of a proper backflow prevention device, or the existence of an unprotected cross connection, may constitute an immediate threat of harm to the public health, safety, or welfare, in which case the procedures in Article III for suspension of service for emergencies may apply. 7. Emergencies/Water Shortages. A. Whenever there is a shortage of water, system operating failure, system repair, or emergency, the Association shall have the power to regulate and curtail water usage. B. It shall be the Association’s policy to implement reasonably practicable water conservation measures during those times when water supplies are limited due to drought-like conditions. This shall become effective upon a finding by the Board, with a majority of the Board required to vote, that a water shortage exists (a “Water Shortage”). Upon such finding, the Association may reduce, on a pro rata basis, service to all Lots or any other property otherwise served by the Potable Water System. The duration of the Water Shortage will be decided by the Board according to the exigencies of the particular situation. C. The provisions of this Section II.8 shall apply only to the use of the potable water supply of the Association. Separate provisions are provided in Article X of these Rules and Regulations for the non-potable irrigation water supply. D. During the period designated Water Shortage, there shall be no washing of sidewalks, driveways, parking areas, tennis courts, patios, or other paved areas, and no washing of privately owned cars, other motor vehicles, trailers, or boats, except from a bucket and except that a hose equipped with a positive shut-off nozzle may be used for a quick rinse. E. In the event the Association becomes aware of an immediate threat of harm to Association property, or the public health, safety or welfare, water service may be immediately suspended until compliance with these Rules and Regulations is established. F. If immediate suspension of water service is necessary, the Association will make every reasonable effort to contact the Owner verbally prior to discontinuing water service. A Notice of Emergency Water Service Suspension shall be posted in a conspicuous place at the service location. As soon as practicable after the water service has been suspended, the Association will deposit the notice in the United States Mail postage prepaid, addressed to the Owner’s address as appears in the records of the Association. The Notice of Emergency Water Service Suspension shall include the following information: i. The reasons for water service suspension and the action that must occur for water service to be resumed; and 7 ii. The name and contact information of the person at the Association who can answer questions about the water service suspension; and iii. Notice that the Owner may appeal the water service suspension. 8. Potable Water Assessments. The Association shall assess fees for potable water service in accordance with the Association’s Bylaws and the Domestic Water System Operating Agreement. In accordance with the Domestic Water System Agreement, the Association’s authority to assess fees and charges for potable water service extends to all users of the Potable Water System, including the owner of the Non-Subdivision Property, or the owner of any portion thereof. III. ARTICLE III: IMPOSITION OF FINES AND SUSPENSION OF SERVICES In compliance with C.R.S. § 38-33.3-209.5, the Association hereby adopts a written policy regarding imposition of fines and suspension of services. Prior to the imposition of a fine for violations of the Association’s Declaration, Bylaws, or Rules and Regulations, or the suspension of services, the Board shall comply with the following procedure: 1. Demand. Written demand to cease and desist from the alleged violation will be mailed by certified mail upon the alleged violator specifying: (1) the alleged violation; (2) the action required to abate the violation; and (3) a time period of not less than 10 days during which the violation may be abated without further penalty (if such violation is a continuing one) or a statement that any additional similar violation may result in the imposition of a penalty after notice and a hearing (if the violation is not continuing). 2. Notice. At any time within 12 months of such demand, if the violation continues past the period allowed in the demand for abatement or if the same rule is subsequently violated, the Board or its delegate will serve the violator with written notice by certified mail of a hearing to be held by the Board. The notice will contain the following: (1) the nature of the alleged violation; (2) the time and place of the hearing, which time will be not less than 10 days from the giving of the notice; (3) an invitation to attend the hearing and produce any statement, evidence and witness on the Owner’s behalf; and (4) the proposed penalty to be imposed. 3. Hearing. The hearing will be held pursuant to the notice, affording the Owner a reasonable opportunity to be heard in front of the Board. A decision maker shall not be deemed to have a direct personal or financial interest in the outcome if the decision make will not, as a result of the outcome, receive any greater benefit or detriment than will the general membership of the association. The Board shall be assumed to be an impartial decision maker without specific evidence presented to the contrary. 