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HomeMy WebLinkAboutD-1531A Prefumo Creek Homes, APN 053-500-001, Lots 1 � 38 and a remainder parcel of Tract No. 2193 Recorded 01/22/20011 RECORDING REQUESTED BY: RICHARD LOUGHEAD, INC. WHEN RECORDED RETURN TO: CITY OF SAN LUIS OBISPO COMMUNITY DEVELOPMENT DEPT. 990 PALM STREET SAN LUIS OBISPO, CA 93401 ,,Doc No: 2001-003722 -Rpt NC': 00004819 Official Records ;RF -3 210.001 San Luis Obispo Co. ; Julie L. Rodewald ; Recorder ; Jan 22, 2001 ; Time: 08:00 ; 64] ;TOTAL 210.00)1 TRACT NO 2193 DECLARATION OF APN #053 - 500 -001 COVENANTS, CONDITIONS, AND RESTRICTIONS OF PREFUMO CREEK HOMES DATED: 12000 0 rR Z�o Q,5 TABLE OF CONTENTS RECITAL...................................... ..............................1 ARTICLE I Definitions ..................................... ...........................:..1 1.1 Articles ............................ ..............................1 1.2 Assessment.............. ............. .................:............1 1.3 Board ............................. ..............................1 1.4 Bylaws ............................ ..............................1 1.5 Common Area/Open Space Lots ....... ............................... 2 1.6 County ........ ............. ...... ..............................2 1.7 City .............................. .............................2 1.8 Declarant .......................... ..............................2 1.9 Documents ......................... ..............................2 1.10 Homeowners' Association ............ ............................... 2 1.11 Lot / Map ...... ............................... ..................2 1.12 Declaration ....................................................... 2 1.13 Member •••.....••• ..............•• •- ............................2 1.14 Mortgage .......................... ..............................3 1.15 Owner ............................. ..............................3 1.16 Project ............................ ..............................3 1.17 Single Family ...................... ............................... 3 ARTICLE II Description of the Project, Division of Property and Creation of Property is ............ 3 2.1 Description of the Project ........................................... 3 2.2 Division of Property ................. ...........................:... 3 a. Lots ............... .............................. .......3 b. Non- exclusive Easement ....... ............................... 3 2.3 Rights of Entry and Use .............. ............................... 3 2.4 Conveyance of the Common Area Lot Interest ........................... 4 ARTICLE III Association, Administration, Membership and Voting Rights ........................... 4 3.1 Association to Own and Manage the Common Area ....................... 4 3.2 Membership .... ........:........ ............................... 4 3.3 Transferred Membership .............. ............................... 4 3.4 Membership Classes and Voting Rights . ............................... 4 ClassA ............................ ..............................4 ClassB ............ ............. ..............................5 CAMLOUGHEAMPrefumo.CCR _1_ r ARTICLE IV Maintenance and Assessments ...... ............................... ............. 5 4.1 Creation of the Lien and Personal Obligation of Assessments ............ .... 5 4.2 Purpose of Assessments .............. ............................... 6 4.3 Assessments .......:............... ............................... 6 a. Annual Assessments .......... ............................... 6 b. Special Assessments ........ ............................... 6 4.4 Restrictions on Annual or Special Assessments .......................... 6 4.5 Notice and Quorum for Any Action Authorized Under Section 4.4 ........... 7 4.6 Division of Assessments ............. ............................... 7 4.7 Date of Commencement of Annual Assessments; Due Dates ................ 7 4.8 Effect of Nonpayment of Assessments .. ............................... 8 4.9 Transfer of Lot by Sale or Foreclosure .............. ................. 8 4.10 Priorities; Enforcement; Remedies ...................................... 8 4.11 Unallocated Expenses ............................................. 10 4.12 Exemption from Assessments ........................... .......... 10 4.13 Review of Financial Records ......... ............................... 10 ARTICLE V Duties and Powers of the Association ............... ............................... 10 5.1 Duties of Association ............... ............................... 10 5.2 Apportionment of Maintenance and Repair Costs ........................ 10 5.3 The Responsibility of the Association .. ............................... 10 a. Landscaping and Drainage Maintenance ......................... 11 b. Association Responsibility ..... ............................... 11 C. Open Space ............. ... .............................11 d. City's Right to Maintain Common Area ......................... 11 e. Discharge of Liens ........... ............................... 12 f. Assessments ............... .............................12 g. Payment of Expenses .............. . ........................ 12 h. Enforcement .................. .............................12 5.4 Powers ....., ..................... .............................12 a. Utility Service .............. ............................... 12 b. Easements ....12 c. Manager ...................... .............................12 d. Adoption of Rules ........... ............................... 12 e. Access ...................... .............................12 f. Assessments, Liens and Fines ... ............................... 13 g. Enforcement ............................. ..............1.3 h. Acquisition and Disposition of Property ......................... 1.3 LLoans ....................... .............................13 j. Dedications .................. .............................13 k. Contracts .................... .............................13 1. Delegation ............. ................... ............'14 m. Security ...... ....... ....... .............................14 n. Appointment ................... .........................14 o. Other Powers ..... ......................... ................14 C: \OO\LOUGHEAD\Prefumo.CCR -11- ARTICLE V - Continued p. Alternative Dispute Resolution . ............................... 14 5.5 Commencement of Association's Duties and Powers ..................... 15 5.6 Names and Addresses of Association. Officers .......................... 16 ARTICLE VI Utilities..... ............................... .. .............................16 6.1 Easements for Utilities and Maintenance ............................... 16 6.2 Association's Duties ........ ...... ............................... 16 ARTICLE VII UseRestrictions ..... ............................... ........................16 7.1 Land Use and Building Type ......... ............................... 16 7.2 Exemption ......... .............. ...:.........................16 7.3 Trees, shrubs and Plantings ......................................... 17 7.4 Nuisance .......................... ............................17 7.5 Temporary Structures, Boats, Commercial. Vehicle and Parking Restrictions .. 17 7.6 Animals ......... ................... .............................18 7.7 Drilling Prohibited ................................................ 18 7.8 Trash Removal ..................................................... 18 7.9 Antennas .......................... .............................18 7.10 Unobstructed. Access ............... ............................... 19 7.11 Combustible Materials and Fire Management Plan ....................... 19 7.12 Clotheslines ....................... .............................19 7.13 Machinery and Equipment ............ ............................... 19 7.14 Partition of Lots .................................................. 19 7.15 Site Improvement and Design Criteria .. ............................... 19 a. Individual Lot Development .... ............................... 19 b. Out Buildings ............... ............................... 19 C. Fences ..................... ............................19 d. Mechanical Equipment ....... ............................... 19 e. Wood - burning Appliances ..... ............................... 19 f. Water Supply and Use ........ ............................... 20 g. Landscaping .............. ............................... .20 h. Maintenance of Improvements .. ............................... 20 i. Height Limitation ............. ............................... 20 j. Street Yard Allowance .................................. :.... 20 k. Lighting ..................... .............................20 7.16 Right to Lease ...................... .............................20 7.17 Liability of Owner's for Damage to the Common Area .................... 21 7.18 Basketball Standards ........ ..................................... : 21 CA000AUGHEAD\Prefumo.CCR -iii- f • • ARTICLE VIII Architectural Control .......................................................... 21 8.1 Architectural Requirement ........................................... 21 8.2 Architectural Control Committee Action ............................... 22 8.3 Liability ........................... .............................23 8.4 Approval Required ................................................ 23 8.5 Procedure ........................:. .............................23 8.6 Governmental Approval ............. ............................... 23 ARTICLE IX General Provisions ............................... .............................23 9.1 Enforcement ....... ....:.......... ............................... 23 9.2 Invalidity of Any Provision .......... ............................... 24 9.3 Term .......................... ............................... 1.24 9.4 Amendments ......................... .........................24 9.5. Rights of First Lenders .............. ............................... 25 a. Copies of Project Documents ... ............................... 25 b. Audited Statements .......... ............................... 25 C. Notice of Action ............. ............................... 26 d. Consent to Action ............. .............................26 e. Right of First Refusal ......... ............................... 28 f. Contracts ..................... .............................28 g. Reserves ............... ............................... ..28 h. Priority of Liens ............. ............................... 28 i. Distribution of Insurance or Condemnation Proceeds ............... 29 j. Restoration or Repair ........................................ 29 k. Termination .................. .............................29 1. Reallocation of Interests ....... ............................... 29 M. Termination of Professional Management ........................ 29 n. Payment of Taxes or Insurance by Lenders ....................... 29 9.6 Owner's Right and Obligation to Maintain and Repair .................... 29 9.7 Insurances Damage or Destruction ..... ............................... 30 a. Insurance ... .................. .............................30 b. Damage or Destruction .. ............................... . 31 9.8 Limitation of Restriction on Declarant .. .. ........................ 33 9:9 Termination of Any Responsibility of Declarant ......................... 33 9.10 Owner's Compliance .............. : .............................. 34 9.11 Notice ............................. .............................34 9.12 Special Provisions Relating to Enforcement of Declarant's Obligation to Complete Common Area Improvements .................... 34 9.13 Fair Housing ........................ .............................35 9.14 Disputes ........................... .............................35 a. Resolution of Disputes ....................................... 35 b. Alternative Dispute Resolution ................................. 35 9.15 FHA/DVA Approval ................. .............................36 9.16 Number; Gender ..................... .............................36 C A00\IAUGHEAD\Pref im o.CCR =iv- ARTICLE IX - Continued 9.17 No Warranty of Enforceability ........ ............................... 36 9.18 Easements Reserved and Granted ..... ............................... 37 9.19 Rights of the City .................. ............................... 37 Signature of Declarant .......................... ............................... 38 CAOO\LOUGHEAD\Prefumo.CCR -V- DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS This Declaration of Covenants, Conditions and Restrictions is made on the date shown below by Richard Loughead, Inc., a California corporation, successors, assigns and heirs, hereinafter referred to as Declarant. RECITAL Declarant is the Owner of certain real property located in the City of San Luis Obispo, State of California, more particularly described as Lots 1 through 38, and a remainder parcel, of Tract 2193, in the City /County of San Luis Obispo, State of California, according to the map thereof recorded in the Office of the County Recorder of San Luis Obispo County. Declarant has established a general plan, hereinafter set forth, for the subdivision, improvement and development of the Property, and each and every Lot therein, and any additional real property that may be annexed to this Declaration, and desires to secure the harmonious and uniform development of the Property in accordance with said plan. NOW, THEREFORE, Declarant hereby declares that the project shall be held, conveyed, hypothecated, encumbered, leased, rented, used, occupied, repaired, maintained and improved subject to the following covenants, conditions and restrictions, all of which are a furtherance of a common plan for the subdivision and improvement of the project and sale of the subdivision interests therein, and which are established for the purpose of enhancing and protecting the value, desirability and attractiveness of the project. All of the covenants, conditions and restrictions herein set forth shall run with the project and shall be binding on all parties having or acquiring any right, title or interest in the project, or any part thereof, and shall be for the benefit of each Owner of any portion of the project or any interest therein and shall inure to the benefit of and be binding upon each successor in interest of such lot Owners. ARTICLE I Definitions The following terms shall have the following meanings whenever used in this Declaration of Covenants, Conditions and Restrictions, unless expressly provided otherwise. 1.1 Articles: The Articles of Incorporation for the creation of the homeowners Association and any amendments thereto. 1.2 Assessment: That portion of the cost of maintaining, improving, repairing, operating and managing the property which is to be paid by each Lot Owner as determined by the Association. 1.3 Board: The Board of Directors of the Association, hereinafter as referred as "Association." 1.4 Bylaws: The Bylaws of the Association, hereinafter referred to as `Bylaws." C: MLOUGHEAMPrefumo.CCR 1 • 1.5 Common Area/Open Space Lots: The Common Area/Open Space Lots, landscape and irrigation system, entrance gate, fencing, drainage facilities, and all the improvements thereon to be owned by the Association for the purpose of maintaining and replacement of any improvements for the common use and enjoyment of the lot owners in this project. The Common Area Lots are more particularly described as follows: a. Lots 36 and 38 are Common Areas /Open Space Lots for biological purposes. b. Lot 37 is a Common Area utilized for ingress and egress purposes, as well as for sidewalks and installation of public utilities. C. Upon recordation of said Tract Map, or concurrent or prior to the close of the first escrow of the subdivision interest, a grant deed conveying the Common Area Lots and/or common facilities to the Association shall be recorded in the Office of the County Recorder of San Luis Obispo County. 1.6 County: The County of San Luis Obispo, California. 1.7 City: The City of San Luis Obispo. 1.8 Declarant: Richard Loughead, Inc., a California corporation, their successors, assigns and heirs. 1.9 Documents: The Declarant, its successors, assigns and heirs shall provide copies of all recorded and unrecorded management documents as listed below to the Association and all members not less than thirty (30) days but not more than ninety (90) days after the close of the first interest in the subdivision: (i) covenants, conditions and restrictions with any amendments and annexations, and (ii) bylaws, and (iii) articles of incorporation, and (iv) tract map, and (v) filed notices of completion or evidence of financial guarantees for the completion of the common areas /facilities, and (vi) any insurance policies for the benefit of the Association, and (vii) pro -forma budget. 1.10 Homeowners' Association: The Prefumo Creek Homeowners Association, a non- profit mutual benefit corporation, its successors and assigns, hereinafter referred to as "Association." 1.11 Lot/Map: A final subdivision map, consisting of thirty-six (36) residential lots and two (2) Common Area lots, and a remainder lot, which is, likewise, Common Area. 1.12 Declaration: This Master Declaration of Covenants, Conditions and Restrictions, may from time to time be amended, modified or supplemented. 1.13 Member: Every person or entity owning a Lot therein, and which said Lot is subject to assessments shall be a member of the Association, along with the duties, obligations and rights to use the common area(s). CA00\L0UGHEAD\Prefumo.CCR 2 W1, 0 1 0 1.14 Mortgage: A mortgage or deed of trust of record encumbering a Lot. The term "Mortgagee" shall include the beneficiary under a deed of trust and any guarantor or insurer of a mortgage. A "First " Mortgagee is one having priority as to all other Mortgagees encumbering the same subdivision Interest. 1.15 Owner: An Owner is an individual, or individuals if more than one person was conveyed a lot or lots in this subdivision, evidenced by the recordation of a grant deed by the Declarant, its successors, assigns or heirs, and an Owner may include a contract purchaser who is in possession of a Lot. An "Owner" does not include persons or entities that holds a beneficial interest for the performance of a financial obligation into said Lot. 1.16 Project: The real property hereto and incorporated by reference, subject to this Declaration, divided or to be divided into residential lots and common area(s), together with all improvements, installations and plantings now or hereafter constructed or installed on said real property. 1.17 Single Family: One or more persons, each related to the other by blood, marriage or legal adoption, or a group of not more than four (4) persons not so related, maintaining a common household. ARTICLE H Description of the Project, Division of Property and Creation of Property Rights 2.1 Description of the Project: This Project is a common interest subdivision, which consists of both residential common area lots with mutually beneficial easements and improvements thereon. 