The Villages at Riverwoods

The Villages at Riverwoods Level 1 Reserve Study

Report Period – 1/1/2012 – 12/31/2012 Client Reference Number Property Type Number of Units Fiscal Year End

12457 Condominium 106 12/31

Date of Property Inspection Prepared By Analysis Method Funding Goal

12/5/2011 Dale Gifford Cash Flow Full Funding

Report prepared on – Wednesday, December 28, 2011

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

Table of Contents

Introduction 

Executive Summary

page 1



Introduction

page 2



General Information and Frequently Asked Questions

page 3 - 4

Reserve Analysis 

Funding Summary

page 5



Percent Funded – Graph

page 6



Component Inventory

page 7 - 8



Significant Components

page 9 - 10



Significant Components – Graph

page 11



Yearly Summary

page 12



Yearly Reserve Contributions – Graph

page 13



Component Funding Information

page 14 - 15



Yearly Cash Flow

page 16



Yearly Reserve Expenditures – Graph

page 17



Projected Reserve Expenditures by Year

page 18 - 20

Component Evaluation 

Component Evaluation

page 1 - 41

Glossary of Commonly used Words and Phrases

Executive Summary – The Villages at Riverwoods - ID # 12457 Information to complete this Reserve Study was gathered by performing an on-site inspection of the common area elements. In addition, we also obtained information by contacting any vendors and/or contractors that have worked on the property recently, as well as communicating with the property representative (BOD Member and/or Community Manager). To the best of our knowledge, the conclusions and recommendations of this report are considered reliable and accurate insofar as the information obtained from these sources. Projected Starting Balance as of 1/1/2012

$20,000

Ideal Reserve Balance as of 1/1/2012

$673,936

Percent Funded as of 1/1/2012 Recommended Reserve Contribution (per month) Minimum Reserve Contribution (per month) Recommended Special Assessment

3% $12,000 $10,950 $0

The Villages at Riverwoods is a 106-unit Condominium community. The community offers the security of an entry system,

fitness room and underground parking as amenities. Construction on the community was completed in 2002.

Currently Programmed Projects Projects programmed to occur this fiscal year (FY2012) include wood trellis and trim repaint (Comp# 202), interior surfaces repaint (Comp# 216), metal railing repaint, exterior (Comp# 219), balcony railing repaint (Comp# 290), asphalt seal coat (Comp# 402), bench replace (Comp# 1307), and asphalt path seal and repair (Comp# 1311). We have programmed an estimated $112,843 in reserve expenditures toward the completion of these projects. (See page 18)

Major Reserve Expenditures The first major reserve expenditure is programmed to occur in fiscal year 2014. Projects programmed to occur in fiscal year 2014 include stucco surfaces repaint (Comp# 201), metal railing repaint, interior (Comp# 219), phone entry and access control system replace (Comp# 506), walkways reseal, buildings 500 and 600 (Comp# 603), air tester replace (Comp# 790), awning replace (Comp# 804), security camera system replace (Comp# 903), cardio equipment replace (Comp# 1407), and carpeting replace (Comp# 1501). We have programmed approximately $265,172 in reserve funds or approximately 148% of fiscal year 2014’s recommended starting balance towards the completion of these projects (see pages 12 & 18). Failure to follow the recommend reserve fund contributions may result in a lack of funds to complete these projects.

Significant Reserve Projects The association’s significant reserve projects include stucco surfaces repaint (Comp# 201), walkways reseal, buildings 500 and 600 (Comp# 603), pitched roof comp shingle replace (Comp# 105), and flat roof single-ply membrane replace (Comp# 104). The fiscal significance of these components is approximately 15%, 9%, 9%, and 7% respectively (see page 8). A component’s significance is calculated by dividing its replacement cost by its useful life. In this way, not only is a component’s replacement cost considered but also the frequency of occurrence. These components most significantly contribute to the total monthly reserve contribution. As these components have a high level of fiscal significance the association should properly maintain them to ensure they reach their full useful lives.

Reserve Funding In comparing the projected starting reserve balance of $20,000 versus the ideal reserve balance of $673,936 we find the association’s reserve fund to be approximately 3% funded. This indicates a poor reserve fund position. In order to continue to strengthen the account fund, we suggest adopting a monthly reserve contribution of $12,000 ($113.21/unit) per month. We have also included a minimum reserve contribution of $10,950 ($103.30/unit) per month. If the contribution falls below this rate, then the reserve fund may fall into a situation where special assessments, deferred maintenance, and lower property values are likely at some point in the future.

1

Introduction Reserve Study Purpose The purpose of this Reserve Study is to provide an educated estimate of the necessary reserve balance and allocation. The detailed schedules will serve as an advanced warning that major projects will need to be addressed in the future. This will allow the Board of Directors to have ample time to obtain competitive estimates and bids that will result in cost savings to the individual homeowners. It will also ensure the physical well-being of the property and ultimately enhance each owner’s investment, while limiting the possibility of unexpected major projects that may lead to special assessments.

Preparer’s Credentials Mr. Gifford has been working in the community association industry for the last 9 years. Prior to taking a position, as the Regional Project Manager covering the Utah region, at Complex Solutions, he worked in community association management in Utah. While in community association management his positions included, Maintenance Supervisor, Senior Portfolio Manager and Vice President of Community Management. His work in community association management gave him extensive experience with; budget creation, reserves and reserve budgeting, community inspections and analyzing common area components. 

Reserve Specialist (RS) designation from Community Associations Institute (CAI)



Personally has prepared over 150 reserve studies in Salt Lake City Utah and surrounding areas



Bachelor of Science in Chemistry from Emporia State University



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



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



Professional Community Association Manager® (PCAM®) designation from Community Associations Institute (CAI)



Active member and former Board member and chapter President of the Utah Chapter of Community Associations Institute (UCCAI)



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

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

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

2

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

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

How often do we update or review the Reserve Study? Unfortunately, there is a misconception that these reports are good for an extended period of time since the report has projections for the next 30 years. Just like any major line item in the budget, the Reserve Study should be reviewed each year before the budget is established. Invariably, some assumptions have to be made during the compilation of this analysis. Anticipated events may not materialize and unpredictable circumstances could occur. Deterioration rates and repair/replacement costs will vary from causes that are unforeseen. Earned interest rates may vary from year to year. These variations could alter the content of the Reserve Study. Therefore, this analysis should be reviewed annually, and a property inspection should be conducted at least once every three years.

What is a “Reserve Component” versus an “Operating Component”? A “Reserve” component is an item that is the responsibility of the association to maintain, has a limited useful life (for Reserve purposes less than 30 years), predictable remaining useful life, typically occurs on a cyclical basis that exceeds 1 year, and costs above a minimum threshold amount. An “Operating” expense is typically a fixed expense that occurs on an annual basis as well as general repairs and maintenance.

What are the GREY areas of “maintenance” items that are often seen in a Reserve Study? One of the most popular questions revolves around major “maintenance” items, such as painting the buildings or seal coating the asphalt. You may hear from your accountant that since painting or seal coating is not replacing a “capital” item, then it cannot be considered a Reserve issue. However, it is the opinion of several major Reserve Study providers that these items are considered to be major expenses that occur on a cyclical basis. Therefore, it makes it very difficult to ignore a major expense that meets the criteria to be considered a reserve component. Once explained in this context, many accountants tend to agree and will include any expenses, such as these examples, as a reserve component.

What happens during the Site Visit? The Site Visit was conducted of the common areas as reported by client. From our site visit we identified those common area components that we have determined require reserve funding. Based on information provided by the client, client’s vendors, and our assessment of the components we have developed a component list and life and cost estimates. Estimated life expectancies and life cycles are based upon conditions that were readily accessible and visible at the time of the inspection. We did not destroy any landscape work, building walls, or perform any methods of intrusive investigation during the inspection. In these cases, information may have been obtained by contacting the contractor or vendor that has worked on the property. We have assumed any and all components have been properly built and will reach normal, typical life expectancies. In general a reserve study is not intended to identify or fund for construction defects. We did not and will not look for or identify construction defects during our site visit. 3

What is the Financial Analysis? We projected the starting balance by taking the most recent balance statement, adding expected reserve contributions for the rest of the fiscal year, and subtracting any pending projects that will be paid for before the end of the current fiscal year. We compared this number to the ideal reserve balance and arrived at the percent funded level.

