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Home My WebLink AboutDeclaration of Condominium - PLN General - 10/3/1975 F Rr=CEIVED a 0 C T 1975 DECLARATION OF CONDOMINIUr, THUrSTON-MASON establishing i HEA1 T"' ^" BLUE HERON CONDOMINIUM INDEPENDENCE MORTGAGE TRUST, a Georgia Business Trust , whose principal office is located at 625 Broadway , Suite 12UU, San Diego , California , hereby declares the hereinafter described property, together with the buildings and improvements erected or to be erected thereon, to be a condominium property , and it is hereby submitted to , and shall be subject to , the provisions of The Horizontal Property Regimes Act of the State of Washington (RCW Chapter 64.32) , and as they may be hereafter amended or supplemented by subsequent legisla- tion. The hereinafter described property shall be subject to the uses , purposes , restrictions , covenants , and administrative authority as herein set forth. Section 1. Definitions . (A) All terms used herein which are defined in The Horizontal Property Regimes Act of the State of Washington (RCW Chapter 64. 32) , which is hereinafter called the "Act" , shall have the same meaning as in the Act. Certain terms used herein have been substituted for certain terms defined in the Act , which terms have identical meanings and are reciprocally related , as follows : I . "Unit" means "apartment"; "time sharing unit (TSU) or "fractional interest" means "an undivided one- sixth interest or more held in common with other interests of a given unit"; II . "Unit number" means "apartment number"; III . "Unit owner" means "sole owner of units , a unit , or fractional owner of a unit (excluding , however, contract vendors , lessees , licensees , or occupants) "; a "fractional owner" , also known as "T.S.O. (time sharing owner) " is "any person holding an undivided fractional interest in common with one or more persons" ; IV. "Association" means "association of unit ocaAiers , which shall be known as the 'Blue Heron Owners ' Association"'; V. "Common areas" means "common areas and facilities" , including all personal property purchased by the Association for common areas"; VI. "Limited common areas" means "limited common area: and facilities , including all personal property purchased by the Association for the units"; VIT . 'Majority of interests►► ►►means majority►► ar "majority of unit owners"; VIII . Condominium shall mean the property, the units , their uses and purposes , and the admin- istration thereof as established under this Declaration"; IX. "Percentage interest" shall mean "the percentage of undivided interest in the common areas and facilities appertaining to each unit and its owner for all purposes , including voting"; X. "Majority vote" shall mean "the majority of percentage interest vote cast by the owners at a meeting of the Association at which a quorum shall be present"; XI . "Declarant (or Sponsor) of this Condominium" means "Independence Mortgage Trust. , a Georgia Business Trust , its successors or assigns" ; XII . "Mortgagee" shall mean "lien holder under a mortgage or deed of trust". Section 2. Name and Address . The Condominium shall be identified by the name "Blue Heron Condominium" , and its address shall be Star Route 1 , Box 59N, Union , Washington 98592 , located approximately one mile east of Union, Washington , on State 'Highway #106. Section 3. Legal description of land. The legal description of the land is attached hereto as Exhibit "A" , and by this reference made a part hereof. Section 4. Surveyor's Map. A Surveyor's Map shoeing the surface of the land hereby submitted to the provisions of the Act , which shows the location of the buildings constructed or to be con- structed thereon , the layout of the units , the unit numbers , the vertical and horizontal boundaries , the dimensions of the units , the common areas and the limited common areas , is filed of record con- temporaneously herewith in the Office of the Auditor of Mason County , Washington, under Auditor's Receiving Number in 'Volume ��, of Condominiums , pages through Said Surveyor's Map is by this reference incorporated as a part hereof as though herein set. forth in full. . Prior to the conveyance of any unit , a verified st itc.- ment by a Registered Architect , Registered Professional Engineer. , or Registered Land Surveyor shall certify that the plans the.retoforc filed fully and accurately depict the unit numbers and the dimensions and location of the units as built , all in accordance: with RCW 64 .32 , 100. Section .5. Description of Buildings . (A) The Buildings of the Blue Herron Condominium submitted to this Declaration consist of Building One , Four and Eight , Carport and storage common facilities A, B , C , and D , club house and beach house, called Phase I , and which are more specifically located within the Property, which may also include Buildings Two, Three:, Five , Si:. and Seven , called .phase II , III , IV, V , and VI , respectively, (B) Building One, containing five units , 1 through 5 , is a single story building , with six carports underneath and partial base- ments as such, located on the northeasterly portion of the .property along the east boundary thereof. Building Four, containing eight units , 1 through 8 , is a two story building located on the south portion of the Property along the south boundary thereof. Building Eight , containing eight units , 1 through 8 , is a two story building located on the northerly portion of the Property along the north boundary thereof. Carport and storage common facilities A , containing two carports , and B, containing six carports , are located on the southerly portion of the Property along the south boundary thereof. Carport and storage common facilities C , containing two carports , and carport facilities D, containing six carports , are located on the northerly portion of the Property along the north boundary thereof. The club house and swimming pool facility are centrally located on the Property. (C) All buildings are wood frame construction on concrete foundation, having cedar shingle roofs and trim. (D) Phases II , III , IV, V and VI may be added to this Declaration and become part of the Property , as provided in Section 7 (B) hereof. -3- Section 6. Description of Units and Values . (A) The value of the property (including all Phases) shall be $2 ,826 ,000.00. (B) Total value of the Property in Phase I , unit number, square footage, value, and undivided interest in the common area and facilities of each unit are as set forth on Exhibit "B" , attached hereto and made a part hereof, and the Surveyor 's Map referred to above , and filed contemporaneously herewith, the latter being in- corporated herein by this reference. The -location of the units shall be as delineated on the Surveyor 's Map. (C) Each of the units of Phase I shall contain the following common attributes : one bath for each bedroom, fireplace, kitchen , living room and dining space, number of bedrooms as described on Exhibit "B". (D) Access to the common areas and facilities to each unit. in Phase I is direct from each unit by walkways , roadways , and bridge walkway to the common areas and facilities . In addition, all units shall have access over the public highway to the beach on Hood Canal . (E) The description of units and values for all subsequent Phases , if any, shall be set forth and filed in the form of an amend- ment to this Declaration at the time any of said Phases II , ill , IV , V and VI are submitted to the Act under this Declaration. The Declarant shall have the absolute right to amend this Declaration only as to adding subsequent Phases , as herein provided , without the approval of the owners . The Declarant_ , or its successors and/or assigns , shall further have the absolute right to develop subsequent Phases , if any , in any order Declarant sees fit. Section 7. Development Phases and Unit Percentage Interest . (A) First Phase. The First Phase constitutes Buildings One , Four and Eight , carport and storage common facilities A, B , C , and D, club house and beach house , and other common areas , per Section 9 hereof, including the balance of the land described on Exhibit "A" , exclusive of the land under and air space above , described as sub- sequent Phases II , IIT , IV , V and VI , as shown on the Survey Map being filed simultaneously herewith , which includes also the space to be occupied by Buildings Two, Three, Five , Six and Seven . (B) Subsequent Phases . All of the subsequent Phasos , if any, provided for herein , shall be completed in a form that. is -4- . � J architecturally compatible with Phase I , and shall be constructed with materials and workmanship that is equal to that of Phase 1 . All of any subsequent Phases shall also be in compliance with the then existing and-preyailing building code. In the event that any of these subsequent Phases have not been constructed within ten (10) years of the filing of this Declaration , then the land which comprises said Phases , and described on Exhibit "A" , shall become common area of the Property, and Declarant shall declare , convey and submit said land as common area to those Phases then on file with the Mason County Auditor. (C) Unit Percentage Interest . The unit percentage interest: of time sharing unit for Phase I shall be in accordance with the Phase Schedule, which is marked Exhibit "B" , attached hereto and by this reference made a part hereof. When subsequent Phases are added , the unit percentage interest shall be computed by taking as a basis the value of the unit in relation to the total value of the Phases recorded. For determining at any given time the percentage of interests of one. or more Phases , in accordance with the formula set forth in the Act (RCW 64.32 .050(1)) , the value of Subsequent Phases is as follows : Phase II $306 ,000.00 Phase III 306 ,000.00 Phase IV 288 ,000.00 Phase V 288 ,000.00 Phase VI 144 ,000.00 At such time as Subsequent Phases are made effective by filing of Declarant 's "as-built" certificates , the unit percentage interests thereafter effective shall be determined by adding; the value of the Phase being added per this section to the then existing total. value of the Property. (D) All unit owners and fractional owners , for themselves , and for and on behalf of their respective heirs , successors and assigns , hereby acknowledge and agree: (1) That this Declaration , together with the Survey Map and Plans , states covenants , conditions , restrictions and reserva- tions effecting a common plan for the Condominium development mutually beneficial in all of the described units , and that the covenants , conditions , restrictions , reservations and plan are binding upon the Condominium, each of the units located therein , and all of the rights appurtenant thereto, and upon the various owners or possessors , and their heirs , personal representatives , successors and assigns , throe+.Rh all successive transfers of all or part of the property, or any security interest therein. -5- (2) That , without limiting the generality of the fore- going , all rights with respect to the possession , use , c�rajoyment , management , and disposition of the Condominium, the varioui units located therein , all appurtenances thereto and interest therein , shall be governed by the provisions hereof. (3) That , without limiting the generality of the fore- going , all rights with respect to the use , possession , enjoyment , management or disposition of a unit itself , which unit- owners or fractional owners might otherwise have (including , but root limited to, any common law or statutory right to jointly use , possess or manage commonly owned property , or to seek a partition by division in kind, or sale of the whole) , and which right would be inconsistent: with any of the provisions hereof, are hereby unconditionally and irrevocably waived. (4) No unit or fractional owner, nor anyone dealing for or on behalf of such owner, or through or in connection with any interest of such owner, has any right to take any action which would be inconsistent or interfere with any other unit , or fractional owner's rights hereunder, with respect to the use , possession , enjoyment , management or disposition of the Condominium , or such other owner 's interest therein. Section 8. Fractional Interests . (A) Time Sharin&. The owner of any unit (including the Declarant) shall have the right to sell and convey fractional interests of ,any unit in one-sixth undivided interests , to be held in common with other fractional interests of a given unit , with an equivalent undivided percentage interest in the common area and facilities apper- taining to said unit. Along with the undivided fractional interests , there shall be an exclusive right of possession and occupancy of said fractional owner one full week out of every six. For each unit with fractional interests , said fractional interests shall be designated as "F", "G", "H", 'fill, "K" and "L" , respectively. Said exclusive right of possession and occupancy shall continue on a like rotating basis- as long as any one owns a fractional interest in a unit. The schedule for establishing the basis for the rotation is attached hereto and marked Exhibit "C". The Board of Directors for the Association shall be solely responsible for determining check-in and check-out times . (B) Fractional Owners ' Real Estate Taxes . The Mason County officials are hereby authorized to bill real estate taxes to the fractional owners directly for their respective fractional interest or interests . Upon the first sale of any fractional interest , as -6- provided for herein, the purchaser of said fractional interest shall be required to segregate the real estate taxes with the Mayon County Assessor's office. Section 9. Description of the Common Areas . (A) In addition to the common areas and facilities , as scat forth in The Horizontal Property Regimes Act (RCW 64. 