Policy Memorandum #2003-1 
26 June 2003

It is the policy of the Gleneagle Civic Association (GCA), a Colorado nonprofit corporation, as successor in interest to the declarant with respect to the Declaration of Covenants, Restrictions, and Charges for Gleneagle subdivisions, to enforce compliance with these covenants on the part of all property owners and residents within the GCA community in an equitable and consistent manner. This will be accomplished through a Covenants Control Committee (CCC) made up of GCA members reporting to the GCA Board of Directors. The CCC will make periodic surveys of the GCA neighborhood for covenants compliance, take note of complaints submitted by any residents or owners, and report all violations and complaints to the Board. Thereafter, the Board may effect correction of such reported infractions. All actions taken pursuant to this Policy Memorandum shall be authorized by and within the scope of Section 146 of the Declaration.

Procedures

The Covenants Control Committee – The Covenants Control Committee will comprise a chairman and at least four members. The chairman shall be a member of the Board of Directors of the Association. Each of the four regions of the GCA community – Northeast, Northwest, Central, and South -- will be the responsibility of at least one member of the CCC with respect to covenants enforcement.

Surveys – Members of the CCC will conduct surveys of their respective regions approximately once per month and take note of any apparent covenants infractions readily visible from the street. They will also note any construction, landscaping or major maintenance projects underway.

Infractions – Infractions will be categorized as either transient or non-transient in accordance with a list derived from descriptions contained in the covenants and approved by the Board of Directors.

Complaints – Any resident of the GCA community may report a possible transient or non-transient covenants infraction to a member of the CCC or the Board of Directors.

Construction, Landscaping and Major Maintenance Projects – All such projects noted in the surveys or identified by a resident will be brought to the attention of the chairman of the Architectural Control Committee (ACC). In cases where the chairman of the ACC has not approved a project, it will be treated as a non-transient infraction.

Initial Contact Regarding an Infraction – Upon receiving notice of an infraction from the CCC, the Board shall cause a letter to be sent to the resident of the affected property identifying the infraction to his/her attention and requesting correction within 30 days for non-transient infractions and 7 days for transient infractions. In cases where the resident is not an owner, e.g. a lessee, a copy of the letter will be sent to the owner. The letter will be signed by the president of the GCA, and his/her phone number will be provided along with an invitation for the resident or owner, as appropriate, to contact him/her for more information, if desired. The Board will maintain a list of all covenant issues being addressed within the community at any given time.

Initial Follow-up – Approximately 10 days after a letter declaring a transient infraction is sent or 35 days after a letter declaring a non-transient infraction is sent, a CCC member will inspect the residence to see if the infraction has been remedied. For all infractions that have been corrected, the CCC will send a letter of acknowledgement to the resident with a copy to the owner, as appropriate. For infractions that have not been corrected, but the resident or owner has stated his/her intention to take action, the Board may exercise judgment about whether to allow additional time before taking further action.

Subsequent Follow-up – In the case of infractions for which no response is received or observed, the Board will send a second letter entitled SECOND NOTICE by certified mail to the same addressees as previously notified. The Second Notice will note the infraction, the earlier letter, the lack of response, and the intention to begin assessing a fine, per the approved fine schedule. A fine will be assessed 7 days after receipt of the Second Notice for a transient infraction and 30 days after receipt of a Second Notice for a non-transient infraction unless the infraction is corrected or an agreement on an alternative timeframe for correction is negotiated. A copy of the fine schedule and means of collection will be enclosed. If, on later inspection, the infraction is corrected, an acknowledgement letter will be sent.

If 10 or 35 days hence, the infraction is not corrected, a notice of the fine will be sent, with notification that additional fines will be levied every 7 days if the transient infraction is not corrected or every 30 days if the non-transient infraction is not corrected. If a fine is not paid for 60 days or more, the Board of Directors at any time may choose to pursue all remedies available to it, including a collection action or filing a lien against the property. If at any point during this process, the infraction is remedied, the Board may elect to forgive all or part of the fines accrued to date if requested to do so by the resident or owner and presented with suitable justification.

Enforcement Schedule – Non-transient Violations

Approximate Times Action
Day 1 Initial letter sent
Day 35 Property resurveyed for correction of infraction
Day 40 Second letter sent, if no action by resident or owner

Day 75 Property resurveyed for correction of infraction
Day 80 Notice of fine sent, if no action
Day 115 Notice of 2nd fine sent, if no action
Day 150 or later Board considers lien or collection action if fines not paid

Enforcement Schedule – Transient Violations

Approximate Times Action
Day 1 Initial letter sent
Day 10 Property resurveyed for correction of infraction
Day 15 Second letter sent, if no action by resident or owner
Day 25 Property resurveyed for correction of infraction
Day 30 Notice of fine sent, if no action
Day 40 Notice of 2nd fine sent, if no action
Days 50, 60, etc. Notices of additional fines sent, if no action
Day 65 or later Board considers lien or collection action if fines not paid

Record Keeping – The CCC on behalf of the Board will maintain accurate records of all actions taken with respect to covenant infractions.

Board of Directors Action – The Chairman of the CCC or his/her designee will report to the Board of Directors at its regular monthly meeting all covenants infractions that are being addressed. For each infraction that has reached the point where a fine has not been paid for 60 days or more after being levied or no other accommodation made, the Board shall make an explicit decision whether to pursue any of the remedies available to it, including a collection action, filing a lien against the property or taking some other action.

Fine Schedule – The schedule of fines for non-transient and transient infractions is as follows:
Non-transient infractions of the following nature may incur a minimum fine of $250 beginning no less than 60 days after the initial notice of the infraction:
   Residence construction violations Painting schemes
   Easements Storage sheds
   Setback & lot line violations Antennas
   General building standards Fences
   Destroyed or damaged structures Grading
   Roofing materials Landscaping

Non-transient infractions of the following nature may incur a minimum fine of $50 beginning no less than 60 days after the initial notice of the infraction:
   Garages & driveways Junk vehicles
   Maintenance of structures Weed control
   Unsightly property conditions
   Clotheslines

Transient infractions of the following nature may incur a minimum fine of $25 per occurrence beginning no less than 30 days after the initial notice of the infraction:
   Unauthorized parking Trash & garbage cans
   Vehicle maintenance Animal & pet issues
   Recreational, commercial vehicles Unauthorized signs
   Maintenance equipment Offensive activities