Measures of strength are as follows: 0% - 30% Funded is generally considered to be a “weak” financial position. Associations that fall into this category are subject to special assessments and deferred maintenance, which could lead to lower property values. If the association is in this position, actions should be taken to improve the financial strength of the reserve fund. 31% - 69% Funded is generally considered a “fair” financial position. The majority of associations fall into this category. While this doesn’t represent financial strength and stability, the likelihood of special assessments and deferred maintenance is diminished. Effort should be taken to continue strengthening the financial position of the reserve fund. 70% - 99% Funded is generally considered a “strong” financial position. This indicates financial strength of a reserve fund and every attempt to maintain this level should be a goal of the association. 100% Funded is considered an “ideal” financial position. This means that the association has the exact amount of funds in the reserve account. Disclosures: We will identify only those major components with a useful life of 30-years or less that generally meet industry standards for reserve funding. The projected life expectancy of the major components and the funding needs of the reserves of the association are based upon the association performing appropriate routine and preventative maintenance for each major component. Failure to perform such maintenance can negatively impact the remaining useful life of the major components and dramatically increase the funding needs of the reserves of the association. This Reserve Study assumes that all construction assemblies and components identified herein are built properly and are free from defects in materials and/or workmanship. Defects can lead to reduced useful life and premature failure. It was not the intent of this Reserve Study to inspect for or to identify defects. If defects exist, repairs should be made so that the construction components and assemblies at the community reach the full and expected useful lives. Information provided to the preparer of a reserve study by an official representative of the association regarding financial, historical, physical, quantitative or reserve project issues will be deemed reliable by the preparer. A reserve study will be a reflection of information provided to the preparer of the reserve study. The total of actual or projected reserves required as presented in the reserve study is based upon information provided that was not audited. A reserve study is not intended to be used to perform an audit, an analysis of quality, a forensic study or a background check of historical records. An on-site inspection conducted in conjunction with a reserve study should not be deemed to be a project audit or quality inspection. The results of this study are based on the independent opinion of the preparer and his experience and research during the course of his career in preparing Reserve Studies. In addition the opinions of experts on certain components have been gathered through research within their industry and with client’s actual vendors. There is no implied warrantee or guarantee regarding our life and cost estimates/predictions. There is no implied warrantee or guarantee in any of our work product. Our results and findings will vary from another preparer’s results and findings. A Reserve Study is necessarily a work in progress and subsequent Reserve Studies will vary from prior studies. Update Reserve Studies: Level II Studies: Quantities of major components as reported in previous reserve studies are deemed to be accurate and reliable. The reserve study relies upon the validity of previous reserve studies. Level III Studies: In addition to the above we have not visited the property when completing a Level III “Financial Update” study. Therefore we have not verified the current condition of the common area components. . Insurance: We carry general and professional liability insurance as well as workers’ compensation insurance. Actual or Perceived Conflicts of Interest: There are no potential actual or perceived conflicts of interest that we are aware of. Inflation and Interest Rates: The after tax interest rate used in the financial analysis may or may not be based on the clients reported after tax interest rate. If it is we have not verified or audited the reported rate. The interest rate may also be based on an amount we believe appropriate given the 30-year horizon of this study and may or may not reflect current or historical inflation rates.

4

Funding Summary Beginning Assumptions # of units Fiscal Year End Budgeted Monthly Reserve Allocation Projected Starting Reserve Balance Ideal Starting Reserve Balance

106 31-Dec $2,917 $20,000 $673,936

Economic Assumptions Projected Inflation Rate Reported After-Tax Interest Rate

3.00% 1.00%

Current Reserve Status Current Balance as a % of Ideal Balance

3%

Recommendations Recommended Monthly Reserve Allocation Per Unit Future Annual Increases For number of years: Increases thereafter:

$12,000 $113.21 3.00% 5 1.00%

Minimum Recommended Monthly Reserve Allocation Per Unit Future Annual Increases For number of years: Increases thereafter:

$10,950 $103.30 3.00% 5 1.00%

Changes From Prior Year Recommended Increase to Reserve Allocation as Percentage

$9,083 311%

Minimum Recommended Increase to Reserve Allocation as Percentage

$8,033 275%

5

Recommended

6

Current

Minimum

2042

2040

2038

2036

2034

2032

2030

2028

2026

2024

2022

2020

2018

2016

2014

2012

% Level of Funding

Percent Funded - Graph

120%

100%

80%

60%

40%

20%

0%

Component Inventory Category

ID #

Useful Remaining Life Useful Life Best Cost (yrs.) (yrs.)

Component Name

Roofing

104 105 120

Flat Roof - Single-ply Membrane - Replac 20 Pitched Roof - Comp Shingle - Replace 25 Rain Gutters/Downspouts - Replace 25

Painted Surfaces

201 202 204 207 212 215 216 219 219 290

Stucco Surfaces - Repaint Wood Trellis & Trim - Repaint Unit & Other Door - Repaint Metal Fencing - Repaint Metal Surfaces - Repaint Cement Fiberboard Siding - Repaint Interior Surfaces - Repaint Metal Railing - Exterior - Repaint Metal Railing - Interior - Repaint Balcony Railing - Repaint

Drive Materials

401 402 403

Asphalt - Overlay Asphalt - Seal Coat Concrete - Repair/Replace

Property Access Decking

Worst Cost

10 15 15

$111,900 $171,763 $32,468

$139,875 $196,300 $39,683

12 5 5 5 15 7 10 5 10 5

2 0 1 1 5 3 0 0 2 0

$136,103 $18,550 $15,375 $792 $2,175 $19,819 $33,739 $20,090 $5,390 $11,250

$183,443 $29,150 $25,625 $936 $2,900 $33,031 $51,733 $25,830 $6,930 $13,750

25 5 10

15 0 5

$64,125 $5,558 $10,000

$85,500 $8,123 $15,000

502 506

Garage Door - Replace 20 Phone Entry & Access Control System - 12

10 2

$3,600 $8,000

$4,400 $10,000

603 603

Walkways - Bldg 500 & 600 - Reseal Walkways - Bldg 500 3rd Flr - Reseal

6 6

2 5

$44,550 $13,200

$50,625 $15,000

Mechanical Equip. 707 709 717 790

Elevator - Modernize Elevator Cab - Remodel Wall Cabinet Heater - Replace Air Tester - Replace

30 15 20 10

20 5 10 2

$120,000 $7,500 $7,500 $2,400

$180,000 $10,500 $10,500 $3,200

Prop. Identification 803 804

Mailboxes - Replace Awning - Replace

20 10

10 2

$8,400 $2,125

$9,600 $2,975

Life / Safety

901 903

Fire Protection System - Replace Security Camera System - Replace

20 10

10 2

$16,000 $6,000

$24,000 $8,000

Recreation Equip.

1307 Bench - Replace 1311 Asphalt Path - Seal/Repair

10 6

0 0

$1,200 $1,985

$1,800 $2,930

Interiors

1405 1406 1407 1413

10 15 10 18

4 5 2 8

$3,000 $7,000 $10,500 $1,000

$5,000 $8,000 $13,500 $1,500

Flooring

1501 Carpeting - Replace 1503 Tile - Replace

8 30

2 20

$2,888 $10,550

$3,273 $12,660

Light Fixtures

1601 Interior Light - Replace 1602 Exterior Light - Replace 1603 Garage Light - Replace

18 16 20

8 6 10

$6,750 $24,800 $24,900

$9,000 $37,200 $33,200

Furniture - Replace Fitness Equipment - Replace Cardio Equipment - Replace Restroom - Remodel

7

Category Light Fixtures

ID #

Useful Remaining Life Useful Life Best Cost (yrs.) (yrs.)

Component Name

1604 Pole Light - Replace 1605 Bollard Light - Replace

16 16

8

6 6

$13,500 $1,600

Worst Cost $18,900 $2,400

Significant Components

ID # 104 105 120 201 202 204 207 212 215 216 219 219 290 401 402 403 502 506 603 603 707 709 717 790 803 804 901 903 1307 1311 1405 1406 1407 1413 1501 1503 1601 1602 1603

Component Name Flat Roof - Single-ply Membrane - Repla Pitched Roof - Comp Shingle - Replace Rain Gutters/Downspouts - Replace Stucco Surfaces - Repaint Wood Trellis & Trim - Repaint Unit & Other Door - Repaint Metal Fencing - Repaint Metal Surfaces - Repaint Cement Fiberboard Siding - Repaint Interior Surfaces - Repaint Metal Railing - Exterior - Repaint Metal Railing - Interior - Repaint Balcony Railing - Repaint Asphalt - Overlay Asphalt - Seal Coat Concrete - Repair/Replace Garage Door - Replace Phone Entry & Access Control System Walkways - Bldg 500 & 600 - Reseal Walkways - Bldg 500 3rd Flr - Reseal Elevator - Modernize Elevator Cab - Remodel Wall Cabinet Heater - Replace Air Tester - Replace Mailboxes - Replace Awning - Replace Fire Protection System - Replace Security Camera System - Replace Bench - Replace Asphalt Path - Seal/Repair Furniture - Replace q p p Fitness Equipment - Replace Cardio Equipment - Replace Restroom - Remodel Carpeting - Replace Tile - Replace Interior Light - Replace Exterior Light - Replace Garage Light - Replace

Useful Remaining Life Useful Life (yrs ) (yrs.) (yrs ) (yrs.) 20 25 25 12 5 5 5 15 7 10 5 10 5 25 5 10 20 12 6 6 30 15 20 10 20 10 20 10 10 6 10 15 10 18 8 30 18 16 20

10 15 15 2 0 1 1 5 3 0 0 2 0 15 0 5 10 2 2 5 20 5 10 2 10 2 10 2 0 0 4 5 2 8 2 20 8 6 10

