With-Site-Visit” Reserve Study

“With-Site-Visit” Reserve Study

Snow Lion at Vail Condominiums Vail, CO

Report #: 31288-0

For Period Beginning: January 1, 2017

Expires: December 31, 2017

Date Revised: February 15, 2017

Association Reserves Colorado, LLC 2/15/2017

Hello, and welcome to your Reserve Study!

e don’t want you to be surprised. This Report is designed to help you anticipate, and prepare for, the major common area expenses your association will face. Inside you will find:

1) The Reserve Component List (the “Scope and Schedule” of your Reserve projects) – telling you what your association is Reserving for, what condition they are in now, and what they’ll cost to replace.

2) An Evaluation of your current Reserve Fund Size and Strength (Percent Funded). This tells you your financial starting point, revealing your risk of deferred maintenance and special assessments.

3) A Recommended Multi-Year Reserve Funding Plan, answering the question… “What do we do now?”

More Questions?

Visit our website at www.ReserveStudy.com or call us at:

303/394-9181

W

http://www.reservestudy.com/

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Association Reserves Colorado, LLC 2/15/2017

Table of Contents

3- Minute Executive Summary ............................................................................ i Reserve Study Summary ......................................................................................................... i Reserve Component List – Table 1 ......................................................................................... ii

Introduction, Objectives, and Methodology ..................................................... 1

Which Physical Assets are Funded by Reserves? ..................................................................2 How do we establish Useful Life and Remaining Useful Life estimates? ................................2 How do we establish Current Repair/Replacement Cost Estimates? ......................................2

How much Reserves are enough? ..........................................................................................3 How much should we contribute? ...........................................................................................4

What is our Recommended Funding Goal? ............................................................................4

Projected Expenses ........................................................................................... 6

Expense Graph – Figure 1 ......................................................................................................6

Reserve Fund Status & Recommended Funding Plan .................................... 7

Funding Plan Graph – Figure 2 ...............................................................................................7 Cash Flow Graph – Figure 3 ...................................................................................................8

% Funded Graph – Figure 4 ....................................................................................................8

Table Descriptions ............................................................................................. 9

Reserve Component List Detail – Table 2 ............................................................................. 10

Contribution & Fund Breakdown – Table 3 ........................................................................... 12

Component Significance – Table 4 ....................................................................................... 14 30 Year Reserve Plan Summary – Table 5 ........................................................................... 16 30 Year Reserve Plan Year by Year Detail – Table 6 ........................................................... 17

Accuracy, Limitations, and Disclosures ......................................................... 29

Terms and Definitions ...................................................................................... 29

Component Details .............................................................................. Appendix

Association Reserves Colorado, LLC 2/15/2017 i

3- Minute Executive Summary

Association: Snow Lion at Vail Condominiums

#: 31288-0

Location: Vail, CO # of Units: 27 Report Period: January 1, 2017 through December 31, 2017

Findings/Recommendations as-of 1/1/2017:

Projected Starting Reserve Balance: ............................................. $117,000 Current Fully Funded Reserve Balance: .................................... $1,856,848 Average Reserve Deficit Per Unit: ..................................................... $64,439 Recommended 2017 Monthly “Full Funding” Contributions: ............ $5,265 Alternate Minimum Contributions to keep Reserves above $0: ........ $3,300 Recommended 2017 Special Assessment for Reserves: ........... $1,620,000

Most Recent Budgeted Reserve Contribution Rate: .......................... $1,000

Economic Assumptions: Net Annual “After Tax” Interest Earnings Accruing to Reserves ...... 1.00% Annual Inflation Rate ............................................................................ 3.00%

This is an “Update With-Site-Visit” Reserve Study, based on a prior Reportprepared by Borne Engineering for your 2007 Fiscal Year. November 11,2016. It was prepared by a credentialed Reserve Specialist (RS #260).

Your Reserve Fund is currently 6% Funded. This means the association’sspecial assessment & deferred maintenance risk is currently high. Theobjective of your multi-year Funding Plan is to fund your Reserves to alevel where you will enjoy a low risk of such Reserve cash flow problems.

Based on this starting point and your anticipated future expenses, ourrecommendation is to increase your Reserve contributions with an annualincrease of 5% in order to be within the 70% to 100% level as noted above.100% “Full” contribution rates are designed to achieve these fundingobjectives by the end of our 30-year report scope. No assets appropriatefor Reserve designation were excluded. See photo appendix forcomponent details; the basis of our assumptions.

Association Reserves Colorado, LLC 2/15/2017 ii

Table 1: Executive Summary 31288-0

Useful Rem. Current

Life Useful Cost

# Component (yrs) Life (yrs) Estimate

Sites & Grounds

2117 Hill Erosion - Repair N/A 0 $250,000

2121 Pavers - Replace 30 0 $3,250

2131 Asphalt - Seal/Repair 4 0 $4,800

2133 Asphalt - Resurface 25 7 $66,000

2134 Bridge Rails - Replace 30 0 $21,000

2136 Bridge - Stain/Repair 5 0 $1,550

2139 Metal/Wood Treads - Repair/Replace 15 0 $4,000

2151 Site Fencing: Wood - Repair/Paint 5 0 $1,650

2155 Site Fencing: Wood - Replace 25 5 $9,350

2169 Shed Enclosures - Replace 25 10 $7,000

2169 Trash Enclosures - Replace 20 10 $10,500

2179 Mailboxes - Replace 25 5 $2,400

2185 Site Pole Lights - Replace 25 0 $2,300

2193 Trees - Trim/Remove 15 0 $9,000

Building Exteriors

2303 Exterior Wall Lights - Replace 25 0 $4,900

2321 Balcony Rails - Paint 5 5 $3,650

2323 Balcony Rails - Replace 30 0 $54,000

2331 Wood Deck - Seal/Repair 5 5 $2,050

2333 Wood Deck - Resurface/Restore 20 0 $23,800

2337 Building Exterior - Seal/Paint 7 0 $56,000

2339 Stucco/EIFS - Seal/Paint/Repair 20 0 $4,500

2353 Wood Siding - Replace 45 0 $791,500

2361 Common Windows - Replace 30 0 $36,000

2361 Mtg Room Windows - Replace 30 15 $4,500

2367 Entry Doors - Replace 30 5 $5,000

2375 Low Slope Roof - Replace 20 0 $1,450

2377 Comp Shingle Roof - Replace 25 14 $90,000

2385 Gutters/Downspouts - Replace 25 19 $4,250

2387 Heat Tape - Replace 10 0 $9,050

2393 Chimney Covers & Flue Caps -Replace 25 14 $10,500

Building Interiors

2401 Interior Surfaces - Repaint 10 3 $12,000

2405 Interior Lights - Replace 25 19 $6,600

2406 Staircases/Handrails - Replace 45 0 $85,000

2411 Carpet - Replace 10 0 $28,250

2421 Ski Lockers - Replace 25 0 $11,400

2429 Rental Unit - Remodel 10 10 $5,000

2429 Rental Unit - Remodel (2017) N/A 0 $25,000

2433 Meeting Room - Remodel 15 0 $3,500

2439 Laundry Room - Remodel 15 0 $1,500

Mechanical

2533 Pumps/Valves - Repair/Replace 3 0 $4,000

Association Reserves Colorado, LLC 2/15/2017 iii

Table 1: Executive Summary 31288-0

Useful Rem. Current

Life Useful Cost

# Component (yrs) Life (yrs) Estimate

2553 Fire Control Panel - Update/Replace 20 0 $7,500

2555 Exit/Emergency Lights - Replace 25 0 $2,850

2561 Boiler - Replace (715K BTU) 25 0 $65,000

2561 Boilers - Replace (1.8 Mill. BTU) 25 0 $131,000

2565 Water Storage Tanks - Replace 25 0 $22,500

2569 Expansion Tank - Replace 30 21 $7,000

Pool

2807 Pool/Patio Furniture - Replace 12 0 $2,900

2809 Pool Deck - Repair - 5% 5 0 $1,300

2815 Pool - Resurface 12 0 $21,500

2821 Coping Stones - Replace 24 0 $12,000

2821 Pool Tile - Replace 24 0 $8,500

2823 Pool Cover - Replace 8 0 $3,250

2827 Pool Heater - Replace 10 0 $9,000

2831 Pool Filter - Replace 20 13 $2,250

2835 Pool Pump - Repair/Replace 5 0 $1,250

55 Total Funded Components

Note 1: a Useful Life of “N/A” means a one-time expense, not expected to repeat. Note 2: Yellow highlighted line items are expected to require attention in the initial year,

green highlighted items are expected to occur within the first five years.

Assoc. 31288-0

Association Reserves Colorado, LLC 2/15/2017 1

Introduction

A Reserve Study is the art and science of anticipating, and preparing for, an association’s major common area repair and replacement expenses. Partially art, because in this field we are making projections about the future. Partially science, because our work is a combination of research and well-defined computations, following consistent National Reserve Study Standard principles.

The foundation of this and every Reserve Study is your Reserve Component List (what you are reserving for). This is because the Reserve Component List defines the scope and schedule of all your anticipated upcoming Reserve projects. Based on that List and your starting balance, we calculate the association’s Reserve Fund Strength (reported in terms of “Percent Funded”). Then we compute a Reserve Funding Plan to provide for the Reserve needs of the association. These form the three results of your Reserve Study.

Reserve contributions are not “for the future”. Reserve contributions are designed to offset the ongoing, daily deterioration of your Reserve assets. Done well, a stable, budgeted Reserve Funding Plan will collect sufficient funds from the owners who enjoyed the use of those assets, so the association is financially prepared for the irregular expenditures scattered through future years when those projects eventually require replacement.

Methodology

For this Reserve Study, we started with a review of your Governing Documents, recent Reserve expenditures, an evaluation of how expenditures are handled (ongoing maintenance vs Reserves), and research into any well-established association precedents.

We performed an on-site inspection to quantify and evaluate your common areas, creating your Reserve Component List from scratch.

http://www.reservestudy.com/full-reserve-study

Assoc. 31288-0


Which Physical Assets are Funded by Reserves?

There is a national-standard four-part test to determine which expenses should appear in your Reserve Component List. First, it must be a common area maintenance responsibility. Second, the component must have a limited life. Third, the remaining life must be predictable (or it by definition is a surprise which cannot be accurately anticipated). Fourth, the component must be above a minimum threshold cost (often between .5% and 1% of an association’s total budget). This limits Reserve Components to major, predictable expenses. Within this framework, it is inappropriate to include lifetime components, unpredictable expenses (such as damage due to fire, flood, or earthquake), and expenses more appropriately handled from the Operational Budget or as an insured loss.

How do we establish Useful Life and Remaining Useful Life estimates?

1) Visual Inspection (observed wear and age) 2) Association Reserves database of experience 3) Client History (install dates & previous life cycle information) 4) Vendor Evaluation and Recommendation

How do we establish Current Repair/Replacement Cost Estimates?

In this order…

1) Actual client cost history, or current proposals 2) Comparison to Association Reserves database of work done at

similar associations 3) Vendor Recommendations 4) Reliable National Industry cost estimating guidebooks

Assoc. 31288-0


How much Reserves are enough?

Reserve adequacy is not measured in cash terms. Reserve adequacy is found when the amount of current Reserve cash is compared to Reserve component deterioration (the needs of the association). Having enough means the association can execute its projects in a timely manner with existing Reserve funds. Not having enough typically creates deferred maintenance or special assessments. Adequacy is measured in a two-step process: 1) Calculate the value of deterioration at

the association (called Fully Funded Balance, or FFB).

2) Compare that to the Reserve Fund Balance, and express as a percentage.

Each year, the value of deterioration at the association changes. When there is more deterioration (as components approach the time they need to be replaced), there should be more cash to offset that deterioration and prepare for the expenditure. Conversely, the value of deterioration shrinks after projects are accomplished. The value of deterioration (the FFB) changes each year, and is a moving but predictable target. There is a high risk of special assessments and deferred maintenance when the Percent Funded is weak, below 30%. Approximately 30% of all associations are in this high risk range. While the 100% point is Ideal (indicating Reserve cash is equal to the value of deterioration), a Reserve Fund in the 70% -130% range is considered strong (low risk of special assessment).

Measuring your Reserves by Percent Funded tells how well prepared your association is for upcoming Reserve expenses. New buyers should be very aware of this important disclosure!

Assoc. 31288-0


How much should we contribute?

According to National Reserve Study Standards, there are four Funding Principles to balance in developing your Reserve Funding Plan. Our first objective is to design a plan that provides you with sufficient cash to perform your Reserve projects on time. Second, a stable contribution is desirable because it keeps these naturally irregular expenses from unsettling the budget.

Reserve contributions that are evenly distributed over current and future owners enable each owner to pay their fair share of the association’s Reserve expenses over the years. And finally, we develop a plan that is fiscally responsible and safe for Boardmembers to recommend to their association. Remember, it is the Board’s job to provide for the ongoing care of the common areas. Boardmembers invite liability exposure when Reserve contributions are inadequate to offset ongoing common area deterioration.

What is our Recommended Funding Goal?

Maintaining the Reserve Fund at a level equal to the value of deterioration is called “Full Funding” (100% Funded). As each asset ages and becomes “used up”, the Reserve Fund grows proportionally. This is simple, responsible, and our recommendation. Evidence shows that associations in the 70-130% range enjoy a low risk of special assessments or deferred maintenance.

Allowing the Reserves to fall close to zero, but not below zero, is called Baseline Funding. Doing so allows the Reserve Fund to drop into the 0-30% range, where there is a high risk of special assessments & deferred maintenance. Since Baseline Funding still provides for the timely execution of all Reserve projects, and only the “margin of safety” is different, Baseline Funding contributions average only 10% - 15% less than Full Funding contributions. Threshold Funding is the title of all other Cash or Percent Funded objectives between Baseline Funding and Full Funding.

Assoc. 31288-0


Site Inspection Notes

During our site visit on November 11, 2016, we started with a brief meeting with the Paul Huntoon, and then started the site inspection beginning with the mechanical. We visually inspected the building, and were able to see a majority of the common areas.

