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HomeMy WebLinkAboutCT 14-02; Bicajessee Adventures; Tentative Map (CT) (2)W CITY OF CARLSBAD LAND USE REVIEW APPLICATION P-1 Development Serwices Planning Division 1635 Faraday Avenue (760) 602-4610 www.carlsbadca.gov Minor General Plan Amendment APPLICATIONS APPLIED FOR: (CHECK BOXES) Development Permits (FOR DEPT. USE ONLY) Legislative Permits I I Coastal Development Permit (*) [ [ I I Conditional Use Permit (* I [Minor [ | I I Day Care (Large) Environmental Impact Assessment (FOR DEPT. USE ONLY) Extension Habitat Management Permit Minor Hillside Development Permit (*) Minor Nonconforming Construction Permit Planned Development Permit [ [Minor [ jResidentiai [ [Non-Residential Pianning Commission Determination Site Development Plan I I Special Use Permit [ [ Tentative Parcel Map (Minor Subdivision) 7 [ [Minor Tentative Tract Map (Major Subdivision) (S ' 0- • • Variance Minor I [Local Coastal Program Amendment (*) [ [Master Plan ' ' [ [specific Plan Zone Change (*) Zone Code Amendment South Carlsbad Coastal Review Area Permits Amendment Amendment Review Permit Administrative | jviinor [ [Major Wllaae Review Area Permits / Review Permit Administrative Minor Major KP (*) = eligible for 25% discount NOTE: A PROPOSED PROJECT REQUIRING MULTIPLE APPLICATIONS MUST BE SUBMITTED PRIOR TO 3:30 P.M. A PROPOSED PROJECT REQUIRING ONLY ONE APPUCATION WUST BE SUBMITTED PRIOR TO 4:00 P.M. ASSESSOR PARCEL NO(S).: 203-110-29-00 PROJECT NAME; BICAJESSEE ADVENTURES BRIEF DESCRIPTION OF PROJECT: CONDO CONVERSION OF 6 OFFICE UNITS BRIEF LEGAL DESCRIPTION: PORTION OF LOT 48 ACCORDING TO MAP NO 1722 LOCATION OF PROJECT: WEST 2815 JEFFERSON STREET ON THE: STREET ADDRESS SIDE OF JEFFERSON STREET (NORTH, SOUTH, EAST, WEST) BETWEEN HOME AVENUE (NAME OF STREET) (NAME OF STREET) AND GRAND AVENUE (NAME OF STREET) P-1 Page 1 of 6 Revised 12/13 OWNER NAME (Print): BICAJESSEE ADVENTURES LLC MAILING ADDRESS: 2815 JEFFERSON STREET, #300 CITY, STATE, ZIP: CARLSBAD, CA, 92008 TELEPHONE: 760-576-5225 EMAIL ADDRESS: APPLICANT NAME (Print): ^ ^^^^j JESSEE MAILING ADDRESS: 2815 JEFFERSON STREET, #300 CITY, STATE, ZIP: CARLSBAD, CA, 92008 TELEPHONE: 760-576-5225 EMAIL ADDRESS: L^l^ft SpgA(C< . ^]CT I CERTIFY THAT I AM THE LEGAL OWNER AND THAT ALL THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLED- I CERTIFY THAT I AM THE LEGAL REPRESENTATIVE OF THE OWNER AND THAT ALL THE ABOVE INFORMATION IS TRUE AND CORRECT TO APPLICANTS REPRESENTATIVE (Print): MAILING ADDRESS: CITY, STATE, ZIP: TELEPHONE: EMAIL ADDRESS: I CERTIFY THAT I AM THE LEGAL REPRESENTATIVE OF THE APPLICANT AND THAT ALL THE ABOVE INFORMATION IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE. SIGNATURE DATE IN THE PROCESS OF REVIEWING THIS APPLICATION IT MAY BE NECESSARY FOR MEMBERS OF CITY STAFF, PLANNING COMMISSIONERS OR CITY COUNCIL MEMBERS TO INSPECT AND ENTER THE PROPERTY THAT IS THE SUBJECT OF THIS APPLICATION. lyWE CONSENT TO ENTRY FOR THIS PURPOSE. NOTICE OF RESTRICTION: PROPERTY OWNER ACKNOWLEDGES AND CONSENTS TO A NOTICE OF RESTRICTION BEING RECORDED ON THE TITLE TO HIS PROPERTY IF CONDITIONED FOR THE APPLICANT. NOTICE OF RESTRICTIONS RUN WITH THE LAND AND BIND ANY SUCCESSORS IN INTEREST. FOR CITY USE ONLY RECEIVED JAN 3 1 201'! CITY OF CARLSBAC PLANNING DIVISIOW JAN 3 I r . CITY OF CARLSBAD PLANNING DIVISION DATE STAMP APPLICATION RECEIVED RECEIVED BY: p-1 Page 2 of 6 Revised 12/13 DISCLOSURE Development Services STATEMENT Planning Division C1T ¥ O F CARLSBAD P-1(A) 1635 Faraday Avenue (760) 602-4610 www.carlsbadca.gov Applicant's statement or disclosure of certain ownership interests on all applicafions which will require discretionary action on the part ofthe City Council or any appointeti Board, Commission or Committee. The foilowing information MUST be disclosed at the time of application submittal. Your project cannot be reviewed until this information is completed. Please print. Note- Person Is defined as "Any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, Gorporation, estate, trust, receiver, syndicate, in this and any other county, city and county, eity municipality, district or other political subdivision or any othergroup or combination acting as a unit." Agents may sign this document; however, the legal name and entity of the applicant and property owner must be provided below. 1. APPLICANT (Not the applicant's agent) Provide the COMPLETE. LEGAL names and addresses of ALL persons having a financial interest in the application. If the applicant includes a corporation or partnership, include the names, titles, addresses of all individuals owning more than 10% of the shares. IF NO INDIVIDUALS OWN MORE THAN 10% OF THE SHARES, PLEASE INDICATE NON-APPLICABLE (N/A) IN THE SPACE BELOW. If a publiclv-owned corporation, include the names, titles, and addresses of the corporate officers. (A separate page may be attached if necessary.) Person Corp/Part K£t*T- :3£SSjeB Title Title Ov^u^eg- Address Address c».RcgiBM:> j <f 2x308 2. OWNER (Not the owner's agent) Provide the COMPLETE. LEGAL names and addresses of ALL persons having any ownership interest in the property involved. Also, provide the nature of the legal ownership (i.e., partnership, tenants in common, non-profit, corporation, etc.). If the ownership includes a corporation or partnership, include the names, titles, addresses of all individuals owning more than 10% ofthe shares. IF NO INDIVIDUALS OWN MORE THAN 10% OF THE SHARES, PLEASE INDICATE NON-APPLICABLE (N/A) IN THE SPACE BELOW. If a publiclv-owned corporation, include the names, titles, and addresses of the corporate officers. (A separate page may be attached if necessary.) Person Corp/Part 'atfAr^es&ee AtyjeWDgCS LX-C^ Title Title Address Address 2^1^ tSfef^^^Sat^ , 4l3.-Sb P-1 (A) Page lof 2 Revised 07/10 3. 4. NON-PROFIT ORGANIZATION OR TRUST If any person identified pursuant to (1) or (2) above is a nonprofit organization or a trust, list the names and addresses of ANY person serving as an officer or director of the non- profit organization or as trustee or beneficiary of the. Non Profit/Trust_ Title Non Profit/Trust_ Title Address Address Have you had more than $500 worth of business transacted with any member of City staff, Boards, Commissions, Committees and/or Council within the past twelve (12) months? I I Yes X No If yes, please indicate person(s):_ NOTE: Attach additional sheets if necessary. I certify that all the above information is true and correct to the best of my knowledge. ~ \\Z\\H Signature of owner/date Signature of applicant/date Print or type name of owner Print or type name of applicant Signature of owner/applicant's agent if applicable/date Print or type name of owner/applicant's agent p-1 (A) Page 2 of 2 Revised 07/10 ENVIRONMENTAL INFORMATION FORM (To be Completed by Applicant) Date Filed: (To be completed by City) Application Number(s); General Information 1. Name of project: 2. Name of developer or project sponsor: Address: City. State, Zip Code: CA^A^'g>iftcC> ; <^/^ llOOg Phone Number: 3. Name of person to be contacted concerning this project: Address: KBtSC •iS'g'^'S^ City, State, Zip Code: ^ Phone Number: Address of Project: ^ Assessor's Parcel Number: 7 P^-'tO" ^*^-"0 List and describe any other related permits and other public approvals required for this project, including those required by city, regional, state and federal agencies: N3W 6. Existing General Plan Land Use Designation: 7. Existing zoning district: \( 'X:>\Sr«^'^C^ ^ 8. Existing land use(s): 9. Proposed use of site (Project for which this form is filed): OMT"^^ Project Description 10. Site size: il^;0/S^ -S.F. 11. -Rtoposed Building square footage: ^ 12: Number of floors of construction : 5 13. Amount of off-street parking provided: 14. Associated projects: (A- P-1(D) Page 2 of 4 Revised 07/10 15. If residential, include the number of units and schedule of unit sizes: Nf/A 16. If commercial, indicate the type, whether neighborhood, city or regionally oriented, square footage of sales area, and loading facilities: ^Jl^ 17. If industrial, indicate type, estimated employment per shift, and loading facilities lyment pi 18. If institutional, indicate the major function, estimated employment per shift, estimated occupancy, loading facilities, and community benefits to be derived from the project: ^/^A 19. If the project involves a variance, conditional use or rezoning applications, state this and indicate clearly why the application is required: ^/^^' P-1(D) Page 3 of 4 Revised 07/10 Are the following items applicable to the project or its effects? Discuss ali items checked yes (attach additional sheets as necessary). Yes No 20. Change in existing features of any bays, tidelands, beaches, or hills, or substantial • 0 alteration of ground contours. 21. Change in scenic views or vistas from existing residential areas or public lands or • H roads. 22. Change in pattern, scale or character of general area of project. • S 23. Significant amounts of solid waste or litter. • H 24. Change in dust, ash, smoke, fumes or odors in vicinity. • S 25. Change in ocean, bay, lake, stream or ground water quality or quantity, or Q H alteration of existing drainage patterns. 26. Substantial change in existing noise or vibration levels in the vicinity. • H 27. Site on filled land or on slope of 10 percent or more. • ^ 28. Use of disposal of potentially hazardous materials, such as toxic substances, D 0 flammables or explosives. 29. Substantial change in demand for municipal services (police, fire, water, sewage, • 0 etc.). 30. Substantially increase fossil fuel consumption (electricity, oil, natural gas, etc.). • ® 31. Relationship to a larger project or series of projects. • IS Environmental Setting Attach sheets that include a response to the following questions: 32. Describe the project site as it exists before the project, including information on topography, soil stability, plants and animals, and any cultural, historical or scenic aspects. Describe any existing structures on the site, and the use of the structures. Attach photographs of the site. Snapshots or Polaroid photos will be accepted. 33. Describe the surrounding properties, including information on plants and animals and any cultural, historical or scenic aspects. Indicate the type of land use (residential, commercial, etc.), intensity of land use (one-family, apartment houses, shops, department stores, etc.), and scale of development (height, frontage, set-back, rear yard, etc.). Attach photographs of the vicinity. Snapshots or polaroid photos will be accepted. Certification I hereby certify that the statements furnished above and in the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. Date: Signature: ^ For: P-1(D) Page 4 of 4 Revised 07/10 indemnification and Insurance Requirement for Viilage Area Administrative Permit Certification Statement: I Certify that I am the Legal Business Owner of the subject business and that all of the above information is true and correct to the best of my knowledge. I agree to accept and abide by any conditions placed on the subject project as a result of approval of this application. I agree to indemnify, hold hannless, and defend the City of Carlsbad and its officers and employees from all claims, damage or liability to persons or property arising from or caused directly or indirectly by the installation or placement of the subject property on the public sidewalk and/or the operation of the subject business on the public sidewalk pursuant to this permit unless the damage or liability was caused by the sole active negligence of the City of Carlsbad or its officers or employees. I have submitted a Certificate of Insurance to the City of Carlsbad in the aniount of one million dollars issued by a company which has a rating in the latest "Best's Rating Guide" of "A-" or better and a financial size of $50-$100 (currently class Vll) or better which lists the City of Carlsbad as "additional insured" and provides primary coverage to the City. I also agree to notify the City of Carlsbad thirty days prior to any cancellation or expiration of the policy. The notice shall be delivered to: City Planner City of Carlsbad 1635 Faraday Avenue Carlsbad The insurance shall remain in effect for as long as the property is placed on the public sidewalk or the business is operated on the public sidewalk. This agreement is a condition of the issuance of this administrative permit for the subject of this permit on the public sidewalk. I understand that an approved administrative permit shall remain in effect for as long as outdoor displays are permitted within the Village Review Area and the permittee remains in compliance/with the subject approved permit. Signature tl^"^— Date: ' / oi / N Certification Statement: I Certify that I am the Legal Propertv Owner for the subject business location and that all of the above information is true and correct to the best of my knowledge. I support the applicant's request for a permit to place the subject property on the public sidewalk. I understand that an approved administrative permit shall remain in effect for as long as outdoor displays are permitted within the Village Review Area and the permittee remains in compliance with the subject approved permit. Sianature //.^ ^ Date: ^1-^)}^ P-1 Page 3 of 6 Revised 12/13 CITY OF CARLSBAD PROJECT DESCRIPTION P-1(B) Development Services Planning Division 1635 Faraday Avenue (760) 602-4610 www.carlsbadca.gov PROJECT NAME: APPLICANT NAME: Please describe fully the proposed project by application type. Include any details necessary to adequately explain the scope and/or operation of the proposed project. You may also include any background information and supporting statements regarding the reasons for, or appropriateness of, the application. Use an addendum sheet if necessary. Description/Expl anation: P-1(B) Page 1 of 1 Revised 07/10 ^ CITY OF CARLSBAD HAZARDOUS WASTE AND SUBSTANCES STATEMENT P-1(C) Development Services Planning Division 1635 Faraday Avenue (760) 602-4610 www.carlsbadca.gov Consultation of Lists of Sites Related to Hazardous Wastes (Certification of Compliance with Government Code Section 65962.5) Pursuant to State of California Government Code Section 65962.5, I have consulted the Hazardous Waste and Substances Sites List compiled by the California Environmentai Protection Agency and hereby certify that (check one): The development project and any alternatives proposed in this application are not contained on the lists compiled pursuant to Section 65962.5 ofthe State Government Code. I I The development project and any alternatives proposed in this application are contained on the lists compiled pursuant to Section 65962.5 of the State Government Code. APPLICANT Name: Address: 1^\S ^ytgf^Fgg-Sa.J , 1fr3oO Phone Number: (l(cO^ ^1^' 'S2.2.S PROPERTY OWNER Name:•&^^g^J6SS6g MbMCNTOH^S IXX^ Address:.2&tS tP&FRlZ&y^.^fr.^DO Phone Number: Address of Site: Local Agency (City and Countv): <^Ar'^-VS Tg^/^;^ Assessor's book, page, and parcel number. Specify list(s): Regulatory Identification Number: Date of List: The Hazardous Waste and Substances Sites List (Cortese List) is used by the State, local agencies and developers to comply with the California Environmental Quality Act requirements in providing infomnation about the location of hazardous materials release sites. P-1(C) Page 1 of 2 Revised 02/13 Chicago Title Company 2365 Northside Drive, Suite 500, San Diego, CA 92108 Phone: (619) 521-3500 • Fax: Issuing Policies of Chicago Title Insurance Company ORDERNO.: 12202891-996-U50 Escrow/Customer Phone: (619)521-3500 BICAJESSEE ADVENTURES LLC Title Officer: Cyr/Votel (SD/BS) 2815 Jefferson St., #300 Title Officer Phone: (619) 521-3555 Carlsbad, CA 92008 Title Officer Fax: (619) 521-3608 ATTN: W. Kent Jessee Title Officer Email: Cyr-Votel@ctt.com Email: kent@wkjessee.com Ref 2815 Jefferson SL PROPERTY: 2815 JEFFERSON STREET, CARLSBAD, CA PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Chicago Title Company hereby reports that it is prepared to issue, or cause to he issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss •which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeo-wner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The policy(s) of title insurance to he issued hereunder will be policy(s) of Chicago Title Insurance Company, a Nebraska Corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefuUy considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land. Countersigned: Authorized Signature CLTA Preliminary Report Form - Modified (11/17/06) Page 1 Chicago Title Company 2365 Northside Drive, Suite 500, San Diego, CA 92108 Phone: (619) 521-3500 • Fax: PRELIMINARY REPORT SCHEDULE A EFFECTIVE DATE: December 20,2013 at 7:30 a.m. The form of policy or policies of title insurance contemplated by this report is: Map Guarantee 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Bicajessee Adventures, LLC. a California Limited Liability Company 3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: See Exhibit A attached hereto and made a part hereof. CLTA Preliminary Report Form - Modified (11/17/06) Page : PRELIMINARY REPORT YOUR REFERENCE: 2815 Jefferson St. Chicago Title Company ORDER NO.: 12202891-996-U50 EXHIBIT A LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THE SOUTHEASTERLY 50.00 FEET OF THE NORTHWESTERLY 241 FEET OF LOT 48 OF THE SEASIDE LANDS, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1722. FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 28, 1921; EXCEPT THE SOUTHWESTERLY 120 FEET. PARCEL 2: THE SOUTHEASTERLY 15.0 FEET OF THE NORTHWESTERLY 191.0 FEET OF LOT 48 OF SEASIDE LANDS, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 1722, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 28, 1921; EXCEPT THE SOUTHWESTERLY 120.00 FEET. APN 203-110-29-00 CLTA Preliminary Report Form - Modified (11/17/06) Page 3 PRELIMINARY REPORT YOUR REFERENCE: 2815 Jefferson St. Chicago Title Company ORDERNO.: 12202891-996-U50 SCHEDULE B EXCEPTIONS AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. 2. 6. Property taxes, including any assessments collected with taxes, for the fiscal year 2014-2015 that are a lien not yet due. Property taxes, including any personal property taxes and any assessments collected with taxes, are as follows: Tax Idemification No.: Fiscal Year: 1st Installment: 2nd installment: Penalty and Cost: 203-110-29-00 20I3-20I4 $10,655.04 Paid $10,655.04 Open (Delinquent after April 10) $1,075.50 Homeowners Exemption: None Code Area: 09098 Prior to close of escrow, please contact the Tax Collector's Office to confirm all amounts owing, including current fiscal year taxes, supplemental taxes, escaped assessments and any delinquencies. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the revenue and taxation code of the State of Califomia. Matters contained in that certain document Entitled: City of Carlsbad Housing and Redevelopment Commission Park In-Lieu Fee Program Participation Agreement Dated: June 17,2004 Executed by: Carlsbad Housing and Redevelopment Commission and W. Kent Jessee Recording Date: June 23, 2004 Recording No.: 2004-0586678 of Official Records Reference is hereby made to said document for fiill particulars Record of Survey Map No. 18380. recorded august 13, 2004 as file no. 2004-0772048. official records which discloses variances from the record legal description of said land. Reference is made to said map for further particulars. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document: Granted To: Purpose: Recording Date: Recording No: San Diego Gas and Electric Company Public Utilities, Ingress and Egress August 4, 2005 2005-0664967 ofOfficiai Records Affects: The Route Thereof Affects a Portion of Said Land Matters contained in that certain document CLTA Prehminary Report Form - Modified (11/17/06) Page 4 PRELIMINARY REPORT YOUR REFERENCE: 2815 Jefferson St. Chicago Title Company ORDERNO.: 12202891-996-U50 Entitled: Dated: Executed by: Recording Date: Recording No.: SCHEDULE B - EXCEPTIONS (Continued) Notice Of Restriction On Real Property None shown W. Kent Jessee and The City Of Carlsbad August 8, 2005 2005-0673207 of Official Records Reference is hereby made to said document for lull particulars A deed of trust to secure an indebtedness in the amount shown below. Amount: $1,132,000.00 Dated: August 10, 2006 Trustor/Grantor: Bicajessee Adventures, LLC, a Califomia Limited Liability Company Trustee: Commonwealth Land Title Company Beneficiary: CDC Small Business Finance Loan No.: None shown Recording Date: August 11, 2006 Recording No: 2006-0572277 of Official Records An assignment of the beneficial interest under said deed of trust which names: Assignee: Recording Date: Recording No.: United States Small Business Administration August 11,2006 2006-0572278 ofOfficiai Records An agreement recorded Febaiary I. 2007 as 2007-0073392 ofOfficiai Records which states that this instrument was subordinated to the document or interest described in the instrument Recording Date: August 23, 2006 Recording No.: 2006-0602995 OfOfficiai Records An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein as disclosed by the document Entitled: Lessor: Lessee: Recording Date: Recording No.: Subordination Agreement Bicajessee Adventures, LLC, a Califomia limited liability company W. Kent Jessee & Associates, Inc. August 11,2006 2006-0572280 of Ofricial Records An agreement recorded Autziist 11. 2006 as 2006-0572280 of OiTicial Records which states that this instrument was subordinated to the document or interest described in the instmment 10. Recording Date: August 11, 2006 Recording No.: 2006-0572277 OfOfficiai Records A deed of tmst to secure an indebtedness in the amount shown below, CLTA Preliminary Report Form - Modified (11/17/06) Page 5 PRELIMINARY REPORT YOUR REFERENCE: 2815 Jefferson St. Chicago Title Company ORDERNO.: 12202891-996-U50 SCHEDULE B - EXCEPTIONS (Continued) 11. 12. 13. 14. 15. 16. Amount: $1,100,000.00 Dated: August 18, 2006 Tmstor/Grantor: Bicajessee Adventures, LLC, a Califomia Limited Liability Company Tmstee: Califomia Community Bank Beneficiary: Califomia Community Bank Loan No.: 0140004284 Recording Date: August 23, 2006 Recording No: 2006-0602995 of Olficial Records An assignment of all the moneys due, or to become due as rental, as additional security for the obligations secured by deed of tmst shown Recording Date: Recording No.: August 23, 2006 2006-0602996 ofOfficiai Records Assigned to: Califomia Community Bank Matters contained in that certain document Emitted: Dated: Executed by: Recording Date: Recording No.: Hazardous Substances Certificate And Indemnity Agreement August 18, 2006 Bicajessee Adventures, LLC, William Kent Jessee, Beverly Bica, W. Kent Jessee & Associates, Inc., and Bica/Jessee Family Tmst Dated 09/12/2001 and Califomia Community Bank August 23, 2006 2006-0602997 of OITicial Records Reference is hereby made to said document for full particulars A financing statement as follows: Debtor: Secured Party: Recording Date: Recording No.: Bicajessee Adventures, LLC Califomia Community Bank August 23, 2006 2006-0602998 of Official Records Matters contained in that certain document Entitled: Third Party Lender Agreement Dated: August 10, 2006 Executed by: Califomia Community Bank and CDC Small Business Finance Recording Date: September 19, 2006 Recording No.: 2006-0666750 of Ofiicial Records Reference is hereby made to said document for fiill particulars Water rights, claims or title to water, whether or not disclosed by the public records. Matters which may be disclosed by an inspection and/or by a correct ALTA/ACSM Land Title Survey of said land that is satisfactory to this Company, and/or by inquiry of the parties in possession thereof CLTA Preliminary Report Form - Modified (11/17/06) Page 6 PRELIMINARY REPORT YOUR REFERENCE: 2815 Jefferson St. Chicago Title Company ORDER NO.: 12202891-996-U50 SCHEDULE B - EXCEPTIONS (Continued) 17. This office must be notified at least 7 business days prior to the scheduled closing in order to arrange for an inspection of the land; upon completion of this inspection you will be notified of the removal of specific coverage exceptions and/or additional exceptions to coverage. Any rights of the parties in possession of a portion of or all of said Land, which rights are not disclosed by the Public Records. END OF ITEMS CLTA Preliminary Report Form - Modified (11/17/06) Page 7 PRELIMINARY REPORT YOUR REFERENCE: 2815 Jefferson St. Chicago Title Company ORDERNO.: 12202891-996-U50 NOTES Note No. 1: Section 12413.1, Cahfomia Insurance Code became effective January I, 1990. This legislation regulates the disbursement of fiinds deposited with any title entity acting in an escrow or sub-escrow capacity. The law requires that all fiinds be deposited and collected by the title entity's escrow and/or sub-escrow account prior to disbursement of any funds. Some methods of fimding may be subject to a holding period, which must expire before any funds may be disbursed. In order to avoid any such delays, all funding should be done via wire transfer. Funds deposited with the Company via wire transfer may be disbursed upon receipt. Funds deposited by cashiers checks, certified checks, and teller's checks is one business day after the day deposited. Other checks may require hold periods from two to five business days after the day deposited, and may delay your closing. The Company may receive benefits from such banks based upon the balances in such accounts. Such benefits will be retained by the Company as part of its compensation for handling such ftinds. Note No. 2: The charge where an order is cancelled after the issuance of the report of title, will be that amount which in the opinion of the Company is proper compensation for the services rendered or the purpose for which the report is used, but in no event shall said charge be less that the minimum amount required under Section 12404.1 of the Insurance Code of the State of Califomia. If the report cannot be cancelled "no fee" pursuant to the provisions of said Insurance Code, then the minimum cancellation fee shall be that permitted by law. Note No. 3: Califomia Revenue and Taxation Code Section 18668, effecfive January I, 1991, requires that the buyer in all sales of Califomia Real Estate, withhold 3-1/3% of the total sales price as Califomia State Income Tax, subject to the various provisions of the law as therein contained, and as amended. Note No. 4: Your application for title insurance was placed by reference to a street address or assessor's parcel number. Based upon our records, we believe that the description in this report covers the parcel that you requested. To prevent errors, we require written confirmation that the legal description contained herein covers the parcel that you requested. Note No. 5: The plat, (map), which is attached to this report, is to assist you in locating land with reference to streets and other parcels. While this plat is believed to be correct, the Company assumes no liability for any loss occurring by reason of reliance thereon. Note No. 6: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage. Note No. 7: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the amount, if any, set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Note No. 8: Acceptance of the offer to insure provided for in this preliminary report constitutes the proposed insured's agreement that the sole and only liability of the company (and the title insurer) related to their actions in recording the documents provided to it for the closing of the contemplated transaction and the disbursing of funds acting in the function of a subescrow shall be that contained in the policy of title insurance that is to be issued by the company. The proposed insured understands and agrees that neither the underwritten company nor the title insurance company can guarantee or represent the condition or status of title or any physical condition existant with respect to real property. It is understood that no writing or instmction inconsistent with this understanding will have any force or effect or impose any liability against the underwritten company or the title insure in the contemplated transaction. CLTA Preliminary Report Form - Modified (11/17/06) Page 8 PRELIMINARY REPORT YOUR REFERENCE; 2815 Jefferson St. Chicago Title Company ORDERNO.: 12202891-996-U50 NOTES (Continued) Note No.9: The Company will require the following documents for review prior to the issuance of any title assurance predicated upon a conveyance or encumbrance from the entity named below: Limited Liability Company: Bicajessee Adventures, LLC a) A copy of its operating agreement, if any, and any and all amendments, supplements and/or modifications thereto, certified by the appropriate manager or member b) If a domestic Limited Liability Company, a copy of its Articles of Organization and all amendments thereto with the appropriate filing stamps c) If the Limited Liability Company is member-managed, a ftill and complete current list of members certified by the appropriate manager or member d) If the Limited Liability Company was formed in a foreign jurisdiction, evidence, satisfactory to the Company, that it was validly formed, is in good standing and authorized to do business in the state of origin e) If less than all members, or managers, as appropriate, will be executing the closing documents, fumish evidence of the authority of those signing. The Company reserves the right to add additional items or make ftirther requirements after review of the requested documentation. Note No. 10: There are no conveyances affecting said Land recorded within 24 months of the date of this report. Note No. 11: There is located on said land a Commercial known as 2815 Jefferson Street Carlsbad, Ca. END OF NOTES Cyr/Votel (SD/BS)/mlm CLTA Preliminary Report Form - Modified (11/17/06) Page 9 Fidelity National Financial, Inc. Privacy Statement Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non-public personal information ("Personal Information") and protecting your Personal Information is one of our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. Personal Information Collected We may collect Personal Information about you from the following sources: • Information we receive from you on applications or other forms, such as your name, address, social security number, tax identification number, asset information, and income information; • Information we receive from you through our Intemet websites, such as your name, address, email address, Intemet Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our websites; • Information about your transactions with or services performed by us, our affiliates, or others, such as information conceming your policy, premiums, payment history, information about your home or other real property, information from lenders and other third parties involved in such transaction, account balances, and credit card information; and • Information we receive from consumer or other reporting agencies and publicly recorded documents. Disclosure of Personal Inforniation We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: To insurance agents, brokers, representatives, support organizations, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction; To third-party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and/or providing you with services you have requested; To an insurance