SPINNLER POINT COLONY ASSOCIATION Dock Owner Rules (As Amended 7/4/04)

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1 SPINNLER POINT COLONY ASSOCIATION Dock Owner Rules (As Amended 7/4/04) Dock and Slip Management Regulations Second Draft Revised Per 4/4/09 Board Meeting Purpose: To record and clarify the rights, privileges and responsibilities of the Dock Association and the individual Dock Owners as they relate to the use of Dock Association supplied docks and slips. This agreement will supersede all previous agreements between the parties concerning such slips and docks. 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. These regulations replace and supersede all previous rules, bylaws, resolutions, motions and past practices related to the aforementioned slips and docks. II. Definitions 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 Rights Owner: A Slip Rights Owner (previously called a dock owner ) refers to a Spinnler Point property owner who owns a fully 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. D. 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. E. All definitions of terms contained in the Association Bylaws also extend to these regulations. Dock Committee: The Dock Committee is a committee of the Spinnlers Point Colony Association. It exists for the purpose of providing and maintaining docks and slips for the use of its Dock Owners and their guests. It shall be composed of the Chairman and the individual Dock Chairman. Page 1 of 10

2 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. As with all Association committees, the Dock Committee operates in accordance with Association Bylaws and with the oversight of the Board of Directors. As such, the duties of the Officers of the Association, including the Secretary and Treasurer, shall extend to matters related to the areaways and docks. Officers: The Dock Owners shall nominate and elect officers including a Chairman and a Dock Chairman of each dock. It shall be the purpose of the Officers to conduct the business of the Dock Committee, formulate an publish rules for use of the docks, maintain a waiting list of those wishing dock ownership, handle the sale of Dock Ownership to new Dock Owners and seize slips which are forfeited by their Dock Owners. 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; assignment of slips; maintaining a waiting list of those wishing slip assignment; coordinating the sale, transfer or reassignment of Slip Ownership; and the nullification of Slip Rights Ownership for reasons specified herein. Annual Fee: The Dock Committee shall set an Annual Fee. This fee shall be based on the previous year's Treasurer's Report and on a proposed budget as prepared by the Dock Committee. The fee shall be billed along with the Association's Annual Fee and shall be due at the same time. The Committee 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 during the year nor for annual surpluses of funds set aside for specific purposes. A new slip owner shall, however, be given credit for any such payment and his Annual Fee be considered paid until the next Annual Fee is due. Finances: It shall be the purpose of the Annual Fee to make the Dock Committee financially independent. It shall not generate a profit nor shall it operate at a loss. Should either happen, it will be corrected by the following year's fee. The Committee shall have the right to set aside funds for specific future purposes which shall not be considered profits. Fund shall be held in the Association Treasury and shall be accounted for separately by the Association Treasurer. (Added by By-Law change July 4, 1999 Annual Meeting). All future extraordinary expenses will be obtained by special assessment. V. Finances A. 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. 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. Page 2 of 10

3 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 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. Liability: Nothing herein shall indicate the docks and slips are owned by any or all individual Dock Owners. This shall include the use of the words "Dock Owner." It is specifically understood that the docks and slips are the property of the Association and the concept of "Dock Ownership" shall only imply ownership of the right to lease and use the dock facilities in accordance with the rules contained herein. All liability of ownership shall remain with the Association. The above is included in definitions. See below regarding liability. Insurance: The Dock Committee through the Association shall provide Liability Insurance coverage, through the Board of Directors. Delete the above since liability insurance is assumed to be provided under the Association s blanket coverage. Maintenance: The Dock Committee shall provide for the annual installation and removal of the docks. In addition, it shall provide for the adjustment, repair and replacement of the docks and slips as needed. Such maintenance costs shall be the responsibility of the Dock Owners and shall be split equally. 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. Dock Owner: A Dock Owner shall be a family group or other living unit which owns and/or resides at the above address. Multiple property ownership shall not entitle any family or group to multiple dock ownership. Adult children of Dock Owners who hold full ownership interest in a separate property which has a fully functioning, self-sufficient living unit shall qualify to apply for Dock Ownership. The principle means of obtaining Dock Ownership is to purchase a property which currently has Dock Ownership, to inherit or be given such property or to purchase a Dock Ownership from the Dock Committee as they become available from time to time. Notwithstanding any other term or provision included herein, this dock ownership provision attaches solely to a property owner who currently resides in and/or could reside in a fully completed, fully habitable residence located within Spinnler Point which has been provided, if applicable, a Certificate of Occupancy and/or a Certificate of Use. (Amended July 7, 2002 by the General Membership). Page 3 of 10

