Stone Cliff Owners Associationstonecliffhoa.com/wp-content/uploads/2016/03/2012...Stone Cliff Owners Association is a 338-unit community consisting of Single Family Homes. The property

* This report is being prepared for an abbreviated first year (4/1/2012-12/31/2012)

Stone Cliff Owners Association

Level 1 Reserve Study

Report Period – 4/1/2012 - 12/31/2012* Client Reference Number 12474 Property Type Single Family Homes Number of Units 338 Fiscal Year End 12/31

Report prepared on – Wednesday, March 21, 2012

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Date of Property Inspection 2/7/2012 Prepared By Robert Forney 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 - 10

Significant Components – Graph page 11

Yearly Summary page 12

Yearly Reserve Contributions – Graph page 13

Component Funding Information page 14 - 15

Yearly Cash Flow page 16

Yearly Reserve Expenditures – Graph page 17

Projected Reserve Expenditures by Year page 18 - 21

Component Evaluation

Component Evaluation page 1 - 58

Glossary of Commonly used Words and Phrases

1 * This report is being prepared for an abbreviated first year (4/1/2012-12/31/2012)

Executive Summary – Stone Cliff Owners Association - ID # 12474 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 1/1/2012* $431,958 Ideal Reserve Balance as of 1/1/2012* $927,532

Percent Funded as of 1/1/2012* 47% Recommended Reserve Contribution (per month) $16,150 Minimum Reserve Contribution (per month) $15,000 Recommended Special Assessment $0

Stone Cliff Owners Association is a 338-unit community consisting of Single Family Homes. The property offers a guard-gated entry system as well as a clubhouse, tennis courts, and pool areas as amenities. The community is approximately 13 years old.

Currently Programmed Projects Projects programmed to occur this fiscal year (FY2012) include sealing the cabana wood surfaces (Comp# 203), sealing approximately half of the asphalt surfaces (Comp# 402), resurfacing the tennis courts (Comp# 1201), and replacing the tennis court windscreens (Comp# 1202). We have programmed an estimated $101,485 in reserve expenditures toward the completion of these projects. (See page 18)

Major Reserve Expenditures The first major reserve expenditure is programmed to occur in fiscal year 2017. Projects programmed to occur in fiscal year 2017 include sealing the cabana wood surfaces (Comp# 203), sealing approximately half of the asphalt (Comp# 402), making repairs to the concrete surfaces (Comp# 403), replacing the heated pool deck boilers (Comp# 702), replacing the a/c condensers and pool building dehumidifier (Comp# 707), replacing the camera and access systems (Comp# 903, 904), replacing the tennis court windscreens (Comp#1202), replacing the clubroom furniture and carpeting (Comp# 1405, 1501), remodeling the lobby (Comp# 1415), renovating the landscaping (Comp# 1812), and refurbishing the water features (Comp# 2202). We have programmed approximately $311,364 in reserve funds or approximately 27% of fiscal year 2017’s recommended starting balance towards the completion of these projects (see page 12).

Significant Reserve Projects The association’s significant reserve projects include overlaying the asphalt streets (Comp# 401), sealing the asphalt streets (Comp# 402), renovating the landscaping (Comp# 1812), and resurfacing the pools (Comp# 1101). The fiscal significance of these components is approximately 40%, 22%, 4%, and 4% respectively (see page 9). 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 $431,958 versus the ideal reserve balance of $927,532 we find the association’s reserve fund to be approximately 47% 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 $16,150 ($47.78/unit) per month. We have also included a minimum reserve contribution of $15,000 ($44.38/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 an educated estimate of the necessary reserve balance and allocation. The detailed schedules will serve as an advanced warning that major projects will need to be addressed in the future. This will allow the Board of Directors to have ample time to obtain competitive estimates and bids that will result in cost savings to the individual homeowners. It will also 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 After working for a notable national reserve study provider Mr. Forney started Complex Solutions Ltd. in 2001. Complex Solutions provides reserve study consulting services to clients primarily in California, Nevada and Utah.

Holds the APRA “Professional Reserve Analyst” designation Personally has prepared over 1,000 reserve studies. Chosen to prepare the reserve studies for City Center, a 16,797,000 Sq.ft. mixed-use project on 76 acres built by

MGM Mirage and Dubai World in Las Vegas, NV. Created the proprietary software and databases used to prepare Complex Solutions’ reserve studies. This

proprietary software gives Complex Solutions the freedom and ability to create reports tailored to the individual clients needs. This software is also used under license by Aspen Reserve Specialties, an affiliate in Denver, CO.

Projects have ranged in size from small apartment-style condominium communities to 1000+ Planned Unit Communities.

Clients have ranged from developers interested in setting initial reserve accounts for communities under construction to high-rise communities, even an aero park (small airport).

Active member of three local chapters of CAI (Nevada, Utah, and Channel Islands, CA). Gold Sponsor of the Nevada chapter of CAI, Platinum Sponsor of the Utah chapter of CAI. Guest speaker at two CAI events (3) Articles published in Community Interests. Member of the Las Vegas High-rise and Condominiums Association Member of CAMEO (Community Association Management Executive Offices)

Budget Breakdown Every association conducts their business within a budget. There are typically two main parts to this budget, operating and reserves. The operating budget includes all expenses that occur on an annual basis. These would include management fees, maintenance expenses, utilities, etc. The reserves are primarily made up of capital replacement items such as roofing, fencing, mechanical equipment, etc., that do not normally occur on an annual basis. Typically, the reserve contribution makes up 15% - 40% of the association’s total budget. Therefore, reserves are considered to be a major part of the overall monthly association assessment.

Report Sections The Reserve Analysis 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). The Component Evaluation Section contains information regarding the physical status and replacement cost of major common area 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

Why is it important to perform a Reserve Study? As previously mentioned, the reserve allocation makes up a significant portion of the total monthly assessment. This report provides the essential information that is needed to guide the Board of Directors in establishing the budget in order to run the daily and long term operations of your association. It is suggested that a third party professionally prepare the Reserve Study since there is no vested interest in the property.

After we have a Reserve Study completed, what do we do with it? Hopefully, you will not look at this report and think it is too cumbersome to understand. Our intention is to make this Reserve Study easy to read and understand. Please take the time to review it carefully and make sure the “main ingredients” (component information) are complete and accurate. If there are any inaccuracies, please inform us immediately so we may revise the report. Once you feel the report is an accurate tool to work from, use it to help establish your budget for the upcoming fiscal year. The reserve allocation makes up a large portion of the total monthly assessment and this report should help you determine the correct amount of money to go into the reserve fund. Additionally, the Reserve Study should act as a guide to obtain proposals in advance of pending projects. This will give you an opportunity to shop around for the best price available. The Reserve Study should be readily available for real estate agents, brokerage firms, and lending institutions for potential future homeowners. As the importance of reserves becomes more of a household term, people are requesting homeowners associations reveal the strength of the reserve fund prior to purchasing a condominium, town home, or any property that belongs to an association.

How often do we update or review the Reserve Study? Unfortunately, there is a misconception that these reports are good for an extended period of time since the report has projections for the next 30 years. Just like any major line item in the budget, the Reserve Study should be reviewed each year before the budget is established. Invariably, some assumptions have to be made during the compilation of this analysis. Anticipated events may not materialize and unpredictable circumstances could occur. Deterioration rates and repair/replacement costs will vary from causes that are unforeseen. Earned interest rates may vary from year to year. These variations could alter the content of the Reserve Study. Therefore, this analysis should be reviewed annually, and a property inspection should be conducted at least once every three years. 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 (for Reserve purposes less than 30 years), predictable remaining useful life, typically occurs on a cyclical basis that exceeds 1 year, and costs above a minimum threshold amount. An “Operating” expense is typically a fixed expense that occurs on an annual basis as well as general repairs and maintenance. 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, then it cannot be considered a Reserve issue. However, it is the opinion of several major Reserve Study providers that these items are considered to be major expenses that occur on a cyclical basis. Therefore, it makes it very difficult to ignore a major expense that meets the criteria to be considered a reserve component. Once explained in this context, many accountants tend to agree and will include any expenses, such as these examples, as a reserve component.

What happens during the Site Visit? The Site Visit was conducted of the common areas as reported by client. From our site visit we identified those common area components that we have determined require reserve funding. Based on information provided by the client, client’s vendors, and our assessment of the components we have developed a component list and life and cost estimates. Estimated life expectancies and life cycles are based upon conditions that were readily accessible and visible at the time of the inspection. We did not destroy any landscape work, building walls, or perform any methods of intrusive investigation during the inspection. In these cases, information may have been obtained by contacting the contractor or vendor that has worked on the property. We have assumed any and all components have been properly built and will reach normal, typical life expectancies. In general 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.

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What is the Financial Analysis? We projected the starting balance by taking the most recent balance statement, adding expected reserve contributions for the rest of the fiscal year, and subtracting any pending projects that will be paid for before the end of the current fiscal year. We compared this number to the ideal reserve balance and arrived at the percent funded level. Measures of strength are as follows: 0% - 30% Funded is generally considered to be a “weak” financial position. Associations that fall into this category are

subject to special assessments and deferred maintenance, which could lead to lower property values. If the association is in this position, actions should be taken to improve the financial strength of the reserve fund.

