DECLARATION OF RESTRICTIONS, COVENANTS AND CONDITIONS

AND CHARGES, ASSESSMENTS AND LIENS

OF DECATUR NORTHWEST

 

 This Declaration is made the ____ day of ____ , by Orcatur Associates, a Washington general partnership (“Grantor”), as owner of a unique property which is known as Decatur Northwest (herein referred to as “Decatur Northwest” or the “Property”), encompassing approximately 485 acres and 2-1/4miles of waterfront on the northwest side of Decatur Island in the San Juan Archipelago of the State of Washington.

 

The Property is uncommonly beautiful, even for the San Juan Islands, with dramatic changes in topography and vegetation, a fresh water lake, beautiful beaches, plentiful fish life, abundant and varied wildlife, and historic structures, all in an unspoiled environment. Preservation of these qualities is an important objective of this development. For this reason, the Property is being developed at a relatively low density; over 95 percent of the Property will be held for the common benefit of the Owners, and restrictions on the use of the Property are intended to minimize the degradation of the environment.

 

All who become Owners subject to this Declaration must recognize the character of the natural environment in which the Property is located and accept the principle that the development and use of the Property must preserve that character for present and future enjoyment of all the Owners. Those who are entrusted with the administration of the Property must discharge their trust in full recognition of that principle and, to the extent consistent with that principle, foster maximum flexibility and freedom of individual expression.

 

The Grantor owns approximately 115 acres of undeveloped property immediately adjacent to Decatur Northwest (herein referred to as the “Reserve Parcel”). The Grantor reserves the right to add the Reserve Parcel to the Decatur Northwest development as set forth later in this document, subjecting it to the restrictions, covenants, and conditions and charges, assessments and liens contained in this Declaration. If the Reserve Parcel is added to Decatur Northwest, it may be subdivided into no more than twelve buildable parcels. If the Grantor (or his assignees) develops the Reserve Parcel separately from Decatur Northwest but utilizes the common water and fire control system of Decatur Northwest, then the maximum number of parcels into which it may be subdivided is twenty-one. These reservations of rights are described in Article VI of this document.

It is the intention of the Grantor that this Declaration and all other supplemental declarations will be understood and construed in recognition of the foregoing.

 

THE GRANTOR HEREBY DECLARES that all the Property shall be held, sold, and conveyed subject to the following easements, restrictions, covenants, and conditions and charges, assessments, and liens, which are imposed for the purpose of protecting the value and desirability of the Property and which shall run with the Property and be binding upon and inure to the benefit of all parties having any right, title, or interest in the Property or any portion of the Property, their heirs, successors, and assignees.

 

ARTICLE I: DEFINITIONS

 

Section 1.01:     ARTICLES means the Articles of Incorporation of Decatur Northwest Community Association filed with the Secretary of State, establishing the Association as a nonprofit corporation.

 

Section 1.02:     ASSOCIATION means the Decatur Northwest Community Association, its successors and assigns.

 

Section 1.03:     BYLAWS means the Bylaws adopted by Decatur Northwest Community Association.

 

Section 1.04:     COMMON AREA means all the real property, including easements, owned by the Association for the common use and enjoyment of the Owners. The Common Area includes all real property contained within the boundaries of the Plat exclusive of the Parcels.

 

Section 1.05:     COMMON PROPERTY is an inclusive term referring to all the real and personal property owned by the Association.

 

Section 1.06:     COMMUNITY SEWERAGE SYSTEM means the community drainfields which serve three or more Parcels and the sewer lines connecting the sewerage facilities of the Parcels to the community drainfields.

 

Section 1.07:     DECATUR NORTHWEST means the real property described in the Decatur Northwest Plat, recorded in Volume____, page____ of Plats, San Juan County, State of Washington, also described by the legal description in attachment A to this document and sometimes referred to herein as the “Property.”

 

Section 1.08:     DECLARATION means the contents of this entire document and amendments.

 

Section 1.09:     DESIGN COMMITTEE means the committee provided for in Article V of this Declaration.

 

Section 1.10:     FIRE CONTROL SYSTEM means the water system, the fire standpipes and hydrants, and the fire-fighting equipment of the Association.

 

Section 1.11:     GRANTOR means Orcatur Associates, a Washington general partnership, its successors and assignees.

 

Section 1.12:     OWNER means the recorded owner, whether one or more persons or entities, of fee simple title to any Parcel, including Grantor and contract purchasers, but excluding any party holding an interest in the property as security for the performance of an obligation.

 

Section 1.13:     PARCEL means each numbered lot shown upon the Plat recorded as described above.

 

Section 1.14:     PERMANENT RESIDENT means an Owner who has a home on his/her Parcel and who makes this home his/her principal residence. To qualify as a principal residence, it must be the Owner's legal address and usually occupied by him/her at least 250 days per year.

 

Section 1.15:     PLAT is the recorded document setting forth the location of all Parcels, easements, and common property of Decatur Northwest, and San Juan County restrictions on the development of the Property.

 

Section 1.16:     RESERVE PARCEL means the real property of approximately 115 acres in size owned by the Grantor, located north/northeast of the Property and more fully described by the legal description in Attachment B to this document.

 

Section 1.17:     ROADS means the private roads shown on the Plat which provide access to the driveways of the Parcels, Common Area, community facilities, and the rest of Decatur Island.

 

Section 1.18:     RULES means the Decatur Northwest Community Association Rules adopted in accordance with this Declaration and the Bylaws of the Association.

 

Section 1.19:     SEWERAGE MANAGEMENT CONTRACT is an agreement between the Grantor, the Association, and San Juan Title Company and approved by the State of Washington, whereby the Association assumes the responsibility for the management and maintenance of the Community Sewerage System.

 

Section 1.20:     WATER SYSTEM means the wells, well pumps and piping that supply the water for the Property, the water storage tanks, and the distribution lines that bring the water to the connection point for each Parcel.

