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HomeMy WebLinkAbout20040930047 ,_IIH. Secretary' of State I, SAM REED, Secretary of State of the State of Washington and custodian of its seal, hereby issue this CERTIFICATE OF INCORPORATION to BREMERTON GOVERNMENT CENTER ASSOCIATION alan W A Non-Profit Corporation. Charter documents are effective on the date indicated below. I ~~'JMtM,. Date: 11/8/2004 UBI Number: 602-444-534 APPID: 178471 Given under my hand and the Seal of the State of Washington at Olympia, the State Capital ~~ Sam Reed. Secretary or State I .:l1d a;t': r '- 11/08/2004 11/08/2004 509621 $50.00 Chlkdt .10240t Tnd:lng 10: 8:06813 l>oc No: 509621-001 FILED SECRETARY OF STATE STATE OF WASHINGTON ARTICLES OF INCORPORA nON ~ ~ UBI 602 444 534 ../ OF ........ ~ BREMERTON GOVERNMENT CENTER ASSOCIA nON The undersigned, acting as incorporator of a corporation under the Washington Nonprofit Corporation Act (Ch. 24.03 RCW), adopts the following Articles of Incorporation for the corporation. ARTICLE 1. Name The name of this corporation is Bremerton Government Center Association. ARTICLE 2. Duration The duration of this corporation is perpetual. ARTICLE 3. Purposes This corporation is organized to provide an entity pursuant to the Washington Condominium Act (Ch. 64.34 RCW), hereinafter called the "Condominium Act," for the operation ofBremerton Government Center, a condominiwn located in Bremerton, Washington, and to engage in all such activities as are incidental or conducive to the attainment of the objectives of the corporation and all activities which are permitted to be done by a nonprofit corporation under any laws that may now or hereafter be applicable or available to this corporation. The powers of this corporation shall be subject to and shall be exercised in accordance with the Condominium Act and the provisions of the Condominium Declaration for Bremerton Government Center, a condominium, as it may from time to time be amended, hereinafter referred to as the "Declaration." ARTICLE 4. Dissolution Upon dissolution or final liquidation of the corporation, the assets of the corporation shall be distributed among the members of the corporation in accordance with the Condominium Act and the Declaration. ARTICLE 5. Members The corporation shall have one class of members, which shall consist of the owners of the units at Bremerton Government Center, a condominium. The rights, privileges, and obligations of the members are set forth in the Condominium Act, the Declaration, and the Bylaws of the corporation. - 1 - '0U4102.02 ARTICLE 6. Registered Office and Agent The name of the initial registered agent of the corporation is National Registered Agents, Inc. The address of the initial registered office of the corporation is 1780 Barnes Blvd. S.W., Bldg. G, Tumwater, Washington 98512-0410. ARTICLE 7. Directors The number of directors of this corporation shall be fixed by the Bylaws and may be increased or decreased from time to time in the manner specified therein. The initial Board of Directors shall consist of three directors. The names and addresses of the persons who shall serve as directors until the first meeting of the members, and until their successors are elected and qualify unless they resign or are removed are: Mayor Cary Bozeman Bremerton City Hall 239 4th Street Bremerton, WA 98337 Scott W. Lindquist, MD, MPH Kitsap County Health District 109 Austin Drive Bremerton, W A 98312 Nonnan S. McLoughlin Kitsap County Consolidated Housing Authority 9307 Bayshore Drive N.W. Silverdale, W A 98383 ARTICLE 8. Limitation of Liability A director of the corporation shall not be personally liable to the corporation or its members for monetary damages for conduct as a director, except for liability of the director (a) for acts or omissions which involve intentional misconduct by the director or a knowing violation of law by the director, (b) for any transaction from which the director will personally receive a benefit in money, property or services to which the director is not legally entitled, or (c) for conduct violating Section 238.08.310 of the Washington Business Corporation Act. Any repeal or modification of this Article by the directors or members of the corporation shall not adversely affect any right or protection of any individual who is or was a director of the corporation which existed at the time of such repeal or modification. ARTICLE 9. Indemnification The corporation shall indemnify any individual made a party to a proceeding because that individual is or was a director of the corporation and shall advance or reimburse the -2- '03"]01.01 UI reasonable expenses incurred by such individual in advance of final disposition of the proceeding, without regard to the limitations in RCW 23B.OS.510 through 23B.08.550 of the Washington Business Corporation Act, or any other limitation which may hereafter be enacted to the extent such limitation may be disregarded if authorized by the Articles of Incorporation, to the full extent and under all circumstances permitted by applicable law. Any indemnification provided under this Article shall, unless limited by the terms of the undertaking to indemnify, continue as to a person who has ceased to be a director, officer, employee, or agent and shall inure to the benefit of his or her heirs, executors, and administrators. Any repeal or modification of this Article by the directors or members of the corporation shall not adversely affect any right or protection of any individual who is or was a director, officer, employee, or agent of the corporation existing at the time of such repeaJ or modification. ARTICLE 10. Amendment Any amendment to these Articles of Incorporation shall require the approval of not less than sixty-seven percent (67%) of the votes of the members of the corporation and such other approvals as may be required in the Declaration. ARTICLE 11. Incomorator The name of the incorporator is Cheryl Conklin. Her address is 1780 Barnes Blvd. S.W., Bldg. G, Tumwater. Washington 98512-04101111. Executed on \~-g\,~w.f '-. ~ ~.MKl~ CHERYL IN. INCORPORATOR -3. I01400l.02 CONSENT TO SERVE AS REGISTERED AGENT National Registered Agents, Inc. ("NRAI"), hereby consents to serve as Registered Agent in the State of Washington for Bremerton Government Center Association. NRAI understands that as agent for the corporation, it will be its responsibility to receive service of process in the narne of the corporation; to forward all mail to the corporation; and to immediately notify the office of the Secretary of State in the event of its resignation, or of any changes in the registered office address of the corporation for which it is agent. NATIONAL REGISTERED AGENTS, INC. _10/0812004 (date) By {lAW:'" l~_ Name: Connie Puryear Title: Assistant Secretary NAME OF REGISTERED AGENT: National Registered Agents, Inc. ADDRESS OF REGISTERED AGENT: 1780 Barnes Blvd. S.W., Bldg. G Tumwater, Washington 98512-0410 -4- SQJ.4.IJ02.01 Foster Pepper & Shefelman PLLC I" '.'" ---- -, Attention: Gary N. Ackerman 11 t 1 Third Avenue, Suite 3400 I"'. . _.I.1l . Seattle, Washington 98101-32991" '".....rAClfIC NJ.I TITLE I I, I ,I ", 1.1111'11.1 III I ,:1 Ill' '1,1'1'1 ,,11,1 ,,11'1" ',I I IIII ',11,1 , ..'I'" ,', I I 1 II III. 'II 111'1, ,.11'11111 ,I II I" I, ",:'""':,, "ICONDO~INIUM DECLARATION - , " , , I FOR .: 1(lilll'(:1 11.'11 I . ,~~~RfoN GQV~~~MENT CENTER, A CONDOMINIUM I I " 'I" ,I " 1'1 I '" II. I I I I " I I 1 " '1,1 I "II", " Grant~r).Q~~~~~t:' KII~~~'~'t':UNTY CONSOLIDATED HOUSING AUTHORITY ,"', '.,"::',,'(' 1\ttfiit~'~nat,r ames on pg, N/A . '. I. II I I I I. I II III I II Grant~ell1" BREMERTON GOVERNMENT (::ENTER, A CONDOMINIUM Additional names on pg. N/ A "5~, S'~. Legal Description: Section 13, Township 24 North, and Range I East, W.M. Official legal description on Schedule A 'J , . " 200409300447 Page-: I of 45 ..1 I , 8913812194 8"471' OECL ~3 _ B8 Kitnp Co, IJR ~ . Assessor's Tax Parcel ID#: 3718-005-001-0005 I Reference # (if applicable): N/A Additional numbers on pg. N/A 09/29/04 2: I 5 PM ~0343937.09 1"1. III 1',11111111 .: 1"r,I'1 ,11 II, '11,1 II, I II 11 '. I, I 1,11,1 , I I , ,,11'1" ',I I 1111 ',1111 I ..'I'll ,"'II I, I I I I II II ,II.: II, 1.:1011111 " I,ll II I. 1,.1, I ,I 'II ,1,1 II I. ,I I 1III1 II I. .1 I III ,1"111.11 I, I 10, II. II I I ' '1'1' II, I I I I, ',1,'111 I : "111: I. I,:: 11111 1",1, 'II" , I I 1.'11 I III I' 'f ., II I, J l'I,IIII:l I I 1111111' \ - / 09/29/04 2:15 PM 50343937.09 .6 ,,'I r""!, I '0.'1111 II II II II. I I' 1'1 I ",I , I I 11':1":'1 -; I I ,,'I'll.:. ,III,' 1.1111 111111 :1,1 III ',111111 II III I CONDOMINIUM DECLARA nON FOR BREMERTON GOVERNMENT CENTER A CONDOMINIUM r ,I - \ I PACIFIC NU TITLE 1111 '\-~ ,- I. .n. 200409300447 Page: 2 of 45 SS/3S/~BB4 83:47P OECL $63,8B Kitsap Co> UA TABLE OF CONTENTS ,''', Page 111 11111111111 ,I I, I ,I , INITIONS' I .I"" I I ArtIcle 1. DEF . 'rtr.."..~Ji"! I.l.: ..... .................................." ...... ............. ..... .......... S . 1 I W d D ~"~A" ' ',',,1 I ectlon. or s e.I.I',':'l,l...I.'..lr'l....................... ............ ......... ............... ...........,... ........ Section 1.2 Form of ~Ol'd~~ '.:.'~!!..................... .......................................,................,...., 3 I .T'1 II Section 1.3 Statut9NI efwtions. ....................... '...................,............,................. ...... 3 II :.,1'. 1.11'11111 .1.1 (I I, II . Article 2. cON~tllliftTI6N AND'fV ALIDITY OF DECLARA nON. ........................4 "I",;l, " I I " ,I , I, I 11"1l ""1I.A-" I' I I Article 3. NALTlt OF CONDQMlNt\.>>:f. ....................................................................... 4 I I"" '1',,1 " 1'1 I ",' )111 I l I I . I I . . Article 4H ,,'I)jt5'CRIPTION'(JIl': I,J\,ND. ...................................................................,......,. 4 : 111.11 1.:"" I I Ii IIIII1 111,1'1 '11'1 I III I I :1 I Art~~le' ;h,'" 'PESCRIP71aNIQ,F.,VNITS; ALLOCATED INTERESTS. ...........................4 S'e~ti~;m.'):l Number a,nJi ldentification of Units........................................................... 4 1 r I I, II..... Secli0ti 5.2 Unit Boundaries... ,............,.. ..... ...............................................,................. 4 Section 5.3 Unit Data. ............ .................. ........ ..... ,.. ................ ................... ................. 4 Section 5.4 Allocated Interests. ..................................................,......."..."..,......,.,....... 5 \ - ) Article 6. COMMON ELEMENTS. ................................................................................. 5 Section 6.1 Description. ......... ,.... ................ ........ ................................ ..... ........ '.... ....." 5 Section 6.2 Use... ...........,... ..... ,.... ........ ....................... ......' ..... ..... ............ ............., .....,. 5 Article 7. LIMITED COMMON ELEMENTS. .............................................................. 5 Section 7.1 Description, ... .................. .............. ............ .............. .................................. 5 Section 7.2 Reallocation. .. ........... ..... ............. ..............., ........ ...... ...................,.. ........... 5 Section 7.3 Use. ... .......................... ........... ...................... ............:.... .................., .......... 6 Article 8. P ARKlNG, '....,....,.. .......... ..,.. ,.. ............. ......................... .............. ..........,........ 6 Article 9. PERMmED USES; MAINTENANCE; CONVEyANCES......................... 7 Section 9.1 Office Units. .............................................................................................. 7 Section 9.2 Garage Unit. ....,.,....."...... ....' ...................... .............. .......... ...................,... 7 Section 9.3 Leases. ............... ......... ............' .......... ...... ..... ......... ............" ........,.... .....,.., 7 Section 9.4 Maintenance of Units, Common Elements, and Limited Common Elements, .... ....... ......... .......... ........... .................. ..... ..... ...............,. ............, 7 Exterior Appearance... ........' , ...... ................. ........,., ............. ...... ................ 8 Effect on Insurance. ...........................,.. ...................................."............... 8 Use or Alteration of Common and Limited Common Elements. ..............8 Signs. ...... ....... ............. ..... ..... ........... ................... ..... ........,....,..,. .........,..,... 9 Offensive Activity. .. ........ ..... ..... ..........,.. ..........., ......., ............. ......." ......... 9 Hazardous Substances. ...... ........ ..............., .................. ..... .... .... .......... ......, 9 Right of First Refusal; Notice Required. ................................................... 9 Conveyancy by Owner; Notice Required. ............................................... 10 Section 9.5 Section 9.6 Section 9.7 Section 9.8 Section 9.9 Section 9.10 Section 9.11 Section 9.12 09/291042:15 PM SE.."-OOCS.ilS034J93 7.v IO.DedarOlioll Bremerton_ Oovcmmc1lt_Ce:ntcr.[ I " . PRCIrrC H~ TfTLE I .II II 200409300447 Page: 3 of 45 as/3fl/2SS4 83'47P OECL $63.89 Kitsap Co, 1JR \ - J Page - I''', Article 10. SPECIAL DECLA D,A ";'}1;'RIYlHTS. ............................................................. 11 ~1 I :y Section 10.1 Declarant Insp,ectiw~' L~~L'.'....... ...... ................ ........................... ................. 11 S . 102 T fi " " 1 ",,,I 11 ectlon . rans er....f.",J...J,.! (.'r......... ........... ............ ....................... ............. ..... ....... , I' , << ,II ','I" ~, ..'I.'lh Article 11. ENTRY Fc;l If'!EJP~KS OR MAINTENANCE........................................... 11 Ill:" 1.11'11111 ,I I 11 II I, Article 12. OW?li~~S' rASSOCIA TI9~ ..........................~............................. ............. ...... 12 Section 12.1 'f0:nn' of:Associatip!R..! ..l.......................... ..............................,............. ...... 12 Section 12,2'" avl~ws.' ........... ,,!:!i;',~'.\,..'}..,........ ........ ..... ........... ............. ..............,....... ...... 12 ". ,. I I I L I I Sect~on I Lf'~lll~i1aUficatio~, ~q~1 rr;r~n~fer. ............................, ................,.... ,............ ....... 12 SectlM '~~!"""fi ,dwers offlie f\9s,tX;~atIon. ...................................................................... 12 Seclli.nn ~ .5': Financia,J, IstJteh,~llt'S and Records. ....................................... ................... 14 r."O;~...'1 ., III ,.1 I I Ilir. . ~tiQn,tfI6 Inspeclllj)1'1 rfG::o dominium Documents, Books, and Records............... 14 " " 'I I I I I I ' I. I.. I III .'1 I , I Article '1'3. THE BOARD! '........ ....................' ......,.... ......... ........., ........................... ......... 15 Section 13.1 Selection of the Board and Officers. ....................................................... 15 Section 13,2 Powers of the Board. ............................................................................... 15 Section 13.3 Managing Agent. .....................................................,.................,............. 15 Section 13.4 Limitations on Board Authority. ............................................................. 15 Section 13.5 Right to Notice and Opportunity to Be Heard......................................... 15 Section 13.6 Right of Owners to Overrule Board. ....................................................... 15 Article 14. BUDGET AND ASSESSMENTS, ............................................................... 16 Section 14.1 Fiscal Year. ......... ........ .................................................. ............ ....... ........ 16 Section 14.2 Preparation of Budget. ............................................................................. 16 Section 14,3 Ratification of Budget. ............................................................................ 16 Section 14.4 Supplemental Budget............ .......... ......... .............. ....... ............. .............. 16 Section 14,5 Common Expenses. .........,.......,..............................,..........,...................... 16 Section 14.6 Specially Allocated Expenses.................................................................. 17 Section 14.7 Special Assessments. ............................................................................... 18 Section 14,8 Creation of Reserves; Assessments. ........................................................ 18 Section 14.9 Notice of Assessments............................................................................. 18 Section 14.10 Payment of Monthly Assessments........................................................... 18 Section 14.11 Proceeds Belong to Association. ............................................................. 18 Section 14.12 Failure to Assess... ................................................ ,...................... ............ 18 Section 14.13 Reconciliation of Assessments to Actual Expenses ................................ 18 Section 14.14 Certificate of Unpaid Assessments. ......................................................... 19 Section 14.15 Recalculation of Assessments. ................................................................ 19 Article 15. LIEN AND COLLECTION OF ASSESSMENTS. ...................................... 19 Section 15.1 Assessments Are a Lien; Priority. ........................................................... 19 Section 15.2 Lien May be Foreclosed; Judicial Foreclosure........................................ 20 Section 15.3 Nonjudicial Foreclosure. .............,'........................................................... 20 09129/04 2: 1 S PM S03439l7,O'l - ii - I " PAClrIC NU TITLE -, I . -", -. ._-, 200409300447 Page: 4 of 45 . 89/38/2884 83:47P OECL $B3.S8 Kitsap Co, ~A Page 1111, R . D' :(;", 'I " ecelver unng !ctorel= os'lt.e.... ........... ............ ,.. ........ ....,..... ..... ,.,'... ....... 20 IIII r Assessments Are. P,~~n~11 Obligation. .................... ,.............................., 20 Extinguishtn~nt'Q'p)4e~ and Personal Liability....................................... 21 Joint and ~~~br.t:liHibility. ................................,.................. ............. ...... 21 Late GharJre's,antl Interest on Delinquent Assessments. .......................... 