9

Average Current Cost $125,888 $184,031 $36,075 $159,773 $23,850 $20 500 $20,500 $864 $2,538 $26,425 $42,736 $22,960 $6,160 $12,500 $74,813 $6,840 $12,500 $4,000 $9,000 $47,588 $14,100 $150,000 $9,000 $9,000 $2,800 $9,000 $2 550 $2,550 $20,000 $7,000 $1,500 $2,457 $4,000 $7,500 $12,000 $1,250 $3,080 $11,605 $7,875 $31,000 $29 050 $29,050

Significance: (Curr Cost/UL) A $ As

A % As

$6,294 $7,361 $1,443 $13,314 $4,770 $4 100 $4,100 $173 $169 $3,775 $4,274 $4,592 $616 $2,500 $2,993 $1,368 $1,250 $200 $750 $7,931 $2,350 $5,000 $600 $450 $280 $450 $255 $1,000 $700 $150 $410 $400 $500 $1,200 $69 $385 $387 $438 $1,938 $1 453 $1,453

7.1998% 8.4202% 1.6506% 15.2296% 5.4562% 4 6898% 4.6898% 0.1977% 0.1935% 4.3180% 4.8883% 5.2526% 0.7046% 2.8596% 3.4230% 1.5648% 1.4298% 0.2288% 0.8579% 9.0722% 2.6880% 5.7192% 0.6863% 0.5147% 0.3203% 0.5147% 0 2917% 0.2917% 1.1438% 0.8007% 0.1716% 0.4684% 0.4575% 0.5719% 1.3726% 0.0794% 0.4404% 0.4425% 0.5004% 2.2162% 1 6614% 1.6614%

ID #

Component Name

1604 Pole Light - Replace 1605 Bollard Light - Replace

Useful Remaining Life Useful Life (yrs.) (yrs.) 16 16

6 6

10

Average Current Cost $16,200 $2,000

Significance: (Curr Cost/UL) As $

As %

$1,013 $125

1.1581% 0.1430%

Significant Components - Graph

201 Stucco Surfaces - Repaint 603 Walkways - Bldg 500 & 600 - Reseal 105 Pitched Roof - Comp Shingle - Replace 104 Flat Roof - Single-ply Membrane - Replace All Other

15% 9% 60%

9% 7%

ID # 201 603 105 104 All Other

Component Name Stucco Surfaces - Repaint Walkways - Bldg 500 & 600 - Reseal Pitched Roof - Comp Shingle - Replace Flat Roof - Single-ply Membrane - Rep See Expanded Table For Breakdown

Useful Life (yrs ) (yrs.)

Remaining Useful Life (yrs ) (yrs.)

Average Current Cost

12 6 25 20

2 2 15 10

$159,773 $47,588 $184,031 $125,888

11

Significance: (Curr Cost/UL) As $ As % $13,314 $7,931 $7,361 $6,294 $52,523

15% 9% 9% 7% 60%

Yearly Summary

Year

Fully Funded Balance

Starting Reserve Balance

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041

$673,936 $667,973 $758,096 $603,242 $689,994 $807,405 $802,536 $844,326 $980,402 $1,049,886 $1,198,873 $889,606 $990 377 $990,377 $1,100,060 $1,265,298 $1,096,148 $669,854 $799,137 $902,953 $1 073 631 $1,073,631 $1,263,738 $834,360 $985,968 $1,030,772 $1,210,748 $ , , $1,361,269 $1,421,029 $1,102,690 $1,335,790 $1,581,884

$20,000 $51,515 $178,982 $67,813 $197,617 $357,965 $399,092 $484,924 $660,941 $768,236 $950,540 $681,479 $817 083 $817,083 $957,929 $1,149,227 $1,009,276 $619,811 $778,762 $908,319 $1 098 913 $1,098,913 $1,302,805 $896,023 $1,061,810 $1,117,672 $1,301,616 $ , , $1,450,203 $1,503,985 $1,184,155 $1,404,882 $1,629,915

% Reserve Funded Contributions 3% 8% 24% 11% 29% 44% 50% 57% 67% 73% 79% 77% 83% 87% 91% 92% 93% 97% 101% 102% 103% 107% 108% 108% 108% 107% 106% 107% 105% 103%

$144,000 $148,320 $152,770 $157,353 $162,073 $166,935 $168,605 $170,291 $171,994 $173,714 $175,451 $177,205 $178 977 $178,977 $180,767 $182,575 $184,401 $186,245 $188,107 $189,988 $191 888 $191,888 $193,807 $195,745 $197,702 $199,679 $201,676 $ , $203,693 $205,730 $207,787 $209,865 $211,964

12

Interest Income

Reserve Expenses

Ending Reserve Balance

$357 $1,152 $1,233 $1,327 $2,777 $3,784 $4,418 $5,727 $7,143 $8,590 $8,157 $7,490 $8 871 $8,871 $10,531 $10,788 $8,142 $6,990 $8,432 $10,032 $12 003 $12,003 $10,989 $9,785 $10,893 $12,091 $13,753 $ , $14,765 $13,435 $12,940 $15,168 $17,272

$112,843 $22,005 $265,172 $28,875 $4,502 $129,592 $87,191 $0 $71,842 $0 $452,669 $49,090 $47 003 $47,003 $0 $333,314 $582,008 $34,283 $66,982 $9,426 $0 $611,578 $39,743 $152,733 $27,828 $66,842 $ , $164,676 $538,995 $0 $0 $33,228

$51,515 $178,982 $67,813 $197,617 $357,965 $399,092 $484,924 $660,941 $768,236 $950,540 $681,479 $817,083 $957 929 $957,929 $1,149,227 $1,009,276 $619,811 $778,762 $908,319 $1,098,913 $1 302 805 $1,302,805 $896,023 $1,061,810 $1,117,672 $1,301,616 $1,450,203 $ , , $1,503,985 $1,184,155 $1,404,882 $1,629,915 $1,825,923

Reserve Contributions - Graph

Monthly Reserve Contributions $20,000 $18,000 $16 000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000

Year

Recommended

Current

13

Minimum

2042

2040

2038

2036

2034

2032

2030

2028

2026

2024

2022

2020

2018

2016

2014

2012

$ $-

ID

Component Name

UL U

RUL R

Component Funding Information Quantity y

104 105 120 201 202 204 207 212 215 216 219 219 290 401 402 403 502 506 603 603 707 709 717 790 803 804 901 903 1307 1311

Flat Roof - Single-ply Membrane - Replace Pitched Roof - Comp Shingle - Replace Rain Gutters/Downspouts - Replace Stucco Surfaces - Repaint Wood Trellis & Trim - Repaint Unit & Other Door - Repaint Metal Fencing - Repaint Metal Surfaces - Repaint Cement Fiberboard Siding - Repaint Interior Surfaces S f - Repaint Metal Railing - Exterior - Repaint Metal Railing - Interior - Repaint Balcony Railing - Repaint Asphalt - Overlay A h lt - S Asphalt Seall C Coatt Concrete - Repair/Replace Garage Door - Replace Phone Entry & Access Control System - Repl Walkways - Bldg 500 & 600 - Reseal Walkways - Bldg 500 3rd Flr - Reseal Elevator - Modernize Elevator Cab - Remodel Wall Cabinet Heater - Replace Air Tester - Replace Mailboxes - Replace Awning - Replace Fire Protection System - Replace Security Camera System - Replace Bench - Replace Asphalt Path - Seal/Repair

20 25 25 12 5 5 5 15 7 10 5 10 5 25 5 10 20 12 6 6 30 15 20 10 20 10 20 10 10 6

10 15 15 2 0 1 1 5 3 0 0 2 0 15 0 5 10 2 2 5 20 5 10 2 10 2 10 2 0 0

Approx 55,950 Sq.ft. Approx 49,075 Sq.ft. Approx 7,215 Linear ft. Approx 118,350 Sq.ft. Approx 21,725 Sq.ft. (205) Doors Approx 72 Linear ft. Approx 2,900 Sq.ft. Approx 26,425 Sq.ft. Approx 44,985 98 Sq.ft. S f Approx 2,870 Linear ft. Approx 770 Linear ft. Approx 1,250 Linear ft. Approx 42,750 Sq.ft. A Approx 42,750 42 750 S Sq.ft. ft Extensive Sq.ft. (4) Garage Doors (2) Call Boxes Approx 20,250 Sq.ft. Approx 6 6,000 000 Sq Sq.ft. ft (3) Elevators (3) Elevator Cabs (6) Heaters (4) Air Testers (12) Clusters Approx 85 Linear ft. (8) Buildings (1) 12-camera System (3) Benches Approx 9,450

14

Average Current Cost

Ideal Balance

Current Fund Balance

Monthly y

$125,888 $184,031 $36,075 $159,773 $23,850 $20,500 $864 $2,538 $26,425 $42,736 $ 2 36 $22,960 $6,160 $12,500 $74,813 $6 840 $6,840 $12,500 $4,000 $9,000 $47,588 $14 100 $14,100 $150,000 $9,000 $9,000 $2,800 $9 000 $9,000 $2,550 $20,000 $7,000 $1,500 $2,457