32 .010(6)) , the Condominium shall contain the following: Club House and Beach House, outdoor recreational areas , roadways , walkways , beach and dock , parking spaces , water and sewer systems and facilities; , and distribution lines , swimming pool , tennis courts , equipment house , saunas , showers , laundries , storage areas , manager`s residential unit , office, utility rooms , all as depicted and set forth on the Surveyor's Map referred to above. (B) In addition to the above common areas , the Declarant covenants and agrees to construct a walkway bridge over State Highway #106 , giving access from that portion of the Property which contains all of the units , to the common beach area located on the northeastfarl.y portion of the Property. Said bridge walkway shall be constructed in accordance with the Plans and Specifications , which shall be. Located in the office located in Building Eight , and also which shall be on file with the Washington State Department of Highways . Said bridge to be completed within one (1) year of filing of this Declara- tion; provided said completion is not prevented by any changes in governmental laws and/or regulations , or causes beyond the control of the Declarant. (C) As part of the common areas , the Declarant shall construct , install and fully equip a sewage disposal system, which system shall be approved by the Thurston-Mason County Health District and the Mason County authorities. The sewage disposal system shall be con- structed , maintained and operated in accordance with that certain agreement between those certain governmental authorities known as Mason County and the Thurston-Mason County Health District , all of the State of Washington , and the Declarant herein , a copy of which agreement is attached hereto, marked Exhibit "E" , and by this reference made a part hereof. Said Exhibit "E" shall be binding upon and inure to the benefit of the parties thereto , and their respective legal representatives , successors and assigns. It is further understood and agreed that the sewage disposal system, as described in Exhibit "E" , has been included in the determination of the total value of the Property, as defined above. Section 10. Description of the Limited Common Areas . -7- (A) The limited common areas shall consist of a parking space , security closets , and patios for each unit. , all of ctihic.h are depicted on the Surveyor 's Map described in Section 4 , above , and by this reference made a part hereof. Each limited common :area is depicted on said Map, with reference to the building and unit numbo r to which it appertains . Said limited common area is reserved for the sole use at all times by the owner or owners of said unit. (B) All personal property for the furnishing and equipping of all of the units and common areas shall be purchased or leased by or for the Association. Each owner shall pay his proportionate share of the original cost of the furnishings in his unit , in the same manner as set forth in subsection (C) below. (C) All charges which are chargeable to a given unit , such as electricity, which is metered , shall be paid by the owners of each unit in accordance with each owner's interest in said unit , i. e. , if an owner has a one-sixth interest in a unit , said owner shall be changed one-sixth of the cost assessable solely to said unit . (D) As each unit in subsequent Phases is occupied :for its intended use for one day or more , said unit shall be assessed by the Association for common expenses and those specific expenses defined in subparagraph (C) above. Until such time , the Declarant shall be responsible for all actual expenses incurred during the construction of said units and during the period the units are un- occupied. The Board shall determine the amount of said expenses . Section 11 . Pur2ose, Use and Authority. The Property shall, be used for residential , recreational and related purposes , or as otherwise approved by the Board. Section 12 . By-Laws and Administration. (A) The Declarant , as the original owner of all of the units , contemporaneously with the recording of a verified statement by a Registered Engineer or Registered Architect , certifying that said Surveyor's Map and Building Plans accurately depict the layout , location and dimensions of the units as built , shall adopt: the By- Laws , a copy of which is attached hereto as Exhibit "D" , and by this reference made a part hereof, for the management and administration of the Property and the units . (B) Without the written permission of Declarant , E Khibit shall not be amended until such time as 75% of all PhOsIes have -8- been conveyed to purchasers , or two years have elapsed between the time of eLmipletion of any Phase (as provided for herein) , and the beginning of construction of a subsequent Phase , whichever occurs first. (C) At such time as subparagraph (B) above is no longer applicable, the By-Laws may be amended by an affirmative majority vote cast at any duly held meeting at which a quorum of not less than 25% of the total percentage interests is present; provided, that written notice containing the proposed amendment; to the By-Laws be given by first class mail to all unit owners not less than. ten (10) , nor more than thirty (30) , days in advance of said meeting. (D) The By-Laws :shall provide for the election of a Board of Directors , hereinafter referred to as "Board" , from among the unit owners who shall have broad powers and duties to administer and govern the business affairs of the Association. (E) The Board may employ and authorize a Manager, or con- tract with and authorize a Managing Agent , to perform ma nagertal and administrative duties. The Board shall determine the necessity of and the amount of any bond to be required of the Manager or Managing Agent . Section 13. Authority and Duties of the Board. (A) The Board shall have full authority .and the duty to determine, establish, and administer all policies , rules and regula- tions governing the uses , purposes , and maintenance of the. Property and the units ; and govern the business affairs of the Association relating to the owners ' personal occupancy and use of the units and the Property; except for such authority as by the Act , or by this Declaration, or by the By-Laws , may not be delegated to the Board. Said authority and duties shall include , but are not limited to: (1) The determination of the type of activities to he conducted in the common areas , and the allocation of :apace thereto; (2) The establishing of all house rules and regulations pertaining to the use of the common facilities ; (3) The leasing or purchasing for cash or on terns on behalf of, and in the name of, the Association , of the personal property and fixtures for furnishing and equipping of the cc►nmon areas and the units ; (4) Repairing , maintaining , and replacing of the personal property in the common areas and the limited cominion property areas and the units ; -9- (.5) The employment or dismissal of personnel , and t.hc. contracting for professional services , as necessary for Oie efficient. management , maintenance and operation of the Condominium; (6) Keep a listing of all mortgagees of record , provided Said mortgagees advise the Association of their mortgage , and to pj v�_i notice to said listed mortgagees at the same time and in the same manner as required by the Board for the owners . Said mortgagees shall have the right to inspect records of the Association at reasonable times ; (7) Audits shall be provided yearly , as set forth in the Act (RCW 64 .33. 170) . Section_14. Common Expenses . The common expenses shall be charged to the unit owner and fractional owners according; to the percentage of their undivided interest in the common areas and facilities , as more particularly provided for in the By-Laws , and in accordance with the Act. Section 15. Limited Common Personalty Expenses . The expenses for purchase , maintenance and replacement of the limited common personalty shall be charged and assessed by the Association in accordance with Section 14, except as provided in Section 10 (b) above. Any damage , other than normal wear and tear, created by any unit owner shall be assessed against said owner, and be said owner 's personal responsibility for repairing or replacing of any damaged personal property. Section 16. Monthly Assessments . (A) Unit owners are obligated to pay nnvnthly assessments imposed by the Association on owners to meet all common expenses of the Property, including operations , maintenance , and reserves (for long term maintenance and emergencies) , of common areas and limited common areas , and which include premiums on insurance policies , in- cluding (but not limited to) liability insurance and property damage insurance to cover loss due to wind, fire , earthquake , or other hazard. The assessment shall be made according to the percentage interest of each unit owner. Such assessments shall include monthly payments to a general operation reserve and reserve fund for replacements and pay- ment of limited common personalty , for which provision shall be made in the By-Laws . Assessments shall be payable in advance on the first -10- day of each month , and shall bear interest at the rate. of per month if not paid on or before the tenth day of the month for which the same are due. (B) In addition to the other services provided .car the Blue Heron, the Developer has paid all application fees and passed all inspections required for membership in Resort Condominiums Inter- national , Inc. (RCI) . The purpose of membership in the RCf program is to allow Blue Heron owners the option of exchanging all. or portions of their ownership period for use at other member (RCI) resorts . In -view of the fact the Blue Heron Condominium has been officially_ accepted in the RCI program , each property owner is automatically eligible for membership in RCI . As part of his membership in RCI , each owner shall be assessed dues of $3.00 a month ($36.00 a year) , which shall be billed in the same manner as other property owner assessments . The failure of a property owner to pay they dues of $3.00 a month shall be viewed as a voluntary decision on the part of the property owner not to participate in the RCI program during the entire six-year membership period. Participation in the RCT program is completely voluntary. No legal steps shall be taken to enforce the payment of dues or participation in the program by the individual property owner should he choose not to participate in the RCI program. Section 17 . Collection of Assessments . (A) Security Deposit. Should a unit owner be delinquent paying his monthly assessments , the Board of Directors of the Associa- tion may, in its discretion , require such owner, from time to time, to make a security deposit not in excess of three months ` estimated monthly assessments , which may be collected as are other assessments . Such deposits shall be held in a separate fund, credited to such owner, and resort may be had thereto at any time when such owner is ten (10) days or more delinquent in paying his monthly or other assessment. (B) Foreclosure of Assessment Lien - Attorney 's Fee and Costs . In any action to foreclose a lien on any unit for non-payment of delinquent assessments . any judgment in favor of the Association rendered therein shall include a reasonable