regulatory authority, or a law enforcement or other govemmental authority, in a civil action, in connection with a subpoena or a govemmental investigation; To companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements and/or To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing. We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is reasonably necessary to comply with the law or to protect the safety of our customers, employees, or property and/or to comply with a judicial proceeding, court order or legal process. Disclosure to Affiliated Companies - We are permitted by law to share your name, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. Disclosure to Nonaffiliated Third Parties - We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. Confidentiality and Security of Personal Information We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information. Access to Personal Information/Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However, FNF's current nolicv is to maintain customers' Personal Information for no less than vour state's required record retention requirements for the purpose of handling future coverage claims. For your protection, all requests made under this section must be in writing and must include vour notarized signature to establish vour identitv. Where permitted by law, we may charge a reasonable fee to cover the costs incurred in responding to such requests. Please send requests to: Chief Privacy Officer Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, FL 32204 Changes to this Privacy Statement This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy Statement, as stated above, indicates the last time this Privacy Statement was revised or materially changed. Privacy Policy Effective Date: 5/1/2008 Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the Califomia Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instmctions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the field rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for each discount. These discounts only apply to transaction involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling. FNF Underwritten Title Companv FNF Underwriter CTC - Chicago Title Company CTIC - Chicago Title Insurance Company Available Discounts CREDIT FOR PRELIMINARY REPORTS AND/OR COMMITMENTS ON SUBSEQUENT POLICIES (CTIC) Where no major change in the title has occurred since the issuance of the original report or commitment, the order may be reopened within 12 months and all or a portion of the charge previously paid for the report or commitment may be credited on a subsequent policy charge within the following time period from the date of the report. FEE REEDUCTION SETTLEMENT PROGRAM (CTC and CTIC) Eligible customers shall receive $20.00 reduction in their title and/or escrow fees charged by the Company for each eligible transaction in accordance with the terms of the Final Judgments entered in The People of the State of CaUfomia. DISASTER LOANS (CTIC) The charge for a lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within 24 months of the date of a declaration of a disaster area by the govemment of the United States or the State of Califomia on any land located in said area, which was partially or totally destroyed in the disaster, wil! be 50% of the appropriate title insurance rate. CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (CTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be 50% to 70%o of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be 40% to 50% of the appropriate title insurance rate, depending on the type of coverage selected. EMPLOYEE RATE (CTC and CTIC) No charge shall be made to employees (including employees on approved retirement) of the Company or its underwritten, subsidiary title companies for policies or escrow services in connection with financing, refinancing, sale or purchase of the employees' bona fide home property. Waiver of such charges is authorized only in connection with those costs which the employee would be obligated to pay, by established custom, as a party to the transaction. CA Discount Notice Effective Date: 1 -10-2010 Notice You may be entitled to receive a $20.00 discount on escrow services if you purchased, sold or refinanced residential property in Califomia between May 19,1995 and November 1, 2002. If you had more than one qualifying transaction, you may be entitled to multiple discounts. If your previous transaction involved the same property that is the subject of your current transaction, you do not have to do anything; the Company will provide the discount, provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is the subject of your current transaction, you must inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction, and the date or approximate date that the escrow closed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction, the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provided the Company information conceming a prior transaction, the Company is required to determine if you qualify for a Hi or»r»iinf discount Effective through November 1, 2014 PRELIMINARY REPORT YOUR REFERENCE: 2815 Jefferson St. Chicago Title Company ORDERNO.: 12202891-996-U50 Request for $20.00 Discount - CA Settlement Use one form for eacii qualifying property. To: Chicago Title Company, 2365 Northside Drive, Suite 500, San Diego, CA 92108 Date: From: (name) Current Address: I believe that I am qualified for the $20.00 discount pursuant to the coordinated stipulated judgments entered in actions filed by both the Attomey General and private class action plaintiffs. I have not previously received a cash payment or a discount from another Company on the property described below: Signed: Date: Address of qualifying property: Approximate date of transaction THIS SECTION IS FOR COMPANY USE ONLY. • The above referenced party is entitled to receive a $20.00 discount on escrow services or title insurance pursuant to the coordinated stipulated judgments entered in actions filed by both the Attomey General and private class action plaintiffs. OR • The above referenced party does NOT qualify for the $20.00 discount pursuant to the coordinated stipulated judgments entered in actions filed by both the Attomey General and private class action plaintiffs for the following reason: • The party has previously received credit for the transaction described above. • The transaction described above did not occur in the time period allowed by the stipulated judgments—May 19, 1995 to November 1, 2002. Fax this response to: Escrow No.: 12202891-996-U50 Escrow Oflicer: Fax Number: ATTACHMENT ONE (Revised 06-03-11) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or govemmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy, (b) Any govemmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date ofPolicy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date ofPolicy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankraptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Govemmental police power, and the existence or violation of those portions of any law or govemment regulation conceming: a. building; b. zoning; c. land use; d. improvements on the Land; e. land division; and f environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing stractures, or any part of them, to be constracted in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; Attachment One (06/03/11) c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankraptcy, state insolvency, or similar creditors' rights laws. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: • For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Covered Risk 16; Covered Risk 18: Covered Risk 19: Covered Risk 21; Your Deductible Amount 1.00% ofPolicy Amount Shown in Schedule A or $2,500.00 (whichever is less) 1.00% ofPolicy Amount Shown in Schedule A or $5,000.00 (whichever is less) 1.00% ofPolicy Amount Shown in Schedule A or $5,000.00 (whichever is less) 1.00% ofPolicy Amount Shown in Schedule A or $2,500.00 (whichever is less) Our Maximum Dollar Limit of Liability $10,000.00 $25,000.00 $25,000.00 $5000.00 AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from; 1. Govemmental police power, and the existence or violation of any law or govemment regulation. This includes building and zoning ordinances and also laws and regulations conceming; land use * improvements on the land *' land division '* environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless; * a notice of exercising the right appears in the public records * on the Policy Date * the taking happened prior to the Policy Date and is binding on you if you bought the land without knowing of the taking 3. Title Risks; that are created, allowed, or agreed to by you * that are known to you, but not to us, on the Policy Date - unless they appeared in the public records * that result in no loss to you * that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: * to any land outside the area speciflcally described and referred to in Item 3 of Schedule A OR '* in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 2006 ALTA LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of 1. (a) Any law, ordinance, permit, or govemmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to Attachment One (06/03/11) (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or govemmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any govemmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date ofPolicy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11,13 or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien ofthe Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or trath-in-lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by govemmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage; EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attomeys' fees or expenses) that arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. 2006 ALTA OWNER'S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of; 1. (a) Any law, ordinance, permit, or govemmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or govemmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any govemmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date ofPolicy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modily or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankraptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is Attachment One (06/03/11) (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by govemmental authority and created or attaching between Date ofPolicy and the date of recording of the deed or other instrament of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage; EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of; 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and that are not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (07-26-10) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance, permit, or govemmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or govemmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any govemmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), Hor 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date ofPolicy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or trath-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by govemmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential stracture, or any portion of it, to have been constracted before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. Attachment One (06/03/11) 203-"X 1 =100' owons DEP 4! B3l • fl 48 12 11 SAN DIBaO COUNTY ASSESSORS MAP BOOK2(>3PAGE11 "miS MAP WAS PREPARB) FOR ASSESSMENT IWOS£S(!)NLY. Nd LIABIUTY iS ASSUMB3 FOR THE ACCURACY OF THE DATA SHOWN. ASSESSOR'S PARCELS MAY NOT COMPLY WH LOCAL SUBDIVISIQW OR BUIITIING OBDINANCES. MAP 15818 - CARLSBAD TCT 06-01 LAGUNA BREEZE CONDOMINIUMS MAP 1722 - SEASIDE LANDS ROS 2816,9217,10619,18380,19344,20160, 21269 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF CARLSBAD VILLAGE PLAZA THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF CARLSBAD VILLAGE PLAZA ("Declaration") is made this day of , , by Bicajessee Adventures LLC, a California limited liability company, its successors and assigns ("Declarant"). RECITALS A. Proiect. Declarant is the owner of the real property located in the City of Carlsbad, San Diego County, California, as more particularly described in Exhibit "A". Capitalized terms under the Recitals are defined in Article 1 below. B. Condominium Proiect. Declarant intends to (i) create a "condominium project" pursuant to the Commercial and Industrial Common Interest Development Act (California Civil Code Section 6500 et seq.), (ii) subdivide the Project as authorized by Government Code Section 66427 into "condominiums" (as defined in Civil Code Section 783), and (iii) impose mutually beneficial restrictions under a general plan of improvement for the benefit of all the Condominiums so created. As part of this subdivision, portions of the Project will be designated as Units and Common Area. C. Declaration. Declarant has deemed it desirable to impose covenants, conditions and restrictions upon the Project which will constitute a general scheme for the management, use, occupancy and enjoyment of the Project, all for the purpose of enhancing and protecting the value, desirability and attractiveness of the Project and enhancing the quality of life within the Project. Each Condominium shall have appurtenant to it a membership in the Carlsbad Village Plaza Owners Association, an unincorporated association. D. Description of Project. The Project consists of a three-story office building that Declarant intends to subdivide into six (6) condominiums. The Project is configured with two levels of offices located above ground level parking. NOW, THEREFORE, Declarant declares that the Project shall be held, conveyed, encumbered, leased, used and improved subject to the following covenants, conditions, restrictions and easements which are hereby declared to be for the benefit of the Project and the Owners thereof, their successors and assigns. These covenants, conditions, restrictions and easements shall run with and burden the Project, and shall be binding upon all parties having or acquiring any right or title in the Project or any part thereof, and their successors and assigns. All provisions of this Declaration are enforceable as equitable servitudes on the Project as described in California Civil Code Section 6856 and are in furtherance of a plan for the subdivision, improvement, maintenance and sale ofthe Project. ARTICLE 1 DEFINITIONS Uniess the context cleariy indicates otherwise, the capitalized terms used in this Declaration are defined as set forth below. 814408.01/SD 373688-00001/6-4-14/lab/kkp -1- 1.1 "Allocable Share" means each Owner's share of Common Expenses which shall be a fraction (i) the numerator of which shall be the Square Footage of such Owner's Unit, and (ii) the denominator of which is the total Square Footage of all Units within the Project. The determination of the Allocable Share of each Unit is set forth in Exhibit "B" attached hereto. 1.2 "Alteration" means an alteration, addition, modification to, or replacement of, (i) all or any portion of the improvements to a Unit, which alteration, addition, modification or replacement (a) is visible from the exterior of a Unit and/or (b) impacts or affects in any manner the structural systems or structural integrity of the Building, the life safety systems of the Building or any shared Utility Facilities and (ii) any portion ofthe Project that is othenA/ise subject to the provisions of Article 5 herein. An Alteration does not include any original installation or construction of an improvement by Declarant. 1.3 "Architectural Guidelines" means any design criteria and construction procedures adopted by the Board pursuant to Article 5 herein. 1.4 "Assessments" means the various charges levied by the Association against the Owners. Specific categories of Assessment are set forth below. ' 1.4.1. "Capital Improvement Assessment" means a charge against each Owner, representing a portion of the cost to the Association for installation or construction of any capital improvements on the Common Area. 1.4.2. "Enforcement Assessment" means any charge against a particular Owner imposed by the Association for the purposes set forth in Section 8.6 herein. 1.4.3. "Regular Assessment" means the amount which is to be paid by each Owner to the Association for Common Expenses. 1.4.4. "Special Assessment" means any charge against any or all Owners that is designated as a Special Assessment in the Governing Documents. 1.5 "Association" means the Carlsbad Village Plaza Owners Association, an unincorporated association, its successors and assigns. 1.6 "Association Rules" means any rules adopted by the Association pursuant to Article 4 hereof, as they may be amended from time to time. 1.7 "Board" means the Board of Directors of the Association. 1.8 "Budget" means the budget for the Association which sets forth the Common Expenses to be allocated among the Owners. 1.9 "Building" means the building in which the Condominiums are located. 1.10 "Citv" means the City of Carlsbad, California. 1.11 "Common Area" shall consist of the Project, except for the Units, as shown on the Condominium Plan, which shall be owned in equal undivided interests by the Owners as tenants-in-common. The Common Area includes (i) all structural components within a Unit which may be required for the support of the building in which the Units are located, except for the finished surfaces thereof including structural walls, columns, floors, roofs and foundations, (ii) any Utility Facilities serving the Common Area or serving more than one Unit, wherever 814408.01/SD 373688-00001/6-4-14/lab/kkp located, and which are not owned or maintained by a public entity, (iii) mechanical shafts, flues and chases containing common Utility Facilities and janitorial, electrical and mechanical rooms, (iv) common lobbies, hallways, showers, balconies, stairwells and restrooms and (v) the ground level parking and landscaped area. Any references in this Declaration to Common Area are references to the Common Area as a whole and to portions thereof. 1.12 "Common Expenses" means the actual and estimated expenses for which the Association is responsible hereunder. Common Expenses include: (a) maintenance, management, operation, repair and replacement of the Common Area; (b) unpaid Assessments; (c) costs of management and administration of the Association, including compensation paid by the Association to managers, accountants, attorneys and employees, and the costs of bonding of the members of the Board, any professional managing agent or any other person handling the funds of the Association; (d) the costs of utilities, trash pickup and disposal, gardening and other services benefiting the Project, including costs of any utilities that serve individual Units but which are subject to a common meter, to the extent such services are paid for by the Association; (e) the costs of fire, casualty, liability, workmen's compensation and other insurance obtained by the Association; (f) reasonable reserves as deemed appropriate by the Board or as otherwise required by the Governing Documents or applicable law; (g) taxes paid by the Association; (h) amounts paid by the Association for the discharge of any lien or encumbrance levied against the Common Area or portions thereof; and (i) other expenses incurred by the Association for the Project and the common benefit of the Owners, or in furtherance of the purposes of, or in the discharge of any duties or powers ofthe Association under, the Governing Documents. 1.13 "Condominium" means an estate in real property as defined in Civil Code Section 6542. A condominium consists of an undivided fee simple ownership interest in the Common Area together with a separate ownership interest in fee in a Unit, and all easements appurtenant thereto as described in this Declaration, the Condominium Plan and the deed conveying the Condominium. 1.14 "Condominium Plan" means (i)the recorded condominium plan(s) covering the Project pursuant to California Civil Code Section 6540, and any amendments thereto; and (ii) any Supplementary Condominium Plans recorded pursuant to the provisions of this Declaration. 1.15 "County" means San Diego County, California. 814408.01/SD 373e88-00001/6-4-14/lab/kkp -3- 1.16 "Declarant" means Bicajessee Adventures LLC, a California limited liability company, and its successors and assigns. Declarant shall also refer to (i) any Persons who acquire any or all of Declarant's interest in the Project for the purpose of purchase or sale and who are assigned any or all of the rights of Declarant by any recorded express written assignment, and (ii) Persons who become successors of Declarant by operation of law or who become fee owners of all of Declarant's interest in the Project upon exercise of the remedies under a mortgage, deed of trust or deed in lieu of foreclosure. 1.17 "Declaration" means this Declaration of Covenants, Conditions and Restrictions of Carlsbad Village Plaza as may be amended or supplemented from time to time. 1.18 "Exclusive Use Area" or "Exclusive Use Easement" means those portions of the Common Area which, subject to the rights ofthe Association and Declarant, are reserved for the exclusive use of the Owners of one or more particular Units in accordance with California Civil Code Section 6550. The Exclusive Use Areas are identified on the Condominium Plan and include Exclusive Use Balconies. Exclusive Use Easements, if any, are appurtenant to such Owner's Condominium. Exclusive Use Areas extend up to, but do not include, the surface of any surrounding walls, railings, floor and ceiling. 1.19 "Governing Documents" collectively means this Declaration, any Architectural Guidelines, any Association Rules and any Supplementary Declarations, either collectively or individually, as may be amended or supplemented from time to time. 1.20 "Hazardous Materials" means and refers to any substance, material or waste which is or becomes (i) regulated by any governmental authority because of its toxicity, ignitability, corrosivity or reactivity; or (ii) defined as a "hazardous substance," "extremely hazardous substance," "hazardous waste," "extremely hazardous waste," "restricted hazardous waste," "Non-RCRA hazardous waste," "RCRA hazardous waste," "recyclable material," "mixed waste," "Medical Waste" or similar material under any federal, state or local statute or regulation promulgated thereunder. As used herein, "Medical Waste" means any "biohazardous waste," "medical waste," "infectious agent," "mixed waste" or other waste under California Health and Safety Code, §§ 11760 et sea. 1.21 "Include(s)". "Including", whether capitalized or not, mean "include(s) without limitation" and "including without limitation," respectively. 1.22 "Invitee" means any person whose presence within the Project is approved by or is at the request of Declarant, the Association or a particular Owner, including Lessees and the visitors, employees, contractors, customers or licensees of Owners or Lessees. 1.23 "Lease" means any lease, license or other agreement whereby an occupant acquires rights to use or occupy any portion of the Condominiums. 1.24 "Lessee" means each Person who, at any given time, is leasing a Condominium under a written Lease. Except as otherwise provided herein, an Owner may not designate a Lessee as primarily responsible for the burdens and obligations imposed on such Owner herein during the term of the Lease, and further may not designate to such Lessee the right to exercise the voting powers granted to such Owner under this Declaration. 1.25 "Maintenance Obligations" refers to the Association's obligations and each Owner's obligations to perform (i) any maintenance obligations and schedules in any warranty offered by Declarant or any manufacturer, and any maintenance obligations and schedules 814408.01/SD 373688-00001/6-4-14/lab/kkp -4- OthenA/ise provided to the Association and/or the Owners by Declarant or any manufacturer, as applicable; (ii) any commonly accepted maintenance practices intended to prolong the life ofthe materials and construction of the Common Area and Units, as applicable and (iii) any maintenance obligations and requirements set forth in this Declaration. 1.26 "Maioritv of the Voting Power" means those Owners collectively owning a majority of the Square Footage within the Project, and so long as Declarant or an affiliate of Declarant owns any portion of the Project, the Declarant. 1.27 "Member" means every Person who qualifies for membership pursuant to Article 3 herein. 1.28 "Mortgage" means any recorded mortgage or deed of trust encumbering a Condominium. A "First Mortgage" shall refer to a Mortgage which has priority over any other Mortgage encumbering a specific Condominium. 1.29 "Mortgagee" means the mortgagee, beneficiary or guarantor under any Mortgage. A "First Mortgagee" means the holder of a Mortgage that has priority over any other Mortgage encumbering a specific Condominium. 1.30 "Owner" means one or more Persons who are alone or collectively the record owner of a fee simple title to a Condominium (including Declarant), or the vendee under an installment land sales contract, but excluding those having any such interest merely as security for the performance of an obligation. 1.31 "Parking Spaces" means those areas within the Project designated for parking purposes, as shown on the Condominium Plan. 1.32 "Person" means a natural individual or any legal entity recognized under California law. When the word "person" is not capitalized, the word refers only to natural persons. 1.33 "Proiect" means all the real property described in Exhibit "A" and all improvements thereon. 1.34 "Sguare Footage" means the floor area of a Unit (including each Unit's pro rata portion of the Common Area), as determined by Declarant for purposes of calculating the Allocable Share, as set forth in Exhibit "B". 1.35 "Supplementary Condominium Plan" means any Condominium Plan (i) which supplements a previously recorded Condominium Plan, (ii) which corrects errors in the originally recorded Condominium Plan, or (iii) which, after the completion of construction, shows the actual "as-built" locations or dimensions of any component of the Project. 1.36 "Supplementary Declaration" means an instrument recorded to (i) modify this Declaration as it applies to the property encumbered by the Supplementary Declaration, (ii) supplement, modify, or clarify conditions, covenants, restrictions or easements described herein and/or (iii) make corrections to the provisions of this Declaration or previously recorded supplementary declaration(s). A Supplementary Declaration may affect one or more Units and/or the Common Area. 1.37 "Unit" means a separate interest in space as defined in California Civil Code Section 6564, such Units and their respective elements and boundaries being shown and 814408.01/SD 373688-00001/6-4-14/lab/kkp described in the Condominium Plan. The dimensions of a Unit are measured from the unfinished floor, walls and ceiling, except as othenA/ise noted herein. Except as otherwise set forth herein, the Unit includes all improvements situated within its boundaries, and includes (i) interior walls (except interior structural walls), (ii) the interior uncoated surfaces of structural walls and perimeter walls, floors and ceilings, (iii) doors and windows, including any sliding glass doors, (iv) fixtures, appliances, cabinets and interior doors, and (v) Utility Facilities that exclusively serve the Unit whether located in the Unit or the Common Area. In interpreting deeds and Condominium Plans, the existing physical boundaries of a Unit, whether in its original state or reconstructed in substantial conformance with the original plans thereof, shall be conclusively presumed to be its boundaries rather than the boundaries expressed in the deed or Condominium Plan, regardless of settling or lateral movements of the Building and regardless of minor variance between boundaries shown on the Condominium Plan or in the deed and those of the Building. 1.38 "Utilitv Facilities" means all utility facilities including intake and exhaust systems, storm water drainage systems (including any pollution control devices), sanitary sewer systems, ducting systems for ventilation and utility services, water systems, natural gas systems, heating and air conditioning systems, electrical systems, fire protection water and sprinkler systems, access control systems, building alarm systems, telephone systems, cable television systems, telecommunications and satellite systems, sump pumps and all other utility systems and facilities reasonably necessary to service any improvement situated in, on, over and under the Project. 1.39 "Voting Power" refers to the total voting power of the Members, which is based on Square Footage. ARTICLE 2 PROPERTY OWNERSHIP. RIGHTS AND EASEMENTS 2.1 Ownership of Condominium. Ownership of each Condominium within the Project shall include (i) fee title to a Unit, (ii) an undivided fractional interest as a tenant-in-common in the Common Area, (iii) a membership in the Association, (iv) subject to the terms of the Governing Documents, any exclusive or non-exclusive easement(s) appurtenant to such Condominium over the Common Area as described in this Declaration, Condominium Plan and the deed to the Condominium and (v) an easement for ingress and egress over the Common Area subject to any Exclusive Use Easement. All Owners and the Project shall be bound by the provisions ofthe Governing Documents upon transfer of title to the first Unit from Declarant. 2.2 Easements Generally. Notwithstanding anything herein to the contrary, this Declaration and the Project shall be subject to all easements and rights-of-way shown on the Condominium Plan, the Project's subdivision map and all other easements of record. In addition, the Owners' interests in the Common Area and Units are subject to the easements and the rights of the Association reserved and granted in this Declaration and the other Governing Documents. Each of the easements reserved or granted under this Declaration shall be deemed to be established upon the recordation of this Declaration and shall henceforth be deemed to be covenants running with the land for the use and benefit of the Owners, the Condominiums, the Association and the Common Area, as applicable. Individual grant deeds to Condominiums may, but shall not be required to, set forth the easements specified in this Article. 814408.01/SD 373688-00001/6-4-14/lab/kkp -6- 2.3 Association Easement. Declarant hereby reserves and grants to the Association non-exclusive, perpetual easements in, to, over and across the Units and the Common Area to the extent necessary to perform in its obligations hereunder and to exercise its rights hereunder. 2.4 Easements Over Common Area. Declarant hereby reserves and grants to all Owners, perpetual, appurtenant, non-exclusive easements for ingress and egress over and upon the Common Area subject to any Exclusive Use Easements and the provisions of the Governing Documents, including (i) the right of the Association to operate, maintain and control the Common Area except as otherwise stated in this Declaration, (ii) the right of the Association to grant, without the consent of the Owners, exclusive and non-exclusive easements over the Common Area and (iii) the right of the Association to make rules and regulations relating to the operation and use of the Common Area (including the parking area); provided, however, that Declarant hereby reserves the right to assign Parking Spaces to Owners as set forth in Section 2.11 below. 