4. Proof. Official minutes shall be taken at any hearing to impose a penalty. Prior to the effectiveness of any penalty, proof of notice and an invitation to be heard will be placed in the minutes of the meeting. Such proof will be deemed adequate if a copy of the notice, together with a statement of the date and manner of delivery, is entered by the officer, director, or agent who delivered such notice. The notice requirement will be deemed satisfied if the alleged violator appears at the meeting. The minutes of the meeting will 8 contain a written statement of the results of the hearing and the penalty, if any, imposed. The presenting party will provide copies of any written evidence to the other party or parties. The decision of the Board will be final. 5. Appeal. The Board may in its discretion appoint a committee to hear the matter (a “Hearing Committee”). In such event the above procedure will apply except that either party may appeal the decision of the Hearing Committee to the Board by written notice to the Hearing Committee, the other party, and the Board. The Board will consider the minutes of the hearing and report the decision of the Board within a reasonable period of time not exceeding 60 days after receipt of the notice. The decision of the Board will be final. 6. Allocation of Attorney Fees and Costs. If, as a result of the hearing, it is determined that the Owner should not be held responsible for the alleged violation, the Association shall not allocate to the Owner’s account with the Association any of the Association’s costs or attorney’s fees incurred in asserting or hearing the claim. 7. Non-Applicability of Penalty Policy. The Association shall not be required to follow the foregoing procedures in any action to impose any penalty, cost or fee for nonpayment of a delinquent Assessment. 8. Rights to Immediate Relief. Nothing herein shall restrict the rights of the Association to seek immediate relief, including suspending domestic water service, or seeking relief from a court, including injunctive relief, for any violation involving the domestic water system, the Water Court decrees of the Association, the peace, health or safety to person or property, or for any matter where the time frame for imposing fines could result in irreversible actions being taken (i.e., construction of improvements). IV. ARTICLE IV: ALTERNATIVE DISPUTE RESOLUTION In compliance with C.R.S. § 38-33.3-124, the Association hereby adopts a written policy statement setting forth its procedure for addressing disputes arising between the Association and its Owners. 1. Agreement to Encourage Resolution of Disputes Without Litigation. The Association and its Owners, Board, and committee members, all persons subject to the Declaration, and any person not otherwise subject to the Declaration who agrees to submit to this provision (collectively, “Bound Parties”), agree that it is in the best interests of all concerned to encourage the amicable resolution of disputes involving the Association and its Owners without the emotional and financial costs of litigation. Accordingly, each Bound Party agrees not to file suit in any court with respect to a Claim described below, unless and until it has first submitted such Claim to the alternative dispute resolution (“ADR”) procedures set forth in Section 2 of this Article IV in a good faith effort to resolve such Claim. A. Definition of Claim. As used in this article, the term “Claim” shall refer to any claim, grievance, or dispute arising out of or relating to (1) interpretation, application, or enforcement of the Association documents, such as the Declaration, Bylaws, or these Rules and Regulations; (2) the rights, obligations, and duties of any Bound Party under the Association documents, such as the Declaration, 9 Bylaws, or these Rules and Regulations, or under the Colorado Common Interest Ownership Act; (3) the design or construction of improvements within the Whitecloud Ridge Subdivision; or (4) any decision of the Architectural Committee. B. Exceptions from Claim. Notwithstanding the foregoing, the following will not be considered “Claims” unless all parties to the matter otherwise agree to submit the matter to the procedures set forth in Section 2 of this Article IV: (1) any suit by the Association to collect assessments or other amounts due, including fees, from any Owner; (2) any suit by the Association to obtain a temporary restraining order (or emergency equitable relief and such ancillary relief as the court may deem necessary in order to maintain the status quo); (3) any suit involving an imminent threat to peace, health or safety of persons or property or for any matter where the time to undertake ADR could result in irreversible actions being undertaken (i.e. construction of improvements); (4) any suit involving the integrity of any water system, compliance with any water court decrees affecting the Association or the Whitecloud Ridge Subdivision, or compliance with the any requirements related to the irrigation water rights; (5) any suit between Owners, which does not include Declarant or the Association as a party, if such suit asserts a claim which would constitute a cause of action independent of the Association documents, such as the Declaration, Bylaws, or these Rules and Regulations; (6) any suit in which an indispensable party is not a Bound Party; and (7) any suit as to which any applicable statute of limitations would expire within 180 days of giving the Notice, unless the parties against whom the Claim is made agree to toll the statute of limitations as to such Claim for such period as may reasonably be necessary to comply with this Article. 