sum for attorney 's fees , and all costs and expenses reasonably incurred in pre.parati.1-ni for and in the prosecution of said action , in addition to taxable costs permitted by law. Section 18. Rental during, Foreclosure. From the time of commencement of any action to foreclose a lien against any unit for non-payment of delinquent assessments , the owner of such unit shall -11- pay to the Association the reasonable rental value of such unit to be fixed by the Board of Directors of the Association , and the plaintiff in any such foreclosure action shall be entitled to the appointment of a receiver to collect the same. Section 19 . Well and Water Works Restrictive Covenants . The Association shall be required to keep water supplied from the well on the Property herein described free from impurities which might be injurious to the public health, and in order to do so said Association covenants to prevent the following practices in the use of the Association's land which might contaminate the water supply: the Association agrees and covenants that it will not construct , maintain , or suffer to be constructed or maintained upon Condominium Property, and within 100 feet of the well situated on the Condominium Property, any of the following: cesspools , sewers , privies , septic tanks , drainfields , manure piles , garbage of any kind or description , barns , chicken houses , rabbit hutches , pig pens , or other enclosures or structures for the keeping or maintenance of fowls or animals , or storage of liquid or dry chemicals , herbicides or insecticides . Section 20. Water and Sewer Facilities and Distribution Lines . The Association , and all of the owners , shall , upun the-forma-- tion of any city, municipal water and/or sewer district , or any other municipality which is designed to operate water and/or sewer systems , may convey, unless otherwise required by law, assign and transfer , without cost , all interest in and to the existing water and/or sewer plants , facilities , and distribution lines to said municipal corpora- tion at such time as said municipal organization agrees to assume the responsibility for and total maintenance and operation of than existing facilities . Section 21. Reconstruction or Sale after Damage to, or Destruction of, the Property. In the event of damage to, or des- truction of, all or part of the Property to an extent that. the best interests of the owners might be served by selling the Property , the Board shall call a meeting of the Association by written notice , stating the purpose thereof_ , by first class mail , not less than ten (10) days in advance thereof. Said meeting shall. be held not later than sixty (60) days from date of occurrence of such damage or des- truction, and at such meeting 60% of the owners must vote in the: affirma- tive by written ballot by registered mail to the Board, or delivered in person, to sell the Property. In all other cases , the Board shall have the authority to promptly proceed with repair, reconstruction , or replacement of the Property. A quorum for this purposo ,hall_ be 60% of all. unit owners . -12- Section 22. Subdividing or Combining of Units or Common _Areas . Any owner of any unit or units may propose a plan for sub- dividing and/or combining of any unit or units , common areas and facilities , or limited common areas and facilities , in writing , together with all. related plans , specifications , legal instruments , and method of financing, to all the other unit owners . Upon receiv- ing the written consent of all other unit owners and all first mortgage holders of such proposal , the proposed subdivision or combining may proceed accordingly. Any such subdividing or combining shall be accurately depicted on a revised Survey Map and set of Building Plans , and be set forth in an Amended Declaration , both of which shall be duly recorded promptly upon completion of said subdividing or com- bining; provided, however, that the Board shall have the- authority to modify, subdivide , or combine any common area (or areas) and facilities within the existing perimeter of said area (or areas) , provided that no owner's access to his unit is thereby encroached upon. Section 23. Additions , Alterations , or Improvements by Unit Owners. No unit owner shall make any structural addition , alteration, or improvement in or to his unit without the prior written consent thereto of the Board. The Board shall have the obligation to answer Any written request by a unit owner for approval of a proposed structural addition , alteration , or improvement in such owner's unit , within thirty (30) days after the first regular or special meeting of the Board following such request , and failure to do so within th«- stipulated time shall constitute a consent by the Board to the pro- posed addition , alteration , or improvement. Any application to any governmental authority for a permit to make an addition, alteration , or improvement in or to any unit shall be executed by the Board. The Board shall not be liable to any contractor, subcontractor, or materialman , or to any person sustaining personal injury or property damage , for any claim arising in connection with such addition , alteration, or improvement. The provisions of this suction shall not apply to units owned by the Declarant as to undeveloped Phases . Section 24. Encroachments upon Common Areas . In the event a portion of the common elements encroaches upon any unit , or any unit encroaches upon the common elements , as a result of construction, reconstruction , repair, shifting , settlement or movement of .any portion of the Condominium, an easement for the encroachment and for maintenance of the same shall exist so long as the encroachment exists . Section 25. Service of Process . The name and address of the person residing in Mason County , Washington, to receive service of process in cases provided for in the Act , and in matters pertaining -13- to the Condominium shall be Robert L. Witmer Whose �s ac.d reu , is Box 59N, Union, Washington 98592 , until a Resident Manager of the Condominium is appointed , and who shall thereafter be rhe: de.,,ig nated person to receive service of process . Section 26. Rules of Construction. (A) If any provision of this Declaration , or the application thereof, is held invalid , the remainder of this Declaration shall not be affected. (B) No provision contained in this Declaration shall be deemed to have been abrogated or waived by reason of any failure to enforce the same. Section 27 . Amendment of Declaration. This Declaration may be amended by the vote of at least 60% of all unit owners , cast in person or by proxy at a meeting duly held in accordance: with the provisions of the By-Laws ; provided , however, that any such amendment: shall have been approved in writing by all mortgagees , contract vendors or beneficiaries , who are the holders of mortgages , deeds of trust , or real estate contracts , comprising first liens on any of the units , except that any amendment altering the value of the Proper.icy and of each unit , and the percentage of interest in the common areas and facilities , shall require the unanimous consent of 111 the unit owners . No such amendment shell be effective until recorded in the office of the Mason County Auditor. Section 28. Directors and By-Laws . The business and affair."' of the Condominium shall be managed by a Board of Directors con-- sisting of five (5) members , to be elected as provided in the By- Laws , at a meeting of the unit owners , and each director shall hold office until his successor is elected. Section 29. Waiver. No provision contained in this Declara- tion shall be deemed to have been waived by reason of any failure to enforce it , irrespective of the number of violations which may occur. Section 30. Personalty to be supplied by the Declarant . All personal property supplied by the Declarant prior Lo the filing of this Declaration, and on the premises of the Property, shall be deemed common property , and the Declarant further agrees to pay $2 ,000.00 towards the costs incurred by the Association for the purchase of the personal property described on Exhibit "J'"" , attached hereto and made a part hereof, which is to be a part of the common area as -14- hereinabove described , which obligation will expire within four (4) months from the time of the first meeting of the Association , as formed by the Declarant. Section 31. Limitation on Assessments . All assessments , as provided in Section 16 above , shall be exclusive of any costs or expenses incurred by the Declarant for the purpose of promoting sales , and which are not necessary for the maintenance of. the common areas in their present condition, or as subsequently developed per this Declaration. The expenses referred to in this section shall be the sole responsibility of the Declarant . Section 32 . Organizational Fee. At the time of the first closing of each one-sixth interest (TSU) , the purchaser shell pay, in addition to all other closing costs , the sum of $50.00 per TSU , which sum shall be used solely for the purpose of the cost of setting up and organizing the Association, which cost shall include (but shall not be limited to) the obtaining of accounting , legal , and management advice and services . IN WITNESS WHEREOF, INDEPENDENCE MORTGAGE TRUST, a. Georgia Business Trust , by its Advisor, PROVIDENT REALTY, INC. , has caused this Declaration to be executed by its duly authorized officers this day of October, 1975. INDEPENDENCE MORTGAGE TRUST, a Georgia Business Trust , by its .Advisor, PROVIDENT REALTY, , INC . By By -15- STATE OF CALIFORNIA ) Ss . COUNTY OF SAN DIEGO ) On this ___ day of October, 1975 , before me , the undersigned Notary Public in and for the State of California , duly commissioned and sworn, personally appeared and , to me known to be the and respectively, of PROVIDENT REALTY, INC . , Advisor to INDEPENDENCE MORTGAGE TRUST, a Georgia Business Trust , the corporation that executed the foregoing instrument , and acknowledged the said instrument to be the free and voluntary act and deed of said corporation , for the uses and purposes therein mentioned , and on oath stated that they were authorized to execute the said instrument , and the Survey Map incorporated therein , for and on behalf of Independence Mortgage Trust , a Georgia Business Trust . WITNESS my hand and official seal hereto affixed the day and year first above written. Notary Public in and for the State ( f California , residing at San Diego -16- This condominium, the Blue Heron, is situated in Sec. 33 , Twp. 22N, Rge. 3W. , W.M. , Mason County , Washington , and is composed of two parcels described as follows ; PARCEL 1 Lots 7 to 20 inclusive and Lot 32 in Block 103 of Hood Canal Land and Improvement Co. Addition to Union (Union City) as recorded in Volume l of Plats , Page 9 , TOGETHER with the south half of that part of vacated street adjoining Lots 7 to 18 inclusive on the north; EXCEPTING therefrom State Route No. 106. ,Also Lots 1 to 40 inclusive in Block 104 of Hood Canal Land and Improvement Co. Addition to Union (Union City) as recorded in Volume 1 of Plats , Page 9; TOGETHER with the westerly half of that part of vacated street adjoining Lots 18, 1.9 and 20 on the east , together with the north half of that part of vacated street adjoining said property on the south, and together with the south half of that part of vacated street adjoining said property on the north; EXCEPTING therefrom State Route No. 106. Also Lots 15 , 16 and 17 and the south 80 feet of Lots 18 to 30 inclusive in Block 105 of Hood Canal Land and Improvement Co. Addition to Union (Union City) as recorded in Volume 1 of flats , Page 9; EXCEPTING therefrom the north 20 feet of said Lot 15; TOGETHER with the westerly half of that part of vacated street adjoining; said property on the east , and together w3.th the north half of that part of vacated street adjoining said property on the south; SUBJECT to right of way over the north 30 feet of the south 80 feet of said Block 105 except over Lot 16 In said Block 105 conveyed to C . M. Pixley by deed dated June 1 , 1931 , and recorded in Volume 55 of deeds , page 52 in Mason County; EXCEPTING therefrom State Route No. 1,06 , which PARCEL 1 is more particularly described as follows : Commencing at the southwest corner of Section 33 , Township 22 North, Range 3 West , W.11. , in Mason County, Washington; thence_ N 5°40'04" E along the west line of said subdivision 1 ,821.23 feet to a point of intersection with the center Line of Sprague Avenue; thence S 84°11 '30" E along said center line 688.55 feet to a point of intersection with the easterly margin of Smith Street (Orre Nobles Road) and the Point of Beginning; thence N 5"40 ' 12" E along; said easterly margin 339.97 feet; thence S 84°10 '15" E 520.00 feet to a point on the westerly line of Lot 16 , Block 105; Union City, recorded :in Volume 1 , .Pages 8-9 , records of Mason County, Washington; thence F; 5°40111" E 29.97 feet; thence S 84010'06" E 58. 