Sunset Park Villas - Parker Brownparker-brown.com/sunsetpark/wp-content/uploads/2016/02/Sunset-P… · reserve projects can be completed on time. When projects are completed on time,

Sunset Park Villas

Level 1 Reserve Study

Report Period – 01/01/2016 – 12/31/2016

Report prepared on – Thursday, November 12, 2015

TEL: (888) 356-3783 | Fax: (866) 279-9662 WWW.COMPLEXSOLUTIONSLTD.COM

Client Reference Number 17996 Property Type Townhouse Number of Units 116 Fiscal Year End 12/31

Type of Study Full Study Date of Property Inspection 10/19/2015 Prepared By Dale Gifford Analysis Method Cash Flow Funding Goal Full Funding

Table of Contents

Introduction

• Executive Summary page 1

• Introduction page 2

• General Information and Frequently Asked Questions page 3 - 4

Reserve Analysis

• Funding Summary page 5

• Percent Funded – Graph page 6

• Component Inventory page 7 - 8

• Significant Components page 9

• Significant Components – Graph page 10

• Yearly Summary page 11

• Yearly Reserve Contributions – Graph page 12

• Component Funding Information page 13 - 14

• Yearly Cash Flow page 15

• Yearly Reserve Expenditures – Graph page 16

• Projected Reserve Expenditures by Year page 17 - 18

Component Evaluation

• Component Evaluation page 1 - 46

Glossary of Commonly used Words and Phrases

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Executive Summary – Sunset Park Villas - ID # 17996 Information to complete this Reserve Study was gathered by performing an on-site inspection of the common area elements. In addition, we also obtained information by contacting any vendors and/or contractors that have worked on the property recently, as well as communicating with the property representative (BOD Member and/or Community Manager). To the best of our knowledge, the conclusions and recommendations of this report are considered reliable and accurate insofar as the information obtained from these sources. Projected Starting Balance as of 01/01/2016 $127,735 Ideal Reserve Balance as of 01/01/2016 $310,581 Percent Funded as of 01/01/2016 41% Recommended Reserve Contribution (per month) $9,350 Minimum Reserve Contribution (per month) $8,625 Recommended Special Assessment $0 Sunset Park Villas is a 116-unit Townhome community. The community offers a clubhouse, fitness room, swimming pool, theater and landscaped areas as amenities. Construction on the community was completed in 2015.

Currently Programmed Projects The project programmed to occur this fiscal year (FY2016) is asphalt seal coat (Comp# 402). We have programmed an estimated $3,312 in reserve expenditures toward the completion of this project. (See page 17)

Significant Reserve Projects The association’s significant reserve projects are roofs 2013-2015 replace (Comp# 105), roofs 2010-2013 replace (Comp# 105), asphalt overlay (Comp# 401), and stucco surfaces 2013-2015 repair/repaint (Comp# 201). The fiscal significance of these components is approximately 32%, 31%, 5%, and 5% respectively (see page 10). A component’s significance is calculated by dividing its replacement cost by its useful life. In this way, not only is a component’s replacement cost considered but also the frequency of occurrence. These components most significantly contribute to the total monthly reserve contribution. As these components have a high level of fiscal significance the association should properly maintain them to ensure they reach their full useful lives. Reserve Funding In comparing the projected starting reserve balance of $127,735 versus the ideal reserve balance of $310,581 we find the association’s reserve fund to be approximately 41% funded. This indicates a fair reserve fund position. In order to continue to strengthen the account fund, we suggest adopting a monthly reserve contribution of $9,350 ($80.60/unit) per month. We have also included a minimum reserve contribution of $8,625 ($74.35/unit) per month. If the contribution falls below this rate, then the reserve fund may fall into a situation where special assessments, deferred maintenance, and lower property values are likely at some point in the future.

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Introduction Reserve Study Purpose The purpose of this Reserve Study is to provide the Association with a budgeting tool to help ensure that there are adequate reserve funds available to perform future reserve projects. The detailed schedules will serve as an advanced warning that major projects will need to be addressed in the future. This will allow the Association to have ample time to obtain competitive bids for each project. It will also help to ensure the physical well-being of the property and ultimately enhance each owner’s investment, while limiting the possibility of unexpected major projects that may lead to special assessments. Preparer’s Credentials Mr. Gifford has been working in the community association industry for the last 12 years. Prior to taking a position, as the Regional Project Manager covering the Utah region, at Complex Solutions, he worked in community association management in Utah. While in community association management his positions included, Maintenance Supervisor, Senior Portfolio Manager and Vice President of Community Management. His work in community association management gave him extensive experience with; budget creation, reserves and reserve budgeting, community inspections and analyzing common area components.

• Professional Reserve Analyst (PRA) designation from Association of Professional Reserve Analysts (APRA), PRA

#2320

• Reserve Specialist (RS) designation from Community Associations Institute (CAI), RS# 231

• Personally has prepared over 700 reserve studies in Salt Lake City Utah and surrounding areas

• Bachelor of Science in Chemistry from Emporia State University

• Certified Manager of Community Associations® (CMCA®) designation from the National Board of Certification for Community Association Managers (NBC-CAM)

• Association Management Specialist® (AMS®) designation from Community Associations Institute (CAI)

• Professional Community Association Manager® (PCAM®) designation from Community Associations Institute (CAI), PCAM# 1740,

• Active member and former Board member and chapter President of the Utah Chapter of Community Associations

Institute (UCCAI)

• Recipient of Community Associations Institute’s (CAI) annual award of Excellence in Chapter Leadership for service an achievement in 2010

Budget Breakdown Every association conducts their business within a budget. There are typically two main parts to this budget, the Operating budget and the Reserve budget. The operating budget includes all expenses that occur on an annual basis as well as general maintenance and repairs. Typical operating budget line items include management fees, maintenance expenses, utilities, etc. The reserve budget is primarily made up of replacement items such as roofing, fencing, mechanical equipment, etc., that do not normally occur on an annual basis.

Report Sections Reserve Analysis: this section contains the evaluation of the association’s reserve balance, income, and expenses. It includes a finding of the client’s current reserve fund status (measured as percent funded) and a recommendation for an appropriate reserve allocation rate (also known as the funding plan). Component Evaluation: this section contains information regarding the physical status and replacement cost of reserve components the association is responsible to maintain. It is important to understand that while the component inventory will remain relatively “stable” from year to year, the condition assessment and life estimates will most likely vary from year to year.

