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HomeMy WebLinkAbout20062146.tiff PLANNED UNIT DEVELOPMENT (PUD) FINAL PLAT APPLICATION FOR PLANNING DEPARTMENT USE DATE RECEIVED: RECEIPT#/AMOUNT# /$ CASE#ASSIGNED: APPLICATION RECEIVED BY hh PLANNER ASSIGNED: Parcel Number O 5 5 S - 3 L - v - G (7 - 4 ei (12 digit number-found on Tax I.D. information,obtainable at the Weld County Assessor's Office,or www.co.weld.co.us). (Include all lots being included in the application area,If additional space is required,attach an additional sheet) Legal Description a part Of I he SE 1/4 , Section 37 , Township S North, Range 67 West Property Address (If Applicable) — N Existing Zone District : P(,I D Proposed Zone District: Total Acreage: 21 7q Proposed #/Lots Average Lot Size: 2-. Sc., Ac- Minimum Lot Size: 2.•07 A C Proposed Subdivision Name:WQ'+erfer[A 'Hill PGAD Proposed Area (Acres) Open Space: -e- Are you applying for Conceptual or Specific Guide? Conceptual Specific XI FEE OWNER(S)OF THE PROPERTY (If additional space is required,attach an additional sheet) Name: Wht� Mgt Wt L-1,C- Work Phone#ll0-221- t4Z8 Home Phone# `11D--2-27-Z r/1ZSEmail Addressmalo&. (b(brrviD- IAnc•LOW Address: ti lq E • MUlbGt'ry City/State/Zip Code 1Fnr4 (t)( OS I (D %0524 APPLICANT OR AUTHORIZED AGENT(See Below:Authorization must accompany applications signed by Authorized l Agent) Name: MgVV 2 a1'Slbu) /KL0 1 1` iosE S- frU\ Nue 1: s :&,- 720 JPo\ t ( rt s.+3t X031 Work Phone# 221- 14Z. Home Phone# 22`1-2^125 Email AddressVnarvh & eotorac(o-lAt7cl•tonn Address: l-IM . MU, lottery City/State/Zip Code 'RCA- C61i11�s , (0 `150524 UTILITIES: Water: 1vtrfh WQ.LI County WA+er 171SfrlcF Sewer: - S2 p-hL- Gas: )(cc) Evletr y Electric: Po mare_ Va lty Qt4E Phone: QU)2St (b mun4.c—GL)lo'nc DISTRICTS: School: V\l ind4or 12-E,A- . Fire: Ault c-I Post: -1--t r4 CIA i I (We) hereby depose and state under penalties of perjury that all statements, proposals, and/or plans submitted with or contained within the application are true and correct to the best of my (our)knowledge. Signatures of all fee owners of property must sign this application. If an Authorized Agent signs, a letter of authorization from all fee owners must be included with the application. If a corporation is the fee owner, notarized evidence must be included indicating the signatory has the legal authority to sign for the corporation. I (we),the undersigned, hereby request the Department of Planning Services to review this PUD Final P or request hearings before the Weld County Planning Commission and the Board of County Commissioners co er in PUD Fi I Plat for the above described unincorporated area of Weld County, Colorado: OZ ignap re: Owne or Authorized Agent Date Signature: Owner or Authorized Agent Date 2006-2146 -11- Page 1 of 1 Chris Gathman From: Melanie Foslien [mfoslien@kbnengineers.com] Sent: Thursday, June 22, 2006 9:05 AM To: Chris Gathman Subject: Waterford Hill contact information Ketterling, Butherus & Norton Engineers, LLC. 820 8th Street Plaza Greeley, Colorado 80631 Phone(970)395-9880 Fax(970)395-9881 www.kbnengineers.com L I EMAIL TRANSMITTAL Date: June 22,2006 Subject: Waterford Hill contact information X As Per Your Request _ For Your Information For Your Approval For Your Review/Comment Chris, When sending information for Waterford Hill PUD to the applicant (Mary Barstow), please also send it to our office: KBN Engineers 820 8th Street Greeley, CO 80631 395-9880 395-9881 fax It would be just as easy for me to walk the 3 blocks to your office to pick up anything you have! Please call if you have any questions. Thank You ! Melanie Foslien E.I. KBN Project No. 05026 06/22/2006 :A_ . ENGINEERS June 12, 2006 Mr. Kim Ogle Planning Manager Weld County Department of Planning Services 918 10th Street Greeley, Colorado 80631 Re: Final Plat Submittal for Waterford Hill PUD (PZ-1095) KBN Project No. 05026 Dear Kim, Please find attached the following items for PZ-1095 (Waterford Hill PUD) for your review: 1. One (1) application fee check (number 1388 dated 6-9-06) for$2,400 2. One (1) copy of the Bargain and Sale Deed (outlots), 1 page 3. One (1) copy of the Bargain and Sale Deed (roads), 1 page 4. One (1) copy of the Statement of Taxes Due, 1 page 5. One (1) copy of the Weld County Public Works referral dated October 25, 2005 for evidence that Weld County Road 15 is adequate in functional classification, width and structural capacity. 6. Three (3) copies of the Construction Financing, Cost and Schedule, 1 page 7. One (1) copy of the Mineral and/or Subsurface Owners affidavit and list of names, 2 pages 8. One (1) copy of the Surrounding Property Owners affidavit and list of names, 2 pages 9. One (1) copy of the street name and address approval by the United States Postal Service, 3 pages 10. One (1) copy of the Pavement Section Recommendation by Earth Engineering Consultants, 2 pages 11. Three (3) copies of the Final Drainage Report 12. One (1) copy of the Title Commitment 13. Four(4) copies of the On-Site Improvements Agreement, 11 pages 14. Four(4) copies of draft Covenants 15. One (1) set of wet stamped construction plans, sheets 1 through 16 of 16 16. Two (2) copies of the road plans, sheets 1 through 16 of 16 17. Twenty-five (25) packets containing copies of the following: • Application • Statement of Compliance& Specific Development Guide, 4 pages • Road Access Information, 2 pages • Final Plat, sheets 1 through 3 of 3 (by RJL Surveys) • Utility Plan, sheet 6 of 16 • Landscape Plan, sheets 1 and 2 of 2 (by Vignette Studios) Please call if you have any questions. Thank you, \ACkat'UL a21/41-1° Melanie Foslien, E.I. Ketterling, Butherus & Norton Engineers, LLC. 820 8th Street / Greeley.Colorado 80631 / tel 970-395-9880 / fax 970-395-9881 1 WATERFORD HILL P.U.D. STATEMENT OF COMPLIANCE & SPECIFIC DEVELOPMENT GUIDE WELD COUNTY, COLORADO Statement of Compliance Ketterling, Butherus & Norton Engineers, LLC has designed Waterford Hill PUD final plans to be in compliance and meets all criteria as set forth in the Change of Zone. The following list of items has been submitted as required: 1. On-Site Improvements Agreement 2. Draft copy of Covenants 3. Street names were revised to "Way" and "Place" on plat and construction drawings 4. Street name and address approval by United States Postal Service 5. Change of Zone plat showing Weld County Roads 15 and 86 having 30' of right-of-way as measured from the centerline. 6. Pavement Section design recommendation letter 7. Proposed easements shown on plat and construction drawings 8. Sight distance triangles on the Landscape Plan 9. One (1) complete set of stamped, signed and dated construction plan drawings 10. Stop signs and street signs shown on construction plans 11. One (1) stamped, signed and dated Final Drainage Report 12. Grading and erosion control plans included in construction plans 13. Two septic system envelopes shown on each lot meeting all setbacks A construction detail for typical lot grading with respect to drainage was not included. Because the minimum lot size is 2.5 acres, drainage from one house/lot will not impact the adjacent house/lot as it might on a smaller lot. A swale has been added along the west property line to capture and divert flows from this project to the detention pond, rather than sheet flow onto the adjacent property. Specific Development Guide Waterford Hill P.U.D. is a 29.8-acre residential subdivision that will consist of nine acreage building sites in a proposed gated community. Lots range in size from 2.50 acres to 2.78 acres. Structures allowed in this subdivision will be single-family residential homes and outbuildings that match or compliment the house in style and design. Strong covenants will be in place to assure high quality homes, but a set architectural style will not be dictated. This will give the neighborhood more character and avoid a dated appearance in the future. Horses and other farm type animals will not be permitted. Common open space will not be incorporated into this project given the large lot sizes. Each owner will have plenty of room to recreate on their own property. The Home Owners Association will own a 4,574 square foot parcel north of the subdivision entrance and a 2,120 square foot parcel south of the entrance, both of which will be landscaped. The HOA will also own and maintain the 800 square foot landscaped island, with the entrance signage, in the entrance drive for the bus turnaround, as well as the 1.98-acre detention pond. Strict covenants will require that property owners must landscape their property within 12 months of occupying • the house. Potable water will be supplied by North Weld County Water District. Each lot will utilize an individual septic system constructed to Weld County Health Department standards. The private streets in the subdivision will be "Local" designation. The right-of-way width will be 60', with 24' of asphalt pavement and 4' gravel shoulders. Storm water will be carried in roadside drainage swales to the detention pond located in the southwest portion of the project. Driveways will have culverts for storm water conveyance. The Home Owners Association will be responsible for snow removal, seal-coating and other roadway related maintenance. The applicant will design adjacent roadways as required by the County Public Works Department. There are no unique natural features within the proposed PUD. The site is not in the floodplain, geological hazard, airport overlay, MUD or intergovernmental agreement district areas. Anadarko (formerly Union Pacific) owns the oil, gas and minerals associates with this property. They see little potential for coal, and will vacate their rights to "hard minerals" for a reasonable fee. Any potential oil or gas wells would not be drilled on this site, but rather to the south and west. The land has been used for agricultural purposes, with alfalfa being the current crop. Initial impact plan on the proposed site and surrounding land uses: Environmental: • Noise and vibration — no impact • Smoke, dust and odors — no impact • Heat, light and glare — no impact • Visual/aesthetic impacts— no impact • Electrical interference — no impact • Water pollution — no impact • Wastewater disposal — septic systems • Wetland removal — no impact • Erosion and sedimentation — minimal impact in areas of homes and detention pond • Excavating, filling and grading — internal roadways, detention pond and home sites • Drilling, ditching and dredging — no impact • Air pollution — no impact • Solid waste — no impact • • Wildlife removal — no impact • Natural vegetation removal — no impact • Radiation/radioactive material— no impact • Drinking water source — connect to public utility • Traffic impacts— minimal impact Service Provisions: • Schools — students will be in Windsor School District RE-4 with minimal impact. A bus turnaround has been provided at the subdivision entrance. The asphalt pavement radius at this turnaround is 42', with a 4' gravel shoulder. The minimum turning radius for a bus is 40', so pick-up/drop-off of students can be conducted within the subdivision. A shelter has also been provided on the north side of the entrance. • Law enforcement— minimal impact to Sheriffs Department • Fire protection —Ault Fire Protection District F-1 • Ambulance— minimal impact • Postal service— a Cluster Box Unit will be located on the north side of the entrance, adjacent to the bus shelter. • Transportation — The proposed PUD will access off of Weld County Road 15, which is designated as a local road. A traffic impact study has been waived by the Department of Public Works. • Storm drainage —A Final Drainage Report has been submitted as part of the final plat submittal package. The detention pond will release the 5-year historic flow, and store the difference between the 5-year historic and 100- year developed flow. • Utility provisions: o Potable water will be provided by North Weld County Water District. There is an existing 8" water line in County Road 15. o Power will be provided by Poudre Valley REA. There is an existing power line on the east side of the property along County Road 15. o Gas will be provided by Xcel Energy. An existing gas main is one mile south of the property. o Telephone to be provided by Qwest Communications. • Water provisions - Potable water will be supplied by North Weld County Water District. A service agreement has been previously provided and approved by the County. • Sewage disposal provisions —The sanitary sewer will be individual septic systems. • Structural Road Improvements Plan —The applicant will design adjacent roadways as required by the County Public Works Department. Landscaping elements: • There will be three landscaped areas. There will be a 2,574 square foot parcel on the northwest corner of the entrance intersection, a 2,120 square foot parcel on the southwest corner of the entrance intersection, and an 800 square foot island in the entrance drive that will contain the entrance signage. The landscaping will consist of a mix of deciduous trees and shrubs, and ornamental trees combined with evergreen trees and shrubs, ornamental grasses and perennials. • Areas from the edge of shoulder to the property lines along the interior streets will be seeded with dryland grasses. The HOA will maintain the entrance and interior drive landscaping. • A water tap will be provided for the landscaped areas at the entrance. Site Design: • This site has been used for agricultural purposes by the same family for the last 88 years. The property is rolling, and generally slopes from east to west at about 6%. The Cactus Hill Lateral runs along the northeast property line. The layout of the subdivision is designed to take advantage of the character of the land, with each lot having an excellent building site with preserved views of the Front Range. Lots range in size from 2.50 acres to 2.78 acres. • Strong covenants will be in place to assure high quality homes, but a set architectural style will not be dictated. This will give the neighborhood more character and avoid a dated appearance in the future. • This is a proposed gated community. The gates will be open from 6 am to 10 pm, and closed from 10 pm to 6 am. There have been discussions with the fire department and they are amenable. All emergency agencies will have access codes to the gate. The gate will be provided with a Knox box. • Common open space will not be incorporated into this project outside of the entrance areas and detention pond given the large lot sizes. Each owner will have plenty of room to recreate on their own property. Strict covenants will require that property owners must landscape their property within 12 months of occupying the house. • Anadarko (formerly Union Pacific Railroad) owns the oil, gas and mineral rights associated with this property. They see little potential for coal, and will vacate their rights to "hard minerals" for a small fee. Any potential oil or gas wells would not be drilled on this site, but rather to the south and/or west. • The single access to the subdivision will be off Weld County Road 15. The entrance to the site will have a monument sign and be landscaped. The sign will meet County standards. There are two existing field roads accessing this property. • The Developer will install 3-rail white vinyl fencing along all internal roads and along County Road 15 frontage. • Existing uses in the surrounding area are agricultural and rural acreage homesites. This project will have no negative impacts on these uses and should be complimentary to them. "Right To Farm" language will be on the plat and incorporated into the covenants. Horses and other farm type animals will not be permitted. June 6, 2006 Department of Planning Services 918 10th Street Greeley, CO 80631 To Whom It May Concern: We have reviewed the street names and addresses for Waterford Hill PUD as shown on the attached plan. We approve the names and addresses as shown. United States Postal Service &Yalerd 7//1/ ,r'% 2av /tea/er-%rt/ 6/7/ P/race_ Ozputic ei Bonnie Ham, Growth Coordinator 301 E. Boardwalk Fort Collins, CO 80525 Ofewl6i or bolo'll000le Mao IMPS 970-225-4130 Pert oeuue CO a»s 42260 Waterford Hill Way tor s SAN M • b t I I 42256 Waterford Hill Way UN 1 • 42257 Waterford Hill Way I I I tor s IAN he. 42254 Waterford Hill Place i 42252 Waterford Hill Way 42253 Waterford Hill Way 42249 Waterford Hill Place I I 42252 Waterford Hill Place ' I .J �A'fEPpEa NIIY PLACE '(t a: ter 3 I II 42248 Waterford Hill Place TOMS nnvonew j 3311.1103 POMO JOT A. 42248 Waterford Hill Way I I tn. DETENTION POND ; I I1 ' EMT 1 I 3.341 ho II 42245 Waterford Hill Way c t _ga °• e` I I 1 � F r / 3 ,, KETTERLING, BUTHERUS & NORTON Waterford Hill P.U.D. L' Weld County, Colorado 820 8th Street Plaza Greeley, Colorado ENGINEERS (970) 395-9880 Proposed Address Map Drowing: K:\DRAWINGS\05026\Base.dwg, Saved: Man, June 05, 2006, 1:05:25pm ^Ta®7 UNITEDSTATES / re _ 6 6 POSTAL SERVICE cv [v 4 - ' (date) 'W 7rrcy--,A-Qn x 7) R Ci Vaj� , 2P (O 6706 3 / This notice will serve as a Letter of Consent to the United States Postal Service for the placement of the Neighborhood Cluster Box Units at the following locations: Pad size: CBU type: 1. •1/4%.2V5 R° alri /Lx 2. , vu. aticx-e dG IOC, / 5 7 /3 Br_ 3. / 4. — 5. 6. 7. 8. 9. 11. 12. The concrete pads and the Cluster Box Units will be purchased by the builder or developer. The pads will be 8" thick & poured between the curb and sidewalk. e -06 laatil ^ (date) (signature) Total CBU's Type I_ Type TT_ • Type III Type IV / aM(e ercsiien Ct1lyiefr (printed name and title) WATERFORD HILL P.U.D. CONSTRUCTION FINANCING, COST & SCHEDULE Financing Statement Waterford Hill PUD will be constructed using a Development Loan from Chase Bank. Construction Costs and Schedule Estimated Estimated Completion Improvements Cost Date Site/Street Grading & Detention Pond $117,000 October 2006 Water Mains & Fire Hydrants 104,000 November 2006 Storm Sewer Facilities 9,250 November 2006 Street Base & Paving 56,000 December 2006 Street/Stop Signs 1,000 January 2006 Telephone 10,000 January 2007 Gas 62,000 January 2007 Electric 30,000 January 2007 Bus Shelter 4,000 April 2007 Landscaping/Enhancement 50,000 April 2007 Fencing 80,000 April 2007 Off-Site Water 40,000 April 2007 Engineering 50,000 Total Estimated Cost $613,250 Report Date: 05/19/2006 04:02PM WELD COUNTY TREASURER Page: 1 STATEMENT OF TAXES DUE SCHEDULE NO: R0514401 ASSESSED TO: STONESTREET SONJA 5429 EAST CO RD 58 FORT COLLINS, CO 80524 LEGAL DESCRIPTION: PT SE4 31-8-67 LOT 2 REC EXEMPT RE-2690 (2.56R) PARCEL: 055531000048 SITUS ADD: TAX YEAR CHARGE TAX AMOUNT INTEREST FEES PAID TOTAL DUE 2005 TAX 841.94 0.00 0.00 420.97 420.97 TOTAL TAXES ^ q GRAND TOTAL DUE GOOD THROUGH 05/19/2006 ( 420.97 ORIGINAL TAX BILLING FOR 2005 TAX DISTRICT 0411 - \ — Authority Mill Levy Amount Values Actual Assessed WELD COUNTY 17.900 176.13 AGRICULTUR 33,930 9,840 SCHOOL DIST RE4 48.735 479.56 NCW WATER 1.000 9.84 TOTAL 33,930 9,840 NWC WATER 0.000 0.00 AULT FIRE 8.025 78.97 AIMS JUNIOR COL 6.357 62.55 WINDSOR LIBRARY 3.546 34.89 TAXES FOR 2005 85.563 841.94 ALL TAX LIEN SALE AMOUNTS ARE SUBJECT TO CHANGE DUE TO ENDORSEMENT OF CURRENT TAXES BY THE LIENHOLDER OR TO ADVERTISING AND DISTRAINT WARRANT FEES. CHANGES MAY OCCUR AND THE TREASURER'S OFFICE WILL NEED TO BE CONTACTED PRIOR TO REMITTANCE AFTER THE FOLLOWING DATES: PERSONAL PROPERTY AND MOBILE HOMES-AUGUST 1, REAL PROPERTY-AUGUST 1. TAX LIEN SALE REDEMPTION AMOUNTS MUST BE PAID BY CASH OR CASHIERS CHECK. P.O. Box 458 "Greeley, CO 80632 (970)353-3845 ext. 3290 Weld County Treasurer -. 1 Pursuant to the Weld County Subdivision Ordinance, the attached Statement(s) of Taxes Due, issued by the Weld County Treasurer, are evidence of the status as of this date of all property taxes; special assessments and prior tax liens attached to this (these) account(s). Current year's taxes are due but not delinquent. Sign «- tS Date: Oio IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS (PRIVATE ROAD MAINTENANCE) THIS AGREEMENT, made and entered into this day of , 20_, by and between the County of Weld,State of Colorado,acting through its Board of County Commissioners,hereinafter called"County,"and White Wolf, LLC hereinafter called"Applicant." WITNESSETH: WHEREAS, Applicant is the owner of, or has a controlling interest in the following described property in the County of Weld, Colorado: WATERFORD HILL P.U.D. WHEREAS, a Final Subdivision/Planned Unit Development (PUD) plat of said property, to be known as Waterford Hill PUD has been submitted to the County for approval, and WHEREAS, relevant Sections of the Weld County Code provide that no Subdivision Final Plat, Planned Unit Development Final Plat, or Site Plan shall be approved by the County until the Applicant has submitted a Subdivision Improvement Agreement guaranteeing the construction of the public improvements shown on plans,plats and supporting documents of the Subdivision Final Plat,Planned Unit Development Final Plat,or Site Plan,which improvements,along with a time schedule for completion, are listed in Exhibits "A" and "B" of this Agreement. NOW, THEREFORE,IN CONSIDERATION OF the foregoing and of the acceptance and approval of said Final Plat, the parties hereto promise, covenant and agree as follows: 1.0 Engineering Services: Applicant shall furnish,at its own expense,all engineering services in connection with the design and construction of the Subdivision or Planned Unit Development improvements listed on Exhibit"A," which is attached hereto and incorporated herein by reference. 