Philip Montgomery, President
Palo Verde Road Management Association is a non-profit, tax-exempt corporation under and by the laws of the State of Arizona and is independent and separate from the Cottonwood Palo Verde Homeowners Association. The nine member board is made up of Palo Verde homeowners and is responsible for the operation and maintenance of approximately 11.2 miles of private roadway and associated drainage systems serving the 1,073 homeowners. The board members are all non-paid volunteers. All revenue from fees or assessments goes to only the actual cost of operation and maintenance of our private roadways.
Palo Verde Road Management, Inc., remains financially sound. In 2021, there will be no increase in your annual road fee. It shall remain at $175 per household and billed as a pass-through charge in the annual Homeowners Dues billing in January of each year by Cottonwood Palo Verde Homeowners Association.
In 2017, the Association had a project cost over-run of $70,000, reducing our reserve funds to below current industry standards. The board of directors set a goal of incrementally building its Emergency Repair and Replacement Fund to a minimum of $300,000 by February 2021. This goal has been reached.
In 2021, the board will continue to monitor this Emergency Reserve Fund and shall determine if the current level of $300,000 is adequate to meet the long-term needs of the Association. Adequate reserves help protect all Palo Verde homeowners from the potential need to impose special assessments or unreasonable annual road fee increases due to potential facility damage caused by catastrophic storm events or underground utility system failures that can lead to thousands of dollars or more in repair costs. With careful planning, the Association will continue this program with existing revenues, and without the need for homeowner road fee increase in the foreseeable future.
2021 Proposed Maintenance Program: On Nov. 8, 2020, The board of directors received and opened four sealed bids from qualified contractors. The low and responsible bid was awarded to Pinnacle Paving, Inc., located in Gilbert, Ariz., in the amount of $189,188.
It is anticipated that work will be performed in April 2021. All Palo Verde homeowners will be notified by mail in advance, along with a colored map of affected streets and start and estimated completion dates.