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Reserve/PP-CS 980617The City With A Beautiful Future P,O. BOX 478 COPPELL, TEXAS 75019 PLANNING DEPARTMENT 255 Parkway Boulevard P.O. Box 478 Coppell, TX 75019 (972) 304-3678 FAX: (972) 304-3570 FAX COVER SHEET PLEASE DELIVER THE FOLLOWING PAGES TO: MR. BILL ANDERSON DIRECT DIAL: TRANSMITTED BY: DATE: 6\17\98 NUMBER OF PAGES 0NCLUDING COVER SHEET): IF YOU DO NOT RECEIVE ALL OF THE PAGle. q. PLEASE CALL BACK AS SOON AS POSSIBLE. PLEASE DIAL DIRECT TO THE PERSON SENDING THIS FAX. THANK YOU. I;KT~IERq' E. ["lAGER (]AVID M. · RUCE A. G'TOGKA~O NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. Attorneys & Cou~elo~s at Law 1800 Lincoln Plaza 500 North Aka~d Dallas, Texas 75201 (214) 965-9900 Fax (214) 965-0010 E,-mail N.,"DH$ ~bUDHS.com June 16, 1998 VIA FACSIMILE//(972)304-3570 AND FIRST CLASS MAIL Ms. Isabelle Moro Planning and Zoning Coordinator City of Coppell P. O. Box 478 Coppell, Texas 75019 RE: Wiibow-Reserve Declaration of Covenants, Conditions and Restrictions Dear Isabellc: In connection with reviewing thc Restrictive Covenants, Conditions and Restrictions from Wilbow-Reserve Development Corporation in reference to the "Reserve," we have completed our review. Upon our review, the Restrictive Covenants, Conditions and Restrictions for the subdivision known as the Reserve, subject to our comments below, meets the minimum requirements of the subdivision regulations and attached appendices for the City of Coppcll, Texas. First, we would add a definition for "common area" or "common maintenance in Article One of the Restrictive Covenants which clearly defines the common Specifically, we would like the following definition in Article One: "Common areas" is that portion of the property, including any improvements thereon, conveyed to the Association free and clear of monetary encumbrances (other than taxes and assessments, including, without limitation, assessments relating to road utility district, levee improvement district, municipal districts, rural districts or other utility districts and/or quasi-governmental districts or any district created pursuant to the laws of the State of Texas) for the common use or benefit of the owners and/or property, designated as 'common areas' on a plat recorded against the property or any portion thereof." Secondly, we would like the inclusion of a provision regarding the duties and responsibilities of maintenance of the common area and to create such fund from the 18977 JUN 16 '98 16:48 FR NICHOLS JCKSON DLLRD 214 965 0010 TO 972~04~570 P.0~/06 Ms, lsabelleMoro June 16,1998 Page 2 membership dues to provide for such maintenance. We would recommend that the language that was included under Article Three of the Declaration of Covenants, Conditions and Restrictions for the Vistas, a copy of which is included herein, is an appropriate example which we find acceptable. Lastly, there needs to be an enforcement provision in favor of thc City regarding rnaintenance of common areas per the subdivision ordinance. So long as these additions are made to the Articles for Westchase, we will be happy to approve the same. If you should have any questions or need additional information, please feel free to contact me. Thank you for your attention to this matter. Sincerely, NICHOLS, JACKSON, DILLARD, By: ~ RI~H/slp Enclosure NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. 18977 (b) Class B. The Class B members will be the Declarant ;~nd any Builder who will be entitled to 3 votes for each unocc.upied Lot they own. The Class B membership will cease and be converted to Class A membership 180 days after the conveyance of the Lot which causes the total votes outstanding in the Class A membership to equal the total votes outstanding in the Class B membership, or l0 years after conveyance of the first Lot to a Class A member, whichever occurs earlier. (c) Suspension. All voting rights of an Owner wilt be suspended during any period in which such Owner is delinquent in the payment of any assessment duly established pursuant to this Article II or is otherwise in default hereunder or under the By-laws or Rules and Regulations of the Association. ARTICLE GENERAL POWERS AND DuTIEs OF BOARD OF DIRE~ORS OF TI-FF. ASSOCIATION Section 3.1 purpose of .M. aintenance Fund. The Board of Directors, for the benefit of the Owners, will provide and will pay for out of the maintenance fund (provided for in Article II above) the following: ' (a) Taxes and assessments and other liens and monetary encumbrances which will properly be assessed or charged against the Common Areas rather than against the individual Owners, if any. (b) Care and preservation of the Common Maintenance Areas. (c) The services ora professional person or management'firm to manage the Association or any separate portion thereof to the extent deemed advisable by the Board of Directors (provided that any contract for management of the Association will be immediately terminable, without cause, by the Association, with no penalty, upon no more than 