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General Information and Frequently Asked Questions Is it the law to have a Reserve Study conducted? The Government requires a reserve study in approximately 20 states. Also, the Association’s governing documents may require a reserve fund be established. This does not mean a Reserve Study is required, but how are you going to know if you have enough money in the reserve fund if you do not have the proper information? Why is it important to perform a Reserve Study? This report provides the essential information that is needed to guide the Association in establishing the reserve portion of the total monthly assessment. The reserve fund is critical to the future of the association because it helps ensure that reserve projects can be completed on time. When projects are completed on time, deferred maintenance and the lower property values that typically accompany it can be avoided. It is suggested that a third party professionally prepare the Reserve Analysis Study since there is no vested interest in the property. After we have a Reserve Study, what do we do with it? Please take the time to review the report carefully and make sure the component information is complete and accurate. If there are any inaccuracies, or changes such as a component that the association feels should be added, removed, or altered, please inform us immediately so we may revise the report. Use the report to help establish your budget for the upcoming fiscal year. How often do we review and update our Reserve Study? There is a misconception that a Reserve Study is good for an extended period of time since the report has projections for a thirty year period. The assumptions, interest rates, inflation rates and other information used to create this report change each year. Scheduled events may not happen, unpredictable circumstances could occur, deterioration rates can be unpredictable and repair/replacement costs will vary from causes that are unforeseen. These variations alter the results of the Reserve Study. The Reserve Study should be professionally reviewed each year by having a Level III “no site visit” update reserve study performed. The Reserve Study should be professionally updated every three years by having a Level II “site visit” update reserve study performed. What is a “Reserve Component” versus an “Operating Component”? A “Reserve” component is an item that is the responsibility of the association to maintain, has a limited useful life, predictable remaining useful life, typically occurs on a cyclical basis that exceeds one year, and costs above a minimum threshold amount. An “Operating” component is typically a fixed expense that occurs on an annual basis. What are the GREY areas of “maintenance” items that are often seen in a Reserve Study? One of the most popular questions revolves around major “maintenance” items, such as painting the buildings or seal coating the asphalt. You may hear from your accountant that since painting or seal coating is not replacing a “capital” item, it cannot be considered a reserve component. However, it is the opinion of several major Reserve Study providers, including Complex Solutions, that these components meet the criteria of a reserve component. Information and Data Gathered: The information contained in this report is based on estimates and assumptions gathered from various sources. Estimated life expectancies are based upon conditions that were readily visible and accessible at the time of the site visit. While every effort has been made to ensure accurate results, this report reflects the judgment of Complex Solutions, Ltd. and should not be construed as a guarantee or assurance of predicting future events. What happens during the Site Visit? During the site visit we identify the common area components that we have determined require reserve funding. These components are quantified and a physical condition is observed. The site visit is conducted on the common areas as reported by client. What is the Financial Analysis? We project the starting balance by taking the most recent reserve fund balance as stated by the client and add expected reserve contributions to the end of the fiscal year. We then subtract the expenses of any pending projects. We compare this number to the Fully Funded Balance and arrive at the Percent Funded level. Based on that level of funding we then recommend a Funding Plan to help ensure the adequacy of funding in the future.

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Measures of reserve fund financial strength are as follows: 0% - 30% Funded is considered a “weak” financial position. Associations that fall into this category are more likely to have

special assessments and deferred maintenance. Action should be taken to improve the financial strength of the reserve fund.

31% - 69% Funded is considered a “fair” financial position. Associations that fall into this category are less likely to experience special assessments and deferred maintenance than being in a weak financial position. Action should be taken to improve the financial strength of the reserve fund.

70% - 99% Funded is considered a “strong” financial position. Associations that fall into this category are less likely to experience special assessments and deferred maintenance than being in a fair financial position. Action should be taken to improve the financial strength of the reserve fund.

100% Funded is considered an “ideal” financial position. Action should be taken to maintain the financial strength of the reserve fund.

Disclosures: Information provided to the preparer of a reserve study by an official representative of the association regarding financial, historical, physical, quantitative or reserve project issues will be deemed reliable by the preparer. A reserve study will be a reflection of information provided to the preparer of the reserve study. The total of actual or projected reserves required as presented in the reserve study is based upon information provided that was not audited. A reserve study is not intended to be used to perform an audit, an analysis of quality, a forensic study or a background check of historical records. An on-site inspection conducted in conjunction with a reserve study should not be deemed to be a project audit or quality inspection. The results of this study are based on the independent opinion of the preparer and his experience and research during the course of his career in preparing Reserve Studies. In addition the opinions of experts on certain components have been gathered through research within their industry and with client’s actual vendors. There is no implied warrantee or guarantee regarding our life and cost estimates/predictions. There is no implied warrantee or guarantee in any of our work product. Our results and findings will vary from another preparer’s results and findings. A Reserve Study is necessarily a work in progress and subsequent Reserve Studies will vary from prior studies. The projected life expectancy of the reserve components and the funding needs of the reserves of the association are based upon the association performing appropriate routine and preventative maintenance for each component. Failure to perform such maintenance can negatively impact the remaining useful life of the component and dramatically increase the funding needs of the reserves of the association. This Reserve Study assumes that all construction assemblies and components identified herein are built properly and are free from defects in materials and/or workmanship. Defects can lead to reduced useful life and premature failure. It was not the intent of this Reserve Study to inspect for or to identify defects. If defects exist, repairs should be made so that the construction components and assemblies at the community reach the full and expected useful lives. Site Visits: Should a site visit have been performed during the preparation of this reserve study no invasive testing was performed. The physical analysis performed during the site visit was not intended to be exhaustive in nature and may have included representative sampling. Estimated life expectancies and life cycles are based upon conditions that were readily accessible and visible at the time of the site visit. We have assumed any and all components have been properly built and will reach normal, typical life expectancies. A reserve study is not intended to identify or fund for construction defects. We did not and will not look for or identify construction defects during our site visit. In addition, environmental hazards (such as lead paint, asbestos, radon, etc.), have been excluded from this report. Update Reserve Studies: Level II Studies: Quantities of major components as reported in previous reserve studies are deemed to be accurate and reliable. The reserve study relies upon the validity of previous reserve studies. Level III Studies: In addition to the above we have not visited the property when completing a Level III “No Site Visit” study. Therefore we have not verified the current condition of the components. Insurance: We carry general and professional liability insurance as well as workers’ compensation insurance. Actual or Perceived Conflicts of Interest: There are no potential actual or perceived conflicts of interest that we are aware of. Inflation and Interest Rates: The after tax interest rate used in the financial analysis may or may not be based on the clients reported after tax interest rate. If it is, we have not verified or audited the reported rate. The inflation rate may also be based on an amount we believe appropriate given the 30-year horizon of this study and may or may not reflect current or historical inflation rates.

Beginning Assumptions

# of units 116Fiscal Year End 31-DecBudgeted Monthly Reserve Allocation $1,750Projected Starting Reserve Balance $127,735Ideal Starting Reserve Balance $310,581

Economic Assumptions

Projected Inflation Rate 3.00%Reported After-Tax Interest Rate 0.25%

Current Reserve Status

Current Balance as a % of Ideal Balance 41%

Recommendations

Recommended Monthly Reserve Allocation $9,350Per Unit $80.60

Future Annual Increases 3.00%For number of years: 30Increases thereafter: 0.00%

Minimum Recommended Monthly Reserve Allocation $8,625Per Unit $74.35

Future Annual Increases 3.00%For number of years: 30Increases thereafter: 0.00%

Changes From Prior Year

Recommended Increase to Reserve Allocation $7,600as Percentage 434%

Minimum Recommended Increase to Reserve Allocation $6,875as Percentage 393%

Funding Summary

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Percent Funded - Graph

0%

20%

40%

60%

80%

100%

120%20

16

2018

2020

2022

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2028

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2034

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% L

evel

of F

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Recommended Current Minimum

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Component Inventory

Category ID # Component NameUseful

Life (yrs.)

RemainingUseful Life

(yrs.)Best Cost

Worst Cost

Roofing 105 Roofs - 2010-2012 - Replace 25 20 $597,100 $682,400105 Roofs - 2013-2015 - Replace 25 23 $619,500 $708,000120 Rain Guttering - 2010-2012 - Replace 25 20 $33,210 $40,590120 Rain Guttering - 2013-2015 - Replace 25 23 $34,268 $41,883

Painted Surfaces 201 Stucco Surfaces - 2010-2012 - Repair/Re 15 10 $53,475 $72,075201 Stucco Surfaces - 2013-2015 - Repair/Re 15 13 $54,050 $72,850215 Siding - Repair/Repaint N/A $0 $0216 Interior Surfaces - Repaint 10 5 $7,401 $8,959

Drive Materials 401 Asphalt - Overlay 25 21 $93,450 $124,600402 Asphalt - 2015 - Seal Coat 5 4 $1,190 $1,556402 Asphalt - 2016 - Seal Coat 5 0 $2,691 $3,933402 Asphalt - 2017 - Seal Coat 5 1 $4,217 $6,164403 Concrete - Repair/Replace 10 6 $8,000 $12,000

Property Access 508 Access Control System - Replace 12 6 $3,000 $4,000Mechanical Equip. 703 Water Heater - Replace N/A $0 $0

