This Information is Useful to Owners and Would-Be Owners of KRCE Property
The Information is Public
My Comments are Based on My Experience With The KRCE and the KRCEOA
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On September 15th 1967, Pacific-Cascade Land Company, Inc. (PCLC) filed the Articles of Incorporation (Articles) for the Klamath River Country Estates Owners' Association, Inc. (KRCEOA). On September 25th 1967, PCLC filed the By-Laws of the KRCEOA. PCLC printed a brochure of the original Articles and By-Laws of the KRCEOA to be given to new owners of land in the Klamath River Country Estates (KRCE). This brochure was used from 1967 until 1974 when revisions were then made.
Klamath River Country Estates is a Siskiyou County-Approved subdivision. KRCE was developed in five increments, known as 'units'. On September 28th 1967, PCLC filed the Covenants, Conditions and Restrictons (CC&Rs) for Unit #1 of the KRCE with the Siskiyou County Recorder's Office to initiate the first unit, UNIT #1, of the project. The CC&Rs for Units #2 through #5 were written and filed as follows:
Unit #2 - June 5th 1968
Unit #3 - October 31st 1968
Unit #4 - April 29th 1969
Unit #5 - August 28th 1969
The CC&Rs for Unit #1 were written with the inclusion of the future four units in mind. Article II(2) of the Unit #1 CC&Rs states that "Additional properties will be brought within the scheme of this Declaration in future stages of this development." [Emphasis in bold is mine.] In legal terms, this means the CC&Rs of Units #2, #3, #4, and #5 would be 'additive' to the CC&Rs for Unit #1. Statements made in the CC&Rs for Unit #1 and the subsequent CC&Rs for the other four Units would be binding on all owners, regardless of which Unit(s) their lot(s) was/were in.
The next five(5) sections on this page give you the Original filed copy of the CC&Rs for each of the five Units of the KRCE in the left column. In the right column is the PDF file for a retyped, reformatted and enhanced copy of the Original file. The text in each of these 'enhanced' files is identical to the text in the original document. The enhancements are meant to make the document easier to understand and to show the areas where each CC&R after Unit #1's was edited by the developers for the specific Unit to which it applied.
If, you had a printed copy of each of the original CC&R documents on a table in front of you and compared each page, section, paragraph and/or sentence you would see obvious differences. These differences are highlighted in the 'enhanced' file and are correct. IF, you remember that the five documents are all additive and if they were all condensed properly into the CC&Rs for Unit #1, then the differences 'go away'. This concept can be difficult to understand for people who are not lawyers.
When people bought land in the KRCE they were given the brochure of the KRCEOA Articles and By-Laws and a copy of the CC&Rs for Unit #1. IF, their land was in Unit #2, #3, #4 and/or #5, they would also receive a copy of the CC&Rs for which of those units their lot was actually located in. Some folks got a wee bit testy when they did not understand the 'additive' concept and read the documents as if they were only applicable to their lot in a specific unit. By 1974, the KRCEOA Board was tired of answering these complaints and decided to 'correct' the problems. There were also some changes needed in the KRCEOA By-Laws given the economic realities. The original By-Laws had fixed the interest rate on delinquent assessment payments and the price for lawyer fees. There was a need for limits as to what the Board could do on its own without Owner votes. The problems extended to other issues.
The Architectural Control Board (ACB) was authorized under the CC&Rs and the guidelines for approval of building plans had been generally defined. In practice, the Board had augmented the original criteria for home design and some were at variance with the original guidelines. There was confusion. A major revision was undertaken in the Articles, By-Laws, CC&Rs and the ACB guidelines. The Board rewrote, edited, corrected and finally got a vote of approval from the Owners for the rewritten documents.
Sometime around March or April of 1974, the Board, under then-President Albert Winslow, combined the Articles, By-Laws, CC&Rs (for Unit #1 ONLY) and the ACB rules and published the first Owners Manual of the KRCE. Most complaints and confusion seemed to be resolved by the Owners Manual. But some problems were caused by the 1974 Owners Manual. The problems were not corrected by the 1980 & 2005 revisions to the Owners Manual. A 2003 attempt to 'make it all right' (my assumption) continued and exacerbated the errors of 1974 and 1980. But first, you need to read the original intent of the Developer as stated in the CC&Rs documents for the five units.
