Mammoth Lakes City Council
July 12, 2023

Town Council Special Meeting Agenda

Wednesday, July 12, 2023, 4:00 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members of the Town Council:

Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice
NOTE: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (760) 965-3602. Notification prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 13.102-35.104 ADA Title II)
NOTE: Materials related to an item on this agenda submitted after distribution of the agenda packet are available for public inspection in the Town Offices located at 437 Old Mammoth Road, Suite 230 during normal business hours. Such documents are also available on the Town of Mammoth Lakes website at www.townofmammothlakes.ca.gov subject to staff’s ability to post the documents before the meeting.

NOTE: You may attend the Town Council meetings in person or watch them on the Town of Mammoth Lakes' website at www.townofmammothlakes.ca.gov, on the local cable channel 18, or via Zoom. Public comments can be submitted to the Town Clerk at [email protected] before and during the meeting, or may be made in person or via Zoom.

NOTE: All comments will be limited to a speaking time of five minutes.

ZOOM INFORMATION
Join from a PC, Mac, iPad, iPhone, or Android device:

Please type in or cut and paste in this URL to join. https://monocounty.zoom.us/s/92958002088 Or join by phone:

Dial (for higher quality, dial a number based on your current location):

US: +1 669 900 6833 or +1 253 215 8782 or +1 346 248 7799 or +1 301 715 8592 or +1 312 626 6799 or +1 646 876 9923
Webinar ID: 929 5800 2088
International numbers available: https://monocounty.zoom.us/u/acobwlnMsm Public comments can also be given through Zoom by logging in or dialing in and raising your hand.

1. CALL TO ORDER AND ROLL CALL

2. PLEDGE OF ALLEGIANCE

3. PUBLIC COMMENTS
The Public Comment portion of the agenda provides the public with an opportunity to address the Town Council on matters not otherwise listed on the agenda. Under California law the Town Council is prohibited from generally discussing or taking action on items not included in the agenda; however, the Town Council may briefly respond to comments or questions from members of the public. Therefore, the Town Council will listen to all public comment, but will not generally discuss the matter or take action on it. Requests for service from the Town may also be made at the Town offices during regular business hours.

Members of the public desiring to speak on a matter appearing on the agenda should ask the Mayor for the opportunity to be heard when the item comes up for Council consideration.

4. ADDITIONS TO THE AGENDA
Opportunity to add urgency items pursuant to Government Code Section 54954.2(b)2, if necessary; and to remove items from consent for separate discussion.

5. REPORTS FROM COMMISSIONS AND/OR DEPARTMENTS (AS NEEDED)

5.1 July 2023 Public Works Engineering CIP Update.

6. COUNCIL PRESENTATIONS

6.1 Proclamation of the Town Council of the Town of Mammoth Lakes, State of California, declaring July 2023 as Park and Recreation Month.

7. CONSENT AGENDA

7.1 Approve the minutes of the special meeting of June 14, 2023.

7.2 Approve the minutes of the regular meeting of June 21, 2023.

7.3 Accept the Amended Mammoth Creek HOA CC&R’s.

7.4 Town Council review and acceptance of the 2022 Community Indicators Report.

7.5 Accept Check Register 6/15/2023 in the amount of $847,038.31. Accept Check Register 6/21/2023 in the amount of $121,037.64. Accept Check Register 6/23/2023 in the amount of $163,625.00.

8. POLICY MATTERS

8.1 AB 481 Military Equipment Use Policy.

8.2 Waive the reading and introduce by title only the ordinance adopting Municipal Code Chapter 8.15, Foodware and Food Packaging.

8.3 Schedule a Town Council Community Housing Solutions Workshop.

8.4 Legislative Update and Council Direction on Pending Bills in the State Legislature.

8.5 Eastern Sierra Comprehensive Economic Development Strategy (CEDS) Draft Review and Finalization Process.

8.6 Resolution finding emergency circumstances to justify the award of an emergency contract to repair storm damaged Town infrastructure at the Mammoth Yosemite Airport.

8.7 Emergency Declaration Update and approval of necessity to continue emergency contract work as provided for in Resolution 23-29.

9. COUNCILMEMBER REPORTS
Informational reports from Councilmember representatives on committees, commissions, and organizations; general reports on Councilmember activities

10. CLOSED SESSION

10.1 Pursuant to Government Code Section 54956.8, the Town Council will hold a conference with its representatives in regard to property negotiations pertaining to:

Property: 379 South Landing Road, Crowley Lake (APN: 060-210-031-000) Agency Negotiators: Daniel C. Holler, Sandra Moberly, and Rob Patterson Negotiating Parties: Town of Mammoth Lakes and Property Owner, Crowley Lake Estates LP
Under Negotiation: Sales price and terms of payment for the purchase of the property

10.2 CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION (Paragraph 1 of subdivision (d) of Section 54956.9) Name of case: Main Street Taxpayer Association v. Town of Mammoth Lakes (Case No. : 23UCM82)

10.3 CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION (Paragraph 1 of subdivision (d) of Section 54956.9) Name of case: Main Street Taxpayer Association v. Town of Mammoth Lakes Case No. 23UCM12)

11. ANNOUNCEMENT OF ACTION TAKEN AFTER CLOSED SESSION

12. ADJOURNMENT
The Town Council will adjourn to a regular meeting to be held on Wednesday, July 19, 2023 at 4:00 p.m.

Mammoth Lakes Town Council
Agenda Action Sheet
Title: July 2023 Public Works Engineering CIP Update.

Council Meeting Date: 7/12/2023
Prepared by: Public Works
Recommended Motion: None.

Summary:

The July 2023 CIP update includes most of the Town’s active construction projects. Laurel Mountain Road and Chapparal Road projects are underway. Work continues on the CRC & Parcel.

Emergency work is ongoing. Staff plans to bid the dog park and fuel island projects in late July.

A number of other projects are in development and not reflected in this quick update.

Capital Project Update
July Update
Created 7-5-23
Project Notes
2023 Emergency
Infrastructure Repair
Contractor plans to start work by removing and replacing damaged sidewalk panels on Old Mammoth Rd and Meridian Blvd. Due to Town-wide difficulties in procuring small amounts of concrete, Contractor plans to mix concrete on-site.

CRC Concrete poured in locker rooms. Purlins being raised and South glazing wall installed. Interior framing and MEP work continues. Site being cleaned up. Damaged playground equipment has been ordered.

CRC - Mobility Hub Parking lot and bus stop/shelter is substantially complete. TOML has taken delivery of parking lot solar lighting.

CRC - Interior Work Waiting for CRC completion so interior work can begin. Staff is recommending that this work be bid this summer for Fall construction.

The Parcel PH 1 Contractors are testing the plumbing system, working on the Childcare Center MEP. Framers are finishing the high roof. Repair to Tyvek with plan to install siding in 1 month. Start dry utilities & SCE vaults in a week.

Ballfields Rehabilitation
Whitmore/Shady
Chain link fence and gate installation was completed on 6/8/23. Infield mix has been spread and dragged and bases installed. Field 2 is ready for softball and little league play! There may be some minor additional work on fields 2 and 3 later in the summer, including the purchase of additional infield mix to be used as a stockpile for the future.
60 Joaquin The applicant has received approval from PEDC and has submitted an application for a building permit.

OMR Beautification Town staff continues active negotiations with multiple local contractors to perform phase 1 of this project this summer.

Main Street Landscaping Town staff continues active negotiations with multiple local contractors to perform phase 1 of this project this summer.

HSIP Intersection crossings The project has been awarded and we are in the midst of signing contracts and receiving bonds.

The contractor has already been on site to walk the project and mark for USA Dig. We expect to begin work in July.

Chaparral Extension (The
Parcel)
The contractor was issued a notice to proceed effective 6/5. Tree removal was completed last year. Staff anticipates that the contractor will begin with underground utilities. Surveying and clearing have been completed
Laurel Mountain Rd Rehab
& Sidewalk
The contractor was issued a notice to proceed effective 6/5. The Town is entering into an agreement to complete the sidewalk along Sierra Nevada Resort (SNR). SNR will pay for these improvements. Sanitary sewer and storm drain utility work has begun. A complete schedule is forthcoming.

Fuel Island The Town has received 90% Plans, Specifications and an Estimate. We expect to have comments back to the consultant on those this week, with a bid going out by July 21st.

New Civic Center Staff and HMC architects continue to revise schematic floorplans and alternatives. The Town applied for a $12.6M grant to provide an Emergency Operations Center and expects to hear the results this summer.

Foundation Childcare The opening of the project is delayed since portables will not be available until 2024. Staff considering opening bid for foundation portion for portables, and then have the portables moved and finished up in 2024.

Mammoth Lakes Town Council
Agenda Action Sheet
Title: Proclamation of the Town Council of the Town of Mammoth Lakes, State of California, declaring July 2023 as Park and Recreation Month.

Council Meeting Date: 7/12/2023
Prepared by: Stuart Brown, Parks and Recreation Director Recommended Motion: Adopt the Proclamation declaring July as Park and Recreation Month in the Town of Mammoth Lakes.

Summary: Since 1985, people in the United States have celebrated Park and Recreation Month in July to promote building strong, vibrant, and resilient communities through the power of parks and recreation and to recognize the more than 160,000 full-time park and recreation professionals - along with hundreds of thousands of part-time and seasonal workers and volunteers - that maintain our country’s local, state, and community parks.

This year's theme “Where Community Grows” celebrates the vital role park and recreation professionals play in bringing people together, providing essential services and fostering the growth of our communities.

The Town of Mammoth Lakes Parks and Recreation Department is leading initiatives and providing opportunities for people of all ages, abilities, and identities to achieve healthier lifestyles, promote and understand nature and environmental resilience, as well as bringing the community closer through a variety of programs and services.

This July, join us for FREE swim days at the Whitmore Pool, the annual beach volleyball tournament at Shady Rest Park, Men’s and Coed Softball tournament at Shady Rest Park and register for any of our signature or contracted parks and recreation summer camps.

Learn more about Park and Recreation Month and find additional resources by visiting:
www.nrpa.org/July or follow us on Facebook at MammothParksnRec, online at www.townofmammothlakes.ca.gov or by calling (760) 965-3690.

We are all recreation – all the time!

PROCLAMATION OF THE TOWN COUNCIL OF THE TOWN OF MAMMOTH LAKES, STATE OF CALIFORNIA, DECLARING JULY 2023 AS

PARK AND RECREATION MONTH
WHEREAS, parks and recreation programs are a vital part of communities throughout this country, including the Town of Mammoth Lakes; and
WHEREAS, our parks and recreation are vitally important to establishing and maintaining the quality of life in our communities, ensuring the health of all citizens, and contributing to the economic and environmental well-being of a community and region; and WHEREAS, the services that park and recreation professionals provide are vital for our communities — from protecting open spaces and natural resources to helping fight obesity and providing activities and resources for all people; and WHEREAS, parks and recreation programs increase a community’s economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction; and WHEREAS, local parks, facilities and multi-use paths offer solace, independence, exercise, and the ability to enjoy healthy activities with family members outdoors, and WHEREAS the U.S. House of Representatives has designated July as Park and Recreation Month.

NOW THEREFORE, BE IT RESOLVED by the Town Council of the Town of Mammoth Lakes, State of California, that July is recognized as Park and Recreation Month in the Town of Mammoth Lakes.

APPROVED AND ADOPTED this 12
th day of July 2023

_________________________
JOHN WENTWORTH, Mayor
ATTEST:
________________________________
JAMIE GRAY, Town Clerk

Town Council of Mammoth Lakes
Minutes of Special Meeting
June 14, 2023, 4:00 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members Present: Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea,
Councilmember Amanda Rice
_____________________________________________________________________

1. CALL TO ORDER AND ROLL CALL
The Mayor called the meeting to order at 4:03 p.m. in the Council Chamber, 437 Old Mammoth Road, Suite Z, Mammoth Lakes.

2. PLEDGE OF ALLEGIANCE
Mammoth Lakes Tourism (MLT) Director of Marketing Brian Wright led the flag salute.

3. PUBLIC COMMENTS
John Morris commended the staff on the unallocated Transient Occupancy Tax (TOT) piece that had been put out by the Town and outlined the information in the piece.

David Sheek, Mammoth Tuff Gravel Cycling Event Promoter, provided background information about his event which was held annually in Mammoth each September, and spoke about special event funding and support he had received in the past from Mammoth Lakes Tourism ( MLT) and Measure A Funds.

Town Council Minutes
June 14, 2023

He spoke about his future plans for this and related events and spoke about MLT's responsible recreation messaging.

Andrew Kastor, Mammoth Track Club Board of Directors Vice President, announced that the Club had two athletes that would be headed to the World Championships in Track and Field this summer. Mr. Kastor reported that 50% of his Club's funding came from Measure A Funds provided through MLT to fund the athletes' training camps, housing, etc. and the other 50% which included his salary came from an ASICS sponsorship. He spoke about the importance of MLT's support and thanked them.

Tim Tollefson, Mammoth Hospital Physical Therapist, Professional Trail Runner, and Mammoth Trail Fest Event Producer, provided information about his event and its popularity, and commended MLT for its messaging globally as well as locally.

Director of Public Works Haislip Hayes and Outdoor Recreation Manager Lawson Reif outlined the information in the Lakes Basin and Reds Meadow presentation.

There was discussion among members of Council and staff.

4. PUBLIC HEARINGS

4.1 Public Hearing on the Mammoth Lakes Tourism Business Improvement District (MLTBID) renewal and adoption of related resolution and ordinance.

Mayor John Wentworth opened the public hearing at 4:29 p.m.

Town Manager Daniel C. Holler outlined the information in the staff report.

Jean Harris said that as a point of order he requested a continuance of this item. Town Attorney Andrew Morris responded.

John Urdi, Mammoth Lakes Tourism (MLT) Executive Director, reported that there was overwhelming support for a ten-year renewal of the TBID.

He said that the two previous TBID periods were for five years each.

PUBLIC COMMENT:

John Morris, MLT Board Treasurer, thanked Town staff, Town Council, the attorneys involved, and MLT staff for their work on the TBID renewal. Mr.

Morris spoke about the various means in which members of the community could become involved and to provide input. He requested that joint meetings between MLT and the Town Council start up again.

Town Council Minutes
June 14, 2023

Jeremy Goico, MLT Chair, spoke about the extensive efforts put toward the TBID renewal process. Mr. Goico spoke about the challenges the community had faced over the past three years, and the benefits provided by the TBID. He discussed MLT's responsible recreation messaging.

Ken Brengle, Mammoth Lakes Chamber of Commerce Executive Director, thanked the Town Council for their support of the TBID, and said that the Chamber still supported the 10-year option. Mr. Brengle discussed the number of letters received in support of, and in opposition to, the TBID.

Ron Cohen, Mammoth Mountain President and Chief Operating Officer, spoke about businesses in the district and the success they have had, and attributed part of that success to the TBID. Mr. Cohen spoke about the benefits of the TBID, how it would support our local businesses and air service and urged the Town Council to approve the TBID as presented.

Jean Harris representing the Main Street Taxpayers Association requested a continuance of tonight's meeting. Mr. Harris spoke in opposition to the renewal of the TBID.

Town Attorney Andrew Morris addressed some of Mr. Harris's concerns.

Mr. Holler noted that a majority of the petitioners supported the TBID renewal.

The Mayor closed the public hearing at 5:01 p.m.

There was discussion among members of Council and staff regarding the modifications to the Management District Plan.

Moved by Mayor Pro Tem Bill Sauser
Seconded by Councilmember Chris Bubser
Approve the modifications as proposed to the Management District Plan.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)
Moved by Mayor John Wentworth
Seconded by Mayor Pro Tem Bill Sauser

Town Council Minutes
June 14, 2023

Approve the Resolution of Formation Renewing the Mammoth Lakes Tourism Business Improvement District which includes the Modified Management District Plan, and to update #6 within the Resolution that the assessments levied for the MLTBID shall be applied towards sales, marketing, communications, media relations and improvement programs, and air service marketing and subsidy programs to market Mammoth Lakes Tourism businesses as tourist, meeting and event destinations, and other improvements and activities set forth in the Plan.

For (4): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, and Councilmember Sarah Rea Against (1): Councilmember Amanda Rice
Carried (4 to 1)
Moved by Mayor John Wentworth
Seconded by Mayor Pro Tem Bill Sauser
Waive the reading and adopt by title only the Ordinance approving the renewal of the MLTBID Ordinance 23-05, an ordinance of the Town Council of the Town of Mammoth Lakes, State of California renewing the Mammoth Lakes Tourism Business Improvement District.

For (4): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, and Councilmember Sarah Rea Against (1): Councilmember Amanda Rice
Carried (4 to 1)
The Mayor called a recess at 5:18 p.m. and the Council reconvened at 5:31 p.m.

5. POLICY MATTERS

5.1 Approval of Agreement between the Town of Mammoth Lakes and Mammoth Lakes Tourism for Implementation and Management of the Tourism Business Improvement District, Management District Plan.

Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff.

Town Council Minutes
June 14, 2023

Moved by Mayor John Wentworth
Seconded by Mayor Pro Tem Bill Sauser
Approve and authorize the Town Manager to sign the five-year Agreement, pending final legal review, between the Town of Mammoth Lakes and Mammoth Lakes Tourism for Implementation and Management of the Tourism Business Improvement District, (TBID) Management District Plan.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

5.2 Council Meeting Schedule Proposed Changes for July through September.

Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff.

CONSENSUS:

The Council directed staff to move forward with the proposed Council meeting schedule changes as discussed.

6. CLOSED SESSION
At 5:41 p.m. the Mayor announced that the Council would be entering into closed session for the purposes as stated in the agenda.

6.1 Pursuant to Government Code Section 54957, the Council will hold a conference to consider evaluation of a public employee: Town Manager.

7. ANNOUNCEMENT OF ACTION TAKEN AFTER CLOSED SESSION
The Council reconvened from closed session at 6:18 p.m. and announced that there was no reportable action taken.

Town Council Minutes
June 14, 2023

8. ADJOURNMENT
The Council adjourned the meeting at 6:18 p.m.

Jamie Gray, Town Clerk

Town Council of Mammoth Lakes
Minutes of Regular Meeting
June 21, 2023, 4:00 p.m.
437 Old Mammoth Road, Suite Z, Mammoth Lakes
Members Present: Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea,
Councilmember Amanda Rice
_____________________________________________________________________

1. CALL TO ORDER AND ROLL CALL
The Mayor called the meeting to order at 4:04 p.m. in the Council Chamber, 437 Old Mammoth Road, Suite Z, Mammoth Lakes.

2. PLEDGE OF ALLEGIANCE
Brent Truax led the flag salute.

3. PUBLIC COMMENTS
Rene Hallen, Buoy, spoke about their reusable to go containers and the upcoming pilot program in Mammoth.

Sandy Hogan spoke about issues with the audio in Suite Z, particularly during workshops, and the difficulty for hearing impaired individuals to hear the conversations because people do not speak directly into their microphones. Ms.

Hogan spoke about her frustration last night while she tried to watch the Mammoth Lakes Housing Strategic Planning Session.

Town Council Minutes
June 21, 2023

4. ADDITIONS TO THE AGENDA
There were no additions to the agenda.

5. REPORTS FROM COMMISSIONS AND/OR DEPARTMENTS (AS NEEDED) Office of Outdoor Recreation Manager Lawson Reif and Public Works Director Haislip Hayes gave an update regarding the opening of the Lakes Basin and Reds Meadow. Mr. Hayes said that they were working with the Eastern Sierra Transit Authority (ESTA) to potentially provide offsite parking with shuttle service to the Lakes Basin. There was discussion among members of Council and staff.

5.1 Did you Know? Clean-up our Community
Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff.

5.2 Did you Know? Budget
Mayor John Wentworth outlined the information in the staff report.

Community and Economic Development Director Sandra Moberly announced that she had accepted a job as the County Administrative Officer for Mono County effective August 21, 2023. There was discussion among members of Council and staff.

6. CONSENT AGENDA
Moved by Councilmember Amanda Rice
Seconded by Councilmember Sarah Rea
Approve the Consent Agenda with Councilmember Rice abstaining on Agenda Item 6.5 due to the close proximity of her residence to the project.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice Carried (5 to 0)

6.1 Approve the minutes of the regular meeting of June 7, 2023.

6.2 Approval of Resolution for Measure U Programming for FY22-23 program cycle in the amount of $180,300 and Special Project funding of $15.000.

Town Council Minutes
June 21, 2023

6.3 Authorize a professional services agreement with California Consulting Inc. for grant research and writing services.

6.4 Resolution authorizing the temporary closure of certain Town roads for the Annual Fourth of July Parade and Freedom Mile Run on July 4, 2023.

6.5 Award Contract for SR 203 Crosswalks (HSIP) CAP 22-007 to Xcel Engineering Corporation.

6.6 Authorize Public Works & the Office of Outdoor Recreation to submit a grant application to the State Recreational Trails Program.

6.7 Adopt the resolution declaring the Council’s intention to annex territories into the Community Facilities District No. 2013-3 (Transit CFD), levying a special tax in connection therewith, and setting the time and place for the public hearing on August 2, 2023.

6.8 Accept Check Register 6/1/2023 in the amount of $551,052.51.

7. PUBLIC HEARINGS

7.1 Town of Mammoth Lakes FY23-24 Master Fee Schedule Update.

The Mayor opened the public hearing at 4:42 p.m.

Administrative Services/Finance Director Rob Patterson outlined the information in the staff report. There was discussion among members of Council and staff.

The Mayor closed the public hearing at 4:46 p.m.

Moved by Mayor Pro Tem Bill Sauser
Seconded by Councilmember Amanda Rice
Adopt the attached resolution establishing and updating a master schedule of fees and charges for Town services for Fiscal Year 2023-24.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

Town Council Minutes
June 21, 2023

7.2 Approval of Appropriations Limit, Investment Policy, and Annual Budget for Fiscal Year 23-24.

The Mayor opened the public hearing at 4:47 p.m.

Administrative Services/Finance Director Rob Patterson outlined the information in the staff report. There was discussion among members of Council and staff.

The Mayor closed the public hearing at 5:33 p.m.

Moved by Mayor Pro Tem Bill Sauser
Seconded by Councilmember Amanda Rice
Adopt a resolution establishing the Town of Mammoth Lakes appropriations limit for Fiscal Year 2023-24. Adopt a resolution reaffirming the Town of Mammoth Lakes Investment Policy for Fiscal Year 2023-24.

Adopt a resolution reaffirming the Town of Mammoth Lakes Reserve Policy for Fiscal Year 2023-24. Adopt a resolution reaffirming the Town of Mammoth Lakes Debt Policy for Fiscal Year 2023-24. Adopt a resolution approving the Annual Budget for the Town of Mammoth Lakes for Fiscal Year 2023-24, as presented.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)
The Mayor called a recess at 5:35 p.m. and the Council reconvened at 5:44 p.m.

8. POLICY MATTERS

8.1 Approve Agreement between the Town of Mammoth Lakes and Mammoth Lakes Tourism for Marketing and Related Services.

Administrative Services/Finance Director Rob Patterson outlined the information in the staff report. There was discussion among members of Council and staff.

Town Council Minutes
June 21, 2023

PUBLIC COMMENT:

John Morris, Mammoth Lakes Tourism (MLT) Treasurer, thanked the Council for their time spent on this topic and encouraged members of the public to read the Unallocated Transient Occupancy Tax (TOT) document previously provided by the Town. Mr. Morris spoke about the revenue that was generated by tourism and how important that visitation was to the success of our Town, spoke about the importance of the marketing efforts of MLT, and requested that the Town continue to keep MLT's portion of the Measure A funds at $2M for the life of the new contract.

Jeremy Goico, MLT Chair, announced that his term as Chair for MLT as well as his term on the Chamber would expire at the end of June. Mr.

Goico discussed the budget process for MLT and voiced his concern about the late budget allocations from the Town. He reported that MLT would be losing staff due to the uncertainty of funding and discussed the potential impacts from the proposed amount of funding. He discussed the impact that MLT's marketing had on the TOT that was generated for the Town.

Dakota Snider, MLT Senior Manager of Marketing and Special Events, spoke about his history with MLT and about the improvements in Mammoth special events programs over that time period. Mr. Snider announced that he would be leaving MLT at the end of the month, spoke about the use of Measure A funds, and requested that the Council keep the funding for MLT at the $2M level.

Ken Brengle, Mammoth Lakes Chamber of Commerce Executive Director, spoke on behalf of the Chamber in support of maintaining the Measure A funds for MLT at the $2M level.

Rick Wood, former Town Councilmember, provided history regarding the Town's budget, formation of the various funding measures, and the formation of the NGOs.

Amanda Nauman spoke about her event, Mammoth Tuff Gravel Cycling Event, and how marketing from MLT had helped her event. She spoke in support of continued funding for MLT.

Tim Tollefson, Mammoth Hospital Physical Therapist, Professional Trail Runner, and Event Producer of Mammoth Trail Fest, spoke about the diverse success of his event, and others in Mammoth with the assistance of the Measure A funding provided through MLT. Mr. Tollefson voiced

Town Council Minutes
June 21, 2023

concerns about the loss of in person events due to COVID and spoke in support of maintaining the Measure A funding for MLT.

Sandy Hogan spoke about the varying perceptions related to Tourism and MLT and spoke about tourists being our lifeblood. Ms. Hogan provided history about TOT and TBID and spoke in support of MLT.

Brent Truax, Managing Director of the Sierra Nevada Resort, spoke about the passion of Mammoth community members and the importance of not reducing marketing dollars and the need for us to remain competitive. Mr.

Truax discussed MLT's giving back to the community and his disappointment with the departure of Dakota Snider and Brian Wright from MLT.

John Urdi, MLT Executive Director, thanked members of the audience for their support. Mr. Urdi spoke about MLT's budget.

There was discussion among members of Council and staff.

Moved by Mayor John Wentworth
Seconded by Councilmember Chris Bubser
Authorize the Town Manager to sign a service agreement with Mammoth Lakes Tourism for a 3-year contract for marketing services as presented.

For (4): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, and Councilmember Amanda Rice Against (1): Councilmember Sarah Rea
Carried (4 to 1)
The Mayor called a recess at 7:05 p.m. and the Council reconvened at 7:17 p.m.

8.2 Approve the Agreement to allow the levy and collection by Mono County of Solid Waste Parcel Fees in the Town of Mammoth Lakes for FY23-24.

Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff.