704 HVAC Ductless Systems - Replace 15 10 $6,000 $8,000705 HVAC Condensers - Replace 18 13 $5,000 $7,000706 HVAC Furnaces - Replace 20 15 $5,000 $7,000

Prop. Identification 801 Monument Sign - Refurbish N/A $0 $0803 Mailboxes - Replace N/A $0 $0

Fencing 1005 Block Wall - Repair N/A $0 $01008 Vinyl Fencing - Replace 30 24 $5,550 $6,6601012 Prefab Concrete Fence - Replace N/A $0 $0

Pool/Spa 1101 Pool - Resurface 12 7 $12,000 $14,0001104 Pool Heater - Replace 12 7 $4,000 $6,0001107 Pool Filter - Replace 12 7 $12,000 $14,0001110 Pool Pump - Replace N/A $0 $01111 Chemical Controller System - Replace 12 7 $3,000 $4,0001112 Pool Cover - Replace 10 5 $2,000 $3,0001121 Pool Furniture - Replace N/A $0 $0

Recreation Equip. 1304 Drinking Fountain - Replace N/A $0 $01307 Benches - Replace 15 14 $2,400 $3,2001309 Pergola - Replace 30 25 $4,000 $6,000

Interiors 1405 Furniture - Replace 10 5 $4,000 $6,0001406 Fitness Equipment - Replace 15 10 $4,000 $5,0001407 Cardio Equipment - Replace 10 5 $11,000 $13,0001413 Restrooms - Remodel 18 13 $10,000 $14,0001417 Kitchen - Remodel 20 15 $6,000 $8,0001419 Multimedia Equipment - Replace 8 3 $2,500 $3,500

Flooring 1501 Carpeting - Replace 8 3 $10,920 $12,285

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Category ID # Component NameUseful

Life (yrs.)

RemainingUseful Life

(yrs.)Best Cost

Worst Cost

Flooring 1503 Tile - Replace 30 25 $4,680 $5,850Light Fixtures 1602 Exterior Light Fixtures - 2010-2012 - Repl 16 11 $4,725 $7,875

1602 Exterior Light Fixtures - 2013-2015 - Repl 16 14 $4,500 $7,5001609 Street Light Fixtures - Replace N/A $0 $01690 Pool Light Fixtures - Replace 20 14 $2,250 $3,750

Landscaping 1812 Landscaping - Renovate 20 17 $15,000 $20,000

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As $ As %105 Roofs - 2010-2012 - Replace 25 20 $639,750 $25,590 30.6127%105 Roofs - 2013-2015 - Replace 25 23 $663,750 $26,550 31.7612%120 Rain Guttering - 2010-2012 - Replace 25 20 $36,900 $1,476 1.7657%120 Rain Guttering - 2013-2015 - Replace 25 23 $38,075 $1,523 1.8219%201 Stucco Surfaces - 2010-2012 - Repair/R 15 10 $62,775 $4,185 5.0064%201 Stucco Surfaces - 2013-2015 - Repair/R 15 13 $63,450 $4,230 5.0603%216 Interior Surfaces - Repaint 10 5 $8,180 $818 0.9785%401 Asphalt - Overlay 25 21 $109,025 $4,361 5.2170%402 Asphalt - 2015 - Seal Coat 5 4 $1,373 $275 0.3284%402 Asphalt - 2016 - Seal Coat 5 0 $3,312 $662 0.7924%402 Asphalt - 2017 - Seal Coat 5 1 $5,190 $1,038 1.2418%403 Concrete - Repair/Replace 10 6 $10,000 $1,000 1.1963%508 Access Control System - Replace 12 6 $3,500 $292 0.3489%704 HVAC Ductless Systems - Replace 15 10 $7,000 $467 0.5583%705 HVAC Condensers - Replace 18 13 $6,000 $333 0.3988%706 HVAC Furnaces - Replace 20 15 $6,000 $300 0.3589%

1008 Vinyl Fencing - Replace 30 24 $6,105 $204 0.2434%1101 Pool - Resurface 12 7 $13,000 $1,083 1.2960%1104 Pool Heater - Replace 12 7 $5,000 $417 0.4984%1107 Pool Filter - Replace 12 7 $13,000 $1,083 1.2960%1111 Chemical Controller System - Replace 12 7 $3,500 $292 0.3489%1112 Pool Cover - Replace 10 5 $2,500 $250 0.2991%1307 Benches - Replace 15 14 $2,800 $187 0.2233%1309 Pergola - Replace 30 25 $5,000 $167 0.1994%1405 Furniture - Replace 10 5 $5,000 $500 0.5981%1406 Fitness Equipment - Replace 15 10 $4,500 $300 0.3589%1407 Cardio Equipment - Replace 10 5 $12,000 $1,200 1.4355%1413 Restrooms - Remodel 18 13 $12,000 $667 0.7975%1417 Kitchen - Remodel 20 15 $7,000 $350 0.4187%1419 Multimedia Equipment - Replace 8 3 $3,000 $375 0.4486%1501 Carpeting - Replace 8 3 $11,603 $1,450 1.7350%1503 Tile - Replace 30 25 $5,265 $176 0.2099%1602 Exterior Light Fixtures - 2010-2012 - Re 16 11 $6,300 $394 0.4710%1602 Exterior Light Fixtures - 2013-2015 - Re 16 14 $6,000 $375 0.4486%1690 Pool Light Fixtures - Replace 20 14 $3,000 $150 0.1794%1812 Landscaping - Renovate 20 17 $17,500 $875 1.0467%

Significant Components

Significance: (Curr Cost/UL)

Average Current

Cost

Remaining Useful Life

(yrs.)

Useful Life

(yrs.)Component NameID #

9

As $ As %105 Roofs - 2013-2015 - Replace 25 23 $663,750 $26,550 32%105 Roofs - 2010-2012 - Replace 25 20 $639,750 $25,590 31%401 Asphalt - Overlay 25 21 $109,025 $4,361 5%201 Stucco Surfaces - 2013-2015 - Repair/ 15 13 $63,450 $4,230 5%

All Other See Expanded Table For Breakdown $22,862 27%

ID #Significance:

(Curr Cost/UL)

Significant Components - Graph

Average Current

Cost

Remaining Useful Life

(yrs.)

