SPINNLER POINT COLONY ASSOCIATION Dock and Slip Management Regulations

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1 Adopted: July 2, 2011 SPINNLER POINT COLONY ASSOCIATION Dock and Slip Management Regulations I. Purpose In accordance with Article V, paragraph 5, of the Spinnler Point Colony Association Bylaws (hereinafter Bylaws ), these regulations record and clarify the rights, privileges and responsibilities of Spinnler Point Colony property owners as they relate to the use of Association-supplied docks and mooring slips. Said privileges and responsibilities of access to and use of Lake Wallenpaupack are conveyed by license to Spinnler Point Colony Association by PPL, Inc. and all actions defined herein are subject to the terms and conditions of that license. These regulations replace and supersede all previous rules, bylaws, resolutions, motions and past practices related to the aforementioned slips and docks. II. Definitions In addition to the definitions listed below all definitions of terms contained in the Association Bylaws and the terms of the PPL license also extend to these regulations. A. Docks: Association docks (hereinafter docks ), refer to the floating, boat-docking systems located at each of the four Association-owned lake access lots (hereinafter areaways ). Said docks consist of a main walkway and multiple mooring berths (hereinafter slips ). B. Slip: A slip is one of the several mooring berths that make up the dock systems and in which a boat, personal water craft or other watercraft may be moored. C. Slip Right: A slip right refers to the exclusive right granted to an individual(s) to moor a boat or other watercraft in a slip on one of the docks owned by the Spinnler Point Colony Association. D. Slip Right Owner: A Slip Right Owner (previously called a dock owner ) refers to a Spinnler Point property owner who owns a completed, fully habitable residence, located within the Spinnler Point Colony, to which is attached the right to use a slip on one of the four Association docks as documented by a Certificate of Slip Rights Ownership. Slip Rights Ownership is attached to the residence and not to the individual(s) owning the residence. E. Ownership: Docks and Slips, as defined herein, are fully owned by the Association. Nothing herein, including the term Slip Rights Owner, shall explicitly or implicitly indicate that docks or slips are owned by any individual or group of individuals. It is specifically understood that the docks and slips are the property of the Association and the concept of "Slip Rights Ownership" is limited to ownership of the right to use the dock facilities and an assigned slip in accordance with the rules contained within these regulations. The access to the lake is a privilege covered by the underlying PPL license. Page 1 of 7

2 F. Assignment/Reassignment: There are three types of assignment/reassignment of Slip Rights. They are: 1. When a residence with attached Slip Rights is sold, the right to slip use is assigned to the new owner in accordance with Article XVII, Section A below. 2. When two Slip Rights Owners decide to permanently exchange slips, the right to slip use is reassigned in accordance with Article XVII, Section B below. 3. When new Slip Rights are available to Spinnler Point Colony Association through any acquisition, (by way of first assignment to a newly completed residence when slips are made available by PPL or by assignment by the Association should it acquire a vacant slip in any manner) the Slip Rights will be reassigned to owners of residential property following the process outlined in Article XVII, Section C below. G. Seniority: Seniority refers to the date on which a Slip Rights Owner is first assigned a slip on one of the Association s Docks. Said seniority applies to each dock independently. The assignment date is the date on which the Slip Rights Owner closes on the purchase of a Spinnler Point residence to which a Slip Right is attached, the date of purchase of a Slip Right from the Association or the date on which a Slip Right Owner transfers from one dock to another. The seniority date is not affected by a change of slips upon a given dock. H. Waiting List: A waiting list is a list, maintained by the Association Dock Committee Chairperson, of non-waterfront Spinnler Point residence owners who have requested, in writing, the assignment or reassignment of a Slip Right. There are two types of lists each based on the date the request is received. 1. Owners of non-lake fronting Spinnler Point Colony residences to which a Slip Rights is not assigned and who are requesting the assignment of a Slip Right when one becomes available. These may include newly constructed residences or existing residences to which a Slip Right is not attached. 2. Current Slip Right owners who request a slip location reassignment from their current assigned slip or dock to another. The procedure for such reassignments is stated below in Article XVII. I. Forfeiture: Slip Rights Owners who are not in good standing are subject to the revocation of their Slip Rights in accordance with the procedures outlined in Article X below. III. Areaway and Dock Committee The Areaway and Dock Committee (hereinafter Dock Committee ) is a committee of the Spinnler Point Colony Association as defined in Article VIII, paragraph 7 of the Association Bylaws. IV. Dock Committee Chairperson The Dock Committee Chairperson shall be responsible for conducting the business of the Dock Committee including but not limited to: formulating, recommending and monitoring regulations governing the use of docks; reassignment of slips; maintaining a waiting list of those wishing slip assignment/reassignment; and coordinating the reassignment of Slip Rights Ownership. V. Finances The Treasurer shall, in consultation with the Dock Committee and the approval of the Board, prepare and recommend to the Association, at the annual meeting, a dock operating budget for the subsequent fiscal year. It shall be consistent with generally accepted accounting principles and include all items of expense and the amount appropriated to each. Page 2 of 7