We noticed balcony deck wood deterioration, which may warrant investigation by a specialist.

Please see photo appendix for component details; the basis of our assumptions.

Assoc. 31288-0


Projected Expenses

While this Reserve Study looks forward 30 years, we have no expectation that all these expenses will all take place as anticipated. This Reserve Study needs to be updated annually because we expect the timing of these expenses to shift and the size of these expenses to change. We do feel more certain of the timing and cost of near-term expenses than expenses many years away. Your first five years of projected Reserve expenses total $1,748,836. Adding the next five years, your first ten years of projected Reserve expenses are $1,951,765. Please be aware of your near-term expenses, which we are able to project more accurately than the more distant projections.

The figure below summarizes the projected future expenses at your association as defined by your Reserve Component List. A summary of these expenses are shown in Table 5, while details of the projects that make up these expenses are shown in Table 6.

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2017 2022 2027 2032 2037 2042 2047

Years

Annual Reserve Expenses

Figure 1

Assoc. 31288-0


Reserve Fund Status

The starting point for our financial analysis is your Reserve Fund balance, projected to be $117,000 as-of the start of your Fiscal Year on January 1, 2017. As of January 1, 2017, your Fully Funded Balance is computed to be $1,856,848 (see Table 3). This figure represents the deteriorated value of your common area components. Comparing your Reserve Balance to your Fully Funded Balance indicates your Reserves are 6% Funded. Across the country, approx 58% of associations in this range experience special assessments or deferred maintenance.

Recommended Funding Plan

Based on your current Percent Funded and your near-term and long-term Reserve needs, we are recommending budgeted contributions of $5,265/month this Fiscal Year along with a one-time special assessment. The overall 30-yr plan, in perspective, is shown below. This same information is shown numerically in both Table 5 and Table 6.

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2017 2022 2027 2032 2037 2042 2047

Years

Annual Reserve FundingRecommended

Alternate (Minimum)

Current Budget

Figure 2

http://www.reservestudy.com/what-exactly-is-percent-funded

Assoc. 31288-0


The following chart shows your Reserve balance under our recommended Full Funding Plan, an alternate Baseline Funding Plan, and at your current budgeted contribution rate, compared to your always-changing Fully Funded Balance target.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2017 2022 2027 2032 2037 2042 2047

Years

30-Yr Cash FlowTarget Fully Funded Balance

Recommended Funding Plan

Alternate (Minimum)

Current Budget

Figure 3

This figure shows this same information, plotted on a Percent Funded scale.

0%

20%

40%

60%

80%

100%

120%

2017 2022 2027 2032 2037 2042 2047Years

Percent FundedRecommended Funding Plan

Alternate (Minimum) Funding Plan

Current Budget

Figure 4

http://www.reservestudy.com/what-exactly-is-percent-funded

Assoc. 31288-0


Table Descriptions

The tabular information in this Report is broken down into six tables.

Table 1 is a summary of your Reserve Components (your Reserve Component List), the information found in Table 2.

Table 2 is your Reserve Component List, which forms the foundation of this Reserve Study. This table represents the information from which all other tables are derived.

Table 3 shows the calculation of your Fully Funded Balance, the measure of your current Reserve component deterioration. For each component, the Fully Funded Balance is the fraction of life used up multiplied by its estimated Current Replacement Cost.

Table 4 shows the significance of each component to Reserve needs of the association, helping you see which components have more (or less) influence than others on your total Reserve contribution rate. The deterioration cost/yr of each component is calculated by dividing Current Replacement Cost by Useful Life, then that component’s percentage of the total is displayed.

Table 5: This table provides a one-page 30-year summary of the cash flowing into and out of the Reserve Fund, with a display of the Fully Funded Balance, Percent Funded, and special assessment risk for each year.

Table 6: This table shows the cash flow detail for the next 30 years. This table makes it possible to see which components are projected to require repair or replacement each year, and the size of those individual expenses.


Table 2: Reserve Component List Detail 31288-0

Rem. Useful Useful [ --- Current Cost Estimate --- ]

# Component Quantity Life Life Best Case Worst Case

Sites & Grounds

2117 Hill Erosion - Repair (1) System N/A 0 $250,000 $250,000

2121 Pavers - Replace ~ 150 GSF 30 0 $3,000 $3,500

2131 Asphalt - Seal/Repair ~ 12,200 GSF 4 0 $4,200 $5,400

2133 Asphalt - Resurface ~ 12,200 GSF 25 7 $60,000 $72,000

2134 Bridge Rails - Replace ~ 70 LF 30 0 $20,000 $22,000

2136 Bridge - Stain/Repair ~ 200 GSF 5 0 $1,300 $1,800

2139 Metal/Wood Treads - Repair/Replace ~ (21) Treads,12 LF Rails 15 0 $3,000 $5,000

2151 Site Fencing: Wood - Repair/Paint ~ 220 LF 5 0 $1,500 $1,800

2155 Site Fencing: Wood - Replace ~ 220 LF 25 5 $7,700 $11,000

2169 Shed Enclosures - Replace ~ (2) 10x10 Sheds 25 10 $6,000 $8,000

2169 Trash Enclosures - Replace ~ (1) 6x12 Enclosure 20 10 $9,000 $12,000

2179 Mailboxes - Replace ~ (2) CBUs 25 5 $2,000 $2,800

2185 Site Pole Lights - Replace ~ (2) Fixtures 25 0 $2,100 $2,500

2193 Trees - Trim/Remove Numerous Trees 15 0 $9,000 $9,000

Building Exteriors

2303 Exterior Wall Lights - Replace ~ (28) Fixtures 25 0 $4,200 $5,600

2321 Balcony Rails - Paint ~ 300 LF 5 5 $3,100 $4,200

2323 Balcony Rails - Replace ~ 300 LF 30 0 $33,000 $75,000

2331 Wood Deck - Seal/Repair ~ 1,300 GSF 5 5 $1,600 $2,500

2333 Wood Deck - Resurface/Restore ~ 1,300 GSF 20 0 $19,000 $28,600

2337 Building Exterior - Seal/Paint ~ 16,000 GSF 7 0 $48,000 $64,000

2339 Stucco/EIFS - Seal/Paint/Repair ~ 1,300 GSF 20 0 $4,000 $5,000

2353 Wood Siding - Replace ~ 16,000 GSF 45 0 $630,000 $953,000

2361 Common Windows - Replace ~ (16) Windows 30 0 $32,000 $40,000

2361 Mtg Room Windows - Replace ~ (2) 4x3 Windows 30 15 $4,000 $5,000

2367 Entry Doors - Replace ~ (3) Doors 30 5 $4,000 $6,000

2375 Low Slope Roof - Replace ~ 240 GSF 20 0 $1,200 $1,700

2377 Comp Shingle Roof - Replace ~ 12,000 GSF 25 14 $72,000 $108,000

2385 Gutters/Downspouts - Replace ~ 530 LF 25 19 $3,200 $5,300

2387 Heat Tape - Replace ~ 530 LF 10 0 $7,500 $10,600

2393 Chimney Covers & Flue Caps -Replace ~ (6) Covers,~ (24) Caps 25 14 $9,000 $12,000

Building Interiors

2401 Interior Surfaces - Repaint ~ 8,000 GSF 10 3 $10,000 $14,000

2405 Interior Lights - Replace ~ (48) Fixtures 25 19 $6,000 $7,200

2406 Staircases/Handrails - Replace (1) Stairwell 45 0 $80,000 $90,000

2411 Carpet - Replace ~ 482 GSY 10 0 $25,000 $31,500

2421 Ski Lockers - Replace ~ (26) Lockers 25 0 $7,800 $15,000

2429 Rental Unit - Remodel (1) Rental Unit 10 10 $4,000 $6,000

2429 Rental Unit - Remodel (2017) (1) Rental Unit N/A 0 $25,000 $25,000

2433 Meeting Room - Remodel (1) 25x15 Room 15 0 $3,000 $4,000

2439 Laundry Room - Remodel (1) 12x10 Room 15 0 $1,000 $2,000


Table 2: Reserve Component List Detail 31288-0

Rem. Useful Useful [ --- Current Cost Estimate --- ]

