20231222Answer to Complaint.pdf

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 1
4861-7625-8453, v. 2
T. Hethe Clark, ISB No. 7265
Preston B. Rutter, ISB No. 11079
CLARK WARDLE LLP
251 E. Front Street, Suite 310
Boise, ID 83702
P.O. Box 639
Boise, ID 83701
Telephone: [phone]
Facsimile: 208/388-1001
[e-mail]
#21709.48
Attorneys for Respondent
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
ARROWROCK RANCH ASSOCIATION,
INC., an Idaho non-profit corporation,
Complainant,
vs.
MAYFIELD SPRINGS WATER
COMPANY, INC., an Idaho corporation,
Respondent.
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Case No. MSW-W-23-01

RESPONDENT’S ANSWER TO
FORMAL COMPLAINT OF
ARROWROCK RANCH
ASSOCIATION, INC.
COMES NOW the Respondent, Mayfield Springs Water Company, Inc., (“Respondent”),
by and through its counsel of record, Clark Wardle LLP, and by way of answer to the Formal
Complaint of Arrowrock Ranch Association, Inc., (“Complaint”) filed in the above-captioned
action, now admits, denies, and alleges as follows:
GENERAL DENIAL
Respondent denies all allegations, assertions, claims, and other statements (collectively,
“Statements”) not herein specifically admitted. Respondent makes a general objection to all
Statements that call for legal, rather than factual, conclusions. Respondent reserves all rights to
RECEIVED
2023 DECEMBER 22, 2023 3:23PM
IDAHO PUBLIC
UTILITIES COMMISSION

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 2
4861-7625-8453, v. 2
amend this or any other answer or denial stated herein once it has had the opportunity to
complete discovery regarding any of the Statements in the Complaint. Except as specifically
otherwise noted below, Respondent denies each and all Statements in the Complaint.
I. FACTUAL ALLEGATIONS
1. With regard to the allegations contained in Paragraph 1, Respondent admits.
2. With regard to the allegations contained in Paragraph 2, Respondent objects to the
factual allegations therein as they call for legal conclusions; to the extent a response is required,
but without waiving its objection, Respondent admits.
3. Respondent admits the allegations contained in Paragraphs 3 and 4.
4. Respondent denies the allegations contained in Paragraph 5. As an example, prior
to the development of Arrowrock Ranch Subdivision No. 2, the Department of Environmental
Quality for the State of Idaho (“DEQ”) reviewed the plans and specifications for the
development. Upon its review, DEQ concluded “The plans and specifications for the subject
property appear to meet state of Idaho standards, and are approved” (emphasis added) (“DEQ
Approval Letter”). A copy of the DEQ Approval Letter is attached herewith as Exhibit-A.
5. With regard to Paragraph 6, the property subject to the referenced Declaration is
referred to herein as “Arrowrock.” In connection with Arrowrock’s development, several sets of
restrictive covenants were recorded against Arrowrock. The set of CCRs referenced in
Paragraph 6 was the Third Amended and Restated Master Declaration of Covenants, Conditions
and Restrictions for Arrowrock Subdivision (Instrument No. 111059307) (the “Current CCRs”)
and was executed solely by Complainant. Respondent is not a party to said document, though
Respondent acknowledges this language in CCRs that existed prior to the amendment and
restatement ostensibly provided by the Current CCRs. Without waiving the foregoing, the

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 3
4861-7625-8453, v. 2
Current CCRs limit the level of service required by the Water System “to provide water for
culinary, other ordinary domestic household use, and irrigation as provided in Article [V]III.”
Section 8.2 of Article VIII mandates an irrigation restriction which does “not permit some
Building Lots in the subdivision to be fully irrigated.” The restricted lots are reflected on Exhibit
B to the Current CCRs, a true and accurate copy of which is attached hereto as Exhibit B. Upon
information and belief, Complainant is not adhering to said use restrictions, which is
exacerbating the pressure issues alleged by Complainant.
6. Respondent admits the allegations set forth in Paragraphs 7 - 10.
7. Respondent admits the allegations set forth in Paragraph 11 (see DEQ Approval
Letter in Exhibit-A).
8. With regard to Paragraph 12, the allegations are vague. Respondent admits only
that the system should meet all applicable government laws, ordinances, and regulations.
9. With regard to Paragraph 13, Respondent admits that two-sided discussions have
occurred since 2019. Respondent denies the remaining allegations contained in Paragraph 13,
including Complainant’s characterization of such discussions. Complainant failed to include in
its attached Exhibit-5 the remaining responses in its email conversation thread with Respondent
which would show: (1) Respondent agreed to Complainant’s suggestion to arrange a meeting
with the “DEQ” to identify solutions; (2) Respondent asked that the DEQ meeting be at a time
when its own executive leaders and lead water engineer could attend; and (3) Complainant
agreed to “get some dates from DEQ and get back to [Respondent]”. Unfortunately,
Complainant never set up a meeting with DEQ and never got back to Respondent about this
agreed-upon resolution approach. Instead, Complainant filed the instant Complaint. Attached

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 4
4861-7625-8453, v. 2
hereto as Exhibit-C are the emails which Complainant omitted (collectively, the “Omitted
Emails”).
10. Respondent denies the allegations contained in Paragraphs 14 through 18.
Respondent has discussed a number of potential solutions to Complainant’s alleged deficiencies
and does not, in particular, agree that pump up grades are the appropriate solution. Respondent
vehemently disagrees with the characterization that Respondent has refused to work with
Complainant to identify a solution.
11. With regard to Paragraph 19, Respondent admits that it makes assessments to and
collects from users of the Water System; Respondent denies all other allegations.
II. JURISDICTION
12. Respondent incorporates all preceding paragraphs as through fully set forth
herein.
13. With regard to Paragraphs 21 through 28, no factual allegations are asserted that
are capable of response. To the extent a response is required, Respondent admits that the
Commission has authority to supervise and regulate public utilities and provide for enforcement.
The code provisions cited speak for themselves.
III. COUNT ONE
14. Respondent incorporates all preceding paragraphs as through fully set forth
herein.
15. Respondent denies the allegations set forth in Paragraphs 30 and 31.
IV. COUNT TWO

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 5
4861-7625-8453, v. 2
16. Respondent incorporates all preceding paragraphs as through fully set forth
herein.
17. Respondent denies the allegations set forth in Paragraph 33.
V. COUNT THREE
18. Respondent objects as the allegation calls for a legal conclusion; furthermore,
without waiving said objection, Respondent denies the allegation.
19. The code provision identified in Paragraph 35 speaks for itself.
20. With regard to Paragraphs 36 through 38, Respondent admits that it has made,
demanded, and/or received charges for water service and/or for water to be provided by the
“Water System” but denies all other allegations made therein.
AFFIRMATIVE AND OTHER DEFENSES
Respondent asserts the following affirmative and other defenses, without admission of
any kind. The following affirmative and other defenses are made in the alternative. By asserting
these affirmative and other defenses, Respondent does not admit it bears the burden of proof as
to any of them. Respondent also gives notice that it intends to rely upon any and all such other
affirmative and other defenses that may become available or apparent during the course of
discovery and the progress of the above-captioned matter through the judicial process;
accordingly, Respondent expressly reserves its right to amend this Answer to Complaint to assert
such affirmative and other defenses.
1. Complainant’s Complaint fails to state a claim upon which relief may be granted.
2. The alleged under-performance of the Water System “to meet the water demand
and/or need of the users” is attributable to other intervening causes including, without limitation,
the following:

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 6
4861-7625-8453, v. 2
a) Complainant fails to enforce its own Declaration’s irrigation restriction under
Article VIII, Section 8.2. This irrigation restriction expressly prohibits certain
over-sized lots from fully irrigating the lot. See Exhibit-B. The Complainant’s
failure to adhere to its own Declaration in turn burdens the Water System with
additional demand, which is unauthorized and disallowed under the Declaration.
Complainant, therefore, has failed to mitigate its own alleged injury.
b) Excessive use of the Water System by its residential users beyond what would be
reasonable, ordinary, and necessary for the adequate maintenance of landscape.
c) Excessive use of the Water System by its users beyond what is permitted by the
Declaration and Idaho regulations or statute.
d) Complainant’s excessive use of the Water System beyond what would be
reasonable, ordinary, and necessary for the adequate maintenance of Common
Area landscape.
e) Complainant’s excessive use of the Water System beyond what is permitted by
Idaho regulations or statute.
3. The Water System was reviewed and approved by the appropriate government
agency with jurisdiction over the system design and performance. See DEQ Approval Letter
attached herewith as Exhibit-A.
4. Complainant alleges that Respondent has “failed to act,” “made excuses,” and
“refused or otherwise failed to act,” and in support of these allegations cites to certain email
correspondences in the Complaint’s attached Exhibits 1 through 5. On the contrary, Complaint
failed to include in its Exhibit-5 the remaining responses in its email thread with Respondent

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 7
4861-7625-8453, v. 2
which would show: (1) Respondent agreed to Complainant’s suggestion to arrange a meeting
with DEQ to identify solutions; (2) Respondent asked that the DEQ meeting be at a time when
its own executive leaders and lead water engineer could attend; and (3) Complaint agreed to “get
some dates from DEQ and get back to [Respondent].” Unfortunately, Complainant never set up
a meeting with DEQ and never got back to Respondent. Instead, Complainant filed the instant
Complaint. See Omitted Emails in Exhibit-C.
5. Pursuant to Rule 54 of IDAPA 31.01.01.054.05, this formal complaint should be
moved to informal proceedings to better allow the parties to resolve or settle this matter. In the
alternative, Respondent hereby gives notice of its desire and request to enter into an settlement
proceeding pursuant to Rule 271 or Rule 272 of IDAPA 31.01.01.
REQUEST FOR RELIEF
WHEREFORE, Respondent prays for entry of judgment, as follows:
A. That Complainant’s Complaint be dismissed with prejudice and Complainant take
nothing thereby;
B. That this proceeding be moved to informal proceedings or, in the alternative, a
passive or active settlement; and
C. For such other and further relief which Respondent is entitled to.
DATED this 22nd day of December, 2023.
CLARK WARDLE LLP

By: /s/ Preston B. Rutter
Preston B. Rutter
Attorneys for Respondents

RESPONDENT’S ANSWER TO FORMAL COMPLAINT OF ARROWROCK RANCH
ASSOCIATION, INC. - 8
4861-7625-8453, v. 2
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 22nd day of December, 2023, I caused a true and
correct copy of the above to be served upon the following individuals in the manner indicated
below:
Ryan D. Poole
Smith Knowles, P.C.
2225 Washington Boulevard, Suite 200
Ogden, UT 84401
 U.S. Mail
 Hand-Delivery
 Federal Express
 Via Facsimile
 Via ECF/E-Mail
[e-mail]