2] I I I Kf1t I' Section 15,9 Re9PYe~r'?r,.Attorney Fees and Costs. .............................................,...... 21 Section 15.1 0 ~eqiuj'iY, Deposit. .....! ~I........ ............... ......... ................. ............................ 21 Section 15.11'ae:medi~~ Cumul8ttivb.lr.......................................................................... 21 JIP111111 " 11..:110111 '. ", 1.1, ., II I I II I Article 16.i",::pN.FORCEME~r.:o.'PJ'>ECtARATION, BYLAWS. AND RULES AND ,",,: 'I ~ttJJLA TIOX~ ,.'.'J:J,. ~ ',. ..... ........... ..... ............. ,.... ............. ..... .......... .....,.. ,... 22 I I. . . I 1.1 Sec~\~ II~J ~" Rights qf. ~~'I'"'''' ............ .................. ...... ....... ............... ...... .............. 22 Sectton.:I'bI2 FailUrd'Qf~~ar(!hO Insist on Strict Perfonnance No Waiver. ................. 22 I. " I I I " '..' I I, ",., I. r'fIl II .1 Article 'h. TORT AND 00NTRACT LIABILITY. ....................................................... 22 Section 17.1 Association Liability. .............................................................................. 22 Section 17.2 Limitation of Liability for Utility Failure, etc. ........................................22 Section 17.3 No Personal Liability, .................... ................................................. ......... 22 Section 15.4 Section 15.5 Section 15.6 Section 15.7 Section 15.8 Article 18, INDEMNIFICATION. ........... ..,.........,..............................,..........,................ 23 \ - ) Article 19. INSURANCE. ............................................................... ................................ 23 Section 19.1 General Requirements. ............................... ............................................. 23 Section 19.2 Property Insurance; Deductible. .................................,............................23 Section 19.3 Commercial General Liability Insurance. ............................................... 24 Section 19.4 Insurance Trustee; Power of Attorney...................................................., 24 Section 19.5 . Additional Policy Provisions................................................................... 24 Section 19.6 Fidelity Insurance. ................. ....,.....,.....................................,........ .....,... 25 Section 19.7 Owners' Individual Insurance. ................................................................. 26 Section 19.8 Use of Insurance Proceeds,...................................................................... 26 Article 20, DAMAGE AND REPAIR OR DAMAGE TO PROPERTy........................ 26 Section 20.1 Initial Board Detennination............................,...........,............................ 26 Section 20.2 Notice of Damage. ...,........".., .................,.......................................,........ 27 Section 20.3 Definitions: Damage. Substantial Damage. Repair, Emergency Work. .... ...........,........ ..... ....................... ........... .............. ....."... ................ 27 Section 20.4 Execution of Repairs, ...........,....,........................................,................".. 28 Section 20.5 Damage Not Substantial. ......................................................................... 28 Sectio'n 20.6 Substantial Damage. ...................,.......................................................,..., 28 Section 20,7 Effect of Decision Not to Repair. ............................................................ 29 Article 21. CONDEMNATION. ..................................................................................... 29 Section 21.1 Consequences of Condemnation: Notices. ..............................................29 09/29/04 2:tS PM lD3439)709 . J .': J ,-~-... 1 ~ II. t PRClrlC ~ TITLE DECL $63.88 200409300447 Page: 5 of 45 6~/36/28S4 83:47P Kl tsClp Co, UA \ - ./ Page . )111, Power of Attorn~. .'~!,:!ll !::l. ..........................,.. .....,.. ............. ..... ..,........... 30 . Il~ I ,I Condemnatiop, of ~ 1~1Ull'....... ....... ........ ........... .....,....,. .............. ..... ....,..., 30 ~~~~:::~:~g'~~:r~:n ~~~~~~~.~~i~it~d.C~~~~~.....,....~.,... ,.... 30 I I 1I'f II Elemefl~.'lll,,! :..l..L................"..,........"...................,........,....,..................... 30 .h I I I IJ ,I . Section 21.6 RecP,tstfN,C'b\(jt1 and Repalf. ..................................................................... 31 11:1,.11.1 IIIII ,II . I l:.t I I Article 22. EAS~M;~NtS.. ......... ,JII.l..I...,... ..... ............................. ..., .............,...' ............. 31 S 11. 22 11"" I,I"! I 1 ",;"," II 31 ec . on II~., ,~1') I "r'l..:pera . ,.......'.~I'.tj' ..I'i;:'...' .......... .......... ................, .............. .............,... Section f~-JL-' nnbnJachment&:'1 .J..,................................., ................................................ 31 . SectiQn,~~:.1:,::~ement ~"~i~C~1'Y Reserved by the Declarant. .................................31 Sectfdn,~:: Utility;as e,';tsf G'ranted by the Declarant. .......................................... 31 I I ~,l I h T'~'-l . Se~tlQrtl,L'~.15 EmergtI\(;'yl~asement for Garage Umt. ................................................... 32 " " " I I I' I '. III I III . I. .J II I ArtIcle 2,S; PROCEDURES FOR SUBDIVIDING OR ALTERING UNITS................. 32 Section 23.1 Subdivision of Units. .. ............. .......,.. ..... ...... ........ ..................... ..........,... 32 Section 23.2 Minor Alterations; Hard Surface Flooring ..............................................32 Section 23.3 Adjoining Units ..............................,.......;.................................,.............. 32 Section 23.4 Substantial Alteration ...,....,......................................................,..............33 Section 23.5 Procedure After Approval....................................................................... 33 Section 23.6 Relocation of Boundaries -- Adjoining Units.......................................... 33 Section 21.2 Section 21.3 Section 21.4 Section 21.5 Article 24. AMENDMENT OF DECLARATION SURVEY MAP AND PLANS, ARTICLES, OR BYLAWS ................... ................................................. ,...... 33 Article 25. TERMINATION OF CONDOMINIUM. ..................................................... 34 Section 25.1 Action Required..........................................................;....,.............. ......... 34 Section 25.2 Condominium Act Governs..................................................................... 34 Article 26. NOTICES. ........ ..... ..........,..... ..... ................ .........:... .............. ........... ...........,. 35 Section 26.1 Form and Delivery of Notice. .................................................................. 35 Section 26.2 Notices to Eligible Mortgagees. .............................................................. 35 Article 27, SEVERABILITY, ................,....,..................................,.. ...,......, ....... '....,...... 35 Article 28. EFFECTIVE DATE. ....,............................................................,......,.....'...... 36 Article 29. REFERENCE TO SURVEY MAP AND PLANS. .......................................36 Article 30, ASSIGNMENT BY DECLARANT.............................................................. 36 SCHEDULE A SCHEDULE B SCHEDULE C Description of Land Unit Data; Allocated Interests Limited Common Elements - iv- 09/29/04 2: I S PM 50343931.09 I II PACIFIC N~ TITLE .1 I 200409300447 Pilg~: 6 of 45 99/38/2994 83:47P DECL SS3.98 Kitsap Co, WA II . Condominiwn Act means the Washington Condominium Act, codified at RCW 64.34, as it may be from time tp ~ime amended. III 1,.1'111111 ' , I '. I II Convevance m~~ I~}' :trE1hsfer of the ownership of a Unit, including a transfer by deed or by real estate con,~(ji~ I 'I "",,1 , I'" I I 1111 II III1 I .,'1'11 Meetin , er~ means the room on the first Office Level so designated on the Survey Map and PlanS"v.,rhic "mom shall be an Office Limited Common Element. 11'11 11,1 11)11 II II : 'I I, " Dec1atahtl:lmeans Wit!aq County Consolidated Housing Authority and its successors and.' a~~I!p.'S1 ,," ,;; """ 1'1 I I ' 1'1' I' 1'1 I ',I ", I I I . I I I .1 0111 ,,11,.11 ...'b..: :""::10":: eo aration ~pill"f~S Condominium Declaration for Bremerton Govenunent Centerl'~'f,()~q~ininium,,~,itl~~ tdm time to time be amended. . ':"" '"......,1 I I"~" ,,' . "'1::,:1,,' D~c~aredl,~ ~ means the value of each Unit, as stated in Schedule B, which does not hecessanly reflect Wlark.et value and will not be affected by the actual sales prices. Eligible Mortgagee means the Mortgagee that has filed with the secretary of the Association a written request that it be given copies of notices of any action by the Association that requires the consent of Mortgagees. \ , - / Foreclosure means a forfeiture or judicial Of nonjudicial foreclosure of a mortgage or a deed in lieu thereof. Garal!e Levels means all portions of the Building below the lower surface of the slab located between the first or plaza level and parking level PI, except the loading dock. Garage Unit means the Unit with that designation in Schedule B and as shown as parking level P2 on the Survey Map and Plans. Identifying; Number means the number or other designation of each Unit, as listed in Schedule B and shown on the Survey Map and Plans. Limited Common Elements means the portion of the Common Elements described in Schedule B which are allocated for the exclusive use of one or more but fewer than all of the Units, Managing Agent means the person designated by the Board under Section 13.3, Meetml! Chambers means the room on the first Office Level so designated on the Survey Map and Plans, which room shall be an Office Limited Common Element. Mortgage means a mortgage, deed of trust, or real estate contract. 09/29/04 2:15 PM SEADOCs..#S0343931~vlo..Dcd.ralion_BremertQn_ GoverlUlWn, Ceuttt. Do<. .,. ..1 II "'III I r PACIfIC Nil TITLE OECL .t63.SS . 200409300447 Page: 7 of 45 89/3SI2SB4 B3:4?P KHsap Co, IJR Article I. DEFINITIONS. 1'\ Section 1.1 Words DefiQed:',<For the purposes of this Declaration and any amendments hereto, the foUo'tling ij~rtrlltlbns shall apply, " I. I 1,11,1 . ,II, '0, I, II '( Allocated 'tet~ ,'ljieans the allocation of Common Expense Liability, interest in Common Elements Eth .,votlng"for each of the Units in the Condominium determined in accordance with the fd~~~tltorth in Section 5.4 and as specified in Schedule B. 1\1,. 11,1 111,1 , I ' 1 I ,I I ~~lh~l~ns the A.l'tibJ(~~ of Incorporation for the Association. 111'111-11 II. 110.;11'111 I, OI, I, I I II I II I, I i" I \ I ~~sessinents w.~qrtfl :all s~ms chargeable by the Association against a Unit, including_,v"lthout.,1imitatio~: I' ,~j:g~Ileral and special Assessments for Common Expenses and Speci~U:y" Ad~,~~ted Expt;nSl:js; .(~b 4hlirges, and fines imposed by the Association: (c) interest and latc:b4ar~s ~ any de1HiqUe~t aoobunt; and (d) costs of collection, including reasonable attorney fees:",~oi#ed by the A's~odi~on in cOlUlection with the collection of a delinquent Owner's ttl' I III accoun . Association'means the owners association identified in Article 12, Board means the board of directors of the Association, as described in Article 13. " \ - , / Bonds means the bonds issued by the Declarant in cormection with the construction of all portions of the Condominium other than the Garage Unit and its Limited Common Elements, the interest on which is intended to be exempt from taxation for Federal income tax. purposes.. Building means the building known as Bremerton Government Center located on the Condominium property and shown on the Survey Map and Plans. amended. Bylaws means the bylaws of the Association as they may from time to time be Common Elements means all portions ofthe Condominium other than Units. Common Expenses means expenditures made by or financial liabilities of the Association which are allocated in this Declaration to all Units in accordance with their Common Expense Liability, Common Expense Liability means the liability for Common Expenses allocated to each Unit, as set forth in Schedule B. Condominium means Bremerton Government Center, a condominium, created by Declarant under the Declaration and the Survey Map and Plans, 09/29/04 2:15 PM SE..\()()('S.it503439l7.vlQ.OccllU'11l0n BremuloR.Oo\'emmcn1 ('cnter.DOC " 200409300447 Pilge' 8 of 45 99/36/2984 93:47P Ki tsap Co, lJl I . . . PACIFIC HU TITLE DECL ~H8 Mortl!al!ee means any holder, insurer, or guarantor of a mortgage on a Unit. 1'\ . Notice and OoPo~tl('w'~e Heard means the procedure described in Section 13 5 .., I. III,',. ,I . , II, ' ':1 ',,' I, I, I 11101 . Office Lev i~:~~~~'~a) all portions of the Building the Common Elements of the Condominium abo\\~ 't ~ 'lpwe~ surface of the concrete slab between the first or plaza level of the Building and ,Old ~l?b~r 'garage level, excluding improvements within the Office Units. , I,: I f I and (b) the loading'dQcl\l 'I' ,,'I " ,',', " I I . " I,.. I I. I ,10'11 1"()fflG~'ld~ited G~~4)H"Elements means .the Limited Common Elements allocated tp, At~ Offic~ Units jo~t1y" s described in Schedule C and shown on the Survey Map dPl II 1.1, IIII I ,.01,1',,11 I; an aI)..S'1I11 1"111111 1 1 I II" I, II I I " III'" 11,1..111'11111 .111.1 1111 . "'" ',,'" :",'1 Office Uut 'tIlC3lli1S' a Unit with that designation in Schedule B and as shown on the Sutv,~y'IMap and Plarll\: '"I ,I rl;:II" I III Owner or Unit Owner means the Declarant or other person who owns a Unit, but does not include any person who has an interest in a Unit solely as security for an obligation. Person means a natural person, corporation, partnership, limited partnership, limited liability company, trust, governmental subdivision or agency, or other legal entity, - , .) Special Declarant Rights means rights reserved for the benefit ofthe Declarant as specified in Article 10. . SDeciallv Allocated Expenses means certain expenditures or liabilities of the Association which are specially allocated among Units pursuant to Section 14.6. Survey Map and Plans means the survey map and plans filed simultaneously with the recording of this Declaration and any amendments, corrections, and addenda thereto subsequently filed. Unit means a physical portion of the Condominiutn designated for separate ownership, the boundaries of which are described in Section 5,2 and shown on the Survey Map and Plans. Section ).2 Form of Words. The singular form of words shall include the plural and the plural shall include the singular. Masculine, feminine, and gender-neutral pronouns shall be used interchangeably, Section 1.3 Statutorv Definitions. Some of the tenus defined above are also defined in the Condominium Act. The definitions in the Declaration are not intended to limit or contradict the definitions in the Condominium Act. If there is any inconsistency or conflict, the definition in the Condominium Act will prevail. 091291042; IS PM -3- SEAOOCS..#5034]c):\7-vIO.Dc:c:l:mnion.,8n!mlrll\n_ Government ('enltit .mx' PACIFIC ~ TITLE r 1\ r- OECL S63, Be 200409300447 Page: 9 of 45 89138/2884 83:47P Kitsap Co. ~A " '\ 1'1 I 1'\ Article 2. CONSTRUCT.IQ:N'~~ V ALInITY OF DECLARATION. " 11'1111 I II 11 I 111 'd' ~h~ D~laration ~Fl:1ti,e,:~gtldominiwn Act provid~ the framework b~ ~hich the CondommlUffi IS created:uPd'dp.~~~i!ti. In the event ofa conflict between the proVISIOns of the Declaration and the CQItllqq{inilun Act, the Condominium Act shall prevail. In the event of a conflict between the JM:dV,is,iO<<s' .of this Declaration and the Bylaws, the Declaration shall prevail except to the extept'~' 'b,'eclaktion is.'~~consistent with the Condominium Act. The creation of the Condominiurl} 'sh::all,prot be iml!Yd~ and title to a Unit and its interest in the Common Elements sh~ll'n~~:h>.hendered lfnipnrbtf!-~le or otherwise affected by reason of an insignificant failure ofthi~ID~claraflon, theJ?~~Y Map and Plans. or any amendment thereto to comply with th C d ~,~LI.~I ~ t ,"',', " e on Qmlul,..,...,.,,t\.c. I I" ',', " hll II I II II IIII . I I I. 11'11111 ,'11,1 III' I I I I I I 1:111111,11111111 1 )111 ,111111 \>\'t;tlcle 3. NAM~dF.lcONDOMlNIUM. 1111 III The name of the Condominium created by this Declaration and the Survey Map and Plans is Bremerton Government Center. a condominium. . Article 4. DESCRIPTION OF LAND. , - / The real property included in the Condominium and submitted to the Condominium Act is described in Schedule A. Article 5, DESCRIPTION OF UNITS: ALLOCATED INTERESTS. Section 5.1 Number and Identification of Units. The Condominium has seven Office Units and one Garage Unit. The Identifying Number of each Unit is set forth in Schedule B and shown on the Survey Map .and Plans. Section 5.2 Unit Boundaries. The boundaries of the Units are the interior surfaces of the unfinished perimeter walls, floors, and ceilings of the Units, including tiles, paint, wallpaper, and any other materials constituting any part of the finished surfaces thereof. All spaces, interior partitions, and other fixtures and improvements within the boundaries of a Unit are a part of the Unit; provided. that the Unit boundaries shall not include those Common Elements specified in Article 6. Section 5.3 Unit Data. The Units are all restricted to nonresidential uses. Accordingly, the number of bedrooms, bathrooms and fireplaces in each Unit is not applicable and not required. The approximate area and the level or levels upon which each Unit is located is set forth in Schedule B. The location and configuration of each Unit are shown in the Survey Map and Plans, 09/29/04 2: 15 PM SEADOCS-~S0343937-vlO-Dcc:1ar.tio. Bn:metton .Gov__C..'",.D .4. I. I I PACIfIC H~ TITLE . . II OECL t63 . SS 200409300447 Page: is or 45 88/38/2884 S3:4?P Kitsilp Co, ~A \ J Section 5.4 Allocated Int~fjsts. Schedule B sets forth the Allocated Interests of each of the Units in the Condomi,m~\lin,'wr'purposes of Common Expense Liability, interest in the Common Elements, andllydtiQ~'orlgl1ts in the Association. The allocations shall be determined in accordance ",,:ittj.ot~'fol1b~ng formulas: , I I Ll1 III I. IIII I ..'11,1 5.4.1 1,:\\,sI'betWeen the Office Units as a group and the Garage Unit, the formula is the relativ.e:D,~Jat,et1"Values of the Units with $19,237,714 being the Declared Value of the Office Units. ~ 'a ~otitl'lU1d $1 ,44~,OOO being the Declared Value ofthe Garage Unit. .1 I ,I, It I I. III1I 1111 1111," I 1<'S:,A.,2'1 I As amoiig'lh~\)ffice Units, the formula is the relative areas of the I I " 'I'l' I' 1'1 I '" II, I I I '1 I I II III. Iltl I 11,"11'1.1. .; 11111111 1.111111' I II, II" I. III, .'1 II ll~'" -I I II Iplllll ,111.1 1111 "'" '..A1rtic(e 6, COMMOfEh MENTS. 