31% - 69% Funded is generally considered a “fair” financial position. The majority of associations fall into this category. While this doesn’t represent financial strength and stability, the likelihood of special assessments and deferred maintenance is diminished. Effort should be taken to continue strengthening the financial position of the reserve fund.

70% - 99% Funded is generally considered a “strong” financial position. This indicates financial strength of a reserve fund and every attempt to maintain this level should be a goal of the association.

100% Funded is considered an “ideal” financial position. This means that the association has the exact amount of funds in the reserve account.

Disclosures: We will identify only those major components with a useful life of 30-years or less that generally meet industry standards for reserve funding. We have not funded for retaining walls, any buildings or structures, or other items designed to reach an extended life. The projected life expectancy of the major components and the funding needs of the reserves of the association are based upon the association performing appropriate routine and preventative maintenance for each major component. Failure to perform such maintenance can negatively impact the remaining useful life of the major components 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. 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. 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 “Financial Update” study. Therefore we have not verified the current condition of the common area 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 interest rate may also be based on

Beginning Assumptions

# of units 338Fiscal Year End 31-DecProjected Starting Reserve Balance* $431,958Ideal Starting Reserve Balance $927,532

Economic Assumptions

Projected Inflation Rate 3.00%Reported After-Tax Interest Rate 0.50%

Current Reserve Status

Current Balance as a % of Ideal Balance 47%

Funding Summary

5

Recommendations

Recommended Monthly Reserve Allocation $16,150Per Unit $47.78

Future Annual Increases 3.00%For number of years: 16Increases thereafter: 1.50%

Minimum Recommended Monthly Reserve Allocation $15,000Per Unit $44.38

Future Annual Increases 3.00%For number of years: 16Increases thereafter: 1.50%

* This report is being prepared for an abreviated first year (4/1/2012-12/31/2012)5

Percent Funded - Graph

60%

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2016

2018

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2042

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Recommended Minimum

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Component Inventory

Category ID # Component NameUseful

Life (yrs.)

RemainingUseful Life

(yrs.)

Best Cost

Worst Cost

Roofing 106 Cabana Roofs - Replace 30 17 $14,000 $16,800106 Clubhouse Roof - Replace (East) 25 24 $35,344 $40,056106 Clubhouse Roof - Replace (West) 25 12 $25,700 $29,100106 Tile Roof - Replace (Guard Building) 18 17 $8,250 $9,900

Painted Surfaces 201 Stucco Surfaces - Repaint 10 9 $15,000 $20,000203 Pool Cabana Wood Surfaces - Seal 5 0 $1,100 $1,700207 Wrought Iron Fencing - Repaint 4 2 $4,050 $4,950

Drive Materials 401 Asphalt - Overlay 30 20 $1,395,500 $1,953,700402 Asphalt - Seal (I) 5 4 $74,250 $85,400402 Asphalt - Seal (II) 5 0 $74,250 $85,400403 Concrete - Repair/Replace 10 5 $15,000 $20,000

Property Access 504 Vehicle Gates - Replace 30 17 $15,600 $17,200505 Vehicle Gate Hinges - Replace 8 4 $3,600 $4,800507 Vehicle Gate Operators - Replace 10 3 $13,000 $15,000590 Barrier Arm Operators - Replace 10 7 $10,000 $12,000

Decking 605 Finished Concrete - Seal 5 1 $3,670 $4,588

Mechanical Equip. 702 Boilers - Replace 15 5 $5,500 $6,500703 Water Heater - Replace 12 3 $2,750 $3,250705 HVAC Condensers - Replace 15 5 $9,600 $12,000706 HVAC Furnaces - Replace 20 10 $8,250 $9,750707 Dehumidifier - Replace 18 5 $13,000 $17,000

Prop. Identification 801 Monument - Rebuild N/A $0 $0890 Flag Pole - Replace 25 15 $7,000 $9,000

Life / Safety 903 Camera System - Replace 10 5 $13,000 $17,000904 Access Control System - Replace 10 5 $8,000 $12,000

Fencing 1002 Wrought Iron Fencing - Replace 25 15 $22,500 $27,0001003 Chain Link Fencing - Replace 30 17 $23,100 $29,700

Pool/Spa 1101 Pools - Resurface 10 9 $47,500 $52,5001102 Spa - Resurface 5 4 $3,000 $3,5001104 Pool Heater - Replace (Outdoor Pool) 10 4 $3,250 $3,7501104 Pool Heaters - Replace (I/O Pool) 10 4 $6,500 $7,5001105 Spa Heater - Replace 8 2 $3,250 $3,7501107 Pool Filter - Replace (Outdoor Pool) 10 6 $1,100 $1,4001107 Pool Filters - Replace (I/O Pool) 10 6 $2,200 $2,8001108 Spa Filter - Replace 10 6 $1,200 $1,6001121 Pool Furniture - Replace 5 2 $9,000 $11,000

Courts 1201 Tennis Courts - Resurface 8 0 $12,000 $14,0001202 Tennis Court Windscreen - Replace 5 0 $6,600 $7,920

Recreation Equip. 1304 Drinking Fountain - Replace 7 2 $900 $1,200

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Category ID # Component NameUseful

Life (yrs.)

RemainingUseful Life

(yrs.)

Best Cost

Worst Cost

Recreation Equip. 1390 Ceiling Fans - Replace 8 4 $3,325 $4,275

Interiors 1405 Furniture - Replace 10 5 $12,000 $15,0001406 Fitness Equipment - Replace 12 6 $8,000 $10,0001407 Cardio Equipment - Replace 6 1 $18,000 $22,0001413 Restrooms - Remodel 18 10 $10,000 $12,0001415 Guard Building Interior - Remodel 16 10 $6,000 $9,0001415 Lobby - Remodel 18 5 $4,000 $6,0001417 Kitchen - Remodel 20 7 $8,000 $12,0001419 TV - Replace 7 3 $1,250 $1,7501490 Wallpaper - Replace 10 1 $1,650 $2,200

Flooring 1501 Carpeting - Replace 8 5 $6,600 $8,0001505 Hardwood Floor - Refinish N/A $0 $0

Light Fixtures 1605 Bollard Lights - Replace 16 15 $7,700 $10,5001606 Tennis Court Light Fixtures - Replace 25 15 $14,400 $18,000

Landscaping 1812 Landscaping - Renovate 10 5 $50,000 $70,000

Lakes / Water Fea 2202 Water Features - Refurbish 10 5 $18,000 $22,0002203 Water Feature Pump - Replace (7.5 HP) 8 4 $2,500 $3,0002203 Water Feature Pumps - Replace N/A $0 $0

Buildings / Structu 2301 Windows / Doors - Replace N/A $0 $0

8

A $ A %

Significant Components

Significance: (Curr Cost/UL)

Average Current

Cost

Remaining Useful Life

(yrs )

Useful Life

(yrs )Component NameID #

9

As $ As %

106 Cabana Roofs - Replace 30 17 $15,400 $513 0.3679%106 Clubhouse Roof - Replace (East) 25 24 $37,700 $1,508 1.0807%106 Clubhouse Roof - Replace (West) 25 12 $27,400 $1,096 0.7854%106 Tile Roof - Replace (Guard Building) 18 17 $9,075 $504 0.3613%201 Stucco Surfaces - Repaint 10 9 $17,500 $1,750 1.2541%203 Pool Cabana Wood Surfaces Seal 5 0 $1 400 $280 0 2007%

Cost(yrs.)(yrs.)

203 Pool Cabana Wood Surfaces - Seal 5 0 $1,400 $280 0.2007%207 Wrought Iron Fencing - Repaint 4 2 $4,500 $1,125 0.8062%401 Asphalt - Overlay 30 20 $1,674,600 $55,820 40.0021%402 Asphalt - Seal (I) 5 4 $79,825 $15,965 11.4410%402 Asphalt - Seal (II) 5 0 $79,825 $15,965 11.4410%403 Concrete - Repair/Replace 10 5 $17,500 $1,750 1.2541%504 Vehicle Gates - Replace 30 17 $16,400 $547 0.3918%505 Vehicle Gate Hinges - Replace 8 4 $4,200 $525 0.3762%507 Vehicle Gate Operators - Replace 10 3 $14,000 $1,400 1.0033%590 Barrier Arm Operators - Replace 10 7 $11,000 $1,100 0.7883%605 Finished Concrete - Seal 5 1 $4,129 $826 0.5918%702 Boilers - Replace 15 5 $6,000 $400 0.2867%703 Water Heater - Replace 12 3 $3,000 $250 0.1792%705 HVAC Condensers - Replace 15 5 $10,800 $720 0.5160%705 HVAC Condensers Replace 15 5 $10,800 $720 0.5160%706 HVAC Furnaces - Replace 20 10 $9,000 $450 0.3225%707 Dehumidifier - Replace 18 5 $15,000 $833 0.5972%890 Flag Pole - Replace 25 15 $8,000 $320 0.2293%903 Camera System - Replace 10 5 $15,000 $1,500 1.0749%904 Access Control System - Replace 10 5 $10,000 $1,000 0.7166%