90 days prior written notice to the managing party), and the services of such other personnel as the Board of Directors will determine to be necessary or proper for the operation of the Association, whether such personnel are empIoyed directly by the Board of Directors or by the manager. (d) Legal and accounting services. (e) A policy or policies of insurance insuring the Association and/or its Board of Directors and officers against any liability to the public or to the Owners (and/or invitees or tenants) incident to the operation of' the Association in any ampunt or amounts as determined by the Board of Directors, including a poliey or poIicies or' insurance as provided herein in Article IV. (0 any applicable laws. Workers compensation insurance to the extent necessary to comply with Declaration of Covenant, Conditions and Restrictions - Page -(~ - g:Xlcgal~df'wnorthXccrs\coppcH.wpd (2-13-98) JUN 16 '98 16:49 FR NICHOLS JCKSON DLLRD 214 965 0010 TO 972~04~570 P.04×06 (b) Cia. ss B. The Class B membem will be the Declarant ;~nd any Builder who will be entitIed to 3 votes for each unocc.upied Lot they own. The Class B membership wil! cease and be converted to Class A membership 180 days after the conveyance of the Lot which causes the total votes outstanding in the Class A membership to equal the total votes outstanding in the Class B membership, or 10 years after conveyance of the first Lot to a Class A member, whichever occurs earlier. (c) Su__~pension. Alt voting rights of an Owner wilt be suspended during any period in which such Owner is delinquent in the payment of any assessment duly established pursuant to this Article II or is otherwise in default hereunder or under the By-laws or Rules and Regulations of the Association. ARTICLE HI CEiVERAL POWERS DUTIES OF BOARD OF D]fRECTO~ OF ~ ASSOCIATION Section 3.1 P, urpose of Maintenance Fund. The Board of Directors. for the benefit of the Owners, will provide and will pay for out of the maintenance fund (provided for in Article II above) the following: (a) Taxes and assessments and other liens and monetary encumbrances which will properly be assessed or charged against the Common Areas rather than against the individual Owners, if any. (b) Care and preservation of the Common Maintenance Areas. (c) The services of a professional person or management'firm to manage the Association or any separate portion thereof to the extent deemed advisable by the Board of Directors (provided that any contract for management of the Association will be immediately terminable, without cause, by the Association, with no penalty, upon no more than 90 days prior written notice to the managing party), and the services of such other personnel as the Board of Directors will determine to be necessary or proper for the operation of the Association, whether such personnel are employed directly by the Board of Directors or by the manager. (d) Legal and accounting services. (e) A policy or policies of insurance insuring the Association and/or its Board of Directors and officers against any liability to the public or to the Owners (and/or invitees or tenants) incident to the operation of the Association in any am?unt or amounts as determined by the Board of Directors, incIuding a poliey or policies of insurance as provided herein in Article IV. (0 any applicable la,vs. Workers compensation insurance to the extent necessary to comply with Declaration of Covenants, Conditions and Restrictions - Page - (; - g:Xlegal~dfwnorth\ccrskcoppcll.wpd (2-13-98) benefit powers (g) Such fidelity bonds as may be required by the By-laws'or as the Board of Directors may determine to be advisable. , (h) Any other materials, supplies, insurance, fumi~re, labor, services, maintenance, repairs, structural alterations, taxes or assessments (including taxes or assessments assessed against an individual Owner) which the Board of Directors is required to obtain or pay for pursuant to the terms of this Declaration or by law or which in its opinion will be necessary or proper for the enforcement of this Declaration. Section 3.2 Powers and Duties of the Board of Directors. The Board of Directors, for the of the Owners, will have the following general powers and duties, in addition to the specific and duties provided for herein and in the By-laws. of the Association: (a) To execute ali declarations of ownership for tax assessment purposes with regard to the Common Areas, if any, on behalf of all'Owners. (b) To borrow funds to pay costs of operation secured by assignment or pledge of rights against delinquent Owners if the Board of Directors sees fit. (c) To enter into contracts, maintain one or more bank accounts, and generally to have all the power necessary for or incidental to the operation and management of the Association. (d) To protect or defend the Common Areas from loss or damage by suit or otherwise, and to provide adequate reserves for replacements. (e) To make reasonable rules and regulations for the operation of the Common lV[aintenance Areas and to amend them from time