2.5 Easements for Utilitv Facilities. Declarant hereby reserves and grants to the Association and each Owner for the benefit of the Project, perpetual, reciprocal, non-exclusive, appurtenant easements to the extent necessary for the use, maintenance, repair, replacement, removal and enjoyment of the Utility Facilities serving the Common Area and each Unit, respectively. If it is necessary for Declarant, the Association or an Owner to repair, maintain, replace or remove any Utility Facilities ("Utility Work"), Declarant, the Association or such Owner shall comply with the following requirements: (i) adequate provision shall be made for the safety and convenience of all persons using the affected areas; (ii) the areas and facilities shall be replaced or restored to the condition in which they were prior to the performance of such Utility Work; (iii) all costs, fees and expenses incurred as a result of such Utility Work shall be borne solely by the party who undertakes such Utility Work; (iv) any construction activities pursuant to such easement rights shall be performed so as to not unreasonably interfere with access to, use, occupancy, or enjoyment of the remainder of the Project, (v) the Owner exercising its rights under such easements shall indemnify, hold harmless and defend the Association and all other Owners from and against all claims, losses, liabilities and expenses (including attorneys' fees and court costs) arising from such exercise, and (vi) all governmental requirements applicable thereto are satisfied. If it is necessary for Declarant, an Owner or the Association to gain access to a Unit in order to perform any Utility Work, the maintaining party shall provide the Owner of such Unit with reasonable advance written notice which specifies the type, duration of, and date upon which access is needed, and the parties shall cooperate such that maintaining party can gain access to such Unit as necessary to complete the Utility Work. The maintaining party shall be responsible for any damage resulting from such entry. 2.6 Support, Settlement and Encroachment. Declarant hereby reserves and grants to the Association and each Owner for the benefit of the Project, perpetual, reciprocal, non- exclusive, appurtenant easements for encroachment, support, maintenance, repair, occupancy and use of such portions of the Units and/or Common Area as are encroached upon, used or occupied as a result of any errors in original construction, movement, settlement, shifting or subsidence ofany building, structure, or other improvements or any portion thereof, or any other cause. In the event any portion of the Project is partially or totally destroyed, the encroachment easement shall exist for any replacement structure that is rebuilt in substantial accordance with the original Project design. Such easement for the encroaching improvement shall exist for as long as the encroachments exists; provided, however, that no valid easement of encroachment shall be created due to the willful misconduct of the Association or any Owner. Any easement of encroachment may, but need not be, cured by repair and restoration of the structure. 814408.01/SD 373688-00001/6-4-14/lab/kkp -7- 2.7 Exclusive Use Area Easement. Declarant hereby reserves and grants for the benefit of specified Owners, perpetual, exclusive, appurtenant easements over the Common Area as Exclusive Use Easements, as shown on the Condominium Plan. 2.8 Creation of Designated Exclusive Use Easements. Subject to the provisions of Article 5 of this Declaration, the Association, shall have the right to grant to an Owner who acquires fee title to two (2) or more adjacent Units, without amending this Declaration or the Condominium Plan, (i) an Exclusive Use Easement on and through any demising wall(s) and/or ceiling/floor assemblies separating two (2) or more Units and (ii) the right to alter, modify or remove such demising walls and/or ceiling/floor assemblies subject to the consent ofthe Board, pursuant to the provisions of Article 5, and the consent of Declarant so long as Declarant owns a Unit in the Project. The Owner of adjacent Units who has removed a demising wall and/or ceiling/floor assemblies or a portion thereof, shall have an easement for ingress, egress and passage through that portion of the demising wall and/or ceiling/floor assemblies which has been removed in the process of connecting the adjacent Units. The easement shall exist only for so long as the connected Units continue to be owned by the same Owner. If and when the Owner of such connected Units transfers one of the Units, prior to the recordation of the deed or instrument of transfer, the demising wall and/or ceiling/floor assemblies shall be reconstructed to its original as-built condition and such easement shall automatically terminate. No modification to any portion of the Common Area shall be made which shall affect the structural integrity of the Project or impair the utilities that may be located therein, or the value of the Project. All costs, and expenses of such modifications shall be borne by the Owner of the Units so joined. If an Owner receives the required approvals hereunder and combines two (2) or more adjacent Units, such Units shall be treated as separate Units for all purposes hereunder, including separate assessments for each individual Unit. 2.9 Delegation of Use. Any Owner entitled to the right of use and enjoyment of the Common Area may delegate such rights to the occupants of such Owner's Condominium. Notwithstanding such delegation of the rights to use the Common Area, an Owner may not delegate to a Lessee any of its voting rights under the Governing Documents, and no such delegation of use shall release an Owner from being primarily liable and responsible for all obligations under this Declaration and the other Governing Documents. 2.10 Right of Access. Every Owner shall have the right to enjoy free and unobstructed passage between such Owner's Unit and all publicly dedicated streets bordering the Project, subject to any restrictions imposed by the City, County or State, and subject to any reservations in the Owner's deed, the Project's subdivision map and the Governing Documents. 2.11 Right Of Entry. Any entry and repair performed by the Association pursuant to this Section shall be performed so as not to unreasonably interfere with access to and use of the Unit by the Owner of such Unit. 2.11.1. Association. The Association has the right to enter the Units and Exclusive Use Areas to inspect the Project, and may take whatever corrective action it determines to be necessary or proper for the maintenance of the Project and to enforce the provisions of this Declaration. Any corrective action taken by the Association under this Subsection shall be made after such Owner's failure to correct such non-compliance within five (5) days of receipt of written notice issued by the Association (unless an emergency situation exists in which case notice is not required). Any damage to a Unit or Exclusive Use Area caused by entry underthis Subsection shall be repaired bythe Association. 814408.01/SD 373688-00001/6-4-14/lab/kkp 2.11.2. Owners. Each Owner shall permit other Owners, and their representatives, to enter its Unit and Exclusive Use Area to perform installations, alterations or repairs to the Utility Facilities serving the entering Owner's Unit if (i) requests for entry are made in advance; (ii) entry is made at a time reasonably convenient to the Owner whose Unit or Exclusive Use Area is to be entered; and (iii) the entered Unit or Exclusive Use Area is left in substantially the same condition as existed immediately preceding such entry. Any damage to the Unit or Exclusive Use Area caused by entry under this Subsection shall be repaired by the entering Owner at such Owner's sole cost and expense. 2.12 Assigned Parking. Declarant shall, so long as Declarant or an affiliate of Declarant owns any portion of the Project have the sole right to assign to Owners an exclusive right to use a Parking Space(s) in the Project ("Assigned Parking Spaces"). Upon assignment by Declarant of a Parking Space, any easements over the Common Area shall be subject to the rights of the Owners to the assigned Parking Spaces. Declarant shall, upon assigning a Parking Space(s) to an Owner, designate such assignment in the records of the Association. Upon assignment of a Parking Space(s) to an Owner, (i) such Owner shall have the exclusive right to the use of the Parking Space(s) so assigned, subject to the rights of the Declarant and the Association set forth herein, and (ii) the Association shall not have the right to change the location of such Assigned Parking Space(s), except as otherwise provided herein. Upon conveyance of a Condominium by an Owner to another Owner, the parking rights assigned to such Owner shall automatically inure to the benefit of the new Owner. Upon conveyance of the last Condominium to a buyer unaffiliated with Declarant, the Declarant shall assign to the Association any Parking Spaces not previously assigned by Declarant. ARTICLE 3 MEIVIBERSHIP AND VOTING RIGHTS 3.1 Membership. Every Owner of a Condominium which is subject to assessment shall be a Member of the Association and be subject to the terms and provisions of the Governing Documents. Membership shall automatically cease when an Owner's ownership interest ceases. Membership shall be appurtenant to and may not be separated from the interest of an Owner in its Condominium. Not more than one membership shall exist based upon ownership of a single Condominium. A Member's voting rights or privileges may be regulated or suspended as provided in the Governing Documents. 3.2 Transfer. The membership held by any Owner shall not be transferred, pledged, assigned or alienated in any way, except that such membership shall automatically be transferred to the transferee of such Owner's Condominium. Any attempt to make a prohibited transfer is void. The Association shall have the right to record the transfer upon the books of the Association without any further action or consent by the transferring Owner. 3.3 Voting Owner. Each Owner shall be entitled to a vote, which vote shall be equal to each Owner's Allocable Share. If there is more than one Owner of a Condominium, the voting rights for each Condominium may not be cast on a fractional basis. Ifthe joint Owners of a Condominium are unable to agree among themselves as to how their voting rights shall be cast, they shall forfeit the vote on the matter in question. Upon the close of escrow on a Condominium by more than one Owner, the Owners of such Condominium must notify the Association in writing of the one Owner who will exercise the voting rights for such Condominium ("Voting Owner"). In the event such Owners do not notify the Association in writing in accordance with this Section, they shall not be entitled to exercise their vote unless and until they deliver written notice to the Association designating the Voting Owner and until such designation is made, the Association can cast the votes, if it so elects, for such 814408.01/SD 373688-00001/6-4-14/lab/kkp -9- Condominium. In the event the Owners desire to designate a different Voting Owner, such request to change the Voting Owner must be made in writing to the Association. If any Owner other than the Owner designated in the records of the Association as the Voting Owner exercises the voting rights of a particular Condominium, such vote shall not be counted and shall be deemed void. 3.4 Voting Rights. An Owner's right to vote shall vest immediately upon the date Regular Assessments commence upon such Owner's Condominium as provided herein. All voting rights shall be subject to the restrictions and limitations provided in the Governing Documents. Except as otherwise provided in this Declaration, all matters requiring the approval of Members shall be deemed approved if (i) a Majority of the Voting Power assent to them by written consent or (ii) such matters are approved by a Majority of the Voting Power of the Owners at a meeting. 3.5 Member Meetings. All meetings of Members shall be held at the Project and shall be noticed and conducted in accordance with the procedures set forth in California Corporations Code Section 7511. Meetings of Members for any purpose may be called at any time by the President of the Association or upon a written request signed by Members representing at least twenty percent (20%) of the Voting Power. Upon receipt of such written request, the Secretary of the Association shall promptly cause written notice to be given to the Members as set forth above. 3.6 Board. The Board shall consist of three (3) directors who shall be Members. Directors shall be elected by the Members at the first meeting of the Members. The candidates receiving the highest number of votes shall be deemed elected. The term of office of the directors shall be one (1) year. Successor directors shall be elected annually to replace those directors whose terms expire. The officers of the Association shall be a President, a Chief Financial Officer and a Secretary. Notwithstanding anything to the contrary contained herein, until the date that Declarant or an affiliate of Declarant no longer owns any interest in the Project, Declarant shall have the right to appoint two (2) members of the Board. Board members appointed by Declarant do not need to be Owners. 3.6.1. Board Meetings. All Board meetings shall be noticed, held and conducted in accordance with California Corporations Code Section 7211. ARTICLE 4 DUTIES AND POWERS OF THE ASSOCIATION 4.1 General Duties and Powers. The Association is an unincorporated association under the laws of the State of California. Upon the conveyance of the first Condominium by Declarant to an Owner, the Association shall be charged with the duties and invested with the powers set forth in the Governing Documents. The Association has been formed for the purpose of performing the obligations of the Association set forth herein and shall have the powers and duties set forth below and any other powers and duties reasonably necessary or proper for the health, comfort, safety and general welfare of the Owners, subject only to the limits on the exercise of such powers listed in Governing Documents. Unless otherwise indicated in the Governing Documents, the powers of the Association may be exercised by the Board. 4.2 Specific Duties and Powers. In addition to the general powers and duties set forth above, the Association shall have the powers and duties set forth below. 814408.01/SD 373688-00001/6-4-14/lab/kkp -10- (a) Enforce the Governing Documents and any resolution of the Board. (b) Prepare Budgets and financial statements for the Association (including amounts for reserves), and levy Assessments against the Owners, as prescribed in the Governing Documents. (c) Contract for utilities, goods and/or services for the Common Area or for the Association, subject to the limitations set forth below. (d) Contract for casualty, liability and other insurance on behalf of the Association. (e) Pay taxes and assessments which are, or could become, a lien on the Common Area or a portion thereof. In addition, to the extent not assessed to or paid by the Owners, the Association shall pay all real and personal property taxes and assessments levied upon any portion of the Project. In addition, if all of the Condominiums are taxed under a blanket tax bill covering all of the Property, each Owner shall pay such Owner's proportionate share of any installment due under the blanket tax bill to the Association at least ten (10) days prior to the delinquency date, and the Association shall transmit the taxes to the appropriate tax collection agency on or before the delinquency date. Taxes assessed against the Project as a whole shall be levied against all of the Owners and their Condominiums based upon their Allocable Share. The foregoing formula shall be used solely to allocate blanket taxes prior to the date assessed values for the individual Condominiums are determined (which assessed values would actually determine the appropriate amount of taxes owing by each Owner). Payments by each Owner pursuant to such formula shall be adjusted upon the actual assessed value for each Condominium when finally determined (i.e., those Owners who pay more than their assessed value indicates is due shall receive a refund of such overpayment, and those Owners who pay less than their assessed value indicates is due shall make a make-up payment for such underpayment). The Association shall, at least forty-five (45) days prior to the delinquency date of any tax installment to be allocated among the Condominiums, deliver to each Owner a copy of the tax bill, along with a written notice setting forth the Owner's obligation to pay its proportionate share of the tax installment and the potential additional charges to the Owner for failure to comply. The Association shall pay the taxes on behalf of any Owner who does not pay such Owner's proportionate share. The Association shall add to the Regular Assessment of a delinquent Owner the amount of any sum advanced, plus interest at the maximum interest rate allowed by law and any amount necessary to reimburse the Association for any penalty or late charge actually assessed in connection with such tax bill, which late charge results from the failure of the delinquent Owner to make timely payment of his or her proportionate share of the taxes. (f) Operate, maintain and inspect the Common Area in conformity with the Maintenance Obligations. (g) Formulate Association Rules for the operation of the Project and for campaigns and elections as set forth in California Civil Code Section 6630 and 6632. In the case of any conflict between the Association Rules and any provisions of the Governing Documents, the provisions of the Governing Documents shall prevail. The Board shall deliver the Association Rules to all Members annually. The Board shall deliver any changes to the Association Rules to all Members upon implementation. 814408.01/SD 373688-00001/6-4-14/lab/kkp -11- (h) Initiate and execute disciplinary proceedings against Owners for violations ofthe Governing Documents, including monetary penalties and temporary suspension of an Owner's rights as a Member (including voting rights). The Board shall deliver any schedule of fines and penalties to all Members annually in accordance with California Civil Code Section 6850. The Board shall deliver any changes to such schedule to all Members upon implementation in accordance with California Civil Code section 6850. (i) Grant and convey easements and/or licenses to any Owner or third party, in, on, over or under any Common Area as necessary for the proper operation of the Project and in accordance with the provisions of this Declaration, so long as any such easement or license does not materially adversely affect any Owner's use and enjoyment of its Unit or Exclusive Use Area, if any. (j) Dedicate any of the Common Area to an appropriate public authority for public use as provided in this Declaration. (k) Approve the construction, installation or acquisition of a particular capital improvement to the Common Area. (I) Acquire and hold, as trustee for the benefit of its Members, tangible and intangible personal property and to dispose of the same by sale or otherwise. (m) Borrow money to improve, repair or maintain the Common Area and to hypothecate any or all real or personal property owned by the Association, including pledging as collateral the Assessments collected thereon. party. (n) Pursue any title claims regarding the Common Area made by any third (o) Delegate its powers, duties, and responsibilities to committees or employees, including a professional managing agent. (p) Comply with the terms of any warranty in favor of the Association for any equipment or facilities within the Common Area. The Association acknowledges that certain warranties require the Association to maintain certain maintenance contracts in effect and, to the extent the Board discontinues such maintenance contracts, the effectives of the warranty may be impaired or eliminated. 4.3 Claims and Actions. Subject to the provisions of this Declaration, the Association shall have standing to institute, defend, settle or intervene in litigation, alternative dispute resolution or administrative proceedings (each, an "Action") in its own name as the real party in interest and without joining the Owners, in matters pertaining to (a) enforcement of the Governing Documents, (b) damage to the Common Area, (c) damage to portions of the Units which the Association is obligated to maintain or repair, and (d) damage to the Units which arises out of, or is integrally related to, damage to the Common Area or the portion of the Units that the Association is obligated to maintain or repair (each, an "Association Claim"). However, the Association shall not have standing to institute, defend, settle or intervene in any Action in any matter pertaining oniy to an individual Condominium and not included in Subsections (c) and (d) above. Each Owner hereby agrees to designate such authority to the Association and assigns to the Association all power and authority as is necessary for any settlement or release of any such Association Claims. Notwithstanding the foregoing, no action shall be taken on an Association Claim without first (i) following the procedures set forth in Section 14.2 below. 814408.01/SD 373688-00001/6-4-14/lab/kkp -12- (ii) notifying the Owners and the Declarant of the initiation of such proceedings as set forth in California Civil Code Section 6876, and (iii) obtaining the consent of two-thirds (2/3rds) of the Voting Power other than Declarant. 4.4 Personal Liabilitv. No member of the Board, or any committee of the Association, or any officer, agent, member, shareholder, director or employee of Declarant (each a "Management Party"), shall be personally liable to any Owner, or any other party, including the Association, for any actions, damages, liabilities, losses, fines or penalties, including attorneys' fees and costs suffered or claimed on account of any act, omission, error, or negligence (collectively, an "Official Act") of any such individual if such individual has, on the basis of such information as may be possessed by such individual or it, acted in good faith and without willful or intentional misconduct. Each person serving on the Board does so as a representative of the Owners or Declarant and not in his or her personai capacity and, in no event shall such person have any personal liability as a result of its serving on the Board. The Association has the power and duty to indemnify, protect, defend and hold harmless each Management Party for all damages, and expenses incurred (including, without limitation, reasonable attorneys' fees), and satisfy any judgment or fine levied as a result of any action or threatened action brought because of an act or omission that such Management Party reasonably believed was an Official Act. Management Parties are deemed to be agents of the Association when they are performing Official Acts for purposes of obtaining indemnification from the Association pursuant to this Section. The entitlement to indemnification under this Declaration inures to the benefit of the estate, executor, administrator and heirs of any person that is a Management Party entitled to such indemnification. The Association has the power, but not the duty, to indemnify any other person acting as an agent of the Association for damages incurred, pay expenses incurred, and satisfy any judgment or fine levied as a result of any action or threatened action because of an Official Act. 4.5 Formation of an Incorporated Association. Upon obtaining the consent of a Majority ofthe Voting Power, the Board may elect to incorporate the Association as a non-profit mutual benefit corporation and, in such case, the Board is hereby authorized on behalf of the Owners to file Articles of Incorporation and draft bylaws to provide for an incorporated Association. The cost of such incorporation shall be a Common Expense. ARTICLE 5 ARCHITECTURAL CONTROL 5.1 Declarant. All references to the Board or the Association contained in this Article shall be deemed to refer to Declarant until such time as Declarant no longer owns any interest in the Project; provided, however, that Declarant may relinquish such right by written notice to the Board at any time, in Declarant's sole and absolute discretion. The provisions ofthis Article shall not apply to any improvements installed by Declarant. 5.2 Scope. No Alterations of any kind whatsoever (including, without limitation, any creation, modification or removal of any walls located between two (2) adjacent Units as described in Section 2.7 above) shall be commenced until complete plans and specifications showing the Alteration's design, location, dimensions, materials and color ("Plans and Specifications") have been submitted to and approved in writing by the Board. All Plans and Specifications of Alterations affecting any of the structural, electrical, mechanical or plumbing components ofthe Building shall be prepared and signed by an architect or engineer licensed to practice in California, and signed by the Owner or by an agent authorized by the Owner in writing, The Board shall have the right, in the Board's sole and absolute discretion, to (i) rely on the expertise of such Owner's architect or engineer, or (ii) submit such Plans and Specifications 814408.01/SD 373688-00001/6-4-14/lab/kkp -13- for review and comment to an architect, engineer or other consultants as deemed appropriate by the Board based on the nature of the proposed Alterations (collectively the "Outside Consultant"), which Outside Consultant shall be duly qualified and licensed in the State of California and shall have no current financial or ownership interest in the Project. The Board shall have the right to establish a fee for the review and approval of all Plans and Specifications submitted to the Board pursuant to the provisions ofthis Article, which fee shall not be less than Five Hundred Dollars ($500.00). In addition to such processing fee, the Board shall have the right to charge a construction oversight fee for all work that is subject to the jurisdiction of the Board. Such construction oversight fee shall be determined from time to time by the Board. Notwithstanding the foregoing, the reconstruction of a Unit or other improvements that were originally constructed by Declarant or approved by the Board under this Article, shall not require such submittal, so long as such improvements are constructed in accordance with the original Plans and Specifications and in a manner otherwise consistent with this Article. In the discretion of the Board, inspections of such improvements in accordance with Section 5.5 below may be performed to ensure compliance with the approved Plans and Specifications. In the event of non-compliance with such Plans and Specifications, the Board shall have all of the rights to require correction of such work. 5.3 Architectural Guidelines. The Board may, from time to time and in its sole discretion, adopt, amend and repeal architectural standards and regulations to be known as "Architectural Guidelines." The Architectural Guidelines may interpret and implement the provisions of this Declaration by setting forth (i) the timelines, standards and procedures for architectural review, (ii) the requirements for the Plans and Specifications, (iii) the guidelines for architectural design of Alterations, placement of Alterations, exterior color schemes, finishes and materials, and similar features which are recommended for use in the Project and (iv) rules and regulations regarding the construction of Alterations; provided, however, that the Architectural Guidelines shall not detract from or conflict with the standards required by this Declaration. The Architectural Guidelines may also set forth time limitations for the completion of any Alterations for which approval is required. The failure of the Board to promulgate Architectural Guidelines or to include any particular standards or guidelines in the Architectural Guidelines shall not limit the right ofthe Board to enforce standards to protect the overall theme and development of the Project. 5.4 Duties and Powers of Board for Architectural Review. Upon such time as Declarant no longer owns any interest in the Project, or upon any earlier relinquishment of Declarant's rights under Section 5.1 above, the Board shall consider and act upon such proposals or plans submitted to it pursuant to the terms hereof and the Architectural Guidelines, administer the Architectural Guidelines to ensure that any Alterations constructed within the Project conform to plans approved by the Board, and carry out all other duties imposed upon it by the Governing Documents related thereto. The Board may exercise all available legal and equitable remedies to prevent or remove any unauthorized and unapproved construction of Alterations within the Project or any portion thereof. 5.5 Inspection and Correction of Work. Upon approval by the Board of any Plans and Specifications, the Owner shall promptly commence construction of the improvements and diligently pursue the same to completion. Upon the completion of any improvements for which approved Plans and Specifications are required under this Article, the Owner shall provide the Board with (i) written notice of such completion, (ii) a copy of the as-built plans for the work performed, (iii) a copy of final acceptance from the applicable governmental authorities (such as a certificate of occupancy or its equivalent) and (iv) mechanics lien releases from all contractors, subcontractors and any other parties who may file a mechanics lien on any portion of the Project, in the form required by California law. 814408.01/SD 373688-00001/6-4-14/lab/kkp -14- 5.5.1. Right of Inspection. The Board or its duly authorized representative may enter into any Unit, from time to time during the course of construction and within thirty (30) days after receiving written notice of completion from the applicant, for the purpose of inspecting such construction to determine whether it was performed in substantial compliance with the approved Plans and Specifications. If the Board determines that such construction and/or installation is not being done in substantial compliance with the approved Plans and Specifications, it shall notify the Owner of the Condominium of such non-compliance not more than thirty (30) days after the inspection specifying particulars of non-compliance, and shall require the Owner to remedy such non-compliance. The Board may not enter onto a Unit without obtaining the prior permission of the Owner or occupant of such Unit; provided, however, that such prior permission shall not be unreasonably withheld and shall be given for entry by the Board during daylight hours within forty-eight (48) hours of the request for entry. Any construction inspection fee imposed by the Board may be utilized by the Board to engage an outside consultant to inspect such work. Notwithstanding the Board's engagement of an outside consultant for inspection purposes and/or imposition of an inspection fee, in no event shall the Board or the Association have any liability or other obligation whatsoever with respect to such work. 5.5.2. Non-Compliance. If, upon the expiration of thirty (30) days from the date of such notification, the Owner has failed to remedy any such non-compliance, the Board shall determine whether there is an issue of non-compliance or a non-compliant improvement or installation, and if so, the nature thereof and the estimated cost of correcting or removing the same. If non-compliance exists, the Board shall require the Owner to remedy or remove the same within a period of not more than thirty (30) days from the date of the Board ruling. If the Owner does not comply with the Board ruling within such period or within any extension of such period as the Board, in its discretion, may grant, the Board, at its option, may either remove the non-complying improvement or remedy the non-compliance and the Owner shall reimburse the Association for all expenses incurred in connection therewith upon demand. If such expenses are not promptly repaid by the Owner to the Association within fifteen (15) days after receipt of such demand, the Board shall levy a Special Assessment against such Owner for reimbursement. 