This Private Road Maintenance Agreement is effective on this [Document.CreatedDate] , amongst and by the undersigned [FirstParticipatingOwner.FirstName] [FirstParticipatingOwner.LastName] and [SecondParticipatingOwner.FirstName] [SecondParticipatingOwner.LastName] .
(Name of the road) is a privately owned road located in (Area) as shown in Exhibit A presented with this Agreement.
All the undersigned owners are the users or owners of this private road.Exhibit A is often shared with the agreement and should cover the legal description of the road and a drawing prepared by an engineer.
Now, Therefore for valuable and good consideration, the parties of this Agreement accept the following:
All Participating Owners agree to elect a Road Commission Agent that will serve a period as decided by the owners. This person will be responsible for monitoring the road’s condition throughout the year and initiating any maintenance work when required.
When selecting an agent, it is wise to look for an individual who has a good reputation and can manage a team of various participating owners. Also, find an agent who knows everything about the town, especially the private road.
Necessary road improvements and maintenance would be undertaken to manage safe access and movement of vehicles owned by Participating Owners and other emergency vehicles. A majority of the Participating Owners are required to propose road improvement contracts with a value of more than $ (agreed amount).
Before finalizing the expenditures related to road maintenance, all Participating Owners should get informed about the estimated costs by the Road Commission Agent.
If a Participating Owner performs road maintenance without the knowledge of other owners, they shall be solely responsible for all charges incurred.
The plan covering all the emergency funds, road maintenance costs, and other related expenses should be shared among all Participating Owners on a pro-rata basis.
Further, the division of all costs among the Participating Owners shall be calculated using the following (formula).
The Road Commission Agent should share an updated cost plan whenever there are amendments in cost allocation.
This plan should be as detailed as possible. No costs should be missed, and everything must be present in the records for cross-checking.
All Participating Owners should make payments related to the maintenance and emergency amendments of the private road to the Road Commission Agent.
Further, the Road Commission Agent shall send a notice covering all the payments due to every owner. The Participating Owners shall then pay the due amount within two weeks.
The Road Commission Agent is responsible for establishing and maintaining a bank account to hold all the road maintenance funds. Any check issued from this particular account should be signed and approved by one chosen Participant Owner and the Road Commission Agent.
The Road Commission Agent shall prepare and present an annual report to all Participating Owners related to the complete accounting of the funds.
The Road Commission Agent shall also prepare a budget plan on the (date and month) prior to the end of the year. All the Participant Owners can then amend or approve the final plan through voting conducted 30 days before the end of the fiscal year.
Any Emergency Repairs
If the private road requires certain emergency repairs determined by the Road Commission Agent, they shall arrange the resources for the work required. However, the cost shouldn’t exceed the amount already available in the emergency fund account.
The Road Commission Agent shall then communicate the emergency repair requirement to the Participating Owners and would notify them about any amount due to replenish the contingency fund.