/s/ Preston B. Rutter
Preston B. Rutter

EXHIBIT A

EXHIBIT B

ADA COUNTY RECORDER Chrialopher D. Rich AMOUNT 133.00 42
BOISE IDAHO 07/25/11 01:51 PM
DEPUTY U11 Batt
RECORDED-REQUEST OF
Arrowrock Ranch Sub
111111111111111 II II lllll l lllllll II Ill
THIRD AMENDED AND RESTATED
MASTER DECLARATION OF
COVENANTS. CONDITIONS AND RESTRICTIONS
FOR
ARROWROCK RANCH SUBDIVISION
111059307
THIS THIRD AMENDED AND RESTATED MASTER DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS FOR ARROWROCK RANCH SUBDIVISION is made effective as of
the 30th day of June, 2011, by Arrowrock Ranch Homeowners Association.
TABLE OF CONTENTS
ARTICLE I: RECITALS .................................................................................................................................. 1
1.1 Property Covered ............................................................................................................. 1
1.2 Residential Development ................................................................................................. 1
1.3 Purpose of Second Amended Declaration ....................................................................... 1
1.4 Purpose of Third Amended Declaration .............................................................. 1
ARTICLE II: DECLARATION............................................................................................................... 1
ARTICLE Ill: DEFINITIONS ........................................................................................................................... 1
3.1 "Architectural Committee" ................................................................................................ 2
3.2 "Articles" ........................................................................................................................... 2
3.3 "Assessments" ................................................................................................................. 2
3.4 "Association" .................................................................................................................... 2
3.5 "Association Rules" .......................................................................................................... 2
3.6 "Board" ............................................................................................................................. 2
3. 7 "Building Lot" .................................................................................................................... 2
3.8 "Bylaws" ........................................................................................................................... 2
3.9 "Common Area" ............................................................................................................... 2
3.10 "Declaration" .................................................................................................................... 2
3. 11 "Granter" .......................................................................................................................... 2
3.12 "Improvement" ................................................................................................................. 2
3.13 "Limited Assessment" ........... : .......................................................................................... 2
3.14 "Association" ................................................................................................................... :2
3.15 "Member'' ......................................................................................................................... 2
3.16 "Owner" ............................................................................................................................ 3
3.17 "Person" ........................................................................................................................... 3
3.18 "Plat" ................................................................................................................................ 3
3.19 "Property" ......................................................................................................................... 3
3.20 "Regular Assessment" ..................................................................................................... 3
3.21 "Special Assessment" ...................................................................................................... 3
3.22 "Supplemental Declaration" ............................................................................................. 3
3.23 "Arrowrock Ranch Subdivision Common Area" ............................................................... 3
3.24 "Arrowrock Ranch Subdivision" ....................................................................................... 3
ARTICLE IV: GENERAL AND SPECIFIC RESTRICTIONS ......................................................................... 3
4.1 Structures -Generally ..................................................................................................... 3
4.2 Antennae .......................................................................................................................... 4
4.3 Insurance Rates ............................................................................................................... 4
4.4 No Further Subdivision .................................................................................................... 4
4.5 Signs ................................................................................................................................ 4
4.6 Nuisances ........................................................................................................................ 5
4.7 Exterior Maintenance; Owner's Obligations ..................................................................... 5
4.8 Grading and Drainage ...................................................................................................... 5
4.9 No Hazardous Activities ................................................................................................... 5
4.10 Unsightly Articles ............................................................................................................. 5
4.11 No Temporary Structures ................................................................................................ 6
4.12 No Unscreened Boats, Campers and Other Vehicles ..................................................... 6
4.13 Sewage Disposal Systems .............................................................................................. 6
4.14 No Mining or Drilling ......................................................................................................... 6
4.15 Energy Devices, Outside ................................................................................................. 6
4.16 Vehicles ........................................................................................................................... 6
TABLE OF CONTENTS-i
I
4.17 Animals/Pets·······-·-·-·· .... ··-·-·-·········-······ .............. ······-·---·· .............................. ·····-·--······ ... 6
4.18 Landscaping ..................................................................................................................... 7
4.19 Exemption of Granter ....................................................................................................... 7
4.20 Intentionally Deleted ········-·-·-···:·····-·-·-········'·············-·-·-········-·-·-·························-···········7
4.21 Commencement of Construction ..................................................................................... 7
4.22 Roof Material .................................................................................................................... 8
ARTICLE V: ARROWROCK RANCH SUBDIVISION HOMEOWNERS' ASSOCIATION ............................. 8
5.1 Organization of Arrowrock Ranch Subdivision Homeowners' Association ...................... 8
5.2 Membership········--·--·········-·-···············--······-·-···········-·--·········-·-··-·······-·-·-··········-·-·-······ ... 8
5.3 Voting·····-·-·-··········-·-·········-············-···-·· .. ······-·-············---················· ····-·-·-·············-········-8 5.4 Board of Directors and Officers ....................................................................................... 8
5.5 Power and Duties of the Association ........................................ : ...................................... 8
5.6 Personal Liability ............................................................................................................ 12
5. 7 Budgets and Financial Statements ................................................................................ 12
5.8 Meetings of Association .................................... : ............................................................ 12
ARTICLE VI: LIGHT MAINTENANCE OF STORM WATER FACILITIES .................................................. 12
ARTICLE VII: RIGHTS TO COMMON AREAS-·-········-·-··-····················-·-······················--······-···················· 13
7.1 Use of Arrowrock Ranch Subdivision Common Area .................................................... 13
7.2 Designation of Common Area ........................................................................................ 13
7.3 Delegation of Right to Use ............................................................................................. 13
7.4 Damages ....................................... ··-·-·-········-·-··························-·-···· .............................. 13
ARTICLE VIII: IRRIGATION ............... ·-·-············-········-··-·-·······················-·-···························-·· .................. 13
8.1 No separate system .......... ·-·-··········-·--···········-·-········-····-······································-········ 13
8.2 Limitation on Irrigation .................................................................................................... 13
ARTICLE IX: DOMESTIC WATER··················-·-·-········-·-·-··········-·-········-·-·-·······················-·-······················ 14
9 .1 Water System ................................................................................................................ 14
9.2 Assessments ................................................................................... ······-·-···················· .. 14
9.3 Financial Records and Audits ........................................................................................ 14
9.4 Liability Insurance .......................................................................................................... 14
9.5 Backflow Systems and Assemblies ............................................................................... 14
9.6 Water Quality·····················-·-·······················-···-··················································-··········· 15 9.7 Easement for Maintenance ............................................................................................ 15
9.8 Access to Water System Facilities ................................................................................. 15
9.9 No Separate Water Supply············································-·························-····················· 15
9.10 Protection of Water Supply······--······-·-········-·-·-·-···········-············-··------······-···············--··· 15
9.11 Termination of Service ................................................................................................... 16
9. 12 Transfer of Water System .............................................................................................. 16
ARTICLE X: ASSESSMENTS ..................................................................................................................... 17
10.1 Covenant to Pay Assessments ...................................................................................... 17
10.2 Regular Assessments .................................................................................................... 18
10.3 Special Assessments ..................................................................................................... 19
10.4 Limited Assessments ................................... ·-·-·-········-···-········-·-·······················-·-·-·-······ 19
10.5 Uniform Rate of Assessment ......................................................................................... 19
10.6 10.6 Assessment Period ................................................................................................ 19
10.7 10.7 Notice and Assessment Due Date ......................................................................... 19
10.8 Estoppal Certificate ........................................................................................................ 19
10.9 Special Notice and Quorum Requirements ................................................................... 19
ARTICLE XI: ENFORCEMENT OF ASSESSMENTS; LIENS .................................................................... 20
11.1 Right to Enforce···-·-················································ ....................................................... 20
TABLE OF CONTENTS-ii
I
11.2 Assessment Liens .......................................................................................................... 20
11.3 Method of Foreclosure ................................................................................................... 20
11.4 Required Notice ............................................................................................................. 20
11.5 Subordination to Certain Trust Deeds ........................................................................... 21
11.6 Rights of Mortgagees ..................................................................................................... 21
ARTICLE XII: INSPECTION OF ASSOCIATION'S BOOKS AND RECORDS ........................................... 21
12.1 Member's Right of Inspection ........................................................................................ 21
12.2 Rules Regarding Inspection of Books and Records ...................................................... 21
12.3 Director's Rights of Inspection ....................................................................................... 21
ARTICLE XIII: ARCHITECTURAL COMMITTEE ........................................................................................ 21
13.1 Creation ......................................................................................................................... 21
13.2 Grantor's Right of Appointment... ....................................... .-.: ......................................... 22
13.3 Review of Proposed Construction ................................................................................. 22
13.4 Meetings of the Architectural Committee ....................................................................... 23
13.5 No Waiver of Future Approvals ...................................................................................... 23
13.6 Compensation of Members ............................................................................................ 23
13. 7 Inspection of Work ......................................................................................................... 23
13.8 Non-Liability of Architectural Committee Members ....................................................... 23
13.9 Variances ....................................................................................................................... 24
ARTICLE XIV: EASEMENTS ...................................................................................................................... 24
14.1 Easements of Encroachment... ...................................................................................... 24
14.2 Easements of Access .................................................................................................... 24
14.3 Drainage and Utility Easements .................................................................................... 24
14.4 Rights and Duties Concerning Utility Easements .......................................................... 25
14.5 Driveway Easements ...................................................................................................... 25
14.6 Disputes as to Sharing of Costs .................................................................................... 25
14.7 General Landscape Easement ...................................................................................... 25
14.8 Overhang Easement ...................................................................................................... 25
14.9 Maintenance and Use Easement Between Walls and Lot Lines ................................... 26
ARTICLE XV: MISCELLANEOUS ............................................................................................................... 26
15.1 Term ............................................................................................................................... 26
15.2 Amendment. ................................................................................................................... 26
15.3 Mortgage Protection ....................................................................................................... 26
15.4 Notices ........................................................................................................................... 26
15.5 Enforcement and Non-Waiver ....................................................................................... 27
15.6 Interpretation .................................................................................................................. 27
15.7 Successors and Assigns ................................................................................................ 27
TABLE OF CONTENTS -iii
I ARTICLE I: RECITALS
1.1 Property Covered. The property potentially subject to this Third Amended and Restated
Master Declaration of Covenants, Conditions and Restrictions for Arrowrock Ranch Subdivision ("Third
Amended Declaration") is the Property included in the plat of Arrowrock Ranch Subdivision No. 1, subject to
the exclusions stated below. The plat for Arrowrock Ranch Subdivision No. 1 was recorded on
September 14, 2005, in the Records of Ada County, Idaho as Instrument No. 105133316. A copy of the plat
is attached hereto as Exhibit A. Lot 60, Block 1, Lot 62, Block 1, and Lot 63, Block 1 are not included in the
Property. and are not potentially subject to this Third Amended Declaration. Lots 1-59, Block 1, are hereby
made subject to this Third Amended Declaration. Lot 61, Block 1 may be made subject to this Third
Amended Declaration by future amendment.
1.2 Residential Development. Arrowrock Ranch Subdivision is a residential development, which
Granter currently intends to develop in accordance with development approvals obtained in the County of
Ada, and other development plan(s) for which Grantor may from time to time obtain approval. Certain
portions of the Property may be developed for quality detached single-family residential homes. The
Property may contain parcels of Common Area, including streams and canals, public and/or private open
space, park areas, landscaping, recreational facilities, private streets, drives, and other amenities and
facilities. Any development plans or schemes for the Property in existence prior to or following the effective
date of this Third Amended Declaration are subject to change at any time by Granter, and impose no
obligation on Grantor as to how the Property is to be developed or improved.
1.3 Purpose of Second Amended Declaration. The purpose of this Second Amended
Declaration is to set forth the basic restrictions, covenants, limitations, easements, conditions and equitable
servitudes (collectively "Restrictions") that will apply to the entire development and use of all portions of the
Property. The Restrictions are designed to preserve the Property's value, desirability and attractiveness, to
ensure a well integrated, high-quality development, and to guarantee adequate maintenance of the Common
Area, and the Improvements located thereon in a cost effective and administratively efficient manner.
1.4 Purpose of Third Amended Declaration. The purpose of this Third Amended Declaration is
to amend Section 4.12 as approved by the Members in June of 2011.
ARTICLE II: DECLARATION
Granter hereby declares that the Property, and each lot, parcel or portion thereof, is and/or shall be
held, sold, conveyed, encumbered, hypothecated, leased, used, occupied and improved subject to the
following terms, covenants, conditions, easements and restrictions, all of which are declared and agreed to
be in furtherance of a general plan for the protection, maintenance, subdivision, improvement and sale of the
Property, and to enhance the value, desirability and attractiveness of the Property. The terms, covenants,
conditions, easements and restrictions set forth herein: shall run with the land constituting the Property, and
with each estate therein, and shall be binding upon all persons having or acquiring any right, title or interest
in the Property or any lot, parcel or portion thereof; shall inure to the benefit of every lot, parcel or portion of
the Property and any interest therein; and shall inure to the benefit of and be binding upon Granter, Grantor's
successors in interest and each grantee or Owner and such grantee's or Owner's respective successors in
interest, and may be enforced by Grantor, by any Owner or such Owner's successors in interest, or by the
Association.
Notwithstanding the foregoing, no provision of this Third Amended Declaration shall be construed as
to prevent or limit Grantor's right to complete development of the Property and to construct improvements
thereon, nor Grantor's right to maintain model homes, construction, sales or leasing offices or similar
facilities on any portion of the Property, including the Common Area or any public right-of-way, nor Grantor's
right to post signs incidental to construction, sales or leasing.
ARTICLE III: DEFINITIONS
1
3.1 "Architectural Committee" shall mean the committee created by the Granter or an
Association pursuant to Article XII hereof.
3.2 "Articles" shall mean the Articles of Incorporation of an Association or other organizational or
charter documents of an Association.
3.3 "Assessments" shall mean those payments required of Owners, Association Members,
including Regular, Special and Limited Assessments of any Association as further defined in this Third
Amended Declaration.
3.4 "Association" shall mean the Association.
3.5 "Association Rules" shall mean those rules and regulations promulgated by the Association
governing conduct upon and use of the Property under the jurisdiction or control of the Association, the