1002 Wrought Iron Fencing - Replace 25 15 $24,750 $990 0.7095%1003 Chain Link Fencing Replace 30 17 $26 400 $880 0 6306%1003 Chain Link Fencing - Replace 30 17 $26,400 $880 0.6306%1101 Pools - Resurface 10 9 $50,000 $5,000 3.5831%1102 Spa - Resurface 5 4 $3,250 $650 0.4658%1104 Pool Heater - Replace (Outdoor Pool) 10 4 $3,500 $350 0.2508%1104 Pool Heaters - Replace (I/O Pool) 10 4 $7,000 $700 0.5016%1105 Spa Heater - Replace 8 2 $3,500 $438 0.3135%1107 Pool Filter - Replace (Outdoor Pool) 10 6 $1,250 $125 0.0896%p ( )1107 Pool Filters - Replace (I/O Pool) 10 6 $2,500 $250 0.1792%1108 Spa Filter - Replace 10 6 $1,400 $140 0.1003%1121 Pool Furniture - Replace 5 2 $10,000 $2,000 1.4333%1201 Tennis Courts - Resurface 8 0 $13,000 $1,625 1.1645%1202 Tennis Court Windscreen - Replace 5 0 $7,260 $1,452 1.0405%1304 Drinking Fountain - Replace 7 2 $1,050 $150 0.1075%1390 Ceiling Fans - Replace 8 4 $3,800 $475 0.3404%1390 Ceiling Fans - Replace 8 4 $3,800 $475 0.3404%

9

As $ As %

1405 Furniture - Replace 10 5 $13,500 $1,350 0.9674%1406 Fitness Equipment - Replace 12 6 $9,000 $750 0.5375%1407 Cardio Equipment Replace 6 1 $20 000 $3 333 2 3888%

Significance: (Curr Cost/UL)ID # Component Name

Average Current

Cost


(yrs.)

Useful Life

(yrs.)

10

1407 Cardio Equipment - Replace 6 1 $20,000 $3,333 2.3888%1413 Restrooms - Remodel 18 10 $11,000 $611 0.4379%1415 Guard Building Interior - Remodel 16 10 $7,500 $469 0.3359%1415 Lobby - Remodel 18 5 $5,000 $278 0.1991%1417 Kitchen - Remodel 20 7 $10,000 $500 0.3583%1419 TV - Replace 7 3 $1,500 $214 0.1536%1490 Wallpaper - Replace 10 1 $1,925 $193 0.1380%1501 Carpeting - Replace 8 5 $7,300 $913 0.6539%1605 Bollard Lights - Replace 16 15 $9,100 $569 0.4076%1606 Tennis Court Light Fixtures - Replace 25 15 $16,200 $648 0.4644%1812 Landscaping - Renovate 10 5 $60,000 $6,000 4.2998%2202 Water Features - Refurbish 10 5 $20,000 $2,000 1.4333%2203 Water Feature Pump - Replace (7.5 HP 8 4 $2,750 $344 0.2463%

10

Significant Components - Graph

11

401 Asphalt - Overlay 402 Asphalt - Seal (I)

402 Asphalt - Seal (I) 1812 Landscaping - Renovate

All Other



All Other

40%

4%

33%



All Other

40%

12%11%4%

33%



All Other

As $ As %ID #

Significance: (Curr Cost/UL)

Average Current

Cost


(yrs )

Useful Life

(yrs )Component Name

40%

12%11%4%

33%



All Other

As $ As %401 Asphalt - Overlay 30 20 $1,674,600 $55,820 40%402 Asphalt - Seal (I) 5 4 $79,825 $15,965 11%402 Asphalt - Seal (I) 5 4 $79,825 $15,965 11%1812 Landscaping - Renovate 10 5 $60,000 $6,000 4%

All Other See Expanded Table For Breakdown $45,793 33%

Cost(yrs.)(yrs.)

11

YearFully

Funded Balance

Starting Reserve Balance

% Funded

Reserve Contributions

Interest Income

Reserve Expenses

Ending Reserve Balance

Yearly Summary

12

Balance BalanceFunded Contributions Income Expenses

Balance2012* $927,532 $431,958 47% $145,350 $2,275 $101,485 $478,0982013 $994,557 $478,098 48% $199,614 $2,829 $26,835 $653,7052014 $1,144,794 $653,705 57% $205,602 $3,741 $20,210 $842,8382015 $1,310,803 $842,838 64% $211,770 $4,704 $20,215 $1,039,0972016 $1,486,361 $1,039,097 70% $218,124 $5,460 $117,419 $1,145,2622017 $1,571,779 $1,145,262 73% $224,667 $5,522 $311,364 $1,064,0872018 $1,464,849 $1,064,087 73% $231,407 $5,844 $27,199 $1,274,1402019 $1,652,399 $1,274,140 77% $238,350 $6,825 $62,724 $1,456,5912020 $1,814,134 $1,456,591 80% $245,500 $7,874 $16,468 $1,693,4972021 $2,033,667 $1,693,497 83% $252,865 $8,625 $197,836 $1,757,1512022 $2,078,439 $1,757,151 85% $260,451 $9,036 $168,641 $1,857,9962023 $2,160,252 $1,857,996 86% $268,265 $9,963 $8,380 $2,127,8432024 $2 415 382 $2 127 843 88% $276 312 $11 184 $68 650 $2 346 6902024 $2,415,382 $2,127,843 88% $276,312 $11,184 $68,650 $2,346,6902025 $2,622,057 $2,346,690 89% $284,602 $12,322 $60,650 $2,582,9622026 $2,849,319 $2,582,962 91% $293,140 $13,307 $148,347 $2,741,0622027 $2,999,403 $2,741,062 91% $301,934 $13,379 $444,854 $2,611,5212028 $2,855,110 $2,611,521 91% $310,992 $13,773 $37,436 $2,898,8502029 $3,132,847 $2,898,850 93% $315,657 $14,947 $148,384 $3,081,0692030 $3,311,559 $3,081,069 93% $320,392 $16,171 $28,941 $3,388,6912031 $3 625 784 $3 388 691 93% $325 198 $17 048 $299 104 $3 431 8322031 $3,625,784 $3,388,691 93% $325,198 $17,048 $299,104 $3,431,8322032 $3,678,510 $3,431,832 93% $330,076 $9,922 $3,234,086 $537,7442033 $717,347 $537,744 75% $335,027 $3,472 $24,842 $851,4012034 $980,658 $851,401 87% $340,052 $5,049 $27,783 $1,168,7192035 $1,256,860 $1,168,719 93% $345,153 $6,549 $69,174 $1,451,2462036 $1,506,977 $1,451,246 96% $350,330 $7,408 $296,331 $1,512,6542037 $1,539,137 $1,512,654 98% $355,585 $7,189 $511,897 $1,363,531$ , , $ , , $ , $ , $ , $ , ,2038 $1,358,993 $1,363,531 100% $360,919 $7,604 $53,438 $1,678,6162039 $1,654,687 $1,678,616 101% $366,333 $9,141 $75,524 $1,978,5662040 $1,945,801 $1,978,566 102% $371,828 $10,723 $49,762 $2,311,3542041 $2,281,761 $2,311,354 101% $377,405 $11,597 $372,043 $2,328,313

* This report is being prepared for an abreviated first year (4/1/2012-12/31/2012)

12

Reserve Contributions - Graph

Monthly Reserve Contributions

13

$30,000

$35,000


$20 000

$25,000

$30,000

$35,000


$10 000

$15,000

$20,000

$25,000

$30,000

$35,000


$

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000


$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

Year


$-

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

Year


Recommended Minimum

13

ID Component Name UL

RU

L

QuantityAverage Current

Ideal Balance

Current Fund Balance

Monthly

Component Funding Information

14

U R

yCost

Balance Balancey

106 Cabana Roofs - Replace 30 17 Approx 2,800 Sq.ft. $15,400 $6,673 $6,673 $59.41106 Clubhouse Roof - Replace (East) 25 24 Approx 9,425 Sq.ft. $37,700 $1,508 $0 $174.53106 Clubhouse Roof - Replace (West) 25 12 Approx 6,850 Sq.ft. $27,400 $14,248 $14,248 $126.85106 Tile Roof - Replace (Guard Building) 18 17 Approx 1,650 Sq.ft. $9,075 $504 $504 $58.35( g)201 Stucco Surfaces - Repaint 10 9 Clubhouse, guard bldg., cabanas $17,500 $1,750 $1,750 $202.54203 Pool Cabana Wood Surfaces - Seal 5 0 (7) Cabanas / 1,985 Sq.ft. $1,400 $1,400 $1,400 $32.41207 Wrought Iron Fencing - Repaint 4 2 Approx 450 Linear ft. $4,500 $2,250 $2,250 $130.20401 Asphalt - Overlay 30 20 Approx 1,116,400 Sq.ft. $1,674,600 $558,200 $64,134 $6,460.35402 Asphalt - Seal (I) 5 4 Approx 558,200 Sq.ft. $79,825 $15,965 $15,965 $1,847.7102 S ( ) 0 8 200 S f $ 9 82 $ 9 82 $ 9 82 $1 8 1402 Asphalt - Seal (II) 5 0 Approx 558,200 Sq.ft. $79,825 $79,825 $79,825 $1,847.71