2.2 Division of Property: a. Lots: Each of the lots is separately shown, numbered and delineated on the Final Tract Map. b. Non- exclusive Easement: Each Residential Lot shall have appurtenant to it a non - exclusive easement for ingress and egress across the Common Area Lot 37 and is subject to the rights of the Association to improve, repair, or maintain the Common Area Lots and/or common facilities. Each non - exclusive easement shall be appurtenant to the respective Lot and shall pass with the title to the Lot. 2.3 Rights of Entry and Use: The access and utility easements shall be subject to the following rights of entry and use: a. The right of the Association agent to enter to cure any violation of this Declaration, or the Bylaws, provided that the Owner has received notice and a hearing as required by the Bylaws, except in the case of an emergency, and the Owner has failed to cure the violation or take steps necessary to cure the violation within thirty (30) days after the finding of a violation by the Association. C A00\L0UGHEADV'refum o. CCR b. The access rights of the Association to maintain, repair or replace improvements or property located in the easement area. C. The rights of the Owners, the Association, and the Declarant to install maintain, repair or replace utilities. d. The rights of the Declarant during the construction period. e. The rights of the Owners to make improvements or alterations authorized by Civil Code Section 1.360(a)(2). 2.4 Conveyance of the Common Area Lot Interest: The foregoing interests are hereby established and shall be conveyed in fee title to the homeowners association free and clear of any encumbrance prior to the close of the first escrow or concurrently herewith. ARTICLE III Association, Administration, Membership and Voting Rights 3.1 Association to Own and Manage the Common Area: The management of the Common Area shall be vested in the Association in accordance with its Bylaws. The Owners of all Lots covenant and agree that the administration of the Project shall be in accordance with the provisions of this Declaration, the Articles and the Bylaws. 3.2 Membership: The Owner of a Lot. shall automatically, upon becoming the Owner, - of a Lot, be a member of the Association, and shall remain a member thereof until such time as the ownership ceases for any reason, at such time the membership in the Association shall automatically cease. Membership shall be appurtenant to and may not be separated from ownership of a Lot.. Membership shall be held in accordance, with the Articles and Bylaws of the Association. 3.3 Transferred Membership: Membership in the Association shall not be transferred, encumbered, pledged, or alienated in any way, except upon sale or encumbrance of the lot to which it is appurtenant, and then only to the purchaser, in the case of a sale, or mortgagee, in the case of an encumbrance of such lot. On any transfer of title to an Owner's Lot, including a transfer on the death of an Owner, membership_ passes automatically with the title to the transferee. A mortgagee_ does not have membership rights until it obtains title.to the lot by foreclosure or deed in lieu of foreclosure. Any attempt to make a prohibited transfer is void. No member may resign his or her membership. On notice of a transfer, the Association shall record .the transfer in its books. 3.4 Membership Classes and Voting Rights: The Association shall have two (2) classes of voting memberships. Class A: Class A members shall be all of the Owners with the exception of the Declarant and shall be entitled to one (1) 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.as they-may among themselves. determine, but in no event shall more than one vote cast with respect to any lot. CAPOU OUGHEAMPrefumo.CCR 4 • Class B: Class B members shall be the Declarant and shall be entitled to vote as follows: Voting shall be the same as for Class A memberships, except that Class B members may triple their vote for each lot owned. The Class. B memberships shall cease and be converted to Class A memberships upon the happening of either of the following events, whichever occurs earlier. (i) When the total votes outstanding in the Class A membership equal the total votes outstanding in the Class B member; or (ii) On a prescribed date. which is not later than the.second anniversary of the first conveyance of a subdivision interest in this Project. Any action by the Association which must have the approval of the Members before being undertaken shall require the vote or written assent of a majority of each class of membership during the time that there are two (2) outstanding classes of membership. Where the vote or written assent of each class of membership is required, any requirement that the vote of the Declarant be excluded is not applicable, except as otherwise provided in this Declaration. After the conversion of Class B membership to Class A membership, any provision herein requiring the approval of Members other than the Declarant, except as otherwise provided in this Declaration, shall mean the vote or written assent of a majority of the total voting power of the Association (including Declarant's vote(s)) and the vote or written assent of a majority of the total voting power of Members other than the Declarant. Voting rights attributable to lots shall not vest until the Association has levied Assessments against those Owners of Lots. ARTICLE IV Maintenance and Assessments 4.1 Creation of the Lien and Personal Obligation of Assessments: The Declarant, for each lot within the project, hereby covenants, and each Owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees: (i) to pay to the Association annual assessments or charges, and special assessments for the purposes permitted herein, such assessments to be established and collected as hereinafter provided; and (ii) to allow the Association to enforce any assessment lien established hereunder by non judicial proceedings under a power of sale or by any other means authorized by law. - The annual and special assessments, together with interest, late charges, collection costs and reasonable attorneys' fees, shall be a charge on the lot and shall be a lien upon the lot, against which each, assessment is made, the lien to become effective upon recordation of a notice of delinquent assessment. Each such assessment- together with interest, late charges, collection costs and reasonable attorneys'. fees, shall also be the personal obligation of the person who was the Owner of C: MLOUGHEAMPref ano.CCR such Lot at the time the assessment fell due. The personal obligation for delinquent assessments shall not pass to his successors in title unless expressly assumed by him. No Owner shall be exempt from liability for payment of assessments by waiver of the use or enjoyment of any of the Common Areas or by abandonment of the Owner's Lot. 4.2 Purpose of Assessments: The Assessments levied by the Association shall be exclusively to promote the economic interests, recreation, health, safety and welfare of all the residents in the Project, and to enable the Association to perform it obligation hereunder. 4.3 Assessments: a. Annual Assessments: The Board shall not expend funds designated as reserved funds for any purpose other than those purposes set forth in Section 1365.5 of the Civil Code. The annual assessment shall include a portion for reserves in such amounts as the Board in its discretion considers appropriate to meet the costs of future repair, replacement or additions to the major improvements and fixtures that the Association is obligated to maintain and repair. Reserve funds shall be deposited in a separate account and the signatures of at least two (2) persons who shall either be members of the Board or one officer who is not a member of the Board and a member of the Board shall be required to withdraw monies from the reserve account. Reserve funds may not be expended for any purpose other than repairing, replacing or adding to the major improvements or fixtures that the Association is obligated to maintain without the consent of Owners the Board.. b. Special Assessments: The Board may not levy special assessments without first complying with the provision set forth in Section 1366 of the Civil Code. 4.4 Restrictions on Annual or Special Assessments: The Board may not levy any assessments without complying with the provisions of Section 1366 of the Civil Code. For purposes of this Section 4.4 a "quorum" means more than fifty percent (50 %) of the Members of the Association. Any meeting of the Association for purposes of complying with this Section 4.4 shall be conducted in accordance with Chapter 5 (commencing with Section 75 10) of Part 3 of Division 2 of Title 1 of the California Corporations Code and Section 761.3 of the California Corporations Code. The Board may increase annual Assessments by up to twenty percent (20 %) over the annual Assessment of the immediately preceding fiscal year only if the Board has complied with the provisions of California Civil Code Section 1365(a), which provisions are set forth in Section 8.7.D.(1) of the Bylaws or has obtained the approval of such, an increase by the Members. Notwithstanding the foregoing, the Board, without Membership approval, may increase annual Assessments or levy special Assessments necessary for emergency situations pursuant to Civil Code Section 1366. The governing body shall not expend funds designated as reserve funds for any purpose other than those purposes set forth in Section 1365.5 of the Civil Code. CA00\L0UGHEAD\Prefumo.CCR 6 This Section-4.4 incorporates the statutory requirements of Civil Code Section 1366. If this section of the Civil Code is amended in any manner, this Section 4.4 automatically shall be amended in the same manner without the necessity of amending this Declaration. 4.5 Notice and Quorum for Any Action Authorized Under Section 4.4: Any action authorized under Sections 4.4, which requires a vote of the membership, shall be taken at a meeting called for that purpose, written notice of regular and special meetings shall be given to members by the governing body by any means which is appropriate given the physical setup of the subdivision. This notice shall be given not less than ten (10) nor more than ninety (90) days before the date of any meeting at which members are required or permitted to take any action. The notice shall specify the place, day and hour of the meeting and, in the case of special meetings, the nature of the business to be undertaken. The action may also be taken without a meeting pursuant to the provisions of Calif. Corp. Code Section 7513. 4.6 Division of Assessments: All Assessments, both annual and special, shall be levied equally among the lots except as provided in Section 4.3. Annual assessments shall be collected on a monthly basis unless the Board otherwise directs. Special assessments may be collected in one (1) payment or periodically, as the Board shall direct. 4.7 Date of Commencement of Annual Assessments; Due Dates: a. The annual assessments provided for herein shall commence as to all lots. covered by this Declaration on the first day of the month following the first conveyance of a lot to an individual Owner under.authority of the public report. Subject to the provisions of Section 4.3 hereof, the Board shall fix the amount of the annual . assessments against each lot and send written notice thereof to every Owner not less than forty-five (45) days nor more than sixty (60) days prior to the start of the fiscal year, provided that failure to comply with the foregoing shall not affect the validity of any assessment levied by the Association. The Board shall establish the due dates. The Association shall, on demand, and for a reasonable charge, furnish a certificate signed by an officer .of the Association setting forth whether the assessments on a specified lot have been paid. Such a certificate shall be conclusive evidence of such payment. b. Subsidization by Declarant: The Subsidization Contract/Agreement shall be set forth in accordance with Section 2792.10 of California Real Estate Law Regulations. If the Declarant undertakes to provide goods and/or services to the Association or to pay a portion of a purchaser's share of the Association's financial obligations, the Declarant shall: i. Enter into a contract with the Association acceptable to the Commissioner setting forth in detail the obligations the Declarant, and ii. The Declarant shall provide the Association a copy of the executed copy of the contract, the security and escrow instructions, and CA00\i3OUGHEAD\Prefumo.CCR 7 �J. iii. The Declarant shall provide the Association monthly accounting, and iv. The Declarant shall provide the Association a copy of the bond appointing the Association as obligee pursuant to Section 2792.9 of California Real Estate Law Regulations. 4.8 . Effect of Nonpayment of Assessments: Any Assessment not paid within fifteen (15) days after the due date shall be delinquent, shall bear interest at the rate of twelve percent (12 %) per annum commencing. thirty (30) days after the due date until paid, and shall incur a late payment penalty in an amount to be set by the Board from time to time, not to exceed the maximum permitted by applicable law. 4.9 Transfer of Lot by Sale or Foreclosure: Sale or transfer of any lot shall not affect the Assessment lien. However, the sale of any lot pursuant to exercise of a power of sale or judicial Foreclosure of a first mortgage shall extinguish the lien of such Assessments (including attorneys' fees, late charges, or interest levied in connection therewith) as to payments which became due prior to such sale or transfer (except for Assessment liens recorded prior to the mortgage). No sale or transfer shall relieve such lot from liability for any Assessments thereafter becoming due or from the lien thereof. Notwithstanding any other provision contained in this Declaration, the Board-may increase assessments necessary for emergency situations pursuant to Civil Code Section 1366. Where the mortgagee of a first mortgage of record or other purchaser of a lot obtains title to the same as a result of Foreclosure of any such first mortgage, such acquirer of title, his successor and assigns, shall not be liable for the Assessment by the Association chargeable to such lot which became due prior to the acquisition of title to such lot by such acquirer (except for Assessment liens recorded prior to the mortgage). No amendment of the preceding sentence may be made without the consent of the Owners of Lots -to which at least sixty -seven percent (67 %) of the votes are allocated, and the consent of Eligible Mortgage Holders holding first mortgages on the lots comprising fifty -one percent (51 %) of the lots subject to first mortgages. The unpaid share of such Assessments shall be deemed to be Common Expenses collectible from all of the Lot Owners including such acquirer and his successors or assigns. If a Lot is transferred, the grantor shall remain liable to the. Association for all unpaid Assessments against the Lots through and including the date of the transfer. The grantee shall be entitled to a statement from the Association dated as of the date of the transfer, setting forth the amount of the unpaid Assessments against the Lots to be transferred, and the Lot so transferred shall not be subject to a lien for unpaid Assessments in excess of the amount set forth in the statement, provided; however, that the grantee shall be liable for any such Assessments that become due after the date of the transfer. 4.10 Priorities; Enforcement; Remedies: If an Assessment is delinquent, the Association may record a notice of delinquent Assessment and establish a lien against the lot of the delinquent. CA00\L0UGHEAD\Prefumo.CCR 8. Owner prior and superior to all other liens except: (1) all taxes, bonds, Assessments, and other levies which, by law, would be superior thereto; and (2) the lien or charge of any first mortgage of record (meaning any recorded mortgage or deeds of trust with first priority over other mortgages or deeds of trust) made in good faith and for value. The notice of delinquent Assessment shall state the amount of the Assessment, collection costs, attorneys' fees, late charges, and interest, a description of the Lot against which the Assessment and other sums are. levied, the name of the record Owner, and the name and address of the trustee authorized by the Association to enforce the lien of sale. The notice shall be signed by any officer of the Association of any management agent retained by the Association. The provisions above do not apply to charges imposed against an Owner consisting of reasonable late payment penalties for delinquent assessments and/or charges to reimburse the Association for the loss of interest and for costs reasonably incurred in connection with collecting the delinquent assessments. An Assessment lien may be enforced in any manner permitted by law, including sale by the court, sale by trustee designated in the notice of delinquent . Assessment, or sale by a trustee substituted pursuant to California Civil, Code Section 2934(a). Any sale conducted by the Trustee shall be conducted in accordance with the provisions of Sections 2924, 2924b, 2924c, 2924f, 2924g and 2924h of the California Civil Code applicable to the exercise of powers of sale in mortgages and deeds of trust, including any successor statutes thereto, or in any other manner provided by law. Nothing herein shall preclude the Association from bringing an action directly against an Owner for breach of personal obligation to pay Assessments. Fines and penalties for violation of restrictions are not "Assessments" and are not enforceable by Assessment lien. The Association, acting on behalf of the Lot Owners, shall have the power to bid for the lot at foreclosure sale, and to acquire and hold,'lease, mortgage and convey the same. If the purchase of a lot would result in a five percent (5 %) or greater increase in Assessments, the purchase shall require the vote or written consent of a majority of the total voting power of the Association, including a majority of Members other than the Declarant. During the period the Association, following Foreclosure owns a lot: (i) no right to vote shall be exercised on behalf of the Lot_; (ii) no Assessment shall be assessed 'or levied on the Lot; and (iii) each other Lot shall be charged, in addition to its usual Assessment, its share of the Assessment that would have been charged to such lot had it not been acquired by the Association as a result of Foreclosure. After acquiring title to the lot at foreclosure sale following notice and publication, the. Association may execute, acknowledge and record .a deed conveying title to the lot which deed shall be binding on the Owners, successors and all other parties. The Board may temporarily suspend voting rights of a Member who is in default in payment of any Assessment, after notice and hearing, as provided in the Bylaws. CA00\L0UGHEAD\Prefumo.CCR 9 4.11. Unallocated Expenses: In the event that any taxes are assessed against the Common Area, or personal property of the Association, rather than against the lots, said taxes shall be included in the assessments made, under the provisions of Section 4.1 and, if necessary, a special assessment may be levied against the lots in an amount equal to said taxes, to be paid in two (2) installments thirty (30) days prior to the due date of each tax installment. 