Town Council Minutes
June 21, 2023

Moved by Mayor Pro Tem Bill Sauser
Seconded by Councilmember Amanda Rice
Approve the Agreement to allow the levy and collection by Mono County of Solid Waste Parcel Fees in the Town of Mammoth Lakes for FY23-24.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

8.3 Agreement Providing Interim Funding to the Whitebark Institute for Implementation of Phase I of the Eastern Sierra Climate and Communities Resilience Project (ESCCRP) in an amount up to $500,0000.

Town Manager Daniel C. Holler outlined the information in the staff report There was discussion among members of Council and staff.

Moved by Mayor Pro Tem Bill Sauser
Seconded by Councilmember Chris Bubser
Approve the Agreement authorizing interim funding to Whitebark in an amount up to $500,000 for implementation of Phase I of the Eastern Sierra Climate and Communities Resilience Project, as amended, and authorizing the Town Manager to sign.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

8.4 Update on Emergency Response and continued necessary emergency work provided for in Resolution 23-29.

Town Manager Daniel C. Holler outlined the information in the staff report.

There was discussion among members of Council and staff.

Moved by Mayor John Wentworth
Seconded by Councilmember Chris Bubser

Town Council Minutes
June 21, 2023

Make the finding that existing damages to Town facilities and infrastructure resulting from the extreme winter weather are such that the emergency work provided for in Resolution 23-29 is still necessary.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

8.5 Authorize a professional services agreement with Keyser Marston Associates Inc. for Mammoth Mountain Main Lodge Redevelopment financial advisory services.

Community and Economic Development Director Sandra Moberly outlined the information in the staff report. There was discussion among members of Council and staff.

Moved by Councilmember Chris Bubser
Seconded by Councilmember Amanda Rice
Authorize the professional services agreement with Keyser Marston Associates, Inc., subject to the Town Attorney’s approval and finalization of the agreement, for financial advisory services as described in the agreement which is included as Attachment 1.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

8.6 Approve the Memorandum of Understanding (“MOU”) between the Town of Mammoth Lakes and the Mammoth Lakes General
Employees’ Association (“GEA”), the Mammoth Lakes Management Employees’ Association (“MEA”), and the Mammoth Lakes Public Works Employees’ Association (“PWEA”) which shall be in effect from July 1, 2023, through June 30, 2026.

Administrative Services/Finance Director Rob Patterson outlined the information in the staff report. There was discussion among members of Council and staff.

Town Council Minutes
June 21, 2023

PUBLIC COMMENT:

Ted Carleton asked questions about the TOT bonus plan, this year's onetime bonus of $2,500, and about the members of the negotiating team.

There was discussion among members of Council, staff. and Mr. Carleton.

Moved by Councilmember Chris Bubser
Seconded by Mayor Pro Tem Bill Sauser
Approve the Memorandum of Understanding between the Town of Mammoth Lakes and the Mammoth Lakes General Employees’, the Mammoth Lakes Management Employees’, and the Mammoth Lakes Public Works Employees’ Associations.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

8.7 Approve and adopt Resolution No. 23-XX establishing the fiscal year 2023-24, 2024-25, and 2025-26 compensation schedules for the Mammoth Lakes General Employees’ Association (“GEA”), the Mammoth Lakes Management Employees’ Association (“MEA”), and the Mammoth Lakes Public Works Employees' Association
(“PWEA”).

Administrative Services/Finance Director Rob Patterson outlined the information in the staff report.

Moved by Councilmember Chris Bubser
Seconded by Councilmember Sarah Rea
Approve the Resolution adopting the compensation schedules for the next three fiscal years for the GEA, MEA, and PWEA.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

Town Council Minutes
June 21, 2023

8.8 Approve and adopt Resolution establishing positions, salaries, benefits, and other terms and conditions of employment for specified employees in at-will, non-represented positions for fiscal years 2023- 24, 2024-25, and 2025-26.

Administrative Services/Finance Director Rob Patterson outlined the information in the staff report.

Moved by Councilmember Chris Bubser
Seconded by Councilmember Amanda Rice
Approve and adopt the Resolution establishing positions, salaries, benefits, and other terms and conditions of employment for specified employees in at-will, non-represented positions for fiscal years 2023-24, 2024-25, and 2025-26.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

8.9 Approval of Ninth Amended Employment Agreement with Town Manager Daniel C. Holler.

Town Manager Daniel C. Holler, Town Attorney Andrew Morris, and Administrative Services/Finance Director Rob Patterson outlined the information in the staff report. There was discussion among members of Council and staff.

CONSENSUS
There was consensus from Council to accept the recommended salary range increase as presented by Mr. Patterson.

Moved by Mayor John Wentworth
Seconded by Councilmember Chris Bubser
Approve the ninth amended employment agreement with Town Manager Daniel C. Holler.

The Term of the agreement is through February 29, 2024. The salary will be increased by 6% to $221,053.47 (weekly $4,251.03). There will be an increase in deferred compensation of $50 per month from $150 to $200,

Town Council Minutes
June 21, 2023

an eight-hour increase in administrative leave from 80 to 88 hours, and a bonus not to exceed $4,000 based on TOT receipts. Section 3.3.6 is amended as follows: Retention Incentive. Employee shall receive a onetime retention incentive payment in the amount of three thousand two hundred and fifty dollars ($3,250). The retention incentive payment will be made in July of 2023, and is subject to all applicable taxes and withholdings. The purpose of the incentive payment is to encourage Employee to continue in the Town’s employment through the term set forth in Section 3.2.1. Accordingly, if Employee discontinues his employment prior to the date set forth in Section 3.2.1, Employee shall reimburse the Town a prorated portion of the payment, prorated based upon a starting date of July 1, 2023 and Employee’s actual date of separation from the Town. Employee may elect to have any or all of the retention incentive payment deposited into an eligible 457(b) account.

For (5): Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, and Councilmember Amanda Rice
Carried (5 to 0)

9. COUNCILMEMBER REPORTS
Mayor Wentworth attended the Eastern Sierra Council of Governments (ESCOG) meeting.

Councilmember Bubser attended the ESCOG meeting.

Councilmember Sauser attended the Eastern Sierra Transit Authority (ESTA) Board meeting and the Local Transportation Commission (LTC) meeting.

Councilmember Rice attended the Eastern Sierra Community Housing (ESCH) Strategic Priorities meeting.

10. CLOSED SESSION
At 8:09 p.m. the Mayor announced that the Council would be entering into closed session for the purposes as stated in the agenda.

10.1 Pursuant to Government Code Section 54956.8, the Town Council will hold a conference with its representatives in regard to property negotiations pertaining to:

Town Council Minutes
June 21, 2023

Property: 541 Mono Street, Unit 1 (APN: 033-166-001-000) - Meridian Villas Complex
Agency Negotiators: Daniel C. Holler, Sandra Moberly, and Rob Patterson
Negotiating Parties: Town of Mammoth Lakes and Property Owners, Anthony Saucedo & Aracelli Escobar
Under Negotiation: Sales price and terms of payment for the purchase of the property

10.2 Pursuant to Government Code Section 54956.8, the Town Council will hold a conference with its representatives in regard to property negotiations pertaining to:

Property: 165 Old Mammoth Road, Unit 55 (035-182-055-000) - Sierra Manors Complex
Agency Negotiators: Daniel C. Holler, Sandra Moberly, and Rob Patterson
Negotiating Parties: Town of Mammoth Lakes and Property Owners, Ryan & Brenda Benavidez & Michael & Royann Timmins
Under Negotiation: Sales price and terms of payment for the purchase of the property
The Council reconvened from closed session 8:36 p.m. and announced that there was no reportable action taken.

11. ADJOURNMENT
The Council adjourned the meeting at 8:36 p.m.

Jamie Gray, Town Clerk

1 TOWN COUNCIL STAFF REPORT
Title: Accept the Amended Mammoth Creek HOA CC&R’s
Meeting Date: July 12, 2023
Prepared by: Kim Cooke, Senior Planner
RECOMMENDATION:

Accept the Amended Mammoth Creek HOA CC&R’s
BACKGROUND:

The Mammoth Creek HOA CC&Rs were recently amended and approved by a vote of the owners. The Attorney for the Mammoth Creek HOA subsequently requested Town staff facilitate acceptance by Town Council because Section 13.4 of the 2009 CC&R's contains the requirement for Town Council approval of any material CC&R amendments. The updated CC&Rs represent a rewrite of the 2009 CC&R's, which is a material amendment.

The Town does not enforce CC&Rs and is not typically involved in the review or acceptance of revisions or updates to existing HOA CC&Rs. Section 13.4 of the 2009 CC&Rs will be replaced by Section 10.4 of the updated CC&Rs as shown below:
 2009 Version Section 13.4. states, “Any Amendment to this Declaration which would substantially and materially change any of the terms and conditions of the use restrictions, maintenance requirements, architectural provisions, insurance provisions, mortgagee protection provisions and amendment provisions or this Article, other than changes that reflect new laws that control, shall require written consent of the County of Mono or Town of Mammoth Lakes, California, depending on which has jurisdiction.”
 Updated Version Section 10.4 states, “This Declaration may be amended only by the affirmative vote or written consent of Members representing a majority of the Voting Power of the Association. However, the percentage of Voting Power necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause. Any amendment must be certified in a writing executed and acknowledged by the president or vice president of the Association and recorded in the office of the Mono County Recorder. All amendments affecting matters within the regulatory power of the Town of Mammoth Lakes must be approved by the attorney for the Town of Mammoth Lakes. No amendment shall adversely affect the rights of the holder of any Mortgage of record prior to the recordation of such amendment.” ANALYSIS:

The new language included within the updated CC&Rs eliminates the requirement for Town Council to accept any future updates or amendments to the Mammoth Creek

2 CC&R’s. This revision provides greater flexibility to the HOA board in overseeing its operations and is consistent with Zoning Code Section 17.04.030 – Agreements. Staff has reviewed and compared the CC&R versions to ensure the updates are appropriate and maintain the necessary provisions that are required for common interest developments located in the Town.

LEGAL CONSIDERATIONS:

The request is consistent with Municipal Code Section 17.04.030 – Agreements, which states, “The provisions of the Zoning Code are not intended to abrogate any easements, covenants, or other existing agreements which are more restrictive than the provisions of this Zoning Code.”
ATTACHMENTS:

Attachment 1: Updated Mammoth Creek HOA CC&Rs
Attachment 2: 2009 Mammoth Creek HOA CC&Rs

RECORDING REQUESTED BY, and
When Recorded Mail to:

Law Office of Timothy B. Sanford
6 Oaktree Place
P.O. Box 8081
Mammoth Lakes, CA 93546
______________________________________________________________________________________________________ SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE
TITLE

AMENDED AND RESTATED DECLARATION

OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR

MAMMOTH CREEK CONDOMINIUM PROJECT

MAMMOTH LAKES, MONO COUNTY, CALIFORNIA

i

TABLE OF CONTENTS
Page
Recitals .................................................................................................................................1

ARTICLE I

DEFINITIONS

1.1 “Articles” ...................................................................................................................2

1.2 “Assessment” .............................................................................................................2

1.3 “Association” .............................................................................................................2

1.4 “Board” or “Board of Directors” ..............................................................................2

1.5 “Bylaws” ...................................................................................................................2

1.6 “Common Area(s)” ....................................................................................................2

1.7 “Common Expenses” .................................................................................................2

1.8 “Common Interest” ....................................................................................................2

1.9 “Condominium" .........................................................................................................3

1.10 “Condominium Plan”.................................................................................................3

1.11 "Declaration"..............................................................................................................3

1.12 “Eligible Holder Mortgages” .....................................................................................3

1.13 “Eligible Mortgage Holder”.......................................................................................3

1.14 “Eligible Insurer or Guarantor” .................................................................................3

1.15 “Firebox”....................................................................................................................3

1.16 “First Lender” ............................................................................................................3

1.17 “Map”.........................................................................................................................3

1.18 “Member” ..................................................................................................................3

ii

1.19 “Mortgage” ................................................................................................................3

1.20 “Mortgagee”...............................................................................................................3

1.21 “Mortgagor”...............................................................................................................3

1.22 “Owner” or “Owners”................................................................................................3

1.23 “Person” .....................................................................................................................4

1.24 “Project”.....................................................................................................................4

1.25 “Project Documents” .................................................................................................4

1.26 “Property” or “Properties” .........................................................................................4

1.27 “Quorum”...................................................................................................................4

1.28 “Record Owner(s)” or “Record Holder(s) of Title”...................................................4

1.29 “Regular Assessments”..............................................................................................4

1.30 “Restricted Common Area” .......................................................................................4

1.31 “Rules”.......................................................................................................................4

1.32 “Singular and Plural” .................................................................................................4

1.33 “Special Assessments”...............................................................................................4

1.34 “Unit” ........................................................................................................................5

1.35 “Unit Designation”.....................................................................................................5

1.36 “Voting Power”..........................................................................................................5

ARTICLE II

DESCRIPTION OF PROJECT, DIVISION OF PROPERTY,

AND CREATION OF PROPERTY RIGHTS

2.1 Description of Project ................................................................................................5

2.2 Division of Property...................................................................................................5

iii
A. Units.....................................................................................................................5 B. Common Areas.....................................................................................................6 C. Restricted Common Areas ...................................................................................6 D. Inserts and Flues...................................................................................................6

2.3 Rights of Entry and Use.............................................................................................6

2.4 Owner’s Right and Obligation
to Maintain and Repair...............................................................................................7

2.5 Partition Prohibited ....................................................................................................8

ARTICLE III

ASSOCIATION, ADMINISTRATION, MEMBERSHIP

AND VOTING RIGHTS

3.1 Association to Manage Common Areas ....................................................................8

3.2 Board of Directors......................................................................................................8

3.3 Membership ...............................................................................................................8

3.4 Transferred Membership............................................................................................8

3.5 Voting Rights.............................................................................................................9

3.6 Notification of Sale
of Unit ........................................................................................................................9

ARTICLE IV

ASSESSMENTS

4.1 Creation of the Lien and Personal
Obligation of Assessments.........................................................................................9

4.2 Purpose of Assessments.............................................................................................9

4.3 Assessments...............................................................................................................10 A. Regular Assessments............................................................................................10

iv
B. Special Assessments.............................................................................................10

4.4 Restrictions on Regular or
Special Assessments ..................................................................................................10

4.5 Notice of Assessment Increase ..................................................................................11

4.6 Assessment Calculation .............................................................................................11 A. Regular Assessments............................................................................................11 B. Special Assessments.............................................................................................11

4.7 Effect of Nonpayment of Assessments......................................................................12

4.8 Transfer of Condominium
by Sale or Foreclosure ...............................................................................................12

4.9 Priorities; Enforcement; Remedies............................................................................13

4.10 Unallocated Taxes......................................................................................................14

4.11 Exemptions from Assessments..................................................................................14

ARTICLE V

DUTIES AND POWERS OF THE ASSOCIATION

5.1 Duties.........................................................................................................................15 A. Maintenance .........................................................................................................15 B. Insurance ..............................................................................................................15 C. Discharge of Liens ...............................................................................................15 D. Assessments.........................................................................................................15 E. Payment of Expenses............................................................................................15 F. Enforcement..........................................................................................................16 G. Security ................................................................................................................16

v
H. Copies of Association
Records to Owners...............................................................................................16

5.2 Powers Exercised by the Board .................................................................................16 A. Utility Service ......................................................................................................16 B. Manager................................................................................................................16 C. Adoption of Rules................................................................................................16 D. Access ..................................................................................................................16 E. Assessments, Liens and Fines ..............................................................................16 F. Enforcement..........................................................................................................17 G. Contracts ..............................................................................................................17 H. Delegation ............................................................................................................17 I. Use of Recreational Facilities................................................................................17 J. Manager’s Unit......................................................................................................17 K. Security ................................................................................................................18 L. Appointment of Trustee........................................................................................18 M. Legal Action........................................................................................................18 N. Loans....................................................................................................................18 O. Borrowing from Reserves....................................................................................18 P. Grant of Exclusive Use of Common Area ...........................................................18 Q. Other Powers........................................................................................................18

5.3 Powers Exercised with
Owner Approval.........................................................................................................18

vi

ARTICLE VI

UTILITIES

6.1 Owners Rights and Duties .........................................................................................20

6.2 Association’s Duties ..................................................................................................21

ARTICLE VII

USE RESTRICTIONS

7.1 Use of Units ...............................................................................................................21

7.2 Unit Occupancy Limits..............................................................................................21

7.3 Time Sharing..............................................................................................................21

7.4 Nuisances and Excessive Noise .................................................................................22

7.5 Vehicle Restrictions...................................................................................................22

7.6 Signs...........................................................................................................................23

7.7 Animals......................................................................................................................23

7.8 Garbage and Refuse Disposal ....................................................................................24

7.9 Radio and Television Antennas.................................................................................24

7.10 Renting and Leasing of Units ....................................................................................24

7.11 Architectural Control .................................................................................................25

7.12 Clothes Lines .............................................................................................................26

7.13 Power Equipment and Vehicle Maintenance.............................................................26

7.14 Liability of Owners for
Damage to Common Area .........................................................................................26

7.15 Firewood ....................................................................................................................26

7.16 Barbeques...................................................................................................................26

vii

7.17 Keys and Contact Information...................................................................................26

7.18 Prohibition of Second Floor Hard Surface Flooring .................................................26

7.19 Decks and Storage......................................................................................................27

7.20 Use of Sidewalks and Walkways...............................................................................27

ARTICLE VIII

INSURANCE

8.1 Insurance ....................................................................................................................27 A. Hazard ..................................................................................................................27 B. General Liability ..................................................................................................28 C. Workers’ Compensation.......................................................................................28 D. Directors and Officers..........................................................................................28 E. Fidelity Bond Coverage......................................................................................28 F. Other Insurance.....................................................................................................28

8.2 Amount, Term and Coverage; Review of Policies; Carriers .....................................29

8.3 Payment of Deductible; Processing of Claims...........................................................29 A. Payment of Premiums/Deductible .......................................................................29 B. Processing of Claims............................................................................................29

8.4 Authority of Board.....................................................................................................29

8.5 Owner Insurance ........................................................................................................30

8.6 Additional Provisions Regarding Insurance Policies.................................................31 A. Subrogation ..........................................................................................................31 B. Optional Provisions..............................................................................................31

8.7 Limitation of Liability Regarding Insurance .............................................................32

viii

8.8 Notice of Change of Insurance Coverage ..................................................................33

ARTICLE IX
DAMAGE OR DESTRUCTION; EMINENT DOMAIN

9.1 Initial Board Determination; Notice ..........................................................................33

9.2 Reconstruction without Election by Owners .............................................................34

9.3 Repair or Reconstruction by Consent of Owners ......................................................34

9.4 Assessments; Use of Reserves...................................................................................34

9.5 Obligation of Board When Rebuilding......................................................................34 A. Obtaining Bids.....................................................................................................34 B. Time Period and Manner of Reconstruction ........................................................35 C. Cost of Repair or Reconstruction.........................................................................35

9.6 Determination Not to Rebuild and to Sell Project .....................................................35

9.7 Interior Damage .........................................................................................................36 A. General Provisions...............................................................................................36 B. Specific Provisions – Earthquake Damage to Drywall ........................................36

9.8 Negotiations with Insurer...........................................................................................36

9.9 Condemnation............................................................................................................36

ARTICLE X

GENERAL PROVISIONS

10.1 Enforcement...............................................................................................................37

10.2 Invalidity of Any Provision .......................................................................................37

10.3 Term...........................................................................................................................37

10.4 Amendments..............................................................................................................37

ix

10.5 Encroachment Rights.................................................................................................37

10.6 Rights of Lenders.......................................................................................................38 A. Copies of Project Documents...............................................................................38 B. Audited Statements ..............................................................................................38 C. Notice of Action...................................................................................................38 D. Consent to Action.................................................................................................39 E. Priority of Liens....................................................................................................40 F. Distribution of Insurance or
Condemnation Proceeds.......................................................................................40 G. Restoration or Repair ...........................................................................................40 H. Termination..........................................................................................................41 I. Reallocation of Interests........................................................................................41

10.7 Enforcement of Owner’s Compliance .......................................................................41

10.8 Notice.........................................................................................................................41

10.9 Fair Housing...............................................................................................................41

ARTICLE XI

EASEMENTS

11.1 Validity of Prior Easements.......................................................................................41

11.2 New Easements..........................................................................................................42

1 AMENDED AND RESTATED DECLARATION

OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR

MAMMOTH CREEK CONDOMINIUM PROJECT

MAMMOTH LAKES, MONO COUNTY, CALIFORNIA
This AMENDED AND RESTATED DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS is made this _____ day of ______________ 2022 by and for the Mammoth Creek condominium project (“the Project”).

RECITALS
A. The project is located in the Town of Mammoth Lakes, County of Mono, State of California and is described as follows:

Lot 62 of Mammoth Creek Condominiums, Tract No. 36-73, in the County of Mono, State of California, as shown on Map recorded in Book 8, Pages 38-38J, inclusive, of Subdivision Maps, in the Office of the Mono County Recorder, and as shown on the Condominium Plan recorded May 20, 1976 in Book 201, Page 304 of the Official Records of Mono County.

B. The project is encumbered by a Declaration of Covenants, Conditions, Restrictions and Reservation of Easements recorded on May 20, 1976 at Vol. 201, Pages 304, et seq., inclusive, in the Office of the Mono County Recorder (the "Original Declaration"); a Restated Declaration of Covenants, Conditions and Restrictions recorded on April 20, 2009 as Document No. 2009001757 in the Office of the Mono County Recorder (the “Restated Declaration”); and a First Amendment of Restated Declaration of Covenants, Conditions and Restrictions recorded on October 12, 2010 as Document No. 2010004748 in the Office of the Mono County Recorder (the “First Amendment”).

C. The owners of the total common area interest of the project now desire to amend the Original Declaration, the Restated Declaration and the First Amendment by replacing them in their entirety with this declaration (the “Declaration”). The Declaration shall constitute the entirety of the new Mammoth Creek declaration upon its recordation with the Office of the Mono County Recorder.

However, nothing in the Declaration shall supersede, modify or impair those grants of easement contained in the Original Declaration, which grants of easement shall remain in full force and effect as stated therein.

NOW THEREFORE, the Original Declaration, the Restated Declaration and the First Amendment are each hereby amended to read as follows:

2 ARTICLE I

DEFINITIONS

1.1 "Articles" shall mean and refer to the Articles of Incorporation of the Association, as amended from time to time.

1.2 "Assessment" shall mean that portion of the cost of maintaining, improving, repairing, replacing, operating and managing the property which is to be paid by each condominium owner as determined by the association.

1.3 "Association" shall mean and refer to the Mammoth Creek Homeowners Association, a California nonprofit mutual benefit corporation, the members of which shall be the owners of condominiums in the project.

1.4 "Board" or "Board of Directors" shall mean and refer to the governing body of the Association.

1.5 "Bylaws" shall mean and refer to the Bylaws of the Association, as amended from time to time.

1.6 "Common Area(s)" shall mean and refer to all of the property (excepting the individual condominium units), title to which is held by all of the owners in common. Within the buildings containing units, the Common Area includes the exterior and extends to the interior surfaces of the studs; drywall shall be a part of the units for all purposes. The Common Area includes, without limitation: land; manager’s unit; office; swimming pool and spa and other amenities; parking and driveway areas; exterior stairs, decks, patios and storage areas; bearing walls, columns, girders, ceiling joists, subfloors, unfinished floors, roofs, and foundations; Common Area water heaters; tanks, pumps, motors, flues and chutes; conduits, pipes, plumbing, wires and other utility installations (except the outlets thereof when located within the unit), required to provide power, light, telephone, water, sewerage, drainage and heat; all fire extinguishers, carbon monoxide and smoke detectors; exterior sprinklers and sprinkler pipes; and all exterior windows and doors (including front entry doors, deck doors and ski locker doors) and the screens, frames and seals for such windows and doors. Fireboxes, as defined in Section 1.15, are Common Area, excepting only the fascia thereof.

1.7 "Common Expenses" means and includes the actual and estimated expenses of operating the Common Area and any reasonable reserve for such purposes as found and determined by the Board and all other sums designated Common Expenses by or pursuant to the project documents.

1.8 "Common Interest" means the proportionate undivided interest in the Common Area that is a part of each condominium as set forth in this declaration.

3 1.9 "Condominium" shall mean an estate in real property as defined in Civil Code sections 783 and 4125, as those sections may be amended over time, consisting of an undivided interest in common in a portion of the property and a separate interest in space called a unit.

1.10 "Condominium Plan" shall mean and refer to the recorded plan of the Condominiums built or to be built on the property which identifies the Common Area and each separate interest pursuant to Civil Code section 4285, as that section may be amended over time, a copy of which plan is recorded on May 20, 1976 in Volume 201, Page 304, inclusive, in the Office of the County Recorder of Mono County.

1.11 "Declaration" shall mean and refer to this Declaration, as amended or supplemented from time to time.

1.12 "Eligible Holder Mortgages" shall mean mortgages held by "Eligible Mortgage Holders".

1.13 "Eligible Mortgage Holder" shall mean a first lender who has requested notice of certain matters from the Association in accordance with Section 10.6(C).

1.14 "Eligible Insurer or Guarantor" shall mean an insurer or governmental guarantor of a first mortgage who has requested notice of certain matters from the Association in accordance with Section 10.6(C).

1.15 “Firebox” shall mean all of the elements of the fireplace, chimney chase, flue pipe and hearth within a Unit.

1.16 "First Lender" shall mean any person, entity, bank, savings and loan association, insurance company, or financial institution holding a recorded first mortgage on any Condominium.

1.17 "Map" shall mean and refer to those combined Maps and Condominium Plans referenced in Section 1.10 hereinabove.

1.18 "Member" shall mean and refer to a person entitled to membership in the Association as provided in Section 3.3 herein.

1.19 "Mortgage" shall include a deed of trust as well as a Mortgage.

1.20 "Mortgagee" shall include a beneficiary or a holder of a deed of trust as well as a Mortgagee.

1.21 "Mortgagor" shall include the trustor of a deed of trust as well as a Mortgagor.

1.22 "Owner" or "Owners" shall mean and refer to the record holder or holders of title, if more than one, of a Condominium in the project. This shall include any person having a

4 fee simple title to any Condominium, but shall not include persons or entities having any interest merely as security for the performance of an obligation.

1.23 "Person" means a natural person, a corporation, a partnership, a trustee, or other legal entity.

1.24 "Project" shall mean and refer to the entire real property described above in Recital A, including any property annexed or to be annexed, including all structures and improvements erected or to be erected thereon.