3 The budget shall also set the amount of assessment to be levied for the fiscal year with said assessment requiring the approval of the Slip Rights Owners. The dock operating budget shall be totally independent of the Association operating budget. All unexpended funds remaining in the operating budget at the end of the fiscal year shall, at the discretion of the Board, be carried forward as free balance or appropriated, in part or totally, as revenue in the dock operating budget for the subsequent fiscal year. The assessment shall be billed along with the Association dues and assessments and shall be due at the same time. The Board may elect to give an early payment discount to encourage prompt payment. The fee shall be fully due on the due date and no partial refunds shall be made for sales or forfeitures neither during the year nor for annual surpluses of funds set aside for specific purposes. A new owner shall, however, be given credit for any such payment and his or her Annual Fee be considered paid until the next Annual Fee is due. When the Dock Committee, with the approval of the Board, determines a need for a capital project related to the docks, a capital budget shall be proposed to the Association as prescribed in Article IV, paragraph 4 of the Association Bylaws. VI. Maintenance: The Dock Committee shall provide for the annual installation and removal of the docks. It shall also provide for the adjustment, repair and replacement of the docks and slips as needed. All maintenance costs shall be provided for within the annual operating budget. VII. Slip Right Ownership: Except as provided in Article XV there are no transferable or retention rights to Slip Right Ownership other than the right to include the Slip Right as part of a sale of the residence to which the right is assigned. In no case shall any person or entity retain Slip Rights Ownership after the sale of a residence to which is attached said ownership. Except in the event of forfeiture of Slip Rights Ownership (Article II, Section I), nothing shall impede the right of an owner to transfer his Slip Rights Ownership to a new owner upon the sale of the related residence. New Slip Rights Owners shall be responsible for any fees and/or assessments due including those owed by the former owner. Slip Rights ownership shall not begin until all fees due are paid in full. Households (As defined in the Association Bylaws) owning multiple residences to which are attached Slip Rights Ownership are entitled to multiple Slip Rights Ownerships. The ways by which Slip Rights Ownership may be attained are to purchase a residence to which is attached Slip Rights Ownership, to inherit or be given such property or to purchase a Slip Rights Ownership from the Association as they become available. VIII. Representative: Any member of a Household which owns a residence with Slip Rights Ownership may represent his or her Household in all matters concerning the Docks and Slips. The representative shall, in all cases, be a person who has at least partial ownership interest in the property. IX. Number of Slip Rights Owners: The number of residences with Slip Rights Ownership shall be limited to the number of slips available. There shall be only one Slip Rights Ownership attached to any one eligible residence. Page 3 of 7