4.12 Exemption from Assessments: Any lot which does not include a structural improvement for human occupancy shall be exempt from the payment of that portion of any Assessment which is for the purpose of defraying expenses and reserves directly attributable to the existence and use of the structural improvement. The Declarant and any other Owner of a lot are exempt from the payment of that portion of any Assessment which is for the purpose of defraying expenses and reserves directly attributable to the existence' and use of a common facility that is not complete at the time the Assessments commence. This exemption from the payment of Assessments shall be in effect until the earliest of the following events: (1) a notice of completion of the common facility has been recorded; or (2) the common facility has been placed into use. 4.13 Review of Financial Records: Review on at least a quarterly basis a current reconciliation of the Association's operating and reserve accounts, the current year's actual reserve revenues and expenses compared to the current year's budget and an income and expense statement for the Association's operating and reserve accounts In addition, the Board shall review the latest account statements prepared by the financial institutions where the Association has its operating and reserve accounts. For the purposes herein, "reserve accounts" shall mean monies that the Association's Board has identified for use to defray the future repair or replacement of, or additions to, those major components which the Association is obligated to maintain. The Association shall comply with Title 6 of the California Civil Code, a.k.a. Davis Sterling Act, which may be amended from time to time. ARTICLE V Duties and Powers of the Association 5.1 Duties of Association: The Association shall have the obligation to maintain, repair and replace the all those portions of the common area lots or common facilities more.particularly describe in Section 1.5 of this Declaration which are outside of residential structures in the Project. 5.2 Apportionment of Maintenance and Repair Costs:` For purposes of the apportioning the costs of maintenance and repair, each Owner shall be equally responsible for all costs of maintenance and repair of the common area lots and/or common facilities. Such costs shall be paid from fees to the Association. The Association may raise such fees when necessary to cover such costs. 5.3 The Responsibility of the Association: The maintenance and repair shall not extend to repair or replacement arising out of or caused by the willful or negligent act or neglect, of an Owner or his guests, tenants or invitee, or the Owner's pets, the cost of which is not covered by the insurance carried by the Association. The responsible Owner shall make such repairs, provided the C: MLOUGHEAMPrefumo.CCR 10 Board approves of the person actually making the repairs and the method of repairs. If the responsible Owner fails to take the necessary steps .to make repairs within a reasonable period of time under the circumstances, the Association shall make the repairs and charge the cost of repairs to the responsible Owner, which cost shall bear interest at the rate of twelve percent (12 %) per annum, but no greater than the maximum rate authorized by law, until paid. in full. If an Owner disputes his or her responsibility for repairs the Owner shall be entitled to notice and a hearing as provided in the Bylaws before any charge may be imposed. a. Landscaping and Drainage Maintenance: It is the duty of each Lot Owner in this Project to maintain their landscaping in a neat and clean condition on his or her Lot. Any replacement or modification to original landscaping shall be consistent with the original landscaping and the overall landscaping design of the Project, with special care taken to incorporate native, drought resistant plants, more particularly described in Article VII, Section 7.3 and Section 7.16(f) of this Declaration. The Lot Owner is prohibited from changing the contour or fill that will impact any drainage facilities designed for that particular lot and installed by Declarant. b. Association Responsibility: The Association shall be responsible for maintenance of a drainage swale and debris berm above all hillside lots. Maintenance responsibility shall _also include maintenance of any cut or fill slopes required to make the swale and berm. The storm drain system within the private street located on Lot 37 shall be privately owned and maintained by the Association. In addition, the Association shall be responsible for maintaining the private street entrance landscaping and monument sign within the City right -of -way. Additionally, a proposed bridge, and any modification to the existing creek channel, shall be privately owned and maintained by the Association and shall comply with the City's flood management policy book and approved by the Public Works Director, Army Corps of Engineers, and California Department of Fish and Game. The Association shall also be responsible for maintenance of an emergency access road, wild land defensible space, and creek side maintenance outside of the individual lots, as per the Fire Maintenance Management Plan for Tract 2193, a copy of which is attached hereto as Exhibit and incorporated herein by reference. c. Open Space: The Association shall maintain the oak and riparian woodlands in the adjacent open space areas to ensure that the oaks and riparian woodlands are left undisturbed and managed properly. In addition, the Association will oversee that no ornamental plantings or other related disturbances occur in the open. space areas. d. City's Right to Maintain Common Area: The Owners of all the lots subject to these Covenants, Conditions, and Restrictions recognize that the proper maintenance of the Common Areas for the benefit of all citizens of the City, and that the City is an intended third party beneficiary of this Covenants, Conditions, and Restrictions, and may, upon notice and hearing as set forth below, exercise the same powers of enforcement as the Association. In the event the City determines that the Association has not adequately maintained the Common Area, then the City may give written notice to the Association, which riotice shall contain the date of a hearing on the matter, which hearing shall be held no sooner than fifteen (15) days after the mailing of such notice, and in the event that after such hearing, the City determines to so act, then the City may undertake the maintenance of such Common Area. Any and all costs incurred by the City in so maintaining such Common Area shall be a lien against the Maintenance Fund and the property subject to assessment, CA00\L0UGHEAD\Prefumo.CCR 11 and shall be the personal obligation of the members of the Association. The City shall have the right to inspect the site at mutually agreed upon times to ensure that the conditions of the Covenants, Conditions, and Restrictions and final map are being met. e. Discharge of Liens: The Association shall discharge by payment, if necessary, any lien against the Common Area, and charge the costs thereof to the Member or Members responsible for the existence of the lien, after notice and a hearing, as provided by the Bylaws. f. Assessments: The Association shall fix, levy, collect and enforce assessments as set forth in Article IV. g. Payment of Expenses: The Association shall pay all expenses and obligations incurred by the Association in the conduct of its business including, without limitation, all licenses, taxes or governmental charges levied or imposed against the property of the Association. h. Enforcement: The Association shall enforce this Declaration. 5.4 Powers: In addition to the powers enumerated in its Bylaws, or elsewhere provided herein, and without limiting the generality hereof, the Association shall have the following powers: a. Utility Service: The Association shall have the authority, but not the obligation, to obtain, for the benefit of all of the lots, all water, gas and electric service, refuse collection, janitorial or CATV. b. Easements: The Association shall have the authority, by a document signed or approved by two- thirds (2/3) of the total voting power of the Association, including two- thirds (2/3) of the Members other than the Declarant, to grant easements, in addition to those shown on the map, where necessary for utilities, cable television and sewer facilities over the common area to serve the common area and open space area. C. Manager: The Association shall have the authority to employ a manager or other persons and to contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association, except for the responsibility to levy fines, impose discipline, hold hearings, file suit, record or foreclose liens or make capital expenditures provided that any contract with a firm or person appointed as a manager or managing agent shall not exceed a one (1) year term and shall provide for the right of the Association to terminate the same for cause on thirty (30) days written notice or without cause or payment of a termination fee on ninety (90) days written notice. d. Adoption of Rules: The Association or the Board may adopt reasonable rules not inconsistent with this Declaration relating to the use of the Common Area and all facilities thereon. e. Access: For the purpose of performing construction, maintenance or emergency repair for the benefit of the Common Area, the Association's agents or employees shall have the right, to enter any portion of the Common Area at reasonable hours. Such entry will be CAOO\LOUGHEAD\Prefumo.CCR 12 0 0 made with as little inconvenience to the residential Lot Owners as practicable. The Board at the expense of the Association shall repair any damage caused thereby. f. Assessments, Liens and Fines: The Association shall have the power to levy and collect Assessments in accordance with the provisions of Article IV hereof. The Association may impose fines or take disciplinary action against any Owner for failure to pay Assessments or for violation of any provision of the Project Documents and unrecorded rules and regulations adopted by the Board or the Association. Penalties may include, but are not .limited to, fines, temporary suspension of voting rights or other appropriate discipline, provided the Member is given notice and a hearing as provided in the Bylaws before imposition of any fine or disciplinary action. The Board shall provide in writing a statement showing the amount of any delinquent assessments levied against an Owner in this Project. The statement shall be current showing late charges, interest and fees for collections pursuant to Civil Code Section 1367. g. Enforcement: The Association shall have the authority to enforce this Declaration. h. Acquisition and Disposition of Property: The Association.shall have the power to acquire, (by gift, purchase or otherwise), own, improve, build upon, operate, maintain, convey, sell, lease, transfer or otherwise dispose of real or personal property in connection with the affairs of the Association. Any transfer of property shall be by document signed or approved by two- thirds (2/3) of the total voting power of the Association, which shall include two- thirds (2/3) of the members other than the Declarant, or where the two (2) class voting structure is still in effect, two - thirds (2/3) of the voting power of each class of members. i. Loans: The Association shall have the power to borrow money, and, only with the assent, by vote or written consent of two- thirds (2/3) of the total voting power of the Association, which shall include two- thirds (2/3) of the members other than the Declarant, or where the two (2) class voting structure is still in effect, two -thirds (2/3) of the voting power of each class of members, to mortgage, pledge, deed in trust, or hypothecate any or all of its real personal property as security for money borrowed or debts incurred. j . Dedications: The Association shall have the power to dedicate, sell or transfer all or any or any part of the Common Area to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the members. No such dedication shall be effective unless an instrument has been signed or approved by two -thirds (2/3) of the total voting power of the Association, which shall include two- thirds (2/3) of the members other than the Declarant, or where the two (2) class voting structure is still in effect, two- thirds (2/3) of the voting power of each class of members, agreeing to such dedication, sale or transfer. k. Contracts: The Association shall have the power to contract for goods and/or services for the Common Area, facilities and interests or for the Association, subject to the limitations set forth in the project documents. CA00\L0UGHBAD\Prefumo.CCR 13 • • A contract may not exceed three (3) years that is terminable by the Association after no longer than one (1) year without cause, penalty or other obligation upon ninety (90) days written notice of termination to the other party. 1. Delegation: The Association, the Board and the Officers of the Association shall have the power to delegate their authority to a manager employed by the Association, provided that the Board shall not delegate its responsibility: i. to make expenditures for capital additions or improvements chargeable against reserve funds; ii. to conduct hearings concerning compliance by an Owner or his tenant, lessee, guest, or invitee with the Declaration, Bylaws, or rules and regulations promulgated by the Board; iii. to make a decision to levy monetary fines, impose special assessments against individual lots, temporarily suspend an Owner's rights as. a member of the Association, or otherwise impose discipline; iv. to make a decision to levy regular or special assessments; or V. to make a decision to bring suit, record a claim of lien, or institute foreclosure proceedings for the default in payment of assessments. M. Security: The Association shall have the power, but not the obligation, to contract for security services for the Common Area. n. Appointment: The Association, or the Board acting on behalf of the Association, has the power to appoint or designate a trustee to enforce assessment liens by sale as provided in Section 4.10 and in the Civil Code Section 1367(b). o. Other Powers: In addition to the powers contained herein, the Association may exercise powers granted to a nonprofit mutual benefit corporation under California Corporations Code Section 7140. P. Alternative Dispute Resolution: This Declaration shall authorize, but not require, the Board to perform any act reasonably necessary to satisfy any civil claim or action through alternative dispute resolution proceedings such as mediation, binding arbitration, or non- binding arbitration as described in Section 9.14 of this document. This declaration shall authorize, but not require the Board to perform the following: i. Providing, or in good faith to provide, one hundred twenty (120) days advance notice of the Board's intent to initiate action with an detailed explanation of the claim to every member and person(s) who is a party of the civil action provided that notice can be given (i) more C: MLOUGHEAMPrefumo.CCR 14 than the one hundred twenty (120) days prior to the expiration of statute of limitations, and (ii) without prejudice to the Board's right to enforce the Bylaws and Declaration, and no notice need be given prior to the filing of an action in small claims court or an action solely to enforce assessment obligations. ii. Prior to initiating an action solely for declaratory relief or injunctive reliefto enforce this declaration, or for declaratory relief or injunctive relief to enforce this declaration in conjunction with a monetary damage claim not in excess of five thousand dollars ($5,000), to endeavor to submit the matter to alternative dispute resolution in compliance with the provisions of 1354(b) of the Civil Code. iii. Immediately after initiating any action, making reasonable effort, in good faith to meet and confer with all parties concerning appropriate processes for resolving the action, including available alternative disputes resolution proceedings; concerning appropriate process for avoiding or reducing costs or losses by the parties associated with the action; providing an opportunity to cure any .alleged defect(s) in common areas or common facilities which is the basis for said action, and providing for the scope of discovery, if any, to be conducted prior to the inception of any alternative dispute resolution procedure. iv. Participation, in good faith in alternate dispute resolution actions, such as non - binding or binding arbitration or mediation shall be considered or agreed upon as an alternative to any civil action. All parties to such alternative dispute resolution actions shall share the costs reasonably incurred by the Association. V. As a prerequisite to initiating any action, to conduct inspections, maintain inspection records, exhaust applicable casualty insurance maintained by the Association, provide an opportunity to cure,. meet with members, or obtain the consent of the members. vi. Except in compliance with the provisions of Section 1354(b) of the Civil Code, to submit claims of any kind to binding or non - binding alternative.dispute resolution procedures. 5.5 Commencement of Association's Duties 'and Powers: When the formal creation of the Association by evidence of the election of the Board or not more than six (6) months after the close of the first escrow of a subdivision interest or when fifty (50 %) percent of the lots have been conveyed in ' this Project, which ever occurs first. From and after the date of creation of the Association, the Association shall assume all duties and powers and Declarant shall be relieved of any -further liability therefor. Until one or all of the above. has taken place, the Declarant,. its successor, assigns and heirs shall have all duties and powers of the Association as described herein, including all rights of consent and approval. CAOO\LOUGHEAD\Prefumo.CCR 15 5.6 Names and Addresses of Association Officers: The Association shall file the names and addresses of all officers of the Homeowners' Association with the City Clerk within fifteen (15) days of any change in officers of the Association. ARTICLE VI Utilities 6.1 Easements for Utilities and Maintenance: Easements over and under the Project for the installation, repair, and maintenance of electric, telephone, waste, gas, and sanitary sewer lines and facilities, heating and air conditioning, cable or master television antenna lines, drainage facilities, walkways, and landscaping as -shown on the Map and as may be hereafter required or needed to service the Project, are hereby reserved by the Declarant and its successors and assigns, until completion of construction of the Project and sale of the lots, under authority of a public report, and thereafter are reserved by and for the benefit of the Association and its Members, together with the right to grant and transfer the same. 6.2 Association's Duties: The Association shall maintain all utility facilities located in the Common Area except for those facilities maintained by the utility companies, public, private, or municipal and those maintained by the Owners as described in Article 5. The Association shall pay all charges for utilities supplied to the Project, except those metered or charged separately to the lots. ARTICLE VII Use Restrictions Use of the Project and each Lot therein shall be restricted in accordance with the following provisions in addition to all other covenants, conditions and restrictions herein contained. 