2. Alternative Dispute Resolution Procedures. A. Notice. The Bound Party asserting a Claim (“Claimant”) against another Bound Party (“Respondent”) shall give written notice to each Respondent and to the Executive Board stating plainly and concisely: (1) the nature of the Claim, including the persons involved and the Respondent’s role in the Claim; (2) the legal basis of the Claim (i.e. the specific authority out of which the Claim arises); (3) the Claimant’s proposed resolution or remedy; and (4) the Claimant’s desire to meet with the Respondent to discuss in good faith ways to resolve the Claim. B. Negotiation. The Claimant and Respondent shall make every reasonable effort to meet in person and confer for the purpose of resolving the Claim by good faith negotiation. If requested in writing, accompanied by a copy of the Notice, the Board may appoint a representative to assist the parties in negotiating a resolution of the Claim. C. Mediation. If the parties have not resolved the Claim through negotiation within 30 days of the date of the notice described in Section 2A (or within such other period as the parties may agree upon), the Claimant and Respondent may agree to submit the Claim to mediation with an entity designated by the Association (if the Association is not a party to the Claim) or to an independent agency providing 10 dispute resolution services in Eagle, Garfield, or Pitkin County. If the parties agree to submit to mediation, the parties shall schedule the mediation within sixty (60) days. The cost of hiring the mediator shall be shared equally. All parties shall pay their estimated respective costs of the mediation prior to the mediation occurring. Failure to pay the respective costs of the mediation by one party in advance of the mediation shall be grounds for any other party to cancel the mediation. If the parties do not settle the Claim within 30 days after submission of the matter to mediation, or within such time as determined reasonable by the mediator, the mediator shall issue a notice of termination of the mediation proceedings indicating that the parties are at an impasse and the date that mediation was terminated. The Claimant shall thereafter be entitled to file suit or to initiate administrative proceedings on the Claim, as appropriate. 3. Settlement. Any settlement of the claim through negotiation or mediation shall be documented in writing and signed by the parties and may be presented to the court as a stipulation. If any party thereafter fails to abide by the terms of such agreement, then any other party may file suit or initiate administrative proceedings to enforce such agreement without the need to again comply with the procedures set forth in this Section. In such event, the party taking action to enforce the agreement or award shall, upon prevailing, be entitled to recover from the non-complying party (or if more than one non-complying party, from all such parties in equal proportions) all costs incurred in enforcing such agreement or award, including, without limitation, attorney’s fees and court costs. V. ARTICLE V: ARCHITECTURAL REVIEW PROCESS & GUIDELINES In compliance with C.R.S. § 38-33.3-302(3)(b), the Association hereby adopts standards and procedures to guide decisions concerning the approval or denial of an Owner’s application for architectural or landscaping changes. 1. Exterior Materials. The exterior materials used on structures in the Whitecloud Ridge Subdivision shall be as follows: A. Walls. All structures shall use a combination of cement board, stone, stucco, or other materials approved by the Architectural Committee. B. Roofs. All roofs shall have natural colors and consist of asphalt, shingles, non- reflective metal, or other materials approved by the Architectural Committee. C. Exterior Doors. Exterior front doors on structures must conform with the architecture of the structure. Garage doors shall be wood, metal, or masonite with a wood veneer stained to match the front door as closely as possible, or as approved by the Architectural Committee. D. No bright, unfinished surfaces shall be allowed. All metallic surfaces, such as roof vents, flashing, fireplace flues and gutters shall be coated or painted to match the predominant color of the roof, fascia or exterior siding of the house, or as approved by the Architectural Committee. 11 2. Roofs and Eaves. The form of the roof and the materials used on it create a significant part of the visual impact of a building, and will be carefully reviewed by the Architectural Committee. Gable, hip and shed roofs will generally be acceptable for residential construction, while gambrel, flat, mansard and A-frame roofs will not be encouraged. Large roof forms or long, uninterrupted ridge lines should be complemented with smaller forms, such as dormers or shed roofs. With few exceptions, the predominate roof pitch should not be less than 5:12, with steeper pitches encouraged. Roof eaves are encouraged to be 18" to 24" in length for roofs with a shallower pitch, and in no event less than 12" for steeper pitch roofs. However, these roofs and any other unique forms developed will be reviewed on their merits on a case-by-case basis. 