$62,944 $73,613 $14,430 $133,144 $23,850 $16,400 $691 $1,692 $15,100 $42,736 $ 2 36 $22,960 $4,928 $12,500 $29,925 $6 840 $6,840 $6,250 $2,000 $7,500 $31,725 $2 350 $2,350 $50,000 $6,000 $4,500 $2,240 $4 500 $4,500 $2,040 $10,000 $5,600 $1,500 $2,457

$0 $0 $0 $0 $20,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$863.98 $1,010.42 $198.07 $1,827.56 $654.74 $562.77 $23.72 $23.22 $518.16 $586.60 $ 86 60 $630.31 $84.55 $343.15 $410.76 $187 77 $187.77 $171.58 $27.45 $102.95 $1,088.66 $322 57 $322.57 $686.31 $82.36 $61.77 $38.43 $61 77 $61.77 $35.00 $137.26 $96.08 $20.59 $56.21

1405 1406 1407 1413 1501 1503 60 1601 1602 1603 1604 1605

Furniture - Replace Fitness Equipment - Replace Cardio Equipment - Replace Restroom - Remodel Carpeting - Replace Tile - Replace e o Light g - Replace ep ace Interior Exterior Light - Replace Garage Light - Replace Pole Light - Replace Bollard Light - Replace

RUL

Component Name

UL

ID

10 4 15 5 10 2 18 8 8 2 30 20 18 8 8 16 6 20 10 16 6 16 6

Quantity (27) Pieces (3) Pieces (6) Pieces (1) Restroom Approx 770 Sq.ft. Approx 1,055 Sq.ft. ()90 Lights g s (248) Lights (83) Lights (54) Pole Lights (4) Lights

Average Current Cost

Ideal Balance

Current Fund Balance

Monthly

$4,000 $7,500 $12,000 $1,250 $3,080 $11,605 $ $7,875 ,8 5 $31,000 $29,050 $16,200 $2,000 $2,770,860

$2,400 $5,000 $9,600 $694 $2,310 $3,868 $4,375 $ ,3 5 $19,375 $14,525 $10,125 $1,250 $673,936

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20,000

$54.90 $68.63 $164.71 $9.53 $52.85 $53.10 $60.05 $60 05 $265.95 $199.37 $138.98 $17.16 $12,000.00

Current Fund Balance as a percentage of Ideal Balance:

15

3%

Yearly Cash Flow Year Starting Balance Reserve Income Interest Earnings S Special Assessments Funds Available Reserve Expenditures Ending Balance

2012 $20,000 $144,000 $357 $0 $ $164,357 $112,843 $51,515

2013 $51,515 $148,320 $1,152 $0 $ $200,987 $22,005 $178,982

2014 $178,982 $152,770 $1,233 $0 $ $332,985 $265,172 $67,813

2015 $67,813 $157,353 $1,327 $0 $ $226,492 $28,875 $197,617

2016 $197,617 $162,073 $2,777 $0 $ $362,467 $4,502 $357,965

Year Starting Balance Reserve Income Interest Earnings Special Assessments Funds Available Reserve Expenditures Ending Balance

2017 $357,965 $166,935 $3,784 $0 $528,684 $129,592 $399,092

2018 $399,092 $168,605 $4,418 $0 $572,115 $87,191 $484,924

2019 $484,924 $170,291 $5,727 $0 $660,941 $0 $660,941

2020 $660,941 $171,994 $7,143 $0 $840,078 $71,842 $768,236

2021 $768,236 $173,714 $8,590 $0 $950,540 $0 $950,540

Year Starting Balance Reserve Income Interest Earnings Special Assessments Funds Available Reserve Expenditures Ending Balance

2022 $950,540 $175,451 $8,157 $0 $1,134,148 $452,669 $681,479

2023 $681,479 $177,205 $7,490 $0 $866,174 $49,090 $817,083

2024 $817,083 $178,977 $8,871 $0 $1,004,932 $47,003 $957,929

2025 $957,929 $180,767 $10,531 $0 $1,149,227 $0 $1,149,227

2026 $1,149,227 $182,575 $10,788 $0 $1,342,590 $333,314 $1,009,276

Year Starting Balance Reserve Income Interest Earnings Special Assessments Funds Available Reserve Expenditures Ending Balance

2027 $1,009,276 $184,401 $8,142 $0 $1,201,819 $582,008 $619,811

2028 $619,811 $186,245 $6,990 $0 $813,045 $34,283 $778,762

2029 $778,762 $188,107 $8,432 $0 $975,301 $66,982 $908,319

2030 $908,319 $189,988 $10,032 $0 $1,108,339 $9,426 $1,098,913

2031 $1,098,913 $191,888 $12,003 $0 $1,302,805 $0 $1,302,805

Year Starting Balance Reserve Income Interest Earnings Special Assessments Funds Available Reserve Expenditures Ending Balance

2032 $1,302,805 $193,807 $10,989 $0 $1,507,601 $611,578 $896 023 $896,023

2033 $896,023 $195,745 $9,785 $0 $1,101,553 $39,743 $1 061 810 $1,061,810

2034 $1,061,810 $197,702 $10,893 $0 $1,270,405 $152,733 $1 117 672 $1,117,672

2035 $1,117,672 $199,679 $12,091 $0 $1,329,443 $27,828 $1 301 616 $1,301,616

2036 $1,301,616 $201,676 $13,753 $0 $1,517,045 $66,842 $1 450 203 $1,450,203

Year Starting Balance Reserve Income Interest Earnings Special Assessments Funds Available R Reserve Expenditures E dit Ending Balance

2037 $1,450,203 $203,693 $14,765 $0 $1,668,660 $164 676 $164,676 $1,503,985

2038 $1,503,985 $205,730 $13,435 $0 $1,723,150 $538 995 $538,995 $1,184,155

2039 $1,184,155 $207,787 $12,940 $0 $1,404,882 $0 $1,404,882

2040 $1,404,882 $209,865 $15,168 $0 $1,629,915 $0 $1,629,915

2041 $1,629,915 $211,964 $17,272 $0 $1,859,150 $33 228 $33,228 $1,825,923

16

Yearly Reserve Expenditures - Graph

$800,000

$700,000

$600,000

$400,000

$300,000

$200,000

$100,000

Year

17

2042

2040

2038

2036

2034

2032

2030

2028

2026

2024

2022

2020

2018

2016

2014

$2012

Annual Totals

$500,000

Projected Reserve Expenditures by Year Projected Cost

Year

ID #

Component Name

2012

202 216 219 290 402 1307 1311 204 207 201 219 506 603 790 804 903 1407 1501 215 1405 202 212 219 290 402 403 603 709 1406 204 207 1311 1602 1604 1605

Wood Trellis & Trim - Repaint Interior Surfaces - Repaint Metal Railing - Exterior - Repaint Balcony Railing - Repaint Asphalt - Seal Coat Bench - Replace Asphalt Path - Seal/Repair Unit & Other Door - Repaint Metal Fencing - Repaint Stucco Surfaces - Repaint Metal Railing - Interior - Repaint Phone Entry & Access Control System - R Walkways - Bldg 500 & 600 - Reseal Air Tester - Replace Awning - Replace Security Camera System - Replace Cardio Equipment - Replace Carpeting - Replace Cement Fiberboard Siding - Repaint Furniture - Replace Wood Trellis & Trim - Repaint Metal Surfaces - Repaint Metal Railing - Exterior - Repaint Balcony Railing - Repaint Asphalt - Seal Coat Concrete - Repair/Replace Walkways - Bldg 500 3rd Flr - Reseal Elevator Cab - Remodel Fitness Equipment - Replace Unit & Other Door - Repaint Metal Fencing - Repaint Asphalt Path - Seal/Repair Exterior Light - Replace Pole Light - Replace Bollard Light - Replace No Expenditures Projected Walkways - Bldg 500 & 600 - Reseal Restroom - Remodel Interior Light - Replace No Expenditures Projected Flat Roof - Single-ply g p y Membrane - Replace p Wood Trellis & Trim - Repaint Cement Fiberboard Siding - Repaint

2013 2014

2015 2016 2017

2018

2019 2020

2021 2022

603 1413 1601 104 202 215

18

$23,850 $42,736 $ $22,960 $12,500 $6,840 $1,500 $2,457 $21,115 $890 $169,503 $6,535 $9,548 $50,486 $2,971 $2 705 $2,705 $7,426 $12,731 $3,268 $28,875 $4,502 $27,649 $2,942 $26,617 $14,491 $7,929 $14,491 $16,346 $10,433 $8,695 $24,478 $1,032 $2,934 $37,016 $19,344 $2 388 $2,388 $60,282 $1,583 $9,976 $169,182 $32,052 $35,513

Total Per Annum

$112,843 $22,005

$265,172 $28,875 $4,502

$129,592

$87,191 $87 191 $0

$71,842 $0

Year

2023

2024

2025 2026

2027

2028 2029 2030 2031 2032

Comp ID Component Name 216 219 290 402 502 717 803 901 1307 1501 1603 204 207 603 219 790 804 903 1311 1407 201 506 603 1405 105 120 202 219 290 401 402 403 204 207 215 603 1311 1501 202 212 216 219 290 402 603