1.1 The required engineering services shall be performed by a Professional Engineer and Land Surveyor registered in the State of Colorado, and shall conform to the standards and criteria established by the County for public improvements. 1.2 The required engineering services shall consist of, but not be limited to, surveys, designs, plans and profiles,estimates,construction supervision,and the submission of necessary documents to the County. 1.3 Applicant shall furnish drawings and cost estimates for roads within the Subdivision or Planned Unit Development to the County for approval prior to the letting of any construction contract. Applicant shall furnish one set of reproducible"as-built"drawings and a final statement of construction cost to the County. 2.0 Rights-of-Way and Easements: Before commencing the construction of any improvements herein agreed upon, Applicant shall acquire, at its own expense, good and sufficient rights-of-way and easements on all lands and facilities traversed by the proposed improvements. 3.0 Construction: Applicant shall furnish and install, at its own expense, the Subdivision or Planned Unit Development improvements listed on Exhibit"A,"which is attached hereto and incorporated herein by reference, according to the construction schedule set out in Exhibit "B" which is also attached hereto and incorporated herein by reference. 3.1 Said construction shall be in strict conformance to the plans and drawings approved by the County and the specifications adopted by the County for such public improvements. Whenever a Subdivision or Planned Unit Development is proposed within three miles of an incorporated community located in Weld County or located in any adjacent county,the Applicant shall be required to install improvements in accordance with the requirements and standards that would exist if the plat were developed within the corporate limits of that community. If the incorporated community has not adopted such requirements and standards at the time the Subdivision or Planned Unit Development is proposed,the requirements and standards of the County shall be adhered to. If both the incorporated community and the County have requirements and standards, those requirements and standards that are more restrictive shall apply. 3.2 Applicant shall employ, at its own expense, a qualified testing company previously approved by the County to perform all testing of materials or construction that is required by the County; and shall furnish copies of test results to the County. 3.3 At all times during said construction, the County shall have the right to test and inspect,or to require testing and inspection of material and work at Applicant's expense. Any material or work not conforming to the approved plans and specifications shall be removed and replaced to the satisfaction of the County at Applicant's expense. 3.4 Applicant shall furnish proof that proper arrangements have been made for the installation of sanitary sewer or septic systems, water, gas, electric and telephone services. 3.5 Said Subdivision or Planned Unit Development improvements shall be completed, according to the terms of this Agreement, within the construction schedule appearing in Exhibit "B." The Board of County Commissioners, at its option, may grant an extension of the time of completion shown on Exhibit "B" upon application by the Applicant subject to the terms of Section 6 herein. 4.0 Release of Liability: Applicant shall indemnify and hold harmless the County from any and all liability loss and damage County may suffer as a result of all suits, actions or claims of every nature and description caused by, arising from, or on account of said design and construction of improvements, and pay any and all judgments rendered against the County on account of any such suit, action or claim,together with all reasonable expenses and attorney fees incurred by County in defending such suit,action or claim whether the liability,loss or damage is caused by,or arises out of the negligence of the County or its officers,agents,employees,or otherwise except for the liability, loss, or damage arising from the intentional torts or the gross negligence of the County or its employees while acting within the scope of their employment. All contractors and other employees engaged in construction of the improvements shall maintain adequate worker's compensation insurance and public liability insurance coverage,and shall operate in strict accordance with the laws and regulations of the State of Colorado governing occupational safety and health. (THERE IS NO SECTION 5) 2 6.0 Approval of Streets by the County: Upon compliance with the following procedures by the Applicant,streets within a Subdivision or Planned Unit Development may be approved by the County as public roads and will be maintained and repaired by a Homeowners Association or, in its absence, the owners of lots within the Subdivision or Planned Unit Development. 6.1 If desired by the County, portions of street improvements may be placed in service when completed according to the schedule shown on Exhibit "B," but such use and operation shall not constitute an approval of said portions. 6.2 County may, at its option, issue building permits for construction on lots for which street improvements detailed herein have been started but not completed as shown on Exhibit"B,"and may continue to issue building permits so long as the progress of work on the Subdivision or Planned Unit Development improvements in that phase of the development is satisfactory to the County; and all terms of this Agreement have been faithfully kept by Applicant. 6.3 Upon completion of the construction of streets within a Subdivision or Planned Unit Development and the filing of a Statement of Substantial Compliance, the applicant(s) may request in writing that the County Engineer inspect its streets and recommend that the Board of County Commissioners partially approve them. Not sooner than nine months after partial approval,the County Engineer shall,upon request by the applicant,inspect the subject streets, and notify the applicant(s)of any deficiencies. The County Engineer shall reinspect the streets after notification from the applicant(s) that any deficiencies have been corrected. If the County Engineer finds that the streets are constructed according to County standards, he or she shall recommend full approval. Upon a receipt of a positive unqualified recommendation from the County Engineer for approval of streets within the development,the Board of County Commissioners shall fully approve said streets as public but with private pay. 7.0 General Requirements for Collateral: 7.1 The value of all collateral submitted to Weld County must be equivalent to One-Hundred percent (100 ) of the value of the improvements as shown in this Agreement. Prior to Final Plat approval,the applicant shall indicate which of the five types of collateral preferred to be utilized to secure the improvements subject to final approval by the Board of County Commissioners and the execution of this Agreement. Acceptable collateral shall be submitted and the plat recorded within six(6)months of the Final Plat approval. If acceptable collateral has not been submitted within six(6) months then the Final Plat approval and all preliminary approvals shall automatically expire. Applicant may request that the County extend the Final Plat approval provided the cost estimates are updated and the development plans are revised to comply with all current County standards, policies and regulations. The improvements shall be completed within one(1) year alter the Final P/at approval(not one year aher acceptable collateral is submitted) unless the anplicant(s)requests that this Agreement be renewed at least thirty(30)days prior to its expiration and further provides that cost estimates for the remaininz improvements are updated and co/lateral is provided in the amount of One-Hundred percent(100 )of the value of the improvements remaining to be completed If improvements are not completed and the agreement not renewed within these time frames, the County, at its discretion,may make demand on all or a portion of the collateral and take steps to see that the improvements are made. 7.2 The applicant may choose to provide for a phased development by means of designating filings of a Planned Unit Development Final Plat or Subdivision Final Plat. The applicant would need only to provide collateral for the improvements in each filing as approved. The County will place restrictions on those portions of the property that are not covered by collateral which will prohibit the conveyance of the property or the issuance of building permits until collateral is provided or until improvements are 3 in place and approved pursuant to the requirements for a Request for Release of Collateral. 7.3 The applicant intends to develop in accordance with Exhibits "A" and "B." 8.0 Improvements Guarantee: The five types of collateral listed below are acceptable to Weld County subject to final approval by the Board of County Commissioners. 8.1 An irrevocable Letter of Credit from a Federal or State licensed financial institution on a form approved by Weld County. The Letter of Credit shall state at least the following: 8.1.1 The Letter of Credit shall be in an amount equivalent of One-Hundred percent(100 ) of the total value of the improvements as set forth in Section 6.0 and Exhibits "A" and "B." 8.1.2 The Letter of Credit shall provide for payment upon demand to Weld County if the developer has not performed the obligations specified in the Improvements Agreement and the issuer has been notified of such default. 8.1.3 The applicant may draw from the Letter of Credit in accordance with the provisions of this policy. 8.1.4 The issuer of the Letter of Credit shall guarantee that, at all times the unreleased portion of the Letter of Credit shall be equal to a minimum of One-Hundred percent (100 ) of the estimated costs of completing the uncompleted portions of the required improvements,based on inspections of the development by the issuer. In no case shall disbursement for a general improvement item exceed the cost estimate in the Improvements Agreement (i.e., streets, sewers, water mains and landscaping, etc.). The issuer of the Letter of Credit will sign the Improvements Agreement acknowledging the agreement and its cost estimates. 8.1.5 The Letter of Credit shall specify that fifteen percent(15 )of the total Letter of Credit amount cannot be drawn upon and will remain available to Weld County until released by Weld County. 8.1.6 The Letter of Credit shall specify that the date of proposed expiration of the Letter of Credit shall be either the date of release by Weld County of the final fifteen percent (15 ), or one year from the date of Final Plat approval, whichever occurs first. Said letter shall stipulate that,in any event,the Letter of Credit shall remain in full force and effect until after the Board has received sixty (60) days written notice from the issuer of the Letter of Credit of the pending expiration. Said notice shall be sent by certified mail to the Clerk to the Board of County Commissioners. 8.2 Trust Deed upon all or some of the proposed development or other property acceptable to the Board of County Commissioners provided that the following are submitted: 8.2.1 In the event property within the proposed development is used as collateral, an appraisal is required of the property in the proposed development by a disinterested Member of the American Institute of Real Estate Appraisers(M.A.I.) indicating that the value of the property encumbered in its current degree of development is sufficient to cover One-Hundred percent (100 ) of the cost of the improvements as set forth in the Improvements Agreement plus all costs of sale of the property. 8.2.2 In the event property other than the property to be developed has been accepted as collateral by Weld County,then an appraisal is required of the property by a Member of the Institute of Real Estate Appraisers(M.A.I.) indicating that the value of the property encumbered in its 4 current state of development is sufficient to cover One-Hundred percent(100 ) of the cost of the improvements as set forth in the Improvements Agreement plus all costs of sale of the property. 8.2.3 A title insurance policy insuring that the Trust Deed creates a valid encumbrance which is senior to all other liens and encumbrances. 8.2.4 A building permit hold shall be placed on the encumbered property. 8.3 Escrow Agreement that provides at least the following: 8.3.1 The cash in escrow is at least equal to One-Hundred percent (100 ) of the amount specified in the Improvements Agreement. 8.3.2 The escrow agent guarantees that the escrowed funds will be used for improvements as specified in the agreement and for no other purpose and will not release any portion of such funds without prior approval of the Weld County Board of Commissioners. 8.3.3 The escrow agent will be a Federal or state-licensed bank or financial institution. 8.3.4 If Weld County determines there is a default of the Improvements Agreement, the escrow agent, upon request by the County, shall release any remaining escrowed funds to the County. 8.4 A surety bond given by a corporate surety authorized to do business in the State of Colorado in an amount equivalent to One-Hundred percent(1Q0 ) of the value of the improvements as specified in the Improvements Agreement. 8.5 A cash deposit made with the County equivalent to One-Hundred percent (100 ) of the value of the improvements. 9.0 Request for Release of Collateral: Prior to release of collateral for the entire project or for a portion of the project by Weld County,the Applicant must present a Statement of Substantial Compliance from an Engineer registered in Colorado that the project or a portion of the project has been completed in substantial compliance with approved plans and specifications documenting the following: 9.1 The Engineer or his representative has made regular on-site inspections during the course of construction and the construction plans utilized are the same as those approved by Weld County. 9.2 Test results must be submitted for all phases of this project as per Colorado Department of Transportation Schedule for minimum materials sampling, testing and inspections found in the Colorado Department of Transportation (CDOT) Materials Manual. 9.3 "As built" plans shall be submitted at the time the letter requesting release of collateral is submitted. The Engineer shall certify that the project "as-built" is in substantial compliance with the plans and specifications as approved, or that any material deviations have received prior approval from the County Engineer. 9.4 The Statements of Substantial Compliance must be accompanied, if appropriate, by a letter of acceptance of maintenance and responsibility by the appropriate utility company,special district or town for any utilities. 5 9.5 A letter must be submitted from the appropriate Fire Authority indicating the fire hydrants are in place in accordance with the approved plans. The letter shall indicate if the fire hydrants are operational and state the results of fire flow tests. 9.6 The requirements in paragraphs 9.0 thru 9.5 shall be noted on the final construction plans. 9.7 Following the submittal of the Statement of Substantial Compliance and recommendation of approval of the streets by the County, the applicant(s) may request release of the collateral for the project or portion of the project by the Board. This action will be taken at a regularly scheduled public meeting of the Board. 9.8 The request for release of collateral shall be accompanied by "Warranty Collateral" in the amount of fifteen percent (15 ) of the value of the improvements as shown in this Agreement excluding improvements fully accepted for maintenance by the responsible governmental entity,special district or utility company. 9.9 The warranty collateral shall be released to the applicant upon final approval by the Board of County Commissioners. 10.0 Public Sites and Open Spaces: When the Board of County Commissioners,pursuant to a rezoning,Subdivision or Planned Unit Development, requires the dedication, development and/or reservation of areas or sites other than Subdivision or Planned Unit Development streets and utility easements of a character,extent and location suitable for public use for parks, greenbelts or schools,said actions shall be secured in accordance with one of the following alternatives, or as specified in the Planned Unit Development (PUD) Plan, if any: 10.1 The required acreage as may be determined according to the Weld County Subdivision Regulations shall be dedicated to the County or the appropriate school district,for one of the above purposes. Any area so dedicated shall be maintained by the County or school district. 10.2 The required acreage as determined according to Chapter 24 of the Weld County Code, may be reserved through deed restrictions as open area,the maintenance of which shall be a specific obligation in the deed of each lot within the Subdivision or Planned Unit Development. 10.3 In lieu of land, the County may require a payment to the County in an amount equal to the market value at the time of Final Plat submission of the required acreage as determined according to Chapter 24 of the Weld County Code. Such value shall be determined by a competent land appraiser chosen jointly by the Board and the Applicant. The cash collected shall be deposited in an escrow account to be expended for parks at a later date. 11.0 Successors and Assigns: This Agreement shall be binding upon the heirs, executors, personal representatives, successors and assigns of the Applicant,and upon recording by the County,shall be deemed a covenant running with the land herein described, and shall be binding upon the successors in ownership of said land. 6 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first above written. l APPLICANT: WAi7 P jJc/ILL C APPLICAN7Y<2ig“ 5i'V TITLE: ,/1I&&//l/A 8260c pit/ Ai/att& Subscribed and sworn to before me this 9 day o`/ imi , 2011° My Commission expires: ary Public ia-Ob-OW ATTEST: BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO Weld County Clerk to the Board , Chair BY: Deputy Clerk to the Board APPROVED AS TO FORM: County Attorney 7 EXHIBIT"A" Name of Subdivision or Planned Unit Development:_Waterford Hill PUD Filing: Location: a part of the SE1A Section 31,Township 8 North, Range 67 West Intending to be legally bound, the undersigned Applicant hereby agrees to provide throughout this Subdivision or Planned Unit Development the following improvements. (Leave spaces blank where they do not apply) Improvements Ouantity Units Unit Estimated Construction Costs Cost Site grading 1 LS $117,000 Street grading Detention pond Street base 3 1 LS 56,000 Street paving Storm sewer facilities I LS 9,250 Water Mains -3 1 LS 104,000 Fire hydrants Street Signs 1 LS 1,000 Fencing requirements 1 LS 80,000 Landscaping/Enhance 1 LS 50,000 Telephone 1 LS 10,000 Gas 1 LS 62,000 Electric 1 LS 30,000 Bus Shelter 1 LS 4,000 Off-Site Water 1 LS 40,000 SUB-TOTAL: $563,250 Engineering and Supervision Costs $ 50 000 8 (Testing,inspection,as-built plans and work in addition to preliminary and final plat;supervision of actual construction by contractors) TOTAL ESTIMATED COST OF IMPROVEMENTS AND SUPERVISION $ 613,250 The above improvements shall be constructed in accordance with all County requirements and specifications, and conformance with this provision shall be determined solely by Weld County, or its duly authorized agent. Said improvements shall be completed according to the construction schedule set out in Exhibit "B." By: /it7 H /jT t,JGLP "C C Applicant ica I/ 4MMl A// SsTG u/ Date: y7Vn , 20 . Tide /✓YI/W�GCL,e (If corporation, to be signed by President and attested to by Secretary, together with corporate seal.) 9 EXHIBIT"B" Name of Subdivision or Planned Unit Development:_Waterford Hill PUD Filing: Location: a part of the SE'/< Section 31,Township 8 North. Range 67 West Intending to be legally bound, the undersigned Applicant hereby agrees to provide throughout this Subdivision or Planned Unit Development the following improvements. All improvements shall be completed within_one(1) year from the date of approval of the final plat.Construction of the improvements listed in Exhibit"A" shall be completed as follows: (Leave spaces blank where they do not apply.) Improvements Time for Completion Site grading October 2006 Detention pond October 2006 Water mains November 2006 Fire hydrants November 2006 Storm sewer facilities November 2006 Street base November 2006 Street paving December 2006 Street name/Stop signs January 2007 