FAIRWAY PINES ESTATES OWNERS ASSN

Ocieiiitur 2(tl3 FAIRWAY PINES ESTATES OWNERS ASSN P.O. Box 151. Ridgway CO81432 V. inf. tainmvpinespoa. com MERRY CHRISTMAS and HAPPY NEW YEAR! On behalf of the Fairway Pines Board of Directors, we wish each and every member a very Merry Christmas, and a prosperous and healthy New Year!! Board Approves Association Budget for 2014 We are happy to report that at the November 4, 2013 Board Meeting, the preliminary budget forecast as recommended by the Finance Committee was approved, pending final review on January 6, 2014. At that time, the 2013 budget actuals should be available and both will be posted on-line prior to January 15, 2014 at wwv\.fairwavpinespoa.com. The Association dues for 2014 will reflect a 4.7% increase to $360 per year, which is the first increase in two years. The Finance Committee and Board see no reason that a special assessment will be considered in 2014. The continued reduction of our account receivables as a result of strict enforcement of our collections policy, and related administrative expense reductions have minimized the necessary dues increase. Date for Winter Member Meeting Announced During the November 4, 2013 Board Meeting, the date and location for the Winter Member Meeting was set for Thursday, January 23, 2014 at the Divide Ranch Clubhouse starting at 6:30 PM. We are currently awaiting a bid and menu from True Grit Too to offer a buffet prior, beginning at 5:15 PM. The agenda will be finalized following the January 6 Board Meeting and posted on-line at ww^.fairw^aypinespoa.com and at the Mailbox Kiosk by January 14. Covenants Corner The purpose of Covenants Comer articles contained in each quarterly Newsletter is meant to keep property owners updated on areas that may be of interest. The Covenants state that no structure or improvement of any kind shall be made on any property without prior review and approval of the Architectural Review Committee (ARC). Improvements include seemingly minor areas such a removal of trees or changes in landscaping, or changes in exterior paint/stain colors, etc. 1

Covenants Corner (Continued) If there is any question of whether or not ARC approval is required, members are urged to contact the current committee chair, whose phone number and e-mail address are posted on the Association's website, w^"w.fairwaypinespoa.com. The Association's Architectural Standards are reviewed and updated regularly and are available for member or contractor review on the website noted above. Fairway Pines is a planned unit development (PUD) community, and is required by Colorado law to have covenants, the terms of which are binding on all property owners. The Association has the authority and responsibility under state law, and in the covenants, to adopt rules and regulation to carry out these obligations. The Association's Board and committees are legally required to fairly enforce the covenants, and do not have the option of picking and choosing what, when, or against whom to enforce covenant statutes. Updated Summary of Rules, Procedures and Restrictions Document An updated and condensed version of the Associadon's Rules, Procedures and Restrictions is attached to this Newsletter for member use. We wish to thank the Covenants and Rules Committee for its efforts in updating the attachment. It is intended to be a plain-english version of the Updated Summary (Continued) much more detailed rules, procedures and restrictions applicable to all owners, guests, tenants and invitees of both residential and commercial properties that make up the Fairway Pines community. A copy of this document may also be found on uyvw.fairwaypinespoa.com for your convenience. Inquiries may be directed to the Board via w^-w.fpeoamaryann@gmail.com. Update regarding Association of Dallas Creek Water Users Following is an update on the activities of the Association of Dallas Creek Water Users, Inc., (ADCWU). As mentioned in an email to members several weeks ago, the Fairway Pines Estates Owners Association endorses this effort. On the fundraising front, the association has raised around $20,000 so far from individuals and families. Considering other committed contributions, it expects to raise a total of over $40,000. Since the formation of ADCWU, in late August, the association has focused on fact finding. Board members have reviewed the 2006 Public Utilities Commission (PUC) proceeding, and have had constructive meetings with Jim Willey and Joanne Fairchild of Dallas Creek Water Company (DCWC), and with Mike Berry, General Manager of Tri-County Water Conservancy (TCW). The board's fmdings and conclusions

Update regarding ADCWU (Continued) are described on ADCWU's website, littp://www.dcwaterusers.webs.com. in tlie article titled November 2013 Update. Following are the ADCWU board's conclusions and objectives for the short and long term: the ADCWU website, click on "Contact Us", and complete and submit the email form. If you have any questions or comments, please email them at dcwaterusersfgigmail.com. The long-term interests of water users would be best served by a transition from DCWC to TCW as our water provider. TCW would bring economies of scale, system redundancy, stable and secure water supplies, and a heightened level of service. Such a transition could possibly take several years. Consequently, there is a need to continue working with DCWC, the county, PUC, and others to resolve several issues described in the above-referenced November 2013 Update article. That article also mentions that DCWC is considering filing for a temporary rate increase. The article contains a link to an email message sent by the association to the PUC regarding that potential rate increase. Meanwhile, if you have not yet contributed to ADCWU, go to their website and click on the button "How Do I Contribute". Be sure you give permission to add your name or names to their support list which is displayed on the website. Whether or not you contribute money to this effort, it's important to add your name or names to that support list. Demonstration of broad community support is critical. To give permission to add your name to the support list, email the association at dcwaterusers(5)gmail.com or go to I I