imposition of fines and forfeitures for violation of Association Rules and regulations, and procedural matters
for use in the conduct of business of the Association.
3.6 "Board" shall mean the Board of Directors or other governing board or individual, if
applicable, of the Association.
3.7 "Building Lot" shall mean one or more lots within the Property as specified or shown on any
Plat and/or by Supplemental Declaration, upon which Improvements may be constructed. The term
"Building Lot" shall include single-family residential lots, but shall not include the Common Area.
3.8 "Bylaws" shall mean the Bylaws of an Association.
3.9 "Common Area" shall mean any or all parcels of Arrowrock Ranch Subdivision Common
Area, and shall include, without limitation, all such parcels that are designated as private streets or drives,
common open space, common landscaped areas.
3.10 "Declaration" shall mean this Third Amended Declaration as it may be amended from time to
time.
3.11 "Granter'' shall mean Powder River Development, Inc., or its successor in interest, or any
person or entity to whom the rights under this Third Amended Declaration are expressly transferred by
Powder River Development, Inc. or its successor.
3.12 "lmprovemenf' shall mean any structure, facility or system, or other improvement or object,
whether permanent or temporary, which is erected, constructed or placed upon, under or in any portion of
the Property, including but not limited to buildings, fences, streets, drives, driveways, sidewalks, bicycle
paths, curbs, landscaping, wildlife habitat improvements, signs, lights, mail boxes, electrical lines, pipes,
pumps, ditches, recreational facilities, and fixtures of any kind whatsoever.
3.13 "Limited Assessment" shall mean a charge against a particular Owner and such Owner's
Building Lot, directly attributable to the Owner, equal to the cost incurred by the Association for corrective
action performed pursuant to the provisions of this Third Amended Declaration or any Supplemental
Declaration, including interest thereon as provided in this Third Amended Declaration or a Supplemental
Declaration.
3.14 "Association" shall mean the limited liability company, its successors and assigns,
established by Granter to exercise the powers and to carry out the duties set forth in this Third Amended
Declaration or any Supplemental Declaration. Grantor shall have the power, in its discretion, to name the
Association the "Arrowrock Ranch Subdivision Homeowners' Association, Inc.", or any similar name which
fairly reflects its purpose.
3.15 "Member'' shall mean each person or entity holding a membership in the Association.
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3.16 "Owner" shall mean the person or other legal entity, including Grantor, holding fee simple
interest of record to a Building Lot which is a part of the Property, and sellers under executory contracts of
sale, but excluding those having such interest merely as security for the performance of an obligation.
3.17 "Person" shall mean any individual, partnership, corporation or other legal entity.
3.18 "Plat" shall mean any subdivision plat covering any portion of the Property as recorded at
the office of the County Recorder, Ada County, Idaho, as the same may be amended by duly recorded
amendments thereof.
3.19 . "Property" shall mean those portions of the Property described on Exhibit A attached hereto
and incorporated herein by this reference, including each lot, parcel and portion thereof and interest therein,
including all water rights associated with or appurtenant to such property.
3.20 "Regular Assessment" shall mean the portion of the cost of maintaining, improving,
repairing, managing and operating the Common Areas and all Improvements located thereon, and the other
costs of an Association which is to be levied against the Property of and paid by each Owner to the
Association, pursuant to the terms hereof or the terms of this Third Amended Declaration or a Supplemental
Declaration.
3.21 "Special Assessment'' shall mean the portion of the costs of the capital improvements or
replacements, equipment purchases and replacements or shortages in Regular Assessments which are
authorized and to be paid by each Owner to the Association pursuant to the provisions of this Third
Amended Declaration or a Supplemental Declaration.
3.22 "Supplemental Declaration" shall mean any supplemental declaration including additional
covenants, conditions and restrictions that might be adopted with respect to any portion of the Property.
3.23 "Arrowrock Ranch Subdivision Common Area" shall mean all real property in which the
Association holds an interest or which is held or maintained, permanently or temporarily, for the common
use, enjoyment and benefit of the entire Arrowrock Ranch Subdivision and each Owner therein, which real
property is legally described in Exhibit B attached hereto and made a part hereof. Arrowrock Ranch
Subdivision Common Area may be established from time to time by Grantor on any portion of the Property
by describing it on a plat, by granting or reserving it in a deed or other instrument, or by designating it
pursuant to this Third Amended Declaration or any Supplemental Declaration. Arrowrock Ranch Subdivision
Common Area may include easement and/or license rights.
3.24 "Arrowrock Ranch Subdivision" shall mean the Property.
ARTICLE IV: GENERAL AND SPECIFIC RESTRICTIONS
4.1 Structures -Generally. All structures are to be designed, constructed and used in such a
manner as to promote compatibility between the types of use contemplated by this Third Amended
Declaration.
4.1.1 Use, Size and Height of Dwelling Structure. All Building Lots shall be used
exclusively for purposes allowed on the final plat which includes said lot.
4.1.2 Architectural Committee Review. No Improvements which will be visible above
ground or which will ultimately affect the visibility of any above ground Improvement shall be built,
erected, placed or materially altered on or removed from the Property unless and until the building
plans, specifications, and plot plan have been reviewed in advance by the Architectural Committee
and the same have been approved in writing. The review and approval or disapproval may be
based upon the following factors: design and style elements, mass and form, topography, setbacks,
finished ground elevations, architectural symmetry, drainage, color, materials, physical or aesthetic
impacts on other properties, including Common Areas, artistic conformity to the terrain and the other
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Improvements on the Property, and any and all other factors which the Architectural Committee, in
its reasonable discretion, deem relevant. Said requirements as to the approval of the architectural
design shall apply only to the exterior appearance of the Improvements. This Third Amended
Declaration is not intended to serve as authority for the Architectural Committee to control the
interior layout or design of residential structures except to the extent incidentally necessitated by
use, size and height restrictions.
4.1.3 Setbacks and Height. No residential or other structure shall be placed nearer to the
Building Lot lines or built higher than permitted by the Plat in which the Building Lot is located, by
any applicable zoning restriction, by any conditional use permit, or by a building envelope
designated either by Granter or the applicable Architectural Committee whichever is more
restrictive. See Exhibit C.
4. 1.4 Accessorv Structures. Detached garages shall be allowed if in conformity with the
provisions of this Third Amended Declaration, and as approved by the applicable Architectural
Committee. Garages and storage sheds shall be constructed of, and roofed with, the same
materials, and with similar colors and design, as the residential structure on the applicable Building
lot. No playhouses, playground equipment, pools, pool slides, diving boards, hot tubs, spas or
similar items shall extend higher than five (5) feet above the finished graded surface of the Building
Lot upon which such item(s) are located unless approved in advance.
4.1.5 Driveways. All access driveways shall have a wearing surface of asphalt, concrete,
or other hard surface materials, and shall be properly graded to assure proper drainage.
4.1.6 Mailboxes. All mailboxes will be of consistent design, material and coloration and
shall be located on or adjoining Building Lot lines at places designated by Granter or the
Architectural Committee.
4.1.7 Fencing. See Exhibit C.
4.1.8 lighting. Exterior lighting, including flood lighting, shall be part of the architectural
concept of the Improvements on a Building Lot. Fixtures, standards and all exposed accessories
shall be harmonious with building design, and shall be as approved by the applicable Architectural
Committee. lighting shall be restrained in design, and excessive brightness shall be avoided.
4.1.9 Garages. Each dwelling unit shall have an attached or detached fully enclosed
garage adequate for a minimum of three (3), and a maximum of five (5) standard size automobiles.
A maximum of three (3) garage doors are allowed. No carports shall be allowed.
4.2 Antennae. No exterior radio antenna, television antenna, satellite dish antenna or other
antenna of any type shall be erected or maintained on the Property unless it is located or screened in a
manner acceptable to the applicable Architectural Committee.
4.3 Insurance Rates. Nothing shall be done or kept on any Building Lot which will increase the
rate of insurance on any other portion of the Property without the approval of the Owner of such other
portion, nor shall anything be done or kept on the Property or a Building Lot which would result in the
cancellation of insurance on any property owned or managed by any such Association or which would be in
violation of any law.
4.4 No Further Subdivision. No Building Lot may be further subdivided.
4.5 Signs. No sign of any kind shall be displayed to the public view without the approval of the
applicable Architectural Committee, except: (1) such signs as may be used by Granter in connection with
the development of the Property and sale of Building Lots; (2) temporary signs naming the contractors, the
architect, and the lending institution for a particular construction operation; (3) such signs identifying
Arrowrock Ranch Subdivision, or informational signs, of customary and reasonable dimensions as
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prescribed by the Architectural Committee may be displayed on or from the Common Area; and (4) one (1)
sign of customary and reasonable dimensions as prescribed by the Architectural Committee as may be
displayed by an Owner other than Granter on or from a Building Lot advertising the residence for sale. A
customary "for sale" sign not more than three (3) feet by two (2) feet shall not require Architectural
Committee approval. Without limiting the foregoing, no sign shall be placed in the Common Area without the
written approval of the applicable Architectural Committee. No "For Rent" signs are allowed in the
Subdivision.
4.6 Nuisances. No rubbish or debris of any kind shall be placed or permitted to accumulate
anywhere upon the Property, including Common Area or vacant Building Lots, and no odor shall be
permitted to arise therefrom so as to render the Property or any portion thereof unsanitary, unsightly,
offensive or detrimental to the Property or to its occupants, or to any other property in the vicinity thereof or
to its occupants. No noise or other nuisance shall be permitted to exist or operate upon any portion of the
Property so as to be offensive or detrimental to the Property or to its occupants or to other property in the
vicinity or to its occupants. Without limiting the generality of any of the foregoing provisions, no exterior
speakers, horns, whistles, bells or other sound devices (other than security devices used exclusively for
security purposes which have been approved by the Association), flashing lights or search lights, shall be
located, used or placed on the Property without the prior written approval of the Association.
4.7 Exterior Maintenance: Owner's Obligations. No Improvement shall be permitted to fall into
disrepair, and each Improvement shall at all times be kept in good condition and repair. In the event that any
Owner shall permit any Improvement, including trees and landscaping, which is the responsibility of such
Owner to maintain, to fall into disrepair so as to create a dangerous, unsafe, unsightly or unattractive
condition, or damages property or facilities on or adjoining their Building Lot which would otherwise be the
Associations' responsibility to maintain, the Board of the Association, upon fifteen (15) days prior written
notice to the Owner of such property, shall have the right to correct such condition, and to enter upon such
Owner's Building Lot for the purpose of doing so, and such Owner shall promptly reimburse the Association,
as the case may be, for the cost thereof. Such cost shall be a Limited Assessment and shall create a lien
enforceable in the same manner as other Assessments set forth in Article IX of this Third Amended
Declaration. The Owner of the offending property shall be personally liable, and such Owner's property may
be subject to a mechanic's lien for all costs and expenses incurred by the Association in taking such
corrective acts, plus all costs incurred in collecting the amounts due. Each Owner shall pay all amounts due
for such work within ten (10) days after receipt of written demand therefor, or the amounts may, at the option
of the Board, be added to the amounts payable by such Owner as Regular Assessments. Each Owner shall
have the remedial rights set forth herein if the applicable Associations fail to exercise their rights within a
reasonable time following written notice by such Owner.
4.8 Grading and Drainage. A site plan indicating the proposed grading and drainage of a Lot
must be approved by the ACC before any construction is initiated. Lot grading shall be kept to a minimum
and Buildings are to be located for preservation of the existing grade(s). Builder is expressly responsible to
ensure proper drainage and run off from said Building Lot.
4.9 No Hazardous Activities. No activities shall be conducted on the Property, and no
Improvements constructed on any property which are or might be unsafe or hazardous to any person or
property.
4.10 Unsightly Articles. No unsightly articles shall be permitted to remain on any Building Lot so
as to be visible from any other portion of the Property. Without limiting the generality of the foregoing,
refuse, garbage and trash shall be kept at all times in such containers and in areas approved by the
applicable Architectural Committee. No clothing or fabrics shall be hung, dried or aired in such a way as to
be visible to other property, and no equipment, heat pumps, compressors, containers, lumber, firewood,
grass, shrub or tree clippings, plant waste, metals, bulk material, scrap, refuse or trash shall be kept, stored
or allowed to accumulate on any Building Lot except within an enclosed structure or as appropriately
screened from view. No vacant residential structures shall be used for the storage of building materials.
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4.11 No Temporary Structures. No house trailer, mobile home, tent (other than for short term
individual use), shack or other temporary building, improvement or structure shall be placed upon any portion
of the Property, except temporarily as may be required by construction activity undertaken on the Property.
4.12 No Unscreened Boats, Campers and Other Vehicles. No boats, trailers, tractors,
recreational vehicles, (i.e., any trailers, campers, motor homes, automobile campers or similar vehicles or
equipment) dilapidated, unrepaired or unsightly vehicles, or similar equipment, motorcycles, snowmobiles,
shall regularly or as a matter of practice be parked or stored on any portion of the Property (including streets
and driveways) unless enclosed by a structure or screened from view in a manner approved in writing by the
Architectural Committee. Notwithstanding the foregoing, any boat, camper trailer, or recreational vehicle
which is in good repair and working order may be stored on the side yard of a Lot between the front and rear
of the unit, on the garage side, if screened by a six foot (6') fence. If the height of the stored item is greater
than the height of the front fence, the item must be stored two feet farther from the front fence for each part
of a foot the item extends above the fence, and the item must be stored two (2) feet away from any side yard
fence for each part of a foot it extends above said fence. In no case will the item be allowed to be stored if
its height is greater than ten (10} feet or length greater than twenty-five (25) feet. The Architectural
Committee shall be the sole and exclusive judges of approved parking areas. The vehicle must not be set
up as a permanent structure, and cannot be used as a separate residence.
4.13 Sewage Disposal Systems. No individual sewage disposal system shall be used on the
Property. Each Owner shall connect the appropriate facilities on such Owner's Building Lot to the Sewer
System provided by contract with lntermountain Sewer & Water, Corp., and will pay all charges assessed
therefore.
4.14 No Mining or Drilling. No portion of the Property shall be used for the purpose of mining,
quarrying, drilling, boring or exploring for or removing water, oil, gas or other hydrocarbons, minerals, rocks,
stones, sand, gravel or earth. This paragraph 4.14 shall not prohibit exploratory drilling or coring which is
necessary to construct a residential structure or Improvements.
4.15 Energy Devices. Outside. No energy production devices, including but not limited to
generators of any kind and solar energy devices, shall be constructed or m~intained on any portion of the
Property without the written approval of the applicable Architectural Committee, except for heat pumps
shown in the plans approved by the Architectural Committee. This paragraph 4.15 shall not apply to passive
solar energy systems incorporated into the approved design of a residential structure.
4.16 Vehicles. The use of all vehicles, including but not limited to trucks, automobiles, bicycles,
motorcycles and snowmobiles, shall be subject to all Association Rules, which may prohibit or limit the use
thereof within Arrowrock Ranch Subdivision. No on-street parking shall be permitted except where expressly
designated for parking use. No parking bays shall be permitted in any side, front or backyard. Vehicles
parked on a driveway shall not extend into any sidewalk or bike path or pedestrian path.
4.17 Animals/Pets. No animals, birds, insects, pigeons, poultry or livestock shall be kept on the
Property unless the presence of such creatures does not constitute a nuisance. This paragraph 4.17 does
not apply to the keeping of up to two (2) domesticated dogs, up to two (2) domesticated cats, and other
household pets which do not unreasonably bother or constitute a nuisance to others. Without limiting the
generality of the foregoing, consistent and/or chronic barking by dogs shall be considered a nuisance. Each
dog in Arrowrock Ranch Subdivision shall be kept on a leash, curbed, and otherwise controlled at all times
when such animal is off the premises of its owner. Such owner shall clean up any animal defecation
immediately from the Common Area or public right-of-way. Failure to do so may result, at the Board's
discretion, with a Limited Assessment levied against such animal owner. The construction of dog runs or
other pet enclosures shall be subject to applicable Architectural Committee approval, shall be appropriately
screened, and shall be maintained in a sanitary condition. Dog runs or other pet enclosures shall be placed
a minimum of ten (10) feet from the side and/or rear Building Lot line, shall not be placed in any front yard of
a Building Lot, and shall be screened from view so as not to be visible from Common Area or an adjacent
Building Lot.
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4.18 Landscaping. Builders of the initial residents on each Building Lot shall be responsible for
installation, prior to occupancy, of a complete front and back yard sprinkler system, seeding or sod for the
entire yard, and full and prior compliance with the landscape plan approved by the Architectural Committee.
Prior to construction of Improvements, the Owner (or any Association to which such responsibility has been
assigned) shall provide adequate irrigation and maintenance of existing trees and landscaping, shall control
weeds, and maintain the Owner's (or Association's) property in a clean and safe condition free of debris or
any hazardous condition. All trees located on common Building Lot lines shall be the joint responsibility of
the adjoining Building Lot owners. All landscaped Common Areas shall be irrigated by an underground
sprinkler system.
The Board and/or applicable Architectural Committee may adopt rules regulating landscaping
permitted and required. In the event that any Owner shall fail to install and maintain landscaping in
conformance with such rules or shall allow such Owner's landscaping to deteriorate to a dangerous, unsafe,
unsightly or unattractive condition, the Board, upon fifteen (15) days' prior written notice to such Owner, shall
have the right to correct such condition and to enter upon such Owner's property for the purpose of doing so,
and such Owner shall promptly reimburse the Association for the cost thereof. Such cost shall be a Limited
Assessment and shall create a lien enforceable in the same manner as other Assessments as set forth in
Article IX.
Following commencement of any construction of any Improvement, construction shall be diligently
pursued and completed as soon as reasonably practical. All landscaping on a Building Lot, unless otherwise
specified by the applicable Architectural Committee, shall be completed as soon as reasonably practical
following completion of the residential structure on such Building Lot. The initial landscaping shall include,
as a minimum, sod in the front and side yards, sod or grass seeded in the rear yards, and four (4) flowering
trees of at least two inch (2") caliper in the front yard or, alternatively, one (1) six foot (6') pine tree and two
(2) flowering trees of two inch (2") calipe~ in the front yard. The front yard shall also include five (5) gallon
plants/shrubs and ten (10) one (1) gallon plants/shrubs. Berms are encouraged subject to Architectural
Committee approval. All sprinkler systems shall include the installation of a backflow valve, and landscaping
shall be subject to limitations on grass and watering as described on Exhibit B, attached hereto.
4.19 Exemption of Granter. Nothing contained herein shall limit the right of Granter to subdivide