111.111.:1 I I. IIII I II .1 I. I 'Section 6.1 . Desctiotion. The Common Elements are all portions of the Condominium, other than the Units, including all portions of the walls, floors, or ceilings which are not a part of or within the Unit boundaries provided in Section 5.2. The Common Elements also include. any chute, flue, duct, wire, conduit, bearing wall, bearing column, or any other fixture which lies partially within and partially outside the designated boundaries of a Unit which serves more than one Unit or any .portion of a Common Element. Specifically, and without limiting the generality of the foregoing, the internal pillars and elevator shafts shall not be part ofthe Garage Unit. Units. Section 6.2 Use. Each Owner shall have the right to use the Common Elements, but not the Limited Common Elements, in common with all other Owners and a right of access from the Owner's Unit across the Common Elements to the public streets. The right to use the Common Elements extends not only to each Owner, but also to its employees, agents, tenants, invitees, and licensees. The right to use' the Common Elements, including the Limited Common Elements, shall be governed by the provisions of the Condominium Act, this Declaration, the Bylaws, and the rules and regulations of the Association. Article 7. LIMITED COMMON ELEMENTS. Section 7.1 Description.. The Limited Common Elements allocated to Units are listed on Schedule C and are shown on the Survey Map and Plans. Section 7,2 Reallocation. A Limited Common Element may be reallocated between Units only with the approval of the Board and by an amendment to the Declaration executed by the Owners of the Units to which the Limited Common Element was and will be allocated. The Board shall approve the request of the Owner or Owners under this Section within 30 days, or within such other period provided by the Declaration, unless the proposed reallocation does not comply with the Condominium Act or the Declaration. The failure of 09129/04 2:15 PM -5- SEADO("s.~50J439J 7.. I lJo.Ooclualion a.......(1._ Goyemmen'_C'..'tr OUl' "]\1- :. PACIFIC H~ TITLE L' I I DECL ~3. SS 200409300447Page: 11 or 45 88/38/2884 83:47P KitSCIp Co. ~R the Board to act upon a request within such period shall be deemed approval thereof, The amendment shall be recorded in I (I]a,e names of the parties and of the Condominium. A Common Element may be reallQ(j~tod'as,l$ Limited Common Element, or a Limited Common Element may be incorporate~ i~t~:~h:)t~dsting Unit with the approval of 67% of the Owners, including the Owner of the mJlit 'to, -M\ich the Limited Common Element Will be allocated or incorporated, provided, ~'~e:Y:T~~:!hkt in the event such reallocation or incorporation impacts the Owner of the Gat1\~t1 PnjJI Qr the Owner's use of the Garage Unit, then the Owner of the Garage Unit must C,\lqs~Q~:ll,1'w'riting to such reallocation or incorporation. Such reallocation or incorporation ~"all'~. reflected ill'lan amendment to the Declaration and the Survey Map d PI S " ,', I, " I I an an. " .,,11 ',,1 I""" "'1,1,..1 I 1"1;"'" II II II' I, I I II II Se~tip~''1\31'"'' Use. Ell9hlQwner to which a Umited Common Element is allocated shall ha,ye"ih~,'tl~t to use ,t i~'14ip;.i,ted Common Elements allocated to the Owner's Unit in co~ "w'llh.': the OWD,'l1I,( f'~lI\Y"other Unit to which the Limited Common Element is assi~\!d~:',$e'right tOI~e'~e:'Limited Common Element extends to the Owner's employees, ag~n~,,:~eI:.a'nt, invitees,I~<llibensees. 11111111 II III I Article 8. PARKING. , --, The Condominium has two parking levels. The lower parking level (Parking Level P2), containing 83 covered parking spaces, is the Garage Unit The upper parking level (Parking Level PI), containing 82 covered parking spaces, is an Office Limited Common Element and is restricted to use by the OwnerS and tenants of the Office Units and their employees and agents on a parking pennit basis, as described below, In addition to the garage parking levels, there are four outside parking areas: one containing a ramp/entrance and six uncovered parking spaces on the west side of the Building, which are designated as Limited Common Elements of the Garage Unit; one containing $even uncovered parking spaces for disabled parking to the north of the Building; one containing nine open parking spaces on the south side of the Building for building maintenance and deliveries; and one containing 22 uncovered parking spaces on the east side of the Building. All uncovered parking spaces, except those on the west side allocated to the Garage Unit, are Office Limited Common Elements. Use of the Office Limited Common Element parking spaces will be subject to rules and regulations of the Board, as implemented by the Managing Agent. It is expected that use of the Office Parking Level by the Office Units will be by access card and require a parking pennit issued by the Managing Agent. Under policies adopted by the Board, the Managing Agent may designate some uncovered parking spaces for use by certain Unit Owners and their invitees. The number of parking permits for the Office Parking Level will be determined from time to time by the Board and allocated among the Office Units in proportion to their Allocated Interests, provided that any uncovered parking spaces designated for use by a Unit Owner and their invitees will be counted against that Unit's allocable share of parking pennits issued for parking in the Parking Level Pl. Except as provided by rules and regulations of the Board, use of the Parking' Level PI shail be restricted to those persons holding parking pennits on a first come, first'serve basis. The Board may (a) designate certain spaces for the exclusive use by an employee or invitee of the Association or an Office Unit, (b) limit the number of and/or designate certain parking spaces 09/29/04 2: 1 S PM -6- SEA()()('!\-IlSO]4J9J7-. IIl-Uc.bu'a'io. .9....."0"_ Go\'Cmme.. - C:'.'er.DOC: I J II PACIfIC NU TITLE I I' 0CCl. ~3. 88 200409300447 Page: 12 ot 45 8S/3&12SG4 83'47P Kitsap Co, UfI that may be used by employees of the Owners or tenants of the Units, (c) require certain parking spaces be kept available for the publi~'"ndlqr (d) rent parking spaces to the Owners, their tenants or the public. Policies concerqii1g"th~lIli~e of the parking spaces in the Garage Unit and Limited Common Element o!1tsid~:Ip'atld'ng area shall be established by the Owner of the Garage Unit. No use ofthlf..G~81~~ qmt by the Owners or tenants of the Office Units or their guests, employees, invitee~ ~~ ,nterli~ers or the general public shall be permitted except upon the express written co~bht!p'f,thd Owner of the Garage Unit. II: I. 1.11'11111 III IIIII III .11 II I. I ,I II' II . ,I.: II II 'L ArtiCl~,?.:::,r~RMmED l!.~~~:I~ENANCE: CONVEYANCES. I II II I ,. J II I I I" ".,1 1'1" L ",I Ser~l?p'I~} I, I Office,U~~u.,!'lhe Office Units are intended for aild restricted to office, governmml~1l.ll':Ij1ubhc heal~ r'-~ :t~ated uses, coffee shop, and such other uses as may be pe~itte~.,~q.d~r applic~~~~'IG:,~iY.lordinances and regulatjons and approved by the Board, Not~it~hinqing the fote~oiJi~,1 tHere shall be no use of an Office Unit that would violate any ofthc1covenants of the Booij$ or cause the Bonds to become taxable fOT Federal income tax 111111 I III purposes. Section 9.2 Garage Unit. The Garage Unit is intended for and restricted to use as a parking garage and related uses and such other uses as may be permitted under applicable City ordinances and regulations and approved by the Board. \ - .I Section 9.3 Leases, Any lease or rental agreement must provide that its terms shall be subject in all respects to the provisions of the Declaration, the Bylaws, and rules and regulations of the Association and that any failure by the tenant to comply with the terms of such documents, rules, and regulations shall be a default under the lease or rental agreement. If any lease under this Section does not contain the foregoing provisions, such provisions shall nevertheless be deemed to be part of the lease and binding upon the Owner and the tenant by reason of their being stated in this Declaration. All leases and rental agreements, with the exception of leases or rental agreements in connection with the Garage Unit, shall be in writing and delivered to the Association before the tenancy commences, Section 9.4 Maintenance of Units. Common Elements, and Limited Common Elements. . Except as provided below, the Association is responsible for maintenance, repair, and replacement of the Common Elements and the Limited Common Elements, and each Owner is responsible for maintenance, repair, and replacement of the improvements within the Owner's Unit. Each Owner shall, at the Owner's sole expense, keep the interior of the Unit and its equipment, appliances, and appurtenances in a clean and sanitary condition, free of rodents and pests, and in good order, condition, and repair and shall do all redecorating and painting at any time necessary to maintain the good appearance and condition of the Unit. The Association shall be responsible for the operation, maintenance, repair and replacement of the Common. Elements within the Office Levels and Garage Levels of the Building, including the Office Limited Common Elements, and the exterior groundS and improvements in the Condominium, except the Limited Common Element driveway and parking spaces allocated to the Garage Unit. The Association sh~l1 be responsible for repair and replacement 09/29/04 2:15 PM ~ 7- SF.AOO('S.P.S()34)9J1-vlD-l)~I~ratiaq. Brnncrton Govmnncnl CC:nlCT.l>C I II .. . I, 200409300447 Pflge: 13 of 45 89/38/2884 83:47P Kitsap Co, UA PACIFIC HU TITLE or:CL tS3.ge \ ....., of the balcony included within Unit 6 and the Owner of Unit 6 shall be responsible for keeping the balcony in good order ~4 in 'a clean and sanitary condition. Costs relating to the Office Levels and exterior gr~JII~'Ia.n~~ improvements (other than Garage Unit Limited Common Elements and walk)v.a~ b~"tH~'eastern and northern sides of the Building) shall be specially' allocated to the gftJi\1:~"V~il;tpursuant to Section 14,6. Costs relating to the Garage Levels and the walkway ~n; ,th~, e~~tern and northern sides of the Building shall be specially allocated to all Unit O~~$pursuant to Section 14.6. The Owner of the Garage Unit shall be responsible for the ,~nefatip:n;'fuaintenance, repair and replacement of the Limited Common Elements allocat<rd::fb,~~ 01irage Unit and for security, maintenance and utilities relating to the Unit and itd:"iirljteli.:Commoo,'E1brlJ,ents. The Association shall. be responsible for repair or replacemertt:~fi,~~s in the v,.ri~~\ts,~ exterior doors of the Units and allocate the cost to the Own;r"Q1\tHe ttnit. T,M. ~s~ociation shall be responsible for washing the exterior window.so,b,f.'tl}~::Building, 'ipe:'~Q~', of which shall be allocated to the Office Units as a Speci~~'~,t4-:~98-te.d EXl;'m$~ p,~uimt to Section 14.6. Each Ow~er sha~l.be responsible for the.:oper.atiop, maJ.ntenlmee1,~epa)r, or replacement of any plumbmg, wmng, water heaters, fans',I,~'eaHhg/cooling eq'lip1h~nt or other equipment or appliances which serve only that Unit, wheth~'t'br not located in 'tHe Unit. The Association may, as a Common Expense, provide for the inspection of any portion of a Unit of Limited Common Element, the failure of which to maintain properly may cause damage to the Common Elements, Limited Common Elements, or another Unit or cause unnecessary Common Expenses. If the inspection discloses the need for repair or replacement, the Association may either require the responsible Owner to make the repair or replacement, or make the repair or replacement itself and allocate the cost thereof to the OWner. Section 9.5 Exterior Aooearance, In order to preserve a uniform exterior appearance of the Building, the Association shall provide for the maintenance of the exterior of the Building. No Owner may modify or decorate the. exterior of the Building or the window coverings, screens, doors, awnings, or other portions of any Unit visible from outside the Unit without the prior written consent of the Board or in accordance with rules or regulations of the Association. No solar panels, radio or television antennas or other appliances may be installed on the exterior of the Building without the prior written consent of the Board. Section 9.6 Effect on Insurance. Nothing shall be done or kept in any Unit or in any Common Element that will increase the rate of insurance on the property without the prior written consent of the Board. Nothing shall be done or kept in' any Unit or in any Common Element that will result in the cancellation of insurance on any part of the property, or that would be in violation of any laws. Section 9.7 Use or Alteration of Common and Limited Common Elements. Use of the Common Elements and Limited Common Elements shall be subject to the provisions of this Declaration and the rules and regulations of the Board; provided that no rule or regulation shall be adopted nor shall any provision of the Declaration be amended which would alter or interfere with use of the Garage Unit, or any Common or Limited Common Element serving the Garage Unit, by the Owner of the Garage Unit or any tenant, customer or other invitee of 09/29/042:15 PM -R- S5AD<K'S.#50l4J937.vlCl-Dcdar4lioll..BrclllCnon_<lo''''rnmcnl_Ccnlcr,1lO(' I II I: I 200409300447 Page: 14 of 4S 89/38/2884 83:4?P K i \sap Co, lil I . PACIrIC H~ TITLE DECl . tSHl8 the Owner. Nothing shall be altered or constructed in or removed from any Common Element or Limited Common Element excegt'1,lpon the prior written consent of the Board. 111 1111'11111, I I. I .1 Section 9.8 ~. ~d,sl~'~~'lmy kind shall be displayed to the public view on any Common Element or Limi1~~rCo,~oA Element or on any exterior window or door of a Unit without the written conse,t oOt ~tt: ~oard, which consent may not be unreasonably withheld, or in accordance with sighllq~~~ criteria established by the Board; provided, however, the Owner of the Garag~::p'D,lt::may have signage on the door to the Garage Unit and for the Limited CommofJ"~lqih~nf,drivewaY",nd parking spaces allocated to that Unit and there are no restrictions oQ'fup gi~ge wrn.€'h!ni~y be used within the Unit (other than signage on the exterior windo:WS:br ,,\oors of the '{jrij'it&). ". II I I ", ','I' I: ':1 I '" 1 ,I I, II I' . . ,s~~d~,~:~1 Offe "i~~:r <it'vit . No nox.ious or offensive activity shall ~e carried on 10 any':IJ,m1",ltim1ted C~ qnl ~Iement, or Common Element, nor shall anythmg be done thf:rttjD ,ih~t,lp.ay be or Ib~~t'l an annoyance or nuisance to other Owners. None of the uses pe~.i'tb~lI.llJ.ereunder slh.tlllnpw or hereafter be deemed an annoyance or nuisance to other .."i. I I Owner!l:' "' \ - ) Section 9.10 Hazardous Substances. The Owner of each Unit shall not permit any Hazardous Substance to be generated, processed, stored, transported, handled, or disposed of on, under, in, or through the Owner's Unit or the Property ex.cept in accordance with all applicable laws, ordinances, regulations, rulings, and orders of all authorities having jurisdiction thereof; and each Owner shall indemnify, defend, and hold hannless the other Owner or Owners and the Association from all fines, suits, procedures, claims, and actions of any kind arising out of or in any way connected with any spills or discharges of Hazardous Substances or wastes arising from the operation or use of the Unit or the Property by the Owner, tenants, or invitees of the Unit. As used herein, the term "Hazardous Substance" means any hazardous, toxic, or dangerous substance, waste, or material which is or becomes regulated under any federal, state, or local statute, ordinance, rule, regulation, or other Jaw now or hereafter in effect pertaining to environmental protection, contamination, or cleanup, including without limitation any substance, waste, or material whtch now or hereafter is designated as a "Hazardous Substance" under the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. S 9601 et seq.), or under any local or state rule or regulation. Without limiting the foregoing,. Hazardous Substances shall include, but not be limited to, any substance' which after being released into the environment and upoIi exposure, ingestion, inhalation, or assimilation, either directly from the environment or indirectly by ingestion through food chains, will or may reasonably be anticipated to cause death, disease, behavior abnormalities, cancer, and/or genetic abnormalities. Section 9.11 , Right of First Refusal; Notice Reauired. The right of an Owner of an Office Unit to sell the Owner's Office Unit shall be subject to a right of first refusal by the Owners of the other Office Units (the "Other Owners"), as follows. An Owner desiring to sell an Office Unit (the "Offering Owner") shall deliver a written notice to the Other Owners advising of the Offering Owner's intention to sell the Office Unit and stating the asking price, which notice shall constitute an offer to sell the Office Unit at the stated asking price to the 09/29/04 2:15PM -Q- SEADOCS.~503439.\ J., 10.0.01"""'0.. B..mcnon. Gov.m...... _ (".nter.DOC I I I . I' r I PRClrrc N~ TITLE [)[Cl 200409300447 PagE': 15 of 45 89/38/26e4 83:47P Kitsap Co, UA $63.88 Other Owners. The Owner of the Office Unit adjacent to the Office Unit being offered for sale ("Adjacent Owner") shall havelBO days in which to accept the offer or to make a counter- offer, If the Adjacent Owner aclJCpt!l: th~' ~ffer or if the Offering Owner accepts the counter- offer, the Offering Owner shaH 'b,e1 ;qbllgakd to sell the Office Unit to the Adjacent Owner at the accepted purchase priCl11: i, J.'f.,file. I 'AUjacent Owner does not agree to purchase the Office Unit as provided above, tqe:(!j~p:r:9wners shall have an additional 30 days in which to accept the offer or to make a: 'Gb,m.tpr~offer. If any of Other Owners accepts the offer or if the Offering Owner ac<re~t~'4I'qounter-offer, the Offering Owner shall be obligated to sell the Office Unit to sucp;Q,tlt~t OriVner at th~ accepted purchase price; provided however, that if the agreed purchase'~rlCl~'wl)ih the Ot~r.!Owner is lower than the asking price, then the Adjacent Owner shall b.