403 Concrete - Repair/Replace 10 5 Extensive Sq.ft. $17,500 $8,750 $8,750 $202.54504 Vehicle Gates - Replace 30 17 (4) 12' Leafs $16,400 $7,107 $7,107 $63.27505 Vehicle Gate Hinges - Replace 8 4 (12) Hinges $4,200 $2,100 $2,100 $60.76507 Vehicle Gate Operators - Replace 10 3 (4) Swing operators $14,000 $9,800 $9,800 $162.03590 B i A O t R l 10 7 (4) B i t $11 000 $3 300 $3 300 $127 31590 Barrier Arm Operators - Replace 10 7 (4) Barrier arm operators $11,000 $3,300 $3,300 $127.31605 Finished Concrete - Seal 5 1 Approx 1,835 Sq.ft. $4,129 $3,303 $3,303 $95.57702 Boilers - Replace 15 5 (2) Boilers $6,000 $4,000 $4,000 $46.29703 Water Heater - Replace 12 3 (1) 75 Gal heater $3,000 $2,250 $2,250 $28.93705 HVAC Condensers - Replace 15 5 (3) Condensers $10,800 $7,200 $7,200 $83.33706 HVAC Furnaces Replace 20 10 (3) Furnaces $9 000 $4 500 $4 500 $52 08706 HVAC Furnaces - Replace 20 10 (3) Furnaces $9,000 $4,500 $4,500 $52.08707 Dehumidifier - Replace 18 5 (1) Dehumidifier $15,000 $10,833 $10,833 $96.45890 Flag Pole - Replace 25 15 (1) Pole $8,000 $3,200 $3,200 $37.04903 Camera System - Replace 10 5 (1) System $15,000 $7,500 $7,500 $173.60904 Access Control System - Replace 10 5 (1) 6-Lock system $10,000 $5,000 $5,000 $115.74

1002 Wrought Iron Fencing - Replace 25 15 Approx 450 Linear ft $24 750 $9 900 $9 900 $114 581002 Wrought Iron Fencing - Replace 25 15 Approx 450 Linear ft. $24,750 $9,900 $9,900 $114.581003 Chain Link Fencing - Replace 30 17 Approx 660 Linear ft. $26,400 $11,440 $11,440 $101.851101 Pools - Resurface 10 9 (2) Large pools $50,000 $5,000 $5,000 $578.681102 Spa - Resurface 5 4 (1) 9' Diameter spa $3,250 $650 $650 $75.231104 Pool Heater - Replace (Outdoor Pool) 10 4 (1) 400,000 BTU $3,500 $2,100 $2,100 $40.511104 Pool Heaters - Replace (I/O Pool) 10 4 (2) 400,000 BTU $7,000 $4,200 $4,200 $81.011104 Pool Heaters Replace (I/O Pool) 10 4 (2) 400,000 BTU $7,000 $4,200 $4,200 $81.01

14

ID Component Name UL

RU

L

QuantityAverage Current

Cost

Ideal Balance

Current Fund Balance

Monthly

1105 Spa Heater - Replace 8 2 (1) 400,000 BTU $3,500 $2,625 $2,625 $50.631107 Pool Filter - Replace (Outdoor Pool) 10 6 (1) 7.06 Sq.ft. $1,250 $500 $500 $14.47

15

1107 Pool Filter Replace (Outdoor Pool) 10 6 (1) 7.06 Sq.ft. $1,250 $500 $500 $14.471107 Pool Filters - Replace (I/O Pool) 10 6 (1) 4.91 Sq.ft., (1) 7.06 Sq.ft. $2,500 $1,000 $1,000 $28.931108 Spa Filter - Replace 10 6 (1) 4.91 Sq.ft. filter $1,400 $560 $560 $16.201121 Pool Furniture - Replace 5 2 (45) Pieces $10,000 $6,000 $6,000 $231.471201 Tennis Courts - Resurface 8 0 (2) Courts $13,000 $13,000 $13,000 $188.071202 Tennis Court Windscreen - Replace 5 0 Approx 660 Linear ft. $7,260 $7,260 $7,260 $168.050 e s Cou dsc ee ep ace 5 0 pp o 660 ea $ , 60 $ , 60 $ , 60 $ 68 051304 Drinking Fountain - Replace 7 2 (1) Fountain $1,050 $750 $750 $17.361390 Ceiling Fans - Replace 8 4 (19) Fans $3,800 $1,900 $1,900 $54.971405 Furniture - Replace 10 5 (60) Pieces $13,500 $6,750 $6,750 $156.241406 Fitness Equipment - Replace 12 6 See General Notes $9,000 $4,500 $4,500 $86.801407 Cardio Equipment - Replace 6 1 (6) Pieces $20,000 $16,667 $16,667 $385.78q p p ( )1413 Restrooms - Remodel 18 10 (2) Restrooms $11,000 $4,889 $4,889 $70.731415 Guard Building Interior - Remodel 16 10 (1) Building $7,500 $2,813 $2,813 $54.251415 Lobby - Remodel 18 5 (1) Lobby $5,000 $3,611 $3,611 $32.151417 Kitchen - Remodel 20 7 See General Notes $10,000 $6,500 $6,500 $57.871419 TV - Replace 7 3 (1) Flat screen TV $1,500 $857 $857 $24.80

$ $ $ $1490 Wallpaper - Replace 10 1 Approx 1,100 Sq.ft. $1,925 $1,733 $1,733 $22.281501 Carpeting - Replace 8 5 Approx 1,890 Sq.ft. $7,300 $2,738 $2,738 $105.611605 Bollard Lights - Replace 16 15 (14) Lights $9,100 $569 $569 $65.821606 Tennis Court Light Fixtures - Replace 25 15 (12) Fixtures $16,200 $6,480 $6,480 $75.001812 Landscaping - Renovate 10 5 Extensive Sq.ft. $60,000 $30,000 $30,000 $694.412202 W t F t R f bi h 10 5 (9) W t f t $20 000 $10 000 $10 000 $231 472202 Water Features - Refurbish 10 5 (9) Water features $20,000 $10,000 $10,000 $231.472203 Water Feature Pump - Replace (7.5 HP) 8 4 (1) 7.5 HP pump $2,750 $1,375 $1,375 $39.78

$927,532 $431,958 $16,150Current Fund Balance as a percentage of Ideal Balance: 47%

15

Year 2012* 2013 2014 2015 2016Starting Balance $431,958 $478,098 $653,705 $842,838 $1,039,097 Reserve Income $145,350 $199,614 $205,602 $211,770 $218,124 Interest Earnings $2,275 $2,829 $3,741 $4,704 $5,460

S $ $ $ $ $

Yearly Cash Flow

16

Special Assessments $0 $0 $0 $0 $0Funds Available $579,583 $680,540 $863,048 $1,059,312 $1,262,680Reserve Expenditures $101,485 $26,835 $20,210 $20,215 $117,419Ending Balance $478,098 $653,705 $842,838 $1,039,097 $1,145,262

Year 2017 2018 2019 2020 2021Starting Balance $1,145,262 $1,064,087 $1,274,140 $1,456,591 $1,693,497 Reserve Income $224,667 $231,407 $238,350 $245,500 $252,865 Interest Earnings $5,522 $5,844 $6,825 $7,874 $8,625 Special Assessments $0 $0 $0 $0 $0Funds Available $1,375,451 $1,301,339 $1,519,315 $1,709,965 $1,954,987Reserve Expenditures $311,364 $27,199 $62,724 $16,468 $197,836Ending Balance $1,064,087 $1,274,140 $1,456,591 $1,693,497 $1,757,151



Year 2032 2033 2034 2035 2036Starting Balance $3,431,832 $537,744 $851,401 $1,168,719 $1,451,246 Reserve Income $330,076 $335,027 $340,052 $345,153 $350,330 Interest Earnings $9,922 $3,472 $5,049 $6,549 $7,408 Special Assessments $0 $0 $0 $0 $0Funds Available $3,771,830 $876,243 $1,196,502 $1,520,420 $1,808,984Reserve Expenditures $3,234,086 $24,842 $27,783 $69,174 $296,331Ending Balance $537 744 $851 401 $1 168 719 $1 451 246 $1 512 654Ending Balance $537,744 $851,401 $1,168,719 $1,451,246 $1,512,654

Year 2037 2038 2039 2040 2041Starting Balance $1,512,654 $1,363,531 $1,678,616 $1,978,566 $2,311,354 Reserve Income $355,585 $360,919 $366,333 $371,828 $377,405 Interest Earnings $7,189 $7,604 $9,141 $10,723 $11,597 Special Assessments $0 $0 $0 $0 $0Funds Available $1,875,428 $1,732,054 $2,054,090 $2,361,116 $2,700,356R E dit $511 897 $53 438 $75 524 $49 762 $372 043Reserve Expenditures $511,897 $53,438 $75,524 $49,762 $372,043Ending Balance $1,363,531 $1,678,616 $1,978,566 $2,311,354 $2,328,313

* This report is being prepared for an abreviated first year (4/1/2012-12/31/2012)16

Yearly Reserve Expenditures - Graph

$3,500,000

$3,000,000

$3,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

Tota

ls

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

An

nu

al T

ota

ls

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

An

nu

al T

ota

ls

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

An

nu

al T

ota

ls

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

An

nu

al T

ota

ls

Year

17

Year ID # Component NameProjected

CostTotal Per Annum

2012 203 Pool Cabana Wood Surfaces - Seal $1,400402 Asphalt - Seal (II) $79,825

1201 Tennis Courts - Resurface $13,0001202 Tennis Court Windscreen - Replace $7,260 $101,485

2013 605 Finished Concrete - Seal $4,2531407 Cardio Equipment - Replace $20,6001490 Wallpaper - Replace $1,983 $26,835