SUMMARY OF RULES & PROCEDURES FOR OWNERS & RENTERS FAIRWAY PINES ESTATES PROPERTY OWNERS ASSOCIATION November 4, 2013 Fairway Pines is a planned unit development [PUD) community. It is required by Colorado law to have and enforce covenants, which are documents each owner should have received and acknowledged when acquiring property within the development. Covenants run with the land, meaning they apply to subsequent owners. The association's board of directors has a legal obligation to fairly enforce all provisions of the covenants, and it has the authority under state law and the covenants to adopt rules and regulations to carry out this obligation. This document was prepared by the association's Covenants and Rules Committee as a plain-english summary of the more significant rules, procedures, and restrictions applying to owners, guests, invitees, and tenants of residential and commercial properties in the Fairway Pines Estates Property Owners Association. For legal or enforcement purposes, users should refer to the association's governing documents, Including the Covenants, By-Laws, ARC Standards, and board-adopted Rules and Procedures, all of which are published on the association's website, www.fairwaypinespoa.com. Enforcement procedures, including opportunity for members to appeal, are provided in the association's governing documents, particularly Section 6 of the Rules and Policies, Covenant and Rule Enforcement Property owners are responsible for the activities of their tenants, guests, and invitees, and shall assure these activities comply with the Covenants and other rules and regulations of the Association. Owners are ultimately responsible for any damages to common elements or other property of the Association caused by their tenant, guest, or invitee, or the guests or invitees of the tenant

TABLE OF CONTENTS Dues & Assessments 2 Fire Mitigation 2 Architectural Review 3 Snow Removal 3 Signs 3 Tree Removal, Vegetation, & Weeds 4 Commercial Activity 4 Occupancy & Use 4 Damage to Common Area 4 Rental/Leasing of Properties 4 Conflicts of Interest 5 Pets 5 Vehicles, Parking & Storage 5 Garage Doors 6 Trash & Garbage 6 Offensive Activity 6 Outdoor Lighting 6 Dues & Assessments HOA dues are required in Fairway Fines. Delinquent dues are unfair to dues-paying members, and the association has a strict policy for collecting delinquent assessments, including liens, Involvement of attorneys, and foreclosure. See Section 8 of the Association Policies and Procedures, Collection of Past Due Assessments. Fire Mitigation Extreme fire conditions can occur on Log Hill Mesa. While streets and the golf course provide more firebreaks than other communities on the Mesa, Fairway Pines has some significant forested areas with enough fuel to get out of control and cause serious damage. Trash, slash piles, or garbage is not permitted to accumulate on any lot Open burning of trash Is not permitted, Emergency burn bans Issued by the board or government agency shall be obeyed. Owners and occupants should be familiar with the Mesa's Evacuation Plan. They are urged to take advantage of community cleanup days, clean pine duff in Ponderosa forested areas, remove low hanging tree branches and dead vegetation (ladder fuels], and create defensible space to reduce the chance of fire from reaching your house, and to give firefighters a chance to protect it 2

Refer to the Log Hill Fire Department's website for more information on the evacuation plan and fire mitigation, www.loghillfire.org. Architectural Review The covenants say that no structure or improvement of any kind shall be made on any property without the review and approval of the Architectural Review Committee (ARC]. Improvements include removal of trees and landscaping. State and federal laws limit the association's control of satellite antennae and energy conservation devices (e.g., solar panels, clothes lines], However, these devices are still subject to ARC review and approval. If there is any question of whether or not ARC approval is required, members are urged to contact the committee chair, whose phone number and email address are posted on the Association's website, www.fairwaypinespoa.com. The association's Architectural Standards are reviewed and updated regularly and are available on the Association's website. Snow Removal Snow clearing of Fairway Pines roads will normally begin within 2-4 hours of an accumulation in excess of 3-4", or prior to 6AM on the morning following a late evening/night snowfall. In general, work will begin with clearing of the major streets, such as Marmot Drive, North and South Badger Trails and Divide Ranch Circle. Questions or issues involving streets in Fairway Pines should be directed to the chair or a member of the Road Committee, Their contact information is available on the association's web site, www.fairwaypinespoa.com. Signs Signs are generally prohibited on residential properties. Real estate sales signs are specifically addressed in both the covenants and the Architectural Standards. Refer to those documents or contact the ARC chair before erecting any kind of sign on properties within the association. The association's ability to regulate patriotic or political expression is limited. Political signs maybe posted no more than 45 days before an election and must be removed within seven days after the election. The American, Colorado, or service flags may be flown at any time. Owners and renters should avoid parking or placing trash cans or other obstacles where they might interfere with snow removal. 3