5.5.3. Failure to Notify. If for any reason the Board fails to notify the Owner of any non-compliance within ninety (90) days after receipt of said notice of completion from the Owner, the improvement shall be deemed to be in accordance with said approved Plans and Specifications. 5.6 Bonds. Upon the approval of the proposed Alterations by the Board, and prior to commencement of work, the Board shall have the right to require the Owner making such Alterations to post a bond or bonds in an amount acceptable to the Board to protect the Association and the Project against liens and to insure completion of the work, and to provide the Association with written notice as to commencement of the work, to enable the Association to file a Notice of Non-responsibility. 5.7 Government Regulations. All Alterations shall be constructed in compliance with all applicable building and zoning laws, permits and authorizations and all other laws, ordinances, orders, codes, rules, regulations and requirements of all federal, state, county, municipal governmental agencies and bodies having jurisdiction (collectively, "Governmental Laws"). If there is any conflict between the requirements or actions of the Board and any Governmental Laws, the Governmental Laws, to the extent they are more restrictive, shall control and the Board shall modify its requirements or actions to conform to the Governmental Laws; provided, however, that if the Governmental Laws are less restrictive, the provisions of 81440a.01/SD 373688-00001/6-4-14/lab/kkp -15- this Declaration shall nonetheless apply. The application by an Owner for review and approval by the Board of any Plans and Specifications or other submittals by such Owner shall in no way be deemed to be satisfaction of compliance with any Governmental Laws. Although the Board has the right to require evidence of City approval of the Alterations as a condition to review of the final Plans and Specifications, nothing contained herein shall impose on the Board the duty to obtain evidence of approval by the City of any Alterations as a condition to issuance of final approval or any liability on the Association as a result of the failure of the Board to request evidence of City approval. 5.8 Diligence in Construction. Upon final approval by the Board of any Plans and Specifications, the Owner shall promptly commence construction and diligently pursue the same to completion. In addition, each Owner shall cause all work to be as non-disruptive as practicable to the Project and the Invitees, employees and Owners who use the Project. Each Owner shall disrupt traffic flow and parking as little as possible during construction and shall clean up daily any and all construction debris to the extent reasonably practicable. 5.9 Compensation. The Board shall receive no compensation for services rendered, other than reimbursement by the Association for expenses incurred by the Board in the performance of its duties hereunder (such as retention of a professional architect, engineer or designer as a member of the Board for the purpose of providing professional services), in which event reasonable compensation for such member shall be approved by the Board 5.10 Interpretation and Appeal. All questions of interpretation or construction of any of the terms or conditions herein shall be resolved by the Board, and its decision shall be final, binding and conclusive on all ofthe parties affected. 5.11 Variances. The Board may authorize variances from compliance with any of the architectural provisions of this Declaration. Such variances must be evidenced in writing and must be signed by at least two (2) members of the Board. If such variances are granted, no violation of the covenants, conditions and restrictions contained in this Declaration shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose except as to the particular Unit and the particular provision hereof covered by the variance, nor shall it affect in anyway the Owner's obligation to comply with all Governmental Laws. 5.12 Waiver. The approval by the Board of any Plans and Specifications for any work done or proposed, or for any other matter requiring the approval of the Board under this Declaration, shall not be deemed to constitute a waiver of any right to withhold approval of any similar plan, drawing, specification or matter subsequently submitted for approval. 5.13 Liabilitv. Neither the Declarant, the Board nor any member thereof shall be liable to the Association or to any Owner for any damage, loss or prejudice suffered or claimed on account of (i) the approval or disapproval of any plans, drawings and specifications, whether or not defective; (ii) the construction or performance of any work, whether or not pursuant to approved Plans and Specifications; (iii) the development of the Project or any property within the Project; or (iv) the execution and delivery of an estoppel certificate pursuant to Section 14.13, whether or not the facts therein are correct, provided, however, that such Board member has acted in good faith on the basis of such information as may be possessed by him. 814408.01/SD 373688-00001/6-4-14/lab/kkp -16- ARTICLE 6 USE RESTRICTIONS 6.1 Condominium Use. Condominiums in the Project may only be used for (i) medical, dental, business, professional or administrative office purposes as permitted under the zoning and conditional use permits ofthe City as are applicable to the Project at a particular time and as permitted under this Declaration and (ii) uses then being used in Comparable Projects. As used herein, the term "Comparable Project" means comparable first-class professional or medical office buildings located in San Diego County, California. No Condominium may be used for residential purposes or for commercial, industrial or office purpose other than those set forth above. 6.1.1. Prohibited Uses. Neither the Condominiums nor any part of the Project shall be used for an activity or purpose (i) considered by the Association to pose a nuisance, safety hazard or health risk within the Project, (ii) which would in any way interfere with the quiet enjoyment of another Owner's Condominium or (iii) which shall in any way increase the rate of insurance for the Project, or cause any insurance policy to be cancelled or to cause a refusal to renew the same. 6.2 Signage. Subject to California Civil Code Section 712, 713 and 6704, no signs or other advertising device whatsoever, including without limitation, political and similar signs, shall be erected or maintained within the Project except (i) signs placed or displayed by Owners or Lessees of Condominiums in conformance with the Architectural Guidelines, all applicable federal, state and local laws and regulations, and upon receipt of the approvals required under Article 5, (ii) job identification signs during the time of construction of any portion of the Project by Declarant; and (iii) signs used by Declarant for the purpose of developing, improving and selling Condominiums. Each Owner shall be entitled to signage on the Project's monument sign and in the Building lobby, consistent with the Project standards. Any signs which are approved for installation by an Owner shall be installed only by contractors pre-approved by the Association, and at such Owner's sole cost and expense. 6.3 Parking. 6.3.1. Parking Regulations. No more than one (1) vehicle may be parked within a Parking Space and such vehicle must completely and clearly fit within the designated Parking Space. There shall be no parking in the Project that obstructs free traffic flow, constitutes a nuisance, violates the Association Rules, or otherwise creates a safety hazard. Parking Spaces are for parking of vehicles, bicycles and motorcycles only. No vehicle repair (except in emergencies) or other similar activities may be undertaken in the parking areas. Subject to the rights of Declarant to control the Parking Spaces which have not been assigned by Declarant, the Board may establish additional regulations regarding parking areas not assigned to Condominiums, including designated "guest parking" and "no parking" areas. The Board may take all actions necessary to enforce all parking and vehicle use regulations for the Project, including removing violating vehicles from the Project pursuant to California Vehicle Code Section 22658 or other applicable laws. 6.3.2. Assigned Parking Spaces. All vehicles owned or operated by or under the control of an Owner, a Lessee or an Invitee and kept in the Project must be parked in the Owner's Assigned Parking Space. The right to use an Assigned Parking Space is exclusive to the Owner of the Condominium to which the Parking Space is assigned. An Owner may lease its Assigned Parking Space to its Lessees or to other Owners in the Project and their Lessees, subject to all the requirements of this Declaration and the Association Rules. The conveyance 814408.01/SD 373688-00001/6-4-14/lab/kkp -17- of the Condominium by an Owner shall terminate the lease of such Owner's Assigned Parking Space. 6.3.3. Relocation Based Upon Agreement of Owners. If an Owner desires to exchange its Assigned Parking Space with another Owner and both affected Owners voluntarily agree to the exchange, the Association shall enter such change in the Association's records. In no event shall the Association be deemed to have any approval rights over any such exchange. Upon the change in the Association's records, the new Assigned Parking Spaces shall inure to the benefit of the future Owners of the affected Condominiums. 6.3.4. Parking Sufficiency. No Unit shall be used for any purpose which would, as of the date of commencement of such use, cause the total number of Parking Spaces within the Project to be less than that required by Governmental Laws. Prior to any Owner or Lessee undertaking any construction within a Unit which would require a building permit from the City, the Owner or Lessee shall submit an application to the Association for a determination of parking sufficiency prior to the Owner or Lessee applying to the City for a building permit for such work. The Board shall review the proposed plans of the applicant to establish the impact of the proposed work on the parking availability within the Project. No Owner or Lessee shall apply for a building permit for such work unless the Board has certified in a manner acceptable to the City that the proposed work will not cause parking usage impact with respect to occupants of the Unit relative to square footage of the Unit as required by the requirements of the City for the Project. If the applicant is unable to effect its proposed work because the results of such work would require parking in excess of that allocated to the particular Unit, the applicant, with prior written consent of the Board, shall be entitled to acquire additional parking from excess parking capacity from another Owner in the Project by license or easement running forthe duration ofthe applicant's use provided that such acquisition will not be inconsistent with the City parking ordinances or other requirements. Such additional spaces shall not include those spaces designated on the Condominium Plan as handicapped or visitor parking unless the City consents thereto. An applicant shall also be entitled to request that the Board consider as acceptable additional parking arrangements situated off the site of the Project provided that the City agrees to such offsite parking arrangements being acceptable. 6.3.5. Electric Vehicle Charging Station. Any Owner intending to install an electric vehicle charging station in its Assigned Parking Space must first obtain the prior written approval of the Board pursuant to Article 5. Notwithstanding anything to the contrary contained in Article 5, however, the Board shall approve any such installation if such Owner agrees in writing to do all of the following; (i) comply with the architectural standards established by the Board as set forth in the Architectural Guidelines or as othenA/ise established under Article 5, (ii) engage a licensed contractor to perform such installation, (iii) within fourteen (14) calendar days of approval by the Board, provide a certificate of insurance that names the Association as an additional insured under such Owner's liability insurance policy and (iv) pay for the electricity usage associated with such station. The installing Owner and each successive Owner using the Assigned Parking Space on which or near where the electric vehicle charging station is placed shall be responsible for all of the following: (a) costs for damage to the station, Common Area or adjacent Units resulting from the installation, maintenance, repair, removal, or replacement of the station, (b) costs for the maintenance, removal, repair and replacement of the electric vehicle charging station until it has been removed from the Common Area, (c)the cost of electricity associated with the station, (d) disclosing to prospective buyers the existence of any electric vehicle charging station and the related responsibilities of such Owner and (e) the cost of maintaining a liability coverage policy in the amount of one million dollars ($1,000,000) covering the obligations of such Owner under Subsections (a) and (b) above and naming the Association as an additional insured under such Owner's liability insurance policy with a right to 814408.01/SD 373688-00001/6-4-14/lab/kkp -18- notice of cancellation. The Association may approve the installation of an electric vehicle charging station for the exclusive use of an Owner in a portion of the Common Area other than that Owner's Assigned Parking Space only if it would be physically impossible or unreasonably expensive to install an electric vehicle charging station within such Owner's Assigned Parking Space. In such case, the Association shall enter into a license agreement with such Owner for the use of such portion of the Common Area and such Owner shall othenA/ise comply with the provisions of this Section. 6.4 Prohibited Modifications. No Alteration shall be commenced without the prior written approvals required under Article 5 of this Declaration. Nothing shall be done in or to any Condominium which (i) will or may tend to impair the structural integrity of any other Condominium or other improvement in the Project or which would structurally alter the Building except as othenA/ise expressly provided herein, or (ii) may damage or interfere with utility lines or other Utility Facilities which serve the Common Area or other Condominiums. In addition to the foregoing, all improvements installed or constructed by an Owner within the Project must be completed in accordance with applicable laws, regulations and ordinances. Window tinting and coverings shall be prohibited unless approved by the Board. This Section does not apply to improvements installed or altered by Declarant. 6.5 Installation of Eguipment. All data processing, computers, printing facilities, business machines and equipment, kitchen equipment and all other mechanical equipment installed in any Unit shall be designed, installed, maintained and used by the Owner as to reduce insofar as possible the transmission level of noise, vibration, odors and other objectionable transmissions from such Unit to any other portion of the Project. 6.6 Fire Sprinkler Svstems. No Owner may turn off or otherwise disable the fire sprinkler system servicing such Owner's Unit or the Building without first (i) obtaining the approval ofthe Board and (ii) providing reasonable prior written notification (and in no event less than 24 hours) to the other Unit Owners within the Building ofthe proposed shut off. In no event shall any Owner cause the fire sprinkler system to be shut off or disabled for a period longer than twelve (12) consecutive hours. All Owners shall be required to use contractors pre- approved by the Association for the construction, maintenance and repair of the fire sprinkler systems. 6.7 Antennae and Solar Svstems. There shall be no (i) television or radio antennae, masts, satellite dishes, transmitter tower or facility, or (ii) solar energy system, constructed, installed or maintained in or on the Project without approval of the Board pursuant to Article 5. However, in considering whether to approve an antenna or solar energy system, or to impose requirements on such approval, the Board shall not violate any applicable law or regulation, including any applicable regulations of the Federal Communications Commission and California Civil Code Sections 714, 714.1 and 6708. Nothing herein stated is intended to apply to any antennae, masts, satellite dishes or related equipment installed in the Project pursuant to an agreement entered into by Declarant or the Association. Any Owner who installs any of such facilities in or on the Project shall indemnify, defend and hold the Association harmless from any Claims as defined in Section 6.8.3 arising from or relating to the installation, use, operation, maintenance, repair and replacement of such facilities. 6.8 Hazardous Materials. Each Owner, occupant and user shall in all respects handle, treat, use, store, dispose and manage any and all Hazardous Materials in, on, under or about the Project in total conformity with all applicable Hazardous Materials laws and prudent industry practices regarding management of such Hazardous Materials, at such Owner's sole cost and expense. Owners shall neither cause nor permit any Hazardous Material to be used. 814408.01/SD 373688-00001/6-4-14/lab/kkp -19- generated, stored, transported, handled or disposed of on or about the Project except for (i) general office and cleaning supplies typically used in offices in the ordinary course of business, and (ii) Medical Waste, with the prior approval of the Board and in such amounts as are reasonably necessary for the operation of an Owner's medical practice. Medical Waste shall not be deposited in the Common Area waste disposal facilities, but shall be handled separately by each Owner or occupant of a Unit in a reasonable, safe and prudent manner and in compliance with the Association Rules. All such Medical Waste shall be stored in locations and containers reasonably approved by the Board. Any Owner storing Hazardous Materials shall provide the Board with a quarterly manifest of such Hazardous Materials. Upon transfer of possession of a Condominium such transferor shall cause all Hazardous Materials to be removed from the Condominium and transferred and transported for use, storage or disposal in accordance with and compliance with all applicable Hazardous Materials laws. 6.8.1. Clean Up. Each Owner covenants to investigate, clean up and otherwise remediate any spill, release or discharge of Hazardous Materials caused by the acts or omissions of such Owner, or its contractors, agents, representatives or Invitees at such Owner's sole cost and expense. Such investigation, clean up and remediation, if involving the Common Area, shall be performed after such Owner has obtained the Association's written consent, which shall not be unreasonably withheld, provided, however, that such Owner shall be entitled to respond immediately to an emergency without first obtaining the Association's written consent. 6.8.2. Notification. Each Owner shall immediately, and in any event within twenty-four (24) hours, notify the Association in writing of: (i) any spills, releases or discharges of Hazardous Materials within its Unit or in any Common Area of which said Owner has knowledge, regardless of whether or not such spill, release or discharge was caused by such Owner; (ii) any enforcement, cleanup, removal or other governmental or regulatory action instituted, completed or threatened pursuant to any Hazardous Materials laws; (iii) any claim or threatened claim by any person against the Owner, the Owner's Unit or the Building relating to damage, contribution, cost recovery compensation, loss or injury resulting from or claimed to result from the presence of any Hazardous Materials; and (iv) any reports or notices made to or received by any environmental agency arising out of or in connection with any Hazardous Materials present in or released or removed from the Owner's Unit or the Building, including any complaints, notices, warnings or asserted violations in connection therewith. Each Owner shall also supply to the Association as promptly as possible, and in any event within five (5) business days after such Owner first receives or sends the same, copies of all claims, reports, complaints, notices, warnings or asserted violations, relating in any way to the Owner's Unit, the Building or the Owner's use thereof. Upon the request of any Owner, the Association shall provide such Owner with copies of any notices, reports or other information received by the Association pursuant to this subsection. 6.8.3. Insurance/Indemnity. The Owner and Lessee of any Unit where Hazardous Materials are used or stored shall, at its cost, maintain for the duration of its occupancy, liability and property insurance covering such party against claims for bodily injury, personal injury and property damage arising out of such party's operations and for such party's assumed liabilities hereunder in an amount and with insurance carriers acceptable to the Association, and shall annually deliver certificates of insurance evidencing that such insurance remains in effect to the Association. Each Owner shall indemnify, defend and hold the Association, the Declarant, and all other Owners harmless from and against any and all claims, judgments, damages, penalties, fines, liabilities, losses, suits, administrative proceedings and costs, including attorneys' and consultants' fees (collectively, "Claims") arising from or related to the use, presence, transportation, storage, disposal, spill, release or discharge of Hazardous 814408.01/SD 373688-00001/6-4-14/lab/kkp -20- Materials present within such Owner's Unit otherwise present on the Common Area to the extent such Claims are caused in whole or in part by the acts or omissions of such Owner, its agents, representatives or Invitees. 6.9 Leasing. All Leases shall be in writing, shall provide that the Lease is subject to the Governing Documents and shall provide that any failure to comply with the terms of the Governing Documents shall be a default underthe Lease. A copy ofthe Governing Documents shall be made available to each Lessee by the Owner so leasing. All Lessees are responsible for complying with the Governing Documents. Any Owner who leases his Condominium shall be responsible for its Lessees' and its Lessees' Invitees' compliance with the Governing Documents. All Owners who lease their Condominiums shall submit names and contact numbers for themselves and their Lessees to the management company for the Project. Copies of all leases shall be provided to the Association upon execution, along with certificates of the Lessee's insurance, naming Declarant (so long as Declarant owns any interest in the Project), the Association and the Association's management company as additional insureds. 6.10 Closure. At the request of the Association, the Owner of a Condominium shall, following the permanent closure or cessation of any business operation which is expected to continue for any extended period of time, enclose the windows and entrances of such Condominium or portion thereof previously occupied by such business operation in a reasonably attractive manner as determined by the Board. 6.11 Air Pollution. No air pollutants or contaminants sufficient to create a nuisance shall be discharged, and no processes which by their nature are likely to cause air pollution shall be undertaken or permitted unless there is available an adequate, economically feasible method of controlling the omission or contaminates, and such controls are approved by the Board. Notwithstanding the foregoing. Owners may use and/or store medical gases in such amounts as are reasonably necessary for the operation of an Owner's business, so long as such medical gases are used and stored in accordance with the Governing Documents and all applicable governmental laws, ordinances, regulations, codes and rules. 6.12 Trash Disposal. No garbage, trash, rubbish, or other waste material shall be kept or permitted in the Common Area except in garbage cans, trash containers, or other waste receptacles provided for the use of the Owners. Until removal to the dumpsters located within the Project, all rubbish, trash, recycling, garbage and other waste shall be stored within the individual Units in a sanitary and neat manner. Rubbish, trash, recycling, garbage and other waste shall be regularly removed from the Unit to the dumpsters located in the Project, and shall not be allowed to unreasonably accumulate within the Unit. No equipment, garbage cans, or storage piles shall be kept on the outside of any Unit. Under no circumstances may explosives, fireworks, or highly flammable materials (such as gasoline, kerosene, oil, oil-based paints, or solvents) or Medical Waste, be disposed of in the trash receptacles or anywhere else in the Project. Any and all costs incurred by the Association for the removal of combustible or toxic materials or Medical Waste from the Project shall be borne by the offending Owner at such Owner's sole cost and expense. 6.13 Animals. With the exception of trained dogs used for assistance by visually impaired, hearing impaired or physically handicapped persons, no animals, reptiles, insects or birds of any kind shall be raised, bred, or kept in any Condominium or in any portion of the Project. 6.14 Water Qualitv Protection. To protect the quality of our nation's waters, a number of federal, state and local laws, ordinances, rules, regulations and orders prohibit the discharge 814408.01/SD 373688-00001/6-4-14/lab/kkp -21- of anything other than natural rain water into storm drain systems, including gutters and streets that drain into storm drains. These governmental requirements include the Clean Water Act, the National Pollution Discharge Elimination System, orders and permits of the State Water Resources Control Board and the Regional Water Quality Control Board, the ordinances and regulations of the City and County, and any Storm Water Pollution Prevention Plan covering the Project. Most discharges of anything other than natural rain water into storm drain systems are unlawful and may result in significant penalties and fines. Each Owner and the Association (i) shall comply with, and cause its contractors to comply with, all such governmental requirements and the requirements of any other applicable governmental agency regarding the use, storage and disposal of toxic or hazardous chemicals, hydrocarbon compounds such as gasoline, motor oil, antifreeze, solvents, paints, paint thinners, wood preservatives fertilizers, plant clippings and waste, detergents, pet waste, pesticides, fungicides, herbicides, insecticides, fertilizers and other Hazardous Materials, and (ii) shall not discharge or permit any of the foregoing to be disposed in the Project or discharged into any street, gutter, storm drain or storm water conveyance system. Owners and the Association should consult with the City, other governmental authorities, and their refuse hauler regarding the proper disposal of any such materials. Each Owner and the Association shall indemnify, protect, defend and hold Declarant and its officers and directors harmless from any and all claims, liability, actions, penalties or damages (including attorney's fees, experts' fees and costs) arising from or attrit)utable to the Owner's or Association's failure to comply with the requirements of this Section. 6.15 Compliance with Laws. Neither an Owner nor the Association shall permit anything to be done or kept in its Unit or the Common Area, as applicable, that violates any law, ordinance, statute, rule or regulation of any local, county, state or federal body, including any laws, ordinances or statutes pertaining to the use or storage of any Hazardous Materials. It shall be the responsibility of each Owner to ascertain and comply in all material respects with the zoning, use and other restrictions imposed by the City for the Unit and the Project. 6.16 Mechanic's Liens. No Owner may cause or permit any mechanic's lien to be filed against the Project for labor or materials alleged to have been furnished or delivered to the Project or any Unit for such Owner, and any Owner who does so shall immediately cause the lien to be discharged within five (5) days after notice to the Owner from the Board. If any Owner fails to remove such mechanic's lien, the Board may discharge the lien and charge the Owner a Special Assessment for such cost of discharge and all related costs and overhead. 