1.25 "Project documents" shall mean this Declaration, as amended from time to time, the exhibits, if any, attached thereto, together with the other basic documents used to create and govern the project, including the Map, the Articles, the Bylaws, and the Condominium Plan (but excluding unrecorded rules and regulations adopted by the Board or the Association).

1.26 "Property" or "Properties" means and includes the real property above described and all improvements erected thereon and all property, real, personal or mixed intended for or used in connection with the Condominium.

1.27 "Quorum" means the number of units that must vote on a particular matter in order for the vote to be binding and effective.

1.28 "Record Owner(s)" or "Record Holder(s) of Title" means those whose ownership of a unit or units is evidenced by a document properly recorded with the Mono County Recorder.

1.29 "Regular Assessments" shall mean those Assessments as described in Section

4.3(A) of this Declaration.

1.30 "Restricted Common Area" shall mean and refer to those portions of the Common Area set aside for exclusive use of a Unit Owner or Owners, pursuant to Section 2.2, and shall constitute "Exclusive Use Common Area" within the meaning of Civil Code section 4145, as that section may be amended over time.

1.31 "Rules" shall mean those Association Rules described in Section 5.2(C) of this Declaration.

1.32 "Singular and Plural": The singular and plural number and masculine, feminine and neuter gender shall each include the other where the context requires.

1.33 "Special Assessments" shall mean those Assessments as described in Section

4.3(B) of this Declaration.

5 1.34 "Unit" shall mean and refer to the elements of the Condominium, as defined in Section 2.2(A), which is not owned in common with the Owners of other Condominiums in the project.

1.35 "Unit Designation" means the number, letter, or combination thereof or other official designation(s) shown on the Condominium Plan. Each Unit is identified by a separate number or letter on the Condominium Plan.

1.36 "Voting Power" means the total Voting Power of all of the Record Owners.

ARTICLE II

DESCRIPTION OF PROJECT, DIVISION OF PROPERTY,

AND CREATION OF PROPERTY RIGHTS

2.1 Description of Project: The project is a condominium project consisting of the land, Condominiums and all other improvements located thereon in accordance with the Condominium Plan.

2.2 Division of Property: The property is divided as follows:

A. Units: Each of the Units as separately shown, numbered and designated in the Condominium Plan consists of the space bounded by and contained within the interior unfinished surfaces of the perimeter wall studs, floors, ceilings, windows, window frames, doors and door frames and trim, of each Unit, each of such spaces being defined and referred to herein as a "Unit". Drywall shall be a part of the Unit. Bearing walls located within the interior of a Unit are Common Area, not part of the Unit, except for the finished surfaces thereof. Fireboxes are Common Area, excepting only the fascia thereof, which are part of the Unit. Exposed beams in ceilings shall not be part of the Unit except for finished surfaces thereof. Each Unit includes the utility installations located within or without its boundaries that the Owner has exclusive use of, including, without limitation: hot water heaters, wall and radiant heaters and lighting fixtures which are located entirely within the Unit they serve. However, wall heaters shall be cleaned at the behest and cost of the Association, notwithstanding that they are not Common Area. Each Unit includes both the portions of the building so described and the airspace so encompassed. The Unit does not include those areas and those things which are defined as “Common Area" in Section

1.6. Each Unit is subject to such encroachments as are contained in the building, whether the same now exist or may be later caused or created in any manner referred to in Section 10.5. In interpreting deeds and Condominium Plans, the then existing physical boundaries of a Unit in the project, when the boundaries of the Unit are contained within a building, or of a Unit reconstructed in substantial accordance with the original plans thereof, shall be conclusively presumed to be its boundaries rather than the boundaries expressed in the deed or Condominium Plan, regardless of settling or lateral movement of the building and regardless of minor variance between boundaries shown on the plan or deed and those of the building. Each Unit shall have appurtenant to it nonexclusive rights of ingress, egress, and support through the Common Area subject to the rights of each Owner in any Restricted Common Area appurtenant to that Owner's Condominium.

6 Each Owner shall have, as appurtenant to the Owner's Unit, an equal undivided interest in the Common Area. Each includes a Unit and such undivided interest in the Common Area. The Common Interest appurtenant to each Unit is permanent in character and cannot be altered without the consent of all of the Owners affected, as expressed in an amended declaration. Such undivided Common Interest cannot be separated from the Unit to which it is appurtenant, and any conveyance or transfer of the Unit includes the undivided Common Interest, the Owner's membership in the Association, and any other benefits or burdens appurtenant to that Owner's Condominium.

B. Common Areas: The remainder of the property constitutes and shall be referred to herein as "Common Area" or "Common Areas", and includes, without limitation, all of the elements set forth in Section 1.6.

Each Owner may use the Common Area in accordance with the purposes for which it is intended without hindering the exercise of or encroaching on the rights of any other Condominium Owners, subject to the rights of each Owner in any Restricted Common Area appurtenant to that Owner’s Condominium.

C. Restricted Common Areas: The following described portions of the Common Area, referred to as "Restricted Common Areas", are set aside and allocated for the exclusive use of the Owner of the Condominium to which they are attached or assigned by Unit number as shown on the Condominium Plan, and are appurtenant to that Condominium:

1. Exterior windows and doors, and any screens for such windows and doors;

2. Front porches, and first and second floor decks.

3. The Fireboxes within a Unit, excepting only the fascia thereof.

D. Inserts and flues: In the event the Town of Mammoth Lakes, or any other governmental entity, requires the installation of inserts and/or flue pipes into Fireboxes, then the cost of such installation shall be borne by the Owner(s) of the subject Unit, notwithstanding that the Fireboxes (with the exception of the fascias thereof) are, and shall remain Common Area.

2.3 Rights of Entry and Use: The Units and Common Area (including Restricted Common Area) shall be subject to the following rights of entry and use:

A. The right of the agents or employees of the Association to enter any Unit as necessary in an emergency.

B. The right, but not the obligation, of the agents or employees of the Association to enter any Unit that is either unoccupied, or being rented on a transient basis, monthly to perform a safety check as described in the Rules and Regulations of the Association.

7 C. The right of the Association agents or employees to enter any Unit 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.

D. The access rights of the Association to inspect, maintain, repair or replace improvements or Property located in the Common Area as described in Section 5.2(D).

E. The rights of the Owners and the Association to install, maintain, repair, or replace utilities as described in Article VI.

F. The encroachment easements described in Section 10.5.

G. The rights of Owners to make improvements or alterations authorized by Civil Code section 4760(a)(2), as that section may be amended over time, subject to the provisions of Section 7.11 to the extent applicable.

2.4 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 Condominium Owner shall, at his sole cost and expense, maintain and repair his or her Unit keeping the same in good condition. Each Owner shall bear the cost of maintenance, repair and replacement of the following items within or serving such Owner's Unit, among others (as applicable): interior surfaces of all perimeter and interior walls, ceilings and floors (including carpeting and tile when completed in compliance with section 7.18, wall paper, paint or other covering); garbage disposals, hot water heaters, ranges, refrigerators, dishwashers, washing machines, dryers, light fixtures and any and all other appliances of any nature whatsoever; heating and ventilating equipment exclusively servicing such Unit (although such equipment may be located in part outside such Unit); interior doors, including all hardware thereon; light bulbs; plumbing and other fixtures of any nature whatsoever; "built-in" features; and decorative features, and any furniture and furnishings. Owners shall take all reasonable steps to avoid risk of harm to other Units including, without limitation, maintaining sufficient heat to avoid frozen pipes, maintaining water heaters in good repair to avoid flooding, and using precautions to avoid fires when emptying ashes from fireboxes and when using those barbeques permitted by Section 7.16.

All electric utilities serving individual Units shall be separately metered and shall be the expense of each individual Owner. Electric utilities serving the general common elements shall be a Common Expense of the Association. In addition, each Owner shall keep those portions of the Restricted Common Area to which he has exclusive easements rights clean and neat. Each Owner shall have the exclusive right to paint, plaster, panel, tile, wax, paper, or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, window frames and doors bounding his Unit, except that second floor flooring modifications are subject to the provisions of Section 7.18.

In the event an Owner fails to maintain the interior of his Unit in a manner which the Board deems necessary to preserve the appearance and value of the property, the Board may notify the Owner of the work required and request it be done within sixty (60) days from the giving of such notice.

8 In the event the Owners fails to carry out such maintenance within said period, the Board may, following notice and hearing as provided in the Bylaws, cause such work to be done and the costs thereof shall immediately be paid by such Owner to the Association and until paid shall bear interest at the rate of ten percent (10%) per annum (but no greater than the maximum rate authorized by law).

2.5 Partition Prohibited: The Common Areas shall remain undivided as set forth above. Except as provided by Civil Code section 4610, as that section may be amended over time, or authorized under Section 9.9, no Owner shall bring any action for partition of the Common Areas, it being agreed that this restriction is necessary in order to preserve the rights of the Owners with respect to the operation and management of the project. Judicial partition by sale of a single Condominium owned by two (2) or more persons and division of the sale proceeds is not prohibited hereby, but partition of title to a single Condominium is prohibited.

ARTICLE III

ASSOCIATION, ADMINISTRATION, MEMBERSHIP

AND VOTING RIGHTS

3.1 Association to Manage Common Areas: The management of the Common Area shall be vested in the Association in accordance with this Declaration and the Bylaws. The Owners of all the Condominiums covenant and agree that the administration of the project shall be in accordance with the provisions of this Declaration, and of the Articles and Bylaws and Rules of the Association.

3.2 Board of Directors: The Association shall be governed by a Board of Directors, who shall be elected in accordance with the Bylaws of the Association. The Board of Directors shall have all authority to govern and manage the affairs of the Association consistent with applicable law, this Declaration and the Bylaws.

3.3 Membership: The Owner of a Condominium shall automatically, upon becoming the Owner of same, be a Member of the Association, and shall remain a Member thereof until such time as the ownership ceases for any reason, at which time the membership in the Association shall automatically cease. Membership shall be held in accordance with this Declaration, the Articles and Bylaws of the Association.

3.4 Transferred Membership: Membership in the Association shall not be transferred, encumbered, pledged, or alienated in any way, except upon the sale or encumbrance of the Condominium 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 Condominium. On any transfer of title to an Owner's Condominium, including a transfer on the death of an Owner, membership passes automatically with title to the transferee.

A Mortgagee does not have membership rights until it obtains title to the Condominium by foreclosure or deed in lieu thereof. Any attempt to make a prohibited transfer is

9 void. No Member may resign his or her membership. On notice of a transfer, the Association shall record the transfer on its books.

3.5 Voting Rights: Each Unit shall be entitled to cast one vote on each question presented to the membership. Except as herein or in the Bylaws provided to the contrary, a vote of a simple majority of the Voting Power of the Association shall decide each question, provided that a quorum as defined in the Bylaws exists.

3.6 Notification of Sale of Unit: Concurrently with the consummation of the sale of any Unit or any portion thereof, under circumstances which the transferee becomes an Owner thereof, the transferee shall notify the Board in writing of such sale. Such notification shall set forth (i) the name of the transferee(s) and transferor(s), (ii) the number of the Unit being transferred, (iii) the transferee's mailing and street addresses and, (iv) the date of sale. Prior to receipt of such notification, any and all communications or notices from the Association, the Board or any agents thereof shall be deemed to be duly made and given to the transferee if duly and timely made and given to said transferee's transferor.

ARTICLE IV

ASSESSMENTS

4.1 Creation of the Lien and Personal Obligation of Assessments: Each Owner of any Condominium by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees: (1) to pay to the Association Regular Assessments or charges, and Special Assessments for purposes permitted herein, such Assessments to be established and collected as hereinafter provided; and (2) to allow the Association to enforce any assessment lien established hereunder by nonjudicial proceedings under a power of sale or by any other means authorized by law. The Regular and Special Assessments, together with interest, late charges, collection costs, and reasonable attorneys' fees, shall be a charge on the Condominium and shall be a continuing lien upon the Condominium against which each such 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 such Condominium at the time when the Assessment fell due. 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 the abandonment of the Owner's Condominium.

4.2 Purpose of Assessments: The Assessments levied by the Association shall be used exclusively to promote the economic interests, recreation, health, safety, and welfare of the Owners in the project, and to provide insurance, improvement, and maintenance of the Common Area for the common good of the project.

10 4.3 Assessments:

A. Regular Assessments: The Board shall establish and levy Regular Assessments in an amount that the Board estimates will be sufficient to raise the funds needed to perform the duties of the Association during each fiscal year, such Assessments to be determined for each Condominium in accordance with the calculation set forth in Section 4.6 of this Declaration. Subject to the provisions of this Declaration, the Board may change the amount of Regular Assessments or the frequency of the billing of such Assessments at any time.

The Regular Assessment shall include a portion for reserves in such amounts as the Board in its discretion considers appropriate to meet the costs of the future repair, replacement or additions to the major components that the Association is obligated to maintain and repair. Reserve funds need not be deposited in a separate account, but must be separately accounted for on the books of the Association. Except as provided in Section 12.3 of the Bylaws, Section 5.2(O) of this Declaration and Civil Code sections 5510(b) and 5515 as those sections may be amended over time, reserve funds may not be expended for any purpose other than repairing, replacing or adding to the major components that the Association is obligated to maintain without the consent of Owners holding a majority of the Voting Power at a duly held meeting or by written ballot.

B. Special Assessments: The Board, at any time, may levy a Special Assessment in order to raise funds for unexpected operating or other costs, insufficient operating or reserve funds, or such other purposes as the Board in its discretion considers appropriate. Except as provided in Sections 4.6(B) and 9.4, Special Assessments shall be allocated among the Units in the same manner and according to the same percentages as Regular Assessments. Special Assessments may be collected in one (1) payment or periodically as the Board shall direct.

4.4 Restrictions on Regular or Special Assessments:

A. Annual increases in Regular Assessments for any fiscal year shall not be imposed unless the Board has complied with paragraphs (1), (2), (4), (5), (6), (7) and (8) of subdivision (b) of Civil Code section 5300 with respect to that fiscal year (addressing notice to Owners of certain financial matters such as budgets and reserve accounts), or has obtained the approval of a majority of a quorum of Members at a Member meeting or election.

B. The Board may not impose a Regular Assessment on any Condominium which is more than 20% greater than the Regular Assessment for the immediate preceding fiscal year or levy a Special Assessment to defray the cost of any action or undertaking on behalf of the Association which in the aggregate exceeds 5% of the budgeted gross expenses of the Association for that fiscal year, without the vote or written assent of Members casting a majority of the votes at a meeting or election of the Association at which a quorum is present. For purposes of this Section 4.4, a "quorum" means more than fifty percent (50%) of the Members of the Association.

11 C. Notwithstanding the foregoing, the Board, without membership approval, may increase Regular Assessments or levy Special Assessments necessary for an emergency situation. For purposes of this section, an emergency situation is one of the following:
(1) an extraordinary expense required by an order of a court, (2) an extraordinary expense necessary to repair or maintain the property or any part of it for which the Association is responsible where a threat to personal safety on the property is discovered, or
(3) an extraordinary expense necessary to repair or maintain the property or any part of it for which the Association is responsible that could not have been reasonably foreseen by the Board in preparing and distributing the proforma operating budget, provided, however that prior to the imposition or collection of the Assessment, the Board shall pass a resolution containing written findings as to the necessity of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process and the resolution shall be distributed to the Members with the notice of the Assessment.

This Section 4.4 incorporates the statutory requirements of Civil Code sections 5600-5610, as those sections may be amended over time. If these sections of the Civil Code are 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 of Assessment Increase: The Association shall provide individual notice pursuant to Civil Code section 4040 to the Members of any increase in the Regular or Special Assessments of the Association, not less than 30 nor more than 60 days prior to the Assessment becoming due.

4.6 Assessment Calculation:

A. Regular Assessments: All Regular Assessments shall be as determined by the Board and shall be levied among each Unit as follows: One bedroom, .015 percent of the total assessment; one bedroom and loft and two bedroom units, .016 percent of the total assessment; and two bedroom and loft units, .01825 percent of the total assessment.

B. Special Assessments: Except as provided in Sections 4.4 and 4.6(B)(3), all Special Assessments shall be as determined by the Board. All Special Assessments shall be levied among the Units in accordance with the percentages for Regular Assessments set forth in Section

4.6(A), except as follows:

1. Special Assessments may be levied by the Board against an Owner to reimburse the Association for costs incurred in bringing the Owner and such Owner’s Unit into compliance with the project documents.

12 2. Special Assessments may be levied by the Board against an Owner (i) to fund the cost of any repair or replacement of the Common Area (including Restricted Common Area) necessitated, as determined in the discretion of the Board, by the actions of that Owner; and (ii) to fund a modification to Common Area that is requested by an Owner, is limited to that Owner’s Unit only, and is approved by the Board in accordance with Section 7.10. The Board shall have the discretion to require payment of any Special Assessment authorized by this section prior to having any such work done.

3. Special Assessments may be levied against a discrete segment of the Owners (more than one) if approved by both all the Owners and by the Owners to be specially assessed in accordance with Section 5.3(C)(5) for the purpose of approving a modification to Restricted Common Area that benefits only that segment of Owners so long as the Special Assessment is proportionately divided among each of the Owners that benefit from the modifications.

4. Subject to the specific Special Assessment authorizations set forth in Section 4.6(B), the Board shall additionally have the authority to allocate Special Assessments among each Condominium as deemed appropriate by the Board in the reasonable exercise of its discretion. The Board shall notify the Owners in its notice of the Special Assessment of the method used to derive the allocation of each such Special Assessment and the factors relied upon by the Board in arriving at that method. Special Assessments may be allocated differently among categories of Condominiums or may even be allocated differently for each Condominium, so long as the Board’s allocation is within the exercise of its reasonable discretion and based on factors articulated in its notice to the Owners.

5. Special Assessments as described in Section 9.4 (regarding damage or destruction).

4.7 Effect of Nonpayment of Assessments: In accordance with Civil Code section 5650(b), as may be amended from time to time, any Assessment not paid within thirty (30) days after the due date shall be delinquent, and shall bear interest at the rate of twelve percent (12%) per annum (but no greater than the maximum amount allowed by law) commencing thirty (30) days after the due date until paid, and shall incur a late payment penalty in the amount of ten percent (10%) of the delinquent Assessment or ten dollars ($10), whichever is greater.

4.8 Transfer of Condominium by Sale or Foreclosure: Each holder of a first Mortgage on a Condominium who comes into possession of the Condominium by virtue of foreclosure of the Mortgage, or any purchaser at a foreclosure sale under a first deed of trust, will take the Condominium free of any claims for unpaid Assessments and fees, late charges, fines, or interest levied in connection therewith against the Condominium which accrue prior to the time such holder takes title to the Condominium, except for claims for a pro rata share of such Assessments or charges to all project Condominiums including the mortgaged Condominium, and except for assessment liens recorded prior to the Mortgage.

13 In any transfer of a Condominium a grantor shall remain liable to the Association for all unpaid Assessments against the Condominium up to the date of the record transfer. The grantee shall be entitled to a statement from the Association dated as of the date of record transfer, setting forth the amount of the unpaid Assessments against the grantor due to the Association, and the Condominium so transferred shall not be subject to a lien for unpaid Assessments in excess of the amount set forth in the statement, provided, however, the grantee shall be liable for any such Assessments that become due after the date of the record transfer. Under no circumstances shall transfers not evidenced by the proper recordation of a document of transfer with the Mono County Recorder be effective to alter or discharge the liability of the transferor under this Declaration.

Members of the Association shall remain Members for all purposes until the date of recordation of a valid document of transfer.

4.9 Priorities; Enforcement; Remedies: If an Assessment is delinquent, the Association may record a notice of delinquent assessment and establish a lien against the Condominium of the delinquent 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 prior Mortgage of record made in good faith and for value. The notice of delinquent assessment shall state the amount of the Assessment, collection costs, attorney's fees, late charges, and interest, a description of the Condominium 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 by sale. The notice shall be signed by any officer of the Association, any attorney of the Association, or any management agent retained by the Association.

An assessment lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee designated in the notice of delinquent assessment, or sale by a trustee substituted pursuant to Civil Code section 2934(a), as that section may be amended over time. Any sale shall be conducted in accordance with the provisions of Sections 2924, 2924b, 2924c, 2924f, 2924g, and 2924h of the Civil Code, as those sections may be amended over time, or any successor statutes thereto, applicable to the exercise of powers of sale in Mortgages and deeds of trust, or in any other manner permitted by law. Nothing herein shall preclude the Association from bringing an action directly against an Owner for breach of the 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 Condominium Owners, shall have the power to bid for the Condominium at foreclosure sale, and to acquire and hold, lease, Mortgage, and convey the same. Where the purchase of a foreclosure Condominium will 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. During the period a Condominium is owned by the Association, following foreclosure: (1) No right to vote shall be exercised on behalf of the Condominium; (2) no Assessment shall be assessed or levied on the Condominium; and (3) each other Condominium shall be charged, in addition to its usual Assessment, its share of the Assessment that would have been charged to such Condominium had

14 it not been acquired by the Association as a result of foreclosure. Suit to recover a money judgment for unpaid Common Expenses, rent, and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same.

After acquiring title to the Condominium at foreclosure sale following notice and publication, the Association may execute, acknowledge, and record a deed conveying title to the Condominium which deed shall be binding on the Owners, successors, and all other parties.

The Board may temporarily suspend the voting rights and the right to use recreational facilities of a Member who is in default in payment of any Assessment, after notice and hearing, as provided in the Bylaws.

In acting to collect delinquent Assessments, the Association shall at all times comply with Civil Code sections 5650 through 5740, as those sections may be amended over time.

4.10 Unallocated Taxes: In the event that any taxes are assessed against the Common Area, or the personal property of the Association, rather than against the Condominiums, 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 Condominiums 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.

4.11 Exemptions from Assessments: Any Condominium which does not include a structural improvement for human occupancy as the result of one of the circumstances addressed in Article IX 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 exemption may include:
(1) Roof replacement;
(2) Exterior maintenance;
(3) Walkway and carport lighting;
(4) Refuse disposal, if any;
(5) Domestic water supplied to living Units, if any;
(6) Insurance on completed Units;
(7) Insurance on uncompleted Units.

The foregoing exemption shall be in effect until the earliest of the following events:
(1) A notice of completion of the structural improvements has been recorded;
(2) Occupation or use of the Condominium; or
(3) Completion of all elements of the residential structure which the Association is obligated to maintain.

15 ARTICLE V

DUTIES AND POWERS OF THE ASSOCIATION

5.1 Duties: In addition to the duties enumerated in its Bylaws, or elsewhere provided for in this Declaration, and without limiting the generality thereof, the Association shall perform the following duties:

A. Maintenance: Subject to the applicable terms of Sections 2.4, 4.6(B) and

7.11, the Association shall maintain, repair, replace, restore, operate and manage all of the Common Area and all of the Restricted Common Area and all facilities, including utility facilities as described in Section 6.2, improvements, furnishings, equipment and landscaping thereon, and all property that may be acquired by the Association, provided that each Owner shall maintain the Restricted Common Area appurtenant to that Owner's Condominium in a neat and clean condition.

Maintenance shall include (without limitation): Painting, maintaining, cleaning, repairing and replacing of all Common Areas and Restricted Common Areas, including exterior stairs, decks, balconies, and exterior doors, and landscaping and recreational facilities. The responsibility of the Association of maintenance and repair shall not extend to repairs or replacements arising out of or caused by the willful or negligent act or neglect of an Owner, or his guests, tenants or invitees, or by acts of the Owner's or his guests’, tenants’ or invitees’ pets. Such repairs shall be made by the responsible Owner, provided the Board approves the person actually making the repairs and the method of repair. If the responsible Owner fails to take the necessary steps to make the repairs within a reasonable time under the circumstances, the Association shall make the repairs and charge the cost thereof to the responsible Owner in accordance with Section 4.6(B)(2), 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 the repairs, the Owner shall be entitled to notice and a hearing as provided in the Bylaws before any charge may be imposed.

B. Insurance: The Association shall maintain such policy or policies of insurance as are required by Article VIII of this Declaration.

C. 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 in the Bylaws).

D. Assessments: The Association shall fix, levy, collect, and enforce Assessments as set forth in Article IV hereof.

E. 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.

16 F. Enforcement: The Association shall enforce this Declaration.

G. Security: The Association shall provide reasonable security for the Common Area.

H. Copies of Association Records to Owners: The Association shall provide copies of Association records to Owners in accordance with the provisions of Civil Code sections 5200 through 5260 as those sections may be amended from time to time.

5.2 Powers Exercised by the Board: In addition to the powers enumerated in its Articles, Bylaws, or elsewhere provided herein, and without limiting the generality thereof, the Association acting by and through the Board shall have the following powers:

A. Utility Service: The Association shall have the authority (but not the obligations) to obtain, for the benefit of all of the Condominiums, all water, gas, electric, refuse collection service, cable television and internet service.

B. 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 those responsibilities exclusively reserved for the Board of Directors, including, without limitation the responsibility to levy fines, impose discipline, hold hearings, file suit, record or foreclose liens, or make capital expenditures.

C. Adoption of Rules: The Board may adopt reasonable Rules not inconsistent with this Declaration relating to the use of the Common Area and all facilities thereon, and the conduct of Owners and their tenants and guests with respect to the property and other Owners. These Rules may include provisions for fines and disciplinary actions in accordance with Section 5.2(E) of this Declaration. All such Rules shall be adopted in accordance with the provisions of Civil Code sections 4340 through 4370 as those sections may be amended from time to time.

D. Access: For the purpose of performing construction, inspection, maintenance, or emergency repair for the benefit of the Common Area or the Owners in common, the Association's agents or employees shall have the right to enter any Unit or to enter any portion of the Common Area at reasonable hours. Such entry shall be made with as little inconvenience to the Owners, renters and/or authorized guests as practicable, and any damage caused thereby shall be repaired at the expense of the Association.

E. 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. Penalties may include but are not limited to: fines, temporary suspension of voting rights, rights to the use of recreational

17 facilities, or other appropriate discipline, provided the Member is given notice and a hearing as provided in the Bylaws before the imposition of any fine or disciplinary action.

F. Enforcement: The Association shall have the authority to enforce this Declaration as per Section 10.7.

G. Contracts: The Association shall have the power to contract for goods and/or services for the Common Area(s), facilities and interests of the Association, subject to the limitations contained in the Bylaws, or elsewhere set forth in the project documents.