3. Landscaping. The Architectural Committee encourages the use of landscaping, plant materials of a variety of heights and sizes, walkways and paths, and berms and swales to enhance the appearance of a residence and surrounding neighborhood. A. Within six (6) months after completion of improvements or additions, or within any extension period granted by the Architectural Committee, all yards and open space shall be landscaped and thereafter maintained in landscape; provided, however, that the open space that is a portion of Lots 7, 8, 9, and 10 and encircled by Whitecloud Road, as depicted on that Whitecloud Ridge Subdivision Final Plat recorded at reception number 571155 in the real property records of the Garfield County Clerk and Recorder, shall be landscaped, irrigated, and maintained by the Association, and the Owner(s) of Lots 7, 8, 9, and 10 shall not be responsible for the landscaping, irrigation, or maintenance or such open space. B. Areas surrounding the structure may incorporate more manicured plant materials (i.e., sod). It is recommended that a buffer comprised of flowers, bushes, shrubs or trees exist between the foundation and sodden areas to reduce the visual impact of the structure. The plant materials in buffer areas should require low levels of irrigation water. Grades surrounding the house should exceed 3% to allow proper drainage away from the foundation. 4. Architectural Review Fee. At the time an application is submitted to the Architectural Committee for review of any plans as required by the Declaration, the Owner shall deposit with the Association (i) a non-refundable fee of $5,000, (ii) a refundable (subject to these Rules and Regulations) fee of $20,000. The Owner shall be responsible to reimburse the Association for all amounts generated as the result of a review of an application by the Architectural Committee, even if such review exceeds $25,000. If such review exceeds $5,000, then such excess costs shall be deducted from the $20,000 deposit. The Association and/or Architectural Committee shall prepare an accounting of costs that exceed the $5,000 initial payment and shall provide the same to the Owner. The Owner shall reimburse the Association the amount on the accounting that exceeds both the $5,000 deposit and the $20,000 deposit, in the aggregate, within thirty (30) days. Failure to reimburse the Association the amount on the accounting in a timely manner may result in a lien being placed on the Owner’s property by the Association. Following substantial completion of the improvements, if the Architectural Committee determines in its reasonable discretion that such improvements comply with the plans approved by the Architectural Committee, 12 then the Association shall refund the $20,000 or the portion of such deposit that remains after accounting for review costs, without interest. If the constructed improvements on the Owner’s Lot are not in substantial compliance with the plans the Architectural Committee approved, then, in its reasonable discretion, the Architectural Committee may withhold all or a portion of the $20,000 deposit; if, in the Architectural Committee’s reasonable discretion, the Owner cures such non-compliance, then the Architectural Committee shall return the remainder of such $20,000 deposit (without interest) that it withheld, less any additional review costs, to the Owner. 5. Construction Damage Deposit. Prior to receiving an approval from the Architectural Committee for constructing any improvement on any Lot, the Owner shall deposit with the Association the amount of $10,000. This deposit shall be deposited into an account of the Association that is separate from the general operating account of the Association. After the Owner has completed the approved improvements on the Lot, the Owner shall give the Association notice of completion in writing. The Association shall have thirty (30) days to inspect the improvements and the impact of construction thereof on any improvements, lands or infrastructure owned or maintained by the Association (i.e., common elements, roads, sidewalks, water pipes, irrigation ditches, open spaces areas). In the event that construction on an Owner’s Lot has resulted in the imposition of a construction debris fine described in Section 6 below or caused damage to improvements, lands or infrastructure owned or maintained by the Association, the Association shall provide an accounting of the damage to the Owner within forty-five (45) days of receiving the notice of completion. The Association shall be entitled to withhold such amounts from the deposit as will be required to offset any fines and to repair or replace any damage. The remainder, if any, shall be returned to the Owner together with the accounting, without interest. The Owner shall be responsible to reimburse the Association for all amounts required to repair or replace the damage, even if such review exceeds the deposit of $10,000. The Owner shall reimburse the Association the amount on the accounting within thirty (30) days. Failure to reimburse the Association the amount on the accounting in a timely manner may result in a lien being placed on the Owner’s property by the Association. 6. Construction Fines. All Owners are required to maintain neat, orderly construction sites on the Lots and to prevent construction debris from blowing into and accumulating upon adjacent Lots. In the event an Owner fails to maintain his or her Lot construction site in such a debris-free and orderly manner, the Architectural Committee, with the approval of the Board of Directors, shall have the authority to levy reasonable fines of up to $100.00 per day per occurrence payable from the construction damage deposit. The Architectural Committee shall first provide written notice to the Owner by first class mail describing the construction debris issue. Upon failure by the Owner to cure the condition within ten (10) days of the posting of the notice, the Architectural Committee may assess the fine and withhold such monies from the construction damage deposit. 