# Component Quantity Life Life Best Case Worst Case

Mechanical

2533 Pumps/Valves - Repair/Replace ~ (4) Pumps 3 0 $3,000 $5,000

2553 Fire Control Panel - Update/Replace (1) Panel 20 0 $6,000 $9,000

2555 Exit/Emergency Lights - Replace ~ (18) Fixtures 25 0 $2,500 $3,200

2561 Boiler - Replace (715K BTU) (1) 715K BTU Boiler 25 0 $60,000 $70,000

2561 Boilers - Replace (1.8 Mill. BTU) (2) 1,800,000 BTU Boilers 25 0 $122,000 $140,000

2565 Water Storage Tanks - Replace (2) 120 Gallon Tanks 25 0 $20,000 $25,000

2569 Expansion Tank - Replace ~ (2) Tanks 30 21 $6,000 $8,000

Pool

2807 Pool/Patio Furniture - Replace ~ (11) Pieces 12 0 $2,500 $3,300

2809 Pool Deck - Repair - 5% ~ 1,900 GSF 5 0 $1,000 $1,600

2815 Pool - Resurface (1) 45x20 Pool 12 0 $20,000 $23,000

2821 Coping Stones - Replace ~ 130 LF 24 0 $11,000 $13,000

2821 Pool Tile - Replace ~ 130 LF 24 0 $7,000 $10,000

2823 Pool Cover - Replace ~ 900 GSF Cover 8 0 $2,500 $4,000

2827 Pool Heater - Replace (1) 399k-BTU Heater 10 0 $8,000 $10,000

2831 Pool Filter - Replace (1) Filter 20 13 $2,000 $2,500

2835 Pool Pump - Repair/Replace ~ (1) Pump 5 0 $1,000 $1,500

55 Total Funded Components


Table 3: Fully Funded Balance 31288-0

Current Fully

Cost Effective Useful Funded

# Component Estimate X Age / Life = Balance

Sites & Grounds

2117 Hill Erosion - Repair $250,000 X 0 / 0 = $250,000

2121 Pavers - Replace $3,250 X 30 / 30 = $3,250

2131 Asphalt - Seal/Repair $4,800 X 4 / 4 = $4,800

2133 Asphalt - Resurface $66,000 X 18 / 25 = $47,520

2134 Bridge Rails - Replace $21,000 X 30 / 30 = $21,000

2136 Bridge - Stain/Repair $1,550 X 5 / 5 = $1,550

2139 Metal/Wood Treads - Repair/Replace $4,000 X 15 / 15 = $4,000

2151 Site Fencing: Wood - Repair/Paint $1,650 X 5 / 5 = $1,650

2155 Site Fencing: Wood - Replace $9,350 X 20 / 25 = $7,480

2169 Shed Enclosures - Replace $7,000 X 15 / 25 = $4,200

2169 Trash Enclosures - Replace $10,500 X 10 / 20 = $5,250

2179 Mailboxes - Replace $2,400 X 20 / 25 = $1,920

2185 Site Pole Lights - Replace $2,300 X 25 / 25 = $2,300

2193 Trees - Trim/Remove $9,000 X 15 / 15 = $9,000

Building Exteriors

2303 Exterior Wall Lights - Replace $4,900 X 25 / 25 = $4,900

2321 Balcony Rails - Paint $3,650 X 0 / 5 = $0

2323 Balcony Rails - Replace $54,000 X 30 / 30 = $54,000

2331 Wood Deck - Seal/Repair $2,050 X 0 / 5 = $0

2333 Wood Deck - Resurface/Restore $23,800 X 20 / 20 = $23,800

2337 Building Exterior - Seal/Paint $56,000 X 7 / 7 = $56,000

2339 Stucco/EIFS - Seal/Paint/Repair $4,500 X 20 / 20 = $4,500

2353 Wood Siding - Replace $791,500 X 45 / 45 = $791,500

2361 Common Windows - Replace $36,000 X 30 / 30 = $36,000

2361 Mtg Room Windows - Replace $4,500 X 15 / 30 = $2,250

2367 Entry Doors - Replace $5,000 X 25 / 30 = $4,167

2375 Low Slope Roof - Replace $1,450 X 20 / 20 = $1,450

2377 Comp Shingle Roof - Replace $90,000 X 11 / 25 = $39,600

2385 Gutters/Downspouts - Replace $4,250 X 6 / 25 = $1,020

2387 Heat Tape - Replace $9,050 X 10 / 10 = $9,050

2393 Chimney Covers & Flue Caps -Replace $10,500 X 11 / 25 = $4,620

Building Interiors

2401 Interior Surfaces - Repaint $12,000 X 7 / 10 = $8,400

2405 Interior Lights - Replace $6,600 X 6 / 25 = $1,584

2406 Staircases/Handrails - Replace $85,000 X 45 / 45 = $85,000

2411 Carpet - Replace $28,250 X 10 / 10 = $28,250

2421 Ski Lockers - Replace $11,400 X 25 / 25 = $11,400

2429 Rental Unit - Remodel $5,000 X 0 / 10 = $0

2429 Rental Unit - Remodel (2017) $25,000 X 0 / 0 = $25,000

2433 Meeting Room - Remodel $3,500 X 15 / 15 = $3,500

2439 Laundry Room - Remodel $1,500 X 15 / 15 = $1,500


Table 3: Fully Funded Balance 31288-0

Current Fully

Cost Effective Useful Funded

# Component Estimate X Age / Life = Balance

Mechanical

2533 Pumps/Valves - Repair/Replace $4,000 X 3 / 3 = $4,000

2553 Fire Control Panel - Update/Replace $7,500 X 20 / 20 = $7,500

2555 Exit/Emergency Lights - Replace $2,850 X 25 / 25 = $2,850

2561 Boiler - Replace (715K BTU) $65,000 X 25 / 25 = $65,000

2561 Boilers - Replace (1.8 Mill. BTU) $131,000 X 25 / 25 = $131,000

2565 Water Storage Tanks - Replace $22,500 X 25 / 25 = $22,500

2569 Expansion Tank - Replace $7,000 X 9 / 30 = $2,100

Pool

2807 Pool/Patio Furniture - Replace $2,900 X 12 / 12 = $2,900

2809 Pool Deck - Repair - 5% $1,300 X 5 / 5 = $1,300

2815 Pool - Resurface $21,500 X 12 / 12 = $21,500

2821 Coping Stones - Replace $12,000 X 24 / 24 = $12,000

2821 Pool Tile - Replace $8,500 X 24 / 24 = $8,500

2823 Pool Cover - Replace $3,250 X 8 / 8 = $3,250

2827 Pool Heater - Replace $9,000 X 10 / 10 = $9,000

2831 Pool Filter - Replace $2,250 X 7 / 20 = $788

2835 Pool Pump - Repair/Replace $1,250 X 5 / 5 = $1,250

$1,856,848


Table 4: Component Significance 31288-0

Current

Useful Cost Deterioration Deterioration

# Component Life Estimate Cost/yr Significance

Sites & Grounds

2117 Hill Erosion - Repair N/A $250,000 $0 0.0%

2121 Pavers - Replace 30 $3,250 $108 0.2%

2131 Asphalt - Seal/Repair 4 $4,800 $1,200 1.8%

2133 Asphalt - Resurface 25 $66,000 $2,640 3.9%

2134 Bridge Rails - Replace 30 $21,000 $700 1.0%

2136 Bridge - Stain/Repair 5 $1,550 $310 0.5%

2139 Metal/Wood Treads - Repair/Replace 15 $4,000 $267 0.4%

2151 Site Fencing: Wood - Repair/Paint 5 $1,650 $330 0.5%

2155 Site Fencing: Wood - Replace 25 $9,350 $374 0.6%

2169 Shed Enclosures - Replace 25 $7,000 $280 0.4%

2169 Trash Enclosures - Replace 20 $10,500 $525 0.8%

2179 Mailboxes - Replace 25 $2,400 $96 0.1%

2185 Site Pole Lights - Replace 25 $2,300 $92 0.1%

2193 Trees - Trim/Remove 15 $9,000 $600 0.9%

Building Exteriors

2303 Exterior Wall Lights - Replace 25 $4,900 $196 0.3%

2321 Balcony Rails - Paint 5 $3,650 $730 1.1%

2323 Balcony Rails - Replace 30 $54,000 $1,800 2.7%

2331 Wood Deck - Seal/Repair 5 $2,050 $410 0.6%

2333 Wood Deck - Resurface/Restore 20 $23,800 $1,190 1.8%

2337 Building Exterior - Seal/Paint 7 $56,000 $8,000 11.9%

2339 Stucco/EIFS - Seal/Paint/Repair 20 $4,500 $225 0.3%

2353 Wood Siding - Replace 45 $791,500 $17,589 26.1%

2361 Common Windows - Replace 30 $36,000 $1,200 1.8%

2361 Mtg Room Windows - Replace 30 $4,500 $150 0.2%

2367 Entry Doors - Replace 30 $5,000 $167 0.2%

2375 Low Slope Roof - Replace 20 $1,450 $73 0.1%

2377 Comp Shingle Roof - Replace 25 $90,000 $3,600 5.3%

2385 Gutters/Downspouts - Replace 25 $4,250 $170 0.3%

2387 Heat Tape - Replace 10 $9,050 $905 1.3%

2393 Chimney Covers & Flue Caps -Replace 25 $10,500 $420 0.6%

Building Interiors

2401 Interior Surfaces - Repaint 10 $12,000 $1,200 1.8%

2405 Interior Lights - Replace 25 $6,600 $264 0.4%

2406 Staircases/Handrails - Replace 45 $85,000 $1,889 2.8%

2411 Carpet - Replace 10 $28,250 $2,825 4.2%

2421 Ski Lockers - Replace 25 $11,400 $456 0.7%

2429 Rental Unit - Remodel 10 $5,000 $500 0.7%

2429 Rental Unit - Remodel (2017) N/A $25,000 $0 0.0%

2433 Meeting Room - Remodel 15 $3,500 $233 0.3%

2439 Laundry Room - Remodel 15 $1,500 $100 0.1%


Table 4: Component Significance 31288-0

Current

Useful Cost Deterioration Deterioration

# Component Life Estimate Cost/yr Significance

Mechanical

2533 Pumps/Valves - Repair/Replace 3 $4,000 $1,333 2.0%

2553 Fire Control Panel - Update/Replace 20 $7,500 $375 0.6%

2555 Exit/Emergency Lights - Replace 25 $2,850 $114 0.2%

2561 Boiler - Replace (715K BTU) 25 $65,000 $2,600 3.9%

2561 Boilers - Replace (1.8 Mill. BTU) 25 $131,000 $5,240 7.8%

2565 Water Storage Tanks - Replace 25 $22,500 $900 1.3%

2569 Expansion Tank - Replace 30 $7,000 $233 0.3%

Pool

2807 Pool/Patio Furniture - Replace 12 $2,900 $242 0.4%

2809 Pool Deck - Repair - 5% 5 $1,300 $260 0.4%

2815 Pool - Resurface 12 $21,500 $1,792 2.7%

2821 Coping Stones - Replace 24 $12,000 $500 0.7%

2821 Pool Tile - Replace 24 $8,500 $354 0.5%

2823 Pool Cover - Replace 8 $3,250 $406 0.6%

2827 Pool Heater - Replace 10 $9,000 $900 1.3%

2831 Pool Filter - Replace 20 $2,250 $113 0.2%

2835 Pool Pump - Repair/Replace 5 $1,250 $250 0.4%

55 Total Funded Components $67,425 100.0%


Table 5: 30-Year Reserve Plan Summary 31288-0

Fiscal Year Start: 01/01/17 Interest: 1.0% Inflation: 3.0%

Reserve Fund Strength Calculations Projected Reserve Balance Changes

(All values as of Fiscal Year Start Date)

Starting Fully Special Loans or

Reserve Funded Percent Assmt Reserve Special Interest Reserve

Year Balance Balance Funded Risk Contribs. Assmts Income Expenses

2017 $117,000 $1,856,848 6.3% High $63,180 $1,620,000

$961 $1,725,950

2018 $75,191 $204,273 36.8% Med $66,339 $0 $1,089 $0

2019 $142,618 $281,933 50.6% Med $69,656 $0 $1,783 $0

2020 $214,057 $364,068 58.8% Med $73,139 $0 $2,430 $17,484

2021 $272,142 $432,870 62.9% Med $76,796 $0 $3,093 $5,402

2022 $346,628 $518,455 66.9% Med $80,635 $0 $3,723 $32,692

2023 $398,295 $580,846 68.6% Med $84,667 $0 $4,403 $4,776

2024 $482,588 $676,276 71.4% Low $88,901 $0 $4,541 $150,045

2025 $425,985 $627,431 67.9% Med $93,346 $0 $4,697 $10,197

2026 $513,830 $723,725 71.0% Low $98,013 $0 $5,628 $5,219

2027 $612,252 $830,675 73.7% Low $102,914 $0 $6,126 $107,849

2028 $613,442 $837,843 73.2% Low $108,059 $0 $6,705 $0

2029 $728,207 $959,110 75.9% Low $113,462 $0 $7,648 $47,335

2030 $801,981 $1,038,144 77.3% Low $119,135 $0 $8,550 $20,927

2031 $908,740 $1,149,721 79.0% Low $125,092 $0 $8,568 $236,720

2032 $805,680 $1,045,437 77.1% Low $131,347 $0 $8,457 $59,125

2033 $886,359 $1,124,099 78.9% Low $137,914 $0 $9,532 $12,918

2034 $1,020,887 $1,255,960 81.3% Low $144,810 $0 $10,983 $0

2035 $1,176,680 $1,408,426 83.5% Low $152,050 $0 $12,550 $6,810

2036 $1,334,471 $1,561,895 85.4% Low $159,653 $0 $14,112 $19,026

2037 $1,489,211 $1,710,933 87.0% Low $167,635 $0 $14,852 $189,280

2038 $1,482,417 $1,692,733 87.6% Low $176,017 $0 $15,150 $124,640

2039 $1,548,945 $1,744,329 88.8% Low $184,818 $0 $16,489 $0

2040 $1,750,252 $1,929,729 90.7% Low $194,059 $0 $18,439 $23,683

2041 $1,939,067 $2,100,289 92.3% Low $203,762 $0 $19,922 $115,768

2042 $2,046,982 $2,185,230 93.7% Low $213,950 $0 $18,995 $526,376

2043 $1,753,551 $1,854,028 94.6% Low $224,647 $0 $18,745 $0

2044 $1,996,943 $2,059,420 97.0% Low $235,880 $0 $21,201 $8,885

2045 $2,245,139 $2,266,315 99.1% Low $247,674 $0 $23,100 $139,106

2046 $2,376,807 $2,349,917 101.1% Low $260,057 $0 $25,184 $0


Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) 31288-0 Fiscal Year 2017 2018 2019 2020 2021