Useful Life

(yrs.)Component Name

32%

31%5%

5%

27%

105 Roofs - 2013-2015 - Replace

105 Roofs - 2010-2012 - Replace

401 Asphalt - Overlay

201 Stucco Surfaces - 2013-2015 - Repair/Repaint

All Other

10

YearFully

Funded Balance

Starting Reserve Balance

% Funded

Reserve Contributions

Interest Income

Reserve Expenses

Ending Reserve Balance

2016 $310,581 $127,735 41% $112,200 $456 $3,312 $237,0792017 $402,587 $237,079 59% $115,566 $731 $5,346 $348,0302018 $497,842 $348,030 70% $119,033 $1,020 $0 $468,0832019 $604,121 $468,083 77% $122,604 $1,305 $15,957 $576,0362020 $699,894 $576,036 82% $126,282 $1,598 $1,545 $702,3712021 $816,206 $702,371 86% $130,071 $1,876 $35,928 $798,3892022 $903,501 $798,389 88% $133,973 $2,138 $22,317 $912,1832023 $1,010,428 $912,183 90% $137,992 $2,403 $42,431 $1,010,1472024 $1,102,929 $1,010,147 92% $142,132 $2,706 $0 $1,154,9842025 $1,245,087 $1,154,984 93% $146,396 $3,072 $1,791 $1,302,6612026 $1,392,936 $1,302,661 94% $150,787 $3,319 $104,270 $1,352,4962027 $1,443,038 $1,352,496 94% $155,311 $3,534 $36,119 $1,475,2232028 $1,568,310 $1,475,223 94% $159,970 $3,892 $0 $1,639,0862029 $1,738,118 $1,639,086 94% $164,769 $4,159 $119,612 $1,688,4022030 $1,793,502 $1,688,402 94% $169,713 $4,413 $19,925 $1,842,6042031 $1,957,020 $1,842,604 94% $174,804 $4,745 $68,537 $1,953,6152032 $2,079,278 $1,953,615 94% $180,048 $5,084 $24,376 $2,114,3712033 $2,254,715 $2,114,371 94% $185,450 $5,488 $28,925 $2,276,3842034 $2,434,875 $2,276,384 93% $191,013 $5,929 $5,959 $2,467,3672035 $2,648,364 $2,467,367 93% $196,743 $6,311 $88,508 $2,581,9142036 $2,787,629 $2,581,914 93% $202,646 $5,179 $1,228,087 $1,561,6512037 $1,761,836 $1,561,651 89% $208,725 $3,904 $212,474 $1,561,8062038 $1,756,014 $1,561,806 89% $214,987 $4,178 $0 $1,780,9712039 $1,973,672 $1,780,971 90% $221,436 $3,001 $1,385,112 $620,2962040 $776,143 $620,296 80% $228,079 $1,819 $15,200 $834,9942041 $958,796 $834,994 87% $234,922 $2,081 $241,897 $830,1002042 $918,681 $830,100 90% $241,970 $2,339 $32,759 $1,041,6492043 $1,098,182 $1,041,649 95% $249,229 $2,861 $46,430 $1,247,3082044 $1,274,558 $1,247,308 98% $256,705 $3,261 $145,169 $1,362,1062045 $1,360,262 $1,362,106 100% $264,407 $3,728 $9,833 $1,620,408

Yearly Summary

11

Reserve Contributions - Graph

$-

$5,000

$10,000

$15,000

$20,000

$25,00020

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2018

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Year

Monthly Reserve Contributions

Recommended Current Minimum

12

ID Component Name UL

RU

L

QuantityAverage Current

Cost

Ideal Balance

Current Fund

BalanceMonthly

105 Roofs - 2010-2012 - Replace 25 20 Approx 170,600 Sq.ft. $639,750 $127,950 $29,006 $2,862.29105 Roofs - 2013-2015 - Replace 25 23 Approx 177,000 Sq.ft. $663,750 $53,100 $0 $2,969.67120 Rain Guttering - 2010-2012 - Replace 25 20 Approx 7,380 Linear ft. $36,900 $7,380 $0 $165.09120 Rain Guttering - 2013-2015 - Replace 25 23 Approx 7,615 Linear ft. $38,075 $3,046 $0 $170.35201 Stucco Surfaces - 2010-2012 - Repair/Repain 15 10 Approx 46,500 Sq.ft. $62,775 $20,925 $20,925 $468.10201 Stucco Surfaces - 2013-2015 - Repair/Repain 15 13 Approx 47,000 Sq.ft. $63,450 $8,460 $8,460 $473.13216 Interior Surfaces - Repaint 10 5 Approx 7,790 Sq.ft. $8,180 $4,090 $4,090 $91.49401 Asphalt - Overlay 25 21 Approx 62,300 Sq.ft. $109,025 $17,444 $0 $487.79402 Asphalt - 2015 - Seal Coat 5 4 Approx 9,150 Sq.ft. $1,373 $275 $275 $30.70402 Asphalt - 2016 - Seal Coat 5 0 Approx 20,700 Sq.ft. $3,312 $3,312 $3,312 $74.09402 Asphalt - 2017 - Seal Coat 5 1 Approx 32,440 Sq.ft. $5,190 $4,152 $4,152 $116.11403 Concrete - Repair/Replace 10 6 Extensive Sq.ft. $10,000 $4,000 $4,000 $111.85508 Access Control System - Replace 12 6 (1) System $3,500 $1,750 $1,750 $32.62704 HVAC Ductless Systems - Replace 15 10 (2) Systems $7,000 $2,333 $2,333 $52.20705 HVAC Condensers - Replace 18 13 (2) Condensers $6,000 $1,667 $1,667 $37.28706 HVAC Furnaces - Replace 20 15 (2) Furnace $6,000 $1,500 $1,500 $33.56

1008 Vinyl Fencing - Replace 30 24 Approx 185 Linear ft. $6,105 $1,221 $0 $22.761101 Pool - Resurface 12 7 (1) Pool $13,000 $5,417 $5,417 $121.171104 Pool Heater - Replace 12 7 (1) Heater $5,000 $2,083 $2,083 $46.601107 Pool Filter - Replace 12 7 (1) Filter $13,000 $5,417 $5,417 $121.171111 Chemical Controller System - Replace 12 7 (1) System $3,500 $1,458 $1,458 $32.621112 Pool Cover - Replace 10 5 (1) Pool Cover $2,500 $1,250 $1,250 $27.961307 Benches - Replace 15 14 (4) Benches $2,800 $187 $187 $20.881309 Pergola - Replace 30 25 (1) Pergola $5,000 $833 $0 $18.641405 Furniture - Replace 10 5 See Gen Notes $5,000 $2,500 $2,500 $55.931406 Fitness Equipment - Replace 15 10 (1) Piece $4,500 $1,500 $1,500 $33.561407 Cardio Equipment - Replace 10 5 (4) Pieces $12,000 $6,000 $6,000 $134.221413 Restrooms - Remodel 18 13 (2) Restrooms $12,000 $3,333 $3,333 $74.571417 Kitchen - Remodel 20 15 (1) Kitchen $7,000 $1,750 $1,750 $39.151419 Multimedia Equipment - Replace 8 3 See Gen Notes $3,000 $1,875 $1,875 $41.94

Component Funding Information

13

ID Component Name UL

RU

L

QuantityAverage Current

Cost

Ideal Balance

Current Fund

BalanceMonthly

1501 Carpeting - Replace 8 3 Approx 2,730 Sq.ft. $11,603 $7,252 $7,252 $162.221503 Tile - Replace 30 25 Approx 390 Sq.ft. $5,265 $878 $0 $19.631602 Exterior Light Fixtures - 2010-2012 - Replace 16 11 (63) Fixtures $6,300 $1,969 $1,969 $44.041602 Exterior Light Fixtures - 2013-2015 - Replace 16 14 (60) Fixtures $6,000 $750 $750 $41.941690 Pool Light Fixtures - Replace 20 14 (3) Fixtures $3,000 $900 $900 $16.781812 Landscaping - Renovate 20 17 Extensive Sq.ft. $17,500 $2,625 $2,625 $97.87

$1,790,852 $307,956 $125,110 $9,252

Current Fund Balance as a percentage of Ideal Balance: 41%

14

Year 2016 2017 2018 2019 2020Starting Balance $127,735 $237,079 $348,030 $468,083 $576,036 Reserve Income $112,200 $115,566 $119,033 $122,604 $126,282 Interest Earnings $456 $731 $1,020 $1,305 $1,598 Special Assessments $0 $0 $0 $0 $0Funds Available $240,391 $353,376 $468,083 $591,992 $703,916Reserve Expenditures $3,312 $5,346 $0 $15,957 $1,545Ending Balance $237,079 $348,030 $468,083 $576,036 $702,371

Year 2021 2022 2023 2024 2025Starting Balance $702,371 $798,389 $912,183 $1,010,147 $1,154,984 Reserve Income $130,071 $133,973 $137,992 $142,132 $146,396 Interest Earnings $1,876 $2,138 $2,403 $2,706 $3,072 Special Assessments $0 $0 $0 $0 $0Funds Available $834,317 $934,500 $1,052,577 $1,154,984 $1,304,452Reserve Expenditures $35,928 $22,317 $42,431 $0 $1,791Ending Balance $798,389 $912,183 $1,010,147 $1,154,984 $1,302,661