~~e:'w,l,additional,3o;:ful~"ln which to elect to purchase the Office Unit at the lower price.,II1;he pur~hase pri~ ~hilIl b~'paid all cash at closing within 90 days of acceptance and the.IIQfr.dQ>>~VOwner Idiall':~~vey marketable title to the Office Unit by Statutory Warr~t~l~p'~~; pay the"ex.~i~e..tM tlf due) and provide standard coverage title insurance, with oth,e'Ii,c1ps,\ll.&lcosts beiJ1glltllpt:ated in the usual manner for Kitsap County, Washington, unless othehVi&d: ,agreed. Ifnoh~'or,ihe Other Owners agree to purchase the Office Unit, as provided above~' We Offering Ownet' 'shall, subject to a further right of first refusal as provided below, be free to sell the Office Unit to a third party for one year after the end of the last period specified above. If the Offering Owner enters into a bona fide agreement to sell the Office Unit within the one-year period to a third party, the Offering Owner shall first offer to sell the Office Unit to the Other Owners at a same sales price agreed to by the third party. The Other Owners shall have 30 days in which to accept the offer. If the offer is accepted by any ofthe Other Owners, the Offering Owner shall be obligated to sell the Office Unit to the Other Owner at the price specified in the agreement and the sale shall close in the manner provided above. If more than one of the Other Owner accepts the Offer within the time period, the offer of the Adjacent Owner shall have priority; otherwise the first to accept will prevail. Notwithstanding the foregoing, there shall be no conveyance of an Office Unit that would violate any of the covenants of the Bonds or cause the Bonds to become taxable for Federal income tax purposes, The right of first refusal provided in this Section shall not apply to the Garage Unit. \ ---; Section 9.12 Convevancv bv Owner; Notice Reauired. The right of an Owner of an Office Unit to An Owner intending to convey an Office Unit shall deliver a written notice to the Board, at least two weeks before closing, specifying (a) the Office Unit being sold; (b) the name and address of the purchaser, of the closing agent, and of the title insurance company insuring the purchaser's interest; and (c) the estimated closing date. The Board shall have the right to notify the purchaser, the title insurance company, and the closing agent of the amount of unpaid Assessments and charges outstanding against the Office Unit, whether or not such information is requested. Promptly upon the conveyance of an Office Unit, the new Office Unit Owner shall notify the Association of the date of the conveyance and the Office Unit Owner's name and address. The Association shall notify each insurance company that has issued an insurance policy under Article 19 of the name and address of the new Owner and request that the new Owner be made a named insured under such policy. At the time of the first conveyance of each Unit, every mortgage, lien, or other encumbrance affecting that Unit and any other Unit or Units or real property, other than the percentage of undivided interest of 09/29/04 2:15 PM -10- SF.AUOCS..lfS0343937av I o-DccWOlion Bretna10R_ GO\'~nl_ Cenkr.DOC 1\ I r I ! ~ I 1 PACIfIC ~ TITLE , , \... DECl SS3.SB 200409300447 Page: 16 of 45 69/36/2864 83'47P Kitsap Co. IlA \ ....., that Unit in the Common Elements, shall be paid and satisfied of record, or the Unit being conveyed and its undivided interes~'iq the Common Elements shall be released'therefrom by partial release duly recorded or ~~ ~qhoha~er of that Unit shall receive title insurance from a li~ensed title insurance comp~qY'ag~ib~l~bch mortgage, lien, Of other encumbrance. " I. I 111,1 ""'1',,1,,1, 'I . ," I, 'III Article 10. SPE ' II'~(:'LARANT RIGHTS. ,II: I. 1.1'1111 . ,I I ,I I. 'I The Dec,~~jin( ,,~setVes the,"following Special Declarant Rights so long as the Declarant owns'~ tt!jti.bl,l(a) to co~~e any improvements shown on the Survey Map and Plans; arid @in:b;"V~ easements';ih~~ii~h the Common Elements and Limited Common Elements f(j)tlth~'bdr'p'ose ofn.l~kilig,~mprovements within the Condominium. r: 1.1. IIf I .1' '1.1, t; IIIS~~Ho~:i'o.'1 D~cl~~i(ip~~ections. The Declarant shall have the right, but not the obl~g~iiqh~"i,<b conductl'ins~ctil!)ns and tests from time to time of all or any parts of the Coni~orl,., Ele~~nts, incJ}1dl~g the Limite? Common Ele.m~nts, in order to a~certain the physlcal" condltlon of the" improvements 10 the Condommmm and to determme whether maintenance, repairs or replacements of any such improvements are indicated. The Declarant shall pay all costs of such inspections and tests and restore the affected portion of the property to its condition immediately prior thereto, and shall indemnify the Association and Owners of any affected Units from any damage resulting therefrom. The Declarant shall have such rights of entry on, over, under, across and through the property as may be reasonably necessary to exercise the rights described in this Section. Section 10,2 Transfer, The rights described in this Article shall not be transferred except by instrument evidencing the transfer executed by the Declarant or the Declarant's successor and the transferee and recorded in the county in which the Condominium is located. The rights and liabilities of the parties involved in such a transfer and of all persons who succeed to any Special Declarant Right are set out in RCW 64.34.316. Article 11. ENTRY FOR REPAIRS OR MAINTENANCE, The Association and its agents or employees may enter any Unit and the Limited Common Elements allocated thereto to effect repairs, improvements, replacements, maintenance. or sanitation work deemed by the Board to be necessary in the performance of its duties, to do necessary work that the Owner has failed to perform, or to prevent damage to the Common Elemen.ts or to another Unit. Except in cases of great emergency that preclude advance notice, the Board shall cause the Unit occupant to be given Notice and an Opportunity to be Heard as far in advance of entry as is reasonably practicable. Such entry shall be made with as little inconvenience to the Owners and occupants as practicable. The Board may levy a special Assessment against the Owner of the Unit for all or part of the cost of work that the Owner has failed to perform which may be collected and foreclosed by the Association in the same manner as Assessments are collected and foreclosed under Article 15. The Board may require Owners and tenants to furnish duplicate keys to their Units to the Board or the Board's designated agent. 09/29/042:15 PM ~F.ADOCS-J.lS0343937-" I O-Dcelul~i(ln._RreQXrton_ eJo\'cmmcnl..('enler.DOC QIJYlrUIII"lfIU':1 ~~4~?~O~447 TITLE DECL ii u. ~/391e994 B3:47P ,~~ Kltsap Co, UR I'" Article 12. OWNERS ASSG)~I~:rl~N. I 1.ll'IIII.:1111 II I, I Section 12.1 FOIT?,QF,/\s'gp~ilihon, The Owners of Units shall constitute an owners association to be known a . thb ~rtWierton Government Center Association. The Association shall be organized as 'l"rQdp~ofit corporation, no later than the date the first Unit in the Condominium is cOllvey.~4;'::rh~ number of Board members and qualifications and procedures for election to thltll~qai~ s~ll be pr:6lvided in the Bylaws; provided that the Owner of the Garage Unit sha~ tie: ehtj:tled to a~~tl at least one Board member. The rights and duties of the Board and':qf;t4b A.ssociation"~aB ~~ governed by the provisions of the Condominium j J... \ ~l' / ~ J: J'll ',I Act, the Dr.G,~:llf~~~' land th~I~'l,~f.~f- IIIIIIIJ ',1111111 n_.1.......LJI I 1,1, " II$e,ct~n)2.2 ~,,:tr~e,IBoard will adopt Bylaws to supplement the Declaration and:'tp"'p'~v.lUe for th(f dttrP.~pis(iation of the Association and the property and for other purp'l\.~e8IQot inconsisterlt,wit~ the Condominium Act or the Declaration. --'111111 I III \ ......., / Section 12.3 Qualification and Transfer. Each Owner of a Unit (including the Declarant) shall be a member of the Association and shall be entitled to one membership for eacn Unit owned, which membership shall be considered appurtenant to that member's Unit. Ownership of a Unit shall be the sole qualification for membership in the Association. A membership shall not be transferred in any way except upon the transfer of title to the Unit and then only to the transferee of title to the Unit, provided that if a Unit has been sold on contract, the contract purchaser shall exercise the rights of the Owner for purposes of the Association, 'this Declaration, and the Bylaws, except as hereinafter limited, and shall be the voting representative unless otherwise specified. Any attempt to make a prohibited transfer shall be void. Any transfer of title to a Unit shall operate automatically to transfer the membership in the Association to the new Owner. Section 12.4 Powers of the Association. In addition to those actions authorized elsewhere in the Declaration, the Association shall have the power to: 12.4.1 Adopt and amend the Bylaws and the rules and regulations for the Condominium; _ '12.4.2 Adopt and amend budgets for revenues, expenditures, and reserves, and impose and collect Assessments for Common Expenses and Specially Allocated Expenses from Owners; 12.4.3 Hire and discharge or contract with Managing Agents and other employees, agents, and independent contractors; 12.4.4 Institute, defend, or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more Unit Owners on matters affecting the Condominium; 09/29/04 2:15 PM SF_"DOCs..#~034ll))7-vl O-DeclaraltoR..Bremmoll_ (;ovemment _ C'1U~ .DOC ,.... ,--,.- '00'" ___. ..,un _nl-_nl-, m -- -I 200409300447 0_ ..I.I. _____ __ ___ _. ..'__.1 . _.., i :;~;~/2:4 of e~~47P PAClrIC HW TITLE OECL $S3.eS Kitsap Co, WA 12.4.5 Institute ql',jntervene in litigation in its own name and on behalf of the Owner of the Garage Unit o~,ap.'~,mat&r relating to a material deficiency in the design or construction of the Garage Uqjt:~\c'haitigation the Association shall be obligated to institute 'f bl ,I , , , "I I reasona y necessary; II I" '. I " ' " 'I 1 ',I I I" I, 1111 u'll.. 12.4.6 ':"1 ~ald: d:ontracts and incur liabilities; 11111. 1.11011111 II 1,1 I. I. l~*!j"", Regulate ,f~e use, maintenance, repair, replacement, and modification of<':G~Qn'Elemen~'ahd Limited Common Elements, provided, however, that any regulation'~~~'lmpacts ofo.a.1'tCtS'U,1Cj use of the Common Elements or Limited Common Elements ~fyingl tJi~ 'Garage U Q.ili ls1aIl tequire the prior written consent of the Owner of the G JJ '+J I '101 I ,,"', I " arage I '1(,1,'.:1111111 I'll I 1.:11 III III. .1" I. III'" I I'. 11"1111 1111.1 lilt "'" ',,"':",'1 12.4.81' 1'C:~lIisell'additional improvements to be made as a part of the Corltm~ Elements and QHib~ Limited Common Elements; 111111,1 I III \ - J 12.4.9 Acquire, hold, encumber, convey, and dispose of, in the Association's name, right, title, or interest to real or tangible and intangible personal property, and arrange for and supervise any addition or improvement to the Condominium, provided that if the estimated cost of any separate property acquisition, addition, or improvement to the Condominium exceeds $25,000, the approval of the Owners holding a majority ofthe votes in the Association shall be required. 12.4.10 Grant easements, leases, licenses, and concessions through or over the Common Elements and petition for or consent to the vacation of streets and alleys; 12.4.11 Impose and collect any payments, fees, or charges for the use, rental, or operation of the Common Elements and for services provided to Owners; 12.4.12 Impose and collect reasonable fees relating to conveyance or change in occupancy of the Units, such as move-in fees and transfer fees; 12.4.13 Acquire and pay for all goods and services reasonably necessary Of. convenient for the efficient and orderly functioning of the Condominium; 12.4,14 Impose and cotlect charges for late payment of Assessments as further provided in Article 15 and, after Notice and an Opportunity to be Heard by the Board or by such representative designated by the Board and in accordance with such procedures as provided in this Declaration, the Bylaws, or rules and regulations adopted by the Board, levy reasonable fines in accordance with a previously established schedule thereof adopted by the Board and furnished to the Owners for violations of this Declaration, the Bylaws, and rules and regulations of the Association; =;;':~<,,,",-___o,_.,_~~ ItlrlUlfIln7r 200409300447 . Plr:lrrc i./mu: 1..1.11111 ~age, 19 Of 45 OrCL .s3 8" K"tI'3B12684 Q3:47P ," 1 sap Co, IJA 12.4.15 Provide for the indemnification of its officers and Board, and maintain directors' and officers' liabfHw insurance; III 11,1'111111 I I, I ,I 12.4.16 Ass~, il~''right to future income, including the right to receive Assessments' 'l," 'I ....,,1, ' , ,,11'1 " ". I I I ." ','III . , 12.4.11:\Rf~Y.iJe''or pay, as a Specially Allocated Expense allocated to the Office Units, the fo1)qWulg::utitity services to the Office Units: water, sewer and garbage .r I (I 1 I . removal; II"", "". 'I' ,,'I " ,',., " I I " 1,,1 I "11 ,''''11 ,<'I~"4!;18 I Exerci,5~';iiny,lb~her powers conferred by this Declaration or the B 1 I I ",'1"1,1 I' 1'1 I '" yaws; I'" I ., ,II," ' ! J 1.1, III I ,I 1,1, I. ,1111111 1.1111111 I ,'I I,ll I. 'I,:" ~';:, ':12.4.19 "E~erdM ~h other powers that may be exercised in this state by the I III . I I 111[1 . sa11]l!,~~'e" ,forp'oratlop. jiB lP61l4..ssociatlOn; and . . " " 'I I ' I', I . I, 'II I II I,,,,," 12,4.20 'EX~rcise any other powers necessary and proper for the governance and operation of the Association. \ - /, Section 12.5 Financial Statements and Records. The Association shall keep financial records in accordance with accrual based accounting principles. All financial and other records shall be made reasonably available for examination by any Unit Owner and the Owner's authorized agents. At least annually, the Association shall prepare, or cause to be prepared, a financial statement of the Association in accordance with generally accepted accounting principles. The annual financial statement shall be audited at least annually by a certified public accountant who is not a member of the Board or an Owner unless Owners holding at least 60% of the votes, excluding votes held by the Declarant, waive the audit for that year. The financial statement shall be completed in time for the Association's annual meeting and in any event within 120 days following the end of the fiscal year. Any Mortgagee will, upon request, be entitled to receive the annual financial statement within 120 days following the end of the fiscal year. The Board, or persons having 35% of the voting power of the Association. may require that an audit of the Association and management books be presented at any special meeting. An Owner or Mortgagee, at the Owner's or Mortgagee's expense, may at any reasonable time conduct an audit of the books of the Board and Association. Upon written request of a Mortgagee. the Association shall provide within a reasonable time the financial statement ofthe Association for the preceding fiscal year. Section 12.6 Insnection of Condominium Documents. Books. and Records, The Association shall make available to Owners, Mortgagees, prospective purchasers and their prospective Mortgagees, and the agents or attorneys of any of them, current copies of this Declaration, the Articles, the Bylaws, the rules and regulations of the Association, and other books, records, and financial statements of the Association. "Available" shall mean available for inspection upon request, during normal business hours or under other reasonable circumstances. The Association may require the requesting party to pay a reasonable charge to cover the cost of making the copies. 0912<)/04 2: I 5 PM SEADOCS,'1014)9J7-vI0-1leo:I.1ralion_Brcmmoa_Oovcmmcn'_Cmlcr.l)()( , 1 A _ .1 II PAClrIC ~.TITlE I . III OECL I .. t63,98 200409300447 Page: 2S 0(' 45 99/39/2004 83, 47P Kitsap Co. UR . I", . I I I Article 13. THE BOARDI'" ',',,,.' I .; 111.:1, III I 11;11 1':1 Section 13.1 Sele b' df'tliel Board and Officers. Each Owner shall be entitled to appoint one Board membfrLII ..' ~:, oard shall elect officers in accordance with the procedures provided in the BylaW91 I 1:ne Imembers of the Board and officers shall take office upon 11 II election. Removal" bJ, :Bpafd "members and their replacement. shall be as provided in the B 1 II, III I 11,1 I yaws. II", I' I ,'I " ,',I, " I I " 1..1 I '. I III,... I I I' I Secti()f1:~af~\ Powers f't 'e" I rd. Except as provided in this Declaration, the Bylaws or,t~IConl:lominium Act e Board shan at all times act on behalf of the Association. The Bo,~<<~ t.n~y.: I1xeroise a l:;pp.W-€;Pf' of the Association, except as otherwise provided in the Cond~Il1Jp~'P-TI,1\.ct, Dec,ar. bOlM ct the Bylaws. I I I I 11 III 'I ' .'. . ',I. I I I"" " " ~ ' " lid . '" ',,,e~tion 13.3 M~a1 ng Agent. The Board may contmct with a professional Manaltil\g Agent to assist 'the Board in the management and operation of the Condominium and may delegate such of its powers and duties to the Managing Agent as it deems to be appropriate, except as limited herein. \ --, Section 13.4 Limitations on Board Authoritv. The Board shall not act on behalf of the Association to amend the Declaration, Articles or Bylaws in any manner that requires the vote or approval of the Unit Owners pursuant to Article 24, to terminate the Condominiwn pursuant to Article 25, or to elect members of the Board or detenmne the qualifications, powers, and duties, or terms of office of members of the Board. The Board may, in accordance with the Bylaws, fill vacancies in its membership for the unexpired portion of any term. . Section 13.5 Right to Notice and Oooortunitv to Be Heard. Whenever this Declaration requires that an action of the Board be taken after "Notice and Opportunity to be Heard," the following procedure shall be observed: The Board shall give written notice ofthe proposed action to all Owners, tenants, or occupants of Units whose interest would be significantly affected by the proposed action. The notice shall include a general statement of the proposed action and the date, time. and place of the hearing, which shall be not less than five days from the date notice is delivered by the Board. At the hearing, the affected'person shall have the right, personally or by a representative, to give testimony orally, in writing or both (as specified in the notice), subject to reasonable rules of procedure established by the Board to assure a prompt and orderly resolution of the issues. Such evidence shaiI be considered in making the decision but shall not bind the Board. The affected person shall be notified ofthe decision in the same manner in which notice ofthe meeting was given. Section 13.6 Right of Owners to Overrule Board. Whenever the Board is authorized by this Declaration, the Bylaws, the Articles or otherwise to take action by simple majority' vote, any Board member may, before the close of the meeting at which the action is taken, lodge an oral objection to the action. In that event, the objector shall have five business days 09/29/04 2:15 PM -15- SEADO<."S-IIS03.0937-.IO.D.