or resubdivide any portion of the Property, to grant licenses, to reserve rights-of-way and easements with
respect to Common Area to utility companies, public agencies or others, or to complete excavation, grading
and construction of Improvements to and on any portion of the Property owned by Grantor, or to alter the
foregoing and its construction plans and designs, or to construct such additional Improvements as Granter
deems advisable in the course of development of the Property so long as any Building Lot in the Property
remains unsold. Such right shall include, but shall not be limited to, erecting, constructing and maintaining
on the Property such structures and displays as may be reasonably necessary for the conduct of Grantor's
business of completing the work and disposing of the same by sales lease or otherwise. Grantor shall have
the right at any time prior to acquisition of title to a Building Lot by a purchaser from Grantor to grant,
establish and/or reserve on that Building Lot additional licenses, reservations and rights-of-way to Grantor, to
utility companies, or to others as may from time to time be reasonably necessary to the proper development
and disposal of the Property. Granter may use any structures owned by Granter on the Property as model
home complexes or real estate sales or leasing offices. Grantor need not seek or obtain Architectural
Committee approval of any Improvement constructed or placed by Grantor on any portion of the Property
owned by Grantor. The rights of Granter hereunder may be assigned by Granter to any successor in interest
in connection with Grantor's interest in any portion of the Property, by an express written assignment
recorded in the Office of the Ada County Recorder.
4.20 Intentionally Deleted.
4.21 Commencement of Construction. Any Owner of a Building Lot shall, within a period of one
(1) year following the date of purchase of a Building Lot from Granter, commence the construction of a
dwelling structure in compliance with the restrictions herein, and such construction shall be completed within
six (6) months thereafter. The term "commence the construction" as used in this paragraph 4.21, shall
require actual physical construction activities upon such dwelling structure upon such Building Lot.
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4.22 Roof Material. See Exhibit C.
ARTICLE V: ARROWROCK RANCH SUBDIVISION HOMEOWNERS' ASSOCIATION
5.1 Organization of Arrowrock Ranch Subdivision Homeowners' Association. Arrowrock Ranch
Subdivision Homeowners' Association, Inc. ("Association") shall be initially organized by Granter as a limited
liability company under the provisions of the Idaho Code relating to general limited liability companies and
shall be charged with the duties and invested with the powers prescribed by law and set forth in the Articles,
Bylaws and this Third Amended Declaration. Neither the Articles nor the Bylaws shall be amended or
otherwise changed or interpreted so as to be inconsistent with this Third Amended Declaration.
5.2 Membership. Each Owner, by virtue of being an Owner and for so long as such ownership
is maintained, shall be a Member of the Association and no Owner shall have more than one membership in
the Association. Memberships in the Association shall be appurtenant to the Building Lot or other portion of
the Property owned by such Owner. The memberships in the Association shall not be transferred, pledged,
assigned or alienated in any way except upon the transfer of Owner's title and then only to the transferee of
such title. Any attempt to make a prohibited membership transfer shall be void and will not be reflected on
the books of the Association.
5.3 Voting. Voting in the Association shall be carried out by Members who shall cast the votes
attributable to the Building Lots which they own, or attributable to the Building Lots owned by Granter. The
number of votes any Member may cast on any issue is determined by the number of Building Lots which the
Member, including Granter, owns. When more than one person holds an interest in any Building Lot, all
such persons shall be Members but shall share the votes attributable to the Building Lot. For voting
purposes, the Association shall have two (2) classes of Members as described below.
5.3.1 Class A Members. Owners other than Grantor shall be known as Class A Members.
Each Class A Member shall be entitled to cast one (1) vote for each Building Lot owned by such
Class A Member on the day of the vote.
5.3.2 Class B Members. The Grantor shall be known as the Class B Member, and shall
be entitled to one (1) vote tor each Building Lot of which Granter is the Owner commencing October
15, 2008. The Class B Member shall cease to be a voting Member in the Association when all
Building Lots it owns are sold, provided that the Class B membership shall not cease before the
expiration of ten (10) years from the date on which the first Building Lot is sold to an Owner.
Fractional votes shall not be allowed. In the event that joint Owners are unable to agree among
themselves as to how their vote or votes shall be cast, they shall lose their right to vote on the matter being
put to a vote. When an Owner casts a vote, it will thereafter be presumed conclusively for all purposes that
such Owner was acting with authority and consent of all joint Owners of the Building Lot(s) from which the
vote derived. The right to vote may not be severed or separated from the ownership of the Building Lot to
which it is appurtenant, except that any Owner may give a revocable proxy, or may assign such Owner's
right to vote to a lessee, mortgagee, beneficiary or contract purchaser of the Building Lot concerned, for the
term of the lease, mortgage, deed of trust or contract. Any sale, transfer or conveyance of such Building Lot
to a new Owner shall operate automatically to transfer the appurtenant voting right to the Owner, subject to
any assignment of the right to vote to a lessee, mortgagee, or beneficiary as provided herein.
5.4 Board of Directors and Officers. The affairs of the Association shall be conducted and
managed by a Board of Directors ("Board") and such officers as the Board may elect or appoint, in
accordance with the Articles and Bylaws, as the same may be amended from time to time. The Board of the
Association shall be elected in accordance with the provisions set forth in the Association Bylaws.
5.5 Power and Duties of the Association.
5.5.1 Powers. The Association shall have all the powers of a corporation organized under
the general corporation laws of the State of Idaho subject only to such limitations upon the exercise
of such powers as are expressly set forth in the Articles, the Bylaws, and this Third Amended
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Declaration. The Association shall have the power to do any and all lawful things which may be
authorized, required or permitted to be done by the Association under Idaho law and under this Third
Amended Declaration, and the Articles and Bylaws, and to do and perform any and all acts which
may be necessary to, proper for, or incidental to the proper management and operation of the
Common Area and this Third Amended Declaration's other assets, including water rights when and if
received from Granter, and affairs and the performance of the other responsibilities herein assigned,
including without limitation:
5.5.1.l Assessments. The power to levy Assessments on any Owner or any
portion of the Property and to force payment of such Assessments, all in accordance with
the provisions of this Third Amended Declaration. An Association set up fee of $1,450.00
shall be charged upon the closing of each Building Lot. The initial lot transfer fee shall be
$250.00, which amount is subject to change by the Board of Directors of the Association.
5.5.1.2 Right of Enforcement. The power and authority from time to time in its
own name, on its own behalf, or on behalf of any Owner who consents thereto, to
commence and maintain actions and suits to restrain and enjoin any breach or threatened
breach of this Third Amended Declaration or the Articles or the Bylaws, including the
Association Rules adopted pursuant to this Third Amended Declaration, and to enforce by
injunction or otherwise, all provisions hereof.
5.5.l.3 Delegation of Powers. The authority to delegate its power and duties to
committees, officers, employees, or to any person, firm or corporation to act as manager,
and to contract for the maintenance, repair, replacement and operation of the Common
Area, including the private streets. Neither the Association nor the members of its Board
shall be liable for any omission or improper exercise by the manager of any such duty or
power so delegated.
5.5.1.4 Association Rules. The power to adopt, amend and repeal by majority
vote of the Board such rules and regulations as the Association deems reasonable. The
Association may govern the use of the Common Areas, including but not limited to the use
of private streets by the Owners, their families, invitees, licensees, lessees or contract
purchasers; provided, however, that any Association Rules shall apply equally to all Owners
and shall not be inconsistent with this Third Amended Declaration, the Articles or Bylaws. A
copy of the Association Rules as they may from time to time be adopted, amended or
repealed, shall be mailed or otherwise delivered to each Owner. Upon such mailing or
delivery, the Association Rules shall have the same force and effect as if they were set forth
in and were a part of this Third Amended Declaration. In the event of any conflict between
such Association Rules and any other provisions of this Third Amended Declaration, or the
Articles or Bylaws, the provisions of the Association Rules shall be deemed to be
superseded by the provisions of this Third Amended Declaration, the Articles or the Bylaws
to the extent of any such inconsistency.
5.5.1.5 Emergency Powers. The power, exercised by the Association or by any
person authorized by it, to enter upon any property (but not inside any building constructed
thereon) in the event of any emergency involving illness or potential danger to life or
property or when necessary in connection with any maintenance or construction for which
the Association is responsible. Such entry shall be made with as little inconvenience to the
Owner as practicable, and any damage caused thereby shall be repaired by the Association.
5.5.1.6 Licenses. Easements and Rights-of-Way. The power to grant and
convey to any third party such licenses, easements and rights-of-way in, on or under the
Common Area as may be necessary or appropriate for the orderly maintenance,
preservation and enjoyment of the Common Area, and for the preservation of the health,
safety, convenience and the welfare of the Owners, for the purpose of constructing, erecting,
operating or maintaining:
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5.5.1.6.1 Underground lines, cables, wires, conduits or other devices
for the transmission of electricity orelectronic signals-for lighting, heating, power,
telephone, television or other purposes, and the above ground lighting stanchions,
meters, and other facilities associated with the provisions of lighting and services;
and
5.5.1.6.2 Public sewers, storm drains, water drains and pipes, water
supply systems, sprinkling systems, heating and gas lines or pipes, and any similar
public or quasi-public improvements or facilities.
5.5.1.6.3 Mailboxes and sidewalk abutments around such mailboxes
or any service facility, berm, fencing and landscaping abutting common areas,
public and private streets or land conveyed for any public or quasi-public purpose
including, but not limited to, bicycle pathways.
The right to grant such licenses, easements and rights-of-way are hereby expressly
reserved to the Association and may be granted at any time prior to twenty-one (21) years
after the death of the issue of the individuals executing this Third Amended Declaration on
behalf of Granter who are in being as of the date hereof.
5.5.2 Duties. In addition to duties necessary and proper to carry out the power delegated
to the Association by this Third Amended Declaration, and the Articles and Bylaws, without limiting
the generality thereof, the Association or its agent, if any, shall have the authority and the obligation
to conduct all business affairs of the Association and to perform, without limitation, each of the
following duties:
5.5.2.1 Operation and Maintenance of Arrowrock Ranch Subdivision Common
Area. Operate, maintain, and otherwise manage or provide for the operation, maintenance
and management of Arrowrock Ranch Subdivision Common Area (other than Local
Common Area), including the repair and replacement of property damaged or destroyed by
casualty loss, and maintenance of the private roads.
Specifically, the Association shall, at Grantor's sole discretion, operate and
maintain all properties owned by Grantor which are designated by Granter for temporary
or permanent use by Members of the Association.
5.5.2.2 Reserve Account. Establish and fund a reserve account with a
reputable banking institution or savings and loan association or title insurance company
authorized to do business in the State of Idaho, which reserve account shall be dedicated to
the costs of repair, replacement, maintenance and improvement of the Common Area.
5.5.2.3 Maintenance of Berms. Retaining Walls and Fences. Maintain the
berms, retaining walls, fences and water amenities within and abutting Common Area.
Maintain the water amenities constructed by Grantor or Association located in that certain
easement in, over and through Building Lots as shown on the Plat.
5.5.2.4 Taxes and Assessments. Pay all real and personal property taxes and
Assessments separately levied against Arrowrock Ranch Subdivision Common Area or
against Arrowrock Ranch Subdivision, the Association and/or any other property owned by
the Association. Such taxes and Assessments may be contested or compromised by the
Association, provided, however, that such taxes and Assessments are paid or a bond
insuring payment is posted prior to the sale or disposition of any property to satisfy the
payment of such taxes and Assessments. In addition, the Association shall pay all other
federal, state or local taxes, including income or corporate taxes levied against the
Association, in the event that the Association is denied the status of a tax exempt
corporation.
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5.5.2.5 Water and Other Utilities. Acquire, provide and/or pay for water, sewer,
garbage disposal, refuse and rubbish collection, electrical, telephone and gas and other
necessary services for Arrowrock Ranch Subdivision Common Area, and to manage for the
benefit of Arrowrock Ranch Subdivision all water rights and rights to receive water held by
the Association, whether such rights are evidenced by license, permit, claim, stock
ownership or otherwise. Acquire and operate the sewer system of Arrowrock Subdivision.
5.5.2.6 Insurance. Obtain insurance from reputable insurance companies
authorized to do business in the State of Idaho, and maintain in effect any insurance policy
the Board deems necessary or advisable, including, without limitation the following policies
of insurance:
5.5.2.6.1 Fire insurance including those risks embraced by coverage
of the type known as the broad form "All Risk" or special extended coverage
endorsement on a blanket agreed amount basis for the full insurable replacement
value of all Improvements, equipment and fixtures located within Arrowrock Ranch
Subdivision Common Area.
5.5.2.6.2 Comprehensive public liability insurance insuring the Board,
the Association, the Granter and the individual grantees and agents and employees
of each of the foregoing against any liability incident to the ownership and/or use of
Arrowrock Ranch Subdivision Common Area. Limits of liability of such coverage
shall be as follows: Not less than One Million Dollars ($1,000,000) per person and
One Million Dollars ($1,000,000) per occurrence with respect to personal injury or
death, and One Million Dollars ($1,000,000) per occurrence with respect to property
damage.
5.5.2.6.3 Full coverage directors' and officers' liability insurance with
a limit of at least Two Hundred Fifty Thousand Dollars ($250,000).
5.5.2.6.4 Such other insurance, including motor vehicle insurance
and Workmen's Compensation insurance, to the extent necessary to comply with all
applicable laws and indemnity, faithful performance, fidelity and other bonds as the
Board shall deem necessary or required to carry out the Association functions or to
insure the Association against any loss from malfeasance or dishonesty of any
employee or other person charged with the management or possession of any
Association funds or other property.
5.5.2.6.5 The Association shall be deemed trustee of the interests of
all Owners in connection with any insurance proceeds paid to the Association under
such policies, and shall have full power to receive such Owner's interests in such
proceeds and to deal therewith.
5.5.2.6.6 Insurance premiums for the above insurance coverage shall
be deemed a common expense to be included in the Regular Assessments levied
by the Association.
5.5.2.7 Rule Making. Make, establish, promulgate, amend and repeal such
Association Rules as the Board shall deem advisable.
5.5.2.8 Newsletter. If it so elects; prepare and distribute a newsletter on
matters of general interest to Association Members, the cost of which shall be included in
Regular Assessments.
5.5.2.9 Architectural Committee. Appoint and remove members of the
Architectural Committee, subject to the provisions of this Third Amended Declaration.
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5.5.2.10 Enforcement of Restrictions and Rules. Perform such other acts,
whether or not expressly authorized by this Third Amended Declaration, as may be
reasonably advisable or necessary to enforce any of the provisions of this Third Amended
Declaration, or of the Articles or Bylaws, including, without limitation, the recordation of any
claim of lien with the Ada County Recorder, as more fully provided herein.
5.6 Personal Liability. No Member of the Board, or member of any committee of the
Association, or any officer of the Association, or the Grantor, or the manager, if any, shall be personally liable
to any Owner, or to any other party, including the Association, for any damage, loss or prejudice suffered or
claimed on the account of any act, omission, error or negligence of the Association, the Board, the manager,
if any, or any other representative or employee of the Association, the Granter, or the Architectural
Committee, or any other committee, or any officer of the Association, or the Grantor, provided that such
person, upon the basis of such information as may be possessed by such person, has acted in good faith
without willful or intentional misconduct.
5. 7 Budgets and Financial Statements. Financial statements for the Association shall be
prepared regularly and copies shall be distributed to each Member of the Association as follows:
5. 7.1 A proforma operating statement or budget, for each fiscal year shall be distributed
not less than sixty (60) days before the beginning of each fiscal year. The operating statement shall
include a schedule of Assessments received and receivable, identified by the Building Lot number
and the name of the person or entity assigned.
5.7.2 Within thirty (30) days after the close of each fiscal year, the Association shall cause
to be prepared and delivered to each Owner, a balance sheet as of the last day of the Association's
fiscal year and annual operating statements reflecting the income and expenditures of the
Association for its last fiscal year. Copies of the balance sheet and operating statement shall be
distributed to each Member within ninety (90) days after the end of each fiscal year.
5.8 Meetings of Association. Each year the Association shall hold at least one meeting of the
Members, according to the schedule for such meetings established by the Bylaws; provided, that such
meeting shall occur no earlier than April 15 and no later than May 31 each year. Only Members shall be
entitled to attend Association meetings, and all other persons may be excluded. Notice for all Association
meetings, regular or special, shall be given by regular mail to all Members, and any person in possession of
a Building Lot, not less than ten (10) days nor more than thirty (30) days before the meeting and shall set
forth the place, date and hour of the meeting and the nature of the business to be conducted. All meetings
shall be held within the Property or as close thereto as practical at a reasonable place selected by the Board.
The presence at any meeting in person of the Class 8 Member where there is such a Member, and of the
Class A Members representing Owners holding at least thirty percent (30%) of the total votes of all Class A
Members, shall constitute a quorum. If any meeting cannot be held because a quorum is not present, the
Members present may adjourn the meeting to a time not less than ten (10) days nor more than thirty (30)
days from the time the original meeting was scheduled. A Third meeting may be called as the result of such
an adjournment, provided notice is given as provided above. At any such meeting properly called, the
presence of any Member shall constitute a quorum.
ARTICLE VI: LIGHT MAINTENANCE OF STORM WATER FACILITIES
Operation and maintenance of the storm water facilities at Arrowrock Ranch Subdivision shall be
governed by the operation and maintenance manual of storm drainage system in Arrowrock Ranch
Subdivision, which manual may be modified from time to time at the direction of the Board of the Association.
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ARTICLE VII: RIGHTS TO COMMON AREAS
7.1 Use of Arrowrock Ranch Subdivision Common Area. Every Owner shall have a right to use
each parcel of Arrowrock Ranch Subdivision Common Area, which right shall be appurtenant to and shall
pass with the title to every Building Lot, subject to the following provisions:
7 .1.1 The right of the Association to levy and increase Assessments;
7.1.2 The right of such Association to suspend the voting rights and rights to use of, or
interest in, Common Area by an Owner for any period during which any Assessment or charge
against such Owner's Building Lot remains unpaid; and for a period not to exceed sixty (60) days for
any infraction of the Association Rules; and
7 .1.3 The right of the Association to dedicate or transfer all or any part of the Common
Area to any public agency, authority or utility for such purposes and subject to such conditions as
may be permitted by the Articles and Bylaws and agreed to by the Members. No dedication or
transfer of said Common Area shall be effective unless an instrument agreeing to such dedication or
