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HomeMy WebLinkAbout2.0 Supplemental Application Materials 08.28.2000JOHN A. THULSON EDWARD MULHALL, JR. SCOTT BALCOMB LAWRENCE R. GREEN TIMOTHY A. THULSON LORI J. M. SATTERFIELD EDWARD B. OLSZEWSKI DAVID SANDOVAL DENDY M. HEISEL HAND DELIVERED BALCOMB & GREEN, P.C. ATTORNEYS AT LAW P. 0. DRAWER 790 818 COLORADO AVENUE GLENWOOD SPRINGS, COLORADO 81602 Telephone: 970.945.6546 Facsimile: 970.945.8902 August 28, 2000 Jeff Laurien Garfield County Building and Planning Department 109 8th Street, Suite 303 Glenwood Springs, CO 81601 Dear Jeff: RECEIVED AUG 2 8 2008 OF COUNSEL: Re: Cerise Ranch Subdivision, Phase 1/Final Plat Submission KENNETH BALCOMB Under cover of this letter I have provided herewith for your review three copies of the documents comprising the Application for Final Plat submitted by Wintergreen Homes, LLC ("Wintergreen") instant to the above referenced subdivision. I have also enclosed a check in the amount of $200.00 for payment of the final plat submission fee. The following documents satisfy the conditions required under the Preliminary Plan approval issued by the Garfield County Board of County Commissioners ("Board") in §5.0 of the Garfield County Subdivision Regulations, to wit: 1. Final Plat for the Cerise Ranch Subdivision, Phase 1 (contained within Sheets 2-6 of the Construction Documents for the Cerise Ranch, Phase 1 submitted herewith). 2. Engineering plans and descriptions of the streets, drainage facilities, water system and other improvements to be constructed within the Cerise Ranch Subdivision, Phase 1 (contained within Sheets 8-W4 of the Construction Documents for the Cerise Ranch, Phase 1, submitted herewith). 3. Subdivision Improvements Agreement for the Cerise Ranch Subdivision, Phase 1 between Wintergreen and the Board. The certified cost estimates for the streets, drainage facilities, water system and other improvements to be constructed within the Cerise Ranch Subdivision, Phase 1 are contained within Exhibit C of this document ("SIA"). BALCOMB & GREEN, P.C. ATTORNEYS AT LAW Jeff Laurien Garfield County Building and Planning Department August 28, 2000 Page 2 4. Declaration of Covenants, Conditions Restrictions and Easements for the Cerise Ranch Subdivision, Phase 1 ("Declaration"). 5. Agreement between Wintergreen and the Cerise Ranch Property Owners Association, Inc. addressing the transfer of the Basalt Water Conservancy allotment contract, all roads and utilities as well as access road utility and easements within the Cerise Ranch Subdivision, the open space easement, the potable water facilities and off site utility easement with the attached Quit Claim Deed. 6. Well permit Nos. 053765-F and 055764-F issued by the Colorado State Engineer. 7. Capacity Development Plan Review Approval for the Cerise Ranch Subdivision for a well, chlorination system and storage tank issued by the Colorado Department of Public Health and Environment. Relevant to the integration within the above identified documents of the conditions of approval of the Preliminary Plan (set forth and underlined below), I would comment as follows: Valid well permits for all proposed wells must be obtained and submitted. Copies of the issued well permits for the Cerise Ranch Subdivision, Phase 1 are included herewith. The four comments from Garfield County Vegetation Management must be addressed. A memorandum addressing the types of noxious weeds present on the property, management and control thereof and re -vegetation procedures and recommendations was prepared by the Land Studio, Inc. in cooperation with Prima Plant Services, Inc. and included within Wintergreen's Preliminary Plan Application. This memorandum has been attached as Exhibit b-2 to the Declaration and is incorporated therein pursuant to the provision set forth at §6.3 (duties of the Homeowners Association in maintaining the Common Area), §9. 1. a. (duty of individual Lot Owners regarding the maintenance of those portions of their lots lying outside the Common Area/Open Space Easement), §9.3 (duty of the Homeowners Association in the maintenance and repair of subdivision roadways) and §17. 1. b. (restrictions regarding excavation within the subdivision property). Comments 3, 4, 6, 7, 9, 10, 11, 14, 15, 16 From Wright Water Engineers Must Be Addressed. Comment 4 being revised as required for State approval of the water treatment and distribution system be obtained by Applicant prior to final plot approval. BALCOMB & GREEN, P.C. ATTORNEYS AT LAW Jeff Lauri en Garfield County Building and Planning Department August 28, 2000 Page 3 Our response, in the order above enumerated, is as follows: 3 — A detailed geotechnical study of the proposed water storage tank location is in the process of being completed and will be submitted prior to the Board's hearing on the final plat. 4 — The approval by the Colorado Department of Health and Environment of the water treatment and distribution system is provided herewith: 6 — Set forth in Sheet Nos. 8 and 10, the intersection of drainage ditches and irrigation ditches at Lot 1 and Lot 65 have been further defined to insure the Lot 65 building envelope is not impacted. 9 — Geotechnical study of the turn around for Road C in the water storage access road is in the process of being completed and will be submitted prior to the Board's hearing on the Final Plat. 10 — Lot 27 is not contained within the Cerise Ranch Subdivision, Phase 1, but rather, is located within Phase 2, a final plat of which will submitted at a later date. 10 — Plat Note 11 (now Plat Note 10) has been revised in accordance of recommendation of Wright Water Engineers, Inc. to require site specific geotechnical investigations at each lot to determine proper foundation design litigation and potential geologic hazards. 14 — Lots 35-44 are not included within the Cerise Ranch Subdivision, Phase 1, but rather, are contained within Phase 2, a final plat of which will be submitted at a later date. 15 — §4.14 has been revised to include only complete sentences. 16 — §4.14 has been amended to obligate the Cerise Ranch Property Owners Association to pay for all contract costs under the Basalt Water Conservancy District Water Allotment Contract. The Cost for a Permanent Augmentation Plan Must be Paid for the Applicant or Included in the Subdivision Improvements Agreement. The estimated cost ($1,000.00) to be reimbursed to the Basalt Water Conservancy District for the cost of having Wintergreen's Allotment Contract incorporated within its permanent augmentation plan has been included within the certified cost incorporated within the Subdivision Improvements Agreement. BALCOMB & GREEN, P.C. ATTORNEYS Al''LAW Jeff Laurien Garfield County Building and Planning Department August 28, 2000 Page 4 Comments 3, 5, 9, 11 as included in the Colorado Division of Wildlife letter dated 03/22/00 with the revision to comment 5 as outlined in the Staff Report, and the "Response to Division of Wildlife letter dated 01/18/00", Item 9 in §14 of the Applicant's submittal must be included in the covenants. Our response to the comments issued by the Colorado Division of Wildlife in the order above enumerated is as follows: 3 — The fencing restrictions as recommended by the Colorado Division of Wildlife have been incorporated within the Declaration at §17. 1.w. and are enforceable against the individual Lot Owners and Homeowners Association by operation of the Declaration and Plat Note No. 14 which incorporates the same by reference. 5 — The restrictions recommended by the Colorado Division of Wildlife regarding bears/trash removal and the feeding of wild animals have been incorporated within the Declaration at §§18. 1. d., 17. 1. DD. (VIII) and 18. 1. e. and Plat Note 15 which incorporates the same by reference. 11 — The wildlife education brochure recommended by the Colorado Division of Wildlife is incorporated within the Declaration as Exhibit D; pursuant to the provisions §18. 1. k. of the Declaration and Plat Note 17, Wintergreen is obligated to provide a copy of the wildlife brochure to each Lot Owner at closing and the Homeowners Association is required to maintain a copy of this brochure within its regularly kept records for inspection by the Lot Owners. In accordance with the representations of Wintergreen contained within item 9 of its response to the Division Of Wildlife letter dated 01/18/00, Plat Note 18 requires each Lot Owner at the closing of sale of his or her Lot to pay a fee of $100.00 to the Homeowners Association for the maintenance of a Wildlife Habitat Improvement Fund. The authority for the management of this fund is conferred to the Homeowners Association under the Declaration at §5. 1. d. The Final Plat must include the proposed access easement to Lot 52 with dimensions as submitted for the Preliminary Plan. Set forth within Sheet No. 4 (Sheet 3 of 5 of the Plat) of the construction drawings for the Cerise Ranch Subdivision, Phase 1, the proposed Access Easement to Lot 52 has been included with these dimensions: The following required plat notes must be included within the Final Plat. All plat notes required under the Preliminary Plan approval have been incorporated within the Final Plat. BALCOMB & GREEN, P.C. AT'T'ORNEYS Al LAW Jeff Laurien Garfield County Building and Planning Department August 28, 2000 Page 5 Applicant must comply with all conditions of the access permits issued by the Colorado Department of Transportation, Permit Nos. 3000094 and 3000095. The specifications contained within the construction drawings — Highway 82 Improvements Grading and Drainage, Highway 82 Improvements Site Plan and Highway 82 Improvements Sign and Stripping Plan (Sheets Nos. 21, 22 and 23) — incorporate all the conditions contained within the above and numerated Access Permits. Applicant must comply with all comments received from the Sheriff's Department in the letter dated March 9, 2000. Pursuant to Plat Note No. 24, all street addresses located on the individual Lot Owner residences shall be clearly marked and visible from the respective access roads. As to the constructed under the construction documents, all roads within the Cerise Ranch Subdivision - Phase 1 are of sufficient width to accommodate fire and EMS equipment and all cul-de-sacs will have ending radiuses large enough to accommodate fire or EMS equipments' turn around ratio. Applicant must comply with all comments regarding wildlife as detailed in the Planning Department Staff Report. (See above response.) Applicant must comply with all representations of the Army Corps of Engineers in their letter 04/05/00, and all conditions of the issues Nationwide General Permit No. 3. The above representations and permit conditions have been incorporated within the construction documents and compliance with the same is required as a matter of Federal Law. Individual Lot Owners will be required to comply with § 5.03 2.1 of the Garfield County Subdivision Regulations addressing accessory dwelling units. Plat Note 8 requires individual Lot Owner compliance with this Section of the Garfield County Subdivision Regulations. Individual Lot Owners will be required to comply with comment No. 5 from Wright Water Engineers which requires all ISTS systems to be designed by a registered engineer. Plat Note 4 requires that each lot be served with an engineered sewage treatment system that meets or exceeds NSF Standard 40 and which drains to an underground leach field. BALCOMB & GREEN, P.C. A'T'TORNEYS A'1' LAIN Jeff Laurien Garfield County Building and Planning Department August 28, 2000 Page 6 As stated in the letter dated 03/21/00 from the Division of Water Resources, Individual sewage treatment systems must be of a non -evaporative type unless otherwise requested and supported by consumptive use estimates. (See response to comment No. 5 of Wright Water Engineers above.) Impact Fees for Fire Protection Must be Paid. Under paragraph 8 of the Subdivision Improvements Agreement, Wintergreen is obligated to pay fire protection impact fees for the thirty (30) dwelling units to be created within the Cerise Ranch Subdivision, Phase 1, which total includes 27 single family lots and 3 accessory dwelling units. It is our understanding that the present impact fee amount for the Carbondale Rural and Fire Protection District is $417.00 per unit; however, Wintergreen acknowledges that should this impact fee be modified prior to the Board's hearing on its Application for Final Plat, that Wintergreen will be responsible for paying the impact fee as modified. School Fees, in an amount to be determined for the number of lots depicted on any Final Plat submittal, as per the formula in Section 9:81 of the Garfield County Subdivision Regulations, must be paid by Applicant. Under paragraph 7 of the Subdivision Improvements Agreement, Wintergreen is responsible for paying School Impact Fees for the 30 total dwelling units to be created within the Cerise Ranch Subdivision, Phase 1, which total includes 27 single family lots and 3 accessory dwelling units. At the present time, an appraisal of the property is being performed. Upon receipt of this appraisal, Wintergreen will compute the Impact Fee owed and will confirm this computation with County Planning Staff prior to the Board's hearing on its Application for Final Plat. As per §4:34 of the Subdivision Regulations, with regard to phasing, all lots must be final platted within five (5) years. Under its Preliminary Plan Application and Approval, Wintergreen is allowed to plat the Cerise Ranch Subdivision in two phases, the last of which will be platted within five (5) years of the date of the preliminary plan approval. Any necessary mitigation measures as determined for any construction in areas above 40% slope must be complied with. The only areas exceeding 40% in slope and in which construction will occur address the Lot 52 access roadway, the water storage tank roadway and the water storage tank site. With regard to the water tank site and water tank roadway, Wintergreen will comply with BALCOMB & GREEN, P.C. ATTORNEYS AT LAW Jeff Laurien Garfield County Building and Planning Department August 28, 2000 Page 7 all recommendations contained within the geotechnical report presently being produced. Relevant to Lot 52, Plat Note 12 requires that prior to the initiation of any grading or construction of the proposed driveway accessing said lot that the future owner submit detailed engineering drawings to the Garfield County Department of Building and Planning for the Department's review and approval of the same. As per the Division of Water Resources Comments, any exempt wells which exist within the proposed development must either be included in the District's temporary substitute supply plan or an augmentation plan, or will be required to be plugged and abandoned pursuant to the conditions of the new well permits for development. Wintergreen will comply with this condition of approval and will provide evidence of the same to the County Planning Staff in the form of either a well abandonment affidavit or augmentation decree. As per the comments received from the Division of Water Resources, if any ground water is to be disturbed for the proposed ponds, well permits will be required. The present application for final plat contains no provision for the construction of ponds within the subdivision. If ponds are to be constructed by Wintergreen within the subdivision, Wintergreen will comply with this condition of approval. The proposed 300,000 Water Tank must be painted and screened through the use of landscaping and/or berming to minimize its visual impact. This requirement has been included within the Subdivision Improvements Agreement at paragraph 2. E. 1. Dust on the subject property must be mitigated through the use of water during construction and revegetation once construction is complete. This restriction has been incorporated within the Declaration at § 17.1.B. As a final note, I would add that Wintergreen intends to take advantage of the vested property right provisions contained within §4:00 of the Garfield County Subdivision Regulations. Accordingly, when this Final Plat Application is deemed complete and scheduled before the Board, we will need to ensure that said scheduling allows us the latitude to satisfy the fifteen (15) day notice provision contained within §14:90. BALCOMB & GREEN, P.C. ATTORNEYS AT LAW Jeff Laurien Garfield County Building and Planning Department August 28, 2000 Page 8 As soon as you have had the opportunity to at least preliminarily review the Final Plat documents, I believe that a short conference between County Planning Staff and the appropriate members of the Cerise Ranch Subdivision Development Team would facilitate the resolution of any issues that remain outstanding with regard thereto. Your cooperation in this regard has been greatly appreciated. Very truly yours, BALCOMB & GREEN, P C. By TT/nmk Enclosures C:\WP-DOCS\TIM\Cerise Ranch\Laurien LTR 8.23.00.wpd imot '4 A. Thulson Upon recordation return to: Wiintergreen Homes, LLC clo Timothy A. Thu!son P.O. Box 790 Glenwood Springs, CO 81602 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR THE CERISE RANCH SUBDIVISION, PHASE 1 Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 TABLE OF CONTENTS RECITALS 1 ARTICLE I. Declaration and Submission 1 ARTICLE II. Definitions 1 Section 2.1 Definitions 1 ARTICLE III. Name, Division into Lots 5 Section 3.1 Name 5 Section 3.2 Association 5 Section 3.3 Number of Lots 5 Section 3.4 Identification of Lots 6 Section 3.5 Description of Lots 6 ARTICLE IV. Membership and Voting Rights; Association Operations 7 Section 4.1 The Association 7 Section 4.2 Transfer of Membership 7 Section 4.3 Membership 7 Section 4.4 Declarant Control 7 Section 4.5 Compliance with Association Documents 8 Section 4.6 Books and Records 8 Section 4.7 Manager 8 Section 4.8 Implied Rights and Obligations 8 Section 4.9 Association Meetings 8 Section 4.10 Association Standard of Care Section 4.11 Security Section 4.12 Power to Provide Services to Subassociations Section 4.13 Power to Provide Special Services for Members Section 4.14 Water A. B. C. Hazardous Cross -Connections Service to Nonmembers Irrigation 9 9 10 10 10 10 . 11 12 12 12 Section 4.15 Wastewater Treatment Section 4.16 Equestrian Facilities/Services Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 ARTICLE V. Powers of the Executive Board of the Association 12 Section 5.1 Association Rules 12 Section 5.2 Implied Rights 13 ARTICLE VI. Property Rights 13 Section 6.1 Common Area 13 Section 6.2 Expansion 14 Section 6.3 Maintenance 14 Section 6.4 No Dedication to the Public 14 ARTICLE VII. Mechanic's Liens 15 Section 7.1 No Liability 15 Section 7.2 Indemnification 15 Section 7.3 Association Action 15 ARTICLE VIII. Property Rights of Owners And Reservations by Declarant 15 Section 8.1 Owner's Easement of Enjoyment 15 Section 8.2 Recorded Easements 16 Section 8.3 Open Space Easement 16 Section 8.4 Declarant's Rights Incident to Construction 16 Section 8.5 Utility Easements 16 Section 8.6 Support Easement 17 Section 8.7 Road Easement 17 Section 8.8 Emergency Access Easement 17 Section 8.9 Easements for Lake and Pond Maintenance and Flood Water 17 Section 8.10 Easements for Encroachments 18 Section 8.11 General Maintenance Easement 18 Section 8.12 Blanket Easement 19 Section 8.13 Declarant's Right to Excess Capacity 19 Section 8.14 Association as Attorney -in -Fact 19 Section 8.15 Delegation of Use 19 Section 8.16 Declarant's Right of Assignment 20 Section 8.17 Declarant's Right to Conduct Business 20 ARTICLE IX. Maintenance and Landscaping 20 Section 9.1 Maintenance and Landscaping of Lots. 20 Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 ii Section 9.2 Common Area 21 Section 9.3 Roads 21 Section 9.4 ISTS Management Plan. 22 Section 9.5 Maintenance of Drainage Structures 23 Section 9.6 Maintenance Contract 23 Section 9.7 Owner's Failure to Maintain or Repair 24 ARTICLE X. Insurance and Fidelity Bonds 24 Section 10.1 General Insurance Provisions 24 Section 10.2 Cancellation 25 Section 10.3 Policy Provisions 25 Section 10.4 Insurance Proceeds 25 Section 10.5 Association Policies 25 Section 10.6 Insurer Obligation 26 Section 10.7 Repair and Replacement. 26 Section 10.8 Common Expenses 26 Section 10.9 Fidelity Insurance 27 Section 10.10 Worker's Compensation Insurance 27 Section 10.11 Other Insurance 27 Section 10.12 Insurance Obtained by Owners 27 ARTICLE XL Assessments 28 Section 11.1 Obligation 28 Section 11.2 Purpose of Assessments 28 Section 11.3 Budget 28 Section 11.4 Annual Assessments 28 Section 11.5 Apportionment of Annual Assessments 29 Section 11.6 Special Assessments 29 Section 11.7 Default Assessments 30 Section 11.8 Effect of Nonpayment; Assessment Lien 30 Section 11.9 Personal Obligation 31 Section 11.10 Successor's Liability for Assessments 31 Section 11.11 Payment by Mortgagee 31 Section 11.12 Statement of Status of Assessment Payment 31 Section 11.13 Capitalization of the Association 32 Section 11.14 Real Estate Transfer Assessment 32 ARTICLE XII. Association as Attorney -In -Fact 32 Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 iii ARTICLE XIII. Damage or Destruction 33 Section 13.1 The Role of the Executive Board 33 Section 13.2 Estimate of Damages or Destruction 33 Section 13.3 Repair and Reconstruction 33 Section 13.4 Funds for Repair and Reconstruction 33 Section 13.5 Disbursement of Funds for Repair and Reconstruction 34 Section 13.6 Decision Not to Rebuild Common Area 34 ARTICLE XIV. Condemnation 34 Section 14.1 Rights of Owners 34 Section 14.2 Partial Condemnation; Distribution of Award; Reconstruction 34 Section 14.3 Complete Condemnation 35 ARTICLE XV. Expansion, Subdivision and Withdrawal 35 Section 15.1 Reservation of Expansion and Withdrawal Rights. 35 Section 15.2 Supplemental Declarations and Supplemental Plats 36 Section 15.3 Expansion of Definitions 36 Section 15.4 Effect of Expansion 36 Section 15.5 Termination of Expansion and Development Rights 37 ARTICLE XVI. General Development Guidelines and Review Board 37 Section 16.1 Design Review Board and Guidelines 37 Section 16.2 Purpose and General Authority 37 Section 16.3 ISTS Systems 37 Section 16.4 Board Discretion 38 Section 16.5 General Development Guidelines 38 Section 16.6 Design Review Board Membership 39 Section 16.7 Organization and Operation of Design Review Board. 39 Section 16.8 Expenses 40 Section 16.9 Other Requirements 40 Section 16.10 Limitation of Liability 40 Section 16.11 Enforcement. 41 Section 16.12 Binding Effect 42 ARTICLE XVII. Property Use Restrictions 42 Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 iv Section 17.1 General Restriction 42 A. Use of Lots 42 B. Excavation 42 C. Water 43 D. ISTS Design and Performance Standards 43 E. Wells/Drilling 44 F. Antennae 44 G. Signs 44 H. Animals and Pets 45 I. Containment 45 J. Drainage 45 K. Construction Regulations of the General Development Guidelines 45 L. Blasting 45 M. Temporary Structures 45 N. No Conversion 45 O. No Outside Clotheslines 46 P. Motorized Vehicles 46 Q. Parking and Auto Repair 46 R. Abandoned, Inoperable, or Oversized Vehicles 46 S. Outside Burning 46 T. Noise 47 U. Lighting 47 V. Obstructions 47 W. Fence Restriction 47 X. Camping and Picnicking 47 Y. House Numbers 47 Z. Nuisance 48 AA. Hazardous Material 47 BB. Wetlands 47 CC. Tanks 48 DD. General Practices Prohibited 48 Section 17.2 Use of Property During Construction 49 Section 17.3 Partition or Combination of Lots 49 Section 17.4 Leasing 49 Section 17.5 Businesses 50 Section 17.6 Compliance with Laws 50 Section 17.7 Enforcement 50 Section 17.8 Use of the Words "Cerise Ranch Subdivision" or Logo 51 Section 17.9 Agreements with Adjacent Property Owners 51 Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 v ARTICLE XVIII. Additional Restrictions for Wildlife Protection 51 Section 18.1 Wildlife Restrictions 51 ARTICLE XIX. Mortgagee's Rights 54 Section 19.1 Approval Requirements 54 Section 19.2 Title Taken by Mortgagee 54 Section 19.3 Distribution of Insurance or Condemnation Proceeds 55 Section 19.4 Right to Pay Taxes and Charges 55 ARTICLE XX. Duration of Covenants and Amendment 55 Section 20.1 Term. 55 Section 20.2 Amendment 55 Section 20.3 Revocation 55 ARTICLE XXI. Special District 55 ARTICLE XXII. General Provisions 56 Section 22.1 Declarant Powers. 56 Section 22.2 Enforcement 56 Section 22.3 Severability 57 Section 22.4 Conflicts Between Documents 57 Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 vi DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR THE CERISE RANCH SUBDIVISION THIS DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR THE CERISE RANCH SUBDIVISION (the "Declaration") is made as of , 2000, by Wintergreen Homes, L.L.C., a Colorado limited liability company ("Declarant"). RECITALS A. Declarant is the owner of that certain real property (the "Property") located in the county of Garfield, Colorado, more particularly defined and described on the Final Plat (the "Plat") heretofore recorded in the records of the Office of the Clerk and Recorder for Garfield County Colorado on , as Reception No. , which Plat is incorporated herein by this reference. B.Declarant desires to create a Planned Community pursuant to the Colorado Common Interest Ownership Act as set forth in Colorado Revised Statutes 38-33.3-101 et sec . (the "Act") on the Property, the name of which is "The Cerise Ranch Subdivision." ARTICLE I DECLARATION AND SUBMISSION Declarant hereby declares that the Property, together with all easements, rights -of -ways and appurtenances thereto, and any buildings, fixtures, and improvements thereon shall be held, sold and conveyed subject to the provisions of this Declaration which are for the purpose of protecting the value and desirability of the Property, and which shall run with the land and be binding on all parties and their heirs, successors, and assigns of all parties having any right, title or interest in all or any part of the Property. Additionally, Declarant hereby submits the property to the provisions of the Act. ARTICLE II DEFINITIONS Section 2.1 Definitions. The following words when used in this Declaration or any Supplemental Declaration, unless inconsistent with the context of this Declaration, shall have the following meanings: Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 1 A. "Abandoned and Inoperable Vehicle" has the meaning set forth in Section 17.1R. B. "Act" means the Colorado Common Interest Ownership Act, C.R.S. § 38- 33.3-101 et seq. C. "Articles" mean the Articles of Incorporation for The Cerise Ranch Property Owners Association, Inc., on file with the Colorado Secretary of State, and any amendments which may be made to those Articles from time to time. D. "Annual Assessment" means the Assessment levied annually. E. "Assessments" means the Annual, Special, and Default Assessments levied pursuant to Article XI below. Assessments are further defined as a Common Expense Liability as defined under the Act. F. "Association" means The Cerise Ranch Property Owners Association, Inc., a Colorado nonprofit corporation, and its successors and assigns. G. "Association Documents" means this Declaration, the Articles of Incorporation, and the Bylaws of the Association, and any procedures, rules, regulations, or policies adopted under such documents by the Association. H. "Association -Insured Property" has the meaning set forth in Section 13.1. I. "Association Rules" means the rules and regulations adopted by the Association as provided in Section 5.1. J. "Bylaws" means the Bylaws adopted by the Association, as amended from time to time. K. "Common Elements" means those areas depicted and identified on the Plat as "Common Area/Open Space Easement" and the improvements thereon, in which the Association owns or has an interest for the common use and enjoyment of all of the Owners on a nonexclusive basis including, but not limited to, the potable central water system. Such interest may include, without limitation, estates in fee, for terms of years, or easements. "Common Area" shall include all areas identified within the Plat as Open Space Easement and is further defined as a Common Element as defined under the Act. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 2 L. "Common Expenses" means (i) all expenses expressly declared to be common expenses by this Declaration or the Bylaws of the Association; (ii) all other expenses of administering, servicing, conserving, managing, maintaining, repairing, or replacing the Common Area and Common Elements; (iii) insurance premiums for the insurance carried under Article X; and (iv) all expenses lawfully determined to be common expenses by the Executive Board of the Association. M. "Declarant"means Wintergreen Homes, LLC., a Colorado limited liability company, its successors and assigns. N. "Declaration" means and refers to this Declaration of Covenants, Conditions, Restrictions and Easements for The Cerise Ranch. 