Starting Reserve Balance $117,000 $75,191 $142,618 $214,057 $272,142

Annual Reserve Contribution $63,180 $66,339 $69,656 $73,139 $76,796

Recommended Special Assessments $1,620,000 $0 $0 $0 $0

Interest Earnings $961 $1,089 $1,783 $2,430 $3,093

Total Income $1,801,141 $142,618 $214,057 $289,625 $352,030

# Component

Sites & Grounds

2117 Hill Erosion - Repair $250,000 $0 $0 $0 $0

2121 Pavers - Replace $3,250 $0 $0 $0 $0

2131 Asphalt - Seal/Repair $4,800 $0 $0 $0 $5,402

2133 Asphalt - Resurface $0 $0 $0 $0 $0

2134 Bridge Rails - Replace $21,000 $0 $0 $0 $0

2136 Bridge - Stain/Repair $1,550 $0 $0 $0 $0

2139 Metal/Wood Treads - Repair/Replace $4,000 $0 $0 $0 $0

2151 Site Fencing: Wood - Repair/Paint $1,650 $0 $0 $0 $0

2155 Site Fencing: Wood - Replace $0 $0 $0 $0 $0

2169 Shed Enclosures - Replace $0 $0 $0 $0 $0

2169 Trash Enclosures - Replace $0 $0 $0 $0 $0

2179 Mailboxes - Replace $0 $0 $0 $0 $0

2185 Site Pole Lights - Replace $2,300 $0 $0 $0 $0

2193 Trees - Trim/Remove $9,000 $0 $0 $0 $0

Building Exteriors

2303 Exterior Wall Lights - Replace $4,900 $0 $0 $0 $0

2321 Balcony Rails - Paint $0 $0 $0 $0 $0

2323 Balcony Rails - Replace $54,000 $0 $0 $0 $0

2331 Wood Deck - Seal/Repair $0 $0 $0 $0 $0

2333 Wood Deck - Resurface/Restore $23,800 $0 $0 $0 $0

2337 Building Exterior - Seal/Paint $56,000 $0 $0 $0 $0

2339 Stucco/EIFS - Seal/Paint/Repair $4,500 $0 $0 $0 $0

2353 Wood Siding - Replace $791,500 $0 $0 $0 $0

2361 Common Windows - Replace $36,000 $0 $0 $0 $0

2361 Mtg Room Windows - Replace $0 $0 $0 $0 $0

2367 Entry Doors - Replace $0 $0 $0 $0 $0

2375 Low Slope Roof - Replace $1,450 $0 $0 $0 $0

2377 Comp Shingle Roof - Replace $0 $0 $0 $0 $0

2385 Gutters/Downspouts - Replace $0 $0 $0 $0 $0

2387 Heat Tape - Replace $9,050 $0 $0 $0 $0

2393 Chimney Covers & Flue Caps -Replace $0 $0 $0 $0 $0

Building Interiors

2401 Interior Surfaces - Repaint $0 $0 $0 $13,113 $0

2405 Interior Lights - Replace $0 $0 $0 $0 $0

2406 Staircases/Handrails - Replace $85,000 $0 $0 $0 $0

2411 Carpet - Replace $28,250 $0 $0 $0 $0

2421 Ski Lockers - Replace $11,400 $0 $0 $0 $0



2429 Rental Unit - Remodel $0 $0 $0 $0 $0

2429 Rental Unit - Remodel (2017) $25,000 $0 $0 $0 $0

2433 Meeting Room - Remodel $3,500 $0 $0 $0 $0

2439 Laundry Room - Remodel $1,500 $0 $0 $0 $0

Mechanical

2533 Pumps/Valves - Repair/Replace $4,000 $0 $0 $4,371 $0

2553 Fire Control Panel - Update/Replace $7,500 $0 $0 $0 $0

2555 Exit/Emergency Lights - Replace $2,850 $0 $0 $0 $0

2561 Boiler - Replace (715K BTU) $65,000 $0 $0 $0 $0

2561 Boilers - Replace (1.8 Mill. BTU) $131,000 $0 $0 $0 $0

2565 Water Storage Tanks - Replace $22,500 $0 $0 $0 $0

2569 Expansion Tank - Replace $0 $0 $0 $0 $0

Pool

2807 Pool/Patio Furniture - Replace $2,900 $0 $0 $0 $0

2809 Pool Deck - Repair - 5% $1,300 $0 $0 $0 $0

2815 Pool - Resurface $21,500 $0 $0 $0 $0

2821 Coping Stones - Replace $12,000 $0 $0 $0 $0

2821 Pool Tile - Replace $8,500 $0 $0 $0 $0

2823 Pool Cover - Replace $3,250 $0 $0 $0 $0

2827 Pool Heater - Replace $9,000 $0 $0 $0 $0

2831 Pool Filter - Replace $0 $0 $0 $0 $0

2835 Pool Pump - Repair/Replace $1,250 $0 $0 $0 $0

Total Expenses $1,725,950 $0 $0 $17,484 $5,402

Ending Reserve Balance: $75,191 $142,618 $214,057 $272,142 $346,628





Recommended Special Assessments $0 $0 $0 $0 $0

Interest Earnings $3,723 $4,403 $4,541 $4,697 $5,628

Total Income $430,986 $487,364 $576,030 $524,028 $617,471

# Component

Sites & Grounds

2117 Hill Erosion - Repair $0 $0 $0 $0 $0

2121 Pavers - Replace $0 $0 $0 $0 $0

2131 Asphalt - Seal/Repair $0 $0 $0 $6,080 $0

2133 Asphalt - Resurface $0 $0 $81,172 $0 $0

2134 Bridge Rails - Replace $0 $0 $0 $0 $0


2139 Metal/Wood Treads - Repair/Replace $0 $0 $0 $0 $0


2155 Site Fencing: Wood - Replace $10,839 $0 $0 $0 $0



2179 Mailboxes - Replace $2,782 $0 $0 $0 $0

2185 Site Pole Lights - Replace $0 $0 $0 $0 $0

2193 Trees - Trim/Remove $0 $0 $0 $0 $0

Building Exteriors

2303 Exterior Wall Lights - Replace $0 $0 $0 $0 $0

2321 Balcony Rails - Paint $4,231 $0 $0 $0 $0

2323 Balcony Rails - Replace $0 $0 $0 $0 $0

2331 Wood Deck - Seal/Repair $2,377 $0 $0 $0 $0

2333 Wood Deck - Resurface/Restore $0 $0 $0 $0 $0

2337 Building Exterior - Seal/Paint $0 $0 $68,873 $0 $0

2339 Stucco/EIFS - Seal/Paint/Repair $0 $0 $0 $0 $0

2353 Wood Siding - Replace $0 $0 $0 $0 $0

2361 Common Windows - Replace $0 $0 $0 $0 $0


2367 Entry Doors - Replace $5,796 $0 $0 $0 $0

2375 Low Slope Roof - Replace $0 $0 $0 $0 $0



2387 Heat Tape - Replace $0 $0 $0 $0 $0


Building Interiors

2401 Interior Surfaces - Repaint $0 $0 $0 $0 $0


2406 Staircases/Handrails - Replace $0 $0 $0 $0 $0

2411 Carpet - Replace $0 $0 $0 $0 $0

2421 Ski Lockers - Replace $0 $0 $0 $0 $0




2429 Rental Unit - Remodel (2017) $0 $0 $0 $0 $0

2433 Meeting Room - Remodel $0 $0 $0 $0 $0

2439 Laundry Room - Remodel $0 $0 $0 $0 $0

Mechanical

2533 Pumps/Valves - Repair/Replace $0 $4,776 $0 $0 $5,219

2553 Fire Control Panel - Update/Replace $0 $0 $0 $0 $0

2555 Exit/Emergency Lights - Replace $0 $0 $0 $0 $0

2561 Boiler - Replace (715K BTU) $0 $0 $0 $0 $0

2561 Boilers - Replace (1.8 Mill. BTU) $0 $0 $0 $0 $0

2565 Water Storage Tanks - Replace $0 $0 $0 $0 $0


Pool

2807 Pool/Patio Furniture - Replace $0 $0 $0 $0 $0

2809 Pool Deck - Repair - 5% $1,507 $0 $0 $0 $0

2815 Pool - Resurface $0 $0 $0 $0 $0

2821 Coping Stones - Replace $0 $0 $0 $0 $0

2821 Pool Tile - Replace $0 $0 $0 $0 $0

2823 Pool Cover - Replace $0 $0 $0 $4,117 $0

2827 Pool Heater - Replace $0 $0 $0 $0 $0



Total Expenses $32,692 $4,776 $150,045 $10,197 $5,219








Total Income $721,292 $728,207 $849,317 $929,667 $1,042,401

# Component

Sites & Grounds


2121 Pavers - Replace $0 $0 $0 $0 $0

2131 Asphalt - Seal/Repair $0 $0 $6,844 $0 $0







2169 Shed Enclosures - Replace $9,407 $0 $0 $0 $0

2169 Trash Enclosures - Replace $14,111 $0 $0 $0 $0




Building Exteriors






2337 Building Exterior - Seal/Paint $0 $0 $0 $0 $84,705







2377 Comp Shingle Roof - Replace $0 $0 $0 $0 $136,133



2393 Chimney Covers & Flue Caps -Replace $0 $0 $0 $0 $15,882

Building Interiors




2411 Carpet - Replace $37,966 $0 $0 $0 $0




2429 Rental Unit - Remodel $6,720 $0 $0 $0 $0




Mechanical

2533 Pumps/Valves - Repair/Replace $0 $0 $5,703 $0 $0







Pool

2807 Pool/Patio Furniture - Replace $0 $0 $4,135 $0 $0

2809 Pool Deck - Repair - 5% $1,747 $0 $0 $0 $0

2815 Pool - Resurface $0 $0 $30,654 $0 $0



2823 Pool Cover - Replace $0 $0 $0 $0 $0


2831 Pool Filter - Replace $0 $0 $0 $3,304 $0


Total Expenses $107,849 $0 $47,335 $20,927 $236,720




Starting Reserve Balance $805,680 $886,359 $1,020,887 $1,176,680 $1,334,471




Total Income $945,484 $1,033,805 $1,176,680 $1,341,281 $1,508,236

# Component

Sites & Grounds


2121 Pavers - Replace $0 $0 $0 $0 $0

2131 Asphalt - Seal/Repair $0 $7,703 $0 $0 $0




2139 Metal/Wood Treads - Repair/Replace $6,232 $0 $0 $0 $0







2193 Trees - Trim/Remove $14,022 $0 $0 $0 $0

Building Exteriors






2337 Building Exterior - Seal/Paint $0 $0 $0 $0 $0




2361 Mtg Room Windows - Replace $7,011 $0 $0 $0 $0




2385 Gutters/Downspouts - Replace $0 $0 $0 $0 $7,452



Building Interiors


2405 Interior Lights - Replace $0 $0 $0 $0 $11,573


2411 Carpet - Replace $0 $0 $0 $0 $0






2433 Meeting Room - Remodel $5,453 $0 $0 $0 $0

2439 Laundry Room - Remodel $2,337 $0 $0 $0 $0

Mechanical

2533 Pumps/Valves - Repair/Replace $6,232 $0 $0 $6,810 $0







Pool


2809 Pool Deck - Repair - 5% $2,025 $0 $0 $0 $0

2815 Pool - Resurface $0 $0 $0 $0 $0



2823 Pool Cover - Replace $0 $5,215 $0 $0 $0




Total Expenses $59,125 $12,918 $0 $6,810 $19,026

Ending Reserve Balance: $886,359 $1,020,887 $1,176,680 $1,334,471 $1,489,211



Starting Reserve Balance $1,489,211 $1,482,417 $1,548,945 $1,750,252 $1,939,067




Total Income $1,671,698 $1,673,585 $1,750,252 $1,962,750 $2,162,750

# Component

Sites & Grounds


2121 Pavers - Replace $0 $0 $0 $0 $0

2131 Asphalt - Seal/Repair $8,669 $0 $0 $0 $9,757












Building Exteriors





2333 Wood Deck - Resurface/Restore $42,985 $0 $0 $0 $0

2337 Building Exterior - Seal/Paint $0 $104,176 $0 $0 $0

2339 Stucco/EIFS - Seal/Paint/Repair $8,128 $0 $0 $0 $0





2375 Low Slope Roof - Replace $2,619 $0 $0 $0 $0





Building Interiors




2411 Carpet - Replace $51,023 $0 $0 $0 $0




2429 Rental Unit - Remodel $9,031 $0 $0 $0 $0




Mechanical

2533 Pumps/Valves - Repair/Replace $0 $7,441 $0 $0 $8,131

2553 Fire Control Panel - Update/Replace $13,546 $0 $0 $0 $0





2569 Expansion Tank - Replace $0 $13,022 $0 $0 $0

Pool

2807 Pool/Patio Furniture - Replace $0 $0 $0 $0 $5,895

2809 Pool Deck - Repair - 5% $2,348 $0 $0 $0 $0

2815 Pool - Resurface $0 $0 $0 $0 $43,705

2821 Coping Stones - Replace $0 $0 $0 $0 $24,394

2821 Pool Tile - Replace $0 $0 $0 $0 $17,279

2823 Pool Cover - Replace $0 $0 $0 $0 $6,607




Total Expenses $189,280 $124,640 $0 $23,683 $115,768

Ending Reserve Balance: $1,482,417 $1,548,945 $1,750,252 $1,939,067 $2,046,982



Starting Reserve Balance $2,046,982 $1,753,551 $1,996,943 $2,245,139 $2,376,807




Total Income $2,279,927 $1,996,943 $2,254,024 $2,515,913 $2,662,048

# Component

Sites & Grounds


2121 Pavers - Replace $0 $0 $0 $0 $0

2131 Asphalt - Seal/Repair $0 $0 $0 $10,982 $0










2185 Site Pole Lights - Replace $4,816 $0 $0 $0 $0


Building Exteriors

2303 Exterior Wall Lights - Replace $10,260 $0 $0 $0 $0





2337 Building Exterior - Seal/Paint $0 $0 $0 $128,124 $0











Building Interiors




2411 Carpet - Replace $0 $0 $0 $0 $0

2421 Ski Lockers - Replace $23,869 $0 $0 $0 $0







Mechanical

2533 Pumps/Valves - Repair/Replace $0 $0 $8,885 $0 $0


2555 Exit/Emergency Lights - Replace $5,967 $0 $0 $0 $0

2561 Boiler - Replace (715K BTU) $136,096 $0 $0 $0 $0

2561 Boilers - Replace (1.8 Mill. BTU) $274,285 $0 $0 $0 $0

2565 Water Storage Tanks - Replace $47,110 $0 $0 $0 $0


Pool


2809 Pool Deck - Repair - 5% $2,722 $0 $0 $0 $0

2815 Pool - Resurface $0 $0 $0 $0 $0



2823 Pool Cover - Replace $0 $0 $0 $0 $0




Total Expenses $526,376 $0 $8,885 $139,106 $0

Ending Reserve Balance: $1,753,551 $1,996,943 $2,245,139 $2,376,807 $2,662,048

Assoc. 31288-0


Accuracy, Limitations, and Disclosures

The reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair or replacement of a reserve component.

Because we have no control over future events, we do not expect that all the events we anticipate will occur as planned. We expect that inflationary trends will continue, and we expect Reserve funds to continue to earn interest, so we believe that reasonable estimates for these figures are much more accurate than ignoring these economic realities. We can control measurements, which we attempt to establish within 5% accuracy through a combination of on-site measurements, drawings, and satellite imagery. The starting Reserve Balance and interest rate earned on deposited Reserve funds that you provided to us were considered reliable and were not confirmed independently. We have considered the association’s representation of current and historical Reserve projects reliable, and we have considered the representations made by its vendors and suppliers to also be accurate and reliable. Component Useful Life, Remaining Useful Life, and Current Cost estimates assume a stable economic environment and lack of natural disasters.

Because the physical condition of your components, the association’s Reserve balance, the economic environment, and legislative environment change each year, this Reserve Study is by nature a “one-year” document. Because a long-term perspective improves the accuracy of near-term planning, this Report projects expenses for the next 30 years. It is our recommendation and that of the Financial Accounting Standards Board (FASB) that your Reserve Study be updated each year as part of the annual budget process.

Association Reserves CO, LLC and its employees have no ownership, management, or other business relationships with the client other than this Reserve Study engagement. Bryan Farley R.S., company president, is a credentialed Reserve Specialist (#260). All work done by Association Reserves CO, LLC is performed under his Responsible Charge. There are no material issues to our knowledge that have not been disclosed to the client that would cause a distortion of the association’s situation.

Component quantities indicated in this Report were developed by Association Reserves unless otherwise noted. No destructive or intrusive testing was performed. This Report and this site inspection were accomplished only for Reserve budget purposes (to help identify and address the normal deterioration of properly built and installed components with predictable life expectancies). The Funding Plan in this Report was developed using the cash-flow methodology to achieve the specified Funding Objective.

Association Reserves’ liability in any matter involving this Reserve Study is limited to our Fee for services rendered.

Assoc. 31288-0


Terms and Definitions

BTU British Thermal Unit (a standard unit of energy)

DIA Diameter

GSF Gross Square Feet (area). Equivalent to Square Feet

GSY Gross Square Yards (area). Equivalent to Square Yards

HP Horsepower

LF Linear Feet (length)

Effective Age: The difference between Useful Life and Remaining Useful Life. Note that this is not necessarily equivalent to the chronological age of the component.

Fully Funded Balance (FFB): The value of the deterioration of the Reserve Components. This is the fraction of life “used up” of each component multiplied by its estimated Current Replacement. While calculated for each component, it is summed together for an association total.

FFB = (Current Cost X Effective Age) / Useful Life

Inflation: Cost factors are adjusted for inflation at the rate defined in the Executive Summary and compounded annually. These increasing costs can be seen as you follow the recurring cycles of a component on Table 6.

Interest: Interest earnings on Reserve Funds are calculated using the average balance for the year (taking into account income and expenses through the year) and compounded monthly using the rate defined in the Executive Summary. Annual interest earning assumption appears in the Executive Summary.

Percent Funded: The ratio, at a particular point in time (the first day of the Fiscal Year), of the actual (or projected) Reserve Balance to the Fully Funded Balance, expressed as a percentage.

Remaining Useful Life (RUL): The estimated time, in years, that a common area component can be expected to continue to serve its intended function.

Useful Life (UL): The estimated time, in years, that a common area component can be expected to serve its intended function.

Assoc. 31288-0


Component Details

The primary purpose of the photographic appendix is to provide the reader with the basis of our funding assumptions resulting from our physical analysis and subsequent research. The photographs herein represent a wide range of elements that were observed and measured against National Reserve Study Standards to determine if they meet the criteria for reserve funding.