Telephone January 2007 Gas January 2007 Electric January 2007 Fencing requirements April 2007 Landscaping April 2007 SUB-TOTAL: 10 The County,at its option, and upon the request of the Applicant,may grant an extension of time for completion for any particular improvements shown above, upon a showing by the Applicant that the above schedule cannot be met. By: 4/p// Cc 'JGLF /,L c Applicant Applicant7 Mel/✓4 /%OR" M/1/11/QF64 Date:,T4)6 T , 20 Title (If corporation, to be signed by President and attested to by Secretary, together with corporate seal.) 11 NOTICE. TO CLOSING AGENTS: THIS IS A FEE-ASSESSED SUBDIVISION. CHECK WITH THE HOMEOWNERS ASSOCIATION FOR FEE SCHEDULE. DECLARATION OF COVENANTS, CONDITIONS,AND RESTRICTIONS FOR WATERFORD HILL (a Common Interest Community) THIS DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR WATERFORD HILL is made and entered into this day of , 2006, by WHITE WOLF, LLC,a Colorado limited liability company("the Owner"). RECITALS A. The Owner is the owner of that certain real property located in the County of Weld, State of Colorado legally described on Exhibit "A" attached hereto and incorporated herein by reference("the Real Estate"). B. The Owner desires to create a Common Interest Community on the Real Estate, pursuant to the Colorado Common Ownership Act, Section 38-33.3-101, et seq., Colorado Revised Statutes, as it may be amended from time to time ("the Act"), in which portions of the Real Estate will be designated for separate ownership and the remainder of which will be owned by an Associa- tion of Lot Owners. C. WATERFORD HILL HOMEOWNERS ASSOCIATION (a Colorado nonprofit corporation) has been incorporated under the laws of the State of Colorado for the purpose of exercising the functions herein set forth. ARTICLE I. $IIBMISSION OF REAL,ESTATF, The Owner hereby publishes and declares that the Real Estate shall be held, sold, conveyed, transferred, leased, subleased, and occupied subject to the following easements, covenants, conditions, and restrictions which shall run with the Real Estate and shall be binding upon and inure to the benefit of all parties having any right, title, or interest in the Real Estate or any portion thereof, their heirs, personal representatives, successors, and assigns. Additionally, the Owner hereby submits the Real Estate to the provisions of the Act. In the event the Act is repealed,the Act on the date this Declaration is recorded in the office of the Clerk and Recorder of Weld County, Colorado, shall remain applicable. ARTICLE II. DEFINITIONS Section 1: "Allocated Interests" shall mean and refer to the Common Expense Liability and votes in the Association. Section 2: "Approval" or "Consent" shall mean securing the prior written approval or consent as required herein before doing, making, or suffering that for which such approval or consent is required. Section 3: "Architectural Control Committee" shall mean and refer to the committee established to review and approve plans for the construction of improvements on Lots as set forth in Article X of this Declaration. Section 4: "Association" or "Lot Owners' Association" shall mean and refer to Waterford Hill Homeowners Association (a Colorado nonprofit corporation), its successors and assigns, organized and existing under the laws of the State of Colorado and specifically Section 38-33.3-301 of the Act. Section 5: "Bylaws" shall mean and refer to any instruments, however denominated, which are adopted by the Association for the regulation and management of the Association, including amendments to those instruments. Section 6: "Common Elements" shall mean and refer to any real estate or real property interests within the Common Interest Community owned by the Association, other than a Lot, the Streets, Fences, and all other assets of the Association. Section 7: "Common Expense Liability" shall mean and refer to the liability for Common Expenses allocated to each Lot pursuant to this Declaration. Section 8: "Common Expenses" shall mean and refer to expenditures made or liabilities incurred by or on behalf of the Association, together with any allocations to reserves. These expenses for the operation of the Common Interest Community include, but are not limited to: (a) Expenses of administering, maintaining, insuring, or replacing the Common Elements. (b) Expenses of maintaining, repairing, improving and replacing the Streets within the Common Interest Community. (c) Expenses of maintaining, repairing, improving, and replacing the Fence along the entire perimeter boundary of the Common Interest Community and along each side of all roads and streets within the Common Interest Community. (d) Expenses declared to be Common Expenses by the Declaration. (e) Expenses agreed upon as Common Expenses by the Association. (f) Such reasonable reserves as may be established by the Association, whether held in trust or by the Association, for repair, replacement, or addition to the Common Elements, Streets and Fences, or any other real or personal property acquired or held by the Association. 2 (g) Reimbursement of the cost of maintaining, repairing, improving and replacing the Fire Facilities, as provided in Article XIV hereinafter. Section 9: "Common Interest Community" shall mean and refer to the Real Estate described on Exhibit A attached hereto and incorporated herein by reference, together with any and all Real Estate added to the Common Interest Community pursuant to Article V hereinafter. Section 10: "Declarant" shall mean and refer to WHITE WOLF, LLC, a Colorado limited liability company, or any other Person or group of Persons acting in concert who: (a) As a part of a common promotional plan, offer to dispose of to a Purchaser such Declarant's interest in a Lot not previously disposed of to a Purchaser; or (b) Reserve or succeed to any Special Declarant Right. Section 11: "Declaration" shall mean and refer to this Declaration, including any amendments hereto and also including, but not limited to, plats of the Real Estate recorded in the Clerk and Recorder's office of Weld County, Colorado. Section 12: "Dispose" or "Disposition" shall mean and refer to a voluntary transfer of any legal or equitable interest in a Lot, but the term does not include the transfer or release of a security interest. Section 13: "Documents" shall mean and refer to this Declaration, the Plat, and the Articles of Incorporation, Bylaws, and Rules and Regulations of the Association, as supplemented or amended from time to time. Section 14: "Dwelling" shall mean and refer to a permanent building constructed on a Lot to be occupied by a Single Family for Residential Use and such other purposes as may be permitted pursuant to this Declaration and the Rules and Regulations adopted by the Association. Section 15: "Executive Board" shall mean and refer to the Executive Board of the Association. Section 16: "Fence" shall mean and refer to: (a) a three rail white vinyl fence along both sides of all Streets within the Common Interest Community; and (b) a three rail white vinyl fence with electric wire along the top rail as necessary along the perimeter boundary of the Common Interest Community, except: (i)the north boundary of the Common Interest Community where the perimeter Fence shall be constructed along the south boundary of Outlot B; and (ii)the south and west boundary of the Common Interest Community where the perimeter Fence shall be constructed along the north boundary of Outlot A. There shall be no perimeter Fence along the south or west side of Outlot A. The Fence along the south side of the Street which adjoins Outlot A shall constitute the perimeter Fence. Section 17: "Governmental Authority" shall mean and refer to the County; and any governmental entity, agency, authority, or district having jurisdiction over the Common Interest 3 Community; any metropolitan district, special district, or special improvement district within which the Common Interest Community is located; any cooperative or governmentally regulated, supervised or licensed public or private entity that provides utility or quasi-utility services to the Common Interest Community. Section 18: "Identifying Number" shall mean and refer to a symbol or address that identifies only one(1)Lot in the Common Interest Community. Section 19: "Improvements" shall mean and refer to all structures and any appurtenances thereto of every type or kind, including, but not limited to, buildings, outbuildings, swimming pools, patio covers, awnings; painting of any exterior surfaces of any structure, relocation or installation of windows, additions, walkways, garages, carports, roads, driveways, parking areas, fences, screening walls, retaining walls, stairs, antennas, decks, roofs, fixtures, signs, exterior tanks, solar equipment, exterior air conditioning and water softener fixtures. Section 20: "Insurer" shall mean and refer to any governmental agency or authority that insures or guarantees a Mortgage and that has provided written notice of such interest to the Association. Section 21: "Lot" shall mean and refer to a physical portion of the Common Interest Community which is designated for separate ownership or occupancy and the boundaries of which are described in or determined from the Plat. The term "Lot" as used in this Declaration shall have the same meaning as the term"Unit"as used in the Act. Section 22: "Mortgagee" shall mean and refer to any Person who has a security interest in a Lot and who has provided written notice of such interest to the Association. Section 23: "Open Spaces" shall mean and refer to Tracts A, B, C, D and E as designated on the Plat. Section 24: "Owner" shall mean and refer to any Person who owns a Lot but does not include a Person having an interest in a Lot solely as security for an obligation. The Declarant is the Owner of any Lot created in the Declaration until that Lot is conveyed to another Person. The term "Owner"as used in this Declaration shall have the same meaning as the term "Unit Owner"as used in the Act. Section 25: "Person" shall mean and refer to a natural person, a corporation, a limited liability company,a partnership, an association, a trust,or any other entity or combination thereof. Section 26: "Plat" shall mean and refer to the Subdivision Plat of the Real Estate, designated as Waterford Hill, recorded in the office of the Clerk and Recorder of Weld County, Colorado, and all recorded supplements and amendments thereto. "Plat" shall include the Plats of any additional Real Estate added to the Common Interest Community pursuant to Article V hereinafter 4 Section 27: "Purchaser" shall mean and refer to a Person, other than the Declarant, who,by means of a transfer, acquires a legal or equitable interest in a Lot, other than: (a) A leasehold interest in a Lot of less than forty (40) years, including renewal options, with the period of the leasehold interest, including renewal options, being measured from the date the initial term commences; or (b) A Security Interest. Section 28: "Real Estate" shall mean and refer to the Real Estate described on Fxhihit A attached hereto and incorporated herein by reference, together with any Real Estate added to the Common Interest Community pursuant to Article V hereinafter. Section 29: "Residential Use" shall mean and refer to use of a Dwelling by a Single Family for cooking, eating, sleeping and other usual and customary personal, private, family, domestic household and housekeeping purposes. Section 30: "Rules and Regulations" shall mean and refer to any instruments, however denominated, which are adopted by the Association for the regulation and management of the Common Interest Community, including any amendment to those instruments. Section 31: "Security Interest" shall mean and refer to an interest in real property created by contract or conveyance which secures payment or performance of an obligation. The term includes a lien created by a mortgage, deed of trust, trust deed, security deed, contract for deed, land sales contract, lease intended as security, assignment of lease or rents intended as security, pledge of an ownership interest in an association, and any other consensual lien or title retention contract intended as security for an obligation. "First Security Interest" shall mean and refer to a Security Interest in a Lot prior to all other Security Interests except the Security Interest for real property taxes and assessments made by Weld County, Colorado, or other governmental authority having jurisdiction over the Common Interest Community. Section 32: "Single Family" shall mean and refer to not more than two unrelated persons who for purposes of this definition shall be referred to as the "Primary Occupants"; the issue by blood or adoption of each of the Primary Occupants and their spouses or committed life partners; the parents of each of the Primary Occupants and their spouses or committed life partners; such additional persons who are related to one of the Primary Occupants and who can be reasonably accommodated in the Dwelling occupied by the Primary Occupants. Section 33: "Street" shall mean and refer to all roads and streets within the Common Interest Community described and designated as Tract A on the Plat, which shall be owned and maintained by the Association. Section 34: Unless the context clearly indicates otherwise, other terms defined in the Act shall have the meanings attributable to such terms in the Act. 5 Section 35: Other terms in this Declaration may be defined in specified provisions contained herein and shall have the meaning assigned by such definition. ARTICLE III. COMMON INTEREST COMMIJNITY Section 1: Name. The name of the Common Interest Community is WATERFORD HILL. Section 2: Association. The name of the Association is WATERFORD HILL HOMEOWNERS ASSOCIATION. Section 3: Planned Community. The Common Interest Community is a planned community. Section 4: County. The name of every county in which any part of the Common Interest Community is situated is Weld County, Colorado. Section 5: Legal Description. A legal description of the Real Estate included in the Common Interest Community is set forth on Fxhihit A attached hereto and incorporated herein by reference. Additional Real Estate may be added to the Common Interest Community pursuant to Article V hereinafter. Section 6: Maximum Number of Lots. The maximum number of Lots that the Declarant reserves the right to create within the Common Interest Community is thirty-five (35). Section 7: Boundaries of Lots. The boundaries of each Lot are set forth on the Plat of the Real Estate. The Plat sets forth the Lot's Identifying Number. Section 8: Allocated Interests. The Common Expense Liability and votes in the Association shall be allocated among the Owner as follows: (a) Each Owner's share of the Common Expenses shall be a fraction, the numerator of which shall be one (1) and the denominator of which shall be the total number of Lots within the Common Interest Community. (b) Each Owner shall be entitled to one(1)vote for each Lot owned. Section 9: Recording Data. All easements and licenses to which the Common Interest Community is presently subject are shown on the Plat and on Exhibit R attached hereto. In addition, the Common Interest Community may be subject to other easements or licenses granted by the Declarant pursuant to the terms of this Declaration. Section 10: Notice. Notice of matters affecting the Common Interest Community may be given to Lot Owners by the Association or by other Lot Owners in the following manner: notice shall be hand delivered, sent prepaid by United States mail to the mailing address of each Lot or to any other mailing address designated in writing by the Lot Owner to the Association, or sent by 6 electronic mail. Such notice shall be deemed given when hand delivered, when deposited in the United States mail or when sent by electronic mail. ARTICLE IV. ASSOCIATION Section 1: Membership. Every Owner of a Lot which is subject to assessment shall be a Member of the Association. The foregoing is not intended to include Persons who hold an interest merely as security for the performance of an obligation. Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Association. Ownership of such Lot shall be the sole qualification for membership. The Association does not contemplate pecuniary gain or profit to the Members thereof, and the specific purposes for which it is formed are as follows: (a) to operate the Common Interest Community known as WATERFORD HILL located in Weld County, Colorado, in accordance with the Act, as amended,and the Colorado Nonprofit Corporation Act, as amended; (b) to promote the health, safety, welfare, and common benefit of the residents of the Common Interest Community; and (c) to do any and all permitted acts, and to have and exercise any and all powers, rights, and privileges which are granted to a common interest community association under the laws of the State of Colorado, this Declaration, and the Bylaws, Rules and Regulations, and other governing documents of the Association. Section 2: Voting Rights and Assignment of Votes. The effective date for assigning votes to Lots created pursuant to this Declaration shall be the date on which this Declaration is recorded in the records of the Clerk and Recorder of Weld County, Colorado. Section 3: Allocated interests. The Common Expense Liability and votes in the Association allocated to each Lot are set forth as follows: (a) The percentage of liability for Common Expenses shall be allocated on the basis of equal liability for each Lot; and (b) The number of votes in the Association shall be allocated on the basis of one (1)vote for each Lot. Section 4: Authority. The business and affairs of the Common Interest Community shall be managed by the Association. The Association shall be governed by this Declaration and the Articles of Incorporation, Bylaws, and Rules and Regulations of the Association, as amended from time to time. Section 5: Powers. The Association shall have all of the powers, authority, and duties permitted pursuant to the Act necessary and proper to manage the business and affairs of the Common Interest Community. Section 6: Declarant Control. The Declarant, or persons designated by the Declarant, may appoint and remove the officers and members of the Executive Board of the Association for a period of twenty (20) years after this Declaration is recorded in the office of the Clerk and Recorder of Weld County, Colorado. The period of Declarant control as herein set forth is subject to the 7 limitations of Section 38-33.3-303(5) of the Act. Within ninety (90) days after assuming control from the Declarant pursuant to Section 38-33.3-303(5) of the Act, and within ninety (90) days after the end of each fiscal year thereafter, the Association shall make the following information available to Owners upon reasonable notice: (a) The date on which the Association's fiscal year commences; (b) The Association's operating budget for the current fiscal year; (c) A list of the Association's current assessments, including both regular and special assessments; (d) The Association's annual financial statements, including any amounts held in reserve for the fiscal year immediately preceding the current annual disclosure; (e) The results of any financial audit or review for the fiscal year immediately preceding the current annual disclosure; (f) A list of all Association insurance policies including, but not limited to, property, general liability, Association director and officer professional liability, and fidelity policies. Such list shall include the company names, policy limits, policy deductibles, additional named insureds, and expiration dates of the policies listed; (g) All of the Association's Bylaws, Articles of Incorporation, and Rules and Regulations; (h) The minutes of the Executive Board and Member meetings for the fiscal year immediately preceding the current annual disclosure; and (i) The Association's responsible governance policies. The foregoing disclosures shall be accomplished by any one of the following means: posting on an internet web page with accompanying notice of the web address via first class mail or e-mail; the maintenance of a literature table or binder at the Association's principal place of business; mail; or personal delivery. The cost of such distribution shall be accounted for as a Common Expense. Section 7: Executive Board Powers. The Executive Board may act in all instances on behalf of the Association. The Executive Board shall have, subject to the limitations contained in this Declaration and the Act, the powers necessary for the administration of the affairs of the Association and of the Common Interest Community, which shall include, but not be limited to, the following: (a) Adopt and amend Bylaws. (b) Adopt and amend Rules and Regulations. 