11-28-2016 Council Packet - Laserfiche WebLink

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4. Costs and Expenses; Cost Sharing. The Kintyre HOA must initially pay all of the Costs, subject to the Owner's obligation to pay Assessments as set forth in Section 7 below. All costs and expenses that are incurred by the Kintyre HOA and that do not fall within the definition of Costs shall be borne exclusively by the Kintyre HOA and its members. As used herein "Costs" means all costs and expenses incurred in connection with maintaining, repairing, and replacing the Roadway, including those costs and expenses incurred in replacing those portions of the Roadway that are in need of replacement due to ordinary wear and tear and casualty, customary third -party management and administrative fees, and the cost of mowing those portions of the Roadway Easement Area that are maintained by the Kintyre HOA, but shall exclude any costs associated with modifications or alterations to the Roadway that the Kintyre HOA makes or is required to make from time to time, and any costs incurred in connection with replacing any tree. Each Owner is responsible for such Owner's Pro Rata Share of all Costs. Notwithstanding the foregoing, until such time as a road has been constructed on the Bollis Parcels and such road has been connected with the Roadway, the Kintyre Owners shall be responsible for 100% of the Costs. All Costs that are not the responsibility of a Bollis Owner hereunder shall be paid by the Kintyre Owners, and the Kintyre HOA agrees to bill and collect all such Costs directly from the Kintyre Owners pursuant to the process set forth in the documents that are applicable to the Kintyre HOA. Except as stated in this Agreement, the Kintyre HOA may not charge any other costs, fees, or expenses for Owners' or Owners' agents' or invitees' use of, or connection with, the Roadway, all of which shall be provided without cost as set forth in Resolution of the City Council for the City of Orono No. 5421. 5. Bids; Budget. (a) At least thirty (30) days prior to the commencement of any calendar year the Kintyre HOA must present to the Owners, or the Bollis HOA once the Bollis HOA has been created, a proposed budget for the Costs for the applicable upcoming calendar year together with copies of all bids that the Kintyre HOA has obtained in connection with creating the budget. The Kintyre HOA may, without the prior consent of the Owners or the Bollis HOA undertake the following: (i) incur up to $5,000 in total Costs associated with mowing and weeding of the Roadway Easement Area, and snow removal of the Roadway, in any calendar year; and (ii) incur up to $5,000 in total Costs associated with repairing, patching, or replacing the Roadway in any calendar year. The Kintyre HOA must obtain the approval of the Owners by the affirmative vote of a cumulative majority of the Owners of all Lots before incurring additional Costs. The Kintyre Owners and the Bollis Owners, or the Kintyre Owners and the Bollis HOA once the obligation to pay the Costs is assigned to the Bollis HOA, will have no obligation to pay his/her/its Pro Rata Share of Costs that are not approved as described herein unless no such approval is required. For purposes of determining the number of votes required by this Section, each separate Lot shall have one vote. If the Kintyre HOA cannot obtain the majority approval required by this Section 5(a) with respect to Costs, then the Parties shall immediately engage in mediation to resolve any such dispute, and all costs and expenses incurred in connection with any such mediation shall be included in the calculation of Costs hereunder. (b) If the applicable Cost requires the approval of the Owners or the Bollis HOA pursuant to Subsection (a) above, the Owners or the Bollis HOA have the right to require that the Kintyre HOA obtain up to three (3) commercial bids for the applicable project (if possible), and the Kintyre HOA must present all such bids that it obtains to the Owners, and must obtain the