1) Common area maintenance repair & replacement responsibility 2) Components must have a limited life 3) Life limit must be predictable 4) Above a minimum threshold cost (board’s discretion – typically 1/2 to 1% of

annual operating expenses). Some components are recommended for reserve funding, while others are not. The components that meet these criteria in our judgment are shown with corresponding maintenance, repair or replacement cycles to the left of the photo (UL = Useful Life or how often the project is expected to occur, RUL = Remaining Useful Life or how many years from our reporting period) and a representative market cost range termed “Best Cost” and “Worst Cost” below the photo. There are many factors that can result in a wide variety of potential costs, we are attempting to represent a market average for budget purposes. Where there is no UL, the component is expected to be a one-time expense. Where no pricing, the component deemed inappropriate for Reserve Funding.

Component Details

Association Reserves, Assoc. #: 31288-0 2/15/20171

Comp #: 2117 Hill Erosion - Repair Quantity: (1) System

Useful Life:0 years

Remaining Life:0 years

Best Case: $ 250,000

Lower allowance

Worst Case: $ 250,000

Higher allowance

Sites / Grounds

Location: Common areasFunded?: Yes.History:Evaluation: Hill erosion was reported. Reported by the board that an engineer has inspected the hill and recommended that theclient remove the dirt from the hill and install a membrane and drainage channel to move water away from the foundation of thebuilding. Client provided the estimate below. This is expected to be a one time expense.

No information was provided to us concerning how the hill was designed or constructed. Observation of drainage was notpossible. Proper drainage on the uphill side prevents a backlog of water (water, if present, can add substantial weight andpressure to the wall). A backlog of water, if left unchecked, could damage or break the wall. Interior of drainage lines (or pipes)can be viewed by video using a remote miniature camera. Clean out the drain lines as often as needed to prevent decreaseddrainage. Utilize mobile evacuator service if needed. Inspect regularly and repair as needed using operating budget.

Cost Source: Estimate Provided by Client


Comp #: 2121 Pavers - Replace Quantity: ~ 150 GSF

Useful Life:30 years


Best Case: $ 3,000

Lower allowance

Worst Case: $ 3,500

Higher allowance

Location: Common area walkwaysFunded?: Yes.History:Evaluation: Cracking was observed with the pavers. The cracking appeared to be from the shifting soils or foundation shifting.This area should be inspected and replaced. As routine maintenance, the paver system should be inspected to identify anyphysical issues such as lifting, cracking, and excessive surface wear. We recommend maintaining a small amount of sparepavers on site before replacement in the event of breakage. At long intervals, sunlight, weather and vehicle traffic can degradethe condition of the material, requiring replacement for structural and/or aesthetic reasons. Schedule shown here may beupdated based on the aesthetic preferences of the association and standards in the local area. In general, we do notrecommend sealing concrete pavers.

Cost Source: ARI Cost Database: Similar Project Cost History


Comp #: 2131 Asphalt - Seal/Repair Quantity: ~ 12,200 GSF

Useful Life:4 years


Best Case: $ 4,200

Lower allowance

Worst Case: $ 5,400

Higher allowance

Location: StreetsFunded?: Yes.History: Sealed in 2011Evaluation: At the time of publication, the responsibility percentage of ownership was unclear. We have assumed that SnowLion is 100% responsible for the asphalt maintenance.

Overall fair conditions were observed with the asphalt. Reportedly the asphalt has not been sealed since 2011. Regular cyclesof seal coating (along with any needed repair) has proven to be the best program in our opinion for the long term care of lowertraffic asphalt areas such as these. The primary reason to seal coat asphalt pavement is to protect the pavement from thedeteriorating effects of sun and water. When asphalt pavement is exposed, the asphalt oxidizes, or hardens which causes thepavement to become more brittle. As a result, the pavement will be more likely to crack because it is unable to bend and flexwhen subjected to traffic and temperature changes. A seal coat combats this situation by providing a waterproof membrane,which not only slows down the oxidation process but also helps the pavement to shed water, preventing it from entering thebase material. Seal coat also provides uniform appearance, concealing the inevitable patching and repairs which accumulateover time. Seal coat ultimately extends useful life of asphalt, postponing the asphalt resurfacing, which can be one of the largercost items in this study (see component #2133 for asphalt resurfacing costs). Repair asphalt before seal coating. Surfacepreparation and dry weather, during and following application, is key to lasting performance. The ideal conditions are a warm,sunny day with low humidity; rain can cause major problems when seal coating and should never be done when showers arethreatening. Incorporate any striping and curb repair into this project. Fill cracks and clean oil stains promptly in between cyclesas routine maintenance.



Comp #: 2133 Asphalt - Resurface Quantity: ~ 12,200 GSF



Best Case: $ 60,000

Lower allowance


Higher allowance

Location: StreetsFunded?: Yes.History:Evaluation: At the time of publication, the responsibility percentage of ownership was unclear. We have assumed that SnowLion is 100% responsible for the asphalt maintenance.

Generally fair conditions were observed during our inspection, with no widespread problems (cracking, excessive wear,alligator cracking). Useful life below assumes regular seal coating and repairs. The lack of seal coating and repairs can greatly decrease theasphalt’s useful life. Resurfacing is typically one of the larger expense items in a reserve study. When need to resurface isapparent within a couple of years, consult with geotechnical engineer for recommendations, specifications / scope of work andproject oversight.As routine maintenance, keep surfaces clean and free of debris, ensure that drains are free flowing, repair cracks, and clean oilstains promptly. Assuming proactive maintenance, plan to resurface at roughly the time frame below. Further resources:Pavement Surface Condition Field Rating Manual for Asphalt Pavement.http://co-asphalt.com/resources/maintenance-and-preservation/



Comp #: 2134 Bridge Rails - Replace Quantity: ~ 70 LF



Best Case: $ 20,000

Lower allowance


Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: The railings were reportedly original to the property. Based on the age of the property, they should likely bereplaced in the near future. During the inspection, it was reported these rails will be replaced soon. Contact reported that theclient is considering replacing the rails with custom welded powder coated decorative rails.

The rail connections should be inspected periodically for structural and/or waterproofing issues. As routine maintenance,inspect regularly to ensure safety and stability; repair promptly as needed using general operating/maintenance funds. Wesuggest Reserve funding for regular intervals of total replacement as indicated below. Consult with a decking/railing contractorto ensure that replacements are compliant with all relevant building codes. Funding is for replacing existing materials with likekind material, which is factored below. Costs may be greater if the structural framing is found to need repair or replacement.



Comp #: 2136 Bridge - Stain/Repair Quantity: ~ 200 GSF

Useful Life:5 years


Best Case: $ 1,300

Lower allowance

Worst Case: $ 1,800

Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: The bridge appeared to be in need of stain. Weathering was observed. Regular sealer applications arerecommended for the appearance, protection, and maximum useful life of the wood. Actual timing of staining will vary based onexposure and quality of material and application. In our experience, quality solid-bodied stain typically produces best result.Repair as needed and clean prior to sealer application.

There are three general options for finishing wood fences. The first and least expensive option is to leave it unfinished. Thesecond option is regular cycles of penetrating water repellent (typically clear or semi-transparent). The third option is paintingor staining. The first option typically has a shorter useful life and perhaps a lower life-cycle cost than staining/painting. Leftunfinished, the wood will “gray” from its exposure to weather and often exhibit mildew - the lesser appearance may adverselyaffect marketability however. The second option to apply a penetrating stain is similar to painting, in that it will extend the life ofthe wood fence. The costs for applying the penetrating water repellent can be much less than staining, but needs to be donemore often (every two to three years). Using a quality stain is often thought to best balance the objectives of the associationand is therefore factored below.



Comp #: 2137 Bridge - Replace Quantity: ~ 200 GSF

Useful Life:

Remaining Life:

Best Case: Worst Case:

Location: Common areasFunded?: No. Unpredictable scopeHistory:Evaluation: The bridge was observed with no major problems noted or reported at the time of inspection. Reported that therewere minor repairs in 2006. There was also ~ 70 LF of railing on the bridge. Regular inspections by engineer are prudent;factor those inspections and general repairs within operating budget. Engineering report was not available for our review.Inspect regularly, repair as needed from operating budget. If shifting, crumbling, etc. are noted, consult with civil or geotechnicalengineer or landscape architect for repair scope. At this time, no predictable expectation of large scale repairs or replacement;no basis for reserve funding. Track expenses and engineer's recommendations for basis of adjustment t in reserve studyupdates in future years if needed.

Cost Source:


Comp #: 2139 Metal/Wood Treads - Repair/Replace Quantity: ~ (21) Treads,12 LF Rails



Best Case: $ 3,000

Lower allowance

Worst Case: $ 5,000

Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: Contact reported that the client would like to replace the wood treads located at the bridge. Total of (11) metaltreads and (10) wood treads. No problems were observed during our inspection of the metal stairs and railing. There was nosignificant damage/deterioration noted. With ordinary care and maintenance there is no predictable expectation for totalreplacement. However, in our experience as the community continues to age, some periodic larger repair needs will likelyemerge. We recommended setting aside reserve funds to supplement the operating budget for local repairs in future years. Asroutine maintenance, inspect regularly and perform any needed local repairs promptly as general maintenance expense.Ensure that tread connections are tight, secure and slip resistant. Paint components regularly along with building exteriors.



Comp #: 2151 Site Fencing: Wood - Repair/Paint Quantity: ~ 220 LF

Useful Life:5 years


Best Case: $ 1,500

Lower allowance

Worst Case: $ 1,800

Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: The pool and perimeter fence appeared to need staining. This should be done in the near future.Regular sealer applications are recommended for the appearance, protection, and maximum useful life of the wood. Actualtiming of staining will vary based on exposure and quality of material and application. In our experience, quality solid-bodiedstain typically produces best result. Remove any unnecessary contact with ground and surrounding landscape and sprinklerpatterns. Repair as needed and clean prior to sealer application.

There are three general options for finishing wood fences. The first and least expensive option is to leave it unfinished. Thesecond option is regular cycles of penetrating water repellent (typically clear or semi-transparent). The third option is paintingor staining. The first option typically has a shorter useful life and perhaps a lower life-cycle cost than staining/painting. Leftunfinished, the wood will “gray” from its exposure to weather and often exhibit mildew - the lesser appearance may adverselyaffect marketability however. The second option to apply a penetrating stain is similar to painting, in that it will extend the life ofthe wood fence. The costs for applying the penetrating water repellent can be much less than staining, but needs to be donemore often (every two to three years). Using a quality stain is often thought to best balance the objectives of the associationand is therefore factored below.



Comp #: 2155 Site Fencing: Wood - Replace Quantity: ~ 220 LF



Best Case: $ 7,700

Lower allowance


Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: No major issues were observed with the wood fence. As routine maintenance, inspect regularly for any damage,repair as needed and avoid contact with ground and surrounding vegetation wherever possible. Regular cycles of uniform,professional sealing/painting will help to maintain appearance and maximize life. Plan to replace at roughly the time framebelow with funding included here for similar wood replacement. At next replacement, association might want to considerreplacing with more sturdy, lower-maintenance products like composite, vinyl, etc. Although installation costs are higher, totallife cycle cost is lower due to less maintenance and longer design life expectancy.



Comp #: 2165 Retaining Walls - Repair Quantity: ~ 420 LF

Useful Life:

Remaining Life:


Comp #: 2169 Shed Enclosures - Replace Quantity: ~ (2) 10x10 Sheds



Best Case: $ 6,000

Lower allowance

Worst Case: $ 8,000

Higher allowance

Location: Common areasFunded?: No. Unpredictable scope.History:Evaluation: There was ~ 83 LF of concrete retaining wall and ~ 340 LF of timber retaining wall on the property. Due to theunpredictable scope of this asset, no funding is being added here. No significant or widespread cracking, settling or otherproblems observed. Assumed to have been properly designed and installed with adequate base and surrounding drainage.Inspect regularly, repair as needed from Operating budget. If shifting, cracking, etc. are observed, consult with civil orgeotechnical engineer for repair scope. At this time, no expectation of large scale repairs or replacement; no Reserve fundingrecommended. An allowance for partial repairs/replacements may be added during future Reserve Study updates if warrantedby association history.

Cost Source:

Location: Common areasFunded?: Yes.History:Evaluation: There are two (2) 10x10 sheds on the property. The sheds appeared to be in good condition. The can be repairedat the same time as the buildings. The sheds are subject to abuse. It is reasonable to expect repairs at relatively small intervals due to misuse, although it isdifficult to predict precise scope and timing of repairs.



Comp #: 2169 Trash Enclosures - Replace Quantity: ~ (1) 6x12 Enclosure



Best Case: $ 9,000

Lower allowance


Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: The trash enclosure appeared to be in good condition. It appeared to be faded, but no warping or damaged woodnoted. These garbage enclosures are subject to abuse. It is reasonable to expect repairs at relatively small intervals due to misuse,although it is difficult to predict precise scope and timing of repairs. We suggest at next replacement, to consider a moredurable enclosure material such as steel posts and rails. By utilizing such materials, the enclosure can better withstand regularabuse, reduce repair costs, and increase useful life. A less expensive option is to install concrete wheel stops (typically used atthe front of parking spaces) to prevent the container or vehicles from impacting the enclosure.



Comp #: 2179 Mailboxes - Replace Quantity: ~ (2) CBUs



Best Case: $ 2,000

Lower allowance

Worst Case: $ 2,800

Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: There were twenty- eight (28) metal mail boxes with one (1) parcel box within the two (2) CBUs on the property.The mailboxes appeared to be older, where as the parcel box appeared to be newer. There were no major problems observedor reported with either. Inspect regularly, and clean by wiping down exterior surfaces. If necessary, change lock cylinders,lubricate hinges and repair as an Operating expense. Best to plan for total replacement at roughly the time frame below due toconstant exposure, usage and wear over time. Note: USPS has a limited budget for replacement and should not be relied uponfor purposes of long term planning.