7.1 Land Use and Building Type: No lot shall be used except for residential purposes by the Owners, their tenants, and social guests and no commercial trade business shall be conducted therein, except a residential lot may be used as a combined residence and executive or professional office by the Owner thereof, so long as such use does not interfere with the quiet use and enjoyment by other residential Owners of their Lots, and in addition the Declarant, their successors and assigns, shall have the right to use any lot or Lots in the project which are owned by the Declarant for the purpose of -model home site(s) and sales office during construction and until the last lot is sold by the Declarant or until four (4) years from the date of closing of the first sale on the project. No lot shall be used except for residential purposes by the Owners, their tenants, and social guests and no trade or business shall be conducted therein, except that the Declarant, their successors and assigns, may use any lot or lots in the project owned by the Declarant for a model home site or sites and display and sales office during construction and until the last is sold by the Declarant or until four (4) years from the date of closing of the first sale on the project,.except a residential lot may be used as a combined residence and executive or professional office by th6, Owner thereof, so long as such use does not interfere with the quiet use and enjoyment by other residential Owners of their Lots.. 7.2 Exemption: Notwithstanding Section 2.1 above, Declarant, their successors and assigns, may use the Project and Lots for models and model sites, advertising and other purposes incidental and necessary for completion of construction and sale and leasing purposes, in compliance CA000AUGHEAD\Prefumo.CCR 16 with applicable City codes and ordinances; provided however, that Declarant shall not unreasonably interfere with any Owner's use or enjoyment of his/her Lot. 7.3 Trees, shrubs and Plantings: a. No tree; shrub, or planting of any kind shall be allowed to overhang or otherwise encroach upon any sidewalk or other pedestrian way from ground level to a height of ten (10') feet. b. No plants or seeds infected with noxious insects or plant diseases shall be brought, grown or maintained within the Project. C. No Owner shall trim any of the native trees within the Project unless it can be shown to the City that such tree(s) poses a safety hazard. If any such trimming is done, it shall not be done during the dry months of June, July, August and September, unless absolutely unavoidable. 7.4 Nuisance: No noxious, illegal or seriously offensive activities shall be carried on in or upon any lot, or in any part of the property, nor shall anything be done thereon which may be or may become a serious annoyance or a nuisance to or which in any way interfere with the quiet enjoyment of an Owner's Lot. 7.5 Temporary Structures, Boats, Commercial Vehicle and Parking Restrictions: No structure of a temporary character, trailer, camper, mobile home, recreational vehicle, boat, inoperable automobile; or similar equipment shall be permitted to remain on any area within the property. No truck larger than a 3 /4- ton, nor any truck with dual rear wheels, shall be parked on the property other than delivery trucks or moving vans making deliveries. No noisy or smoky vehicles shall be operated on the property. No unlicenced motor vehicles shall be operated on the property. The Association may cause the removal of any vehicle wrongfully parked on the property, including a vehicle owned by an occupant. If the identity of the registered Owner is known or readily ascertainable, the President of the Association or his or her designee shall, within a reasonable time, thereafter, notify the Owner of the removal in writing by personal delivery or first class mail. In addition, notice of the removal shall be given to the local law enforcement agency immediately after the vehicle has been removed. The notice shall include a description.of the vehicle, the license plate number and.the address from where the vehicle was removed. If the identity of the Owner of the vehicle is not known or readily ascertainable and the vehicle has not been returned to the Owner within one hundred and twenty (120) hours after removal, the Association, shall immediately send or cause to be sent.a written report of the removal by mail to the California Department of Justice in Sacramento, California and shall file a copy of the notice with the proprietor of the public garage -in which the vehicle is stored. The report shall include a complete description of the vehicle, the date, time and place from which the vehicle was removed, the amount of mileage on the vehicle at the time of removal, the grounds for removal and the name of the garage or place where the vehicle is stored. Notwithstanding the foregoing, the Association may cause .the. removal, without notice, of any vehicle parked in a marked fire lane, within fifteen (15) feet of a fire CA00\L0UGHEAD\Prefumo.CCR 17 hydrant, in.a parking space designated as handicapped without the proper authority or in any manner which_ interferes with any entrance to or exit from, the project or any lot, parking space, or garage located thereon. The Association shall not be liable for any damages incurred by the vehicle Owner because of removal in compliance with .this section or for any damage resulting from the intentional or negligent act of the Association or any person removing the vehicle. If requested by the. Owner of the vehicle, the Association shall state the grounds for removal of the vehicle. The Association may establish rules and regulations from time to time for the parking of vehicles in the Common Area. Additionally, the city /county may tow away vehicles, which are parked in unauthorized places upon a complaint basis, by Owner or Association, at the expense of the Owners or the Association. 7.6 Animals: No animals, reptiles, rodents, birds, fish, livestock, or poultry shall be kept, in or on any Lot or elsewhere within the Project except that domestic dogs, cats, fish, and birds inside bird cages not to exceed a total of three (3) such animals per Lot may be kept as household pets within any Lot if they are not kept, bred, or raised for commercial purposes. No more than three (3) dogs may be kept at any one time on a lot except that puppies born of these animals may be kept in addition to the foregoing number for a period of no more than three (3) months following their birth. No more than three (3) cats may be kept on a lot at any one time, except for kittens born of these animals and as described in the preceding sentence for puppies. Each person . bringing or keeping a pet upon and Lot shall be liable to other Owners, their family members, guests, invited, tenants, and contract purchasers for any damage to persons or property proximately cause by any pet brought upon or kept upon the Project by that person or by members of his family, his guests, or invites. All dogs must be on a leash when outside their master's Lots. Owners shall be responsible for any and all damages caused by his animals on or about the Project, and shall remove any excrement deposited anywhere on the Project by his or her animals. 7.7 Drilling Prohibited: No oil drilling, oil development operations, oil refining, quarrying, or mining operations of any kind shall be permitted on or in the Project: and no oil wells, tanks,,tunnels or mineral excavations or shafts shall be permitted on the surface of the Project or within five hundred (500) feet below the surface of the Project. No derrick or other structure designed for use in boring for oil, or natural gas shall be erected, maintained, or permitted on the Project. 7.8 Trash Removal: All rubbish, trash and garbage, shall be regularly removed from the Lots and shall not be allowed to accumulate thereon. Trash, garbage and rubbish shall be kept only in sanitary containers and shall be screened from view so that they are not visible from the street or any other Lot. 7.9 Antennas: Except as expressly provided in Civil Code Section 1376 no satellite dish, radio, telephone or television receiving or transmitting antenna, or external apparatus shall be installed on any Lot in this Project in a manner that makes it visible from the common area or from C MLOUGHEAMPrefumo.CCR 18 • • the streets adjacent to the Project and that can be seen above the roof line of the home on said Lot, except as expressly approved by the Board. 7.10 Unobstructed Access: All streets, driveways, private utility easements, sidewalks, entries an passages shall remain unobstructed and shall not be used for any purposes other than ingress and egress and other intended uses. 7.11 Combustible Materials and Fire Management Plan: No combustible materials, such as gasoline, kerosene, cleaning solvents and other flammable liquids shall be stored on any Loth provided however, that reasonable amounts in metal containers may be stored in storage or garage areas. No tanks for such storage shall be installed. anywhere on the Project. Individual property owners shall be responsible for the maintenance of flammable /combustible vegetation, in compliance with the Uniform Fire Code and all City and County ordinances. Each Lot Owner shall comply with the Fire Maintenance Management Plan for Tract 2193, if applicable. (SEE ATTACHED) 7.12 Clotheslines: Exterior clotheslines or other outside clothes drying or airing facilities are permitted only in private yards which are substantially screened from public views. 7.13 Machinery and Equipment: No machinery or equipment of any kind shall be placed, operated or maintained upon or adjacent to any Lot except such machinery or equipment as is usual and customary in connection with the use, maintenance or construction of a private residence. 7.14 m. Partition of Lots: There shall be no subdivision or partition of any of the lots, nor shall any Owner seek any partition or subdivide thereof, nor shall any lots be combined for subsequent re- subdivision. 7.15 Site Improvement and Design Criteria: a. Individual Lot Development: Individual lot development shall be subject to the review and approval of the Architectural Review Commission (ARC). Planning staff may make the determination upon submittal of complete plans if the minor or incidental architectural review process is appropriate. b. Out Buildings: Any outbuildings erected shall be painted or stained harmoniously with the main dwelling building on the Lot. C. Fences: All fences and walls shall conform in appearance to the original fencing installed by Declarant. _ d. Mechanical Equipment: All mechanical equipment, including utility meters, shall be located or screened in such a manner that they are not visible from any street. e. Wood- burning Appliances: All wood - burning appliances such as fireplaces and/or stoves shall be listed for'7.5 -gr/hr maximum particulate emission, based on EPA standards. CA00\L0UGHEAD\Prefumo:CCR 19 • f. Water Supply and Use: No individual well may be drilled nor a private water supply system is permitted on any Lot. Water saving devices shall be required in all dwellings. when renovation work is required. g. Landscaping: Landscaping of all Lots shall incorporate drought - tolerant native plant species or other plants which have been approved by the Architectural Review Committee.. h. Maintenance of Improvements: Each Owner of a lot shall be responsible for maintaining the structures located upon his Lot, including the equipment and fixtures in the structure and its wall, roof, ceilings, windows and doors in a clean, sanitary, workable and attractive condition.. Each Owner is further required to maintain the grounds and landscaping .within his Lot. All landscaping shall be neatly trimmed; property cultivated and.. maintained in a neat and orderly condition and in a manner designated to enhance its appearance. Each Owner shall also maintain all porches, patios, decks, balconies or other additions or improvements built or maintained on his Lot. Any fencing, walls and roofs bordering more than on Lot shall be the joint responsibility of all Owners of each Lots so bordered and all costs of such maintenance shall be paid proportionately by all such Owners. i. . Height Limitation: There is a height limitation on Residential Lots 1 through 30 which shall restrict said residences to a height of twenty -five feet (25') or less. j. Street Yard Allowance: There will be a fifteen foot (15') street yard allowed for homes and a twenty foot (20') street yard for garages with doors facing the street. k. Lighting: Exterior lighting shall be shielded, directed downward, and not spill onto adjoining properties. 7.16 Right to Lease: Any Owner who wishes to lease his or her Lot must meet each and every one of the following requirements, and the lease will be subject to these requirements whether they are included within the lease or not: (i) All leases must be in writing; (ii) The lease must be for the entire Lot and not merely parts thereof, unless the Owner remains in occupancy; (iii) No lease shall be for a period of less than thirty (30) days; '(iv) All leases shall be subject in all respects to provisions of the Declaration, the Bylaws, and all rules and regulations adopted by the Board; and (v) All Owners who lease their Lot shall promptly notify the Secretary of the Association in writing of the names of all tenants and members of the tenant's family occupying such lot and shall provide the Secretary of the Association with a complete copy of the lease; all Owners CA00\L0UGHEAD\Prefumo.CCR 20 leasing their lot shall promptly notify the Secretary, of the Association of the address and telephone number where such Owner can be reached. a. Any failure of a tenant to comply with the Declaration, Bylaws and the Association rules and regulations, shall be default under the lease, regardless of whether the lease so provides. In the event of any such default, the Owner immediately shall take all actions to cure the default including, if necessary, eviction if the tenant. b. If any tenant is in violation of the provisions of this Declaration, -Bylaws, or rules and regulations of the Association, the Association may bring an action in its own name and/or in the name of the Owner to have the tenant evicted and/or recover damages. If the Court finds that the tenant is violating, or has violated any of the provisions of the Declaration, Bylaws or rules and regulations, the Court may find the tenant guilty of unlawful detainer notwithstanding the fact that the Owner is not the plaintiff in the action, and/or the tenant is not otherwise in violation of tenant's lease. For purposes of granting an unlawful detainer against the tenant, the Court may assume that the Owner or person in whose name the contract (the lease or rental agreement) was made was acting for the benefit of the Association. The remedy provided by this subsection is not exclusive and is in addition to any other remedy or remedies, which the Association has. If permitted by present or future law, the Association may recover all its costs, including court costs and reasonable attorney's fees incurred in prosecuting the unlawful detainer action. C. The Association shall give the tenant and Owner notice in writing of the nature of the violation of the Declaration, Bylaws or rules and regulations and twenty (20) days from the mailing of the notice.in which to cure the violation before the Association may file for eviction. d.. Each Owner shall provide a copy of the Declaration, Bylaws and all rules and regulations of the Association to each tenant of his Unit. By becoming a tenant, each tenant agrees to be bound by the Declaration, Bylaws and rules and.regulations of the Association, and recognizes and accepts the right and power of the Association to evict a tenant for any violation by the tenant of the Declaration, the Bylaws or the rules and regulations of the Association. 7.17 Liability of Owner's for Damage to the Common Area: The Owner's of each Lot shall be liable to the Association for all of the damage to the Common Area or improvements to the extent described in Section 5.3. 7.18 Basketball Standards: No basketball apparatus or fixed sport apparatus attached to the exterior surface of any portion of the Common. Area Property shall be permitted. ARTICLE VIII Architectural Control 8.1 Architectural Requirement: No building, landscaping or appurtenance of any kind shall be erected, placed or altered on any Lot in a manner that is inconsistent. with the original architecture of the Project. This shall include harmony of external design and material with existing structure and as to location with respect to topography and finish grade elevation. CA00\L0UGHEAD \Prefumo.CCR 21 • • The Architectural Control Committee shall not restrict or prohibit the installation or use of a solar energy systems except that it may adopt reasonable restrictions which do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or which allow for an alternative system of comparable cost, efficiency, and energy conservation benefits. Plans and specifications showing the nature, kind, shape, color, size, materials and location of such improvements, alterations, etc., shall be submitted to the Board or Architectural Control Committee for approval as to the quality of workmanship and design and harmony of external design with existing structures, and as to location in relation to surrounding structures, topography and finish grade elevation. No permission or approval shall be required to repaint in accordance with the Declarant's original plans and specifications. No permission or approval shall be required to repaint in accordance with a color scheme previously approved by the Committee or Board, or to rebuild in accordance with plans and specifications previously approved by the Committee or by the Board. All proposed landscaping needs to be consistent with original site development plans approved through the City's architectural review process and the adopted fire management plan. No landscaping of patios or yards visible from the street or from the Common Area shall be undertaken by any Owner until plans and specifications showing the nature, kind, shape and location of the materials shall have been submitted to and approved in writing by the Board or by an Architectural Control committee appointed by the Board. 