0. "Default Assessment" means the Assessment levied by the Association pursuant to Article XI, Section 11.7 below. P. "General Development Guidelines" means the guidelines and rules published and amended and supplemented from time to time by the Design Review Board. Q. "Design Review Board" means and refers to the Design Review Board defined and created pursuant to Article XVI below. R. "Executive Board" means the governing body of the Association elected to perform the obligations of the Association relative to the operation, maintenance, and management of the Property and all improvements on the Property. S. "Expansion and Development Rights" has the meaning set forth in Article XV. T. "First Mortgage" means any Mortgage which is not subordinate to any lien or encumbrance except liens for taxes, liens for Assessments or other liens which are given priority by statute. U. "First Mortgagee" means any person named as a mortgagee or beneficiary in any First Mortgage, or any successor to the interest of any such person under such First Mortgage. V. "ISTS"means individual sewage treatment system meeting the ISTS Design and Performance Standards set forth at Section 17.1.D. W. "Lot" means a plot of land subject to this Declaration and designated as a "Lot" on any subdivision plat of the Property recorded by Declarant in the office of the Clerk and Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 3 Recorder of Garfield County, Colorado, together with all appurtenances and improvements, now or in the future, on the Lot. "Lot" also has the meaning ascribed to it in Section 15.3 hereof. Lot is further defined as a Unit as defined under the Act. X. "Manager" shall mean a person or entity engaged by the Association to perform certain duties, powers, or functions of the Association, as the Executive Board may authorize from time to time. Y. "Member" shall mean every person or entity who holds membership in the Association. Z. "Mortgage" shall mean any mortgage, deed of trust, or other document pledging any Lot or interest therein as security for payment of a debt or obligation. AA. "Mortgagee" means any person named as a mortgagee or beneficiary in any Mortgage, or any successor to the interest of any such person under such Mortgage. BB. "Oversized" has the meanings set forth in Section 17.1.R. CC. "Owner" means the owner of record, whether one or more persons or entities, of fee simple title to any Lot, and "Owner" also includes the purchaser under a contract for deed covering a Lot, but excludes those having such interest in a Lot merely as security for the performance of an obligation, including a Mortgagee, unless and until such person has acquired fee simple title to the Lot pursuant to foreclosure or other proceedings. DD. "Person" means a natural person, a corporation, a partnership, a trustee or any other legal entity. EE. "Plat" means the subdivision plat depicting the Property subject to this Declaration and recorded in the records of the Clerk and Recorder of Garfield County, Colorado on , 2000 at Reception No. and all supplements and amendments thereto. FF. "Property" means and refers to that certain real property described on the Plat. GG. "Repair and reconstruction" has the meaning set forth in Section 13.2. HH. "Roads" means all roads within the Property as shown on the Plat. II. "The Cerise Ranch Subdivision" shall mean the planned community created by this Declaration, consisting of the Property, the Lots, and any other improvements constructed on the Property and as shown on the Plat. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 4 JJ. "Sharing Ratio" means the allocation of Assessments to which an Owner's Lot is subject. The formula for sharing ratios is an equal allocation among all of the Lots. KK. "Special Assessment" means an assessment levied pursuant to Section 11.6 below on an irregular basis. LL. "Successor Declarant" means any party or entity to whom Declarant assigns any or all of its rights, obligations, or interests as Declarant, as evidenced by an assignment or deed of record executed by both Declarant and the assignee or transferee and recorded in the office of the Clerk and Recorder of Garfield County, Colorado, designating such party as a Successor Declarant. Upon such recording, Declarant's rights and obligations under this Declaration shall cease and terminate to the extent provided in such document. MM. "Supplemental Declaration" means an instrument which subjects any additional property to this Declaration, as more fully provided in Article XV below. NN. "Supplemental Plat" means a subdivision plat which depicts additional property made part of this Declaration or the resubdivision of any Lot or the creation of any condominiums, duplexes, town homes or other multi -family units on any Lot, and may include one or more "maps" as defined in the Act. Each capitalized term not otherwise defined in this Declaration or in the Plat shall have the same meanings specified or used in the Act. ARTICLE III NAME, DIVISION INTO LOTS Section 3.1 Name. The name of the project is The Cerise Ranch Subdivision. The project is a Planned Community pursuant to the Act. Section 3.2 Association. The name of the association is The Cerise Ranch Property Owners Association, Inc. Declarant has caused to be incorporated under the laws of the State of Colorado the Association as a non-profit corporation with the purpose of exercising the functions as herein set forth. Section 3.3 Number of Lots. The maximum number of Lots to be developed on the Property as the same may be expanded by Declarant pursuant to the provisions of Article XV herein; is sixty-eight (68). Declarant reserves the right for itself and any Successor Declarant to subdivide any Lots or create condominiums, duplexes, town homes and other multi -family units on such Lots. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 5 Section 3.4 Identification of Lots. The identification number of each initial Lot is shown on the Plat. Section 3.5 Description of Lots. A. Each Lot shall be inseparable and may be developed exclusively for residential purposes in accordance with the restrictions applicable to a particular Lot contained in this Declaration and the Plat. No Lot shall be further subdivided, except that Declarant, its successors and assigns (which assigns may be more than one, including, without limitation, developers of certain portions of the Property) may further subdivide Lots into condominiums, duplexes, town homes and other multi -family units. Once subdivided, each Lot shall be deemed to be the number of Lots into which it is subdivided. Once a condominium, duplex, town home or multi -family dwelling unit is created pursuant to filing of appropriate final plat(s), then each such separate residence shall constitute a Lot. B. Title to a Lot may be held individually or in any form of concurrent ownership recognized in Colorado. In case of any such concurrent ownership, each co-owner shall be jointly and severally liable for performance and observance of all the duties and responsibilities of an Owner with respect to the Lot in which he owns an interest. For all purposes herein, there shall be deemed to be only one Owner for each Lot. The parties, if more than one, having the ownership of a Lot shall agree between themselves how to share the rights and obligations of such ownership, but all such parties shall be jointly and severally liable for performance and observance of all of the duties and obligations of an Owner hereunder with respect to the Lot in which they own an interest. C. Any contract of sale, deed, lease, Mortgage, will or other instrument affecting a Lot may describe it as Lot _, Cerise Ranch Subdivision, according to the Plat thereof recorded in the records of the Clerk and Recorder of Garfield County, Colorado on , 2000 at Reception No. D. Each Lot shall be considered a separate parcel of real property and shall be separately assessed and taxed. Accordingly, the Common Area shall not be assessed separately but shall be assessed with the Lot as provided pursuant to Colorado Revised Statutes Subsections 39-1- 103(10) and 38-33.3-105(2). E. No Owner of a Lot shall be entitled to bring any action for partition or division of the Common Area. F. Subject to Section 17.5 and as provided below, each Lot shall be used and occupied solely for residential use; provided that such use and occupancy shall be only as permitted by and subject to the appropriate and applicable governmental zoning and use ordinances, rules and Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 6 regulations from time to time in effect. Notwithstanding the foregoing, Declarant, for itself and its successors, assigns, and/or designees (which designees may be more than one, including, without limitation, developers of certain portions of the Property), hereby retains a right to maintain on any Lot or Lots sales offices, management offices or model residences at any time or from time to time so long as Declarant, or its successors or assigns, continues to own an interest in a Lot. The use by Declarant, or its successors, assigns or designees, of any Lot as a model residence, office or other use shall not affect the Lot's designation on the Plat as a separate Lot. ARTICLE IV MEMBERSHIP AND VOTING RIGHTS; ASSOCIATION OPERATIONS Section 4.1 The Association. Every Owner of a Lot shall be a Member of the Association. Membership shall be appurtenant to and may not be separated from ownership of any Lot. Section 4.2 Transfer of Membership. An Owner shall not transfer, pledge, encumber or alienate his membership in the Association in any way, except upon the sale or encumbrance of his Lot and then only to the purchaser or Mortgagee of his Lot. Section 4.3 Membership. The Association shall have one (1) class of membership consisting of all Owners, including the Declarant so long as the Declarant continues to own an interest in a Lot. Except as otherwise provided for in this Declaration, each Member shall be entitled to vote in Association matters pursuant to this Declaration on the basis of one vote for each Lot owned. When more than one person holds an interest in any Lot, all such persons shall be Members. The vote for such Lot shall be exercised by one person or alternative persons (who may be a tenant of the Owners) appointed by proxy in accordance with the Bylaws. In the absence of a proxy, the vote allocated to the Lot shall be suspended in the event more than one person or entity seeks to exercise the right to vote on any one matter. Any Owner of a Lot which is leased may assign his voting right to the tenant, provided that a copy of a written proxy appointing the tenant is furnished to the Secretary of the Association prior to any meeting in which the tenant exercises the voting right. In no event shall more than one vote be cast with respect to any one Lot. Section 4.4 Declarant Control. Notwithstanding anything to the contrary provided for herein or in the Bylaws, Declarant shall be entitled to appoint and remove the members of the Association's Executive Board and officers of the Association to the fullest extent currently permitted under the Act. The specific restrictions and procedures governing the exercise of Declarant's right to so appoint and remove Directors and officers shall be set out in the Bylaws of the Association. Declarant may voluntarily relinquish such power evidenced by a notice executed by Declarant and recorded in the Office of the Clerk and Recorder for Garfield County, Colorado, but, in such event, Declarant may at its option require that specified actions of the Association or the Executive Board as described in the recorded notice, during the period Declarant would otherwise Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 7 be entitled to appoint and remove Directors and officers, be approved by Declarant before they become effective. Section 4.5 Compliance with Association Documents. Each Owner shall abide by and benefit from each provision, covenant, condition, restriction and easement contained in the Association Documents. The obligations, burdens, and benefits of membership in the Association concern the land and shall be covenants running with each Owner's Lot for the benefit of all other Lots and for the benefit of Declarant's adjacent properties. Section 4.6 Books and Records. The Association shall make available for inspection, upon request, during normal business hours or under other reasonable circumstances, to Owners and to Mortgagees, current copies of the Association Documents and the books, records, and financial statements of the Association prepared pursuant to the Bylaws. The Association may charge a reasonable fee for copying such materials. Section 4.7 Manager. The Association may employ or contract for the services of a Manager to whom the Executive Board may delegate certain powers, functions, or duties of the Association, as provided in the Bylaws of the Association. The Manager shall not have the authority to make expenditures except upon prior approval and direction by the Executive Board. The Executive Board shall not be liable for any omission or improper exercise by a Manager of any duty, power, or function except to the intent such liability is accepted pursuant to written instrument executed by or on behalf of the Executive Board. Section 4.8 Implied Rights and Obligations. The Association may exercise any right or privilege expressly granted to the Association in the Association Documents, all powers granted to an association pursuant to C.R.S. § 38-33.3-302(1) (except as expressly otherwise provided in this Declaration), and every other right or privilege reasonably implied from the existence of any right or privilege given to the Association under the Association Documents or reasonably necessary to effect any such right or privilege. The Association shall perform all of the duties and obligations expressly imposed upon it by the Association Documents, and every other duty or obligation implied by the express provisions of the Association Documents or necessary to reasonably satisfy any such duty or obligation. Section 4.9 Association Meetings. Meetings ofthe Association shall be held at least once each year. Special meetings of the Association may be called by the President, by a majority of the Executive Board or by Owners having ten percent (10%) of the votes in the Association. Not less than ten (10) nor more than fifty (50) days in advance of any meeting, the Secretary of other officer specified in the Bylaws of the Association shall cause notice to be hand delivered or sent prepaid by United States mail to the mailing address of each Owner or to any other mailing address designated in writing by the Owner. The notice of any meeting must state the time and place of the meeting and the items on the agenda, including the general nature of any proposed amendment to this Declaration Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 or the Bylaws, any budget changes and any proposal to remove an officer or member of the Executive Board. Section 4.10 Association Standard of Care. The duty of care which the Association owes to the Owners is that of a landowner to a licensee, notwithstanding the interest which the Owners hold in the Common Area through their membership in the Association. Section 4.11 Security. The Association may, but shall not be obligated to, maintain or support certain activities within the Property designed to make the Property safer than it otherwise might be. NEITHER THE ASSOCIATION, DECLARANT, NOR ANY SUCCESSOR DECLARANT SHALL IN ANY WAY BE CONSIDERED INSURERS OR GUARANTORS OF SECURITY WITHIN THE PROPERTY. NEITHER THE ASSOCIATION, THE DECLARANT, NOR ANY SUCCESSOR DECLARANT SHALL BE HELD LIABLE FOR ANY LOSS OR DAMAGE FOR FAILURE TO PROVIDE ADEQUATE SECURITY OR FOR THE INEFFECTIVENESS OF ANY SECURITY MEASURE UNDERTAKEN. ALL OWNERS AND OCCUPANTS OF ANY LOT, AND ALL TENANTS, GUESTS, AND INVITEES OF ANY OWNER, ACKNOWLEDGE THAT THE ASSOCIATION, AND ITS EXECUTIVE BOARD, DECLARANT AND ANY SUCCESSOR DECLARANT, DO NOT REPRESENT OR WARRANT THAT ANY FIRE PROTECTION SYSTEM, BURGLAR ALARM SYSTEM, OR OTHER SECURITY SYSTEM DESIGNATED BY OR INSTALLED ACCORDING TO THE GENERAL DEVELOPMENT GUIDELINES ESTABLISHED BY THE DECLARANT MAY NOT BE COMPROMISED OR CIRCUMVENTED; NOR THAT ANY FIRE PROTECTION SYSTEM, BURGLAR ALARM SYSTEM, OR OTHER SECURITY SYSTEM DESIGNATED BY OR INSTALLED ACCORDING TO THE GENERAL DEVELOPMENT GUIDELINES ESTABLISHED BY THE DECLARANT MAY NOT BE COMPROMISED OR CIRCUMVEN I'ED; NOR THAT ANY FIRE PROTECTION OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY SYSTEMS WILL PREVENT LOSS BY FIRE, SMOKE, BURGLARY, THEFT, HOLD-UP, OR OTHERWISE; NOR THAT FIRE PROTECTION OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY SYSTEMS WILL IN ALL CASES PROVIDE THE DETECTION OR PROTECTION FOR WHICH THE SYSTEM IS DESIGNED OR INTENDED. ALL OWNERS AND OCCUPANTS OF ANY LOT AND ALL TENANTS, GUESTS, AND INVITEES OF ANY OWNER, ASSUME ALL RISKS FOR LOSS OR DAMAGE TO PERSONS, TO LOTS, TO RESIDENTIAL DWELLINGS AND TO THE CONTENTS OF RESIDENTIAL DWELLINGS AND FURTHER ACKNOWLEDGE THAT THE ASSOCIATION, ITS EXECUTIVE BOARD, COMMITTEES, DECLARANT OR ANY SUCCESSOR DECLARANT HAVE MADE NO REPRESENTATIONS OR WARRANTIES, NOR HAS ANY OWNER, OCCUPANT, OR ANY TENANT, GUEST OR INVITEE OF ANY OWNER RELIED UPON ANY REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, RELATIVE TO ANY FIRE AND/OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 9 SYSTEMS RECOMMENDED OR INSTALLED OR ANY SECURITY MEASURES UNDERTAKEN WITHIN THE PROPERTY. Section 4.12 Power to Provide Services to Subassociations. To the fullest extent permitted by the Act, the Association may establish subassociations and to provide services to subassociations. Such services to any subassociation shall be provided pursuant to an agreement in writing between the Association and such subassociations which shall provide for the payment by such subassociation to the Association of the reasonably estimated expenses which the Association will incur in providing such services to the subassociation, including a fair share of the overhead expenses of the Association. In lieu of collecting the expenses for such services from the subassociation, the Association shall have the right to collect them directly from the Members of the subassociation in monthly installments as part of the monthly common assessments. Section 4.13 Power to Provide Special Services for Members. To the fullest extent permitted by the Act, the Association may provide services to a Member or group of Members. Any service or services to a Member or group of Members shall be provided pursuant to an agreement in writing, or through one or more Supplemental Declarations, which shall provide for payment to the Association by such Member or group of Members of all costs and expenses which the Association estimates it will incur in providing such services, including a fair share of the overhead expenses of the Association, and shall contain provisions assuring that the obligation to pay for such services shall be binding upon any heirs, personal representatives, successors and assigns of the Member or group of Members, and that the payment for such services shall be secured by a lien on the Lot or Lots of the Member or group of Members and may be collected in the same manner as assessments or otherwise. Section 4.14 Water. Potable water shall be supplied to each Lot by a central water system which shall be owned, operated and maintained by the Association. All water use shall be metered by water meters or other measuring devices approved by the Association, which meters or measuring devices shall be installed at Owner's sole cost. The Association shall be responsible for setting all rates, fees or charges for the provision through the central water system of water service to each Lot, which rates, fees and charges will be sufficient to pay for all costs incurred in providing the same, including but not limited to, the yearly costs owed by the Association under the Basalt Water Conservancy District Water Allotment Contract, Contract No. , the maintenance of all water rights and the costs required to maintain a sufficient operating reserve(s).] The obligation of Owners to pay the Association for such water service shall be a personal obligation of the Owner which the Association shall have the power and duty to enforce. A. Hazardous Cross -Connections. The Association shall enforce all regulations promulgated by the Colorado Department of Public Health & Environment (the "Department") contained within the Code of Colorado Regulations at 5 CCR 1003-1, Section 12, to wit: Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 10 (i) the central water system shall have no un -controlled cross -connections to a pipe, fixture, or. supply, any of which contain water not meeting the provisions of the Colorado Primary Drinking Water Regulations, 5 CCR 1003-1. For the purpose of this provision, "cross - connection" means any unprotected actual or potential connection or structural arrangement between a public or a consumer's potable water system and any other source or system through which it is possible to introduce into any part of the potable system any used water, industrial fluid, gas, or substance not meeting drinking water requirements under the Colorado Primary Drinking Water Regulations. By-pass arrangements, jumper connections, removable sections, swivel or change -over devices through which or because of which "backflow" can or may occur are considered to be cross - connections; (ii) all potential hazardous service connections shall be identified; (iii) all users shall be required to install and maintain containment devices; (iv) all containment devices shall be approved by the Association upon installation; (v) all containment devices shall be tested and maintained as necessary on installation and at least annually thereafter, by a trained cross -connection control technician; (vi) the Association shall retain maintenance records of all containment devices. These records shall be available for inspection by Department personnel. All maintenance records shall be maintained by the Association for a period of three (3) years; (vii) Owners shall notify the Association of any cross -connections within ten (10) calender days of its discovery. The cross -connection shall be corrected within ten (10) days of being ordered in writing by the Association to correct the problem. (viii) The failure on part of the Lot Owner(s) to comply with the above provisions may result in the termination of water service. B. Service to Nonmembers. The Association, if requested by the Owner(s) of that property more particularly described on Exhibit A attached hereto and identified therein as the Mumbert Family Cerise Property; provided, however, that the Association shall not be obligated — in the event said property is subdivided — to provide potable water service which exceeds in total amount, five equivalent residential units (5 EQR's), shall provide potable water service to said properties through the central water system. Any such potable water service shall be provided pursuant to an agreement in writing which shall provide for payment to the Association by the owners of said properties of all costs and expenses that are incurred by the Association in providing Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 11 such service and the applicable tap fee then being charged members for service connections. The provision of potable water service pursuant to this provision shall be provided in accordance with and subject to all the terms, conditions, limitations and restrictions set forth within this Section 4.14. C. Irrigation. water provided through the central water system shall be used to irrigate no more than three thousand (3000) square feet per Lot. Section 4.15 Wastewater Treatment. Wastewater treatment shall be supplied to each Lot by individual sewage treatment system ("ISTS") installed by each Owner in accordance with the ISTS Design and Performance Standards set forth in Section 17.1.D. and maintained by the Association in accordance with the provisions of the ISTS Maintenance Plan set forth in Section 9.4. The Association shall be responsible for setting all rates, fees or charges for inspecting, maintaining and repairing each individual system and such rates, fees or charges assessed by the Association against each Lot for such inspection, maintenance and repair shall be a personal obligation of the Owner thereof which the Association shall have the power and duty to enforce. Section 4.16 Equestrian Facilities/Services. The Association may promulgate rules and regulations governing the stabling, pasturing or boarding within the Common Area of horses owned by the Owners. The total number of horses that may be maintained as such within the Common Area at any one time shall not exceed . The Association shall be responsible for setting all rates, fees or charges instant to such stabling, pasturing or boarding and such rates, fees or charges shall be a personal obligation of the Owner thereof which the Association shall have the power and duty to enforce. ARTICLE V POWERS OF THE EXECUTIVE BOARD OF THE ASSOCIATION Section 5.1 Association Rules. From time to time and subject to the provisions of the Association Documents, the Executive Board may adopt, amend, repeal, suspend and publish rules and regulations, to be known as the "Association Rules," governing, among other things and without limitation: A. The use of the Common Area, including any recreational facilities which may be constructed on such property, the personal conduct of the Members and their guests, and the establishment of penalties, including, without limitation, the imposition of fines, for the infraction of such Association Rules; B. The use of any private Roads; Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 12 C. The management and expenditure of all funds deposited with the Association by the purchasers of Lots for the purpose of constructing, maintaining and repairing wildlife habitat improvements within the Property. D. The rights of a Member, including, but not limited to, the voting rights of a Member during any period in which such Member is in default on payment of any Assessment levied by the Association, as provided in Article XI. Such rights also may be suspended after notice and hearing for a period not to exceed ninety (90) days for an infraction of published Association Rules, unless such infraction is ongoing, in which case the rights may be suspended during the period of the infraction and for up to ninety (90) days thereafter. A copy of the Association Rules in effect will be distributed to each Member and any change in the Association Rules will be distributed to each Member within a reasonable time following the effective date of the change. Section 5.2 Implied Rights. The Executive Board may exercise for the Association all powers, duties, and authority vested in or delegated to the Association, and not reserved to the Members or Declarant by other provisions of this Declaration or the Articles or Bylaws of the Association or as provided by law. ARTICLE VI PROPERTY RIGHTS Section 6.1 Common Area. Every Owner shall have a right and nonexclusive easement of use, access, and enjoyment in and to the Common Area, subject to: (i) This Declaration, the Plat and any other applicable covenants; (ii) The restrictions and limitations contained within the Agreement executed by the Association and the Declarant and recorded in the records of the Clerk and Recorder for Garfield County, Colorado on , 2000 at Book , Page and Reception No. (iii) The right of the Executive Board to adopt rules regulating the use and enjoyment of the Common Area, including rules limiting the number of guests who may use the Common Area; (iv) The right of the Executive Board to suspend the right of an Owner to use facilities within the Common Area (A) for any period during which any charge or Assessment against such Owner's Lot remains delinquent, and (B) for a period not to exceed ninety (90) days Declaration of Protective Covenants Cerise Ranch Subdivision l6 -Oct -00 13 for a single violation or for a longer period in the case of any continuing violation of the Declaration, any applicable Supplemental Declaration, the Bylaws or Association Rules; (v) The right of the Executive Board to impose reasonable membership requirements and charge reasonable membership, admission, use or other fees for the use of any facility situated upon the Common Area; (vi) The right of the Executive Board to permit the use of any facilities situated on the Common Area by persons other than Owners, their families, lessees and guests; (vii) The right and obligations of the Declarant and the Association, acting through its Executive Board, to restrict, regulate or limit Owners' and occupants' use of the Common Area for environmental preservation purposes, including, without limitation, wildlife corridors, winter wildlife ranges and natural wildlife habitat; and (viii) Any governmental or quasi -governmental rules, regulations or statutes. Section 6.2 Expansion. From time to time, Declarant may, but shall not be obligated to, expand the Common Area by written instrument recorded with the Clerk and Recorder of Garfield County, Colorado, all as more fully set forth in Article XV below. Section 6.3 Maintenance. The Association shall maintain and keep the Common Area in good repair, and the cost of such maintenance shall be funded as provided in Article XI, subject to any insurance then in effect. This maintenance shall include, but shall not be limited to, upkeep, repair and replacement of all Roads, landscaping, walls, gates, signage, central water systems, irrigation systems, sidewalks, all equestrian facilities (including but not limited to all stables, barns and fences), driveways and improvements, if any (which shall including, without limitation, snow removal services), located in the Common Area and the management and control of all noxious weeds contained within the Common Area, including but not limited to all those identified within the Memorandum Regarding Weed Control and Revegetation attached hereto as Exhibit B, in accordance with the procedures and recommendations set forth therein. In the event the Association does not maintain or repair the Common Area, Declarant shall have the right, but not the obligation, to do so at the expense of the Association. Section 6.4 No Dedication to the Public. Nothing in this Declaration or the other Association Documents will be construed as a dedication to public use, or a grant to any public municipal or quasi -municipal authority or utility, or an assumption of responsibility for the maintenance of any Common Area by such authority or utility, absent an express written agreement to that effect. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 14 ARTICLE VII MECHANIC'S LIENS Section 7.1 No Liability. If any Owner shall cause any material to be furnished to his Lot or any labor to be performed therein or thereon, no Owner of any other Lot shall under any circumstances be liable for the payment of any expense incurred for the value of any work done or material furnished. All such work shall be at the expense of the Owner causing it to be done, and such Owner shall be solely responsible to contractors, laborers, materialmen and other persons furnishing labor or materials to his or her Lot. Nothing herein contained shall authorize any Owner or any person dealing through, with or under any Owner to charge the Common Area or any Lot other than the Lot of such Owner with any mechanic's lien or other lien or encumbrance whatsoever. On the contrary (and notice is hereby given) the right and power to charge any lien or encumbrance of any kind against the Common Area or against any Owner or any Owner's Lot for work done or materials furnished to any other Owner's Lot is hereby expressly denied. Section 7.2 Indemnification. If, because of any act or omission of any Owner, any mechanic's or other lien or order for the payment of money shall be filed against the Common Area or against any other Owner's Lot or any Owner or the Association (whether or not such lien or order is valid or enforceable as such), the Owner whose act or omission forms the basis for such lien or order shall at his own cost and expense cause the same to be canceled and discharged of record or bonded by a surety company reasonably acceptable to the Association, or to such other Owner or Owners, within twenty (20) days after the date of filing thereof, and further shall indemnify and save all the other Owners and the Association harmless from and against any and all costs, expenses, claims, losses or damages including, without limitation, reasonable attorneys' fees, resulting therefrom. Section 7.3 Association Action. Labor performed or material furnished for the Common Area, if duly authorized by the Association in accordance with the Declaration or the Bylaws, shall be deemed to be performed or furnished with the express consent of each Owner and shall be the basis for the filing of a lien pursuant to law against the Common Area. ARTICLE VIII PROPERTY RIGHTS OF OWNERS AND RESERVATIONS BY DECLARANT Section 8.1 Owner's Easement of Enjoyment. Every Owner has a right and easement of enjoyment in and to the Common Area, which shall be appurtenant to and shall pass with the title to every Lot. Certain third persons also may have access to the Common Area as set forth in the Association Rules. Every Owner shall have a right of access to and from his Lot. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 15 Section 8.2 Recorded Easements. The Property shall be subject to all easements, licenses, covenants, and restrictions as shown on any recorded plat affecting the Property and to any other easements of record or of use as of the date of recordation of this Declaration including but not limited to, the easements set forth in this Article VIII. Section 8.3 Open Space Easement. Lots Nos. 1-5 and 57-66 shall be burdened by an easement designed to perpetuate open space and the rural character of the Subdivision (the "Open Space Easement"). Subject to the provisions of the Declaration and the uses and regulations of the Association, each and every Owner is hereby granted an easement for the access, use, and enjoyment of any and all recreational amenities located within the Open Space Easement as is more specifically depicted and described on the Plat. Owners shall not place or construct any structures or fences within the Open space Easement and shall maintain the same in a manner consistent with its allowed use. The Declarant and/or the Association shall have the right to construct ponds, lakes, underground utility lines, recreational amenities or other structures which are allowed under the this Declaration. All portions of the Property encompassed within the Open Space Easement shall for all purposes of this Declaration, constitute Common Area. Section 8.4 Declarant's Rights Incident to Construction. Declarant, for itself and its successors and assigns, hereby reserves an easement for construction, utilities, drainage, ingress and egress over, in, upon, under and across the Common Area, together with the right to store materials on the Common Area, to build and maintain temporary walls, and to make such other use of the Common Area as may be reasonably necessary or incident to any construction of improvements on the Property, or other real property owned by Declarant, or other properties abutting and contiguous to the Property; provided, however, that no such rights shall be exercised by Declarant in a way which unreasonably interferes with the occupancy, use, enjoyment, or access to the Common Area by the Owners. Section 8.5 Utility Easements. There are hereby reserved unto Declarant (so long as the Declarant owns any of the Property), the Association, and the designees of each (which may include, without limitation, Garfield County, Colorado and any utility company) easements upon, across, over and under all of the Lots, with the exception of the building envelope, to the extent reasonably necessary for the purpose of installing, replacing, repairing, and maintaining cable television systems, master television antenna systems, security and similar systems, roads, walkways, bicycle pathways, lakes, ponds, wetlands, drainage systems, irrigation systems, street lights, signage, and all utilities, including, but not limited to, water, sewers, meter boxes, telephone, gas and electricity. The foregoing easements may traverse the private property of any Owner; provided, however, an easement shall not entitle the holders to construct or install any of the foregoing systems, facilities, or utilities over, under or through any existing dwelling on a Lot or building envelope as shown on the Plat, and any damage to a Lot resulting from the exercise of an easement shall be reasonably repaired by, and at the expense of, the Person exercising the easement. The exercise of an easement Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 16 shall not unreasonably interfere with the use of any Lot and, except in any emergency, entry onto any Lot shall be made only after reasonable notice to the Owner or occupant. Declarant specifically reserves the right to convey to the local water supplier, electric company, natural gas supplier and cable television or communications systems supplier and any other utility supplier an easement across the Property for ingress, egress, installation, reading, replacing, repairing and maintaining utility meters and boxes. However, the exercise of this easement shall not extend to permitting entry into the dwelling on the Lot, nor shall any utilities be installed or relocated on the Property, except as approved by the Executive Board or Declarant. Should any entity furnishing a service covered by the general easement herein provided request a specific easement by separate recordable document, the Executive Board or Declarant shall have the right to grant such specific, descriptive easement over the Property without conflicting with the terms hereof. The easements provided for in this Article shall in no way adversely affect any other recorded easement on the Property. The Owner of a Lot subject to such easement shall cooperate with Declarant and the Executive Board and take all actions, including, without limitation, executing any documents evidencing such descriptive easement as reasonably requested by the Executive Board or Declarant. In the event an Owner fails to cooperate in such matter the Association or Declarant may, pursuant to Section 8.14 below, exercise its power to act as that Owner's attorney-in-fact to execute any necessary documentation on behalf of such Owner. Section 8.6 Support Easement. Each Lot is subject to a blanket easement for support and a blanket easement for the maintenance of the structures or improvements presently situated, or to be built in the future, on the Lots. Section 8.7 Road Easement. The Lots may have common Roads and/or driveways upon certain Lots serving more than one Lot, and there is granted hereby a non-exclusive easement to the Owners of Lots served by any such Road or driveway for ingress and egress purposes over and across those portions of such Lots which are used as a Road or driveway. No Owner shall hinder nor permit his guest to hinder reasonable access by any other Owner and his guest to the Lots. Section 8.8 Emergency Access Easement. A general easement is hereby granted to all police, sheriff, fire protection, ambulance, and other similar emergency agencies or persons to enter upon the Property in the proper performance of their duties. Section 8.9 Easements for Lake and Pond Maintenance and Flood Water. Declarant reserves for itself and its successors, assigns and designees the nonexclusive right and easement, but not the obligation, to enter upon the lakes, ponds, streams and wetlands located within the Common Area to (i) install, keep, maintain, and replace pumps in order to provide water for the irrigation of any of the Common Area; (ii) construct, maintain, and repair any bulkhead, wall, dam or other structure retaining water; and (iii) remove trash and other debris therefrom and fulfill their Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 17 maintenance responsibilities as provided in this Section. Declarant, the Association, and their designee shall have an access easement over and across any of the Property abutting or containing any portion of any of the lakes, ponds, streams, or wetlands to the extent reasonably necessary to exercise their rights under this Section. There is further reserved herein for the benefit of Declarant, the Association, and their designees, a perpetual, nonexclusive right and easement of access and encroachment over the Common Area and Lots (but not the dwellings thereon) adjacent to or within one hundred feet of lake beds, ponds and streams within the Property, in order to (i) temporarily flood and back water upon and maintain water over such portions of the Property; (ii) fill, drain, dredge, deepen, clean, fertilize, dye and generally maintain the lakes, ponds, streams, and wetlands within the Common Area; (iii) maintain and landscape the slopes, banks and surrounding areas pertaining to such lakes, ponds, streams, and wetlands; (iv) construct, maintain, operate, repair, and replace water lines, water storage tanks, water house facilities and other improvements necessary or convenient for the installation and operation of the Association's water system; and (v) enter upon and across such portions of the Property for the purpose of exercising its rights under this Section. All persons entitled to exercise these easements shall use reasonable care in, and repair any damage resulting from the intentional exercise of such easements. Nothing herein shall be construed to make Declarant or any other Person liable for damage resulting from flooding due to heavy rainfall, or other natural disasters. Section 8.10 Easements for Encroachments. To the extent that any improvement constructed within the Common Area (including, without limitation, any portion of the Roads) encroaches on any Lot, either currently existing or as a result of any addition or improvement pursuant to this Declaration, a valid easement for such Lot, either currently existing or as a result of any addition or improvement pursuant to this Declaration, a valid easement for such encroachments and for the maintenance of same, so long as they exist, shall and does exist. In the event any such improvement is partially or totally destroyed, and then rebuilt, the Owners agree that minor encroachments of parts of such rebuilt improvements shall be permitted and that a valid easement for said encroachment and the maintenance thereof shall exist so long as the improvements shall stand. Section 8.11 General Maintenance Easement. An easement is hereby reserved to Declarant, and granted to the Association, and any member of the Executive Board or the Manager, and their respective officers, agents, employees, and assigns, upon, across, over, in, and under the Property and a right to make such use of the Property as may be necessary or appropriate to make emergency repairs or to perform the duties and functions, including but not limited to inspecting and maintaining each ISTS pursuant to Section 9.4 which the Association is obligated or permitted to perform pursuant to the Association Documents or to protect the Association's property. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 18 Section 8.12 Blanket Easement. Declarant hereby reserves to itself, its successors and assigns, and grants to the Association, a blanket easement upon, across, over and under the Property, with the exception of building envelopes, for the installation, replacement, repair and maintenance of drainage, ditch, utility and other service lines and systems, including but not limited to, water, gas, telephone, television, cable or communication and electric lines and systems and drainage structures and, further, for the purpose of cuts and fills and/or retaining walls adjacent to the Roads as are necessary or desirable for the proper construction, use and maintenance of the Roads. Declarant, its successors and assigns, further reserves the right, but not the obligation, and grants to the Association the right, but not the obligation, to record a document specifying the boundaries of such easements at any time after such utility lines, roadway cuts and fills and/or retaining walls, pedestrian trails or other improvements described above have been constructed. Section 8.13 Declarant's Right to Excess Capacity. To the maximum extent permitted by the Act, Declarant, during the period of Declarant control and for a period of 20 years thereafter, reserves the right to use excess capacity of the water system, water rights, waterways, wells, ponds, springs and all pumps, pipelines, ditches, tanks, measuring devices, meters or other facilities associated therewith, including any facilities necessary for the exercise of any existing or subsequently decreed water rights or augmentation plan together with easements associated therewith for the construction, erection, maintenance, operation, use, expansion, repair and replacement of the water rights and/or facilities, and to add to such water system or water rights, to amend or change any water court decree, or to substitute the water source or amount of water in any water right as may be subsequently decreed by appropriate action in the water court or with the State Engineer's Office. Section 8.14 Association as Attorney -in -Fact. Each Owner, by his acceptance of a deed or other conveyance vesting in him an interest in a Lot, does irrevocably constitute and appoint the Association and/or Declarant with full power of substitution in the Owner's name, place and stead to deal with Owner's interest in order to effectuate the rights reserved by Declarant or granted to the Association, as applicable, with full power, right and authorization to execute and deliver any instrument affecting the interest of the Owner and to take any other action which the Association or Declarant may consider necessary or advisable to give effect to the provisions of this Section and this Declaration generally. If requested to do so by the Association or Declarant, each Owner shall execute and deliver a written, acknowledged instrument confirming such appointment. No Owner shall have any rights against the Association or Declarant or any of their officers or Directors with respect thereto except in the case of fraud or gross negligence. Section 8.15 Delegation of Use. Any Owner may delegate his right of enjoyment to the Common Area to the members of his family, his tenants, guests, licensees, and invitees, but only in accordance with and subject to the limitations of the Association Documents. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 19 Section 8.16 Declarant's Right of Assignment. Declarant reserves the right to assign any or all of its rights, obligations or interests as Declarant by recording an assignment or deed of record executed by both Declarant and the transferee or assignee in the Office of the Clerk and Recorder of Garfield County, Colorado, designating such party as a Successor Declarant. Upon such recording, Declarant's rights and obligations under this Declaration shall cease and terminate to the extent provided in such document. Section 8.17 Declarant's Right to Conduct Business. Declarant, during the period of Declarant control of the Executive Board and for a period of 20 years thereafter, reserves the right to conduct certain activities which, notwithstanding any provision contained in this Declaration to the contrary, shall include the right to maintain a sales office, management office and other such facilities as in the sole opinion of the Declarant may be reasonably required, convenient or necessary for the construction, sale and management of any Lots. Such facilities may include without limitation a business office, storage area, construction yards, signs, model units, sales offices, construction office, parking areas and lighting and temporary parking structures for all prospective purchasers of Lots. ARTICLE IX MAINTENANCE AND LANDSCAPING Section 9.1 Maintenance and Landscaping of Lots. A. Subject to Article XVI and Section 9.1, each Owner shall be solely responsible for all landscaping, maintenance and repair of his Lot and of the exterior and interior of his residence, including all fixtures and improvements and all utility lines and equipment located therein or in, on or upon his Lot and is required to maintain the Lot and any improvements located thereon in a condition of good order and repair. No Owner shall unreasonably damage the value of other Lots such as by shoddy upkeep of such Owner's Lot or any structures located on the Lot. Each Owner shall be responsible, pursuant to the Colorado Noxious Weed Act, Colo. Rev. State. §§ 35- 5.5101 et. seq. (1999), for controlling and managing all noxious weeds, including but not limited to, all those identified within the Memorandum Regarding Weed Control and Revegetation attached hereto as Exhibit B, which may be located upon that portion of the Owners Lot situate outside the Common Area. B. Owners shall be responsible for all maintenance and repairs of utility service lines, connections, facilities and related equipment providing service to such Owner's Lot and the residence and other buildings and improvements constructed upon such Lot, with such responsibility to begin at the point where a utility provider ceases responsibility for maintenance and repair for a particular utility. The responsibility of an Owner for repair and maintenance shall include those portions of said Owner's Lot, other Lots, unplatted tracts, platted open space, platted easements, and streets and roads which are crossed by such a utility service line or other improvement. All such Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 20 expenses and liabilities shall be borne solely by the Owner of such Lot, who shall have a perpetual easement in and to that part of the Property lying outside of such Owner's Lot for purposes of maintenance, repair and inspection. Each Owner shall use the utility service easement provided herein in a reasonable manner and shall promptly restore the surface overlying such easements when maintaining or repairing a utility service line or other improvement. C. No Owner shall construct any structure or improvement or make or suffer any structural or design change (including a color scheme change), either permanent or temporary and of any type or nature whatsoever to the exterior of his residence or construct any addition or improvement on his Lot without first obtaining the prior written consent thereto from the Design Review Board pursuant to Article XVI hereto. D. Each Owner shall be responsible for ensuring that all construction activities contained within Owner's Lot are conducted in conformance with the Best Management Practices (BMP's) contained within the Drainage Study for the CERISE RANCH SUBDIVISION, HCE JOB NUMBER 99054.01,01/26/00 ("Drainage Study"), a copy of which shall be maintained at all times as part of the regularly kept records of Association. E. No Owner shall construct any improvement or engage in any activity which could interfere in any manner with the drainage/debris flow improvements located within the Drainage Easements identified and more particularly described within the Plat. Section 9.2 Common Area. The Association shall maintain the Common Area as set forth in Section 6.3 above. Maintenance of the Common Area shall be performed at such time and in such a manner as the Association shall determine. Section 9.3 Roads. A. The Association shall maintain and keep the Roads in good repair, and the cost of such maintenance shall be funded as provided in Article XI. This maintenance shall include, but shall not be limited to, upkeep, repair and replacement of the Roads (which shall include, without limitation, snow removal services) and the management and control of all noxious weed, including but not limited to all those identified within the Memorandum Regarding Weed Control and Revegetation attached hereto as Exhibit B, in accordance with the procedures and recommendations set forth therein. The Association's responsibility for Road maintenance under this Section applies whether or not such Roads lie on a Common Area, or some other area of the Property. In the event the Association does not maintain or repair the Roads, Declarant shall have the right, but not the obligation, to do so at the expense of the Association. The Association may contract for these services with any public or private entity. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 21 B. In the event a dedication to Garfield County is made under this Section, the Roads must meet all Garfield County road and trail plan standards applicable at the time of such dedication. Garfield County SHALL HAVE NO OBLIGATION TO ACCEPT THE OWNERSHIP OF THE ROADS OR THE RESPONSIBILITY TO MAINTAIN THE ROADS. Section 9.4 ISTS Management Plan. A. In order to ensure that each ISTS installed within the Property is inspected on a regular basis and properly maintained, the responsibility and authority for such inspection and maintenance shall be vested exclusively within the Association. This management plan is not intended to provide for common ownership of the ISTS's or to provide common funding for the construction, repair or replacement thereof, such ownership and responsibility for construction, repair and maintenance to remain with the Owner. B. In accordance with the above, the Association shall: (i) retain at all times, the services of qualified personnel to inspect the ISTS's and to perform all maintenance and repairs necessary to ensure that same are installed properly, remain in good operating condition and comply with the performance requirements set forth within Section 17.1.D.; (ii) inspect the operating components of each ISTS within (30) days of being placed into operation; thereafter, each ISTS shall be inspected at least quarterly; (iii) test the BOD and TSS content of the effluent being discharged by each ISTS at least biannually; and. (iv) maintain at all times written or other permanent records documenting the date each ISTS was inspected or tested, the results of such inspections or tests and the extent of all maintenance and/or repairs performed. All documents maintained by the Association pursuant to this provision shall at all times be available for inspection by the Owners and/or authorized representatives Garfield County Department of Building and Planning. C. The following provisions shall apply in the event the estimated maintenance or repair costs required of any ISTS exceed in total during any one calender year, $1000.00: (i) the Association shall give the Owner written notice of the nature and extent of the work necessary, to return the ISTS to good operating condition and/or bring the ISTS System within the performance requirements set forth within Section 17.1.D.iv; and Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 22 (ii) within (30) days of receipt of such notice, Owner shall at his or her own expense cause to be completed, the repairs set forth within the notice. In the event Owner fails to complete such repairs within this time period to the satisfaction of the Association, the Association shall have the authority, in addition to any other remedy provided within this Declaration or the Act, to take any of the following actions: a. to impose against Owner, a fine not to exceed $200.00 for each day in which the System remains unrepaired; and/or b. to discontinue domestic water service to Owner's Lot: and/or c. to complete on behalf of the Owner the required repairs to the ISTS. All costs incurred by the Association in connection with the restoration shall be reimbursed to the Association by the Owner of the Lot, upon demand. All unreimbursed costs shall be a lien upon the Lot until reimbursement is made. The lien may be enforced in the same manner as a lien for an unpaid assessment levied in accordance with Article XI of this Declaration. D. In the event the Association fails to properly implement and enforce the provisions of this management plan set forth in this Section 9.4., the Board of County Commissioners for Garfield County, Colorado and its duly authorized representatives and agents, shall have all the right to enter upon the Property and implement and enforce such provisions at the expense of the Association or exercise any other right or power afforded under this Declaration or the Act including, but not limited to, the initiation of appropriate proceedings in the District Court for Garfield County, Colorado, to compel enforcement of the provisions of this management plan. E. The provisions of this Section 9.4, shall not be amended or repealed by the Declarant, Association or Owners without the written consent of the Board of County Commissioners for Garfield County, Colorado. Section 9.5 Maintenance of Drainage Structures. The Association shall be responsible for maintaining in good repair all drainage structures located within the Property, including but not limited to, all detention basins, grass lined swales and culverts in accordance with the BMP's and other practices outlined within the Drainage Study. All construction activities conducted by the Association on the Common Area shall be performed in accordance with the provisions set forth within the Drainage Study. Section 9.6 Maintenance Contract. The Association or Executive Board may employ or contract for the services of a third party to perform certain delegated powers, functions, or duties of the Association to maintain the Common Area. The employed individual or maintenance company shall have the authority to make expenditures upon prior approval and direction of the Executive Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 23 Board. The Executive Board shall not be liable for any omission or improper exercise by the employed third party of any duty, power, or function so delegated by written instrument executed by or on behalf of the Executive Board. Section 9.7 Owner's Failure to Maintain or Repair. In the event that a Lot and the improvements thereupon are not properly maintained and repaired by an Owner, or in the event that the improvements on the Lot are damaged or destroyed by an event of casualty and the Owner does not take reasonable measures to diligently pursue and repair the reconstruction of the damaged or destroyed improvements to substantially the same condition in which they existed prior to the damage or destruction, then the Association, after notice to the Owner and with the approval of the Executive Board, shall have the right to enter upon the Lot to perform such work as is reasonably required to restore the lot and the buildings and other improvements thereon to a condition of good order and repair. All costs incurred by the Association in connection with the restoration shall be reimbursed to the Association by the Owner of the Lot, upon demand. All unreimbursed costs shall be a lien upon the Lot until reimbursement is made. The lien may be enforced in the same manner as a lien for an unpaid assessment levied in accordance with Article XI of this Declaration. ARTICLE X INSURANCE AND FIDELITY BONDS Section 10.1 General Insurance Provisions. The Association shall maintain. to the extent reasonably available: (i) Property insurance on the Common Area for broad form covered causes of loss; except that the total amount of insurance must be not less than the full insurable replacement costs of the insured property less reasonable deductibles at the time the insurance is purchased and at each renewal date, exclusive of land, excavations, foundations, paving areas, landscaping and other items normally excluded from property policies; and (ii) Commercial general liability insurance against claims and liabilities arising in connection with the ownership, existence, use, or management of the Common Area and the Association, in an amount deemed sufficient in the judgment of the Executive Board, insuring the Executive Board, the Association, the Manager, and their respective employees, agents, and all persons acting as agents. Declarant shall be included as an additional insured in Declarant's capacity as an Owner and Executive Board member. The Owners shall be included as additional insureds but only for claims and liabilities arising in connection with the ownership, existence, use, or management of the Common Area. The insurance shall cover claims of one or more insured parties against other insured parties. (iii) The Association may carry such other and further insurance that the Executive Board considers appropriate, including insurance on Lots, or insurance covering the acts Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 24 or omissions of officers, directors, employees or agents of the Association, or other insurance that the Association is not obligated to carry to protect the Association or the Owners. Section 10.2 Cancellation. If the insurance described in Section 10.1 is not reasonably available, or if any policy of such insurance is canceled or not renewed without a replacement policy therefor having been obtained, the Association promptly shall cause notice of that fact to be hand delivered or sent prepaid by United States mail to all Owners. Section 10.3 Policy Provisions. Insurance policies carried pursuant to Section 10.1 must, to the extent available, provide that: (i) Each Owner is an insured person under the policy with respect to liability arising out of such Owner's membership in the Association; (ii) The insurer waives its rights to subrogation under the policy against any Owner or member of his household; (iii) No act or omission by any Owner, unless acting within the scope of such Owner's authority on behalf of the Association, will void the policy or be a condition to recovery under the policy; and (iv) If, at the time of a loss under the policy, there is other insurance in the name of an Owner covering the same risk covered by the policy, the Association's policy provides primary insurance. Section 10.4 Insurance Proceeds. Any loss covered by the property insurance policy described in Section 10.1 must be adjusted with the Association, but the insurance proceeds for that loss shall be payable to any insurance trustee designated for that purpose, or otherwise to the Association, and not to any holder of a security interest. The insurance trustee or the Association shall hold any insurance proceeds in trust for the Owners and Mortgagees as their interests may appear. Subject to the provisions of Section 10.7 below, the proceeds must be distributed first for the repair or restoration of the damaged property, and the Association, Owners and Mortgagees are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the damaged property has been completely repaired or restored or the regime created by this Declaration is terminated. Section 10.5 Association Policies. The Association may adopt and establish written nondiscriminatory policies and procedures relating to the submittal of claims, responsibility for deductibles, and any other matters of claims adjustment. To the extent the Association settles claims for damages to real property, it shall have the authority to assess negligent Owners causing such loss Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 25 or benefitting from such repair or restoration all or any equitable portion of the deductibles paid by the Association. Section 10.6 Insurer Obligation. To the extent the following is available, an insurer that has issued an insurance policy for the insurance described in Section 10.1 shall issue certificates or memoranda of insurance to the Association and, upon request, to any Owner or Mortgagee. Unless otherwise provided by statute, the insurer issuing the policy may not cancel or refuse to renew it until thirty (30) days after notice of the proposed cancellation or nonrenewal has been mailed to the Association and to each Owner and Mortgagee to whom a certificate or memorandum of insurance has been issued at their respective last -known addresses. Section 10.7 Repair and Replacement. A. Any portion of the Common Area for which insurance is required under this Article which is damaged or destroyed must be repaired or replaced promptly by the Association unless: (i) The regime created by this Declaration is terminated; (ii) Repair or replacement would be illegal under any state or local statute or ordinance governing health or safety; (iii) Sixty-seven percent of the Owners vote not to rebuild, including the vote of every Owner of a Lot or assigned limited common element that will not be rebuilt; or (iv) Prior to the conveyance of any Lot to a person other than Declarant, the Mortgagee holding a deed of trust or mortgage on the damaged portion of the Common Area rightfully demands all or a substantial part of the insurance proceeds. B. The cost of repair or replacement in excess of insurance proceeds and reserves is a Common Expense. If the entire Common Area is not repaired or replaced, the insurance proceeds attributable to the damaged Common Area must be used to restore the damaged area to a condition compatible with the remainder of The Cerise Ranch Subdivision, and except to the extent that other persons will be distributees, the unused insurance proceeds must be distributed to all the Owners or Mortgagees, as their interests may appear in proportion to the Common Expense liabilities of all the Lots. Section 10.8 Common Expenses. Premiums for insurance that the Association acquires and other expenses connected with acquiring such insurance are Common Expenses. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 26 Section 10.9 Fidelity Insurance. Fidelity bonds must be maintained by the Association to protect against dishonest acts on the part of its Directors, officers, trustees, and employees and on the part of all others who handle or are responsible for handling the funds belonging to or administered by the Association in an amount not less than two months' current Assessments plus reserves as calculated from the current budget of the Association. In addition, if responsibility for handling funds is delegated to a Manager, such bond may be obtained for the Manager and its officers, employees, and agents, as applicable. Any such fidelity coverage shall name the Association as an obligee and such bonds shall contain waivers by the issuers of all defenses based upon the exclusion of persons serving without compensation from the definition of "employees," or similar terms or expressions. Section 10.10 Worker's Compensation Insurance. The Executive Board shall obtain worker's compensation or similar insurance with respect to its employees, if applicable, in the amounts and forms as may now or hereafter be required by law. Section 10.11 Other Insurance. The Association shall also maintain insurance to the extent reasonably available and in such amounts as the Executive Board may deem appropriate on behalf of Directors against any liability asserted against a Director or incurred by him in his capacity of or arising out of his status as a Director. The Executive Board may obtain insurance against such other risks of a similar or dissimilar nature as it shall deem appropriate with respect to the Association's responsibilities and duties. Section 10.12 Insurance Obtained by Owners. Each Owner shall obtain and at all times maintain physical damage and liability insurance for such Owner's benefit, at such Owner's expense, covering the full replacement value of the Owner's Lot and residence (except to the extent any such Lot is encumbered by an easement conveyed to the Association as Common Area), personal property and personal liability insurance in a limit of not less than Five Hundred Thousand Dollars ($500,000.00) in respect to bodily injury or death to any number of persons arising out of one accident or disaster, or for damage to property, and if higher limits shall at any time be customary to protect against tort liability such higher limits shall be carried. In addition, an Owner may obtain such other and additional insurance coverage on the Lot and residence as such Owner in the Owner's sole discretion shall conclude to be desirable; provided, however, that none of such insurance coverage obtained by the Owner shall operate to decrease the amount which the Executive Board, on behalf of all Owners, may realize under any policy maintained by the Executive Board or otherwise affect any insurance coverage obtained by the Association or cause the diminution or termination of that insurance coverage. Any insurance obtained by an Owner shall include a provision waiving the particular insurance company's right of subrogation against the Association and other Owners, including Declarant, should Declarant be the Owner of any Lot. No Owner shall obtain separate insurance policies on the Common Area. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 27 All Owners are required to maintain on file copies of all such current policies with the Association to evidence their obligations hereunder and to facilitate recovery of all appropriate awards or proceeds by the Association. ARTICLE XI ASSESSMENTS Section 11.1 Obligation. Each Owner, including Declarant, by accepting a deed for a Lot, is deemed to covenant to pay to the Association (i) the Annual Assessments imposed by the Executive Board as necessary to meet the Common Expenses of maintenance, operation, and management of the Common Area and to perform the functions of the Association; (ii) Special Assessments for capital improvements and other purposes as stated in this Declaration, if permitted under the Act; and (iii) Default Assessments which may be assessed against a Lot for the Owner's failure to perform an obligation under the Association Documents or because the Association has incurred an expense on behalf of the Owner under the Association Documents. Section 11.2 Purpose of Assessments. The Assessments shall be used exclusively to promote the health, safety and welfare of the Owners and occupants of The Cerise Ranch Subdivision, for the improvement and maintenance of the Common Area and other areas of Association responsibility referred to herein, as more fully set forth in this Article below and in Article XVIII. Section 11.3 Budget. Within thirty (30) days after the adoption of any proposed budget for the Association, the Executive Board shall mail, by ordinary first-class mail, or otherwise deliver a summary of the budget to all the Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than fourteen (14) nor more than sixty (60) days after mailing or other delivery of the summary. Unless at that meeting sixty percent (60%) of all Owners, whether or not present at the meeting, reject the budget, the budget is ratified, whether or not a quorum is present. In the event that the proposed budget is rejected, the periodic budget last ratified by the Owners must be continued until such time as the Owners ratify a subsequent budget proposed by the Executive Board. The Executive Board shall adopt a budget and submit the budget to a vote of the Owners as provided herein no less frequently than annually. The Executive Board shall levy and assess the Annual Assessments in accordance with the annual budget. Section 11.4 Annual Assessments. Annual Assessments for Common Expenses made shall be based upon the estimated cash requirements as the Executive Board shall from time to time determine to be paid by all of the Owners, subject to Section 11.3 above. Estimated Common Expenses shall include, but shall not be limited to, the cost of routine maintenance and operation of the Common Area; expenses of management, taxes and special governmental assessments pertaining to the Common Area and insurance premiums for insurance coverage as deemed desirable or necessary by the Association; landscaping, care of grounds within the Common Area; routine repairs Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 28 and renovations within the Common Area; wages; common water and utility charges for the Common Area; legal and accounting fees; management fees; expenses and liabilities incurred by the Association under or by reason of this Declaration; payment of any default remaining from a previous assessment period; and the creation of a reasonable contingency or other reserve or surplus fund for general, routine maintenance, repairs, and replacement of improvements within the Common Area on a periodic basis, as needed. Notwithstanding the use of the term "Annual" Assessments, the Association may establish an Annual Assessment for less than 12 months (e.g., set two six month "Annual Assessments"). Until the Association makes an Annual Assessment, the Declarant shall pay all Common Expenses. Annual Assessments shall be payable on a prorated basis each year in advance and shall be due on the first day of each month, calendar quarter or year, as determined by the Executive Board. The omission or failure of the Association to fix the Annual Assessments for any assessment period shall not be deemed a waiver, modification, or release of the Owners from their obligation to pay the same. The Association shall have the right, but not the obligation, to make prorated refunds of any Annual Assessments in excess of the actual expenses incurred in any fiscal year. In the alternative, the Executive Board may elect to allocate any such excess Assessments to an Association working capital fund or to an Association reserve fund. Section 11.5 Apportionment of Annual Assessments. Each Owner shall be responsible for that Owner's share of the Common Expenses, which shall be divided among the Lots on the basis of the Sharing Ratios in effect on the date of assessment, subject to the following provisions. All expenses (including, but not limited to, costs of maintenance, repair, and replacement) relating to fewer than all of the Lots to the extent not covered by insurance may be borne by the Owners of those affected Lots only at the reasonable discretion of the Executive Board. The formula used in establishing Sharing Ratios is an equal allocation among all of the Lots. Section 11.6 Special Assessments. In addition to the Annual Assessments authorized by this Article, the Association may levy in any fiscal year one or more Special Assessments, if permitted under the Act, payable over such a period as the Association may determine, for the purpose of defraying, in whole or in part, the cost of any construction or reconstruction, unexpected repair or replacement of improvements within the Common Area or for any other expense incurred or to be incurred as provided in this Declaration. This Section 11.6 shall not be construed as an independent source of authority for the Association to incur expense, but shall be construed to prescribe the manner of assessing expenses authorized by other sections of this Declaration, and in acting under this Section, the Association shall make specific references to this Section. Any amounts assessed pursuant to this Section shall be assessed to Owners in the same proportion as provided for Annual Assessments in Article XI, Section 11.4, subject to the requirements that any extraordinary maintenance, repair or restoration work on fewer than all of the Lots shall be borne by the Owners of those affected Lots only; and any extraordinary insurance costs incurred as a result of the value of a particular Owner's residence or the actions of a particular Owner (or his agents, Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 29 servants, guests, tenants, or invitees) shall be borne by that Owner. Notice in writing in the amount of such Special Assessments and the time for payment of the Special Assessments shall be given promptly to the Owners, and no payment shall be due less than thirty (30) days after such notice shall have been given. Section 11.7 Default Assessments. All monetary fines assessed against an Owner pursuant to the Association Documents, or any expense of the Association which is the obligation of an Owner or which is incurred by the Association on behalf of the Owner pursuant to the Association Documents, shall be a Default Assessment and shall become a lien against such Owner's Lot which may be foreclosed or otherwise collected as provided in this Declaration. Notice of the amount and due date of such Default Assessment shall be sent to the Owner subject to such Assessment at least thirty (30) days prior to the due date. Section 11.8 Effect of Nonpayment; Assessment Lien. Any Assessment installment, whether pertaining to any Annual, Special, or Default Assessment, which is not paid within thirty (30) days after its due date shall be delinquent. If an Assessment installment becomes delinquent, the Association, in its sole discretion, may take any or all of the following actions: (i) Assess a late charge for each delinquency in such amount as the Association deems appropriate; (ii) Assess an interest charge from the date of delinquency at the yearly rate of two points above the prime rate charged by the Association's bank, or such other rate as the Executive Board may establish, not to exceed twenty-one percent (21%) per annum; (iii) Suspend the voting rights of the Owner during any period of delinquency; (iv) Accelerate all remaining Assessment installments so that unpaid Assessments for the remainder of the fiscal year shall be due and payable at once; (v) Bring an action at law against any Owner personally obligated to pay the delinquent Assessments; and (vi) Proceed with foreclosure as set forth in more detail below. Assessments chargeable to any Lot shall constitute a lien on such Lot. The Association may institute foreclosure proceedings against the defaulting Owner's Lot in the manner for foreclosing a mortgage on real property under the laws of the State of Colorado. In the event of any such foreclosure, the Owner shall be liable for the amount of unpaid Assessments, any penalties and interest thereon, the cost and expenses of such proceedings, the cost and expenses for filing the Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 30 notice of the claim and lien, and all reasonable attorney's fees incurred in connection with the enforcement of the lien. The Association shall have the power to bid on a Lot at foreclosure sale and to acquire and hold, lease, mortgage, and convey the same. The Association may bid for the Lot at the foreclosure sale and acquire, hold, lease, mortgage and convey the Lot. While a Lot is owned by the Association following foreclosure: (a) no right to vote shall be exercised on its behalf; (b) no assessment shall be levied on it; and (c) each other Lot shall be charged, in addition to its usual Assessment, its equal pro rata share of the Assessment that would have been charged such Lot had it not been acquired by the Association. The Association may sue for unpaid Common Expenses and costs without foreclosing or waiving the lien securing the same. To the maximum extent permitted by law, the lien of the Assessments will be superior to and prior to any homestead exemption provided now or in the future by the law of the State of Colorado, and to all other liens and encumbrances except liens and encumbrances recorded before the date of the recording of this Declaration, and liens for governmental assessments or charges imposed against a Lot by a Colorado governmental or political subdivision or special taxing district or any other liens made superior by statute. Section 11.9 Personal Obligation. The amount of any Assessment chargeable against any Lot shall be a personal and individual debt of the Owner of same. No Owner may exempt himself from liability for the Assessment by abandonment of his Lot or by waiver of the use or enjoyment of all or any part of the Common Area. Suit to recover a money judgment for unpaid Assessments, any penalties and interest thereon, the cost and expenses of such proceedings, and all reasonable attorney's fees in connection therewith shall be maintainable without foreclosing or waiving the Assessment lien provided in this Declaration. Section 11.10 Successor's Liability for Assessments. The provisions of the Act shall govern and control: (a) the obligations of successors to the fee simple title of a Lot on which Assessments are delinquent and (b) the subordination by the lien of the Assessments provided for in this Declaration. Notwithstanding the foregoing or any contrary provision herein, the lien of the Assessments shall represent a prior and senior lien and shall enjoy priority over any First Mortgage recorded subsequent to the recording of the Declaration. Section 11.11 Payment by Mortgagee. Any Mortgagee holding a lien on a Lot may pay any unpaid Assessment payable with respect to such Lot, together with any and all costs and expenses incurred with respect to the lien, and upon such payment that Mortgagee shall have a lien on the Lot for the amounts paid with the same priority as the lien of the Mortgage. Section 11.12 Statement of Status of Assessment Payment. Upon payment of a reasonable fee set from time to time by the Executive Board and upon fourteen (14) days' written request to the Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 31 Manager or the Association's registered agent, any Owner, Mortgagee, prospective Mortgagee, or prospective purchaser of a Lot shall be furnished with a written statement setting forth the amount of the unpaid Assessments, if any, with respect to such Lot. Unless such statement shall be issued by personal delivery or by certified mail, first class postage prepaid, return receipt requested, to the inquiring party (in which event the date of posting shall be deemed the date of delivery) within fourteen (14) days, the Association shall have no right to assert a lien upon the Lot over the inquiring party's interest for unpaid Assessments which were due as of the date of the request. Section 11.13 Capitalization of the Association. Upon acquisition of record title to a Lot from Declarant or any seller after Declarant, each Owner shall contribute to the working capital and reserves of the Association an amount equal to twenty-five percent (25%) of the Annual Assessment determined by the Executive Board for that Lot for the year in which the Owner acquired title. Such payments shall not be considered advance payments of the Annual Assessments. The unused portion of the working capital deposit shall be returned to each Owner, without interest, upon the sale of his Lot, provided that the new purchaser of the Lot has deposited the required working capital deposit with the Association. The Executive Board shall be entitled to make use of the working capital reserves in its discretion following a ten (10) day written notice of its intention to so use the reserves and the purposes therefor is mailed to all of the Owners. Section 11.14 Real Estate Transfer Assessment. If permitted by law, the Executive Board, in its discretion, may levy a real estate transfer assessment upon the transfer of real property within the Property. Any such real estate transfer assessment must be made pursuant to certain uniform procedures, limitations and exclusions as are currently in effect for other similar real estate projects in Garfield County, Colorado. In addition, the procedures, limitations and exclusions must be placed of record by the Association in the Office of the Clerk and Recorder for Garfield County, Colorado, prior to the enactment of such levy. In no event shall the real estate transfer assessment rate exceed two percent (2%) of the fair market value of the property being transferred. ARTICLE XII ASSOCIATION AS ATTORNEY-IN-FACT Each Owner hereby irrevocably appoints the Association as the Owner's true and lawful attorney-in-fact for the purposes of dealing with any improvements covered by insurance written in the name of the Association pursuant to Article X upon their damage or destruction as provided in Article XIII, or a complete or partial taking as provided in Article XIV below. Acceptance by a grantee of a deed or other instrument of conveyance from Declarant or any other Owner conveying any portion of the Property shall constitute appointment of the Association as the grantee's attorney- in-fact, and the Association shall have full authorization, right, and power to make, execute, and deliver any contract, assignment, deed, waiver or other instrument with respect to the interest of any Owner which may be necessary to exercise the powers granted to the Association as attorney-in-fact. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 32 ARTICLE XIII DAMAGE OR DESTRUCTION Section 13.1 The Role of the Executive Board. Except as provided in Section 13.6, in the event of damage to or destruction of all or part of any Common Area improvement, or other Property covered by insurance written in the name of the Association under Article X, the Executive Board shall arrange for and supervise the prompt repair and restoration of the damaged Property (the Property insured by the Association pursuant to Article X is sometimes referred to as the "Association -Insured Property"). Section 13.2 Estimate of Damages or Destruction. As soon as practicable after an event causing damage to or destruction of any part of the Association -Insured Property, the Executive Board shall, unless such damage or destruction shall be minor, obtain an estimate or estimates that it deems reliable and complete of the costs of repair and reconstruction. "Repair and reconstruction" as used in this Article XIII shall mean restoring the damaged or destroyed improvements to substantially the same condition in which they existed prior to the damage or destruction. Such costs may also include professional fees and premiums for such bonds as the Executive Board or the Insurance Trustee, if any, determines to be necessary. Section 13.3 Repair and Reconstruction. As soon as practical after the damage occurs and any required estimates have been obtained, the Association shall diligently pursue to completion the repair and reconstruction of the damaged or destroyed Association -Insured Property. As attorney-in- fact for the Owners, the Association may take any and all necessary or appropriate action to effect repair and reconstruction of any damage to the Association -Insured Property, and no consent or other action by any Owner shall be necessary. Any repair and reconstruction of damaged or destroyed Roads shall, at a minimum, meet all standards approved by Garfield County for The Cerise Ranch Subdivision. Assessments of the Association shall not be abated during the period of insurance adjustments and repair and reconstruction. Section 13.4 Funds for Repair and Reconstruction. The proceeds received by the Association from any hazard insurance carried by the Association shall be used for the purpose of repair, replacement, and reconstruction of the Association -Insured Property. If the proceeds of the Association's insurance are insufficient to pay the estimated or actual cost of such repair, replacement, or reconstruction, or if upon completion of such work the insurance proceeds for the payment of such work are insufficient, the Association may, pursuant to Article XI, Section 11.6. but subject to applicable law, levy, assess, and collect in advance from the Owners, without the necessity of a special vote of the Owners, a Special Assessment sufficient to provide funds to pay such estimated or actual costs of repair and reconstruction. Further levies may be made in like manner if the amounts collected prove insufficient to complete the repair, replacement or reconstruction. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 33 Section 13.5 Disbursement of Funds for Repair and Reconstruction. The insurance proceeds held by the Association and the amounts received from the Special Assessments provided for above constitute a fund for the payment of the costs of repair and reconstruction after casualty. It shall be deemed that the first money disbursed in payment for the costs of repair and reconstruction shall be made from insurance proceeds, and the balance from the Special Assessments. If there is a balance remaining after payment of all costs of such repair and reconstruction, such balance shall be distributed to the Owners in proportion to the contributions each Owner made as Special Assessments, then in equal shares per Lot, first to the Mortgagees and then to the Owners, as their interests appear or, in the reasonable discretion of the Executive Board, the balance may be paid to any maintenance over working capital reserves maintained by the Executive Board. Section 13.6 Decision Not to Rebuild Common Area. If Owners representing at least 67% of the total allocated votes in the Association (other than Declarant) and 51% of the Mortgagees holding First Mortgages (based on 1.0 vote for each Mortgage which encumbers a Lot) and all directly adversely affected Owners agree in writing not to repair and reconstruct improvements within the Common Area and if no alternative improvements are authorized, then and in that event the damaged property shall be restored to its natural state and maintained as an undeveloped portion of the Common Area by the Association in a neat and attractive condition. In the event such a written agreement not to repair or reconstruct is made regarding any Road, such decision must additionally receive the written consent of the Board of County Commissioners, Garfield County, Colorado. Any remaining insurance proceeds shall be distributed in accordance with the Act. ARTICLE XIV CONDEMNATION Section 14.1 Rights of Owners. Whenever all or any part of the Common Area shall be taken by any authority having power of condemnation or eminent domain or whenever all or any part of the Common Area is conveyed in lieu of a taking under threat of condemnation by the Executive Board acting as attorney-in-fact for all Owners under instructions from any authority having the power of condemnation or eminent domain, each Owner shall be entitled to notice of the taking or conveying. The Association shall act as attorney-in-fact for all Owners in the proceedings incident to the condemnation proceeding to the extent of the Association's ownership interest in the Common Area, unless otherwise prohibited by law. Section 14.2 Partial Condemnation; Distribution of Award; Reconstruction. The award made for such taking shall be payable to the Association as trustee for those Owners for whom use of the Common Area was conveyed and, unless otherwise required under the Act, the award shall be disbursed as follows: Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 34 If the taking involves a portion of the Common Area on which improvements have been constructed, then, unless within sixty days after such taking Declarant and the Owners who represent at least 67% of the votes of all of the Owners shall otherwise agree, the Association shall restore or replace such improvements so taken on the remaining land included in the Common Area to the extent lands are available for such restoration or replacement in accordance with plans approved by the Executive Board and the Design Review Board. If such improvements are to be repaired or restored, the provisions in Article XIII above regarding the disbursement of funds with respect to casualty damage or destruction which is to be repaired shall apply. If the taking does not involve any improvements on the Common Area, or if there is a decision made not to repair or restore, or if there are net funds remaining after any such restoration or replacement is completed, then such award or net funds shall be distributed in equal shares per Lot among the Owners, first to the Mortgagees and then to the Owners, as their interests appear. Section 14.3 Complete Condemnation. If all of the Property is taken, condemned, or sold, or otherwise disposed of in lieu of or in avoidance of condemnation, then the regime created by this Declaration shall terminate, and the portion of the condemnation award attributable to the Common Area shall be distributed as provided in Article XIII, Section 13.5, above. ARTICLE XV EXPANSION, SUBDIVISION AND WITHDRAWAL Section 15.1 Reservation of Expansion and Withdrawal Rights. A. Declarant reserves the right to add to the Property that real property more particularly described on Exhibit A and Exhibit C attached to this Declaration ("Specified Additional Property"). B. Declarant reserves the right to add additional, unspecified real estate to the Property to the fullest extent permitted by the Act. C. Declarant reserves the right to subdivide any Lot into two or more Lots, and to create duplexes or multi -family facilities on any Lot either pursuant to re -subdivision, the subjection of such duplexes or multi -family units to a common interest ownership regime or other lawful means, as long as the total number of Lots to be created by Declarant within the Property does not exceed sixty eight (68). D. Declarant reserves the right to connect to the central water system at no cost or expense to Declarant, all Lots created within either the Property or Additional Property, above described. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 35 E. To the maximum extent permitted by the Act, Declarant reserves the right for itself and any Successor Declarant any time and from time to time to withdraw from the provisions of this Declaration any real property subject to this Declaration or subjected to this Declaration by a duly recorded Supplemental Declaration, and, if necessary, Supplemented Plat prior to the time of a sale of a Lot within that phase of the Property as described in this Declaration or in said Supplemental Declaration and, if necessary, Supplemental Plat. F. The new Lots shall be subject to all of the terms and conditions of this Declaration and of any Supplemental Declaration, upon placing the Supplemental Declaration and, if necessary, the Supplemental Plat(s) of public record in the real estate records of Garfield County, Colorado. Section 15.2 Supplemental Declarations and Supplemental Plats. Such expansion may be accomplished by the filing for record by Declarant in the Offices of the Clerk and Recorder for Garfield County, Colorado, of one or more Supplemental Declarations and, if the real property being subject to this Declaration by such Supplemental Declaration has not been previously platted pursuant to recorded plat, of a Supplemental Plat depicting such real property recorded concurrently with the applicable Supplemental Declaration. The Supplemental Declaration shall set forth the Lots and other real property, if any, to be included in the expansion, together with any covenants, conditions, restrictions and easements particular to such property. The expansion may be accomplished in stages by successive supplements or in one supplemental expansion. Declarant may exercise such rights for expansion in whatever order of development Declarant in its sole discretion determines. Declarant shall not be obligated to expand the real property subject to this Declaration. Section 15.3 Expansion of Definitions. In the event of such expansion, resubdivision or creation of condominium, duplex, town home or other multi -family units, the definitions used in this Declaration shall be expanded automatically to encompass and refer to the Property subject to this Declaration as so expanded, resubdivided or created in condominiums, duplexes, town homes or multi -family units. For example, "Lot" shall mean the Lots as shown on the Plat plus any additional Lots added by a Supplemental Declaration and, if necessary, Supplemental Plat or Plats (but avoiding duplication such that if three town homes were created from one Lot, then there would be a net two additional Lots), and reference to this Declaration shall mean this Declaration as supplemented. All conveyances of Lots shall be effective to transfer rights in the Property as expanded. Section 15.4 Effect of Expansion. A. Upon the inclusion of additional Lots under this Declaration by the filing of a Supplemental Declaration(s) and, if necessary Supplemental Plat(s) thereof, the Sharing Ratio applicable to a Lot shall automatically be reduced to a fraction, the numerator of which shall be one Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 36 (1) and the denominator of which shall be equal to the aggregate number of Lots then subject to this Declaration. Such reduction in the Sharing Ratio appurtenant to a Lot shall be reflected and set forth in the Supplemental Declaration. B. Notwithstanding any inclusion of additional Lots under this Declaration, each Owner shall remain fully liable with respect to its obligation for the payment of the Common Expenses of the Association, including the expenses for such new Common Area, costs and fees, if any. The recording of a Supplemental Declaration or Supplemental Plat shall not alter the amount of the Common Expenses assessed to a Lot prior to such recording. Section 15.5 Termination of Expansion and Development Rights. The rights reserved to the Declarant for itself, its successors and assigns for the expansion and development pursuant to Section 15.1 ("Expansion and Development Rights") shall expire twenty (20) years from the date of recording this Declaration, unless terminated earlier pursuant to the terms and provisions of the Act, or 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. ARTICLE XVI GENERAL DEVELOPMENT GUIDELINES AND REVIEW BOARD Section 16.1 Design Review Board and Guidelines. There is hereby established a Design Review Board (the "Design Review Board"), which will be responsible for the establishment and administration of General Development Guidelines to facilitate the purpose and intent of this Declaration. Section 16.2 Purpose and General Authority. The Design Review Board will review, study and either approve or reject proposed improvements on the Property, all in compliance with this Declaration, the Plat and as further set forth in the General Development Guidelines and such rules and regulations as the Design Review Board may establish from time to time to govern its proceedings. No improvement will be erected, placed, reconstructed, replaced, repaired or otherwise altered, nor will any construction, repair or reconstruction be commenced until plans for the improvements shall have been approved by the Design Review Board; provided, however, that improvements that are completely within a dwelling structure may be undertaken without such approval. Section 16.3 ISTS Systems. For the purpose of implementing this Article XVI, individual sewage disposal systems shall constitute "improvements" as used in this Article. All such systems shall be reviewed by the Design Review Board for conformance with the provisions set forth within Section 17.1.D. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 37 Section 16.4 Board Discretion. The Design Review Board will exercise its reasonable judgment to see that all improvements conform and harmonize with any existing structures as to external design, quality and type of construction, seals, materials, color, location on the building site, height, grade and finished ground elevation, landscaping, and the schemes and aesthetic considerations set forth in the General Development Guidelines and other Association Documents. The Design Review Board, in its sole discretion, may excuse compliance with such requirements as are not necessary or appropriate in specific situations and may permit compliance with different or alternative requirements. The approval by the Design Review Board of improvements on the Property shall carry no precedential weight when reviewing subsequent requests for approvals, and the Design Review Board shall not be required to approve requests for the same or similar improvements. Section 16.5 General Development Guidelines. The General Development Guidelines may include, among other things, at the sole discretion of the Design Review Board, the restrictions and limitations set forth below: (i) Procedures and necessary fees for making application to the Design Review Board for design review approval, including the documents to be submitted and the time limits in which the Design Review Board must act to approve or disapprove any submission. (ii) Time limitations for the completion, within specified periods after approval, of the improvements for which approval is required under the General Development Guidelines. (iii) Landscaping regulations, with limitations and restrictions prohibiting the removal or requiring the replacement of existing trees, the type and use of plants, and other practices benefitting the protection of the environment, conservation of water, aesthetics and architectural harmony of The Cerise Ranch Subdivision. (iv) General instructions for the construction, reconstruction, refinishing or alteration of any improvement, including any plan to excavate, fill or make any other temporary or permanent change in the natural or existing surface contour or drainage or any installation or utility lines or conduits on the Property, addressing matters such as loading areas, waste storage, trash removal, equipment and materials storage, grading, transformers and meters. The Design Review Board may amend, repeal and augment the General Development Guidelines from time to time, in the Design Review Board's sole discretion. The General Development Guidelines will be binding on all Owners and other persons governed by this Declaration. Notwithstanding the foregoing, the Design Review Board is empowered in its Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 38 discretion to grant variances from the requirements of the General Development Guidelines under unique or unusual circumstances. Section 16.6 Design Review Board Membership. The Design Review Board will be composed of not less than three (3) persons nor more than five (5) persons. The Design Review Board need not include any Member of the Association. All of the members of the Design Review Board will be appointed, removed and replaced by Declarant, in its sole discretion, until all the Lots comprising the Property are sold unless required otherwise by the Act, or such earlier time as Declarant may elect to voluntarily waive this right by notice to the Association, and at that time the Executive Board will succeed to Declarant's right to appoint, remove or replace the members of the Design Review Board. Section 16.7 Organization and Operation of Design Review Board. A. The term of office of each member of the Design Review Board will be one year, commencing January 1 of each year, and continuing until his successor shall have been appointed. Should a Design Review Board member die, retire or become incapacitated, or in the event of a temporary absence of a member, a successor may be appointed as provided below. B. So long as Declarant appoints the Design Review Board, Declarant will appoint the chairman. At such time as the Design Review Board is appointed by the Executive Board, the chairman will be elected annually from among the members of the Design Review Board by a majority vote of such members. In the absence of a chairman, the party responsible for appointing or electing the chairman may appoint or elect a successor, or if the absence is temporary, an interim chairman. C. The Design Review Board chairman will take charge of and conduct all meetings and will provide reasonable notice to each member of the Design Review Board prior to any meeting. The notice will set forth the time and place of the meeting, and notice may be waived by any member. D. The affirmative vote of majority of the members of the Design Review Board will govern its actions and be the act of the Design Review Board. E. The Design Review Board may avail itself of other technical and professional advice and consultants as its deems appropriate, and the Design Review Board may delegate its plan review responsibilities, except final review and approval, to one or more of its members or to consultants retained by the Design Review Board. Upon that delegation, the approval or disapproval of plans and specifications by such member or consultant will be equivalent to approval or disapproval by the entire Design Review Board. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 39 Section 16.8 Expenses. Except as provided in this Section below, all expenses of the Design Review Board will be paid by the Association and will constitute a Common Expense. The Design Review Board will have the right to charge a fee for each application submitted to it for review, in an amount which may be established by the Design Review Board from time to time, and such fees will be collected by the Design Review Board and remitted to the Association to help defray the expenses of the Design Review Board's operation. Further, the Design Review Board may retain the services of a third party consultant to assist the Design Review Board in reviewing a particular application. In such event, the Design Review Board may charge the applicant for the professional fees incurred in retaining such consultant. Section 16.9 Other Requirements. Compliance with the Association's design review process is not a substitute for compliance with County of Garfield building, zoning and subdivision regulations, and each Owner is responsible for obtaining all approvals, licenses, and permits as may be required prior to commencing construction. Further, the establishment of the Design Review Board and procedures for architectural review will not be construed as changing any rights or restrictions upon Owners to maintain and repair their Lots and improvements as otherwise required under the Association Documents. Section 16.10 Limitation of Liability. Neither the Design Review Board nor any individual Design Review Board member will be liable to any person for any official act of the Design Review Board in connection with submitted plans and specifications, except to the extent the Design Review Board or any individual Design Review Board member acted with malice or wilful wrongful intent. Approval by the Design Review board does not necessarily assure approval by the appropriate governmental or commission for the County of Garfield. Notwithstanding that the Design Review Board has approved plans and specifications, neither the Design Review Board nor any of its members will be responsible or liable to any Owner, developer or contractor with respect to any loss, liability, claim or expense which may arise by reason or such approval of the construction of the improvements. Neither the Executive Board, the Design Review Board, nor any agent thereof, nor Declarant, nor any of its partners, employees, agents or consultants will be responsible in any way for any defects in any plans or specifications submitted, revised or approved in accordance with the provisions of the Association Documents, nor for any structural or other defects in any work done according to such plans and specifications. In all events the Design Review Board will be defended and indemnified by the Association in any such suit or proceeding which may arise by reason of the Design Review Board's decisions. The Association, however, will not be obligated to indemnify each member of the Design Review Board to the extent that any such member of the Design Review Board is adjudged to be liable for malice or wilful wrongful intent in the performance of his duty as a member of the Design Review Board, unless and then only to the extent that the court in which such action or suit may be brought determines upon application that, despite the adjudication or liability but in view of all circumstances of the case, such person is fairly and reasonably entitled to indemnification for such expense as such court shall deem proper. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 40 Section 16.11 Enforcement. A. Any member or authorized consultant of the Design Review Board, or any authorized officer, Director, employee or agent of the Association may enter upon any Lot at any reasonable time after notice to the Owner, without being deemed guilty of trespass, in order to inspect improvements constructed or under construction on the Lot to determine whether the improvements have been or are being built in compliance with the Association Documents and the plans and specifications approved by the Design Review Board. B. Before any improvements on a Lot may be occupied, the Owner of the Lot will be required to obtain a temporary certificate of compliance issued by the Design Review Board indicating substantial completion of the improvements in accordance with the plans and specifications approved by the Design Review Board, and imposing such conditions for issuance of a final certificate of compliance issued by the Design Review Board as the Design Review Board may determine appropriate in its reasonable discretion. Without limiting the generality of the preceding sentence, the Design Review Board may require that the Owner deposit with the board such sums as may be necessary to complete the construction and landscaping on the Lot by a specified date. If the construction and landscaping is not completed as scheduled, the Design Review Board may apply the deposit to cover the cost of completing the work and enforce such other remedies as are available to the Association for the failure of the Owner to comply with these covenants, including, without limitation, the remedies set forth in this Section. C. Upon completion of construction, the Design Review Board will issue an acknowledged certificate of compliance setting forth generally whether, to the best of the Design Review Board's knowledge, the improvements on a particular Lot are in compliance with the terms and conditions of the General Development Guidelines. D. Every violation of these covenants is hereby declared to be and to constitute a nuisance, and every public or private remedy allowed for such violation by law or equity against a Member will be applicable. Without limiting the generality of the foregoing, these covenants may be enforced as provided below: (i) The Design Review Board may adopt a schedule of fines for failure to abide by the Design Review Board rules and the General Development Guidelines, including fines for failure to obtain any required approval from the Design Review Board. (ii) The Association, upon request of the Design Review Board and after reasonable notice to the offender and, if different, to the Owner, may enter upon any Lot at any reasonable time after notice to the Owner, without being deemed guilty of trespass, and remove any improvement constructed, reconstructed, refinished, altered or maintained in violation of these covenants. The Owner of the improvement will immediately reimburse the Association for all Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 41 expenses incurred in connection with such removal. If the Owner fails to reimburse the Association within thirty (30) days after the Association gives the Owner notice of the expenses, the sum owed to the Association will bear interest at the default rate from the date of the advance by the Association through the date of reimbursement in full, and all such sums and interest will be a Default Assessment enforceable as provided in Article XI. (iii) All improvements commenced on the Property will be prosecuted diligently to completion and will be completed within one (1) year after commencement, unless an exception is granted in writing by the Design Review Board. If an improvement is commenced and construction is then abandoned for more than ninety (90) days, or if construction is not completed within the required one (1) year period, then after notice and opportunity for hearing as provided in the Bylaws, the Association may impose a fine of $1,000 per day (or such other reasonable amount as the Association may set) to be charged against the Owner of the Lot until construction is resumed, or the improvement is completed, as applicable, unless the Owner can prove to the satisfaction of the Executive Board that such abandonment is for circumstances beyond the Owner's control. Such charges will be a Default Assessment and lien as provided in Article XI. Section 16.12 Binding Effect. The actions of the Design Review Board in the exercise of its discretion by its approval or disapproval of plans and other information submitted to it or with respect to any other matter before it will be conclusive and binding on all interested parties. ARTICLE XVII PROPERTY USE RESTRICTIONS Section 17.1 General Restriction. Subject to Declarant's rights under this Declaration, the Property will not be used for any purpose other than as set forth in these covenants, as permitted by any applicable ordinances of the County of Garfield and the laws of the State of Colorado and the United States, and as set forth in the Association Documents or other specific recorded covenants affecting all or any part of the Property. A. Use of Lots. Subject to Section 17.5, which permits certain business uses of a Lot, and Section 3.5.F, which permits model residences and offices under certain circumstances, each Lot may be used only for residential purposes in accordance with the restrictions applicable to a particular Lot set forth in this Declaration and the Plat. No business or commercial building may be erected on any Lot and, except as noted above, no business or commercial enterprise or other non-residential use may be conducted on any part of a Lot. B. Excavation. No excavation will be made except in connection with improvements approved as provided in these covenants. For purposes of this Section, "excavation" Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 42 means any disturbance of the surface of the land which results in a removal of earth, rock, trees, or other substance a depth of more than eighteen (18) inches below the natural surface of the land. During the course of any excavation, all reasonably necessary measures, including but not limited to the regular spraying or application of water to all such sites, shall be utilized to prevent the migration or escape of fugitive dust from the Property. All open excavated areas shall be promptly revegetated in accordance with the recommendations contained within Memorandum Regarding Weed Control and Revegetation attached hereto as Exhibit B. C. Water. Each structure located within the Property and designed for occupancy shall connect with the central water system made available by the Association. D. ISTS Design and Performance Standards. Each ISTS installed within the Property shall comply with the following requirements: (i) each system shall be designed by a professional engineer registered in the State of Colorado pursuant to Colo. Rev. Stat §12-25-111 (1999); (ii) each system design shall adequately address the soil percolation conditions present at the Lot site, which percolation rates shall be verified through appropriate on- site testing; (iii) each system shall be designed to adequately service at least (4) bedrooms; (iv) each system design, through the incorporation of recirculating trickling filter, sequencing batch reactors and/or other accepted on-site wastewater treatment system technologies, shall be capable of producing effluent quality which meets or exceeds the requirements of the United States Environmental Protection Agency for secondary wastewater treatment (30mg/L BOD and 30 mg/L suspended solids); (v) the tops of all tanks or risers extending therefrom shall be surface accessible to facilitate system testing and maintenance; and (vi) all absorption fields shall be sized to adequately service (4) bedrooms. Trench segments with at least (6) feet of separation shall be used whenever practically feasible. A minimum of (3) similarly sized trench segments should be installed with alternating values or a distribution box that allows isolation of each segment. Monitoring pipes shall be installed at the far end of each trench segment to allow inspection of field condition. If a bed must be utilized, single dosed zones shall be acceptable. If mounding is required to establish (4) feet of suitable soil, a single pressure dosed zone shall be acceptable. If a bed or mound is used, a minimum of (2) monitoring pipes shall be installed at the far end of the bed or mound. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 43 Following ISTS installation, each Owner shall provide the Association with as -built drawings depicting, in relation to the other improvements on the Lot, the Iocation and dimensions of the ISTS facilities including the absorption field and monitoring pipes, all applicable design, operation and maintenance specifications of the system's manufacturer and written certification from the designing engineer that the ISTS was installed in conformance with the requirements above stated and all applicable design specifications of the manufacturer. In the event the Association fails to properly implement and enforce the design and performance standards forth in this Section 17.1.D., the Board of County Commissioners for Garfield County, Colorado and its duly authorized representatives and agents, shall have all the right to enter upon the Property and implement and enforce such standards at the expense of the Association or exercise any other right or power afforded under this Declaration or the Act including, but not limited to, the initiation of appropriate proceedings in the District Court for Garfield County, Colorado, to compel enforcement of the same. The provisions of this Section 17.1.D shall not be amended or repealed by the Declarant, Association or Owners without the written consent of the Board of County Commissioners for Garfield County, Colorado. E. Wells/Drilling. No well from which water, oil or gas is produced will be dug, nor will storage tanks, reservoirs, or any installation of power, telephone or other utility lines (wire, pipe or conduit) be made or operated anywhere on the Property except in connection with water wells and works operated by the Association, public agencies or duly certified public utility companies; provided, however, that the foregoing will not prevent the drilling of or installation of additional water wells by Declarant or its assigns. The drilling or excavation for minerals shall not be permitted on the Property F. Antennae. No exterior radio, television, microwave or other antennae or antennae dish or signal capture and distribution device will be permitted without the prior written consent of the Design Review Board, and appropriate screening. G. Signs. No signs of any kind will be displayed to the public view on or from any portion of the Property except signs of Declarant or its affiliates, assigns or designees established during the period of Declarant control of the Executive Board or signs required by law or signs approved by the Design Review Board. No "For Sale" or "For Rent" sign may be posted on any Lot, except for standard "for sale" or "for rent" signs that do not exceed four square feet. H. Animals and Pets. Except as is expressly provided in this Declaration, no animals, livestock, or poultry of any kind will be kept, raised, or bred on any portion of the Property. Declaration of Protective Covenants Cerise Ranch Subdivision l6 -Oct -00 44 I. Containment. Household pets, such as dogs and cats, may not be permitted to run at large at any time. Those pets which, in the sole discretion of the Executive Board, make objectionable noise, endanger the health or safety of, or constitute a nuisance or inconvenience to the occupants or other Lots or wildlife shall be removed upon request of the Executive Board. If the pet owner fails to honor such request, the Executive Board may remove the pet. J. Drainage. No Owner will do or permit any work, place any landscaping or install any other improvements or suffer the existence of any condition whatsoever which will alter or interfere with the drainage pattern for the Property or the drainage berms, water or other drainage improvements constructed by Declarant, except to the extent such alteration and drainage pattern is approved in writing by the Design Review Board or the Executive Board, and except for rights reserved to Declarant to alter or change drainage patterns. K. Construction Regulations of the General Development Guidelines. All Owners and contractors will comply with the portions of the General Development Guidelines regulating construction activities. Such regulations may affect, without limitation, the following: trash and debris removal; sanitary facilities; parking areas; outside storage; restoration of damaged property; conduct and behavior of builders, subcontractors and Owners' representatives on the Property at any time; the conservation of landscape materials; and fire protection. L. Blasting. If any blasting is to occur, the Design Review Board and Declarant will be informed far enough in advance to allow them to make such investigation as they deem necessary to confirm that appropriate protective measures have been taken prior to the blasting. No blasting shall occur without such prior written approval. Notwithstanding the foregoing, no approval of any blasting by Declarant of the Design Review Board will in any way release the person conducting the blasting from all liability in connection with the blasting, nor will such approval in any way be deemed to make Declarant or the Design Review Board liable for any damage which may occur from blasting, and the person doing the blasting will defend and hold harmless and hereby indemnifies Declarant and the Design Review Board from any such expense or liability. Declarant or the Design Review Board may impose any reasonable conditions and restrictions, including time and date restrictions, on all blasting. M. Temporary Structures. No temporary structures will be permitted except as may be determined to be necessary during construction and as specifically authorized by the Design Review Board. N. No Conversion. No Owner shall construct or convert any carport, garage, attic or other unfinished space, other than a basement, to finished space for use as an apartment or other integral part of the living area on any residence without approval of the Design Review Board, the Association and the Garfield County Building Department. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 45 O. No Outside Clotheslines. No laundry or wash will be dried or hung outside on the Property. P. Motorized Vehicles. No trucks, trail bikes, recreational vehicles, motor homes, motor coaches, snowmobiles, campers, trailer, boats or boat trailers or similar vehicles, other than passenger automobiles or pickup or utility trucks with a capacity of one-half ton or less, or any other motorized vehicles will be parked, stored or in any manner kept or placed on any portion of the Property except in an enclosed garage. This restriction, however, will not be deemed to prohibit commercial and construction vehicles and construction mobile offices, in the ordinary course of business, from making deliveries or otherwise providing services to the Property or for Declarant or the other Owners. Q. Parking and Auto Repair. No automobiles or other vehicles will be parked in any street or upon any portion of the Property, except within garages, carports or designated parking areas, except as provided herein. No work on automobiles or other vehicle repair will be performed in any visible or exposed portion of the Property except in emergencies. R. Abandoned, Inoperable, or Oversized Vehicles. No abandoned or inoperable vehicles of any kind will be stored or parked on any portion of the Property, other than within enclosed garages, except as provided below. "Abandoned or inoperable vehicle" is defined as any vehicle which has not been driven under its own propulsion for a period of three weeks or longer; provided, however, this will not include vehicles parked by Owners while on vacation or residing away from the Property. A written notice describing the "abandoned or inoperable vehicle" and requesting its removal may be personally served upon the Owner or posted on the unused vehicle. If such vehicle has not been removed within seventy-two (72) hours after notice has been given, the Association will have the right to remove the vehicle without liability, and the expense of removal will be a Default Assessment charged against the Owner as provided in Section XI. All unsightly or oversized vehicles, snow removal equipment, garden maintenance equipment, and all other unsightly equipment and machinery may be required by Declarant or the Executive Board to be stored at a designated location or locations. "Oversized" vehicles, for purposes of this Section, will be vehicles which are too high to clear the entrance to a residential garage. S. Outside Burning. There will be no exterior fires, except barbecues and braziers and incinerator fires contained within facilities or receptacles and in areas designated and approved by the Design Review Board. No Owner will permit any condition upon its portion of the Property which creates a fire hazard or is in violation of fire prevention regulations. No Owner shall permit any fireworks, except as permitted by the rules of the Association and in compliance with applicable law. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 46 T. Noise. No exterior horns, whistles, bells or other sound devices except security devices used exclusively to protect the security of the Property or improvements, will be placed or used on any portion of the Property. U. Lighting. All exterior lighting of the improvements and grounds on the Property, or interior lighting visible outside of any building, will be subject to regulation by the Design Review Board. V. Obstructions. There will be no obstruction of any walkways or bike paths or interference with the free use of those walkways and paths except as may be reasonably required in connection with repairs. The Owners, their families, tenants, guests and invitees are granted non-exclusive easements to use the walkways and paths within the Property. That use will be subject to the Association rules adopted by the Executive Board from time to time. W. Fence Restriction. Fencing will be restricted throughout the Property to facilitate wildlife movements, optimize habitat availability, and reduce wildlife mortality. If peripheral fencing of the Property is required to restrict domestic livestock grazing on adjacent properties, fencing shall employ a three strand barbed wire fence, with strands located at eighteen (18) thirty (30) and forty-two inches above the main ground level. (i) If wood rail fencing is used it shall not exceed forty-two (42) inches in height and twelve (12) inches in width (top view), and an opening in the lower one-half ('/2) of at least sixteen (16) inches to allow passage of deer fawns and elk calves. Other fence materials such as wood slats, electric wires, or other synthetic materials may be used but shall not exceed forty-two (42) inches in height. (ii) Owners shall be permitted a privacy fence, exceeding forty-two (42) inches in height with no openings, to enclose up to two thousand five hundred (2,500) square feet, providing it is immediately adjacent to the residential unit and is contained entirely within the Lots' building envelope. (iii) If security fencing is required such fencing shall not be less than seven (7) feet in height and must be so constructed that wildlife movement between and through the Property and Lots is not lost or impaired. X. Camping and Picnicking. No camping or picnicking will be allowed within the Property except in those areas designated for those purposes. The Executive Board, in its discretion, may ban or permit public assemblies and rallies within the Property. Y. House Numbers. Each dwelling unit will have a house number with a design and location established by the Design Review Board. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 47 Z. Nuisance. No obnoxious or offensive activity will be carried on within the Property, nor will anything be done or permitted which will constitute a public nuisance. No noise or other nuisance will be permitted to exist or operate upon the Property so as to be offensive or detrimental to any other part of the Property or its occupants. AA. Hazardous Material. No hazardous or toxic materials (as defined under any local, state or Federal law, regulation or ordinance) will be stored, generated, emitted from, released from, transported to or from, disposed of or used on the Property, except for normal household purposes in such quantities as do not violate environmental laws. BB. Wetlands. No improvement shall be constructed within 25 feet of any Wetlands boundary as depicted upon the Plat, and no residence shall be constructed outside the boundaries of the building envelope existing upon certain Lots as depicted upon the Plat. CC. Tanks. No elevated tanks of any kind shall be erected, placed, or permitted upon any Lot. DD. General Practices Prohibited. The following practices are prohibited within any portion of the Property: (i) Allowing construction suppliers and contractors to clean their equipment other than at a location designated for that purpose by the Design Review Board; (ii) Removing any rock, plant material, top soil or similar items from any property of others; (iii) Carrying firearms on the Property; (iv) Use of surface water for construction; (v) Careless disposition of cigarettes and other flammable materials; (vi) Capturing, trapping or killing of wildlife within the Property, except in circumstances posing an imminent threat to the safety of persons using the Property; (vii) Any activity which materially disturbs, threatens or destroys the vegetation, wildlife, wetlands, or air or water quality within the Property or which use excessive amounts of water or which result in unreasonable levels of sound or light pollution; or (viii) The dumping or burial of any trash or refuse. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 48 Section 17.2 Use of Property During Construction. It will be expressly permissible and proper for any Owner acting with the prior written consent of the Design Review Board and for Declarant, and their respective employees, agents, independent contractors, successors, and assigns involved in the construction of improvements on, or the providing of utility service to, the Property, or other real property owned by Declarant, to perform such activities and to maintain upon portions of the Common Area as they deem necessary such facilities as may be reasonably required, convenient, necessary or incidental to such construction and development of the Property. This permission specifically includes, without limiting the generality of the foregoing, maintaining storage areas, construction yards, model residences, sales offices, management offices and equipment and signs. However, no activity by any Owner will be performed and no facility will be maintained on any portion of the Property in such a way as to unreasonably interfere with the use, enjoymentor access of such Owner or his tenants or guests of and to his Lot. If any Owner's use under this provision is deemed objectionable by the Design Review Board, then the Design Review Board, in its sole discretion, may withdraw this permission. Section 17.3 Partition or Combination of Lots. No part of a Lot may be partitioned or separated from any other part thereof. No Lots may be combined, but the Owner of two or more contiguous Lots may build one single family dwelling unit on the contiguous Lots, upon complying with all applicable requirements of the County of Garfield, and with all applicable General Development Guidelines, including, without limitation, procedures for adjusting building sites otherwise drawn for the Lots to accommodate a larger dwelling unit, minimum and maximum limitations of living area that may be constructed on any given number of contiguous Lots, and measures necessary to preserve any easements reserved with respect to the contiguous Lots. The fact that two or more contiguous Lots may be owned by one person and developed with one single family dwelling unit will not affect the number of votes or the amount of Assessments allocated to the Lots. If the Owner is required by the County of Garfield or any other governmental authority or by a Mortgagee to replat the Lots in order to construct improvements on the Lots, the number of votes and the allocation of Assessments to the Lots after replatting will equal the sum of the votes and Assessments allocated to the Lots before replatting. Each Lot will be conveyed, transferred, gifted, devised, bequeathed, encumbered or otherwise disposed of, as the case may be, with all appurtenant rights and interests created by law or by this Declaration, including the Owner's membership in the Association and the right to use the Common Area, and with the appropriate allocation of voting rights and liability for Assessments established for the Lot as provided in this Declaration. Section 17.4 Leasing. The Owner of a Lot will have the right to lease his Lot, subject to the following conditions: (i) All leases will be in writing. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 49 (ii) The lease shall be specifically subject to the Association Documents, and any failure of a tenant to comply with the Association Documents will be a default under the lease, enforceable by the Association. (iii) The Owner shall be liable for any violation of the Association Documents committed by the Owner's tenant, without prejudice to the Owner's right to collect any sums by the Owner on behalf of the tenant. Section 17.5 Businesses. No Owner shall conduct any business, trade, garage sale, moving sale, rummage sale or similar activity on any Lot, except that an Owner or occupant residing on a Lot may conduct business activities within the residence so long as: (a) the existence or operation of the business activity is undetectable to the senses of sight, sound or smell from outside the residence; (b) the business activity conforms to all zoning requirements for the Property; (c) the business activity may be carried out within the confines of the residence and is free from regular visitation of the residence by clients, customers, suppliers or other business invitees or door-to-door solicitation of residents of the Property; and (d) the business activity is consistent with the residential character of the Property; or such business activity satisfies the definition of home-based day care contained within the zone district text for the Cerise Ranch Subdivision. This subsection shall not apply to any activity conducted by the Declarant or a builder approved by the Declarant with respect to the development and sale of the Property, or the Declarant's use of any Lot. Section 17.6 Compliance with Laws. Subject to the rights of reasonable contest, each Owner will promptly comply with the provisions of all applicable laws, regulations, ordinances, and other governmental or quasi -governmental regulations with respect to all or any portion of the Property. Each owner will abide by any wildlife regulations imposed by the Association or any agency or authority having jurisdiction over the Property. Section 17.7 Enforcement. Notwithstanding anything in the foregoing to the contrary, the Executive Board may prohibit any activity, business or otherwise, which, in the sole direction of the Executive Board, constitutes a nuisance, or a hazardous or offensive use, or threatens the security, safety, or quiet enjoyment of other residents of the Property. The Association may take such action as it deems advisable to enforce these covenants as provided in this Declaration. In addition, the Association will have a right of entry on any part of the Property for purposes of enforcing these Articles, and any costs incurred by the Association in connection with such enforcement which remain unpaid thirty (30) days after the Association has given notice of the cost to the Owner and otherwise complied with Act will be subject to interest at the default rate from the date of the advance by the Association through the date of payment in full by the Owner, and will be treated as a Default Assessment enforceable as provided in Article XI. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 50 Section 17.8 Use of the Words "Cerise Ranch Subdivision" or Logo. No Person shall use the words "The Cerise Ranch Subdivision" or any derivative thereof, or any other name given to the Property by the Declarant, or the logo of the development in any printed or promotional material without Declarant's prior written consent. However, Owners may use the term "The Cerise Ranch Subdivision" in printed or promotional matter where such term is used solely to specify that particular property is located within The Cerise Ranch Subdivision and the Association shall each be entitled to use the word "The Cerise Ranch Subdivision" in its name. Section 17.9 Agreements with Adjacent Property Owners. The owners of some or all of the nonresidential properties adjacent to the Property may be obligated to share in certain costs associated with the maintenance, repair, replacement and insurance of portions of the Common Area, if any, which are used by or benefit jointly the owners of such nonresidential properties and the Owners within the Property, by agreement, contract or covenant to share costs. The owners of the nonresidential properties shall not be subject to the restrictions contained in this Declaration except as otherwise specifically provided herein. ARTICLE XVIII ADDITIONAL RESTRICTIONS FOR WILDLIFE PROTECTION Section 18.1 Wildlife Restrictions. In order to preserve, protect and promote the well being of The Cerise Ranch's existing wildlife, the use of the Property, and each Lot thereon, and the rights and easements of enj oyment in and to the Common Areas created hereunder are restricted as follows: A. All areas identified and depicted upon the Wetland Areas shall be preserved in their present natural character and condition to as great a degree as possible and no activity shall be permitted thereon which shall modify or alter their existing character and condition. B. No tree or vegetation removal shall be permitted within the Common Area except as may be necessary, in the determination of the Association, to remove a dangerous condition or to control an invasive species. C. Except as allowed under Section 4.16, no more than two (2) domestic animals shall be permitted to be kept upon any Lot. As used herein, "domestic animal" shall specifically exclude all horses, livestock, poultry or other farm animals of any kind except cats and dogs. Owners shall be entitled to keep dogs on their property pursuant to the following restrictions and limitations and subject to any additional rules and regulations which may be promulgated by the Association: Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 51 (i) No more than one dog, including puppies over the age of ten (10) weeks, shall be kept by any Lot Owner at any time upon any one (1) Lot. (ii) Dogs shall be kept under the control of their Owners at all times and shall not be permitted to run free or to cause a nuisance in the Property. No dogs shall be allowed beyond the boundaries of the Lot owned by the person(s) where the dog is housed unless leashed and accompanied by a person in full control of such dog. (iii) Dogs shall not be allowed to bark continuously, which shall be defined as barking for a continuous fifteen (15) minute period, including successive barks or a series of barks which repeat or resume following a brief or temporary cessation. (iv) When not accompanied by a person, all dogs shall be leashed, chained, "electric fenced," or kenneled. The location of kennels shall be subject to review of the Design Review Board. (v) All dogs shall be kept reasonably clean, and all Lots shall be free of refuse and animal waste. (vi) Should any dog chase or molest deer, elk or any domestic animals or persons, or destroy or disturb property of another, the Association shall be authorized to prohibit the Owner or any tenant, invitee, event, guest or other user of a Lot from continuing to maintain the offending animal on his property and may dispose of that animal, if necessary, to protect wildlife or other Owners, Persons or property. The offending dog owner shall be provided written notice of such action at least two (2) days before disposal occurs. Within such two (2) day period, the offending dog shall be kenneled at a licensed kennel. All charges associated with action taken by the Association may be assessed against either the Owner and/or the dog owner, or both, at the Association's sole option. (vii) Notwithstanding the foregoing, no animal may be kept upon a Lot which, in the sole discretion and judgment of the Executive Board results in any annoyance or is obnoxious to Owners within the Subdivision. D. The Association and all Owners shall not accumulate or store trash or garbage outside of their residential structures unless such trash or garbage is contained within a container certified as bear -proof by the North American Bear Society, the National Park Service or Colorado Division of Wildlife; provided, however, that Owners may use trash or garbage containers which do not meet the certifications above described so long as: (i) said containers are placed outside no earlier than one (1) hour prior to the regularly scheduled time for trash collection by the Owner's (s') waste service provider; and Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 52 (ii) said containers are returned to the residential structure(s) no later than one (1) hour following trash collection by the Lot Owner's (s') waste service provider. E. The Association and all Owners shall not feed, bait, salt or utilize any other means or artifice to attract wildlife to the Lots or Property. This limitation shall not apply to bird feeders or bird houses which may be located and utilized within the Property. F. The Association and Owners may restrict wildlife from landscaping and other isolated sensitive areas by using temporary fencing and other passive means which will not unreasonably restrict the free movement of wildlife within the Property. G. The Association and all Owners are prohibited from chasing, scaring, disturbing, hazing, or other using any other form of harassment to coerce big game (deer and/or elk) off of the Common Area. H. The Association and all Owners hereby waive and shall hold the Colorado Division of Wildlife harmless from, any and all claims for damages to landscaping improvements or ornamental plants located on the Lots or Common Area resulting from the activities of big game (deer and/or elk). I. The Association and the Owners shall be responsible for the removal and proper disposal of all animal carcasses located upon the Common Area or Lots, as may be appropriate. J. The Association shall assess and enforce penalties against Owners violating any of the wildlife restrictions set forth in this Section 18.1 as follows: One Hundred Dollars ($100.00) for the first violation committed by an Owner; Two Hundred Dollars ($200.00) for the second violation; Three Hundred Dollars ($300.00) for the third violation; and for each succeeding violation the fine increases in One Hundred Dollar ($100.00) increments. The dollar amounts of the fines may be changed upon the approval of the Executive Board. K. The restrictions of this Section 18.1 shall be enforceable in perpetuity and shall not be amended or terminated by action of the Association, Owners or Declarant nor by any provision for termination of this Declaration. The restrictions of this Section 18.1 shall be enforceable in any and all manner provided in this Declaration by the Association, Owners, Declarant, Garfield County or any state or federal agency charged with the preservation of wildlife and wetlands areas. Any such enforcement action shall entitle the enforcing party to recovery of damages equal to the cost of restoration of the property, and such enforcing party shall be entitled to an award of reasonable attorney fees and costs of enforcement, including but not limited to court Declaration of Protective Covenants Cerise Ranch Subdivision l6 -Oct -00 53 costs, expert witness fees, costs of depositions and exhibits. Declarant shall provide a copy of the wildlife brochure to the Lot Owner(s) at the closing of sale of each Lot. L. The Association shall maintain at all times as part of the regularly kept records of the Association, the wildlife educational brochure attached hereto and incorporated herein and attached hereto as Exhibit D. ARTICLE XIX MORTGAGEE'S RIGHTS The following provisions are for the benefit of holders, insurers, or guarantors of First Mortgages on Lots. To the extent applicable, necessary, or proper, the provisions of this Article XIX apply to this Declaration and also the Articles and Bylaws of the Association. Section 19.1 Approval Requirements. Unless at least 51% of the Mortgagees holding First Mortgages against any portion of the Property (based on one vote for each Mortgage owned), and at least 67% of the Owners (other than Declarant) have given their prior written approval, the Association shall not be entitled to: (i) By act or omission seek to abandon, partition, subdivide, sell, or transfer all or part of the Common Area (provided, however, that the granting of easements or rights of way for public utilities or for other public purposes consistent with the intended use of such Common Area shall not be deemed a transfer within the meaning of this clause); (ii) Subject to the expansion rights of Declarant set forth in Article XV, change the method of determining the obligations, Assessments, dues, or other charges which may be levied against an Owner; (iii) Fail to maintain insurance required to be maintained under this Declaration; (iv) Use hazard insurance proceeds for losses to improvements in the Common Area for other than the repair, replacement, or reconstruction of such property. The failure of a Mortgagee to object in writing to an amendment within thirty (30) days after receipt of request for approval shall be deemed an approval of such amendment. Section 19.2 Title Taken by Mortgagee. Any Mortgagee holding a First Mortgage of record against a Lot who obtains title to the Lot pursuant to remedies exercised in enforcing the Mortgage, including foreclosure of the Mortgage or acceptance of a deed in lieu of foreclosure, will Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 54 be liable for all Assessments assessed against such Lot, whether such Assessments were assessed prior to or after Mortgagee has taken title to such Lot. Section 19.3 Distribution of Insurance or Condemnation Proceeds. In the event of a distribution by the Association of insurance proceeds or condemnation awards allocable among the Lots for losses to, or taking of, all or part of the Common Area, neither the Owner nor any other person shall take priority in receiving the distribution over the right of any Mortgagee who is a beneficiary of a First Mortgage against the Lot. Section 19.4 Right to Pay Taxes and Charges. Mortgagees may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against any Common Area, and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy for such Common Area. ARTICLE XX DURATION OF COVENANTS AND AMENDMENT Section 20.1 Term. The covenants and restrictions of this Declaration shall run with and bind the land in perpetuity, subject to the termination provisions of the Act. Section 20.2 Amendment. This Declaration, or any provision of it, may be amended at any time by Owners holding not less than 67% of the votes possible to be cast under this Declaration at a meeting of the Owners called for that purpose, except as limited by Article XIX. Any amendment must be executed by the President of the Association and recorded, and approval of such amendment may be shown by attaching a certificate of the Secretary of the Association to the recorded instrument certifying the approval of a sufficient number of Owners of the amendment. No amendment to the Declaration which affects the rights of Declarant reserved hereunder shall be valid without the written consent of Declarant. Notwithstanding the foregoing, Declarant, acting alone, reserves to itself the right and power to modify and amend this Declaration and/or the Plat to the fullest extent permitted under the Act. Further, the Executive Board may, pursuant to the provisions of the Act, petition the district court in which the Property is situated to amend this Declaration as provided in the Act. Section 20.3 Revocation. This Declaration shall not be revoked, except as provided in Article XIV regarding total condemnation, without the consent of all of the Owners evidenced by a written instrument duly recorded. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 ARTICLE XXI SPECIAL DISTRICT 55 The Association shall have the power, and is hereby authorized, to contract with and to cooperate with a Special District in order to ensure that their respective responsibilities are discharged. The Association is further authorized to act on behalf of its Members to ensure that the level of services provided by the Special District, if created, is consistent with the community -wide standard. ARTICLE XXII GENERAL PROVISIONS Section 22.1 Declarant Powers. A. Notwithstanding anything in this Declaration to the contrary, the Declarant hereby reserves the following special Declarant rights to the fullest extent permitted by the Act: To complete improvements indicated on plats and maps filed with this Declaration or Supplemental Declaration; to exercise any development right (as defined in the Act); to maintain sales offices, management offices, signs advertising the Property and models; to use easements through the Common Areas for the purpose of making improvements within the Property or within real estate which may be added to and made subject to this Declaration; to make the Property subject to a master association; to merge or consolidate a common interest community of the same form of ownership; and to appoint or remove any officer of the Association or any Executive Board member during any period of Declarant control. All such special Declarant rights shall, to the maximum extent permitted by law, be exercisable by Declarant for a period of twenty (20) years after the Declarant no longer controls the Executive Board. B. Notwithstanding anything to the contrary herein, no rights or powers reserved to Declarant hereunder shall exceed the time limitations or permissible extent of such rights or powers as restricted under the Act. Any provision in this Declaration in conflict with the requirements of the Act shall not be deemed to invalidate such provision as a whole but shall be adjusted as is necessary to comply with the Act. Section 22.2 Enforcement. Except as otherwise provided in this Declaration, the Executive Board, Declarant, or any Owner (provided the Executive Board fails to take action after reasonable notice is given to the Executive Board by such Owner) shall have the right to enforce, by a proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Executive Board of the Association, Declarant, or by any Owner to enforce any covenant or restriction contained in this Declaration shall in no event be deemed a waiver of the right to do so thereafter. The prevailing party in any legal action arising under this Declaration shall be entitled to reimbursement of all costs of such action including, without limitation, reasonable attorneys' fees. Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 56 Section 22.3 Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. Section 22.4 Conflicts Between Documents. In case of conflict between this Declaration and the Articles and the Bylaws of the Association, this Declaration shall control. In case of conflict between the Articles and the Bylaws, the Articles shall control. Declaration of Protective Covenants Cerise Ranch Subdivision 1 6 -Oct -00 57 WINTERGREEN HOMES, LLC, a Colorado limited liability company By: STATE OF COLORADO ) ) ss. COUNTY OF Garfield ) Art Kleinstein, Manager The foregoing instrument was acknowledged before me this , by Art Kleinstein as Wintergreen Homes, LLC, a Colorado limited liability company. WITNESS MY HAND AND OFFICIAL SEAL. MY COMMISSION EXPIRES: Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 58 Notary Public EXHIBIT A (Mumbert Family Cerise Property) Declaration of Protective Covenants Cerise Ranch Subdivision l6 -Oct -00 59 aj, Uiil •FAY', i 1/G' MUMBERT FAMILY CERISE PROPERTY DESCRIPTION A PARCEL OF LAND SITUATED IN THE E.1/2NW1/4 SECTION 32, GOVERNMENT LOT 7, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTY OF GARFIELD, STATE OF COLORADO; SAID PARCEL BEING MORE PARTICULARY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SECTION 33, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE, THENCE S 76°23'23" W A DISTANCE OF 2744.88 FEET TO A POINT ON THE NORTH -SOUTH CENTERLINE OF SECTION 32, ALSO BEING A POINT ON THE WEST BOUNDARY LINE OF PHASE 1, CERISE RANCH SUBDIVISION, A REBAR AND CAP L.S. #26626 IN PLACE, THE POINT OF BEGINNING; THENCE S 01°41'13" W ALONG SAID NORTH -SOUTH CENTERLINE OF SECTION 32, ALSO BEING SAID WESTERLY LINE OF PHASE 1, CERISE RANCH SUBDIVISION, A DISTANCE OF 1093.06 FEET TO A POINT ON THE NORTHERLY RIGHT-OF- WAY OF STATE HIGHWAY NO. 82, A REBAR AND CAP L.S. #26626 IN PLACE; THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY, N 78°56'10" W A DISTANCE OF 66.82 FEET TO A REBAR AND CAP L.S. #26626 IN PLACE; THENCE LEAVING SAID RIGHT-OF-WAY, N 02°27' 10" E A DISTANCE OF 273.17 FEET TO A REBAR AND CAP L.S. #26626 IN PLACE; THENCE N 78°56'08" W A DISTANCE OF 550.72 FEET TO A REBAR AND CAP L.S. #26626 IN PLACE; THENCE S 02°27' 10" W A DISTANCE OF 273.18 FEET TO A POINT ON SAID NORTHERLY RIGHT-OF-WAY OF STATE HIGHWAY NO. 82; THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY, N 78°56'10" W A DISTANCE OF 65.35 FEET; THENCE LEAVING SAID RIGHT-OF-WAY, N 02°49'32" E A DISTANCE OF 1066.52 FEET TO A REBAR AND CAP ILLEGIBLE IN PLACE; THENCE S 80°56'02" E A DISTANCE OF 658.02 FEET TO THE POINT OF BEGINING; SAID PARCEL CONTAINING 13.046 ACRES, MORE OR LESS. f o�. ,ate • �� I � — � • O • ' 24669 2;f u ,A 8/z5/0o;�' • K \\VP\99\Oi4\\IO.IBERT LEGAL. doc 923 Cooper Avenue Glenwood Springs, CO 81601 phone 970 945-8676 • fax 970 945-2555 14 Inverness Drive East, Ste 8-144 Englewood, CO 80112 phone 303 925-0544 • fax 303 925-0547 EXHIBIT B (Memorandum Regarding Weed Management and Revegetation) Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 60 Cerise Ranch Memorandum To: Jeff Laurien From: The Land Studio/Doug Pratte Re: Weed Management and Revegetation per Steve Anthony's Recommendation in Memo to Garfield County dated March 13, 2000 Date: August 8, 2000 Jeff: Please find listed below the seed mix intended to revegetate all disturbed areas of Cerise Ranch due to disturbance from utility construction, road construction, rockfall mitigation structures, debris flow mitigation structures, and relocated irrigation ditches. This is a mix I have used in other areas of the Roaring Fork Valley and contains species indigenous to the region. Wildflowers have been added to the grass mix to provide some diversity and additional color in any disturbed areas. I have also included some notes about broadcasting seed and hydroxnulching disturbed areas Note that though this plan is intended to revegetate the disturbance caused by infrastucture construction, individual homeowners are required to revegetate all areas on their property disturbed by construction of their residence, driveway, and utilities to their residence. Also, please find attached a letter from Kim, Johnson of Prima Plant Services Inc. related to a weed management plan for Cerise Ranch. Kim is an expert in this field and has developed a good plan to deal with weed control. We will most likely continue to work with her in this regard through the course of this project. SEEDING MIX FOR SEEDED AREAS Common Name Botanical Name % mix rate* Grasses Indian Rice Grass Mountain Bromc Tufted Hairgrass Slender Wheatgrass Sheep Fescue Canby Bluegrass Wildflowers Colorado Columbine Perennial Gaillardia Scarlet Gilia Blue Flax Achnatherum hymenoides Bromus marginatus Deschampsia caespitosa Elymus trachycaulus Festuca avina Poa canbyi Aquillegia coerula Gaillardia aristata 1pomopsis aggregata Linum lewisii 10% 1.2 10% 1.9 10% .2 10% .8 10% .4 10% .4 5% 3 5% .5 5% .3 5% .3 C.' Mountain lupine Lupinus alpestris 5% 1.5 Rocky mountain penstcmon Penrtemon srrictus 5% .2 Scarlet Globemallow Sphaeralcea coccinca 5% .2 Showy Goldencyc Viguiera multiflora 5°,6 .1 • Seeding rate is in PLS lbsJacrc +Tips for Broadcast Seeding Soils "accept" broadcast seed better if they have been very recently raked or harrowed to eliminate crusting. After broadcasting the seed, cover the seed by harrowing, chaining, raking or using a similar technique. Raking or harrowing immediately before and after broadcast is highly recommended. Care should be taken when seeding to provide uniform coverage (even seed application rates) over the site. Seeding should not be attempted on windy days. *Tips for Using Hydromulch An organic tackifier is typically added to the slurry to enhance the durability of the applied mulch cover. Although typically applied at a rate of approximately 1,500 pounds per acre (1680 kg/ha), it is more effective at a rate of 3,000 pounds per acre (3360 kg/ha) with a guar gum tackifier. *'rime of Seeding When seed is planted in nonirrigated conditions, the planting season must be chosen to take advantage of natural moisture. Seeding success is greatly influenced by temperature and precipitation; the best germination occurs when temperatures are above freezing and precipitation is high. In Colorado, seasons that reflect these conditions for cool season species are usually the early spring and late fall; seeding should not be done when the ground is frozen. For most sites, proper seeding time is dependent on: A period of adequate moisture for seed germination; A period of adequate moisture for early seedling growth and establishment; Adequate soil temperatures for seed growth (Ostler and Allred 1987). It is important to seed a site as soon as final grading and topsoil placement have occurred to minimize erosion and weed establishment on the project * Taken from "Native Plant Revegetation Guide for Colorado, Caring for the Land Series, Volume III" published October 1998 by the Colorado Department of Natural Resources Prim Mut sores, lac eco 90 Anion Rd. • C+tirbondass, CO. $1823 Phone' FAX (970) 0e3-0113 pr(rrrap ropris.nat Doug Pette Land Studio, Inc_ FAX 927-4261 RE: Weed Management Plan for the Cerise Ranch Subdivision, Garfield C Dau Doug, Thank you for showing me the ranch property last weck. The bulk excellent condition with irrigated pasture, wetlands, and pinyon/juniper silo entire property, but in the areas I passed I saw the following woods which County noxious weed list: plumeless thistle, canada thistle, houndatonguc Fortunately, the infestations ore light in general and located on ditches, alo there hu boon some ground disturbance in the past. Until such time that the subdivided property is developed, the o efforts to treat the individual patches of weeds either by selective spot spra means (cuttieg) at least twice during the growing season to prevent fio production. It is much easier to control a light lnfbstntion than to play c population grows unchecked for several seasons. When new roads, utilities, end ponds arc being constructed, the stockpiled and then replaced on disturbed areas as it is known to be rebid Imported soils are frequently contaminated with a wide range of weed receiving site and can create a worsened weed problem for many years. T grades are established and topsoil is spread, reseeding (preferably with a should take place with a mix of grasses and broadleaf plants to match the site. A Sprinkler system should be installed to allow the seedlings to snake possible during the first couple of growing seasons. The goal is to prod competitive cover of desirable species right away so weeds will have less c problematic. During thc first growing season a very selective spot trcetn nt of should be done at least two times, after the grammes have matured to reco backpack sprayer s ideal for this purpose. Digging the weeds out is not cause additional soll disturbruice which continues thc cycle of weed seeds Colorado Department of Agriculture Licensed Pesticide A Member of the International Society of Arboriculture - Rocky Mo and the Colorado Association of Lawn Care Professio 7, 2000 unty f the parcel is in a. I did not walk the on the Garfield common burdock fencelinea, or where should continue his or mechanical and seed -up after the weed ing topsoil should be ly wood free. not found on the telt' alter final romu ch cover) tive species on the much headway as a healthy and to become ly emerging weeds ed levels. A mmended as this can vading bare dirt. licator Chapter In the two or three seasons after development, noxious weed control (cutti�, spot spraying) should take place twice yearly in the disturbed areas until the have become well established and cover the bare soil. In the areas which are not to be disturbed by construction such as t wetlands areas, weed scouting and control are still necessary at least twice not known if grazing or haying activities will continue, the land should still (fertility, irrigation, cutti EXHIBIT C (Specified Additional Property) Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 61 tG- PHASE II, SPECIFIED ADDITIONAL PROPERTY DESCRIPTION A PARCEL OF LAND SITUATED IN THE SW1/4SE1/4 SECTION 29, LOTS 2. 7, 8, 20, AND 21 SECTION 32. AND THE SW1/4NW1/4NE1/4 AND LOTS 1, 3. 14, 15, SECTION 33, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, COUNTIES OF GARFIELD AND EAGLE. STATE OF COLORADO; SAID PARCEL BEING MORE PARTICULARY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 33, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE, THE POINT OF BEGINNING; THENCE S 89°14'52" E ALONG THE NORTHERLY LINE OF SAID SECTION 33 A DISTANCE OF 2743.09 FEET TO THE NORTH QUARTER CORNER OF SAID SECTION 33, A REBAR AND CAP ILLEGIBLE FOUND IN PLACE AND REPLACED WITH A 3-1/4" ALUMINUM CAP L.S. #19598; THENCE LEAVING SAID NORTHERLY LINE S 01°41'36" W ALONG THE NORTH -SOUTH CENTERLINE OF SAID SECTION 33 A DISTANCE OF 664.14 FEET TO THE N -N- C 1/64TH CORNER OF SAID SECTION 33, A REBAR AND CAP L.S. #26626 IN PLACE; THENCE S 89°20'01" E, ALONG THE NORTHERLY LINE OF SAID SW1/4NW1/4NE1/4 A DISTANCE OF 688.32 FEET TO THE NW -NE 1/64TH CORNER OF SAID SECTION 33, A REBAR AND CAP L.S. #14111 IN PLACE; THENCE LEAVING SAID NORTHERLY LINE S 01°43'07" W ALONG THE EASTERLY LINE OF SAID SW1/4NW1/4NE1/4 A DISTANCE OF 663.71 FEET TO THE C -W -NE 1/64TH CORNER OF SAID SECTION 33 A REBAR AND CAP L.S. #14111 IN PLACE; THENCE N 89°17'29" W ALONG THE SOUTHERLY LINE OF SAID SW1/4NW1/4NE1/4 A DISTANCE OF 688.02 FEET TO THE N -C 1/16TH CORNER OF SAID SECTION 33, A REBAR AND CAP L.S. #14111 IN PLACE AND REPLACED WITH A 3-1/4" ALUMINUM CAP L.S. #19598;THENCE N 89°17'29" W ALONG THE NORTHERLY LINE OF LOT 4 OF SAID SECTION 33 A DISTANCE OF 752.39 FEET TO THE NORTHWEST CORNER OF SAID LOT 4, A 3-1/4" ALUMINUM CAP L.S. #19598 SET IN PLACE; THENCE S 02°29'54" W 1146.11 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY OF STATE HIGHWAY NO. 82; THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 2964.79 FEET AND A CENTRAL ANGLE OF 07°12'40", A DISTANCE OF 373.14 FEET, (CHORD BEARS N 75°48'46 W 372.89 FEET) TO A 3-1/4" ALUMINUM CAP L.S. #20677 IN PLACE; THENCE CONTINUING ALONG SAID NORTHERLY RIGHT-OF-WAY N 80°48'38" W 213.65 FEET TO A 3- 1/4" ALUMINUM CAP L.S. #20677 IN PLACE; THENCE CONTINUING ALONG SAID NORTHERLY RIGHT-OF-WAY N 81°30'58" W 1391.80 FEET TO A 3-1/4" ALUMINUM CAP L.S. #20677 IN PLACE; THENCE CONTINUING ALONG SAID NORTHERLY RIGHT-OF-WAY 923 Cooper Avenue Glenwood Springs, CO 81601 phone 970 945-8676 • fax 970 945-2555 14 Inverness Drive East, Ste B-144 Englewood, CO 80112 phone 303 925-0544 • fax 303 925-0547 CERISE RANCH. PHASE PROPERTY DESCRIPTION PAGE 2 OF 2 N 81°30'58" W 809.98 FEET TO A POINT; THENCE LEAVING SAID NORTHERLY RIGHT-OF-WAY N 06°46'09" W 1405.90; THENCE N 08°14'49" W 63.57 FEET; THENCE N 00°00'00" E 233.37 FEET; THENCE N 06°16'05' E 375.64 FEET TO A POINT ON THE NORTHERLY LINE OF SAID SECTION 32; THENCE ALONG SAID NORTHERLY LINE S 88°8'20" E, 982.76 FEET TO THE POINT OF BEGINNING; SAID PARCEL CONTAINING 183.353 ACRES. MORE OR LESS. W 19598 �•� K.\WP\99\054\FUTURE-DEV•DESC. DOC Declaration of Protective Covenants Cerise Ranch Subdivision 16 -Oct -00 EXHIBIT D (Wildlife Brochure) 62 JOHN A. THULSON EDWARD MULHALL, JR. SCOTT BALCOMB LAWRENCE R. GREEN TIMOTHY A. THULSON LORI J. M. SATTERFIELD EDWARD B. OLSZEWSKI DAVID SANDOVAL BALCOMB & GREEN, P.C. ATTORNEYS AT LAW P. 0. DRAWER 790 818 COLORADO AVENUE GLENWOOD SPRINGS, COLORADO 81602 Telephone: 970.945.6546 Facsimile: 970.945.8902 September 28, 2000 Via Hand Delivery Jeff Laurien Garfield County Building and Planning Department 109 8th Street Glenwood Springs, CO 81601 Re: Cerise Ranch RECEIVED SEP 2 8 2000 OF COUNSEL: KENNETH BALCOMB Dear Jeff: Please find enclosed herewith a copy of the Subsoil Study for Cerise Ranch. I have already provided a copy to Mike Erion. I will call you tomorrow to discuss this Very truly yours, BALCOMB & GREEN, P.C. By TAT:csh Timothy A,lfhulson ;, ECEIVED SEP 2 8 2fl[EJ Gtech Hepworth-Pawlak Geotechnical, Inc. 5020 County Road 154 Glenwood Springs, Colorado 81601 Phone: 970-945-7988 Fax: 970-945-8454 hpgeo@hpgeotech.com SUBSOIL STUDY FOR FOUNDATION DESIGN PROPOSED 300,000 GALLON WATER STORAGE TANK CERISE RANCH GARFIELD COUNTY, COLORADO JOB NO. 100 106 SEPTEMBER 27, 2000 PREPARED FOR: CERISE RANCH C/O WINTERGREEN HOMES ATTN: JEFF SPANEL P.O. BOX 978 AVON, COLORADO 81620 HEPWORTH - PAWLAK GEOTECHNICAL, INC. September 27, 2000 Cerise Ranch c/o Wintergreen Homes Attn: Jeff Spanel P.O. Box 978 Avon, Colorado 81620 Job No. 100 106 Subject: Report Transmittal, Subsoil Study for Foundation Design, Proposed 300,000 Gallon Water Storage Tank, Cerise Ranch, Garfield County, Colorado. Dear Mr. Spanel: As requested, we have conducted a subsoil study for the proposed water tank at the subject site. The tank will be an above ground steel structure and located in the uphill northwestern part of the subdivision. Subsurface conditions encountered in the exploratory borings drilled in the proposed tank area were variable and generally consist of silty to clayey sand and rock fragments above medium hard to very hard siltstone-sandstone bedrock of the Eagle Valley Evaporite. Groundwater was not encountered to the drilled depths of 23 to 281 feet. The subsoils and bedrock materials were slightly moist to moist. The proposed water tank can be founded on a compacted granular base placed on the natural bedrock materials and compacted structural fill. Foundations can be designed for an allowable bearing pressure of 3,500 psf, excluding the weight of water. The report which follows describes our exploration, summarizes our findings, and presents our recommendations. It is important that we provide consultation during design, and field services during construction to review and monitor the implementation of the geotechnical recommendations. If you have any questions regarding this report, please contact us. Sincerely, HEPWORTH ;PAWLAK GEOTECHNICAL, INC. Steven L. Pawlak, P.E. Rev. by: DEH SLP/ksw TABLE OF CONTENTS PURPOSE AND SCOPE OF STUDY 1 PROPOSED CONSTRUCTION 1 SITE CONDITIONS 2 FIELD EXPLORATION 2 SUBSURFACE CONDITIONS 2 DESIGN RECOMMENDATIONS 3 FOUNDATIONS AND SUBGRADE 3 SITE GRADING 4 SURFACE DRAINAGE 4 LIMITATIONS 4 REFERENCES 6 FIGURE 1 - LOCATION OF EXPLORATORY BORINGS FIGURE 2 - LOGS OF EXPLORATORY BORINGS FIGURE 3 - LEGEND AND NOTES FIGURES 4 & 5 - SWELL CONSOLIDATION TEST RESULTS TABLE I - SUMMARY OF LABORATORY TEST RESULTS H P GEOTECH PURPOSE AND SCOPE OF STUDY This report presents the results of a subsoil study for a proposed 300,000 gallon water storage tank to be located at Cerise Ranch, Garfield County, Colorado. The project site is shown on Fig. 1. The purpose of the study was to develop recommendations for the foundation design. The study was conducted in accordance with our proposal for geotechnical engineering services to Cerise Ranch dated September 8, 2000. Evaluation of potential geologic impacts on the site are beyond the scope of our work. The geologic conditions were previously addressed by CTL/Thompson (1998 and 2000). A field exploration program consisting of exploratory borings was conducted to obtain information on subsurface conditions. Samples of the subsoils obtained during the field exploration were tested in the laboratory to determine their classification, compressibility or swell and other engineering characteristics. The results of the field exploration and laboratory testing were analyzed to develop recommendations for the proposed tank foundation and site grading. This report summarizes the data obtained during this study and presents our conclusions, design recommendations and other geotechnical engineering considerations based on the proposed construction and the subsurface conditions encountered. PROPOSED CONSTRUCTION The proposed tank will be an above ground steel structure with a design bottom elevation of 6485 feet. The tank will have a capacity of 300,000 gallons with a height of 24 feet and a diameter of 48 feet. Grading for the structure will be relatively extensive with cut depths between about 20 to 25 feet along the uphill perimeter. The downhill edge of the tank will be roughly at the natural ground surface. A 12 inch aggregate base course layer and 2 inches of oiled sand placed on a prepared subgrade is proposed for the tank support. The water supply lines will access the site from the south along the proposed driveway and utility easement. If the tank location, grading or size change significantly from that described, we should be notified to reevaluate the recommendations contained in this report. H -P GEOTECH 2 SITE CONDITIONS The tank site is located in the higher elevation, northwest part of the subdivision. The terrain in the area is hilly with steep slopes down to the southwest. The tank site is situated in a narrow drainage with a flow on the order of a few gallons per minute at the time of our field work. A much larger drainage with heavier flow is located about 100 to 200 feet west-southwest of the tank site. There is about 15 feet of elevation difference across the tank footprint. Vegetation consists of scrub oak, juniper and pinon trees and sparse grass and weeds. The cuts in the tank site exposed rocky colluvial soils with some gypsum and siltstone-sandstone in the deepest cut area near Boring 1. FIELD EXPLORATION The field exploration for the project was conducted on September 14, 2000. Two exploratory borings were drilled at the locations shown on Fig. 1 to evaluate the subsurface conditions. The borings were advanced with 4 inch diameter continuous flight augers powered by a track mounted CME -45 drill rig. The borings were logged by a representative of Hepworth-Pawlak Geotechnical, Inc. Samples of the subsoils were taken with a 2 inch I.D. spoon sampler. The sampler was driven into the subsoils at various depths with blows from a 140 pound hammer falling 30 inches. This test is similar to the standard penetration test described by ASTM Method D-1586. The penetration resistance values are an indication of the relative density or consistency of the subsoils and hardness of the bedrock. Depths at which the samples were taken and the penetration resistance values are shown on the Logs of Exploratory Borings, Fig. 2. The samples were returned to our laboratory for review by the project engineer and testing. SUBSURFACE CONDITIONS Graphic logs of the subsurface conditions encountered at the site are shown on Fig. 2. The subsoils encountered were variable and generally consist of loose to H -P GEOTECH 3 medium dense silty to clayey sand with rock fragments above medium hard to very hard siltstone-sandstone bedrock of the Eagle Valley Evaporite. At Boring 1, weathered and broken bedrock was encountered at the existing cut depth. At Boring 2, the colluvial soils were encountered to a depth of about 12 feet overlying the siltstone-sandstone bedrock. Laboratory testing performed on samples obtained from the borings included natural moisture content and density, and finer than sand size gradation analyses. Results of swell -consolidation testing performed are relatively undisturbed samples, presented on Figs. 4 and 5, generally indicate the colluvial soils have moderate compressibility and the bedrock materials have low compressibility under light to moderate loading. The laboratory testing is summarized in Table I. No free water was encountered in the borings to the drilled depths of 23 to 28' feet at the time of drilling or when they were checked 6 days later. The subsoils and bedrock materials were generally slightly moist to moist with depth. DESIGN RECOMMENDATIONS FOUNDATIONS AND SUBGRADE Considering the subsurface conditions encountered in the exploratory borings and the nature of the proposed construction, we believe the tank can be founded on a compacted granular base placed on the natural bedrock materials and compacted structural fill. The colluvial soils are compressible under loading when wetted and should be completely removed. Foundations can be designed for an allowable bearing pressure of 3,500 psf, excluding the weight of the water. Based on experience, we expect settlements to be up to about 1 to 2 inches. The colluvial soils and any existing fill should be removed to expose the bedrock materials. Subexcavated areas should be backfilled with granular soils (such as river terrace gravels) compacted to at least 100 % of standard Proctor density at near optimum moisture content. The structural fill should extend down and out at an effective grade of 1 horizontal to 1 vertical but at least 5 feet beyond the confining ring of the base materials. The tank base materials should be placed and compacted to the project specifications. A representative of the geotechnical H -P GEOTECH 4 engineer should observe the tank subgrade for bearing conditions and evaluate structural fill construction for placement and compaction. SITE GRADING Excavation for the proposed tank site will be relatively extensive and require deep cuts into the steep hillside. We understand that the cut slopes will be retained with a permanent soil nail wall. Fills placed downhill of the tank and for roadway access should be compacted to at least 95 % of the maximum standard Proctor density near optimum moisture content. Prior to any new embankment fill placement, the subgrade should be carefully prepared by removing all vegetation, topsoil and existing fill, and compacting to 95% standard Proctor density. The fills should be benched into the portions of the hillside exceeding 20 % grade. Permanent unretained cut and fill slopes should be graded at 2 horizontal to 1 vertical or flatter and protected against erosion by revegetation or other means. If seepage is encountered in cuts, a flatter slope or subsurface drainage could be needed to maintain stability. A subdrain could be required across the drainage area to prevent water flow into the tank site. SURFACE DRAINAGE The following drainage precautions should be observed during construction and maintained at all times after the water tank has been completed: 1) Inundation of the tank excavation should be avoided during construction. 2) Embankment fills should be adjusted to near optimum moisture and compacted to at least 95 % of the maximum standard Proctor density. 3) The ground surface around the tank should be sloped to prevent ponding. 4) The hillside drainage through the tank site should be diverted by a swale with adequate cross section around the tank site to pass possible peak flows including bulking for debris flows. 5) LIMITATIONS This report has been prepared in accordance with generally accepted geotechnical engineering principles and practices in this area at this time. We make no H -P GEOTECH -5 warranty either expressed or implied. The conclusions and recommendations submitted in this report are based upon the data obtained from the exploratory borings drilled at the locations indicated on Fig. 1, the proposed type of construction and our experience in the area. Our findings include interpolation and extrapolation of the subsurface conditions identified at the exploratory borings and variations in the subsurface conditions may not become evident until excavation is performed. If conditions encountered during construction appear different from those described in this report, we should be notified so that re-evaluation of the recommendations may be made. This report has been prepared for the exclusive use by our client for design purposes. We are not responsible for technical interpretations by others of our information. As the project evolves, we should provide continued consultation and field services during construction to review and monitor the implementation of our recommendations, and to verify that the recommendations have been appropriately interpreted. Significant design changes may require additional analysis or modifications to the recommendations presented herein. We recommend on-site observation of excavations and foundation bearing strata and testing of structural fill by a representative of the geotechnical engineer. Sincerely, HEPWORTH - PAWLAK CAL, INC. V �4-vf- . • j "�• 15222 r* flgl.;.oNat �POo F OF COQ -Q_- Steven L. Pawlak, P. Reviewed by: li Daniel E. Hardin, P. SLP/ksw cc: High Country Engineering - Attn: Eric Tuin H -P GEOTECH -6 REFERENCES CTL/Thompson, Inc. 1998, Preliminary Geologic Hazard Evaluation and USDA Soil Conservation Service Data for Cerise Ranch, Garfield & Eagle Counties, Colorado, Job No. GS -2309 dated March 26, 1998. CTL/Thompson, Inc., 2000, Revised Geologic Hazard Evaluation, Cerise Ranch, Garfield & Eagle Counties, Colorado, Job No. GS -7953 dated February 3, 2000. H P GEOTECH 6500 t I / 6475 6525 6500 CREEK 1 t 1 PROPOSED DIVERSION � 1 \ 1 1 1 1 1 1 1 1 1 1 k ACCESS 1 1 ROAD 1 1 1 1 APPROXIMATE SCALE 1" = 60' 6550 \ \ 1 / 1 1 1 1 1 11 6550 6525 6450 6425 100 106 • f HEPWORTH - PAWLAK GEOTECHNICAL, INC. CERISE RANCH ROAD CUL DE SAC \ \ \ \ \ \ \ \ '6475 \ \ \ • 6500 \\ - 6450 6425 LOCATION OF EXPLORATORY PITS Fig. 1 a) LL c 0 0 w 6495 6490 6485 6480 6475 6470 6465 BORING 1 BORING 2 ELEV. = 6492' ELEV. = 6490.5' BOTTOM ELEV.=6485' PROPOSED TANK 29/12 WC=7. 8 50/5 50/5 WC=15.1 DD=121 50/6 111 17/12 WC=5.5 DD=116 —200=35 39/12 50/2 50/4 WC=10.2 DD=121 Note: Explanation of symbols is shown on Fig. 3. 6495 6490 6485 6480 6475 6470 6465 Elevation — Feet 100 106 HEPWORTH - PAWLAK GEOTECHNICAL, INC. LOGS OF EXPLORATORY BORINGS Fig. 2 LEGEND: 72.7 b SAND AND GRAVEL (SM—GM); silty to clayey, some clay and silt layers, loose to medium dense, slightly moist, light brown, shale fragments and gypsum pieces. WEATHERED CLAYSTONE—SILTSTONE; possible gypsum, fractured, medium hard, slightly moist, mixed brown. Eagle Valley Evaporate. SILTSTONE—SANDSTONE; some claystone shale and possible gypsum, very hard, occasional cemented layers, slightly moist, mixed gray—brown. Eagle Valley Evaporite. Relatively undisturbed drive sample; 2—inch I.D. California liner sample. 29/12 Drive sample blow count; indicates that 29 blows of a 140—pound hammer falling 30 inches were required to drive the California sampler 12 inches. —> Depth at which boring caved when checked on September 20, 2000. TPractical rig refusal in cemented rock. NOTES: 1. Exploratory borings were drilled on September 14, 2000 with a 4—inch diameter continuous flight power auger. 2. Locations of exploratory borings were measured approximately by pacing from the tank center line stake. 3. Elevations of exploratory borings were obtained by level survey assuming ground at center line stake elevation = 6493 feet. 4. The exploratory boring locations and elevations should be considered accurate only to the degree implied by the method used. 5. The lines between materials shown on the exploratory boring logs represent the approximate boundaries between material types and transitions may be gradual. 6. No free water was encountered in the borings at the time of drilling or when checked 6 days later. Fluctuation in water level may occur with time. 7. Laboratory Testing Results: WC = Water Content ( % ) DD = Dry Density ( pcf ) —200 = Percent passing No. 200 sieve. 