8 (c) Adopt and amend budgets for revenues,expenditures,and reserves. (d) Collect Common Expense assessments from Lot Owners. (e) Hire and discharge Managers. (f) Hire and discharge independent contractors, employees, and agents, other than Managers. (g) Institute, defend, or intervene in litigation or administrative proceedings or seek injunctive relief for violation of the Documents in the Association's name, on behalf of the Association, or two (2) or more Lot Owners on any matters affecting the Common Interest Community. (h) Make contracts and incur liabilities. (i) Maintain, repair, replace, and improve the Common Elements including, but not limited to,the Streets and Fences. ) Cause additional improvements to be made as a part of the Common Elements. (k) Acquire, hold, encumber and convey in the Association's name, any right, title, or interest to real estate or personal property, but the Common Elements may be conveyed or subjected to a Security Interest only pursuant to this Declaration and the Act. (I) Grant easements for any period of time, including permanent easements, leases, licenses, and concessions through or over the Common Elements, subject to the restrictions and limitations of this Declaration and the Act. (m) Impose and receive a fee or charge for the use, rental, or operation of the Common Elements and for services provided to Lot Owners. (n) Impose a reasonable charge for late payment of assessments and levy a reasonable fine for violation of the Documents. (o) Impose a reasonable charge for the preparation and recordation of supplements or amendments to this Declaration and for statements of unpaid assessments. (p) Provide for the indemnification of the Association's officers and the Executive Board and maintain directors' and officers' liability insurance. (q) Assign the Association's right to future income, including the right to receive Common Expense assessments, but only upon the affirmative vote of the Owners of Lots to 9 which at least fifty-one percent (51%) of the votes in the Association are allocated, at a meeting called for that purpose. (r) Regulate the use of the Common Elements, including the Streets. (s) Exercise any other powers conferred by the Documents. (t) Exercise any other power that may be exercised in the State of Colorado by a legal entity of the same type as the Association. (u) Exercise any other power necessary and proper for the governance and operation of the Association. (v) By resolution, establish permanent and standing committees of Executive Board members to perform any of the above functions under specifically delegated administrative standards as designated in the resolution establishing the committee. All committees must maintain and publish notice of their actions to Lot Owners and the Executive Board. However, actions taken by a committee may be appealed to the Executive Board by any Lot Owner within forty-five (45) days of publication of a notice. If an appeal is made, the committee's action must be ratified, modified, or rejected by the Executive Board at its next regular meeting. Section 8: Executive Board Duties: The Executive Board shall: (a) Maintain accounting records using generally accepted accounting principles; and (b) Adopt policies,procedures and rules and regulations concerning: (i) Collection of unpaid assessments; (ii) Handling of conflicts of interest involving Board members; (iii) Conduct of meetings, which may refer to applicable provisions of the Nonprofit Corporation Code or other recognized rules and principles; (iv) Enforcement of covenants and rules, including notice and hearing procedures and the schedule of fines; (v) Inspection and copying of Association records by Owners; (vi) Investment of reserve funds; and (vii) Procedures for the adoption and amendment of policies, procedures and rules and regulations. 10 Section 9: Professional Management and Contract Termination Provisions. The Association may utilize professional management in performing its duties hereunder. Any agreement for professional management of the Association's business shall have a maximum term of three (3) years and shall provide for termination by either party thereto, without cause and without payment of a termination fee, upon sixty (60) days' prior written notice. Any contracts, licenses, or leases entered into by the Association while there is Declarant control of the Association shall provide for termination by either party thereto, without cause and without payment of a termination fee, at any time after termination of Declarant control of the Association, upon sixty (60) days' prior written notice; provided, however, that any contract entered into at any time by the Association providing for services of the Declarant shall provide for termination at any time by either party thereto, without cause and without payment of a termination fee, upon sixty (60) day's prior written notice. Any contract for management services shall provide for immediate termination by the Association without penalty for cause. The Association shall provide to all Owners at least once per year a written notice stating the name of the Association; the name of the Association's designated agent or management company, if any; and a valid physical address and telephone number for both the Association and the designated agent or management company, if any. The notice shall also include the name of the Common Interest Community, the initial date of recording and reception number at which this Declaration is recorded in the office of the Clerk and Recorder of Weld County, Colorado. If the Association's address,designated agent or management or company changes, the Association shall provide all Owners with an amended notice within ninety(90)days after the change. Section 10: Fxecutive Board Limitations. The Executive Board may not act on behalf of the Association to amend this Declaration, to terminate the Common Interest Community, or to elect members of the Executive Board or determine their qualifications, powers, and duties or terms of office of Executive Board members, but the Executive Board may fill vacancies in its membership for the unexpired portion of any term. Section 11: Indemnification. To the full extent permitted by law, each officer and member of the Executive Board of the Association and each member of the Architectural Control Committee shall be and are hereby indemnified by the Lot Owners and the Association against all expenses and liabilities, including attorney's fees, reasonably incurred by or imposed upon them in any proceeding to which they may be a party or in which they may become involved by reason of their being or having been an officer or member of the Executive Board or Architectural Control Committee of the Association, or any settlement thereof, whether or not they are an officer or a member of the Executive Board or Architectural Control Committee of the Association at the time such expenses are incurred, except in such cases where such officer or member of the Executive Board or Architectural Control Committee is adjudged guilty of willful misfeasance or malfeasance in the performance of his or her duties; provided that in the event of a settlement, the indemnification shall apply only when the Executive Board approves such settlement and reimbursement as being in the best interests of the Association. Section 12: Fxecutive Board Member Education: The Executive Board may authorize, and account for as a Common Expense, reimbursement of Executive Board members for their actual and necessary expenses incurred in attending educational meetings and seminars on responsible 11 governance of associations. The course content of such educational meetings and seminars shall be specific to Colorado and shall make reference to applicable sections of the Act. Section 13: Owner Education. The Association shall provide or cause to be provided education to Owners at no cost on at least an annual basis as to the general operations of the Association and the rights and responsibilities of Owners,the Association, and the Executive Board under Colorado law. The criteria for compliance with this Section shall be determined by the Executive Board. ARTICLE V. SPECIAL DECLARANT RIGHTS AND ADDITIONAL RESERVED RIGHTS Section I: Special Declarant Rights. Declarant hereby reserves the right for a period of twenty (20) years after this Declaration is recorded in the office of the Clerk and Recorder of Weld County, Colorado, to perform the acts and exercise the rights hereinafter specified ("the Special Declarant Rights"). Declarant's Special Declarant Rights include the following: (a) Completion of Improvements. The right to complete improvements indicated on the Plat. (b) Exercise of Developmental Rights. The right to exercise any Development Right reserved in Article VI of this Declaration. (c) Sales and Marketing. The right to maintain signs within the Common Interest Community advertising Lots within the Common Interest Community for sale. (d) Constniction Easements. The right to use easements within the Common Interest Community for the purpose of making improvements within the Common Interest Community or within Real Estate which may be added to the Common Interest Community. (e) Master Association. The right to make the Common Interest Community subject to a master association. (f) Merger. The right to merge or consolidate the Common Interest Community with another Common Interest Community of the same form of ownership. If the Common Interest Community is merged or consolidated with another common interest community, the Common Interest Community may withdraw from the merged or consolidated common interest community without the consent of the other common interest community if the Common Interest Community meets all of the following criteria: (i) The Common Interest Community is a separate platted subdivision; (ii) The Owners are required to pay into two common interest communities or separate owners associations; 12 (iii) The Common Interest Community is or has been a self-operating common interest community or association continuously for at least twenty-five(25)years; (iv) The total number of Owners within the Common Interest Community is fifteen percent (15%) or less of the total number of owners in the merged or consolidated common interest community; (v) Owners approve the withdrawal by a majority vote and at least seventy-five percent(75%)of the Owners participate in the vote; (vi) Withdrawal of the Common Interest Community would not substantially impair the ability of the remainder of the merged common interest community to enforce existing covenants,maintain existing facilities, or continue to exist. (g) Control of Association and Executive Board. The right to appoint or remove any officer of the Association or any Executive Board member. (h) . Amendment of Declaration. The right to amend the Declaration in connection with the exercise of any Development Rights. (i) Amendment of Plat. The right to amend and supplement the Plat in connection with the exercise of any Development Rights. Section 2: Additional Reserved Rights. In addition to the Special Declarant Rights set forth in Section 1 above, Declarant also reserves the following additional rights ("the Additional Reserved Rights"): (a) Dedications. The right to establish, from time to time, by dedication or otherwise, access, utility, irrigation, and other easements over, across, and upon the Common Elements for purposes including, but not limited to, streets, paths, walkways, drainage, recreation areas, and open spaces, and irrigation of open spaces, and to create other reservations, exceptions, and exclusions over, across, and upon the Common Elements for the benefit of and to serve the Lot Owners and the Association. (b) Ilse Agreements. The right to enter into, establish, execute, amend, and otherwise deal with contracts and agreements for the use, lease, maintenance, improvement, or regulation of Common Elements. (c) Other Rights. The right to exercise any Additional Reserved Right created by any other provision of this Declaration. Section 3: Rights Transferable. Any Special Declarant Right or Additional Reserved Right created or reserved under this Article for the benefit of the Declarant may be transferred to any Person by an instrument describing the rights transferred and recorded in Weld County, Colorado. Such instrument shall be executed by the transferor Declarant and the transferee. 13 ARTICLE VI. RESERVATION OF EXPANSION AND DEVELOPMENT RIGHTS Section 1: Expansion Rights.. Declarant expressly reserves the right to subject all or any part of the property described in F.xhihit C attached hereto and hereby incorporated herein by reference ("the Development Property") to the provisions of this Declaration. The consent of the existing Lot Owners or Mortgagees shall not be required for any such expansion, and Declarant may proceed with such expansion without limitation, at its sole option. Section 2: Withdrawal Rights. If all or any part of the Development Property is submitted to this Declaration, Declarant expressly reserves the right to withdraw all or any portion of the Development Property from the Common Interest Community by recording a document evidencing such withdrawal in the office of the Clerk and Recorder of Weld County, Colorado. The Real Estate withdrawn from the Common Interest Community shall be subject to whatever easements, if any, are reasonably necessary for access to or operation of the Common Interest Community. Declarant shall prepare and record in the office of the Clerk and Recorder of Weld County, Colorado,whatever documents are necessary to evidence such easements. Section 3: Amendment of the Declaration. If Declarant elects to submit the Development Property, or any part thereof, to this Declaration, Declarant shall record an Amendment to the Declaration containing a legal description of the Development Property, or portion thereof to be submitted to this Declaration, and reallocating the Allocated Interests so that the Allocated Interests appurtenant to each Lot will be apportioned according to the total number of Lots submitted to the Declaration. The Allocated Interests appurtenant to each Lot in the Common Interest Community, as expanded, shall be a fraction, the numerator of which shall be one (1) and the denominator of which shall be the total number of Lots within the Common Interest Community, as expanded. The Amendment may contain additional covenants, conditions, and restrictions applicable only to the Lots and/or Common Elements contained within the Development Property added to the Real Estate by such Amendment. Section 4: Plat. Declarant shall, contemporaneously with the amendment of this Declaration, file a Plat showing the Development Property or portion thereof to be submitted to this Declaration and the Lots and Common Elements created within the Development Property or portion thereof to be submitted to this Declaration. Section 5: Interpretation. Recording of amendments to this Declaration in the office of the Clerk and Recorder of Weld County, Colorado, shall automatically (a) vest in each existing Lot Owner the reallocated Allocated Interests appurtenant to each Owner's Lot; and (b) vest in each existing Mortgagee a perfected Security Interest in the reallocated Allocated Interests appurtenant to the encumbered Lot. Upon the recording of an amendment to this Declaration, the definitions in this Declaration shall automatically be extended to encompass and to refer to the Real Estate, as expanded. The Development Property, or any part thereof, shall be added to and become a part of the Real Estate for all purposes. All conveyances of Lots after such expansion shall be effective to transfer rights in all Common Elements as expanded, whether or not reference is made to any amendment to this Declaration, subject to any restrictions on the use of the Common Elements as set forth in the Amendment to this Declaration adding the Development Property, or any part 14 thereof, to the Real Estate. Reference to this Declaration in any instrument shall be deemed to include all amendments to this Declaration without specific reference thereto. Section 6: Maximum Number of Lots. The maximum number of Lots in the Common Interest Community, as expanded, shall not exceed the number set forth in Article III, Section 6, above. Declarant shall not be obligated to expand the Common Interest Community beyond the number of Lots initially submitted to this Declaration. Section 7: Constriction Easement. Declarant expressly reserves the right to perform construction work, store materials on Common Elements, and the future right to control such work and the right of access thereto until its completion. All work may be performed by Declarant without the consent or approval of any Lot Owner or Mortgagee. Declarant has such an easement through the Common Elements as may be reasonably necessary for the purpose of discharging Declarant's obligations and exercising Declarant's reserved rights in this Declaration. Such easement includes the right to construct underground utility lines, pipes, wires, ducts, conduits, and other facilities across the Real Estate for the purpose of furnishing utility and other services to the Development Property. Declarant's reserved construction easement includes the right to grant easements to public, quasi-public, or cooperative utility companies and to convey improvements within those easements. Declarant further reserves the right to construct irrigation improvements within the Common Elements and within any Utility or Access Easement. Section 8: Reciprocal Easements. If all or any part of the Development Property is submitted to but subsequently withdrawn from the Common Interest Community ("the Withdrawn Property"): (i) the Lot Owner(s) of the Withdrawn Property shall have whatever easements are necessary or desirable, if any, for access, utility service, repair, maintenance, and emergencies over and across the Common Interest Community; and (ii) the Lot Owner(s) in the Common Interest Community shall have whatever easements are necessary or desirable, if any, for access, utility service, repair, maintenance, and emergencies over and across the Withdrawn Property. Declarant shall prepare and record in the office of the Clerk and Recorder of Weld County, Colorado, whatever documents are necessary to evidence such easements. Such recorded easement(s) shall specify that the Lot Owners of the Withdrawn Property and the Lot Owners in the Common Interest Community shall be obligated to pay a proportionate share of the cost of the operation and maintenance of any easements utilized by either one of them on the other's property upon such reasonable basis as the Declarant shall establish in the easement(s). Preparation and recordation by Declarant of an easement pursuant to this Section shall conclusively determine the existence, location, and extent of the reciprocal easements that are necessary or desirable as contemplated by this Section. Section 9: Termination of Expansion and Development Rights. The expansion and development rights reserved to Declarant, for itself and its successors and assigns, shall expire twenty (20) years from the date of recording this Declaration in the office of the Clerk and Recorder of Weld County, Colorado, unless the expansion and development rights are (i) extended as allowed by law or (ii) reinstated or extended by the Association, subject to whatever terms, conditions, and limitations the Executive Board may impose on the subsequent exercise of the expansion and development rights by Declarant. 15 Section 10: Transfer of Expansion and Development Rights. Any expansion, development, or withdrawal right created or reserved under this Article for the benefit of Declarant may be transferred to any Person by an instrument describing the rights transferred and recorded in the office of the Clerk and Recorder of Weld County, Colorado. Such instrument shall be executed by the transferor Declarant and the transferee. ARTICLE VII. ASSESSMENT FOR COMMON EXPENSES Section 1: Personal Obligation of Owners for Common Expenses. The Declarant, for each Lot owned, hereby covenants, and each Owner of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association Common Expense assessments imposed by the Association to meet the estimated Common Expenses. Section 2: Purpose of Assessment. The assessments levied by the Association shall be used exclusively to promote the recreation, health, safety, and welfare of the Owners and for the improvement and maintenance of the Common Elements. Section 3: Amount of Assessment. The amount of the assessment for the estimated Common Expenses which shall be paid by each Owner shall be determined by dividing the aggregate sum the Association reasonably determines to be paid by all Owners by the total number of Lots within the Common Interest Community, and the Owner of each Lot shall pay his proportionate share of such aggregate sum. Section 4: Maximum Annual Assessment. Until January 1 of the year immediately following the date of commencement of annual assessments,the maximum annual assessment shall be One Thousand Two Hundred Dollars($1,200) per Lot. (a) From and after January 1 of the year immediately following the date of commencement of annual assessments, the maximum annual assessment may be increased effective January 1 of each year without a vote of the membership in conformance with the rise, if any,of the Consumer Price Index for the Denver/Boulder region (published by the Department of Labor, Washington, D.C.) for the preceding month of July. (b) From and after January 1 of the year immediately following the date of commencement of annual assessments, the maximum annual assessment may be increased above that established by the Consumer Price Index formula by a vote of the Owners for the next succeeding two (2) years, and at the end of each such period of two (2) years, for each succeeding period of two (2) years, provided that any such change shall have the assent of two-thirds (2/3) of the votes of the Owners who are voting in person or by proxy at a meeting duly called for this purpose. The limitations hereof shall not apply to any change in the maximum and basis of the assessments undertaken as an incident to a merger or consolidation in which the Association participates. (c) The Executive Board may fix the annual assessment at an amount not in excess of the maximum. 