4 X. Slip Owner in Good Standing: A Slip Rights Owner is in good standing if he or she is a member in good standing in the Spinnler Point Colony Association (See Article II, paragraph 4 of Association Bylaws) and has paid all annual assessments due. Any Slip Rights Owner not in good standing shall be prohibited from speaking or voting on any issue involving docks and slips. A Slip Rights Owner who is in arrears with regard to Association and/or dock dues and assessments for twelve (12) months shall be subject to forfeiture of Slip Rights Ownership. Whenever a Slip Rights Owner(s) is in arrears for twelve (12) months, he/she shall be notified by Certified Mail/Return Receipt Requested that revocation of the Slip Rights Owner's "Certificate of Slip Rights Ownership" is being considered. The Slip Rights owner shall be provided with thirty (30) days from the receipt of the notification to make payment in the amount of the arrears or to request an extension, in writing, based on a temporary hardship. If an extension is requested, the Board, at its sole discretion, may grant a date certain extension or reject the request. If the Board determines that there is sufficient cause to revoke the Slip Rights Owner's "Certificate of Slip Rights Ownership" it shall, thereafter, sell the Slip Rights Ownership for the then standard price (See Article XIV). The proceeds shall be used to pay outstanding fees and assessments with interest. The balance shall be held in escrow and used for legal expenses should the actions of the Board be challenged. Upon the written and notarized release of the Association from future financial obligation, by the former Slip Rights Owner or the court, the balance of the proceeds shall be paid to the former Slip Rights Owner. XI. Slip Rights Owners Meeting: The agenda of the annual Association meeting shall include matters related to docks and the Slip Rights Ownership. In addition to the dock financial report, the Association Treasurer shall present the proposed budget and proposed assessments for the coming fiscal year. Special meetings of the Slip Rights Owners may be called by the Association President or the Dock Committee Chairperson provided fifteen (15) days notice is provided to all Slip Rights Owners, indicating the time, place and purpose of such meeting. However, special meetings shall not be held without good cause. XII. Sale of Slip Rights Ownership: Except as provided in Article XV, Slip Rights Owners shall not be able to sell, trade, give away or in any way transfer Slip Rights Ownership except with the sale or transfer of the residence to which it is attached to a new owner. Should a Slip Rights Owner no longer wish to retain Slip Rights Ownership, he or she may only sell the Slip Rights Ownership to the Association. The Association shall purchase the Slip Rights Ownership for the then standard price (See Article XIV) and then resell it at the same price to the person at the top of the waiting list, if any. The Association shall not be responsible to pay the previous Slip Rights Owner until such time as the Slip Rights Ownership is resold and proceeds are available. The Association shall have the right to deduct funds from the proceeds sufficient to cover any unpaid fees and interest it may incur. XIII. New Slip Rights Owner Any person who purchases a property which has a Certificate of Slip Rights Ownership, or is assigned Slip Rights Ownership by the Association shall be considered a new Slip Rights Owner and shall begin accumulating seniority as of the date of assignment (See Article II, Section G). Upon sale or transfer of a property, the slip formerly assigned to the seller of the residence shall be offered to the other Slip Rights Owners as provided for in Article XVII below. The new owner of the residence shall be assigned a slip on the same dock. The only exception to this rule shall be the inheritance or other conveyance of a residence with Slip Rights Ownership to a family member (grandparent, parent, spouse, child, grandchild or sibling). In such case, no loss of seniority shall take place. Page 4 of 7

5 XIV. Standard Price: The standard price of a Slip Rights Ownership shall be the price set by the Board. The price shall reasonably reflect the construction cost and present value of the slip taking into account the previous prices paid, and the desire to provide slips at reasonable rates to members of the Association. The standard price shall be set by the Board at the beginning of each fiscal year and shall not be arbitrarily changed within the fiscal year. XV. Transfer of Slip Rights Ownership: Slip Rights Owners may, at their option, transfer their Slip Rights Ownership to another Spinnler Point Colony residence provided said Slip Rights Owner is also the owner of the new residence. Such a transfer may not be made, however, if the new residence already has an attached Slip Rights Ownership or is a lake front property. XVI. Notice of Interest in Assignment/Reassignment: It shall be the responsibility of any Slip Rights Owner or new owner of residential property to which a slip has not been assigned and who desires either dock or slip assignment/reassignment to notify the Dock Committee Chairperson. Such notice shall be in writing and shall be sent by certified mail to the Association post office box. The Chairperson shall maintain a waiting list of all those wishing assignment/reassignment as defined above. The Chairperson shall refer to and only make offers to those Slip Rights Owners who have served notice when open docks and slips become available in accordance with the procedures below (See Article XVII, Section C). In the event of an increase in the number of slips on any dock, all slips on that dock will be assigned/reassigned in accordance with procedures listed in Article XVII, Section C. XVII. Slip Assignment: Dock and slip assignments shall not be changed except as provided for herein. The Dock Committee Chairperson shall keep a waiting list of those persons who have provided notification requests to change dock and/or slip assignments, in order of the date received. Dock and/or slip assignment changes shall be possible only if two Slip Rights Owners agree to exchange their slips, if new slips are added, or if slip assignments become available due to forfeiture or sale to the Association. Vacant slips shall be offered to the remaining Slip Rights Owners on the dock first. Once all slip reassignments are complete, the open slips will be offered to those who are on the Chairperson's waiting list of those wishing dock reassignment, in order of the receipt date. Any Slip Rights Owner who accepts such a transfer to a different dock shall lose his or her dock seniority and seniority will begin accumulating anew on the effective date of the reassignment. The vacated slip will be open to reassignment as detailed above. After all existing Slip Rights Owners are satisfied with the assignments, the remaining slips will be assigned to new Slip Rights Owners. It shall be the responsibility of the Dock Chairperson to issue slip reassignments at the beginning of each season, or as soon as practical upon the sale of a residence. Assignments shall be made on the basis of seniority on the dock but shall not change from year to year unless requested in accordance with the following procedures. Any slip which becomes vacant on a dock shall be filled in the following manner: A. When a slip is vacated because the residence to which it was attached is sold, the following process will be used to reassign the slip: Page 5 of 7