8.2 Architectural Control Committee Action: The Architectural Control Committee shall consist of three (3) members. Declarant may appoint all of the original members of the Committee and all replacements until the first anniversary of the issuance of the original final public report for the Project. The Declarant reserves to itself the power to appoint a. majority of the members to the Committee until ninety percent (90 %) of all the Lots in the Project have been sold or until the fifth anniversary of the issuance of the final public report for this phase of the Project, whichever occurs first. After one (1) year from the date of the issuance of the original public report for this phase of the Project, the Board shall have the power to appoint one (1) member to the Architectural Control Committee until ninety percent (90 %) of all the subdivision interests in the overall Project have been sold or until the fifth anniversary date of the original issuance of the final public report for this phase of the Project, whichever occurs first. Thereafter the Board shall have the power to appoint all members to the Architectural Control Committee. A majority of the Architectural Control Committee may designate a representative to act for it. In the event of death or resignation of any member of the Committee, the successor shall be appointed by the person, entity or group which appointed such member until Declarant no longer has the right to appoint any member to the Committee, and thereafter the Board shall appoint such successor. Neither the members nor the Committee nor its designated representatives shall be entitled to any compensation for services performed pursuant hereto. In the event the committee fails to approve or disapprove plans and specifications within thirty (30) days after the same have been submitted to it, approval will not be required and the related covenants shall be deemed to have been fully complied with. Approval of plans by the Committee or the Board, shall in no way make the Committee or its members or the Board or its members responsible or liable for the improvements built after approval of the "plans and the Owner whose plans are approved shall defend, indemnify and hold the Committee and the Board harmless for any and all liability arising out of such approval. CA00\L0UGHEAD\Prefumo.CCR 22 8.3 Liability: Neither the committee nor any member thereof shall be liable to any Owner or to any other party, for any damages, loss or prejudice suffered or claim on account of (a) the approval or disapproval of any plans, drawings specification or (b) the construction or performance of any work, whether or not pursuant to approved plans, drawings and specifications provided. It shall be presumed that the Committee or individual members thereof have acted in good faith on the basis of actual knowledge possessed by him. 8.4 Approval Required: Except to the extent reasonably necessary for the construction, reconstruction or alteration of any improvement for which the Owner has obtained approved plans pursuant to this Section, no excavation or fill which would be visible from neighboring lots shall be created or undertaken and no change in the natural existing drainage for surface water shall be made and no structures of any type whatsoever shall be constructed or altered until and unless the Owner of such lot first obtains the approval therefore from the committee, as herein provided, and such Owner otherwise complies with all the provision of this Section. 8.5 Procedure: Any Owner proposing to construct, reconstruct, refinish or alter any part of the exterior or -any improvements on or within his residence lot or perform any work which may alter the Declarant's original development and design plan shall submit a complete set of improvement and design plans to the review committee for approval prior to the filing for the necessary permits from the local building and planning department. Within fifteen (15) days after submittal of said improvement plans the review committee shall schedule a pre - planning meeting with. said Owner, during which the following design guidelines shall be discussed: property boundaries; easements and building envelopes; architectural theme and special site considerations; total proposed land use; and construction schedules. If the review committee fails to approve or disapprove within thirty days after the plans have been submitted for review, approval will not be required and the related covenants shall be deemed to have been fully complied with.. 8.6 Governmental Approval: Before commencement of any alteration or improvements approved by the Architectural Control Committee, the Owner shall comply with all the appropriate governmental laws and regulations. Approval by the Committee does not satisfy the appropriate approvals that may be required by the City of San Luis Obispo or any governmental entity with the appropriate jurisdiction. ARTICLE IX General Provisions 9.1 Enforcement: The Association, or any Owner, shall have the right, but not the obligation, to enforce, by any proceeding at law or in equity, all .restrictions; conditions, covenants, reservations, liens, and charges now or hereinafter imposed by the provisions of this Declaration, the Articles and Bylaws, and in such action shall be entitled.to recover reasonable attorneys' fees as are ordered by the Court. Failure by the Association or by any Owner to enforce any covenant, condition or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. CAMLOUGHEAMPrefumo.ccR 23 • 9.2 Invalidity of Any Provision: Should any provision of this Declaration be declared invalid or in conflict with any law of the jurisdiction where this project is located, the validity of all other provisions and portions hereof shall remain unaffected and in full force and effect. 9.3 Term: The covenants, conditions and restrictions of this Declaration shall run with the land and be binding on the property, and shall inure to the benefit of and shall be enforceable by the Association or the Owner of any property subject to this Declaration, their heirs respective legal representatives, successors and.assigns, for a term of thirty years from the date this Declaration is recorded, after which time they shall become automatically renewed for successive periods of ten (10) years, unless an instrument in writing, signed by a majority of the then Owners of the Lots, has been recorded within the year preceding the beginning of each successive period of ten (10) years, agreeing to change said covenants, conditions and restrictions in whole or in part, or to terminate the same. 9.4 Amendments: Prior to the close of escrow on the sale of the first Lot, Declarant alone may amend this Declaration. After sale of the first Lot this Declaration may be amended in the following manner if the two class voting structure is still in effect in the Association, this Declaration may be amended only with the vote or written assent of sixty -six and two- thirds percent (66 2/3 %) of each class of membership, but if the two -class voting structure is no longer in effect in the Association because of the conversion of Class B memberships to Class A, this Declaration may be amended only with the vote or written assent of members entitled to cast sixty -six and two- thirds percent (66 2/3 %) of the voting members (in person or by proxy) of the Association other than the Declarant and, if required, the consent of the California Department of Real Estate. To amend specific subjects the approval of sixty -.six and two- thirds percent (66 2/3%) of each class of Members and fifty -one percent (51 %) of the Eligible Holder, based on one (1) vote for each Holder, shall be required to amend, any provision of this Declaration or Bylaws which establishes, provides for, governs or regulates any of the categories listed in Section 9.5.d of this Declaration. Any amendment or addition to the Declaration or Bylaws regarding any of the foregoing subjects shall not be considered material and need not be approved by Eligible Holders. if the amendment or addition is solely for the purposes of correcting technical errors or for clarification. Any Eligible Holder who receives a written request to approve an addition or amendment and who does not deliver or have its response postmarked within thirty (30) days of the date contained within the written request shall be deemed to approve the addition and amendment. All notices or other communications made pursuant hereto shall be in writing and shall be deemed properly delivered, given or served when (i) personally delivered against receipt copy; or (ii) mailed by certified or registered mail, postage prepaid, return receipt requested, in either case (i) or (ii) to the parties at their last known address. Any other provision of this Declaration may be amended by the approval of each class of Members;- provided however, no provision of this Declaration which provides for a vote of more than fifty -one percent (51 %) may be amended by a vote less than the percentage specified in the section to be amended. CAMLOUGHEAMPrefumo.CCR 24 Any amendment to this Declaration shall be effective upon the recordation in the office of the County Recorder of San Luis Obispo County as Official Records an instrument executed by the President and Secretary of the Association which sets forth the terms of the amendment and a statement which certifies that the required percentage of Members have approved the amendment. Notwithstanding any other provision of this Declaration, no amendment, change, modification, or termination of the conditions, covenants, and restrictions of this Declaration regarding the following provisions shall be effective for any purposes until approved by the City Council of the City of San Luis Obispo, County of San Luis Obispo, California: i. regulation of land use; ii. maintenance of the common area; iii. maintenance. of the drainage basin (if any); iv. the restrictions concerning vehicles remaining on the property; V. restrictions concerning wood - burning appliances; Vi. the requirement for ultra low flow appliances; Vii. dissolution of the Association; and viii any other changes or amendments which affect those certain conditions of approval memorialized in the Resolution of the Council of the City of San Luis Obispo No. 8758 (1998 Series) approving the vesting tentative map for residential subdivision at 1855 Prefumo Canyon Road, near Castillo Court, creating thirty-five (35) Residential Lots on twelve (12) acres, and two (2) Open Space Lots, totaling three- hundred, seventy -two (372) acres (TR- 26 -95; County Tract Map #2193) 9.5. Rights of First Lenders: No breach of any of the covenants, conditions and restrictions herein contained, nor the enforcement of any lien provisions herein, shall render invalid the lien of any first mortgage on any lot made in good faith and for value, but all of said covenants, conditions and restrictions shall be binding and effective against any Owner whose title is derived through foreclosure or trustee's sale, or otherwise. Notwithstanding any provision in the project documents to the contrary, first lenders shall have the following rights: a. Copies of Project Documents: The Association shall make available to Lot Owners and first lenders, and to holders; insurers and guarantors of any first mortgage, current copies of the Declaration, Bylaws, Articles, or other rules concerning the project, and the books, records, and financial statements of the Association. "Available" means available for inspection and copying, upon request during normal business hours or under other reasonable circumstances. The Board may impose a fee for providing the foregoing which may not exceed the reasonable cost to prepare and reproduce the requested documents. b. Audited Statements: Any holder of a first mortgage shall be entitled, on written request, to have an audited financial statement for the immediately preceding fiscal year prepared at their expense if one is not otherwise available. Such statement shall be furnished within a reasonable time following such request. CA00\L0UGHEAD\Prefumo.CCR 25 C. Notice of Action: On written request to the Association, identifying the name and address of the eligible mortgage holder or eligible insurer or guarantor, and the lot number or address, such eligible mortgage holder or eligible insurer or guarantor will be entitled to timely written notice of: i. Any condemnation loss or any casualty loss which affects a material portion of the project or any lot on which there is a first mortgage held, insured or guaranteed by such eligible mortgage holder, insurer or guarantor, as applicable; ii. Any default in performance of obligations under the project documents or delinquency in the payment of assessments or charges owed by an Owner of a Lot subject to a first mortgage held, insured or guaranteed by such eligible mortgage holder; which remains accrued for a period of sixty (60) days; iii. Any lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Association; and iv. Any proposed action which would require the consent of a specified percentage of eligible mortgage holders.. The Association shall discharge its obligation to notify eligible mortgage holders, insurers or guarantors by sending written notices required herein to such parties at the address given on the current request for notice. d. Consent to Action: L Except as provided by statute or by other provision of the project documents in case of substantial destruction or condemnation of the project and further excepting any reallocation of interests in the common areas which might occur pursuant to any plan of expansion or phased development contained in the original project documents: (a) The consent of Owners of Lots to which at least sixty -six and two- thirds percent (66 2/3 %) of the votes in the Association are allocated and the approval of eligible mortgage holders holding mortgages on lots which have at least fifty -one (51 %) of the votes of lots subject to eligible holders of mortgages shall be required to terminate the legal status of the project as a planned development project; (b) The consent of Owners of Lots to which at least sixty -six and two- thirds percent (66 2/3 %) of the votes in the Association are allocated and the approval of eligible mortgage holders holding mortgages on lots which have at least fifty -one percent (51 %) of the votes of the lots subject to eligible CA00\L0UGHEAD\Prefumo.CCR 26 0 � - . holders of mortgages, shall be required to add or amend any material provisions. of the project documents which establish, provide for, govern or regulate any of the following: (i) voting; (ii) assessments, assessment liens or subordination of such liens; (iii) reserves for maintenance, repair, or replacement of the Common Area, Common Facilities or Lots; (iv) insurance or fidelity bonds; (v) rights of use to the Common Area and Common Facilities or Lots; (vi) responsibility for maintenance and repair of several portions of the project; (vii) expansion or contraction of the project or the addition, annexation or withdrawal of property to or from the project, except as provided in paragraph 9.5.d.l.i above; (viii) boundaries to any lot; (ix) the interests in the general or exclusive use common areas; (x) convertibility of lots into common area or of common area into lots; (xi) leasing of lots; (xii) imposition of any right of first refusal or similar restriction on the right of a lot Owner to sell, transfer or otherwise convey his or her Lot; (xiii) any provisions which are for the express benefit of mortgage holders, eligible mortgage holders, or eligible insurers or guarantors of first mortgages on lots. (c) An addition to or amendment to such document shall not be considered material if it is for the purpose of correcting a technical error or for clarification only. An eligible mortgage holder who receives written request to approve additions or amendments who does not deliver or post to the requesting party a negative response within thirty (30) days shall be deemed to have approved such request, provided the notice has been delivered to the mortgage holder by certified or registered mail return receipt requested. ii. Unless the holder of at least two- thirds (2/3) of the first mortgages, based on one vote for each mortgage or deed of trust owned, or two - thirds (2/3) of the Owners, other than the Declarant; of the individual lots in the project have given their prior written approval, the Association and/or the Owners shall not be entitled to: (a) By act or omission seek to abandon or terminate the project, or abandon, partition, subdivide, encumber, sell or transfer the Common Area or property owned directly or indirectly by the Association. The granting of easements for public utilities or other public purposes consistent with the intended use of such property shall not be deemed a transfer within the meaning of this clause, except the abandonment or termination provided by law in the case of substantial destruction by fire or other CA00VAUGHEAD\Prefumo.CCR 27 casualty or in the case of taking by condemnation or eminent domain; or (b) Change the method of determining the obligations, assessments or dues or other charges which may be levied against an Owner; or (c) By act or omission, change, waiver or abandon any scheme of regulations or enforcement thereof, pertaining to the architectural design, or the exterior maintenance of the Common Area walks or fences and driveways, or the upkeep of landscaping in the Common Area; or (d) Fail to maintain fire and extended coverage on insurable Association Common Area improvements on a current replacement cost basis in an amount not less than one - hundred percent (100 %) of the insurable value, based on current replacement costs; or (e) Use hazardous insurance proceeds for losses to any Association common property other than the repair, replacement or reconstruction of such Common Area property. e. Right of First Refusal: The Declaration contains no provisions creating a right of first refusal, but should any such right be created in the future, such rights shall not impair the rights of any first lender to: (1) foreclose or take title to a lot pursuant to remedies provided in the mortgage; or (2) accept a deed or assignment in lieu of foreclosure in the event of default by the mortgagor; or (3) sell a lot acquired by the mortgagee. f. Contracts: Any agreement for the professional management of the project, or any other contract providing for services of the developer, sponsor or builder, may not exceed one (1) year. Any agreement, or contract, including a management contract entered into prior to the passage of control to the Board of Directors of the Association to lot purchasers must provide for the termination by either party for cause on thirty (30) days written notice or without cause and without payment of a penalty on ninety (90) days written notice. g.. Reserves: Association dues or charges shall include an adequate reserve of fund for maintenance, repairs, replacement of those improvements which the Association is obligated to maintain that must be replaced on a periodic basis, and the assessments therefor shall be payable in regular installments rather than by special assessments, except as provided for in Sections 4.4, and 4.6. h. ' Priority of Liens: Each holder of a first mortgage lien on a Lot, who obtains title to a Lot by virtue of foreclosure of the mortgage or any purchaser at a Foreclosure sale under a first trust deed will take the Lot free of any claims for unpaid assessments and fees, late charges, CA00\L0UGHEAD\Prefumo.CCR 28 fines or interest levied in connection therewith, against the Lot which accrue prior to the time such holder takes title to the Lot, except for claims.for a pro rata share of such assessments or charges to all Lots including the mortgaged project, and except for assessment liens recorded prior to the mortgage. i. Distribution of Insurance or Condemnation Proceeds: No Owner, or any other party shall have priority over any rights of first lenders pursuant to their mortgages in the case of a distribution to Lot Owners of insurance proceeds or condemnation awards for losses to or the taking of the common area. j. Restoration or Repair: Any restoration or repair of the project, after a partial condemnation or damage due to an insurable hazard, shall be performed substantially in accordance with the Declaration and the original plans and specifications, unless other action is approved by eligible mortgage holders holding mortgages on lots which have at least fifty -one percent (51 %) of the votes of lots subject to Eligible Holder Mortgages. k. Termination: Any action to terminate the legal status of the project after substantial destruction or a substantial taking in condemnation of the project property must require the approval of eligible mortgage holders holding mortgages on lots which have at least fifty -one (51 %) of the votes of lots subject to eligible holder mortgages, and the consent of Owners of lots to which at least sixty- seven (67 %) of the votes of the Association are allocated. 