<I....iM_B.....non. G~..........._('....,.DO(' . I · '" , · I :1 . I PACIfIC HU TITL[ OECL ~3, 88 200409300447 Page: 21 of 45 99/3&128&4 83:47P Ki tsap COI UA \ --: following the meeting date to obtain and file with the secretary of the Board, or other authorized Board officer, a writtqt',pbjection to the action signed by an Owner or Owners having Unit ownership interestSt,tpbdl'lolt,fpver 50% of votes in the Association. During this five-day period, the Board acp'o~ ~>>hi~~' deemed suspended and shall have no legal effect. If sufficient written objectioq,i$:~ovidetl within the five-day period, the Board action shall be thereby nullified. If suff~~~:~bn objection is not provided within the 'five-day period, or if during that period t!J.e '9.pJe~tor 'notifies the Board in writing that the objection is withdrawn, the action shall autotrl~iic~l:r~ake effect. ,I I II II I 111111111.11 III II1I " ,', I, " I I . I. '.111 II II 1111'11 ArticJe:~4;1~~GET A~D;~S~R~SMENTS. J I " '1'1' I 1'1 " ~~it~~"I~ll Fisc fXb I ';,The Board may adopt such fiscal year for the Association as it I "'.. 'p'~iJ:,td:'b~ conwn e t.11tn.\ess another year is adopted, the fiscal year will be the ~i:~1fl III II I I III .rJ cal~.Qaat'y'eaf' I 1'" \,111 II' II. II. 111',11 I II I I, II' I II I',section 14.2 Pr~PUr~tion of Budget. Not less than 30 days before the end of the fiscal year the Board shall prepare a budget for the Association for the coming year. In preparing its budget the Board shall estimate the Common Expenses and Specially Allocated Expenses of the Association to be paid during the year, make suitable provision for accumulation of reserves, including amounts reasonably anticipated to be required for maintenance, repair, and replacement of the Common Elements and the Limited Common Elements, and shall take into account any surplus or deficit carried over from the preceding year and any expected income to the Association. Th~ Declarant shall 'prepare the initial budget for the first fiscal year ofthe Association. Section 14.3 Ratification of Bud2et. Within 30 days after adoption of any proposed budget for the Condominium after the Transition Date, the Board shaH provide a summary of the budget to all the Owners and shall set a date for a meeting of the Owners to consider ratification of the budget not less than 14 nor more than 60 days after mailing of the summary. Unless at that meeting the Owners to which a majority of the votes in the Association are allocated reject the budget, the budget is ratified, whether or not a quorum is present. In the event the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the Unit Owners shall be continued until such time as the Unit Owners ratify a subsequent budget proposed by the Board. Section 14.4 SUPl'lemental Budget. If during the year the budget proves to. be inadequate for any reason, including nonpayment of any Owner's Assessments, the Board may prepare a supplemental budget for the remainder of the year. A supplemental budget shall be subject to ratification by the Owners pursuant to Section .14.3. Section 14.5 Common Expenses. It is expected that the only Common Expenses of the Association to be allocated in accordance with Common Expense Liability will be the (a) general overhead and management expenses of the Association, including management and professional fees and costs, (b) cost of officers and directors liability and fidelity 09/29/04 2:15 PM -16- SE^DOCS.Nl030~J7.vIO-D",l.1r..iun lIremcnon_Oovcmmc:n' C'''er.DOC" I. I I I 'I II . 200409300447 Pig.: 22 of 45 69/38/2984 83:47P Ki tsap Co, llR PACIFIC NIl TITLE DECL $83, SS insurance, and (c) cost of operatiol), maintenance, repair, replacement and improvement of the fire/life safety system for the B-yilfling. III 11,1'11,111 I I I I Section 14.6 SoecialJy"'~!\H~b,ea Exoense's. The following costs of the Association shall be specially allocated t~ lJu1.tf' b'a'Sed on usage or benefit except as otherwise noted: . (,,:1"""1111 14.6.1,: "I~~: ~~~i of operation, casualty and liability insurance, maintenance, repair, replacement,.djl~"pqfrOvement of the following portions of the Building shall be allocated to the Om'a~It;Jhi'rs'm proponion to their Common Expense Liability: " ",,', " , I I II I.. I I, I II "II I I II I d 1"""';1,,1',14.6.1.1 ,o'11Ue' , ~ce Levels, including the Office Limited Common Elements, #il*FtPWltg'~nly the J\(edihg Chambers and non-structural improvements within the Offi U,-"...\I, '101 1 1""",11 ,; ce I JR.;"SI.I,IIIIIII I II I 1.1. I. I I I I '.1 . I,', 'I ' 'h I I I, JlIIIII .111,' 1111 "'" ',,"':",'1 lftlS~'ll" II' e walkways (other than the walkway on the eastern and norlh~ta;\ Is~des of the Bu\Id'iQ), driveways, landscaping, grounds of the Condominium, other than tHe'r,imited Common 'Element driveway and parking area allocated to the Garage Unit. 14.6.2 The cost of operation, maintenance, repair, replacement and improvement of the Meeting Chambers shall be allocated among the Office Units based on usage; \ --, 14.6.3 The cost of maintenance, repair and replacement of the Garage Levels shall be specially allocated among the Unit Owners as follows: 14.6.3.1 The cost of casualty and general liability insurance, repair' and replacement of the Garage Levels and the exterior walkway on the eastern and northern sides of the Building shall be allocated 43.24% to the Garage Unit (which is the percentage the floor area of the Garage Unit is to the total floor area of the Garage Levels) and 56.76% to the Office Units in proportion to their Common Expense Liability; 14.6.3.2 Operation, security and maintenance of the Garage Unit shan be the responsibility of the Owner of the Garage Unit; 14.6.3.3 Maintenance of the Office Limited Common Elements on the Garage Levels shall be the responsibility of the Association and allocated to the Office Units in proportion to their Common Expense Liability; 14.6.4 The cost of maintenance, repair and replacement of the Limited Common Elements allocated to the Garage Unit shall be allocated to or paid by the Owner of the Garage Unit. 14.6.5 The Owner of the Garage Unit shall be responsible for the utilities serving exclusively the Garage Unit and its Limited Common Elements. The cost of all other utility services to the Building, other than those which are paid directly by the Unit Owner or 09/29/042: IS PM -17- ~~m~'________ 'I n 1'..: .1J) PAClf"IC HU TITLE OCcr. r '. ~3.$8 200409300447 Page: 23 of 45 8~'38I2884 83:47P Kltsap Co, I./R . which are submetered, shall be allocated to the Office Units in proportion to their Common Expense Liability. The cost of anwUlilities which are submetered to a Unit shall be allocated to that Unit in accordance with U~~l .,.....! .: 1.11.:11, III I I "II, IIII Section 14.7 Spec\~i.:~sB~sthents. For those Common Expenses or Specially Allocated Expenses whic~'~i4mq~~easonablY be calculated and paid on a monthly basis, the Board may levy spe~a1.,,1\.likessments for such expenses against the Units, subject to ratification by the O;w~~r~'pprsliant to Section 14.3. To the extent that any Common Expense or Specially AUopatc;d' ;BxPense is (;~sed by the misconduct of an Owner or tenant of any Unit, the Ass~i~rlll~ay, aftep"Ndtice and Opportunity to be Heard, levy a special Assessment {Ot'~,e~pe~se aga,~:tl1e,t!Jpit. I ...', 'I" I " 1'1 I '" " I I I I , I , r I I 1,11,.11 I' ~~Htfb~J:~,.8 Crea' serves' Assessments. The Board shall create reserve accOl1flt~,,fQf.,~~ticipate~I.e, ,eli1,4e~ or repairs, replacements, and improvements which will OC<1~r"iq"*'1:jfuture in 4>rfi~t,tol accumulate sufficient funds to pay such expenses when they occUr. ... J\1e operation bf,'.rb~rve accounts and Assessments for reserve accounts shall be furthet'ogo'vemed by the Byt'8.ws. Section 14.9 Notice of Assessments. The Board shall notify each Owner in writing of the amount of the monthly general and special Assessments to be paid for the Owner's Unit and shall furnish copies of all budgets and Assessment schedules which apply to the Unit. The Board shall furnish the same infonnation to an Owner's mortgagee" if so requested. \ -, Section 14.10 Pavment of Monthlv Assessments. On or before the first day of each calendar month, each Owner shall pay Of cause to be paid to the treasurer or designated agent of the Association all Assessments against the Unit for that month. Any Assessment not paid by the tenth day of the calendar month for which it is due shall be delinquent and subject to late charges, interest charges, and collection procedures as provided in Article 15. Section 14.11 Proceeds Belong to Association. AU Assessments and other receipts received by the Association on behalf of the Condominium shall belong to the Association. Section 14.12 Failure to Assess. Any failure by the Board or the Association to make the budgets and Assessments hereunder before the expiration of any year for the ensuing year shall not be deemed a waiver or modification in any respect of the provisions of this Declaration, or a release of the Owners from the obligation to pay Assessments during that or any subsequent year. The monthly Assessment amounts established for the preceding year shall continue un~l new Assessments are established. Section 14.13 Reconciliation of Assessments to Actual Exoenses. The Association shall establish and maintain its accounts and records in such a manner that will enable it to credit Assessments for Common Expenses and Specially Allocated Expenses, including allocations to reserves, and income to the Association to the account of the appropriate Units and make its expenditures from the appropriate accounts. In order that the Unit Owners are correctly assessed for the actual expenses of the Association, the accounts of the Association 09/29/04 2: IS PM -18. SF.AO()('S-".sO]439}7~vl()"Drclar8IiPa UrCIM:rlon Gow:mmen,_Cmb:"OOC- I .I111.1L .'.' PRCIFIC NU TITLE I III I:~I' 'I' 200409300447 I Page: 24 of 4S u .", - 89139/2994 93: 47P DECL t63,8S Kitsap Co, UA . shall be reconciled at least annually; and any surpluses (or deficits) in the accounts shan be credited to the b~nefit of o~ paid,"9. (OT, charged to the account of or assessed against) the Owners of the Umts who paid the.~lltplu~~or owe the deficit). . .: 1."11)'11 III . I I .11 III' Section 14,14 Certifil Ii ' 'HJh aid Assessments. Upon the request Of any Owner or Mortgagee ofa Unit, thelBo~I, ~ furnish a certificate stating the amount, if any, of unpaid Assessments charged t(),~e.,giitt:' The certificate shall be conclusive upon the Board and the Association as to th~'~pti):,.~ oqjf such indebtedness on the date of the certificate in favor of all purchasers and ~gll~l:~s.:bf the Unft who rely on the certificate in good faith, The Board may establish ~'~'i'bl}.~ble fee t~"tWlcharged to reimburse it for the cost of preparing the 'fi " I "I certl leate. """,'1 I, ,"" "'" I, I " I'. II II I II ',I I I " ','I' I 'I " ~~~tiijQ."l~~15 Recalt" " .. ~ of Assessm nts. If Common Expense Liabilities are reall~+'4::,Sp~on p~ ~t \Assessments, Special Assessments, and any installment th~f.y~,~qt, '.Ft due shatl pe t,ew.e'ulated in accordance with the reallocated liabilities. '1,1111' I I, '111r I 11111111 II III I Article 15. LIEN AND COLLECTION OF ASSESSMENTS. " -; Section 15.1 Assessments Are a Lien: Priority. Except for Units owned by a governmental agency that are not subject to lien by law, the Association has a lien on a Unit for any unpaid Assessment levied against a Unit from the time the Assessment is due. A lien under this Article shall be prior to all other liens and encumbrances on a Unit except: (a) liens and encumbrances recorded before the recording of this Declaration; (b) a mortgage on the Unit recorded before the date on which the Assessment sought to be enforced became delinquent, EXCEPT to the extent of Assessments for Common Expenses, excluding any amounts for capital improvements, based on the periodic budgets adopted by the Association pursuant to Article 14 which would have become due during the six months immediately preceding the date of a sheriffs sale in an action for judicial foreclosure by either the Association or a mortgagee. the date of a trustee's sale in a norijudicial fore~losure of a mortgage, or the date of recording of the declaration of forfeiture in a proceeding by the vendor under a real estate contract, PROVIDED that the priority of the Association's lien against Units encumbered by a mortgage held by an Eligible Mortgagee or by a mortgagee which has given the Association a written request for a notice of delinquent Assessments shall be reduced by up to three months if and to the extent that such lien priority includes any delinquencies which relate to a period after such .mortgagee becomes an Eligible Mortgagee or has given such notice and before the Association gives such mortgagee a written notice of the delinquency; and (c) liens for real property taxes and other governmental assessments or charges against the Unit. Recording of this Declaration constitutes record notice and perfection of the lien for Assessments; however, the Association may record a notice of claim of lien for Assessments in the real property records of the county in which the Condominium is located. Such' recording shall not constitute the written notice of delinquency to a mortgagee referred to above. 09/29/04 2: 15 PM SEADOCS.#50J0937..10-O'CI....;.. B......,...._O...........,_ ('._.IX OCCL tS3 . 00 200409300447 Page: 25 of 45 99138/2884 fl3: 47? Kitsap Co. lJA . I PACIFIC NU TITLE I I \ -; Section 15.2 Lien May be Foreclosed: Judicial Foreclosure. The lien arising under this Article may ,be enforced judi~ilJpy by the Association or its authorized representative in the manner set forth in RCW 6l..12~ br,'npnjudicially in the manner set forth in Section 15.3. The Association or its authorii~d,r.lep~~~ntative shall have the power to purchase the Unit at jli I, I the foreclosure sale and t~r'a,~nire~"hold, lease, mortgage, or convey the same. Upon an express waiver in the cOq1~IIUnt or.tby right to a deficiency judgment in a judicial foreclosure action, the period of ~Ptl~~'shal1 be eight months. Nothing in this Section shall prohibit the Association froJ11'pikj~<<'al<!eed in lieu offoreclosure. Except as provided in the exception to (b) in Section ,~~,~~':thdlhblder of.:8l mortgage or other purchaser of a Unit who obtains the right ofposses~~lqfl~:.unit thrqut!hlforeclosure shall not be liable for any Assessments or instal1tnentsl,~~e~f" tHat bec~e:'\iw.~"Prior to such right of possession. Such unpaid Assessmel1t~ I~fial'} 'be deemed, ta ,be ~ommon Expenses collectible from all the Owners, in~ludi'~~~UG~:mQlrtgagee orp,~~f'PI~rc~~ser ofthe Unit. Foreclo~ure of ~ mortgage. does not rehev~ :tpe I~f~~ ()wner ,Q.f pJrn~nrll hablhty for Assessments accrumg agamst the Umt prior to the,4!\e'Qf,~ch sale. 1'1'" :111 II' I. II I. I I, II " " I I . I, "II I II I I IIIIS~ction 15.3 Ndniudicial Foreclosure. A lien arising under this Article may be foreclosed nonjudicially in the manner set forth in RCW 61.24 for nonjudicial foreclosure deeds of trust. For the purpose of preserving the Association's nonjudicial foreclosure option, this Declaration shall be considered to create a grant of each Unit in trust to Chicago Title Insurance Company or its successors or assigns ("Trustee"), to secure the obligations of each Unit Owner ("Grantor") to the Association ("Beneficiary") for the payment of Assessments. Grantor shall retain the right to possession of Grantor's Unit so long as Grantor is not in default of at:l obligation to pay Assessments. The Trustee shall have a power of sale with respect to each Unit, which becomes operative in the case of a default in a Grantor's obligation to pay Assessments. The Units are not used principally for agricultural or farming purposes. If the Association forecloses its lien non judicially pursuant to this Section, it shall not be entitled to the lien priority over mortgages provided in exception (b) of Section 15.1. Section 15.4 Receiver During Foreclosure. From the time of commencement of an action by the Association to foreclose a lien for nonpayment of delinquent Assessments against a Unit that is not occupied by the Owner thereof, the Association shall be entitled to the appointment of a receiver to collect from the lessee thereof the rent for the Unit as and . when due. If the rent is not paid, the receiver may obtain possession of the Unit, refurbish it for rental up to a reasonable standard for rental Units in this type of Condominium, rent the Unit or permit its rental to others, and apply the rents first to the cost of the receivership and attorney fees thereof, then to the cost of refurbishing the Unit, then to applicable charges, then to costs, fees, and charges of the foreclosure action, and then to the payment of the delinquent Assessments. Only a receiver may take possession and collect rents under this Section, and a receiver shall not be appointed less than 90 days after the delinquency, The exercise by the Association ofthe foregoing rights shall not affect the priority of preexisting liens on the Unit. Section 15.5 Assessments Are Personal Oblilration. In addition to constituting a lien on the Unit, all sums assessed by the Association chargeable to any Unit, including all charges provided in this Article, shall be the personal obligation of the Owner of the Unit when the 09129'04 2:15 PM .'0. SEADOl.'!;.#$0343937.,IO-llcclaratioA.Jlmne"on .Governme.. Center,1XlC I I T II PACIFIC HU TITLE DECL $63,88 200409300447 Page: 28 or 45 SSl3S12994 63 '4iP Kitsap Co, UA . Assessments are made. Suit to recover personal judgment for any delinquent Assessments shall be maintainable without fore~lq~ing or waiving the liens securing them. 111 It 1 11111111 ~' ' Section 15.6 Extin~s '~nt~~ot Lien and Personal. Liability. A lien for unpaid Assessments and the pers~na.r'~illhiHt'Y for payment of Assessments is extinguished unless proceedings to enforce tIf.