Projected Cost

Interior Surfaces - Repaint Metal Railing - Exterior - Repaint Balcony Railing - Repaint Asphalt - Seal Coat Garage Door - Replace Wall Cabinet Heater - Replace Mailboxes - Replace Fire Protection System - Replace Bench - Replace Carpeting - Replace Garage Light - Replace U it & Oth i t Unit Other D Door - R Repaint Metal Fencing - Repaint Walkways - Bldg 500 3rd Flr - Reseal Metal Railing - Interior - Repaint Air Tester - Replace Awning - Replace Securityy Camera System - Replace y p Asphalt Path - Seal/Repair Cardio Equipment - Replace No Expenditures Projected Stucco Surfaces - Repaint Phone Entry & Access Control System - R Walkways - Bldg 500 & 600 - Reseal Furniture - Replace Pitched Roof - Comp Shingle - Replace Rain Gutters/Downspouts - Replace Wood Trellis & Trim - Repaint Metal Railing - Exterior - Repaint Balcony Railing - Repaint Asphalt - Overlay A h lt - Seal Asphalt S l Coat C t Concrete - Repair/Replace Unit & Other Door - Repaint Metal Fencing - Repaint Cement Fiberboard Siding - Repaint Walkways - Bldg 500 3rd Flr - Reseal Asphalt Path - Seal/Repair Carpeting - Replace No Expenditures Projected Wood Trellis & Trim - Repaint Metal Surfaces - Repaint Interior Surfaces - Repaint Metal Railing - Exterior - Repaint Balcony Railing - Repaint Asphalt - Seal Coat Walkways - Bldg 500 & 600 - Reseal 19

$57,433 $30,856 $16,799 $9,192 $5 376 $5,376 $12,095 $12,095 $26,878 $2,016 $4,139 $39,041 $28,377 $28 377 $1,196 $19,518 $8,783 $3,992 $3,636 $9,980 $ , $3,503 $17,109 $241,670 $13,613 $71,980 $6 050 $6,050 $286,715 $56,204 $37,158 $35,771 $19,475 $116,555 $10,656 $10 656 $19,475 $32,896 $1,386 $43,676 $23,305 $4,183 $5,243 $43,076 $4,583 $77,186 $41,468 $22 576 $22,576 $12,354 $85,948

Total Per Annum

$452,669

$49,090

$47,003 $0

$333 314 $333,314

$582,008 $34,283 $66,982 $9,426 $0

Year

2033 2034

2035 2036

2037

2038

2039 2040 2041 2042

Comp ID Component Name 707 709 1307 1406 1503 204 207 219 790 804 903 1407 1602 1604 1605 603 215 1311 1405 202 219 290 402 403 201 204 207 506 603 1413 1501 1601

603 104 202 216 219 290 402 502 717 803 901 1307 1311 1603

Projected Cost

Elevator - Modernize Elevator Cab - Remodel Bench - Replace Fitness Equipment - Replace Tile - Replace Unit & Other Door - Repaint Metal Fencing - Repaint Metal Railing - Interior - Repaint Air Tester - Replace Awning - Replace Security Camera System - Replace C di Equipment E i t - Replace R l Cardio Exterior Light - Replace Pole Light - Replace Bollard Light - Replace Walkways - Bldg 500 3rd Flr - Reseal Cement Fiberboard Siding - Repaint Asphalt Path - Seal/Repair Furniture - Replace Wood Trellis & Trim - Repaint Metal Railing - Exterior - Repaint Balcony Railing - Repaint Asphalt - Seal Coat Concrete - Repair/Replace Stucco Surfaces - Repaint Unit & Other Door - Repaint Metal Fencing - Repaint Phone Entry & Access Control System - R Walkways - Bldg 500 & 600 - Reseal Restroom - Remodel Carpeting - Replace Interior I t i Light Li ht - Replace R l No Expenditures Projected No Expenditures Projected Walkways - Bldg 500 3rd Flr - Reseal Flat Roof - Single-ply Membrane - Replace Wood Trellis & Trim - Repaint Interior Surfaces - Repaint Metal Railing - Exterior - Repaint Balcony Railing - Repaint Asphalt - Seal Coat Garage Door - Replace Wall Cabinet Heater - Replace Mailboxes - Replace Fire Protection System - Replace Bench - Replace Asphalt Path - Seal/Repair Garage Light - Replace 20

$270,917 $16,255 $2,709 $13,546 $20 960 $20,960 $38,136 $1,607 $11,803 $5,365 $4,886 $13,413 $22,993 $22 993 $59,399 $31,041 $3,832 $27,828 $53,717 $4,995 $8,131 $49,937 $48,073 $26,172 $14,321 $26,172 $344 564 $344,564 $44,210 $1,863 $19,409 $102,627 $2,696 $6,642 $16,983 $

$33,228 $305,562 $57,890 $103,731 $55,730 $30,341 $16,602 $9,709 $21,845 $21,845 $48 545 $48,545 $3,641 $5,964 $70,512

Total Per Annum

$611 578 $611,578 $39,743

$152,733 $27,828

$66,842

$164,676

$538,995 $ $0 $0 $33,228

$751,918

Component Evaluation Comp #:

104

Flat Roof - Single-ply Membrane - Replace

Location:

Building Roofs

General Notes:

Quantity:

Approx 55,950 Sq.ft.

Quantity description:

Life Expectancy:

20

Remaining Life: 10

Best Cost: $111,900 $2.00/Sq.ft.; Estimate to replace roof Worst Cost:

$139,875 $2.50/Sq.ft.; Higher estimate Source of Information: Research with Client

1,050 Sq.ft. - Bldg 200 925 Sq.ft. - Bldg 300 14,375 Sq.ft. - Bldg 500 8,575 Sq.ft. - Bldg 600 1,800 Sq.ft. - Bldg 800 1,300 Sq.ft. - Bldg 900 17,150 Sq.ft. - Bldg 1000 10,775 Sq.ft. - Bldg 1100 55,950 Sq.ft. - Total

Observations: The single-ply membrane roofs are in good to fair condition. Minor leak issues, that have been repaired, were noted by the Client at the time of the inspection. The roofs should be inspected and cleaned yearly to prevent damage and to ensure a full life from this component. This component has a useful life of approximately 15 - 20 years. Remaining life based on current age.

Page 1 of 41

Comp #:

105

Pitched Roof - Comp Shingle - Replace

Location:

Building Roofs

General Notes:

Quantity:

Approx 49,075 Sq.ft.

Quantity description:

Life Expectancy:

25

Best Cost:

$171,763

Remaining Life: 15

$3.50/Sq.ft.; Estimate to replace roof Worst Cost:

10,225 Sq.ft. - Bldg 200 8,900 Sq.ft. - Bldg 300 10,400 Sq.ft. - Bldg 500 7,100 Sq.ft. - Bldg 600 7,225 Sq.ft. - Bldg 800 5,225 Sq.ft. - Bldg 900

$196,300

$4.00/Sq.ft.; Higher estimate for more labor costs

49,075 Sq.ft. - Total

Source of Information: CSL Cost Database Observations: The roofs are in good condition. No problems were noted at the time of the inspection. Typically this type of roofing material has a useful life of approximately 25 years. Inspect roofs regularly and make local repairs as necessary as an operating expense to ensure full life from this component. Remaining life based on current age.

Page 2 of 41

Comp #:

120

Rain Gutters/Downspouts - Replace

Location:

Building Roofs

General Notes:

Quantity:

Approx 7,215 Linear ft.

Quantity description:

Life Expectancy:

25

Best Cost:

$32,468

Remaining Life: 15

$4.50/Linear ft.; Estimate to replace Worst Cost:

$39,683

$5.50/Linear ft.; Higher estimate to replace Source of Information: CSL Cost Database

1,390 Linear ft. - Bldg 200 1,250 Linear ft. - Bldg 300 1,510 Linear ft. - Bldg 500 1,000 Linear ft. - Bldg 600 1,000 Linear ft. - Bldg 800 875 Linear ft. - Bldg 900 110 Linear ft. - Bldg 1000 80 Linear ft. - Bldg 1100 7,215 Linear ft. - Total

Observations: The rain gutters and downspouts are in good condition. No problems were noted at the time of the inspection. We recommend replacing the rain gutters and downspouts at the same time as the roof replacement (see Comp# 105 Pitched Roof - Comp Shingle - Replace) to ensure proper function and to take advantage of the cost savings benefits. We recommend funding to replace these gutters and downspouts every 25 years. Remaining life based on current age.

Page 3 of 41

Comp #:

201

Stucco Surfaces - Repaint

Location:

Building Exteriors

General Notes:

Quantity:

Approx 118,350 Sq.ft.

Quantity description:

Life Expectancy:

12

Best Cost:

$136,103

Remaining Life: 2

$1.15/Sq.ft.; Estimate to repaint stucco surfaces Worst Cost:

18,700 Sq.ft. - Bldg 200 17,000 Sq.ft. - Bldg 300 32,200 Sq.ft. - Bldg 500 20,400 Sq.ft. - Bldg 600 17,000 Sq.ft. - Bldg 1000 13,050 Sq.ft. - Bldg 1100

$183,443

$1.55/Sq.ft.; Higher estimate for more prep costs

118,350 Sq.ft. - Total

Source of Information: CSL Cost Database Observations: The stucco surfaces are generally in fair condition. Minor cracking and discoloration were noted at the time of the inspection. Stucco surfaces should typically be repainted approximately every 10 to 12 years to protect the stucco surface and maintain appearance. Remaining life based on current age.