2014 207 Wrought Iron Fencing - Repaint $4,7741105 Spa Heater - Replace $3,7131121 Pool Furniture - Replace $10,6091304 Drinking Fountain - Replace $1,114 $20,210

2015 507 Vehicle Gate Operators - Replace $15,298703 Water Heater - Replace $3,278

1419 TV - Replace $1,639 $20,2152016 402 Asphalt - Seal (I) $89,844

505 Vehicle Gate Hinges - Replace $4,7271102 Spa - Resurface $3,6581104 Pool Heater - Replace (Outdoor Pool) $3,9391104 Pool Heaters - Replace (I/O Pool) $7,8791390 Ceiling Fans - Replace $4,2772203 Water Feature Pump - Replace (7.5 HP) $3,095 $117,419

2017 203 Pool Cabana Wood Surfaces - Seal $1,623402 Asphalt - Seal (II) $92,539403 Concrete - Repair/Replace $20,287702 Boilers - Replace $6,956705 HVAC Condensers - Replace $12,520707 Dehumidifier - Replace $17,389903 Camera System - Replace $17,389904 Access Control System - Replace $11,593

1202 Tennis Court Windscreen - Replace $8,4161405 Furniture - Replace $15,6501415 Lobby - Remodel $5,7961501 Carpeting - Replace $8,4631812 Landscaping - Renovate $69,5562202 Water Features - Refurbish $23,185 $311,364

2018 207 Wrought Iron Fencing - Repaint $5,373605 Finished Concrete - Seal $4,9301107 Pool Filter - Replace (Outdoor Pool) $1,4931107 Pool Filters - Replace (I/O Pool) $2,9851108 Spa Filter - Replace $1,6721406 Fitness Equipment - Replace $10,746 $27,199

2019 590 Barrier Arm Operators - Replace $13,5291121 Pool Furniture - Replace $12,2991407 Cardio Equipment - Replace $24,5971417 Kitchen - Remodel $12,299 $62,724

Projected Reserve Expenditures by Year

18

2020 1201 Tennis Courts - Resurface $16,468 $16,4682021 201 Stucco Surfaces - Repaint $22,834

402 Asphalt - Seal (I) $104,1541101 Pools - Resurface $65,2391102 Spa - Resurface $4,2411304 Drinking Fountain - Replace $1,370 $197,836

2022 203 Pool Cabana Wood Surfaces - Seal $1,881207 Wrought Iron Fencing - Repaint $6,048402 Asphalt - Seal (II) $107,278706 HVAC Furnaces - Replace $12,095

1105 Spa Heater - Replace $4,7041202 Tennis Court Windscreen - Replace $9,7571413 Restrooms - Remodel $14,7831415 Guard Building Interior - Remodel $10,0791419 TV - Replace $2,016 $168,641

2023 605 Finished Concrete - Seal $5,7151490 Wallpaper - Replace $2,665 $8,380

2024 106 Clubhouse Roof - Replace (West) $39,066505 Vehicle Gate Hinges - Replace $5,988

1121 Pool Furniture - Replace $14,2581390 Ceiling Fans - Replace $5,4182203 Water Feature Pump - Replace (7.5 HP) $3,921 $68,650

2025 507 Vehicle Gate Operators - Replace $20,5591407 Cardio Equipment - Replace $29,3711501 Carpeting - Replace $10,720 $60,650

2026 207 Wrought Iron Fencing - Repaint $6,807402 Asphalt - Seal (I) $120,7421102 Spa - Resurface $4,9161104 Pool Heater - Replace (Outdoor Pool) $5,2941104 Pool Heaters - Replace (I/O Pool) $10,588 $148,347

2027 203 Pool Cabana Wood Surfaces - Seal $2,181402 Asphalt - Seal (II) $124,365403 Concrete - Repair/Replace $27,264703 Water Heater - Replace $4,674890 Flag Pole - Replace $12,464903 Camera System - Replace $23,370904 Access Control System - Replace $15,580

1002 Wrought Iron Fencing - Replace $38,5601202 Tennis Court Windscreen - Replace $11,3111405 Furniture - Replace $21,0331605 Bollard Lights - Replace $14,1781606 Tennis Court Light Fixtures - Replace $25,2391812 Landscaping - Renovate $93,4782202 Water Features - Refurbish $31,159 $444,854

2028 605 Finished Concrete - Seal $6,6251107 Pool Filter - Replace (Outdoor Pool) $2,0061107 Pool Filters - Replace (I/O Pool) $4,012

Total Per Annum

Year Comp ID Component Name Projected Cost

19

1108 Spa Filter - Replace $2,2471201 Tennis Courts - Resurface $20,8611304 Drinking Fountain - Replace $1,685 $37,436

2029 106 Cabana Roofs - Replace $25,454106 Tile Roof - Replace (Guard Building) $15,000504 Vehicle Gates - Replace $27,107590 Barrier Arm Operators - Replace $18,181

1003 Chain Link Fencing - Replace $43,6351121 Pool Furniture - Replace $16,5281419 TV - Replace $2,479 $148,384

2030 207 Wrought Iron Fencing - Repaint $7,6611105 Spa Heater - Replace $5,9591406 Fitness Equipment - Replace $15,322 $28,941

2031 201 Stucco Surfaces - Repaint $30,686402 Asphalt - Seal (I) $139,9741101 Pools - Resurface $87,6751102 Spa - Resurface $5,6991407 Cardio Equipment - Replace $35,070 $299,104

2032 203 Pool Cabana Wood Surfaces - Seal $2,529401 Asphalt - Overlay $3,024,514402 Asphalt - Seal (II) $144,173505 Vehicle Gate Hinges - Replace $7,586702 Boilers - Replace $10,837705 HVAC Condensers - Replace $19,506

1202 Tennis Court Windscreen - Replace $13,1121390 Ceiling Fans - Replace $6,8632203 Water Feature Pump - Replace (7.5 HP) $4,967 $3,234,086

2033 605 Finished Concrete - Seal $7,6811490 Wallpaper - Replace $3,5811501 Carpeting - Replace $13,580 $24,842

2034 207 Wrought Iron Fencing - Repaint $8,6221121 Pool Furniture - Replace $19,161 $27,783

2035 507 Vehicle Gate Operators - Replace $27,630707 Dehumidifier - Replace $29,604

1304 Drinking Fountain - Replace $2,0721415 Lobby - Remodel $9,868 $69,174

2036 106 Clubhouse Roof - Replace (East) $76,636402 Asphalt - Seal (I) $162,2681102 Spa - Resurface $6,6071104 Pool Heater - Replace (Outdoor Pool) $7,1151104 Pool Heaters - Replace (I/O Pool) $14,2301201 Tennis Courts - Resurface $26,4261419 TV - Replace $3,049 $296,331

2037 203 Pool Cabana Wood Surfaces - Seal $2,931402 Asphalt - Seal (II) $167,136403 Concrete - Repair/Replace $36,641903 Camera System - Replace $31,407

Year Comp ID Component Name Projected CostTotal Per Annum

20

904 Access Control System - Replace $20,9381202 Tennis Court Windscreen - Replace $15,2011405 Furniture - Replace $28,2661407 Cardio Equipment - Replace $41,8761812 Landscaping - Renovate $125,6272202 Water Features - Refurbish $41,876 $511,897

2038 207 Wrought Iron Fencing - Repaint $9,705605 Finished Concrete - Seal $8,9041105 Spa Heater - Replace $7,5481107 Pool Filter - Replace (Outdoor Pool) $2,6961107 Pool Filters - Replace (I/O Pool) $5,3911108 Spa Filter - Replace $3,0191415 Guard Building Interior - Remodel $16,174 $53,438

2039 590 Barrier Arm Operators - Replace $24,434703 Water Heater - Replace $6,664

1121 Pool Furniture - Replace $22,2131417 Kitchen - Remodel $22,213 $75,524

2040 505 Vehicle Gate Hinges - Replace $9,6091390 Ceiling Fans - Replace $8,6941413 Restrooms - Remodel $25,1672203 Water Feature Pump - Replace (7.5 HP) $6,292 $49,762

2041 201 Stucco Surfaces - Repaint $41,240402 Asphalt - Seal (I) $188,1131101 Pools - Resurface $117,8281102 Spa - Resurface $7,6591501 Carpeting - Replace $17,203 $372,043

2042 203 Pool Cabana Wood Surfaces - Seal $3,398207 Wrought Iron Fencing - Repaint $10,923402 Asphalt - Seal (II) $193,756706 HVAC Furnaces - Replace $21,845

1202 Tennis Court Windscreen - Replace $17,6221304 Drinking Fountain - Replace $2,5491406 Fitness Equipment - Replace $21,845 $271,938

Total Per Annum

Projected CostComponent NameComp IDYear

21

Component Evaluation

Comp #: 106

Source of Information: CSL Cost Database

Best Cost: $14,000

Worst Cost: $16,800

Location: Pool area cabanas

Quantity: Approx 2,800 Sq.ft.

Observations:

No problems noted or reported. Although these roofs may reach an extended life we recommend funding to replace them approximately every 30 years. Remaining life based on current age.