H. Delegation: The Association shall have the power to delegate its authority and powers to committees, officers, or employees of the Association, or to a manager employed by the Association, provided that the Board shall not delegate its responsibility:

1. To make expenditures for capital additions or improvements chargeable against the reserve funds;

2. To conduct hearings concerning compliance by an Owner or his tenant, lessee, guest, or invitee with the Declaration, Bylaws, or Rules promulgated by the Board;

3. To make a decision to levy monetary fines, impose Special Assessments against individual Condominiums, temporarily suspend an Owner's rights as a Member of the Association, or otherwise impose discipline;

4. To make a decision to levy Regular or Special Assessments; or

5. To make a decision to bring suit, record a claim of lien, or institute foreclosure proceeding for default in payment of Assessments.

I. Use of Recreational Facilities: The Association shall have the power to limit both the number of an Owner's tenants or guests who may use the recreational facilities, and the hours of operation of the recreational facilities, provided that all limitations apply equally to all Owners, unless imposed for disciplinary reasons, after notice and hearing.

J. Manager's unit: Anything in this Declaration or the Bylaws or Articles to the contrary notwithstanding, the Association, upon appropriate resolution of the Board, shall have the power and authority, with the vote or written consent of a majority of Members, to purchase a Condominium (the "manager's unit") to be occupied by the manager(s) of the project. In such case, during the period the manager's unit is owned by the Association:

1. No right to vote shall be exercised on behalf of the manager's unit;

2. No Assessment shall be assessed or levied on the manager's unit; and

18 3. Each other Condominium shall be charged, in addition to its usual Assessment, its share of the Assessment that would have been charged to the manager's, but for the provisions of this section.

K. Security: The Association shall have the power (but not the obligation) to contract for security service for the Common Area.

L. Appointment of Trustee: The Association, has the power to appoint or designate a trustee to enforce assessment liens by sale as provided in Section 4.9 and in Civil Code section 5675(c), as that section may be amended over time.

M. Legal Action: The Association shall have the power to institute, defend, settle or intervene in, through litigation, arbitration, mediation, administrative proceedings, or negotiations, claims for damages, property rights or water rights common to the Owners, or affecting or pertaining to Common Areas or separate interests which the Association is obligated to maintain or repair or which are integrally related to the Common Areas.

N. Loans: The Association shall have the power to borrow money, except as noted in Section 5.3(B)(2).

O. Borrowing from Reserves: The Association shall have the power to borrow from its reserves subject to the limitations set forth in Civil Code section 5515 as that section may be amended from time to time.

P. Grant of Exclusive Use of Common Area: The Association shall have the power to grant exclusive use of any portion of the Common Area to a Member in those situations described in Civil Code section 4600(b). (Civil Code section 4600(b) does not apply to the power of the Board to authorize temporary licenses for use of the Common Area by less than all the Members).

Q. Other Powers: In addition to the powers contained herein, the Association may exercise the powers granted to a nonprofit mutual benefit corporation under the Corporations Code.

5.3 Powers Exercised with Owner Approval: The Association shall have the following powers if and to the extent authorized by the approval of the following proscribed number of Owners:

A. Powers requiring the approval of at least Seventy-Five percent (75%) of the Voting Power of the Association:

The power to terminate the legal status of the Association (except in the event of substantial destruction or condemnation).

19 B. Powers requiring the approval of at least Sixty-Seven percent (67%) of the Voting Power of the Association:

1. The power to convey, transfer or sell any interest in any of the Association’s real property; except in situations following the Association’s purchase of a Condominium, in the event of a grant of exclusive use of a portion of the Common Area to a Member in those situations described in Civil Code section 4600(b), or in any of the circumstances contemplated by Article IX.

2. The power to Mortgage, pledge, deed in trust, or hypothecate any or all of the Association’s real property as security for money borrowed or debts incurred. Unsecured borrowing does not require approval of Owners.

3. The power to dedicate all 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 approved by the Owners.

4. The power to amend this Declaration to change the assessment calculations in Section 4.6, change the Owners’ proportionate interest in distributions of hazard insurance proceeds or condemnation awards in Section 9.9, change the voting rights in Section

3.5, or change the limitations on the renting of Units in Section 7.10.

C. Powers requiring the approval of at least a majority of the Voting Power of the Association:

1. The power to grant easements where appropriate for utilities, cable television/radio/internet and sewer facilities over, on or under the Common Area.

2. The power to purchase any Condominium at the project (via foreclosure or otherwise), and the power for the subsequent sale of any such Unit owned by the Association;

3. The power to acquire any non-Common Area benefits for all Owners to be funded by increases to Regular Assessments such as, without limitation, cable TV, internet access, athletic or golf club privileges.

4. The power to amend the Declaration to change the insurance requirements of Article VIII.

5. The power to approve improvements benefitting only a discrete segment of the Units, and to approve the Special Assessment to pay for such improvements authorized by Section 4.6(B)(3); except that such approval shall also require the approval of a majority of those Units to be benefitted by and subject to the Special Assessment.

20 6. The power to amend this Declaration in accordance with Section

10.4, except as provided in Section 10.6(D).

7. The power to terminate the project in the circumstances contemplated by Section 10.6(H).

D. Powers requiring the approval of at least a majority of a quorum of fifty percent (50%) of the Voting Power of the Association:

1. An increase in Regular Assessments amounting to more than twenty percent (20%) of the Association’s budget for the prior fiscal year, in accordance with Section 4.4;

2. Special Assessments in one fiscal year amounting to more than five percent (5%) in the aggregate of the Association’s budgeted gross expenses for that fiscal year, in accordance with Section 4.4.

3. Incurring aggregate expenditures in any fiscal year other than that for accumulated reserves for capital improvements in excess of twenty-five percent (25%) of the budgeted gross expenses of the Association for that fiscal year.

ARTICLE VI

UTILITIES

6.1 Owners Rights and Duties: The rights and duties of the Owners of Condominiums within the project with respect to sanitary sewer, water, drainage, electric, gas, television, radio and internet receiving, telephone equipment, cables and lines, exhaust flues, and heating facilities (hereinafter referred to, collectively, as "utility facilities") shall be as follows:

A. Whenever utility facilities are installed within the property, which utility facilities or any portion thereof lie in or on Unit owned by other than the Owner of a Unit served by said utility facilities, the Owners of any Unit served by said utility facilities shall have the right of reasonable access for themselves or for utility companies to repair, replace, and generally maintain said utility facilities as and when necessary, due to failure or inability of the Board to take timely action to make such repairs or perform such maintenance.

B. Whenever utility facilities are installed within the property, which utility facilities serve more than one (1) Unit, the Owner of each Unit served by said utility facilities shall be entitled to the full use and enjoyment of such portions of said utility facilities as service his or her Unit.

C. In the event of a dispute between Owners with respect to the repair or rebuilding of said utility facilities, or with respect to the sharing of the cost thereof, then, upon written request of one (1) of such Owners addressed to the Association, the matter shall be

21 submitted to arbitration pursuant to the rules of the American Arbitration Association, and the decision of the arbitrator(s) shall be final and conclusive on the parties.

6.2 Association's Duties: The Association shall maintain all utility facilities located in the Common Area except for those facilities maintained by utility companies, public, private, or municipal, and those maintained by the Owners as described in Section 2.4. The Association shall pay all charges for utilities facilities supplied to the project except for those metered or charged separately to the Units.

ARTICLE VII

USE RESTRICTIONS
In addition to all of the covenants contained herein, the use of the property and each Condominium therein is subject to the following:

7.1 Use of Units: No Unit shall be occupied and used except for residential purposes by the Owners, their tenants, and social guests, and no trade or business shall be conducted therein, except that a residential Unit 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 enjoyment by other Unit occupants. No tent, shack, residential vehicle, trailer, outbuilding or structure of a temporary character shall be used at any time as a residence, either temporarily or permanently.

7.2 Unit Occupancy Limits: Overnight occupancy in Units shall not exceed two persons per bedroom/sleeping loft plus two more. “Sleeping loft” means a loft with at least one bed. In no case shall overnight occupancy exceed maximum occupancy as described by governmental statutes, ordinances or regulations..

7.3 Time Sharing: No Condominiums or any portions thereof in the project shall be leased, subleased, occupied, rented, let, sublet, or used for or in connection with any time sharing agreement, plan, program, or arrangement, including, without limitation, any so-called "vacation license", "travel club", "extended vacation", or other membership or time interval ownership arrangement. In accordance with Business and Professions Code section 11212(z), the term "time sharing" as used herein shall be deemed to include any arrangement, plan, scheme, or similar device, other than an exchange program, whether by membership agreement, sale, lease, deed, license, right to use agreement, or by any other means, whereby a purchaser, in exchange for consideration, receives ownership rights in or the right to use accommodations for a period of time less than a full year during any given year, on a recurring basis for more than one year, but not necessarily for consecutive years. A time-share plan may be either of the following:
(1) A “single site time-share” that is the right to use accommodations at a single time-share property.
(2) A “multisite time-share plan” that includes either of the following:

22 (A) A “specific time-share” that is the right to use accommodations at a specific time-share property together with use rights in accommodations at one or more other component sites created by or acquired through the time-share plan’s reservation system. (B) A “nonspecific time-share ” that is the right to use accommodations at more than one component site created by or acquired through the time-share plan’s reservation system, but including no specific right to use any particular accommodations..

Provided that this section shall not be construed to prohibit more than one person from holding title to any Unit or Units as tenants in common, joint tenants, or in undivided interests, nor shall it prohibit joint or recurrent use of a Unit by the Owners or the rental of any Unit by its Owners.

7.4 Nuisances and Excessive Noise: No noxious, hazardous, illegal, or seriously offensive activities shall be carried on in or upon any Unit 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 may in any way interfere with the quiet enjoyment of an Owner's Condominium or which shall in any way increase the rate of insurance for the project, or cause any insurance policy to be canceled or to cause a refusal to renew the same, or which will impair the structural integrity of any building. Without limiting the generality of the foregoing, barking dogs and loud music are examples of nuisances prohibited by this section.

7.5 Vehicle Restrictions: No commercial vehicle, truck (other than standard size pickup truck or standard size van) or boat, and no inoperable vehicle or similar equipment shall be permitted to remain upon any area within the property, other than on a temporary basis. The continuous placement of a vehicle or similar equipment for less than forty-eight hours shall be deemed "temporary" for purposes of this section; the continuous placement of any vehicle or similar equipment for more than forty-eight hours in a thirty day period shall be prohibited.

Commercial vehicles shall not include sedans (or standard size vans or pickup trucks) which are used both for business and personal use, provided that any signs or markings of a commercial nature on such vehicles shall be unobtrusive and inoffensive as determined by the Board. No noisy or smoky vehicles shall be operated upon the property. No unlicensed motor vehicles shall be operated upon the property.

No unlicensed motorcycles or snowmobiles shall be allowed on the project except on a trailer, subject to the following rules regarding trailers. No RV, camper or mobile home (collectively, “RV”) may be used for sleeping in or for any other non-transportation use. RV’s and trailers are permitted on the project so long as they fit into a normal size parking space (9.5 feet by 20 feet). Notwithstanding the above, boats, motor homes or other recreational vehicles, or vehicles otherwise prohibited herein that are brought for temporary use by Project occupants may be parked at the Project temporarily so long as the Association manager has given prior written permission therefore and provided a parking permit that is prominently displayed. The manager shall have reasonable discretion to grant or deny such permission based on such factors as the length of intended stay, the availability of extra parking space, and the extent to which availability is contemplated over the future course of the intended stay.

23 The Association may install a sign at each vehicular entrance to the project containing a statement that public parking is prohibited and that all vehicles not authorized to park on the project will be removed at the Owner's expense. Any such sign shall contain the telephone number of both the local traffic law enforcement agency and each towing company that is a party to a written general towing authorization agreement with the Association, if any, and shall not be less than 17 x 22 inches in size with lettering not less than one (1) inch in height. The Association may cause the removal of any vehicle wrongfully parked on the property, including a vehicle owned by an occupant, in accordance with the provisions of California Vehicle Code section 22658 as that section may be amended from time to time.

Parking is limited to two vehicles per one bedroom and one bedroom and loft units and three vehicles per two bedroom and two bedroom and loft units.

The Association may establish rules and regulations from time to time for the parking of vehicles in the Common Areas, including, but not limited to, rules requiring parking permits.

Maintenance vehicles used by the Association, including, but not limited to, snow removal vehicles, shall not be subject to this Section 7.5.

7.6 Signs: No commercial signs shall be displayed to the public view on any Units or on any portion of the property except such signs as are approved by the Board or by a committee appointed by the Board, except that one (1) (only) "For Sale" or "For Rent" sign per Unit shall be allowed, provided it does not exceed three (3) square feet in size, and provided it is located in a window if reasonably possible. No non-commercial signs more than nine (9) square feet in size, and no non-commercial flags or banners more than fifteen (15) square feet in size, shall be displayed to the public view on any Units or on any portion of the property except as are approved by the Board or by a committee approved by the Board. The display of all other non-commercial signs, flags and banners shall be allowed as authorized by sections 4705 and 4710 of the Civil Code, as such sections may be amended. The Owner responsible for the installation of any commercial or noncommercial sign, flag or banner shall be obligated to pay for any damage to the Common Area (including Restricted Common Area) resulting therefrom.

7.7 Animals: No animals of any kind shall be raised, bred, or kept in any Unit, or on any portion of the property; except pets kept in cages or aquariums and two (2) usual and ordinary pets, such as dogs or cats, provided they are kept under control at all times. Two pets per unit, regardless of ownership, are allowed at the Project but only when an owner is present.

Notwithstanding the foregoing, no pet may be kept on the property which is obnoxious or annoying to other Owners or occupants. No pet shall be allowed in the Common Area except as may be permitted by Rules of the Board. No Owner shall allow his or her dog to enter the Common Area except on a leash. After making a reasonable attempt to notify the animal’s owner, the Association may cause any unleashed dog found within the Common Area to be removed to a pound or animal shelter under the jurisdiction of the Town of Mammoth Lakes, or the County of Mono, by calling the appropriate authorities, whereupon the owner may, upon payment of all expenses connected therewith, repossess the dog. Animal owners shall prevent their pet from soiling all portions of

24 the Common Area and shall promptly clean up any mess left by their pet. No pet shall be allowed on decks or balconies unsupervised.

7.8 Garbage and Refuse Disposal: All rubbish, trash, recyclables and garbage shall be regularly removed from the property, shall not be allowed to accumulate thereon or become an attractive nuisance to animals, and shall not be left on a deck, balcony or porch. Trash, garbage, and other waste shall not be kept except in sanitary containers. All equipment for the storage or disposal of such materials shall be kept in a clean and sanitary condition. The Association shall be responsible for removal of garbage from the central pick-up point(s).

7.9 Radio and Television Antennas: No alteration to or modification of a central radio and/or television antenna/satellite system or cable television system, whichever is applicable, if developed by a cable television franchisee and as maintained by the Association or said franchisee, shall be permitted. No Owner may be permitted to construct and/or use and operate his own external radio and/or television antenna or satellite dish without the prior approval of the Board, exempting the construction, installation or use of a video or television antenna or satellite dish that has a diameter or diagonal measurement of thirty-six inches or less, and which antenna or dish is not visible from any street or Common Area. The construction, installation or use of such antennas or dishes shall still require the prior approval of Board, however, such approval shall be given, subject only to the imposition of reasonable restrictions consistent with the applicable section of the Civil Code (section 4725 as of the date of this Declaration, as that section may be amended over time). All fees for the use of any cable or satellite television system shall be borne by the respective Owners, and not by the Association, except for those related to Board approved televisions in the Common Area, if any.

7.10 Renting and Leasing of Units: The terms of any rental or leasing agreement for any Unit shall provide that the tenants or renters (collectively, “renters”) shall comply in all respects with provisions of this Declaration, the Bylaws and all Rules adopted by the Board.

Owners shall be jointly and severally liable with their renters for the actions of their renters. All Owners who rent their Units shall obtain a rental endorsement providing for the extension of liability coverage in the event of renter negligence in addition to the Owners’ insurance required by Section 8.5. All Owners who rent their Unit for a term of more than thirty days shall confirm in writing to the project manager that they have provided copies of this Declaration and all Rules of the Association to their renters, and shall provide to the manager the following:
• the names of all tenants;
• the current U.S. Mail and email addresses and phone numbers for the Owner and, if applicable, the Owner’s legally designated agent and/or property management contact person; and
• a statement indicating that all tenants have been given a copy of the Declaration, the Bylaws and the Association’s Rules and Regulations and that all tenants have been advised of their responsibility to abide by these documents. The Board may at its sole discretion require tenants to sign an acknowledgement of receipt of these documents and furnish it to the manager. The Board may require that an Owner furnish the Association with a copy of

25 any lease entered into by an Owner, except that Owner can redact any personal information that could lead to identity theft and also the amount of the rent being charged.

All Owners who rent for time periods of less than thirty days (“transient rentals”) shall provide to the manager the current U.S. Mail and email addresses and phone numbers for the Owner and, if applicable, the Owner’s legally designated agent and/or property management contact person. The Board may require that an Owner furnish the Association with a copy of any lease entered into by an Owner for transient rentals, except that Owner can redact any personal information that could lead to identity theft and also the amount of the rent being charged.

7.11 Architectural Control: No alterations of any kind shall be made that impacts the Common Area of the project without prior compliance with this section. Interior alterations within a Unit that in no way impact the Common Area are not regulated by this section. Therefore, no building, fence, wall, pool, spa, obstruction, outside or exterior utility lines, pipes or wiring, Balcony, screen, patio, patio cover, tent, awning, carport, carport cover, trellis, landscaping, or improvement or structure of any kind shall be commenced, installed, erected, painted, repainted, or maintained on the property, nor shall any alteration or improvement of any kind be made thereto until the same has been approved in writing by the Board. Notwithstanding the foregoing, Owners may improve or alter any improvements within the interior boundaries of the Owner's Unit subject to the requirements of Section 7.18, and provided such improvement or alteration does not impair the structural integrity of any Common Area, the utilities, or other systems servicing the Common Area or other Units, and does not involve altering any Common Area (including bearing walls).

The Board shall have the authority to impose conditions of approval as it shall deem appropriate, in the reasonable exercise of its discretion.

Plans and specifications showing the nature, kind, shape, color, size, materials and location of any proposed improvements or alteration regulated by this section shall be submitted to the Board for approval as to 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. All submittals shall be consistent with the Architectural Review Policy adopted by the Board. Nothing contained herein shall be construed to limit the exclusive right of an Owner to paint, wallpaper or in other ways cover the interior of his Unit any color desired as set forth in Section 2.4 of this Declaration.

In the event the Board fails to approve or disapprove plans and specifications in writing within ninety (90) days after the same have been submitted to it, the Owner/applicant may notify the Board by certified mail within the following thirty (30) days that he or she requests a response within thirty (30) days and thereafter should the Board fail to approve or disapprove plans and specifications within thirty (30) days of the Board’s receipt of said certified mail notice the Owner/applicant’s proposal shall be deemed to be approved. If the Owner/applicant does not so notify the Board within that thirty (30) day time frame, then the Owner/applicant’s proposal shall be deemed to be disapproved.

26 Before commencement of any alteration or improvements approved by the Board, the Ownershall comply with all appropriate governmental laws and regulations, including, without limitation, the obtaining of any and all building permits. Approval by the Board does not satisfy the appropriate approvals that may be required by any governmental entity with appropriate jurisdiction.

The Board shall have the discretion to require as a condition of approval of any work which is regulated by this section that the Record Owner(s) of any Unit first sign a hold harmless/indemnification agreement in form and substance satisfactory to the Board which shall be recorded with the Mono County Recorder and bind all subsequent Owners. At the discretion of the Board, this agreement may require the Owner/applicant to be solely responsible for all maintenance of the proposed improvement and for all claims, first party and third party, relating thereto, in perpetuity.

7.12 Clothes Lines: There shall be no outside laundering or drying of clothes. No draping of towels, carpets, or laundry over exterior railings shall be allowed.

7.13 Power Equipment and Vehicle Maintenance: No power equipment, hobby shops, or vehicle maintenance (other than emergency work) shall be permitted on the property except with prior written approval of the Board. Approval shall not be unreasonably withheld, and in deciding whether to grant approval the Board shall consider the effects of noise, air pollution, dirt or grease, fire hazard, interference with radio or television reception, and similar objections.

7.14 Liability of Owners for Damage to Common Area: The Owner of each Condominium shall be liable to the Association for all damage to the Common Area or improvements as described in Section 5.1(A).

7.15 Firewood: Firewood may be stored only on balconies or decks (if and as permitted by law). No more than one cord of firewood may be so stored. Firewood may not be stored anywhere else, including, but not limited to, under external stairways, unless prior written consent is obtained therefore from the Board based on a showing of unusual circumstances.

7.16 Barbeques: No charcoal barbeques are permitted. Propane barbeques are permitted subject to applicable governmental regulations.

7.17 Keys and Contact Information: To help insure protection of the Units and the Common Area, deadbolt locks on all Units shall be master keyed to a key maintained by the manager, and Owners shall keep the managers apprised of their current contact information.

7.18 Prohibition of Second Floor Hard Surface Flooring: No “hard surface flooring,” as determined by the Board of Directors as described in this section, shall be installed in any second floor Unit, with the following exceptions: (1) hard surface flooring may be installed in areas in which such flooring constituted the original flooring in a Unit installed by the Project developer; and (2) hard surface flooring may be installed in a loft. In order to determine whether a proposed new flooring constitutes prohibited “hard surface flooring,” Owners desiring to install any new

27 flooring excepting only flooring consisting of standard carpeting with a pad of at least six pound and a half inch shall first apply to the Board of Directors for its approval. Specific guidelines for what products constitute hard surface flooring and what products do not constitute hard surface flooring as determined by the Board shall be described in a rule in the Rules and Regulations for the Association, which rule may be amended from time to time by the Board as circumstances warrant. The Board shall approve or disapprove any such application in the reasonable exercise of its discretion.

7.19 Decks and Storage: At all times decks, porches, external stairways and areas thereunder shall be kept free of clutter and debris. These areas may not be used for storage except that bicycles and outdoor patio furniture of the type that is made for deck use may be kept and/or used in those areas. Hanging clothes, towels, or other items on the railings and/or storage of any unusual items including storage of exercise equipment on a deck is strictly prohibited. No planters may be placed on decks or deck ledges. Installation of umbrellas or wind/sun shades or any similar items are subject to Board approval or to its written standards. Nothing may be attached to any building, fence or railing without approval of the Board.

7.20 Use of Sidewalks and Walkways: Common Area walkways, sidewalks, front porches and stairways are to be utilized for ingress and egress from buildings and Units. They shall not be obstructed in any manner, i.e., there shall be no planters, toys, bicycles, litter or similar items thereon. There shall be no loitering, bike riding, skateboarding or rollerblading in these areas. Riding or use of any wheeled vehicles other than wheelchairs present an obvious danger to pedestrians and is strictly prohibited.

ARTICLE VIII

INSURANCE

8.1 Insurance: The Association shall obtain and maintain the following insurance:

A. Hazard:

1. General Provisions: A master hazard policy insuring all the improvements within the Common Area in the project against loss or damage by fire or other risks covered by the standard all risk endorsement excluding earthquake and flood but including, without limitation, loss or damage as a result of theft, vandalism or malicious mischief and loss or damage to or as a result of boilers, pressure vessels, pressure pipes or sprinkler leakage and such other risks, perils or coverage as the Board in its discretion determines is necessary or advisable.

2. Policy Limits: Such hazard insurance shall have policy limits of not less than ninety percent (90%) of the full insurable replacement cost of all improvements within the Common Area (as determined not less than every three (3) years by the Board in consultation with the insurance company issuing such policy).

3. Additional Endorsements: The following endorsements should be

28 included in any such master hazard policy, if commercially reasonable to obtain: (A) changes in building codes (“ordinance or law endorsement”); (B) inflation guard coverage; (C) demolition coverage; (D) “agreed-amount” endorsement (to eliminate a coinsurance problem); (E) replacement cost endorsement; (F) primary coverage endorsement; and (G) “maintenance fees receivable” endorsement to cover unpaid Assessments which are not collected by the Association as a result of a covered peril.

B. General Liability:

1. General Provisions: A comprehensive general liability policy insuring the Association, the Board, its agents, the Owners, occupants and such other persons as the Board may determine, against liability for bodily injury, death, or property damage arising from the activities of the Association and the Members or from activities of the directors and officers of the Association acting in their capacity as representatives of the Association, incident to the ownership or use of the Common Area or any other Association-owned or maintained real or personal property, and if obtainable, such policy shall be written on an occurrence basis.

2. Desired Inclusions: If obtainable, such insurance shall include a cross-liability or severability of interest endorsement insuring each insured against liability to each other insured and insurance against water damage, liability for non-owned and hired automobiles, liability for property of others and any other liability or risk customarily covered with respect to projects similar in construction, location and use.

3. Policy Amount. The amount of general liability insurance that the Association shall carry at all times shall be not less than the minimum amounts required by Civil Code sections 5800 and 5805, as those sections may be amended from time to time.

C. Workers’ Compensation: Workers’ compensation insurance to the extent required by law (or such greater amount as the Board deems necessary) and employer’s liability insurance to the extent necessary to comply with applicable laws. The Association shall obtain a certificate of insurance naming it as an additional insured in regard to workers’ compensation claims from any independent contractor who performs any service for the Association, if the receipt of such a certificate is practicable.

D. Directors and Officers: Directors and officers’ liability insurance in not less than the minimum amounts required by Civil Code section 5800, as that section may be amended from time to time.

E. Fidelity Bond Coverage: Fidelity bond coverage in not less than the amounts, and in accordance with the requirements, set forth in Civil Code section 5806, as that section may be amended from time to time.

F. Other Insurance:

1. Such other insurance as the Board in its discretion considers

29 necessary or advisable, including, without limitation, demolition insurance in adequate amounts to cover demolition in the event of destruction and the decision not to rebuild, and fidelity bonds or insurance covering officers, directors, and employees that have access to any Association funds.

2. The Association shall not be required to carry an earthquake endorsement unless a majority of the Voting Power elects to require the Association to obtain such earthquake endorsement. The endorsement may also be subsequently canceled on vote of a majority of the Voting Power. If canceled, the Association shall make reasonable efforts to notify the Members of the cancellation at least thirty (30) days’ before the effective date of the cancellation.

8.2 Amount, Term and Coverage; Review of Policies; Carriers: The amount, term and coverage of any policy required hereunder (including the type of endorsements, the amount of the deductible, the named insured, the loss payees, standard mortgage clauses, notices of changes or cancellations, and the insurance company rating) shall satisfy the minimum requirements set forth in Civil Code sections 5800 and 5805, as those sections may be amended from time to time, and shall be no less than that which is customary for similar policies on similar projects in the area.