7. Pools. No above ground swimming pools are permitted. Architectural Committee approval of all swimming pools is as follows: 13 A. The Owner must demonstrate compliance with all County, State, and other governmental legal requirements. B. Plans submitted to the Architectural Committee must include: (a) pool size, (b) placement of pool on Lot, (c) required safety fencing and (d) landscaping. All swimming pools shall be consented to by any neighboring Owner whose line of sight would be affected; such neighboring Owner(s) shall evidence their consent in writing. C. The signed plans must then be presented to the Architectural Committee for final approval. D. Construction of pool to be completed within sixty (60) days. Extensions may be granted at discretion of the Architectural Committee. E. Any debris or mud deposited on a Subdivision street as a result of construction must be removed and the street returned to preconstruction condition at Owner’s expense. 8. Sheds. Any Owner wishing to construct, erect, or otherwise maintain a shed must: A. Have a completed residence on the Lot prior to construction of a shed. B. The exterior of the shed must conform to building materials and colors of residence. C. The location of the shed shall be submitted to any adjacent Owners whose line of sight would be affected, and such Owners shall have a period of no less than fourteen (14) to submit comments to the Architectural Committee before the Architectural Committee makes any determination on the approval of the shed. D. After submittal of the signed plans to all adjacent Owners whose line of sight would be affected, the signed plans must then be presented to the Architectural Committee for final approval, which approval may not be given sooner than fourteen (14) days after submittal of the signed plans. The Architectural Committee shall consider comments from any adjacent Owners whose line of sight would be affected. 9. Yard Structures. Any yard structure, including but not limited to, solar panels, swings, slides, forts, water features, gazebos, shall be constructed only after obtaining the signed approval of the Architectural Committee. The Architectural Committee may issue its approval only after adjacent Owners whose line of sight would be affected have been given written notice of such proposed yard structure and not less than fourteen (14) days to provide comments to the Architectural Committee. The placement of solar panels must take into consideration the affect glare may have on other Owners. Additional screening or landscaping may be necessary. Color of yard structures should be in accordance with the Association’s architectural guidelines. The signed plans must then be presented to the Architectural Committee for final approval. 14 VI. ARTICLE VI: OWNER EDUCATION In compliance with C.R.S. § 38-33.3-209.7, the Association hereby adopts a policy regarding owner education. 1. The Association shall provide, or cause to be provided, education to Members at no cost on at least an annual basis as to the general operations of the Association and the rights and responsibilities of Members, the Association, and its Board under Colorado law. 2. The Board has determined that any or all of the following actions shall constitute compliance with such statutory education requirements: A. Making available a copy of the Colorado Common Interest Ownership Act “CCIOA” at the property management firm. B. Upon Owner request, providing a copy of the CCIOA provisions at no charge to the Owner. VII. ARTICLE VII: PUBLIC DISCLOSURES In compliance with C.R.S. § 38-33.3-209.4, the Association hereby adopts a written policy regarding public disclosures. 1. The Association shall make all information required by C.R.S. § 38-33.3- 209.4 available to all Owners at no charge to Owners. 2. The Association may use any or all of the following methods and means of disclosure in compliance with this policy: A. Posting the information on an Internet web page with accompanying notice of the web address to the Owners. B. Maintenance of a literature table or binder at the Association’s property management firm. C. U.S. mail. D. Personal delivery. 3. The cost of such distribution shall be accounted for as a common expense liability. VIII. ARTICLE VIII: MEETINGS In compliance with C.R.S. § 38-33.3-308 and to supplement the Association’s Bylaws, the Association hereby adopts a written policy regarding meetings. 1. Notice. Notice of any meeting of the Owners shall be physically posted in a conspicuous place, in addition to any electronic posting or electronic mail notices that may be 15 given. At least twenty-four (24) hours prior to the meeting, the Association shall provide notice of all regular and special meetings of Owners by e-mail to all Owners who have requested such notice and who have furnished the Association with their e-mail addresses. 2. Attendance. All regular and special meetings of the Association’s Board or any committee thereof shall be open to all Owners or their representatives. Agendas for meetings of the Board shall be made reasonably available for examination by Owners or representatives prior to said meetings, whenever reasonably possible. 3. Comment. At an appropriate time determined by the Board, but before the Board votes on an issue under discussion, Owners or their designated representatives shall be permitted to speak regarding that issue. A. The Board may place reasonable time restrictions on persons speaking during the meeting. B. If more than one (1) person desires to address an issue and there are opposing views, the Board shall provide for a reasonable number of persons to speak on each side of the issue. 