0 feet to tie westerly margin of State Route No. 106 (Union to Holyoke Creek) aF filed .in the office of the State Highway Department in O:l.yinpia , Washington , on a map dated January 1921 , revised Yay 1922 ; thence along said wes k,.erly margin and along the map right of way S 30`42 '56" E (S 39`*39 ' E map) 306.98 feet EXHIBIT "Air to the beginning of a curve to the right with a radius of 256 .53 feet , through a central angle of 49*42 '00" an arc distance of 222 . 52 feet to a point of tangency; thence S 18'59 '04" W along said west margin 42.89 feet to a point on the south line of Lot 20, Block 103 , of said plat; thence N 84012 '00" W 433.53 feet to the N. E. corner of Lot 32 , Block 103 of said plat; thence along the east line of said Lot 32 S 5"40 '12" W 99.94 feet to the north margin of Mason Avenue; thence N 84°12 '30" W along said north margin 40.00 feet to the S . W. corner of Lot 32; thence along the west line of said Lot 32 N 5°40 ' 12" E 99.94 feet to the northwest corner of said Lot 32; thence N 84°12 '00" W 80.00 feet to the southwest corner of Lot 7 of said plat; thence N 5040 ' 12" E along the extended west line of said Lo' t 7 129.96 feet to the center line of vacated Sprague Avenue; thence N 84011 '30" W along said vacated center line 240.00 feet to the Point of Beginning; containing 7.445 acres , more or less ; LESS the following described parcels which may be annexed to this condominium as subsequent phases under the declaration , and which are described as follows : PHASE II: Commencing at the southwest corner of Section 33 , Township 22 North, Range 3 GJest , W.M. , in Mason County, Washington; thence N 5°40 '04" E along the west line of said subdivision 1 ,821.23 feet to a point of intersection with the center line of Sprague Avenue; thence S 84°11 '30" E along said center line 688 .55 feet to a point of inter- section with the easterly margin of Smith Street (Orre Nobles Road) ; thence S 84'11 '30" E 240.00 feet along the center line of vacated Sprague Avenue to the westerly lint: of Lot 7 , Block 103, Plat of Union City as recorded in Volume 1 of Plats , Page 9 , records of Mason County, Washington, extended northerly; thence S 5"40 '12." W 129.96 feet to thc� southwest corner of said Lot 7; thence S 84"12 '00" E 553.53 feet to the westerly margin of State Route No. 106 (Uni.on to Holyoke Creek) as filed in the office of the State Highway Department in Olympia , Washington, on a map dated January 1921 , revised May 1922; thence along said westerly margin and along the map right of way N 18°59104" E 42 .89 feet to a point of tangency; thence northerly along a curve to the left having a radius of 256.53 feet , through a central angle of 26009 '33" 117. 12 feet to a point on the curve whose center lies S 82049 '31" W and the Point of Beginning; thence N 84°14 '38" W 215 .63 feet; thence N 5"45 '22" E 122 .00 feet; thence S 84"14138" E 152 .00 feet to the westerly margin of said SR 1061 therco S 30042156" E , 33.47 feet to a pointy of tangency; thence southerly along a curve to the right having a radius of 256 .53 feet through a central angle of 23032 '27" , 105.40 feet to the Point of Beginning; containing 0.532 acres , more or less . PHASE III : Commencing at the southwest corner of Section 33 , Township 22 North , Range 3 West , W.M , , in Mason County, Washington; thence N EXHIBIT "A" (2) 5040 '04" E along the west line of said subdivision 1 ,821.23 feet to a point of intersection with the center line of Sprague Avenue; thence S 84°11 '30" E along said center line 688.55 feet to a point of inter- section with the easterly margin of Smith Street (Orre Nobles Road) ; thence S 84011 '30" E , 240.00 feet along the center line of vacated Sprague Avenue to the westerly line of Lot 7 , Block 103 , Plat of Union City as recorded in Volume 1 of Plats , Page 9 , records of Mason County , Washington, extended northerly; thence S 5040 ' 12" W, 129.96 feet to the southwest corner of said Lot 7; thence S 84012 '00" E , 533.53 feet to the westerly margin of State Route No. 106 (Union to Holyoke Creek) as filed in the office of the State Highway Department in Olympia , Washington, on a map dated January 1921 , revised May 1922; thence along said westerly margin and along the map right of way N 18°59 '04" E , 36.67 feet to the Point of Beginning; thence N 84012 '00" W, 213. 91 feet; thence N 5°45 '22" E , 122 .00 feet; thence S 84"14 '38" E, 215.63 feet to the westerly margin of said SR 106; thence southerly along a non- tangent curve to the right whose center bears S 82049 '31" W, 256.53 feet distant; thence through a central angle of 26009 '33" , 117 . 12 feet to a point of tangency; thence S 18"59 '04" W, 6.22 feet to the Point of Beginning , containing 0.616 acres , more or less . PHASE IV: Commencing at the southwest corner of Section 33 , Township 22 North , Range 3 West , W.M. , in Mason County , Washington; thence N 5"40 '04" E along the west line of said subdivision 1 ,821 .23 feet to a point of intersection with the center line of Sprague Avenue; thence S 84°11 '30" E along said center line 688.55 feet; thence S 84°11 '30" E , 240.00 feet along the center line of vacated Sprague Avenue to the westerly line of Lot 34, Block 104, plat of Union City as recorded in Volume 1 of Plats , Page 9 , records of Mason County, Washington, extended southerly and the Point of Beginning; thence N 5°40 '12" E along the extended westerly line of said Lot 34 , 53.00 feet; thence S 84°12 '00" E, 95 .00 feet; thence S 5°40 ' 12 'W, 182 .96 feet; thence N 84012 '00" W, 95.00 feet to the southwest corner of Lot 7 , Block 103; thence N 5"40 ' 12" E along the west line of said lot extended 129.96 feet to the Point of Beginning; containing 0. 399 acres , more or less . PHASE V: Commencing at the southwest corner of Section 33, Township 22 North, Range 3 West , W.M. , in Mason County, Washington; thence N 5"40 '04" E along the west line of said subdivision 1 ,8'21.23 feet to a point of intersection with the center line of Sprague Avenue; thence S 84°11 '30" E along said center line 688.55 feet ; thence S 84°11 '30" E continuing along said center line of vacated Sprague Avenue 145.00 feet to the Point of Beginning; thence N 5''40' 12" E , 222.41 feet; thence S 84"10 '15" E , 95.00 feet ; thence S 5"40112" W, 222 .38 feet; thence N 84'11 '30" W, 95.00 feet to the Point of Beginning; containing 0.485 acres , more or less . E,XHTBIT "A" (3) PHASE VI : Commencing at the southwest corner of. Section 33 , Township 22 North, Range 3 West , W.M. , in Mason County, Washington; thence N 5'40 '04" E along the west line of said subdivision 1 ,821.23 feet to a point of intersection with the center line- of Sprague Avenue; thence S 84011 '30" E along said center line 688.55 feet to a point of inter- section with the easterly margin of Smith Street (Orre Nobles Road) ; thence N 5°40' 12" E along said easterly margin 339.97 feet; thence S 84010 '15" E, 145.00 feet to the Point of Beginning; thence continuing S 84010 '15" E, 95.00 feet; thence S 5"40 ' 12" W, 117 .50 feet; thence N 84010 ' 15" W, 95.00 feet; thence N 5'40 ' 12" E, 117 .50 feet to the Point of Beginning; containing 0.256 acres , more or less. PARCEL 2 TOGETHER with Lots 4, 5 and 6 in Block 107 and Lots 1 , 2 and 3 in Block 108 of Hood Canal Land and Improvement Co. Addition to Union (Union City) as recorded in Volume 1 of Plats , Page 9; TOGETHER with that part of vacated street lying between said blocks , together with the easterly half of vacated street adjoining said property on the west , amd together with all tidelands as conveyed by State of Washington lying in front of, adjacent to and abutting on said property; EXCEPTING therefrom State Route No. 106 and excepting also tract conveyed to C . M: Pixley by deed dated June 1 , 1931 and recorded in Volume 55 of Deeds , Page 522 , in Mason County, Washington; which PARCEL 2 is more particularly described as follows : Commencing at the southwest corner of Section 33 , Township 22 North , Range 3 West , W.M. , in Mason County, Washington; thence N 5"40'04" E along the west line of said subdivision 2 ,211.49 feet to a point on the -center line of Block 88 , extended westerly, Plat of Union City as recorded in Volume 1 of Plats , Page 9; thence S 84`10 '00" E along the centerlines of Blocks 88 and 105 , 1 ,252 .00 feet to the west margin of State Route 106 (Union to Holyoke Creek) as filed in the office of the State Highway Department in Olympia , Washington, on a map dated January 1921 , revised May 1922; thence continuing S 84°10 '00" E, 74.69 feet to the easterly right of way and to the westerly extension of the north line of Lot 4, Block 107 , and to the northwesterly corner of a tract of land conveyed to C . M. Pixley by deed dated June 1 , 1931 , and recarded in Volume 55 of Deeds , Page 522 in Mason County, Washington; thence S 30042 '56" E , 80.00 feet to the Point of Beginning; thence N 59"17 '04" E , 12.00 feet; thence N 30`42156" w, 50.00 feet; thence N 59017 '04" E , 28.47 feet to the northeast corner of land conveyed to C. M. Pixley .by said deed, and to the westerly extension of said north line of Lot 4; thence S 84` 10'00" E, 101.45 feet along the north line of said Lot 4 to the line of Mean High Tide (Ordinary High Tide) ; thence meandering southeasterly along the line of Mean High Tide the following courses and distances : S 40°16 '26" E, 64.21 feet; S 56°37 '40" E, 126 .94 feet; S 32040 '48" E, 199.9.5 feet to the south line of Lot 3 , Block 108; thence N 84''11 '00" W along said south line 244.98 feet to EXHIBIT "A" (4) the easterly right of way of said state highway; thence northwesterly along said right of way along a non-tangent curve to the left whose center bears S 65`32 '54" W', 316 .53 feet distant through a central angle of 6'15 '50" , an arc distance of 34.61 feet to a point of tangency; thence N 30a42 '56" W, 207 .37 feet to the Point of Beginning; con- taining 1 .260 acres , more or less ; together with all tidelands as conveyed by State of Washington lying in front of, adjacent to and abutting on said property. TOGETHER with an easement for ingress , egress and utilities over and across proposed phases II , III , IV , V , and VI according to the des- cription on sheet 2 of survey map as described herein, and which legal descriptions are more particularly described as Phases II , III , IV , V, and VI . Said easements shall be in full force and effect until such time as the Property includes Phases II , III , IV, V, and VI , as part of the common area per the declaration or said phase or phases become a part of the Property in accordance with section 7 of the declaration. The purpose of this easement is to assure access to and from the Property across said phases . For survey map location of Phase I see sheet 4 of 8. SUBJECT TO: 1 . As to the tidelands : Reservation of oils , gases , coal , ores , minerals and fossils , together with right: to enter and explore for same, etc . , and reservation of right to acquire rights of way for private railroads , skid roads , flumes , canals , watercourses , etc . , with provision for compensation for damages caused by exercise of such rights , etc . , made by State of Washington in deeds , dated June 6 , 1911 , December 1.5 , 1919 and August 26 , 1952 and recorded in Volume 25 of Deeds , page 86 , Volume 36 of Deeds , page 361 and Volume 160 of Deeds , page 34 respectively. 2 . As to the Lot 15 , except the north 20 feet thereof and the north 30 feet of the south 80 feet of Lots 18 to 30 inclusive in Block 105 : Any rights in the right of way conveyed to C . M. Pixley by deed dated June 1 , 1931 and recorded in Volume 55 of Deeds , page 522 . 