Comp #: 2185 Site Pole Lights - Replace Quantity: ~ (2) Fixtures



Best Case: $ 2,100

Lower allowance

Worst Case: $ 2,500

Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: There were two (2), 8' metal poles at the pool area. The fixtures appeared to be in overall poor conditions. Thepoles appeared to be older and may need to be replaced in the near future. Observed during daylight hours; assumed to be infunctional operating condition. Best to plan for large scale replacement at roughly the time frame below for cost efficiency andconsistent quality/appearance throughout association. As routine maintenance, inspect, repair/change bulbs as needed.



Comp #: 2193 Trees - Trim/Remove Quantity: Numerous Trees



Best Case: $ 9,000

Lower allowance

Worst Case: $ 9,000

Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: Contact reported that the trees will need to be removed due to their close proximity to the building. Client providedthe estimate below. This component may be utilized for larger tree removal/trimming projects which do not occur on a annualbasis. If the community has not already done so, consult with a qualified arborist to assess the appropriateness of currentplantings and for a long term plan for the care and management of the trees within the community, balancing aesthetic withprotection of association assets. Reserve funding recommend at level indicated below for periodic, larger tree removal/trimmingneeds. Track actual expenses and adjust in reserve study updates if needed.



Comp #: 2303 Exterior Wall Lights - Replace Quantity: ~ (28) Fixtures



Best Case: $ 4,200

Lower allowance

Worst Case: $ 5,600

Higher allowance

Building Exteriors

Location: ExteriorsFunded?: Yes.History:Evaluation: There were twenty-eight (28) exterior wall lights on the property. They were noted to be in overall poor condition. Itwas reported that these light fixtures are original to the property. Observed during daylight hours, but assumed to be infunctional operating condition. As routine maintenance, clean by wiping down with an appropriate cleaner, change bulbs andrepair as needed. Best practice is to plan for large-scale replacement at roughly the time frame below for cost efficiency andconsistent quality/appearance throughout association. Should be coordinated with exterior painting projects wheneverpossible. Be sure to inspect for tight seal with building envelope. Note: expect the need to replace individual fixturesoccasionally due to failure or damage. Individual replacements should be considered an Operating expense. If available, anextra supply of replacement fixtures should be kept on-site to allow for prompt replacement.



Comp #: 2321 Balcony Rails - Paint Quantity: ~ 300 LF

Useful Life:5 years


Best Case: $ 3,100

Lower allowance

Worst Case: $ 4,200

Higher allowance

Location: BalconiesFunded?: Yes.History:Evaluation: Plan to start the painting cycle once the rails have been replaced. It is recommended they be replaced in the nearfuture. The rail faces were observed to be experiencing heavy cracking and peeling of paint. However, these railings should bepainted at the same time as the building exterior. Balcony railings should be painted/re-coated at the approximate intervalshown below in order to restore good appearance and protect the railings from excessive surface wear. If railing is exposed tothe elements without adequate coating for an extended period of time, useful life may be severely reduced. Best practice is tocoordinate with other exterior projects when possible, such as balcony sealing or exterior painting.



Comp #: 2323 Balcony Rails - Replace Quantity: ~ 300 LF



Best Case: $ 33,000

Lower allowance


Higher allowance

Location: BalconiesFunded?: Yes.History:Evaluation: The railings were reportedly original to the property. Based on the age of the property, they should likely bereplaced in the near future. There was heaving cracking and peeling of the paint. During the inspection, it was reported theserails will be replaced soon. Contact reported that the client is considering two different options at the time of publication. Thelower allowance assumes a "like for like" replacement, while the higher allowance assumes custom welded powder coateddecorative rails.

The rail connections should be inspected periodically for structural and/or waterproofing issues. As routine maintenance,inspect regularly to ensure safety and stability; repair promptly as needed using general operating/maintenance funds. Wesuggest Reserve funding for regular intervals of total replacement as indicated below. Consult with a decking/railing contractorto ensure that replacements are compliant with all relevant building codes. Funding is for replacing existing materials with likekind material, which is factored below. Costs may be greater if the structural framing is found to need repair or replacement.



Comp #: 2331 Wood Deck - Seal/Repair Quantity: ~ 1,300 GSF

Useful Life:5 years


Best Case: $ 1,600

Lower allowance

Worst Case: $ 2,500

Higher allowance

Location: BalconiesFunded?: Yes.History:Evaluation: We did not have access to inspect the balcony surface, however it was reported that the balcony surfaces willneed to be replaced soon. A few of the decks sampled appeared to have a turf or carpeting covering. This tends to trapmoisture on the wood surfaces, which may cause the wood surfaces to deteriorate. Plan to start the sealing cycle once thebalconies have been resurfaced. The surfaces were reported to be wood. Wood seal coatings lose thickness each year due towear and exposure to UV light. If more than the topcoat is allowed to wear off, the surface may still appear to be in ‘good’condition to the untrained eye, but waterproof integrity may be compromised. Decks should be thoroughly evaluated by adecking or waterproofing contractor prior to re-coating in order to determine scope of any required repairs. If the deck systemhas a warranty, the association should make sure to follow any requirements necessary to maintain said warranty, such as re-coating at required intervals and conducting professional inspections. As a general rule, potted plants and other items that maytrap water should be elevated off the deck or used with a waterproof liner in order to prevent prolonged exposure.



Comp #: 2333 Wood Deck - Resurface/Restore Quantity: ~ 1,300 GSF



Best Case: $ 19,000

Lower allowance


Higher allowance

Location: Building exteriorsFunded?: Yes.History:Evaluation: We did not have access to inspect the every single balcony surface. It was reportedly a wood surface. It wasreported to us at the time of inspection that the balcony surfaces are in poor condition throughout the building.

Funding is for replacing existing walking surface materials with like kind material, which is factored below. Costs may begreater if the structural framing is found to need repair or replacement.Inspect deck, stairs, and railings annually and repair as needed. As part of maintenance, apply water repellentstain/preservative at least every other year. Almost all exterior wood exposed to Colorado area weather will decay over timeand require replacement. Current building code requires flashing of the ledger joist (at the exterior building wall) to preventdecay from compromising the structural integrity. Options for a longer lasting deck include using thick wood boards or acomposite product (increased cost).



Comp #: 2337 Building Exterior - Seal/Paint Quantity: ~ 16,000 GSF

Useful Life:7 years


Best Case: $ 48,000

Lower allowance


Higher allowance

Location: ExteriorFunded?: Yes.History:Evaluation: Exteriors were observed to be in poor condition. The area will need to be painted in the near future. As routinemaintenance, inspect regularly (including sealants), repair locally and touch-up paint as needed. Typical paint cycles can varygreatly depending upon many factors including; type of material painted, surface preparations, quality of material, applicationmethods, weather conditions during application, moisture beneath paint, and exposure to weather conditions. Propersealant/caulking is critical to preventing water intrusion and resulting damage to the building structure. Incorrect installations ofsealant are common, and can greatly decrease its useful life. Inspect sealant, more frequently as it ages, to determine if it isfailing. Typical sealant problems include failure of sealant to adhere to adjacent materials and tearing/splitting of the sealantitself. As sealants age and are exposure to ultra-violet sunlight, they will dry out, harden, and lose their elastic ability. Removeand replace sealant as signs of failure begin to appear. Proper cleaning, prep work, and proper installation are critical for along lasting sealant/caulking. Do not install sealant in locations that would block water drainage from behind the siding. Repairareas as needed prior to project. For best results, the association may want to consult with a building envelope specialist orwaterproofing contractor to specify types of materials to be used and define complete scope of work before bidding. Bestpractice is to coordinate this type of work with other projects whenever practical, such as balcony sealing, planterwaterproofing, etc.



Comp #: 2339 Stucco/EIFS - Seal/Paint/Repair Quantity: ~ 1,300 GSF



Best Case: $ 4,000

Lower allowance

Worst Case: $ 5,000

Higher allowance

Location: ExteriorFunded?: Yes.History:Evaluation: (Depending on what the client chooses, the stucco may be completely replaced along with component #2353,however, there was no decision made by the board at the time of publication)

The stucco was located on the chimney sections. The stucco was observed to be in fair condition, with moderate amount ofcracking and peeling of the stucco paint. It also appeared as though some of these areas will need to be repaired. The sealantmaterial is unknown.

Client reported that they may replace the stucco with a stone veneer, however, at the time of publication this decision has notyet been made.

Stucco is a relatively low maintenance material, although sealants require more maintenance. As annual maintenance, inspectstucco and sealants for any visible problems. Replacing sealants is an important part of maintaining stucco’s waterproofing.Sealants are typically located at the intersections of the stucco and other material such as windows, door and vents. We haveassumed the sealants are silicone, which under good conditions may have a useful life of approximately 15 to 20 years.Urethane sealants would have a useful life of 8-12 years. At time of sealant replacement we recommend recoating the stuccoto minimize water penetration and for appearance. Stucco can be recoated to help limited the amount of water penetrating intothe stucco. There are three general options for recoating stucco. The least expensive option is applying a new acrylic topcoat,the second option is coating with an elastomeric finish, preferably permeable (~50% more expensive than acrylic) and a thirdoption is a skim coat of stucco (about three times as expensive as acrylic). Generally the more expensive option has thelongest useful life, and the least expensive has the shortest useful life. Additional information on Stucco is available at thePortland Cement Association’s website http://www.cement.org/stucco/index.asp

Stucco is not an impermeable material and allows moisture to penetrate the surface, become captured by the water resistivebarrier (WRB) beneath (typically Tyvek, felt or similar material), and either evaporate back through to the exterior or drain downand out the base of the wall assembly through a weep screed. Typically north facing sides will typically retain more moisture,which could cause a quicker rate of deterioration.



Comp #: 2353 Wood Siding - Replace Quantity: ~ 16,000 GSF




Lower allowance


Higher allowance

Location: ExteriorFunded?: Yes.History:Evaluation: Reportedly, areas of the wood siding are in need of replacement. During the inspection, it was noted that especiallyat the base of the building, there was warping of the wood as well as peeling of the paint. Client reported that the sheathingand insulation also need to be replaced. Pricing included on this Reserve Study was derived from a bid proposal by RA Nelson.Lower allowance assumes a "like for like" replacement of the materials. The higher allowance assumes upgraded materials aswell as insulation work.

Replacement may ultimately be needed due to the failure of the underlying waterproofing degrading over the decades, and/orthe end of the useful life of the siding materials from general aging. Many factors influence the useful life, including exposure to(or protection from) wind driven rain, and the quality of the waterproofing and flashing beneath the siding. Evaluate the sidingand the critical underlying waterproofing (typically building paper or house-wrap) more frequently as the remaining useful lifeapproaches zero years. Adjust remaining useful life as dictated by the evaluation. Align with window replacement for costefficiencies and building envelope integrity when practical. Inspect annually and repair locally as needed using generalmaintenance funds. Keep the wood siding painted to protect the wood from decay caused by water.Another item that greatly influences useful life is the thoroughness of the original painting. Wood siding will last longer if eachpiece was painted on all six sides. Typically, wood siding is painted on the two sides that are exposed and not on the back,ends, or top. Since we perform only a visual review, we were unable to confirm the extents of the painting. It is reasonable topresume that not all six sides are painted. If the siding is not painted on all sides, water can infiltrate and be absorbed into thewood on the unpainted sides, which over time will lead to cupping, warping and decay, limiting its useful life.

Project costs can vary depending upon materials chosen and the condition of the underlying structural framing when exposed.We recommend the Board conduct research well in advance in order to define scope, timing and costs, including plan for somemargin of contingency.



Comp #: 2361 Common Windows - Replace Quantity: ~ (16) Windows



Best Case: $ 32,000

Lower allowance


Higher allowance

Location: ExteriorFunded?: Yes.History:Evaluation: There were sixteen (16) older windows located at the entry doors. They were glass single framed located in thewood siding. No observation of the critical underlying waterproofing details and flashing was part of our limited visual review.The underlying details and flashing are critical to maintaining the waterproofing of the building envelope and preventingstructural damage as a result of water infiltration. Many factors affect useful life, including quality of window (design pressure rating), waterproofing and flashing details, buildingmovement and exposure to the elements including wind driven rain. Those same variables, along with glazing and framematerials can also greatly affect the appropriate choice, replacement costs. You can learn more about window design here:http://www.rci-online.org/interface/2010-04-hinjosa.pdfInspect regularly, including sealant, if any, and repair as needed. Typical sealant failures include a lack of adhesion to adjacentmaterials, tearing/splitting of the sealant itself, and lose of elastic ability. Loss of elastic ability can be caused by exposure toultra-violet light and general aging. Remove and replace all sealants as signs of failure begin to appear. Proper cleaning, prepwork, and installation of specified joint design are critical for lasting performance. Keep weep holes free and clear to allowproper drainage of water that gets into window frame. Do not block (caulk or seal) gap at top of head flashing, as this allowswater that gets behind the siding, to drain out.

We recommend the board conduct research well in advance of this project to help better define timing and costs (scope ofwork, material specifications, etc.). Further, we recommend that you hire a professional consultant (architect, engineer, buildingenvelope consultant) to evaluate the existing windows, design and specify new installation requirements, assist with bidprocess and observe construction to increase the likelihood of proper installation. We recommend all associations hire qualifiedconsultants whenever they are considering having work performed on any high-risk building envelope components (roof, walls,windows, decks, exterior painting and caulking/sealant).

Note: Cost below is for window replacement only. Professional architectural details and specifications, general contractor’soversight and coordination, and repair of underlying wood structural framing damage from water infiltration, etc. can addsignificantly to project cost.