4 VII. Slip Ownership: Slip Ownership shall be restricted to qualified Households (as defined in Article II, paragraph 3 of Association Bylaws). However, Slip Rights Ownership is attached to the residence and NOT to the individual/s owning the residence. Transfer of Slip Rights Ownership from one residence to another may only be effected by the Board of Directors as stated in Sections XII and XIV. Households owning multiple residences to which are attached Slip Ownership are entitled to multiple Slip Ownerships. In no case shall any person or entity be able to 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, 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 ownership shall not begin until all fees due are paid in full. 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. Representative: Each Dock Owner shall designate an individual as a representative who is authorized to act in all matters concerning the Dock Committee. The representative shall in all cases be a person who has at least partial ownership interest in the property. 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. Number of Dock Owners: The number of Dock Owners shall be limited to the number of slips available. Each Dock Owner shall be entitled to own one slip. There shall be only one Dock Owner from any one property, family or other group except as provided for above. IX. Number of Dock Owners: The number of Households 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. Dock Owner in Good Standing: A Dock Owner in good standing shall be one who has paid his Annual Fees to date. Any Dock Owner not in good standing shall be prohibited from speaking or voting at any Dock Committee meeting. Dock Owners must also be a "member in good standing" in the Spinnler Point Colony Association. Failure to pay Association dues and assessments for twelve (12) months shall subject the Dock Owner to forfeiture as provided for below. 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 subject the Slip Rights Owner to forfeiture of Slip Rights Ownership. Page 4 of 10

5 In the event that forfeiture action is being considered by the Board, due to delinquent payment of assessments beyond twelve (12) months, the Slip Rights Owner shall be notified by Certified Mail/Return Receipt Requested at least thirty (30) days prior to such action. If the Board determines that there is sufficient cause to terminate the Slip Rights Owner's "Certificate of Slip Rights Ownership" it shall, thereafter, sell the Slip Rights Ownership for the then standard price. 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. Dock Owner Meeting: The Dock Committee shall hold a general Dock Owner meeting at least once a year. The date and time shall be concurrent with the Spinnlers Point Colony Association meeting. At that time Officers shall be elected, all major business shall be presented for a vote and a Treasurer's Report shall be presented. Special meetings may be held with thirty (30) days notice to all Dock Owners, indicating the time, place and purpose of such meeting. Special meetings shall not be held without good cause. 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. Dock Ownership Runs With the Land: Dock Ownership shall pass with the sale or transfer of the property to the new owner. In no case shall any person or entity be able to retain Dock Ownership after the sale of the underlying property except as provided for herein. Except in the event of forfeiture of Dock Ownership, nothing shall impede the right of an owner to transfer his Dock Ownership to a new owner. New Dock Owners shall be responsible for any back fees due including those owed by the former owner. Dock ownership shall not begin until all fees due are paid in full. The above is covered in Article VII Sale of SLIP Ownership: Dock Owners shall not be able to sell, trade, give away or in any way transfer Dock Ownership except in connection with the transfer of the underlying real estate which must include the living unit. Should a Dock Owner no longer wish to hold Dock Ownership, he may sell his Dock Ownership to the Dock Association. The Dock Committee shall purchase the Dock Ownership for the then standard price and then resell it at the same price to the most senior person on the waiting list, if any. The Dock Association shall not be responsible to pay the previous Dock Owner until such time as the Dock Ownership is resold and proceeds are available. From the proceeds, the Dock Association shall have the right to take funds sufficient to cover any unpaid fees including interest. Page 5 of 10