3 . Contract of Sale dated October 30 , 1972 , and recorded November 16 , 1972 , under Auditor's File No. 274618; Seller: William E . Smith and Mardell Smith , husband and wife Purchaser: The Krusz Company, Inc . (Excise sale tax paid under Receipt No. 33564) The Seller 's interest was assigned and said premises conveyed by Seller 's Assignment of Contract and Deed dated May 2 , 1973 , recorded May 4 , 1973 , under Auditor 's File No. 278994; Assignee: Jim Shumate and Margaret F. Shumate , husband and wife (affects Parcel 5) EXHIBIT "A" (5) This property is to be conveyed by warranty deed to the Condominium Property as common areas if and when it becomes necessary, per Exhibit "E" of the Blue Heron Declaration of Condominium. EXHIBIT "A" (6) VALUE OF PROPERTY , PERCENTAGE OF OWNERSHIP OF UNDIVIDED INTEREST AND VOTING RIGHTS The value of each unit and fractional unit , and the percentage of undivided interest in the Common Areas and Facilities for all Buildings in Phase I , which is submitted to this Declaration , for all purposes , including voting and assessment , are as set forth below. Bldg/Unit Appr. Sq. No. of 1/6 Fr. Unit 1/6 Fr. Unit Numbers Footage Bedrooms Unit Value % (TSU) Value (TSU) % 1-1 1104.28 2 72 ,000 4.8193 12 ,000 .8032 1-2 813.61 1 54 ,000 3.6144 9 ,000 .6025 1-3 813.61 1 54 ,000 3.6144 9 ,000 .6025 1-4 813.61 1 54,000 3.6144 9 ,000 .6025 1-5 1104.28 2 72 ,000 4.8193 12 ,000 .8032 4-1 1460.28 3 84 ,000 5.622.5 14 ,000 .9371 4-2 1161.61. 2 72 ,000 4.8193 12 ,000 .8032 4-3 1161.61 2 72 ,000 4.8193 12 ,000 .8032 4-4 1161.61. 2 72 ,000 4.8193 12 ,000 .8032 4-5 1161.61 2 72 ,000 4.8193 12 ,000 .8032 4-6 1161.61 2 72 ,000 4.8193 12 ,000 .8032 4-7 1161.61 2 72 ,000 4.8193 12 ,000 .8032 4-8 1441 .61 3 84 ,000 5.6225 14 ,000 .9371 8-1 1460.28 3 84 ,000 5.6224 14 ,000 . 9371 8-2 1161.61 2 72 ,000 4.8193 12 ,000 .8032 8-3 1161 .61 2 72 ,000 4.8193 12 ,000 .8032 8-4 1161.61 1? 72 ,000 4.8193 12 ,000 .8032 8-5 1161.61 2 72 ,000 4.8193 12 ,000 .8032 8-6 1161 .61 2 72 ,000 4.8193 12 ,000 .8032 8-7 1161.61 2 72 ,000 4 .8193 12 ,000 .8032. 8-8 1169.61 2 72 ,000 4.8193 12 ,000 .8032 Totals 1 ,494,000 100.0000 249 ,000 16 .6666 EXHIBIT "B" TIME SHARING SCHEDULE 1975 MAY 2 F NOV. 28 F JUNE 25 F JAN. 21 F 9 G DEC. 5 G JULY 2 G 28 G 16 H 12 H 9 H FEB. 4 H 23 J 19 J 16 J 11 J 30 K 26 K 23 K 18 K JUNE 6 L 1976 JAN. 2 L 30 L 25 L 13 F 9 F AUG. 6 F MAR. 4 F 20 G 16 G 13 G 11 G 27 H 23 H 20 H 18 R JULY 4 J 30 J 27 J , 25 J 11 K FEB. 6 K SEPT. 3 K APR. 1 K 18 L 13 L 10 L 8 L 25 F 20 F 17 F 15 F AUG. 1 G 27 G 24 G 22 G �^ 8 H MAR. 5 H OCT. 1 H 29 H 15 J 12 J 8 J MAY 6 J 22 K 19 K 15 K 13 K 29 L 26 L 22 L 20 L SEPT. 5 F APR. 2 F 29 F 27 F 12 G 9 G NOV. 5 G JUNE 3 G 19 H 16 H 12 H 10 H 26 J 23 J 19 J 17 J 1 OCT. 3 K 30 K 26 K 24 K 10 L MAY 7 L DEC. 3 L JULY 1 L 17 F 14 F 10 F 8 F 24 G 21 G 17 G 15 G 31 H 28 H 24 H 22 H NOV. 7 J JUNE 4 J 31 J 29 J 14 K 11 K 1977 JAN. 7 K AUG. 5 K 21 L 18 L 14 L 12 L EXHIBIT "C" BY-LAWS of BLUE HERON CONDOMINIUM ARTICLE 1 ADOPTION AND APPLICATION OF BY-LAWS Section 1. Declaration , Surveyor's Map, and Floor Plans . A Declaration of Condominium, establishing; Blue heron Condominium, pursuant to The Horizontal Property Regimes Act of the Revised Code of Washington (Chapter 64. 32) , was filed under Auditor's Receiving No. ___, and recorded in Volume _ , at pages r.hrotigh of the and Book Records of the Auditor of Mason County. A ;purveyor's Map and Set of Building Plans for this Condominium was recorded under Auditor 's Filar No. in Volume , at pages through _, in the Book of Condominiums , records of the Auditor of Mason County. .� Section 2. Adoption. (A) Independence Mortgage Trust , a Georgia Business Trust , is the Developer of the Property and the original owner of all the units in this Condominium , and as such is the Sponsor or Blue Heron Condominium. (B) The Sponsor shall constitute the Owners ' Association as of the date of recording of a verified statement of a rc.Ristered engineer, or a registered architect , certifying that the Surveyor 's Map and Set of Building flans of this Condominium accurately depict the layout , location, and dimensions of the Units , �js huilt . (C) The Sponsor shall cause the Association to adopt there By-Laws as of the date of recording of said verified statement , and these By-Laws shall thereupon beconie effective f;ir the management t and administration of this Condominium. Section 3. Application. The provisions (if those By-Laws are applicable to the property and the units , and Lo the administra- tion , use , purposes , and occupancy thereof. All owners of units , their successors , heirs , a :^igns , or mortgagees , and any other user: of this Condominium, are subject to these by-Laws , the bizcl:ration , and rules and regulations pertaining to the use :aod aperat ins l of th is s Condominium. The accepLinee of a deed to , or coi-jveyance of, of the entering of the premises , constitutes an acc.-eprance 0 4t-te provisio,i of said Declaration and these By-Laws , rind an ag,rt�,=,mt,nt r.o cOmplN therewith and to be bound thereby ARTICLE' II DEFINITIONS Section 1. Recital . Ali terms used herein are defined in The Horizontal Property Regimes Act of the State of Washington (RCW Chapter 64.32) , and/or the Blue Heron Declaration , and shall have the same meaning as in the Act and/or Declaration , and are in- corporated herein and made a part hereof. ARTICLE. III OWNERS ' ASSOCIATION Section 1. Constitution. Under the authority of the Act , and pursuant to the Declaration , there is constituted the Blue Heron Condominium Owners ' Association, which shall be comprised of every owner of i unit within this Condominium. Each owner, by his acceptance of a deed to , or a conveyance of, a unit , thereby agrees to and doe.,,; become simultaneously therewith a member of the Association. Section 2. Function. The function of the Association shall be the administration and management of the busiiiess and purposes of the owners pertaining to the operation and maintenance of this Condominium , through their elected Board of Directors and officers , in accordance with the Act , the provisions of the Declaration , and these By-Laws . Section 3. First Mz.eting. Within thirty (30) drays after- all units in the First Phase shall have been sold and closed (or earlier at the sole option of the Sponsor) , the Sponsor shall hold the first annual meeting of the unit owners , who shall be notified in writing by the Sponsor o3: the time and place of such meeting. At said meeting, the owners shall determine the time for the annual mceti.ncgs of the Association, shall elect a new Board of Directors , and shall tran�;ac.t any other business that may properly come before the Association; provided , however, that the first annual meeting referred toIterein shall be held no later than two (2) years following recording of a verified statement of a registered engineer or registered architect , certifying that the Surveyor's I-lap and Set of Building Plains for Phase I cf t-his Condominium accurately depict the layout , location , and dimensions 'of each unit , as built . This section is ;urther to the provisions of' Article IV , Section (B) , portain.ing 'Co the Declarant 's right to appoint r;�embers of the Board. The oianers of units in Subsequent upoll the compl.erion of building or buildings in any 11h.-isv , which IFI-is hc n EXHIBIT "D" (') certified by a registered architect: , engineer , or land ,.urveyor , rug provided for in Lhe Declaration, shall automatically become members of the Association, subject to all the rights , am-ities , and obligations under the Declaration and these By-Laws , including , but not lianite..1 to, voting. ;section 4. Place of MeetiqZ. Meetings of the Association shall be held on the premises of thisCondomillitlln, or ac such other suitable place convenient: to the owners as may be designated by the Board. Section 5. Purpose of Annual Meetings . The annual meeting, shall be for the purpose of the owners ' election of Directors , receiving of reports from the Board as to the status of the Associa- tion 's business affairs , and voting on matters required by the Act , the Declaration, and these fay-Laws . Section 6. Special Meetings . It shall be the duty of the President to promptly call a special meeting of the Association , if he is so directed by resolution of the Board, or upon petition signed and presented to the Secretary by owners having a total of 10% per^ tentage interests. A special meeting shall not be called until .-after the first meeting as provided for in Section :3 of this Article. Section 7. Notice of MeetinKs . Notice of all meetings shall be required as provided under Section 1 of Article VI of these By- Laws. Section 8. Quorum_. Except as otherwise provided in these By-Laws , the presence in person, or by proxy, of owners having 25% of the total authorized percentage votes of all owners shall con- stitute a quorum for the conduct of business at all meetings of the Association. Section 9. Order of Business . The business of the Associa- tion shall be conducted in accordance with Roberts ' Rules of Order, and the order of business -at all meetings of the owners shall be as follows : (a) Roll call; (b) Pr6of of notice of meeting; (c) Reading of minutes of preceding meeting; (d) Reports of officers ; EXHIBIT "W' (3) (e) Report of Board; (f) Report of conanittees ; (g) Election of inspectors of election (when so required) ; (h) Election of members of the Board (when so required) ; (i) Unfinished business ; and, (j) New business . Section 10. Votine,. Voting shall be on a unit basis , and the percentage vote which an owner shall cast is that percentage. interest established by the Declaration appertaining to his respective: unit. In the case of multiple ownership of a unit , the percentage vote for that unit shall be exercised by each fractional owner, in accordance with his fractional interest. Votes and fractional votes are to be cast at the time of the meetings in person by the owner, or his proxy, who need not be an owner. Written notice of the designation of a proxy shall be filed with the Secretary of the Association by the owner prior to the appointed time of each meeting. Section 11. Adjournment of Meetings . If any meet:i.ng of owners cannot be held because a quorum has not attended, a majority in percentage interests of the owners who are present at such meeting , either in person or by proxy, may adjourn the meeting from time to time until a quorum, as aforesaid, be present. ARTICLE IV BOARD OF DIRECTORS Section 1. Qualification and Term. (A) The Sponsor, as owner of all units and thereby compris- ing the Association , shall, contemporaneously with the adoption of these By-Laws by the Sponsor, nominate and elect five persons to act as the first Board of Directors , who shall have all the authority that is granted to, and the duties that are required of, the Board of Directors by the Declaration and these By-Laws . (B) The tern of office of the first Board of Direcrors , or their replacements , as the case may be, the members of which are appointed by the Declarant (and who need not be owners) , shall be until their successors have been elected and qualified rrrit the first EXHIBIT "D" (4) meeting or the Association, as hereinabove provided. Such meeting shall be held not more than thirty (30) days from the data of Such original notice, and at said meeting members of the, first Board of Directors shall preside and shall be succeeded by a Board composed of five members , who must be unit owners . The term of office of membet:s of the Board elected at such first meeting; shall be until the next annual meeting. Thenceforth , said term shall be for one year, or until a successor has been elected and qualified; provided, Declarant: shall have the right to elect a majority of the Board until such time as 75% of all Phases have been conveyed to purchasers , or two years have elapsed between the time of completion of any Phase and the com- mencement of construction of a subsequent Phase , whichever occurs first; and thereafter, and so long as the Sponsor has two or more units for sale in the Condominium, it: shall be entitled to elect one member of the Board. Section 2, uorum of the Board. At all meetings of the Board , a majority of the members of the Board shall constitute a quorum for the transaction of all business , and the vote of a majority of the members of the Board present in a meeting at which a quorum is present shall constitute the decision of the Board. if, at any meeting of the Board, there shall he less than a quorum prt. enr, a majority of those present may adjourn the meeting from time to time. At any such adjourned meeting at which a quorum is present . any business which might have been transacted at the meeting originally called may be transacted without further notice. Section 3. Organization Meeting. The first meeting, of the members of the Board following the annual meeting; of the Association shall be held within ten (10) days thereafter , at such time and place as shall be fixed by the Board at the meeting at which such Board shall have been elected , and no notice shall be necessary to the newly elected members of the Board in order, legally , to constitute such meeting , providing a