Page 4 of 41

Comp #:

202

Wood Trellis & Trim - Repaint

Location:

Building Exteriors

General Notes:

Quantity:

Approx 21,725 Sq.ft.

Quantity description:

Life Expectancy:

5

Best Cost:

$18,550

Remaining Life: 0

$175/Unit; Estimate to repaint Worst Cost:

$29,150

$275/Unit; Higher estimate for more prep costs Source of Information: CSL Cost Database

5,650 Sq.ft. - Bldg 200 2,125 Sq.ft. - Bldg 300 4,050 Sq.ft. - Bldg 500 1,950 Sq.ft. - Bldg 600 2,750 Sq.ft. - Bldg 800 2,300 Sq.ft. - Bldg 900 1,900 Sq.ft. - Bldg 1000 1,000 Sq.ft. - Bldg 1100 21,725 Sq.ft. - Total

Observations: The wood trellis and trim surfaces are in fair to poor condition. Exposed wood, missing paint and faded areas were noted at the time of the inspection. We recommend repainting this component this fiscal year (FY 2012). Repaint these surfaces approximately every 5 years to maintain appearance and protect surfaces. Remaining life based on current condition.

Page 5 of 41

Comp #:

204

Unit & Other Door - Repaint

Location:

Unit Entrances & Utility Doors

General Notes:

Quantity:

(205) Doors

Quantity description:

Life Expectancy:

5

Best Cost:

$15,375

Remaining Life: 1

$75/Door; Estimate to repaint doors Worst Cost:

$25,625

$125/Door; Higher estimate for more prep work Source of Information: CSL Cost Database

(16) - Bldg 200 (14) - Bldg 300 (14) - Bldg 500 Exterior (78) - Bldg 500 Residential Levels (8) - Bldg 600 Exterior (39) - Bldg 600 Residential Levels (7) - Bldg 800 (7) - Bldg 900 (16) - Bldg 1000, (8) double doors (6) - Bldg 1100 (205) - Total

Observations: Painted door surfaces are generally in fair condition. Some scuffing and marking noted throughout. Repaint doors approximately every 5 years to maintain appearance and protect wood surface. Remaining life based on current age and average condition.

Page 6 of 41

Comp #:

207

Metal Fencing - Repaint

Location:

Building 500 & 600 Gates

General Notes:

Quantity:

Approx 72 Linear ft.

Quantity description:

Life Expectancy:

5

Best Cost:

$792

Remaining Life: 1

$11.00/Linear ft.; Estimate to repaint Worst Cost:

48 Linear ft. - Bldg 500 24 Linear ft. - Bldg 600 72 Linear ft. - Total

$936

$13.00/Linear ft; Higher estimate for additional prep work Source of Information: CSL Cost Database Observations: The painted metal fencing surfaces are in good condition. Minor areas of rust and fading were noted at the time of the inspection. Repaint this component approximately every 5 years to maintain appearance and protect metal surfaces. Remaining life based on current condition.

Page 7 of 41

Comp #:

212

Metal Surfaces - Repaint

Location:

Building 500 & 600 Stairwells

General Notes:

Quantity:

Approx 2,900 Sq.ft.

Quantity description:

Life Expectancy:

15

Best Cost:

$2,175

Remaining Life: 5

$0.75/Sq.ft.; Estimate to repaint Worst Cost:

1,400 Sq.ft. - Bldg 500 1,500 Sq.ft. - Bldg 600 2,900 Sq.ft. - Total

$2,900

$1.00/Sq.ft.; Higher estimate for more prep work Source of Information: CSL Cost Database Observations: The painted metal surfaces are in good condition. No problems were noted at the time of the inspection. Expect to paint these surfaces approximately every 15 years to maintain appearance and protect metal surfaces. Remaining life based on current age.

Page 8 of 41

Comp #:

215

Cement Fiberboard Siding - Repaint

Location:

Building Exteriors

General Notes:

Quantity:

Approx 26,425 Sq.ft.

Quantity description:

Life Expectancy:

7

Best Cost:

$19,819

Remaining Life: 3

$.75/Sq.ft.; Estimate to repaint siding

11,125 Sq.ft. - Bldg 800 8,575 Sq.ft. - Bldg 900 3,800 Sq.ft. - Bldg 1000 2,925 Sq.ft. - Bldg 1100 26,425 Sq.ft. - Total

Worst Cost:

$33,031

$1.25/Sq.ft.; Higher estimate for more prep work Source of Information: CSL Cost Database Observations: The cement fiberboard siding is in generally good condition. No significant discoloration or appearance concerns were noted at the time of the inspection. Expect to repaint the buildings approximately every 7 years to maintain appearance and to protect the siding surfaces. Remaining life is based on current age and condition.

Page 9 of 41

Comp #:

216

Location:

Interior Surfaces - Repaint

Quantity:

Building Lobbies, Fitness Room, Mail Room & Stairwells Approx 44,985 Sq.ft.

Life Expectancy:

10

Best Cost:

$33,739

Remaining Life: 0

$.75/Sq.ft.; Estimate to repaint Worst Cost:

$51,733

$1.15/Sq.ft.; Higher estimate Source of Information: CSL Cost Database

General Notes: Quantity description: 600 Sq.ft. - Bldg 500 Lobby Center 2,200 Sq.ft. - Bldg 500 Lobby West 19,350 Sq.ft. - Bldg 500 Residential Levels 5,600 Sq.ft. - Bldg 500 Stairwells 2,500 Sq.ft. - Bldg 600 Lobby 8,875 Sq.ft. - Bldg 600 Residential Levels 4,425 Sq.ft. - Bldg 600 Stairwells 1,075 Sq.ft. - Fitness Room 360 Sq.ft. - Mail Room 44,985 Sq.ft. - Total

Observations: The interior painted surfaces are fair condition. Marking, scuffing and water damage, (bldg 600), were noted at the time of the inspection. We recommend repainting this component this fiscal year (FY 2012). Expect to repaint these surfaces approximately every 10 years to maintain appearance. Remaining life based on current age.

Page 10 of 41

Comp #:

219

Metal Railing - Exterior - Repaint

Location:

Building Exteriors & Residential Levels

General Notes:

Quantity:

Approx 2,870 Linear ft.

Quantity description:

Life Expectancy:

5

Best Cost:

$20,090

Remaining Life: 0

$7.00/Linear ft.; Estimate to repaint Worst Cost:

$25,830

$9.00/Linear ft; Higher estimate for additional prep work Source of Information: CSL Cost Database

80 Linear ft. - Bldg 200 135 Linear ft. - Bldg 300 660 Linear ft. - Bldg 500 Exterior 410 Linear ft. - Bldg 500 Residential Levels 575 Linear ft. - Bldg 600 Exterior 380 Linear ft. - Bldg 600 Residential Levels 320 Linear ft. - Bldg 1000 310 Linear ft. - Bldg 1100 2,870 Linear ft. - Total

Observations: The painted metal railing surfaces are in fair to poor condition. Areas of rust and missing paint were noted at the time of the inspection. Repaint this component approximately every 5 years to maintain appearance and protect metal surfaces. Remaining life based on current condition.

Page 11 of 41

Comp #:

219

Metal Railing - Interior - Repaint

Location:

Building Garages & Stairwells

General Notes:

Quantity:

Approx 770 Linear ft.

Quantity description:

Life Expectancy:

10

Best Cost:

$5,390

Remaining Life: 2

$7.00/Linear ft.; Estimate to repaint

15 Linear ft. - Bldg 500 Garage 410 Linear ft. - Bldg 500 Stairwells 100 Linear ft. - Bldg 600 Garage 245 Linear ft. - Bldg 600 Stairwells 770 Linear ft. - Total

Worst Cost:

$6,930

$9.00/Linear ft; Higher estimate for additional prep work Source of Information: CSL Cost Database Observations: The painted metal railing surfaces are in good condition. Areas of missing paint were noted at the time of the inspection. Repaint this component approximately every 10 years to maintain appearance and protect metal surfaces. Remaining life based on current age and condition.

Page 12 of 41

Comp #:

290

Balcony Railing - Repaint

Location:

Building 200, 300, 800 & 900 Exteriors

General Notes:

Quantity:

Approx 1,250 Linear ft.

Quantity description:

Life Expectancy:

5

Best Cost:

$11,250

Remaining Life: 0

$9.00/Linear ft.; Estimate to repaint

180 Linear ft. - Bldg 200 360 Linear ft. - Bldg 300 410 Linear ft. - Bldg 800 300 Linear ft. - Bldg 900 1,250 Linear ft. - Total

Worst Cost:

$13,750

$11.00/Linear ft; Higher estimate for additional prep work Source of Information: CSL Cost Database Observations: The painted wood railing surfaces are in fair to poor condition. Untreated wood and areas of missing paint were noted at the time of the inspection. We recommend repainting this component this fiscal year (FY 2012). Repaint this component approximately every 5 years to maintain appearance and protect metal surfaces. Remaining life based on current condition.