1. Reallocation of Interests: No reallocation of interests in the common areas resulting from a partial condemnation or partial destruction of the project may be affected without the prior approval of eligible mortgage holders holding mortgages on all remaining lots whether existing in whole or in part, and which have at least fifty -one percent (51 %) of the votes of such remaining lots subject to Eligible Holder Mortgages. M. Termination of Professional Management: When professional management has been previously required by any eligible mortgage holder or eligible insurer or guarantor, whether such entity became an eligible mortgage holder or eligible insurer or guarantor at that time or later, any decision to establish self management by the Association shall.require the prior consent of Owners of Lots to which at least sixty -seven percent (67 %) of the votes in the Association are allocated and the approval of eligible mortgage holders holding mortgages on fifty -one percent (51 %) of the votes of lots subject to Eligible Holder Mortgages. n. Payment of Taxes or Insurance by Lenders: First lenders may, jointly or singly, pay taxes or other charges which are in default and which may or have become a charge against the common area,property 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 property and first lenders making such payment provided that said lenders have given notice to the Association prior to the making of such payments and the Association has failed to pay the same. . 9.6 Owner's Right and Obligation to Maintain and Repair: Except for those portions of the project which the Association is required to maintain and repair, each Lot Owner shall, at his CAMLOUGHEAMPrefumo.CCR 29 sole cost and expense, maintain and repair his Lot and shall maintain the landscaping within his/her Lot in good condition. 9.7 Insurance; Damage or Destruction: a. Insurance: The Association shall obtain and maintain the following insurance: i. If available and affordable, a comprehensive general liability policy insuring the Association, and its agents, against any liability due to the use of the Common Area or any other Association owned or maintained real property; the amount of general liability insurance which the Association shall carry at all times as required by California Civil Code Section 1365.7. ii. Worker's compensation insurance to the extent required by law (or such greater amount as the Board deems necessary); the Association shall obtain a Certificate of Insurance naming it as an additional insured in regard to worker's compensation claims from any independent contractor who performs any service for the Association, if the receipt of such a certificate is practicable. The Association shall not enter an agreement or contract, with any contractor to perform any service for the Association which hasn't provided evidence of current worker's compensation insurance for any employees and all persons representing said contractor. iii. Fidelity Bonds or Insurance covering officers, directors and employees that have access to Association funds; iv. Flood insurance if the Project is located in an area designated by the appropriate governmental agency as a special flood hazard area; V. Officers and Directors liability insurance; vi. Such other insurance as the Board in its discretion considers necessary or advisable; and The amount, term and coverage of any policy required hereunder, (including the type of endorsements, the amount of deductible, the named insured, the loss payees, standard mortgage clauses and notices of changes or cancellations and the insurance company;rating) shall satisfy. the minimum requirements imposed for this type of project by the Federal National Mortgage Association ( "FNMA ") and the Federal Home Loan Mortgage Corporation (FHLMC") or any successor thereto. If the FNMA or the FHLMC requirements conflict, the more stringent requirement shall be met. If the FNMA or the FHLMC do not impose requirements on any policy required hereunder, the term, amount, and coverage of any such policy shall be no less than that which is customary for similar policies on similar projects in the area. C: MLOUGHEAMPrefumo.CCR 30 • • Each Owner appoints the Association or any insurance trustee designated by the Association to act on behalf of the Owners in connection with all such insurance matters arising from any insurance policy maintained by the Association, including without limitation, representing the Owners in any proceeding, negotiation, settlement or agreement. Any insurance maintained by the Association shall contain "Waiver of Subjugation" as to the Association and, its officers, directors, Members, the Owners of the Lots, (including Declarant) and Mortgagees, and if obtainable, a cross liability or severability of interest endorsement insuring each insured against liability to each other insured. The Association shall periodically and not less than every three -(3) years review all insurance policies maintained by the Association to determine the adequacy of the coverage and to adjust the policies accordingly. The Association, and its Directors and Officers, shall have no liability to any Owner or mortgagee if, after a good faith effort and after reasonable inquiry under the standard of care of an ordinary prudent person, it is unable to obtain the liability insurance required hereunder, because the insurance is no longer available or, if available, can be obtained only at a cost that the Board in its sole discretion determines is unreasonable under the circumstances, or the Members fail to approve any Assessment increase needed to fund the insurance premiums. In such event, the Board immediately shall notify each member of any mortgagee entitled to notice that the liability insurance would not be obtained or renewed. b. Damage or Destruction: If the project improvements are damaged or destroyed by fire or other casualty, the improvements shall be repaired or reconstructed substantially in accordance with the original as-built plans and specifications, modified as may be required by applicable building codes and regulations in force at the time such repair or reconstruction and subject to such alterations or upgrades as may be approved by the Architectural Control Committee, unless either of the following occurs: (1) the cost of repair or reconstruction is more than fifty percent (50 %) of the current replacement costs of all Common Area improvements, available insurance proceeds are not sufficient to pay for at least eighty -five percent (85 %) of the costs of such repairs or reconstruction, and three- fourths (3/4) of the total voting power of the Association residing in Members and their First Lenders vote against such repair and reconstruction; or (2) available insurance proceeds are not sufficient to substantially repair or reconstruct the improvements within a reasonable time as determined by the Board, a special assessment levied to supplement the insurance fails to receive the requisite approval, if such approval is required, and the Board, without the requirement of approval by the Owners, is unable to supplement the insurance by borrowing on behalf of the Association sufficient monies to enable the improvements to be substantially repaired or reconstructed within a reasonable time. If the improvements are to be repaired or reconstructed and the cost of the repair or reconstruction is in excess of twenty -five percent (25 %) of the current replacement cost of all the common area improvements, the Board shall designate a construction consultant for the repair and reconstruction, and any borrowings by the Association for the repair or reconstruction shall be deposited with a commercial lending institution experienced in the disbursement of construction loan funds, the "Depository", as selected by the Board. Funds shall be disbursed in accordance with the normal construction loan practices of the Depository that require as a minimum that the construction consultant certify within ten (10) days prior to any disbursement substantially the following: CA000AUGHEAD\Prefumo.CCR 31 • i. That all the work completed as of the date of such request for disbursement has been done in compliance with the approved plans and specifications; ii. That such disbursement request represents monies which either have been paid by or on behalf of the construction consultant, the general contractor or architect and/or are justly due to the contractors, subcontractors, materialmen, engineers, or other persons (whose names and addresses shall be stated) who have rendered or furnished certain services or materials for the work and giving a brief description of such. services and materials and the principal subdivisions or categories thereof and the respective amounts paid or due to each of said persons in respect thereof and stating the progress of the work up to the date of said certificate; iii. That the sum then requested to be disbursed plus all of the sums previously disbursed does not exceed the cost of the work insofar as actually accomplished up to the date of such certificate; iv. That no part of the cost of the services and materials described in the foregoing paragraph (1) has been or is 'being made the basis for the disbursement of any funds in any previous or then pending application; and V. That the amount held by the depository, after payment of the amount requested in the pending disbursement request, will be sufficient to pay in full costs necessary to complete the repair or reconstruction. If the cost of repair or reconstruction is less than twenty -five percent (25 %) of the current replacement cost of all the common area improvements, the Board shall disburse the available funds for the repair and reconstruction under such procedures as the Board deems appropriate under the circumstances. The repair or reconstruction shall commence no later than ninety (90) days'after the date of such damage or destruction and shall be completed no later than one hundred and eighty (180) days after commencement of construction, subject to delays that are beyond the control of the party responsible for making repairs. If the failure to repair or reconstruct results in a material alteration of the use of the Project from its use immediately proceeding the damage or destruction as determined by the Board (a material alteration shall be conclusively presumed if repair or reconstruction costs exceed twenty - five percent (25 %) of the current replacement costs of all Common Area improvements), the Project shall be sold in its entirety under such terms and conditions as the Board deems appropriate. If any Owner or First Lender disputes the Board's determination as to material alteration, the dispute shall be submitted to arbitration pursuant to the rules of the American Arbitration Association, and the decision of the arbitrator(s) shall be conclusive and binding on all Owners and their mortgages. CAMLOUGHEADTrefumo.CCR 32 9.8 Limitation of Restriction on Declarant: Declarant is undertaking the work of construction of residential lots and incidental improvements on the subj ect property. The completion of that work and the sale, rental, and other disposal of said Lots are essential to the establishment.and welfare of said property as a residential community. In order that said work may be completed and said property be established as fully occupied residential community as rapidly as. possible, nothing in this Declaration shall be understood or construed to: a. Prevent the Declarant, its contractors, or subcontractors from doing on the property or any lot, whatever is reasonably necessary or advisable in connection with the completion of said work; or b. Prevent the Declarant or its representative from erecting, constructing, and maintaining on the property, except upon lots owned by others, such structures as may be reasonable and necessary for the conduct of its business of completing said work and establishing said property as a residential community and of disposing of the same in parcels by sale, lease or otherwise; or C. Prevent the Declarant from conducting on the property, except upon lots owned by others, its business of completing said work and of establishing a plan of minimum ownership and of disposing of the property as lots by sale, or otherwise, including use of one or more lots as a sales office after the close of escrow on the first sale of a lot; such use of a. lot after the close of the first escrow shall require payment of a reasonable rental fee by the Declarant to the Association; or d. Prevent the Declarant from maintaining such signs on the property, except upon the lots owned by others, as may be necessary for the sale, lease or disposition thereof. e. Subject the Declarant to the architectural control provisions for construction of improvements on this Project. The foregoing rights of the Declarant shall terminate upon sale of Declarant's entire interest in the project, or three (3) years after the date of recordation of the deed of the first lot to be sold in the project, whichever occurs first. So long as Declarant, its successors or assigns, owns one or more of the lots established and described herein, Declarant, its successors and assigns, shall be subject to the provisions of this Declaration. Declarant shall make reasonable efforts to avoid disturbing the use and enjoyment of their lots, and the common area, by Owners, while completing any work necessary to said lots or common area. 9.9 Termination of Any Responsibility of Declarant: In the event the Declarant shall convey all of his right, title and interest in and to the property to any partnership, individual or individuals, or corporation or corporations, then and in such event, Declarant shall be relieved of the performance of any further duty or obligation hereunder. and such partnership, individual or individuals, corporation or corporations, shall be obligated to perform all such duties and obligations of the Declarant. c:\ooVAUCHEAD\Prcfi=o.ccR 33 .9.10 Owner's Compliance: Each Owner, or occupant of a lot shall comply with the provisions of this Declaration, and, to the extent they are not in conflict with this Declaration, the Articles, Bylaws, Association Rules, decisions and resolutions of the Association or the Board, as from time to time lawfully amended. Failure to comply with any such provisions, decisions, or resolutions shall be grounds for an action: (i) to recover sums due; (ii) for damages; (iii) for injunctive relief; (iv) for costs and attorney's fees; or (v) for any combination of the foregoing. All agreements and determinations lawfully made by the Association in accordance with the voting percentages established in this Declaration or in the Articles or the Bylaws shall be deemed to be binding on all Owners of lots, their successors and assigns. 9.11 Notice: Any notice permitted or required by the Declaration, Articles or Bylaws may be delivered either personally or by mail. If delivery is by mail, it shall be deemed to have been delivered seventy -two (72) hours after a copy of the same has been deposited in the United States mail, first class or registered, postage prepaid, addressed to the person to be notified at the current address given by such person to the Secretary of the Board, or addressed to the lot of such person if no address has been given to the Secretary. 9.12 Special Provisions Relating to Enforcement of IDeclarant's Obligation to Complete Common Area Improvements: Where the project includes common area improvements which have not been completed prior to the close of escrow on the sale of the first lot, and where the Association is the obligee under a bond or other agreement, hereinafter referred to as "bond ", to secure performance of the commitment of the Declarant to complete said improvements, the Board shall consider and vote on the question of action by the Association to .enforce the obligations under the bond with respect to any improvement for which a notice of completion has not been filed within sixty (60) days after the completion date specified for that improvement in the planned construction statement appended to the bond. If the Association has given an extension in writing for the completion of any common area improvements, the Board shall consider and vote on the aforesaid question if a notice of completion has not been filed within thirty (30) days after the expiration of the extension. A special meeting of the members of the Association for the purpose of voting to override a decision by the Board not to initiate an action to enforce the obligations under the bond or on the failure of the Board to consider and vote on the question shall be held not less than thirty- five (35) days nor more than forty-five (45) days after receipt by the Board of a petition for such a meeting signed by members representing five percent (5 %) or more of the total voting power of the Association. At such special meeting a vote of majority of the members of the Association other than the Declarant shall be required to take action to enforce the obligation under the bond and a vote of a majority of the voting power of the Association, excluding the Declarant, shall be deemed to be the decision of the Association, and the Board shall thereafter implement this decision by initiating and pursuing appropriate action in the name of the Association. On satisfaction of the Declarant's obligation to complete the common area improvements, the Association shall acknowledge in writing that it approves of the release of the bond and shall execute any other documents as may be necessary to effect the release of the bond. The Association shall not condition its approval of the release of the bond on the satisfaction of any conditions other than the common area improvements as described on the planned construction statement. Any dispute between the Declarant and the Association regarding the completion of the common area CA00\L0UGHEAD\Prcfumo.CCR 34 shall be submitted to binding arbitration under the commercial rules of the American Arbitration Association and the prevailing party shall be entitled to recover costs, including reasonable attorney's fees. 9.13 Fair Housing: It is prohibit by law for the Declarant or any individual Lot Owner to either directly or indirectly, forbid or restrict the conveyance, encumbrance, leasing, mortgaging 'or occupancy of his lot to any person of a specified race, gender, adulthood, marital status, color, religion, ancestry, physical handicap or national origin. 