transfer signed by Members representing two-thirds (2/3) of each class of Members has been
recorded.
7 .1.4 The right of such Association to prohibit the construction of structures or
Improvements, Improvements on all Common Areas.
7.1.5 The right of such Association to prohibit structures, Improvements, including
manicured lawns and nursery plants.
7 .2 Designation of Common Area. Granter shall designate and reserve Arrowrock Ranch
Subdivision Common Area in this Third Amended Declaration, Supplemental Declarations and/or recorded
Plats, deeds or.other instruments and/or as otherwise provided herein.
7.3 Delegation of Right to Use . Any Owner may delegate, in accordance with the respective
Bylaws and Association Rules of the Association, such Owner's right of enjoyment to the Arrowrock Ranch
Subdivision Common Area, to the members of such Owner's family in residence, and such Owner's tenants
or contract purchasers who reside on such Owner's Building Lot. Only Granter or the Association shall have
the right to delegate the right of enjoyment to the Arrowrock Ranch Subdivision Common Area, to the
general public, and such delegation to the general public shall be for a fee set by Grantor or Association.
7.4 Damages. Each Owner shall be fully liable for any damage to any Common Area which
may be sustained by reason of the negligence or willful misconduct of the Owner, such Owner's resident
tenant or contract purchaser, or such Owner's family and guests, both minor and adult. In the case of joint
ownership of a Building Lot, the liability of such Owners shall be joint and several. The cost of correcting
such damage shall be a Limited Assessment against the Building Lot and may be collected as provided
herein for the collection of other Assessments.
ARTICLE VIII: IRRIGATION
8.1 No separate system . There shall not be separate domestic and irrigation water systems for
the subdivision.
8.2 Limitation on Irrigation. Development restrictions do not permit some Building Lots in the
subdivision to be fully irrigated. Restrictions on use of water for irrigation for each Building Lot are reflected
on Exhibit B attached hereto, and incorporated herein.
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ARTICLE IX: DOMESTIC WATER
9.1 Water System Each Building Lot shall have access to the Water System to be constructed
by Grantor and to be owned and operated by Granter (or Grantor's successor), subject to the provisions of
Section 9.12 hereunder. Such Water System may consist of a source(s) of water supply (located on well
lots), pumps, regulators, pipes and other delivery system equipment, and shall provide water for culinary,
other ordinary domestic household use, and irrigation as provided in Article XIII. Owners shall have no right,
title and/or interest in any water and water rights, including groundwater and groundwater rights, ditch and
ditch rights, and storage and storage rights owned by Granter.
9.2 Assessments. Granter shall establish charges for Water System use, which charges may
be adjusted from time to time and which may be assessed through the Association as a Limited Assessment
in connection with each Owner's Building Lot, which assessments shall be transferred to Granter or the
owner of the Water System. Any Owner's or non-Owner's use of the Water System shall constitute an
agreement to pay the charges for such use. At the initial transfer of Building Lots from Granter, Granter shall
have the right to collect user fees from such new Owners of Building Lots, which fees shall cover the costs
associated with the connection of laterals, meters or other plant exclusively for such Building Lot Owner's
use. All such user fees shall be used to partially reimburse Granter for the construction and development
costs in connection with the Water System including, without limitation, administration. Notwithstanding the
foregoing, all Lots shall be metered to measure use of the Water System in connection with each Lot.
Granter may use such meters to establish a reasonable monthly maximum amount of water allowed for use
in connection with each Lot. If any such meter indicates that a Lot Owner uses significantly more water, as
reasonably compared to the amount of water used by other Lot Owners, Granter reserves the right to read
meters regularly and to charge the Lot Owners a Limited Assessment, which Limited Assessment shall be
proportionate to the amount of water used in excess of the reasonable maximum monthly amount. Such
Limited Assessment shall be in addition to the portion of the Regular Assessment associated with the Water
System. Additionally, if any dispute arises between Lot Owners, which dispute alleges unreasonable water
use by another Lot Owner, Granter shall use the water meters to determine the monthly water volume
consumed by such Lot Owners and, if necessary, charge a Limited Assessment to any Lot Owner
consuming significantly more water as reasonably compared to the amount of water used by other Lot
Owners. Any Owner's or non-Owner's use of the Water System shall constitute an agreement to pay the
charges and/or Assessments for such use. Grantor and its successors may also elect to charge each
Owner, at a rate established by Grantor or its successors, for actual water usage as metered.
Granter shall maintain a separate bank account in connection with the Water System and all
charges and/or Assessments and reserve funds collected by Granter relating to the Water System shall be
deposited therein, and revenue in excess of paid operation and maintenance costs shall be held in reserve
for future capital expenditures. When ownership of the Water System is transferred, subject to the
provisions of Section 9.12, Granter shall transfer such bank account and all funds deposited therein to the
new Water System Owner in the manner agreed by Granter and the new Water System Owner.
9.3 Financial Records and Audits. The Water System Owner may arrange periodic third party
financial audits of the Water System financial records.
9.4
System.
Liability Insurance. The Water System Owner shall obtain liability insurance for the Water
9.5 Backflow Systems and Assemblies. Each Lot shall be equipped with approved backflow
prevention systems and assemblies. All backflow prevention assemblies installed on any Lot must be listed
in the most recent edition of the University of California Foundation for Cross-Connection Control and
Hydraulic Research. The backflow prevention system and assembly must be installed on the residential
-service line after the water meter and prior to adding connections to the residential service line. It shall be the
responsibility of each Lot Owner, at such Lot Owner's sole cost and expense, to promptly replace any
backflow prevention system and assembly existing on any Lot that is no longer listed on the foregoing list of
approved backflow prevention systems and assemblies. Each Lot Owner, at such Lot Owner's sole cost and
expense, shall ensure the correct operation of the backflow prevention system and assembly on such Lot
and shall test the functioning of the backflow prevention system and assembly at least annually and report
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the result of such testing to the Water System Owner. Testing must be performed by a backflow assembly
tester licensed by the State of Idaho.
9.6 Water Quality. The source water quality associated with the public drinking water system
meets all state and federal primary drinking water standards. It shall be noted that the water has been
classified as moderately aggressive and may cause corrosion of metallic plumbing fixtures and fitting. The
potential for corrosion within the water distribution system may cause the water system to complete
additional lead and copper testing in the future.
All public water systems must be evaluated to determine if corrosion control treatment is needed.
As with all other potential contaminants, the developer is responsible for the testing and possible treatment,
but the timing is different for lead/copper testing. While source testing can indicate if corrosion is likely to be
a problem, final testing can only be completed in private homes after the public drinking water system and
house plumbing have stabilized after one year of use. Nevertheless, the initial owner, the developer in this
case, is responsible for water quality testing at the appropriate time, and then providing treatment if required
by state rules. Test results must be submitted to DEQ within fifteen (15} months after the fifth home is
occupied. Five (5) homes must be tested ifthe system will eventually serve less than one hundred (100)
homes. Ten (10) homes must be tested if the system will eventually serve one hundred (100) to five
hundred (500) homes. Contact DEQ for a determination on when to test the next five (5) homes (depends
on how quickly the homes are being built). The owner of the water system must obtain permission from
homeowners to take the tests in the homes and it may be advisable to write that provision into the sale
agreements and/or one of the homeowner's association documents.
The source water as measured is classified as moderately hard and may require home water
softeners to reduce scaling and soap scum. It will be the responsibility of the individual homeowner to
determine if a water softener is needed.
9. 7 Easement for Maintenance. The Grantor and its successors shall have a permanent
easement to go upon the Building Lots and/or Common Area in Arrowrock Ranch to operate and perform
maintenance in connection with the Water System, which operation and maintenance is further described in
that certain Operations Manual for Arrowrock Ranch Water on file with Granter, the Association and the
Idaho Department of Environmental Quality.
9.8 Access to Water System Facilities. Access to Water System wells, pump houses, and other
facilities shall be restricted to the Water System Owner and authorized representatives and contractors of
the Water System. Such facilities shall be excluded from any Common Area access rights held by Lot
Owners. If the Association becomes the Water System Owner, Lot Owner(s) will not have access to Water
System facilities unless the governing board of the Association has designated the Lot Owner(s) as an
authorized representative of the Water System.
9.9 No Separate Water Supply. No separate or individual water supply system, regardless of
the proposed use of the water to be delivered by such system, shall be permitted on any Building Lot unless
such system is approved by all government authorities having jurisdiction including, without limitation, the
Idaho Department of Environmental Quality, and designed, located, constructed and equipped in accordance
with the requirements, standards and recommendations of Grantor, so long as Grantor is the owner of the
Water System, and thereafter by the Board. No Owner may disconnect from the Water System without
approval by Grantor, so long as Granter is the owner of the Water System, and thereafter by the Board;
provided, however, even if an Owner receives permission to disconnect from the Water System, such Owner
shall remain responsible for any and all charges for the Water System in connection with such Owner's
Building Lot.
9.1 O Protection of Water Supply. Water System Owner shall take reasonable measures to
protect any and all wellheads serving the Water System, including, without limitation:
9.10.1 No Parking or Chemical Storage. No parking of equipment or vehicles, storage of
pesticides, herbicides, fertilizers, petroleum products or other toxic or hazardous materials shall be
permitted within a fifty (50) foot radius of the wellhead;
15
9.10.2 No Petroleum Products. Petroleum products and other chemicals shall not be used
on roads within fifty (50) feet of the wellhead;
9.10.3 No Standing Water. No standing water or storm water runoff shall be permitted
within a fifty (50) foot radius of the wellhead; and
9.10.4 Compliance of Water Facilities. Design and construction of all water facilities in the
Subdivision shall be in compliance with all Idaho Department of Environmental Quality and Idaho
Department of Water Resources standards established to minimize the potential for groundwater
contamination including IDAPA 37.03.09-"Well Construction Standards," and IDAPA 58.01-08-550
-"Design Standards for Public Water Systems."
9.11 Termination of Service. With proper water user notification, Grantor or the Water System
owner may deny or terminate water service for one of the following reasons:
9.11.1 Denying or willfully preventing access to water facilities.
9.11.2 Repeatedly exceeding the per water user consumption limit as determined by the
Board.
9.11.3 Repeated violating the policies and procedures of the Association concerning water
use.
9.11.4 Failure to comply with the Association's cross connection control program.
I
9.11.5 Failure to repair leaks for which water user is responsible in a timely manner.
9.11.6 To prevent a violation of local, state or federal health codes.
9.12 Transfer of Water System. During the development phase of the project, the Water System
shall be owned by Grantor; provided, however, Grantor, in its sole discretion, shall convey fee simple title to
the Water System to the Association or other public or private entity ("other Water Provider") following
Grantor's receipt of written authorization for such transfer from the Idaho Department of Environmental
Quality. Modifications to Water System facilities for the purposes of providing water service to nearby
developments shall be made at the sole expense of the Grantor. If the Water System will be transferred to an
entity other than the Association, documentation of the other Water Provider's technical, financial, and
managerial capacity to operate the Water System must be provided to DEQ prior to the transfer. The
Granter may transfer ownership of the Water System after 90 percent (90%) of lots within the subdivision
have requested water service.
In the event the Water System is transferred to the Association or other Water Provider, as the case
may be, Granter shall notify the Association or other Water Provider, as the case may be, in writing of th~
transfer and the Association or other Water Provider, as the case may be, shall be responsible for the
ownership, operation and maintenance of the Water System. When Grantor transfers the Water System to
the Association or other Water Provider, as the case may be, such transfer shall be free and clear of all
encumbrances and liens, except current real property taxes that shall be prorated to the date of such
transfer, reservations, covenants, conditions and restrictions then of record including those set forth in this
Declaration.
When Granter transfers the Water System to the Association or other Water Provider, as the case
may be, the Association or other Water Provider, as applicable, shall contact the Idaho Department of Water
Resources, Western Regional Office, to arrange for any and all water rights appurtenant to the Water
System to be assigned to the Association or other Water Provider, as applicable. If any water rights
appurtenant to the Water System have not been licensed, the Granter shall contact the Idaho Department of
Water Resources, Western Regional Office, to arrange for any and all permits appurtenant to the Water
System to be assigned to the Association or other Water Provider, as applicable.
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If the transfer of the Water System to the Association or other Water Provider, as the case may be,
occurs prior to corrosion control treatment evaluation, Granter shall be responsible for all corrosion control
testing and treatment costs.
If Granter has transferred the Water System to the Association, the Association shall have the right
to transfer, sell or convey the Water System to a public or private entity, conditioned only upon reasonable
assurances that the Water System shall be owned, operated and maintained in a manner that shall provide
service from the Water System to Owners on a continuing basis with quality of service equal to the
Community-Wide Standard, and service that meets all applicable governmental laws, ordinances and
regulations. For purposes of this Article IX, Granter is hereby appointed and made attorney-in-fact for the
Association, with full power of attorney to consummate any such transfer of the Water System.
If the Water System is transferred to the Association, and if the Association is contemplating
dissolution during any time that the Association owns and operates the Water System, the Association shall
contact the Idaho Department of Environmental Quality. The Association shall contract with an entity
approved in writing by the Idaho Department of Environmental Quality to own and operate the Water
System, prior to the Association's dissolution. During any time that the Association owns and operates the
Water System, the Association shall not dissolve without written approval of the Idaho Department of
Environmental Quality.
If Granter does not convey the Water System to the Association or other Water Provider, Grantor
shall have the right to transfer, sell or convey the Water System to a public or private entity, conditioned only
upon approval in writing by the Idaho Department of Environmental Quality and reasonable assurances that
the Water System shall be owned, operated and maintained in a manner that shall provide service from the
Water System to Owners on a continuing basis with good quality of service that meets all applicable
governmental laws, ordinances and regulations. No transfer of the Water System shall occur until the Idaho
Department of Environmental Quality has certified that the existing Water System is in substantial
compliance with state laws, regulations and/or rules.
If Granter transfers ownership of the Water System to the Association, the Association shall collect
Regular Assessments, and may collect Limited Assessments, as set forth in Section 9.2. The amount of
such Assessments shall be reviewed annually by the Association, and may be adjusted annually based on
actual operation and maintenance expenses and projected future capital expenditures. Such Assessments
shall include a reasonable reserve amount for future capital expenditures for facilities maintenance and
replacement. If Granter transfers ownership of the Water System to the Association, the Association shall
maintain a separate bank account in connection with the Water System and all charges and/or Assessments
and reserve funds collected by the Association relating to the Water System shall be deposited therein, and
revenue in excess of paid operation and maintenance costs shall be held in reserve for future capital
expenditures.
If Granter transfers ownership of the Water System to another Water Provider, such other Water
Provider may propose an alternative rate structure, accounting procedures, and/or auditing procedures,
conditioned only upon approval in writing by the Idaho Department of Environmental Quality and reasonable
assurances that the Water System shall be owned, operated and maintained in a manner that shall provide
service from the Water System to Owners on a continuing basis with good quality of service that meets all
applicable governmental laws, ordinances and regulations.
ARTICLE X: ASSESSMENTS
10.1 Covenant to Pay Assessments. By acceptance of a deed to any property in Arrowrock
Ranch Subdivision, each Owner of such property, other than Granter or its successors, hereby covenants
and agrees to pay when due all Assessments or charges made by the Association, including all Regular,
Special and Limited Assessments and charges made against such Owner pursuant to the provisions of this
Third Amended Declaration or other applicable instrument.
10.1.1 Assessment Constitutes Lien. Such Assessments and charges together with
interest, costs and reasonable attorney fees which may be incurred in collecting the same, shall be a
17
charge on the land and shall be a continuing lien upon the property against which each such
Assessment or charge is made.
10.1.2 Assessment is Personal Obligation. Each such Assessment, together with interest,
costs and reasonably attorney fees, shall also be the personal obligation of the Owner of such
property beginning with the time when the Assessment falls due. The personal obligation for
delinquent Assessments shall not pass to such Owner's successors in title unless expressly
assumed by them but shall remain such Owner's personal obligation regardless of whether he
remains an Owner.
10.2 Regular Assessments. All Owners, other than Grantor, are obligated to pay Regular
Assessments to the treasurer of the Association on a schedule of payments established by the Board.
10.2.1 Purpose of Regular Assessments. The proceeds from Regular Assessments are to
be used to pay for all costs and expenses incurred by the Association, including legal and attorney
fees and other professional fees, for the conduct of its affairs, including without limitation the costs
and expenses of construction, improvement, protection, maintenance, repair, management and
operation of the Common Areas, including all Improvements located on such areas owned and/or
managed and maintained by such Association, and an amount allocated to an adequate reserve
fund to be used for repairs, replacement, maintenance and improvement of those elements of the
Common Area, or other property of the Association that must be replaced and maintained on a
regular basis (collectively "Expenses").
10.2.2 Computation of Regular Assessments. The Association shall compute the amount
of its Expenses on an annual basis. The Board shall compute the amount of Regular Assessments
owed beginning the first day of the third month following the month in which the closing of the first
sale of a Building Lot occurred in Arrowrock Ranch Subdivision for the purposes of the Association's
Regular Assessment ("Initiation Date"). Thereafter, the computation of Regular Assessments shall
take place not less than thirty (30) nor more than sixty (60) days before the beginning of each fiscal
year of the Association. The computation of the Regular Assessment for the period from the
Initiation Date until the beginning of the next fiscal year shall be reduced by an amount which fairly
reflects the fact that such period was less than one year.
10.2.3 Amounts Paid by Owners. The Board can require, in its discretion or as provided in
the Articles or Bylaws, payment of Regular Assessments in monthly, quarterly, semi-annual or
annual installments. The Regular Assessment to be paid by any particular Owner, including
Granter, for any given fiscal year shall be computed as follows:
10.2.3.1 As to the Association's Regular Assessment, each Owner shall be
assessed and shall pay an amount computed by multiplying the Association's total advance