Year 2026 2027 2028 2029 2030Starting Balance $1,302,661 $1,352,496 $1,475,223 $1,639,086 $1,688,402 Reserve Income $150,787 $155,311 $159,970 $164,769 $169,713 Interest Earnings $3,319 $3,534 $3,892 $4,159 $4,413 Special Assessments $0 $0 $0 $0 $0Funds Available $1,456,767 $1,511,342 $1,639,086 $1,808,014 $1,862,528Reserve Expenditures $104,270 $36,119 $0 $119,612 $19,925Ending Balance $1,352,496 $1,475,223 $1,639,086 $1,688,402 $1,842,604

Year 2031 2032 2033 2034 2035Starting Balance $1,842,604 $1,953,615 $2,114,371 $2,276,384 $2,467,367 Reserve Income $174,804 $180,048 $185,450 $191,013 $196,743 Interest Earnings $4,745 $5,084 $5,488 $5,929 $6,311 Special Assessments $0 $0 $0 $0 $0Funds Available $2,022,152 $2,138,747 $2,305,309 $2,473,326 $2,670,422Reserve Expenditures $68,537 $24,376 $28,925 $5,959 $88,508Ending Balance $1,953,615 $2,114,371 $2,276,384 $2,467,367 $2,581,914

Year 2036 2037 2038 2039 2040Starting Balance $2,581,914 $1,561,651 $1,561,806 $1,780,971 $620,296 Reserve Income $202,646 $208,725 $214,987 $221,436 $228,079 Interest Earnings $5,179 $3,904 $4,178 $3,001 $1,819 Special Assessments $0 $0 $0 $0 $0Funds Available $2,789,738 $1,774,280 $1,780,971 $2,005,408 $850,194Reserve Expenditures $1,228,087 $212,474 $0 $1,385,112 $15,200Ending Balance $1,561,651 $1,561,806 $1,780,971 $620,296 $834,994

Year 2041 2042 2043 2044 2045Starting Balance $834,994 $830,100 $1,041,649 $1,247,308 $1,362,106 Reserve Income $234,922 $241,970 $249,229 $256,705 $264,407 Interest Earnings $2,081 $2,339 $2,861 $3,261 $3,728 Special Assessments $0 $0 $0 $0 $0Funds Available $1,071,997 $1,074,409 $1,293,739 $1,507,275 $1,630,241Reserve Expenditures $241,897 $32,759 $46,430 $145,169 $9,833Ending Balance $830,100 $1,041,649 $1,247,308 $1,362,106 $1,620,408

Yearly Cash Flow

15

Yearly Reserve Expenditures - Graph

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

2046

Ann

ual T

otal

s

Year

16

Year ID # Component Name Projected Cost

Total Per Annum

2016 402 Asphalt - 2016 - Seal Coat $3,312 $3,3122017 402 Asphalt - 2017 - Seal Coat $5,346 $5,3462018 No Expenditures Projected $02019 1419 Multimedia Equipment - Replace $3,278

1501 Carpeting - Replace $12,678 $15,9572020 402 Asphalt - 2015 - Seal Coat $1,545 $1,5452021 216 Interior Surfaces - Repaint $9,482

402 Asphalt - 2016 - Seal Coat $3,8401112 Pool Cover - Replace $2,8981405 Furniture - Replace $5,7961407 Cardio Equipment - Replace $13,911 $35,928

2022 402 Asphalt - 2017 - Seal Coat $6,198403 Concrete - Repair/Replace $11,941508 Access Control System - Replace $4,179 $22,317

2023 1101 Pool - Resurface $15,9881104 Pool Heater - Replace $6,1491107 Pool Filter - Replace $15,9881111 Chemical Controller System - Replace $4,305 $42,431

2024 No Expenditures Projected $02025 402 Asphalt - 2015 - Seal Coat $1,791 $1,7912026 201 Stucco Surfaces - 2010-2012 - Repair/Repaint $84,364

402 Asphalt - 2016 - Seal Coat $4,451704 HVAC Ductless Systems - Replace $9,407

1406 Fitness Equipment - Replace $6,048 $104,2702027 402 Asphalt - 2017 - Seal Coat $7,185

1419 Multimedia Equipment - Replace $4,1531501 Carpeting - Replace $16,0611602 Exterior Light Fixtures - 2010-2012 - Replace $8,721 $36,119

2028 No Expenditures Projected $02029 201 Stucco Surfaces - 2013-2015 - Repair/Repaint $93,178

705 HVAC Condensers - Replace $8,8111413 Restrooms - Remodel $17,622 $119,612

2030 402 Asphalt - 2015 - Seal Coat $2,0761307 Benches - Replace $4,2351602 Exterior Light Fixtures - 2013-2015 - Replace $9,0761690 Pool Light Fixtures - Replace $4,538 $19,925

2031 216 Interior Surfaces - Repaint $12,743402 Asphalt - 2016 - Seal Coat $5,160706 HVAC Furnaces - Replace $9,348

1112 Pool Cover - Replace $3,8951405 Furniture - Replace $7,7901407 Cardio Equipment - Replace $18,6961417 Kitchen - Remodel $10,906 $68,537

2032 402 Asphalt - 2017 - Seal Coat $8,329

Projected Reserve Expenditures by Year

17

403 Concrete - Repair/Replace $16,047 $24,3762033 1812 Landscaping - Renovate $28,925 $28,9252034 508 Access Control System - Replace $5,959 $5,9592035 402 Asphalt - 2015 - Seal Coat $2,407

1101 Pool - Resurface $22,7961104 Pool Heater - Replace $8,7681107 Pool Filter - Replace $22,7961111 Chemical Controller System - Replace $6,1371419 Multimedia Equipment - Replace $5,2611501 Carpeting - Replace $20,345 $88,508

2036 105 Roofs - 2010-2012 - Replace $1,155,460120 Rain Guttering - 2010-2012 - Replace $66,646402 Asphalt - 2016 - Seal Coat $5,982 $1,228,087

2037 401 Asphalt - Overlay $202,819402 Asphalt - 2017 - Seal Coat $9,656 $212,474

2038 No Expenditures Projected $02039 105 Roofs - 2013-2015 - Replace $1,309,968

120 Rain Guttering - 2013-2015 - Replace $75,144 $1,385,1122040 402 Asphalt - 2015 - Seal Coat $2,790

1008 Vinyl Fencing - Replace $12,410 $15,2002041 201 Stucco Surfaces - 2010-2012 - Repair/Repaint $131,437

216 Interior Surfaces - Repaint $17,126402 Asphalt - 2016 - Seal Coat $6,935704 HVAC Ductless Systems - Replace $14,656

1112 Pool Cover - Replace $5,2341309 Pergola - Replace $10,4691405 Furniture - Replace $10,4691406 Fitness Equipment - Replace $9,4221407 Cardio Equipment - Replace $25,1251503 Tile - Replace $11,024 $241,897

2042 402 Asphalt - 2017 - Seal Coat $11,194403 Concrete - Repair/Replace $21,566 $32,759

2043 1419 Multimedia Equipment - Replace $6,6641501 Carpeting - Replace $25,7731602 Exterior Light Fixtures - 2010-2012 - Replace $13,994 $46,430

2044 201 Stucco Surfaces - 2013-2015 - Repair/Repaint $145,169 $145,1692045 402 Asphalt - 2015 - Seal Coat $3,234

1307 Benches - Replace $6,598 $9,833

Total Per AnnumYear Comp ID Component Name Projected

Cost

18

Component Evaluation

Comp #: 105

Source of Information: CSL Cost Database

Best Cost: $597,100

Worst Cost: $682,400

Location: Building Roofs

Quantity: Approx 170,600 Sq.ft.

Observations:

The roofs are in good condition. We recommend funding to replace this component approximately every 20 - 25 years. Remaining life based on current average age.

Life Expectancy: 25 Remaining Life: 20

$3.50/Sq.ft.; Estimate to replace

$4.00/Sq.ft.; Higher estimate

Roofs - 2010-2012 - Replace

General Notes:

Page 1 of 46

Comp #: 105


Best Cost: $619,500




Observations:

The roofs are in good condition. We recommend funding to replace this component approximately every 20 - 25 years. Remaining life based on current average age.