16 Section 5: Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, payment of any operating deficit and/or unbudgeted cost, the cost of any construction, reconstruction, repair, or replacement of a capital improvement upon the Common Elements, including fixtures and personal property related thereto, and the cost of any construction, reconstruction, repair, or replacement of any street or road within the Common Interest Community; provided that any such Special assessment shall have the assent of two-thirds (2/3) of the votes of the Owners who are voting in person or by proxy at a meeting duly called for this purpose. Section 6: Notice and Quorum for any Action Authorized I Inder Sections 4 and 5. Written notice of any meeting called for the purpose of taking any action authorized under Section 4 or 5 shall be sent to all Owners not less than thirty (30) days nor more than sixty(60) days in advance of the meeting. At the first such meeting called, the presence of Owners or of proxies entitled to cast sixty percent (60%) of all the votes of the Owners shall constitute a quorum. If the required quorum is not present, another meeting may be called, subject to the same notice requirement, and the required quorum at the subsequent meeting shall be one-half(1/2)of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 7: I Jniform Rate of Assessment. Both annual and special assessments must be fixed at a uniform rate for all Lots and shall be collected on a periodic basis as determined by the Executive Board. Section 8: Date of Commencement of Annual Assessments. Due Dates. The annual assessments provided for herein shall commence as to all Lots on January 1 of the year following the completion of the construction and installation of all streets and utilities within the Real Estate by the Declarant. Section 9: Exempt Properly. The following property subject to the Declaration shall be exempted from the assessments,charges, and liens created herein: (a) All properties to the extent of any easement or other interest therein dedicated and accepted by a municipal or quasi-municipal corporation or other local public utility or authority and devoted to public use. (b) All Common Elements. Section 10: Record of Receipts and Expenditures. The Association shall keep detailed and accurate records in chronological order of all of its receipts and expenditures, specifying and itemizing the maintenance and repair of the Common Elements and any other expenses incurred. Such records shall be available on request for examination by the Lot Owners and others with an interest, such as prospective lenders. Section 11: Notice to Security Interest. Upon the request of a holder of a First Security Interest on a Lot, and upon payment of reasonable compensation therefor, the Association shall 17 report to such party any unpaid assessment or other defaults under the terms of this Declaration which are not cured by the Lot Owner within thirty(30) days after written notice of default given by the Association to the Lot Owner. Section 12: Certificate of Status of Assessments. The Association, upon written request to the Association, and upon payment of a reasonable fee, shall furnish to a Lot Owner or such Lot Owner's designee, to a holder of a Security Interest or its designee, or to a closing agent handling the closing of the sale or financing of the Owner's Lot a statement, in recordable form, setting out the amount of the unpaid Common Expense assessments against the Lot. The statement must be furnished within fourteen (14) business days after receipt of the request and is binding on the Association, the Executive Board, and each Lot Owner. A properly executed certificate of the Association as to the status of assessments on a Lot is binding upon the Association as of the date of its issuance. Omission or failure to fix an assessment or deliver or mail a statement for any period shall not be deemed a waiver, modification or release of a Lot Owner from his or her obligation to pay the same. Section 13: Common Expenses Attributable to Fewer than All Lots. The following Common Expenses may be chargeable to fewer than all Lots: (a) An assessment to pay a judgment against the Association may be made only against the Lots in the Common Interest Community at the time the judgment was entered, in proportion to their Common Expense Liabilities. (b) If a Common Expense is caused by the misconduct of a Lot Owner, the members of such Owner's family, or such Owner's guests, invitees, employees, agents, contractors, subcontractors, or tenants, the Association may assess that expense against that Lot Owner and such Owner's Lot. (c) Fees, charges, taxes, impositions, late charges, fines, collection costs, and interest charged against a Lot Owner pursuant to the Documents and the Act are enforceable as Common Expense assessments against such Owner's Lot. Section 10: Owner's Negligence. Notwithstanding anything to the contrary contained in this Declaration in the event that the need for maintenance or repair of the Common Elements or any improvements located thereon is caused by the willful or negligent act, omission, or misconduct of any Lot Owner or by the willful or negligent act, omission, or misconduct of any member of such Lot Owner's family or by a guest, invitee, employee, agent, contractor, or subcontractor of such Lot Owner or any tenant or member of a tenant's family,the costs of such repair and maintenance shall be the personal obligation of such Lot Owner, and any costs, expenses, and fees incurred by the Association for such maintenance, repair, or reconstruction shall be added to and become part of the assessment to which such Owner's Lot is subject and shall be a lien against such Owner's Lot as provided in this Declaration. A determination of the willful or negligent act, omission, or misconduct of any Lot Owner or any member of a Lot Owner's family or a guest, invitee, employee, agent, contractor, or subcontractor of any Lot Owner or tenant or member of a tenant's family and the amount of the Lot Owner's liability therefor shall be determined by the Executive 18 Board after notice to the Lot Owner and the right to be heard before the Executive Board in connection therewith. ARTICLE VIII. LIEN FOR NONPAYMENT OF COMMON EXPENSES Any assessment, charge, or fee provided for in this Declaration or any monthly or other installment thereof which is not fully paid within ten (10) days after the date due shall bear interest at a rate determined by the Executive Board. In addition, the Executive Board may assess a late charge thereon. Any Owner who fails to pay any assessment, charge, or fee of the Association shall also be obligated to pay to the Association, on demand, all costs and expenses incurred by the Association, including reasonable attorney's fees, in attempting to collect the delinquent amount. The total amount due to the Association, including unpaid assessments, fees, charges, fines, interest, late payment penalties, costs, and attorney's fees, shall constitute a lien on the defaulting Owner's Lot as provided in the Act. The Association may bring an action, at law or in equity, or both, against any Owner personally obligated to pay any amount due to the Association or any monthly or other installment thereof and may also proceed to foreclose its lien against such Owner's Lot. An action at law or in equity by the Association against a delinquent Owner to recover a money judgment for unpaid amounts due to the Association or monthly or other installments thereof may be commenced and pursued by the Association without foreclosing or in any way waiving the Association's lien. The Association's lien shall be superior to any homestead exemption now existing or hereafter created by any state or federal law. If any Owner fails to timely pay assessments or any money or sums due to the Association, the Association may require reimbursement for collection costs and reasonable attorneys' fees and costs incurred as a result of such failure without the necessity of commencing a legal proceeding. ARTICLE IX. COMMON ELEMENTS Section 1: Description of Common Elements. The Common Elements within the Common Interest Community shall consist of the following real and personal property, and such additional Common Elements as may be conveyed to the Association in connection with any property which may be added to the Common Interest Community pursuant to the terms of Article V hereinabove: (a) Open Space. The Common Elements shall include the Open Space. (b) Access Easement. The Common Elements shall include, and the Declarant hereby grants, bargains, sells, and conveys to the Association and to each Lot Owner, their heirs, personal representatives, successors, assigns, and invitees, forever, and reserves unto itself, its successors and assigns, a nonexclusive,perpetual easement sixty(60) feet in width over,across, and upon the Streets designated as Tract A on the Plat. The Declarant further grants to the County of Weld, Ault Fire Protection District, and any other governmental or quasi-governmental entity having jurisdiction over the Common Interest Community a nonexclusive, perpetual easement sixty (60) feet in width over, across, and upon the streets designated as Tract A on the Plat for routine and emergency access to the Lots and Open Spaces. The Declarant expressly reserves to itself and its successors, assigns, and invitees the right to use the Access Easement and to grant and convey the right to use the Access Easement to other Persons or entities that acquires an interest in all or any portion of the Common Interest Community including, but not limited to,the Development 19 Property. The Declarant shall construct the Streets within the Access Easement. Once constructed, the Association shall be responsible for the maintenance, repair, renovation, and improvement of the Streets including, by example and not limitation, snow removal. In the event any maintenance or repair of the Streets is necessitated by damage caused by a particular Owner or such Owner's invitees including, but example and not limitation, damage to the streets caused by trucks or other heavy equipment of any contractor, agent, employee, or subcontractor of an Owner during the construction of a Residence on the Owner's Lot, then the Association shall make the necessary repairs, but the cost thereof shall be assessed as a special assessment against the Owner and the Owner's Lot who caused the damage or whose contractors, agents, employees, subcontractors, or invitees caused the damage. Any special assessment made in connection with the repair or maintenance of the Streets shall be due and payable ten (10) days after notice of the assessment is given to the Owner of the Lot subject to the assessment. (c) Fences. The Common Elements shall include the Fence to be constructed and installed by the Declarant and thereafter maintained by the Association. The perimeter boundary Fence may have barbed wire, electric wire, or such other fencing material along the top of the Fence as may be necessary to constitute a"Legal Fence"under the laws of the State of Colorado and to turn away ordinary horses and cattle. (d) Utilities. The Common Elements shall include, and the Declarant hereby grants to the Association, its successors and assigns, and reserves unto itself, its successors and assigns, nonexclusive, perpetual Utility Easements as shown on the Plat. The Declarant and the Association shall have the right, at their sole and absolute discretion, to grant and convey Utility Easements to any Person or entity for the installation, construction, maintenance, and repair of utility pipes, conduits, wires, lines, systems, and facilities within the Utility Easement to provide water, sewer, gas, electric, telephone, television, or other utility services to the Lots. Use of the Utility Easement shall not be confined to present utility services available to the Common Interest Community but may be expanded as additional utility services become available. (e) Entrance Signs and Gates. The Common Elements shall include, and the Declarant hereby grants to the Association, its successors and assigns, and reserves unto itself, its successors and assigns, the right to construct, install, maintain, repair, and improve entrance signs and gates identifying the Common Interest Community. (f) Rules and Regulations. The Executive Board shall have the right to adopt reasonable Rules and Regulations governing the use of all streets within the Common Interest Community, provided that such Rules and Regulations apply to all Owners, their guests and invitees, in a nondiscriminatory manner. Such Rules and Regulations may include establishing the maximum speed limit for vehicles using the streets and regulations prohibiting on-street parking. The Executive Board shall have the right to assess fines for violations of the Rules and Regulations. Section 2: Owners' Easements of Enjoyment. Each Lot Owner shall have a right and easement of enjoyment in and to the Common Elements, and such easement shall be appurtenant to and shall pass with title to every Lot, subject to the following provisions: 20 (a) The right of the Association to promulgate and publish reasonable Rules and Regulations as provided in this Declaration. (b) The right of the Association to suspend voting rights and the right to use the Common Elements by an Owner for any period during which any assessment against his or her Lot remains unpaid and for a period not to exceed sixty (60) days for any infraction of its published Rules and Regulations; provided, however,that the Association may not prohibit access to any Lot. (c) The right of the Declarant or the Association, acting through its Executive Board, to dedicate or transfer any part of the Common Elements to any public, quasi-public, or cooperative agency,authority, utility,or other entity. (d) The right of the Association to close or limit use of the Common Elements while maintaining, repairing, or making replacements in the Common Elements. (e) The right of the Declarant to add all or any portion of the Development Property to the Common Interest Community and, in connection therewith, to grant to the Owners of Lots within the Development Property easements over and across the Common Elements. (f) The right, but not the obligation, of the Declarant or the Association, acting through its Executive Board, to construct, install, maintain, repair, and improve a gate at the intersection of any Street within the Common Interest Community and an adjacent public street or -^ road. Section 3: Delegation of i Jse. A Lot Owner may delegate his or her right of enjoyment to the Common Elements to the members of his or her family (as defined in Article II, Section 31 of this Declaration), guests, invitees, and tenants subject to the terms and provisions of the Documents. ARTICLE X. ARCHITECTURAL CONTROL Section I: Architectural Control Committee. (a) Membership. The Architectural Control Committee shall consist of three (3) persons. The members of the Architectural Control Committee shall be appointed by the Declarant. The Declarant may assign its right to appoint the members of the Architectural Control Committee to the Executive Board, which shall thereafter appoint the members of the Architectural Control Committee from among the Owners. (b) Purpose. The Architectural Control Committee is established for the purpose of maintaining within the Common Interest Community a consistent and harmonious general character of development and a style and nature of building design and visual appeal consistent with the natural beauty and features of the Common Interest Community. (c) Term. Each member of the Architectural Control Committee shall serve at the pleasure of the person or entity appointing such member. In the event of the death or 21 resignation of any member of the Architectural Control Committee, the person or entity that appointed such member shall appoint a successor. (d) Decisions. All decisions of the Architectural Control Committee shall be by a majority vote of those members of the Committee present at a meeting at which a quorum is present. A majority of the members of the Architectural Control Committee shall constitute a quorum. Decisions concerning the approval or denial of an Owner's application for architectural changes shall be made in accordance with standards and procedures set forth in this Declaration or in duly adopted Rules and Regulations of the Association and shall not be made arbitrarily or capriciously. (e) Compensation. The members of the Architectural Control Committee shall not be entitled to any compensation for services performed pursuant to this Declaration but shall be entitled to reimbursement by the Association for all costs and expenses incurred in performing their duties pursuant to this Declaration. (f) Delegation. The Architectural Control Committee shall have the power to delegate the responsibility for reviewing any application submitted to the Architectural Control Committee to a professional architect, engineer, or other professional person who is qualified to pass on the issues raised in the application. The Architectural Control Committee shall also have the power to require that the applicant pay the fees reasonably incurred by the Architectural Control Committee in retaining such professional to review the application submitted. (g) Nonliahility. No member of the Architectural Control Committee shall be liable to the Association or to any Owner or prospective Owner for any loss, damage, or injury arising out of or in connection with the performance of the duties of the Architectural Control Committee under this Declaration, unless such action constitutes willful misconduct or bad faith on the part of the Architectural Control Committee. Review and consideration of any application submitted to the Architectural Control Committee shall be pursuant to this Declaration, and any approval granted shall not be considered approval of the structural safety or integrity of the improvements to be constructed or conformance of such improvements with building codes, zoning resolutions, subdivision regulations, or other governmental rules and regulations applicable to the Common Interest Community. Section 2: Control. No construction, alteration, addition, modification,exterior decoration, exterior redecoration, or reconstruction of any building, fence, wall, structure, or other improvement within the Common Interest Community shall be commenced or maintained until the plans and specifications thereof shall have been approved by the Architectural Control Committee. Section 3: Submission. Each application for approval shall include the following: (a) Two (2) complete copies of a site plan of the Lot. The site plan shall show the following information: (1) A building footprint with dimensions from front, rear, and side boundary lines of the Lot. 22 (2) Driveways located or to be constructed on the Lot. (3) Any existing structures on the Lot. (4) Location of improvements with respect to utility lines and facilities. (b) Two (2) complete sets of construction plans and specifications. Said plans and specifications shall include the following minimum information: (1) Floor plans of all levels of any Residence, which plans shall contain sufficient detail to describe the elements of the floor plan design. (2) Total square footage for each level of any Residence. (3) Building elevations on all sides of the proposed structure containing sufficient detail to determine roof form and material, window locations, siding material, and door placements. (4) A written description of the materials to be used in the roof and exterior walls of the structure. (5) The size, type, and material to be incorporated in any fencing to be located on the Lot. (6) The color of any paint, stain, or stucco to be applied to the improvements and the color of the roofing material. Section 4: Appeal. So long as the Declarant has the right to appoint the members of the Architectural Control Committee, decisions of the Committee may be appealed to the Declarant. The decision of