~"Heh,~,~ollect the debt are instituted within three years after the amount of the AsseSS~~'69.~W1~ to be recovered becomes due. II1I II1I ,I . IIII lilt 11,"111 Section 1~J1,,"~diiitlland Seve{lll Liability. In addition to constituting a lien on the Unit, each Asse~~rPept~pall be thyddirtt and several obligation of the Owner or Owners of the Unit to whi9h.'tli~, s~me are as!J.eB~ed,~s,of the time the Assessment is due. In a voluntary conveyan'T~ll tlfe',grltntee of a trtpi~ ~hali 'be jointly and severally liable with the grantor for all unpaid ~s~e~iP'reJ;llts against'U}'e::gmptor up to the time of the grantor's conveyance, without prejudi~(\~:,~~F'8rantee",l?, ~g~~ltq 'tecover from the grantor the amounts paid by the grantee ther.lft~r.I,,,,S}ll~ to recp~r 'allpel-sonal judgment for any delinquent Assessment shall be main1'ai'm~l'e in any COWt.,~tt competent jurisdiction without foreclosing or waving the lien ~1I I' I I secunngl~uch sums. ' '" ~ Section 15.8 Late Chare:es and. Interest on Delinauent Assessments. The Association may from time to time establish reasonable late charges and a rate of interest to be charged on all subsequent delinquent Assessments or installments thereof. In the absence of another established nonusurious rate, delinquent Assessments shall bear interest from the date of delinquency at the maximum rate permitted under RCW 19.52,020 on the date on which the Assessments became delinquent. Section 15.9 Recovery of Attorney Fees and Costs. The Association shall be entitled to recover any costs and reasonable attorney fees incurred in connection with the collection Of delinquent Assessments, whether or not such collection activities result in suit being commenced or prosecuted to judgment. In addition, the Association shall be entitled to recover costs and reasonable attorney fees if it prevails on appeal and in the enforcement of a judgment. , Section 15.10 Security Deuosit. An Owner who has been delinquent in paying his monthly Assessments for three of the five preceding months may be required by the Board, from time< to time, to make and maintain a security deposit not in excess of three months' estimated monthly Assessments, which shall be collected and shall be subject to penalties for nonpayment as are other Assessments. The deposit shall be held in a separate fund, credited to such Owner, and may be resorted to at any time when such Owner is 10 days or more delinquent in paying Assessments. . Section 15.11 Remedies Cumulative, The remedies provided herein are cumulative and the Board may pursue them, and any other remedies which may be available under law although not expressed herein, either concurrently or in any order. OW29/04 2: I S PM SF.ADO<"S.IiSQ30t)) 7-v I O-Decl.1rllltoll_llrcmerton_ <iovemmcnt_ Cenl~.I)OC I"', '., . r \. . ....~I '~I" '.{II \ -, \ · 200409300447 . \ Page' 27 or 45 . I I., i _ n ~~ . - - ~3S12684 .83:47P flf\Clne HIJ TITLE DECl S63,ee Kltsap Co, IJR . Article 16. ENFORCEMm'ir.,OF DECLARATION. BYLAWS. AND RULES AND REGULATIONS. I'" ." ......'1 .: 11'111:111111 I I III IIII Section 16.1 Ri tsl (jf. I I doh. Each Owner, the Board, and the Association shall comply strictly with thi{:O~~l ont the Bylaws, and the rules and regulations adopted pursuant thereto, as th~~!'p'ay',~q lawfully amended from time to time, and the decisions of the Board. Failure to c~p'Iy'I~ttl1'any of the foregoing shall be grounds for an action to recover sums due, dama~lf~:,tfuP"fo..,injuncti~q relief, or any or all of them, maintainable by the Board on behalf of the. :-M$qbi~~ion or by. an! Owner. - ..1"11.:11 I: I 11"1;110111 III . I" I ~'I " , 'b '...,1 - Se~tipl} 16'.IG-I' Failure 'Ofl.B am" to Insist on Strict Performance No Waiver. The failure 9fltha:~bartl in any'ltii~tiJ,l~e.,to insist upon the strict compliance with this Declaration or thela.~~~s'~T'iules all~ ~J~1ali(jhs of the Association, or to exercise any right contained in sucp, apOltql~ms, or to Is~~,ai1:v' notice or to institute any action, shall not be construed as a wahr/;!r,~r'a'telinquishnt~htJdr the future ofany term, covenantt condition, or restriction. The receipt,:bY the Board of'paYrnent of an Assessment from an Owner, with knowledge of a breach by the Owner, shall not be a waiver of the breach. No waiver by the Board of any requirement shall- be effective unless expressed in writing and signed for the Board. This Article also extends to the Declarant. \ -., Article 17, TORT AND CONTRACT LIABILITY. Section 17.1 Association Liability. An action alleging a wrong done by the Association must be brought against the Association and not against any Owner or any officer or director of the Association. An Owner is not precluded from bringing an action contemplated by this Section because he or she is a Unit Owner or a member or officer of the Association, Section 17.2 Limitation of Liability for Utility Failure. etc. Except to the extent covered by insurance obtained by the Board, or following a judicial finding of fault, neither the Association, the Board, nor the Declarant shall be liable for: the failure of any utility or other service to be obtained and paid for by the Board; or for injury or damage to person or property caused by the elements, or resulting from electricity, water, rain, dust, or sand which may leak or flow from outside or from any parts of the Building, or from any of their pipes, drainst conduits, appliancest or equipment, or from any other place; - or for inconvenience or discomfort resulting from any action taken to comply with any law, ordinance, or orders of a governmental authority. No diminution or abatement of Assessments shall be claimed or allowed for any such utility or service failure, or for such injury or damage, or for such inconvenience or discomfort. Section 17.3 No Personal Liability. So long as a Board member, Association committee membert Association officer, or the Declarant has acted in good faith, without willful or .intentional misconduct, and upon the basis of such information as is then possessed 09/29/04 2:15 PM -22- !)EAno('S-.$01439.11.~IO-DlClor"'KtIl Bn:m:rtoD_Go\~n._CcnlCC'.ax- I I , '" ---, '-'W-- ---, , .. __ I 200409300447 _ ..I,: Page; 28 of 45 . u_L. J J 1.. 091381_ 83"IP PRCIf'[C NlJ TITLt OECl ~3.S9 Kitsap Co. IJA by such person, no such person shall be personally liable to any Owner, or to any other person, including the Association, ,for any damage, loss, or prejudice suffered or claimed on account of any act, omission, efliqr~'~rl,t\~ligence of such person, provided that this Section s~all not apply when the conieci/J~itl:!e~ldf such act, omission, error, or negligence is covered by insurance obtained by tl:\~'l.QbF!.lrl.,'''' . I' '( I ',I I I ,II 'I IIII I 11'1111 ,"'II I, I I Article 18. ~9.t~IF'ltATION, . 11:11 It.1 IIIII III I I I ' . Each Bqa,tl"~;t:nber, ~la~on committee member, Association officer and the Declarant sh1b~~~~IiP4enllrified QY:~e'IA;sl\ociation against all expenses and liabilities, including attorney fc;~sr I~Dtlbly inc$~iqr or'~mposed in connection with any proceeding to which such pe~R~,~~X:~~ a Party'hor \~I'rv.~ph such person may become involved, by reason of holding or ha~g ~~t? ~uch po*ip, ,.<;>r.lapy settlement thereof, whether or not such person holds such po~on.'at,~''time sUq1 ~,tJaBtlS or liabilities are incurred, exc~pt to the extent such expenses and 11~a~(lities m:e coveretl, by! ~hy type of insurance and except in such cases wherein such person is adjlidgCd guilty of willful' misfeasance in the performance of such person's duties, provided, that in the event of a settlement, the indemnification shall apply only when the Board approves such settlement and reimbursement as being for the best interests of the Association. Article 19. INSURANCE. \ --; Section 19.1 General Requirements. Commencing not later than the time of the first conveyance of a Unit to a person other than the Declarant, the Association shall maintain, to the extent reasonably available, a policy or policies and bonds necessary to provide (a) property insurance, (b) commercial general liability insurance, (c) fidelity insurance, (d) worker's compensation insurance to the extent required by applicable laws, (e) directors and officers liability insurance, and (t) such other insurance as the Board deems advisable, The Board shall review at least annually the adequacy of the Association's insurance coverage. All insurance shall be obtained from insurance carriers that are generally acceptable for similar projects, authorized to do business in the state of Washington, and meet the specific requirements of Mortgagees regarding the qualifications of insurance carriers. Section 19.2 Property Insurance; Deductible. The property insurance shall, at the . minimum and subject to such reasonable deductible as the Board may determine, provide All Risks of Direct Physical Loss coverage in an amount equal to the full replacement cost of the Common Elements and Limited Common Elements and personal property of the Association with an "Agreed Amount Endorsement" and, if required by Morgagees, construction code endorsements, such as a "Demolition Cost Endorsement," a "Contingent Liability from Operation of Building Laws Endorsement," an "Increased Cost of Construction Endorsement;' and such other endorsements as Mortgagees deem necessary and are reasonably available. The policy shall provide a separate loss payable endorsement in favor of the Mortgagee of each Unit. The Association or insurance trustee, if any, shall hold insurance proceeds in trust for the Owners and their Mortgagees, as their interests may 09129/04 2:15 PM -23- SEAOOCS.1f.50.\4;\QJ1-.IO-PeclDrali(lll_ Brcmr=rtOD _ Govcmmtal_l'cnter.1XK' . I' ., 'I . I _. _ .. -. 200409300447 Page: 29 of 45 89138/2884 83:47P DECl $33, $9 Ki tSOlp Co, llA I.. PACIrIC NU TITLE appear. Each Owner and the Owner's Mortgagee, if any, shall be beneficiaries ofthe policy in accordance with the interest in t4~"Common Elements appertaining to the Owner's Unit. Certificates of insurance shall ~t:l,;ss~ed'~ each Owner and Mortgagee upon request. Each Owner will be responsible f9,r"irt~\lti~'~1J improvements within the" Owner's Unit, except those portions defined as C~ihjhn'm 'Plelnents in Section 6.1. " 'I ,'1, 1.-:1 ,II "'III Section 19.3 I I 't~l~l General Liabilit Insurance. The liability insurance coverage shall jnsurel'~h~, qard~ the Association, the Owners, and the Declarant and cover all " of the Common I}le~'e~ts 'mlthe Condpminium with a "Severability of Interest Endorsement" " or equivalent co";et8tJ~,*hich wou.ld ,p"rc1ude the insurer from denying the claim of an Owner because oftqe:~e~111~n~ acts of,~~:~'8~~iation or of another Owner, and shall cover liability of the insl,lJ:~' foll p~operty d~~. bodily injury, and death of persons arising out of the operatiqnl~:titili.n.~~pance, aqdl'~ti:Qf"the Common Elements, host liquor liability, employers' liabili~I~p'~ce, auto,mqb Ifr:llir.B~lity insurance, and such other risks as are customarily coY#r.&r~i~ respect t~ ~u~cial condominium projects of similar construction, location, and"~'1~I,1fhe limits of.,liahjlity shall be in amounts generally required by Mortgagees for projedL~IIOf similar construC'tion, location and use but shall be at least $2,000,000 combined single limit for bodily injury and property damage per occurrence and $4,000,000 general aggregate. \ '---) Section 19.4 Insurance Trustee; Power of Attorney. The named insured under the policies referred to in Section 19.2 and Section 19.3 shall be the Association, as trustee for each of the Owners in accordance with their respective interests in the Common Elements. The insurance proceeds may be made payable to any trustee with which the Association enters into an insurance trust agreement, or any successor trustee, who shall have exclusive authority to negotiate losses under the policies. Subject to the provisions of Section 19,8. the proceeds must be disbursed first for the repair or restoration of the damaged property, and Unit Owners and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored or the Condominium is tenninated. Each Owner appoints the Association, or any insurance trustee or successor trustee designated by the Association, as attorney-in-fact for the purpose of purchasing and maintaining such insurance, including the collection and appropriate disposition of the proceeds thereof, the negotiation of losses and execution of releases of liability, the execution of all documents, and the performance of all other acts necessary to accomplish such purposes. Section 19.5 Additional Policy Provisions. The insurance obtained pursuant to Section 19.2 and Section 19.3 shall contain the following provisions and limitations: 19.5.1 Each Unit Owner is an insured person under the policy with respect to liability arising out of the Owner's interest in the Common Elements or membership in the Association. 19.5.2 Such policies shall not provide for contribution by or assessment against Mortgagees or become a lien on the property superior to the lien of a first mortgage. 09129/042:15 PM ~24- ~EAI)()('S-~'O)4J9J7.....Il).De<~"itlC1n"lllcmcrt.n_Go'.m"",n'_l"n'or"POl" _ '" II I1I1 I I PACIFIC HU TITLE DrCl $83,88 200409300447 Pagt: 38 or 45 99138/2884 83:47P Ki tsap Co, UR 19.5.3 If, at thq't$ple of the loss under the policy, there is other insurance in the name of the Unit Owner c~;yelri,hg,tbe same risk covered by the policy, the Association's policy provides primary insu~n\;~~::"'::'/ .1111 .1, 111,11 . 11,1. I. I I 19.5.4 l'~~,~~el shall not be prejudiced by (a) any act, omission, or neglect of the Owners ,~f, ~hi~ When such act or neglect is not within the scope of the Owner's authority on beha1~,or. th~'1.\8sociation, or (b )failure of the Association to comply with any warranty or con<\\tlop'iVith,regard tQ'~ny portion of the premises over which the Association h I ' ' I I I as no contro ..: 1:,"1'" 'I ''''11 I . ,.11,111 II II .,:;11'11 II II III '. ,I I I, 'I II '11;."19:S~3 A w~i\ler of''Subrogation by the insurer as to any and all claims against f):1~, ~~~i,ttion, thlt' ~~~r. ~f any Unit, and/or their respective agents, members of the Owner.~Iii,~se~o~d, empJ.d.rC..esl frl~essees, and of any defenses based upon co-insurance or uPQQ It~~~lla;tY ariSing1fijOj:the,acts of the insured. '. II I, I II I I '" ",,1 I I. '" I I 1, I '",,' 19.5.6 ~ standard mortgagee clause which shall: 19.5.6.1 Provide that any reference to a mortgagee in the policy shall mean and include all Mortgagees of any Unit or Unit lease or sublease in their respective order of preference, whether or not named therein; \ - . J 19.5.6.2 Provide that such insurance as to the interest of any Mortgagee shall not he invalidated by any act or neglect of the Board or Owners or any persons under any of them; 19.5.6,3 Waive any provision invalidating such mortgage clause by reason of the failure of any Mortgagee to notify the insurer of any hazardous use or vacancy, any requirement that the Mortgagee pay any premium thereon, and any contribution clause; and 19.5.6.4 Provide that, without affecting any protection afforded by such mortgagee clause, any proceeds payable under such policy shall be payable to the Association or the insurance trustee. Section 19.6 Fidelity Insurance. The required fidelity insurance shall afford coverage to protect against dishonest acts on the part of officers, directors, trustees, and employees of the Association and all other persons who handle or are responsible for handling funds of or administered by, the Association. The Managing Agent shall maintain fidelity insurance for its officers, employees, and agents who handle or who are responsible for handling funds of, or funds administered by the Association. All such fidelity insurance shall name the Association as an obligee and shall be not less than the estimated maximum of funds, including reserve funds, in custody of the Association at any time during the term of each policy, but, in no event, shall the aggregate amount of insurance be less than three months' aggregate Assessments, The policy shall contain waivers of any defense based upon 09/29/04 2: I S PM - .,~- Sf.AUoCS.H~OJ4]937., l()..l)ocbr.'."Um...rtoft (;O.........,_C'.......I)()(. I I I I I . PACIFIC HIJ TITLE DECL 200409300447 Page' 31 of 45 89/3&12984 &3: 47P . Kitsap Co, IlR S63.88 the exclusion of persons who serve without compensation from any definition of "employee" or similar expression. I' ... . . 111.11,11111111 Section 19.7 Owne~: ':1r1d,'V~tr~1 Insurance. Unless otherwise approved by the Board, each Unit Owner ~1~BJ,hpfirlbiin or cause to be maintained property insurance with respect to the improvemfnt~App'lltlquipment within the Owner's Unit, except those portion defined as Common E.lb@dnt~ lb"Section 6.1, and those items for which the Unit Owner has the responsibility tq,~~iqbiln\"repair and replace under Section 9.5 to the extent not covered by the Associatiop~s.~qllcy,i!nd mainqiin.. or cause to be maintained, public liability insurance meeting with re.<$p.~clt l'0, '~e Owner"'S~it. Unit Owners and their tenants shall be responsible for insuring ),1Hc1r I 6.WO I contents "8;T1tJ "otl1er personal property. Insurance obtained by the Associati<wlls~aU'lddl prevent~,art ,bwrler from obtaining insurance for the Owner's own b fit I I, I '11.1 I 11.....,1. -; ene 1 "ll I. 1.1. I II I 1.1. I. I 111.11 1111111 I I I I 11.:1, Ilpl : .111 ,I 11111 I' ,I, ',seatinn 19.8 e' '("Insurance Proceeds. Any portion of the Condominium for I I I I IT whio<<'t~e lA'ssociation i$ 'Ie ired to obtain insurance under this Article which is damaged or destrdyed'shall be repai~et1' or replaced promptly by the Association pursuant to Article 20 unless: (a) the Condominium is terminated: (b) repair or replacement would be illegal under any state or local health or safety statute or ordinance~ or (c) Owners holding at least 80% of the votes in the Association, including every Owner of a Unit or Limited Common Element which will not be rebuilt, vote not to rebuild, The cost of repair or replacement of such damaged or destroyed portion of the Condominium which exceeds available insurance . " proceeds and reserves shall be allocated to the Unit Owner or Owners responsible for repair or ~ ./ replacement of that portion of the Condominium pursuant to Section 14.6. The Unit Owner shall be responsible for repair or replacement of any damaged or destroyed improvements within the Owner's Unit. If all of the damaged or destroyed portions of the Condominium for which the Association is required to obtain insurance are not repaired or replaced; (i) The insurance proceeds attributable to the damaged Common Elements shall be used to restore the damaged area to a condition compatible with the remainder of the Condominium; (ii) the . insurance proceeds attributable to Units and Limited Common Elements which are not rebuilt shall be distributed to the Owners of those Units and the Owners of the Units to which those Limited Common Elements were allocated, or to lienholders, as their interests may appear; and (Hi) the remainder of the proceeds shall be distributed to all the Unit Owners or lienholders, as their interests may appear, in proportion to the Interest in Common Elements of each Unit. If the Unit Owners vote not to rebuild any Unit, that Unit's Allocated Interests are automatically reallocated upon the vote as if the Unit had been condemned under Article 21, and the Association promptly shall prepare, execute, and record an amendment to this Declaration reflecting the reallocations. Notwithstanding the provisions of this Section, Article. 