Life Expectancy: 30 Remaining Life: 17

$5.00/Sq.ft.; Estimate to replace underlayment

$6.00/Sq.ft.; Higher estimate for more tile replacement

Cabana Roofs - Replace

General Notes:

Page 1 of 58

Comp #: 106


Best Cost: $35,344

Worst Cost: $40,056

Location: East portion of roof (over pool)


Observations:

Client reports that the east portion of the roof over the pool was replaced last year. Expect a typical useful life of approximately 25 years from this roof. Inspect roof regularly and make repairs as necessary as an operating expense to ensure full life.




Clubhouse Roof - Replace (East)

General Notes:

Page 2 of 58

Comp #: 106


Best Cost: $25,700

Worst Cost: $29,100

Location: West portion of roof


Observations:

Client reports that this portion of the clubhouse roof is original and was not replaced at the same time as the east portion in 2011. Remaining life based on current age.




Clubhouse Roof - Replace (West)

General Notes:

Page 3 of 58

Comp #: 106


Best Cost: $8,250

Worst Cost: $9,900

Location: Guard building


Observations:

No access to roof at the time of our site visit. Client reports that this roof was replaced in 2011. Expect a useful life of approximately 18 years from a typical flat roof.




Tile Roof - Replace (Guard Building)

General Notes:

Page 4 of 58

Comp #: 201


Best Cost: $15,000

Worst Cost: $20,000

Location: Clubhouse, cabanas, guard building

Quantity: Clubhouse, guard bldg., cabanas

Observations:

Client reports that the clubhouse and guard building were re-stucco'd and painted in 2011. No expectation to completely re-stucco the buildings under normal circumstances. We recommend funding to repaint the stucco surfaces and make repairs approximately every 10 years.


Estimate to repaint

Higher estimate

Stucco Surfaces - Repaint

General Notes:

Page 5 of 58

Comp #: 203


Best Cost: $1,100

Worst Cost: $1,700

Location: Pool area

Quantity: (7) Cabanas / 1,985 Sq.ft.

Observations:

The wood surfaces are faded and drying. We recommend sealing these surfaces this year based on current condition.


$.55/Sq.ft.; Estimate to seal

$.85/Sq.ft.; Higher estimate for more prep work

Pool Cabana Wood Surfaces - Seal

General Notes:

Page 6 of 58

Comp #: 207


Best Cost: $4,050

Worst Cost: $4,950

Location: Pool area

Quantity: Approx 450 Linear ft.

Observations:

Painted wrought iron surfaces are in good to fair condition, no rusting or broken welds noted. Repaint this component approximately every 3 to 5 years to maintain appearance and protect metal surfaces. Remaining life based on current condition.


$9.00/Linear ft.; Estimate to repaint iron fence

$11.00/Linear ft; Higher estimate for additional prep work

Wrought Iron Fencing - Repaint

General Notes:

Quantity breakdown:

325 Linear ft. - Pool area perimeter15 Linear ft. - Spa area50 Linear ft. - Pool area railings60 Linear ft. - Fitness room entry railings

450 Linear ft. - Total

Page 7 of 58

Comp #: 401


Best Cost: $1,395,500

Worst Cost: $1,953,700

Location: Community streets

Quantity: Approx 1,116,400 Sq.ft.

Observations:

No problems noted at the time of inspection. With regular slurry seals (see Comp# 402 Asphalt - Slurry Seal) asphalt surface should reach a typical useful life of approximately 30 years before an overlay is necessary. Remaining life based on average age and condition.


$1.25/Sq.ft.; Estimate for overlay

$1.75/Sq.ft.; Higher estimate for local repairs

Asphalt - Overlay

General Notes:

Page 8 of 58

Comp #: 402

Source of Information: Actual Cost History

Best Cost: $74,250

Worst Cost: $85,400



Observations:

Client reports that approximately 1/2 of the asphalt surfaces were sealed in 2011. This line item represents those streets already sealed. Expect to seal the asphalt approximately every 4 to 6 years depending on use and wear.


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


Asphalt - Seal (I)

General Notes:

Page 9 of 58

Comp #: 402


Best Cost: $74,250

Worst Cost: $85,400



Observations:

Client reports that approximately 1/2 of the asphalt surfaces were sealed last year (FY 2011). This line item represents those streets still to be sealed. Client reports that the remaining streets will be sealed this year (FY 2012).


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


Asphalt - Seal (II)

General Notes:

Page 10 of 58

Comp #: 403


Best Cost: $15,000

Worst Cost: $20,000

Location: Drain swale, sidwalks, pool deck, etc.

Quantity: Extensive Sq.ft.

Observations:

Concrete is generally in good condition. No significant cracking or structural problems noted at the time of inspection. 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.


Allowance to repair/replace

Higher allowance for more repairs/replacements

Concrete - Repair/Replace

General Notes:

Page 11 of 58

Comp #: 504


Best Cost: $15,600

Worst Cost: $17,200

Location: Entrance to community

Quantity: (4) 12' Leafs

Observations:

Although these gates may reach an extended life we recommend funding to completely replace them approximately every 30 years to ensure appearance and function.


$3,900/Leaf; Estimate to replace

$4,300/Leaf; Higher estimate

Vehicle Gates - Replace

General Notes:

Page 12 of 58

Comp #: 505


Best Cost: $3,600

Worst Cost: $4,800

Location: Vehicle gates

Quantity: (12) Hinges

Observations:

Although vehicle gates may reach an extended life the hinges will need to be periodically replaced to ensure proper function.


$300/Hinge; Estimate to replace hinges

$400/Hinge; Higher estimate

Vehicle Gate Hinges - Replace

General Notes:

Page 13 of 58

Comp #: 507


Best Cost: $13,000

Worst Cost: $15,000


Quantity: (4) Swing operators

Observations:

No problems noted or reported. Expect a typical useful life of approximately 10 years from these operators. Remaining life based on average age.


$3,250/Operator; Estimate to replace operators

$3,750/Operator; Higher estimate for more installaton cost

Vehicle Gate Operators - Replace

General Notes:

Elite Access SystemsMod# CSW200ULSer# DateE175-A5-01491 4/2/05N/A N/A

Mod# CSW200ULDMDC3Ser# Date1106N5930 3/17/061806N1725E 5/04/06

Page 14 of 58

Comp #: 590


Best Cost: $10,000

Worst Cost: $12,000

Location: Entrances to commuity

Quantity: (4) Barrier arm operators

Observations:

No problems noted or reported with these operators. We recommend funding to replace these operators approximately every 10 years depending on use and wear. Remaining life based on current age.


$2,500/Operator; Estimate to replace

$3,000/Operator; Higher estimate

Barrier Arm Operators - Replace

General Notes:

Main entrance:LiftMasterMod# BG770-50-11Ser# 3609N5495 & 3609N54969/4/2009

Construction entrance:LiftMasterMod# BG770-50-11Ser# 3110N1086 & 3110N2095

Page 15 of 58

Comp #: 605


Best Cost: $3,670

Worst Cost: $4,588

Location: Clubhouse interior


Observations:

We recommend funding to seal these concrete surfaces approximately every 5 years. Remaining life based on current condition.


$2.00/Sq.ft.; Estimate to seal

$2.50/Sq.ft.; Higher estimate for more repairs

Finished Concrete - Seal

General Notes:

Quantity breakdown:

330 Sq.ft. - Lobby880 Sq.ft. - Restrooms300 Sq.ft. - Restroom hall325 Sq.ft. - Utility room

1,835 Sq.ft. - Total

Page 16 of 58

Comp #: 702


Best Cost: $5,500

Worst Cost: $6,500

Location: Utility rooms

Quantity: (2) Boilers

Observations:

These boilers heat the water for the pool deck snowmelt system. Expect a useful life of approximately 15 years from these boilers. Remaining life based on current age and condition.


$2,750/Boiler; Estimate to replace boiler

$3,250/Boiler; Higher estimate for more installation cost

Boilers - Replace

General Notes:

DunkirkMod# PWB-3D-HA5Ser# 45990021770,000 BTU

Slant/FinMod# CB-90Ser# C000356790,000 BTU

Page 17 of 58

Comp #: 703


Best Cost: $2,750

Worst Cost: $3,250

Location: Utility room

Quantity: (1) 75 Gal heater

Observations:

No problems noted or reported. We recommend funding to replace this water heater approximately every 12 years. Remaining life based on current condition.


Estimate to replace

Higher estimate

Water Heater - Replace

General Notes:

Bradford WhiteMod# MIITW75T6CN10Ser# TJ6778340-33775,000 BTU75 Gallons

Page 18 of 58

Comp #: 705


Best Cost: $9,600

Worst Cost: $12,000

Location: Clubhouse

Quantity: (3) Condensers

Observations:

We identified three condensers, one adjacent to the fitness room as well as two on the clubhouse roof. No access to clubhouse roof condensers. For the purposes of this report we have assumed all condensers are original and aging normally.


$3,200/Unit; Estimate to replace condensers

$4,000/Unit; Higher estimate for more installation costs

HVAC Condensers - Replace

General Notes:

Page 19 of 58

Comp #: 706


Best Cost: $8,250

Worst Cost: $9,750

Location: Clubhouse interior

Quantity: (3) Furnaces

Observations:

Furnaces are in good condition. Although these furnaces may reach an extended life we recommend funding to replace them approximately every 20 years.