the Declarant shall be final. Decisions made on the Architectural Control Committee appointed by the Board may be appealed to the Board pursuant to the following procedure: If the applicant or any Owner (appellant) is dissatisfied with the decision of the Architectural Control Committee to approve or deny any application submitted to it, the Owner may appeal the decision to the Board by giving written notice of appeal to the Board, the Architectural Control Committee and the applicant (if other than the appellant). The notice shall be given within ten (10) days after the decision of the Architectural Control Committee. The Board shall hear and consider the appeal at its next regular meeting following the date notice of appeal is given. The appellant, the applicant (if other than the appellant), and the Architectural Control Committee may have a representative present at the hearing, and shall have the right to present such evidence as may be relevant to the appeal. The Board shall give notice of its decision within ten (10) days after the conclusion of the hearing. If the Architectural Control Committee, the applicant or the appellant is dissatisfied with 23 the decision of the Board, such person or entity may appeal the decision to the Owners. Notice of appeal to the Owners shall be given within ten (10) days of the Board's decision to the Board, the applicant, the appellant (if other than the applicant) and the Architectural Control Committee. The Board shall schedule and give notice of a special meeting of the Owners to consider the appeal, which meeting shall be held not less than ten (10) nor more than sixty (60) days following the date that notice of appeal is given to the Board. If a decision of the Architectural Control Committee is appealed to the Board, the decision shall be upheld and affirmed unless a majority of all directors then in office (regardless of the number of directors actually present at the meeting) vote to reverse and overturn the decision of the Architectural Control Committee. If the decision of the Board is appealed to the Owners, the decision of the Board shall be upheld and affirmed unless a majority of all Owners (regardless of the number of Owners actually present at the special meeting called for the purpose of considering the appeal) vote to reverse and overturn the Board's decision. Section 5: Rules and Guidelines. The Architectural Control Committee may issue rules setting forth procedures for the submission of plans for approval and may also issue guidelines setting forth the criteria that the Architectural Control Committee will use in considering plans submitted to it for approval. The Rules and Guidelines may be amended from time to time by the Architectural Control Committee. Section 6: Review of Plans and Specifications. The Architectural Control Committee shall consider,and act upon any and all requests submitted for its approval. The Architectural Control Committee shall approve plans and specifications submitted to it only if it determines that the construction, alteration, or additions contemplated thereby, and in the location as indicated, will comply with this Declaration, will serve to preserve and enhance the values of Lots within the Common Interest Community, and will maintain a harmonious relationship among structures, vegetation, topography, and the overall development of the Common Interest Community. The Architectural Control Committee shall consider the quality of workmanship, type of materials, and harmony of exterior design with other Residences located within the Common Interest Community. Should the Architectural Control Committee fail to approve or disapprove the plans and specifications submitted to it by an Owner of a Lot within thirty (30) days after complete submission of all required documents,then such approval shall not be required; provided, however, that no building or other structure shall be erected or allowed to remain on any Lot which violates any of the covenants or restrictions contained in this Declaration. The issuance of a building permit or license for the construction of improvements inconsistent with this Declaration shall not prevent the Association or any Owner from enforcing the provisions of this Declaration. Approval by the Architectural Control Committee shall be in writing or by endorsement on the plans. Section 7: No Waiver of Future Approval. The approval by the Architectural Control Committee of any proposal or plans and specifications for any work to be done on a Lot shall not be deemed to constitute a waiver of any right to withhold approval or consent to any similar proposals, plans, specifications, drawings, or other matter subsequently or additionally submitted for approval by the same Owner or by another Owner. 24 Section 8: And Ilse and Building Type. No building or other structure shall be erected, altered, placed, or permitted to remain on any Lot other than one (1) Single Family, site-built Dwelling per Lot, with attached garage for three (3) automobiles; outbuildings as hereinafter described; and such other structures as may be approved by the Architectural Control Committee. Section 9: Residence Size. No Residence shall be erected, altered, or permitted to remain on any Lot of the Common Interest Community unless the ground floor area thereof, exclusive of basements, open porches, and garages, is not less than two thousand two hundred (2,200) square feet for a single-story Residence and a total of two thousand five hundred (2,500) square feet for a multi-level Residence. The square footage of basements, walk-outs, and garden levels shall not be included in determining the square footage of any Residence. For purposes of this provision, the terms "basement," "walk-out," and "garden level" shall mean any level, a portion of which is constructed below the ground elevation. Section 10: Attached Garages. Each Residence shall include an attached, three-car garage. "Three-car garage" shall mean that three (3) motor vehicles may be parked side-by-side in the garage. The garage shall have three (3) standard-size, single-car garage doors or one (1) standard- size, single-car garage door and one (1) standard-size, double-car garage door. Tandem garages in which motor vehicles are parked one behind another shall not be deemed to satisfy the requirement of a three-car garage even though the tandem garage may be capable of accommodating three motor vehicles. Larger garages shall be permitted if approved by the Architectural Control Committee. Section 11: Detached Garages/Outbuildings. If an Owner desires an additional detached garage or outbuilding, one detached garage or outbuilding may be permitted if approved by the Architectural Control Committee. A detached garage or outbuilding must match the Residence in style, color, and design and shall not exceed one thousand six hundred (1,600) square feet in size on the ground level. A second story may be permitted so long as it does not exceed two-thirds (2/3rds) the area of the ground level and the Architectural Control Committee determines the second story will enhance the architectural design of the structure. The Architectural Control Committee will consider location impact on other Lots and obstruction of view corridors in reviewing plans for a detached garage. Section 12: Roof. Roof material shall be tile; dimensional asphalt singles having a minimum forty (40) year warranty; or other shingles as approved by the Architectural Control Committee. Metal roofs are not permitted. Section 13: Siding. All exteriors shall be brick, masonry, stucco, wood, or top-grade synthetic siding. Brick or other masonry, if used, shall wrap around the front corners of the Residence a minimum of four (4) feet. Synthetic siding may only be installed with adequate backing and in strict conformance to the manufacturer's recommendations and specifications. No log homes shall be permitted. Section 14: Color. All Residences and other structures constructed on any Lot shall be white or earthtone in color as approved by the Architectural Control Committee. 25 Section 15: Building Height. No Residence or other structure constructed upon any Lot shall exceed forty (40) feet in height from the top of the main-floor foundation of such Residence or structure to the highest point on the Residence or structure. The Architectural Control Committee may grant relief from the provisions of this section for good cause shown. Section 16: Outbuildings. Except as otherwise permitted in this Declaration, outbuildings, storage sheds, above-ground swimming pools and other buildings, structures and improvements are prohibited. Section 17: Exterior lighting. Any exterior lighting shall be installed so as to minimize any significant adverse impact on adjacent Lots. Section 18: Driveways. All driveways shall be constructed of asphalt or concrete pavement or other hard surfacing approved by the Architectural Control Committee. Recycled asphalt shall not be permitted. The Owner of each Lot shall install a culvert at the entrance to the Owner's driveway. Driveway culverts shall be double-walled black corrugated polyethylene pipe with flared end sections of a quality equal to or better than "N-12" pipe manufactured by Advanced Drainage Systems. Section 19: Building Location. Except as otherwise provided in this section, no Residence or other structure shall be constructed or placed upon any Lot nearer to the front Lot line, side Lot line, or rear Lot line than the following minimum setback requirements: (a) Front T.nt Line: No building shall be located on any Lot nearer than fifty (50) feet from the front Lot line. (b) Side T.nt Line: No buildings shall be located on any Lot nearer than twenty- five(25) feet to the side Lot line. (c) Rear I nt Tine: No building shall be located on any Lot nearer than twenty- five (25)feet to the rear Lot line. For purposes of this section, building corners, eaves, steps, open porches (roofed or not roofed), or other components of a building shall be considered as part of the building. The Architectural Control Committee or the Executive Board of the Association reserves the right to designate which streets are front streets and which property lines are front Lot lines, side Lot lines, and rear Lot lines. Any "reverse corner Lots" (i.e., those Lots having streets on two [2] sides of the Lot) shall be required to satisfy the front Lot line setback requirements set forth above on both sides of the Lot abutting such streets regardless of which direction the building thereon faces. The Architectural Control Committee may grant relief from the provisions of this Section for good cause shown. Notwithstanding the foregoing setback requirements, no building or other structure, except fences, shall be constructed, installed, or permitted to remain within any easement. Section 20: Sight Distance at intersections. No fence, wall, hedge, or shrub planting which obstructs sight lines at elevations less than six (6) feet above the street shall be placed or permitted to remain on any corner Lot unless it is placed at least seventy-five (75) feet from the centerline of 26 both streets. No tree or obstruction shall be permitted to remain on a corner Lot unless the foliage line is maintained to sufficient height to prevent obstruction of sight lines. Section 21: Construction. Construction of a Residence or other structure approved by the Architectural Control Committee shall commence within nine (9) months after approval of the plans and specifications, and the Owner shall thereafter proceed diligently with such construction. The exterior of any such structure shall be completed within nine (9) months of the date of commencement of construction. The Architectural Control Committee may grant an extension of the foregoing time periods for good cause and when such extension is requested by the Owner. Each Owner shall provide portable toilet facilities and trash dumpster during construction of the Residence on such Owner's Lot. i Section 22: Fences. Any Fence to be constructed on a Lot must be approved by the Architectural Control Committee. If the Owner of a Lot desires: (a) to fence any portion of the perimeter boundary of his or her Lot; or (b) to fence any portion of his or her Lot within one hundred (100) feet of the front property line; or (c) fence any portion of his or her Lot within one hundred (100) feet of a side property line where it abuts an internal Street, the fence shall be a white, three rail vinyl Fence the same as that constructed by the Declarant along the boundary of the Common Interest Community. An Owner may install wire mesh along the inside of a three rail vinyl Fence; except along the street or any Fence constructed within one hundred seventy-five(175) feet of a street. An Owner may construct a privacy fence around a patio, deck, garden, or other enclosed area, provided that the enclosed area does not exceed three thousand (3,000) square feet. All privacy fences shall be constructed of wood, masonry, or other materials approved by the Architectural Control Committee. No privacy fence may be constructed within twenty-five (25) feet of the side Lot line. No privacy fence of any kind may be constructed nearer the front Lot line than the midpoint of the side of the Residence constructed on the Lot. An Owner may construct a kennel and dog run on the Lot, which dog run may be constructed of chain link fence, provided that the dog run is partially screened from view from other Lots or adjacent streets by a privacy fence or masked by landscaping approved by the Architectural Control Committee. Section 23: landscaping. Each Lot shall be fully landscaped within twelve (12) months after the issuance of a certificate of occupancy for a Residence on the Lot. Native grasses shall be a permissible form of landscaping. Prior to construction and installation of landscaping, the Owner of each Lot shall swath and bale or mow the Lot as necessary. Upon installation of the landscaping, the Owner shall properly maintain the landscaping, which shall include replacing dead and diseased plans, trees and shrubs. Notwithstanding the foregoing, neither the Architectural Control Committee nor the Board shall have the power to take any enforcement action against any Owner that allows his or her existing landscaping to die: (a) during a period of water use restrictions declared by the jurisdiction in which the Common Interest Community is located, in which case the Owner shall comply with any watering restrictions imposed by the water provider for the Common Interest Community; (b) any enforcement action taken by the Architectural Control Committee or Board shall be consistent within the Common Interest Community and shall not be arbitrary or capricious; and 27 (c) once the drought emergency is lifted, the Owner shall be allowed a reasonable and practical opportunity, as defined by the Board, with consideration of applicable local growing seasons or practical limitations, to reseed and revive turf grass before being required to replace it with new sod. Section 24: Signs. No sign of any character shall be displayed or placed upon any Lot, with the following exceptions: (a) one (1) sign per Lot of not more than six (6) square feet in total area advertising a Lot for sale shall be permitted on any Lot; (b) the Declarant or the Association shall have the right to place a permanent sign at each entrance to the Common Interest Community identifying the development; (c) until such time as the Declarant is no longer the Owner of a Lot, the Declarant or its agents shall have the right to place one or more signs on the Common Interest Community , without limitation of size, offering Lots within the Common Interest Community for sale; and (d) additional signs may be permitted if approved by the Architectural Control Committee. Section 25: Clotheslines. Only retractable clotheslines may be installed on a Lot. Section 26: Antennas. No antenna or other device for the transmission or reception of television or radio signals or any other form of electromagnetic radiation, including, by example and not limitation, satellite dishes, shall be erected, used, or maintained outdoors on any Lot, whether attached to a building or structure or otherwise, unless approved by the Architectural Control Committee. Antennae exceeding the height of the Residence shall not be permitted. Section 27: 4torage Tanks and Containers. No elevated tanks of any kind shall be erected, placed, or permitted to remain on any Lot unless such tanks are screened from view from other Lots and from the streets by fencing or landscaping in a manner approved by the Architectural Control Committee. All air-conditioning, refrigeration, cooling, heating, or other mechanical equipment or system which is located outside of a Residence or other structure on a Lot shall be screened from view from other Lots and from the streets by fencing or landscaping approved by the Architectural Control Committee. Window air-conditioning units and swamp coolers shall not be permitted. Section 28: Damage or Destruction of Improvements. In the event any Residence or other structure constructed on a Lot is damaged, either in whole or in part, by fire or other casualty, said Residence or other structure shall be promptly rebuilt or remodeled to comply with this Declaration; or in the alternative, if the Residence or other structure is not to be rebuilt, all remaining portions of the damaged structure, including the foundation and all debris, shall be promptly removed from the Lot, and the Lot shall be restored to its natural condition existing prior to the construction of the Residence or other structure. 28 ARTICLE XI. tNSIJRANCF, Section 1. To Re Obtained by the Association. The Association shall obtain and maintain at all times, to the extent obtainable at reasonable cost, policies involving standard premium rates established by the Colorado Insurance Commissioner and written with companies licensed to do business in Colorado and having a Best's Insurance Report rating of A & XV or better covering the risks set forth below. The Association shall not obtain any policy where: (1) under the terms of the insurance company's charter, bylaws, or policy, contributions or assessments may be made against a Mortgagee or Mortgagee's designee; or (2) by the terms of the carrier's charter, bylaws or policy, loss payments are contingent upon action by the company's board of directors, policyholders, or members; or (3) the policy includes any limiting clauses (other than insurance conditions) which could prevent the Association from collecting insurance proceeds. The types of coverage to be obtained and risks to be covered are as follows: (a) Liability Insurance. The Association shall maintain public liability and property damage insurance in such limits as the Board may from time to time determine but not in an amount less than One Million Dollars ($1,000,000) per injury, per Person, per occurrence, and umbrella liability limits of One Million Dollars ($1,000,000) per occurrence covering all claims for bodily injury or property damage. Coverage shall include, without limitation, liability for personal injuries, operation of automobiles on behalf of the Association, and activities in connection with the ownership, operation, maintenance, and other use of the Common Elements. Premiums for liability insurance shall be assessed as a General Common Expense. (b) Workers' Compensation Insurance. The Association shall maintain workers' compensation and employer's liability insurance and all other similar insurance with respect to employees of the Association in the amounts and in the forms now or hereafter required by law. Premiums for Worker's Compensation Insurance shall be assessed as a General Common Expense. (c) Officers' and Directors' insurance. To the extent such insurance can be obtained at reasonable cost, the Association shall maintain blanket fidelity bonds for all officers, directors, and employees of the Association and all other Persons handling or responsible for funds of or administered by the Association. If the managing agent has the responsibility of handling or administering funds of the Association, the managing agent shall be required to maintain fidelity bond coverage for its officers, employees, and agents handling or responsible for funds of or administered on behalf of the Association. Such fidelity bonds shall name the Association as an obligee and shall not be less than the estimated maximum amount of funds, including reserve funds, in the custody of the Association or the managing agent at any given time during the term of each bond. In no event shall the aggregate amount of such bonds be less than a sum equal to three (3) months' aggregate Common Expense assessments on all Lots plus reserve funds. Such bonds shall contain waivers by the issuers thereof of all defenses based upon the exclusion of Persons serving without compensation from the definition of employees or similar terms or expressions. The premiums on all bonds required hereunder, except those maintained by the managing agent, shall be paid by the Association as a General Common Expense. 