Tree Removal, Vegetation, & Weeds The covenants and ARC Standards limit tree removal. Owners should contact the ARC chair before removing any indigenous trees or perennial bushes. Unauthorized tree removal may result in the owner having to replace the tree. Weeds should not be allowed to become unsightly or a fire hazard. Additionally, Ouray County has a noxious weed list and a weed management plan requiring property owners to control listed noxious weeds. Information on the county weed program is available on the county's web site http://ouraycountyco.gov/weedcontr ol.html or by calling 970-626-5391. Commercial Activity In general, no business or commercial use Is allowed on any residential lot. However, permission to operate home businesses such as cottage Industries may be granted upon request by the Board of Directors, upon finding that the home business activity will not Interfere with the peace and quiet of the neighborhood. Increase traffic, or create a safety hazard. Residential lots may not be used as a base of operations for businesses that store Inventories, goods, or vehicles or equipment outside of the residence. Occupancy & Use The Covenants say, "Each residential Lot and each unit within a Cluster Lot shall be used for one single family private dwelling only per Lot. designed for the occupancy of and by one family *»*. Family members include domestic help, caregivers, and significant others as well as persons related to one another by bonds of blood or legal ties. In no event shall a residence be occupied by more Individuals than permitted by applicable law, zoning, or other local government regulations." Damage to Common Area Property owners are responsible for the activities of their tenants, guests, and invitees, and shall assure these activities comply with the covenants and other rules or the association. Owners are ultimately responsible for any damages to common elements or other property of the Association caused by their tenant, guest, or invitee, or the guests or invitees of the tenant Rental/Leasing of Properties Before renting or leasing any residential or commercial property 4

within the subdivision, the owner is required to submit a refiindable security deposit and disclose to the association the contact information for the owner and tenant and the names and relationship of all occupants, to include telephone numbers and email addresses. The rules and procedures regarding rental properties are set out in Section 12 of the association's Policies and Procedures, available on the association's website, vyww.fairwaypinespoa.com. Conflicts of Interest Conflicts of interest are not permitted in association affairs. Section 3 of the association's rules and policies sets out the conflict of interest standards that must be followed by association board members, advisors, and committee members, as well as consultants and employees. Pets Pets must be appropriately confined, fenced, leashed, or otherwise under the control of the owner. Ouray County's pet control ordinance defines "control" as the pet is within sight and hearing distance of its custodian AND upon command returns to the immediate vicinity [within four feet) of such person. The ordinance goes on to say that a pet is not under control when it inflicts damage or injury, or harasses, chases or attacks persons, vehicles, cyclists. pedestrians, livestock, other domestic animals, or wildlife, The covenants specify that no more than three pets may be kept on a property. Neglected pets and barking dogs may be considered offensive and subject to enforcement. Vehicles, Parking & Storage The speed limit throughout the development is 25 MPH. Because of the quiet nature of our community, people, dogs, and wildlife are often walking on the streets. Overnight parking on streets within the subdivision is prohibited for any type of vehicle. Exceptions for short term needs may be requested from the board. No abandoned or dilapidated vehicles are permitted on any lot. Except for automobiles or pickups, all vehicles including RVs, cycles, campers, trailers, snowmobiles, commercial vehicles or equipment shall be parked in a garage or screened from view from streets, roads, golf course and neighboring properties by an ARC-approved structure or natural vegetation or terrain. Motor homes, RVs and campers may be hooked up to an owner's water or sewer system and maybe occupied by the owner's guests on a temporary basis and in any event for not more 5

than ten days in any calendar month. Unoccupied RVs may be parked in the driveway for not more than 72 hours for cleaning, loading, or unloading. Garage Doors Open garage doors attract rodents and other wildlife, including bears, and can be unsighdy. The covenants specify that residential garage doors be kept closed at all times unless required to be open to accommodate vehicle entry/exit or maintenance of the door or garage area. Trash & Garbage Trash, slash, and garbage are not allowed to accumulate on any lot. Garbage cans attract bears and other animals. Garbage cans should not be put out on the street until the morning of the trash pickup, and should be removed from the street by the day after the pickup. Trash cans shall be stored inside the garage or an approved enclosure. activities that may be considered offensive: Loud or late-night music, parties, yelling. Verbal or physical disputes, abusive language, etc. Use of firecrackers or unsafe use of fireworks. Barking dogs or neglected pets. Outdoor Lighting Except for holiday lighting, exterior lighting shall be approved by the Architectural Review Committee. Exterior lighting shall comply with Ouray County's Dark Sky Ordinance, which prohibits direct or unshielded lighting. Outside lights should be shielded by opaque or heavily frosted fixtures. Accent lighting is limited to a maximum output of 800 lumens per fixture [40 watt incandescent, or equivalent) regardless of the number of bulbs. Motion detectors shall be set at no more than 10-minute duration after detection. Owners are urged to arrange for a neighbor to put out the garbage if they are not able to do it themselves on the pickup morning. Offensive Activity No noxious or offensive activity, sounds, lights, or odors shall be permitted on any lot Firearms shall not be discharged on any lot Following are some examples of 6