 


 

ARTICLE II: PROPERTY RIGHTS

 

Section 2.0: Uses of Parcels. Each Parcel may be used for residential purposes only, and only one single-family dwelling and such outbuildings as may reasonably be necessary to such single-family residential purposes may be constructed, subject to the following provisions:

 

(a) The Association shall have the right, without any liability to the Owner, to enter any Parcel for the purposes of maintaining or protecting any and all Common Areas or facilities and enforcing the provisions contained in this Declaration or the Rules of the Association.

 

(b) The Association shall have the right to enter any Parcel that is connected to the Community Sewerage System to inspect all sewerage facilities, to assure their proper operation, and to carry out any repair, maintenance, or improvement to the sewerage facilities that the Association may determine is necessary.

 

(c) Each Parcel and any and all improvements thereon shall be maintained by the Owner in good condition and repair and in a manner which will not create a fire hazard, become a nuisance, or cause unreasonable disturbance or annoyance to other Owners.

 

(d) Notwithstanding any other rights of Owners, the Association may maintain the grounds, walkways, and exteriors of improvements of Parcels SC-1, 2, 3, 9, 10, and 11.  These Parcels are all quite prominent within Sylvan Cove, the entry to the Property, making it important that these Parcels and their improvements be of particularly high standards at all times. The Association shall give 60 days' notice to these Owners of any repair, maintenance or improvements required on the grounds or exteriors of the improvements. If any required action is not completed within the 60-day period or such other time beyond the 60 days as the Association may specify, the Association may do the repair, maintenance, or improvement and charge the costs thereof to the Owner(s) of the Parcel(s). This charge will be a special assessment as set forth in Article IV, Section 4.07, and shall be due and payable immediately. Failure to make the payment will be considered a default in an assessment and subject to the provisions of Article IV, Section 4.09.

 

(e) No temporary shelter or facility is permitted on a Parcel except those necessary for the construction of any permitted work or improvement and a tent and tent platform which may be used as an occasional residence for up to five years from the date of the closing of the sale for the Parcel on which the tent or tent platform is located, together with any sanitation facilities required and approved by the Design Committee.

 

(f) No house trailer, travel trailer, camper, or similar facility may be maintained on a Parcel.

 

Section 2.01: Exceptions to Use Restrictions. Certain Parcels, due to their location, size, or role in the development, are permitted a wider range of uses, as follows:

 

(a) Parcel SC-11 and 12 has been designated in the Plat for two single-family residences, and therefore two single-family residences, either detached or attached, may be built on this Parcel.

 

(b) Parcels SC-6, 7, & 8, and HRS-6, 7, & 8 are designated in the Plat for three single-family residences each. Therefore, three single-family residences, either detached or attached, may be built on each of these two Parcels.

 

(c) Parcel SC-1 may be used either for a single-family residence or for the following commercial uses: lodging, restaurant, bar, seminars, and conferences, subject to County approval.

 

(d) Parcel SR-I may be used for agricultural purposes in addition to residential use, including the keeping, breeding, and raising of animals and the planting, raising, harvesting, and storage of crops. Necessary outbuildings, barns, fences, equipment, and materials may be kept for these agricultural purposes. A guest house may also be constructed on the parcel.

 

The existing barn on Parcel SR-1 shall be maintained by the Owner of this Parcel in a usable condition for the keeping of animals, providing that there is no obligation to do a major rebuilding of the barn due to the effects of aging that could not reasonably be prevented with ordinary maintenance or damage from fire or other catastrophe. The Owner has the first priority for use of the barn. However, to the extent that the Owner is not fully utilizing the barn, other Owners or the Association may request, and the Owner of Parcel SR-l is authorized to permit, the use by other Owners of portions of the barn for the keeping of horses and other animals under reasonable rules and regulations set by the Owner of Parcel SR-I in his sole discretion. These rules may include, but are not limited to, restrictions on the kind and number of animals to be kept, cleaning of the barn, storage of feed or other materials, fees or charges to offset costs of management, maintenance, and repair, and other concerns relating to the management and care of the facility. The barn may not be converted to a nonagricultural use without the prior approval of the Board of the Association.

 

(e) A Parcel of the Grantor's choice may be used for a sales office to market and sell the unsold or repossessed Parcels in Decatur Northwest.

 

Section 2.02: Construction and Alteration of Improvements, Excavations and Grading. The right of an Owner to make any improvement on any Parcel, or to make any change in the existing topography, shall be subject to the terms of this Declaration and specifically to the following:

 

(a) All County requirements for building permits, sewage permits and any other applicable county regulations.

 

(b) Any construction, reconstruction, refinishing, or alteration of any part of the exterior of any improvement, or any change in the existing topography, or the removal or major pruning of trees with a diameter of two inches or more at breast height outside the Parcels is prohibited until approved by the Design Committee.

 

(c) Vegetation removal on and around the Parcels shall be minimized. To the extent necessary to protect the stability of slopes, stumps and roots of any trees removed shall be retained and underbrush shall be undisturbed. To ensure maintenance of adequate screening of structures from the shoreline and between Parcels, thinning and liming for views shall be undertaken only upon approval or pursuant to regulations of the Association.

 

(d) Foundation and grading plans for individual residential units located within 200 feet of the shoreline shall be reviewed by qualified geological consultants to evaluate possible effects on slope stability and drainage prior to building permit approval. Written indication of acceptance by the geologist shall be provided to the San Juan County Planning Department or its successor agency with the building plans.

 

(e) All excavation shall be monitored by the caretaker who is to have received training in identifying archaeological sites. If a significant archaeological site is exposed, further excavation or disturbance shall be halted immediately and for a period of fourteen days after notification thereof is received by the state Office of Archaeological and Historic Preservation or its successor agency so that it may make a determination as to whether or not any steps are to be taken to remove the artifacts.

 

(f) Each residence shall be required to have an exterior waste facility for the separation of garbage for recycling, composting, and waste removal. The facility shall be constructed to standards prescribed by the Design Committee.