estimate of Expenses by the fraction produced by dividing the Building Lots attributable to
the Owner by the total number of Building Lots in the Property.
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10.3 Special Assessments.
10.3.1 Puroose and Procedure. In the event that the Board of the Association shall
determine that its respective Regular Assessment for a given calendar year is or will be inadequate
to meet the Expenses of such Association for any reason, including but not limited to costs of
construction, reconstruction, unexpected repairs or replacement of capital improvements upon the
Common Area, attorney fees and/or litigation costs, other professional fees, or for any other reason,
the Board thereof shall determine the approximate amount necessary to defray such Expenses and
levy a Special Assessment against the portions of the Property within its jurisdiction which shall be
computed in the same manner as Regular Assessments. No Special Assessment shall be levied
which exceeds twenty percent (20%) of the budgeted gross Expenses of such Association for that
fiscal year, without the vote or written assent of the Owners representing a majority of the votes of
the Members of such Association. The Board shall, in its discretion, determine the schedule under
which such Special Assessment will be paid.
10.3.2 Consistent Basis of Assessment. Every Special Assessment levied by and for the
Association shall be levied and paid upon the same basis as that prescribed for the levying and
payment of Regular Assessments for such Association.
10.4 Limited Assessments. Notwithstanding the above provisions with respect to Regular and
Special Assessments, a Board may levy a Limited Assessment against a Member as a remedy to reimburse
the Association for costs incurred in bringing the Member and/or such Member's Building Lot into compliance
with the provisions of the governing instruments for Arrowrock Ranch Subdivision.
10.5 Uniform Rate of Assessment. Unless otherwise specifically provided herein, Regular and
Special Assessments shall be fixed at a uniform rate per Building Lot for all Members of the Association.
10.6 10.6 Assessment Period. Unless otherwise provided in the Articles or Bylaws, the
Assessment period shall commence on January 1 of each year and terminate December 31 of the year in
which the Initiation Date occurs. The first Assessment shall be pro-rated according to the number of months
remaining in the fiscal year and shall be payable in equal monthly installments.
10.7 10.7 Notice and Assessment Due Date. Ten (10) days prior written notice of Regular and
Special Assessments shall be sent to the Owner of every Building Lot subject thereto, and to any person in
possession of such Building Lot. The due dates for installment payment of Regular Assessments and
Special Assessments shall be the first day of each month unless some other due date is established by the
Board. Each monthly installment of the Regular Assessment or Special Assessment shall become
delinquent if not paid within ten (10) days after the levy thereof. There shall accrue with each installment that
is not paid within thirty (30) days after the due date shall accrue a late fee as set by the Board. The
Association may bring an action against the delinquent Owner and may foreclose the lien against such
Owner's Building Lot as more fully provided herein. Each Owner is personally liable for Assessments,
together with all interest, costs and attorney fees, and no Owner may exempt such Owner from such liability
by a waiver of the use and enjoyment of the Common Areas, or by lease or abandonment of such Owner's
Building Lot.
10.8 Estoppal Certificate. The Association, upon at least twenty (20) days prior written request,
shall execute, acknowledge and deliver to the party making such request, a statement in writing stating
whether or not, to the knowledge of the Association, a particular Building Lot Owner is in default under the
provisions of this Third Amended Declaration, and further stating the dates to which any Assessments have
been paid by the Owner. Any such certificate delivered pursuant to this paragraph 10.8 may be relied upon
by any prospective purchaser or mortgagee of the Owner's Building Lot. Reliance on such Certificate may
not extend to any default as to which the signor shall have had no actual knowledge.
10.9 Special Notice and Quorum Requirements. Notwithstanding anything to the contrary
contained in either the Bylaws or the Articles, written notice of any meeting called for the purpose of levying
a Special Assessment, or for the purpose of obtaining a membership vote in connection with an increase in
the Regular Assessment, shall be sent to all Members of the Association and to any person in possession of
19
a Building Lot in the applicable Tract, not less than fifteen (15) days nor more than thirty (30) days before
such meeting. At the first such meeting called, the presence of Members or of proxies entitled to cast sixty
percent (60%) of the total votes of the Association shall constitute a quorum. If such quorum is not present,
subsequent meetings may be called subject to the same notice requirement, and the required quorum at the
subsequent meetings shall be fifty percent (50%) of the quorum required at the preceding meeting. No such
subsequent meeting shall be held more than thirty (30) days follow.ing the preceding meeting.
ARTICLE XI: ENFORCEMENT OF ASSESSMENTS; LIENS
11.1 Right to Enforce. The Association has the right to collect and enforce its Assessments
pursuant to the provisions hereof. Each Owner of a Building Lot, upon becoming an Owner of such Building
Lot, shall be deemed to covenant and agree to pay each and every Assessment provided for in this Third
Amended Declaration and agrees to the enforcement of all Assessments in the manner herein specified. In
the event an attorney or attorneys are employed for the collection of any Assessment, whether by suit or
otherwise, or to enforce compliance with or specific performance of the terms and conditions of this Third
Amended Declaration, each Owner agrees to pay reasonable attorney fees in addition to any other relief or
remedy obtained against such Owner. The Board or its authorized representative may enforce the
obligations of the Owners to pay such Assessments by commencement and maintenance of a suit at law or
in equity, or the Board may exercise the power of foreclosure and sale pursuant to paragraph 11.3 to enforce
the liens created hereby. A suit to recover a money judgment for an unpaid Assessment shall be
maintainable without foreclosing or waiving t~e lien hereinafter provided.
11.2 Assessment Liens.
11.2.1 Creation. There is hereby created a claim of lien with power of sale on each and
every Building Lot to secure payment of any and all Assessments levied against such Building Lot
pursuant to this Third Amended Declaration together with interest thereon at the maximum rate
permitted by law and all costs of collection which may be paid or incurred by the Association making
the Assessment in connection therewith, including reasonable attorney fees. All sums assessed in
accordance with the provisions of this Third Amended Declaration shall constitute a lien on such
respective Building Lots upon recordation of a claim of lien with the Ada County Recorder. Such lien
shall be prior and superior to all other liens or claims created subsequent to the recordation of the
notice of delinquency and claim of lien except for tax liens for real property taxes on any Building Lot
and Assessments on any Building Lot in favor of any municipal or other governmental assessing
body which, by law, would be superior thereto.
11.2.2 Claim of Lien. Upon default of any Owner in the payment of any Regular, Special or
Limited Assessment issued hereunder, the Association may cause to be recorded in the office of the
Ada County Recorder a claim of lien. The claim of lien shall state the amount of such delinquent
sums and other authorized charges (including the cost of recording such notice), a sufficient
description of the Building Lot(s) against which the same have been assessed, and the name of the
record Owner thereof. Each delinquency shall constitute a separate basis for a notice and claim of
lien, but any number of defaults may be included within a single notice and claim of lien. Upon
payment to the Association of such delinquent sums and charges in connection therewith or other
satisfaction thereof, the Association shall cause to be recorded a further notice stating the
satisfaction of relief of such delinquent sums and charges. The Association may demand and
receive the cost of preparing and recording such release before recording the same.
11.3 Method of Foreclosure. Such lien may be foreclosed by appropriate action in court or by
sale by the Association establishing the Assessment, its attorney or other person authorized to make the
sale. Such sale shall be conducted in accordance with the provisions of the Idaho Code applicable to the
exercise of powers of sale permitted by law. The Board is hereby authorized to appoint its attorney, any
officer or director of the Association, or any title company authorized to do business in Idaho as trustee for
the purpose of conducting such power of sale or foreclosure.
11.4 Required Notice. Notwithstanding anything contained in this Third Amended Declaration to
the contrary, no action may be brought to foreclose the lien created by recordation of the notice of
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delinquency and claim of lien, whether judicially, by power of sale or otherwise, until the expiration of thirty
(30) days after a copy of such claim of lien has been deposited in the United States mail, certified or
registered, postage prepaid, to the Owner of the Building Lot(s) described in such notice of delinquency and
claim of lien, and to the person in possession of such Building Lot(s), and a copy thereof is recorded by the
Association in the Office of the Ada County Recorder.
11.5 Subordination to Certain Trust Deeds. The lien for the Assessments provided for herein in
connection with a given Building Lot shall not be subordinate to the lien of any deed of trust or mortgage
except the lien of a first deed of trust or first mortgage given and made in good faith and for value that is of
record as an encumbrance against such Building Lot prior to the recordation of a claim of lien for the
Assessments. Except as expressly provided in paragraph 11.6 with respect to a first mortgagee who
acquires title to a Building Lot, the sale or transfer of any Building Lot shall not affect the Assessment lien
provided for herein, nor the creation thereof by the recordation of a claim of lien, on account of the
Assessments becoming due whether before, on, or after the date of such sale or transfer, nor shall such sale
or transfer diminish or defeat the personal obligation of any Owner for delinquent Assessments as provided
for in this Third Amended Declaration.
11.6 Rights of Mortgagees. Notwithstanding any other provision of this Third Amended
Declaration, no amendment of this Third Amended Declaration shall operate to defeat the rights of the
Beneficiary under any deed of trust upon a Building Lot made in good faith and for value, and recorded prior
to the recordation of such amendment, provided that after the foreclosure of any such deed of trust such
Building Lot shall remain subject to this Third Amended Declaration as amended.
ARTICLE XII: INSPECTION OF ASSOCIATION'S BOOKS AND RECORDS
12.1 Member's Right of Inspection. The membership register, books of account and minutes of
meetings of the Board and committees of the Association shall be made available for inspection and copying
by any Member of the Association or by such Member's duly appointed representatives, at any reasonable
time and for a purpose reasonably related to such Member's interest as a Member at the office of the
Association or at such other place as the Board of such Association shall prescribe. No Member or any
other person shall copy the membership register for the purposes of solicitation of or direct mailing to any
Member of the Association.
12.2 Rules Regarding Inspection of Books and Records. The Board shall establish reasonable
rules with respect to:
12.2.1 Notice to be given to the custodians of the records by the persons desiring to make
the inspection.
12.2.2 Hours and days of the week when such an inspection may be made.
12.2.3 Payment of the cost of reproducing copies of documents requested pursuant to this
Article XII.
12.3 Director's Rights of Inspection. Every director shall have the absolute right at any
reasonable time to inspect all books, records and documents of the Association, and the physical properties
owned or controlled by the Association. The right of inspection by a director includes the right to make
extracts and copies of documents.
ARTICLE XIII: ARCHITECTURAL COMMITTEE
13.1 Creation. Within thirty (30) days of the date on which the Grantor first conveys a Building
Lot to an Owner, Grantor shall appoint three (3) individuals to serve on Arrowrock Ranch Subdivision
Architectural Committee ("Architectural Committee"). Each member shall hold office until such time as such
member has resigned or has been removed, or such member's successor has been appointed, as provided
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herein. A member of the Architectural Committee need not be an Owner. Members of the Architectural
Committee may be removed by the person or entity appointing them at any time without cause.
13.2 Grantor's Right of Appointment. At any time, and from time to time, until Granter has sold all
platted Building Lots in Arrowrock Ranch Subdivision, but not less than ten (10) years after the recording
date of this Third Amended Declaration in which Granter is the Owner of any of the Property, Granter shall
have the exclusive right to appoint and remove all members of the Architectural Committee. At all other
times, the Association Board shall have the right to appoint and remove all members of the Architectural
Committee. If a vacancy on the Architectural Committee occurs and a permanent replacement has not yet
been appointed, Granter or the Board, as the case may be, may appoint an acting member to serve for a
specified temporary period not to exceed one (1) year.
13.3 Review of Proposed Construction. The Architectural Committee shall consider and act upon
any and all proposals or plans and specifications submitted for its approval pursuant to this Third Amended
Declaration, and perform such other duties as from time to time shall be assigned to it by the Board,
including the inspection of construction in progress to assure its conformance with plans approved by the
Architectural Committee. The Board shall have the power to determine, by rule or other written designation
consistent with this Third Amended Declaration, which types of Improvements shall be submitted for
Architectural Committee review and approval. The Architectural Committee shall have the power to hire an
architect, licensed with the State of Idaho, to assist the Architectural Committee in its review of proposals or
plans and specifications submitted to the Architectural Committee. The Architectural Committee shall
approve proposals or plans and specifications submitted for its approval only if it deems that the
construction, alterations or additions contemplated thereby in the locations indicated will not be detrimental
to the habitat of the Common Areas, or appearance of the surrounding area of the Property as a whole, that
the appearance of any structure affected thereby will be in harmony with the surrounding structures, and that
the upkeep and maintenance thereof will not become a burden on the Association.
13.3.1 Conditions on Approval. The Architectural Committee may condition its approval of
proposals or plans and specifications upon such changes therein as it deems appropriate, and/or
upon the agreement of the Owner submitting the same ("Applicant") to grant appropriate easements
to the Association for the maintenance thereof, and/or upon the agreement of the Applicant to
reimburse the Association for the cost of maintenance, and may require submission of additional
plans and specifications or other information before approving or disapproving material submitted.
13.3.2 Architectural Committee Rules and Fees. The Architectural Committee also may
establish rules and/or guidelines setting forth procedures for and the required content of the
applications and plans submitted for approval. Such rules may require a fee to accompany each
application for approvals or additional factors which it will take into consideration in reviewing
submissions. The Architectural Committee shall determine the amount of such fee in a reasonable
manner. Such fees shall be used to defray the costs and expenses of the Architectural Committee,
including the cost and expense of hiring an architect licensed by the State of Idaho, as provided
above, or for such other purposes as established by the Board, and such fee shall be refundable to
the extent not expended for the purposes herein stated.
Such rules and guidelines may establish, without limitation, specific rules and regulations
regarding design and style elements, landscaping and fences and other structures such as animal
enclosures as well as special architectural guidelines applicable to Building Lots located adjacent to
public and/or private open space.
13.3.3 Detailed Plans. The Architectural Committee may require such detail in plans and
specifications submitted for its review as it deems proper, including, without limitation, floor plans,
site plans, landscape plans, drainage plans, elevation drawings and descriptions or samples of
exterior material and colors. Until receipt by the Architectural Committee of any required plans and
specifications, the Architectural Committee may postpone review of any plan submitted for approval.
13.3.4 Architectural Committee Decisions. Decisions of the Architectural Committee and
the reasons therefor shall be transmitted by the Architectural Committee to the Applicant at the
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address set forth in the application for approval within thirty (30) days after filing all materials
required by the Architectural Committee. Any materials submitted pursuant to this Article XIII shall
be deemed approved unless written disapproval by the Architectural Committee shall have been
mailed to the Applicant within thirty (30) days after the date of filing said materials with the
Architectural Committee.
13.4 Meetings of the Architectural Committee. The Architectural Committee shall meet from time
to time as necessary to perform its duties hereunder. The Architectural Committee may from time to time by
resolution unanimously adopted in writing, designate a Architectural Committee representative (who may,
but need not be one of its members) to take any action or perform any duties for and on behalf of the
Architectural Committee, except the granting of variances pursuant to paragraph 13.9. In the absence of
such designation, the vote of any two (2) members of the Architectural Committee, or the written consent of
any two (2) members of the Architectural Committee taken without a meeting, shall constitute an act of the
Architectural Committee.
13.5 No Waiver of Future Approvals. The approval of the Architectural Committee of any
proposals or plans and specifications or drawings for any work done or proposed, or in connection with any
other matter requiring the approval and consent of the Architectural Committee, shall not be deemed to
constitute a waiver of any right to withhold approval or consent as to any similar proposals, plans and
specifications, drawings or matter whatever subsequently or additionally submitted for approval or consent.
13.6 Compensation of Members . The members of the Architectural Committee shall receive no
compensation for services rendered, other than reimbursement for expenses incurred by them in the
performance of their duties hereunder and except as otherwise agreed by the Board.
follows:
13.7 Inspection of Work. Inspection of work and correction of defects therein shall proceed as
13.7.1 Upon the completion of any work for which approved plans are required under this
Article XIII, the Owner shall give written notice of completion to the Architectural Committee.
13.7.2 Within sixty (60) days thereafter, the Architectural Committee or its duly authorized
representative may inspect such Improvement. If the Architectural Committee finds that such work
was not done in substantial compliance with the approved plans, it shall notify the Owner in writing of
such non-compliance within such sixty (60) day period, specifying the particular noncompliance, and
shall require the Owner to remedy the same.
13. 7. 3 If upon the expiration of thirty (30) days from the date of such notification, or any
longer time the Architectural Committee determines to be reasonable, the Owner shall have failed to
remedy such noncompliance, the Architectural Committee shall notify the Board in writing of such
failure. Upon notice and hearing, as provided in the Bylaws, the Board shall determine whether
there is a noncompliance and, if so, the nature thereof and the estimated cost of correcting or
removing the same. If a noncompliance exists, the Owner shall remedy or remove the same within a
period of not more than forty-five (45) days from the date of the announcement of the Board ruling
unless the Board specifies a longer time as reasonable. If the Owner does not comply with the
Board ruling within such period, the Board, at its option, may either remove the non-complying
improvement or remedy the noncompliance, and the Owner shall reimburse the Association, upon
demand, for all expenses incurred in connection therewith. If such expenses are not promptly repaid
by the Owner to the Association, the Board shall levy a Limited Assessment against such Owner for
reimbursement pursuant to this Third Amended Declaration.
13.7.4 lffor any reason the Architectural Committee fails to notify the Owner of any
noncompliance within sixty (60) days after receipt of the written notice of completion from the Owner,
the work shall be deemed to be in accordance with the approved plans.
13.8 Non-Liability of Architectural Committee Members. Neither the Architectural Committee nor
any member thereof, nor its duly authorized Architectural Committee representative, shall be liable to the
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Association, or to any Owner or Grantee for any loss, damage or injury arising out of or in any way
connected with the performance of the Architectural Committee's duties hereunder, unless due to the willful
misconduct or bad faith of the Architectural Committee. The Architectural Committee shall review and