to time; provided that, any rule or regulation may be amended or repealed by an instrument in writing signed by a majority of the Owners, or with r~spect to a rule applicable to less than all of the Common Areas, by the Owners in the portions affected. ~ (f) To make available for inspection by Owners within 60 days after the end of each fiscal year an annual report, and to make all books and records of the Association available t'or inspection by Owners at reasonable times and intervals. (g) To adjust the amount, collect and use any insurance proceeds to repair damage or replace lost property, and if proceeds are insufficient to repair damage or replace lost property, to assess the Owners in proportionate amounts to cover the deficiency. (h) To enforce the provisions of any rules made hereunder and to enjoin and seek damages from any Owner for violation of such provisions or rules. (i) To collect ail assessments and enforce ali penalties for non-payment, including the filing of liens and institution of legal proceedings. Declaration of Covenants, Conditions and Restrictions - Page ~ 7 - g:~legalklfwnorlh\¢crs\coppell.wpd (2- l 3-98) JUN 16 '98 16:50 FR NICHOLS JCKSON DLLRD ~14 965 0010 TO 9?230435?0 P.06/06 Section 3.3 Board Powers Exclusive. The Board of Dk¢ctors wil~ have th~exclusive right to contract trot. all goods, se~ices and ~nsurance, payment of which is to be made fi.om thc maintenance ~und and the exclusive right and obligation to perform'thc functions of the Board of' Directors, except otherwise provided herein. . Secfiou 3.4 Maintenance Con~racts nad Covenants to Share Costs. The Board of Directors, on behalf of the Association, will have full power and author'icy to contract or enter into covenants to share costs with any Owner or other person or entity for the performance by the Association of services which the Board of Directors is not other'wise r~iuired to perform pursuant to the terms hereof, such contracts or covenants to share costs to be upon such terms and conditions and for such consideration as the Board of Directors may deem proper, advisable and in the best interest of the Association. _S__e_ctiou 3.5 Maintenance of Common Areas and/or Common Maintenance Areas by the. City of Coppelh Should the Association or its Board of Directors fail or refuse to maintain such Common Areas and/or Common Maintenance Areas to City specifications for an unreasonable time, not to exceed 90 days after written request to do so, the City of Coppetl, by and through a majority of its City Council members, will have the same right, power and authority as is herein given to the Association and its Board of Directors to enforce these covenants and levy assessments necessary to maintain the Common Areas and/oi' the Common Maintenance Areas as described herein. It is understood that in such event, the City of Coppell, Te,xas, through its City Council, may elect to exercise the rights and powers of the Association or its Board of Directors, to the extent necessary to take any action required and levy any assessment that the Association might have, either in the name of the Association, or othe~vise, to cover the cost of maintenance of said Common Areas and/or Common Maintenance Areas. ARTICLE IV TITLE TO COlVlIVION A.R,EAS Section 4.1 Association to Hold. The A~ociation will own all Common Areas in fee simple and assume all maintenance obligations with respect to any Common Areas which may be hereafter established. Nothing contained herein will create an obligation on the parlor Declarant to establish any Common Areas. Any owner of property within the Property, including any property that is' annexed into the Property (including, but not limited to, the Drainage Ditch Area), with the permission of Declarant, may convey such property to the Association. The Association shall accept and maintain such property for the benefit of its members, subject to any restrictions set forth in the deed or other instrument transferring such property to the Association. Section 4.2 CreekfDrainage Area. As of the date of' this Declaration, the exact location of the Creek/Drainage Area is uncertain, because the real property on both sides of the Creek/Drainage Area is not plaRed. Therefore, Declarant hereby reserves the right 'to modify the description of the Creek/Drainage Area (increase or decrease the size of the Creek/Drainage Area) in or'der to facilitate the plat'ting of the real property on both sides of the Creek/Drainage Area. Declarant shat[ have the right to convey the Creek/Drainage Area to the Association at any time; provided, however, the conveyance shall occur no later than thirty (30) days after final plats for both sides of the Creek/Drainage Area are filed in the public land records. The Association shall be obligated to accept the conveyance of the Creek/Drainage Area in its then current condition. The Creek/Drainage Area is intended for the control Declaration of Covenants, Conditions and Restrictions - Page - $ - g:\lcgal'~dl'wnorlh\ccrs\coppell.wpd (2-13-98) TOTAL PAGE.06 **