6 XII. Sale of Slip Rights Ownership: 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 and then resell it at the same price to the most senior person on 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 retain funds from the proceeds sufficient to cover any unpaid fees and interest. Standard Price: The standard price of a Dock Ownership shall be the price set by the Dock Association. The price shall reasonably reflect the fair market value of Dock Ownership taking into account the previous prices paid, and the desire to provide slips at reasonable rates to members of the Association. In no case shall the standard price be arbitrarily changed nor shall it be changed within any one calendar year. XIII. Standard Price: The standard price of a Slip Rights Ownership shall be the price set by the Board. The price shall reasonably reflect the fair market value of Slip Rights Ownership 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. Transfer of Dock Ownership: Dock Owners may, at their option, transfer their Dock Ownership to another Spinnler Point Colony dwelling provided the Dock Owner is the owner of the new dwelling. XIV. Transfer of Slip Rights Ownership: Slip Rights Owners may, at their option, transfer their Slip Rights Ownership to another Spinnler Point Colony residence provided the 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. Delinquent Dock Owners shall be notified by Certified Mail Thirty (30) days prior to action: In the event of forfeiture, the Dock Committee shall sell the Dock Ownership for the then standard price. The proceeds shall be used to pay the outstanding Annual Fees with interest, and the balance shall be held in escrow. The escrow will be used for legal expenses should the Dock Owner challenge the actions of the Dock Association. (Amended July 4, 2004 at the Dock Owners' General Meeting. Bracketed deleted, Italics added). The above is included in Article X Notice of Interest in Reassignment: It shall be the responsibility of any dock owner who desires either dock or slip reassignment to notify the Dock Chairman or Committee Chairman as appropriate. Notice shall be in writing and shall be sent by registered mail to the Association post office box. The Chairman shall maintain a list of all those wishing reassignment. The Chairman shall refer to and only make offers to those Dock Owners who have served notice when open docks and slips become available in accordance with the procedures below. In the event of an increase in the number of slips on any docks, all slips on that dock will be reassigned as per the procedures below. Page 6 of 10

7 XV. Notice of Interest in Reassignment: It shall be the responsibility of any Slip Rights Owner who desires either dock or slip reassignment to notify the Dock Committee Chairperson. Such notice shall be in writing and shall be sent by registered mail to the Association post office box. The Chairperson shall maintain a list of all those wishing reassignment. 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. In the event of an increase in the number of slips on any docks, all slips on that dock will be reassigned as per the procedures detailed herein. Slip Assignment: It shall be the responsibility of the Dock Chairman to issue slip reassignment at the beginning of each season. 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 above. Any slip which becomes vacant on a dock shall be filled in the following manner: it shall be offered to the most senior Dock Owner on that dock; if he elects to take it, becomes his slip until he elects to move again or forfeits his Dock Ownership. His former slip is then offered to the next most senior Dock Owner and so on. If the most senior Dock Owner does not want to take an open slip, it is offered to the next most senior Dock Owner and so until it is taken. As each slip in turn becomes available, it is the prerogative of the Dock Owners by seniority to take or reject the slip. This privilege is only extended to those Dock Owners on the same dock as the vacant slip. When all reassignment is complete new Dock Owners shall be assigned the remaining slips. Dock Assignment: Dock assignments shall not be changed except as provided for below. The Dock Committee Chairman shall keep a list of those persons who wish to change dock assignments. Dock assignment changes shall be possible only if two Dock Owners agree to swap, 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 Dock Owners on the dock first. Once all slip reassignment is complete, the open slips will be offered to those who are on the Chairman's list of those wishing dock reassignment, on the basis of overall seniority. Any Dock Owner who accepts such a transfer shall lose his dock seniority and have to start "at the bottom" of the new dock list. His vacated slip will be open to reassignment as above. After all existing Dock Owners are satisfied with the assignments, the remaining slips will be assigned to any new Dock Owners. XVI. Slip Assignment: Dock and slip assignments shall not be changed except as provided for herein. The Dock Committee Chairperson shall keep a list of those persons who wish to change dock and/or slip assignments. 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 list of those wishing dock reassignment, on the basis of overall seniority. Any Slip Rights Owner who accepts such a transfer to a different dock shall lose his or her dock seniority and have to start "at the bottom" of the new dock list. The vacated slip will be open to reassignment as above. After all existing Slip Rights Owners are satisfied with the assignments, the remaining slips will be assigned to any new Slip Rights Owners. It shall be the responsibility of the Dock Chairperson to issue slip reassignments at the beginning of each season. Assignments shall be made on the basis of seniority on the dock but shall not change from year to year unless requested in accordance the following procedures. Any slip which becomes vacant on a dock shall be filled in the following manner: Page 7 of 10