4. Executive Session. The members of the Board or any committee thereof may hold an executive or closed-door session and may restrict attendance to Board members and any other persons requested by the Board during a regular or specially announced meeting or a part thereof. A. The matters to be discussed at an executive session shall be limited to the matters enumerated in C.R.S. § 38-33.3-308(4). B. Prior to the executive session, the chair of the Board of committee thereof shall announce the general matter of discussion at the session. C. The minutes of all meetings at which an executive session was held shall indicate that an executive session was held and the general subject matter of the executive session. 5. Rules and Regulations. A rule or regulation may be validly adopted only during a regular or special meeting open to all Owners and not during an executive session. IX. ARTICLE IX: NOXIOUS WEED CONTROL The Association is committed to protecting the native plant communities within the Whitecloud Ridge Subdivision and recognizes that noxious weed control is best achieved by raising homeowner awareness through education, suppressing, and eradicating existing noxious weed populations, and preventing further spread of noxious weed growth into future areas. Private property in Colorado is subject to the Colorado Noxious Weed Act, which mandates, among other provisions, that “is the duty of all persons to use integrated methods to manage noxious weeds if the same are likely to be materially damaging to the land of neighboring landowners.” C.R.S. § 35- 5.5-104. Noxious weeds that have established as a result of a site disturbance or are present in the 16 “natural area” of the landscape are required to be managed under a program of control. This requirement extends to undeveloped Lots in the Whitecloud Ridge Subdivision. Any Owner that fails to control noxious weeds on their Lot will be notified by the Association. The Owner shall have two (2) weeks to undertake appropriate weed eradication efforts. Failure of an Owner to adequately control weeds on a Lot may result in notice being given by the Association to the appropriate regulatory authority. The Association may also impose fines on an Owner in accordance with Article III of these Rules and Regulations for non-compliance with a notice to eradicate noxious weeds. The state Agricultural Commissioner’s office maintains lists of noxious plants divided according to the following: List A – species new or not yet present in the state but proven threats to surrounding states; List B – species more common and widespread; and List C – species so numerous and common that the goal is containment to present boundaries. Information on identification and containment of noxious weeds is available from on the Colorado Department of Agriculture website. X. ARTICLE X: IRRIGATION COMPANY SHARES 1. Association’s Ownership in the Missouri Heights-Mountain Meadow Irrigation Company. The Association owns 150 shares of Class A stock and 270 shares of Class B stock (the “Irrigation Company Shares”) in the Missouri Heights-Mountain Meadow Irrigation Company (“MHMMIC”). Water available under the Irrigation Company Shares is authorized for irrigation use within the Whitecloud Ridge Subdivision. The quantity of water available under the Irrigation Company Shares may vary from year-to-year; in dry years, there may be no water available for delivery under the Irrigation Shares. 2. Allocation of Water Available Under the Irrigation Company Shares. Water available under the Association’s Shares is allocated to each Lot as described in the following table, provided that the Association does not guarantee the delivery of any quantity of water available under the Irrigation Company Shares to any Lot. Lot Allocation of Water Available Under the Association’s Shares 1 2.5% 2 2.5% 3 2.5% 4 2.5% 5 5.0% 6 5.0% 7 5.0% 8 2.5% 9 2.5% 10 7.0% 11 18.0% 17 12 21.0% 13 21.5% 14 2.5% 3. Irrigation Water Assessments. The Association shall assess fees for irrigation water to cover expenses associated with the operation, maintenance and repair of the irrigation delivery infrastructure and to cover annual Irrigation Company assessments. Such fees shall be assessed in accordance with the Association’s Bylaws. XI. ARTICLE XI: MISCELLANEOUS PROVISIONS 1. Restrictions on Aircraft. No aircraft larger than three feet in length and 3 feet in width are permitted to be operated on the Whitecloud Ridge Subdivision. 2. Leasing of Lots. “Leasing,” for purposes of these Rules and Regulations, means regular, exclusive occupancy or a Lot, dwelling, structure, improvement, or any portion thereof, by any person other than the Owner, for which the Owner receives any consideration of benefit, including rental payments, other fees or charges, services, or gratuities. All such leases must be in writing and specifically state that such lease is subject to the Declaration, the Bylaws, and these Rules and Regulations, and any failure of a tenant to comply therewith will be a default under the lease. The Owner shall be liable for any violation of the Declaration, Bylaws, or Rules and Regulations committed by such Owner’s tenant. The Owner must make available to each tenant copies of the Declaration, Bylaws, and Rules and Regulations. No lease or other right to occupy a Lot, dwelling, structure, improvement, or any portion thereof or any portion of the Whitecloud Ridge Subdivision shall have a duration that is shorter than 90 days; provided, however, that a lease for an ADU may be for fewer than 90 days. 3. Marijuana Grow Houses. No more than three (3) marijuana plants shall be grown on any Lot at any single time. Any such plants shall be out of sight of all other Owners and shall not create a nuisance, whether due to odors or otherwise, of any sort for other Owners. 