Documents in the left column were filed on these dates by the entity named in the document title.
These electronic files are exact scanned copies of the Document that can be found in a specific Volume, starting on a certain page, continuing through, and including, a certain page, with a certain total of pages, in the Siskiyou County Recorder's Office in Yreka California.
The original documents in the left column were retyped by Will Jensen using Microsoft WORD, and converted to PDF format.
The retyped files were reformatted to modern style and have been enhanced with colored text to show the changes that were made from a previous document to the present document. The CC&Rs document for Unit #1 was the basis for ALL other CC&Rs that came thereafter.
This electronic file is an exact scanned copy of Document #2989 found in Volume 548, starting on page 513 through, and including, page 526, 14 pages total, in the Siskiyou County Recorder's Office in Yreka California.
This specific retyped document for UNIT #1 was reformatted to modern style but is not enhanced. The content is the same as the original filed document and is the basis for ALL other CC&Rs that came thereafter.
This electronic file is an exact scanned copy of Document #10964 found in Volume 559, starting on page 408 through, and including, page 419, 12 pages total, in the Siskiyou County Recorder's Office in Yreka California.
This retyped document for UNIT #2 was reformatted to modern style and is enhanced. The first page explains the colors used to 'highlight' the changes made from the document for Unit #1 to fit Unit #2.
This electronic file is an exact scanned copy of Document #4882 found in Volume 566, starting on page 532 through, and including, page 542, 11 pages total, in the Siskiyou County Recorder's Office in Yreka California.
This retyped document for UNIT #3 was reformatted to modern style and is enhanced. The colors are used to 'highlight' the changes made from the documents for Unit #1 and #2 to fit Unit #3.
This electronic file is an exact scanned copy of Document #10949 found in Volume 575, starting on page 85 through, and including, page 97, 13 pages total, in the Siskiyou County Recorder's Office in Yreka California.
This retyped document for UNIT #4 was reformatted to modern style and is enhanced. The colors are used to 'highlight' the changes made from the documents for Unit #1, #2 and #3 to fit Unit #4.
This electronic file is an exact scanned copy of Document #2346 found in Volume 581, starting on page 42 through, and including, page 55, 14 pages total, in the Siskiyou County Recorder's Office in Yreka California.
This retyped document for UNIT #5 was reformatted to modern style and is enhanced. The colors are used to 'highlight' the changes made from the documents for Unit #1, #2, #3 and #4 to fit Unit #5.
The 'good' news is that this rewrite of the Unit #1 CC&Rs was never filed with the Siskiyou County Recorder's Office in Yreka California. The 'bad' news is that the revised CC&Rs for Unit #1 and the By-Laws of the KRCEOA were apparently 'approved' by the Owners in 1974 and used as the basis for sales from 1974. Title companies still gave new owners copies of the original CC&Rs for each Unit, not the revised ones for Unit #1.
These modified UNIT #1 documents were enhanced by color to 'highlight' the changes made from the original documents for Unit #1. Go to Page 26 in the Owners Manual for the CC&Rs.
Board Letter to Owners about Change to By-Laws
Board Letter to Owners about July 14th 1974 Vote
Deja vu! The 'good' news is that this rewrite of the Unit #1 CC&Rs was also never filed with the Siskiyou County Recorder's Office. The 'bad' news is that again the revised CC&Rs for Unit #1 and the By-Laws of the KRCEOA were apparently 'approved' by the Owners in 1979 and used as the basis for sales from 1980. Title companies still gave new owners copies of the original CC&Rs for each Unit, not the revised ones for Unit #1. Some problems are corrected and others are carried forward after the revision.
These modified UNIT #1 documents were enhanced by color to 'highlight' the changes made from the original documents for Unit #1. Go to Page 5 in the Owners Manual for the CC&Rs.
Depending upon your opinion of the Board members around 2002 and 2003 you will believe that Board actions were of little concern or they were a boiling cauldron of witches brew. A new set of Board members took charge in 2002/2003 and began to militate against the entrenched interests of the former and continuing Board members.