 

(g) Each residence shall be required to have an Owner provided fire standpipe, fire hose reel and hose contained in a cabinet located within 150 feet of all exterior points of the residence. One fire cabinet may serve two residences if it still meets the 150-foot distance requirement. The required standards for the fire equipment and installation are set forth on pages 12/17 and 13/17 of the water and sewer plans recorded with the San Juan County Auditor, and conformance therewith will be the responsibility of the Design Committee.

 

(h) The Owner shall submit to the Design Committee plans and specifications for any proposed work, including: a plot plan, grading plans, floor plans, drawings showing all elevations; description of exterior materials and colors, with samples if requested; locations of sewerage facilities, transformer, fire standpipe and cabinet, and waste management facility; any plans for tree removal or major pruning of trees; a proposed construction schedule; and any other information requested by the Design Committee.

 

(i) The Design Committee may require that the submission of plans and specifications be accompanied by a reasonable inspection fee.

 

(j) The Design Committee shall approve the plans submitted if the Owner has complied substantially with the provisions of paragraph (f) above, and if the plans and specifications conform to this Declaration and to the Design Committee rules. All approvals shall be in writing and may be conditioned upon the submission by the Owner of final plans and specifications in accordance with the approved plans. Plans, drawings, and specifications which are not approved or rejected within 45 days from the date of submission to the Design Committee shall be deemed approved.

 

(k) If the Design Committee determines that the proposed work does not satisfy the requirements of this Declaration, the Design Committee shall notify the Owner in writing, specifying the reasons for disapproval.

 

(l) Any Owner may at any time, without first obtaining the approval of the Design Committee, refinish or otherwise alter the interior of any existing structure.

 

(m) Upon receipt of approval from the Design Committee, the Owner shall commence work in accordance with approved plans within one year from the date of approval, except that upon written request to the Design Committee and upon a finding by the Design Committee that there has been no change in the Owner's approved plans, applicable design rules, or the physical environment around the Parcel, the time for commencement shall be extended in writing by the Design Committee.

 

(n) The Owner shall complete the exterior of any improvement, hook up to the water supply, provide the fire cabinet, install and hook up all necessary sewerage facilities, and provide an approved waste management facility within one year after commencing construction, unless completion is rendered impossible or would result in undue hardship to the Owner due to causes beyond the reasonable control of the Owner.

 

(o) Upon completion of work for which approved plans are required under this section, the Owner shall give notice to the Design Committee. Within 60 days the Design Committee may inspect the work to determine whether the layout, exterior, and elevation are in substantial compliance with approved plans. The Design Committee shall notify the Owner of any noncompliance within such 60 days and shall require the Owner to remedy such noncompliance. If the Design Committee fails to notify the Owner of any noncompliance within the 60-day period, the improvements shall be deemed to be in accordance with the approved plans.

 

Section 2.03: Shared Utility Facilities. The utility services for the Property were designed to minimize the costs to Owners by making it possible to share some utilities. These include, but are not limited to, transformers, sewerage holding tanks, pumps and piping, and fire cabinets. The schedule set forth in Attachment C to this document lists those known facilities which shall be shared by Parcels as shown therein.

 

(a) When an Owner submits plans to the Design Committee for a Parcel which is listed as having a shared facility, the submission shall include a letter from the other Parcel Owner sharing or to share the facility (referred to as the “Cooperating Owner”) stating agreement or disagreement with the proposed location of the shared facility(ies). If a letter has not been obtained from the Cooperating Owner, or if there is a disagreement between the two Owners as to the location, size, cost, or other feature of the common facility(ies), the Design Committee shall determine all questions related to the facility(ies), and its decision shall be final and binding on all parties.

 

(b) The costs of designing and installing the shared utility facility(ies) shall be divided between the sharing Owners as follows:

 

(i) Where two Parcels are involved, the Owner initiating the submission to the Design Committee shall pay 60% and the Cooperating Owner shall pay 40%.

 

(ii) Where three Parcels are involved, the Owner initiating the submission to the Design Committee shall pay 40% and each of the two Cooperating Owners shall pay 30%.

 

(iii) If the Grantor owns the Parcel(s) that would share a common facility, the Grantor shall pay as would a Cooperating Owner(s) The Association shall pay the share or shares of the Cooperating Owner or Owners and assess that cost to them on the next monthly assessment. The assessment shall be due and payable immediately, and the provisions of Section 4.09 on effect of nonpayment shall apply.

 

Section 2.04: Special Construction Limitations. Certain sites have special siting, height, or sewerage restrictions due to their location. These restrictions are as follows:

 

(a) Parcel P-5. All building construction is limited in height to 10 feet above the highest point on the road due north of the western edge of the Parcel. All building construction must also be held back 10 feet from the southern edge of the Parcel.

 

(b) Parcel P-7. All building construction is limited in height to 10 feet above the highest point on the road due north of the western edge of the Parcel.

 

(c) Parcel P-9. All building construction is limited in height to 10 feet above the highest point on the road due north of the center of the Parcel.

 

(d) Parcel P-14. No tree removal or construction activity may occur on this Parcel between January 1 and July 15 of any year, due to its proximity to the eagle's nest.

 

(e) Parcels HRS-4, HRS-6, 7 & 8, HR-7, and SC-12 and 13. The on-site sewerage systems for these Parcels shall comply with any special engineering requirements of the San Juan County Sanitarian and with any shoreline permit requirements.

 

(f) Parcels SC-2, 3, 5, 9 & 10, Parcels SC-6, 7 & 8, HR1, WR2-6, all P Parcels, all L Parcels, all EC Parcels and all SB Parcels. All toilets installed in any structure on these Parcels shall be of a type that uses a maximum of 3 quarts of water per flush of the toilet. No garbage grinders or disposals that would introduce meat or vegetable products into the sewerage system may be installed in any residence on these Parcels.

 

Section 2.05: Limitations on Water Use. The Association may limit the use of water from the community water system for all purposes, except fire control, to 450 gallons per day for each residence or less if necessary to equalize available water for those currently in residence at any particular time. To determine the amount of water consumption, the Association may require the installation of water meters, approved by the Association, at each Owner's expense. Exceptions to these possible controls are as follows:

 

(a) Parcel SC-I, due to its permitted commercial use, may not be limited to less than 1,800 gallons per day from the community water system.