Page 13 of 41

Comp #:

401

Asphalt - Overlay

Location:

Community Parking Areas & Streets

Quantity:

Approx 42,750 Sq.ft.

Life Expectancy:

25

Best Cost:

$64,125

General Notes:

Remaining Life: 15

$1.50/Sq.ft.; Estimate for overlay Worst Cost:

$85,500

$2.00/Sq.ft.; Higher estimate for local repairs Source of Information: CSL Cost Database Observations: The asphalt streets are in good condition. Cracking, raveling, un-sealed saw cuts and vegetation intrusion were noted at the time of the inspection. Asphalt overlay generally has a useful life of 20 - 25 years. Maintain seal coat schedule to ensure full useful life (see Comp# 402 Asphalt - Seal Coat). Remaining life based on current age.

Page 14 of 41

Comp #:

402

Asphalt - Seal Coat

Location:

Community Parking Areas & Streets

Quantity:

Approx 42,750 Sq.ft.

Life Expectancy:

5

Best Cost:

$5,558

General Notes:

Remaining Life: 0

$0.13/Sq.ft.; Estimate for seal coat Worst Cost:

$8,123

$0.19/Sq.ft.; Higher estimate for local repairs Source of Information: CSL Cost Database Observations: The asphalt seal coat is in poor condition. Cracking, raveling, un-sealed saw cuts and vegetation intrusion were noted at the time of the inspection. Perform an asphalt seal coat this fiscal year (FY 2012). Seal asphalt surfaces regularly to prevent premature overlay (see Comp# 401 Asphalt - Overlay). Asphalt surfaces should be sealed every 3 to 5 years. Remaining life based on current condition.

Page 15 of 41

Comp #:

403

Location:

Concrete - Repair/Replace

Quantity:

Community Curb, Drives, Gutter & Sidewalk s Extensive Sq.ft.

Life Expectancy:

10

Best Cost:

$10,000

General Notes:

Remaining Life: 5

Allowance to repair/replace Worst Cost:

$15,000

Higher allowance for more repairs/replacements Source of Information: CSL Cost Database Observations: The concrete is generally in good condition. Areas of cracking, spalling and trip hazards were noted at the time of the inspection. No expectation to completely replace the concrete surfaces. We recommend making local repairs as necessary as an operating expense and funding to make more significant repairs approximately every 10 years. Remaining life based on current age and condition.

Page 16 of 41

Comp #:

502

Garage Door - Replace

Location:

Building 500 & 600 Garage Entrances

Quantity:

(4) Garage Doors

Life Expectancy:

20

Best Cost:

$3,600

General Notes:

Remaining Life: 10

$900/Door; Estimate to replace doors Worst Cost:

$4,400

$1,100/Door; Higher estimate Source of Information: CSL Cost Database Observations: The garage doors are in good condition. No problems were noted or reported at the time of inspection. We recommend funding to replace this door approximately every 20 years to ensure appearance and proper function. Remaining life based on current age.

Page 17 of 41

Comp #:

506

Phone Entry & Access Control System - Replace

Location:

Buildings 500 & 600

Quantity:

(2) Call Boxes

Life Expectancy:

12

Best Cost:

$8,000

General Notes:

Remaining Life: 2

$4,000/System; Estimate to replace system Worst Cost:

$10,000

$5,000/System; Higher estimate for more installation costs Source of Information: CSL Cost Database Observations: The phone entry systems are in good condition. No problems were noted or reported at the time of the inspection. The systems were observed to be functioning normally. This type of system has a typical life expectancy of approximately 12 years. Remaining life based on current age.

Page 18 of 41

Comp #:

603

Walkways - Bldg 500 & 600 - Reseal

Location:

Building 500 & 600 Walkways

General Notes:

Quantity:

Approx 20,250 Sq.ft.

Quantity description:

Life Expectancy:

6

Best Cost:

$44,550

Remaining Life: 2

12,000 Sq.ft. - (2) @ 6,000 Sq.ft. - per Floor Bldg 500: Floors 1 & 2

$2.20/Sq.ft.; Estimate to reseal

8,250 Sq.ft. - (3) @ 2,750 Sq.ft. - per Floor Bldg 600: Floors 1, 2 & 3

Worst Cost:

20,250 Sq.ft. - Total

$50,625

$2.50/Sq.ft.; Higher estimate for more prep work Source of Information: Research with Client Observations: The walkways are in good to fair condition. Minor cracking was noted at the time of the inspection. Water damage to ceiling and walls below the walkways was noted at the time of the inspection. We recommend this component be reseal 3 - 6 years to protect walkway surfaces and prevent damage to common area below. Remaining life is based on current condition.

Page 19 of 41

Comp #:

603

Walkways - Bldg 500 3rd Flr - Reseal

Location:

Building 500 3rd Floor

Quantity:

Approx 6,000 Sq.ft.

Life Expectancy:

6

Best Cost:

$13,200

General Notes:

Remaining Life: 5

$2.20/Sq.ft.; Estimate to reseal Worst Cost:

$15,000

$2.50/Sq.ft.; Higher estimate for more prep work Source of Information: Research with Client Observations: The walkways are in good condition. Minor cracking was noted at the time of the inspection. Water damage to ceiling and walls below the walkways was noted at the time of the inspection. We recommend this component be re-seal 3 6 years to protect walkway surfaces and prevent damage to common area below. Remaining life is based on current age.

Page 20 of 41

Comp #:

707

Elevator - Modernize

Location:

Building 500 & 600

General Notes:

Quantity:

(3) Elevators

Quantity description:

Life Expectancy:

30

Best Cost:

$120,000

Remaining Life: 20

$40,000/Elevator; Estimate to modernize elevator Worst Cost:

(2) - Building 500, 2500lb Schindler (1) - Building 600, 2500lb Schindler (3) - Total Elevators

$180,000

$60,000/Elevator; Higher estimate for more upgrades Source of Information: CSL Cost Database Observations: The elevators are in good condition. No problems were noted or reported at the time of the inspection. We recommend funding to make significant upgrades and replacements to elevator controller and door packages approximately every 25 to 30 years. Remaining life based on current age.

Page 21 of 41

Comp #:

709

Elevator Cab - Remodel

Location:

Building 500 & 600

General Notes:

Quantity:

(3) Elevator Cabs

Quantity description:

Life Expectancy:

15

Best Cost:

$7,500

Remaining Life: 5

$2,500/Cab; Estimate to remodel cabs Worst Cost:

(2) - Building 500 (1) - Building 600 (3) - Total Elevators

$10,500

$3,500/Cab; Higher estimate for more extensive remodel Source of Information: CSL Cost Database Observations: The elevator cabs are in good condition. No problems were noted or reported at the time of the inspection. Expect to remodel cab approximately every 15 years to maintain appearance and keep up with current decorative tastes. Remaining life based on current age.

Page 22 of 41

Comp #:

717

Wall Cabinet Heater - Replace

Location:

Building 500 & 600

General Notes:

Quantity:

(6) Heaters

Quantity description:

Life Expectancy:

20

Best Cost:

$7,500

Remaining Life: 10

$1,250/Heater; Estimate to replace heaters Worst Cost:

(1) - Bldg 500 Center Lobby (3) - Bldg 500 Stairwells (2) - Bldg 600 Stairwells (6) - Total

$10,500

$1,750/Heater; Higher estimate Source of Information: CSL Cost Database Observations: The wall cabinet heaters are in good condition. No problems were noted at the time of the inspection. Expect to replace these heaters approximately every 15 to 20 years. Remaining life based on current age.

Page 23 of 41

Comp #:

790

Air Tester - Replace

Location:

Building 500 & 600 Parking Garages

General Notes:

Quantity:

(4) Air Testers

Quantity description:

Life Expectancy:

10

Best Cost:

$2,400

Remaining Life: 2

$600/Tester; Estimate to replace Worst Cost:

(3) - Marcurco CM-214 (1) - Airtest CT-1000 (4) - Total Air Testers

$3,200

$800/Tester; Higher estimate Source of Information: CSL Cost Database Observations: The air testers appear to be in good condition. No problems were noted or reported at the time of inspection. We recommend funding to replace these testers approximately every 10 years to ensure proper function and keep up with current technology. Remaining life based on current age and condition.

Page 24 of 41

Comp #:

803

Mailboxes - Replace

Location:

Community Mailroom

General Notes:

Quantity:

(12) Clusters

Quantity description:

Life Expectancy:

20

Best Cost:

$8,400

Remaining Life: 10

$700/Cluster; Estimate to replace mailbox clusters

(2) - 8 parcel - Cluster (8) - 30 box - Cluster (1) - HOA Drop Box (1) - Outgoing Box (12) - Total Clusters

Worst Cost:

$9,600

$800/Cluster; Higher estimate for more installation costs Source of Information: CSL Cost Database Observations: The mailboxes are in good condition. No marking or discoloration were noted at the time of the inspection. Expect to replace this component approximately every 18 to 20 years assuming normal use and wear. Remaining life based on current age.