Comp #: 2361 Mtg Room Windows - Replace Quantity: ~ (2) 4x3 Windows



Best Case: $ 4,000

Lower allowance

Worst Case: $ 5,000

Higher allowance

Location: ExteriorFunded?: Yes.History:Evaluation: No information was available on the age of the windows. There were two (2) 4x3 vinyl framed windows located inthe meeting room of the property. They appeared to be newer. Many factors affect useful life, including quality of window (design pressure rating), waterproofing and flashing details, buildingmovement and exposure to the elements including wind driven rain. Those same variables, along with glazing and framematerials can also greatly affect the appropriate choice, replacement costs. You can learn more about window design here:http://www.rci-online.org/interface/2010-04-hinjosa.pdfInspect regularly, including sealant, if any, and repair as needed. Typical sealant failures include a lack of adhesion to adjacentmaterials, tearing/splitting of the sealant itself, and lose of elastic ability. Loss of elastic ability can be caused by exposure toultra-violet light and general aging. Remove and replace all sealants as signs of failure begin to appear. Proper cleaning, prepwork, and installation of specified joint design are critical for lasting performance. Keep weep holes free and clear to allowproper drainage of water that gets into window frame. Do not block (caulk or seal) gap at top of head flashing, as this allowswater that gets behind the siding, to drain out.

We recommend the board conduct research well in advance of this project to help better define timing and costs (scope ofwork, material specifications, etc.). Further, we recommend that you hire a professional consultant (architect, engineer, buildingenvelope consultant) to evaluate the existing windows, design and specify new installation requirements, assist with bidprocess and observe construction to increase the likelihood of proper installation. We recommend all associations hire qualifiedconsultants whenever they are considering having work performed on any high-risk building envelope components (roof, walls,windows, decks, exterior painting and caulking/sealant).

Note: Cost below is for window replacement only. Professional architectural details and specifications, general contractor’soversight and coordination, and repair of underlying wood structural framing damage from water infiltration, etc. can addsignificantly to project cost.



Comp #: 2367 Entry Doors - Replace Quantity: ~ (3) Doors



Best Case: $ 4,000

Lower allowance

Worst Case: $ 6,000

Higher allowance

Location: Entry and exitFunded?: Yes.History:Evaluation: Generally fair condition noted with no widespread damage or wear. As routine maintenance, inspect periodicallyand repair / replace as needed using general building repair funds within operating budget. Clean and paint along with otherinterior building surfaces, no need for separate funding. Contact reported that the client would like to replace the doors in thenear future.



Comp #: 2375 Low Slope Roof - Replace Quantity: ~ 240 GSF



Best Case: $ 1,200

Lower allowance

Worst Case: $ 1,700

Higher allowance

Location: Roof of pool equipment roomFunded?: Yes.History:Evaluation: There was a small section of flat roofing located above the pool mechanical building. It appeared to be a modifiedbitumen roof. No major problems were noted, however it did appear to be somewhat older with minor cracking. Typical usefullife of low slope roof is 15-20 years depending on the quality of the roof system installed and the maintenance receivesthroughout its life. As routine maintenance, many manufacturers recommend professional inspections at least twice annuallyand after storms. Promptly repair any damaged sections or any other repairs needed to ensure waterproof integrity of roof.Keep scuppers, drains, gutters, and downspouts clear and free of debris to allow proper drainage and prevent the ponding ofwater on the roof surface. We recommend having roof inspected in greater detail (including conditions of sub-surfacematerials) by an independent roofing consultant prior to replacement. There is a wealth of information available throughorganizations such as the Roof Consultant Institute http://www.rci-online.org and the National Roofing Contractors Association(NRCA) http://www.nrca.net. If the roof has a warranty, be sure to review terms and conduct proper inspections/repairs asneeded to keep warranty in force.



Comp #: 2377 Comp Shingle Roof - Replace Quantity: ~ 12,000 GSF



Best Case: $ 72,000

Lower allowance


Higher allowance

Location: RoofFunded?: Yes.History: Roof was replaced in 2006.Evaluation: Reportedly the roof was replaced in 2006. During our inspection, no major issues with the roof were evident. Theroof appeared to have flashing along the eaves, and diverter flashing along the chimenys was also noted. Ventilation appearedto be provided by continuous ridge vents. For a full evaluation have a professional roof consultant/contractor perform athorough up-close survey of your entire roof system, including attic inspection (if any).Costs below factors replacement with an architectural grade laminated shingle.As routine maintenance, many manufacturers recommend inspections at least twice annually (once in the fall before the snowseason and again in the spring) and after large storm events. Promptly replace any damaged/missing sections or any otherrepair needed to ensure waterproof integrity of roof. Keep roof surface, gutters, and downspouts clear and free of debris.

At the time of re-roofing, we recommend that you hire a professional consultant to evaluate the existing roof and specify thenew roof materials/design, provide installation oversight. We recommend that all Associations hire qualified consultantswhenever they are considering having work performed on any building envelope (waterproofing) components including; roof,walls, windows, decks, exterior painting, and caulking/sealant.There is a wealth of information available through Roofing Organizations such as:National Roofing Contractors Association (NRCA) http://www.nrca.net.Asphalt Roofing Manufacturers Association (ARMA) http://www.asphaltroofing.org/ Roof Consultant Institute (RCI) http://www.rci-online.org



Comp #: 2381 Metal Roof - Replace Quantity: ~ 40 GSF

Useful Life:

Remaining Life:


Location: RoofFunded?: No. Repair / replace using operating budget.History:Evaluation: There is a small portion of metal roofing. Due to the size of the roof, plan to replace as needed. The metal roofingwas located at the pool entrance. The area was so small, it can likely be replace / repaired as needed from operating budget.Typically metal roofs are either Pro-Panel seamed roofs or Standing Seam roofs. Pro Panel roofs are installed with exposedmetal screws and fasteners, while Standing Seam will snap lock panels over the mechanical seam, with no penetrations to theunderlayment. Advantages of metal roofs include long life expectancies with relatively low need to repair. Metal roofing istypically a long-lived component assuming it was properly installed and is properly maintained. As routine maintenance, manymanufacturers recommend inspections at least twice annually (once in the fall, before the rainy season, and again in thespring) and after large storm events. Promptly replace any damaged/missing sections or conduct any other repair needed toensure waterproof integrity of roof. We recommend having roof inspected in greater detail (including conditions of sub-surfacematerials) by an independent roofing consultant prior to replacement. There is a wealth of information available throughorganizations such as the Roof Consultant Institute http://www.rci-online.org and the National Roofing Contractors Association(NRCA) http://www.nrca.net/. If the roof has a warranty, be sure to review terms and conduct proper inspections/repairs asneeded to keep warranty in force.

Cost Source:


Comp #: 2385 Gutters/Downspouts - Replace Quantity: ~ 530 LF



Best Case: $ 3,200

Lower allowance

Worst Case: $ 5,300

Higher allowance

Location: Roof, exteriorsFunded?: Yes.History: Replaced in 2011.Evaluation: Reportedly the downspouts were replaced in 2011. The downspouts were aluminum larger, ~ 4" and some thatwere 5". Generally the metal gutters and downspouts appeared in good condition. As routine maintenance, inspect regularly,keep gutters and downspouts free of debris. We recommend that the adjacent gutter be replaced when the roof (or decks) isbeing resurfaced/replaced. National Roofing Contractor Association (NRCA) roofing standard includes installing eave flashingsat the gutters. We suggest to plan for total replacement of gutter and downspouts at the same intervals as roof replacement forcost efficiency. Evaluate at time of roofing to determine if replacement or re-use is the better value.



Comp #: 2387 Heat Tape - Replace Quantity: ~ 530 LF



Best Case: $ 7,500

Lower allowance


Higher allowance

Comp #: 2393 Chimney Covers & Flue Caps -Replace Quantity: ~ (6) Covers,~ (24) Caps



Best Case: $ 9,000

Lower allowance


Higher allowance

Location: Roof, eavesFunded?: Yes.History:Evaluation: Heat tape was observed along the edges of the roof and the downspouts. Heat tape generally follows the length ofthe gutter and downspouts. Heat cables, when installed and functioning properly, will help offset the likelihood of an ice dam.Heat tape, on average, creates an output between 50-70°F. When installed in the gutters, the heat cables can keep yourgutters and downspouts from collecting and freezing with ice and snow melt.


Location: RoofFunded?: Yes.History:Evaluation: We did not have access to closely inspect the chimney covers and caps. We typically include replacement cycletimed to coincide with re-roofing. Review condition of chimney caps and flue caps with consultant while evaluating the roofingproject. As routine maintenance, inspect and clean during roof maintenance. Repair locally as needed. Assuming proactivemaintenance, plan for total replacement at roughly the time frame indicated below.



Comp #: 2401 Interior Surfaces - Repaint Quantity: ~ 8,000 GSF



Best Case: $ 10,000

Lower allowance


Higher allowance

Building Interiors

Location: InteriorsFunded?: Yes.History: Interior walls painted in 2010.Evaluation: The interior surfaces appeared to be in fair condition. Some minor staining on the walls was observed, specificallyin the meeting room. Reportedly, the interior walls were painted in 2010. Regular cycles of professional painting arerecommended to maintain appearance. Small touch-up projects can be conducted as needed as a maintenance expense, butcomprehensive painting of interior areas will restore a consistent look and quality to all areas. Best practice is to coordinate atsame time as other interior projects whenever possible to minimize downtime and maintain consistent quality standard.



Comp #: 2405 Interior Lights - Replace Quantity: ~ (48) Fixtures



Best Case: $ 6,000

Lower allowance

Worst Case: $ 7,200

Higher allowance

Location: InteriorsFunded?: Yes.History: Interior lights replaced in 2011.Evaluation: The light fixtures were reportedly replaced in 2011. There were no major problems noted, with the exception of two(2) broken fixtures that should be replaced. As routine maintenance, inspect, repair and change bulbs as needed. Best practiceis to coordinate at same time as other interior projects (especially painting) whenever possible to minimize downtime andmaintain consistent quality standard. Timing and interval is subjective. Estimates shown here are based on our experience withsimilar properties and general aesthetic qualities. Schedule can be updated/adjusted at the discretion of the association forplanning purposes. A wide variety of fixture styles is available; funding recommendations are based on replacement withcomparable quality fixtures.



Comp #: 2406 Staircases/Handrails - Replace Quantity: (1) Stairwell



Best Case: $ 80,000

Lower allowance


Higher allowance

Comp #: 2409 Tile Flooring - Replace Quantity: ~ 24 GSF

Useful Life:

Remaining Life:


Location: Building interiorsFunded?: Yes.History:Evaluation: Contact reported that the interior stairs and balusters will need to be replaced. Current issues were reported toinclude the baluster width is not up to current code. Inspect regularly, repair as needed from operating budget. If movement,wobbliness etc. are noted, consult with civil or geotechnical engineer for repair scope. At this time, no predictable expectationof large scale repairs or replacement; however, at the request of the client, we have included this item at the funding levelbelow. Track expenses and engineer's recommendations for basis of adjustment t in reserve study updates in future years ifneeded.


Location: InteriorsFunded?: No.History:Evaluation: There was a minimal amount of tile on the property. The tile was observed to be in good condition at the time ofinspection. We have extended the remaining life of the tile due to the conditions observed. As part of ongoing maintenanceprogram, inspect regularly, repairing or replacing damaged sections as needed. If available, best practice is to keep a collectionof replacement tiles on hand for partial replacements. Due to the small amount of tile, plan to replace as needed from theoperating account.

Cost Source:


Comp #: 2411 Carpet - Replace Quantity: ~ 482 GSY


Location: InteriorsFunded?: Yes.History:Evaluation: Carpeting was observed to be in poor condition with staining and lifting of the seams. As part of ongoingmaintenance program, vacuum regularly and professionally clean as needed. Best practice is to coordinate at same time asother interior projects whenever possible to minimize downtime and maintain consistent quality standard. Timing and interval issomewhat subjective, but not as flexible as other flooring finishes (tile, wood, etc.). Estimates shown here are based on ourexperience with similar properties and general aesthetic qualities. Schedule can be updated/adjusted at the discretion of theassociation for planning purposes.

10 years


Best Case: $ 25,000

Lower allowance


Higher allowance



Comp #: 2421 Ski Lockers - Replace Quantity: ~ (26) Lockers



Best Case: $ 7,800

Lower allowance


Higher allowance

Comp #: 2425 Furnishings - Update Quantity: ~ (23) Pieces

Useful Life:

Remaining Life:


Location: LobbyFunded?: Yes.History:Evaluation: The lockers were wood and of simple style. Based on the condition of the lockers, we recommend that the clientupgrade the lockers. Clean and inspect regularly, change lock cylinders, lubricate hinges and repair as needed from Operatingbudget. Wood structures located inside protected interior areas can have very long life expectancies. In our experience, it isprudent to expect replacement at the approximate interval shown below in order to maintain good appearance consistent withother interior areas. Schedule can be updated/adjusted at the discretion of the association for planning purposes.


Location: InteriorsFunded?: No. Replace as needed from operating budget.History:Evaluation: The meeting room has twenty (20) metal folding chairs and three (3) tables. The furniture is simple and can bereplaced as needed using the operating budget. Schedule and cost estimates should be re-evaluated during future ReserveStudy updates and adjusted as needed based on the association's good judgment.

Cost Source:


Comp #: 2429 Rental Unit - Remodel Quantity: (1) Rental Unit



No Photo Available

Best Case: $ 4,000

Lower allowance

Worst Case: $ 6,000

Higher allowance

Comp #: 2429 Rental Unit - Remodel (2017) Quantity: (1) Rental Unit

Useful Life:0 years


No Photo Available

Best Case: $ 25,000

Lower allowance


Higher allowance

Location: InteriorsFunded?: Yes.History:Evaluation: The cycle for component will begin as soon as the rental unit has been refurbished. Reportedly there is one (1)rental unit, which we did not have access to during our inspection. Periodic office remodeling is prudent in order to maintain anattractive, functional workspace for personnel. Typical projects often include replacement of room finishes and furnishings, andmay also include replacement of A/V equipment, phones, bathrooms, kitchen, storage, etc. Life estimates can vary greatlydepending on level of use and preferences of association. If the office is used as a public area for hosting potential buyers andother important visitors, remodeling should be a high priority. Schedule and cost estimates should be re-evaluated during futureReserve Study updates and adjusted as needed based on the association's good judgment.