majority of the whole Board shall be present thereat . Section 4. MeetigEs_ of the Board. Meetings of the Board shall be held at such time and place as determined by the President , or as requested in writing to the Secretary by three members of the Board. At least three meetings of the Board of Directors shall beta held during a fiscal year. Section 5. Removal of Members of the Berard. At any annual. or special meeting of the Association , any one or more of 04, morrioers of the Board, who have been elected by the Association (is distinguished EXHIBIT "D" (5) from those appointed by Declarant) , may be removed with or without: cause by a majority vote , and a successor may then and there , or thereafter, be elected to fill the vacancy thus created. Any member of the Board whose removal has been proposed shall be given an opportunity to be heard at the meeting; provided , however, that any Board member missing two consecutive Board meetings may be removed by Board action. Section 6. Vacancies . Vacancies in the Board, caused by any reason other than the removal of a member thereof by a vote of the owners , shall be filled by vote of a majority of the remaining members of the Board at a special meeting of the Board held for that purpose promptly after the occurrence of any such vacancy, even though the members present at such meeting may constitute less than a quorum. Each person so elected shall be a member of the Board for the remainder of the unexpired term, and until a successor shall be elected and qualified at a special meeting called for that: purpose , or the next annual meeting of the Association. In the event of the election of a Director at a meeting at which a quorum is not present , the Board shall call a meeting of the Association to be held within thirty (30) days , to either confirm the election of the Director or Directors , or to elect another Director or Directors. Section 7 . Compensation. No member of the Board shall receive compensation from the Association for acting as such, unless approved at an Association meeting called for that purpose. Section 8. Powers and Duties . The Board of Directors , sub- ject to the Declaration and these By-Laws , shall have the authority and the duty to determine, establish , and administer all policies , rules and regulations governing the uses , purposes , and operation of the property and the units. The Board shall govern the business of the Association and this Condominium; except for such authority as by the Act , or by the Declaration, or by these By-Laws , may not be delegated to the Board of Directors . Said authority and duties shall include , but are not limited, to: (A) The determination of the types of activities to be con- ducted in the common areas , the allocation of space, if any, thereto, and the establishing of activities therein; (B) The establishing of all House Rules and Regulations pertaining, to the common areas and facilities , and their activities ; (C) The leasing or purchasing , for cash or on terns , of all articles of common personalty for use in the common areas and the EXHIBIT "D" (6) units , as is necessary to commence operations , or, to replace the original personal property; (D) Repairing and maintaining the common areas and limited common areas personal property; (E) The employment or dismissal of personnel and the con- tracting for professional services as necessary for the efficient management , maintenance, and operation of this Condominium; (F) The employment and authorizdtion of a Manager, or con- tracting with and authorizing a Managing Agent , to perform managerial and administrative duties , in either case under a fidelity bond; (G) Opening and maintaining bank accounts on behalf of the Association , and designating the signatories for deposit's and with- drawals in connection therewith; (H) Purchasing , and carrying at all times insurance , insuring against destruction of, or damage to, physical property , and insuring against claims , damages , or liability, as provided in Section 6 of Article VIII hereof; (I) Repairing, reconstructing , and replacing the property in the event of damage thereto, or destruction thereof, as provided in the Declaration; (J) Preparing an annual budget , keeping books of accounts , crediting common income, charging common expenses , distributing common profits , and collecting assessments ; (K) Keeping detailed records of the resolutions and minutes of the meetings of the Board of Directors , and the minutes of the meetings of the Association. ARTICLE V OFFICERS Section 1. Designation. The principal officers of the Association shall be the President , Vice President , Secretary and Treasurer, all of whom shall be elected by the Board. The Board may appoint such other officers as it may deem necessary. Only the President and Vice President must be members of the Board of Directors. The offices of Secretary and Treasurer may be combined in one person. EXHIBIT "D" (7) Section 2. Election of Officers . Officers shall be elected annually by the Board at the organization meeting of each new Board , and shall hold office at the pleasure of the Board. Section 3. Removal of Officers . Upon the vote of a majority of the members of the Board, any officer may be removed , either with or without cause, and his successor may be elected at any regular meeting of the Board, or at any special meeting of the Board called for such purpose. Section 4. President . The President shall be the chief executive officer of the Association. He shall preside at all meetings of the Association and of the Board. He shall have all the general powers and duties which are usually vested in the office of a President of an Association , including, but not limited to, the power to appoint from among the owners any committees which he decides is appropriate, to assist in the conduct of the affairs of the Association. Section 5. Vice President . The Vice President shall take the place of the President and perform his duties whenever the President shall be absent or unable to act. If neither the President nor the Vice President be present or able to act , the Board shall appoint some other member of the Board to act in the place of the President , on an interim basis . The Vice President shall also per- form such other duties as shall, from time to time, be assigned to him by the Board or by the President. Section 6. Secretary. The Secretary shall keep the minutes of all meetings of the Association and of the Board; he shall have charge of such books and papers as the Board may direct; and he shall have all the general powers and duties usually vested -in the office of the Secretary of an Association. Section 7. Treasurer. The Treasurer shall have the respon- sibility for Association funds and securities , and shall be respon- sible for the keeping of full and accurate financial records and books of account, showing all receipts and disbursements , and for the preparation of all required financial statements . He shall have the duty to keep all moneys and other valuable effects in th�� name of the Association in such depositories as may from time to time be designated by the Board, and he shall , in general , have all the powers and duties which are usually vested in the Treasurer of an Association. Section 8. Vacancies . Vacancies of any office arising from any cause may be filled by the Board at any regular or special meeting. EXHIBIT "D" (8) Section 9. Compensation of Officers . The salaries , if any, of all officers of the Association shall be as fixed by the Board. ARTICLE VI NOTICES Section 1. Notices to Owners . The Secretary shall give notice to the owners and fractional owners and the first: mortgage holders of all meetings of the Association by first class mail , at least ten (10) days , and not more than thirty (30) days , prior to the date of each meeting, stating the purpose , time and place thereof. All notices to owners and fractional owners and first mortgage holders shall be sent to their respective addresses , which shall be designated by them in writing to the Board. All notices shall be deemed to be given when mailed. Section 2. Notices to the Board. All notices to the Board shall be sent by registered or certified mail , in care of the Manager, to the address of this Condominium. Section 3. Notices to Members of the Board. Notice of meetings of the Board , stating the time, place and purpose thereof, shall be given to each member of the Board in writing by the Secretary at least five (5) business days , and not more than thirty (30) days , prior to the date of such meeting. Section 4. Waiver of Notice. Any member of the Board may, at any time, waive notice of any meeting of the Board in writing , and such waiver shall be deemed equivalent to the giving of notice thereof. Attendance by a member of the Board at any meeting of the Board shall constitute a waiver of notice by him of the time and place thereof. If all the members of the Board are present at any meeting of the Board, no notice shall be required, and any business may be transacted at such meeting. ARTICLE VII CONTRACTS AND AGREEMENTS Section 1. Contracts , Deeds , Etc . All contracts , deeds , leases , and other formal instruments and agreements , shall be executed in the name of the Blue Heron Condominium Owners ' Association by the President and Secretary, as officers of the Association, except thet the Board may, at its discretion, authorize the execution of such documents by another person or persons , and any such documents or agreements shall be binding upon the Association. EXHIBIT "D" (9) Section 2. Liability of the Board of Directors , The members of the Board shall not be liable to the owners for any mistake of judgment , negligence , or otherwise, except for their own willful misconduct or bad faith; nor shall they be personally liable for contractual liability arising out of contracts made by the Board on behalf of the Association, unless any such contract shall, have been made in bad faith or contrary to the provisions of the Declaration , or of these By-Laws; and the owners shall defend, hold harmless , and indemnify the members of the Board accordingly. Section 3. Liability _of Owners . -The liability of any owner, arising from the conduct of business by the Association , shall be limited to the ratio his percentage interest bears to the total liability thereunder. ARTICLE VIII OPERATION OF THE PROPERTY Section 1. Common Expenses . The Board shall , from time to time, and at least annually , prepare a budget for the Condominium, determine the amount of the common expenses required to meet the common expenses of the Condominium, and allocate and assess such common expenses against the unit owners , according to their respective percentage interests. The common expenses shall include , among other things , the cost of all insurance premiums on all policies of insurance required to be or which have been obtained by the Board pursuant to the provisions of Section 2 of this Article VIII , and the fees and disbursements of the insurance trustee. The common expenses may also include such .amounts - as the Board may deem proper for the operation and maintenance of the Condominium property, including , without limitation, an amount for working capital of the Condominium, for a general operating reserve, for a reserve fund for replacements , and to make up any deficit in the common expenses for any prior year. The Board shall advise each unit owner in writing of the amount of common charges payable by him, and shall furnish copies of each budget on which such common charges are based, to all unit owners and to their mortgagees . Section 2. Insurance. (A) The Board shall purchase, and carry at all times , in- surance for indemnification of loss of physical property, both personal and real , and whether owned independently or in common , for the benefit of the Association and unit owners . The minimum perils to be insured shall be for fire , broadened with perils included in the EXHIBIT "D" (10) I customary extended coverage endorsement , and vandalism and malicious mischief. Coverage to be on a full replacement basis to permit neces- sary reconstruction or replacement , without discount for accrued de- preciation. The insurance program shall be annually reviewed by the Board. (B) The Board shall purchase and carry at all times liability insurance with respect to the premises and all operations , which coverage shall insure against any and all claims , damages , or liability on account of injury to persons , including death, and damage to or destruction of the property of others . SVch liability insurance shall insure