100 106 HEPWORTH - PAWLAK GEOTECHNICAL, INC. LEGEND AND NOTES Fig. 3 Compression Compression 0 1 2 3 4 Moisture Content = 7.8 percent Dry Density = 120 pcf Sample of: Weathered Claystone — Siltstone From: Boring 1 at 4 Feet Compression upon wetting 0.1 1.0 10 APPLIED PRESSURE — ksf 100 Moisture Content = 15.1 percent Dry Density = 121 pcf Sample of: Siltstone From: Boring 1 at 14 Feet swim _•41, No movement iiiiliiiiiiiiiii 111111 upon wetting 0.1 1.0 10 APPLIED PRESSURE — ksf 100 100 106 HEPWORTH - PAWLAK GEOTECHNICAL, INC. SWELL -CONSOLIDATION TEST RESULTS Fig. 4 Compression Compression — Expansion 0 1 2 3 Moisture Content = 5.5 percent Dry Density = 116 pcf Sample of: Silty Clayey Sand with Rock Fragments From: Boring 2 at 4 Feet Compression upon wetting 0.1 0 1 1.0 10 APPLIED PRESSURE — ksf 100 Moisture Content = 10.2 percent Dry Density = 121 pcf Sample of: Claystone—Siltstone From: Boring 2 at 19 Feet Expansion upon wetting 0.1 1.0 10 APPLIED PRESSURE — ksf 100 100 106 HEPWORTH — PAWLAK GEOTECHNICAL, INC_ SWELL—CONSOLIDATION TEST RESULTS Fig. 5 HEPWORTH-PAWLAK GEOTECHNICAL, INC. TABLE I SUMMARY OF LABORATORY TEST RESULTS JOB NO. 100 106 SAMPLE LOCATION NATURAL MOISTURE CONTENT 1%I NATURAL GRADATION PERCENT Al TERBERG LIMITS UNCONFINED COMPRESSIVE STRENGTH IPSFI SOIL OR BEDROCK TYPE BORING DEPTH (feet) DRY DENSITY (pc() GRAVEL l%) SAND )%) PASSING NO. 200 SIEVE LIQUID LIMIT (%) PLASTIC INDEX I%) 1 4 7.8 120 Weathered Claystone- Siltstone 14 15.1 121 Siltstone 2 4 5.5 116 35 Silty Clayey Sand with Rock Fragments 19 10.2 121 Claystone-Siltstone SCHMUESER GORDON MEYER ENGINEERS SURVEYORS Friday, October 17, 2003 Garfield County Commissioners c/o Mark Bean 108 8th Street Suite 201 Glenwood Springs, CO 81601 4 I 18 W. 6TH, SUITE 200 GLENWOOD SPRINGS, CO 8 160I 970-945- 1 004 FX: 970-945-5948 OCT 2 o 2003 RE: Mid Valley Metropolitan District - Cerise Ranch Intent to Serve P.O. BOX 2155 ASPEN, CO 8161 2 970-925-6727 FX: 970-925-4 1 57 P.O. BOX 3088 CRESTED BUTTE, CO 81 224 970-349-5355 FX: 970-349-5358 Dear County Commissioners, The purpose of this letter is to indicate to you that the Mid Valley Metropolitan District (the "District") has the intent to provide the Cerise Ranch with sewer service. Currently, the District is lit the finai completion stages of its expanded Waste Water Treatment Facility ("WWTF") and intends to have the new WWTF online by the end of the month. The first phase of the new facility increases the capacity of the District from 0.320 MGD ("Million Gallons per Day") to 0.500 MGD. The second, future phase of the WWTF will give an ultimate capacity of 1.000MGD. Cerise Ranch's capacity is approximately 0.025 MGD, and is well within the capacity of the new WWTF. Schmueser Gordon Meyer, Inc. serves as the District's Engineer. If you have any questions, please contact me at (970)945-1004 or by email at gregs@sgm-inc.com. Best Regards Schmueser n Meyer, Inc. Greg Sc roeder, P.E. Cc: Theodore K. Guy, MVMD Board President Louis Meyer, SGM Jeff Spanel, Inter -Mountain Engineering, Ltd. (via Fax (970) 949-9339 & Mail) Lee Leavenworth, Leavenworth & Karp I:\1481\01501 \0I501.c\141 - Cerise Ranch Annexation \20031017_GarfieldCountyCommissioners.doc Page 1 of 1 JOHN A. THULSON EDWARD MULHALL, JR. SCOTT BALCOMB LAWRENCE R. GREEN TIMOTHY A. THULSON LORI J. M. SATTERFIELD EDWARD B. OLSZEWSKI DAVID SANDOVAL CHRISTOPHER L. GEIGER ANNE MARIE CALLAHAN BALCOMB & GREEN, P.C. ATTORNEYS AT LAW P. 0. DRAWER 790 818 COLORADO AVENUE GLENWOOD SPRINGS, COLORADO 81602 Telephone: 970.945.6546 Facsimile: 970.945.8902 December 12, 2000 Jeff Laurien Garfield County Planning Office 109 8th Street, Suite 303 Glenwood Springs, Colorado 81601-3303 Dear Jeff: OF COUNSEL: KENNETH BALCOMB Re: Final Plat for the Cerise Ranch Subdivision, Phase I/Computation of School Impact Fees Under the appraisal of the Cerise Ranch Property performed by High Country Appraisal Associates on August 30, 2000 — a copy of which I have provided herewith for your reference — the "as is" value of the 296.378 acres constituting this property was valued at $4,750,000.00. Applying the criteria set forth in §9:81 of the Garfield County Subdivision Regulations, this would provide Cerise Ranch with an unimproved per acre market value of $16,026.83. Multiplied by the Single Family Land Dedication Standard of 0.02 acres times the number of units contained within the Phase I (27) would result in a cash in lieu Impact Fee of $8,654.58. I will be meeting with Mildred Alsdorf and Jim Louithauser today at 3:30 for the purpose of filing the final plat documents and I would like to confirm this number prior to this meeting so that we may make the appropriate payment. I look forward to discussing this matter with you at 2:00 today. Very truly yours, BALCOMB & G By TAT:nmk /I i, i "othy A. " ulson AGREEMENT This Agreement is made and entered into this _ day of , 2000, by and between Wintergreen Homes, LLC, a Colorado limited liability company ("Owner") and the Cerise Ranch Property Owners Association, Inc., a Colorado non-profit corporation ("Association"); WHEREAS, Owner is the owner and developer of certain real property located within Garfield County, Colorado, also known as the Cerise Ranch Subdivision and more particularly described on the Final Plat recorded in the Office of the Clerk and Recorder for Garfield County, Colorado on , at Reception No. ; and WHEREAS, the rights and obligations of the Owner and the Association instant to the Cerise Ranch Subdivision's potable water supply facilities, internal road system, utilities, common areas, landscaping, recreational facilities, open space easement, and other facilities of the subdivision are set forth within the Declaration of Protective Covenants, Conditions and Restrictions ("Declaration") for the Cerise Ranch Subdivision recorded in the Office of the Clerk and Recorder for Garfield County, Colorado on at Book , Page , and Reception No. ; and WHEREAS, a Subdivision Improvements Agreement ("SIA") between owner and the Board of County Commissioners for Garfield County recorded in the Office of the Clerk and Recorder for Garfield County, Colorado on , at Book , Page , and Reception No. , sets forth the obligations of the owner instant to the construction of the subdivision's potable water supply system, internal road system, utilities, common areas, landscaping, recreational facilities, and other facilities with the subdivision; and WHEREAS the parties hereto wish to enter into an Agreement between themselves in order to reflect each others duties and responsibilities instant to the control and regulation of the Cerise Ranch Subdivision components pursuant to the Declaration and SIA above described. NOW THEREFORE, for consideration of the mutual promises contained herein the parties agree as follows: 1. The Owner shall execute a Quit Claim Deed simultaneous herewith transferring to the Association the following: Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 1 A. Colorado Division of Water Resources Well Permit Nos. 053765-F and 055764-F B. 52.0 acre feet per year of water associated with Basalt Water Conservancy District Water Allotment Contract No. 355. C. All roads and utilities as well as all access, road, utility and easements within the Cerise Ranch Subdivision, shown and described on the Final Plat. D. The open space easements, trail easements and recreational facilities within the subdivision shown and described on the Final Plat. E. The potable water facilities and all appurtenant facilities including but not limited to, the water storage tank, wells, ditches, pipelines, pump houses, etc. F. The utility easement more particularly described on Exhibit A, attached hereto. 2. The Association agrees to accept such conveyance as set forth in paragraph 1, above, and agrees to own, operate, maintain, repair and replace said water rights, roads, utilities, easements, common areas and recreational facilities for the benefit of the lot owners of the Cerise Ranch Subdivision in strict compliance with the terms and conditions of the following: A. All conditions of approval for the Cerise Ranch Subdivision as set forth by the Board of County Commissioners for Garfield County, Colorado in Resolution No. 2000-73, recorded within the Office of the Clerk and Recorder for Garfield County, Colorado on September 8, 2000, at Book 1208, Page 248, and Reception No. 569108; and B. The terms, conditions and provisions contained with in the Declaration. C. The conditions as set forth in or otherwise attached to the well permits, the water right decrees and the Water Allotment Contract with the Basalt Water Conservancy District. 3. The Owner agrees to complete the obligations set forth in the SIA and to install those improvements within the Cerise Ranch Subdivision in accordance with said agreement. Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 2 4. The Owner hereby assigns to the Association any and all guarantees and warranties associated with the facilities and improvements conveyed to the Association which the Owner has received or shall receive. 5. Except as expressly provided herein, the Association herein agrees to indemnify and hold harmless the Owner and its agents for any claims associated with the conveyance, use, operation, maintenance, repair and replacement of the easements, potable water facilities, and all property conveyed to the Association as described in paragraph 1, above. The Association agrees to comply with the terms and conditions of, and hereby assumes the Owners' obligations under the agreements and instruments set forth in paragraphs 1 and 2 above. 6. Subject to the Owners' obligation in paragraph 3, by accepting the herein described property, easements, facilities, and all related obligations, responsibilities, duties and requirements, the Association herein releases the Owner, its agent and assigns, from all future responsibility, liability or obligation accompanying or associated with the subdivision property and facilities conveyed as described in paragraphs 1 and 2, above, and releases the Owner from any and all claims that may hereafter be made with respect to such items. The Association accepts such property "as is" without guarantee or warranty from the Owner of any kind. Nothing in this paragraph is intended to waive the Owners' obligation set forth in paragraph 3, above. 7. The warranties and obligations of the parties set forth herein which require performance after the conveyance of the deed(s) the subject of this Agreement, shall survive the conveyance of said deed(s) and shall not merge therewith. 8. This Agreement shall be binding upon and enure to the benefits of the heirs, successors and assigns of the parties hereto. 9. This Agreement shall be recorded with the Clerk and Recorder for Garfield County, Colorado. Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 3 IN WITNESS WHEREOF, this Agreement is executed on the day and year set forth above. STATE OF COLORADO ) ss. COUNTY OF GARFIELD WINTERGREEN HOMES, LLC By Art Kleinstein, Manager CERISE RANCH PROPERTY OWNERS ASSOCIATION By Art Kleinstein, President The above and foregoing was acknowledged before me by Art Kleinstein, Manager of Wingreen Homes, LLC, this day of , 2000. WITNESS my hand and notarial seal. NOTARY PUBLIC My commission expires: Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 4 STATE OF COLORADO ) ss. COUNTY OFGARFIELD ) The above and foregoing was acknowledged before me by Art Kleinstein, President of Cerise Ranch Property Owners Association, this _ day of , 2000. WITNESS my hand and notarial seal. NOTARY PUBLIC My commission expires: Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 5 QUIT CLAIM DEED THIS DEED, made this day of , 2000, between WINTERGREEN HOMES, LLC, a Colorado limited liability company, ("Grantor"), and THE CERISE RANCH HOMEOWNERS ASSOCIATION, a Colorado non-profit corporation, ("Grantee"): WITNESSETH, That the Grantor, for and in consideration of the sum of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold, conveyed and QUIT CLAIMED, and by these presents does remise, release, sell, convey and QUIT CLAIM unto the Grantee, its successors and assigns forever, all the right, title, interest, claim and demand which the Grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Garfield and State of Colorado described as follows: See Exhibit A attached hereto and incorporated herein by this reference. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. WINTERGREEN HOMES, LLC By: Art Kleinstein, Manager STATE OF COLORADO ) ) ss COUNTY OF The foregoing instrument was acknowledged before me by Art Kleinstein, Manager o Wintergreen Homes, LLC. this day of , 2000, by Witness my hand and official seal. My commission expires: Notary Public Exhibit A (Agreement between Wintergreen Homes, LL C and Cerise Ranch Property Owners Association) EXHIBIT A A. Colorado Division of Water Resources Well Permit Nos. 053765-F and 055764-F. B. 52.0 acre feet per year of water associated with Basalt Water Conservancy District Water Allotment Contract 355. C. All access and utility easements easements within the Cerise Ranch Subdivision, shown and described on the Final Plat for the Cerise Ranch Subdivision recorded in the records of the Clerk and Recorder for Garfield County, Colorado on , as Reception No. ("Final Plat"). D. The open space easements, trail easements and recreational facilities within the subdivision shown and described on the Final Plat. E. The potable water facilities and all appurtenant thereto including but not limited to, water storage tanks, wells, ditches, pipelines, pump houses, and other related improvements of which Grantor is required to construct and convey to Grantee pursuant to the Agreement executed by Grantor and Grantee on and recorded in the records of the Clerk and Recorder for Garfield County, Colorado on at Book , Page and Reception No. F. The utility easement more particularly described on Exhibit A, attached hereto Exhibit A to Quit Claim Deed Wintergreen Homes, LLC and Cerise Ranch Homeowners Association Exhibit A (Utility Easement Description) Exhibit A to Quit Claim Deed Wintergreen Homes, LLC and Cerise Ranch Homeowners Association rf/Gfi `�OUit/T.QY �tiG/iYEE.-P/ ✓G CERISE RANCH SUBDIVISION, PHASE 1 OFF SITE UTILITY EASEMENT DESCRIPTION A 60.00 FOOT AND 40.00 FOOT WIDE STRIP OF LAND SITUATED IN THE SW1/4SE1/4 SECTION 29, GOV'T LOTS 2, 7, 8, 20, AND 21 SECTION 32, AND THE SW 1/4NW 1/4NE1/4 AND GOV'T LOTS 1, 3, 14, 15, SECTION 33, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, GARFIELD COUNTY, STALE OF COLORADO; SAID STRIP OF LAND BEING 30.00 FEET TO EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE NORTHWEST CORNER OF SECTION 33, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE S 58°40'08" W 1193.21 FEET TO A POINT ON THE EASTERLY BOUNDARY OF CERISE RANCH SUBDIVISION, PHASE 1, SAID POINT ALSO BEING ON THE CENTERLINE OF LARKSPUR DRIVE, SAID POINT ALSO BEING ON THE CENTERLINE OF SAID EASEMENT, THE POINT OF BEGINNING; THENCE ALONG THE CENTERLINE OF SAID EASEMENT ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 23°57'26", A DISTANCE OF 167.25 (CHORD BEARS N 74°29'47" E 166.04 FEET); THENCE CONTINUING ALONG SAID CENTERLINE N 86°28'30" E 252.00 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 42°12'06", A DISTANCE OF 294.62 FEET (CHORD BEARS S 72°25'27" E 288.01 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 51°19'24" E 266.31 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 51°41'02", A DISTANCE OF 451.03 FEET (CHORD BEARS S 77°09'55" E 435.89 PEET); THENCE CONTINUING ALONG SAID CENTERLINE N 76°59'35" E 225.99 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 350.00 FEET AND A CENTRAL ANGLE OF 51°24'49", A DISTANCE OF 314.07 (CHORD BEARS S 77°18'01" E 303.64 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 51°35'36" E 171.49 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 56°38'21", A DISTANCE OF 494.27 FEET (CHORD BEARS S 79°54'46" E 474.39 FEET); THENCE CONTINUING ALONG SAID CENTERLINE N 71°46'03" E 146.83 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 350.00 FEET AND A CENTRAL ANGLE OF 19°05'34", A DISTANCE OF 116.63 FEET (CHORD BEARS N 81°18'50" E 116.09 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 89°08'23" E 76.74 FEET TO THE END OF SAID 60.00 FOOT EASEMENT AND THE BEGINNING OF SAID 40.00 FOOT EASEMENT LYING 20.00 FEET TO EACH SIDE OF AND CONTINUING ALONG SAID CENTERLINE S 35°22'41" E 161.71 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 923 Cooper Avenue Glenwood Springs, CO 81601 phone 970 945-8676 • fax 970 945-2555 14 Inverness Drive East, Ste B-144 Englewood, CO 80112 phone 303 925-0544 • fax 303 925-0547 CERISE RANCH SUBDIVISION, PHASE 1 UTILITY EASEMENT DESCRIPTION Page 2of2 400.00 FEET AND A CENTRAL ANGLE OF 41°12'24", A DISTANCE OF 287.68 FEET (CHORD BEARS S 14°46'29" E 281.52 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 05°49'43" W 224.92 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 10°39'16", A DISTANCE OF 74.38 FEET (CHORD BEARS S 00°30'05" W 74.27 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 04°49'32" E 123.13 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 300.00 FEET AND A CENTRAL ANGLE OF 94°45'48", A DISTANCE OF 496.18 FEET (CHORD BEARS S 42°33'22" W 441.53 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 89°56'16" W 57.85 FEET TO THE TERMINUS, WHENCE THE NORTHWEST CORNER OF SAID SECTION 33 BEARS N 35°01'08" W 2691.29 FEET. TOGETHER WITH A DRAINAGE AND UTILITY EASEMENT SITUATED IN GOV'T LOT 3 OF SECTION 33, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, GARFIELD COUNTY, STA 1'E OF COLORADO; SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SECTION 33, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE S 41°45'03" E 2798.80 FEET TO A POINT OM THE EAS"1'ERLY RIGHT-OF-WAY OF THE ABOVE DESCRIBED 40.00' EASEMENT, THE POINT OF BEGINNING; THENCE ALONG THE EASTERLY RIGHT- OF-WAY OF SAID 40.00' WIDE EASEMENT ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 320.00 PNET AND A CENTRAL ANGLE OF 39°55'57", A DISTANCE OF 223.03 FEET (CHORD BEARS N 15°08'26" E 218.54 FEET); THENCE LEAVING SAID EASTERLY RIGHT-OF-WAY S 87°30'06" E 7.52 FEET; THENCE S 02°29'54" W 621.66 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY OF STATE HIGHWAY NO. 82; THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 2964.79 FEET AND A CENTRAL ANGLE OF 00°42'00", A DISTANCE OF 36.23 FEET (CHORD BEARS N 72°33'27" W 36.23 FEET); THENCE LEAVING SAID NORTHERLY RIGHT-OF-WAY N 02°29'54" E 144.24 FEET; THENCE S 58°59'49" W 68.97 FEET; THENCE N 31°00'11" W 40.00 FEET; THENCE N 58°59'49" E 95.45 FEET; THENCE N 02°29'54" E 193.85 FEET; THENCE N 54°53'35" W 24.16 FEET TO THE POINT OF BEGINNING. KJ WP/99/054/UTIL-ES NT-DESC. DOC 141v• •s 1959. • flioni• �- nun11 R Ec/sr • AR,,.•.F� a. AGREEMENT This Agreement is made and entered into this day of , 2000, by and between Wintergreen Homes, LLC, a Colorado limited liability company ("Owner") and the Cerise Ranch Property Owners Association, Inc., a Colorado non-profit corporation ("Association"); WHEREAS, Owner is the owner and developer of certain real property located within Garfield County, Colorado, also known as the Cerise Ranch Subdivision and more particularly described on the Final Plat recorded in the Office of the Clerk and Recorder for Garfield County, Colorado on , at Reception No. ; and WHEREAS, the rights and obligations of the Owner and the Association instant to the Cerise Ranch Subdivision's potable water supply facilities, internal road system, utilities, common areas, landscaping, recreational facilities, open space easement, and other facilities of the subdivision are set forth within the Declaration of Protective Covenants, Conditions and Restrictions ("Declaration") for the Cerise Ranch Subdivision recorded in the Office of the Clerk and Recorder for Garfield County, Colorado on at Book , Page , and Reception No. ; and WHEREAS, a Subdivision Improvements Agreement ("SIA") between owner and the Board of County Commissioners for Garfield County recorded in the Office of the Clerk and Recorder for Garfield County, Colorado on , at Book , Page , and Reception No. , sets forth the obligations of the owner instant to the construction of the subdivision's potable water supply system, internal road system, utilities, common areas, landscaping, recreational facilities, and other facilities with the subdivision; and WHEREAS the parties hereto wish to enter into an Agreement between themselves in order to reflect each others duties and responsibilities instant to the control and regulation of the Cerise Ranch Subdivision components pursuant to the Declaration and SIA above described. NOW THEREFORE, for consideration of the mutual promises contained herein the parties agree as follows: 1. The Owner shall execute a Quit Claim Deed simultaneous herewith transferring to the Association the following: Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 1 A. Colorado Division of Water Resources Well Permit Nos. 053765-F and 055764-F B. 52.0 acre feet per year of water associated with Basalt Water Conservancy District Water Allotment Contract No. 355. C. All roads and utilities as well as all access, road, utility and easements within the Cerise Ranch Subdivision, shown and described on the Final Plat. D. The open space easements, trail easements and recreational facilities within the subdivision shown and described on the Final Plat. E. The potable water facilities and all appurtenant facilities including but not limited to, the water storage tank, wells, ditches, pipelines, pump houses, etc. F. The utility easement more particularly described on Exhibit A, attached hereto. 2. The Association agrees to accept such conveyance as set forth in paragraph 1, above, and agrees to own, operate, maintain, repair and replace said water rights, roads, utilities, easements, common areas and recreational facilities for the benefit of the lot owners of the Cerise Ranch Subdivision in strict compliance with the terms and conditions of the following: A. All conditions of approval for the Cerise Ranch Subdivision as set forth by the Board of County Commissioners for Garfield County, Colorado in Resolution No. 2000-73, recorded within the Office of the Clerk and Recorder for Garfield County, Colorado on September 8, 2000, at Book 1208, Page 248, and Reception No. 569108; and B. The terms, conditions and provisions contained with in the Declaration. C. The conditions as set forth in or otherwise attached to the well permits, the water right decrees and the Water Allotment Contract with the Basalt Water Conservancy District. 3. The Owner agrees to complete the obligations set forth in the SIA and to install those improvements within the Cerise Ranch Subdivision in accordance with said agreement. Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 2 4. The Owner hereby assigns to the Association any and all guarantees and warranties associated with the facilities and improvements conveyed to the Association which the Owner has received or shall receive. 5. Except as expressly provided herein, the Association herein agrees to indemnify and hold harmless the Owner and its agents for any claims associated with the conveyance, use, operation, maintenance, repair and replacement of the easements, potable water facilities, and all property conveyed to the Association as described in paragraph 1, above. The Association agrees to comply with the terms and conditions of, and hereby assumes the Owners' obligations under the agreements and instruments set forth in paragraphs 1 and 2 above. 6. Subject to the Owners' obligation in paragraph 3, by accepting the herein described property, easements, facilities, and all related obligations, responsibilities, duties and requirements, the Association herein releases the Owner, its agent and assigns, from all future responsibility, liability or obligation accompanying or associated with the subdivision property and facilities conveyed as described in paragraphs 1 and 2, above, and releases the Owner from any and all claims that may hereafter be made with respect to such items. The Association accepts such property "as is" without guarantee or warranty from the Owner of any kind. Nothing in this paragraph is intended to waive the Owners' obligation set forth in paragraph 3, above. 7. The warranties and obligations of the parties set forth herein which require performance after the conveyance of the deed(s) the subject of this Agreement, shall survive the conveyance of said deed(s) and shall not merge therewith. 8. This Agreement shall be binding upon and enure to the benefits of the heirs, successors and assigns of the parties hereto. 9. This Agreement shall be recorded with the Clerk and Recorder for Garfield County, Colorado. Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 3 IN WITNESS WHEREOF, this Agreement is executed on the day and year set forth above. STATE OF COLORADO ) ss. COUNTY OF GARFIELD WINTERGREEN HOMES, LLC By Art Kleinstein, Manager CERISE RANCH PROPERTY OWNERS ASSOCIATION By Art Kleinstein, President The above and foregoing was acknowledged before me by Art Kleinstein, Manager of Wingreen Homes, LLC, this _ day of , 2000. WITNESS my hand and notarial seal. NOTARY PUBLIC My commission expires: Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 4 STATE OF COLORADO ) ) ss. COUNTY OFGARFIELD ) The above and foregoing was acknowledged before me by Art Kleinstein, President of Cerise Ranch Property Owners Association, this day of , 2000. WITNESS my hand and notarial seal. NOTARY PUBLIC My commission expires: Agreement Wintergreen Homes, LLC and Cerise Ranch Property Owners Association, Inc. 16 -Oct -00 Page 5 QUIT CLAIM DEED THIS DEED, made this day of , 2000, between WINTERGREEN HOMES, LLC, a Colorado limited liability company, ("Grantor"), and THE CERISE RANCH HOMEOWNERS ASSOCIATION, a Colorado non-profit corporation, ("Grantee"): WITNESSETH, That the Grantor, for and in consideration of the sum of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold, conveyed and QUIT CLAIMED, and by these presents does remise, release, sell, convey and QUIT CLAIM unto the Grantee, its successors and assigns forever, all the right, title, interest, claim and demand which the Grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Garfield and State of Colorado described as follows: See Exhibit A attached hereto and incorporated herein by this reference. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. WINTERGREEN HOMES, LLC By: Art Kleinstein, Manager STATE OF COLORADO ) ) ss COUNTY OF ) The foregoing instrument was acknowledged before me by Art Kleinstein, Manager o Wintergreen Homes, LLC. this day of , 2000, by Witness my hand and official seal. My commission expires: Notary Public Exhibit A (Agreement between Wintergreen Homes, LLC and Cerise Ranch Property Owners Association) iYG/iYEE.r/ YG CERISE RANCH SUBDIVISION, PHASE 1 OFF SITE UTILITY EASEMENT DESCRIPTION A 60.00 FOOT AND 40.00 FOOT WIDE STRIP OF LAND SITUATED IN THE SW1/4SE1/4 SECTION 29, GOV'T LOTS 2, 7, 8, 20, AND 21 SECTION 32, AND THE SW 1/4NW 1/4NE1/4 AND GOV'T LOTS 1, 3, 14, 15, SECTION 33, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, GARFIELD COUNTY, STATE OF COLORADO; SAID STRIP OF LAND BEING 30.00 FEET TO EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT THE NORTHWEST CORNER OF SECTION 33, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE S 58°40'08" W 1193.21 FEET TO A POINT ON THE EASTERLY BOUNDARY OF CERISE RANCH SUBDIVISION, PHASE 1, SAID POINT ALSO BEING ON THE CENTERLINE OF LARKSPUR DRIVE, SAID POINT ALSO BEING ON THE CENTERLINE OF SAID EASEMENT, THE POINT OF BEGINNING; THENCE ALONG THE CENTERLINE OF SAID EASEMENT ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 23°57'26", A DISTANCE OF 167.25 (CHORD BEARS N 74°29'47" E 166.04 FEET); THENCE CONTINUING ALONG SAID CENTERLINE N 86°28'30" E 252.00 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 42°12'06", A DISTANCE OF 294.62 FEET (CHORD BEARS S 72°25'27" E 288.01 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 51°19'24" E 266.31 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 51°41'02", A DISTANCE OF 451.03 FEET (CHORD BEARS S 77°09'55" E 435.89 FEET); THENCE CONTINUING ALONG SAID CENTERLINE N 76°59'35" E 225.99 PEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 350.00 FEET AND A CENTRAL ANGLE OF 51°24'49", A DISTANCE OF 314.07 (CHORD BEARS S 77°18'01" E 303.64 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 51°35'36" E 171.49 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 500.00 FEET AND A CENTRAL ANGLE OF 56°38'21", A DISTANCE OF 494.27 FEET (CHORD BEARS S 79°54'46" E 474.39 FEET); THENCE CONTINUING ALONG SAID CENTERLINE N 71°46'03" E 146.83 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 350.00 FEET AND A CENTRAL ANGLE OF 19°05'34", A DISTANCE OF 116.63 FEET (CHORD BEARS N 81°18'50" E 116.09 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 89°08'23" E 76.74 FEET TO THE END OF SAID 60.00 FOOT EASEMENT AND THE BEGINNING OF SAID 40.00 FOOT EASEMENT LYING 20.00 FEET TO EACH SIDE OF AND CONTINUING ALONG SAID CENTERLINE S 35°22'41" E 161.71 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 923 Cooper Avenue Glenwood Springs, CO 81601 phone 970 945-8676 • fax 970 945-2555 14 Inverness Drive East, Ste B-144 Englewood, CO 80112 phone 303 925-0544 • fax 303 925-0547 CERISE RANCH SUBDIVISION, PHASE 1 UTILITY EASEMENT DESCRIPTION Page 2 of 2 400.00 FEET AND A CENTRAL ANGLE OF 41°12'24", A DISTANCE OF 287.68 FEET (CHORD BEARS S 14°46'29" E 281.52 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 05°49'43" W 224.92 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 400.00 FEET AND A CENTRAL ANGLE OF 10°39' 16", A DISTANCE OF 74.38 FEET (CHORD BEARS S 00°30'05" W 74.27 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 04°49'32" E 123.13 FEET; THENCE CONTINUING ALONG SAID CENTERLINE ALONG THE ARC OF A CURVE TO THE RIGHT HAVING A RADIUS OF 300.00 FEET AND A CENTRAL ANGLE OF 94°45'48", A DISTANCE OF 496.18 FEET (CHORD BEARS S 42°33'22" W 441.53 FEET); THENCE CONTINUING ALONG SAID CENTERLINE S 89°56' 16" W 57.85 FEET TO THE TERMINUS, WHENCE THE NORTHWEST CORNER OF SAID SECTION 33 BEARS N 35°01'08" W 2691.29 FEET. TOGETHER WITH A DRAINAGE AND UTILITY EASEMENT SITUATED IN GOV'T LOT 3 OF SECTION 33, TOWNSHIP 7 SOUTH, RANGE 87 WEST OF THE SIXTH PRINCIPAL MERIDIAN, GARFIELD COUNTY, STA 1'E OF COLORADO; SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SECTION 33, A GARFIELD COUNTY SURVEYOR BRASS CAP IN PLACE; THENCE S 41°45'03" E 2798.80 FEET TO A POINT OM THE EASTERLY RIGHT-OF-WAY OF THE ABOVE DESCRIBED 40.00' EASEMENT, THE POINT OF BEGINNING; THENCE ALONG THE EAS 1ERLY RIGHT- OF-WAY OF SAID 40.00' WIDE EASEMENT ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 320.00 FEET AND A CENTRAL ANGLE OF 39°55'57", A DISTANCE OF 223.03 FEET (CHORD BEARS N 15°08'26" E 218.54 FEET); THENCE LEAVING SAID EASTERLY RIGHT-OF-WAY S 87°30'06" E 7.52 FEET; THENCE S 02°29'54" W 621.66 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY OF STATE HIGHWAY NO. 82; THENCE ALONG SAID NORTHERLY RIGHT-OF-WAY ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS OF 2964.79 FEET AND A CENTRAL ANGLE OF 00°42'00", A DISTANCE OF 36.23 FEET (CHORD BEARS N 72°33'27" W 36.23 FEET); THENCE LEAVING SAID NORTHERLY RIGHT-OF-WAY N 02°29'54" E 144.24 FEET; THENCE S 58°59'49" W 68.97 FEET; THENCE N 31°00'11" W 40.00 FEET; THENCE N 58°59'49" E 95.45 FEET; THENCE N 02°29'54" E 193.85 FEET; THENCE N 54°53'35" W 24.16 FEET TO THE POINT OF BEGINNING. KJ WP/99/054fUTIL-ESMT-DESC.DOC p -.. . ;¢ 1959• ` ,= QUIT CLAIM DEED THIS DEED, made this day of , 2000, between WINTERGREEN HOMES, LLC, a Colorado limited liability company, ("Grantor"), and THE CERISE RANCH HOMEOWNERS ASSOCIATION, a Colorado non-profit corporation, ("Grantee"): WITNESSETH, That the Grantor, for and in consideration of the sum of Ten Dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, has remised, released, sold, conveyed and QUIT CLAIMED, and by these presents does remise, release, sell, convey and QUIT CLAIM unto the Grantee, its successors and assigns forever, all the right, title, interest, claim and demand which the Grantor has in and to the real property, together with improvements, if any, situate, lying and being in the County of Garfield and State of Colorado described as follows: See Exhibit A attached hereto and incorporated herein by this reference. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, to the only proper use, benefit and behoof of the Grantee, its successors and assigns forever. IN WITNESS WHEREOF, the Grantor has executed this deed on the date set forth above. STATE OF COLORADO COUNTY OF ) ) ss ) WINTERGREEN HOMES, LLC By: Art Kleinstein, Manager The foregoing instrument was acknowledged before me by Art Kleinstein, Manager o Wintergreen Homes, LLC. this day of , 2000, by Witness my hand and official seal. My commission expires: Notary Public Exhibit A (Agreement between Wintergreen Homes, LLC and Cerise Ranch Property Owners Association) EXHIBIT A A. Colorado Division of Water Resources Well Permit Nos. 053765-F and 055764-F. B. 52.0 acre feet per year of water associated with Basalt Water Conservancy District Water Allotment Contract 355. C. All access and utility easements easements within the Cerise Ranch Subdivision, shown and described on the Final Plat for the Cerise Ranch Subdivision recorded in the records of the Clerk and Recorder for Garfield County, Colorado on , as Reception No. ("Final Plat"). D. The open space easements, trail easements and recreational facilities within the subdivision shown and described on the Final Plat. E. The potable water facilities and all appurtenant thereto including but not limited to, water storage tanks, wells, ditches, pipelines, pump houses, and other related improvements of which Grantor is required to construct and convey to Grantee pursuant to the Agreement executed by Grantor and Grantee on and recorded in the records of the Clerk and Recorder for Garfield County, Colorado on at Book , Page and Reception No. F. The utility easement more particularly described on Exhibit A, attached hereto Exhibit A to Quit Claim Deed Wintergreen Homes, LLC and Cerise Ranch Homeowners Association Exhibit A (Utility Easement Description) Exhibit A to Quit Claim Deed Wintergreen Homes, LLC and Cerise Ranch Homeowners Association