$2,750/Unit; Estimate to replace furnace

$3,250/Unit; Higher estimate for more installation costs

HVAC Furnaces - Replace

General Notes:

Page 20 of 58

Comp #: 707


Best Cost: $13,000

Worst Cost: $17,000

Location: Adjacent to clubhouse

Quantity: (1) Dehumidifier

Observations:

No problems noted or reported. We recommend funding to replace this component approximately every 15 to 20 years. For the purposes of this report we have assumed that this component is original.


Estimate to modernize elevator

Higher estimate for more upgrades

Dehumidifier - Replace

General Notes:

Centri MasterMod# XB245Ser# 06F8511001

Page 21 of 58

Comp #: 801

Source of Information:

Best Cost: $0

Worst Cost: $0


Quantity: (1) Large engraved boulder

Observations:

No expectation to replace this monument under normal circumstances. No reserve funding necessary.

Life Expectancy: N/A Remaining Life:

Monument - Rebuild

General Notes:

Page 22 of 58

Comp #: 890


Best Cost: $7,000

Worst Cost: $9,000


Quantity: (1) Pole

Observations:

Although this pole may reach an extended life we recommend funding to replace this flag pole approximately every 25 years to ensure stability and function.


Estimate to replace

Higher estimate

Flag Pole - Replace

General Notes:

Page 23 of 58

Comp #: 903


Best Cost: $13,000

Worst Cost: $17,000

Location: Common area

Quantity: (1) System

Observations:

No problems noted or reported. We recommend funding to replace this security camera system approximately every 10 years to ensure proper function and keep up with current technology.


Estimate to replace

Higher estimate to replace

Camera System - Replace

General Notes:

Page 24 of 58

Comp #: 904


Best Cost: $8,000

Worst Cost: $12,000

Location: Utility room

Quantity: (1) 6-Lock system

Observations:

We recommend funding to replace this system approximately every 10 years to ensure proper function and to keep up with current technology. Remaining life based on current condition.


Estimate to replace

Higher estimate

Access Control System - Replace

General Notes:

Page 25 of 58

Comp #: 1002


Best Cost: $22,500

Worst Cost: $27,000

Location: Pool area


Observations:

Fencing is in good condition. No significant rusting or structural problems noted at the time of inspection. With regular painting and maintenance, expect a useful life of 20 to 25 years from this component. Remaining life based on current age and condition.


$50/Linear ft.; Estimate to replace fence

$60/Linear ft.; Higher estimate for more labor

Wrought Iron Fencing - Replace

General Notes:

Quantity breakdown:

325 Linear ft. - Pool area perimeter15 Linear ft. - Spa area50 Linear ft. - Pool area railings60 Linear ft. - Fitness room entry railings

450 Linear ft. - Total

Page 26 of 58

Comp #: 1003


Best Cost: $23,100

Worst Cost: $29,700

Location: Tennis courts


Observations:

Although this fencing may reach an extended life we recommend funding to replace this fencing approximately every 30 years.


$35/Linear ft.; Estimate to replace fencing

$45/Linear ft.; Higher estimate

Chain Link Fencing - Replace

General Notes:

Page 27 of 58

Comp #: 1101


Best Cost: $47,500

Worst Cost: $52,500

Location: Pool area

Quantity: (2) Large pools

Observations:

No problems noted at the time of our site visit. Client reports that the pools were resurfaced in 2011. Expect to resurface these pools approximately every 10 to 12 years.


Estimate to replaster pools

Higher estimate for local repairs

Pools - Resurface

General Notes:

Page 28 of 58

Comp #: 1102


Best Cost: $3,000

Worst Cost: $3,500

Location: Pool area

Quantity: (1) 9' Diameter spa

Observations:

Spa is in good condition. No problems noted at the time of inspection. This spa was resurfaced at the same time as the pools in 2011. Because entire spa surface experiences traffic wear expect to replaster spa approximately every 4 to 6 years.


Estimate to replaster spa

Higher estimate for local repairs

Spa - Resurface

General Notes:

Page 29 of 58

Comp #: 1104


Best Cost: $3,250

Worst Cost: $3,750

Location: Pool equipment area

Quantity: (1) 400,000 BTU

Observations:

Pool heater is in good condition. This type of pool heater typically has a useful life of approximately 10 to 12 years. Remaining life based on current condition.


Estimate to replace heater

Higher estimate for more installation costs

Pool Heater - Replace (Outdoor Pool)

General Notes:

Pentair "Master Temp 400"Ser# U-41178400,000 BTU

Page 30 of 58

Comp #: 1104


Best Cost: $6,500

Worst Cost: $7,500



Observations:

Heaters are in fair condition. No problems noted at the time of inspection. Expect a useful life of approximately 10 years from these heaters. Remaining life based on current condition.


$3,250/Heater; Estimate to replace pool heater

$3,750/Heater; Higher estimate for more installation costs

Pool Heaters - Replace (I/O Pool)

General Notes:

Pentair "MiniMax NT"Ser# U-40271 & U-40272400,000 BTU

Page 31 of 58

Comp #: 1105


Best Cost: $3,250

Worst Cost: $3,750



Observations:

Heater is generally older but in fair condition. No reports of problems. However due to age replacement should be expected within the next two years.


Estimate to replace heater


Spa Heater - Replace

General Notes:

Pentair "MiniMax NT"Mod# 400DVSer# U-40273400,000 BTU

Page 32 of 58

Comp #: 1107


Best Cost: $1,100

Worst Cost: $1,400


Quantity: (1) 7.06 Sq.ft.

Observations:

Filter is in good condition. No problems were noted at the time of inspection. This type of pool filter has a life expectancy of approximately 10 to 12 years. Remaining life based on current age.


Estimate to replace filter


Pool Filter - Replace (Outdoor Pool)

General Notes:

Purex Triton IIMod# TR-1407.06 Sq.ft.12/2008

Page 33 of 58

Comp #: 1107


Best Cost: $2,200

Worst Cost: $2,800


Quantity: (1) 4.91 Sq.ft., (1) 7.06 Sq.ft.

Observations:

Filters are in good to fair condition. These filters were installed in 2007 and 2008. Expect a useful life of approximately 12 years from these filters.


$1,100/Filter; Estimate to replace filter

$1,400/Filter; Higher estimate for more installation costs

Pool Filters - Replace (I/O Pool)

General Notes:

Purex Triton II#1Mod# TR-100HD4.91 Sq.ft.12/2008

Purex Triton IIMod# TR-1407.06 Sq.ft.2/2007

Page 34 of 58

Comp #: 1108


Best Cost: $1,200

Worst Cost: $1,600


Quantity: (1) 4.91 Sq.ft. filter

Observations:

This filter was installed in 2008. No problems noted or reported. Expect a useful life of approximately 10 years from this type of filter. Remaining life based on current age.


Estimate to replace filter


Spa Filter - Replace

General Notes:

Triton IIMod# TR-1004.91 Sq.ft.12/2008

Page 35 of 58

Comp #: 1121


Best Cost: $9,000

Worst Cost: $11,000

Location: Pool area

Quantity: (45) Pieces

Observations:

Pool furniture is in good to fair condition. No significant signs of age or appearance concerns noted. Remaining life based on current condition.


Estimate to replace - similar quality and quantity

Higher estimate for more replacements/better quality

Pool Furniture - Replace

General Notes:

Quantity breakdown:

(10) Strapped chaise lounges(28) Strapped chairs(7) Glass tables

(45) Pieces

Page 36 of 58

Comp #: 1201


Best Cost: $12,000

Worst Cost: $14,000


Quantity: (2) Courts

Observations:

Client reports that these courts will be resurfaced this year (FY 2012). Expect to resurface these courts approximately every 8 years to ensure a good playing surface.


$6,000/Tennis court; Estimate to resurface tennis court

$7,000/Tennis court; Higher estimate for local repairs

Tennis Courts - Resurface

General Notes:

Page 37 of 58

Comp #: 1202


Best Cost: $6,600

Worst Cost: $7,920



Observations:

Noted thinning as well as some rips and tears. We recommend replacing the tennis court windscreens this year based on current condition.


$10/Linear ft.; Estimate to replace windscreen

$12/Linear ft.; Higher estimate for better quality replacement

Tennis Court Windscreen - Replace

General Notes:

Page 38 of 58

Comp #: 1304


Best Cost: $900

Worst Cost: $1,200

Location: Pool/restroom hall

Quantity: (1) Fountain

Observations:

No problems noted at the time of our site visit. Drinking fountain is functioning normally. Expect to replace this component approximately every 7 years. Remaining life based on current condition.


Estimate to replace

Higher estimate

Drinking Fountain - Replace

General Notes:

Page 39 of 58

Comp #: 1390


Best Cost: $3,325

Worst Cost: $4,275

Location: See General Notes

Quantity: (19) Fans

Observations:

Fans are in good condition. Expect to replace these fans approximately every 8 years. Remaining life based on average condition.


$175/Fan; Estimate to replace

$225/Fan; Higher estimate

Ceiling Fans - Replace

General Notes:

Quantity breakdown:

(2) Fans - Club room(2) Fans - Lobby(2) Fans - Fitness room(8) Fans - Cabanas(5) Fans - Clubhouse exterior

(19) Fans - Total

Page 40 of 58

Comp #: 1405


Best Cost: $12,000

Worst Cost: $15,000

Location: Club Room


Observations:

Because this patio furniture is indoors it should reach a longer life than typical patio/pool furniture. We recommend funding to replace it approximately every 10 years. Remaining life based on current condition.