The Annual Assessment was raised by 20%. Protests ensued. A lawsuit against the KRCEOA was started by an owner with many lots who was also a Board member, to recover the increase in the assessment since the raise was not made in a timely manner. A countersuit was initiated by a majority of the other members of the KRCEOA Board asserting misconduct by this same Board member. Some of the old continuing Board members resigned including the member who initiated the original lawsuit.
The new members decided to clean up the problems that they perceived to be present in the KRCEOA management practices. A proposed change to the By-Laws would require two signatures on all KRCEOA checks. The successful required vote of a majority of Owners was noted in the Klamagram of June 1st, 2003.
A decision was taken by a 'person(s) not named' that the CC&Rs also needed to be rewritten to correct some errors and to merge the five original CC&Rs, with the corrections, into a single document. In late August 2014, I requested evidence that a vote of the Owners about the changes to the CC&Rs was ever taken in 2003. To date I have not received proof of an Owner vote approving a CC&Rs change. The "All-In-One" CC&Rs with the attached By-Laws were recorded on August 25th 2003. The effort to rewrite the original Unit #1 CC&Rs and to add to it the legal descriptions for Units #2, #3, #4 and #5 on the first page of the new "All-In-One" CC&Rs was a 'good start' that suddenly went awry.
The attempt to merge the documents stopped after the first page. The remaining detail that was present in each of the original five separate CC&Rs was NOT merged. The remaining unique detail was ignored. Some important sections of the original CC&Rs were omitted by the typist. The cover letter was signed by the then-President of the Board. The cover letter asserted that this new document was approved by the Owners and superseded the five original documents and was now the effective CC&Rs for the KRCE. I suspect that this new All-In-One document was NOT submitted to the Owners for a vote to modify the CC&Rs in 2003! No proof of a vote has been given to me.
Adobe PDF file - August 25th 2003 CC&Rs & By-Laws
This modified UNIT #1 document was enhanced by color to 'highlight' the changes made from the original document for Unit #1. The August 25th 2003 All-In-One document was based on the modified, though never recorded, CC&Rs from 1974 and 1979 (1980) for Unit #1.
Whoever typed and assembled the CC&Rs and By-Laws documents for the August 25th 2003 recording failed to check the correctness of these critical documents before filing. The By-Laws had NOT been edited to include the change about the requirement of two signatures on the KRCEOA checks. The August 2003 recording only had the effect of changing the CC&Rs, probably without a proper vote being conducted to approve the changes.
The error was 'caught' in September and a new set of the CC&Rs and the edited By-Laws was recorded on September 8th 2003.
The flaws in the August 25th 2003 CC&Rs were NOT corrected.
This modified UNIT #1 document was enhanced by color to 'highlight' the changes made from the original document for Unit #1. The September 8th 2003 All-In-One document was a re-recording of the unchanged August 25th 2003 CC&Rs.
Adobe PDF file - Enhanced September 2003 All-In-One CC&Rs (NO By-Laws)
Two changes to the By-Laws were proposed, successfully voted upon and announced in the Klamagram on April 29th 2005. The changes referred to: (1) qualifications to be a member of the KRCEOA Board of Directors (must be an 'Owner' in 'Good Standing') and (2) dismissal from the Board for missing two regular meetings without a valid reason.
There was also a change of possible significance to the CC&Rs. There is no record presented to me to show that this change to the CC&Rs was approved by a vote of Owners. The legal descriptions of Units #2, #3, #4 and #5 which had been in the opening page of the August and September 2003 CC&Rs was now moved into the Article II, "Additions to Existing Property" section and labelled as "Additional Properties Are:".
A new set of the modified CC&Rs and the edited By-Laws, along with the Articles of Incorporation of the KRCEOA was recorded on June 6th 2005.
The flaws in the August 25th 2003 (and 1974 and 1979) CC&Rs were still NOT corrected, only made 'worse'.
Adobe PDF file - Scan: 2005 Owners' Manual
This modified document was enhanced by color to 'highlight' the changes made from the 2003 document.