 

(b) Parcel SR-l, due to its permitted agricultural use, may not be limited to less than 1,400 gallons per day from the community water system. Also Parcel SR-l has the right to continued use of the spring located east of this Parcel, which has been its historical source of water; the spring and piping may be maintained, improved, or enlarged, and a storage tank or tanks may be added at the spring to provide an adequate supply of water for the permitted agricultural use.

 

ARTICLE III: COMMON PROPERTY

 

Section 3.0: Common Area Uses and Restrictions. The use of the Common Area is reserved equally to all Owners and guests. The Common Area shall be maintained in its existing natural state, subject to the other provisions of this Declaration. County requirements for use or construction related permits must be met before a commercial use may be undertaken or a building constructed.

 

Section 3.01: Roads and Utilities. The Common Area may be used for such roads and utility systems as the Grantor or Association may deem appropriate to serve the Owners' needs. The Common Area is also subject to the public and private utility easements granted, conveyed, or reserved by the Grantor or the Association.

 

Section 3.02: Owners' Driveways and Utilities. Owners may use the Common Area for driveways and walkways from the roads to their Parcels and for the location of transformers, pedestals for cable TV and telephone, fire standpipes and cabinets, septic tanks, holding tanks and pumps for waste water, drainfields, and connections to the water and waste water systems of the Association, and for such other uses as are approved in advance by the Association. The plans for these facilities shall be submitted to the Design Committee prior to their installation and shall be reviewed and approved or disapproved by the Design Committee through the same process as other proposed work.

 

Section 3.03: Community Facilities. The Common Area may be used for the location of community facilities approved and authorized by the Association, or by the Grantor prior to the time the Association's Board of Directors is elected by the members thereof, including the following and others determined to be appropriate:

 

(a) A house(s), office(s), and related outbuildings furnished for the caretaker or other employees and agents of the Association or any common enterprise or cooperative operated by the Association.

 

(b) Shops, equipment storage buildings, fuel storage areas, wood storage facilities, parking areas, and boat storage areas.

 

(c) Recreational facilities, including but not limited to tennis courts, picnic facilities, and swimming facilities, provided, however, that if a swimming facility is developed by the Association or the Grantor, it shall be made available to other Decatur Island residents by prior contact with and permission of the caretaker or such other person as the Association may designate subject to such rules as the Association may adopt in regard to such availability.

 

(d) Agricultural or aquicultural facilities reasonable for carrying out any such enterprises by the Association or the Grantor.

 

Section 3.04: Moorage and Docking Facilities. The Grantor or the Association may locate a community dock, floats, breakwater, and buoys in Sylvan Cove and buoys in Brigantine Bay for the purpose of providing moorage of boats owned by the Association or the Grantor and the loading and unloading and temporary moorage of Owners' and Owners' guests' boats, and may establish rules for the use of these facilities. Private mooring buoys shall not be permitted in either of these areas and permanent moorage of Owners' boats shall not be permitted, except that the Association may permit Owners who are Permanent Residents to moor one boat for each single-family residence at a community buoy and all Owners to moor on a permanent basis skiffs or small runabouts, although fees and charges may be imposed for such moorages.

 

Section 3.05: Construction Activity of Owners. During the construction of an Owner’s residence, materials and equipment necessary for the construction of the residence and appurtenant facilities may be stored in the Common Area, subject to the approval of the Design Committee as to the location and conditions of storage of the materials and equipment and cleanup and restoration of the area used.

 

Section 3.06: Construction Activity by the Grantor and His Successors and Assignees. The Grantor may use up to five acres, of the Grantor's choice, in the vicinity of the Association's main water storage tank (location of which is established as of the date of this Declaration) for a building construction staging area and for the storage of building materials, a sawmill, a planer building, equipment, and related items. The building construction facility shall be used only for the construction of community facilities and residences within the Property and the Reserve Parcel. At the conclusion of the Grantor's use of the building construction staging area, the Grantor shall restore the area to a condition acceptable to the Association. Notwithstanding any other provision of this Declaration in the construction of community facilities, the Grantor, its successors, assignees, and subcontractors may use the equipment and shop of the Association, reimbursing the Association for the energy used and/or for any damage to equipment or tools, but not being required to pay any other fees or charges.

 

Section 3.07: Logging of the Common Area. The Association may enter into contracts to permit the logging of the Common Area in a selective manner consistent with the principles underlying this Declaration, in order to supply lumber or logs for the construction of community facilities or residences on the Property. However, within 200 feet of the shoreline, no timber is to be removed for construction or firewood purposes except fallen or dead wood. Logging of the Property for the sale or use of logs or lumber off the Property shall not be permitted until the year 2002, at which point the Association may enter into a contract for logging in the form of selective thinning of the trees, provided that the San Juan County government is given the opportunity to review any Class II, III, or IV Forest Practice Permit application for such logging.

 

Section 3.08: Grantor's Aquiculture Activities in Common Areas. The Grantor reserves the right to carry out the breeding, raising, and harvesting of fish and shellfish for purposes of supplying any restaurant possible on site SC-l, for research and educational purposes, and for limited-scale commercial sale of the harvest. The locations of these activities are limited to the fresh water lake, the drainage of the lake to Sylvan Cove, and the beach and tidelands of Sylvan Cove and Brigantine Bay. In carrying out these activities, the Grantor shall:

 

(a) Forty-five (45) days prior to undertaking any new activity, submit a plan for that activity to the Board of Directors of the Association for review and comment;

 

(b) Avoid any significant restrictions of navigation or the utilization of dock and moorage facilities;

 

(c) Avoid any significant conflict with existing or planned recreational uses of the Sylvan Cove and Brigantine Bay beaches and the lake;

 

(d) Design any facilities so they reasonably blend with their immediate environment and so that the need for related shore-side facilities is minimal.