Estimate to replace

Higher estimate

Furniture - Replace

General Notes:

Club Room:

(12) Glass top tables(48) Strapped chairs

(60) Pieces

Page 41 of 58

Comp #: 1406


Best Cost: $8,000

Worst Cost: $10,000

Location: Fitness room

Quantity: See General Notes

Observations:

No broken cables or ripped upholstery noted. No significant signs of age or wear. Expect to replace this equipment approximately every 12 years.


Estimate to replace

Higher estimate

Fitness Equipment - Replace

General Notes:

Quantity breakdown:

(1) "Apollo 350" 3-Station universal machine(1) "Tuff-Stuff" Lap pull down machine(1) Seat(1) Bench(1) Sit-up bench(1) Dumbbell weight rack (26 weights, 3-50lbs)(1) Plate weight rack (16 weights, 5-45lbs)

Page 42 of 58

Comp #: 1407


Best Cost: $18,000

Worst Cost: $22,000



Observations:

Cardio equipment is older but functioning normally. Useful life of cardio equipment varies significantly based on quality and level of use and wear. We recommend funding to replace this equipment approximately every 6 years. Remaining life based on current condition.


Estimate to replace

Higher estimate

Cardio Equipment - Replace

General Notes:

Quantity breakdown:

(1) LifeFitness 9500 HR treadmill(1) True "SOFT System" treadmill(1) Precor elliptical machine(1) LifeFitness 9500 HP recumbent bike(1) Universal "Fitstep II) stair stepper(1) Kettler Coach rowing machine

(6) Total pieces

Page 43 of 58

Comp #: 1413


Best Cost: $10,000

Worst Cost: $12,000

Location: Clubhouse

Quantity: (2) Restrooms

Observations:

Restrooms are in good condition. No appearance concerns noted at the time of inspection. We recommend funding to generally remodel and refurbish these restrooms approximately every 18 years to maintain appearance and keep up with current decorative tastes.


$5,000/Restroom; Estimate to remodel restroom

$7,000/Restroom; Higher estimate for more extensive remodel

Restrooms - Remodel

General Notes:

At each restroom:

230 Sq.ft. - Engineered marble wainscoting14 Linear ft. - Partitions(2) 2.5 X 4 ft. Showers(7) Florescent light fixtures(1) 7' Counter with two sinks(1) 7 X 4 ft. mirror

Men's: Add (1) toilet, (2) urinalsWomen's: Add (2) toilets

Page 44 of 58

Comp #: 1415


Best Cost: $6,000

Worst Cost: $9,000

Location: Guard building

Quantity: (1) Building

Observations:

Guard building interior is in good condition. No appearance concerns or significant signs of age. We recommend funding to refurbish and generally remodel the guard building interior approximately every 16 years to ensure appearance and to keep up with current decorative tastes. Remaining life based on current condition.


Estimate to remodel

Higher estimate for more extensive remodel

Guard Building Interior - Remodel

General Notes:

Page 45 of 58

Comp #: 1415


Best Cost: $4,000

Worst Cost: $6,000

Location: Clubhouse lobby

Quantity: (1) Lobby

Observations:

We recommend funding to rebuild the reception desk and refinish the concrete flooring approximately every 18 years. Remaining life based on current age and condition. Refinish reception desk as necessary as an operating expense.


Allowance to remodel

Higher allowance

Lobby - Remodel

General Notes:

Quantity breakdown:

(1) Reception counter/desk (approx 15 Linear ft.)330 Sq.ft. - Finished concrete floor(2) Book shelves

Page 46 of 58

Comp #: 1417


Best Cost: $8,000

Worst Cost: $12,000

Location: Adjacent to Club Room

Quantity: See General Notes

Observations:

Kitchen is in good condition. Although we observed several cracked tiles the cabinets are not showing any significant signs of wear, no appearance concerns noted. Expect to remodel kitchen approximately every 20 years to keep up with current decorative tastes and ensure proper function of appliances. Remaining life based on current age and condition.


Allowance to remodel

Higher estimate for more extensive remodel

Kitchen - Remodel

General Notes:

Quantity breakdown:

25 Linear ft. - Wall cabinets18 Linear ft. - Base cabinets20 Linear ft. - Countertop75 Sq.ft. - Tile flooring(1) Stove(1) Refrigerator(1) Dishwasher(1) Microwave

Page 47 of 58

Comp #: 1419


Best Cost: $1,250

Worst Cost: $1,750

Location: Club room

Quantity: (1) Flat screen TV

Observations:

Expect to replace this television approximately every 6 to 8 years to ensure proper function and to keep up with current technology.


Estimate to replace

Higher estimate

TV - Replace

General Notes:

Page 48 of 58

Comp #: 1490


Best Cost: $1,650

Worst Cost: $2,200



Observations:

Wallpaper is older but in fair condition. No significant curling seams noted or marking observed. Remaining life based on current condition.


$1.50/Sq.ft.; Estimate to replace ceiling tile

$2.00/Sq.ft.; Estimate to replace ceiling tile

Wallpaper - Replace

General Notes:

Page 49 of 58

Comp #: 1501


Best Cost: $6,600

Worst Cost: $8,000

Location: Club room, fitness room


Observations:

Carpeting is in good to fair condition. No significant wear patterns or appearance concerns observed. Expect to replace this carpeting approximately every 8 to 10 years.


$3.50/Sq.ft.; Estimate to replace

$4.25/Sq.ft.; Higher estimate for better quality

Carpeting - Replace

General Notes:

Quantity breakdown:

1,350 Sq.ft. - Club room90 Sq.ft. - Stairway450 Sq.ft.- - Fitness room

1,890 Sq.ft. - Total

Page 50 of 58

Comp #: 1505


Best Cost: $0

Worst Cost: $0


Quantity: Approx 225 Sq.ft.

Observations:

We recommend refinishing this flooring as necessary as an operating expense. No reserve funding necessary.


Hardwood Floor - Refinish

General Notes:

Page 51 of 58

Comp #: 1605


Best Cost: $7,700

Worst Cost: $10,500

Location: Rec. area

Quantity: (14) Lights

Observations:

Client reports that all but two of these bollard lights were installed in 2011. WE recommend funding to replace these bollard lights approximately every 16 years.


$550/Light; Estimate to replace lights

$750/Light; Higher estimate for more installation costs

Bollard Lights - Replace

General Notes:

Page 52 of 58

Comp #: 1606


Best Cost: $14,400

Worst Cost: $18,000


Quantity: (12) Fixtures

Observations:

No problems noted or reported. Although these lights may reach an extended life we recommend funding to replace them approximately every 25 years. Remaining life based on current age and condition.


$1,200/Light; Estimate to replace light fixtures

$1,500/Light; Higher estimate for more installation costs

Tennis Court Light Fixtures - Replace

General Notes:

Page 53 of 58

Comp #: 1812


Best Cost: $50,000

Worst Cost: $70,000


Quantity: Extensive Sq.ft.

Observations:

No expectation to completely re-landscape the community. We recommend funding to make repairs to the irrigation system and to generally renovate the landscaping, landscaping lights, etc. approximately every 10 years.


Allowance to renovate landscaping

Higher estimate for more extensive renovation

Landscaping - Renovate

General Notes:

Page 54 of 58

Comp #: 2202


Best Cost: $18,000

Worst Cost: $22,000


Quantity: (9) Water features

Observations:

We recommend funding for an allowance to generally make repairs and refurbishments to the water features approximately every 10 years. This allowance can be increased/decreased as the community develops a history or repairs/refurbishments.


Allowance to repair/refurbish

Higher allowance

Water Features - Refurbish

General Notes:

Page 55 of 58

Comp #: 2203


Best Cost: $2,500

Worst Cost: $3,000

Location: Adjacent to entry area

Quantity: (1) 7.5 HP pump

Observations:

We recommend funding to replace this pump approximately every 8 years. Rebuild pump as necessary as an operating expense to ensure full life.


Estimate to replace

Higher estimate

Water Feature Pump - Replace (7.5 HP)

General Notes:

Page 56 of 58

Comp #: 2203


Best Cost: $0

Worst Cost: $0

Location: Water features

Quantity: (9) Water features

Observations:

With the exception of the large 7.5 HP pump at the entry water feature we recommend replacing the individual water feature pumps as necessary as an operating expense. No reserve funding necessary.


Water Feature Pumps - Replace

General Notes:

Page 57 of 58

Comp #: 2301


Best Cost: $0

Worst Cost: $0

Location: Clubhouse

Quantity: (74) Windows. (16) Doors

Observations:

These windows and doors should generally experience an extended life. No reserve funding necessary. Make individual replacements as necessary as an operating expense.


Windows / Doors - Replace

General Notes:

Windows:(13) 6.5 X 3.5 ft.(18) 6.5 X 4.5 ft.(34) 4.5 X 2.5 ft.(9) 4.5 X 5.5 ft.(1) 8.5 X 2.5 ft.(1) 8.5 X 6.5 ft.(76) Total windows

Doors:(2) Sliding patio doors(3) Interior doors(11) Glass entry/exit doors(16) Doors

Page 58 of 58

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

Stone Cliff Owners Associationstonecliffhoa.com/wp-content/uploads/2016/03/2012...Stone Cliff Owners Association is a 338-unit community consisting of Single Family Homes. The property