6.17 Rights of Disabled. Subject to the provisions of Article 5 and Article 7, each Owner may modify its Condominium and the route over the Common Area leading to the front door of its Condominium, at its sole expense, to facilitate access to its Condominium by persons who are visually impaired, deaf or physically disabled, or to alter conditions which could be hazardous to such persons in accordance with California Civil Code Section 6714 or any other applicable law. 6.18 Access Restrictions. Owners and Invitees shall not at any time or for any reason whatsoever enter upon or attempt to enter upon (i) the roof of the Project; (ii) janitor and utility closets and rooms and (iii) utility chases and plenums, without the prior approval of the Board. Notwithstanding the foregoing and subject to obtaining prior approval of the Board, individuals authorized as approved HVAC, antenna and/or solar energy system maintenance contractors by the Board may access the roof area for the limited purpose of maintaining, repairing or replacing the HVAC, antenna and/or solar energy system equipment servicing an Owner's Unit. 814408.01/SD 373688-0000ire-4-14/laWkkp -22- ARTICLE 7 REPAIR AND MAINTENANCE 7.1 Maintenance by Owners. Each Owner shall be responsible for the maintenance, repair and replacement, as applicable, of those components of its Condominium set forth below in a first-class condition and in accordance with the Maintenance Obligations. Each Owner, if required by the Association, shall use the same janitorial service for its Unit as that used by the Association for the Common Area ("Association Janitor"). Owners may also clean their own Units: however, in no event may Owners contract with any janitorial service other than the Association Janitor, without the prior approval ofthe Board. (a) Maintaining, repairing and replacing the interior of the Unit, including all fixtures and appliances, ceiling tiles and dropped ceiling frames. (b) Maintaining, repairing and replacing the windows and doors enclosing the Unit, including the frames, tracks and screens; provided, however, the Association shall (i) clean the exterior of all such windows and doors and (ii) contract for the repair and replacement of windows, in which event the Owner will reimburse the Association for its costs so incurred. (c) Maintaining, repairing and replacing all Utility Facilities serving solely that Owner's Condominium to the point where such Utility Facilities connect with a portion of the applicable utility system that serves more than one Unit (whether located within or outside the surface of the perimeter walls, floors and ceilings thereof), including the HVAC unit on the roof of the Building (except for the fire sprinkler system, which shall be maintained by the Association). Owners shall be required to use contractors pre-approved by the Association for the maintenance of roof mounted HVAC equipment, any fire sprinkler systems and for the installation and maintenance of any antennae and/or solar energy system equipment installed pursuant to Section 6.7. Notwithstanding anything to the contrary contained herein, an Owner shall use the original roofing contractor for any roof improvement, or penetration contemplated in this Section if using another contractor would void any existing roofing guaranties or warranties, unless otherwise authorized by the Board. In the event of a dispute between Owners with respect to the repair, maintenance, or rebuilding of the Utility Facilities, or with respect to the sharing ofthe cost thereof, then, upon written request of one (1) of such Owners addressed to the Association, the matter shall be submitted to arbitration pursuant to the rules ofthe Judicial Arbitration and Mediation Service, and the decision ofthe arbitrator shall be final and conclusive on the parties. 7.2 Maintenance bv Association. From and after commencement of the Association's Regular Assessments, the Association shall maintain the Common Area except for those items of maintenance which the Owners are required to perform pursuant to this Declaration. The Association shall provide for all necessary maintenance services and cause all acts to be done which may be necessary or proper to assure the maintenance of the Common Area in a good and workmanlike manner consistent with other institutional quality projects in the market and in compliance with the Maintenance Obligations. Declarant shall, at Declarant's expense, maintain the Common Area until the obligation of the Association to maintain the Common Area commences. The Association's maintenance obligations include those components set forth below. (a) Maintaining, repairing and replacing the Common Area including the landscaping, irrigation systems, hardscape, Parking Spaces and drainage systems, subject to the obligations of any Owners to maintain certain Exclusive Use Areas as provided in Section 7.1 ofthis Declaration. 814408.01/SD 373688-00001/6-4~14/lab/kkp -23- (b) Maintaining, repairing and replacing the central mail boxes, trash area, exterior lighting and monument signs within the Common Area. (c) Maintaining, repairing and replacing all Utility Facilities serving two or more Condominiums to the point of connection to the public system, in a safe and sanitary condition. (d) Cleaning the exterior of windows and doors enclosing the Unit. (e) Maintaining, repairing, testing, inspecting, replacing and monitoring the fire prevention systems, including back-flow testing, in compliance with all applicable City requirements and manufacturer's recommendations. 7.3 Emergencv Repairs. In the event of any occurrence which threatens imminent danger to persons or property, one or more Owners of the Units in the Building may take appropriate actions to make any emergency repairs until the Association can correct the malfunction. Such repairing Owner shall not be deemed guilty of trespass by reason of such entry. 7.4 Failure to Maintain. If an Owner defaults in his or her maintenance or repair obligations, the Board may give written notice of such default, stating with particularity the work of maintenance or repair the Board finds to be required and requesting that the same be completed in a reasonable period of time as specified in the notice. In the event the Owner fails to complete such maintenance or repair within the period specified in the notice, the Board may cause such work to be completed and assess the Owner the cost thereof, plus an administration/coordination fee, as a Special Assessment. 7.5 Damage Bv Owners. Each Owner is liable to the Association for any damage to the Common Area caused by an act of such Owner or its Invitees. The Association may levy a Special Assessment equal to the cost of repairing the damage. The amount of the Special Assessment shall include (i) the amount of any deductible paid on the insured portion ofthe loss (if the Board elects to make a claim on the Association's policies), (ii) all costs and expenses actually incurred by the Association to correct damage that is not covered by the Association's insurance or for which the Association has elected not to make an insurance claim, and (iii) the amount of the increase, if any, in insurance premiums directly attributable to the damage caused by such Owner. If a Condominium is jointly owned, the liability of its Owners is joint and several, except to the extent that the Association has previously contracted in writing with the joint owners to the contrary. 7.6 Inspection of the Proiect. The Board shall periodically cause an inspection of the Project to be conducted ("Condition Inspections") to (i) determine whether the Common Area is being maintained adequately in accordance with the standards of maintenance established herein, (ii) identify the condition of the Common Area, including the existence of any hazards or defects, and the need for performing additional maintenance, refurbishment, replacement, or repair, (iii) recommend preventive actions which may be taken to reduce potential future maintenance costs and (iv) report any violations of the Maintenance Obligations and any warranty provided to the Association. The Board may prepare a report of the results of the Condition Inspections, to be furnished to Owners. The Board may employ such experts, contractors and consultants as are necessary to perform the inspections. 814408.01/SD 373688-00001/6-4-14/lab/kkp -24- ARTICLE 8 ASSESSMENTS 8.1 Creation of the Lien and Personal Obligation of Assessments. Each Owner, including the Declarant, shall pay to the Association all Assessments fixed, established and collected from time to time as provided in this Declaration. The Assessments (except Enforcement Assessments), together with interest, late charges, attorneys' fees and court costs, and other costs of collection thereof as set forth in California Civil Code Section 6808 (collectively, "Collection Costs") shall be a continuing lien upon the Condominium against which each such Assessment is made. The Assessments, including Enforcement Assessments, together with all related Collection Costs, shall also be the personal obligation of the Owner of such Condominium at the time when the Assessment is levied. The personal obligation shall not pass to the successors in title of an Owner unless expressly assumed by such successors. 8.2 Association Funds. The Association shall establish no fewer than two (2) separate accounts into which shall be deposited all money paid to the Association and from which disbursements shall be made, as provided in this Declaration. Such accounts may be established as trust accounts at a banking or savings institution and shall include: (i) an operating fund for current Common Expenses, (ii) an adequate reserve fund for the portion of Common Expenses allocated to (a) reserves for the maintenance, repair and replacement of improvements which the Board does not expect to perform on an annual or more frequent basis, and (b) payment of deductible amounts for insurance policies which the Association obtains, and (iii) any other funds which the Association may establish. 8.3 Regular Assessments. Beginning on the date of commencement of Assessments, as set forth in Section 8.3.2 below, each Owner shall, on a monthly basis (or, if the Board so elects, on a semi-annual or quarterly basis) pay to the Association on the first day of each such billing period one twelfth (1/12th) (or the appropriate Allocable Share if payments are not made on a monthly basis) of its Allocable Share of Common Expenses, as such Owner's Regular Assessment, based upon the Budget adopted by the Board. All Regular Assessments shall be payable in the amount specified by the Association and no offsets against such amount shall be permitted for any reason. 8.3.1. Estimates of Common Expenses. Estimates of the Common Expenses shall be subject to review and change in accordance with the provisions set forth in this Article. Prior to the Association's first fiscal year and not less than thirty (30) days nor more than ninety (90) days prior to each subsequent fiscal year, the Board shall adopt a Budget. Within ninety (90) days after the end of each fiscal year, the Board shall give each Owner a statement of the Common Expenses applicable to such Owner for such fiscal year. If any Owner has paid more than its Allocable Share of Common Expenses as applicable during any fiscal year, such funds shall be carried over to future assessment payments and applied to reduce future assessments. If any Owner has paid less than its Allocable Share for such fiscal year, then such Owner shall pay to the Association within thirty (30) days following the receipt of the Association's statements the deficiency in its Allocable Share. 8.3.2. Date of Commencement of Regular Assessments. The Regular Assessments shall commence as to all Condominiums on the first day of the month following the conveyance of the first Condominium by Declarant to an individual Owner. 8.4 Capital Improvement Assessments. The Association may levy a Capital Improvement Assessment, for the purpose of defraying, in whole or in part, the cost of any construction or replacement (other than due to destruction or a taking) of a capital improvement 814408.01/SD 373688-00001/6-4-14/lab/kkp -25- upon the Common Area, including the necessary fixtures and personal property related thereto. All amounts collected as Capital Improvement Assessments may only be used for capital improvements and shall be deposited by the Board in a separate bank account to be held in trust for such purposes. 8.5 Special Assessments. Special Assessments may be levied by the Board against a Condominium to reimburse the Association forthe expenses set forth below. The Board may, in its discretion, prorate such Special Assessment over the remaining months of the fiscal year or levy the assessment immediately against each Condominium. (a) Any charge designated as a Special Assessment in the Governing Documents. (b) If the Board determines that the estimate of Common Expenses for the current year is or will become inadequate to meet actual Common Expenses for any reason. (c) Any charge imposed by the Association as a means of reimbursing the Association for costs incurred to repair damage to, or excessive use of, the Common Area for which an Owner or an Owner's Invitees were responsible. (d) If the Association undertakes to provide materials or services which benefit individual Condominiums or Owners (such Owners, in accepting such materials or services, agree that the costs thereof shall be a Special Assessment). (e) An assessment to replenish the Association's reserve account. Except in the case of an Emergency (as defined below), if the Special Assessment exceeds in the aggregate ten percent (10%) of the budgeted gross expenses of the Association for that fiscal year, it must be approved by a Majority of the Voting Power. For the purpose of this Section, an "Emergency" shall mean an extraordinary expense necessary to repair or maintain the Common Area where a threat to personal safety or substantial property damage is discovered. 8.6 Enforcement Assessments. Enforcement Assessments may be levied by the Board against an Owner and its Condominium as a penalty imposed as a disciplinary measure for failure of an Owner or occupants of the Owner's Condominium to comply with the Governing Documents. Except to the extent an Enforcement Assessment is to reimburse the Association for Collection Costs, an Enforcement Assessment shall not constitute a lien on the Owner's Condominium. 8.7 Rate of Assessment. Each Owner of a Condominium as to which assessments have commenced shall pay its Allocable Share of Regular Assessments. Each Owner acknowledges that there are many different measurement standards for a Condominium and that Declarant shall have the sole right to adopt its measurement standard. The measurements for purposes of calculating Square Footage shall not affect any other measurements made by an Owner or Lessee for its own purposes. By accepting a deed to its Condominium, each Owner acknowledges and agrees that it shall have no right to challenge its Allocable Share of assessments as set forth in Exhibit "B". Capital Improvement Assessments shall be allocated in the same manner as Regular Assessments. Special Assessments shall be levied directly to the individual Condominiums in equal proportions to the Owners benefiting from such Special Assessment. 814408.01/SD 373688-00001/6-4-14/lab/kkp -26- 8.8 Notice to Owners. The Association shall provide individual notice to the Owners pursuant to California Civil Code Section 6514 of any increase in the Regular Assessments or Special Assessments, not less than thirty (30) days and not more than sixty (60) days prior to the increased assessment becoming due and payable. 8.9 Failure to Fix Assessments. If before the expiration of any fiscal year, the Association fails to fix Regular Assessments for the next fiscal year, the Regular Assessment established for the preceding year shall continue until a new Regular Assessment is fixed. 8.10 Collection of Assessments. 8.10.1. Delinquency. Any Assessments, other than an Enforcement Assessment, which are not paid within fifteen (15) days after the due date established by the Board shall be delinquent. The Association may recover the Collection Costs associated with the delinquency of any Assessment. 8.10.2. Notification of Delinguencv. The Association shall comply with California Civil Code Sections 6808 et. seq. and 6820 et. seq. when collecting delinquent Assessments. At least thirty (30) days prior to recording a lien to collect a delinquent Assessment, the Association shall send a written notification to the delinquent Owner as required in California Civil Code Section 6812. 8.10.3. Recording a Lien. The amount of the delinquent Assessment, plus any Collection Costs, shall be a lien on the Owner's Condominium from and after the time the Association records a notice of delinquent assessment in the County Recorder's Office as set forth in California Civil Code Section 6814, together with an itemized statement of the charges owed by the Owner. A lien created pursuant to this Section shall be prior to all other liens recorded subsequent to the notice of assessment. 8.10.4. Foreclosure. Subject to the limitations set forth below, after the expiration of thirty (30) days following the recording of a lien created pursuant to Section 8.10.5, the lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee designated in the notice of delinquent assessment, or sale by a trustee substituted pursuant to California Civil Code Section 2934a. Any sale by the trustee shall be conducted in accordance with California Civil Code Sections 2924, 2924b, and 2924c applicable to the exercise of powers of sale in mortgages and deeds of trust. The Association shall be subject to those limitations on foreclosure of Assessment liens set forth in California Civil Code Section 6820 et. seq. 8.10.5. Notice to Mortgagees of Right to Cure. If the Board files a notice of delinquent assessment as provided above, it shall give notice of such filing to any Mortgagee which has given written notice to the Board of its desire to receive such notice. Such Mortgagee shall have the nght, but not the obligation, both before and for sixty (60) days after notice of the recording of the Association's lien, to cure such defaults, including the payment of interest and other charges as provided herein. 8.11 Pavment of Lien. In the event that a lien or encumbrance not covered by California Civil Code Section 6658 attaches to all or substantially all of the Project by reason of judgment or othenA/ise, the Association shall promptly take the appropriate steps to remove such lien, including the payment of money and the posting of a bond. The Association shall have the power to borrow money and to take such other steps as are necessary to free the Project of such liens. In addition, the Association shall levy a Special Assessment against all of 814408.01/SD 373688-00001/6-4-14/lab/kkp -27- the Members whose Condominiums were subject to such lien or encumbrance equal to each such Member's pro rata share of such lien or encumbrance. 8.12 No Offsets. No offsets against Assessments shall be permitted for any reason, including (i) a claim that the Association is not properly exercising its duties of maintenance, operation or enforcement, and (ii) by waiver of the use and enjoyment of the Common Area, or by abandonment of such Owner's Condominium. 8.13 Transfer of Propertv. After transfer or sale of a Condominium, the selling Owner shall not be liable for any assessment levied on such Owner or its Condominium after the date of such transfer of ownership. However, the selling Owner shall still be responsible for all assessments and charges levied on its Condominium prior to any such transfer and shall require any such amounts to be paid to the Association out of the escrow for the sale of such Condominium to a third party. 8.14 Subordination of the Lien to First Deeds of Trust and First Mortgages. The lien of Assessments and Collection Costs shall be subordinate to the lien of any First Mortgage upon any Condominium if the First Mortgage was recorded before the delinquent Assessment or Collection Costs were due. Sale or transfer of any Condominium shall not affect the Assessment lien, except that the sale or transfer of any Condominium pursuant to judicial or non-judicial foreclosure (excluding a deed in lieu of foreclosure) of a First Mortgage shall extinguish the lien of such Assessments as to payments which became due prior to such sale or transfer. However, no sale or transfer shall relieve such Condominium from liens for any Assessments thereafter becoming due. 8.15 Sub-metering of Utilities. 8.15.1. Water Service. Domestic water will be supplied to the Condominiums through a master water meter and water and sewer services will be billed to the Association based on readings from the master meter. Such costs will be included in Common Expenses, based on each Owner's Allocable Share. In billing each Owner, the Association shall utilize water consumption and billing information which is provided by the supplier of water and sewer services. No water sub-meter system is currently planned for the Project. However, the Association shall have the right, but not the obligation, at the Association's sole and absolute discretion, to install individual water submeters in each Unit that measure water usage for each Unit. If water submeters are installed, the Association shall have the right to enter into an agreement with a private water metering service to (i) read the sub-meters, (ii) prepare and send the bills and (iii) collect sums billed to each Owner on behalf of the Association. Alternatively, the Association may itself issue bills for reimbursement of water and sewer charges applicable to each Condominium. No Owner shall interfere with the reading of any such sub-meters nor in any manner change or disconnect such sub-meters. The Association is hereby granted an easement for itself and its agents and contractors to install, read, lock-off, repair, realign, calibrate or replace any such sub-meters, wherever located. 8.15.2. Delinguencies. If an Owner fails to pay any water charges when due, such Owner will be responsible for any penalties or delinquent amounts levied by the service provider and/or the metering service, if any. Additionally, the Association shall have the right to cure any failure by an Owner ("Defaulting Owner") to pay the amounts due. If the Association elects to cure such default, then the Defaulting Owner will be responsible for reimbursing the Association. If the Defaulting Owner fails to reimburse the Association, the Association will be entitled to impose a Special Assessment as provided under this Declaration, may enter the Unit 814408.01/SD 373e88-00001/6-4-14/lab/kkp -28- to shut off water service to the Defaulting Owner's Unit or may pursue any other remedies as provided under this Declaration. ARTICLE 9 INSURANCE 9.1 Association's Insurance Obligations. 9.1.1. Liabilitv Insurance. The Association shall obtain and maintain commercial general liability insurance in a form at least as broad as a current ISO commercial general liability insurance form (including coverage for premises medical payments), insuring the Association against any liability arising from ownership or use ofthe Common Area and the performance by the Association of its duties under this Declaration. The limits of such insurance shall not be less than Two Million Dollars ($2,000,000) and shall be at all times in conformance with the minimum requirements of California Civil Code Section 6840. Such insurance shall include claims for death, personal injury and property damage. Such insurance shall include coverage against water damage liability if reasonably available as determined by the Board, and any other liability customarily covered with respect to projects similar in construction, location, and use. (a) Additional Insureds. Such policy shall name as additional insureds, the Owners, the Declarant (as long as Declarant is the Owner of any Condominium) and the Association's management company. (b) Primarv. The policy shall be primary to any loss covered by the liability insurance policy required to be maintained by an Owner herein. (c) Endorsements. Such policy shall include, if obtainable, a cross- liability or severability of interest endorsement insuring each insured against liability to each other insured. 9.1.2. Propertv Insurance. The Association shall obtain and maintain a property insurance policy insuring against loss by fire and the risks covered by an ISO "special form" policy or its equivalent, covering (i) any improvements within the Common Area, but excluding land, foundations, excavations, and other items typically excluded from property insurance coverage and (ii) personal property owned or maintained by the Association, for the amount of the maximum insurable replacement value thereof, as determined annually. Such insurance shall include earthquake sprinkler leakage coverage in an amount not less than One Million Dollars ($1,000,000). (a) Earthguake Insurance. Nothing in this Declaration shall obligate the Association to maintain earthquake insurance for any portion ofthe Project. (b) Primarv. The policy shall be primary and noncontributing with any other insurance policy covering the same loss. (c) Endorsements. The policy shall contain the following endorsements or their equivalents: (i) agreed amount (ii) boiler and machinery (to the extent applicable), (iii) inflation guard, (iv) ordinance or law and (v) replacement cost and such other endorsements as the Board in its discretion determines to be appropriate for a project similar in construction, location and use. 814408.01/SD 373688-00001/6-4-14/lab/kkp -29- 9.1.3. Fidelity Bond. The Association shall maintain a fidelity bond in an amount equal to at least the estimated maximum of funds, including reserves, in the custody of the Association or a managing agent at any given time during the term of the fidelity bond; provided, however, that the bond shall not be less than a sum equal to three (3) months' aggregate of the Regular Assessments on all Units plus any reserve funds. The bond shall name the Association as obligee and shall insure against loss by reason of the acts of the Board, the officers and employees of the Association, and any managing agent and its employees, whether or not such persons are compensated for their services. 9.1.4. Worker's Compensation Insurance. The Association shall maintain worker's compensation insurance to the extent necessary to comply with all applicable laws of the State of California or the regulations of any governmental body or authority having jurisdiction over the Project. 9.1.5. Directors and Officers Insurance. The Association shall maintain a policy insuring the Association's officers and directors against liability for their acts or omissions while acting in their capacity as officers and directors of the Association. The limits of such insurance shall be not less than Two Million Dollars ($2,000,000). 9.1.6. Copies of Policies. Copies of all insurance policies of the Association (or certificates of such insurance) shall be retained by the Association and made available to the Owners and their lenders upon request. All such insurance policies shall provide that they shall not be cancelable or substantially modified by the insurer without first giving at least thirty (30) days prior notice in writing to the Owners. In addition, the Association shall provide to the Owners such information regarding the insurance of the Association as may be required by applicable law. 9.1.7. Adiustment of Losses. The Board is hereby appointed attorney-in-fact by each Owner to negotiate and agree on the value and extent of any property damage under any policy carried by the Association. The Board is granted full right and authority to report, file, compromise and settle any claim or enforce any claim by legal action or othenA/ise and to execute releases in favor of any insurer. 9.1.8. Pavment of Insurance Proceeds. Subject to the rights of Mortgagees, the proceeds from all insurance carried by the Association shall be payable to the Association or an insurance trustee ("Trustee") to be held and expended for the benefit of the Association, Owners, Mortgagees and others, as their respective interests shall appear. 9.2 Owners' Insurance Obligations. 9.2.1. Propertv Insurance. Each Owner shall maintain at its sole expense a policy of casualty insurance (including water damage coverage and earthquake sprinkler leakage coverage) insuring all of its machinery, equipment, furniture, fixtures, improvements and Alterations, personal property (including also property under the care, custody, or control of Owner, except the Association's property) and business interests (including loss of income coverage) that may be located in, upon or about the Unit (collectively referred to as the "Owner's Property") against loss or damage by fire and the risks covered by an ISO "special form" casualty policy in an amount equal to the maximum insurable replacement value thereof. The proceeds of such insurance shall be used for the repair or replacement of the Owner's property and for the Owner's loss of income. 814408.01/SD 373688-00001/6-4-14/lab/kkp -30- 9.2.2. Liabilitv Insurance. Each Owner shall, at Owner's sole cost and expense maintain commercial general liability insurance in a form at least as broad as the current ISO commercial general liability insurance form (including coverage for medical payments), against claims for death, personal injury or property damage occurring upon, in or about the Owner's Unit. Such insurance shall name as additional insureds the Declarant and the Association and its management company, with limits of liability of not less than Two Million Dollars ($2,000,000.00) per occurrence and general aggregate. Such policy shall include contractual liability coverage insuring any of Owner's indemnification obligations provided for herein. 9.2.3. Copies of Policies. Copies of all insurance policies that an Owner is required to maintain, or a certificate of such insurance, shall be delivered to the Association upon request. All policies shall indicate they may not be canceled or modified without thirty (30) days prior written notice to the Association. The acceptance of a copy of an insurance policy by the Association from an Owner shall not constitute a waiver of any of the insurance requirements set forth herein. 9.2.4. Diminution of Association Insurance Proceeds. No Owner shall separately insure any property covered by the Association's property insurance policy as described above. If any Owner violates this provision and, as a result, there is a diminution in insurance proceeds othenA/ise payable to the Association, the Owner will be liable to the Association to the extent of the diminution. The Association may levy a Special Assessment against the Owner's Condominium to collect the amount of the diminution. 9.2.5. Lessee Insurance. Each Lessee shall (i) maintain, at its sole cost and expense, all of the insurance required to be maintained by an Owner in this Section 9.2 and (ii) conform to all other insurance requirements ofthe Owners contained in this Article 9. 9.3 Waiver of Subrogation. Except as provided in Section 7.5 above, all Owners hereby waive all claims against the Declarant and the Association and its managing agent, and the Association hereby waives all claims against the Owners, for reimbursement of amounts paid pursuant to any policy of insurance required to be maintained pursuant to this Declaration. All insurance policies maintained by the Association and the Owners must contain a waiver of subrogation rights by the insurer against the other party; provided, however, that failure or inability to obtain such a waiver shall not defeat or impair the waiver of subrogation rights between the Owners and the Association and its managing agent set forth herein. This Section applies only with respect to the Association or its managing agent and Owners and does not limit or waive, release or discharge any claims that either the Association or an Owner may have against any third party, including any contractor, service provider or agent (other than the Association's managing agent). 9.4 Insurance Carriers. All insurance carriers providing insurance policies required herein must have at least a "Best's Rating" of "A" and a "Financial Size Category" of "VIII" or better as set forth in the most current edition of Best's Key Rating Guide, and must be licensed to do business in the State of California. 