approve or disapprove all plans submitted to it for any proposed improvement, alteration or addition, solely
on the basis of aesthetic considerations and the overall benefit or detriment which would result to the
immediate vicinity and to the Property generally. The Architectural Committee shall take into consideration
the aesthetic aspects of the architectural designs, placement of building, landscaping, color schemes,
exterior finishes and materials and similar features, but shall not be responsible for reviewing, nor shall its
approval of any plan or design be deemed approval of any plan or design from the standpoint of structural
safety or conformance with building or other codes.
13.9 Variances. The Architectural Committee may authorize variances from compliance with any
of the architectural provisions of this Third Amended Declaration, including restrictions upon height, size,
floor area or placement of structures, or similar restrictions, when circumstances such as topography, natural
obstructions, hardship, aesthetic or environmental considerations may require. However no variances will be
granted for construction of structures or Improvements, including without limitation manicured lawns, in the
Common Areas. Such variances must be evidenced in writing, must be signed by at least two (2) members
of the Architectural Committee, and shall become effective upon recordation in the office of the County
Recorder of Ada County. If such variances are granted, no violation of the covenants, conditions or
restrictions contained in this Third Amended Declaration shall be deemed to have occurred with respect to
the matter for which the variance was granted. The granting of such a variance shall not operate to waive
any of the terms and provisions of this Third Amended Declaration for any purpose except as to the
particular Building Lot and particular provision hereof covered by the variance, nor shall it affect in any way
the Owner's obligation to comply with all governmental laws and regulations affecting such Owner's use of
the Building Lot, including but not limited to zoning ordinances or requirements imposed by any
governmental or municipal authority.
ARTICLE XIV: EASEMENTS
14.1 Easements of Encroachment. There shall be reciprocal appurtenant easements of
encroachment as between each Building Lot and such portion or portions of the Common Area adjacent
thereto or as between adjacent Building Lots due to the unwillful placement or settling or shifting of the
Improvements including but not limited to structures, walkways, bike paths, sidewalks and driveways
constructed, reconstructed or altered thereon in accordance with the terms of this Third Amended
Declaration. Easements of encroachment shall be valid only so long as they exist, and the rights and
obligations of Owners shall not be altered in any way because of encroachments, settling or shifting of the
Improvements; provided, however, that in no event shall a valid easement for encroachment occur due to the
willful act or acts of an Owner. In the event a structure on any Building Lot is partially or totally destroyed,
and then repaired or rebuilt, the-Owners of each Building Lot agree that minor encroachments over adjoining
Building Lots that existed prior to the encroachment may be reconstructed pursuant to the easement granted
by this paragraph 14.1.
14.2 Easements of Access. Granter expressly reserves for the benefit of all the Property
reciprocal easements of access, ingress and egress for all Owners to and from their respective Building Lots
for installation and repair of utility services, for drainage of water over, across and upon adjacent Building
Lots, and Common Areas, resulting from the normal use of adjoining Building Lots or Common Areas, and
for necessary maintenance and repair of any Improvement including fencing, retaining walls, lighting
facilities, mailboxes and sidewalk abutments, trees and landscaping. Such easements may be used by
Granter, and by all Owners, their guests, tenants and invitees, residing on or temporarily visiting the
Property, for pedestrian walkways, vehicular access and such other purposes reasonably necessary for the
use and enjoyment of a Building Lot or Common Area.
14.3 Drainage and Utility Easements. Notwithstanding anything expressly or impliedly contained
herein to the contrary, this Third Amended Declaration shall be subject to all easements heretofore or
hereafter granted by Granter for the installation and maintenance of utilities and drainage facilities that are
required for the development of the Property. In addition, Granter hereby reserves for the benefit of any
Association the right to grant additional easements and rights-of-way over the Property and/or a Tract, as
24
appropriate, to utility companies and public agencies as necessary or expedient for the proper development
of the Property until close of escrow for the sale of the last Building Lot in the Property to a purchaser.
14.3.1 Improvement of Drainage and Utility Easement Areas. The Owners of Building Lots
are hereby restricted and enjoined from constructing any Improvements upon any drainage or utility
easement areas as shown on the Plat of Arrowrock Ranch Subdivision or otherwise designated in
any recorded document which would interfere with or prevent the easement from being used for
such purpose; provided, however that the Owner of such Building Lots and the Granter, Association
or designated entity with regard to the landscaping easement described in this Article XIV, shall be
entitled to install and maintain landscaping on such easement areas, and also shall be entitled to
build and maintain fencing on such easement areas subject to approval by the Association
Architectural Committee, so long as the same would not interfere with or prevent the easement
areas from being used for their intended purposes; provided, that any damage sustained to
Improvements on the easement areas as a result of legitimate use of the easement area shall be the
sole and exclusive obligation of the Owner of the Building Lot whose Improvements were so
damaged.
14.4 Rights and Duties Concerning Utility Easements . The rights and duties of the Owners of
the Building Lots within the Property with respect to utilities shall be governed by the following:
14.4.1 Wherever utility house connections are installed within the Property, which
connections or any portions thereof lie in or upon Building Lots owned by an Owner other than the
Owner of the Building Lot served by the connections, the Owner of the Building Lot served by the
connections shall have the right, and is hereby granted an easement to the full extent necessary
therefor, to enter upon any Building Lot or to have their agent enter upon any Building Lot within the
Property in or upon which said connections or any portion thereof lie, to repair, replace and generally
maintain the connections as and when it may be necessary.
14.4.2 Whenever utility house connections are installed within the Property, which
connections serve more than one Building Lot, the Owner of each Building Lot served by the
connections shall be entitled to full use and enjoyment of such portions of said connections as
service such Owner's Building Lot.
14.5 Driveway Easements. Whenever a driveway is installed within the Property which in whole
or in part lies upon a Building Lot owned by an Owner other than the Owner of the Building Lot served, or
installed to serve more than one Building Lot, the Owner of each Building Lot served or to be served by such
driveway shall be entitled to full use and enjoyment of such other Building Lot as required to service such
Owner's Building Lot or to repair, replace or maintain such driveway.
14.6 Disputes as to Sharing of Costs. In the event of a dispute between Owners with respect to
the repair or rebuilding of utility connections or driveways, or with respect to the sharing of the cost therefor,
upon written request of one of such Owners addressed to the Association, the matter shall be submitted to
the Board which shall decide the dispute and, if appropriate, make an appropriate Assessm!9nt against any
or all of the Owners involved on behalf of the prevailing Owner(s), which Assessment shall be collected and
enforced in the manner provided by this Third Amended Declaration for Limited Assessments.
14.7_ General Landscape Easement. An easement is hereby reserved to each appropriate
Association, its contractors and agents, to enter those portions of Building Lots, for the purpose of installing,
maintaining, replacing and restoring exterior landscaping, and natural vegetation and habitat. Such
landscaping activity shall include, by way of illustration and not of limitation, the mowing of lawns, irrigation,
sprinkling, tree and shrub trimming and pruning, walkway improvement, seasonal planting and such other
landscaping activities within the Property as such Association shall determine to be necessary from time to
time.
14.8 Overhang Easement. There shall be an exclusive easement appurtenant to each Building
Lot over the Common Areas for overhanging eaves, and for any projections from the buildings, which
projections shall not extend beyond the eave line.
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14.9 Maintenance and Use Easement Between Walls and Lot Lines. Whenever the wall of a
structure, or a fence or retaining wall, constructed on a Building Lot under plans and specifications approved
by the Architectural Committee is located within three (3) feet of the lot line of such Building Lot, the Owner
of such Building Lot is hereby granted an easement over and on the adjoining Building Lot (not to exceed 3
feet from the Building Lot line) for purposes of maintaining and repairing such wall or fence and eaves or
other overhangs, and the Owner of such adjoining Building Lot is hereby granted an easement for
landscaping purposes over and on the area lying between the lot line and such structure or fence so long as
such use does not cause damage to the structure of fence.
ARTICLE XV: MISCELLANEOUS
15.1 Term. The easements created hereunder shall be perpetual, subject only to extinguishment
by the holders of such easements as provided by law. The covenants, conditions, restrictions and equitable
servitudes of this Third Amended Declaration shall run until October 1, 2030, unless amended as herein
provided. After October 1, 2030, such covenants, conditions and restrictions shall be automatically extended
for successive periods of ten (10) years each, unless extinguished by a written instrument executed by
Members holding at least three-fourths (3/4) of the voting power of the Association and such written
instrument is recorded with the Ada County Rec0rder. Further provided that the Association shall not be
dissolved without the prior written approval of the Ada County Highway District, such consent not to be
unreasonably withheld provided that a responsible successor organization shall agree to perform those
maintenance responsibilities arising from applicable city and county governmental requirements.
15.2 Amendment.
15.2.1 By Grantor. Except as provided in paragraph 15.3 below, until the recordation of the
first deed to a Building Lot in the Property, the provisions of this Third Amended Declaration may be
amended, modified, clarified, supplemented, added to (collectively, "amendment") or terminated by
Granter by recordation of a written instrument setting forth such amendment or termination. Any
amendment affecting only a particular Tract may be made by Grantor by an amendment to this Third
Amended Declaration at any time up to the recordation of the first deed to a Building Lot in such
Tract.
15.2.2 By Owners. Except where a greater percentage is required by express provision in
this Third Amended Declaration, the provisions of this Third Amended Declaration, other than this
Article XV, any amendment shall be by an instrument in writing signed and acknowledged by the
president and secretary of the Association certifying and attesting that such amendment has been
approved by the vote or written consent of Owners representing more than fifty percent (50%) of the
votes in the Association, and such amendment shall be effective upon its recordation with the Ada
County Recorder. Any amendment to this Article XV shall require the vote or written consent of
Members holding ninety-five percent (95%) of the voting power of the Association.
15.2.3 Effect of Amendment. Any amendment of this Third Amended Declaration approved
in the manner specified above shall be binding on and effective as to all Owners and their respective
properties notwithstanding that such Owners may not have voted for or consented to such
amendment. Such amendments may add to and increase the covenants, conditions, restrictions
and easements applicable to the Property but shall not prohibit or unreasonably interfere with the
allowed uses of such Owner's property which existed prior to the said amendment.
15.3 Mortgage Protection. Notwithstanding any other provision of this Third Amended
Declaration, no amendment of this Third Amended Declaration shall operate to defeat or render invalid the
rights of the beneficiary under any first deed of trust upon a Building Lot made in good faith and for value,
and recorded prior to the recordation of such amendment, provided that after foreclosure of any such first
deed of trust such Building Lot shall remain subject to this Third Amended Declaration, as amended.
15.4 Notices. Any notices permitted or required to be delivered as provided herein shall be in
writing and may be delivered either personally or by mail. If delivery is made by mail, it shall be deemed to
have been delivered seventy-two (72) hours after the same has been deposited in the United States mail,
26
postage prepaid, addressed to any person at the address given by such person to the Association for the
purpose of service of such notice, or to the residence of such person if no address has been given to the
Association. Such address may be changed from time to time by notice in writing to the Association, as
provided in this paragraph 15.4.
15.5 Enforcement and Non-Waiver.
15.5.1 Right of Enforcement. Except as otherwise provided herein, any Owner of any
Building Lot shall have the right to enforce any or all of the provisions hereof against any property
. within the Property and Owners thereof.
15.5.2 Violations and Nuisances. The failure of any Owner of a Building Lot to comply with
any provision hereof, or with any provision of the Articles or Bylaws of any Association, is hereby
declared a nuisance and will give rise to a cause of action in the Grantor, the Association or any
Owner Building Lot{s) within the Property for recovery of damages or for negative or affirmative
injunctive relief or both. However, any other provision to the contrary notwithstanding, only Grantor,
the Association, the Board, or a duly authorized agent of any of them, may enforce by self-help any
of the provisions hereof only if such self-help is preceded by reasonable notice to the Owner.
15.5.3 Violation of Law. Any violation of any state, municipal or local law, ordinance or
regulation pertaining to the ownership, occupation or use of any property within the Property is
hereby declared to be a violation of this Third Amended Declaration and subject to any or all of the
enforcement procedures set forth in this Third Amended Declaration and any or all enforcement
procedures in law and equity.
15.5.4 Remedies Cumulative. Each remedy provided herein is cumulative and not
exclusive.
15.5.5 Non-Waiver. The failure to enforce any of the provisions herein at any time shall not
constitute a waiver of the right to enforce any such provision.
15.6 Interpretation. The provisions of this Third Amended Declaration shall be liberally construed
to effectuate its purpose of creating a uniform plan for the development and operation of the Property. This
Third Amended Declaration shall be construed and governed under the laws of the State of Idaho.
15.6.1 Restrictions Construed Together. All of the provisions hereof shall be liberally
construed together to promote and effectuate the fundamental concepts of the development of the
Property as set forth in the recitals of this Third Amended Declaration.
15.6.2 Restrictions Severable. Notwithstanding the provisions of the foregoing paragraph
15.6. 1, each of the provisions of this Third Amended Declaration shall be deemed independent and
severable, and the invalidity or partial invalidity of any provision or portion thereof shall not affect the
validity or enforceability of any other provision herein.
15.6.3 Singular Includes Plural. Unless the context requires a contrary construction, the
singular shall include the plural and the plural the singular; and the masculine, feminine or neuter
shall each including the masculine, feminine and neuter.
15.6.4 Captions. All captions and titles used in this Third Amended Declaration are
intended solely for convenience of reference and shall not affect that which is set forth in any of the
provisions hereof.
15.7 Successors and Assigns. All references herein to Grantor, Owners, any Association or
person shall be construed to include all successors, assigns, partners and authorized agents of such
Granter, Owners, Association or person.
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IN WITNESS WHEREOF, President of the Arrowrock Ranch Homeowners Association has set its
hand this __ day of June, 2011.
By:}j~(_
Gerald J. Corvino, Board President
ACKNOWLEDGMENT
STATE OF IDAHO )
) SS.
County of Ada )
On this .).. ;... day of July, 2011, before me, the undersigned, a Notary Public in and for said state,
personally appeared Gerald J Corvino, the person who executed the instrument on behalf of said Idaho
Corporation, and acknowledged to me that such Idaho corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year
in this certificate first above written.
28
EXHIBIT A
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30
ARROWROCK RANCH SUBDIVISION NO. 1 BOOK -'fL. PAGE!!lil_.
CERllflCA TE Of OWNERS SITUATED IN SECTION 3 AND THE
Slfl/4Nlfl/4 or SECTION 2 ~ AU M(N BY nqsc ~: lMA.1' t\iC '..IKCQ~ ~ TM( CWlftS OF TM( RtAl P11QP[=t'.f'r MERtAnt11 Dl$CR!Sll), A>lll "TDill TO INO.IJDf 5'lO RlAI. PROFtllT't 11 T10S SUllllrll$ION'
'I.EGA\. OE5CR1Pi10N
T l N, R I E, 8./.1., ADA COUNTY, WAHO
2005
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(V)
ARROWROCK RANCH 8UBDMSION NO. 1 BOOK .33..-PACE.ill!tL. SITUATED IN SECTION 3 AND THE
Sll/4N111/4 OF SECTION 2
T I N. R I E. B.11.. ADA COUNTV, IDAHO
2005
CERTlflCATE OF SURVEYOR
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~---,H!~ HJllJZ li!I PB 10112 ·
CENTRAL DISTRICT HEALTH DEPARTMENT
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APPROVAL or ADA COUNTY HIGHWAY DISTRICT
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APPROVAL OF COUNTY COMMISSIONERS
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CERTIFICATE or COUNTY SURVEYOR
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C[RTIFICAT[ or COUNTY TREASURER
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COUNTY RECORDERS .CERTIFICATE
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SHEET 4 OF 4 r:::·=---~
N ('t)
EXHIBIT B
Arrowrock Ranch Phase 1 -Irrigation Summary
Building Lot Area Approximate Remaining Watered Unwatered
(Square Feet) Hardscape Square Feet Square Feet Square Feet
(Square Feet)
4 21,534 4,000 17,534 21,780 0
5 21,654 4,000 17,654 21,780 0
6 21,840 4,000 17,840 21,780 0
7 21,887 4,000 17,887 21,780 0
8 27,807 4,000 23,807 21,780 2,027
9 32,640 4,000 28,640 21,780 6,860
10 32,700 4,000 28,700 21,780 6,920
11 32,700 4,000 28,700 21,780 6,920
13 36,983 4,000 32,983 21,780 11,203
14 36,992 4,000 32,992 21,780 11,212
15 43,560 4,000 39,560 21,780 17,780
16 43,560 4,000 39,560 21,780 17,780
17 43,560 4,000 39,560 21,780 17,780
18 43,560 4,000 39,560 21,780 17,780
19 43,560 4,000 39,560 21,780 17,780
20 43,560 4,000 39,560 21,780 17,780
21 43,560 4,000 39,560 21,780 17,780
22 36,992 4,000 32,992 21,780 11,212
23 36,983 4,000 32,983 21,780 11,203
25 32,700 4,000 28,700 21,780 6,920
26 32,700 4,000 28,700 21,780 6,920
27 33,346 4,000 29,346 21,780 7,566
28 23, 128 4,000 19,128 21,780 0
33
29 23, 114 4,000 19, 114 21,780 0
30 23,810 4,000 19,810 21,780 0
31 22,605 4,000 18,605 21,780 0
32 21,773 4,000 17,773 21,780 0
35 22,597 4,000 18,597 21,780 0
36 22,605 4,000 18,605 21,780 0
37 26,331 4,000 22,331 21,780 551
38 22,605 4,000 18,605 21,780 0
39 24,278 4,000 20,278 21,780 0
40 33,728 4,000 29,728 21,780 7,948
41 32,700 4,000 28,700 21,780 6,920
42 32,700 4,000 28,700 21,780 6,920
44 36,983 4,000 32,983 21,780 11,203
45 36,974 4,000 32,974 21,780 11,194
46 43,286 4,000· 39,286 21,780 17,506
47 37,673 4,000 33,673 21,780 11,893
48 43,286 4,000 39,286 21,780 17,506
49 36,974 4,000 32,974 21,780 11,194
50 36,983 4,000 32,983 21,780 11,203
52 32,700 4,000 28,700 21,780 6,920
53 32,700 4,000 28,700 21,780 6 920
54 33,658 4,000 29,658 21,780 7,878
55 31,914 4,000 27,914 21,780 6,134
56 26,982 4,000 22,982 21,780 1,202
57 23,100 4,000 19,100 21,780 0
58 22,605 4,000 18,605 21,780 0
59 22,578 4,000 18,578 21,780 0
34
Total Phase 1 Lots 365,515 Sq. Ft
35
EXHIBITC
"AC GUIDELINES"
Arrowrock Ranch Subdivision
AC Guidelines
Description Guideline
Minimum Living 2,200+ sq. ft.
Space (Single-Story)
Minimum Living 1,200+ sq. ft. for
Space (Two-Story) main floor, and not
less than
2,400 SQ. ft. total
Setbacks Front: 30 ft.; Sides:
20 ft.; Rear: 40 ft.
* setbacks apply to
the residence and all
other structures
Roofing Requirements 30 year architectural
asphalt shingles, or
better
Roof Pitch 6/12 or better, or as
aooroved bv the AC
Landscape See paragraph 4. 18
Requirements
Sprinkler Systems Full sprinkler
systems
Garage Features Detached allowed
only with prior AC
approval; must use
same materials and
similar design as
main residential
structure
Shops & Sheds Allowed only with
prior AC approval;
must use same
materials and similar
design as main
residential structure
Recreational Vehicles Must be enclosed in
garaae or shop
Monument Yard Light No required, but
encouraged
36
Colored stamped Encouraged
concrete sidewalks,
Accents on driveway
and as approved by
AC
Basketball Hoops May not be attached
to house or structure.
Otherwise, as
aooroved bv AC
Fence Grantor shall provide
taupe vinyl fencing
along the
Subdivision's
perimeter. Internal
boundary fences are
discouraged, but may
be installed with prior
AC approval in the 5
ft. black powder
coated wrought iron
design attached
hereto as Exhibit D.
Privacy fencing for
pools and patios may
be approved in
advance by the AC in
vinyl, brick, stone or
stucco.
37
z C> Ci) w c
C> z 0 z w LL
CZ
t-0 -a::: m­:C ..... ~e ::> ~
c w El a::: Q. Q. cc
MONTAGE
' Varies Wilh local Soil & We.ather Condi1ioos
WELDED STEEL ORNAMENTAL FENCE
MAJESTIC 3-RAIL STYLE
., 2" Square Posl
1-114" x 314"
U·Ot~nnel Rail
v-Si8" Square Picket
•. -·-•• ., _.,._ ... .,., ... , .. __________ . ·-·• -----------· I
co C')