Roofs - 2013-2015 - Replace

General Notes:

Page 2 of 46

Comp #: 120


Best Cost: $33,210

Worst Cost: $40,590


Quantity: Approx 7,380 Linear ft.

Observations:

The rain gutters and downspouts are in good condition. We recommend replacing the rain gutters and downspouts at the same time as the roof replacement (see Comp# 105 Pitched Roof - Comp Shingle - Replace) to ensure proper function and to take advantage of the cost savings benefits. We recommend funding to replace this component approximately every 25 years. Remaining life based on current average age.


$4.50/Linear ft.; Estimate to replace

$5.50/Linear ft.; Higher estimate

Rain Guttering - 2010-2012 - Replace

General Notes:

Page 3 of 46

Comp #: 120


Best Cost: $34,268

Worst Cost: $41,883



Observations:

The rain gutters and downspouts are in good condition. We recommend replacing the rain gutters and downspouts at the same time as the roof replacement (see Comp# 105 Pitched Roof - Comp Shingle - Replace) to ensure proper function and to take advantage of the cost savings benefits. We recommend funding to replace this component approximately every 25 years. Remaining life based on current average age.


$4.50/Linear ft.; Estimate to replace

$5.50/Linear ft.; Higher estimate

Rain Guttering - 2013-2015 - Replace

General Notes:

Page 4 of 46

Comp #: 201


Best Cost: $53,475

Worst Cost: $72,075

Location: Building Exteriors


Observations:

The stucco surfaces are in good to fair condition. Areas of cracking and discoloration were noted at the time of the inspection. We recommend funding to repair/repaint this component approximately every 12 - 15 years to protect the stucco surface and maintain appearance. Remaining life based on current average age.


$1.15/Sq.ft.; Estimate to repair/repaint


Stucco Surfaces - 2010-2012 - Repair/Repaint

General Notes:

Page 5 of 46

Comp #: 201


Best Cost: $54,050

Worst Cost: $72,850

Location: Building Exteriors


Observations:

The stucco surfaces are in good condition. Areas of cracking were noted at the time of the inspection. We recommend funding to repair/repaint this component approximately every 12 - 15 years to protect the stucco surface and maintain appearance. Remaining life based on current average age.


$1.15/Sq.ft.; Estimate to repair/repaint


Stucco Surfaces - 2013-2015 - Repair/Repaint

General Notes:

Page 6 of 46

Comp #: 215

Source of Information:

Best Cost: $0

Worst Cost: $0

Location: Clubhouse Exterior

Quantity: Approx 310 Sq.ft.

Observations:

The siding painted surfaces are in fair to poor condition. Due to the minimal cost of repairing and repainting this component, reserve funding is not appropriate. Repaint as necessary as an operating expense.

Life Expectancy: N/A Remaining Life:

Siding - Repair/Repaint

General Notes:

Page 7 of 46

Comp #: 216


Best Cost: $7,401

Worst Cost: $8,959

Location: Clubhouse Interior


Observations:

The interior painted surfaces are generally in good condition. We recommend funding to repaint this component approximately every 10 years to maintain appearance. Remaining life based on current age.


$.95/Sq.ft.; Estimate to repaint


Interior Surfaces - Repaint

General Notes:

Quantity description:

830 Sq.ft. - Empty Room1,410 Sq.ft. - Entrance Hall1,240 Sq.ft. - Fitness Room590 Sq.ft. - Library2,770 Sq.ft. - Main Room950 Sq.ft. - Theater

7,790 Sq.ft. - Total

Page 8 of 46

Comp #: 401


Best Cost: $93,450


Location: Driveways & Parking Lot


Observations:

The asphalt surfaces are in good condition. Areas of cracking were noted at the time of the inspection. We recommend funding to overlay this component approximately every 20 - 25 years. Maintain seal coat schedule to ensure full useful life (see Comp# 402 Asphalt - Seal Coat). Remaining life based on current average age.


$1.50/Sq.ft.; Estimate for overlay


Asphalt - Overlay

General Notes:


11,050 Sq.ft. - Clubhouse Parking Lot51,250 Sq.ft. - Driveways


Page 9 of 46

Comp #: 402

Source of Information: Research with Client

Best Cost: $1,190

Worst Cost: $1,556

Location: Driveways


Observations:

The asphalt seal coat is in good condition. We recommend funding to seal this component approximately every 3 - 5 years. Remaining life based on current age.


$0.13/Sq.ft.; Estimate for seal coat


Asphalt - 2015 - Seal Coat

General Notes:


9,150 Sq.ft. - Driveways

Page 10 of 46

Comp #: 402


Best Cost: $2,691

Worst Cost: $3,933

Location: Driveways & Parking Lot


Observations:

The asphalt seal coat is in poor condition. Cracking was noted at the time of the inspection. Seal asphalt surfaces regularly to prevent premature overlay (see Comp# 401 Asphalt - Overlay). We recommend funding to seal this component approximately every 3 - 5 years. Remaining life based on current condition.





General Notes:


11,050 Sq.ft. - Clubhouse Parking Lot 9,660 Sq.ft. - Driveways


Page 11 of 46

Comp #: 402


Best Cost: $4,217

Worst Cost: $6,164

Location: Driveways


Observations:

The asphalt seal coat is in poor condition. Cracking was noted at the time of the inspection. Seal asphalt surfaces regularly to prevent premature overlay (see Comp# 401 Asphalt - Overlay). We recommend funding to seal this component approximately every 3 - 5 years. Remaining life based on current condition.





General Notes:


32,440 Sq.ft. - Driveways

Page 12 of 46

Comp #: 403


Best Cost: $8,000

Worst Cost: $12,000

Location: Driveways & Pool Deck

Quantity: Extensive Sq.ft.

Observations:

The concrete is in good condition. No expectation to completely replace the concrete surfaces. We recommend making local repairs as necessary as an operating expense and funding to make more significant repairs approximately every 10 years. Remaining life based on current average age.


Allowance to repair/replace

Higher allowance

Concrete - Repair/Replace

General Notes:

Page 13 of 46

Comp #: 508


Best Cost: $3,000

Worst Cost: $4,000

Location: Clubhouse & Pool Area

Quantity: (1) System

Observations:

The access control system is in working condition. We recommend funding to replace this system approximately every 12 years to ensure proper function and keep up with current technology. Remaining life based on current age.


Estimate to replace

Higher estimate

Access Control System - Replace

General Notes:

Page 14 of 46

Comp #: 703


Best Cost: $0

Worst Cost: $0

Location: Pool Equipment Room

Quantity: (1) Water Heater

Observations:

Research with the client reveals this component is maintained as necessary as an operating expense.


Water Heater - Replace

General Notes:

Page 15 of 46

Comp #: 704


Best Cost: $6,000

Worst Cost: $8,000

Location: Clubhouse Interior & Exterior

Quantity: (2) Systems

Observations:

The HVAC ductless systems are in working condition. We recommend funding to replace this component approximately every 10 - 15 years. Remaining life based on current age.


$3,000/Unit; Estimate to replace

$4,000/Unit; Higher estimate

HVAC Ductless Systems - Replace

General Notes:

Page 16 of 46

Comp #: 705


Best Cost: $5,000

Worst Cost: $7,000

Location: Adjacent to Clubhouse

Quantity: (2) Condensers

Observations:

The HVAC condenser is in working condition. We recommend replacing this component approximately every 16 - 18 years. Remaining life based on current age.




HVAC Condensers - Replace

General Notes:

Page 17 of 46

Comp #: 706


Best Cost: $5,000

Worst Cost: $7,000


Quantity: (2) Furnace

Observations:

Unable to inspect this component at the time of the inspection. Research with the client reveals this component is in working condition. We recommend funding to replace this component approximately every 20 years. Remaining life based on current age.