9.5 Review of Insurance. The Board shall review the adequacy of all insurance required by this Declaration at least once every year. The review shall include a replacement cost appraisal of all real and personal property required to be insured by the Association as set forth herein without respect to depreciation. 814408.01/SD 373688-00001/6-4-14/lab/kkp -31- 9.6 Board's Authority to Revise Insurance Reguirements. Subject to any statutory insurance requirements, the Board shall have the power and right to adjust and modify the insurance requirements for Owners and the Association set forth herein to require coverage and protection that is customarily carried by and reasonably available to prudent owners and associations of projects similar in construction, location and use. If the Board elects to materially reduce the coverage required to be maintained by the Association from the coverage required in this Article, the Board shall make all reasonable efforts to notify the Owners of the reduction in coverage and the reasons therefore at least thirty (30) days prior to the effective date of the reduction. The Association, and its directors and officers, shall have no liability to any Owner arising solely from the inability to obtain insurance if, after a good faith effort, the Association is unable to obtain any insurance required hereunder because the insurance is no longer available, or, if available, the insurance can be obtained only at a cost that the Board, in its sole discretion, determines is unreasonable under the circumstances, or if the Owners fail to approve an increase in Assessments necessary to fund the insurance premiums. ARTICLE 10 DESTRUCTION OF IMPROVEMENTS 10.1 Repair and Reconstruction of Common Area. If all or any portion of the Common Area is damaged or destroyed by a fire, earthquake or other casualty, the Board shall promptly repair or reconstruct the Common Area in accordance with the original plans and specifications, modified as required by the building codes and regulations in effect at the time of such repair or reconstruction and subject to the Governing Documents, all as described in Section 10.2 below, unless either of the following occurs (in which event, the Board shall proceed as described in Section 10.3 below): (a) If (i) the insurance proceeds available to the Association do not cover eighty-five percent (85%) or more of the estimated cost to repair or reconstruct the Common Area (such estimated cost to be determined by the Board, which shall obtain fixed price bids from at least two (2) reputable contractors and at least one (1) independent appraisal conducted by a reputable, independent appraiser), and (ii) sixty-seven percent (67%) of the Voting Power, and so long as Declarant owns any portion of the Project, Declarant, vote against such repair or reconstruction; or (b) If (i) the insurance proceeds available to the Association, together with any reserve funds set aside for the repair or reconstruction of Common Area and the funds from any Special Assessments that may be levied without the approval of the Owners as set forth herein, are not sufficient to substantially repair or reconstruct the Common Area within a reasonable amount of time (as determined by the Board), (ii) an additional Special Assessment levied to supplement the insurance proceeds fails to receive the required approval of the Owners as set forth herein (or is insufficient to completely supplement the insurance proceeds and these funds), and (iii) the Board, without the required of approval of the Owners, is unable to supplement the insurance proceeds by borrowing funds on behalf of the Association that are sufficient to enable the improvements to be substantially repaired or reconstructed within a reasonable time. 10.2 Process if Repair or Reconstruction is Performed. If all or any portion of the Common Area is to be repaired or reconstructed, the Board shall obtain bids from at least two (2) licensed, insured and reputable contractors and shall accept the bid from whoever the Board determines to be in the best interests of the members. All insurance proceeds. Association funds allocated for the repair or reconstruction (including any Special Assessment funds), and any funds borrowed by the Association for the repair or reconstruction shall be deposited with a 814408.01/SD 373688-00001/6-4-14/lab/kkp -32- commercial lending institution or "fund control" business experienced in the disbursement of construction funds ("Depository") as selected by the Board. Funds shall be disbursed in accordance with the normal construction loan practices of the Depository. 10.2.1. Schedule. The repair or reconstruction shall commence as soon as reasonably practicable after the date of such damage or destruction and shall be completed as quickly as reasonably practicable after commencement of repair or reconstruction, subject to delays that are beyond the control of the party responsible for performing the repairs or reconstruction. The Board shall immediately take such steps as reasonably necessary to secure any hazardous condition and to screen any unsightly views resulting from the damage or destruction. 10.2.2. Application of Funds. The funds used to repair or reconstruct the Common Area shall be applied in the following order: (i) insurance proceeds received by the Association, (ii) reserve funds set aside for the repair or reconstruction of the Common Area, (iii) Special Assessments levied without any required approval of the Owners, and (iv) Special Assessments levied with the required approval of the Owners. If the insurance proceeds exceed the cost of the repair and/or reconstruction of the Common Area, the excess funds shall be paid into the reserve funds set aside for the repair or reconstruction ofthe Common Area. 10.3 Process if Repair or Reconstruction Is Not Performed. 10.3.1. Distribution of Insurance Proceeds. If the Common Area is not repaired or reconstructed as provided herein, all available insurance proceeds shall be distributed to all of the Owners within the Project in proportion to the respective fair market values of their Condominiums as of the date immediately preceding the date of damage or destruction as determined by a qualified independent appraiser selected by the Board. Notwithstanding the foregoing, the following costs and expenses incurred or to be incurred by the Association shall be paid to the Association before such disbursements are made: (a) the cost of mitigating hazardous conditions on the Project, (b) the cost for the continuance of public liability insurance until the Project can be sold, (c) the cost of complying with all applicable laws and regulations, and (d) the costs associated with the Association's management supervision and implementation of the process. 10.3.2. Material Alteration. If the failure to repair or reconstruct results in a material alteration of the use of the Project from its use immediately preceding the damage or destruction as determined by the Board (a material alteration shall be conclusively presumed if repair or reconstruction costs exceed twenty-five percent (25%) of the current replacement cost of all of the Common Area improvements), the Project may be sold in its entirety as provided in Article 12, upon the approval of at least sixty-seven percent (67%) of the Voting Power, and so long as Declarant or an affiliate of Declarant owns any portion ofthe Project, of Declarant. 10.4 Reconstruction of Units. If the Association repairs or reconstructs the Building as set forth above, and if any portion of a Unit is damaged or destroyed, the Owner of such Unit must reconstruct and repair such Unit as promptly as possible and in accordance with the Governing Documents. Except for any casualty or damage covered by insurance maintained by the Association, such reconstruction or repair of a Unit shall be made at such Owner's sole cost and expense, which may include any proceeds received from any insurance policy held by such Owner. 10.5 Reimbursement of Association Costs. Notwithstanding anything to the contrary contained herein, if it should become necessary, in the reasonable judgment of the Board, for 814408.01/SD 373688-00001/6-4-14/lab/kkp -33- the Association to incur costs for appraisals, legal fees, court costs, consultant costs and similar expenses in order to determine or collect insurance proceeds, such costs shall be deducted before any insurance proceeds are distributed or applied as provided in this Article. 10.6 Prior Pavment of Mortgages and Assessment Liens. To the extent award proceeds are distributed to any Owner pursuant to this Article 10, such proceeds shall be distributed in the following order: (i) to any First Mortgagees, (ii) to any other Mortgagee(s), (iii) to the Association for the payment of any Assessment lien(s) encumbering such Owner's Condominium and (iv) to the Owner. 10.7 Amendment of Condominium Plan. If the size or number of Units or the number of parking spaces are modified pursuant to this Article, the Board shall take the steps necessary to reapportion the interests of the remaining Owners and shall have the power to record an amendment to the Condominium Plan and this Declaration so that the Condominium Plan and this Declaration properly reflect the resulting Project. Each Owner irrevocably appoints the Association as that Owner's attorney-in-fact and irrevocably grants to the Association the full power in the name of the Owner to effect any alteration to any Unit or Common Area as authorized above, including, without limitation, the execution, delivery and recordation of any Condominium Plan amendments, deeds or other instruments. ARTICLE 11 EMINENT DOMAIN AND CONDEMNATION 11.1 Definition of Taking. The term "taking" as used in this Article means the taking of all or part of the Project by exercise of the powers of eminent domain or condemnation, or by sale of all or part of the Project under threat of the exercise of such powers. 11.2 Representation by Board in Taking of Common Area. The Board, upon having knowledge of any taking or threatened taking of all or any portion of the Project, shall promptly notify all Members. The Association is hereby granted an irrevocable power of attorney to represent all of the Members in any proceedings, negotiations, settlements or agreements with the taking authority, and/or any action to recover taking awards. No Member shall challenge the good faith exercise ofthe discretion ofthe Board in fulfilling its duties underthis Article. 11.3 Award Proceeds for Common Area. Any award proceeds received for the taking of Common Area shall be paid to the Association, or the Trustee (if applicable), for the use and benefit ofthe Owners and their Mortgagees. The Owners and their Mortgagees shall be entitled to receive a distribution from the award proceeds for such taking in the same proportion insurance proceeds would be distributed pursuant to Section 10.3.1. Notwithstanding the foregoing, (i) the fees and expenses incurred by the Association in connection with the taking, including fees for attorneys and appraisers and court costs, if any, shall be deducted from the award proceeds retained by (or distributed to) the Association and (ii) to the extent it is determined by at least a Majority of the Voting Power of the remaining Owners and their First Mortgagees that (a) all or any portion of the improvements within the Common Area that have been taken are to be reconstructed within another portion of the Project, or (b) the remaining Common Area affected by the taking are to be repaired, the award proceeds shall be paid to the Association forthis purpose and applied as provided in Section 10.2 ofthis Declaration. 11.4 Award Proceeds for a Unit. The Board shall distribute the remaining award proceeds (after deducting the fees and expenses related to the taking proceeding, including any and all fees for attorneys, appraisers, consultants, administrative and/or court costs) among the Owners of the Units affected by the taking and their Mortgagees in proportion to the respective 814408.01/SD 373688-00001/6-4-14/lab/kkp -34- fair market values (as of the date immediately preceding the date of the taking) of the Condominiums affected by such taking, all as determined by an independent appraisal conducted by a reputable, independent appraiser; provided, however, if the taking is the result of a judgment by the court that apportions the award among the Owners and their Mortgagees, the Board shall distribute the remaining award proceeds among the Owners and Mortgagees as set forth in such judgment. If an Owner vacates its Unit as a result of a taking, upon the disbursement of the award proceeds for a Condominium to such Owner, the Owner and its Mortgagees, if any, shall be divested of all interest in the Project. 11.5 Prior Pavment of Mortgages and Assessment Liens. To the extent award proceeds are distributed to any Owner pursuant to this Article 11, such proceeds shall be distributed in the following order: (i) to any First Mortgagees, (ii) to any other Mortgagee(s), (iii) to the Association for the payment of any Assessment lien(s) encumbering such Owner's Condominium and (iv) to the Owner. 11.6 Restoration or Right to Partition. If there is a "substantial taking" of the Project (more than fifty percent (50%)), the Owners may elect to terminate the legal status of the Project upon the approval of at least sixty-seven percent (67%) of the Voting Power, and so long as Declarant owns any portion of the Project, of Declarant, and, if necessary, bring a partition action as provided in Article 12. The proceeds from the partition sale shall be distributed to the Owners and their Mortgagees as described in Article 12. In the event of a taking that is less than a "substantial taking" as described above, any restoration that may be required shall be handled as described in Article 10. 11.7 Change of Condominium Interest. In the event of a taking of a portion of the Project, the Board shall take the steps necessary to reapportion the interests of the remaining Owners and shall have the power to record an amendment to the Condominium Plan and this Declaration so that the Condominium Plan and this Declaration properiy reflect the resulting Project. Each Owner irrevocably appoints the Association as that Owner's attorney-in-fact and irrevocably grants to the Association the full power in the name of the Owner to effect any alteration to any Unit or Common Area as authorized above, including, without limitation, the execution, delivery and recordation of any Condominium Plan amendments, deeds or other instruments. ARTICLE 12 LIMITATIONS UPON THE RIGHT TO PARTITION AND SEVERANCE 12.1 No Partition. There shall be no judicial partition of all or any portion ofthe Project and no Owner shall have any right to seek partition, except as set forth below. 12.1.1. The Project may be sold as a whole when the conditions for partition set forth in Articles 10 and 11 ofthis Declaration have been met; or 12.1.2. Any Owner may bring an action for judicial partition by sale of the entire Project as provided in California Civil Code Section 6656. Notwithstanding the foregoing, nothing in this Article shall be deemed to prohibit partition of a co-tenancy in a Condominium. 12.2 No Severance. The elements of a Condominium (including an undivided interest in the Common Area) and the other rights appurtenant to the ownership of a Condominium (including membership in the Association and any Exclusive Use Easements, but excluding the 814408.01/SD 373688-00001/6-4-14/lab/kkp -35- Assigned Parking Spaces, if any) are inseparable, and each Owner agrees that it shall not, while this Declaration or any similar declaration is in effect, make any conveyance of less than the entire Condominium and all such appurtenances; provided, however, that nothing contained in this Section shall prohibit any Owner from creating (i) a life estate for any certain number of years in a Condominium or a (ii) co-tenancy or a joint tenancy in the ownership of a Condominium. Any conveyance made in contravention of this Section shall be void. To the extent that any judicial partition is ordered as provided in this Article, the provisions of this Section shall not apply to such judicial partition. 12.3 Proceeds of Partition. In the event that a judicial partition of the Project is ordered, proceeds or property distributed as a result of such partition shall be apportioned between the Owners and their Mortgagees as provided in the court's judgment of partition, or if no apportionment is provided in such judgment, then between the Owners and their Mortgagees in proportion to the respective fair market values (as of the date immediately preceding the date of partition) of all of the Condominiums in the Project, as determined by an independent appraisal conducted by a reputable, independent appraiser. In the event of any such partition, the liens and provisions of all Mortgages or Assessment liens encumbering the Condominiums shall extend to each applicable Owner's interest in the proceeds or property distributed as a result of such partition. The interest of an Owner in such proceeds shall not be distributed to such Owner except upon the prior payment of, first, any First Mortgages, and then any other Mortgage(s) or Assessment lien(s) encumbering such Owner's Condominium. 12.4 Power of Attorney. The Association is hereby granted an irrevocable power of attorney to sell the Project for the benefit of all the Owners thereof when partition of the Owners' interests in the Project may be had pursuant to this Article. The power of attorney herein granted may be exercised upon the vote or written consent of at least sixty-seven percent (67%) of the Voting Power, and so long as Declarant owns any portion of the Project, of Declarant. Such power of attorney may be exercised by any two (2) Members of the Board who are hereby authorized to record a certificate of exercise in the County Recorder's Office, which certificate shall be conclusive evidence thereof in favor of any person relying thereon in good faith. ARTICLE 13 RIGHTS OF LENDERS 13.1 General Protections. Notwithstanding any contrary provision contained elsewhere in the Governing Documents, the provisions of this Article shall control with respect to the rights and obligations of Mortgagees as specified herein. 13.2 Pavment of Taxes or Insurance bv First Mortgagees. First Mortgagees may, jointly or singly, pay (i) taxes or other charges which are in default and which may or have become a charge against the Common Area, unless such taxes or charges are separately assessed against the Owners, in which case the rights of First Mortgagees shall be governed by the provisions of their First Mortgages, and (ii) overdue premiums on property insurance policies, or secure new property insurance coverage on the lapse of a policy, for the Common Area. First Mortgagees making such payments shall be owed immediate reimbursement therefor from the Association. Entitlement to such reimbursement shall be reflected in an agreement in favor of any First Mortgagee which requests the same to be executed by the Association. 13.3 Notice to Mortgagees. At the request of a Mortgagee, the Association shall mail or deliver to such Mortgagee written notification of any default by the applicable Owner under the Governing Documents which is not cured within sixty (60) days. 814408.01/SD 373688-00001/6-4-14/lab/kkp -36- 13.4 Voting Rights of First Mortgagees. In the event of a default by an Owner in any payment due under the terms of any First Mortgage encumbering such Owner's Condominium or the promissory note secured thereby, the First Mortgagee or its representative shall have the right, upon giving written notice to such defaulting Owner and the Association, and placing of record a notice of default, to exercise the voting rights of such defaulting Owner attributable to such Condominium at any regular or special meeting of the Members held during the time such default continues. Any such Owner's voting rights shall be restored to it at the time such default is cured. 13.5 Breach. A breach of any of the conditions contained in this Declaration shall not defeat nor render invalid the lien of any First Mortgage made in good faith and for value as to any Condominium in the Project; provided, however, that the conditions contained in this Declaration shall be binding upon and effective against any Owner of a Condominium if the Condominium is acquired by foreclosure, trustee's sale or otheoA/ise. Any Mortgagee who acquires title to a Condominium by foreclosure or by deed in lieu of foreclosure or assignment- in-lieu of foreclosure shall not be obligated to cure any breach of this Declaration that is non- curable or that is not practical or feasible to cure. 13.6 Distribution of Insurance and Taking Proceeds. No Owner, or any other party, shall have priority over any right of Mortgagees of Condominiums pursuant to their Mortgages in case of a distribution to Owners of insurance proceeds or taking awards for losses to or a taking of Condominiums or Common Area. Any contrary provision in the Governing Documents is null and void. 13.7 Damage or Destruction. Every First Mortgagee who has requested the Association to provide written notice with respect to (i) any substantial damage to or destruction of Condominiums or improvements and (ii) any condemnation proceeding involving, or any proposed acquisition by a condemning authority of, Condominiums or improvements or any portion thereof, shall be entitled to timely written notice from the Association. ARTICLE 14 ENFORCEMENT 14.1 Enforcement. The Association or any Owner shall have the right to enforce against any Owner, and any Owner shall have a right of action against the Association, by proceedings at law or in equity, all conditions, covenants and restrictions, now or hereafter imposed by the provisions ofthe Governing Documents or any amendment hereto, including the right to prevent the violation of any such conditions, covenants and restrictions and the right to recover damages or other dues for such violation. Notwithstanding the foregoing, the Association shall have the exclusive right to the enforcement of architectural control. Assessment liens or any other liens or charges, and Association Rules. Failure of the Association, Declarant or any Owner to enforce any covenants or restrictions in the Governing Documents shall not be deemed a waiver of the right to do so thereafter. 14.2 Notice and Opportunity to Repair. Without modifying, and subject to, the terms and provisions of any separate agreements between Declarant and a Buyer, if an Owner discovers an unsatisfactory condition related to the original construction of Owner's Unit or if the Association discovers an unsatisfactory condition related to the original construction of the Common Area ("Condition"), then prior to commencing any claim or action against Declarant relating to such Condition, the Owner or the Association, as applicable, must comply with the provisions of California Civil Code Section 6876 and such notice to Declarant shall include: (a) a description of the Condition, (b) the date upon which the Condition was discovered, and (c) 814408.01/SD 373688-00001/6-4-14/lab/kkp -37- dates and times during ordinary business hours when service calls or inspections by Declarant can be scheduled. Declarant shall, in its sole discretion, be entitled to inspect the Project regarding the reported Condition and within its sole discretion, be entitled to cure such Condition. Nothing set forth herein shall obligate Declarant to perform any inspection or repair nor shall this Section be deemed create or increase Declarant's legal obligations (if any) to an Owner or to the Association. Neither the Owner nor the Association shall pursue any other remedies available under this Declaration, or at law or otherwise, including without limitation the filing of any lawsuit or action, until Declarant has had the reasonable opportunity to inspect and cure the alleged Condition. If any statute(s) of limitations applicable to such actions would expire within ninety (90) days after the date such notice is delivered by the Owner or the Association, then during the period of such inspection and cure (but not to exceed the eariier to occur of (i) ninety (90) days from the date of Declarant's receipt of Owner's or the Association's notice described above, or (ii) twenty (20) days from Declarant's delivery of written notice to Owner or the Association of Declarant's determination not to proceed with such cure), such applicable statute(s) of limitation shall be tolled. Declarant shall not be liable for any general, special or consequential damage, cost, diminution in value or other loss which Owner or the Association may suffer as a result of any Condition in the Project, which reasonably might have been avoided had the Owner or the Association given to Declarant the notice and opportunity to cure described above. The provisions of this Section do not establish any legal or contractual duty or obligation on the part of Declarant to repair, replace or cure any Condition in the Project. 14.3 Use of Proceeds to Repair. If the Association receives, on its own behalf or for the benefit of the Owners, any proceeds as a result of any construction defect or other claims or litigation brought by the Association, then the Association shall apply such proceeds first for the purpose of repairing such defects or replacing reserve funds previously utilized by the Association to cause such repairs and then, to the costs of such litigation. Any excess proceeds shall be applied as determined by the Board, subject to any requirements established by the non-profit mutual benefit laws of the State of California and any other applicable laws. ARTICLE 15 GENERAL PROVISIONS 15.1 Covenants to Run with the Land; Term. The covenants, conditions and restrictions ofthis Declaration shall continue in full force and effect unless and until a declaration of termination executed by (i) at least sixty-seven percent (67%) of the Voting Power and (ii) Declarant, so long as Declarant or an affiliate of Declarant owns any portion ofthe Project, of Declarant is recorded in the records ofthe County Recorder's Office. 15.2 Amendments. Except as othenA/ise set forth in this Declaration, this Section 15.2 et seq. shall not be amended, modified or rescinded until the last Condominium owned by Declarant has been conveyed without (i) the prior written consent of Declarant and (ii) the recording of said written consent in the County Recorder's Office. 15.2.1. General. Prior to the sale of the first Condominium by Declarant, amendments to this Declaration shall be effective when executed by Declarant and when recorded in the County Recorder's office. Except as othenA/ise stated herein, after the sale of the first Condominium by Declarant, this Declaration may be amended at any time by a document recorded in the County Recorder's Office (i) unilaterally by Declarant so long as Declarant or an affiliate of Declarant owns any portion of the Project and so long as such amendment does not materially adversely affect the operation, use or enjoyment of a Condominium by its Owner or Invitees or (ii) upon the approval of a Majority of the Voting Power (in which case, the proposed amendment must be delivered to all members not less than 15 814408.01/SD 373688-00001/6-4-14/lab/kkp -38- days and not more than 60 days prior to any approval being solicited). An amendment shall be effective when approved by the applicable vote of the Members (and Declarant, as applicable) and executed by the President and Secretary of the Association who shall certify that the amendment or modification has been approved as provided herein, and when recorded in the County Recorder's Office. 15.2.2. Further Approvals Regarding Amendments. No amendment may be made to this Declaration which would diminish the rights of Declarant, including Section 4.3, Section 14.2, Article 5 and Article 15, until the last Condominium owned by Declarant has been conveyed, without (i) the prior written consent of Declarant and (ii) the recording of said written consent in the County Recorder's Office. 15.3 Cumulative Remedies. All rights, options and remedies under this Declaration are cumulative, and not one of them shall be exclusive of any other, and Declarant, the Association, the Owners and the Mortgagees shall have the right to pursue any one or all of such rights, options and remedies or any other remedy or relief which may be provided by law, whether or not stated in this Declaration. 15.4 Severability. If any portion of these covenants, conditions or restrictions becomes illegal, null, void, against public policy, or invalidated by judgment or court order, all other provisions shall remain in full force and effect. 15.5 Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a plan for the development and maintenance of the Project. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. Whenever the context ofthis Declaration requires same, the singular shall include the plural and the masculine shall include the feminine and the neuter. All exhibits referred to in this Declaration are attached to this Declaration and incorporated by reference. 15.6 Nuisance. Every act or omission in violation ofthis Declaration shall constitute a nuisance, and every remedy allowed by law or equity against a nuisance, either public or private, may be exercised by the Association or any Owner. 15.7 Attorneys' Fees. In the event action is instituted to enforce any of the provisions in this Declaration, the party prevailing in such action shall be entitled to recover from the other party thereto as part of the judgment, reasonable attorneys' fees and costs of such action. 15.8 Excuse for Non-Performance. Each Owner and the Association shall be excused from performing any obligation or undertaking provided in this Declaration, except any obligation to pay any sums of money under the applicable provisions hereof (unless such payment is conditioned upon performance of any obligation or undertaking excused by this Section), in the event and so long as the performance of any such obligation is prevented or delayed, retarded or hindered by act of God, fire, earthquake, floods, explosion, actions of the elements, war, invasion, insurrection, riot, mob violence, sabotage; inability to procure or general shortage of labor, equipment, facilities, materials or supplied in the ordinary course on the open market; failure of normal transportation; strikes, lockouts, action of labor unions; condemnation, requisition; laws or orders of governmental or civil or military authorities; breach or default of the other Owners or the Association of any of its obligations hereunder; failure to obtain necessary governmental approvals or permits despite the exercise of due diligence and good faith efforts by an Owner or the Association, or any other cause, whether similar or dissimilar to the 814408.01/SD 373688-00001/6-4-14/lab/kkp -39- foregoing, not within the reasonable control of such Owner or the Association, other than the lack of or inability to obtain funds or causes which were reasonably foreseeable. 