Capital Improvement Response

Powderwood Homeowners Association is approximately 30 years old. Many items are at or about to exceed their useful life. In an effort to determine the problems at Powderwood we researched potential firms that deal with these types of issue’s. We solicited bids from the following firms:

CPR (Complete Property Repair)

Forensic Building Consultants

Park City Architect Bruce Taylor

Alliance Project Engineers

Owner LJ Corby Radon recommended Milazzo and Associates; I have contacted them about putting together a proposal for us. We have no preference on who does the work, if you know anyone that does this type of work that I could contact for an engineering proposal let me know. This process is in the initial stages, we have not hired an engineer to complete the process. Dennis McCoy with CPR made the presentation at the Annual Meeting, but by no means do we have to use him for the project. CPR’s proposal and Power Point presentation is on the website at

We are at the infant stages of this project, we do not know any numbers other than the 2 proposals that we have received from engineers. I have done quite a few projects similar to this in my 24 years as a property manager. The ones that have problems are the ones that do not hire an engineer. Other properties that have not used an engineer look back now and wish that they had.  It does appear to me that an engineer is essential at Powderwood to ensure that all details are accounted for, that the requests for proposals from contractors are correctly done and that the correct materials are used. Once all of the engineering proposals have been compiled, they will be reviewed by the Powderwood Board of Directors. The Powderwood Board of Directors would encourage any homeowners that are interested to join a committee to evaluate the engineering proposals.  If you would like to join a committee to review the proposals please send an email to [email protected]. Once the engineering committee has reviewed the proposals they will make a recommendation to the Powderwood Board of Directors. Once that recommendation has been reviewed and approved by the Board of Directors it will go out to all the owners for a vote.  If the vote is approved by the owners and the engineer has completed his analysis we will have another meeting to go over options from the engineer and potential costs. It is very clear to me that no engineer will be approved without a vote of the homeowners.

Section 17D of the CC&R’s states:

Notwithstanding anything to the contrary herein contained, additions or capital improvements to the Project which cost no more than $3,000.00 may be authorized by the Management Committee alone. Additions or capital improvements the of which will exceed such amount must, prior to being constructed, be authorized by at least  a majority vote of the Percentage Interests at a meeting duly called and convened at which a quorum is present. Any addition or capital improvement which would materially alter the nature of the Project must, regardless of its cost and prior to being constructed, be authorized by a vote of unit ownership person or by proxy of not less than 67% of the Percentage Interest at a meeting of the Association, special or annual, duly called and convened at which quorum is present.




Some other questions we had from owners today:

  1. There was a concern that we did not vote for a new board of directors at the meeting.

        To conduct business at the meeting we needed to have 114 represented owners. We had 61 units represented either in person or by proxy at the meeting. As is customary at Powderwood we will be mailing a ballot to all owners to vote.

  2. Did we pay an engineer $50,000 to give us a report on what needs to be done?

         As stated above we have not nor will we pay an engineer until owners have voted on the appropriate engineer for the project. All owners will be able to review the contracts and make a decision for themselves.

  3. The cost could be as much as $5,000,000??

         No one knows the cost or if there will be an assessment.  Making a statement about how much this is going to cost at this point would just be conjecture. At this point no one knows.

  4. Was the Budget approved?

         No, the budget was not approved at the Annual Meeting. Many owners were concerned about a potential assessment and did not feel comfortable approving a budget of any kind.  Included in the ballot to elect board members will be a section to approve the budget. I recommend that the budget is approved without an assessment at this time. The budget and Annual Meeting Power Point can be found here.