 

Section 3.09: Licensed Use of Common Area. The Association may provide a license to an Owner (or Owners) for the Owner's (or Owners') personal use of a portion of the Common Area for agricultural or recreational uses. The use may include the fencing of an area, improving the Property, and building structures and facilities for the licensed use. However it is not intended that any significant amount of the Common Area be licensed for the exclusive use of an Owner or Owners. If a license is granted for a use which would deny all use by others, the area covered by the license will be quite small. A single Owner's woodshed would be an example. However, a license for a fenced pasture which allows continued hiking by other Owners could involve a large area. The Owner(s) seeking such a use of a portion of the Common Area shall make application to the Association in accordance with the following procedure and requirements:

 

(a) Application for a license for a specific use shall be made to the Association by submitting a map showing the location of the Common Area involved, indicating the precise location of the structures, improvements, and fences which the Owner(s) wish(es) to place in the Common Area and the actual location of any roads passing through the Common Area affected;

 

(b) The license applied for may be granted in the discretion of the Board of Directors of the Association if the Board finds that the following conditions exist:

 

(i) Fences, structures, improvements and uses on and of the licensed area will not unreasonably interfere with the use and enjoyment of the Common Area by all the Owners;

 

(ii) The proposed enclosure of the licensed area is reasonable in terms of the topography;

 

(iii) Licensing will not cause any material restriction of passage through the Common Area;

 

(iv) Licensing will not hinder the Association's activities nor the operations of any common enterprise undertaken by the other Owners;

 

(v) All structures or improvements shall be approved in accordance with Section 2.02;

 

(vi) In the opinion of the Board of Directors of the Association, the licensing would be appropriate under all of the existing circumstances.

 

(c) Licenses granted by the Association shall be subject to the following conditions:

 

(i) The license may be revoked at any time without cause by the Owner (or Owners) who applied for the license or by the Association unless a term is specified;

 

(ii) Upon revocation of a license, the Owner(s) shall remove all fences and other improvements placed upon the licensed area and restore the area as nearly as practicable to its original natural state with 120 days, and if the Owner(s) does not do so the Association may remove the improvements and restore the area to its original natural state with 120 days of any revocation.

 

(d) The licensee shall be responsible for:

 

(i) All costs incurred by the Owner(s) and Association relative to the licensed area, the processing of the application, the issuing of the license, and any and all costs incidental to the revocation of the license and the removal of fences and other improvements and the restoration of the area to its original natural state.

 

(ii) Any fire control required by the Association on the licensed area;

 

(iii) All costs of maintenance of the licensed area, attributable to any licensed use including, but without limitation, security services.

 

Section 3.10: Restrictions on Use of Vehicles. Motorized vehicle usage on the Property shall be limited to small, slow moving, electric-powered vehicles approved by the Association. These vehicles may be used only on the roads of the Association, the driveways to Parcels, and the Parcels. The following are the exceptions to this restriction:

 

(a) The Association may own and operate for the benefit of the Association non-electric motor vehicles considered necessary for the transport of Owners, guests, agents and employees, maintenance of the Common Area, construction activities, agricultural and aquicultural activities and fire control.

 

(b) The Association may permit Owners to use nonelectric motor vehicles in specified portions of the Common Area under licenses awarded to Owners for the use of a portion of the Common Area, provided that the vehicles permitted may not be used on the roads of the Association except as needed to transport the vehicles and materials to the licensed Common Area.

 

(c) The Association may permit Owners and their agents the temporary use of necessary nonelectric vehicles for the construction of their residences and related improvements.

 

(d) The Association may permit utility service providers to use nonelectric vehicles to the extent necessary to maintain their facilities, including telephone and electrical facilities.

 

(e) The Grantor may use those nonelectric vehicles necessary to the building construction activity authorized in Article III, Section 3.06, the aquicultural activities authorized in Article III, Section 3.08, and the marketing and sales of the unsold or repossessed Parcels, provided that these vehicles may not otherwise be used for the general transporting of people.

 

(f) Nonelectric motorized vehicles may be operated in the Common Area by the Owner of Parcel SR-l as necessary in support of garden or agricultural activities on that Parcel, but not otherwise for the general transporting of people.

 

(g) The Association may permit Owners to operate the Association vehicles in the Common Area for the purposes described in Article III, Section 3.09.

 

Section 3.11: Excavation Restriction. All excavation in the Common Area shall be monitored by the caretaker. If a significant archaeological site is exposed further excavation or disturbance shall be halted immediately and for a period of fourteen days after notification thereof is received by the state Office of Archaeological and Historic Preservation or its successor agency so that it may make a determination as to whether or not any steps are to be taken to remove the artifacts.

 

Section 3.12: Protection of an Archaeological Site. An Archaeological site is identified on the Plat Map north/northeast of the beach of Brigantine Bay. This is an undisturbed area of Indian artifacts. There shall be no excavation in or removal of artifacts from this area without the prior approval of the State of Washington's Office of Archaeological and Historic Preservation or its successor.

 

Section 3.13: Protection of Domestic Water Wells. A restrictive covenant has been filed with the San Juan County Auditor prohibiting within 100 feet of those wells on the Property being used for domestic water supply any source of contamination, such as cesspools, sewers, privies, septic tanks, drainfields, manure piles, garbage of any kind or description, barns, chicken houses, rabbit hutches, pigpens, or other enclosures or structures for the keeping or maintenance of fowls or animals, or storage of liquid or dry chemicals, herbicides, or insecticides. The terms and provisions of this restrictive covenant are incorporated herein by this reference.

 

Section 3.14: Protection of Community Drainfields. The Community Drainfields and Reserve Areas as shown on the Water and Sewerage Plans approved by San Juan County shall not be graded, compacted, covered with any structure or otherwise rendered unsuitable for drainfield use.

 

Section 3.15: Protection of the Eagles Nest. No logging or vegetation removal is permitted within 660 feet of the eagles nest located north of site P-14 except for that permitted on and south of the P-14 site.