The Association shall periodically (and not less than once 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. Such insurance as required or desired hereunder shall be obtained from reputable insurance companies qualified to do business in the State of California and holding a rating of A (or such other comparable rating if Best uses a different standard in rating insurance companies) or better in Best’s Insurance Reports and may be obtained from one or more companies.

8.3 Payment of Deductible; Processing of Claims:

A. Payment of Premiums/Deductible: The premiums for the insurance purchased pursuant to this article shall be paid for out of the Assessments levied and collected pursuant to this Declaration. Subject to the provisions of Section 8.2, the Board may select such deductibles, which, in its opinion, are consistent with good practices in connection with the purchase of such insurance policies. The Board may adopt a policy regarding payment of deductibles on any insurance coverage and such policy shall be set forth in the Rules. Unless the Board determines otherwise, the Association shall pay deductibles required under any insurance claims from Association funds, except if damage is the result of the acts, omissions, negligence or misconduct of an Owner or such Owner’s Invitees, in which case the Owner shall be responsible to pay such deductible and the Association shall levy a Special Assessment against the Owner in such amount in accordance with Article IV.

B. Processing of Claims: The Board may adopt such policies and procedures regarding the filing and processing of claims for damage and destruction to the improvements in the Common Area or any other matters covered by the insurance maintained by the Association as the Board in its discretion shall deem advisable.

8.4 Authority of Board: Each of the Owners, and every other person named or

30 covered as an insured in connection with any of the policies purchased and maintained by the Association, hereby irrevocably delegates to the Board any authority which such Owner may otherwise have to negotiate loss settlements with the insurance carriers who provide such insurance. The Board shall have the sole and exclusive authority and right to negotiate any such loss claim form, release form and/or settlement agreement in connection with the settlement of a loss claim, which shall be binding on all of the Owners, and upon any other person named as an insured on any such policy or policies, but only upon the execution thereof by a majority of the Members of the Board. The Owners and every other person named or insured hereby appoints the Association, by and through the Board, as its attorney-in-fact for the purpose of executing any necessary claim form, release form or settlement agreements on their behalf.

8.5 Owner Insurance:

A. All Owners are strongly cautioned that the insurance maintained by the Association does not cover the personal property in the Units or personal liability for damages or injuries occurring in the Units. The insurance maintained by the Association may not cover the entire actual cost of repairing or reconstructing a Unit to the condition existing prior to a casualty, such as building upgrades previously made by an Owner or unique features of a Unit. In addition, without limitation, Owners may be liable for damages to the Common Area or other Units or Owners and the insurance policies maintained by the Association and/or such other Owners may grant to the applicable insurance carriers rights of subrogation against the Owner responsible for the damages (unless otherwise determined by the Board pursuant to Section 8.6).

B. Each Owner shall be required at its sole cost and expense to obtain and maintain real property and personal property insurance which insures the personal property, furniture, furnishings, and decorations within the Unit, any improvements in the Unit, or otherwise protects the Condominium. These are minimum requirements and each Owner is encouraged to discuss his or her appropriate insurance coverage with his or her insurance agent.

C. Each Owner shall also be required, at its sole cost and expense, to obtain and maintain insurance for premises liability which includes protection for bodily injury and property damage, in such types as reasonably determined by the Board based on generally acceptable industry standards or practices in California, as applicable from time to time. The minimum amount of such liability insurance shall be one million dollars ($1,000,000.00) or such other amount as the Board may reasonably determine from time to time. Umbrella coverage applicable to a Unit may be counted toward the minimum coverage requirement.

D. Notwithstanding the foregoing, no Owner shall be entitled to exercise such Owner’s right to acquire or maintain such insurance coverage so as to decrease the amount which the Association, on behalf of all Owners, may realize under any insurance policy which it may have in force on the Common Area at any particular time or to cause any insurance coverage maintained by the Association to be brought into contribution with such insurance coverage obtained by the Owner.

E. Each Owner shall be required to file a copy of the policy or policies required

31 under this section with the Board at the time of the Owner’s purchase of a Unit and shall provide evidence to the Board (or to the manager or other designee of the Board) of the insurance coverage required by this section from time to time as may be requested by or on behalf of the Board.

Because the Owner, and not the Association, is responsible for maintaining insurance coverage for such Owner’s personal property and improvements to the Unit, all of which may not be covered by the Association’s policy on the Common Area, in the event of a casualty loss that results in damage to the Unit or the Owner’s personal property or improvements to the Unit, such Owner shall be required to file a claim against such Owner’s insurance policy. Should the Owner’s best good faith efforts fail to result in full coverage of such a claim, then the Board may elect to submit a claim to the Association’s insurance carrier for any remaining unreimbursed portion of the claim, should the Board determine, in the sole exercise of its discretion, that to do so would be in the best interest of the Association. Neither the Association nor the Board shall have any obligation to review any insurance policies, certificates or similar documents provided by any Owner. Any such review, if conducted, shall be solely for the benefit of the Association and neither the Association nor the Board shall have any liability with respect to the adequacy of coverage obtained by any Owner or any similar matter, including, but not limited to, whether or to what extent Owners comply with this section and whether or to what extent the Board and/or Association enforces the requirements of this section. The Board shall have the authority to adopt Rules in accordance with Section 5.2(C) to monitor and enforce compliance with provisions of this section.

F. In addition, it is recommended that each Owner periodically contact the Board to determine the types and amounts of insurance coverage then being provided pursuant to Sections 8.1 and 8.2 hereof, and that each Owner purchase any other policy of insurance which such Owner believes is reasonably necessary to protect such Owner’s separate interest.

G. So long as Owners are in compliance with the insurance provisions of this section, then in the event of a loss covered by the Association’s insurance such Owners shall be entitled to proportionately share in any excess insurance proceeds after rebuilding of Common Area in accordance with each Unit’s proportionate allocation of Assessments as set forth in Section

4.6 to the extent such proceeds are allowed to be used for rebuilding of interior fixtures, cabinets and similar property. Owners not in compliance shall not be so entitled.

8.6 Additional Provisions Regarding Insurance Policies:

A. Subrogation: The Board shall determine from time to time whether and the extent to which the insurance maintained by the Association shall provide that the Association has rights of subrogation against Owners, occupants of the Condominiums and Mortgagees, or whether such rights of subrogation shall be waived. If required by the Board, all insurance maintained by an Owner shall contain a waiver of subrogation as to the Association and its officers, directors and Members, the other Owners, occupants of the Condominiums, and Mortgagees, and all Owners are deemed to have waived on behalf of their respective insurance carriers any such subrogation rights.

B. Optional Provisions: To the extent economically practical and available at reasonable premiums, as determined by the Board, any insurance maintained by the Association

32 shall:

1. Cross-Liability: Contain a cross-liability or severability of interest endorsement insuring each insured against liability to each other insured.

2. Decision to Repair: Provide that the insurer issuing such insurance policy agrees to abide by the decision of the Association whether or not to repair, reconstruct or restore all or any damaged or destroyed portion of the Common Area.

3. No Escape Clause: Contain “no escape” or “other insurance” clause that would cause such policy to become void in whole or in part or cause any proceeds payable thereunder to be reduced, setoff, apportioned, prorated or otherwise brought into contribution with or by reason of separate insurance obtained by any Owner or such Owner’s Mortgagee.

4. Valuation of Improvements: Provide that only improvements made or installed by the Association shall affect the valuation of the buildings or improvements on the property for co-insurance purposes.

5. Power to Adjust Losses: Provide that the Board or its authorized agent or representative shall have the exclusive authority to adjust any and all losses covered by said policy.

6. Vacancy: Provide that the insurance obtained pursuant to this article shall not be prejudiced by reason of the vacancy or non-occupancy of any one or more Units, provided that this Declaration (as it may be amended from time to time) is in force and the project is operating as a condominium project.

7. Association as Trustee: Provide that all insurance proceeds obtained pursuant to the Association’s master insurance policy be payable to the Association as trustee to be held and expended as provided in this Declaration for the benefit of the Owners and their respective Mortgagees as their interests may appear.

8.7 Limitation of Liability Regarding Insurance: The Association, and its directors and officers, shall have no liability to any Owner or Mortgagee if, after a good faith effort, it is unable to obtain the 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 if the Members fail to approve any increased Assessment needed to fund the insurance premiums. In such event, the Board shall immediately notify each Owner and any eligible first Mortgagee entitled to notice that the insurance will not be obtained or renewed. Furthermore, as to any insurance to be obtained or maintained by the Association hereunder, provided that such policies will not be voided or impaired thereby, the Owners hereby waive and release all claims against the Association, the Board, Association employees, and other Owners with respect to any loss covered by such insurance.

33 8.8 Notice of Change in Insurance Coverage: The Association shall, as soon as reasonably practicable, provide individual notice pursuant to Civil Code section 4040 to all Members if any of the policies described in the annual budget report described in Section 12.1 of the Association’s Bylaws have lapsed, been cancelled, and are not immediately renewed, restored or replaced, or if there is a significant change, such as a reduction in coverage or limits or an increase in the deductible, as to any of these policies. If the Association receives any notice of nonrenewal of a policy described in such annual budget report, the Association shall immediately notify its Members if replacement coverage will not be in effect by the date the existing coverage will lapse.

ARTICLE IX
DAMAGE OR DESTRUCTION; EMINENT DOMAIN

9.1 Initial Board Determination; Notice:

A. In the event of damage to any Common Area or to any portion of a Unit or its Restricted Common Area, equipment or appliances covered by the Association’s insurance policy, the Board shall promptly, and to the extent possible, within sixty (60) days after the date of damage, make the following determinations with respect thereto, employing such contractors, architects, and/or consultants as the Board deems advisable and necessary:

1. The nature and extent of the damage, together with an inventory of the improvements and property directly affected thereby.

2. A reasonably reliable estimate of the cost to repair the damage, which estimate shall, if reasonably practicable, be based upon two (2) or more firm bids obtained from responsible contractors.

3. The expected insurance proceeds, if any, to be available from insurance covering the loss based on the amount paid or initially offered by the insurer.

4. The amount, if any, by which the estimated cost of repair exceeds the expected insurance proceeds, and the amount of the Assessments that would have to be made against each Unit if the excess cost were to be paid as a Common Expense.

B. The Board shall promptly, and in all events within thirty (30) days after the date of damage, file a proof of loss claim with the insurance company if the loss is covered by insurance and abide by all terms and conditions of its insurance policies, unless the Board determines it would not be in the best interest of the Association to file a proof of loss claim. The Board shall then provide each Owner with written notice describing the damage and summarizing the initial Board determinations in relation to the damage. If the damage affects a material portion of the project, the Board shall also send the notice to each eligible first Mortgagee; and if the damage affects a Unit, the Board shall send the notice to the eligible first Mortgagee of that Unit.

If the Board fails to do so within such thirty (30) day period, any Owner or eligible first Mortgagee

34 may give the notice required under this section.

9.2 Reconstruction Without Election by Owners: In the event of damage to or destruction of any improvements, if the available proceeds of the insurance carried pursuant to Article VIII are sufficient to cover not less than eighty-five percent (85%) of the estimated cost of repair or reconstruction thereof, the same shall be promptly repaired and rebuilt. Notwithstanding the foregoing, if:

A. Such damage or destruction renders the entire project or some material portion thereof unfit for habitation; and
B. Within ninety (90) days after the date that the Board notifies the Members that it has determined the amount of insurance proceeds likely to be available for rebuilding will satisfy the requirements of the first sentence of this section 9.2, and not less than seventy-five percent (75%) of the Voting Power at a duly constituted and called annual or special meeting of the Members determine that such reconstruction shall not take place, then such reconstruction shall not occur and the provisions of Section 9.6 shall apply.

9.3 Repair or Reconstruction by Consent of Owners: If the proceeds of such insurance are less than eighty-five percent (85%) of the costs of repair or reconstruction, such repair or reconstruction may nevertheless take place if at least fifty percent (50%) of the Units requiring repair or reconstruction elect to rebuild; otherwise the provisions of Section 9.6 shall apply.

9.4 Assessments; Use of Reserves: In the event of a determination to rebuild pursuant to Section 9.2 the Board shall have the authority to levy a Special Assessment against the Owners in such amount as necessary to pay for the costs of rebuilding which exceed the insurance proceeds available. In the event of a determination to rebuild pursuant to Section 9.3, the Board shall have the authority to levy a Special Assessment against the damaged or destroyed Units (only) in such amount as necessary to pay for the cost of rebuilding which exceed insurance proceeds available, except that the amount of the Association’s reserves proportionally attributable to the square footage of the Units suffering damage or destruction shall first be expended for this cost. Either way such Special Assessment shall be computed on the basis of the calculation set forth in Section

4.6(A) for those Units subject to the Special Assessment, and shall be due and payable in full within thirty (30) days after written notice thereof unless otherwise determined by the Board. In the event of damage or destruction to a building which does not contain Units, then the Board shall have the authority to levy a Special Assessment against all of the Units in such amount as necessary to pay for the cost of rebuilding which exceeds insurance proceeds available. Such Special Assessment shall be computed on the basis of the calculation set forth in Section 4.6(A) referenced hereinabove and shall be due and payable in full within thirty (30) days after written notice thereof unless otherwise determined by the Board.

9.5 Obligation of Board When Rebuilding:

A. Obtaining Bids: The Board shall utilize such construction consultants,

35 architects and other professionals as it shall determine are reasonably necessary in connection with its obligations under this article. Unless the estimated cost of repair is less than $100,000.00, the Board shall make reasonable efforts to obtain bids from at least two (2) reputable contractors, and if a determination to rebuild is made in accordance with Sections 9.2 or 9.3, the Board shall award reconstruction work to the bidder the Board reasonably believes is best qualified to perform the work at a reasonable price; provided, however, that the Board shall not be required or authorized to award such contract until it has sufficient monies, whether from insurance proceeds or the collection of Special Assessments, with which to pay the cost of reconstruction as reflected by the bid to be accepted by the Board. Unless the estimated cost of repair is less than $100,000.00, all insurance proceeds, Special Assessments and other monies allocated for the repair or rebuilding, including any borrowings by the Association, shall be deposited with a financially sound, reputable commercial lending institution or escrow company experienced in the disbursement of construction funds. The Board, upon awarding said contract, shall thereafter be authorized to cause the disbursement of monies to the contractor in accordance with said contract from time to time as construction progresses, utilizing the available insurance proceeds and the Special Assessments levied and collected by the Board in accordance with this article, and in accordance with customary construction disbursement procedures, in coordination with applicable insurers and any first Mortgagees.

B. Time Period and Manner of Reconstruction: The Board shall take all steps necessary or appropriate to assure the commencement and completion of such reconstruction at the earliest practicable date. All reconstruction shall be in accordance with the Condominium Plan and the original plans of construction of the project (if available) subject to any different building codes and standards then in effect, unless an alternative plan is approved by a majority of the Voting Power and taking into consideration the availability and expense of labor and materials in the original construction of the improvements.

C. If the cost of repair or reconstruction is $100,000 or less, the Board shall disburse the available funds for the repair and reconstruction under such procedures as the Board deems appropriate under the circumstances.

9.6 Determination Not to Rebuild and to Sell Project: If the improvements are not repaired or rebuilt in accordance with the provisions of Sections 9.2 or 9.3, any insurance proceeds available for such rebuilding (after payment of the costs of mitigating hazardous conditions on the project, making provision for the continuance of public liability insurance to protect the interests of the Owners until the project can be sold, and complying with all other applicable legal or regulatory requirements) shall be divided and disbursed among the Owners in the same proportions as those relating to each Owner’s responsibility for Regular Assessments in accordance with Section 4.6. Disbursements to Owners shall be subject to the rights of Mortgagees. Any unpaid Assessments of an Owner, together with interest charges attributable thereto, shall be paid to the Association before the distribution of any insurance proceeds to an Owner. If the project is sold, the sale proceeds shall be distributed to all Owners (subject to the rights of Mortgagees) in the same proportions as those relating to each Owner’s responsibility for Regular Assessment in accordance with Section 4.6. For the purpose of effecting a sale under this section, each Owner hereby grants to the Association an irrevocable power of attorney to sell the entire project for the

36 benefit of the Owners, to terminate this Declaration and to dissolve the Association.

9.7 Interior Damage:

A. General Provisions: Restoration and repair of any damage occurring under the conditions addressed in this article to the betterments and improvements of any individual Unit shall be made by and at the individual expense of the Owner of such Unit (unless there are insurance proceeds to cover such item pursuant to Article VIII) and, in the event of a determination to rebuild after partial or total destruction, shall be completed as promptly as practical and in a lawful and workmanlike manner, and subject to the approval of the Board to the extent otherwise required under Section 7.11 or other provisions hereof.

B. Specific Provision - Earthquake Damage to Drywall: In the event of earthquake damage to the plaster and drywall in a Unit, the Owner shall be solely responsible for repair or replacement thereof, at the Owner’s discretion.

9.8 Negotiations with Insurer: The Board shall have full authority to negotiate in good faith with representatives of the Association’s insurer of the improvements or any other portion of the Common Area, and to make a settlement with the insurer for less than full insurance coverage on the damage to the improvements or any other portion of the Common Area. Any settlement made by the Board in good faith shall be binding upon all Owners.

9.9 Condemnation: The Association shall represent the Owners in any eminent domain or condemnation proceedings or in negotiations, settlements, and agreements with any condemning authority for the taking or acquisition (a “Taking”) of the Common Area or any part thereof. In the event of a Taking of any or all of the Common Area, the award or proceeds of settlement shall be payable to the Association, or any trustee appointed by the Association, for the use and benefit of the Owners and their Mortgagees as their interests may appear. In the event of an award for the taking of any Condominium, the Owner of such Condominium shall be entitled to receive the entire award, and after acceptance thereof such Owner and such Owner’s Mortgagee shall be divested of an interest in the project if such Owner shall vacate his or her Condominium as a result of such taking. The Voting Power of the remaining Owners shall decide whether to rebuild or repair the project, or take other action. The remaining portion of the project shall be resurveyed, if necessary, and this Declaration shall be amended to reflect such taking and to readjust proportionately the percentages of the undivided interests of the remaining Owners and the assessment calculation set forth in Section 4.6. In the event of a taking of any part of the Common Area, the Association shall participate in the negotiations, and shall propose the method of division of the proceeds of condemnation, where the Condominiums are not valued separately by the condemning authority or by the court. Proceeds of condemnation shall be distributed among Owners and their respective Mortgagees according to the relative values of the Condominiums affected by the taking, said values to be determined by the method provided in Section 9.6. If there is a substantial taking of the project, as determined by the Board, the Voting Power of the Owners may terminate the legal status of the project as a condominium project and, if necessary, bring a partition action under Civil Code section 4610, as that section may be amended over time.

The proceeds from the partition sale shall be distributed to the Owners (subject to the rights of

37 Mortgagees) in proportion to the values of their Condominiums as determined under the method described in Section 9.6.

ARTICLE X

GENERAL PROVISIONS

10.1 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 applicable restrictions, conditions, covenants, reservations, liens, and charges now or hereafter imposed by the provisions of this Declaration, the Articles and the 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 or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. The prevailing party in any proceeding by or against the Association or any Owner as described hereinabove shall be entitled to an award of reasonable attorneys' fees and costs.

10.2 Invalidity of Any Provision: Should any provision or portion hereof be declared invalid or in conflict with any law of the jurisdiction where this project is situated, the validity of all other provisions and portions hereof shall remain unaffected and in full force and effect.

10.3 Term: The covenants and restrictions of this Declaration shall run with and bind 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 respective legal representatives, heirs, successors and assigns, for a term of twenty (20) years from the date of recordation of this Declaration, after which time they shall be automatically extended for periods of twenty (20) years, unless an instrument in writing, signed by the number of the then Owners of the Condominiums required by the terms of this Declaration has been recorded within the year preceding the beginning of each successive period of twenty (20) years, agreeing to terminate the same.

10.4 Amendments: This Declaration may be amended only by the affirmative vote or written consent of Members representing a majority of the Voting Power of the Association.

However, the percentage of Voting Power necessary to amend a specific clause shall not be less than the prescribed percentage of affirmative votes required for action to be taken under that clause.

Any amendment must be certified in a writing executed and acknowledged by the president or vice president of the Association and recorded in the office of the Mono County Recorder. All amendments affecting matters within the regulatory power of the Town of Mammoth Lakes must be approved by the attorney for the Town of Mammoth Lakes. No amendment shall adversely affect the rights of the holder of any Mortgage of record prior to the recordation of such amendment.

10.5 Encroachment Rights: If any portion of the Common Area encroaches on any Unit or any part thereof, or if any portion of a Unit encroaches on any Common Area, due to minor engineering errors, minor errors in original construction, reconstruction, repair, settling, shifting, or movement of the building, or any other cause, the Owner of the encroachment shall have the

38 right to maintain, repair, or replace the encroachment, as long as it exists, and the rights and obligations of Owners shall not be altered in any way by said encroachment, settlement, or shifting; provided, however, that no right shall be created in favor of an Owner or Owners if said encroachment occurred due to the intentional conduct of said Owner or Owners. In the event a structure is partially or totally destroyed, and is then repaired or rebuilt, the Owners agree that minor encroachments over adjoining Units or Common Area shall be permitted and that there shall be appropriate rights for the maintenance of said encroachment so long as they shall exist.

10.6 Rights of 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 (meaning a Mortgage with first priority over any other Mortgage) on any Condominium made in good faith and for value, but all of said covenants, conditions and restrictions shall be binding on and effective against any Owner whose title is derived through foreclosure or trustee's sale, or otherwise. Notwithstanding any provision in any documents to the contrary, First Lenders shall have the following rights:

A. Copies of Project Documents: The Association shall make available to Condominium Owners and First Lenders, and to holders, insurers or 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 at least ten days' prior written request, during normal business hours or under other reasonable circumstances. The party requesting such records shall pay to the Association, in advance, the actual out of pocket expenses estimated to be incurred by the Association for the production of those records, including, but not limited to, the cost of staff time (whether the staff time be incurred by employees of the Association or by independent agents of the Association, for example, the accountant or attorney of the Association). Within a reasonable amount of time after the production is complete, a reconciliation of the actual cost compared to the amount of the advance deposit shall be made, and the party requesting the records shall either be refunded the difference, or shall pay the difference to the Association, as the case may be. In addition, parties requesting copies of such records shall pay to the Association in advance an amount equal to the actual cost of the copies to the Association.

B. Audited Statement: The holders of fifty-one percent (51%) or more of first Condominium Mortgages 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 to the requesting Mortgagees within a reasonable time following such request.

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 Condominium number or address, such Eligible Mortgage Holder or Eligible Insurer or Guarantor will be entitled to timely written notice of: (1) Any condemnation loss or any casualty loss which affects a material portion of the project or any Condominium on which there is a first Mortgage held, insured or guaranteed by such Eligible Mortgage Holder or Eligible Insurer or Guarantor, as applicable; (2) any default in performance of obligations under the project documents or

39 delinquency in the payment of Assessments or charges owed by an Owner of a Condominium subject to a first Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder or Eligible Insurer or Guarantor, which remains uncured for a period of sixty (60) days; (3) any lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Association; and (4) any proposed action which would require the consent of a specified percentage of Eligible Mortgage Holders as specified in Section 10.6(D). The Association shall discharge its obligation to notify eligible holders or Eligible Insurers or Guarantors by sending written notices required herein to such parties, at the address given on the current request for notice, in the manner prescribed by Section 10.8.

D. Consent to Action:

1. Except as provided by statute or by other provision of the project documents in case of substantial destruction or condemnation of the project:
a. The approval of Eligible Mortgage Holders holding
Mortgages on Condominiums which have at least sixty-seven percent (67%) of the votes of Condominiums subject to Eligible Holder Mortgages shall be required to terminate the legal status of the project as a condominium project.
b. The approval of Eligible Mortgage Holders holding
Mortgages on Condominiums which have at least fifty-one percent (51%) of the vote of the Condominiums subject to Eligible Holder 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 the priority of such liens; (iii) reserves for maintenance, repair and replacement of the Common Area(s) (or Units if applicable); (iv) insurance or fidelity bonds; (v) rights to use of Common Areas; (vi) responsibility for maintenance and repair of the 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 D.1 above); (viii) redefinition of boundaries of any Condominium; (ix) reallocation of the interests in the general or restricted Common Areas; (x) convertibility of Units into Common Areas or of Common Areas into Units; (xi) leasing of Condominiums; (xii) imposition of any right of first refusal or similar restriction on the right of a Condominium Owner to sell, transfer, or otherwise convey his or her Condominium; (xiii) any provisions which are for the express benefit of Mortgage holders, Eligible Mortgage Holders, or Eligible Insurers or Guarantors of first Mortgages on Condominiums; and (xiv) restoration or repair of the project (after a hazard damage or partial condemnation) in a manner other than specified herein. c. An addition or amendment to such document shall not be considered material if it is for the purpose of correcting technical errors, or for clarification only.

An Eligible Mortgage Holder who received a 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 was delivered by certified or registered mail, with a return receipt requested.

40 2. Except as provided by statute in case of condemnation or substantial loss to the Condominiums and/or common elements of the condominium project, unless Eligible Mortgage Holders holding Mortgages on Condominiums which have at least two-thirds (2/3) of the vote of the Condominiums subject to Eligible Holder Mortgages 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 condominium project (except for abandonment or termination provided by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain);
b. Change the pro rata interest or obligations of any individual Condominium for the purpose of: (i) levying Assessments or charging or allocating distributions of hazard insurance proceeds or condemnation awards, or (ii) determining the pro rata share of ownership of each Condominium in the (Condominium) Common Area; c. Partition or subdivide any Condominium;
d. By act or omission, seek to abandon, partition, subdivide, encumber, sell or transfer the Common Area. (The granting of easements for public utilities or for other public purposes consistent with the intended use of the Common Area by the Condominium project shall not be deemed a transfer within the meaning of this clause); e. Use hazard insurance proceeds for losses to any
Condominium property (whether to Condominiums or to Common Area) for other than the repair, replacement or reconstruction of such Condominium property.

E. Priority of Liens: Each holder of a first Mortgage on a Condominium who comes into possession of the Condominium by virtue of foreclosure of the Mortgage, or any purchaser at a foreclosure sale under a first deed of trust, will take the Condominium free of any claims for unpaid Assessments and fees, late charges, fines, or interest levied in connection therewith against the Condominium which accrue prior to the time such holder takes title to the Condominium, except for claims for a pro rata share of such Assessments or charges to all project Condominiums including the mortgaged Condominium, and except for assessment liens recorded prior to the Mortgage.

