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JOHNSON /TUHNEH ATTORNP?YS AT LAW d MEDIATION CENTER September 13, 2012 VIA E -MAIL ONLY Jeff Karlson, City Administrator City of Lino Lakes 600 Town Center Pkwy Lino Lake, MN 55014 Re: Resolution 12 -29 - Petition to Establish Cartway Our File No.: 12- 1784 -002 Dear Mr. Karlson: Maintenance Expenses At the Council workshop, the Homeowner's Association was asked to provide some figures relating to the historic costs of maintenance of the private roadway. EXPENSES 2011 2010 2009 2008 2007 SNOW PLOW $2,350 $1,575 $2,100 $1,750 $1,200 BLVD MOW $1,550 $1,300 $1,400 $1,390 $1,135 INSURANCE $652 $628 $628 $628 $625 STREET LIGHT $480 $480 $480 $480 $480 MISC $200 $18 $200 LEGAL FEES $105 212 STORM SEWER $6,700 TOTAL $5,232 $4,108 $4,838 $4,448 $10,140 Five Year Total $28,766 Five Year Average $5,753.20 per year As is depicted above, the Association has incurred average annual expenses of $5,753.20 over the past 5 years. The expenses have varied with the highest year being $10,140 in 2007 and the lowest year being $4,108 in 2010. Additionally, these figures do not include actual maintenance and repair of the infrastructure as none took place during that timeframe. The Association recognizes that it needs to now crack fill and seal coat the road. It has obtained bids for both. The crack filling will cost $9,130 and the seal coating will cost $17,150. The association plans to do the crack filling in 2013 and the seal coating in 2014. Given the variations in expenses and the fact that the Association will likely be facing significantly higher maintenance costs for mill and overlays, bridge repairs and eventually, road and bridge reconstruction, we do not believe attempting to set a dollar figure for the Petitioner's contribution towards maintenance and repairs would be an equitable approach, even with an automatic inflationary increase. A much more equitable approach would be to fix a percentage of the actual future costs that would be the responsibility of the Petitioner. The Association believes a 1/6 or 16.67% obligation would be the most equitable approach to the Petitioner's share of the street maintenance and repair expenses. 50 E. Broadway Ave. #206 12425 55th Street N. 539 Bielenberg Dr., #200 p 651.464.7292 Forest Lake, MN 55025 Lake Elmo, MN 55042 Woodbury, MN 55125 f 651.464.7348 www.johnsonandrurner.corn