9.14 Disputes: The Subdivider, Owner of a Lot, or the Association may resolve disputes in one of the two following manners: a. Resolution of Disputes: If the parties involved agree to arbitration on a case by case basis; otherwise, the matters will be settled at law or in equity. If the parties freely choose to enter arbitration the following described procedure shall be used: In case of any claim or dispute between the Declarant, its builder, general contractor, or broker, or their agents or employees, on the one hand, and the Association or any Lot(s) Owner(s) on the other hand, which claim or dispute relates to the rights and/or duties of the parties under the Project Documents, or relates to the design or construction of the project or any part thereof, the procedure shall be as follows: The aggrieved party or parties shall notify the other party or parties in writing. When Declarant receives such a notice, it shall promptly respond with an investigation, inspection, meeting, discussion, or other action reasonably appropriate to the circumstances. Appropriate action shall include, without limitation, prompt communication with the aggrieved party or Parties, and a proposed course of action to resolve the problem. All parties involved in the matter shall negotiate in a good faith attempt to resolve amicably the problem. If the parties are unable to resolve the problem within a reasonable period of time (not to exceed ninety (90) days after the first notice of claim or dispute) the matter shall be submitted to binding arbitration pursuant to the rules of the American Arbitration Association, provided that if the dispute or claim involves a sum. not in excess of the jurisdictional limit of small claims court, the Lot Owners shall have the option of taking the matter to small claims court in lieu of binding arbitration. b. Alternative Dispute Resolution: A contractual provision requiring arbitration of a dispute or claim between a homeowner and a` subdivider, or a provision in this Declaration requiring arbitration of a dispute or claim between a homeowners' association and the Declarant, shall provide that the arbitration will be conducted in accordance with California Real Estate Law Regulation 2791.8. i. The Declarant shall advance the necessary fees to initiate the arbitration, with the costs and fees, including ongoing costs and fees to be paid as agreed by the parties, but if the parties cannot agree as determined by the arbitrator with the costs and fees of the arbitration to ultimately be borne as determined by the arbitrators; ii. for administration of the arbitration by a neutral and impartial person or persons; CA00\L0UGHEAD\Prefumo.CCR 35 • iii. The appointment of the neutral and impartial individual(s) to serve as arbitrator(s) and said arbitrator(s) to be appointed within a specified period of time, which in no event shall be more than sixty days from the administrator's receipt of a written request from a party to arbitrate the claim or dispute. The selection of the arbitrator shall be compliance with Section 1297.121 of the California Code of Civil Procedure and said arbitrator may be challenged pursuant to Section 1297.124 of the California Code of Civil Procedure. iv. The venue of the arbitration shall be in the county where the Project is located unless the parties agree to some other location. V. Commencement of the arbitration shall be in a prompt and timely manner in accordance with (1) the rules of the arbitration, or if the rules do not specify a date by which the arbitration must commence, then (2) a date as agreed to by the parties, and if they cannot agree, (3) a date determined by the arbitrator(s); vi. The arbitration shall be conducted in accordance with rules and procedures; which are reasonable and fair to the parties. vii. Conclusion of the arbitration shall be in a prompt and timely manner. viii. The arbitrators shall provide all recognized remedies available in law or equity for any cause of action that is the basis of the arbitration. The parties may authorize the limitation or prohibition of punitive damages. 9.15 FHA/DVA Approval: So long as the Federal Housing Administration (FHA) or Department of Veterans Affairs (DVA) has jurisdiction over any loan secured by a Deed of Trust on any Lot and as long as there is Class Membership, the following actions shall require the prior approval of the FHA or the DVA: annexation of additional properties; dedication of Common Area; or any amendment to this Declaration. In the event the above said agencies, or its designated representative, fails to approve or disapprove within thirty (30) days after the amendment has been submitted, approval will not be required and the related covenants shall be deemed to have been fully complied with. 9.16 Number; Gender: The singular and plural number and masculine, feminine and neuter gender shall each include the other where the context so requires. 9.17 No Warranty of Enforceability: While Declarant has no reason to believe that any of the restrictive covenants contained in this Declaration are or may invalid or unenforceable for any reason or to any extent, Declarant makes no warranty or representation as to the present or future validity or enforceability of any such restrictive covenant. Any Owner acquiring a Lot in the Project in reliance on one or more or such restrictive covenants shall assume all risks of the validity and enforceability thereof and, by acquiring the Lot agrees. to hold Declarant harmless therefrom. CA00\L0UGHEAD\Prefumo.CCR 36 U . 9.18 Easements Reserved and Granted: Any easements referred to in this Declaration shall be deemed reserved or granted, or both reserved and granted, by reference to this Declaration in a deed to any Lot. 9.19 Rights of the City: The Owners of all Lots subj ect to these covenants, conditions and restrictions recognize that proper maintenance of the common area is for the benefit of all citizens of the City of San Luis Obispo, and that the City is an intended third party beneficiary of these covenants, conditions and restrictions and may upon notice and hearing set forth below, exercise the same powers of enforcement as the Association. In the' event the City determines that the Association has not adequately maintained the common area, then the City may give written.notice to the Association, which notice shall contain the date of a hearing on the matter, which hearing shall be held no sooner than fifteen (15) days after the mailing of such notice, and in the event after such hearing the City determines to so act, then the City may undertake the maintenance of such common area. Any and all costs incurred by the City in so maintaining such common area shall be a lien against the maintenance fund and the property subject to assessment, and shall be the personal obligation of the members of the Association. The above mentioned clauses relating to the rights of the City shall not be amended without the consent of the City. IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has executed this Declaration this day of 52000. RICHARD LOUGHEAD, INC. A California Corporation i ; ,T C: MLOUGHEADTrefumo.CCR 37 • • CERTIFICATE OF ACKNOWLEDGMENT State of California County of San Luis Obispo On ,before me, (An personally appeared Y. pei-sonall known to me or proved to me on the basis of satisfactory evidence) to be the person w ose name( is /ao subscribed to the within instrument and acknowledged to me that he /sWe/th� executed the same in his /hjr /th�ir authorized capacity(ie, and that by his /he/their signatures(o on the instrument the person, or the entity upon behalf of which the person(4 acted, executed the instrument. WITNESS my hand and official seal. Signature 00VLP/Aj- *- • ' MARGARET ALVARADO ' Y COMM. #1271970 NOTARY PUBLIC-CALIFORNIA (n SAN LUIS OBISPO COUNTY O C•17 My Comm. Expires July 27. 2004 y (seal) • TRUSTEE OR BENEFICIARY CONSENT TO GRANT OF EASEMENT / v� C is- .a (�rst�)(Beneficiary) under Deed of Trust(s) dated 3 , executed by ✓ recorded _ as Instrument Number(s) of Official Records in the Office of the County Recorder, County of San Luis Obispo, State of California. The Deed(s) of Trust encumber(s) the real property described in the attached. deed. As the (Trustee)(Beneficia_ry) of the said deed(s), (Trustee)(Beneficiary) hereby consent(s) to the execution and recordation of the deed, and agrees that upon recordation of the deed, (Trustee's)(Beneficiary's) interests in said real property: (1) shall be subordinate to the deed. Date: / 2 - Trustee /Beneficiary <Xe, :g-! ..;z Date: 11 as- Zoo ln�s/Benefic "#�RDrr��, �V P Mb -� ' CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California County of San Luis Obispo On November 28, 2000 before me, K. A. Klempke, Notary Public, personally appeared Clarence C. Cabreros and Steven Harding, ® personally known to me - OR - 0 proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his/her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, K. A. KLEMPKE N executed the instrument: r 4 COMM. #1238026 NOTARY PUBLIC - CALIFORNIA SAN LUIS OBISPO COUNTY O My Comm. Expires Nov s, 2003 WITNESS my hand and official seal. Signature of Notary OPTIONAL . Though the data below is not.required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER (PRINCIPAL) Individual Corporate Officer Title Partner(s) FI Limited E] General ❑ Attorney -in -Fact Trustee(s) Guardian/Conservator Other: Absent Signer (Principal) is Representing: ADM -005 (06/00) DESCRIPTION OF ATTACHED DOCUMENT Trustee or Beneficiary Consent to Grant Easement Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Name(s) Above TRUSTEE OR BENEFICIARY CONSENT TO GRANT OF EASEMENT �P/�" /fE'�TTAf� 's a atie#eej(Beneficiary) under Deed of Trust(s) dated eexecuted by recorded as Instrument Number(s) of Official Records in the Office of the County Recorder, County of San Luis Obispo, State of California. The Deed(s) of Trust encumber(s) the real property described in the attached deed. As the (Trustee)(Beneficiary) of the said deed(s), (Trustee)(Beneficiary) hereby consent(s) to the execution and recordation of the deed, and agrees that upon recordation of the deed, (Trustee's)(Beneficiar)(s) interests in said real property: (1) shall be subordinate to the deed. Date: - 24 0 Date: T� ,• eficia 0 �- ZJW�r�'� CERTIFICATE OF ACKNOWLEDGMENT State of California County of San Luis Obispo On � NW6/ before me, Q-L�l . �. personally appeared � ersona v known to m or proved to me on the basis of satisfactory evidence) to be the person(' who a name( is /a� subscribed to the within instrument and acknowledged to me that he /sl / /thjy ex cuted the same in his/h /r /t eir authorized capacity(i ), and that by his /h4 /thor signaturesV on the instrument the person( , or the entity upon behalf of which the person( acted, executed the instrument. WITNESS my hand and official seal. Signature *- MARGARET ALVARADO ' COMM. 11271970 ' NOTARY PUBLIC - CALIFORNIA (n SAN LUIS 081SP0 COUNTY 0 (seal) Premium fully earned upon issuance PERFORMANCE BOND KNOWN ALL MEN BY THESE PRESENTS: Bond #3SM 985 917 00 Premium: $21,000/2 Years WHEREAS, the Council of the City of San Luis Obispo, State of California, has entered into an agreement dated , 20 , whereby RICHARD LOUGHEAD, INC., a Califomia Corporation, hereinafter designated as "Principal ", agreed to make and complete all of the improvements required for the final approval of TRACT 2193 as set forth in said agreement; and WHEREAS, said Principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement; NOW, THEREFORE, we, the Principal and Amari r-an Mntnri ctc Tnc„rance Company as Surety, are held and firmly bound unto the City of San Luis Obispo, = (hereinafter called "Owner), in the penal sum of One million, four hundred thousand dollars and no cents, ($1,400,000.00), lawful money of the United States, for the payment of which sum well and,.truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounden Principal,----- - - - - -- his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants and conditions in the said agreement and any alteration thereof made as therein provided, or his or their part, to be kept and performed .at the time and in the -manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless Owner, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force, virtue and effect. And the said Surety for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or additions to the terns of the contract or to the work or to the specifications. In the event suit is brought upon this bond by Owner and judgment is recovered, Surety shall pay all costs incurred by Owner in such suit, including a reasonable attorney's fee to be fixed by the Court. Death of the Principal shall not relieve Surety of its obligations hereunder. IN WITNESS WHEREOF, four identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by Principal and Surety above named, on .this 17th day of November 20 00 RICHARD LOUGHEAD, INC., a Calitfornia Corporation By: Ri and . Loughea�Jr. Pr esident Z an Motorists Insurance Company 1, SharriP .Tnnp-q- Attornen' -in fn - SURETY 7470 -N. Figueroa Ave. Los Angeles, CA 90041 ADDRESS NOTE: Signature of those executing for Surety must be properly acknowledged. CITY OF SAN LUIS OBISPO MAYO Allen K Settle ATTEST: , CITY CLERK Lee'P ice APPROVED AS TO FOR CITY ATTORNEY Jeffrey G. Jorgensen CALIFORNIA ALL OURPOSE ACKNOWLEDGE State of California County of Oran On NOV 7 ZOO before me, Susan E. Morales/Notary Public NANIE, TITLE OF OFFICER personally appeared Sherrie Jones NAME OF SIGNER(S) ® Personally known to me or . ❑ Proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in —SUSAN E. MORALES his/her/their authorized ca acit (ies), and that by hislherltheir a COMM. #1166606 p y g am NOTARY Pj8tIC CALIFORNIA v signatures) on the . instrument the person(s), or the entity upon �I ORANGE COUNTY ro My Comm. Exp. Dec. 25,. 200 i� behalf-of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Mel OF NOT. OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.. CAPACITY CLAEMED BY SIGNER ❑ INDIVIDUAL /OWNER ❑ CORPORATE OFFICER TITLES) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ® ATTORNEY -IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN /CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) DESCRIPTION OF ATTACHED DOCUMENT Bond(s) TITLE OR TYPE OF DOCUMENT American Motorists Insurance Company Lumbermens Mutual Casualty Company American Manufacturers Mutual Insurance Company NUMBER OF PAGES DATE OF DOCUMENT s PAYMENT BOND 0 Bond # 3SM 985 917 00 Premium included in performance bond WHEREAS, the Council of the City of San Luis Obispo, State of California, and RICHARD LOUGHEAD, INC., a California Corporation, hereinafter designated as "Principal°, have entered into an agreement for TRACT 2193 which said Agreement, and all of the Contract Documents attached to or forming a part of said Agreement, are hereby referred to and made a part hereof; and WHEREAS, pursuant to law, the Principal is required before entering upon the performance of the Work, to file a good.and sufficient bond with the body by whom the contract is awarded, to secure claims to which reference is made in Sections 3247 thru 3252, inclusive, of the Civil Code of California, and Sections 3181, 3110, 3111 and 3112 of the Civil Code of California, NOW, THEREFORE, said Principal and the undersigned American Motorists Insurance Company as corporate surety, are held and firmly bound unto the City of San Luis Obispo, and unto all laborers, material -men and other persons referred to in said statutes in the sum of Seven hundred thousand dollars and no cents ($700,000.00), lawful money of the United States for the payment of which sum well and truly made, we bind ourselves, our heirs, executors,, administrators, successors, or assigns, jointly and severally by these presents. The condition of this obligation is such that if the said Principal, his or its heirs, executors, administrators, successors or assigns, or subcontractors, shall fail to pay any of the persons named in Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board, from the wages of employees of the Principal and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor, that the surety herein will pay for the same in an amount not exceeding the sum specked in this bond, otherwise the above obligation shall be void. In case suit is brought upon this bond, the said surety will pay a reasonable attorney's fee to be fixed by the court. This bond shall inure to the benefit of any of the persons named in Civil Code Section 3181 as to give a right of action to such persons or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force, virtue, and effect. And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of said contract or to the Work to be performed thereunder or the specifications accompanying the same shall in any manner effect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration, or addition. Death of the Principal shall not relieve Surety of its obligations hereunder. IN WITNESS WHEREOF four identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety named above, on the 17th day of November 2000 RICHARD LOUGHEAD, By: J. a California Corporation Amur Motorists Insurance Company ' I / Sherrie Jones, Attorney in fact �I1IIalkvi 7470 N. Figueroa Ave.. Los Angeles, CA 900.41. ADDRESS CITY OF SAN LUIS OBISPO MAYOR AI ATTEST: Settle CITY CLERKZLee Price. APPROVED AS TO FORM: CITY ATTORNEY Jeffrey G. Jorgensen NOTE: Signatures of those executing for Surety must be properly acknowledged. CALIFORNIA ALL ObRPOSE ACKNOWLEDGE State of California County of Orange On ' O V 1 7 2000 personally appeared before me, Susan E. Morales/Notary Public NAME, TITLE OF OFFICER Sherrie Jones NAME OF SIGNER(S) ® Personally known to me - or • ❑ Proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in a his/her/their authorized capacity(ies), and that by his/her/their 11 SUSAN E. MORALES �+ COMM. #1166606 signature(s) on the instrument the person(s), or the entity upon NOTARY P CALIFORNIA ORANGE GE COUNTY 3v behalf of which the person(s) acted, executed the instrument. ro My Comm. Exp. Dec. 25, 2001 I6 WITNESS my hand and official seal. (SIGNATURE OFNO TAR 1) C IONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAMED BY'SIGNER ❑ INDIVIDUAL /OWNER ❑ CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ® ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN /CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: NAN M OF PERSON(S) OR ENTITY(IES) DESCRIPTION OF ATTACHED DOCUMENT Bond(s) TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT American Motorists Insurance Company Lumbermens Mutual Casualty Company American Manufacturers Mutual Insurance Company MEMPER. � Home Office: Long Grove, IL 60049 POWER OF ATTORNEY Know All Men By These Presents: r1 That the Lumbermens Mutual Casualty Company, the American Motorists Insurance Company, and the American Manufacturers Mutual Insurance Company, corporations organized and existing under the laws of the State of Ilinois, having their principal office in Long Grove, Illinois, (hereinafter collectively referred to as the 'Company") do hereby appoint Sherrie Jones of San Mateo, California f ..............fiif.