F. Distribution of Insurance or Condemnation Proceeds: No provision of the project documents gives an Owner, or any other party, priority over any rights of first Mortgagees in the case of a distribution to Condominium Owners of insurance proceeds or condemnation awards for losses to or taking of Condominiums and/or Common Area.

G. 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

41 approved by Eligible Mortgage Holders holding Mortgages on Condominiums which have at least fifty-one percent (51%) of the votes of Condominiums subject to Eligible Holder Mortgages.

H. Termination: Any action to terminate the legal status of the project after substantial destruction or a substantial taking in condemnation of the project property requires the approval of Eligible Mortgage Holders holding Mortgages on Condominiums which have at least fifty-one percent (51%) of the votes of Condominiums subject to Eligible Holder Mortgages.

I. Reallocation of Interests: No reallocation of interests in the Common Areas resulting from a partial condemnation or partial destruction of the project may be effected without the prior approval of Eligible Mortgage Holders holding Mortgages on all remaining Condominiums whether existing in whole or in part, and which have at least fifty-one percent (51%) of the votes of such remaining Condominiums subject to Eligible Holder Mortgages.

10.7 Enforcement of Owners' Compliance: Each Owner, tenant, or occupant of a Condominium shall comply with the provisions of this Declaration, and (to the extent they are not in conflict with this Declaration), the Articles and Bylaws, and the decisions, resolutions and Rules of the Association or the Board, as lawfully amended from time to time. Failure to comply with any such provisions, decisions, Rules or resolutions shall be grounds for discipline against an Owner in accordance with Section 7.2 of the Bylaws, and/or for an action (1) to recover sums due, (2) for damages, (3) for injunctive relief, (4) for costs and attorneys’ fees, or (5) for any combination of the foregoing.

All agreements and determinations lawfully made by the Association in accordance with the voting procedures established in this Declaration or in the Bylaws, shall be deemed to be binding on all Owners of Condominiums and their successors and assigns.

10.8 Notice: Any notices required or permitted to be delivered by the Association to one or more Owners shall be delivered in accordance with the applicable provisions of Civil Code sections 4040 and 4045. Any notices required or permitted to be delivered by an Owner to the Association shall be delivered in accordance with Civil Code section 4035.

10.9 Fair Housing: No Owner shall, either directly or indirectly, forbid or restrict the conveyance, encumbrance, leasing, or mortgaging, or occupancy of his Condominium to any person of a specified race, sex, sexual orientation, adulthood, marital status, color, religion, ancestry, physical handicap, or national origin.

ARTICLE XI

EASEMENTS

11.1 Validity of Prior Easements: Any and all easements reserved, granted or in any manner created by the original declaration in favor of declarant, the Association, or the Members, or to anyone else without limitation, whether for utilities, maintenance, access or for any other

42 purpose without limitation, shall not be extinguished or modified by this Amendment but shall instead remain in full force and effect.

11.2 New Easements: The Association shall have the authority to grant easements in accordance with Section 5.3 of this Declaration.

Conclusion of Amended and Restated Declaration
(mamm-creek\governing documents\ccr061322)

“If this document contains any restriction based on
race, color, religion, sex, familial status, marital
status, disability, national origin, source of income
as defined in subdivision (p) of Section 12955, or
ancestry, that restriction violates state and federal
fair housing laws and is void, and may be removed
pursuant to Section 12956.2 of the Government
Code. Lawful restrictions under state and federal
law on the age of occupants in senior housing or
housing for older persons shall not be construed as
restrictions based on familial status.”

WHEN RECORDED RETURN TO
Board of Directors

MAMMOTH CREEK HOA
96 Meadow Lane
P. 0. Box 7208
Mammoth Lakes, CA 93546.

Doc # 300900175 7

Date: 4/E0/H00 9 1 1 = OOft
Filed by: GENERflL PUBLIC
Filed & Recorded in Official Records
of HOMO COUNTY

LYNDA ROBERTS

CLERK-RECORDER
Fee: $125.68

MAMMOTH CREEK HOMEOWNERS

ASSOCIATION

RESTATED DECLARATION
OF

COVENANTS, CONDITIONS

AND RESTRICTIONS

DOC 8 2009001757

MAMMOTH CREEK HOMEOWNERS ASSOCIATION

RESTATED DECLARATION

TABLE OF CONTENTS
NAME AND LOCATION 1
ARTICLE I DEFINITIONS 2
Section 1.1. Architectural Committee 2
Section 1.2. Articles of Incorporation 2
Section 1.3. Assessments 2
Section 1.4. Association 2
Section 1.5. Board 2
Section 1.6. Common Area 2
Section 1.7. Common Expenses 2
Section 1.8. Common Interest 2
Section 1.9. Condominium 2
Section 1.10. Condominium Plan 2
Section 1.11. Covered Property 3
Section 1.12. Declaration or"CC&Rs 3
Section 1.13. Exclusive Use Common Area 3
Section 1.14. Governing Documents 3
Section 1.15 Maintenance 3
Section 1.16. Map 3
Section 1.17. Member 3
Section 1.18 Mortgage- Mortgagee 3
Section 1.19. Owner 3
Section 1.20. Parking Space 3
Section 1.21. Project 3
Section 1.22. Properties 4
Section 1.23. Restricted Common Area 4
Section 1.24 Rules 4
Section 1.25. Storage Areas 4
Section 1.26. Unit 4

ARTICLE II PROPERTY/RIGHTS AND EASEMENTS/RIGHTS OF
ACCESS/OWNERS'ASSOCIATION 4
A. DIVISION OF PROPERTY 4
Section 2.A.1. Description of Property ..4
Section 2.A.2. Division of Property 4
Section 2.A.3. Elements of Condominium/Unit 4
Section 2.A.4. Common Area 5
Section 2.A.5. Exclusive Use/Restricted Use Common Area/ Exclusive Easement 5
Section 2.A.6. No Separate Conveyance of Undivided Interest 5 Section 2.A.7. Partition Prohibited 5
i
RESTATED DECLARATION OF CC&RS - FEBRUARY 2009

TABLE OF CONTENTS

DOC # £00900175 7

B PROPERTY RIGHTS AND EASEMENTS OF ENJOYMENT 5
Section 2 B 1 Owners1 Rights of Enjoyment and Easements 5 Section 2 B 2 Parking Spaces 6
Section 3 B 3 Delegation of Use . 6
Section 2 B 4 Utility Access 6
C RIGHT OF ENTRY 7
Section2C1 Right of Entry 7
Section 2 C 2 Right of Inspection 7
D EASEMENTS 7
Section 2 D 1 Easements for Encroachment 7
Section 2 D.2 Association Easements 7
Section 2 D 3 Governmental Easements 8
Section 2 D 4 Easement for Owners Across Common Area 8
E OWNERS'ASSOCIATION 8
ARTICLE III MEMBERSHIP AND VOTING RIGHTS 8
Section 3 1 Membership 8
Section 3 2 Voting of Members 8
ARTICLE IV COVENANT FOR ASSESSMENTS 8
Section 4 1 Creation of the Lien and Personal Obligation of Assessments 8
Section 4 2 Purpose of Regular Assessments . 8
Section 4 3 Limits on Annual/Regular Assessments
And Special Assessments 9
Section 4 4 Emergency Assessments 9
Section 4 5 Reconstruction Assessment 9
Section 4 6 Reimbursement Assessment 9
Section 4 7 Enforcement Assessment (Fine) 9
Section 4 8 Imposition of Assessments at Times Other Than With Budget Distribution 10
Section 4 9 Notice and Rate of Assessment 10
Section 4 10 Association Bank Accounts 10
Section 4 11 Date of Commencement/Collection of Annual
(Regular) and Special Assessments 11
Section 4 12 No Offsets 11
Section 4 13 Effect of Nonpayment of Assessment/Remedies of the Association 11
Section 4 14 Lien Notice Requirements 12
Section 4 15 Access to IDR (Internal Dispute Resolution (IDR), A Meeting to Discuss A Payment Plan
, or Alternative Dispute Resolution (ADR) 12
RESTATED DECLARATION OF CC&RS - FEBRUARY 2009

TABLE OF CONTENTS

DOC # 3009001757

Section 4.16. Curing the Default 12
Section 4.17. Authorized Charges for Transfer of Membership 12 Section 4.18. Priority of Interests/Subordination of the Lien of of Association to Mortgages 12
Section 4.19. Property Tax Assessment 13
ARTICLE V USES PROHIBITED AND PERMITTED 13
Section 5.1. Residential Use 13
Section 5.2. Leasing/Renting Units 13
Section 5.3. Timeshares 14
Section 5.4. Business and Commercial Use Prohibited 14
Section 5.5. Nuisances 14
Section 5.6. Hazards 14
Section 5.7. Animals 14
Section 5.8. Vehicles, Parking, and Parking Rules 15
Section 5.9. Signs/Flags/Banners 16
Section 5.10. Antennas, Satellite Dishes and/or Fixtures 16 Section 5.11. Decks and Storage 16
Section 5.12. Use of Sidewalks and Walkways 16
Section 5.13. Trash and Garbage 17
Section 5.14. Barbecue or Outdoor Cookers 17
Section 5.15. Fences and Screens 17
Section 5.16. Outside Laundering and Drying 17
Section 5.17. Common Area Trees 17
ARTICLE VI MAINTENANCE/REPAIR OBLIGATIONS 17
Section 6.1. Association's Obligations and Responsibilities 17 Section 6.2. Unit Owner's Responsibilities and Obligations 18 Section 6.3. Board Discretion to Order Maintenance by Owner....20 Section 6.4. Liability of Owners for Damages 20
ARTICLE VII ARCHITECTURAL CONTROL 21
Section 7.1. Overall Standard of Architecture and Maintenance ..21 Section 7.2. Review Process 21
Section 7.3. Form of Approval 21
Section 7.4. Reconsideration 22
Section 7.5. Town or County Approval 22
Section 7.6. Mechanics' Liens 22
Section 7.7. Liability 22
ARTICLE VIII INSURANCE 22
Section 8.1. Types 22
Section 8.2. Other Insurance (Earthquake/Flood/Etc.) 23 Section 8.3. Premiums, Proceeds and Settlement 23
Section 8.4. Annual Insurance Review 24
RESTATED DECLARATION OF CC&RS - FEBRUARY 2009

TABLE OF CONTENTS

DOC # E00900175 7

Section 8 5 Policy Limits-Duration
Section 8 6 Trustee
Section 8 7 Owner's Insurance Requirements
Section 8 8 Inability to Obtain Insurance
Section 8 9 Deductibles
24 24
24 25
25 ARTICLE IX DAMAGE OR DESTRUCTION OF BUILDINGS CONDEMNATION 25 Section 9 1 Damage to a Single Unit 25
Section 9 2 Damage to other than a Single Unit 25
ARTICLE X RIGHTS AND PROTECTION OF MORTGAGEES (LENDERS) 26 Section 10 1 Conflict 26
Section 10 2 Notices to Eligible Holders 26
Section 10 3 Inspection of Books and Records 27
Section 10 4 Financial Statements 27
Section 10 5 Priority of First Mortgagees 27
Section 10 6 Priority of Liens 27
Section 10 7 Distribution of Insurance or Condemnation
Proceeds 27
ARTICLE XI POWERS AND AUTHORITY OF THE ASSOCIATION 28
ARTICLE XII DISCLOSURE AND OTHER OBLIGATIONS OF OWNERS 28 Section 12 1 Documents to Purchaser 28
Section 12 2 Notification of Record Ownership to Association 28 Section 12 3 Renting or Leasing-Notification to Association 28 Section 12 4 Registration of Vehicles 29
Section 12 5 Other Owner Obligations 29
ARTICLE XIII COUNTY/TOWN OF MONO 30
Section 13 1 Enforcement 30
Section 13 2 Open Space and Parking Areas 30
Section 13 3 Water Charges 30
Section 13 4 Approval of County or Town of Mono 30
ARTICLE XIV GENERAL PROVISIONS 30
Section 14 1 Binding 30
Section 14 2 Enforcement 30
Section 14 3 Construction of Provisions 30
Section 14 4 Internal Dispute Resolution (IDR) and Alternative Dispute Resolution (ADR) 31
Section 14 5 Severabihty of Provisions 31
Section 14 6 Amendment 31
Section 14 7 Notices 31
Section 14 8 Conflicting Provisions/Heirarchy of Documents 31 Section 14 9 Number, Gender 31
RESTATED DECLARATION OF CC&RS - FEBRUARY 2009

TABLE OF CONTENTS

DOC # 800900175 7
Pane S of 40
Section 14.10. Successor Statutes 31
Section 14.11. Anti-Discrimination Clause 31
ARTICLE XV AIRPORT INFLUENCE AREA 32
CERTIFICATION 32
MAINTENANCE MATRIX EXHIBIT A 33
NOTARY ACKNOWLEDGMENT 34
V
RESTATED DECLARATION OF CC&RS - FEBRUARY 2009

TABLE OF CONTENTS

DGC# 3003601757

RESTATED DECLARATION OF

COVENANTS, CONDITIONS, AND RESTRICTIONS OF

MAMMOTH CREEK HOMEOWNERS ASSOCIATION

THE BOARD OF DIRECTORS OF MAMMOTH CREEK HOMEOWNERS ASSOCIATION

WISHES THE PUBLIC TO BE AWARE THAT THIS RESTATED DECLARATION OF

COVENANTS, CONDITIONS, AND RESTRICTIONS AMENDS AND SUPERSEDES THE PRIOR DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS of MAMMOTH CREEK HOMEOWNERS ASSOCIATION recorded in 1976, in Book 201, Pages 304+, (except for the Condominium Plan that was attached as an Exhibit, which is still a viable instrument), and any Amendments or Modifications thereto recorded in the official records of Mono County.

The undersigned hereby certify that they are the President and Secretary, respectively, of MAMMOTH CREEK HOMEOWNERS ASSOCIATION and are authorized by the Board of Directors to execute this Restated Declaration.

The original Declaration created a condominium Development subdivision as described in Civil Code Section 1351 (f) which is subject to all provisions of the Davis-Stirling Common Interest Development Act found at Civil Code Section 1350 et seq , to be administered by the Association named above.

The property covered by this Restated Declaration includes all that real property located in the Town of Mammoth Lakes, Mono County, State of California, more particularly described as:

Lot 62 of Mammoth Creek Condominiums, Tract 36-73, in the County of Mono, State of California, as shown on a Map recorded in Book 8, Page 38-38J inclusive, of Subdivision Maps, Records of Mono County, California, and as shown on the Condominium Plan recorded May 20, 1976, in Book 201, Page 304 of the Official Records of Mono County.

WHEREAS, the Association has heretofore been incorporated under the laws of the State of California as a non-profit mutual benefit corporation, MAMMOTH CREEK HOMEOWNERS ASSOCIATION, for the purposes of exercising the functions hereinafter described; and,
WHEREAS, the membership has tendered the requisite approval to record the Restated Declaration of Covenants, Conditions, and Restrictions; NOW, THEREFORE, this Association and the Owners hereby establish these Restated Covenants, Conditions, and Restrictions for the benefit of the Owners of all Units and hereby declare that all of the Development described above shall be held, sold, and conveyed subject to the following easements, restrictions, covenants, and conditions, which are for the purpose of protecting the value and desirability thereof, and which shall (1) run with the land, (2) constitute equitable servitudes, (3) be binding on all parties having l

RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # ^009001757
Page fl of 46
any right, title or interest in the described properties or any part thereof, their heirs, successors, and assigns, and (4) mure to the benefit of each Owner of real property within the described Development

ARTICLE I

DEFINITIONS
Section 1.1 Architectural Committee" shall mean and refer to the Committee provided for in the Article V that reviews proposals for changes to the Units Section 1.2 "Articles of Incorporation" shall mean the Articles of Incorporation on file with the Secretary of State including any amendments and/or restatements Section 1.3 "Assessments" shall mean and refer to those assessments as described in Article IV
Section 1.4 "Association" shall mean and refer to MAMMOTH CREEK HOMEOWNERS ASSOCIATION, a California non-profit mutual benefit corporation organized for the purpose of managing the common interest development known as MAMMOTH CREEK.

Section 1.5 "Board" shall mean the Board of Directors of the Association, duly appointed and elected pursuant to this Restated Declaration (hereinafter referred to as "CC&Rs"), and the Amended Bylaws currently in effect
Section 1.6 "Common Area" shall mean and refer to the entire Project except the Units Undivided fractional interests in the Common Area shall be owned by the Owners of the Units as tenants in common, in equal shares, one for each Unit Common Area shall include all gas, water and waste pipes, all sewers, all conduits, wires and other utilities installations wherever located (except the outlets thereof when located within the Units), the Unit upon which the structures are located, and the airspace above the structures, all bearing walls (to the interior surface of studs), columns, floors, the roof, parking spaces, landscaping and recreational facilities All utilities other than water shall be supplied through individual Owners' meters
Section 1.7 "Common Expenses" means and includes the actual and estimated expenses of operating the property and any reasonable reserve determined by the Board and all sums designated Common Expenses by or pursuant to the Condominium documents
Section 1.8 "Common Interest" means the proportionate undivided interest in the Common Area that is included with each Unit as set forth in this Declaration Section 1.9 "Condominium" shall mean a Condominium as defined in Civil Code of California section 1351, and is an estate in real property consisting of (a) A separate fee simple interest in a Unit, and,
(b) A fractional undivided interest as a tenant in common in the Common Area Section 1.10 "Condominium Plan" shall mean and refer to the original Condominium Plan prepared and recorded in the official county records, and attached to the original Declaration referenced on page 1 Said Condominium Plan is incorporated into this Restated Declaration by reference
2 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # £009001757

Section 1.11. "Covered Property" shall mean and refer to all the real property described in Section 21 below and any additional real property which shall become subject to this Declaration.

Section 1.12. "Declaration" or "CC&Rs" shall mean and refer to Covenants, Conditions and Restrictions and all other provisions herein set forth in this entire document, as may from time to time be amended or restated.

Section 1.13. "Exclusive Use Common Area". Portions of the Common Areas referred to in the original Declaration as "Restricted Common Area" which are allocated for the exclusive use of the Owner of each Unit also constitute Exclusive Use Common Area. See Section 2.A.5. for further description of Exclusive Use Common Area.

Section 1.14. "Governing Documents" shall refer to any regulatory documents, including this Restated Declaration of Covenants, Conditions, and Restrictions; the Articles of Incorporation; the Amended Bylaws; all duly adopted Resolutions; and the Association Rules and Regulations currently in effect.

Section 1.15. "Maintenance" shall mean the exercise of reasonable care to keep buildings, driveways, landscaping and other related improvements and fixtures in a state similar to their original condition, normal wear and tear excepted.

Maintenance of landscaping also means the exercise of regular fertilizing, irrigation and other garden management practice necessary to reasonably promote healthy, weed-free environment for optimum plant growth.

Section 1.16 "Map" shall mean that certain subdivision map recorded in Book 8, Page 38, in the County of Mono, California.

Section 1.17 "Member" shall mean and refer to Owners of Units who are those persons entitled to membership as provided herein and in the Bylaws for the Association.

Section 1.18. "Mortgage" shall mean and include any Deed of Trust as well as a Mortgage in the conventional sense and the term "Mortgagee" shall mean and include a beneficiary under or holder of a Deed of Trust.

Section 1.19. "Owner" shall mean and refer to the record Owner, whether one or more persons or entities, of a fee simple title to any Unit which is part of the Properties, including contract purchasers, but excluding those having such interest merely as security for the performance of an obligation (such as a holder of a deed of trust).

Section 1.20. "Parking Space" shall mean that portion of the Common Area available for parking as shown on the original Condominium Plan.

Section 1.21. "Project" shall mean and refer to all of the Properties within the MAMMOTH CREEK development, including all structures and improvements thereon.

RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 3003001757

Section 1.22 Properties" shall mean and refer to that real property located in the Town of Mammoth Lakes, Mono County, State of California.

Section 1.23. "Restricted Common Area" as used herein and on the Map shall mean any portion of the Common Area, the exclusive use of which is restricted to a particular Unit.

Section 1.24. "Rules" shall refer to the Association Rules related to use of the properties and obligations of the parties that are adopted by the Board and distributed to Owners.

Section 1.25. "Storage Areas" shall mean those areas used for storage of Association maintenance materials.

Section 1.26. "Unit" (referred to as "Living Unit" in original documents) shall refer to the elements of each individual Condominium not owned in common with the Owners of other Condominiums in the Project. Each Unit is an individual dwelling which, combined with the exclusive or restricted use common area that is used only by residents of the Unit, may also be called a "Residence". Units are shown, defined and delineated on the recorded Condominium Plan referenced above. The boundaries of Units are described in Article II.

ARTICLE II

PROPERTY RIGHTS AND EASEMENTS/

RIGHTS OF ACCESS/OWNERS' ASSOCIATION
A. DIVISION OF PROPERTY
Section 2.A.1. Description of Property. All real property shown on the Map and described above is subject to this Restated Declaration.

Section 2.A.2. Division of Property. The property is divided into Common Area (including Restricted and Exclusive Use Common Areas), and Units combining to form "separate freehold estates" which each constitute a Condominium Each Unit Owner shall have an undivided interest in the Common Area, which interest shall be conveyed with the respective Unit.

Section 2.A.3. Elements of A Condominium/Unit. Ownership of each Condominium within the Project shall include ownership of a Unit plus an undivided interest in the Common Area as shown on the Condominium Plan referenced above. The Common Area interest cannot be severed from the ownership of the Unit.

The boundaries of each Unit are as described on the Condominium Plan. They generally consist of the following: the interior finished surfaces (exclusive of paint, paper, wax, tile, enamel, or other finishes) of the floors, ceilings, interior beams and columns, perimeter walls or lines as designated on the Plan, bearing walls, doors and doorframes of each Unit The Unit shall include the airspace encompassed by those boundaries, excluding all bearing walls and all walls containing any utility conduit to the unfinished surfaces of any such walls. The Unit shall also include the dry wall on the walls and ceiling, the radiant 4 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC# 2009001757

heating system within the ceiling, the wall heaters and water heaters serving the Unit. The Unit does not include the subflooring. The responsible party regarding maintenance of the Unit components is determined by Article VI relating to maintenance responsibilities.

Section 2.A.4. Common Area. The Common Area includes the entire Project, except the Units. Common Area includes, but is not limited to, the following elements: all facilities and improvements located within the Common Area including uncovered parking spaces, laundry facilities, buildings (not including Units) and airspace above the structures, landscaping and recreational facilities, walkways, parking areas, and all pipes, ducts, flues, chutes, conduits, wires and other utility installations to the source of shared service to the Units, and the bearing walls, columns and girders to their unfinished surfaces.

Each respective Condominium includes an undivided tenancy-in-common interest in the Common Area.

Section 2.A.5. Exclusive Use/Restricted Use Common Area/Exclusive Easement.

Portions of the Common Areas referred to in the original Declaration as "Restricted Common Area" are allocated for the exclusive use of the Owner of each Unit. Restricted Common Areas include the decks only.

Exclusive Use Common Area also includes internal and external wiring providing utility service to a single Unit and any flues, pipes, or wires connected to the wall and/or water heaters.

The responsibility for maintenance of Restricted Common Area and Exclusive Use Common area are defined in Article VI.

Section 2.A.6. No Separate Conveyance of Undivided Interest. The undivided interests in Common Area are hereby established, are to be conveyed with the respective Units as indicated above, and cannot be separately conveyed from the Units.

Section 2.A.7. Partition Prohibited. The Common Area shall remain undivided as set forth above. Except as provided by California Civil Code §1359, no Owner shall bring any action for partition, it being agreed that this restriction is necessary in order to preserve the collective rights of the Owners with respect to the operation and management of the Development.

B. PROPERTY RIGHTS AND EASEMENTS OF ENJOYMENT.

Section 2.B.1. Owners' Rights of Enjoyment and Easements. Every Owner shall have a right and non-exclusive easement of enjoyment in and to the Common Area (except Exclusive Use Common Area), which shall pass with the title to every Condominium, subject to the following provisions:
(a) The right of the Association to charge reasonable admission and other fees for use of the recreational facilities; limit the number of guests of Members; and implement rules, regulations, and penalties regarding use of the facilities.

RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC ft 20090017 :

(b) The right of the Association, after reasonable notice and an opportunity to be heard pursuant to Fair Hearing Procedures in Article XI of the Amended Bylaws, to impose any reasonable fines or penalties prescribed by the Board for violations of the governing documents and/or suspend the voting rights, membership rights, and/or rights to use the Common Area by an Owner, family, tenants, guests (1) for any period during which any Assessment against his/her Unit remains unpaid, and, (2) for any reasonable period of time in relation to any violation of the Declaration or the governing documents, or for any period during which such infraction continues
(c) The right of the Association to dedicate or transfer easements, or all or any part of the Common Area to any public agency, authority, or utility for the provision of important and/or necessary services, as further provided in the Amended Bylaws, Article VI (d) The right of the Association to impose any reasonable fines or penalties prescribed by the Board for violations of these CC&Rs upon following the procedures in Article XI, Fair Hearings, in the Amended Bylaws
Section 2.B.2. Parking Spaces The open parking space(s) are available for use on a first come-first served basis and are not assigned They are reserved for use for operable vehicles used for personal transportation and/or other vehicles used to transport residents and guests entitled to use of Units in Mammoth Creek
Section 2.B.3. Delegation of Use. If any Unit is leased or rented to tenants (which includes vacation rental guests and owner guests), the tenants or guests shall have the right to use the Common Area as it would be delegated by the Owner of the Unit The Owner is not entitled to use the Common Area when his or her Unit is being used by tenants, except to the extent needed to maintain his or her Unit Owner shall be responsible to take whatever steps are necessary to assure that his/her tenants and/or guests are familiar with the Governing Documents of the Association and comply with all of the Rules and Regulations of the Association The Board may adopt rules that require signed acknowledgement of the rules and regulations by tenants, to be obtained by Owner Owner shall inform tenant(s) of the Rules and Regulations of the Association Owners are responsible for tenants' and guests' compliance with the Association rules and regulations, and subject to remedies including disciplinary action for violations Delegated rights to use the Common Area are subject to suspension All disciplinary action requires a hearing to be offered to Owner regarding tenant's conduct Owner must keep Association informed of his or her contact information including telephone current email address if available, and complete mailing address including street address, city, state and zip code Section 2.B.4. Utility Access. Any telephone, electric, cable, or gas company representative rewiring any Units is authorized to enter any Unit or Common Area with approval of the Association and/or the Owner (if access to another Unit is required), when installation, maintenance, or removal of any utility service requires entry To obtain Association approval the request must be made to the designated representative of the Association (the managing agent) unless otherwise designated To gain neighbor approval, the Owner of the neighboring Unit should be contacted Approval shall not unreasonably be withheld
6 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # £009001757

C RIGHT OF ENTRY:

Section 2.C.1_ Right of Entry. Each Unit, including the enclosed and unenclosed portions and the Common Area (including Exclusive Use Common Areas) shall be subject to the right of the Association or its agents or contractors to enter for the purpose of inspection for and/or problems relating to maintenance, hazards, or conditions that may put other persons or Units at risk, or to enforce obligations or duties under this Declaration (whether the Association's or Owner's responsibility) Prior written notice to Owner(s) must be given at least 48 hours before entry is to occur, except when entry is necessitated by an emergency situation Each Owner must notify the Association of any maintenance problem or any hazardous or unsafe condition that exists in the Units or Common Area (including Exclusive Use Common Area), so that an inspection may be made by the Association's designated contractor or representative Each Owner shall be responsible for any costs the Association incurs because of refusal to report a problem, refusal to allow access, or inability to reach the Owner or a designated contact person in an emergency Section 2.C.2. Right of Inspection To Address Concerns. Recognizing that this is a community where some Units sit unoccupied for long periods, and the occupancy is often of a transient nature (meaning short term rentals are allowed), the Board shall have the right to arrange for inspection of Units on a periodic basis or on an immediate basis, depending on the circumstances Owners must comply to make Units available at all times in the event emergency entry is needed Concerns regarding health, safety and potential damage to the common area all provide good cause If any owner refuses to make the Unit available for inspection on such a basis, he or she may be considered liable for any damages that result from the inability to get inside the Unit to address situations that require attention
D. EASEMENTS
Section 2.D.1. Easements for Encroachment. Each Unit is declared to have an easement over all adjoining Units and the Common Area for the purpose of accommodating any encroachment due to engineering errors, errors in construction, settlement or shifting of the building or any other similar cause, including any encroachment due to building There shall be valid easements for the maintenance of said encroachments so long as they shall exist, and the rights and obligations of Owners shall not be altered in any way by said encroachment, settling or shifting Section 2.D.2. Association Easements. There are reserved to the Association and its duly authorized agents and to utility companies, local agencies, etc and representatives such easements as are necessary to perform the duties and obligations of the Association as set forth in this Declaration, or in the Bylaws, Articles, and Rules of the Association, or on the recorded Subdivision Map This includes the areas of easement for the plumbing, utility or drainage systems and any easements granted by the Board and/or shown on the Subdivision Map

RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 300900175 7

Section 2.D.3. Governmental Easements. There are reserved to the Government and its duly authorized agents, and utility companies, local agencies, etc. and representatives such easements as are necessary to perform the duties and obligations of the entities mentioned as set forth in this Declaration, or in the Bylaws, Articles, and Rules of the Association, or as shown on the recorded Subdivision Map.

Section 2.D.4. Easement for Owners Across Common Area: Each Owner has a nonexclusive easement of use, enjoyment, ingress, egress, and support in, to, and throughout Common Area, and to all improvements or facilities in the Common Area, subject to exclusive use of Exclusive Use Common Areas and Association authority as stated herein, in the Association Bylaws, and in Rules adopted by the Board limiting or controlling any such use, enjoyment, ingress, egress, or support. Each Owner may use the Common Area in accordance with the purposes for which it is intended without hindering the exercise of or encroaching upon the rights of any other Owners, and subject to rights, powers, and responsibilities of the Association in and to the Common Area.

E. OWNERS' ASSOCIATION: The Association is a homeowners' association charged with duties and empowered with the rights set forth herein and in the Association Amended Bylaws and any amendments thereto. The management of the Common Area shall be vested in the Association in accordance with its Amended Bylaws and this Restated Declaration.

ARTICLE III

MEMBERSHIP AND VOTING RIGHTS
Section 3.1. Membership. Membership is addressed in the Amended Bylaws.

Section 3.2. Voting of Members. Voting rights are addressed in the Amended Bylaws.

ARTICLE IV

COVENANT FOR ASSESSMENTS
Section 4.1. Creation of the Lien and Personal Obligation of Assessments. Each Owner of any Unit, by acceptance of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant and agree to pay to the Association: (1) Regular Assessments, (2) Special Assessments, (3) Reconstruction/Capital Improvement Assessments, (4) Reimbursement Assessments, and (5) Enforcement Assessments, all to be established and collected as hereinafter provided. All such Assessments, together with interest, costs, and reasonable attorney's fees, except for Enforcement Assessments, shall be a charge on the land and shall be a continuing lien upon the property against which each such Assessment is made and shall also be the personal obligation of the person(s) or entity who owned such property at the time when the Assessments fell due. If there are two or more Owners of any Unit, the Owners shall share liability for the assessments imposed on a joint and several basis.

Section 4.2. Purpose of Regular Assessments. The Regular Assessments levied by the Association shall be used for administration and management of the properties, maintenance of the Common Area, services as needed, other expenses of the Association 8 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # a0©9001757

incurred in carrying out its duties and obligations (called "Operating Expenses") and for fulfilling the responsibility of the Association with regard to maintenance, repairs and replacement of the major components that the Association is obligated to maintain, repair and replace (called " Reserves".)
No Owner shall be relieved of an Assessment or any part thereof by reason of his/her failure to use the Common Area.

Upon the sale or transfer of any Condominium by any Owner, the Owner's interest in the funds held by the Association shall terminate and shall be deemed automatically transferred to the successor-transferee of such Owner.

Section 4.3. Limits on Annual/Regular Assessments and Special Assessments.

Under California law, and as reasonably required by need, the Board may for any fiscal year increase the annual Regular Assessments up to twenty percent (20%) without a vote of the membership and/or impose Special Assessments which in the aggregate do not exceed five percent (5%) of the budgeted gross expenses for that fiscal year. For any increase or Assessment that exceeds these limitations, except an Emergency Assessment defined below, the Board must obtain the approval of a majority of a quorum of the Members. A "quorum" for this purpose (defined by Civil Code Section 1366) is more than half of the Members.

Section 4.4. Emergency Assessments. In the event the Board is required to make any expenditure, the necessity for which was not foreseen at the commencement of the fiscal year, or if the Board's original estimate of the annual assessment is inadequate and there are not sufficient funds available in the Operating Account, the Board may levy any additional assessment to cover the costs. The requirements of Notice to Owners, Open Board Meeting and findings found in Civil Code Section 1366 must be satisfied.

Section 4.5. Reconstruction/Capital Improvement Assessments. These are Special Assessments and subject to the same limitations as stated in Section 4.3 above, and as otherwise described and limited in this Restated Declaration and by California law.

Section 4.6. Reimbursement Assessment. The Board may impose a Reimbursement Assessment against any Unit and the Owner thereof for any and all costs and expenses, including reasonable attorney's fees incurred by the Association, needed to perform or enforce any responsibility or duty of such Owner under this Restated Declaration that the Owner fails to perform, in violation of the Governing Documents. Owner shall first be given notice of the obligation and a reasonable time in which to cure the deficiency or violation.

Any Reimbursement Assessment shall be payable within thirty (30) days after notice to the Owner or at a later date as may be specified by the Board.

Section 4.7. Enforcement Assessment ("Fine"). The Board may levy an Enforcement Assessment upon an Owner and his/her residence Unit by the Association for failure to comply with the Governing Documents, after notice and an opportunity for a hearing before the Board under Article XI of the Bylaws is offered to the Owner. The Board may establish reasonable Rules regarding repeated Assessments for continual or recurring violations and shall adopt and circulate a policy to the Owners setting forth fines to be charged.

These Assessments are not subject to collection through non-judicial foreclosure processes. All other remedies are available
9 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # E009001757

Section 4.8. Imposition of Assessments at Times Other Than With Budget Distribution. In the event the Board is required to make any expenditure during the year, the necessity for which was not foreseen at the commencement of the fiscal year, or if the Board's original estimate of the annual Assessment is inadequate and there are not sufficient funds available in the operating fund, the Board may levy an increase in Regular Assessments or impose a Special Assessment in amounts allowed by law (subject to the aggregate limits of the Civil Code Section 1366), with appropriate notice as required by law (not less than thirty (30) nor more than sixty (60) days before the due date of the Assessment).

Section 4.9. Notice and Rate of Assessment. Annual, Regular, and Special Assessments that are levied by the Board shall be allocated among each Condominium in pro rata shares as follows:

Each Owner of a Plan A Unit .015 - one bedroom units
Each Owner of Plan B, D & F Units .016 - one bedroom w/ loft and two bedroom units
Each Owner of Plan C, E & G Units .01825 - two bedrooms w/ loft units The proportionate shares of the separate Owners of the respective Units for all Reconstruction Assessments shall be a fraction, the numerator of which shall be the number of square feet of floor area in the Unit Owner's Unit, including second floor area computed from the dimensions of the floor area of the Unit as the same is shown on the Condominium Plan and the denominator of which shall be the number of square feet of floor area in the Units in the Project.

However there may be situations for Special Assessments which if approved by the Unit Owners would result in a Special Assessment being imposed that is equal for all owners.

An example is the replacement of exterior front doors or any other expense where the identifiable cost would be equal for each Unit.

Assessments may be collected on a monthly basis.

Reimbursement and Enforcements Assessments shall be levied upon the Unit Owner/Condominium on an individual basis, and shall be due and payable as specified by the Board.

Section 4.10. Association Bank Accounts. All Assessments collected by the Board shall be deposited in FDIC-insured accounts selected by the Board of Directors of the Association, which accounts shall be clearly designated as MAMMOTH CREEK HOMEOWNERS ASSOCIATION accounts. The Board shall have the control of said accounts and shall be responsible to the Owners for maintenance of accurate records thereof all the time. Funds may be withdrawn from any reserves account only upon written signature of two appropriately authorized members of the Board. The Board shall adopt a policy with regard to signatures for release of operations expenditures. 10 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC ft 2069001757

Section 4.11. Date of Commencement/Collection of Annual (Regular) and Special Assessments. The Board of Directors shall determine the amount of the Regular Assessment which will be imposed against each Unit for the following fiscal year and provide written notice to every Owner as required by law. The Notice shall go out to the Members with the Annual Budget, or at least within 30-90 days prior to the beginning of the Fiscal Year. The Board of Directors shall determine the amount of any Special Assessments which will be imposed against each Unit as they are approved (by the Board, and/or membership, as provided by law) and provide written notice to every Owner subject thereto not less than thirty (30) days in advance of the due date for the Special Assessment. The due date(s) and payment periods of Assessments shall be established by the Board of Directors.

Section 4.12. No Offsets. All assessments are due and payable in amounts within the time and specified by the Board. There shall be no offsets (withholding of assessments) permitted for any reason including, without limitation, any claim that the Association is not properly exercising its duties of maintenance or enforcement.

Section 4.13. Effect of Nonpayment of Assessments/Remedies of the Association. If any Assessments hereunder are not paid within fifteen (15) days after the due date, a late charge (pursuant to the legal limits of Civil Code Section1366) of up to ten dollars ($10.00) or ten percent (10%) of the delinquency, whichever is greater, may be imposed. No more than one late fee may be charged on any past due assessment. Interest may accrue and be charged on all sums (including Assessments, late fees and reasonable costs of collection) which are more than thirty (30) days overdue at the rate of up to twelve percent (12%) per annum, per Civil Code Section1366. The Board of Directors has discretion to set late fees and/or interest as limited herein by Board policy. In the event of a default payment of any Assessment and in addition to any other remedies herein or by law provided, the Association may enforce each such obligation as follows:
(a) By suit or suits at law to enforce each such Assessment obligation. Any request for judgment in any such action shall include a sum expended for attorney's fees and related collection costs. The Association shall have the special rights specified and afforded by Code of Civil Procedure Section 116.540 to proceed in Small Claims Court to collect delinquent assessments if the junsdictional limits do not preclude it. (b) By lien and nonjudicial foreclosure pursuant to and subject to the limits of Civil Code Sections 1367.1-1367.4, which at the time this Restated Declaration is approved, preclude filing a Notice of Default and commencing foreclosure proceedings before a delinquent account is at least $1800 behind in assessments, or at least one year delinquent.
(c) By lien and judicial foreclosure, under the jurisdiction of the Superior Court.

If there is a sale, a certificate of sale shall be executed and acknowledged by an authorized officer of the Association or by the person conducting the sale. A deed upon foreclosure shall be executed in like manner. For a period of 90 days after the sale, the I!

RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 200900175 7

Owner shall have the right to redeem the property (purchase it back) as set forth in the Code of Civil Procedure Section 729.035.

Section 4.14. Lien Notice Requirements. The Board shall adopt Association collection policies and circulate them to the membership as required and shall comply with the requirements of Civil Code Section 1367 and 1367.1 with regard to pre-lien communications, recording of liens and considering non-judicial foreclosure proceedings.

Section 4.15. Access to IDR (Internal Dispute Resolution (IDR), A Meeting to Discuss A Payment Plan, or Alternative Dispute Resolution (ADR). Assessment disputes are entitled to be submitted to ADR under some conditions, and at certain stages of assessment collection processes that involve foreclosure pursuant to the provisions of Civil Code Sections 1369.510 and following, and Civil Code Section 1367.5. At various stages an Owner is able to request ADR. There are other meeting options allowed as well, such as requesting a meeting regarding payment plans (Civil Code Section 1365.1), requesting a meeting with the board in processes known as "internal dispute resolution" or "meet and confer" (Civil Code Section 1363.810). Owner shall be apprised of these rights through required annual disclosures and through notice required prior to recording a lien and prior to recording a Notice of Default.

Section 4.16. Curing the Default. Within 21 days of a determination that a lien was recorded in error or upon the timely payment or other satisfaction of (a) all delinquent Assessments specified in the notice of claim of lien and allowable by law; (b) all other Assessments which have become due and payable with respect to the Unit as to which such notice of claim of lien was recorded; and (c) interest, late charges, attorney fees, and other costs pursuant to this Declaration and the notice of claim of lien which have accrued, the Officers of the Association or any other persons designated by the Board shall release or direct the release of the lien recorded in the office of the County Recorder.

Section 4.17. Authorized Charges for Transfer of Membership. Membership in the Association is transferred automatically upon transfer of the Unit upon which the membership is based. Upon a transfer of a membership to another, a reasonable charge shall be payable to the Association or its managing agent. Such charges shall include (1) actual cost of changing membership records, (2) copying costs for all required financial and other disclosures and (3) reasonable charges to produce other items (completion of disclosures and administrative time required for services required by or outside of the mandates of Civil Code Section 1368), subject to limitations specified in CC 1368. The Association shall, upon demand and for a reasonable charge, furnish a certificate signed by an officer or agent of the Association setting forth whether the Assessments on a specified Unit have been paid.

Section 4.18. Priority of Interests/Subordination of Lien of Association to Mortgages.

Any first Mortgagee (Lender holding a Deed of Trust) who comes into possession of a Unit pursuant to the remedies provided in the mortgage or upon foreclosure of the mortgage, shall take the Unit free of any claims for unpaid assessments or charges against the mortgaged Unit which accrue prior to the time such Mortgagee comes into possession of the Unit, provided, however, that said Mortgagee must pay assessments levied after taking 12 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 200900175 7

possession If California law changes to allow lien priority for associations such as this one, the law should control as to priority
Section 4.19. Property Tax Assessment. Property Tax Assessments, if any, shall be divided among the Owners according to each Owner's percentage interest in the Common Area

ARTICLE V

USES PROHIBITED AND PERMITTED
Section 5.1. Residential Use. All Units shall generally be used for residential purposes This does not serve to deny leasing of a Unit, but refers instead to the usual and customary use that qualifies under single family residential ordinances In addition to the separate interest Units owned by third parties, the common area includes one Unit that is reserved for the on-site manager and one business office, neither of which use is considered contrary to this residential use provision
Section 5.2. Leasing/Renting Units. Nothing herein shall prevent an Owner from leasing/renting his/her Condominium so long as the following provisions are satisfied (a) Any lease or rental agreement, long term - considered lease (30 days or more) or short term - considered rental (under 30 days) between an Owner and a tenant, or a tenant and a subtenant, shall provide that the tenant is in all respects subject to the provisions of these CC&Rs, Bylaws, the Articles and the Association Rules to the same extent as an Owner, and that any failure by the tenant to comply with such provision shall be a material default under the lease
(b) When an Owner leases his/her Unit, or places the Unit under property management, the Owner shall immediately provide the Secretary of the Association, or its management agent, the following, in writing
(i) The names of all tenants,
(u) The number of all persons who reside in the Unit,
(in) The current address including street address, city, state and zip code, the current email address, and telephone number of the Owner, and (if there is one) the Owner's legally designated agent or the name of property management contact person, and
(iv) A statement indicating that the tenant has been given a copy of the Restated Declaration, the Bylaws and the Association Rules and that the tenant has been advised of the responsibility to abide by these documents, and, if required by the Board, a signed acknowledgement of receipt by tenants
(v) The Board may request a copy of the lease, which may be redacted as to any personal information that could lead to identity theft, or information indicating the lease amount
13 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 300900175 7

(d) In no event shall any lease release or relieve an Owner from the obligation to pay all Assessments that are due to the Association, and any fines or costs imposed pursuant to Article IV herein, regardless of whether the obligation to pay Assessments and/or fines has been delegated to the tenant by Owner Section 5.3. Timeshares. No Unit or any part of the Project may be converted into, sold or used as a time-share project, time-share estate, or time-share use, as defined in California Business and Professions Code Section 11003 5, provided, however, that nothing contained herein shall be deemed to prohibit several persons holding title to any Unit or Units as tenants-in-common, joint tenants, or in undivided interests, joint or recurrent use of any Unit by its Owners, or the recurrent rental of any Unit Section 5.4. Business and Commercial Use Prohibited. No Unit shall be used or allowed or authorized in any way directly or indirectly for any business, commercial, civil, manufacturing, mercantile, storing, vending, or other such nonresidential purposes except for home offices or occupations without any external evidence of said office or occupation External evidence includes but is not limited to extra vehicles, foot traffic, signs, employees on site, excessive deliveries, and visible signs of business or excessive noise No Unit may be used for any business activity that is not permitted by the Town of Mammoth Lakes or Mono County Likewise, approval by the County or Town does not guarantee a permitted home business in the Association The above-stated restrictions shall be enforced Excepted from this provision is the business office of the Association, and the manager's Unit
Section 5.5. Nuisances. No noisy, hazardous, noxious, unlawful or offensive activity or excessively loud music or noise shall be carried on upon any Unit or portion of the properties, nor shall anything be done or kept thereon which may be or may become an annoyance or nuisance to the neighborhood, or which shall in any way interfere with the quiet enjoyment of each of the Owners of his respective Unit The Board may adopt specific rules that are intended to protect the quiet enjoyment of the Community and to prevent specific nuisances
Section 5.6. Hazards. No Owner shall permit or allow anything to be done or kept in his/her Unit or any portion of the Development which will increase the rate of the Association's insurance thereon, or result in its cancellation, or create an unreasonable threat to or unsafe condition for other residents
Section 5.7. Animals. Owners are allowed two (2) standard household pets This limit does not apply to fish in aquariums The Board may adopt rules relating to pet size, and prohibitions on dangerous breeds of dogs (using the lists provided by some insurance companies indicating those breeds of dogs that are uninsurable as a guide) In addition, the Board may order any pet that, in the Board's view constitutes a serious nuisance to other residents, or is threatening or obnoxious in its behavior, to be removed from the development, and furthermore may impose upon the Owner of the Unit with which the animal is associated disciplinary action including, but not limited to, fines, reimbursement assessments and any other remedies allowed by this Restated Declaration or by California 14 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC 8 8009001757

law Any determination of conduct justifying removal or other disciplinary action is within the discretion of the Board
All pets must be kept on a leash or carried in an enclosed pet earner at all times when outside of the Unit Owners and residents are required to immediately clean up any waste of their pet(s) All pets belonging to Unit Owners, tenants, occupants, guests, or their licensees or invitees within the property must be kept within their Unit, No animals or pets may be kept on any deck or porch
The Board may adopt and enforce other rules, regulations, and penalties regarding the keeping of pets and may incorporate any language from existing applicable ordinances of the Town or County regarding pets Reimbursement Assessments or Enforcements Assessments may be levied for violations of and carrying out the violations of this provision Court action may be imposed if, within the Board's discretion, it is prudent Section 5.8. Vehicles. Parking, and Parking Rules. All vehicles parked or left on the property shall be subject to this Restated Declaration and shall be parked in Common Area parking areas All owners, guests, or renters vehicles are required to have a current parking permit visible from outside the vehicle at all times while parked on the property There shall be no exposed storage deposited, accumulated or preserved anywhere on the property The Board has authority to adopt reasonable rules and regulations regarding parking in the Development The Board may adopt and enforce penalties (including fines and/or removal of vehicles) for violation of the rules
All parking spaces are intended only for the use of operable passenger automobiles, standard sized pickup trucks or vans, authorized (meaning approved by the Board or management, as authorized by the Board) tour buses, and motorcycles No trailer, camper, mobile home, commercial vehicle, truck (other than standard size pickup truck or van), inoperable automobile, boat or similar equipment, shall be permitted to remain upon any area within the premises other than temporarily, to load or unload, or to provide reasonable services to residents "Inoperable" means unregistered, dilapidated, not running, missing important parts that would tend to make the automobile run (like an engine, battery, tires, etc )
No automobile repairs shall be allowed within the Development except emergency measures to get the vehicle started and operable such as jumping a dead battery, changing a tire, or a similar minor repair
The only exceptions to the provisions as stated herein is that boats, motor homes, or other recreational vehicles or vehicles otherwise prohibited herein that are brought for temporary use by occupants may be parked in the development temporarily so long as written authority is provided by the Association manager and a parking permit is displayed Section 5.9 Signs/Flags/Banners. No sign or flag of any kind shall be displayed to the public view on or from any Unit or in the Common Area without prior written consent of the Board, except those allowed by law, which include (1) noncommercial signs allowed by Civil Code Section 1353 6, (2) display of the U S Flag (by methods of display allowed by 15 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 0009081757

Association rules which shall comply with California Civil Code Section 1353.5, and any Federal laws, (3) any sign required by legal proceedings, and (4) a real estate sign advertising the Unit for sale or lease, to be placed in a window in the Unit or, to the extent an area is made available, on any board or display area provided by the Association in the Common Area.

Size and placement of real estate signs is also subject to Board policy and state law. One sign of reasonable dimensions may be placed in a window of a condominium for sale or lease,
The Association may maintain and display such signs identifying the Units as the Board may deem appropriate. Any such signs shall be attractive and compatible with the design of the Project and shall comply with any applicable Town ordinances.

Section 5.10. Antennas, Satellite Dishes and/or Fixtures. Condominiums are not required by FCC Rule 207 to allow satellite dishes or antennas on the roofs or Common Area eaves or walls. The Board may restrict or prohibit satellite dishes and antennas from being installed on the exterior of the Units or the roof, and may require reasonable screening consistent with aesthetics in the development for any deck-free-standing unit.

No dish or antenna may be attached to any building, exterior walls, eaves or roof of a building. Any installation that is determined by the Board to be unsafe or hazardous and/or that extends beyond the boundaries of an exclusive use deck may be ordered removed or moved to another location. Liability for the presence of any related item rests with the Owner of the subject Unit.

Section 5.11. Decks and Storage. Each resident shall at all times keep his deck, porch, and area under the stairs, free of clutter and debris. These areas may not be used for storage except that bicycles and outdoor patio furniture of the type that is made for deck use may be kept and/or used in those areas. Hanging clothes, towels, or any other items on the railings and/or storage of any unusual items including storage of exercise equipment on a deck is strictly prohibited. No planters may be placed on decks or deck ledges. Installation of umbrellas or wind/sun shades or any similar items are subject to Board approval or published standards. Nothing may be attached to any building, fence, or railing without approval of the Architectural Committee or the Board. Firewood may be kept on decks, limited to one cord or less.

Section 5.12. Use of Sidewalks and Walkways. Common area walkways, sidewalks, front porches and stairways are to be utilized for ingress and egress from buildings and resident Units. They shall not be obstructed in any manner, i.e., there shall be no storage of planters, toys, bicycles, litter or similar items. There shall be no loitering, bike riding, skateboarding, or rollerblading in these areas. Riding or use of any wheeled vehicles other than wheelchairs present an obvious danger to pedestrians and is strictly prohibited.

Section 5.13. Trash and Garbage. All trash or garbage shall be placed inside of trash dumpsters and containers provided by the Association
16 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC ft 200960175 7

No portion of any Unit or exterior of a Unit may be used for the storage of building materials or other materials other than Board-approved temporary storage in connection with Architectural Control approved construction.

Section 5.14. Barbecues or Outdoor Cookers. All outdoor barbecues and/or cookers must be of the small capacity propane burning type commonly used on decks, and must not be of the wood burning or other combustion type. No charcoal burning or similar burning cooking devices are allowed on the decks, front porches, or stairs..

Section 5.15. Fences and Screens. No fences, awnings, ornamental screens, screen doors, sunshades or walls of any nature shall be erected or maintained on or around any portion of the Development except those that are installed in accordance with the original construction, replacement thereof, or those items that are authorized and approved by the Board or the Architectural Committee. See Article VII.

Section 5.16. Outside Laundering and Drying. There shall be no exterior drying or laundering of clothes on decks or other outside areas that would be visible from streets, the Common Area or other Units.

Section 5.17. Common Area Trees. No Owner may cut, trim, prune, remove, replace or otherwise alter or affect the appearance or location of any living tree, plant or other vegetation located in any portion of the Common Area without the prior written consent of the Association. Should any Owner fail to comply with the restriction imposed by this provision, the Association may recover from such Owner the cost of restoring or replacing any such vegetation. No person shall plant a tree in any location unless written approval including the maintenance responsibilities is given by the Board.