EXHIBIT C
From: Nicholas Nydegger <[e-mail]>
Sent: Thursday, September 14, 2023 7:09 AM
To: Larry Squires <[e-mail]>
Cc: [e-mail]; Arrowrock Ranch <[e-mail]>; Hethe
Clark <[e-mail]>; Debbie Taylor <[e-mail]>;
[e-mail]; Greg Johnson <[e-mail]>; Taylor Merrill
<[e-mail]>; [e-mail]; Chris Hecht
<[e-mail]>; Ryan Poole <[e-mail]>; Cody Sprague
<[e-mail]>
Subject: RE: Arrowrock Ranch Water Pressure/Flow Problem with Mayfield Springs Water Company
Larry,
Yes, I will get some dates from DEQ and get back with you.
Regards,
Nick Nydegger
Arrowrock Ranch
From: Larry Squires <[e-mail]>
Sent: Wednesday, September 13, 2023 4:54 PM
To: Nicholas Nydegger <[e-mail]>
Cc: [e-mail]; Arrowrock Ranch <[e-mail]>; Hethe
Clark <[e-mail]>; Debbie Taylor <[e-mail]>;
[e-mail]; Greg Johnson <[e-mail]>; Taylor Merrill
<[e-mail]>; [e-mail]; Chris Hecht
<[e-mail]>; Ryan Poole <[e-mail]>; Cody Sprague
<[e-mail]>
Subject: RE: Arrowrock Ranch Water Pressure/Flow Problem with Mayfield Springs Water Company
Nick,
Thanks for the response. Would you please proceed with setting up the meeting with DEQ as you
suggested? Greg Johnson would like to be at the meeting, but he is out of town until after the first
part of October. Please do not try and schedule anything prior to the 2nd week of October. It would
be helpful to have two or three possible times to choose from as we would like to coordinate our
schedules internally, and also involve a representative from the water engineer firm.
Thanks!
Larry Squires
From: Nicholas Nydegger <[e-mail]>
Sent: Tuesday, September 12, 2023 10:25 AM
To: Larry Squires <[e-mail]>
Cc: [e-mail]; Arrowrock Ranch <[e-mail]>; Hethe
Clark <[e-mail]>; Debbie Taylor <[e-mail]>;
[e-mail]; Mike Woodworth <[e-mail]>; Greg Johnson
<[e-mail]>; Taylor Merrill <[e-mail]>; [e-mail];
Chris Hecht <[e-mail]>; Ryan Poole <[e-mail]>
Subject: RE: Arrowrock Ranch Water Pressure/Flow Problem with Mayfield Springs Water Company
Larry,
Here is our response to the proposals we are discussing. We still believe pump upgrades are then
best choice. I appreciate your insight and efforts. Please see the included file for our full response.
Let me know if you have troubles reading the file.
Best Regards,
Nick Nydegger
Arrowrock Ranch
208-867-7309
From: Larry Squires <[e-mail]>
Sent: Friday, August 25, 2023 10:16 AM
To: Nicholas Nydegger <[e-mail]>
Cc: [e-mail]; Arrowrock Ranch <[e-mail]>; Hethe
Clark <[e-mail]>; Debbie Taylor <[e-mail]>;
[e-mail]; Mike Woodworth <[e-mail]>; Greg Johnson
<[e-mail]>; Taylor Merrill <[e-mail]>
Subject: RE: Arrowrock Ranch Water Pressure/Flow Problem with Mayfield Springs Water Company
Nick,
After reviewing the contents of your emailed letter dated August 17, 2023 with our consultants,
which included Mountain Waterworks engineers and Tom Mehiel, the outside system operator, we