8 A. It shall first be offered to the most senior Slip Rights Owner on that dock. If he or she elects to take it, it becomes his or her slip until he or she elects to move again or forfeits Slip Rights Ownership. B. If a Slip Rights Owner moves to a new slip, the former slip is then offered to the next most senior Slip Owner, and so on. C. If the most senior Slip Rights Owner does not want to take an open slip, it is offered to the next most senior Slip Rights Owner, and so on until it is taken. D. When a Slip becomes available, it is the prerogative of the Slip Rights Owners, by seniority, to take or reject the slip. This privilege is only extended to those Slip Rights Owners on the same dock as the vacant slip. E. When all reassignment is complete, the new Slip Rights Owner shall be assigned the remaining slip. In addition, any two 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 of their action. In such an exchange the Slip Rights Owners involved also receive the seniority level of the slip to which they moved. New Dock Owner: Any person who purchases a property which has Dock Ownership or purchases a Dock Ownership from the Association or in any other fashion becomes a Dock Owner shall be considered a New Dock Owner and shall have zero seniority. Accordingly, upon sale or transfer of a property, the previous Dock Owner's slip shall be offered to the other Dock Owners as provided for above and the New Dock Owner shall be reassigned on the same dock. The only exception to this rule shall be the inheritance or transfer of ownership with Dock Ownership to a spouse, child or grandchild. In such case, no loss of seniority or reassignment will take place. XVII. New Slip Rights Owner: Any person who purchases a property which has a Certificate of Slip Ownership, purchases a Slip Rights Ownership from the Association or obtains Slip Rights Ownership in any other way, shall be considered a new Slip Rights Owner and shall have zero seniority. Accordingly, upon sale or transfer of a property, the previous Slip Rights Owner's slip shall be offered to the other Slip Rights Owners as provided for in section XVI. The new Slip Rights Owner shall be assigned a slip on the same dock. The only exception to this rule shall be the inheritance or transfer of a residence with Slip Rights Ownership to a spouse, child or grandchild. In such case, no loss of seniority or reassignment will take place. Dock Rentals: (Section added by By-Law change July 4, 1999, Annual Meeting) The owner of a slip may rent that slip only in the following ways: 1. When a Home Owner rents his house the Home Owner's slip is the slip that the renter may use. 2. The Home Owner may then rent a slip for the Home Owner's use only. Such rental can only be used by the owner and his immediate family. (Immediate family is defined as mother, father, daughter and son residing with the Dock Owner within Spinnler Point.) 3. Home Owners who rent more than one slip may do so, providing those rentals do not prevent another Home Owner from renting an additional slip. In other words, no Home Owner will be able to monopolize rental slips available. Rental requests should be submitted to the Areaway Dock Chairman by April 15 th. Page 8 of 10

9 4. Renters are defined as people who are renting a house in Spinnler Point Colony and actually live in the community during that particular rental period. 5. All renters will be constantly monitored by the Dock Chairman in order to keep our private Docks from being opened up to the general public. 6. There will be no exceptions to the above rules. Any violations of these rules is the responsibility of the Home Owner. Continued violations will lead up to and include the Dock Owner's slip being taken (forfeited) by the Dock Association. 7. (See Below)Also related to Docks Areaway parking is exclusively for the use of cars. Due to limited parking at the Areaways, trailers of any kind are prohibited. Violations will lead to forfeiture of Dock Privileges by the Dock Association. Areaway parking is to be used for Areaway Parking only. Not for personal use. XVIII. Slip Rentals: The following shall govern the rental of Slips. A. When a Slip Rights Owner rents the residence to which his or her slip 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 from being opened up to the general public. 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 immediate family. (Immediate family is defined as mother, father, daughter and son residing with the Property Owner within Spinnler Point.) C. Property Owners who rent more than one slip may do so, providing those rentals do not prevent other Property Owners from renting an additional slip. No Property Owner shall be permitted to rent more than one slip if other Spinnler Point property owners are thereby precluded from renting an available slip. All rental requests and notice of available slip rentals must be submitted to the Dock Committee Chairperson by April 15 th. F. 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. Continued violations may result in action up to and including revocation of Slip Rights Ownership. Also related to Docks Areaway parking is exclusively for the use of cars. Due to limited parking at the Areaways, trailers of any kind are prohibited. Violations will lead to forfeiture of Dock Privileges by the Dock Association. Areaway parking is to be used for Areaway Parking only. Not for personal use. XIX. Areaway Parking 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. Likewise, overnight parking or personal use of Areaway parking is strictly prohibited. Violations or misuse of Areaways may lead to action up to and including revocation of Slip Rights Ownership and associated privileges. Page 9 of 10

10 Boat Size Regulations: No motor boat shall exceed twenty-three (23) feet in length and no pontoon or sail boat shall exceed twenty-six (26) feet in length. XX. Boat Size Regulations: Motor boats moored in Association docks shall not exceed twentythree (23) feet in overall length. Pontoon and sail boats shall not exceed twenty-six (26) feet in overall length. Page 10 of 10

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