29 (d) Other Insurance. The Association may obtain insurance against such other risks of a similar or dissimilar nature as shall be deemed appropriate. Section 2. Requirements of Insurance. All policies of insurance, to the extent obtainable, shall contain waivers of subrogation and waivers of any defense based on invalidity arising from any acts of an Owner and shall provide that such policies may not be cancelled or modified without at least ten(10) days' prior written notice to the Association. Section 3. Notice to Mortgagees. In the event of any damage, destruction, loss or taking of the Common Elements in excess of Ten Thousand Dollars ($10,000), notice shall be given to all First Mortgagees within ten (10) days after such occurrence. Section 4. Claims. Owners may file claims against the Association's insurance policy to the same extent and with the same affect as if the Owner were an additional named insured. ARTICLE XII. USE RESTRICTIONS Section 1: Trash Collection. The Association, acting through its Executive Board, shall have the right to require that any trash collection within the Common Interest Community be performed by one company and that trash be collected from all Lots by such company on the same day of each week. The Executive Board shall select the trash company based on competitive bids. ^ The cost of trash collection shall be paid by each Owner directly to the trash collection company, and the Association shall not have the duty to assess the cost of trash collection as a Common Expense. Nothing herein contained shall be construed to prohibit an Owner from personally disposing of trash from his Lot. This section shall not apply to a contractor during the construction of a Residence or other improvements on a Lot. The contractor may dispose of trash, rubbish, debris, and other construction materials from the Lot either personally or by contracting with a trash collection company. The trash collection company may remove trash, rubbish, debris, and other construction materials from the Lot during the construction of the Residence as often as the contractor deems appropriate. All dumpsters shall have lid tie-downs to protect them from animals and wind. Section 2: Mineral Extraction. No mining or extraction of oil, gas, gravel, or other minerals shall be permitted on any Lot. Section 3: Restrictions on Leasing. No Lot Owner shall lease his or her Residence to any group of people other than a "single family" as defined in Article II hereinabove nor shall any lease be for a period of less than thirty (30) days. All such leases shall be in writing and shall contain a covenant by the tenant or tenants that their use and occupancy of the Residence pursuant to the terms of the lease are subject to the terms and conditions set forth in this Declaration and that such tenant will abide by the terms contained herein as well as all Rules and Regulations promulgated by the Association. Section 4: Household Pets. No animals shall be permitted within the Common Interest Community except dogs, cats, or other Household Pets, may be kept on a Lot, provided the same 30 are not boarded, kept, bred, or maintained for any commercial purposes. No more than three (3) dogs and no more than a total of four(4) adult dogs and adult cats may be kept on any Lot(one dog and three cats; or two dogs and two cats; or three dogs and one cat; or four cats). Dogs and cats shall not be considered adults until they are six (6) months old. Household Pets shall be subject to all Rules and Regulations adopted by the Association and all governmental ordinances or laws applicable to the Common Interest Community. Dogs shall at all times be confined by fence, leash, or under voice command. Each Owner of a pet shall be responsible for the prompt cleanup and removal of such pet's excrement from his or her Lot, Streets and Open Spaces. No dogs, cats or other Household Pets may be boarded, kept, bred, used, or maintained on any Lot for any commercial purpose. Section 5: I Ise of Common Elements. All use of the Common Elements shall be subject to and governed by the Rules and Regulations adopted by the Association. No damage or waste shall be committed to the Common Elements by Lot Owners,their families,tenants, guests, and invitees. Section 6: Occupancy of Lot. In addition to any other restrictions imposed upon Lot Owners by Weld County, Colorado, with regard to the completion of a Residence and notwith- standing the issuance of a temporary or permanent certificate of occupancy for the Residence by the appropriate governmental entity, no Residence shall be occupied until all buildings, fences, walls, structures, and other improvements as are set forth in the plans and specifications submitted to and approved by the Architectural Control Committee shall first be constructed and installed, including, but not limited to, the rough grading of the Lot and the installation of driveways and sidewalks thereon. Section 7: General Prohibition. No use shall be made of an Owner's Lot which will in any manner violate the statutes or rules and regulations of any Governmental Authority having jurisdiction over the use of said Owner's Lot. Section 8: Maintenance of Lots and Improvements. Owners of Lots shall keep or cause to be kept all buildings, fences, and other structures and all landscaping located on their Lot in good repair. Rubbish, refuse, garbage, and other solid, semi-solid, and liquid waste shall be kept within sealed containers, shall not be allowed to accumulate on any Lot, and shall be disposed of in a sanitary manner. No Lot shall be used or maintained as a dumping ground for such materials. All containers shall be kept in a neat, clean, and sanitary condition and shall be stored inside a garage or other approved structure. No trash, litter, or junk shall be permitted to remain exposed upon any Lot and visible from adjacent streets or other Lots. Burning of trash on any Lot shall be prohibited. No lumber or other building materials shall be stored or permitted to remain on any Lot unless screened from view from other Lots and from the streets, except for reasonable storage during construction. Section 9: Nuisance. Nothing shall be done or permitted on any Lot which is or may become a nuisance. No obnoxious or offensive activities or commercial businesses or trades shall be conducted on any Lot, except home occupations as defined and permitted by the applicable zoning resolution of the Governmental Authority having jurisdiction over the Common Interest Community. In addition to any restrictions imposed upon Lot Owners by a Governmental 31 Authority with regard to home occupations or businesses, no Owner shall conduct any business activity or home occupation upon his or her Lot which shall involve the sale or storage of merchandise upon the Lot, the delivery of merchandise or materials to the Lot by commercial vehicles more often than once a month, or the use of more than fifteen percent (15%) of the space within a Residence for such business or home occupation. Notwithstanding the foregoing, the Architectural Control Committee shall have the right to authorize business activities or home occupations upon any Lot that do not meet such requirements, provided that it shall first determine that such home occupation or business shall not unreasonably interfere with the use and enjoyment of the Common Interest Community by other Lot Owners and provided further that the Owner conducting such business activities or home occupation agrees to such reasonable Rules and Regulations as may be imposed upon him or her by the Architectural Control Committee. Section 10: Temporary Stnictnres. No structure of a temporary character, including, by example and not limitation, trailers, converted trailers, shacks, recreational vehicles, fifth wheel trailers, campers, basements, tents, garages, or accessory buildings, shall be used on any Lot as a Residence, temporarily or permanently. Section 11: Restriction of 11se. No unlicensed motor-driven, engine-powered, or other mechanically propelled vehicle, including, by example and not limitation, all-terrain vehicles and snowmobiles,may be used or operated within or upon any Lot, Open Space or Street. Section 12: ,Storage of Vehicles. Boats, campers, snowmobiles, all-terrain vehicles, -- trailers, machines,tractors, semi-tractors,tractor trailers,trucks(except standard pickup trucks), and inoperative automobiles shall not be stored, parked, or permitted to remain on any street, Lot, or Common Element, except within fully-enclosed garages or within screened or fenced areas approved by the Architectural Control Committee. For purposes of this provision, any disassem- bled or partially disassembled car or other vehicle or any car or other vehicle which has not been moved under its own power for more than one (1) week shall be considered an inoperative automobile subject to the terms of this Section. Section 13: Discharge of Weapons. No person shall discharge, fire, or shoot any gun, pistol, crossbow, bow and arrow, slingshot, or other firearm or weapon whatsoever, including BB guns and pellet guns, within the Common Interest Community. Notwithstanding the foregoing, the discharge of firearms or weapons by any member of any law enforcement agency in the course of such member's official duty shall not be deemed a violation of this provision. Section 14: Disturbing the Peace. No person shall disturb, tend to disturb, or aid in disturbing the peace of others by violent, tumultuous, offensive, disorderly, or obstreperous conduct, and no Owner shall knowingly permit such conduct upon any Lot owned by such Owner. Section 15: Limitations. Notwithstanding any provision in this Declaration, the Bylaws, or the Rules and Regulations of the Association to the contrary, the Association shall not prohibit any of the following: (a) The display of the American flag by an Owner on that Owner's Lot, in a window of the Owner's Dwelling, or on the exterior of the Owner's Dwelling if the American flag 32 is displayed in a manner consistent with the Federal Flag Code (4 USC § 4-10). The Association may adopt reasonable rules regarding the placement and manner of display of the American flag. The Association rules may regulate the location and size of flags and flag poles, but shall not prohibit the installation of a flag or flag pole. The height of a flag pole shall not exceed the height of the Dwelling on the Lot. (b) The display by an Owner of a service flag bearing a star denoting the service of the Owner or a member of the Owner's family as defined in Article II, Section 31 of this Declaration in the active or reserve military service of the United States during a time of war or armed conflict, on the inside of a window or door of the Owner's Dwelling. The Association may adopt reasonable rules regarding the size and manner of display of service flags; except that the maximum dimensions allowed shall be not less than 9 inches by 16 inches. (c) The display of a political sign by an Owner on that Owner's Lot or in a window of that Owner's Dwelling; except that the Association may prohibit the display of political signs earlier than 45 days before the day of an election and later than 7 days after an election day. The Association may regulate the size and number of political signs that may be placed on an Owner's Lot if the Association regulation is no more restrictive than any law or ordinance of any Governmental Authority having jurisdiction over the Property that regulates the size and number of political signs on residential property. If the Governmental Authority that has jurisdiction over the Common Interest Community does not regulate the size and number of political signs on residential property, the Association shall permit at least one political sign per political office or ballot issue that is contest in a pending election, with the maximum dimensions of 36 inches by 48 inches, on an Owner's Lot. "Political sign" means a sign that carries a message intended to influence the outcome and election, including supporting or opposing the election of a candidate, the recall of a public official,or the passage of a ballot issue. (d) The parking of a motor vehicle by an Owner on a driveway or guest parking area in the Common Interest Community if the vehicle is required to be available at designated periods at the Owner's Dwelling as a condition of the Owner's employment and all of the following criteria are met: (i) the vehicle has a gross vehicle weight rating of 10,000 pounds or less; (ii) the Owner is a bona fide member of a volunteer fire department or is employed by an emergency service provider as defined in C.R.S. § 29-11-101(1.6); (iii) the vehicle bears an official emblem or other visible designation of the emergency service provider; and (iv) parking of the vehicle can be accomplished without obstructing emergency access or interfering with the reasonable needs of other Owners to use the Streets within the Common Interest Community. 33 (e) The removal by an Owner of trees, shrubs, or other vegetation to create defensible space around a dwelling for fire mitigation purposes, so long as such removal complies with a written defensible space plan created for the Lot by the Colorado State Forest Service, an individual or company certified by a Governmental Authority to create such a plan,or the fire chief, fire marshall, or fire protection district having jurisdiction over the Common Interest Community, and is no more extensive than necessary to comply with such plan. The plan shall be registered with the Association before the commencement of work. The Association may require changes to the plan if the Association obtains the consent of the Person, official or agency that originally created the plan. The work shall comply with applicable Association standards regarding slash removal, stump height, revegetation, and contractor regulations. ARTICLE XIII. DRAINAGE Section 1: Acknowledgement. The soils within the state of Colorado consist of both expansive soils and low-density soils which will adversely affect the integrity of the Residence if the Residence and the Lot on which it is constructed are not properly maintained. Expansive soils contain clay minerals which have the characteristic of changing volume with the addition or subtraction of moisture, thereby resulting in swelling and/or shrinking soils. The addition of moisture to low-density soils causes a realignment of soil grains, thereby resulting in consolidation and/or collapse of the soils. Section 2: Moisture. Each Owner of a Lot shall use his or her best efforts to assure that the moisture content of those soils supporting the foundation and the concrete slabs forming a part of the Residence constructed thereon remain stable and shall not introduce excessive water into the soils surrounding the Residence. Section 3: Water Flow. The Owner of a Lot shall not impede or hinder in any way the water falling on the Lot from reaching the drainage courses established for the Lot and the Common Interest Community. Section 4: Action by Owner. To accomplish the foregoing, each Owner of a Lot covenants and agrees, among other things: (a) Not to install improvements, including, but not limited to, landscaping, items related to landscaping, walls, walks, driveways, parking pads, patios, fences, additions to the Residence, outbuildings, or any other item or improvement which will change the drainage pattern from the Lot onto adjacent Lots, Streets, or Open Spaces as originally designed by the Declarant. The installation of such improvements is acceptable so long as the manner of installation is consistent with, and does not change, the drainage from the Lot onto adjacent Lots, Streets, or Open Spaces as originally designed by the Declarant. (b) To fill with additional soil any back-filled areas adjacent to the foundation of the Residence and in or about the utility trenches on the Lot in which settling occurs to the extent necessary from time to time to maintain the drainage from the Lot onto adjacent Lots, Streets, or Open Spaces as originally designed by the Declarant. 34 (c) Not to water the lawn or other landscaping on the Lot excessively. (d) Not to plant flower beds (especially annuals) and vegetable gardens adjacent to or within three(3) feet of the foundation and slabs of the Residence. (e) If evergreen shrubbery and grass is used within five (5) feet of the foundation walls, to water the shrubbery and grass by controlled hand watering and to avoid excessive watering. (I) To minimize or eliminate the installation of piping and heads for sprinkler systems within five(5) feet of foundation walls and slabs. (g) To install any gravel beds in a manner which will assure that water will not pond in the gravel areas, whether due to nonperforated edging or due to installation of the base of the gravel bed at a lever lower than the adjacent lawn. (h) To install a moisture barrier(such as polyethylene)under any gravel beds. (i) To maintain the gutters and downspouts which discharge water into extensions or splash blocks by assuring that (i) the gutters and downspouts remain free and clear of all obstructions and debris; (ii) the water that flows from the extension or the splash block is allowed to flow rapidly away from the foundation and/or slabs; and (iii) the splash blocks are maintained under sill cocks. (j) To recaulk construction joints opening up between portions of the exterior slabs and garage slabs in order to thereby seal out moisture. Section 5: Disclaimer. The Declarant shall not be liable for any loss or damage to the Residence, any outbuilding, concrete slab, driveway, sidewalk, or other improvement on any Lot caused by, resulting from, or in any way connected with soil conditions on any Lot. ARTICLE XIV. SIJRROIJNDING AGRICIII.TI IRA I, IJSES AND WILDLIFE Section 1: Right_ t The rural land surrounding Waterford Hill is intensively used for agriculture, and Owners of Lots within the Common Interest Community must recognize that there are agricultural practices ongoing and which will continue in the agricultural land surrounding the Common Interest Community. Agricultural users of the land should not be expected to change their long-established agricultural practices in order to accommodate the intrusions of urban users into their area. Well-run agricultural activities will generate off-site impacts, including noise from tractors and equipment; dust from animal pens, field work, harvest, and dirt roads; odor from animal confinement, silage, and manure; smoke from ditch burning; flies and mosquitoes; the use of pesticides and fertilizers in the fields, including the use of aerial spraying. Ditches and reservoirs cannot simply be moved "out of the way" of residential development without threatening the efficient delivery of irrigation to fields which is essential to farm production. The rural nature of the Common Interest Community is such that law enforcement response time will be slower than in an urbanized area. Fire protection is provided by volunteers who must leave their jobs and families 35 to respond to emergencies. Children are exposed to different hazards in rural areas than in urban settings. Farm equipment, oil field equipment, ponds, irrigation ditches, electrical pumps, sprinkler systems, high-speed traffic, sand burs, puncture vines, territorial farm dogs, and livestock present real threats to children. Controlling children's activities is important, not only for their safety but also for the protection of the surrounding agricultural interests. Law enforcement is based on responses to complaints more than on patrols of the County and the distances which must be traveled may delay all emergency responses, including law enforcement, ambulance, and fire. County gravel roads, no matter how often they are bladed, will not provide the same kind of surface expected from a paved road. Snow removal priorities mean that roads from subdivisions to arterials may not be cleared for several days after a major snowstorm. Services in rural areas, in many cases, will not be equivalent to municipal services. Section 35-3.5-102, C.R.S., provides that an agricultural operation shall not be found to be a public or private nuisance if the agricultural operation alleged to be a nuisance employs methods or practices that are commonly or reasonably associated with agricultural production. Section 2: Wildlife. The Common Interest Community is located in a rural setting where wildlife such as raccoons, skunks, coyotes, deer, and mosquitoes abound and can at times be a nuisance. Deer and antelope may eat grass or hay in the field or which has been stored. The Colorado Division of Wildlife will not be responsible for compensation for loss of grass, hay, or other crops due to wildlife. Geese are attracted to bluegrass, and Owners should consider limiting the amount of bluegrass planted. ARTICLE XV. FIRE PROTECTION Section 1: Districts. The Common Interest Community is located within the North Weld County Water District ("the Water District") and the Ault Fire Protection District ("the Fire District"). The Fire District has its own policies, procedures and requirements concerning fire protection, which are in addition to Weld County and/or the Water District. The Water District will permit the Developer to install fire protection infrastructure including, but not limited to, water lines and fire hydrants ("the Fire Facilities"). Upon final approval of the plans and designs for the Fire Facilities by the Water District, the Fire District and Weld County, authorize the construction and installation of the Fire Facilities by the Declarant. Upon approval of the installation of the Fire Facilities by the Water District, the Fire District and Weld County, the Water District will assume responsibility and the Association shall reimburse the Water District for all Costs and Expenses incurred in the maintenance and repair of the Fire Facilities. Section 2: Indemnification of Water District. The Declarant, for itself and each Owner of a Lot hereby expressly agrees to and shall release the Water District from any and all liability or claims of any type that could be made against the Water District including, but not limited to, claims for inadequate water pressure, line size, lack of water, improper maintenance, inadequate volume or velocity of flow,or any other item related to the Fire Facilities. 