 

Section 3.16: Easements in Common Area. The following utility easements have been granted across the Common Area and recorded with the San Juan County Auditor, to wit:

 

(a) Joseph T. Jones, William Jones, and San Juan County have been granted a 60-foot easement for the extension of County Road #138 through a portion of Government Lots 4 and 5 and the Northwest Quarter of the Southwest Quarter of Section 15; and Government Lots 2 and 3, and the North Half of the Southeast Quarter of Section 16, all in Township 35 North, Range 1 West W.M.

 

(b) Orcas Power and Light has been granted an easement for the installation and continued operation, maintenance, repair, and replacement of underground electric distribution lines, with all necessary fixtures thereon, for a distance of 10 feet on either side of the underground distribution line shown on the as-built construction drawings filed as a part of the easement.

,

(c) Inter-Island Telephone Company has been granted an easement for the installation and continued operation, maintenance, repair, and replacement of underground telephone lines, switching facilities, and other necessary fixtures for a distance of 10 feet on either side of the telephone lines and facilities shown on the as-built construction drawings filed with the easement. These easements are referred to by this reference for the purpose of notice only.

 

ARTICLE IV: ANNUAL MAINTENANCE AND OPERATION, CAPITAL. AND SPECIAL ASSESSMENTS

 

Section 4.01: Authorization of Assessments or Charges and Personal Obligations of Payment. The Parcels shall be subject to such assessments or charges as shall be levied by the Association from time to time as provided for in this Declaration. Each such assessment or charge imposed upon a Parcel together with any interest, costs, and reasonable attorney's fees which may be added thereto pursuant to this Declaration, shall also be the personal obligation of the person who is the Owner of such Parcel at the time each such assessment or charge is due.

 

Section 4.02: Assessments of Parcels. Each Parcel shall be assessed equally, except for those Parcels which are authorized to construct more than one single-family residence (excluding guest houses). A Parcel permitted two residences shall be assessed at twice the level of Parcels permitted one residence, and Parcels permitted three residences shall be assessed at three times the level of Parcels permitted one residence. Notwithstanding the above, unsold or repossessed Parcels held by the Grantor are not subject to any assessments until the Association elects the Board of Directors pursuant to the Bylaws of the Association. After the Association elects the Board of Directors, the Grantor's Parcels shall be assessed at an amount equal to fifty percent (50%) of the assessments levied upon other Parcels in accordance with Sections 4.02 and 4.04. Any assessments or liens outstanding against a Parcel which is repossessed by the Grantor are extinguished upon repossession. There shall be added automatically to any assessment or charge not paid when due interest thereafter at such rate as shall be established from time to time by the Association and costs of collection including attorney fees incurred.

 

Section 4.03: Maintenance, Operation and Service Assessment or Charges. There shall be maintenance, operation and service assessments or charges to pay the costs of maintaining, operating, repairing, and replacing the Association's Common Property and providing services to Owners.

 

(a) Estimated Expenses. Thirty (30) days prior to the commencement of each fiscal year the Association shall estimate the costs and expenses to be incurred by the Association during the succeeding fiscal year in performing its maintenance, operation and service responsibilities, including but not limited to the development and maintenance of a reasonable reserve for emergencies and major repair and replacement of capital equipment and facilities. The Association shall subtract from the estimate the anticipated remainder at the commencement of the fiscal year, if any, in the maintenance, operation and service fund, excluding reserves, and the estimated receipts for all user fees to be collected during the next fiscal year. The balance shall be the regular maintenance, operation and service assessment or charge for such fiscal year to be assessed against each Parcel and collected through equal monthly installments payable the tenth (10th) day of each month. Written notice of the new assessment level is to be sent to all Owners.

 

(b) Approval of Assessment Amounts. For the calendar year 1983, the maintenance, operation and service assessments shall not exceed $65 per month for each single family residence Parcel subject to such assessments. This assessment level per Parcel may be raised by the Board of the Association no more than 10 percent per year without the approval of the Association given in a duly held meeting of the members.

 

(c) Financial Obligations of Grantor. Since during the period that the Grantor appoints the Board of Directors of the Association pursuant to the Association's Bylaws the Grantor shall manage the financial affairs of the Association, in carrying out these responsibilities, the Grantor shall have the following responsibilities.

 

(i) A portion of each maintenance, operation and service assessment per Parcel shall be set aside into a capital repair and replacement reserve. Expenditures may be made from this account only for major life-extending repairs and the replacement of capital equipment or facilities;

 

(ii) The balance of each such assessment may be used for costs required to carry out the maintenance, operation and service responsibilities of the Association. To the extent that the assessments do not cover these expenses of the Association, the Grantor shall provide the additional revenue;

 

(iii) A monthly report of the receipts and expenditures of the Association shall be provided to the member of the Board of Directors who is required to be an Owner, and this monthly report shall be available for inspection by any member of the Association;

 

(iv)  When the Grantor relinquishes control of the Board of Directors to the members of the Association, the Grantor shall provide a $20,000.00 payment for the Capital Repair and Replacement reserve.

 

Section 4.04: Supplemental Assessments. If at any time during any fiscal year the maintenance, operation and service assessment or charges prove inadequate for any reason, including nonpayment of an Owner's share or extra-ordinary costs incurred by the Association, the Association may levy additional assessments to equal the amount of the inadequacy. Collection of such supplemental assessments shall be on such schedule as the Association shall determine.

 

Section 4.05: User Fees and Charges. The Association may establish and collect user fees for Owners' and guests' use of the ferry system, land vehicles, buoys, recreational facilities, laundry, woodshop equipment, and any other community facilities; provided that in the case of the ferry system, land vehicles, and laundry, the charges may not be any more than the user's share of the energy cost to operate the service for the user's benefit. All other costs of these services are to be included in the maintenance, operation and service assessment described in Section 4.03.

 

Section 4.06: Capital Improvement Assessments. The Association may levy capital improvement assessments for the purpose of defraying the costs of constructing or purchasing any capital improvement or equipment to be used for the common benefit of the members of the Association. The assessments are to be levied in the same manner as the maintenance, operation and service assessments, except that payment thereof shall be on such schedule as the Association shall determine. Capital assessments require the approval of the Association given in a duly held meeting of the members.