18 EXHIBIT A Legal Description of Non-Subdivision Property A PARCEL OF LAND SITUATED IN THE SW1/4 AND THE W1/2SE1/4 OF SECTION 28, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID PARCEL BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SECTION 28, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE N 63 DEGREES 50'49" E A DISTANCE OF 1573.54 FEET TO A POINT ON THE WESTERLY BOUNDARY OF THE SE1/4SW1/4 OF SAID SECTION 28; THENCE N 03 DEGREES 23'54" E ALONG SAID WESTERLY BOUNDARY A DISTANCE OF 44.97 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF LEVITT LANE, THE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID WESTERLY BOUNDARY N 03 DEGREES 23'54" E A DISTANCE OF 69.65 FEET TO A POINT ON THE NORTHERLY BOUNDARY OF SAID LEVITT LANE; THENCE LEAVING SAID WESTERLY BOUNDARY S 62 DEGREES 14'46" W ALONG SAID NORTHERLY BOUNDARY A DISTANCE OF 15.12 FEET; THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 17 DEGREES 43'43", A DISTANCE OF 154.71 FEET (CHORD BEARS S 71 DEGREES 06'37" W A DISTANCE OF 154.09 FEET); THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY S 79 DEGREES 58'28" W A DISTANCE OF 155.83 FEET; THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 170.00 FEET AND A CENTRAL ANGLE OF 68 DEGREES 26'41", A DISTANCE OF 203.08 FEET (CHORD BEARS N 65 DEGREES 48'11" W A DISTANCE OF 191.22 FEET); THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY N 31 DEGREES 34'50" W A DISTANCE OF 76.82 FEET; THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 05 DEGREES 08'52", A DISTANCE OF 35.94 (CHORD BEARS N 34 DEGREES 09'16" W A DISTANCE OF 35.93 FEET); THENCE CONTINUING ALONG SAID NORTHERLY BOUNDARY N 36 DEGREES 43'42" W A DISTANCE OF 100.68 FEET TO A POINT ON THE EASTERLY BOUNDARY OF WHITECLOUD ROAD; THENCE LEAVING SAID NORTHERLY BOUNDARY ALONG THE EASTERLY BOUNDARY OF WHITECLOUD ROAD ALONG THE ARC OF A NON-TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 280.00 FEET AND A CENTRAL ANGLE OF 17 DEGREES 47'49" A DISTANCE OF 86.97 FEET (CHORD BEARS N 38 DEGREES 13'21" E A DISTANCE OF 86.62 FEET); THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY N 29 DEGREES 19'26" E A DISTANCE OF 99.23 FEET; THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 220.00 FEET AND A CENTRAL ANGLE OF 52 DEGREES 15'54" A DISTANCE OF 200.68 FEET (CHORD BEARS N 55 DEGREES 27'23" E 193.80 FEET); THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY N 81 DEGREES 35'20" E A DISTANCE OF 281.45 FEET; THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 120.00 FEET AND A CENTRAL ANGLE OF 77 DEGREES 47'32" A DISTANCE OF 162.93 FEET (CHORD BEARS N 42 DEGREES 41'34" E A DISTANCE OF 150.70 FEET); THENCE CONTINUING ALONG SAID EASTERLY BOUNDARY N 03 DEGREES 23'54" E A DISTANCE OF 105.57 FEET; THENCE LEAVING SAID EASTERLY BOUNDARY S 89 DEGREES 45'54" E A DISTANCE OF 603.84 FEET; THENCE N 69 DEGREES 11'09" E A DISTANCE OF 876.78 FEET TO A POINT ON THE CENTERLINE OF HARMONY LANE; THENCE THE FOLLOWING THIRTEEN (13) COURSES ALONG SAID CENTERLINE: 1. S 00 DEGREES 34'25" W A DISTANCE OF 226.26 FEET 2. S 02 DEGREES 28'40" E A DISTANCE OF 91.04 FEET 3. S 06 DEGREES 19'45" E A DISTANCE OF 119.31 FEET 4. N 89 DEGREES 44'08' W A DISTANCE OF 5.95 FEET 5. S 01 DEGREES 14'48" E A DISTANCE OF 280.78 FEET 6. S 02 DEGREES 01'27" W A DISTANCE OF 115.18 FEET 7. S 00 DEGREES 39'06" W A DISTANCE OF 148.53 FEET 8. S 01 DEGREES 44'55" E A DISTANCE OF 133.99 FEET 19 9. S 04 DEGREES 29'01" E A DISTANCE OF 106.53 FEET 10. ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 1475.00 FEET AND A CENTRAL ANGLE OF 03 DEGREES 53'15" A DISTANCE OF 100.08 FEET (CHORD BEARS S 06 DEGREES 25'38" E A DISTANCE OF 100.06 FEET) 11. S 08 DEGREES 22'15" E A DISTANCE OF 67.98 FEET 12. ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 126.84 FEET AND A CENTRAL ANGLE OF 43 DEGREES 01'03", A DISTANCE OF 95.23 FEET (CHORD BEARS S 13 DEGREES 08'18" W A DISTANCE OF 93.01 FEET) 13. S 38 DEGREES 11'47" W A DISTANCE OF 18.82 FEET THENCE LEAVING SAID CENTERLINE S 89 DEGREES 43'12" W A DISTANCE OF 30.74 FEET; THENCE N 01 DEGREES 52'30" E A DISTANCE OF 329.19 FEET; THENCE N 89 DEGREES 58'25" W A DISTANCE OF 110.00 FEET TO A POINT ON THE EASTERLY BOUNDARY OF THE GLEN SUBDIVISION EXEMPTION; THENCE N 02 DEGREES 06'23" E ALONG SAID EASTERLY BOUNDARY A DISTANCE OF 49.20 FEET TO THE NORTHEAST CORNER OF SAID SUBDIVISION EXEMPTION; THENCE S 89 DEGREES 56'49" W ALONG THE NORTHERLY BOUNDARY OF SAID SUBDIVISION EXEMPTION A DISTANCE OF 677.27 FEET TO THE NORTHWEST CORNER OF SAID SUBDIVISION EXEMPTION; THENCE S 02 DEGREES 39'45" W ALONG THE WESTERLY BOUNDARY OF SAID SUBDIVISION EXEMPTION A DISTANCE OF 682.91 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF SAID SECTION 28; THENCE S 89 DEGREES 39'09" W ALONG SAID SOUTHERLY BOUNDARY A DISTANCE OF 503.16 FEET; THENCE LEAVING SAID SOUTHERLY BOUNDARY N 00 DEGREES 00'00" W A DISTANCE OF 30.00 FEET; THENCE N 89 DEGREES 39'09" E A DISTANCE OF 425.10 FEET; THENCE N 00 DEGREES 00'00" W A DISTANCE OF 59.07 FEET; THENCE N 41 DEGREES 24'02' W A DISTANCE OF 642.79 FEET; THENCE N 00 DEGREES 00'00" W A DISTANCE OF 83.42 FEET; THENCE N 49 DEGREES 45'04" E A DISTANCE OF 99.80 FEET; THENCE N 00 DEGREES 06'30" W A DISTANCE OF 76.47 FEET; THENCE