the Association and each unit owner, except for the personal liability of the unit owner arising from any and all personal activities . The minimum limits to be maintained shall be , for bodily injury $1 ,000,000, and for property damage $100,000. (C) The Board shall purchase and carry at all times the necessary Employer's L?ability and Workman 's Compensation insurance for the protection of the Association and unit owners . (D) The Board may purchase and carry at all times liability insurance, insuring against all claims , damages , or liability arising from errors or omissions by the members of the Board in the admin- istration of the business of the Association. Such insurance shall insure each member of the Board. (E) The Board, or its nominee, shall act as the insurance trustee for the benefit of the Association, unit owners , and holders of security interests . Section 3. Additions , Alterations , or Improvements by Board. Whenever, in the judgment of the Board, the common elements shall require additions , alterations , or improvements costing in excess of $3 ,000 per year, and the making of such additions , alterations , or improvements shall have been approved by 60% of the unit owners , and by those mortgagees holding mortgages constituting first liens upon any of the units , the Board shall proceed with such additions , alterations , or improvements , and shall assess all unit owners for the cost thereof as a common charge. Any additions , alterations , or improvements costing less .than $3 ,000 in a given year shall be made by the Board without approval of the unit owners or any mortgagees of units , and the cost thereof shall constitute a common charge. EXHIBIT "D" (11) Section 4. Collection of Assessments . The Board shall assess common charges and/or operating losses against the unit owners from time to time, and at least annually, and shall take prompt action to collect from a unit owner any common charge due which remains unpaid by him for more than thirty (30) days from the due date for its payment. Section S. Default in Payment of Common Charges . In the event any unit owner fails for a period of more than thirty (30) days to pay to the Board the assessed common charges and/or operating losses , such unit owner shall be obligated to pay interest at the rate of 1% per month on such common charges and/or operating losses from the due date thereof, together with all expenses , including reasonable attorneys ' fees , incurred by the Board in any proceeding brought to collect such unpaid common charges and/or operating losses . The Board shall have the right , and duty, to attempt to recover such common charges and/or operating losses , together with interest thereon and the expenses of the proceedings , including reasonable attorneys ' fees , in an action brought against such unit owner, or by foreclosure of the lien on such unit , as is granted by RCW 64. 32 .200. Section 6. Statement of Common Charges and Operating Losses . The Board shall promptly provide any unit owner, purchaser. , or first mortgagee who makes a request in writing with a written statement of unpaid common charges and/or operating losses on any unit. Section 7 . Conveyance of Units . No owner shall be permitted to convey , mortgage, hypothecate , sell , or lease for one (1) year or more , his unit , unless and until he shall have paid in full to the Board all unpaid common charges theretofore assessed by the Board against his unit, and until he shall have satisfied all unpaid liens against such unit , except mortgages . ARTICLE IX ACCOUNTING AND PROFITS Section 1. Accountin&of Receipts and Expenditures . The Board shall keep detailed books of account , listing all receipts anj all expenditures of the Association , and render to all owners a summarized report thereof at least quarter-annually. In addition , an annual report of the receipts and expenditures of the Association, certified by an independent Certified Public Accountant , shall be rendered by the Board to each owner promptly after the end of each fiscal year. EXHIBIT "D" (12) ARTICLE X USE REGULATIONS Section 1 . Preface. In order to provide for the congenial occupancy, and for the protection of values of this Condominium, the use of the property shall be subject to the following regulations : Section 2. Legal Compliance. All valid laws , zoning ordinances , and regulations , of all governmental bodies having juris- diction thereof, shall be complied with. - No unlawful , immoral , improper, or offensive use shall be made of the property or the units , or any part thereof. No nuisances shall be allowed on the Condominium property, neither shall any use or practice be allowed which is a source of annoyance or which interferes with the peaceful use of the property and the units by the owners . Section 3. Rules of Conduct. Rules and regulations per- taining to occupancy of the units and the use of the common areas and facilities may be promulgated and amended from time to time by the Board, and these shall apply to all occupants of the property. Section 4. Abatement and Enjoining of _Violations . The violation of any rule or regulation adopted by the Board, or the breach of any By-Law contained herein, or the breach of any provision of the Declaration, shall give the Board the right. , in addition to any other rights set forth in these By-Laws , to: (A) Enter the unit in which, or as to which , such violation or breach exists , and to summarily abate and remove , at the Expense of the defaulting unit owner, any structure , thing, or condition that may exist therein contrary to the intent and meaning of the provisions hereof, and the Board shall not thereby be deemed guilty in any manner of trespass ; or, (B) Enjoin, abate, or remedy such thing or condition by appropriate legal action. Section 5. Damage to Property. In case of any damages not covered by insurance to any part of the property, including the units , caused by the negligent or willful act of any person, owner , or non- owner, prompt payment of the costs of repair or replacement thereof shall be required of the person having caused such damage, and/or the owner of said unit. EXHIBIT "D" (13) ARTICLE XI RIGHTS AND DUTIES OF OWNERS Section 1 . ReciprociCy of Rights and Dut ices. (A) Each owner has the right to participate in the functions of the Association, to equal enjoyment of the social and recreat. ionai facilities , and to equitably share in the benefits appurtenant to membership in the Blue Heron Condominium Owners ' Association. (B) Provided , further, that each owner, by his membership , has reciprocal duties to each other owner, which are as follows .- (1) To maintain an interest in, and attend the meetilly's, of the Association; (2) To occasionally perform committee service or seek. a Board position for the advancement of the Association 's objectives . _Section 2. Entry to Units . All owners must. Dave keys; to the entrance doors of their units and security closets with the management. ARTICLE XII AMENDMENTS _Section 1. By Owners . These By-Laws may be amended , unless otherwise herein provided , by the owners at any annual meeting or any special meeting properly called for that purpose , at which a quorum is present , by affirmative vote of a majority of the owners present in person or by proxy. These fay-Laws may not be amended prior to the first Association meeting. So long as the Sponsor is the owner of ten (10) or more TSU 's , these By-Laws , or any part thereof, may not be amended without the consent in writing of the Sponsor. Section 2 . By Directors . These By-Laws may be amended, unless otherwise herein provided, by the Board of Directors at any annual meeting or special ineeting properly called for that purpose at which a quorum is present by the affirmative vote of the majority of the Directors present , subject to the power of the owners to change or repeal such By-Laws . The Board of Directors shell noc alter the By-Laws pertaining to the directors ' qualifications , cla sifivations , FXHIBI'T "D" (14) terms of office, or compensation; and provided , further the Hoard of Directors shall not amend the following : Article III , j1r-t:j,cle IV Section 8 , Article VII Section 3 , Article VIII , Article 'IX , and Article X Sections 2 and 5 ; and provided , further, iri the event thoso By-Laws are amended by the Board of Directors as herein specified, they shall immediately give written notice to all of the c)wriers within ten (10) days . .ARTICLE XIII CLOSING COSTS , Section 1. Organization Costs of Association. At the time of closing the purchase of each owner's or frac.tiunal owner's interest , said purchaser shall pay, in addition to all other closing; costs , the sum of $50. 00 , which sum shall be used solely for the purpose of setting up and organizing the Association , which costs shall include , but are not limited to, accounting and attorney 's fees , and management costs . THEREFORE , we , the undersigned , being so duly appointed and authorized, do hereby ratify and adopt these By-I..aws on behalf of Blue Heron Condominium Owners ' Association. IN WITNESS WHEREOF, the undersigned has caused these By-Laws: to be executed this _ clay of October, 1975 , at San Diego, California. PROVIDENT REALTY, INC. , Adviser to INDE,PENLCENCF MORTGAGE' TRUS'i', a Ceorp is Business Trust BY- EXHIBIT "n" (0) BLUE HERON SEWERAGE ACRF:k:T' ENT THTS AGREEMENT, made this day of 1975 , by and between MASON COUNTY , WASHINGTON, hereinafter referred to as "County" , and INDEPENDENCF MORTCAGE TRUST, a Ceor€;ia Business Trust , hereinafter referred to as "Developer" , and 'FHURSTON-1`JA:;CiN COUNTY HEALTH DISTRICT, hereinafter referred to as 'District.' , WITNESSETH: 6dEIEREAS , Developer is the record title owner of a tract of land near Union, T'ashin€,ton , situated in Mason County , tashington , which is legally described in the Declaration of Condominium for the Blue Heron Condominium, which tract is being developed by Developer into a condominium project , for residential and recreational units ; and , VAIEREAS , Developer , as part of said development- project , has commenced and plans to complete construction and installation of a sewer system to serve said condominium; and , WHEREAS , said sewer system is to be managed and operated by the Owners ' Association , to be created in accordance with The Horizontal Property Regimes Act (RCW 64. 3?) ; and, WHEREAS , the Developer has caused to be prepared plans ana specifications for a sewage disposal system, which were prepared by Arvid Grant, engineer , of Olympia , Washington , oxt or about the 21st day of August , 1973 , which plans and specifications have been approved by all proper governmental authorities ; now, therefore, The parties hereto agree and covenant as fo1lo�js : 1. Interim Sewage System, (a) It is understood and agreed that 21 units of the proposed condominium have been constructed and are in operation , utilizing a temporary sewage disposal system. That until the install-i- tion of the permanent system provided for below, the Developer and/or Owners ' Association, as defined in the Declaration of Condominium for the Blue Heron , shall maintain and operate said temporary system in accordance witti' the following lowing guidelines : (1) Records of the number of condominiM tenants (luring each day of each month shall be, kola (keep daily records, of the number of condoir.i.nium tenants) ; EXHIBIT "F" (1) (2) Records of the number of gallons of sewage pumped from the holding tank shall be kept . The date and time of each waste pumping from the holding tank shall be kept; (3) Once during each day the holding tank shall be inspected and the depth of sewage in the tank measured. The time of each inspection shall be approximately at 9:00 a.m. each day. The depth of sewage shall be measured and recorded, and when the depth equals or exceeds 2 .5 feet , the waste hauler shall be immediately notified; (4) Yaintain a current list of tank pur^pers in the Mason, Kitsap County areas ; (5) Once every three months the above data and any additional information requested shall be submitted to a qualified engineer acceptable to the parties for review. Upon review, the engineer shall ;submit to manage- ment a report which will include: (a) The average daily per capita sewage flow for the project during the previous three months; (b) An evaluation of the per capita sewage flow with respect to possible infiltration and inflow. 