6 Notice asking for reassignment interest will be provided to all Slip Rights Owners on the affected dock by the Dock Chairman, either by or regular mail. Based on responses, the available slip will be reassigned to the most senior responding Slip Rights Owner. Should that result in additional opportunities for slip reassignment, the Dock Chairman will only consult with Slip Rights Owners responding to the original notice, in order of seniority. When all reassignment is complete, the purchaser of the residence shall be assigned the remaining slip. Seniority for all changes shall continue as defined in Article II, Section G. B. When two (or more) Slip Rights Owners agree to exchange slip assignments the following process will be used: Slip Rights Owners may exchange their slips without restriction. In the event that Slip Rights Owners decide to exchange slips they shall notify the Dock Chairperson in writing, signed by both parties. Both parties will retain their seniority status if the exchange has occurred on the same dock but shall begin accumulating seniority as of the date of the mutual reassignment if the exchange occurred between docks. C. When new slips are acquired by the Association the following process will be used to assign/reassign Slip Rights: Notice asking for reassignment interest will be provided to all Slip Rights Owners on the affected dock by the Dock Chairman, either by or regular mail. Based on responses, the available slip will be reassigned to the most senior responding Slip Rights Owner. Should that result in additional opportunities for slip reassignment, the Dock Chairman will only consult with Slip Rights Owners responding to original notice, in order of seniority. When responses from all current slips Rights Owners on the affected dock have been addressed, the resulting vacant slips will be assigned to those property owners on the two waiting lists. The current Slip Rights Owners assigned to other docks and who have submitted requests to relocate to other slips and are on the waiting list will be consulted first in order of the waiting list. When the consultation with the waiting list of current Slip Rights Owners has been completed, the resulting vacant slips will be offered to the waiting list of property owners to which Slip Rights have not been assigned, in order of the their requests on the waiting list, until all vacant slips are assigned. Seniority for all changes shall continue as defined in Article II, Section G. XVIII. Slip Rentals: The following shall govern the rental of Slips. A. When a Slip Rights Owner rents the residence to which slip rights is attached, the persons renting the residence may also use said slip. Renters are defined as people who are renting a house in Spinnler Point Colony and actually live in the community during the rental period. All such rentals involving slip usage shall be monitored by the Dock Committee Chairperson and/or Areaway Chairperson in order to keep our private docks for Spinnler Point Colony residence. B. Any Spinnler Point Property Owner may rent a slip from a Slip Rights Owner. Such slip rental can only be used by the Spinnler Point Property Owner renting the slip and by his/her immediate family (parent, spouse, child, grandchild or sibling). Page 6 of 7

7 C. Property Owners may rent more than one slip. However, a Slip Rights Owner may not rent an additional slip nor may any property owner be permitted to rent more than one slip if other Spinnler Point property owners are thereby precluded from renting an available slip. Property owners must contact the Dock Chairperson prior to executing a rental agreement to determine if other Spinnler Point property owners have expressed interest in leasing a slip. Notice of rentals must be provided to the Dock Chairman immediately upon execution with a written statement signed by both parties. D. There will be no exceptions to the above rules. Adherence to these regulations is the responsibility of the Slip Rights Owner which includes the actions of his or her renters and/or other Household members. Violations may result in action up to and including forfeiture of Slip Rights Ownership. XIX. Areaway Parking and Waterfront Usage: Areaway parking is for the exclusive use of members' automobiles, golf carts or recreational vehicles, as appropriately marked, when utilizing the facilities of the Areaway. Due to limited parking, the parking of trailers OF ANY KIND is strictly prohibited. The only exception shall be for members night fishing between 9 p.m. and 7 a.m. Overnight parking or personal use of Areaway parking is strictly prohibited. Parking of ATV s, trailers or other motor vehicles on or along the shoreline is prohibited. All Watercraft, including jet skis, wave runners, canoes, row boats, et al, must be moored within the confines of assigned slips. No temporary moorings of any kind are permitted within the confines of Areaway waters. Nor may any watercraft be left along the shoreline, either beached or tethered, at any time. Violations or misuse of Areaways may lead to financial penalties. XX. Boat Size Regulations: Motor boats moored in Association docks shall not exceed twenty-three (23) feet in overall length. Pontoon and sail boats shall not exceed twenty-six (26) feet in overall length. Page 7 of 7

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