 

Section 4.07: Special Assessments. The Association may levy special assessments against any Owner whose acts cause money to be expended for unanticipated purposes by the Association in performing its functions. These assessments shall be in the amount expended and shall be due and payable to the Association immediately when levied.

 

Section 4.08: Assessments for Shared Utility Services. The Association shall levy an assessment against a Parcel for its share of the costs, as determined by the Design Committee, of designing, purchasing, and installing utility facilities to be shared with another Parcel for which utility construction plans have been submitted to and approved by the Design Committee. The Association shall establish the schedule for payment of this assessment.

 

Section 4.09: Liens, Collection of Assessments.

 

(a) Any assessment or charge levied by the Association against any Parcel in Decatur Northwest, including interest on such charge or assessment and collection costs, if any, shall constitute a lien upon such Parcel as soon as such charge, assessment, interest or costs shall become due and payable. Such lien shall be superior to any and all other liens at any time levied or imposed upon such Parcel, except as provided in Section 4.10.

 

(b) Any assessment or charge imposed by the Association upon any member who is the Owner of a Parcel or Parcels in Decatur Northwest, including interest on such charge or assessment and collection costs, if any, shall be and become a lien upon the Parcel or Parcels owned by such member as soon as such charge, assessment, interest, or costs shall become due and payable. Such lien shall be superior to any and all other liens at any time levied or imposed upon such Parcel or Parcels, except as provided in Section 4.10.

 

(c) All liens herein provided for shall be enforceable by foreclosure proceedings in the manner provided by law for the foreclosure of mortgages; provided, however, that by the acceptance of a deed for any Parcel or Parcels, or by the signing of a contract or agreement to purchase the same, whether from the present or subsequent Owner thereof, such Owner shall thereby waive all rights of redemption and of homestead in such Parcel or Parcels with respect to foreclosure of such liens. As an alternative remedy to the foreclosure of such liens, the Association shall have the exclusive right and option, at any time after the expiration of a period of sixty (60) days during which any of such charges or assessments shall remain unpaid, to purchase any Parcel upon which such lien or liens are imposed upon payment to the Owner of such Parcel an amount equal to fifty percent (50%) of the price at which said Parcel was sold by Grantor, less the sum of:

 

(i) The amount owed on the note, secured by deed of trust, for sale of such Parcel or Parcels by Grantor, as vendor, plus

 

(ii) The amount of unpaid assessments or charges or any other lien or encumbrance against such Parcel but in any event not less than one hundred dollars ($100.00). Upon the exercise of said option by the Association, the Owner of such Parcel shall convey to the Association all right, title, and interest which such Owner may have in such Parcel. In any court proceeding to enforce such option, the Association shall be entitled to have a decree of a specific performance entered in its behalf. Furthermore, the Association shall have the right, at any time after the expiration of 60 days during which any of such assessments and charges shall remain unpaid and after ten (10) days' notice of intent to exercise this right, to prohibit and prevent the Owner of any Parcel subject to such a lien, and such Owner's guests, invitees, agents, representatives, and those using, by or with such Owner’s permission, consent, or sufferance, the Common Property of Decatur Northwest or the Owner's Parcel from using the Common Property of Decatur Northwest until all assessments and charges are paid. Any Owner affected by such suspension shall be afforded a reasonable opportunity of a hearing by the Board of Directors of the Association regarding such suspension within thirty (30) days of delivery to the Secretary or President of the Association of a written request for a hearing.

 

Section 4.10: Subordination of the Lien to Mortgages. The lien of the assessments and charges provided herein shall be subordinate to the lien of any duly constituted and recorded first mortgage.

 

ARTICLE V: COMMUNITY SEWERAGE SYSTEM

 

Section 5.01: Participation. The following Parcels will hook up their waste water systems to the Community System of main-line pipes and community drainfields: All SB Parcels, all P Parcels, all EC Parcels, all L Parcels, WR Parcels 2 – 6, HR-I, SC-2, 3, 5, 9, 10, and SC-6, 7, and 8. The Owners of these Parcels are all participating members of the Community Sewerage System. The management of the Community Sewerage System will be provided through the Association and is governed by the terms of a Sewerage Management Contract.

 

Section 5.02: Assessments. There shall be two types of assessments for the sewerage system, a maintenance assessment and an emergency repair assessment, both of which are described below. These assessments shall be added to the monthly assessments described in Article IV for the appropriate Parcels and shall become liens against the Parcels in the same manner and to the same extent as the assessments described in Article IV.

 

(a) Maintenance Assessment. Thirty (30) days prior to the commencement of each fiscal year, the Association shall estimate the costs of examinations, servicing, analysis, preventive maintenance, anticipated repairs and system modifications and any other costs necessary to operate and maintain the system to be incurred during the next fiscal year. Any balance anticipated in the Community Sewerage maintenance fund at the commencement of the fiscal year shall be subtracted from the total expenses and the balance, if any, shall be assessed equally against the Parcels that are participants in the Community Sewerage System, except that Parcels SC-6, 7, and 8 shall pay an assessment for each residence permitted on the Parcel under the Plat.

 

(b) Emergency Repair Assessment. An emergency fund shall be established to make significant unexpected repairs to the System. The amount of this fund shall be determined by the Association. Assessments to develop and maintain this fund may be through hook-up charges and/or monthly assessments. Monthly assessments shall be made in the same manner as in Section 5.02(a) above. Hook-up charges, if any, and their manner of payment shall be determined by the Board of Directors.

 

Section 5.03: Records. The Association shall maintain separate records and accounts for the maintenance and the emergency repair funds of the Sewerage System. These funds are to be kept separate from the Association's other funds. Reports on the revenue, expenses, and balances of the two funds are to be made annually to the members of the Sewerage System, to San Juan Title Company in Eastsound, Washington, and to appropriate governmental authorities.