15.9 Notice of Sale of Condominium. Concurrently with the consummation of the sale of any Condominium under circumstances whereby the transferee becomes an Owner thereof, or within five (5) business days thereafter, the transferee shall notify the Board in writing of such sale. Such notification shall set forth the name ofthe transferee and its Mortgagee, the address of the Condominium purchased by the transferee, the transferee's and the Mortgagee's mailing address, and the date of sale. Prior to the receipt of such notification, any and all communications required or permitted to be given by the Association, the Board or the manager shall be deemed to be duly made and given to the transferee if duly and timely made and given to said transferee's transferor. 15.10 Notices. Any notice to be given to an Owner or the Association pursuant to the provisions ofthis Declaration shall be in writing and may be delivered by one ofthe methods set forth in California Civil Code Section 6512 through 6520, as applicable. In the case of co- Owners, any such notice may be delivered or sent to any one of the co-Owners on behalf of all co-Owners and shall be deemed delivery on all such co-Owners. 15.10.1. Notice to a Mortgagee. Notice to a Mortgagee or its mortgage servicing contractor pursuant to this Declaration shall be in writing and shall be delivered by facsimile, email, overnight courier, personal delivery or mail (sent registered or certified, return receipt requested), to the address, facsimile number and/or email address furnished to the Association by such Mortgagee or such contractor for the purposes of notice or, if no such address, facsimile number and/or email address is furnished, to any office of the Mortgagee in the County, or if no such office is located in the County, to any office of such mortgagee. Notice shall be deemed received (i) forty-eight (48) hours after being sent by registered or certified mail return receipt requested, (ii) on the next business day after being sent by overnight courier, (iii) upon confirmation of receipt if sent by telecopier or (iv) upon receipt if personally delivered to any occupant of a Condominium over the age of twelve (12) years. Mailing addresses may be changed at any time upon written notification to the Board. 15.10.2. Proof of Notice. The affidavit of an officer or authorized agent of the Association declaring under penalty of perjury that a notice has been mailed to any Owner or Mortgagee to the address and/or facsimile number shown on the records of the Association, shall be deemed conclusive proof of such mailing, whether or not such notice was actually received. 15.11 Effect of Declaration. This Declaration shall inure to the benefit of and be binding on the successors and assigns of the Declarant, and the heirs, personal representatives, grantees. Lessees, successors and assigns of the Owners. However, Declarant makes no warranties or representations, express or implied, as to the enforceability of all or any portion of this Declaration, or as to the compliance of any of these provisions with public laws, ordinances and regulations applicable thereto. This Declaration relies on provisions of California statutory law which have been revised frequently. The Board is cautioned to have its legal consultant carefully review the applicable law in effect as ofthe date any actions are taken pursuant to this Declaration. 15.12 Estoppel Certificate. Within thirty (30) days after written demand is delivered to the Board by any Owner, and upon payment to the Association of a reasonable fee (as fixed from time to time by the Association), the Board shall issue an estoppel certificate certifying (with respect to any Unit of said Owner) that as of the date thereof: (i) whether any 814408.01/SD 373688-00001/6-4-14/lab/kkp -40- improvements made and other work completed by such Owner were submitted to and approved by the Board, (ii) whether the Board has any knowledge, without any duty of investigation or inquiry, of any non-complying improvements or work with the provisions of the Governing Documents, (iii) any default under the Declaration and if there are known defaults, specifying the nature thereof; (iv) whether, to its knowledge, the Declaration has been assigned, modified or amended in any way (and if it has, then stating the nature thereof); and (v) that, to its knowledge, the Declaration is in full force and effect. Any purchaser from the Owner, or from anyone deriving any interest in said Unit through the Owner, shall be entitled to rely on said certificate with respect to the matters therein set forth, such matters being conclusive as among the Association, Declarant and all Owners and such persons deriving any interest through them; provided, however, that such reliance may not extend to any violations of this Declaration of which the Board does not have actual knowledge. A properiy executed certificate of the Association as to the status of Assessments on a Condominium is binding upon the Association as of the date of its issuance. 15.13 No Racial Restriction. No Owner shall execute or cause to be recorded any instrument which imposes a restriction upon the sale, leasing or occupancy of its Unit on the basis of race, sex, color or creed. 15.14 Easements Reserved and Granted. Any easements referred to in this Declaration shall be deemed reserved or granted, or both reserved and granted, by reference to this Declaration in the first deed by Declarant to any Condominium. 15.15 Statutory References. All references in this Declaration to various statutes, codes, regulations, ordinances and other laws shall be deemed to include those laws in effect as of the date of this Declaration and any successor laws as may be amended from time to time. 15.16 Citv Provisions. The City's Conditions of Approval relating to the Project's Tract Map require that the following provisions be included in this Declaration. 15.16.1. General Enforcement bv the Citv. The City shall have the right, but not the obligation, to enforce those protective covenants set forth in this Declaration in favor of, or in which the City has an interest. 15.16.2. Notice and Amendment. If any proposed amendment to this Declaration affects the rights of the City as set forth herein, a copy of such proposed amendment shall be provided to the City in advance for its review and approval. A copy of the recorded amendment shall be delivered to the City within thirty (30) days after recordation for the official record. 15.16.3. Failure of Association to Maintain Common Area. If the Association fails to maintain any portion ofthe Common Area which is visible from the exterior ofthe Project as required by Section 7.3 above, the City shall have the right, but not the duty, to perform the necessary maintenance. If the City elects to perform such maintenance, the City shall give written notice to the Association, with a copy thereof to the Owners in the Project, setting forth with particularity the maintenance which the City finds to be required and requesting the same be carried out by the Association within a period of thirty (30) days from the giving of such notice. In the event that the Association fails to carry out such maintenance of the Common Area within the period specified by the City's notice, the City shall be entitled to cause such work to be completed and shall be entitled to reimbursement with respect thereto from the Owners as provided below. 814408.01/SD 373688-00001/6-4-14/lab/kkp -41- 15.16.4. Special Assessments Levied by the Citv. If the City has performed the necessary maintenance to any portion of the Common Area described above, the City shall submit a written invoice to the Association for all costs incurred by the City to perform such maintenance. The City shall provide a copy of such invoice to each Owner in the Project, together with a statement that if the Association fails to pay such invoice in full within the time specified, the City will pursue collection against the Owners in the Project pursuant to the provisions of this Section. Said invoice shall be due and payable by the Association within twenty (20) days of receipt by the Association. If the Association shall fail to pay such invoice in full within the period specified, payment shall be deemed delinquent and shall be subject to a late charge in an amount equal to six percent (6%) of the amount of the invoice. Thereafterihe City may pursue collection from the Association by means of any remedies available at law or in equity. Without limiting the generality of the foregoing, in addition to all other rights and remedies available to the City, the City may levy a special assessment against the Owners of each Condominium in the Project for an equal pro rata share ofthe invoice, plus the late charge. Such special assessment shall constitute a charge on the Project and shall be a continuing lien upon each Condominium against which the special assessment is levied. Each Owner in the Project hereby vests the City with the right and power to levy such special assessment, to impose a lien upon their respective Condominium and to bring all legal actions and/or to pursue lien foreclosure procedures against any Owner and his/her respective Condominium for purposes of collecting such special assessment in accordance with the procedures set forth in Article 8 ofthis Declaration. IN WITNESS WHEREOF, Declarant has executed this Declaration the day and year first herein above written. Bicajessee Adventures LLC, a California limited liability company By: Name: Kent Jessee Its: Managing Member 814408.01/SD 373688-00001/6-4-14/lab/kkp -42- STATE OF CALIFORNIA ) COUNTY OF ) On , before me. (insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws ofthe State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 814408.01/SD 373688-00001/6-4-14/lab/kkp -43- SUBORDINATION AGREEMENT The undersigned, as holder of the beneficial interest in that certain Deed of Trust dated August 10, 2006, and recorded in the Office of the San Diego County Recorder on August 11, 2006, as Document No. 2006-0572277, which Deed of Trust encumbers all or a portion of the real property covered by the Declaration of Covenants, Conditions and Restrictions of Carisbad Village Plaza ("Declaration"), does hereby intentionally and unconditionally subordinate the lien of said Deed of Trust to (a) the foregoing Declaration, (b) any Supplementary Declaration which is recorded pursuant to the Declaration, (c) any amendment or restatement ofthe Declaration or any Supplementary Declaration. Dated: , 2014 United States Small Business Administration By: Name: Title: STATE OF CALIFORNIA ) COUNTY OF ) On , before me. (insert name and title ofthe officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws ofthe State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 814408.01/SD 373688-00001/6-4-14/lab/kkp -44- SUBORDINATION AGREEMENT The undersigned, as holder of the beneficial interest in that certain Deed of Trust dated August 18, 2006, and recorded in the Office of the San Diego County Recorder on August 23, 2006, as Document No. 2006-0602995, which Deed of Trust encumbers all or a portion of the real property covered by the Declaration of Covenants, Conditions and Restrictions of Carisbad Village Plaza ("Declaration"), does hereby intentionally and unconditionally subordinate the lien of said Deed of Trust to (a) the foregoing Declaration, (b) any Supplementary Declaration which is recorded pursuant to the Declaration, (c) any amendment or restatement ofthe Declaration or any Supplementary Declaration. Dated: , 2014 California Community Bank, a By: Name: Title: STATE OF CALIFORNIA ) COUNTY OF ) On , before me. (insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 814408.01/SD 373688-00001/6-4-14/lab/kkp -45- EXHIBIT "A" Legal Description THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CX>UNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND ES ASCRIBED AS FOLLOWS: PARCEL 1: THE SOUTHEASTERLY 50.00 FEET OF IHE NORIHWESIERLY 241 FEET OF LOT 48 OF THE SEASIDE LANDS, IN THE OTY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE Of CALIFORNIA, ACCORIMNG TO MAP •mEREOFNO 1722. FILED IN THE OFHOE OF THE COUNTY RECCStl^ OF SAN £»EGO CCHJNTY, JULY 28, 1921; EXCEPT THE SOTTHWESTERLY120 FEET. PARCEL 2: THE SOUTHEASTERLY 15.0 FEET OF THE NORTHWESTERLY 191.0 FEET OF LOT 48 OF SEASIDE LANDS, IN THE CTTY OF CARLSBAD, COTNTY OF SAN IHEGO. STATE OT CALIFORNIA, AOXIRDMG TO MAP THEREOF NO. 1722, FI1£D IN THE OFFKE OF THE COUNTY RECORISR OF SAN DDEGO COUNTY, JULY 28, 1921; EXCEPT THE SOUTHWESTERLY 120,00 FEET. APN 203-110-29-00 814408.01/SD EXHIBIT "A" 373688-00001/6-4-14/lab/kkp -1- [2:36 PM] DRAFT EXHIBIT "B" Allocable Share Unit Number 200 201 202 300 301 302 TOTAL Sguare Footage 2,073 1,023 1,528 2,156 1,063 1,539 9,382 Allocable Share 22% 11% 16.3% 23% 11.3% 16.4% 100% 814408.01/SD 373688-00001/6-4-14/lab/kkp EXHIBIT "B" -1-[2:36 PM] DRAFT RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: W. Kent Jessee & Associates Attn: Kent Jessee 2815 Jefferson Street, Suite 303 Carisbad, California 92008 (Space Above For Recorder's Use) DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF CARLSBAD VILLAGE PLAZA 814408.01/SD 373688-00001/6-4-14/lab/kkp TABLE OF CONTENTS Page ARTICLE 1 DEFINITIONS 1 1.1 "Allocable Share" 2 1.2 "Alteration" 2 1.3 "Architectural Guidelines" 2 1.4 "Assessments" 2 1.5 "Association" Carisbad Village Plaza Owners 2 1.6 "Association Rules" 2 1.7 "Board" 2 1.8 "Budget" 2 1.9 "Building" 2 1.10 "City" 2 1.11 "Common Area" 2 1.12 "Common Expenses" 3 1.13 "Condominium" 3 1.14 "Condominium Plan" 3 1.15 "County" 3 1.16 "Declarant" 4 1.17 "Declaration" 4 1.18 "Exclusive Use Area" or "Exclusive Use Easement" 4 1.19 "Governing Documents" 4 1.20 "Hazardous Materials" 4 1.21 "Include(s)", "Including" 4 1.22 "Invitee" 4 1.23 "Lease" 4 1.24 "Lessee" 4 1.25 "Maintenance Obligations" 4 1.26 "Majority of the Voting Power" 5 1.27 "Member" 5 1.28 "Mortgage" 5 1.29 "Mortgagee" 5 1.30 "Owner" 5 1.31 "Parking Spaces" 5 1.32 "Person" 5 1.33 "Project" 5 1.34 "Square Footage" 5 1.35 "Supplementary Condominium Plan" 5 1.36 "Supplementary Declaration" 5 1.37 "Unit" 5 1.38 "Utility Facilities" 6 1.39 "Voting Power" 6 ARTICLE 2 PROPERTY OWNERSHIP, RIGHTS AND EASEMENTS 6 2.1 Ownership of Condominium 6 2.2 Easements Generally 6 2.3 Association Easement 7 2.4 Easements Over Common Area 7 2.5 Easements for Utility Facilities 7 2.6 Support, Settlement and Encroachment 7 814408.01/SD 373688-00001 /6-4-14/lab/kkp Page 2.7 Exclusive Use Area Easement 8 2.8 Creation of Designated Exclusive Use Easements 8 2.9 Delegation of Use 8 2.10 Right of Access 8 2.11 Right Of Entry 8 2.12 Assigned Parking 9 ARTICLE 3 MEMBERSHIP AND VOTING RIGHTS 9 3.1 Membership 9 3.2 Transfer 9 3.3 Voting Owner 9 3.4 Voting Rights 10 3.5 Member Meetings 10 3.6 Board 10 ARTICLE 4 DUTIES AND POWERS OF THE ASSOCIATION 10 4.1 General Duties and Powers 10 4.2 Specific Duties and Powers 10 4.4 Personal Liability 13 4.5 Formation of an Incorporated Association 13 ARTICLE 5 ARCHITECTURAL CONTROL 13 5.1 Declarant 13 5.2 Scope 13 5.3 Architectural Guidelines 14 5.4 Duties and Powers of Board for Architectural Review 14 5.5 Inspection and Correction of Work 14 5.6 Bonds 15 5.7 Government Regulations 15 5.8 Diligence in Construction 16 5.9 Compensation 16 5.10 Interpretation and Appeal 16 5.11 Variances 16 5.12 Waiver 16 5.13 Liability 16 ARTICLE 6 USE RESTRICTIONS 17 6.4 Prohibited Modifications 19 6.5 Installation of Equipment 19 6.6 Fire Sprinkler Systems 19 6.7 Antennae and Solar Systems 19 6.8 Hazardous Materials 19 6.9 Leasing 21 6.10 Closure 21 6.11 Air Pollution 21 6.12 Trash Disposal 21 6.13 Animals 21 6.14 Water Quality Protection 21 6.15 Compliance with Laws 22 6.16 Mechanic's Liens 22 6.17 Rights of Disabled 22 814408.01/SD 373688-00001/6-4-14/lab/kkp (ii) Page 6.18 Access Restrictions 22 ARTICLE 7 REPAIR AND MAINTENANCE 23 7.1 Maintenance by Owners 23 7.2 Maintenance by Association 23 7.3 Emergency Repairs 24 7.4 Failure to Maintain 24 7.5 Damage By Owners 24 7.6 Inspection of the Project 24 ARTICLE 8 ASSESSMENTS 25 8.1 Creation ofthe Lien and Personal Obligation of Assessments 25 8.2 Association Funds 25 8.5 Special Assessments 26 8.6 Enforcement Assessments 26 8.7 Rate of Assessment 26 8.8 Notice to Owners 27 8.9 Failure to Fix Assessments 27 8.10 Collection of Assessments 27 8.11 Payment of Lien 27 8.12 No Offsets 28 8.13 Transfer of Property 28 8.14 Subordination of the Lien to First Deeds of Trust and First Mortgages 28 8.15 Sub-metering of Utilities 28 ARTICLE 9 INSURANCE 29 9.1 Association's Insurance Obligations 29 9.2 Owners' Insurance Obligations 30 9.3 Waiver of Subrogation 31 9.4 Insurance Carriers 31 9.5 Review of Insurance 31 9.6 Board's Authority to Revise Insurance Requirements 32 ARTICLE 10 DESTRUCTION OF IMPROVEMENTS 32 10.1 Repair and Reconstruction of Common Area 32 10.2 Process if Repair or Reconstruction is Performed 32 10.3 Process if Repair or Reconstruction Is Not Performed 33 10.4 Reconstruction of Units 33 10.5 Reimbursement of Association Costs 33 10.6 Prior Payment of Mortgages and Assessment Liens 34 10.7 Amendment of Condominium Plan 34 ARTICLE 11 EMINENT DOMAIN AND CONDEMNATION 34 11.1 Definition of Taking 34 11.2 Representation by Board in Taking of Common Area 34 11.3 Award Proceeds for Common Area 34 11.4 Award Proceeds for a Unit 34 11.5 Prior Payment of Mortgages and Assessment Liens 35 11.6 Restoration or Right to Partition 35 11.7 Change of Condominium Interest 35 814408.01/SD 373688-00001/6-4-14/lab/kkp (iii) Page ARTICLE 12 LIMITATIONS UPON THE RIGHT TO PARTITION AND SEVERANCE 35 12.1 No Partition 35 12.2 No Severance 35 12.3 Proceeds of Partition 36 12.4 Power of Attorney 36 ARTICLE 13 RIGHTS OF LENDERS 36 13.1 General Protections 36 13.2 Payment of Taxes or Insurance by First Mortgagees 36 13.3 Notice to Mortgagees 36 13.4 Voting Rights of First Mortgagees 37 13.5 Breach 37 13.6 Distribution of Insurance and Taking Proceeds 37 13.7 Damage or Destruction 37 ARTICLE 14 ENFORCEMENT 37 14.1 Enforcement 37 14.2 Notice and Opportunity to Repair 37 14.3 Use of Proceeds to Repair 38 ARTICLE 15 GENERAL PROVISIONS 38 15.1 Covenants to Run with the Land; Term 38 15.2 Amendments 38 15.3 Cumulative Remedies 39 15.4 Severability 39 15.5 Construction 39 15.6 Nuisance 39 15.7 Attorneys'Fees 39 15.8 Excuse for Non-Performance 39 15.9 Notice of Sale of Condominium 40 15.11 Effect of Declaration 40 15.12 Estoppel Certificate 40 15.13 No Racial Restriction 41 15.14 Easements Reserved and Granted 41 15.15 Statutory References 41 EXHIBITS: Exhibit "A" - Legal Description of Project Exhibit "B" - Allocable Share 814408.01/SD 373688-00001 /6-4-14/lab/kkp (iv) FILE CJI»Y Ccity of Carlsbad NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN to you that the Planning Commission of the City of Cartsbad will hold a public heanng at the Council Chambers, 1200 Cartsbad Village Drive, Cartsbad, California, at 6:00 p.m. on Wednesday, June 4,2014, to consider a request for the following: CASE NAME: CT 14-02 - BICAJESSEE ADVENTURES PUBLISH DATE: May 19, 2014 DESCRIPTION: Request for a recommendation of approval for a Tentative Tract Map to allow for the airspace subdivision of an existing three story commercial office building into six separate ownership units located at 2815 Jefferson Street in Local Facilities Management Zone 1. The City Planner has determined that this project is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15301(k) "Existing Facilities" of the State CEQA Guidelines and will not have any adverse significant impact on the environment. Those persons wishing to speak on this proposal are cordially invited to attend the public hearing and provide the decision makers with any oral or written comments they may have regarding the project. Copies of the staff report will be available online at http://carlsbad.granicus.com/ViewPublisher.php7view id=6 on or after the Friday pnor to the heanng date. If you have any questions, or would like to be notified of the decision, please contact Greg Fisher in the Planning Division at (760) 602-4629, Monday through Thursday 7:30 a.m. to 5:30 p.m., Friday 8:00 a.m. to 5:00 p.m. at 1635 Faraday Avenue, Cartsbad, California 92008. APPEALS The time within which you may judicially challenge these projects, if approved, is established by State law and/or city ordinance, and is very short. If you challenge this project in court, you may be limited to raising only those issues you or someone else raised at the public heanng descnbed in this notice or in written correspondence delivered to the City of Cartsbad at or pnor to the public heanng. • Appeals to the Citv Council: Where the decision is appealable to the City Council, appeals must be filed in writing within ten (10) calendar days after a decision by the Planning Commission. CITY OF CARLSBAD PLANNING DIVISION Community & Economic Development Planning Division 1635 Faraday Avenue I Carlsbad, CA 92008 I 760-602-4600 I 760-602-8560 fax NOT TO SCALE SITE MAP Bicajessee Adventures CT 14-02 AVI3AV-OD-008-I. >-»-rW T mdn-doa pioqaj 3| j8|aAaj iuo3V0aAB'«uiAM-C-^f-^*°*'^^ | ap uj^B ajnijJBq B| Bza!|daa tuauiaBjBq} ap suas • ®091S ®AM3AV B\ zasmn J8|9d e S3|j3e^ sausnbj^^ ROBERT DRESDNER 145 SCRIBNER HILL RD WILTON, CT 06897-1830 WAYNE & ANGELA WROLSTAD 7 MADONNA LN BROOMALL, PA 19008-2264 JPMORGAN CHASE BANK llll POLARIS PKWY IJ COLUMBUS, OH 43240-2031 CAROLYN J ZOUCHA-REPP 5301 E MITCHELL DR PHOENIX, AZ 85018-6132 WILLIAM LITTLE PO BOX 1380 LOS ANGELES, CA 90078-1380 JAMES R DAVIS 13215 PENN ST 610 WHITTIER, CA 90602-1725 BRENT & DENISE BEAZLEY 16633 VENTURA BLVD 1030 ENCINO, CA 91436-1861 GORDON PO BOX 155 CARDIFF BY TH, CA 92007-0155 EDMOND T SHEHAB 2 914 AUSTIN TER CARLSBAD, CA 92008-6885 M E ADAN 1683 BRADY CIR CARLSBAD, CA 92008-2574 ZULICK *M* 1687 BRADY CIR CARLSBAD, CA 92008-2574 JACK D PHILLIPS 2667 OCEAN ST CARLSBAD, CA 92008-2238 DONALD K & LAEL DEWHURST 3425 SEACREST DR CARLSBAD, CA 92008-2038 DEWHURST 3425 SEACREST DR CARLSBAD, CA 92008-2038 DONALD K & LAEL DEWHURST 3425 SEACREST DR CARLSBAD, CA 92008-2038 DONALD K DEWHURST 3425 SEACREST DR CARLSBAD, CA 92008-2038 TREJO 2687 MADISON ST CARLSBAD, CA 92008-1722 WILSON JANE RESIDENCE 2710 MADISON ST CARLSBAD, CA 92008-1727 JEFFERSON PROFESSIONAL BUILO: 2755 JEFFERSON ST 200 CARLSBAD, CA 92008-1714 TOMMY J & GLADYS HARRIS 722 ARBUCKLE PL CARLSBAD, CA 92008-1701 JOHN P & GWEN ROBINSON 725 ARBUCKLE PL CARLSBAD, CA 92008-1702 TUPPER FAMILY 2785 JEFFERSON ST CARLSBAD, CA 92008-1718 BENCHMARK PACIFIC LTD II 550 LAGUNA DR B CARLSBAD, CA 92008-1698 BENCHimRK PACIFIC POINSETTIA 550 LAGUNA DR B CARLSBAD, CA 92008-1698 BENCHMARK PACIFIC LTD II 550 LAGUNA DR B CARLSBAD, CA 92008-1698 RAPPAPORT 2 963 MADISON ST CARLSBAD, CA 92008-2323 MICHAEL Sc SANDRA FRANKLIN 2323 KIMBERLY CT CARLSBAD, CA 92008-2077 AMINAT SHARIPOVA 13 0 HEMLOCK AVE A CARLSBAD, CA 92008-8230 GARY L & JESSICA JACKSON 2718 ROOSEVELT ST F CARLSBAD, CA 92008-1685 HOWARD-JONES MARITAL 2785 ROOSEVELT ST CARLSBAD, CA 92008-1779 ®09LS ©AU3AV wxaBps dn-dod asodxa o) au!| 6uo|B puag jsded paaj T ®091S e»B|diuai ®AjaAV asn T I AM3AV-OD-008-I. 4 uiorAieAB-Mivun 3wdn-dod pjoqaj a| ja|aA^j ap uj^e ajnqsBii B| ^ zandatj }uauia6jBi|} ap suas • ®09I.S ®AM3AV iUBqe6 3| zasmn J3|3d e 5311364 sauanbj}^ GLENN GOLDMAN 2653 ROOSEVELT ST D CARLSBAD, CA 92008-1667 CITY OF CARLSBAD 2 922 ROOSEVELT ST CARLSBAD, CA 92008-2334 CITY OF CARLSBAD 2936 ROOSEVELT ST 2 944 CARLSBAD, CA 92008-2334 BICAJESSEE ADVENTURES LLC 2815 JEFFERSON ST 3 00 CARLSBAD, CA 92008-1717 MICHAEL K MURPHY 63 0 GRAND AVE I CARLSBAD, CA 92008-2364 GENE S & MARGARET RAY 2 959 JEFFERSON ST CARLSBAD, CA 92008-2333 PACKARD BUILDING PARTNERSHIP 725 GRAND AVE CARLSBAD, CA 92008-2331 PRIVATE PROPERTIES LLC 810 HOME AVE CARLSBAD, CA 92008-1821 DANIEL & IRENE LOPEZ 928 HOME AVE CARLSBAD, CA 92008-1826 ROY T WINDRUM 932 HOME AVE CARLSBAD, CA 92008-1828 DILL 880 HOME AVE CARLSBAD, CA 92008-1861 KIMBERLY A YORK 880 HOME AVE G CARLSBAD, CA 92008-1800 ALISHA ROGER 882 HOME AVE A CARLSBAD, CA 92008-1862 JOHNSON 4513 COVE DR 12 CARLSBAD, CA 92008-4213 SCANLON 73 06 BORLA PL CARLSBAD, CA 92009-7802 SCARPELLI 92 9 ORCHID WAY CARLSBAD, CA 92011-4830 RUNDLE 1754 BLACKBIRD CIR CARLSBAD, CA 92011-5008 2801 JEFFERSON STREET LLC 7086 ROCKROSE TER CARLSBAD, CA 92011-3955 NABER 6704 LONICERA ST CARLSBAD, CA 92011-3425 MOJTABA ESFAHANI 14824 VISTA DEL OCEANO DEL MAR, CA 92014-4146 WILLIAM V & ROSA DALY PO BOX 260 CARLSBAD, CA 92018-0260 WILLIAM LANPHEAR PO BOX 817 CARLSBAD, CA 92018-0817 JOHN J GIROUX PO BOX 1065 CARLSBAD, CA 92018-1065 JEANENE ENTERPRISES INC PO BOX 1219 CARLSBAD, CA 92018-1219 lyiAR VISTA PO BOX 1481 CARLSBAD, CA 92018-1481 BRUCE E MORTLAND PO BOX 1600 CARLSBAD, CA 92018-1600 FLETCHER CREDIT SHELTER 2002 PO BOX 1988 CARLSBAD, CA 92018-1988 ROGELIO S & KEELY ALBA PO BOX 2711 CARLSBAD, CA 92018-2711 KLETT PO BOX 4086 CARLSBAD, CA 92018-4086 TGMS INC PO BOX 230562 ENCINITAS, CA 92 023-0562 I ®09is®AU3AV H^aBpg dn-dod asodxa o} auii 6uo|B puag Jaded paaj ®091S aiB|dui3i ®AiaAV asn siaaen <>iaari Asea Easy Peel® Labels Use Avery® Template 5160® Bend along line to ! _ expose Pop-up Edge^" AVERY® 5160® I 1 SETH HOENIG PO BOX 232401 ENCINITAS, CA 92023-2401 JAMES V WOOD PO BOX 232134 ENCINITAS, CA 92023-2134 DANIEL & DEBBIE DOLAN 169 JUPETEN ST ENCINITAS, CA 92 024 PGP CARLSBAD LLC 1120 SILVERADO ST LA JOLLA, CA 92037-4524 PGP CARLSBAD SENIORS LTD II 1120 SILVERADO ST LA JOLLA, CA 92037-4524 DANIEL J & ROSELLA CERDA 1915 ANDREWS CT OCET^SIDE, CA 92054-6100 MADISON SQUARE CONDOS LLC PO BOX 669 POWAY, CA 92074-0669 CHARLES & LORRAINE WULLENJOm 1259 DISCOVERY ST SAN MARCOS, CA 92078-4032 KAREN J BARLOW 519 S SANTA FE AVE VISTA, CA 92083-5937 CARLSBAD GRAND LLC 701 B ST SAN DIEGO, CA 92101-8101 MARILYN WILSON 492 0 COLLINGWOOD DR SAN DIEGO, CA 92109-2243 SWYS CORP 7837 CONVOY CT 100 SAN DIEGO, CA 92111-1209 FIVE COASTAL GEM PROPERTIES ] 158 C AVE CORONADO, CA 92118-1420 MISSION FEDERAL CREDIT UNION 5785 OBERLIN DR SAN DIEGO, CA 92121-3749 VERMILYEA GSD 11620 KISMET RD SAN DIEGO, CA 92128-5024 YOUNG S PYO 5487 WHITE OAK LN SAN DIEGO, CA 92130-5753 THOMAS C CURTIN 50 90 CRESCENT BAY DR SAN DIEGO, CA 92154-4877 ROOSEVELT TAMARACK INVESTMENI 6 VENTURE 215 IRVINE, CA 92 618-7364 SOOHOO FAMILY 2506 LIGHTHOUSE LN CORONA DEL MA, CA 92625-1310 PETER A Sc GEORGETTE ROCK 2421 S EL CAMINO REAL SAN CLEMENTE, CA 92672-3351 PARKER 560 HIGHLAND DR DANVILLE, CA 94526-3711 MARK J NOLAN 20322 CAROL LN SARATOGA, CA 95070-3114 *** 82 Printed *** A notice has been mailed to ail property owners/occi^xurts listed herein.^/, i . Pile: ^INI iV Signature.. Etiquettes faciles k peler Utilisez le aabarit AVERY® 5160® Sens de ^1% aimowwi an Repliez & la hachure afin de | r^v^ler le rebord PoD-uD^c ! vtfVtfVKavervxom I-SOO-GO-AVERY' CITV OF ^ ^ QFILE ^ CARLSBAD -Community & Economic Development www.carisbadca.gov EARLY PUBLIC NOTICE PROJECTNAME: BICAJESSEE ADVENTURES PROJECT NUMBER: CT 14-02/RP 02-02(A) This early public notice is to let you know that a development application for a Major Review Permit project within your neighborhood has been submitted to the City of Carlsbad on January 31, 2014. The project application is undergoing its initial review by the City. LOCATION: 2815 Jefferson Street PROJECT DESCRIPTION: Convert an existing three story office building into six airspace non-residential condominium units in Land Use District 7 of the Carlsbad Village Area. ^>lease keep in mind that this is an early public notice and that the project design could change as a result of further staff and public review. A future public hearing notice will be mailed to you when this project is scheduled for public hearing before the Planning Commission. CONTACT INFORMATION: If you have questions or comments regarding this proposed project please contact Greg Fisher, Assistant Planner at greg.fisher(a)carlsbadca.gov, 760-602-4629, City of Carlsbad Planning Division, 1635 Faraday Avenue, Carlsbad, CA 92008. Planning Division 1635 Faraday Ave. I Carlsbad, CA 92008 I 760-602-4600 I 760-602-8558 fax 3-^ J. 600-Foot Radius 1^ f_ 1 iBouriclarvi Crty of Carlsbad Bicajessee Adventures RP 02-02(A)/CT 14-02 N 100 200 400 A 600 ^Feet Map created by the City of Carlsbaci GIS. Portions of the DERIVED PRODUCT contain geographic information copyrighted by SanGIS. All Rights Reserved Easy Peel® Labels Use Avery® Template 5160® Bend along line to expose Pop-up Edge™ AVERY® 5160® ROBERT DRESDNER 145 SCRIBNER HILL RD WILTON, CT 06897-1830 WAYNE & ANGELA WROLSTAD 7 MADONNA LN BROOMALL, PA 19008-2264 JPMORGAN CHASE BANK llll POLARIS PKWY IJ COLUMBUS, OH 43240-2031 CAROLYN J ZOUCHA-REPP 5301 E MITCHELL DR PHOENIX, AZ 85018-6132 WILLIAM LITTLE PO BOX 13 8 0 LOS ANGELES, CA 90078-1380 JAMES R DAVIS 13215 PENN ST 610 WHITTIER, CA 90602-1725 BRENT & DENISE BEAZLEY 16633 VENTURA BLVD 1030 ENCINO, CA 91436-1861 GORDON PO BOX 155 CARDIFF BY TH, CA 92007-0155 EDMOND T SHEHAB 2 914 AUSTIN TER CARLSBAD, CA 92008-6885 M E ADAN 1683 BRADY CIR CARLSBAD, CA 92008-2574 ZULICK *M* 1687 BRADY CIR CARLSBAD, CA 92008-2574 JACK D PHILLIPS 2667 OCEAN ST CARLSBAD, CA 92008-2238 DONALD K & LAEL 3425 SEACREST^ 008-2038 DEWHtmST 3425 SEACREST DR CARLSBAD, CA 92008-2038 DONALD K & LAEL DEWHURST 3425 SEACREST DR CARLSBAD, CA 92008-2038 DONALD K DEWHURgJ 3425 SEACR^ga-'m CARhSB^iS-fCA 92008-2038 TREJO 2687 MADISON ST CARLSBAD, CA 92008-1722 WILSON JANE RESIDENCE 2710 MADISON ST CARLSBAD, CA 92008-1727 JEFFERSON PROFESSIONAL BUILD: 2755 JEFFERSON ST 200 CARLSBAD, CA 92008-1714 TOMMY J & GLADYS HARRIS 722 ARBUCKLE PL CARLSBAD, CA 9200&-1701 JOHN P & GWEN ROBINSON 725 ARBUCKLE PL CARLSBAD, CA 92008-1702 TUPPER FAMILY 2785 JEFFERSON ST CARLSBAD, CA 92008-1718 BENCHMARK PACIFIC LTD II 550 LAGUNA DR B CARLSBAD, CA 92008-1698 BENCHMARK PACIFIC POINSETTIA 550 LAGUNA DR B CARLSBAD, CA 92008-1698 BENCHMARK PACIFIC I^HD II 550 LAGUNA DI CARLSB^JX'SA' 92008-1698 RAPPAPORT 2 963 MADISON ST CARLSBAD, CA 92008-2323 MICHAEL & SANDRA FRANKLIN 2323 KIMBERLY CT CARLSBAD, CA 92008-2077 AMINAT SHARIPOVA 130 HEMLOCK AVE A CARLSBAD, CA 92008-8230 GARY L & JESSICA JACKSON 2718 ROOSEVELT ST F CARLSBAD, CA 92008-1685 HOWARD-JONES MARITAL 2785 ROOSEVELT ST CARLSBAD, CA 92008-1779 Etiquettes faciles h peler Utilisez le gabarit AVERY® 5160® Sensde charaement Repliez d la hadiure afin de r6v£ler le rebord Popnip"' vwmav8ry!«om 1-800«O-AVERY AM3AV-O9-008-I. ulcO'AjaAe'AAJVun If 3vidn-dod pjoqaj a| jai^Aaj . j ap uye ajni|3ei| e| f zaiidau tuatuaBjeqs ap suas [ ®09I,S ®Aa3AV WJeqeS a| zasjiim jaiad f saipe^ sauanbi^^ GLENN GOLDMAN 2653 ROOSEVELT ST D CARLSBAD, CA 92008-1667 CITY OF CARLSBAD 2 922 ROOSEVELT ST CARLSBAD, CA 92008-2334 CITY OF CARLSBAD 2936 ROOSEVELT ST 2 944 CARLSBAD, CA 92008-2334 BICAJESSEE ADVENTWES LLC 2815 JEFFERSON ST 300 CARLSBAD, CA 92008-1717 MICHAEL K MURPHY 63 0 GRAND AVE I CARLSBAD, CA 92008-2364 GENE S & MARGARET RAY 2959 JEFFERSON ST CARLSBAD, CA 92008-2333 PACKARD BUILDING PARTNERSHIP 725 GRAND AVE CARLSBAD, CA 92008-2331 PRIVATE PROPERTIES LLC 810 HOME AVE CARLSBAD, CA 92008-1821 DANIEL & IRENE LOPEZ 928 HOME AVE CARLSBAD, CA 92008-1826 ROY T WINDRUM 932 HOME AVE CARLSBAD, CA 92008-1828 DILL 880 HOME AVE CARLSBAD, CA 92008-1861 KIMBERLY A YORK 880 HOME AVE G CARLSBAD, CA 92008-1800 ALISHA ROGER 882 HOME AVE A CARLSBAD, CA 92008-1862 JOHNSON 4513 COVE DR 12 CARLSBAD, CA 92008-4213 SCANLON 73 06 BORLA PL CARLSBAD, CA 92009-7802 SCARPELLI 92 9 ORCHID WAY CARLSBAD, CA 92011-4830 RUNDLE 1754 BLACKBIRD CIR CARLSBAD, CA 92011-5008 2801 JEFFERSON STREET LLC 7086 ROCKROSE TER CARLSBAD, CA 92011-3955 NABER 6704 LONICERA ST CARLSBAD, CA 92011-3425 MOJTABA ESFAHANI 14824 VISTA DEL OCEANO DEL MAR, CA 92014-4146 WILLIAM V & ROSA DALY PO BOX 260 CARLSBAD, CA 92018-0260 WILLIAM LANPHEAR PO BOX 817 CARLSBAD, CA 92018-0817 JOHN J GIROUX PO BOX 1065 CARLSBAD, CA 92018-1065 JEANENE ENTERPRISES INC PO BOX 1219 CARLSBAD, CA 92018-1219 MAR VISTA PO BOX 1481 CARLSBAD, CA 92018-1481 BRUCE E MORTLAND PO BOX 1600 CARLSBAD, CA 92018-1600 FLETCHER CREDIT SHELTER 2002 PO BOX 1988 CARLSBAD, CA 92018-1988 ROGELIO S & KEELY ALBA PO BOX 2711 CARLSBAD, CA 92018-2711 KLETT PO BOX 4086 CARLSBAD, CA 92018-4086 TGMS INC PO BOX 230562 ENCINITAS, CA 92023-0562 ®09is ®A^aAV me6p3 dn-dod asodxa o} aufi 6uo|e puag ®091S a»B|duiai ®AjiaAV asn siaqei siaad Aseg T I AMiAV-OD-008-l. mCO'AlBKB-MMNi r ^„dn-dod pJoqai ar aa,aAai J"!