25 governs the distribution o(insurance proceeds if the Condominium is terminated. Article 20. DAMAGE AND REPAIR OR DAMAGE TO PROPERTY. Section 20.1 Initial Board Determination. In the event of darhage to any Common Element or to any portion of a the Condominium covered by the Association's insurance 09/29/04 2:1S PM -26- ~,...-_,.,.'"..~- ~--'-~. \. \ \ r 'UI' \ \ III , ~::~: PACmC H~ TITLE DECL t63.88 Klt.sap Co. policy, the Board shall promptly, and in all events within 60 days after the date of damage, make the following determinatiotllf:w,ith fespect thereto, employing such advice as the Board deems advisable: I'" ',',,,,, I .: ).llt.:11 1,1 I I '. IIII II I. .1 20.1.1 T.htJ,~bJ1:fand extent of the damage, together with an inventory of the improvements and pr~p~~y.;q!~ctlY affected thereby. ':"11,1,,,1 I 20'lh~ :":~:'re~sonably reliable estimate of the cost to repair the damage, which estimate s~'L~ lit. tehsonably p~cticable, be based upon two or more firm bids obtained .bl....' h..~ ' I from responsl ...,. e,....'1~ lle,tors. I'" '" I ..11,111 II I 1..:110., II " II' II .1 I I, 'I . " II I;" '10: \1~3 The I ~:k:p~ted I insurance proceeds, if any, to be available from insuranl{~ll:jd'l'c::n'hol the lossl".a~e~'9.n,the amount paid or initially offered by the insurer. I 111111 11111 Ii!' I I II III :'. 11111 : 1111" II '1111 I I "" ""::',,'(' 20.1.41' I"T)e" amount of available reserves or other Assoeiation funds, alillo~~ the Board is nQt'~ l,Jired to use any reserves or other Association fimds; and . "111111 1.1 III 20.1.5 The amount, if any, by which the estimated cost of repair exceeds expected insurance proceeds and available reserves or other Association funds and the amount of the Assessments that would have to be made against each Unit to cover the excess costs. -? Section 20.2 Notice of Damage. The Board shall promptly, and in all events within 60 days after the date of damage, file a proof of loss statement with the insurance company if the loss is covered by insurance' and abide by an terms and conditions of its insurance policies, unless the Board detertilines it would not be in the best interest of the Association to file a proof of loss. The Board shall then provide each Owner with a Written notice describing the damage and summarizing the initial Board determinations made under Section 20.t. If the damage affects a material portion of the Condominium, the Board shall also send the notice to each Mortgagee; and if the damage affects a Unit, the Board shall send the notice to the Mortgagee of that Unit. If the Board fails to do so within the 60-day period, any Owner or Mortgagee may make the determinations required under Section 20.1 and give the notice required under this Section. Section 20.3 Definitions: Damage. Substantial Damal!e. Repair. Emerl!:encv Work. . As used in this Article: 20.3. 1 Damage shall mean all kinds of damage, whether of slight degree or total destruction. 20.3.2 Substantial Damage shall mean that the estimated Assessment determined under Subsection 20.1.5 for anyone Unit exceed 10% of the full, fair market value of the Unit before the damage occurred, as determined by the then current assessment for the purpose of reat estate taxation. 20.3.3 Repair shall mean restoring the improvements to substantially the condition they were in before they were damaged, with each Unit and the Common .Elements 09/29/04 2:15 PM -27- SEADOCS-#~343937-.IO.Dccl.ral... .B__O.......... _("......DOt. I I III - t I I I PflClrIC H~ TITLE DECl 163.88 200409300447 Pag.: 33 of 45 89138/2884 83:47P Kits<\~ Co. ~R having substantially the same boundaries as before. Modifications to conform to applicable governmental rules and regulation~ ~ available means of construction may be made. 1111 II. 1111111 ~ 20.3.4 Em~i~tW~:W~rk shall mean work that the Board deems reasonably necessary to avoid further #~a~b o~ 'sUbstantial diminution in value to the improvements and to protect the Owners frof:Jl~~ili~~from the condition of the site. . 1"'11 1,,,1 I S . 20 IIE'~i!~.J' fR . ectlon .4 ,I I 1-'run 0 eparrs. II III I I I 111,'11'11 III ,1'1 . ,~~:41~,,':1 The Bo~d!,shall promptly repair the damage and use the available insurance pr~~i\','~eiefor as"PrtlVi~!J1 in Section 19,8. If the cost of repair exceeds the anticipateq, ipS.utat1c~ proceed~, ankJ.1available reserves or other Association funds, the Board shall iIl1-p~d'~~~9sments ~gjUp.~~,~~, Units in proportion to their Common Expense Liabilities in an aggreil.!"te:amount s,v;tl;.c,(elhtltd pay the excess costs. I. I If'!tlll II I I lilT r . .1'1, '.,II.:'I,lt I I'" .111111 I","":' I' 20.4.2 1,,"T.hP Board shall have the authority to employ architects and enginbe9.'s',' advertise for bi~. let contracts to contractors and others. and take such other action as is reasonably necessary to make the repairs. Contracts for the repair work shall be awarded when the Board. by means of insurance proceeds and sufficient Assessments. has provided for paying the cost. The Board may authorize the insurance carrier to make the repairs if the Board is satisfied that the work will be done satisfactorily, and if such authorization does not contravene any insurance trust agreement or requirement of law. ....., 20.4.3 The Board may enter into a written agreement with a reputable financial institution, trust, or escrow company in which that institution or company shall act as an insurance trustee to adjust and settle any claim for casualty loss in excess of $50,000, or shall collect the insurance proceeds and carry out the provisions of this Article. Section 20.5 DamalZe Not Substantial. If the damage as detennined under Subsection 20.3.2 is not substantial, the provisions of this Section shall apply. 20.5.1 Either the Board or the requisite number of Owners, within 15 days after the notice required under Section 20.2 has been given, may but shall not be required to call a special Owners' meeting in accordance with Section 12,4 and the Bylaws to decide whether to repair the damage. 20.5.2 Except for emergency work, no repairs shall be commenced until after the IS-day period and until after the conclusion of the special meeting if-such a special meeting is called within the 15 days. 20.5.3 A decision to not repair or rebuild may be made in accordance with Section 19.8. Section 20.6 Substantial Damage. If the damage determined under 20.3.2 is substantial, the provisions of this Section shall apply. 09/29/04 2:15 PM - ?R_ . . SfiADQ("S.f~0l4J917-.IO-Dcclantion Bremeno._G....._ Cemcr.D()(' II I. . I I! I I \ I PAClrIC NIl TITLE . OECL:tS3. 00 Subsection 200409300447 Page: 34 of 45 89/38/2884 83:47P Kitsap Co. IJR 20.6.1 The Bo~d,~hall promptly, and in all events within 60 days after the date of damage, call a special O}lr'ller~'m~~ting to consider repairing the damage. If the Board fails to do so within 60 daY~l 'tl1e~'\tlQ.tWithstanding the provisions of Section 12.4 and the Bylaws, any Owner or first,~q~a~e'e'bf a Unit may call and conduct the meeting. . (,,:1 ... "1111 20.6.2,"'1 Ex~~'for emergency work, no repairs shaU be commenced until the conclusion ofth~'~eCjlal,(j)tVners' meeting. II I II I. '. 111,'1,,1.,1 'II IIII ,:1~;613I,':1 At the ~pd~:ml meeting, the following consent requirements will 1111,111.1 I '"I;lhll I. " III II ,I I I, II I I"" ", ,I I' 1'1 I I,' II ' I I . I . I I I I, ,11, 'I Ti. II ',":', 1.1 ,I 20.6.~:, ,,,,:,t.[J~ Owners shall be deemed to have elected to repair the d~a~e.';~ *'r,~~~aance \"j~~, P,.~I ~n~ina1 plan unless the Owners of at least ~O% o~ the total votll)~ IPQ~~f of the qbl'd?mmmm other than that held by .the Declarant, mcludmg every OWny'f,~n 'Unit which"wiU,lnot be rebuilt and every Owner of a Unit to which a Limited Comitton'Element which 'will not be rebuilt is allocated, have given their written consent not to repair the damage, apply: 20.6.3.2 The unanimous consent of all Owners will be required to elect to rebuild in accordance with a plan that is different from the original plan. ., - ) 20.6.3.3 In addition to the consent by the Owners specified above. any election not to repair the damage or not to rebuild substantially in accordance with the original plan will require the approval of eligible holders of first mortgages on Units that have at least 51 % of the votes subject to eligible holder mortgages. 20.6.3.4 Failure to conduct the special meeting provided for under Subsection 20.6,1 Within 90 days after the date of damage shall be deemed a unanimous decision to repair the damage in accordance with the original plan, Section 20.7 Effect of Decision Not to ReDair. In the event of a decision under either Subsection 20.5.3 or Subsection 20.6.3 not to repair the damage, the Board may nevertheless expend so much of the insurance proceeds and common funds as the Board deems reasonably necessary for emergency work (which emergency work may include but is not necessarily limited to removal of the damaged improvements and clearing, filling, and grading the land), and the remaimng funds, if any, and the property shall thereafter be held and distributed as provided in Section 19.8. Article 21. CONDEMNATION. Section 21.1 Consequences of Condemnation: Notices. If any Unit or portion thereof or the Common Elements or Limited Common Elements or any portion thereof is made the subject matter of any condemnation or eminent domain proceeding or is otherwise 09/29f042:ISPM -29- SEADOCU5OJ4)9)7-.10-Docl_ion.8reonert.n.Go........nt CeDler.DOI' '11" 111\ U\ .\\\ \ \ 1 \ : l[ ;:!~::: I III II DECL 583,98 Kltnp Co. \lA PRCIFIC HW TITLt . , \ - ,. .) sought to be acquired by a condemning authority, notice of the procee~ing or proposed acquisition shall promptly be give~'tp each Owner and Mortgagee and the provisions of this Article shall apply. ,I", "',"'."'l " 1,'1111111,1' I I ,'I II,' Section 21.2 po~~~loflf1~~rtiey. Each Owner appoints the Association as attomey- in-fact for the purpose l'ofil.rJrP~nling the Owners in condemnation proceedings and negotiations, settleme~fs.l~cI,lagreements with the condemning authority for acquisition of Common Elements"b~,~q.~:r.att thereof, from the condemning authority. The Board may appoint a trustee 'olatt'pm bEllialf ofth~ Owners in carrying out the foregoing functions in lieu of the Associati.Qn~I'SbQ(I1d the A~lIo~~tion not act, based on their right to act pursuant to this Section, the qliffeoN.d:()~ners m~l~~iltliV'lijpally or jointly act on their own behalf, . I ...', 'l'll:r I' 1'1 I I" II I I ' . I , ~d~idn'''~ I~ Con ti",,'1 .~ of a Unit. If a Unit is acquired by condemnation, or if I III I . .hl'" part of,~, Untt ~ acquired, cnh1iemnation.leaving the Unit Owner with a remnant of a Unit '=-1 I rr III I I I 'TiTt.l. wqi~li'q18YIAOt practic.1W'qJllaw 'uny be used for any purpose pennitted by this Declaration, the'aWI,{tlmust comperl$~tBl~e Owner for the Owner's Unit and its appurtenant interest in the ComrHon'Elements, whet'ttt'r or not any Common Elements are acqUired. The proceeds from the condemnation of a Unit shall be paid to the Owner or lienholder of the Unit, as their interests may appear. Upon acquisition, unless the decree otherwise provides, that Unit's Allocated Interests are automatically reallocated to the remaining Units in proportion to the respective Allocated Interests of those Units before the taking, and the Association shall promptly prepare, execute, and record an amendment to this Declaration reflecting the reallocations. Any remnant of a UnH remaining after part of a Unit is taken under this Section is thereafter a Common Element. Section 21.4 Condemnation of Part ora Unit. Except as provided in Section 21.3, if part of a Unit is acquired by condemnation, the award must compensate the Unit Owner for the reduction in value of the Unit and its appurtenant interest in the Common Elements, whether or not any Common Elements are acquired. The proceeds from the condemnation awarded to the Unit Owner shall be paid to the Owner or lienholders of the Unit, as their interests may appear. Upon acquisition, unless the decree otherwise provides, (a) that Unit's Allocated Interests are reduced in proportion to the reduction in the size of the Unit and (b) the portion of the Allocated Interests divested from the partially acquired Unit are automatically reallocated to that Unit and the remaining Units in proportion to the respective Allocated Interests of those Units before the taking, with the partially acquired Unit participating in the reallocation on the basis of its reduced Allocated Interests. Section 21.5 Condemnation of Common Element or Limited Common Element. If part of the Common Elements is acquired by condemnation, the portion of the award attributable to the Common Elements taken shall be paid to the Owners based on their respective interests in the Common Elements, or to lienholders, as their interests may appear. Any portion of the award attributable to the acquisition of a Limited Common Element must be equally divided among the Owners of the Units to which that Limited Common Element was allocated at the time of the acquisition, or to lienholders, as their interests may appear. If the Board determines that a particular Owner's interest in the Common Elements diminished 09/29/04 2:15 PM -30- SEAD()('S-NSUJ4JQ17..IO.0ec......ion .0......rtoo_00.."'....o, e....r.DOl. II ~\ -. '111\ I " \ 1\ I'. 200409300447 Page: 38 of 4S I I .. 11913fl12SS4 83: 47P , PACIFIC H\.l TIT\.[ . CECL .s3.88 Kitsap Co, \.lA ..., with respect to other Owners, by the acquisition of a Common Element, the Declaration may ~e amended to adjust that Owner'~'C,ommon Expense Liability allocation, or to remove the allocation ofa Limited Common,~remel'ltlto that Owner's Unit, as the case may be. .: 1,111.:111.11 I I ,II I11I Section 21.6 Reco~' ~tlofdind Re air. Any reconstruction and repair necessitated by condemnation shall ~, '~~~.pl-~ I Y the procedures specified in Article 20, I' 'II 1,,,1 I . 11,.11.11:1111111' ,I II I II 'I Article 22i"'M$Nm'NTS. ,"I " ,', I, " I I I, 1.111 I'll 1111'11 . Sectip~~,l':'1 hi Genef.ill;';:'Bap,~, Unit has a non-exclusive easement in and through each other;,{9"p~t anthl1.e CoIllll1qrl,a~d Umited Common Elements for all support elements and utility, widng,'heat, and sefVi~:,~1l1ffients, and for reasonable access thereto, as required to effectu&te~d'~o~tinue D,;dn6:'hperation ofthe Condominium as set forth herein. I I', I III I f' ~I ..11 I I I I, I, I( I 1111 I II III . II I, I, I, II ";"~L.._r~LL.___j._ 1',,",~e4:tion 22.2 ~ To the extent not provided by the definition of "Unit" in th~\Ij)eclaration and ih"the Condominium Act, each Unit and all Common and Limited Common Elements are hereby declared to have an easement over all adjoining Units and Common and Limited Common Elements for the purpose of accommodating any present or future encroachment as a result of engineering errors, construction, reconstruction, repairs, settlement, shifting, or movement of any portion of the property, or any other similar cause, and any encroachment due to building overhang or projection. There shall be valid easements for the maintenance of the encroaching Units and Common and Limited Common Elements so long as the encroachments shall exist, and the rights and obligations of Owners shall not be altered in any way by the encroachment, provided, however, that in no event shall a valid easement for encroachment be created in favor of a Unit if the encroachment was caused by the willful act with full knowledge of the Owner. The encroachments described in this Section shall not be construed to be encumbrances affecting the marketability of title to any Unit. Section 22.3 Easement Specifically Reserved bv the Declarant. Th~ Declamnt reserves an access easement over, across, and through the Common Elements of the Condominium for the purpose of completing any unfinished Units or other improvements, exhibiting and preparing Units for sale, making repairs required pursuant to any contract of sale, and discharging the Declarant's obligations or exercising Special Declarant Rights~ Section 22.4 Utility Easements Granted bv the Declarant. The Declarant reserves the right to grant to each company or municipality providing utility services to the Condominium or to the Units in the Condominiwn an easement for the installation, construction, maintenance, repair, and reconstruction of all utilities serving the Condominium or the Owners, including, without limitation, such utility services as water, sanitary sewer, storm sewer, electricity, cable television, and telephone, and an easement for access over and under the Common Elements of the Condominium to the utility service facilities. 09129/042:15 PM S"...DOCS-IISD30937..IO-D.d.,.'ioR.Dremcnon.O............U:._.lXIC -31 ~ tit I. I PACIrIC H~ TITLE . I \- 200409300447 Pag~: 37 of 45 89/38/2984 B3:47P S63.00 Kitsap COI ~A . DECl. Section 22.5 Emergencv Easement for GaralZe Unit. The Owner of the Garage Unit and its tenants, employees, agent~'8pd invitees shall have any an easement for ingress and egress in case of emergency ove.Ii, aGOOssland through the stairways, elevators, corridors and lobbies of the Building and sip,.e\v41~!l:Wf~ grounds of the Condominium. .! 'I, I 1111,' I I I . ,111'1'1 ',I I . Article 23. PRR~6ili&'~'~OR SUBDIVIDING OR ALTERING UNITS. .111 I. 1;11.,U'. ,I ,I I I, I. . Section2~Jl'lll, ubdi~sion Units. Units shall not be subdivided either by agreement or legal:p~b(j~edings, e'f'" d as provided in this Article. 