HVAC Furnaces - Replace

General Notes:

Page 18 of 46

Comp #: 801


Best Cost: $0

Worst Cost: $0

Location: Community West Entrance

Quantity: (1) Sign

Observations:



Monument Sign - Refurbish

General Notes:

Page 19 of 46

Comp #: 803


Best Cost: $0

Worst Cost: $0

Location: Common Area

Quantity: (8) Clusters

Observations:

The mailboxes are in good condition. Typically these mailboxes are owned and maintained by the postal service. No reserve funding necessary.


Mailboxes - Replace

General Notes:

Page 20 of 46

Comp #: 1005


Best Cost: $0

Worst Cost: $0

Location: Community Perimeter

Quantity: Approx 280 Linear ft.

Observations:

The block wall is in good condition. This component should have an extended useful life under normal conditions. Reserve funding is not appropriate.


Block Wall - Repair

General Notes:

Page 21 of 46

Comp #: 1008


Best Cost: $5,550

Worst Cost: $6,660

Location: Pool Area Perimeter

Quantity: Approx 185 Linear ft.

Observations:

The vinyl fencing is in good condition. We recommend funding to replace this component approximately every 25 - 30 years. Remaining life based on current age.


$30/Linear ft.; Estimate to replace

$36/Linear ft.; Higher estimate

Vinyl Fencing - Replace

General Notes:

Page 22 of 46

Comp #: 1012


Best Cost: $0

Worst Cost: $0

Location: Community Perimeter


Observations:

The prefab concrete fencing is in good condition. This component should have an extended useful life under normal conditions. Reserve funding is not appropriate.


Prefab Concrete Fence - Replace

General Notes:

Page 23 of 46

Comp #: 1101


Best Cost: $12,000

Worst Cost: $14,000

Location: Pool Area

Quantity: (1) Pool

Observations:

Unable to inspect this component at the time of the inspection. Research with the client reveals the pool surface is in good condition. We recommend funding to resurface this component every 10 - 12 years. Remaining life based on current age.


Estimate to resurface

Higher estimate

Pool - Resurface

General Notes:

Page 24 of 46

Comp #: 1104


Best Cost: $4,000

Worst Cost: $6,000


Quantity: (1) Heater

Observations:

Unable to inspect this component at the time of the inspection. Research with the client reveals this component is in working condition. This component has a useful life of approximately 12 years. Remaining life based on current age.


Estimate to replace

Higher estimate

Pool Heater - Replace

General Notes:

Page 25 of 46

Comp #: 1107


Best Cost: $12,000

Worst Cost: $14,000

Location: Pool equipment room

Quantity: (1) Filter

Observations:

Unable to inspect this component at the time of the inspection. Research with the client reveals this component is in working condition. This component has a useful life of approximately 12 years. Remaining life based on current age.


Estimate to replace

Higher estimate

Pool Filter - Replace

General Notes:

Page 26 of 46

Comp #: 1110


Best Cost: $0

Worst Cost: $0


Quantity: (1) Pump

Observations:



Pool Pump - Replace

General Notes:

Page 27 of 46

Comp #: 1111


Best Cost: $3,000

Worst Cost: $4,000

Location: Pool equipment room

Quantity: (1) System

Observations:

Unable to inspect this component at the time of the inspection. Research with the client reveals this component is in working condition. This component has a useful life of approximately 10 - 12 years. Remaining life based on current age.


Estimate to replace

Higher estimate

Chemical Controller System - Replace

General Notes:

Page 28 of 46

Comp #: 1112


Best Cost: $2,000

Worst Cost: $3,000

Location: Pool Area

Quantity: (1) Pool Cover

Observations:

The pool cover appears to be in good condition. We recommend funding to replace this component approximately every 10 years. Remaining life based on current age.


Estimate to replace

Higher estimate

Pool Cover - Replace

General Notes:

Page 29 of 46

Comp #: 1121


Best Cost: $0

Worst Cost: $0

Location: Pool Area

Quantity: (64) Pieces

Observations:



Pool Furniture - Replace

General Notes:

Page 30 of 46

Comp #: 1304


Best Cost: $0

Worst Cost: $0


Quantity: (1) Drinking Fountain

Observations:



Drinking Fountain - Replace

General Notes:

Page 31 of 46

Comp #: 1307


Best Cost: $2,400

Worst Cost: $3,200

Location: Adjacent to Community Streets

Quantity: (4) Benches

Observations:

The benches are in good condition. We recommend funding to replace this component approximately every 10 - 15 years. Remaining life based on current age.


$600/Bench; Estimate to replace

$800/Bench; Higher estimate

Benches - Replace

General Notes:

Page 32 of 46

Comp #: 1309


Best Cost: $4,000

Worst Cost: $6,000

Location: Pool Area

Quantity: (1) Pergola

Observations:

The pergola is in good condition. We recommend funding to replace this component approximately every 20 - 30 years. Remaining life is based on current age.


Estimate to replace

Higher estimate

Pergola - Replace

General Notes:

Page 33 of 46

Comp #: 1405


Best Cost: $4,000

Worst Cost: $6,000


Quantity: See Gen Notes

Observations:

The furniture is in good condition. We recommend funding an allowance to make replacements approximately every 10 years to maintain appearance and keep up with decorative tastes. Remaining life based on current age.


Allowance to make replacements

Higher allowance

Furniture - Replace

General Notes:


(1) - Armoire / (1) - Bench14 Linear ft. - Bookshelves / (2) - Bureau(99) - Chair, Folding / (6) - Chair, Padded(16) - Chair, Table / (1) - Lamp, Standing(6) - Lamp, Table / (2) - Ottoman(1) - Piano / (1) - Ping Pong Pool Table Cover(1) - Pool Table / (1) - Rug / (2) - Sofa(1) - Table, Coffee / (4) - Table, End(11) - Table, Folding / (4) - Table, Game(3) - Table, Side4 Linear ft. - Theater Cabinets / (15) - Theater Seats

Page 34 of 46

Comp #: 1406


Best Cost: $4,000

Worst Cost: $5,000

Location: Fitness Room

Quantity: (1) Piece

Observations:

The fitness equipment is in working condition. We recommend repairing broken cables and ripped upholstery as necessary as an operating expense and funding to completely replace this component approximately every 15 years. Remaining life based on current age.


Estimate to replace

Higher estimate

Fitness Equipment - Replace

General Notes:


(1) - Bodycraft Elite Strength Training System

Page 35 of 46

Comp #: 1407


Best Cost: $11,000

Worst Cost: $13,000

Location: Fitness Room

Quantity: (4) Pieces

Observations:

The cardio fitness equipment is in working condition. We recommend funding to replace this equipment approximately every 8 - 10 years. Remaining life based on current age.


Estimate to replace

Higher estimate

Cardio Equipment - Replace

General Notes:


(1) - Matrix Recumbent Bicycle(2) - Matrix Treadmill(1) - Octane Fitness Elliptical

(4) - Total Pieces

Page 36 of 46

Comp #: 1413


Best Cost: $10,000

Worst Cost: $14,000


Quantity: (2) Restrooms

Observations:

The restrooms are in good condition. We recommend funding to remodel this component approximately every 18 years to maintain appearance and keep up with current decorative tastes. Remaining life based on current age.


$5,000/Restroom; Estimate to remodel

$7,000/Restroom; Higher estimate

Restrooms - Remodel

General Notes:

Page 37 of 46

Comp #: 1417


Best Cost: $6,000

Worst Cost: $8,000


Quantity: (1) Kitchen

Observations:

The kitchen is in good condition. We recommend funding to remodel this component approximately every 20 years to keep up with current decorative tastes and ensure proper function of appliances. Remaining life based on current age.