36 ARTICLE XVI. IRRIGATION DITCH An irrigation ditch owned by the North Poudre Irrigation Company ("the Irrigation Company") is located immediately adjacent to and to the north of the Common Interest Community ("the Irrigation Ditch"). The Owners acknowledge that the Irrigation Company may periodically perform maintenance of the Irrigation Ditch, which may include the spraying of chemicals to control weeds or the burning of the ditch. The Fence will be constructed along the south boundary of Outlot B. The Declarant, for itself and all subsequent Owners of Lots within the Real Estate hereby expressly agrees to and shall release the Irrigation Company from any and all claims which the Developer, the Association, and/or any Lot Owner may have against the Irrigation Company for damage to the Fence including, but not limited to, the burning of the Fence as a result of maintenance activities performed by the Irrigation Company on the Irrigation Ditch, and the adjacent right-of-way. The Declarant recommends that each Owner contact the Irrigation Company to discuss in greater detail the relationship that exists between the Irrigation Company and the Owners. ARTICLE XVII. MORTGAGEE PROTECTION Section 1: Introduction. This Article establishes certain standards and covenants which are for the benefit of the holders, insurers, and guarantors of certain Security Interests. This Article is supplemental to, and not in substitution for, any other provisions of the Declaration, but in the case of conflict,this Article shall control. Section 2: Notice of Actions. The Association shall give prompt written notice to each Mortgagee and Insurer of(and each Lot Owner hereby consents to and authorizes such notice): (a) Any condemnation loss or any casualty loss which affects a material portion of the Common Interest Community or any Lot in which there is a First Security Interest held, insured, or guaranteed by such Mortgagee or Insurer, as applicable. (b) Any delinquency in the payment of Common Expense assessments owed by a Lot Owner whose Lot is subject to a First Security Interest held, insured, or guaranteed by such Mortgagee or Insurer, as applicable,which remains uncured for a period of sixty(60)days. (c) Any lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Association. (d) Any proposed action which would require the consent of a specified percentage of Mortgagees as specified in Section 4 of this Article. (e) Any judgment rendered against the Association. 37 Section 3: Consent and Notice Required. (a) Document Changes. Notwithstanding any requirement permitted by this Declaration or the Act, no amendment of any provision of this Declaration pertaining to the matters hereinafter listed by the Association or Lot Owners shall be effective without notice to all Mortgagees and Insurers, and the vote of at least sixty-seven percent (67%) of the Lot Owners (or any greater Lot Owner vote required in this Declaration or the Act) and until approved by at least fifty-one percent (51%) of the Mortgagees (or any greater Mortgagee approval required by this Declaration). The foregoing approval requirements do not apply to amendments effected by the exercise of any Special Declarant Rights, Additional Reserved Rights, or Development Right set forth in Articles V and VI of this Declaration: (1) Voting rights. (2) Assessments, assessment liens, or priority of assessment liens. (3) Reserves for maintenance, repair, and replacement of Common Elements. (4) Responsibility for maintenance and repairs. (5) Redefinitions of boundaries of Lots, except that when boundaries of only adjoining Lots are involved, then only those Lot Owners and the Mortgagees holding Security Interests in such Lot or Lots must approve such action. (6) Convertibility of Lots into Common Elements or Common Elements into Lots. (7) Expansion or contraction of the Common Interest Community or the addition, annexation, or withdrawal of property to or from the Common Interest Community, except expansion or contraction by exercise of Development Rights pursuant to Article VI of this Declaration. (8) Insurance or fidelity bonds. (9) Leasing of Lots. (10) Imposition of any restrictions on a Lot Owner's right to sell or transfer his Lot. (11) A decision by the Association to establish self-management when professional management had been required previously by any Mortgagee. (12) A decision by the Association not to restore or repair the Common Elements after a hazard damage or partial condemnation. 38 (13) Termination of the Common Interest Community after occurrence of substantial destruction or condemnation of the Common Elements. (14) Any provision that expressly benefits mortgage holders, insurers, or guarantors. (b) Actions. Notwithstanding any lower requirement permitted by this Declaration or the Act, the Association may not take any of the following actions, other than rights reserved to the Declarant as Special Declarant Rights, Additional Reserved Rights, or Development Rights set forth in Articles V and VI of this Declaration, without the notice to all Mortgagees and Insurers as required by Section 2 above and approval of at least fifty-one percent (51%) (or the indicated percentage)of the Mortgagees: (1) Convey or encumber the Common Elements or any portion thereof without approval by eighty percent (80%) of the Mortgagees. (The granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Elements by the Common Interest Community will not be deemed a transfer within the meaning of this clause.) (2) The termination of the Common Interest Community for reasons other than substantial destruction or condemnation of the Common Elements without approval by sixty-seven percent(67%) of the votes of Mortgagees. (3) The granting of any permits, easements, leases, licenses, or concessions through or over the Common Elements (excluding, however, any utility, road, or other easements serving or necessary to serve the Common Interest Community and excluding any leases, licenses,or concessions for no more than one [I] year). (4) The establishment of self-management when professional management had been required previously by a Mortgagee. (5) A decision by the Association not to restore or repair the Common Elements after a hazard damage or partial condemnation. (6) The merger of the Common Interest Community with any other common interest community. (7) The assignment of the future income of the Association, including its right to receive Common Expense assessments. (c) The Association may not change the period for collection of regularly budgeted Common Expense assessments to other than monthly without the consent of all Mortgagees. (d) The failure of a Mortgagee or Insurer to respond within thirty (30) days to any written request of the Association delivered by certified or registered mail, return receipt 39 requested, for approval of an addition or amendment to the Declaration wherever Mortgagee or Insurer approval is required shall constitute an implied approval of the addition or amendment. Section 4: Inspection of Rooks. The Association shall maintain current copies of the Declaration, Bylaws, Rules and Regulations, books and records, and financial statements. The Association shall permit any Mortgagee or Insurer to inspect the books and records of the Association during normal business hours. Section 5: Financial Statements. The Association shall provide any Mortgagee or Insurer who submits a written request a copy of an annual financial statement within ninety (90) days following the end of each fiscal year of the Association. Such financial statement shall be audited by an independent certified public accountant if: (a) The Common Interest Community contains fifty (50) or more Lots, in which case the cost of the audit shall be a Common Expense; or (b) Any Mortgagee or Insurer requests it, in which case the Mortgage or Insurer shall bear the cost of the audit. Section 6: Enforcement. The provisions of this Article are for the benefit of Mortgagees and Insurers and their successors and may be enforced by any of them by any available means at law or in equity. Section 7: Attendance at Meetings. Any representative of a Mortgagee or Insurer may attend and address any meeting which an Owner may attend. Section 8: Appointment of Trustee. In the event of damage, destruction, or condemnation of all or a portion of the Common Elements, any Mortgagee may require that such proceeds be payable to a trustee. Such trustee may be required to be a corporate trustee licensed by the State of Colorado. Proceeds will thereafter be distributed pursuant to the Act or pursuant to a condemnation award. Unless otherwise required, the members of the Executive Board, acting by majority vote through the president,may act as trustee. Section 9: Payment of Delinquent Fees. Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the Common Elements and may pay overdue premiums on hazard insurance policies or secure new hazard insurance on the lapse of such a policy for such Association property, and Mortgagees making such payments shall be owed immediate reimbursement therefor from the Association. ARTICLE XVIII. GENERAL, PROVISIONS Section 1: Enforcement. Enforcement of this Declaration shall be by appropriate proceedings at law or in equity against those persons or entities violating or attempting to violate any covenant, condition, or restriction herein contained. Such judicial proceeding shall be for the purpose of removing a violation, restraining a future violation, for recovery of damages for any violation, or for such other and further relief as may be available. Such judicial proceedings may be 40 prosecuted by an Owner, by the Architectural Control Committee, or by the Association. In the event it becomes necessary to commence an action to enforce or defend this Declaration, the court shall award to the prevailing party in such litigation, in addition to such damages as the Court may deem just and proper, an amount equal to the costs and reasonable attorney's fees incurred by the prevailing party in connection with such litigation. The failure to enforce or to cause the abatement of any violation of this Declaration shall not preclude or prevent the enforcement thereof or of a further or continued violation, whether such violation shall be of the same or of a different provision of this Declaration. For any failure to comply with the provisions of any of the documents, the Association, any Owner, or any class of Owners adversely affected by the failure to comply may seek reimbursement for collection costs and reasonable attorneys' fees and costs incurred as a result of such failure to comply, without the necessity of commencing a legal proceeding. Notwithstanding any other provision of this Declaration, in connection with any claim in which an Owner is alleged to have violated a provision of the documents and in which the court finds that the Owner prevailed because the Owner did not commit the alleged violation: (a) the court shall award the Owner reasonable attorneys' fees and costs incurred in asserting or defending the claim; and (b) the court shall not award costs or attorneys' fees to the Association. In addition, the Association shall not allocate to the Owner's account any of the Association's costs or attorneys' fees incurred in asserting or defending the claim. Section 2: Duration. This Declaration shall run with the land, shall be binding upon all persons owning Lots and any persons hereafter acquiring said Lots, and shall be in effect in perpetuity unless amended or terminated as provided in the Act. Section 3: Amendment. Except as otherwise provided in this Declaration, this Declaration may be altered or amended at any time by the affirmative vote of the then record Owners of sixty- seven percent (67%) or more of the Lots; provided, however, that provisions of this Declaration granting access to each Lot from a public street, road, or highway may not be amended without the consent of all Owners and all Mortgagees, and provisions of this Declaration pertaining to the maintenance of the Common Elements, including the Streets may not be amended without the consent of Weld County. To the extent this Declaration requires first Mortgagees to approve or consent to any amendment to this Declaration,the Association shall send a dated, written notice and a copy of any proposed amendment by certified mail to each first Mortgagee at its most recent address as shown on the recorded deed of trust or recorded assignment thereof. In addition, the Association shall cause the dated notice, together with information on how to obtain a copy of the proposed amendment, to be printed in full at least twice, on separate occasions at least one week apart, in a newspaper of general circulation in Weld County. A first Mortgagee that does not deliver to the Association a negative response within sixty (60) days after the date of the notice shall be deemed to have approved the proposed amendment. Section 4: Captions. The captions contained in the Documents are inserted only as a matter of convenience and for reference, and in no way define, limit, or describe the scope of the Documents or the intent of any provision thereof. 41 Section 5: Gender. The use of the masculine gender refers to the feminine gender, and vice versa, and the use of the singular includes the plural, and vice versa, whenever the context of the Documents so require. Section 6: Waiver. No provision contained in the Documents is abrogated or waived by reason of any failure to enforce the same, irrespective of the number of violations or breaches which may occur. Section 7: Invalidity. The invalidity of any provision of the Documents does not impair or affect in any manner the validity, enforceability, or effect of the remainder, and if a provision is declared invalid by judgment or court order, all of the other provisions of the Documents shall continue in full force and effect. Section 8: Conflict. The Documents are intended to comply with the requirements of the Act. If there is any conflict between the Documents and the provisions of the Act, the provisions of the Act shall control. In the event of any conflict between this Declaration and any other Document,this Declaration shall control. Section 9: Alternative Dispute Resolution. The Board may adopt protocols that make use of mediation or arbitration as alternatives to or preconditions upon the filing of any litigation between an Owner and the Association in situations that do not involve an eminent threat to the peace, health or safety of the Common Interest Community. Such protocols may specify situations in which disputes shall be resolved by binding arbitration under the Colorado Uniform Arbitration Act. Section 10: Sale of a Tot - Disclosure to Purchaser: Except in the case of a foreclosure sale, the seller of a Lot shall mail or deliver to the purchaser on or before the title deadline, copies of all of the following in the most current form available: (a) The closing agreement executed by the Declarant and the first purchaser of the Lot from the Declarant; (b) The Bylaws and Rules and Regulations of the Association; (c) This Declaration; (d) Minutes of the most recent annual Owners meeting and of any Executive Board meetings that occurred within the six(6) months immediately preceding the title deadline; (e) The Association's operating budget; (I) The Association's annual income and expenditures statement; (g) The Association's annual balance sheet; and 42 (h) A disclosure statement in bold face type that is clearly legible and in substantially the following form: THE BUYER HEREBY ACKNOWLEDGES THAT THE BUYER HAS RECEIVED COPIES OF THE DECLARATION, COVENANTS, BYLAWS, AND RULES AND REGULATIONS OF THE HOMEOWNERS' ASSOCIATION OF THE WATERFORD HILL COMMON INTEREST COMMUNITY, IN WHICH THE PROPERTY IS LOCATED, AND THE BUYER UNDERSTANDS THAT THESE DOCUMENTS CONSTITUTE AN AGREEMENT BETWEEN THE ASSOCIATION AND THE BUYER. BY SIGNING THIS STATEMENT, THE BUYER ACKNOWLEDGES THAT THE BUYER HAS READ AND UNDERSTANDS THE ASSOCIATION'S DECLARATION, COVENANTS, BYLAWS, AND RULES AND REGULATIONS. THE BUYER ALSO UNDERSTANDS THAT BY COMPLETING THIS PURCHASE, THE BUYER IS RESPONSIBLE FOR PAYING ASSESSMENTS TO THE ASSOCIATION. IF THE BUYER DOES NOT PAY THESE ASSESSMENTS, THE ASSOCIATION COULD PLACE A LIEN ON THE PROPERTY AND POSSIBLY SELL IT TO COLLECT THE DEBT. THE BUYER ALSO UNDERSTANDS THAT ANY CHANGE TO THE EXTERIOR OF THE PROPERTY MAY BE SUBJECT TO ARCHITECTURAL REVIEW AND APPROVAL. FAILURE TO SECURE SUCH REVIEW AND APPROVAL COULD BE VIOLATION OF THE DECLARATION AND COULD RESULT IN REMEDIAL ACTION BEING TAKEN BY THE ASSOCIATION. It shall be the responsibility of the Seller to obtain from the Purchaser a signed acknowledgment of receipt of the information and disclosure statement described above, whether such acknowledgment is incorporated in the contract of purchase and sale or otherwise, at the time of closing and to deliver such signed acknowledgment to the Association as soon as is practicable thereafter. The Association shall use its best efforts to accommodate a request by an Owner for documents that are within the Association's control and must be provided to the purchaser pursuant to this section. 43 IN WITNESS WHEREOF, the Declarant has caused this Declaration to be executed as of the day and year first above written. WHITE WOLF,LLC, a Colorado limited liability company By: Marvin A. Barstow,Manager STATE OF COLORADO ) )ss: COUNTY OF LARIMER ) The foregoing instrument was acknowledged before me this day of 2006, by Marvin A. Barstow, Manager of WHITE WOLF, LLC, a Colorado limited liability company. Witness my hand and official seal. My Commission Expires: Notary Public 44 EXHIBIT "A" Legal Description of the Real Estate All of Waterford Hill PUD according to the recorded plat thereof, County of Weld, State of Colorado. A-1 EXHIBIT"B" (Exceptions) 1. Taxes and Assessments not certified to the Treasurer's Office. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, or claims of easements, not shown by public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the land would disclose, and which are not shown by the public records. 5. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 6. All taxes and assessments,now or heretofore assessed, due or payable. 7. Right of way for county road and incidental purposes 30 feet wide on either side of section and township lines as established by Order of the Board of County Commissioners for Weld County, recorded October 14, 1889 in Book 86 at Page 273. 8. Reservations by the Union Pacific Railroad Company of (1) oil, coal and other minerals underlying the land, (2) the exclusive right to prospect for, mine and remove oil, coal and other minerals, and (3) the right of ingress and egress and regress to prospect for, mine and remove oil, coal and other minerals, all as contained in Deed recorded on April 9, 1906 in Book 233 at Page 24, and any and all assignments thereof or interests therein. 9. Right of way for Cactus Hill Ditch as evidenced by Statement filed in the Weld County Clerk and Recorder's Office, insofar as the same may affect subject property. 10. Right of way easement for Electric line or system and incidental purposes as granted to Poudre Valley Rural Electric Association, Inc., a Colorado corporation by instrument recorded May 5, 1997 in Book 1604 at Reception No. 2546546, said right of way easement not being specifically defined. 11. Water rights,claims or title to water, whether or not shown by the public records. 12. All matters shown on the map of subject property recorded May 8, 2000 at Reception No. 2766550. B-1 EXHIBIT "C" I 4egal Description of the Development Property Lot B, Recorded Exemption RE-2690 of the South Half of the Southeast Quarter and the Northeast Quarter of the Southeast Quarter, Section 31, Township 8 North, Range 67 West of the 6th P.M., Weld County, Colorado. C-1 Hello