1'11,'11 II I 1,.;11'11 II II 'II I. .1 I I, II Ii I 1;"'23:11:~ An I~ler 'ihay propose subdividing the Owner's Unit by submitt\~k,'th~:~fPPOSal iqll~p;t'll~"to aU other Owners and Mortgagees of the Unit to be subdi~ip~dl::~<i to the ~j:)4td.,,:rr'le'proposal must include complete plans and specifications fo~,,,,ctr~~lshing thel'f\ubdivisiln and proposed amendments of this Declaration and the . Surv4,.t'tfap and Plans 'w.hie~ amendments shaH be executed by the Owner or Owners of the Unit to'b~ subdivided up<m the approval of the Mortgagees of the Unit and the Board. The amendments shall assign an identifying number to each Unit created, and reallocate the Allocated Interests and liabilities fonnerly allocated to the subdivided Unit to the new subdivided Unit. The Board may not withhold its approval unless it detennines that the structural integrity of the Building woul~tbe.adversely affected by the proposed subdivision. The Owner ofthe Unit to be subdivided shall bear all costs of the subdivision. - \ ":'J 23.1.2 This Article shall not restrict the right of the Owner of a Unit to make such changes as the Owner deems necessary or appropriate to partition the Unit in connection with the leasing thereof, provided that the prior written approval of the Board shall be obtained before any work affecting the structural integrity of the Building is undertaken. Section 23.2 Minor Alterations~ Hard Surface Flooring. No Unit may be altered in any way except in accordance with this Article. An Owner may make any improvements or alterations to the Owner's Unit that do not change the structural walls, affect the structural integrity or mechanical or electrical systems or lessen the support of any portion of the Condominium. An Owner may not change the appearance of the Common Elements or the exterior appearance of a Unit without permission of the Association pursuant to the procedures of Section 23.4. Section 23.3 Adioinin~ Units. After acquiring an adjoining Unit or an adjoining part of any adjoining Unit, an Owner may, with approval of the Board pursuant to Section 23.4, remove or alter any intervening partition or create apertures therein, even if the partition in whole or in part is a Common Element, if those acts do not adversely affect the structural integrity or mechanical or electrical systems or lessen the support of any portion of the Condominium. Removal of partitions or creation of apertures under this subsection is not a relocation of boundaries. The Owner's proposal to act under this Section shall be submitted to the Board and shall include the plans and specifications for the proposed removal or alteration. 09129/04 2: I 5 PM SEADO<'S.,.s034l9)7.y I O.l)eclar;allan_Bremcnon_ (;owmm=nl_C'eMa.DCK' -. ')- PACIfIC HU TITLE DECl t63, 8S 200409300447. Pa~; 38 of 45 89/3812884 S3:47P Kilsap Co. UA I I . Section 23.4 Substantial (Alteration. A proposal that contemplates substantial alteration of one or more Units.iB,~i:t~ec(to approval by the Board. The Board shall approve an Owner's request under th~ S~i(jrl: ~ithin 30 days of receipt of plans and specifications, unless the proposed altera~\~Il''d,oes''hbt comply with Section 23.3 or impairs the structural integrity or mechanical 9rl.e!~p~1 systems in the Condominium. The Board may also retain, at the Owner'~:'tfkpenkel,"an architect or engineer to review the plans and require evidence satisfactoo/'J'd.'i~'tp.at"all permits necessary for the work have been obtained. The failure of the Bqa~I't91 aO't1 upon a"~quest within such period shall be deemed approval thereof. The BQ'ar:d'~l' establis40'fdaipnable ho~rs and conditions for performance of work within .Units ,""':'\ I: . ,1";""" I, i .. II, " ,I I II ',I I I ", ','I' I, '.1 " J~~ I I .1 I I S.~ldn'23.!5 ~ure::~~er ApDrovaI. Upon approval of a proposal under this I ".1 1,11111 I I Artic~e..:~hq.ow,ner maki,Qg,it ~,.~proceed according to the proposed plans and specifications; pr<?;vi,d~~:th~fihe Boaqi,m~y.,in,~ts discretion require that the Board administer the work or that"p'rQ~isions for thel~mk~btion of other Units or Common Elements or that reasonable deadllhcs'for completion of 'the work be inserted in the contracts for the work. The changes in the Survey Map Plans and Declaration shall be placed of record as amendments thereto. \ 7J Section 23.6 Relocation of Boundaries -- Adjoining Units. The boundaries between adjoining Units may only be relocated by an amendment to the Declaration upon application to the Board by the. Owners of those Units. If the Owners of the adjoining Units have specified a reallocation between their Units of their Allocated Interests, the application must state the proposed reallocations. Unless the Board detennines within 30 days, that the reallocations are unreasonable, the Association shall prepare an amendment that identifies the Units involved, states the reallocations, is executed by the Unit Owners, contains words of conveyance between them, and is recorded in the name of the grantor and the grantee. The Association shall obtain and record survey maps or plans complying with the requirements. or RCW 64.34.232(4) necessary to show the altered boundaries between adjoining Units and their dimensions and identifying numbers. The Owner or Owners benefited by a reallocation of Unit boundaries shall bear all costs associated therewith in proportion to the relative benefits to each such Unit as determined by the Board or as the Owners of such Units agree. Article 24. AMENDMENT OF DECLARATION SURVEY MAP AND PLANS. ARTICLES. OR BYLAWS Except in cases of amendments that may be executed by the Declarant under the Declaration or the Condominium Act, the Declaration, the Survey Map and Plans, the Articles and the Bylaws may be amended only with the approval of Owners holding 67% of the voting power in the Association and, if the amendment would have an effect on the Garage Unit, the approval of the Owner of the Garage Unit. In addition, the approval of Eligible Mortgagees of Units to which 51 % of the votes allocated to Units subject to Mortgages held by Eligible Mortgagees are allocated shall be required for any amendment to the Declaration, Survey Map and Plans, Articles or Bylaws for which notice to Eligible Mortgagees is required under Section 09/29/04 2:15 PM ~33- SF.Al>OC'.s.~SO:l439]7.v)o.-DecI""tion. D,"""".. G...mmcnt_CenlCl.DOt . I . 1 PACIfIC NU TITLE DECL t63 .98 200409300447 Page-: 38 of 45 89/38/2884 83:47P Kitsap Co. IJA I I 26.2. An Owner or a Board member may propose amendments to this Declaration or the Survey Map and Plans, the Articles or thel~ylaws to the Board, With the approval of the Board, the proposed amendment shall bel'~ubm,i~h,d to the members of the Association for their consideration. Amendments ,ni~)f;~:"dbpted at a meeting of the Association or by written consent of ~he requisite .n~ffit?~,rl,Qf' fetsons e~titled to vot~, after n~tice has been give~ to all persons entitled to recel~e,nb~~I~11 The notice of a meetmg at which an amendment IS to be considered shall inclu~e, ~)~'f of the proposed amendment. Upon the adoption of an amendment to the D!,~I~dt1nlor the Survey Map and Plans, it shall become effective when it is recorded or filed i~:th.kl'l'eal'ptoperty ~~fords in the county in which the Condominium is located. The amendrnent:'~h,iU~"b,blindexed in,~ name of the Condominiwn and shall contain a cross- reference by"reoordiq.g humber ,to;;th~ Declaration and each previously recorded amendment thereto. s~hl;am'bi~ents sh~li ~,lpr~~red, executed, recorded and certified on behalf of the Associatioq."t1,Y.'tlh}l officer Ci1l,~:.{\~~ociation designated for that purpose or, in the absence of desi~,o~{:,t:>ftne presjd~fll,,?pl1e Association. No action to challenge the validitY of an am~li~~nl iiHopted b}1't~e ~~lation pursuant to this Article may be brought more than one yealr,~~:tll.e amendm~tlM ~corded. An amendment to the Articles shall be effective upon filing1tner amendment wi'tnrthe Secretary of State, An amendment to the Bylaws shall be effective upon adoption. No amendment may restrict, eliminate, or otherwise modify any Special Declarant Right provided in the Declaration without the consent of the Declarant and any Mortgagee of record with a security interest in the Special Declarant Right or in any real property subject thereto, excluding Mortgagees of Units owned by persons other than the Declarant. ...., Article 25. TERMINATION OF CONDOMINIUM. Section 25.1 Action ReQuired. Except as provided in Article 20 and Article 21, the Condominium may be terminated only by unanimous written consent or agreement of the Owners of all Units and the consent of Eligible Mortgagees of Units to which. 51% of the votes allocated to Units subject to Mortgages held by Eligible Mortgagees are allocated and in accordance with the Condominium Act. An Eligible Mortgagee who receives a written request to consent to termination who does not deliver or post to the requesting party a negative response within 30 days shall be deemed to have consented to such request, provided the request was delivered by certified or registered mail, return receipt requested. Section 25.2 Condominium Act Governs. The provisions of the Condominium Act relating to termination of a condominium contained in RCW 64.34.268, as it may be amended, shall govern the termination of the Condominium, including, but not limited to, the disposition of the real property in the Condominium and the distribution of proceeds from the sale of that real property. . 09/29/04 2:15 PM SEAOOCS--NS03.u937~"lO-Occlantioo_Bremenol'..Ciovcmmc:nl_Cft1lcr.DO(, -34- _ n 111. l\. .. PACIFIC H~ TITLE , . , -, "\1 .' 200409300447 Page' 4S of 45 I 89/3812884 83'47P - OECL 183.99 Kitsap Co. IlR \ ---; Article 26. NOTICES. . 1''0, Section 26.1 Form andl,,Qel,Nety of Notice. Unless provided otherwise in this Declaration, all notices given, U~'ili~N'>rovisions of this Declaration or the Bylaws or rules or regulations of the Assoc~~liplJ., stiall' be in writing and may be delivered either personally or by mail. If delivery is m~,~~~~.il, the notice shall be deemed to have been delivered upon being deposited in the ~~~a4,Stntes-mail, first class, postage prepaid, addressed to the person entitled to such noti~e:at't~lmOst recent address known to the Board. Notice to the Owner of any Unit shall bel~~l~~~,ifmaileq,tp the Unit ifno other mailing address.has been given to the Board. MaiUng."d9tesses ma~l~ !changed by notice in writing to the Board. Notices to the Board Sl)SU"~c:: ~vJn to th~IJ!j~~la}a\lt untH the Transition Date, and thereafter shall. be given to tlw ~f~s'idti1tlor secre~~fthe'Association:. I '. I 'III I 1'....1:11 Ii ,11..:11 II: 1111111 I I 1.1. I, 11.~,ea~~)li:26.2 Np1i$~J~ fh'gible Mortgagees. An Eligible Mortgagee is a Mortgagee th~~' h.,s:f ~le,fwith the ISCfC1ltali}' ,of the Board a written request that it be given copies of the not10~So,USled below. Tb~I,\'eguest must state the name and address of the Eligible Mortgagee and tile'Identifying Numoeror address of the Unit on which it has (or insures or guarantees) a Mortgage. Until such time thereafter that the Eligible Mortgagee withdraws the request or the . mortgage held, insured, or guaranteed by the Eligible Mortgagee is satisfied, the Board shall send to the Eligible Mortgagee timely written notice of (a) any proposed amendment of the Declaration or Survey Map and Plans effecting a change in (i) the boundaries of any Unit, (ii) the exclusive easement rights, if any, appertaining to any Unit, (iii) the interest in the Common Elements or the liability for Common Expenses of any Unit, (iv) the number of votes in the Association allocated to any Unit, or (v) the purposes to which a Unit or the Common Elements are restricted; (b) any proposed termination of condominiwn status, transfer of any part of the Common Elements, or tennination of professional management of the Condominium; (c) any condemnation loss or casualty loss that affects a material portion of the Condominium or that affects any Unit on which an Eligible Mortgagee has a first mortgage; (d) any delinquency which has continued for 60 days- in the payment of Assessments or charges owed by an Owner of a Unit on which an Eligible Mortgagee had a mortgage; (e) any lapse, cancellation, or material modification of any insurance policy maintained by the Association pursuant to Article 19; (f) any proposed action that would require the consent of a specified percentage of Eligible Mortgagees pursuant to Article 20, Article 23, or Article 24. Article 27. SEVERABILITY. The provisions of this Declaration shall be independent and severable, and the unenforceability of anyone provision shall not affect the enforceability of any other provision, if the remaining provision or provisions comply with the Condominium Act. 09129/04 2:15 PM S EADOCS-f#,O.l4l917-...1 O-Dc:cllratian_lhnnerton _ OO'Yemment emltr. DOC \1- ". ., .'\--\\.' \t-,. 200409300447 Pagl' 41 of 4S . . 89138/2884 83:47P lilFic'; 'rn..E - -- oca. 063.00 Kitsap Co. '" Article 28. EFFECTIVE DATE. 1'\ This Declaration shall tak.~'l;ffe,ct.n:i*>n recording. " 1,11111', .1 I I II 'I" . ~ II. I I, ,I. .11 II I, I I , Article 29. ~N~:~ISURVEY MAP AND PLANS. ,', I I I " 'II, '11 The Survey JY1~~'C\hq.p.rans were filed with the Auditor of Kitsap Coun!;', Washington, simultaneously wi.ili 'tt{~ ;teeorlling of this Declaration under File No. .;lOCLf{)Q3V(]{lff), in Volume _ of,C~~'do;J.lliniums, pagesl_ through_. .,0111,11 I. ,111;1"111 I, I .. I' , ,I, 1 I I ",'1"1,1 I' 1'1 I I.' II, I I I I, I ! M~31M, II<\SSIG~N"I 'By DECLARANT. I Illd. 'IIIV.. I II 1.lr II 'II' . I I I (1'.111 .111,' '111 ,"" ',~e ,lpeclarant ~~~, the right to assign all or any of its rights, duties, a,nd obligations crea~(t',tmtter this Decl~oh, subject to the advance written approval of the Board, which appro~m 'shall not be mWlu~ably withheld. DATED: o/~ok,r (I ' \ -, KITSAP COUNTY CONSOLIDATED HOUSING AUTHORITY By~~J.~ Its x utive Director STATE OFW ASHINGTON ) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that Nonnan S. McLoughlin signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Executive Director of KITSAP COUNTY CONSOLIDATED HOUSING AlITHORITY to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. dayof ~kmW , 1.aN ~L- L - -4[N-l1t.- ,....., (Signature of Notary) --I.. SW-""A- 4..... ~~IJ(E (Legibly Print or Stamp Name of Notary) Notary public in and for the state of Washington. residing at bib ~1 b~ My appointment expires '~(;,y~'1 I "llfJt;;. . 09/29f04 2:1S PM -36- SF.r\DOC!\-N~0J439] 7.v1 D.DeelaralionJ~m1lCrtDJI_(jO\lflllmmt...Cm1(f.D()(' Dated this ..:Jc.IU,- "",.UIiUII"I!'f'. . . . ....... .... 'I . I I, PACIfIC NU TITLE -, '1 . .. 200409300447 Piger 42 ot 45 89/3812884 83'4iP Kitsap Co. III . DEGL SS3.88 SCHEDULE A 1111 BREMBl~:'fQN'OOVERNMENT CENTER ': 1':''A~dNDOMINIUM . ,III" '. 1,1.11,1 II I I I ,11111, I I I I' ,II ","111 Description orLand I ..'I II ,', I I I I " .11, 'II II11 I. 1.11'111,1 . ',tl,I:.III,111 111,11,1 III III ,_II , " I , I ': I,,",...: I I'" 'II I LOTS 4 THaOu'Qa,IIIAND TJIE:WI}ST HALF OF LOT 12; LOTS 33 THROUGH 38 AND LOT,,3'~O~;XCEPT THE fi~122''FEET; LOTS 40 THROUGH 45; ALL IN BLOCK 5, TO~~PF.lB.~Jt'MERTQN~'I,t~PQRDING TO PLAT RECORDED IN VOLUME 2 OF PLA ~~~:r.~?R.:30, IN ~l:r$~r., ~PIDHY, WASHINGTON; ,1111 111111'11 I 1111 .111 111 TOCSWr.tmR WITH THA"r,lPoRTION OF V ACA TED ALLEY REMAINDER TO SUCH LOTSl'AoS'GRANTED IN CITY OF BREMERTON ORDINANCE NO. 3695 AND 4854, RECORDED UNDER AUDITOR'S.FILE NO. 8204300079 AND 200307210147; TOGETHER WITH THAT PORTION OF PROPOSED VACATED ALLEY SITUATED IN FRONT OF AND ADJACENT TO LOTS 9,10,11,12,33,34,35,36; 37, 38 AND 39 DESCRIBED HEREIN; \ ..., AND TOGETHER WITH A RECIPROCAL EASEMENT FOR PEDESTRIAN INGRESS AND EGRESS AS DESCRIBED IN INSTRUMENT RECORDED UNDER AUDITOR'S FILE NUMBER 200303210071 09/29/04 2: J 5 PM 503439) 7 .09 . . .I " PACIFlC HU TITLE \- I 1.-- 200409300447 fag.: 43 of 45 - 89!3&/2&&4 &3:47? DECl t63.ee Kitsap Co, IlR SCHEDULE B 11111 BREMB~"ON'QOVERNMENT CENTER .1 1111. I I '. 1;'1 A:~()NDOMINIUM . ~ r '. I I .1.,1 II " I I I I" :,:I,,:;~prl Data: Allocated Interests ,"'II I, I I 11111'1,11:11.::.11 .1111:.111,111 ",I,. I III 1,1 III t,:,IIII,"Unit II 1'1 II' ,101111 I I, I .. j' , I I ", ",I I I, ',I, '1,1 111111:111'::111 I":', 'II" , I I '.'11 'I'" .1 II '. I, '. 1'1,111.:1 I I 1111111' , , ...., .,'1 I"" !, I Level "."1"1 II ,I II II, II Area Allocated Interests II 7.00 6.66 6.79 20.37 16.57 3.11 3.03 7.01 6.30 3.24 . 19.92 100.00 "For the purposes of interest in Common Elements, Common Expense Liability and voting, allocations are based on the fonnulas provided in Section 5.4. 09/29/04 2: 15 PM lO14J9.17 09 '1"1,1 Gara~e:, 1:1 ,I ',. P2 30,381 ,I l" I I I 1 4,389 I I I.'. I. I II I ,,,,~ ""II' 2 4,477 II'"~I''''' 3 13,427 I 'ij I 4 10,922 " , '4\3 4 2,049 SA 5 1,997 5B 5 4,621 5C 5 4152 5D 5 2136 6 6 13,141 TOTALS \ I --:11; II ..1.1 PRCIfIC HU TITLE \- -'''\ -.. 200409300447 Page: 44 or 45 J L ' ,89/38/2884 e3'47P OCCL tS3.8G Kitsap Co. \.IA SCHEDULE C BREME~~O~'tpOVERNMENT CENTER ':, ":"'A:GONDOMINIUM . . ~ IIII I 1,11,1,11 . 111111.1. I . I' ,,,I ','Jl,iifirited Common Elements I 1,"11.. "'II I, I I I, II II . IIII I. 1,11'11111 I II I I ]. The Limited C~9rt E~h1ents altqcated to the Office Units jointly (the Office Limited Common Elements)'qNlw follows:",,!,1 . '. I f III I. I 1'11111 I "1,11'11 I II II'.' ,I I '. II 1.1 I I; Tnl:! 'tobbies, comdpIj and 'stairways on the Office Levels of the Building. 1111,11 1111 I ,1.....:1, Ii 1,:i':i;I"':::rH~ elevamt, lp'~la~lding. I, I,II( 1:11111 ,I I I IIIT-.l . I" I I.'. J , 1111 ,111111 \,:",:l~3t" The gro~~waJkways, driveways and parking areas of the Condominium, I""," except the' 'walkway along the,western side of the Building and the Limited. Common Element driveway, trash collection area and parking areas allocated to the Garage Unit. 1.4 Parking level PI and the loading dock. \ ....., / Any other areas shown as Office Limited Common Element (OLeE) on the Survey Map and Plans. 2. The Limited Common Elements allocated to the Garage Unit are the driveway, trash collection area and parking spaces on the west side of the Building, as shown on the Survey Map and Plans. 1.S 09129/04 2: 15 PM 50343937.09 !I--~ L PRCIFIC HU TITLE . \--- .-. ......,.-. .. ~~~4~~~?~544 7 ,. _ _..._n ___ ___ 8913812884 fl3:47P OECl $83,&& Kitsap Co. lolR .