 

Section 5.04: Management. The Association shall maintain the Community Sewerage System, including inspection, monitoring, repair, and improvement or replacement of facilities. The Association shall also inspect the septic tanks, holding tanks, pumps and piping, and other portions of the sewerage facilities on private Parcels that are within the Community Sewerage System for the proper operation of these facilities. Each Owner shall carry out the maintenance, repair, improvement or replacement activities required on the Owner's Parcel under the Association's supervision. If the Association carries out the maintenance, repair, improvement or replacement at the Owner's request, or because of the failure of the Owner to carry out the required activity, the costs of that maintenance, repair, improvement or replacement shall be an additional assessment upon the Parcel involved due immediately.

 

Section 5.05: Transfer of Responsibility. The Association may turn over the management responsibilities for the Community Sewerage System to a governmental agency, along with the authority for that governmental agency to levy assessments for the management, maintenance, operation, improvement, and replacement of the facilities of the Community Sewerage System. Such transfer of responsibility shall be subject to the approval of San Juan County health authority.

 

ARTICLE VI:  ADDITION OF RESERVE PARCEL

 

Section 6.01: Reserve Parcel.  The Reserve Parcel is more fully described by the legal description in Attachment D to this document. The Grantor reserves the right to subdivide the Reserve Parcel and either add the subdivided parcels and common area to the Property or to keep the Reserve Parcel separate from the Property, but utilize for the Reserve Parcel the water and fire protection systems servicing the Property. The conditions of entering into either of these arrangements, in addition to San Juan County subdivision approval, are described below.

 

Section 6.02: Adding the Subdivided Reserve Parcel to the Property. The Grantor may subdivide the Reserve Parcel into a maximum of twelve (12) private parcels, plus common areas, if the Reserve Parcel is to be added to the Property. The Grantor reserves a blanket easement across the Common Area of the Property for the purposes of connecting roads and services of the Reserve Parcel to the existing roads, power, telephone, cable TV, and water system of the Property in the event the Reserve Parcel is added to the Property. The Grantor also reserves the right to develop a water supply for the Reserve Parcel on the Common Area of the Property if additional water supply is required to serve the Reserve Parcel. No payments or charges may be required of the Grantor to add the parcels or common area of the Reserve Parcel to the Property or for the aforesaid reservations. Once the parcels in the Reserve Parcel are part of the Property, then (a) the assessments and charges applicable to all other Parcels would apply to the new parcels on the same basis, (b) each owner of a parcel in the Reserve Parcel shall become a member of the Association on the same basis as all Owners within the Property, and (c) the parcels and common area of the Reserve Parcel shall be subject to the same restrictions, covenants, and conditions and charges, assessments, and liens as those of the Property, except as follows:

 

(a) The new parcels may be larger in size and therefore permitted a wider range of buildings and activities on the parcels.

 

(b) The new parcels may be permitted to have private buoys in the waters adjacent to the Reserve Parcel.

 

Section 6.03: Utilizing the Water and Fire Protection System and Equipment of the Property. The Grantor reserves the right to use the Water System and fire protection equipment of the Property for the benefit of the Reserve Parcel in the event the Reserve Parcel is kept separate from the Property. The Grantor also reserves

 

(i) a blanket easement across the Common Area of the Property for the purpose of connecting the Reserve Parcel to the roads, power, telephone and water system of the Property, and

 

(ii) the right to develop a water system on the Common Area of the Property if additional water supply is required to facilitate such use of the Property's water system and fire protection equipment. In the event the Property's water system and fire protection equipment is to be used for the benefit of the Reserve Parcel,

 

(a) the Reserve Parcel may be subdivided into a maximum of twenty-one (21) private parcels, plus common area;

 

(b) no payments or charges are to be made to connect to or use these facilities or services of the Property except that once such facilities or services have been connected to the Reserve Parcel and are ready for use, pro-rata assessments may be made against the parcels in the Reserve Parcel and the owners thereof in the manner provided in Article IV to cover the costs of the water system and fire protection equipment, which assessments are to be no more than the amount assessed against the Parcels within the Property for the same facilities and services.

 

ARTICLE VII: GENERAL PROVISIONS

 

Section 7.01: Discipline and Suspension of Rights. The Association may suspend the voting rights and right of any Owner to use any common property for any period, not to exceed sixty (60) days, for any breach of this Declaration or the published Rules. Suspension shall be only after such owner is afforded a reasonable opportunity of a hearing by the Board of Directors of the Association.

 

Section 7.02: Enforcement. The Association, or any Owner, shall have the right to enforce, by any proceeding at law or in equity, all restrictions, covenants and conditions now or thereafter imposed by the provisions of this Declaration. Failure of the Association, or of any Owner, to enforce any restriction, covenant or condition contained in this Declaration shall not be deemed a waiver of any later rights.

 

Section 7.03: Severability. Invalidation of any portion of this Declaration by judgment or court order shall not affect any other provision, and the remainder of this Declaration shall remain in full force and effect.

 

Section 7.04: Amendments. This Declaration may be amended at any time by a duly recorded amendment executed by the Owners of sixty percent (60%) of the Parcels within the Plat; PROVIDED, HOWEVER, that each and every change in limitations or exclusions from assessments set forth in Section 4.02 hereof shall require the approval of Orcatur, its successors to or assigns of substantially all of its interests as distinguished from purchasers of Parcels from Orcatur.

 

Section 7.05: Binding Effect. All of the provisions of this Declaration shall be deemed to be covenants and obligations running with the land. Also Orcatur and all parties claiming by, through or under it shall be taken to hold, agree, and covenant with Orcatur, its successors and assigns, and with each of them, to conform to and observe all terms and conditions herein contained.

 

IN WITNESS WHEREOF, this instrument is executed on the day and year first above written.

 

 

                                                                        ORCATUR ASSOCIATES

                                                                       

                                                                        By_______________________

James W. Youngren                                          James W. Youngren

Deed of Trust Beneficiary General Partner       General Partner

                                                                       

                                                                       

                                                                        By _______________________

                                                                        Philip G. Sherburne

 

 

                                                                        FIRST INTERSTATE BANK OF

                                                                        WASHINGTON, N.A.

                                                                        By ________________________

                                                                        Victor M. Magruder

                                                                        Vice President

                                                                        Deed of Trust Beneficiary