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34 <br />6557.03/12309 <br />Association is obligated to repair, replace, restore or maintain is equal to or greater than one-half of the <br />gross budget of the Association for any fiscal year, which excludes the Association’s reserve account for <br />that period. In addition, the Board shall annually review, or cause to be reviewed, the reserve account <br />study and shall consider and implement necessary adjustments to its analysis of the reserve account <br />requirements as a result of that review. The reserve account study shall at a minimum include the items <br />and components set forth in Civil Code Sections 5550-5570. <br /> <br />Section 4.23 Capitalization Fund. Pursuant to the terms of Declarant’s Purchase Agreement <br />for the sale of the Condominiums, the initial Owner of each Condominium shall be required to pay to the <br />Association an amount equal to two (2) month’s worth of Annual Assessments to be used to establish a <br />capitalization fund (the “Fund”) for the Development. The Association shall maintain the Fund in a <br />separate account to be disbursed by the Board to pay for the start-up and initial organization of the <br />Association, the initial occupancy and operation of the Development, additions and upgrades to the <br />Development, and other purposes deemed appropriate by the Board. <br /> <br /> <br />ARTICLE 5 <br /> <br />MAITEACE, REPAIR AD IMPROVEMET <br /> <br />Section 5.1 Association’s Rights and Obligations to Inspect, Maintain and Repair the <br />Development. Coincident with the first conveyance of a Condominium in the first Phase by Declarant, <br />the Association shall repair, restore, replace and maintain in good condition and appearance all of the <br />Common Area and all facilities, improvements, furnishings, equipment, utilities, water systems, sewers, <br />storm drains or drainage systems not maintained by a public entity, utility company or improvement <br />district, roadways, walkways and related street, sidewalk and pedestrian lighting not maintained by a <br />public entity, utility company or improvement district, landscaping and related improvements and <br />facilities (except landscaping within Exclusive Use Common Area patio areas, if any) thereon, and all <br />property that may be acquired by the Association, including, without limitation, foundations, siding, trim, <br />roofs, exterior finishes on exterior doors to units (other than the hardware thereon), exterior building <br />staircases and trash collection areas, courtyards, motor courts and walkways, marina or dock areas, and <br />park areas and related improvements not maintained by a public entity, utility company or improvement <br />district. The Association’s responsibility for maintenance and repair shall include, without limitation, <br />performance of any inspection, maintenance and repair described in any homeowners association <br />handbook, or any applicable maintenance manual or manufacturers manual. Without limitation of the <br />foregoing, the Association shall perform at least the minimum cleaning, maintenance and repair <br />obligations required of the Association on Exhibit A attached hereto, and by this reference made a part <br />hereof. <br /> <br /> (a) The inspection, maintenance and repair obligations of the Association may <br />increase in connection with the annexation of Annexation Property and related improvements into the <br />Development as described in Section 2.8, and as required by the City of Redwood City or other <br />governmental agencies, and shall include, without limitation, inspection (at least annually), maintenance <br />and repair of all onsite sewer systems and lift station in the Common Area of the Property. The <br />Association shall also be obligated to accept assignment and/or transfer from Declarant to the Association <br />of any inspection, maintenance, repair obligations imposed on the Development by the City or Redwood <br />City, the BCDC, or other governmental or public agency. The Association shall comply with the <br />inspection, maintenance and repair obligations designated to the Declarant or Association in the onsite <br />improvements plans approved by the City of Redwood City. <br /> <br />7.1.K. - Page 38