ARTICLE VI

MAINTENANCE/REPAIR OBLIGATIONS
[See Maintenance Matrix Attached As EXHIBIT A For Easy Reference] Section 6.1. Association's Obligations and Responsibilities. (a) Common Area. The Association shall maintain all of the Common Area described in Article II above, unless otherwise specified here or elsewhere in this Restated Declaration.
(b) Condominium Buildings/Structures. The Association shall maintain the condominium buildings including, but not limited to performing building repairs (except for the Owners1 obligations as set forth in Section 6.2 below); and shall be responsible for the maintenance, replacement and repair of the structural aspects of the buildings including the decks and the Association shall perform, exterior painting and related tasks (such as caulking and trim) of the buildings; shall maintain, repair, and replace roofs; and shall repair, replace, and maintain parking areas, all as determined necessary and/or prudent within the discretion of the Board.
17 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC Ht 200900175 7

(c) Windows and Poors/Window and Door Locks and Hardware. The Association is responsible for the maintenance, repair, and replacement of all windows and exterior doors and all window and exterior door locks and hardware, including the sliding glass doors leading to the decks See 6.2 (g) for painting responsibilities. (d) Landscaping. The Association shall maintain all landscaping including trees located in the Common Area Owners/Residents may not install any landscaping in any of the Common Area unless a specific written agreement approving a plan and description of the area and providing some safeguards (such as requirements to protect the aesthetics and Association's right to remove if not maintained to Boards' standards) is approved by the Board.
(e) Fences. The Association shall maintain, repair, and replace all fenceSi (f) Other.
(1) The electrical wires leaving from the box serving a particular Unit outward to common electrical systems are the Association's responsibility, except to the extent a third party (like the current utility provider SCE) provides the maintenance.
(2) Exterior repairs required because of termites, pests, other organisms and dry rot are the Association's responsibility; however, if the cause is outside the Association's control and within an individual Owner's Control (such as damage to decks or porches by occupants), the repairs are the Owner's responsibility.

Section 6.2. Unit Owner's Responsibilities and Obligations. All Owner's repair and maintenance responsibilities and obligations shall be in conformance with the Association's architectural standards and applicable codes. Except for those portions of the property which the Association is required to maintain and repair as set forth in Section

6.1 above, each Owner shall be responsible at his or her sole cost and expense for the cleaning, maintenance, repair, and replacement in his or her Unit and Exclusive Use Areas including the following:
(a) Interior of Unit. Each Unit Owner shall maintain their Unit in a clean, sanitary and attractive condition. Each Condominium Owner shall have the exclusive right at his/her sole cost and expense to paint, repaint, tile, wax, paper or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors, windows and doors serving as a boundary to his/her own Unit and the surfaces of bearing walls and partitions within his/her Unit, and to, at his/her sole cost and expense, substitute new finished interior surfaces in place of those existing on the walls, floors, partitions or ceilings. No hard surface flooring that increases noise transmission may be installed inside a second floor Unit unless the flooring and the underlayment/soundproofing is approved under Article VII. (b) Exclusive Use Areas and Restricted Use Common Areas Associated With A Unit. Each Unit Owner shall maintain all "exclusive use areas" associated with his or her 18 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DQC# H00900175 7

Unit including front porches, area under exterior stairs, and/or decks in a clean, sanitary and attractive condition
(c) Water Pipes/Conduits/Cables Each Owner is responsible to assure all pipes, water connections and drains, wires, conduits, cables, etc , that are located within the Unit are appropriately maintained
In addition, each radiant heating system located in the ceiling of a Unit is the responsibility of the Unit owner, even though it may be argued that it is located in Common Area To the extent removal of any part of the ceiling is required to service the system, the owner shall be responsible to have the ceiling replaced, repaired and painted, if so directed by the Board
(d) Water Damage. If water damage to a Unit is caused by common area leaks including pipes, defective windows, the roof, or chimneys, the Association shall be responsible for repair of the Common Area and damage to the Unit Any leaks in a Unit that are not reported immediately upon discovery subject the Owner of the Unit where the leak originated to possible liability for any costs that could have been avoided by responsible reporting
Owners are responsible for repairing damages to their Units and personal property from any leaking pipes in the Unit or any other source within the Unit Any Owner whose Unit is damaged by leaking pipes in another Unit may seek recovery for the costs of repair from the Owner of that Unit (where the leak originated) Each Owner must procure insurance as set forth in Article VIII, Section 8 7, which would be in the form of an HO-6 or other appropriate condominium coverage (e) Appliances and Fixtures. Owners have the exclusive right and responsibility to maintain, repair, finish, alter, substitute, add, or remove any appliances and fixtures attached to the ceilings, floors, and walls of their Units, so long as the act of doing so does not adversely affect the Common Area or an adjacent Unit (f) Plumbing Facilities/Utilities Installations. Including as noted above, each Owner is responsible for maintaining, repairing, and replacing as needed all fixtures, appliances, showers, bathtubs, sinks, and toilets, and all wiring and utilities installations within the Unit to the outward point where the system provides exclusive service to the Unit Likewise, said Owner is responsible for all damages caused by misuse or failure to maintain the plumbing facilities or utility systems properly,
Modification, replacement, or repair of any wall containing electrical conduit or plumbing or any wiring or plumbing systems that connect to systems serving other Units and/or the Common Area requires architectural approval under Article VII Each Owner is responsible for all telephone lines, computer cabling, and TV cable access as needed but must receive 19 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 200900175 7
Page H6 of 40
written approval for any changes in current systems or additions or modifications that could in any way affect another's systems or the Common Area.

Common electrical lines and plumbing facilities and lines that serve more than one Unit and that exist outside a Unit are the Association's responsibility to repair and replace.

However, if any Unit Owner or his guest causes damage to these systems, this Owner of the Unit may be held responsible for the costs of repair and/or replacement in the form of a Reimbursement Assessment properly imposed under Article IV. (g) Windows and Doors. The Owner shall be responsible for interior painting of doors and windows, as needed, and the Association shall be responsible for the exterior painting of windows and doors, as needed.
(h) Leaks from Vehicles. Each Owner is responsible for the clean up of any fluids leaked or spilled from vehicles that are on premises because of residents of the Unit. (i) Water Heaters. Each Owner is responsible for maintaining, repairing and replacing water heaters serving his or her individual Unit.

Section 6.3. Board Discretion to Order Maintenance by Owner. The Board shall have the absolute discretion to determine whether any maintenance, repair, or replacement which is the responsibility of an Owner is necessary to preserve the appearance and value of the property or any portion thereof and may notify an Owner of the work the Board deems necessary. To the extent there is no immediate need or emergency involved, the Board shall give written notice to the Owner, stating with particularity the work of maintenance or repair which the Board finds to be required, and requesting that the same be carried out within a period of thirty (30) days from the giving of such notice. If the Owner fails to carry out the maintenance or repair within the period specified by the notice, the Board may cause the work to be done and if so, shall, after holding a hearing and giving the Owner an opportunity to respond, consider assessing the cost thereof to the Owner, pursuant to the provision for Reimbursement Assessments in Article IV. The Board can make emergency repairs to avoid further damage from occurring without said notice, if the owner does not immediately respond.

Section 6.4. Liability of Owner for Damages. Owners of Units are responsible for damage caused by themselves, their family members, or their tenants, invitees, or guests.

In the event the need for any maintenance, repair, or replacement is caused by the willful or negligent act or omission of an Owner or an Owner's family, tenants, contract purchaser, guests, invitees, or pets, the cost of such maintenance, repair, and replacement, including the cost of materials, labor, supplies and services shall be charged to, and paid by, such Owner in the form of a Reimbursement Assessment A notice of hearing shall be given under Article IX of the Amended Bylaws. Damage including vandalism to the Common Area by identified parties shall be assessed or prosecuted by any action deemed appropriate by the Board. Any such action could include charges against the Owner of the Unit where the parties can be identified as residents or guests of residents or a particular Unit Owner or resident An example of such damage for which an 20 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOCS 2009001757
Page a? of 46
Owner would be subject to an assessment is placement of unprotected flower pots or heavy items that cause damage to a deck

ARTICLE VII

ARCHITECTURAL CONTROL
Section 7.1. Overall Standard of Architecture and Maintenance. The Board shall maintain the same general architectural appearance and minimum level of maintenance that was in place in 2008, and shall not change it without approval of a majority of the members The Association shall maintain records that illustrate these standards for future Boards
Section 7.2. Review Process. The Board may appoint up to three (3) Members to serve as or act as the Architectural Committee, or serve as the Committee, (hereinafter called AC) for purposes of architectural review and approval processes The following items are subject to AC approval
(a) Any rearrangement or construction that would affect, or cause a change in a Unit that involves any item of construction, rewiring, or replumbmg that would touch, concern, or alter the roof or roofing system, any neighboring Unit or any common walls or common systems, or that would affect the supporting members or the structures, (b) Any exterior addition including but not limited to an antenna, satellite dish, pole, standard, patio cover, or tower, or installation of any patio shade, or other item/structure that is attached to or within the patio fence or attached to the building, (c) Any modification of floors or other surfaces that could increase noise transmission such as alteration from carpet or linoleum to hardwood, hard tile, or hard surface flooring in an upper Unit (Owner must present a plan to the Board that includes adequate soundproofing materials which might include a layer of cork or other sufficient insulating underlayment)
The Board shall adopt a policy for architectural review that is consistent with Civil Code Section 1378, providing for fair and reasonable procedures, and timely response to architectural applications, and providing for reconsideration of any decisions made by an Architectural Committee that does not consist of the entire Board, upon Owner request No construction or installation work may be done with regard to the application until written approval is received from the AC, Board, or management, as authorized by the Board Section 7.3, Form of Approval. All recommendations for approval or disapproval shall be given in writing, to the Board and are subject to Board approval or disapproval The Association shall make all possible efforts to review applications for improvements within forty-five (45) days from the date received by the Architectural Committee or Board, and respond, including requests for further information
Section 7.4. Reconsideration. If there is an AC separate from the Board that has made recommendations, any Owner who has an application denied shall be entitled to seek reconsideration by the Board if the request is made within 30 days of the date the written 21 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 200300175 7

denial or approval with conditions is sent to the Owner. The Board shall consider the matter at the next Board meeting scheduled after the request is made, or at a special Board meeting that is an open meeting, scheduled for the purpose of reconsidering the application.

Section 7.5. Town or County Approval. Any approval given by the Association is conditional upon Owner's receipt of Town (or municipal) and County permits that are required. Obtaining of permits does not eliminate the necessity of AC or Board approval.

Section 7.6. Mechanic's Liens. In the event a mechanic's lien is recorded against the Common Area or any Unit other than that to which the lien should attach, the Owner of the Unit that is the subject of the work shall forthwith, upon notice by the Association, cause the lien to be released. This may be accomplished either by payment of the sums due or by procuring a bond that will allow for release of the lien. If the Owner fails to clear the lien as stated within 5 days of notice thereof, the Board may expend sums necessary to release the lien and/or procure an appropriate bond. The Owner of the Unit where the work was performed shall be subject to a Reimbursement Assessment to cover all costs incurred by the Association including the amount of the lien, interest from the date of the lien at the legal rate, document recording fees, and all legal costs and fees required to secure release of the lien.

Section 7.7. Liability. Neither the Architectural Committee nor any Member of it shall be liable to the Association or to the Owner for any damage, loss or prejudice suffered or claimed on account of the approval or disapproval of any plans, drawings, or specifications. Plans and specifications are not approved for adequacy of engineering or structural design. Neither the Committee nor the Association nor the Board Members shall be liable for any damage in any structure constructed pursuant to the specifications.

ARTICLE VIM

INSURANCE
Section 8.1. Types. The Association Board shall obtain and maintain in effect the insurance coverage described below. In procuring policies, the Board has the authority to enter into insurance pools (groups that insure together, such as a pool established for a manager's portfolio or one or more associations joining together to purchase as a group) to the extent that the Board determines there would be beneficial effect from doing so, either in a cost savings or otherwise.

The Board shall fulfill the following obligations and mandates. (a) Commercial General Liability: Obtain a comprehensive (combined single limit) public liability insurance policy insuring the Association and the Owners against any liability for property damage and bodily injury including personal injury incident to the ownership or use of the Common Area, including, if obtainable, a cross-liability endorsement insuring each insured against liability to each other insured. The limit of the liability insurance coverage shall be not less than two million dollars ($2,000,000.00) per occurrence, affording the Owners the protections in Civil Code Section 1365.9. 22 RESTATED DECLARATION
OF CCSRS - FEBRUARY 2009

DOC # S0090Q17 .

(b) Property/Hazard Obtain a master or blanket policy to cover fire and other hazards and perils commonly insured by such a master policy for the full insurable replacement value (excepting the deductible) of the buildings and Common Area improvements and facilities Betterments and upgrades made by Owners to the individual Units are the responsibility of individual Owners The master policy shall provide at the least coverage to build back the Units to original construction, taking into account required ordinance upgrades, in the event of destruction of a Unit or Units by a covered peril See Section 8 7 for Owner's obligations to insure The Board shall have the authority to choose the deductible which best suits the Association's position in the current insurance marketplace Owners shall be notified at the earliest possible opportunity of any decrease in the Association's coverage, and annually of the coverage carried by the Association for liability, property damage, fire, casualty, etc, as set forth more fully in the Amended Bylaws and required by Civil Code Section 1365(e)
(c) Worker's Compensation Obtain Workmen's Compensation Insurance to the extent the Board deems it prudent or necessary to comply with all applicable laws of the State of California or the regulations of any governmental body or authority having jurisdiction over the Development
(d) Fidelity Bond Upon approval of a majority of the Board, obtain fidelity coverage against dishonest acts on the part of the Directors, officers, employees, or volunteers who handle or who are responsible for handling the funds of the Association The fidelity bonds shall name the Association as obligee and shall be written in an amount determined to be sufficient per the Board's discretion The managing agent, if any, shall provide a similar fidelity bond if required by the Board
(e) Officers and Directors Obtain Officers and Directors liability insurance (commonly called D&O insurance) in an amount determined to be sufficient, within the Board's discretion, but in no event less than one million dollars ($1,000,000 00) in coverage Section 8.2. Other Insurance (Earthquake/Flood/Etc.). The Board shall purchase any insurance required by this Declaration or determined prudent The Board may purchase a blanket policy of earthquake insurance if deemed prudent The Board shall purchase flood insurance to the extent it is legally required by flood zone maps If flood zone designation maps change and flood insurance is no longer legally required, the Board shall have discretion to make the decision regarding purchase of the flood insurance, and shall have discretion to purchase any other and other insurance as it deems necessary and/or prudent, including (but not limited to) building ordinance upgrade insurance and demolition insurance
Section 8.3. Premiums, Proceeds and Settlement. Insurance premiums for any blanket insurance coverage obtained by the Association and any other insurance carried by the Association shall be a common expense to be included in the Regular Assessments levied by the Association Casualty insurance proceeds shall be used by the Association for the repair or replacement of the property for which the insurance was carried, or otherwise disposed of as provided in the Article IX hereof entitled "DAMAGE OR DESTRUCTION OF 23 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC# E089001757

BUILDINGS, CONDEMNATION " The Association is hereby granted the authority to negotiate loss settlements with the appropriate insurance carriers Any two (2) Directors of the Association may sign a loss claim-form and release in connection with the settlement of a loss claim, and such signatures shall be binding on the Association and the Members Section 8.4. Annual Insurance Review. The Board shall annually determine whether the amounts and types of insurance it has obtained provide adequate coverage for the Development in light of increased construction costs, inflation practice in the area in which the Development is located, or any other factor which tends to indicate that either additional insurance policies or increased coverage under existing policies is necessary or desirable to protect the interests of the Owners, the Mortgagees, and the Association If the Board determines that increased coverage is necessary or desirable (since it is not covered by the Association's policy), it shall obtain the same Section 8.5. Policy Limits-Duration. Each policy shall provide that it shall not be canceled without at least thirty (30) days' prior written notice to the Association and to each of the Unit Owners Each policy may be for a period not to exceed three (3) years provided that the policy permits short-rate cancellation by the insured Section 8.6. Trustee. Except as provided otherwise all insurance proceeds here and in Article IX shall be paid to the Association as a trustee The trustee shall hold, distribute, and expend such proceeds for the benefit of the Owners, Mortgagees, and others as his/her respective interests shall appear, pursuant to the provisions of the this Restated Declaration
Section 8.7. Owner's Insurance Requirements. Each Owner shall obtain and pay for such insurance coverage that provides liability coverage for accidents or incidents that occur in their separate interest Unit and exclusively used areas and covering damage to personal property or contents kept in the Unit In the absence of insurance coverage, the Owner is considered responsible for these losses In addition, each Owner is responsible for procuring coverage to insure his/her upgrades and betterments, and loss assessment coverage sufficient to pay for any loss assessment, and for extra building coverage needed to pay for repairs to the Unit that are not covered by the Association's policies of insurance to the extent available Owners should consult with knowledgeable insurance agents familiar with HO-6 and/or landlord policies (for those renting their Units to others) and work with them to achieve coverage that is compatible with that carried by the Association and to avoid gaps in coverage The Association has no obligation to monitor or assure individual compliance with these requirements Owners who fail to so insure may not expect the Association to pay for the protection offered by said policies or to cover damages that could otherwise have been insured by the Owner Owners should carefully review all communications from the Board relating to coverage, so that if Association coverage changes, the Owner can adjust his or her individual coverage to fill in any gaps that would expose the Owner to losses that could otherwise be covered Section 8.8. Inability to Obtain Insurance. If the insurance required for the Association or Owners by the Governing Documents is difficult or impossible to obtain, the Association 24 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC ft 200900175 7

and Owners shall obtain insurance as nearly equivalent to the required insurance as is reasonably available.

Section 8.9. Deductibles. Unless otherwise stated, if a resident or guest of a Unit or a service provider doing work on behalf of either causes an incident leading to an insurance claim, the Owner of that Unit shall be responsible for any deductible required for an insured loss. With respect to all other claims, the Owners of all Units affected share responsibility equally for the deductible.

ARTICLE IX
DAMAGE OR DESTRUCTION OF BUILDING. CONDEMNATION
Section 9.1. Damage to a Single Unit. If the building is damaged by fire or other casualty and the damage is limited to a single Unit, all insurance proceeds from covered events shall be used to rebuild the Unit in accordance with the original plan and specifications, and, to the extent of the Association's coverage, pursuant to any plans approved by the Board. In the event the damage is caused by negligence of the Owner or any resident or guest of that Unit, the Board may seek compensation from the Owner of the Unit for any portions of the loss that are not covered by the Association's insurance policy.

Section 9.2. Damage to other than a Single Unit. If such damage extends to two or more Units or extends to any part of the Common Area:
(a) If the amount available from insurance proceeds and reserve funds for damaged components and any other sources according to established fault is at least eighty-five percent (85%) of the cost of repairing or rebuilding the damaged property to its original design and specifications (and with upgrades if and to the extent covered by the Association's insurance policy), the insurance proceeds paid to the Association shall be used by the Board to contract to repair or rebuild the damaged portions of the Project, including all Units and the Common Area so damaged. In the event the insurance proceeds are insufficient to pay this percentage of the costs of repairing and/or rebuilding, then, subject to Article IV, hereof, the Board shall be authorized to levy a Special Assessment or an Emergency Assessment on all Units on a pro rata basis based on the schedule of Assessment allocation shown on Exhibit A, to cover any shortfall. The Board may investigate the possibility of a loan to cover any shortfall or repair, as set forth in the Amended Bylaws.
(b) In the event that the amount available from such insurance proceeds plus reserve funds and from other sources according to established fault is less than eighty-five percent (85%) of the cost repairing or rebuilding, then such insurance proceeds shall be deposited in a bank, savings and loan association, or trust company designated by the Board to be held for the benefit of all Unit Owners and their Mortgagees, as their respective interests shall appear. The Board shall obtain bids from responsible contractors to restore the Project, including all damaged Units and all damaged Common Area, to its condition immediately prior to such damage or destruction and shall, as soon as possible, call a special meeting of the Association Members to consider such bids. At such special meeting, the Members shall be allowed to vote to accept or reject the bid or bids offered by 25 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 30030017 :

the Board for a vote. Majority approval {at one vote per condominium) is required for acceptance of any bid.
(c) In the event a bid is accepted, the Board shall levy a Special or Emergency {if warranted) Assessment against all Unit Owners pursuant to Article IV to make up the deficiency between the total insurance proceeds coupled with any and all reserve funds set aside to replace the damaged components and the contract price for such repair or rebuilding. The Board may investigate the possibility of a loan to cover any shortfall or repair, as set forth in the Amended Bylaws. All insurance proceeds, including any proceeds subject to liens of Mortgagees shall be used for such rebuilding or repair. If any bid shall be accepted to repair or rebuild, the contractor shall provide a completion bond naming the Association and each Unit Owner as beneficiaries. (d) In the event any or all bids are rejected by more than fifty percent (50%) of the Owners, the Board shall recommend alternative reconstruction of the damaged or destroyed improvements at a lesser cost as it deems reasonable or adequate, which alternatives shall be placed to bid and voted upon as previously provided. Notice of same shall be provided to Eligible Mortgage Holders of any "alternative reconstruction" plan. In the event that no such alternatives are accepted by the Unit Owners as provided in Article X, the Board is hereby empowered, as the agent for all Unit Owners, to sell the entire Project, or any portion of it, including Units and the Common Area in its then present condition, on terms satisfactory to the Board.
(e) In the event no rebuilding alternatives are accepted by the members, which would lead to the necessity of sale of the damaged Units and the Common Area, as indicated, the Board is authorized to take reasonable measures to clear the land, prepare the subject property for sale, sell it for fair market value to the highest bidder, and distribute proceeds from such sale, as well as insurance proceeds, and remaining funds held by the Association for the benefit of the subject Units. All such proceeds shall be distributed by the Association among Unit Owners and their respective Mortgagees, as their interests appear.

ARTICLE X

RIGHTS OF MORTGAGEES (LENDERS)
Section 10.1. Conflict. Notwithstanding any contrary provision contained elsewhere in this Declaration, in the Amended Bylaws, Articles or Rules, the provisions of this Article shall control with respect to the rights and obligations of Mortgagees specified herein.

Section 10.2. Notices to Eligible Holders. An Eligible Mortgagee who has requested notice is entitled to timely written notice of:
(a) Any condemnation loss or casualty loss which affects either a material portion of the Project or the Condominium on which the Eligible Holder holds a First Mortgage; 26 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 286900175 7

(b) Any delinquency in the payment of assessments or charges owed by the Owner of a Condominium which is subject to a First Mortgage held by the Eligible Holder if the delinquency is not cured within sixty (60) days after its due date, (c) Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association,
(d) Any proposed amendment to the Project Documents effecting a change in Unit boundaries, interests in the general or exclusive use Common Area .voting rights, any default by an Owner-Mortgagor of a Condominium in the performance of his/her obligation under this Restated Declaration or the Amended Bylaws, which is not cured within sixty (60) days
"Eligible Mortgage Holder" includes any Institutional Mortgagee (1) that has delivered a written notice to the Association containing its name, address and the number or address of the Condominium encumbered by the Mortgage, and (2) that has requested the Association deliver written notice to it of any of the matters in this Article Notices sent to the last mailing address provided by said Eligible Mortgagee are deemed sufficient to satisfy the requirements herein
Section 10.3. Inspection of Books and Records. Upon request, any Owner or First Mortgagee shall be entitled to inspect the accounting books, records and financial statements of the Association, this Declaration, the Bylaws, the Articles and the Rules and any amendments thereto during normal business hours or under other reasonable circumstances
Section 10.4. Financial Statements. Mortgagee's may request copies of (and shall pay for said copies of) the financial statement for the immediately preceding fiscal year Section 10.5. Priority of First Mortgagees. No provisions of the Governing Documents shall provide or be deemed to provide a Unit Owner, or any other person, priority over any rights of First Mortgagee of the Unit pursuant to its Mortgage in the case of a condemnation award for losses to or taking of Units and/or common elements Section 10.6. Priority of Liens. Any First Mortgagee who obtains title to a Unit pursuant to foreclosure of the Mortgage will not be liable for such Unit's unpaid assessments and fees, late charges, fines or interest levied in connection therewith which accrue prior to the acquisition of title to the Unit by Mortgagee except that if California law changes to allow for a different priority, the law shall control over this provision No amendment shall be made of this Declaration, nor shall any remedy be pursued against an Owner for breach of this Declaration that would defeat or render invalid the hen of a First Mortgagee made by an Owner in good faith and for value
Section 10.7. Distribution of Insurance or Condemnation Proceeds. No Owner or any other party, shall have priority over any rights of First Mortgagees pursuant to their Mortgages in the case of a distribution to Owners of insurance proceeds or condemnation awards for losses to or taking of Common Area property
27 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC ft 200900175 7

ARTICLE XI

POWERS AND AUTHORITY OF THE ASSOCIATION
The Association shall have all of the powers set forth in the Articles of Incorporation, the Amended Bylaws, and this Declaration to generally do any and all things that a homeowners' association organized under the laws of the State of California may lawfully do in operating for the benefit of its Members and to do and perform any and all acts which may be necessary or proper for or incidental to the exercise of any of the express powers of the Association or for the peace, health, comfort, safety and/or general welfare of the Owners, tenants, and guests of Owners, subject to any specified limitations

ARTICLE XII

DISCLOSURE AND OTHER OBLIGATIONS OF OWNERS
Section 12.1. Documents to Purchaser. An Owner shall, as soon as practicable before sale of a Unit, provide the prospective purchaser all of the information required by Civil Code Section 1368 To the extent proper notice and a demand is made, the Association shall provide the documentation as required by that statute, or face the penalties therein stated
Section 12.2. Notification of Record Ownership to Association. Upon or within at least ten (10) days after the consummation of any sale or other transaction which results in a change in the record ownership of the fee interest in a Unit, the transferring Owner(s) shall provide the following information to the Association in writing (a) The names of the new record Owners,
(b) The Unit number and street address of the residence transferred, (c) The forwarding/current mailing address of selling Owners, and (d) The date of transfer
Proof of ownership in the form of a deed or executed contract may be required by the Board Each Member shall have the duty and responsibility to keep the Association Secretary or authorized agent apprised of his or her current address and telephone number at all times, even when the Unit is rented to or occupied by another party Section 12.3. Renting or Leasing - Notification to Association. In accordance with the Use Provisions contained in this Restated Declaration, no later than ten (10) days after execution of a lease or rental agreement on a residence, the Owner shall provide the Association with an executed copy of the lease or rental agreement and/or the following information in writing
(a) The names of all tenants and Unit,
(b) The number of all persons who reside in the Unit,
(c) The current address and telephone number of the Owner and (if applicable) the Owner's legally designated agent for service of process leased (or the name of property management contact person if applicable), 28 RESTATED DECLARATION
OF CC&RS - FEBRUARY 2009

DOC # 3009001757