N 40 DEGREES 28'34" W A DISTANCE OF 69.78 FEET TO A POINT ON THE SOUTHERLY BOUNDARY OF AN ACCESS AND UTILITY EASEMENT; THENCE S 49 DEGREES 31'26" W ALONG SAID SOUTHERLY BOUNDARY A DISTANCE OF 97.08 FEET; THENCE CONTINUING ALONG SAID BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 330.00 FEET AND A CENTRAL ANGLE OF 12 DEGREES 43'20", A DISTANCE OF 73.27 FEET (CHORD BEARS S 55 DEGREES 53'06" W A DISTANCE OF 73.12 FEET); THENCE CONTINUING ALONG SAID BOUNDARY S 62 DEGREES 14'46" W A DISTANCE OF 17.93 FEET; THENCE CONTINUING ALONG SAID BOUNDARY ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 560.00 FEET AND A CENTRAL ANGLE OF 02 DEGREES 08'23", A DISTANCE OF 20.91 FEET (CHORD BEARS S 63 DEGREES 18'58" W A DISTANCE OF 20.91 FEET) TO THE POINT OF BEGINNING. COUNTY OF GARFIELD STATE OF COLORADO Parcel/Lot Dwelling Units Lawn and Garden Area Livestock Jan Feb March April May June July Aug Sept Oct Nov Dec Total Total (square feet)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(gal)(AF) 1 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 2 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 3 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 4 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 5 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 6 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 7 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 8 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 9 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 10 1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 11 1 1,500 2 12,000 12,000 12,000 15,000 30,000 30,000 30,000 30,000 30,000 12,000 12,000 12,000 237,000 0.73 12 2 1,500 2 22,830 22,830 22,830 23,830 36,000 36,000 36,000 36,000 36,000 25,430 22,830 22,830 343,410 1.05 13 2 1,500 2 22,830 22,830 22,830 23,830 36,000 36,000 36,000 36,000 36,000 25,430 22,830 22,830 343,410 1.05 C(14)1 1,500 10,500 10,500 10,500 11,000 25,000 25,000 25,000 25,000 25,000 11,800 10,500 10,500 200,300 0.61 D 7 10,500 6 77,160 77,160 77,160 80,660 120,330 120,330 120,330 120,330 120,330 86,260 77,160 77,160 1,154,370 3.54 Open Space 0 21,780 6,500 20,000 20,000 20,000 20,000 20,000 6,500 113,000 0.35 Total 23 53,280 12 250,320 250,320 250,320 270,820 517,330 517,330 517,330 517,330 517,330 285,420 250,320 250,320 4,394,490 13.49 Total (AF)0.77 0.77 0.77 0.83 1.59 1.59 1.59 1.59 1.59 0.88 0.77 0.77 13.49 EXHIBIT B - Water Allocation Whitecloud HOA Potable Water System Monthly Allocation 21650 LRE WATER 20 MJE February 2, 2022 21 EXHIBIT C Water Charges For any amount of potable water provided to a Lot in excess of the monthly allocation amounts set forth in Exhibit B to these Rules, Regulations & Policies, the following charges shall apply: a.For the first 1,000 gallons in excess of the Lot’s potable water allocation: $200.00 (the “Tier One Rate”); b.For the second through fifth 1,000 gallons in excess of the Lot’s potable water allocation: $300.00 per 1,000 gallons (the “Tier Two Rate”); and c.For the sixth and each subsequent 1,000 gallons in excess of the Lot’s water allocation: $400.00 per 1,000 gallons (the “Tier Three Rate”). These charges shall be imposed at the Board’s discretion. If there are mitigating circumstances beyond the Owner’s control, the charges may be waived or reduced by the Board. 17915125_v11 107 Geotechnical Study and Lot Specific OWTS Designs HEPWORTH-PAWLAK GEOTECHNICAL, INC. 5020 Road 154 Glenwood Springs, CO 81601 Fax 970 945-8454 Phone 970 945-7988 PRELIMINARY GEOTECHNICAL STUDY PROPOSED LEVITT SUBDIVISION SOUTH OF FENDER LANE AND WEST OF HARMONY LANE, GARFIELD COUNTY, COLORADO JOB NO. 195 524 December 29, 1995 PREPARED FOR: THOMAS LEVITT P.O. BOX 414740 KANSAS CITY, MISSOURI 64141 HEPWORTH-PAWLAK GEOTECHNICAL, INC. December 29, 1995 Thomas Levitt P.O. Box 414740 Kansas City, Missouri 64141 502( Road 154 Glenwood Springs, CO 81601 fax 970 945-8454 Phone 970 945-7988 Job No. 195 524 Subject: Preliminary Geotechnical Study, Proposed Levitt Subdivision, South of Fender Lane and West of Harmony Lane, Garfield County, Colorado Gentlemen: As requested, we have conducted a geotechnical study for the proposed subdivision at the subject site. The property is suitable for the proposed development, based on geotechnical conditions. It should be possible to construct single family residences on the thirteen proposed lots, without encountering unusual problems associated with the site geology, if the steeply sloping areas are avoided. The residences shouid be designed to withstand moderate levels of earthquake related ground shaking. Subsurface conditions encountered in the exploratory pits excavated in the general development area consist primarily of sandy silts and clays overlying dense silty sand and gravel with basalt fragments. Groundwater was not encountered in the pits and the soils were moist. Spread footings placed on the natural subsoils and designed for an allowable bearing pressure of 2,000 psf to 4,000 psf appear suitable for support of single family residences. The report which follows describes our investigation, summarizes our findings, and presents our recommendations suitable for planning and preliminary design. It is important that we provide consultation during design, and field services during construction, to review and monitor the implementation of the geotechnical recommendations. If you have any questions regarding this report, please contact us. Sincerely, HEPWORTH-PAWLAK GEOTECHNICAL, INC. Daniel E. Hardin, P.E. Rev. By: SLP DEH/kmk cc: Land Design Partnership - Attn: Ron Liston