Location: InteriorsFunded?: Yes.History:Evaluation: This component was included at the request of the client in order to factor the large 2017 rental unit remodelingproject. Reportedly there is one (1) rental unit, which we did not have access to during our inspection. Periodic officeremodeling is prudent in order to maintain an attractive, functional workspace for personnel. Typical projects often includereplacement of room finishes and furnishings, and may also include replacement of A/V equipment, phones, bathrooms,kitchen, storage, etc. Life estimates can vary greatly depending on level of use and preferences of association. If the office isused as a public area for hosting potential buyers and other important visitors, remodeling should be a high priority. Scheduleand cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on theassociation's good judgment.



Comp #: 2433 Meeting Room - Remodel Quantity: (1) 25x15 Room



Best Case: $ 3,000

Lower allowance

Worst Case: $ 4,000

Higher allowance

Location: InteriorsFunded?: Yes.History:Evaluation: The room was 25x15 with ~42 GSY of carpeted flooring and ~440 GSF of wood interior siding. Overall poorcondition noted of various interior finishes. There was a musty smell in the room and it appeared to be older. This area shouldbe refurbished in the near future. This component suggests setting aside funding for periodic remodeling and aestheticupdating. Many communities replace such items as wall coverings, window treatments, artwork, décor, etc… at regularintervals to maintain this community asset.



Comp #: 2439 Laundry Room - Remodel Quantity: (1) 12x10 Room



Best Case: $ 1,000

Lower allowance

Worst Case: $ 2,000

Higher allowance

Location: Laundry areasFunded?: Yes.History:Evaluation: The laundry room was a simple room with vinyl flooring. No major problems were observed or reported at the timeof our inspection. Laundry rooms should be remodeled at the approximate interval shown below, based on our experience withother associations. Remodeling typically includes replacement of flooring and other finishes (wallcoverings, etc.), as well aspainting, and can also include installation/replacement of lighting, counter tops, etc. Costs can vary depending on the type andquality of replacement materials. Should ideally be coordinated with remodeling of any other amenity areas to maintainconsistency in the common areas.

Cost Source: Allowance


Comp #: 2533 Pumps/Valves - Repair/Replace Quantity: ~ (4) Pumps

Useful Life:3 years


Best Case: $ 3,000

Lower allowance

Worst Case: $ 5,000

Higher allowance

Mechanical

Location: Mechanical roomFunded?: Yes.History: Per the PSI 2017 proposal, if boiler system is replaced, there will be a total of (7) pumpsEvaluation: There were four (4) variable speed pumps on the property. No major problems were observed at the time ofinspection. The pumps appeared to be slightly newer. Expect eventual need for tear down and rebuild (more cost-effective thanbuying new units) at roughly the interval below. Treat smaller repair / replacement below the reserve funding threshold (< 1%of the annual operating expenses, excluding reserves) as general maintenance item(s) within operating budget.

Cost Source: Allowance


Comp #: 2553 Fire Control Panel - Update/Replace Quantity: (1) Panel



Best Case: $ 6,000

Lower allowance

Worst Case: $ 9,000

Higher allowance

Location: Fire panel roomFunded?: Yes.History:Evaluation: The panel appeared to be older. We are not licensed to internally inspect these units. Panel was not tested forfunctionality during site inspection. Unless otherwise noted, fire alarm panel is assumed to have been designed and installedproperly and adheres to all relevant building codes. Regular testing and inspections should be conducted as an Operatingexpense. In many cases, manufacturers discontinue support of panel and parts/service availability may therefore be limited asthe panel ages. Research and experience suggests planning for replacement at roughly the time frame below. Beginformulation of specifications and obtain estimates in advance of need - replace proactively to ensure safety.



Comp #: 2555 Exit/Emergency Lights - Replace Quantity: ~ (18) Fixtures



Best Case: $ 2,500

Lower allowance

Worst Case: $ 3,200

Higher allowance

Location: Common areasFunded?: Yes.History:Evaluation: Overall fair conditions were observed regarding the emergency lights. Some of the eighteen (18) lights appearednewer, while the majority appeared to be older. Exit signs and emergency lighting fixtures were not tested for functionalityduring site inspection. Replacement of individual fixtures can be included within the general maintenance and repair categoryof the Operating budget. Large-scale replacement of many (or all) fixtures may be warranted at some point and should ideallybe coordinated with other life-safety components, such as fire alarm control panel(s), smoke detectors, pull stations, etc. Thereis a wide variety of fixture styles available, with a wide range of associated costs. Funding here to replace with fixturescomparable to those currently in place.



Comp #: 2561 Boiler - Replace (715K BTU) Quantity: (1) 715K BTU Boiler



Best Case: $ 60,000

Lower allowance


Higher allowance

Location: Mechanical roomFunded?: Yes.History: Installed in 1992Evaluation: There was one (1) Teledyne Laars boiler on the property. Reported that the (3) boilers will be replaced with )3_600K BTU Lochinvar boilers. With routine inspection and maintenance, the boiler should have an approximate useful life asshown below before replacement with future technology and efficiencies will be warranted. Please note that the useful life ofthe boiler can be influenced by many factors, including water quality in the area. Life expectancy can also vary based on levelof use. When considering replacements, the association should strongly consider replacing with high-efficiency models.Although initial cost may be higher than conventional alternatives, the payback period in energy savings is often a fraction ofthe overall life span of the boiler itself.



Comp #: 2561 Boilers - Replace (1.8 Mill. BTU) Quantity: (2) 1,800,000 BTU Boilers




Lower allowance


Higher allowance

Comp #: 2565 Glycol Storage Tanks - Replace Quantity: ~ (1) Tank

Useful Life:

Remaining Life:


Location: Mechanical roomFunded?: Yes.History:Evaluation: There were two larger Rite boilers on the property. Due to the style of the units, the boilers will most likely need tobe cut into pieces in order to remove the hardware from the boiler room. They appeared to be very old, and may need to bereplaced in the near future. With routine inspection and maintenance, the boiler should have an approximate useful life asshown below before replacement with future technology and efficiencies will be warranted. Please note that the useful life ofthe boiler can be influenced by many factors, including water quality in the area. Life expectancy can also vary based on levelof use. When considering replacements, the association should strongly consider replacing with high-efficiency models.Although initial cost may be higher than conventional alternatives, the payback period in energy savings is often a fraction ofthe overall life span of the boiler itself.


Location:Funded?: No.History:Evaluation: No issues were reported with the tanks at the time of the inspection. Plan to replace the tank as needed from theoperating budget.

Cost Source:


Comp #: 2565 Water Storage Tanks - Replace Quantity: (2) 120 Gallon Tanks



Best Case: $ 20,000

Lower allowance


Higher allowance

Location: Mechanical roomFunded?: Yes.History: Installed in 1998Evaluation: There were two (2) AO Smith, glass-lined water storage tanks on the property. Significant amounts of corrosion andrusting noted at the base of the heaters. Based on our observation of corrosion, we assume that the tanks may beexperiencing a leak. Plan to inspect the issue further with a heating specialist. Due to the issues observed, we have shortenedthe remaining useful life. Hot water storage tanks should be inspected for leaks and other problems routinely by servicingvendor or maintenance staff. Small repairs and cleaning should be considered an Operating expense and conducted asneeded. Plan to replace at the approximate interval shown below, ideally coordinated with replacement of the boiler/hot waterheater itself in order to achieve better pricing and minimize system downtime.



Comp #: 2569 Expansion Tank - Replace Quantity: ~ (2) Tanks



Best Case: $ 6,000

Lower allowance

Worst Case: $ 8,000

Higher allowance

Location: Mechanical roomFunded?: Yes.History: Replaced in ~2008Evaluation: There were two (2) 80 gal Elbi expansion tanks on the property. There were no problems reported at the time ofour inspection. Expansion tanks should be inspected for leaks and other problems routinely by servicing vendor ormaintenance staff. Small repairs and cleaning should be considered an Operating expense and conducted as needed. Plan toreplace at the approximate interval shown below, ideally coordinated with replacement of the boiler/hot water heater itself inorder to achieve better pricing and minimize system downtime. Expansion tanks provide room for the water to expand due topressure within the water system. The interior of the tank has a bladder, which expands and contracts to provide the propervolume needed. The tanks are designed to allow the interior bladder to be replaced, instead of replacing the entire tank.



Comp #: 2807 Pool/Patio Furniture - Replace Quantity: ~ (11) Pieces



Best Case: $ 2,500

Lower allowance

Worst Case: $ 3,300

Higher allowance

Pool

Location: Pool areaFunded?: Yes.History:Evaluation: The furniture included: (4) chairs, (3) chaise lounges, two (2) tables and two (2) umbrellas. The furniture wasobserved to be in poor condition. The majority of the furniture was in storage and much older. This furniture should be replacedin the near future. Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Protected storage offurniture when not in use can help to extend useful life. Best practice is to replace all pieces together in order to maintainconsistent style and quality in the pool/recreation area. Costs can vary greatly based on type of pieces selected forreplacement. Funding recommendation shown here is based on replacement with comparable quality pieces.



Comp #: 2809 Pool Deck - Repair - 5% Quantity: ~ 1,900 GSF

Useful Life:5 years


Best Case: $ 1,000

Lower allowance

Worst Case: $ 1,600

Higher allowance

Location: Pool areaFunded?: Yes.History:Evaluation: The pool deck was concrete. Cracking and lifting was noted, most likely due to tree roots. Overall conditions werenoted to be fair to poor. Problem sections should be replaced in the near future. Pool deck should not need to be completelyreplaced at any time in the foreseeable future, but occasional repairs may be required due to sun and weather exposure, poolchemicals, etc. As a routine maintenance expense, inspect the deck closely for trip hazards and other issues, especially closeto the water. An allowance for miscellaneous repairs is recommended below based on our experience with other associations.This component should be re-evaluated during future Reserve Study updates as the association ages.



Comp #: 2815 Pool - Resurface Quantity: (1) 45x20 Pool



Best Case: $ 20,000

Lower allowance


Higher allowance

Comp #: 2821 Coping Stones - Replace Quantity: ~ 130 LF



Best Case: $ 11,000

Lower allowance


Higher allowance

Location: Pool areaFunded?: Yes.History:Evaluation: Reportedly the pool on the property has never been resurfaced. Resurfacing in the near future is recommended.Pool resurfacing will restore the aesthetic quality of the pool while protecting the actual concrete shell of the pool fromdeterioration. While drained for resurfacing, any other repairs to lighting, handrails, stairs, ladders, etc. should be conducted asneeded. This type of project is best suited for slow/offseason to minimize downtime during periods when pool is used heavily.Should be expected at the approximate interval shown below to preserve this important amenity of the association.


Location: Pool areaFunded?: Yes.History:Evaluation: The coping stones were overall in poor condition with sections of the stones cracking and chipping. Small repairsto waterline tile should be done as needed as an Operating expense. This type of project is best suited for slow/offseason tominimize downtime during periods when pool is used heavily. Should be expected at the approximate interval shown below topreserve this important amenity of the association.



Comp #: 2821 Pool Tile - Replace Quantity: ~ 130 LF



Best Case: $ 7,000

Lower allowance


Higher allowance

Comp #: 2823 Pool Cover - Replace Quantity: ~ 900 GSF Cover

Useful Life:8 years


Best Case: $ 2,500

Lower allowance

Worst Case: $ 4,000

Higher allowance

Location: Pool areaFunded?: Yes.History:Evaluation: Reported that the pool tile needs replacement. Small repairs to waterline tile should be done as needed as anOperating expense. Complete re-tiling is warranted at longer intervals to restore the look and feel of the interior finish. Whiledrained for resurfacing, any other repairs to lighting, handrails, stairs, ladders, etc. should be conducted as needed. This typeof project is best suited for slow/offseason to minimize downtime during periods when pool is used heavily. Should be expectedat the approximate interval shown below to preserve this important amenity of the association.


Location: Pool areaFunded?: Yes.History:Evaluation: The pool cover was observed to be sagging with minor ripping noted. The cover appears to be older and should bereplaced in the near future. Inspect regularly and properly store when not in use. Cover can provide cost savings fortemperature differentials, reduce cleaning costs and provide safety. We suggest planning to replace at regular intervals tomaintain proper functionality.



Comp #: 2827 Pool Heater - Replace Quantity: (1) 399k-BTU Heater



Best Case: $ 8,000

Lower allowance


Higher allowance

Comp #: 2831 Pool Filter - Replace Quantity: (1) Filter



Best Case: $ 2,000

Lower allowance

Worst Case: $ 2,500

Higher allowance

Location: Pool roomFunded?: Yes.History: Pool heater was installed in 2006.Evaluation: There is one (1) Raypak, 399,000 BTU heater for the pool. Reportedly the heater was installed in 2006. Poolvendor should inspect heater regularly to ensure proper function, identify any required repairs, etc. Internal components werenot analyzed during our site inspection, but typical signs of age and failure include rusting and corrosion around the burners,worn electrical components, etc. Many associations choose not to heat their pools year-round, which can prolong the life of theheater while reducing energy costs. When replacement models are being evaluated, we recommend considering highefficiency models which may have a higher initial cost but will ultimately be less expensive due to reduced energy usage.


Location: Mechanical roomFunded?: Yes.History: Pool filter was installed in 2010.Evaluation: There is one (1) TR-140 pool filter on the property. The filter was reportedly installed in 2010. Pool vendor shouldinspect regularly for optimal performance and address any repairs or preventive maintenance as needed. Life can varydepending on location, as well as level of use and preventive maintenance.



Comp #: 2835 Pool Pump - Repair/Replace Quantity: ~ (1) Pump

Useful Life:5 years


Best Case: $ 1,000

Lower allowance

Worst Case: $ 1,500

Higher allowance

Location: Mechanical roomFunded?: Yes. Repair / replace using funding from the operating budget.History:Evaluation: There was one (1) pump for the pool. Unit appeared to be older. Expect eventual need for tear down and rebuild(more cost-effective than buying new units) at roughly the interval below. Treat smaller repair / replacement below the reservefunding threshold (< 1% of the annual operating expenses, excluding reserves) as general maintenance item(s) withinoperating budget.