^^!^' _ T { ap uye ajni|3et| e| ^ zandau ®091S ®AM3AV »|JBqB6 a| zasinm ja|ad f saipe^ sauanbi^p SETH HOENIG PO BOX 232401 ENCINITAS, CA 92023-2401 JAMES V WOOD PO BOX 232134 ENCINITAS, CA 92023-2134 DANIEL Sc DEBBIE DOLAN 169 JUPETEN ST ENCINITAS, CA 92024 PGP CARLSBAD LLC 1120 SILVERADO ST LA JOLLA, CA 92037-4524 PGP CARLSBAD SENIORS LTD II 1120 SILVERADO ST LA JOLLA, CA 92037-4524 DANIEL J & ROSELLA CERDA 1915 ANDREWS CT OCEANSIDE, CA 92054-6100 MADISON SQUARE CONDOS LLC PO BOX 669 POWAY, CA 92074-0669 CHARLES & LORRAINE WULLENJOHt 1259 DISCOVERY ST SAN MARCOS, CA 92078-4032 KAREN J BARLOW 519 S SANTA FE AVE VISTA, CA 92083-5937 CARLSBAD GRAND LLC 701 B ST SAN DIEGO, CA 92101-8101 MARILYN WILSON 4920 COLLINGWOOD DR SAN DIEGO, CA 92109-2243 SWYS CORP 7837 CONVOY CT 100 SAN DIEGO, CA 92111-1209 FIVE COASTAL GEM PROPERTIES I 158 C AVE CORONADO, CA 92118-142 0 MISSION FEDERAL CREDIT UNION 5785 OBERLIN DR SAN DIEGO, CA 92121-3749 VERMILYEA GSD 1162 0 KISMET RD SAN DIEGO, CA 92128-5024 YOUNG S PYO 5487 WHITE OAK LN SAN DIEGO, CA 92130-5753 THOMAS C CURTIN 5090 CRESCENT BAY DR SAN DIEGO, CA 92154-4877 ROOSEVELT TAMARACK INVESTMENT 6 VENTURE 215 IRVINE, CA 92618-7364 SOOHOO FAMILY 2506 LIGHTHOUSE LN CORONA DEL MA, CA 92625-1310 PETER A Sc GEORGETTE ROCK 2421 S EL CAMINO REAL SAN CLEMENTE, CA 92672-3351 PARKER 560 HIGHIAND DR DANVILLE, CA 94526-3711 MARK J NOLAN 20322 CAROL LN SARATOGA, CA 95070-3114 *** 82 Printed *** ^ notice has been mailed to all property owners/occupaflts Slgftiturg;^_j{ML_^ ®09is ®A%I3AV wia6p3 dn-dod asodxa Ol auji 6uo|e puag jaded paaj • ®091S a»B|duiai ®AjaAV asn siaqei «Ki8a<i Aseq State of California—Natural Resources Agency CALIFORNIA DEPARTMENT OF FISH AI^^ILDLIFE 2014 ENVIRONIVIENTAL FILING FEE CASH RECEIPT SEE INSTRUCTIONS ON REVERSE. TYPE OR PRINT CLEARLY RECEIPT* SD2014 0494 STATE CLEARING HOUSE #(ifapplicable) City OfCarlsbad LEADAGENCY CITY OF CARLSBAD PLANNING DIVISION JUL 1 8 ''flM DATE 06/13/2014 COUNTY/STATEAGENCYOF FILING SAN DIEGO v^^i~ X ^ LU IT DOCUMENTNUMBER *20140494* PROJECTTrrLE CT 14-02 - BICAJESSEE ADVENTURES Planning Division PROJECTAPPLICANT NAIVIE SHEAR & ASSOCIATES, INC. PHONENUMBER (760) 736-2040 PROJECTAPPLICANT ADDRESS 475 PRODUCTION STREET CFTY SAN MARCOS STATE CA ZIPCODE 92078 PROJECT APPLICANT (Check appropriate box): Q Local Public Agency • School District • Other Special District • State Agency ^ Private Entity CHECK APPLICABLE FEES: Q Environmental Impact Report (EIR) • Negative Declaration (ND)(MND) Q Application Fee Water Diversion (Sfate Water Resources Control Board Only) Q Projects Subject to Certified Regulatory Programs (CRP) 121 County Administrative Fee Q Project that is exempt from fees (3 Notice of Exemption • CDFW No Effect Determination (Form Attached) • Other PAYIVIENT METHOD: • Cash • Credit 13 Check • Other CHK: 12325 $3,029.75 $ $2,181.25 $ $850.00 $ $1,030.25 $ $50.00 $ $50.00 TOTALRECEIVED $ $50.00 SIGNATURE G. Meza TTTLE X Deputy III II ORIGINAL - PROJECT APPLICANT COPY-CDFW/ASB COPY-LEAD AGENCY COPY-COUNTY CLERK FG753,5a (Rev 11/12) NOTICE OF EXEMPTION To: SD County Clerk From: CITYOFCARLSBAD [p' D [L [1 © Attn: James Scott Planning Division Kmusl.1 Dronenburg..Ir. RecorderCount\Clerk 1600 Pacific Highway, Suite 260 1635 Faraday Avenue PO Box 121750 Carlsbad, CA 92008 JUN T 3 2014 San Diego, CA 92101 (760) 602-4600 BY G MQZB DEPUTY Subject: Filing of this Notice of Exemption is in compliance with Section 21152b of the Public Resources Code (California Environmental Quality Act). Project Number and Title: CT 14-02 - BICAJESSEE ADVENTURES Project Location - Specific: 2815 Jefferson Street Project Location - City: Carlsbad Project Location - County: San Diego Description of Project: - Request for a recommendation of approval for a Tentative Tract Map to allow for the airspace subdivision of an existing three story commercial office building into six separate ownership units located at 2815 Jefferson Street. Name of Public Agency Approving Project: Citv of Carlsbad Name of Person or Agency Carrying Out Project: Lance Johnson Name of Applicant: Shear & Associates, Inc. Applicant's Address: 475 Production Street, San Marcos. CA 92078 Applicant's Telephone Number: (760) 736-2040 Exempt Status: (Checlc One) • Ministerial (Section 21080(b)(1); 15268); • Declared Emergency (Section 21080(b)(3); 15269(a)); • Emergency Project (Section 21080(b)(4); 15269 (b)(c)); ^ Categorical Exemption - State type and section number: 15301(k) • Statutory Exemptions - State code number: • General rule (Section 15061(b)(3)) Reasons why project is exempt: The Citv Planner has determined that this proiect is exempt from the requirements of the California Environmental Qualitv Act (CEQA) pursuant to Section 15301(k) "Existing Facilities" of the State CEQA Guidelines and will not have anv adverse significant impact on the environment. Lead Agency Contact Person: Greg Fisher Telephone: (760) 602-4629 Cf/~>-/^ DON NEU, City Planner Date Date received for filing at OPR: Revised 05/13 ^•ii • 1% ^ :c OFFICE OF THE CO:.?.:'-- C.ERK San Diego County on -^^^^^2014 Poste(jJiJNJjj01i^Refnoye(j JUL ] alolT Relu'::dtoagencv on M 16 20T? " •^epu'y-CL JVIeza ~-—- <^CITY OF QFILE VCARLSBAD ^riLC Community & Economic Development www.carisbadca.gov March 31, 2014 Kent W. Jessee 2815 Jefferson Street, Suite 300 Carlsbad, CA 92008 SUBJECT: CT 14-02/RP 02-02(A) BICAJESSEE ADVENTURES - CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) APPLICABILITY/PROCESS DETERMINATION AND TARGET DECISION DATE CEQA Determination: This is to advise you that after reviewing the application for the project referenced above, the City has determined that the foliowing environmental review process (pursuant to CEQA) will be required for the project: The project is exempt from the provisions of CEQA, pursuant to CEQA Categorical Exemption Section 15301(k) - Existing Facilities. No environmental review is required for the project. A Notice of Exemption will be filed after approval of the project with the San Diego County Clerk's Office which involves a filing fee. Please submit a check to the project planner in the amount of $50.00 made out to the San Diego County Clerk. The check should be submitted approximately one week prior to the Planning Commission hearing decision date. Please do not submit the check any earlier. Target Decision Date: In the interest of expeditiously processing your application consistent with the State Permit Streamlining Act (California Government Code Section 65950), the project should be scheduled for a public hearing no later than May 27, 2014. For additional information related to this CEQA applicability/process determination or should you have any questions regarding an application extension or would like to withdraw your application, please contact Greg Tisher at 760-602-4629 or by email at greg.fisher@carlsbadca.gov. Sincerely, DON NEU, AlCP City Planner DN:gf:sm c: Spear & Associates, Inc., 475 Production Street, San Marcos, CA 92078 Chris DeCerbo, Principal Planner Steve Bobbett, Project Engineer Michele Masterson, Senior Management Analyst File Copy Data Entry Planning Division 1635 Faraday Avenue, Carlsbad, CA 92008-7314 T 760-602-4600 F 760-602-8559 CITY OF CARLSBAD Police Department www.carlsbadca.gov Date: Feb. 7, 2014 To: Planning Tracking Desk- Planning Department From: J. Sasway, Carlsbad Police Department Subject: Bicajessee Adventures- CT 14-02/RP 02-02(A) Plan Review Recommendations Carlsbad Police Department's Crime Prevention Unit has provided the following optimal security recommendations. The purpose ofthis document is to safeguard property and public welfare by regulating and reviewing the design, construction, quality of materials, use and occupancy, location, and maintenance of all buildings and structures. The standards used in this document represent model international standards. Crime Prevention through Environmental Design The proper design and effective use of the built environment can lead to a reduction in the fear and incidence of crime and an improvement in the quality of life. The proper design influences this by positively affecting human behavior. The design includes the physical environment, the planned behavior of people, the productive use of space and an effective crime/loss prevention program. Natural Surveillance 1. Design the placement of persons, common areas or activities to maximize surveillance possibilities. 2. Design lighting that provides for appropriate nighttime illumination of walkways, entrances and driveways. Natural Access Control 1. Use walkways, pavement, lighting and landscaping to clearly guide guests to and from selected entrances. 2. Use real or symbolic barriers like fences or landscaping to prevent and or discourage access to or from dark and or unmonitored areas. 3. Used managed access on garage entrances, common doors and elevators. Provisions for territorial reinforcement 1. Use pavement treatments, landscaping and fences to define and outline ownership or property. 2. Show clean transitions between public, semi-public and private (residential) space. ^ 2560Orion Way, Carlsbad, CA 92010-7240 T 760-931-2100 F 760-931-8473 ® Lighting 1. All types of exterior doors should be illuminated during the hours of darkness, with a minimum maintained one (1) foot-candle of light, measured within a five-foot radius on each side ofthe door at ground level. 2. Recessed areas of buildings or fences, which have a minimum depth of two feet, a minimum height of five feet, and do not exceed six (6) feet in width and are capable of human concealment, should be illuminated with a minimum maintained 0.25 foot-candles of light at ground level during the hours of darkness. This recommendation applies to defined recessed areas, which are within six feet of the edge of a designated walking surface with an unobstructed pathway to it, not hindered by walls or hedgerow landscaping a minimum of two (2) feet in height. 3. All exterior pedestrian walkways, interior common corridors, open parking and interior garages lots should be illuminated with a minimum maintained one (1) foot-candle of light on the walking or driving surface during the hours of darkness. 4. Overhead light poles should not be placed in an area planted with shade trees or other canopy producing species. Only basic ground cover, including but not limited to hedges and shrubs, should be used. 5. The parking and drive surface lighting should have a rated average bulb life of not less than 10,000 hours. 6. Accessible luminaries should have vandal resistant light fixtures and be not less than three feet in height from ground level when used to illuminate walkways and a minimum of eight feet in height from ground level when illuminating surfaces associated with vehicles. Light fixtures should be deemed accessible if mounted within fifteen feet vertically or six feet horizontally from any accessible surface or any adjoining roof, balcony, landing, treads, platform or similar structure. Landscaping 1. The basic landscaping theme should consist of low ground cover with a maximum height of 2 feet and canopy trees with a minimum lower canopy of 6 feet. 2. Overhead light poles should not be placed in an area planted with shade trees or other canopy producing species. Only basic ground cover, including but not limited to hedges and shrubs, should be used. 3. Use security landscaping in areas to deter loitering or entrance where pedestrians are not wanted. Addressing 1. Numerals should be located where they are clearly visible from the street on which they are addressed. They should be of a color contrasting to the background to which they are affixed. 2. Numerals should be no less than six inches in height, if located less than 100 feet from the centerline of the addressed street or 12 inches in height if placed further than 100 feet from the centerline ofthe addressed street. 3. The numerals should be illuminated during the hours of darkness. 4. The rear doors of all building should have address numbers not less than six inches in height and be of a color contrasting to the background to which they are affixed. 5. Buildings with a total square footage of at least 10,000 square feet should have rooftop numbers placed parallel to the addressed street, screened from public view and only visible from the air. The numerals are to be white, block lettered, constructed of weather resistant material, and placed against a black background. Address numbers are to be a minimum of four feet in height and 18 inches wide Doors 1. Use hollow steel doors that are a minimum sixteen (16) U.S. gauge and have sufficient reinforcement to maintain the designed thickness ofthe door when any locking device is installed. 2. Use only glass doors with fully tempered glass or rated burglary resistant glazing. Protect all exterior doors with security hardware. 3. Equip all doors with a latch cover constructed of steel. Ensure the latch cover is a minimum of .125 inch thick. Attach the latch cover to the outside by welding or with non-removable bolts spaced apart on not more than ten-inch centers. 4. Construct the jamb of all aluminum frame-swinging doors to withstand 1600 pounds of pressure in both a vertical distance of three inches and horizontal distance of one inch each side ofthe strike, to prevent violation ofthe strike. 5. Equip rear doors used for shipping and receiving and employee entrances with a viewer. 6. Equip a single or double door with a double cylinder deadbolt with a bolt projection exceeding one inch or a hook-shaped or expanding deadbolt that engages the strike sufficiently to prevent spreading. The deadbolt lock shall have a minimum of five-pin tumblers and a cylinder guard. Windows 1. Equip movable windows with security hardware and burglar resistant glazing. 2. Cover other vulnerable non-movable windows with burglar resistant glazing. Windows of commercial buildings are vulnerable to breakage during the hours of darkness when the business is non-operational especially windows within 40 inches of any door locking mechanism 3. Glaze should be constructed of either two part laminated glazing with a 0.60 inch inner layer or burglary resistant glazing Stairways 1. Interior doors should have glazing panels a minimum of five inches wide and 20 inches in height and meet requirements ofthe Uniform Building Code. 2. Areas beneath stairways at or below ground level shall be fully enclosed or access to them restricted. 3. Stair towers and elevators have been the highest risk for personal injury as they are typically enclosed. Stairways should be designed to be completely visible from either the interior or exterior or both, unless mandated by the Uniform Building Code to be enclosed. 4. Fully enclosed interior or exterior stairways with solid walls, when required, should have shatter resistant mirrors or other equally reflective material at each level and landing and be designed or placed in such a manner as to provide visibility around corners. Elevators 1. Elevator cabs with interiors that are not completely visible when the door is open from a point centered on and 36 inches away from the door, shall have shatter resistant mirrors or other equally reflective material so placed as to make visible the entire elevator cab from this point. 2. The elevator cab should be illuminated at all times with a minimum maintained two foot- candles of light at floor level. Roofs 1. All skylights on the roof of any building should be provided with rated burglary resistant glazing material securely fastened with bolts that are non-removable from the exterior. 2. All hatchway openings on the roof of any building should be secured as follows: a. If the hatchway cover is of wooded material, it should be covered on the inside with at least sixteen (16) gauge steel metal or its equivalent and attached with screws. 3. All air duct or air vent opening exceeding ninety-six (96) square inches on the roof, exterior doors, or exterior walls of any building should be secured by covering the same with the following: a. Iron bars of a least number four (4) steel or equivalent, spaced no more than five (5) inches apart on center, at each direction, welded at all point of intersection, or one by one-fourth (1X %) inch flat steel or equivalent, spaced no more the five (5) inches apart on center, welded at all points of intersection. Alarm Systems 1. When considering an alarm system, the police department recommends a "verified system" in an effort to eliminate false alarm activations and increase breach detection. A verified system is verified through audio or visual components. 2. If considering electronic assess as a security feature, consider managed electronic access. This information is a representation of information gathered on a national level. The purpose is to provide effective and consistent information. Ifyou would like additional assistance concerning building security or employee security issues, please contact the Crime Prevention Unit at (760) 931-2105. By, Jodeene R. Sasway, Community Relations Manager Crime Prevention and Public Information 760-931-2195 Jodee.Sasway(5)CarlsbadCA.gov CITY OF ViCARLSBAD Community & Economic Development FILE www.carlsbadca.gov July 23, 2014 Spear & Associates 475 Production Street San Marcos, CA 92078 Attn: Lance SUBJECT: NOTICE OF RESTRICTION - CT 14-02 - BICAJESSEE ADVENTURES Dear Applicant: Please find the enclosed Notice of Restriction that needs to be signed, notarized, and returned for recordation. This is to fulfill a condition of approval of the CT 14-02. Please ensure the following items are addressed prior to returning the Notice of Restriction: Correct Notary Acknowledgement Required (Effective Januarv 1. 2008. all Certificates; of Acknowledgement used by a California notarv on a document that will be recorded in the State of California must NOT HAVE "PERSONALLY KNOWN TO ME" in the acknowledgement. (Assembly Bill 886, Chapter 399)) ^ Document must be properly notarized. ^ Name on signature page and name on Notarial Acknowledgement must match. ^ Property owner's signatures/initials must be the same as on Notary Acknowledgement. ^ Notary seal cannot be blurry/too light (County will not record the document If any portion of the Notary Seal is blurry or too light) ^ Include property owner's name in the designated space above the owner's signature. ^ Please pay particular attention to the signature requirements at the bottom ofthe signature page. It is our goal to assist you in getting the Notice of Restriction recorded as expeditiously as possible. If you have any questions or need additional assistance, please contact Michele Masterson, Senior Management Analyst at (760) 602-4615 or via email at michele.masterson@carlsbadca.gov. Since GREG FISHER Assistant Planner c: Kent Jessee, Suite 300, 2815 Jefferson Street, Carlsbad, CA 92008 Michele Masterson, CED Senior Managennent Analyst File Copy Planning Division 1635 Faraday Avenue, Carlsbad, CA 92008-7314 T 760-602-4600 F 760-602-8559 ® OP " ' a FILE VXARLSBAD Community & Economic Development www.carlsbadca.gov PLANNING COMMISSION NOTICE OF DECISION June 5, 2014 Lance Johnson, Sr. Cad Designer Spear & Associates, Inc. 475 Production Street San Marcos, CA 92078 SUBJECT: CT 14-02 - BICAJESSEE ADVENTURES At the June 4, 2014 Planning Commission meeting, your application was considered. The Commission voted 5-0 to APPROVE your request. The decision of the Planning Commission is final on the date of adoption unless a written appeal to the City Council is filed with the City Clerk within ten (10) calendar days in accordance with the provisions ofCarlsbad Municipal Code section 21.54.150. The written appeal must specify the reason or reasons for the appeal. Ifyou have any questions regarding the final dispositions of your application, please contact your project planner Greg Fisher at (760) 602-4629 or greg.fisher@carlsbadca.gov. Sincerely, DON NEU, AlCP City Planner DN:GF:fn c: Data Entry File enc: Planning Commission Resolution No. 7053 Planning Division 1635 FaradayAvenue, Carlsbad, CA 92008-7314 T 760-602-4600 F 760-602-8559 A>c,Tvof FliECDri VICARLSBAD Community & Economic Development www.carlsbadca.gov May 13, 2014 Lance Johnson, Sr. Cad Designer Spear & Associates, Inc. 475 Production Street San Marcos, CA 92078 RE: CT 14-02 - BICAJESSEE ADVENTURES The preliminary staff report for the above referenced project will be sent to you via email on Wednesday, May, 21, 2014, after 8:00 a.m. This preliminary report will be discussed by staff at the Development Coordinating Committee (DCC) meeting which will be held on Tuesday May 27, 2014. A twenty (20) minute appointment has been set aside for you at 9:30 a.m. Ifyou have any questions concerning your project you should attend the DCC meeting. It is necessary that you bring the following required information with you to this meeting or provide it to your planner prior to the meeting in order for your project to go forward to the Planning Commission: 1. Unmounted colored exhibit(s) of your site plan and elevations. For residential projects of 2 or more homes a typical street scene of the elevations shall be provided. The corresponding rear elevations for the homes shown for the typical street scene shall also be provided; and 2. A PDF of your colored site plan and elevations. The colored exhibits must be submitted at this time to ensure review by the Planning Commission at their briefings. If the colored exhibits are not available for their review, vour proiect could be rescheduled to a later time. The PDF of your colored site plan and elevations will be used in the presentation to the Planning Commission and the public at the Planning Commission Hearing. If you do not plan to attend this meeting, please make arrangements to have your colored exhibit(s) and the PDF here by the scheduled time above. Should you wish to use visual materials in your presentation to the Planning Commission, they should be submitted to the Planning Division no later than 12:00 p.m. on the day of a Regular Planning Commission Meeting. Digital materials will be placed on a computer in Council Chambers for public presentations. Please label all materials with the agenda item number you are representing. Items submitted for viewing, including presentations/digital materials, will be included in the time limit maximum for speakers. All materials exhibited to the Planning Commission during the meeting (slides, maps, photos, etc.) are part of the public record and must be kept by the Planning Division for at least 60 days after final action on the matter. Your materials will be returned upon written request. If you need additional information concerning this matter, please contact your Planner, Greg Fisher at (760) 602- 4629 or at greg.fisher(S)carlsbadca.gov. Sincerely, ^^^^ DON NEU, AlCP City Planner DN:GF:bd c: File Copy David Rick, Project Engineer PlannWyi!«vision 1635 Faraday Avenue, Carlsbad, CA 92008-7314 T 760-602-4600 F 760-602-8559 0 <3|>c,Tvo. a FILE V (CARLSBAD Community & Economic Development www.carlsbadca.gov April 3, 2014 Kent W. Jessee 2815 Jefferson Street, Suite 300 Carlsbad, CA 92008 SUBJECT: 2ND REVIEW FOR CT 14-02/RP 02-02(A) - BICAJESSEE ADVENTURES Dear Mr. Jessee, All of the outstanding project issues have been resolved and your project will be scheduled for a public hearing as soon as possible. Please contact me at (760) 602-4629, if you have any questions or wish to set up a meeting to discuss the application. FIS Assistant Planner GF:sm Spear and Associates, Inc., 475 Production Street, San Marcos, CA 92078 Chris DeCerbo, Team Leader Steve Bobbett, Project Engineer File Copy Data Entry Planning Division ^ 1635 Faraday Avenue, Carlsbad. CA 92008-7314 T 760-602-4600 F 760-602-8559 %XRLSBAD FILE COPY Community & Economic Development www.carlsbadca.gov April 21, 2014 W. Kent Jessee Suite 300 2815 Jefferson Street Carlsbad, CA 92008 SUBJECT: CT 14-02 - BICAJESSEE ADVENTURES Your application has been tentatively scheduled for a hearing by the Planning Commission on June 4, 2014. However, for this to occur, you must submit the additional items listed below. Ifthe required items are not received by May 13, 2014, your project will be rescheduled for a later hearing. In the event the scheduled hearing date is the last available date for the City to comply with the Permit Streamlining Act, and the required items listed below have not been submitted, the project will be scheduled for denial. 1. Please submit the following plans: A) 10 copies of your (tentative tract map) on 24" x 36" sheets of paper, stapled in complete sets folded into 9" x 12" size. B) One SV/' x 11" copy and a PDF version of your reduced tract map/site plan. These copies must be of a quality which is photographically reproducible. Only essential data should be included on plans. 2. As required by Section 65091 of the California Government Code, please submit the following information needed for noticing and sign the enclosed form: A) 600' Owners List - a typewritten list of names and addresses of all property owners, including all forms of interval ownership, within a 600 foot radius of the subject property, including the applicant and/or owner. The list shall include the San Diego County Assessor's parcel number from the latest equalized assessment rolls. Planning Division 1635 Faraday Avenue, Carlsbad, CA 92008-7314 T 760-602-4600 F 760-602-8559 ® CT 14-02 - BICAJESSEE ADVENTURES B) Mailing Labels - If the number of owners within the 600 foot radius is 1,000 or greater, a display advertisement in two papers of general circulation will be placed in lieu of direct mailing and labels will not be required to be submitted. If the number of owners within the 600 foot radius is less than 1,000, please submit two (2) separate sets of mailing labels ofthe property owners within a 600 foot radius ofthe subject property. For any address otherthan a single-family residence, an apartment or suite number must be included. DO NOT provide addressed envelopes - PROVIDE LABELS ONLY. Labels should be prepared in ALL CAPS using block or sans serif typeface. A sample label is as follows: ACCEPTABLE MRS JANE SMITH APT 3 123 MAGNOLIA AVE CARLSBAD CA 92008 C) Regarding B "Mailing Labels" above, only one additional set is required. We have one unused set on file but need an additional set for the City Council hearing. D) Radius Map - a map to scale, not less than 1" = 200', showing all lots entirely and partially within 600 feet of the exterior boundaries of the subject property. Each of these lots should be consecutively numbered and correspond with the property owner's list. The scale ofthe map may be reduced to a scale acceptable to the City Planner ifthe required scale is impractical. E) Fee - a fee shall be paid for covering the cost of mailing notices. Such fee shall equal the current postage rate times the total number of labels. In the case of ownership list that is 1,000 or greater, the fee is equal to the current cost of publishing an 1/8 page ad In two newspapers of general circulation. Cash, check (payable to the City of Carlsbad) and credit cards are accepted. Please provide the cost of the mailing notices for both the Planning Commission and City Council meetings. Sincerely, GREG FISHER Assistant Planner GF:fn Attachment File Data entry <%c,TvoF QFILE VICARLSBAD Community & Economic Development www.carlsbadca.gov February 27, 2014 W. Kent Jessee 2815 Jefferson Street, Suite 300 Carlsbad, CA 92008 SUBJECT: 1st REVIEW FOR a 14-02/RP 02-02(A) - BICAJESSEE ADVENTURES Thank you for applying for Land Use Permits in the City of Carlsbad. The Planning Division has reviewed your Major Review Permit Amendment and Carlsbad Tract Map, application nos. RP 02-02(A)/CT 14-02, as to its completeness for processing. The application is complete, as submitted. Although the initial processing of your application may have already begun, the technical acceptance date is acknowledged by the date of this communication. The City may, in the course of processing the application, request that you clarify, amplify, correct, or otherwise supplement the basic information required for the application. In addition, you should also be aware that various design issues may exist. These issues must be addressed before this application can be scheduled for a hearing. The Planning Division will begin processing your application as of the date of this communication. At this time, the City asks that you provide three complete sets of the development plans so that the project can continue to be reviewed. The Citv will complete the review of vour resubmittal within 25 davs. In order to expedite the processing of your application, you are strongly encouraged to contact your Staff Planner, Greg Fisher, at (760) 602-4629, to discuss or to schedule a meeting to discuss your "application and to completely understand this letter. You may also contact each commenting department individually as follows: • Land Development Engineering Division: Steve Bobbett, Associate Engineer, at (760) 602-2737. • Fire Department: Fire Inspections, at (760) 602-4661. Sincerely, CHRIS DeCERBO Principal Planner CD:GF:sm Attachment: Form P-21 Planning Division 1635 Faraday Avenue, Carlsbad, CA 92008-7314 T 760-602-4600 F 760-602-8559 ® CT 14-0^RP 02-02(A) - BICAJESSEE ADVENTURES February 27, 2014 Page 2 c: Don Neu, City Planner Steve Bobbett, Project Engineer Chris DeCerbo, Principal Planner Michele Masterson, Senior Management Analyst File Copy Data Entry I CT 14-02/RP 02-02(A) - BICAJESSEE ADVENTURES February 27, 2014 Page 3 ISSUES OF CONCERN Planning: 1. The mailing labels provided to the City to be used for the Early Public Notice (EPN) are for property owners within a radius of 500 feet per the certification page. There is also a reference to 600 feet on the Search Criteria cover letter. Please clarify. As a reminder, the EPN requires owners to be notified within a radius of 600 feet from the subject property. A copy of the EPN (P-21) requirements is provided for your convenience. 2. Please include the City assigned project numbers within the upper-right hand portion of the plans (RP 02-02(A)/CT 14-02). 3. Within the General Information section, include the following information: total building square footage; square footage for each floor; square footage for each proposed unit. 4. Please remove or modify the average daily trip information on Sheet 1. Engineering: 1. Although no additional development or construction is proposed, the applicant needs to submit Storm Water Standards Questionnaire E-34. The questionnaire is available on line at: http://www.carlsbadca.gov/business/building/Documents/E-34.pdf 2. Show the installation of a separate irrigation water service and meter.