Allowance to remodel

Higher allowance

Kitchen - Remodel

General Notes:


16 Linear ft. - Cabinet, Base15 Linear ft. - Cabinet, Wall16 Linear ft. - Countertop(1) - Microwave460 Sq.ft. - Painted Surfaces(1) - Refrigerator(1) - Stove120 Sq.ft. - Tile

Page 38 of 46

Comp #: 1419


Best Cost: $2,500

Worst Cost: $3,500


Quantity: See Gen Notes

Observations:

The multimedia equipment is in working condition. We recommend funding to replace this system approximately every 8 - 10 years to ensure proper function and keep up with current technology. Remaining life based on current age.


Estimate to replace

Higher estimate

Multimedia Equipment - Replace

General Notes:


(1) - Blue Ray Player(1) - Projector(1) - Speaker System(1) - Television(1) - Tuner

Page 39 of 46

Comp #: 1501


Best Cost: $10,920

Worst Cost: $12,285



Observations:

The carpeting is in good to fair condition. Fraying seams and stains were noted at the time of the inspection. We recommend funding to replace this component approximately every 8 - 10 years assuming normal use and wear. Remaining life based on current age.




Carpeting - Replace

General Notes:


230 Sq.ft. - Empty Room360 Sq.ft. - Fitness Room240 Sq.ft. - Library1,410 Sq.ft. - Main Room490 Sq.ft. - Theater


Page 40 of 46

Comp #: 1503


Best Cost: $4,680

Worst Cost: $5,850


Quantity: Approx 390 Sq.ft.

Observations:

The tile is in good condition. Although this component may reach an extended useful life we recommend funding to replace this component approximately every 30 years to ensure appearance and keep up with current decorative tastes. Remaining life based on current age.


$12/Sq.ft.; Estimate to replace

$15/Sq.ft.; Higher estimate

Tile - Replace

General Notes:


360 Sq.ft. - Entrance Hall30 Sq.ft. - Main Room

390 Sq.ft. - Total

Page 41 of 46

Comp #: 1602


Best Cost: $4,725

Worst Cost: $7,875

Location: Building Exteriors, Garage Area & CH

Quantity: (63) Fixtures

Observations:

The exterior light fixtures are in good condition. We recommend funding to replace this component approximately every16 years to maintain appearance and function. Remaining life based on current average age..


$75/Fixture; Estimate to replace

$125/Fixture; Higher estimate

Exterior Light Fixtures - 2010-2012 - Replace

General Notes:

Page 42 of 46

Comp #: 1602


Best Cost: $4,500

Worst Cost: $7,500

Location: Building Exteriors, Garage Area


Observations:

The exterior light fixtures are in good condition. We recommend funding to replace this component approximately every16 years to maintain appearance and function. Remaining life based on current average age.



$125/Fixture; Higher estimate

Exterior Light Fixtures - 2013-2015 - Replace

General Notes:

Page 43 of 46

Comp #: 1609


Best Cost: $0

Worst Cost: $0

Location: Adjacent to Community Streets


Observations:

Research with the client reveals this component is not a responsibility of the association.


Street Light Fixtures - Replace

General Notes:

Page 44 of 46

Comp #: 1690


Best Cost: $2,250

Worst Cost: $3,750

Location: Pool Area


Observations:

The pool light fixtures are in good condition. We recommend funding to replace this component approximately every 20 years to ensure proper function. Remaining life based on current age.



$1,250/Fixture; Higher estimate

Pool Light Fixtures - Replace

General Notes:

Page 45 of 46

Comp #: 1812


Best Cost: $15,000

Worst Cost: $20,000

Location: Common area

Quantity: Extensive Sq.ft.

Observations:

The landscaping is in good condition. No expectation to completely re-landscape the community. We recommend funding for an allowance to renovate the landscaping and irrigation system to maintain appearance and keep up with current decorative tastes. This component should be funded approximately every 20 years. Remaining life based on current average age.


Allowance to renovate landscaping

Higher allowance

Landscaping - Renovate

General Notes:

Page 46 of 46

Glossary of Commonly Used Words And Phrases (Provided by the National Reserve Study Standards of the Community Associations Institute) Cash Flow Method – A method of developing a reserve funding plan where contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved. Component – Also referred to as an “Asset.” Individual line items in the Reserve Study developed or updated in the physical analysis. These elements form the building blocks for the Reserve Study. Components typically are: 1) Association responsibility, 2) with limited useful life expectancies, 3) have predictable remaining life expectancies, 4) above a minimum threshold cost, and 5) required by local codes. Component Full Funding – When the actual (or projected) cumulative reserve balance for all components is equal to the fully funded balance. Component Inventory – The task of selecting and quantifying reserve components. This task can be accomplished through on-site visual observations, review of association design and organizational documents, a review of established association precedents, and discussion with appropriate association representatives. Deficit – An actual (or projected reserve balance), which is less than the fully funded balance. Effective Age – The difference between useful life and remaining useful life (UL - RUL). Financial Analysis – The portion of the Reserve Study where current status of the reserves (measured as cash or percent funded) and a recommended reserve contribution rate (reserve funding plan) are derived, and the projected reserve income and expenses over time is presented. The financial analysis is one of the two parts of the Reserve Study. Fully Funded Balance – An indicator against which the actual (or projected) reserve balance can be compared. The reserve balance that is in direct proportion to the fraction of life “used up” of the current repair or replacement cost of a reserve component. This number is calculated for each component, and then summed together for an association total. FFB = Current Cost * Effective Age / Useful Life Fund Status – The status of the reserve fund as compared to an established benchmark, such as percent funded. Funding Goals – Independent of calculation methodology utilized, the following represent the basic categories of funding plan goals:

• Baseline Funding: Establishing a reserve-funding goal of keeping the reserve balance above zero.

• Component Full Funding: Setting a reserve funding goal of attaining and maintaining cumulative reserves at or near 100% funded.

• Threshold Funding: Establishing a reserve funding goal of keeping the reserve balance above a specified dollar or percent funded amount.

Funding Plan – An association’s plan to provide income to a reserve fund to offset anticipated expenditures from that fund.

Funding Principles – • Sufficient funds when required • Stable contributions through the year • Evenly distributed contributions over the years • Fiscally responsible

GSF - Gross Square Feet Life and Valuation Estimates – The task of estimating useful life, remaining useful life, and repair or replacement costs for the reserve components. LF - Linear Feet Percent Funded – The ratio, at a particular point in time (typically the beginning of the fiscal year), of the actual (or projected) reserve balance to the ideal fund balance, expressed as a percentage. Physical Analysis – The portion of the Reserve Study where the component evaluation, condition assessment, and life and valuation estimate tasks are performed. This represents one of the two parts of the Reserve Study. Remaining Useful Life (RUL) – Also referred to as “remaining life” (RL). The estimated time, in years, that a reserve component can be expected to continue to serve its intended function. Projects anticipated to occur in the current fiscal year have a “0” remaining useful life. Replacement Cost – The cost of replacing, repairing, or restoring a reserve component to its original functional condition. The current replacement cost would be the cost to replace, repair, or restore the component during that particular year. Reserve Balance – Actual or projected funds as of a particular point in time (typically the beginning of the fiscal year) that the association has identified for use to defray the future repair or replacement of those major components that the association is obligated to maintain. Also known as “reserves,” “reserve accounts,” or “cash reserves.” In this report the reserve balance is based upon information provided and is not audited. Reserve Study – A budget-planning tool, which identifies the current status of the reserve fund and a stable and equitable funding plan to offset the anticipated future major common area expenditures. The Reserve Study consists of two parts: The Physical Analysis and the Financial Analysis. Special Assessment – An assessment levied on the members of an association in addition to regular assessments. Governing documents or local statutes often regulate special assessments. Surplus – An actual (or projected) reserve balance that is greater than the fully funded balance. Useful Life (UL) – Also known as “life expectancy.” The estimated time, in years, that a reserve component can be expected to serve its intended function if properly constructed and maintained in its present application of installation.

Documents

Sunset Park Villas - Parker Brownparker-brown.com/sunsetpark/wp-content/uploads/2016/02/Sunset-P… · reserve projects can be completed on time. When projects are completed on time,