2 . Permanent Sewage Treatment System (a) That on or before 18 months from date, the Developer shall complete construction and installation of the entire sewer system in accordance with the plans and specifications prepared by Arvid Grant , engineer, referred to above , or as modified by the parties hereto. The Developer shall further guarantee for one year following the completion that the permanent sewage disposal system shall operate and function in accordance with the purpose for which it was designed. (b) The Developer shall provide the county and other necessary publid agencies with advanced notice in order that said public authorities may adequately inspect the remaining .phases of the construction of said sewage disposal system. (c) On completion of the construction, the Developer shall supply to the county a complete set of drawings of the "as-built" plans to depict the system as constructed, EXHIBIT "E" (2) (d) Upon completion of the permanent: sewage. disposal system, as herein provided , the Developer and/or Owners ' Association shall maintain and operate said system in accordance with the follow- ing criteria : (1) Records of the number of c.ondominjum tenants during each day of each month shall be kept; (2) Records of the number of hours of operation of the sewage pump discharging to the drainfield shall be kept. The hours of operation of each pump shall be reported; (3) Once during each week the sewage pumps shall be inspected. Each pump shall be manually started and checked to insure proper running condition; (4) Maintenance , as recommended by the pump manufacturer, shall be conducted on each pump as required by its hours of operation. This shall include greasing of bearings , factory inspection of pumps , etc. ; (5) Once during each month the drainfield system shall be inspected, with particular attention given to possible direct outbreak of sewage to the ground surface; (6) Once during each month the septic tank system shall be inspected. The depth of sludge and scum shall be measured and recorded. Procedures used to determine the sludge and scum depth shall be as specified in the Manual of Septic-Tank Practice , 11. S . Department of Health , Education and Welfare , latest edition. When the sludge or scum depth exceeds or equals the recommended allowable depth as specified in the Manual of Septic Tank Practice , the septic tank system shall be pumped in accordance with procedures in the manual; (7) In the event that an alternating drainfield system is provided, flows shall be diverted from one field to the other, on a yearly basis . (e) ' Upon the filing of the Declaration of Condominium for the Blue Heron , the Developer, to insure performance of its obligation to construct and complete said permanent sewage disposal system in accordance with the plans and specifications , prepared by Arvid Grant , engineer, shall furnish to the county and to the Health EXHIBIT E (3) District a duly executed bond upon a form approved by the county, and signed by an approved surety, in the amount of 877 ,500.00 , and said Developer shall maintain said bond until completion of the installation of the system, as hereinafter provided. (f) Should the Developer fail to furnish any bond within the time specified herein, the county shall have the right , by lawful means , to stop all construction and/or operations of the system described above until said bond is forthcoming , and the county shall recover its costs , including reasonable attorney's fees , in so doing. (g) It is understood and agreed that the above described permanent sewage disposal system requires additional property for the purpose of installing a drainfield, which property is in addition to that described in the Declaration of Condominium, and which property is legally described as follows , and is located in Mason County , State of Washington; PARCEL 1. The west 5 acres of the E� of the NW'k, of the NWk of Section 4 , Township 21 North, Range 3 , West W.M. , EXCEPTING therefrom public roads , if any. PARCEL 2 . That portion of the W2 of the NW" of the NW'; of Section 4, Township 21 North, Range 3 West , W.M. , described as follows ; BEGINNING at the northwest corner of said Section 4; thence South 86°44 '11" East along .the north line thereof 533. 10 feet to true point of beginning; thence South 07C359 '54" East 238.00 feet ; thence South 86°44 '11" East 42 feet; thence South 58'9 '54" East 38.78 feet to the east line of said 14' of the NWT of the NWT;; thence North 4"12 '9" East along said East line 252 .00 feet to north line of said Section 4; thence North 86"44 '11" West along said north line 126.67 feet to true point of beginning; EXCEPT the north 30 feet thereof for county road (containing 0.5522 acres) . SUBJECT TO that certain lease entered into on the 1st day of May, 1972 , and recorded under. Mason County Auditor's File No. which lease runs until April 30, 1992 , with an option for an additional 30 years . (h) The Developer warrants that upon completion of the permanent sewage disposal system described herein , it shall submit and declare Parcels l and 2 above as common area under the blue Heron Declaration of Condominium. Said property shall be free and clear of all encumbrances except for that certain lease described above, and which pertains to Parcel 2 . EXHIBIT "E" (4) (i) It is understood and agreed that there is a possibility of the utilization of an alternative sewage cdispc�shl system, which , if approved by the county and the 'Thurston-Mason C mn-t�-y Health Distric:t, , they Developer may substitute: for the pe,rmanc..nt system described above. In the event an approved alternative system is installed, then the Developer shall have no obligation a:o submit the above described parcels to the Declaration of Gondomi_nium (j ) Mason County .and 'Thurston-Mason C4mmzy Health District shall release portions of the construction bond monies in an amount equal to the verified and agreed percentage of total work completed, as determined, from time to time , by the )eveloper's engineer and the Mason County Director of Public V!orks , less ss a retainage of 10% (or. $7 ,750.00) of the face value of the bond; provided , however, that the bond monies shall not: be released below the sum of $10,000.00 until such time as the construction is completed and approved by the parties hereto , and the maintenance and operation bond in the principal sum of $10,000.00 is posted In a fonn acceotable to the Cminty and Health District,, or be determined not to be necessary per Section 2 , subparagraph (K) of this agreement. Upon the satis- faction of .all of the requirements of this section , all of tht. bond monies shall be released by the County and Health District, (k) The Developer shall provide , and the Owners ' Assoc. ia- tion shall pay for, as common expenses , a maintenance and operation bond in the principal sum of $10,000.00 , in a form acceptable to the county and to the Health District . Said maintencince and operation bond shall continue yearly until such time as thr Owners ' Association establishes its competency to operate and maintain the permanent sewage disposal system, and further establish its financial ,solvency to accomplish the same end. Evidence of the Association 's maintenance competency and financial solvency shall be certified to by all inde- pendent CPA, approved by the county, and the Association , who is experienced in accounting and management of property submitxed to The Horizontal Property R'egimes Act of the State of Washington. 3 . General Cunditions (a) Ai all times , management shall, fallow the f:►llowing maintenance and operation procedures : (1) Replace or repair worn or damaged p.irts and maintain equipment in proper operating condition; (2) Maintain records of any maime,nnncE1 , Cv[1- ducted on the sewerage system and/car ins-sections of the system. These records shall include all obscrvati,ins made on the Sys .:em and equipment ; EXHIBIT i (3) Determine the cause of, and cor-rcct. , .ally major breakdown or equipment failure, (b) Developer shall , prior to the conveyance and transfer of any interest in and to the Condominium Property submit the property described in the Blue Heron Declaration of Condominium to the pro- visions of The Horizontal Property Regimes Act of the State of Wash- ington (RCW 64. 32) , by causing; the same to be filed with the Mason County Auditor. (c) After the permanent sewage disposal system has J)eeri completed, the Developer and/or Owners ' Association ::hall he responsible for: (1) Operating; the system; (2) Employing competent operator who is approved by the Thurston-Fuson County Health District and county engineer; (3) Maintain records of all receipts and dis- bursements made for said sewer system; (4) Establishing a reserve fund which will be periodically funded out of assessments , which funo shall_ be used to pay for major repairs and replacements and contemplated in the ordinary costs of maintenanec and operation. (d) During a period of one year after the data the permanent system is completed and accepted by the county Banc: Health District , the Developer shall make all repairs and replacements which arise out of defective workmanship or materials , or both , and shall take any and all measures to insure that performance will adequately meet all legal requirements . (e) The Developer and/or Owners ' Association shall comply with all existing governmental statute , rules and regulations appli- cable to the plans and specifications above described. (f) The ultimate beneficiaries of, and p,�ople responsihl., for, the sewer system contemplated herein are to be the owners , as individuals and members of the Owners ' Association of the Condo- minium, to be established as per the Declaration. To insttrt� rhat these benefits and responsibilities are carried out , the D ove.Lopt.-r EXHIBIT "F:" (6) agrees to attach this agreement to the said Declaration of Condo- minium, as an exhibit , at the time the property is submitted to The Horizontal Property Regimes Act of the State of Washington. Said agreement shall be binding upon all heirs , assigns and transferees of. said Declarant , and all parties having an interest in the property subject to the Declaration and its By-Laws. In the event of failure of the Developer and/or the Owners ' Association to maintain and operate the sewage disposal ,system in accordance with this agreement , the county shall have the right to take any and all corrective measures , as provided by law, arid, in addition, may take over maintenance and operation of said system until such time as the Developer and/or Owners ' Association can establish their capability of resuming same. In the event the county should take over the maintenance and operation of the said system, it shall charge to the owners all of its necessary expenses incurred as a result of its taking; over the maintenance and operation. All of such expenses and charges shall be treated a:: common expenses , as defined in The Horizontal Property Regimes Act (RCW 64. 32 .080) , and all of such labor performed and/or materials furnished by the county are hereby deemed to be performed or furnished with the express con- sent of each owner as provided for in RCW 64. 32 .070. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. MASON COUNTY , I,'ASHTNGTON By _ Garr,missioner Commissioner By Commissioner THURSTON-MASON COUNTY HEALTH INDEPENDENCE MORTCACE TRUST, a DISTRICT Georgia Business Tri.tst , by its Advisor, PROVIDENT' RFALTY , INC. By By By r?XHIBI!' "F" (7) Y L I Grass edger 4 Double reinforced hoses (400 ') 2 Sprinklers 1 Root feeder 6 Root feed 1 Garden Barrows 1 Broadcast spreader 1 Shovel 1 Scoop Shovel 1 Fork 1 Hoe 1 Lawn rake . 1 Pruning saw 1 Lopping shears 1 Hedge shears 1 Pruner 1 Grading rake 1 Pole saw 1 Lawn vacuum 1 Chain saw 1 Mower 1 Canister vacuum and accessories 1 Vacuum 1 Hoist 1 Reciprocating saw 1 Extension cord (100 ') 1 7V Circular saw w/assorted blades 1 Drill w/metal drill bit set , wood boring , counter sink set 1 Recipsaw w/wood and metal blades 1 Grinder w/wire wheels 1 Vice Chisels 1 Block plane 1 Wrecking bar 1 Nail puller 1 Miter box Hand saws 1 Hack saw 1 Key hole saw 1 Coping saw w/blades 1 Sledge hammer 1 Hammer claw 2 Pipe wrenches (10" - 1411) 1 Chain pipe wrench 1 Basin wrench 1 Torch kit 1 Copper toring kit EXHIBIT "F" (1.) I Faucet seat dresser 1 100 pc. tool set 4 Pliers (Standard 6" , rib groove , long nose , diagonal cut 7") 1 Vice lock (7") Adjustable wrenches 1 Adjustable wrench (4") Levels 1 Tape (16 ') 1 Comb. square 1 Rafter square , Pipe threaders 1 Staple gun 1 Power drill Auger 1 Circular saw sharpener 1 Wiring tool 1 Cushion grip wiring tool Terminals and connectors 1 3-wire cord set 1 Air compressor and spray gun 1 Caulking gun Paint brushes (2" and 4") EXHIBIT "F" (2) �J C. M. 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