•f ifffffHffff...fff.f..ff fiffff.f....fff.f.if.fff.lf.. their true and lawful agent(s) and attomey(s )-in -fact, to make, execute, seal, and deliver during the period beginning with the date of issuance of this power and ending on the date specified below, unless sooner revoked for and on its behalf as surety, and as their act and deed: Any and all bonds and undertakings .............. f.,,.. f,,. f..,,,... ffH.. ff.. f..,....... .....,..f.,,.....f.f.,f,.,..... J•' EXCEPTION: NO AUTHORITY is granted to rh.Ue, execute, seal and deliver any bond or undertaking which guarantees the payment or collection of any promissory note, check, draft or letter of credit. This authority does not permit the same obligation to be split into two or more bonds in order to bring each such bond within the dollar limit of authority as set forth herein.. This appointment may be revoked at any time by the Company. The execution of such bonds and undertakings in pursuance of these presents shall be as binding upon the said Company as fully and amply to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal office in Long Grove, Illinois. THIS APPOINTMENT SHALL CEASE AND TERMINATE WITHOUT NOTICE AS OF December 31, 2001 This Power of Attorney is executed by authority of resolutions adopted by the Executive Committees of the Boards of Directors of the Company on February 23, 1988 at Chicago, Illinois, true and accurate copies of which are hereinafter set forth and are hereby, certified to by the undersigned Secretary as being.in full. force and effect: -- "VOTED, That the Chairman of the Board, the President, or any Vice President, or their appointees 'designated in writing and filed with the Secretary, or the Secretary shall have the power and authority to appoint agents and attomeys -in -fact, and to authorize them to execute on behalf of the Company, and attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other writings, obligatory in the nature thereof, and any such officers of the Company may appoint agents for acceptance of process." This Power of Attorney is signed, sealed and certified by facsimile under and by authority of the following resolution adopted by the Executive Committee of the Boards of Directors of the Company at a meeting duly called and held on the 23rd day of February, 1988: "VOTED, That the signature of the Chairman of the Board, the. President, any Vice President, or their appointees designated in writing and filed with the Secretary, and the signature of the Secretary, the seal of the Company, and certifications by the Secretary, may be affixed by facsimile on any power of attorney or bond executed pursuant to resolution adopted by the Executive Committee of the Board of Directors on February 23, 1988 and any such power so executed, sealed and certified with respect to any bond or undertaking to which it is attached, shall continue to be valid and binding upon the Company.' In Testimony Whereof, the Company has caused this instrument to be signed and their corporate seals to be affixed by their authorized officers, this August 17, 2000. Attested and Certified: Robert P. Hames, Secretary �,IlT ♦ J �av�o° XMM � conl u ( l o by Lumbermens Mutual Casualty Company American Motorists Insurance Company American Manufacturers Mutual Insurance Company lL z7 u-, J. S. Kemper, 111, Exec.Vice President STATE OF ILLINOIS SS . COUNTY OF LAKE I, Irene Klewer, a Notary Public, do hereby certify that J. S. Kemper, III and Robert P. Harries personally known to me to be the same persons whose names are respectively as Exec. Vice President and Secretary of the Lumbermens Mutual Casualty Company, the American Motorists Insurance Company, and the American Manufacturers Mutual Insurance Company, Corporations organized and existing under the laws of the State of Illinois, subscribed to the foregoing instrument, appeared before me this day in person and severally acknowledged that they being thereunto duly authorized signed, sealed with the corporate seals and delivered the said instrument as the free and voluntary act of said corporations and as their own free and voluntary acts for the uses and purposes therein set forth. My commission expires 1 -28 -02 CERTIFICATION AAAAAAAAAAAAA t =OFFICIAL SEAL" ► -0 Irene Mower ► -0 Notary PuDlle, State of IWnole ► f " Gomm is7ioa Expires Jan 29. WOE 7TTTTTTTrrTTT Irene Klewer, Notary Public I, J.K. Conway, Corporate Secretary of the Lumbermens Mutual Casualty Company, the American Motorists Insurance Company, and the American Manufacturers Mutual Insurance Company, do hereby certify that the attached Power of Attorney dated August 17, 2000 on behalf of the person(s) as listed above is a true and convect copy and that the same has been in full force and effect since the date thereof and is in full force and effect on the date of this certificate: and t• do further certify that the said J. S. Kemper, III and Robert P. Harries, who executed the Power of Attorney as Executive Vice President and Secretary respectively were on the date of the execution of the attached Power of Attorney the duly elected Executive Vice President and Secretary of the Lumbermens. Mutual Casualty Company, the American Motorists Insurance Company, and the American Manufacturers Mutual Insurance Company. IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed the corporate seal of the Lumbermens Mutual Casualty Company, the American Motorists Insurance Company, and the American Manufacturers Mutual Insurance Company on this IdOV 17 2000 +�wtl 4so as Mal /" �'qts In". P all t C a Y u wane r M0 i*a SIAL geaarounea 3 d C4 V J. K. Conway, Corporate Secretary This Power of Attorney limits the ads of those named therein to the bonds and undertakings specifically named therein and they have no authority to bind the Company except in the manner and to the extent herein stated. FK 0362 6-96 Power of Attorney -Term Printed in U.S.A FIRE MANAGEMENT PLAN PREFUMO CREEK HOMES PROJECT Tract 2193, San, Luis Obispo, California jgPRft4ro / 9RE PREY. 1 BUREAU s�s�o Prepared by Larry R. Flagg Flagg Fire Protection Consulting September 22, 1997 (rev. November 2000) FIRE MANAGEMENT PLAN PREFUMO CREEK HOMES PROJECT Tract 2193, San Luis Obispo, California Prepared by Larry R. Flagg Flagg Fire Protection Consulting September 22, 1997 (rev. November 2000) On site Vegetation and Combustible Fuel An on site review of the existing plant material was made for the Prefumo Creek Homes Development. Several species of coastal scrub, oak woodland, chaparral and grasses were observed. Many of these will require modification to provide defensible space, structure protection, and firefighter safety. Coastal Scrub Community This community is dominated by small to medium sized (3 -6 feet tall) shrubs with herbaceous understory. In some places, the shrubs form a dense, almost impenetrable woody plant cover. Most of the dominant shrubs are comparatively soft - stemmed plants that undergo significant dieback during the summer drought season. This coast scrub community occurs in several patches on the rocky slopes at the fringe of the coast live oak woodland end along the valley that borders Prefumo Creek. In both areas it forms a mosaic with the grassland and also integrates with the coast live oak woodland and to a lesser extend the riparian woodland. The most common species are: Artemisia californica /California sagebrush Baccharis pilularis /Coyote bush Mimulus aurantiacus /Bush monkeyflower Toxicodendron diversilobum /Poison oak Other common associated shrubs include: Hazardia squarrosa /Square- toothed goldenbush Lonicera hispidula /Honeysuckle Lotus scoparius /deerweed Rhamnus californica /Coffee -berry Salvia mellifera /Black sage Symphoricarpos moll is/S nowberry Genista monspessulana /French Broom (non- native) has invaded this plant community. Coast Live Oak Woodland On the hillsides adjacent to and around the site, the oak woodland is typically composed of pure strands of oaks, although a few California bay - laurel are present. Coast live oak woodland is common on the north facing slopes and canyons of the open space area above Prefumo Creek. Coast live oak woodland is the predominant vegetation type in the area. The most common species are: Quercus agrifolia /Coast live oak Umbellularia californica /California bay - laurel Heteromeles arbutifolia/Toyon Common understory species include: Mimulus aurantiacus /Bush monkeyflower Toxicodendron diversilobum /Poison oak Rhamnus californica /Coffee -berry Lonicera hispidula /Honeysuckle Ribes speciosum /Fucshia- flowered gooseberry Chaparral Chaparral on the site is somewhat variable in composition and structure depending on local habitat conditions such as slope, exposure, soil development, etc. This plant community forms a mosaic with the coastal scrub and coast live oak woodland. Most of the chaparral stands adjacent to the proposed development are dominated by the following species: Adenostoma fasciculatum /Chamise Ceanothus cuneatus /Buckrush Quercus durata /Leather oak Eriogonum parvifolium/Coast buckwheat Riparian Woodland The riparian community along Prefumo Creek is a relatively diverse corridor of forest vegetation. The dominant tree species include: Plantanus racemosa /Sycamore Quercus agrifolia /Coast live oak Salix lasiolepis /Arroyo Willow Umbellularia californica /California bay - laurel Eucalyptus globules /Blue gum (non- native) Cupressus macrocarpa /Monterey cypress (native to Monterey) The dominant shrub species include: Heteromeles arbulifolia/Toyon Sambucus mexicana /Elderberry Baccharis pilularis /Coyote bush Tosicodendron diversilobum /Poison oak Lonicera hispidula /Honeysuckle Rubus ursinus /California blackberry Symphoricarpos mollis /Snowberry Genista monspessulana /French Broom (non- native) has invaded this plant community. The grassland areas are considered Southern California Grasslands. Vegetation Management Fuel modification is necessary to reduce the intensity of a wildfire by reducing the volume and density of flammable vegetation. Fuel modification will provide increased safety for firefighters, a point of attach or defense from a wildfire and strategic siting of fuel breaks. Fuel breaks are generally constructed to separate development and adjacent wildlands by reducing the volume of vegetation through thinning or pruning. In the area of protecting structures from an encroaching wildfire the use of landscaping plans, irrigated lawns and the removal of all flammable fuels are most common. Recommendations: Structure protection "Lots 1 -35" and Zone "A" — Each lot owner shall be required to comply with the Uniform Fire Code (1997 edition) Appendix II- A, Section 16: CLEARANCE OF BRUSH OR VEGETATIVE GROWTH FROM STRUCTURES. Persons owning, leasing, controlling, operating or maintaining buildings or structures in, upon or adjoining hazardous fire areas, and persons owning, leasing or controlling land adjacent to such buildings or structures, shall at all times: A. Maintain an effective firebreak by removing and clearing away. flammable vegetation and combustible growth from areas within 30 feet (9144mm) of such buildings or structures. (See exceptions. This requirement does not require the removal of individual trees.) B. Maintain additional fire protection or fuel break by removing brush, flammable vegetation and combustible growth located 30 to 100 feet from such buildings or structures or when required by the Chief because of extra hazardous conditions causing a firebreak of only 30 feet or insufficient to provide reasonable fire safety. (See exceptions. This requirement does not require the removal of individual trees, large treelike shrubs, or pre- designated areas providing special habitat values.) Exceptions: Single specimens of trees, ornamental or native shrubbery or similar plans used as ground covers, provided that they do not form a means of rapidly transmitting fire from the native growth to any structures. Grass and other vegetation located more than 30 feet from buildings or structures and less than 18 inches in height above the ground need not be removed, if necessary to stabilize the soils and prevent erosion, or to provide pre - designated wildlife habitat protection area. Grass areas within 30 feet of property lines or buildings shall be cut to a height of no more than 4 inches. 2. Creekside Canopy Lots 1 — 12 and Lots 14 and 16. The majority of flammable vegetation (undergrowth of brush, broom, poison oak, dead material and debris) should be removed from the creek edge to the rear and side property lines (with the exception of pre- designated wildlife habitat areas). All trees will require pruning of lower limbs to a minimum height of 6 foot 8 inches from ground level to allow the walking under (with exception of pre- designated wildlife habitat protection areas). 3. Creekside Canopy Lot 1 northwest along Lot 36. Continue removal of most flammable vegetation (undergrowth of brush, broom, poison oak, dead material and debris) from the creek edge to internal roadside (with the exception of pre- designated wildlife habitat areas). All trees will require pruning of lower limbs to a minimum height of 6 foot 8 inches from ground level to allow the walking under (with the exception of pre - designated wildlife habitat protection areas). 4. Zone "B" and C. The majority of brush, broom, chamise, poison oak, shrubs, dead material and debris need to be removed from Zone B and C (with the exception of pre- designated wildlife habitat protection areas). Single specimens of trees may remain within these zones and should be limbed up for a minimum of 6 foot 8 inches to allow the walking under. Pre - designed "islands" of brush may be retained for wildlife cover or other habitat purposes, provided they are not continuous. Light flashy fuels such as grass is not required to be removed in this area. Flammable grasses should not exceed 18 inches in height during the summer months, normally May through November. 5. Zone "C" Lots 33 through 35. Remove the majority of brush, broom, chaparral, poison oak, shrubs, dead material and new growth trees in the vicinity of existing fence line back to "old growth" oak woodlands. This is a narrow strip of dense vegetation within a wildland interface that will 4 • i provide exposure to structures in the event of an encroaching wildland fire (with the exception of the pre- designated wildlife protection area). 6. Zone "C" Lots 27 through 30. Remove the majority of brush, broom, chaparral, chamise, poison oak, shrub and dead material from the existing fence line. This is a narrow strip of dense vegetation, which should be reverted back to native grasslands (with the exception of pre- designated wildlife habitat protection area). 7. Lots 14 and 15 southwest property lines. An easement should be obtained from the adjacent property owner to complete the fire safety improvements around the structural development. Creekside improvements and vegetation modifications recommended for Zone B and C should extend into the easement of the adjacent property. C. Remove portions of trees that extend within 10 feet of the outlet of a chimney. D. Maintain trees adjacent to or overhanging a building free of deadwood. E. Maintain the roof of a structure free of leaves, needles or other dead vegetative growth. Emergency Ingress /Egress Road Access is a major fire protection need, whether it is a wildland or structural fire, flood or rescue. This development needs the proposed emergency ingress /egress access route. Failuer to provide a reasonable alternative access for emergency equipment and evacuation exits for civilians can result in major loss of life, property and natural resources. A primary road is being proposed for the project complying with the Uniform Fire Code in width and turnaround. The emergency access road would be approximately 850 feet in length and is intended as "secondary use" and should be extended from at Lot 35 following the footpath southwest intersecting Prefumo Canyon Road. The emergency access road will be gated restricting normal access. Recommendation: 1. Road width. The road shall be constructed to provide a minimum twelve - foot (6.096m) unobstructed width. 2. Roadway surface. The surface shall be designated to support an H -20 load or a 60,000 -pound engine. • 3. Roadway clearance. The unobstructed vertical clearance shall not be less than 13 foot 6 inches. 4. Roadway turnouts. A minimum of 3 turnouts should be installed between Prefumo Canyon Road and the grass meadow to the east. Turnouts require a minimum of 10 feet width, 25 foot long and tapered on each end. This will provide areas of spacing of any oncoming traffic. 5. Vegetation removal. On both sides of the emergency access road, the majority of flammable vegetation (brush, broom, chaparral, chamise, grass, poison oak, dead material and debris (with the exception of pre - designated wildlife habitat protection area), need to be removed for a distance of 10 feet providing a safety zone for firefighters. It is not the intent of this standard to remove single specimens of trees within the zone. 6. Fuel modification. Zone B should be extended to the northwest from Lot 35 to Prefumo Canyon Road, on the southwest, parallel to the emergency access road. Within this extended Zone B, the majority of brush, broom, chamise, poison oak, shrubs, dead material and debris needs to be removed from within Zones B and C (with the exception of pre- designated wildlife habitat protection area). Single specimens of trees may remain within these zones and should be limbed up to a minimum of 6 foot 8 inches to allow for walking under. Light flashy fuels -such as grass is not required to be removed in this area. Flammable grasses should not exceed 18 inches in height during the summer months, normally May through November. • CITY OF SAN LUIS OBISPO CERTIFICATE OF APPROVAL DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS TRACT NO. 2193 PREFUMO CREEK HOMES Date of Approval: 11/30/00 Approved as to form: Approved as to content: omTdnity 74lopment Director END OF DOCUMENT