Adobe PDF file - Enhanced June 6th 2005 All-In-One CC&Rs (NO By-Laws)
The Black Mountain Fire Department (BMFD) was trying to gain support. A proposal had been made by the Hott family to donate one of its lots in Unit #1 to the BMFD for the location of the Fire Department building(s). A change was needed to Article III: "Occupancy and Use of Residence Lots and Common Area" section of the CC&Rs to allow this non-residential use. A vote by the Owners received more than 50% of the vote but not the super-majority needed to modify the CC&Rs.
The Board brought suit to gain court approval to force the change in the CC&Rs. The court agreed and issued Court Order SC CV PT 09-0201 dated March 25, 2009 to make the necessary changes to the CC&Rs.
A new set of the modified CC&Rs, the By-Laws and the Articles of Incorporation of the KRCEOA was recorded on April 14th 2009.
The flaws in the August 25th 2003 (and 1974 and 1979) CC&Rs were still NOT corrected.
Adobe PDF file: 2014 Owners' Manual
This modified document was enhanced by color to 'highlight' the changes made from the 2005 document.
Adobe PDF file - Enhanced April 14th 2009 All-In-One CC&Rs (NO By-Laws)
The CC&Rs, By-Laws and Articles of Incorporation have remained the same since 2009. The CC&Rs are still not correct. Most of these errors are easily remedied, do NOT require debate and the document could be edited and recorded in short order. There are three issues that might become contentious.
FIRST: The five original documents were filed on five different dates over a two year period. In all of the CC&Rs, Article IX: "Miscellaneous", Section 9: Duration - states, "The restrictions of this Declaration shall continue in full force and effect for a period of sixty years from the date of recordation of this Declaration, unless otherwise extended by a majority of the then property owners". The CC&Rs were filed and therefore would seem to have Dissolution Dates as follows:
UNIT #....DATE RECORDED....DISSOLUTION DATE
Unit #1...09/27/1967..........09/26/2027
Unit #2...06/05/1968..........09/26/2027
Unit #3...10/31/1968..........09/26/2027
Unit #4...04/29/1969..........09/26/2027
Unit #5...08/28/1969..........09/26/2027
The original individual CC&Rs for the five Units of the KRCE were to be understood as a 'unified' set. The Unit #1 CC&Rs have a 'primary' nature and the 'additive' nature of the Unit #2, #3, #4 and #5 CC&Rs would mean to most lawyers that the correct date of dissolution for the entire KRCEOA and its' CC&Rs is clearly September 26th 2027.
The Davis-Stirling Act (D-SA) does 'throw a wrench' into the plan. The D-SA could be used to say that the D-SA supersedes the CC&Rs on this issue. If so, then the D-SA calls for a 100% vote in favor of dissolution. That would mean we are all 'hung together for ever'.
It seems to me that the majority of our 'in-common' land and buildings could be sold or donated away during the coming years. Most of our 'in-common' property is in the flood plain, too steep and otherwise not useful.
SECOND: The 'in-common' property includes easements against the lots through which those trails pass in Units #3, #4 and #5 for 'equestrian trails'. If the KRCEOA dissolved these easements should automatically 'go back' to the owners of the lots along those trails and the trails would cease to be available to anyone thereafter.
THIRD: In Unit #5 the KRCE-maintained roads were cited in the CC&Rs for Unit #5 as owned by ALL KRCE Owners. I believe that the affected roads and the related lots in Unit #5 should be 'deeded' to the contiguous lot owners to the centerline of the currently KRCE-maintained road(s) passing adjacent to their lots.
If these three issues are resolved as I suggest, then with nothing but monetary assets in the KRCEOA holdings, it would be much easier to let the automatic dissolution happen in 2027 by not having a majority vote in favor of continuing.
Once the KRCEOA went away, the owners of lots on roads that are presently maintained by the KRCEOA would almost-certainly feel compelled to create a new non-profit, tax-free entity(ies) to maintain the roads via a dues structure.
This document was enhanced by color to 'highlight' the changes made from the 2005 document. No changes have occured since 2009.
Adobe PDF file - Enhanced April 14th 2009 All-In-One CC&Rs (NO By-Laws)
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