Page 25 of 41

Comp #:

804

Awning - Replace

Location:

Building 500 Exterior

Quantity:

Approx 85 Linear ft.

Life Expectancy:

10

Best Cost:

$2,125

General Notes:

Remaining Life: 2

$25/Linear ft.; Estimate to replace Worst Cost:

$2,975

$35/Linear ft.; Higher estimate for more installation costs Source of Information: CSL Cost Database Observations: The awnings are in fair condition. No significant problems were noted at the time of the inspection. Expect to replace awnings approximately every 10 years. Remaining life based on current age and condition.

Page 26 of 41

Comp #:

901

Fire Protection System - Replace

Location:

Building Interiors

General Notes:

Quantity:

(8) Buildings

Quantity description:

Life Expectancy:

20

Best Cost:

$16,000

Remaining Life: 10

(1) Silent Knight: IFP 1000, Bldg 500 Panel (1) Siemens MXL-IQ, Bldg 600 Panel

$2,000/Building; Estimate to replace panel Worst Cost:

$24,000

$3,000/Building; Higher estimate Source of Information: CSL Cost Database Observations: Although the fire protection system is designed to last the life of the community we recommend funding for an allowance to renovate the system approximately every 20 years to ensure proper function and to keep up with current technology and code requirements. Perform regular, professional inspections and repairs as an operating expense. Remaining life based on current age.

Page 27 of 41

Comp #:

903

Security Camera System - Replace

Location:

Buildings 500 & 600

Quantity:

(1) 12-camera System

Life Expectancy:

10

Best Cost:

$6,000

General Notes:

Remaining Life: 2

Estimate to replace Worst Cost:

$8,000

Higher estimate to replace Source of Information: CSL Cost Database Observations: The security camera system is in good to fair condition. Research with the Client reveals the system was installed in fiscal year 2002. We recommend funding to replace this security camera system approximately every 10 years to ensure proper function and keep up with current technology. Remaining life based on current age and condition.

Page 28 of 41

Comp #:

1307 Bench - Replace

Location:

Common Area

Quantity:

(3) Benches

Life Expectancy:

10

Best Cost:

$1,200

General Notes:

Remaining Life: 0

$400/Bench; Estimate to replace benches Worst Cost:

$1,800

$600/Bench; Higher estimate for better quality Source of Information: CSL Cost Database Observations: The benches are in poor condition. Exposed wood an missing paint were noted at the time of the inspection. Expect a useful life of approximately 10 years from this component. Remaining life based on current age.

Page 29 of 41

Comp #:

1311 Asphalt Path - Seal/Repair

Location:

West Side of Community

Quantity:

Approx 9,450

Life Expectancy:

6

Best Cost:

$1,985

General Notes:

Remaining Life: 0

$0.21/Sq.ft.; Estimate to seal path Worst Cost:

$2,930

$0.31/Sq.ft.; Higher estimate for repairs Source of Information: CSL Cost Database Observations: The asphalt path is in generally good condition. Cracking and vegetation intrusion were noted at the time of the inspection. The path does not appear to have been sealed in the past few years. Seal cracks and kill vegetation yearly as an operating expense to prevent more significant damage. Typically this component will only require a seal coat as well as minor repairs approximately every 6 years. Remaining life based on current condition.

Page 30 of 41

Comp #:

1405 Furniture - Replace

Location:

Building 500 & 600 Lobbies

General Notes:

Quantity:

(27) Pieces

Quantity description:

Life Expectancy:

10

Best Cost:

$3,000

Remaining Life: 4

Allowance to replace Worst Cost:

Bldg 500, Center: (1) - Chair, (1) - Sofa Bldg 500, West: (3) - Chair, (3) - Lamp, (2) - Rug (2) - Sofa, (2) - Table, Coffee, (3) - Table, Side

$5,000

Higher allowance Source of Information: CSL Cost Database

Bldg 600: (3) - Chair, (1) - Lamp, (1) - Mirror, (1) - Rug (1) - Sofa, (1) - Table, Coffee, (2) - Table, Side

Observations: The furniture is in good condition. No significant signs of wear or appearance concerns noted at the time of inspection. We recommend funding to make significant replacements to furniture approximately every 10 years to maintain appearance and keep up with decorative tastes. Remaining life based on current age and condition.

Page 31 of 41

Comp #:

1406 Fitness Equipment - Replace

Location:

Community Fitness Room

General Notes:

Quantity:

(3) Pieces

Quantity description:

Life Expectancy:

15

Best Cost:

$7,000

Remaining Life: 5

Estimate to replace Worst Cost:

(1) - Ab Bench (1) - Dumbbell Set, Nautilus (1) - Multi Station, Hoist H4400 (3) - Total Pieces

$8,000

Higher estimate Source of Information: CSL Cost Database Observations: The fitness equipment is in good condition. No damage or signs of advanced wear were noted at the time of the inspection. We recommend repairing broken cables and ripped upholstery as necessary as an operating expense and funding to completely replace the fitness equipment approximately every 15 years. Remaining life based on current age.

Page 32 of 41

Comp #:

1407 Cardio Equipment - Replace

Location:

Community Fitness Room

General Notes:

Quantity:

(6) Pieces

Quantity description:

Life Expectancy:

10

Best Cost:

$10,500

Remaining Life: 2

$1,750/Piece; Estimate to replace Worst Cost:

(1) - Elliptical, Life Fitness x5i (1) - Health Rider (1) - Recumbent Bike, Life Fitness R7i (1) - Recumbent Bike, NordicTrack Commercial VR (1) - Treadmill, Cybex 400T (1) - Treadmill, Pro-Form 765 Crosstrainer

$13,500

$2,250/Piece; Higher estimate

(6) - Total Pieces

Source of Information: CSL Cost Database Observations: The cardio fitness equipment is in fair condition. No evidence of advanced wear or damage was noted at the time of the inspection. Due to higher use and wear expect to replace this equipment approximately every 10 years. Remaining life based on current age and condition.

Page 33 of 41

Comp #:

1413 Restroom - Remodel

Location:

Fitness Room

General Notes:

Quantity:

(1) Restroom

Quantity description:

Life Expectancy:

18

Best Cost:

$1,000

Remaining Life: 8

Estimate to remodel restroom Worst Cost:

$1,500

(1) - Light (1) - Mirror (1) - Sink (1) - Toilet 300 Sq.ft. - Painted Surfaces (1) - Tankless Water Heater, Ariston Pro, GL 2.5Ti 50 Sq.ft. - Vinyl Flooring

Higher estimate for more extensive remodel Source of Information: CSL Cost Database Observations: The restroom is in good condition. No appearance concerns were noted at the time of the inspection. We recommend funding to remodel these restrooms approximately every 18 years to maintain appearance and keep up with current decorative tastes. Remaining life based on current age.

Page 34 of 41

Comp #:

1501 Carpeting - Replace

Location:

Fitness Room

Quantity:

Approx 770 Sq.ft.

Life Expectancy:

8

Best Cost:

$2,888

General Notes:

Remaining Life: 2

$3.75/Sq.ft.; Estimate to replace Worst Cost:

$3,273

$4.25/Sq.ft.; Higher estimate for better quality Source of Information: CSL Cost Database Observations: The carpeting is in fair condition. Snags and wear patterns were noted at the time of the inspection. Expect to replace this component approximately every 8 years assuming normal use and wear. Remaining life based on current age and condition.

Page 35 of 41

Comp #:

1503 Tile - Replace

Location:

Building Lobbies & Fitness Room

General Notes:

Quantity:

Approx 1,055 Sq.ft.

Quantity description:

Life Expectancy:

30

Best Cost:

$10,550

Remaining Life: 20

$10/Sq.ft.; Estimate to replace floor Worst Cost:

$12,660

220 Sq.ft. - Bldg 500, Center Lobby 400 Sq.ft. - Bldg 500, West Lobby 365 Sq.ft. - Bldg 600 Lobby 30 Sq.ft. - Fitness Room 40 Sq.ft. - Mailroom 1,055 Sq.ft. - Total

$12/Sq.ft.; Higher estimate for more installation costs Source of Information: CSL Cost Database Observations: The tile is in good condition. No significant problems were noted at the time of inspection. Although this component may reach an extended useful life we recommend funding to replace the tile approximately every 30 years to ensure appearance and keep up with current decorative tastes. Remaining life based on current age.

Page 36 of 41

Comp #:

1601 Interior Light - Replace

Location: Quantity:

Building Lobbies, Fitness Room, Mail Room & Stairwells ()90 Lights

Life Expectancy:

18

Best Cost:

$6,750

Quantity description: (18) - Can (1) - Chandelier (48) - Fluorescent (13) - Track (10) - Wall

Remaining Life: 8

$75/Light; Estimate to repalce lights Worst Cost:

General Notes:

$9,000

(90) - Total

$100/Light; Higher estimate for better quality replacements Source of Information: CSL Cost Database Observations: The interior lights are in good condition. No problems were noted at the time of the inspection. Expect to replace these lights approximately every 18 years to maintain appearance and keep up with current decorative tastes. Remaining life based on current age.

Page 37 of 41

Comp #:

1602 Exterior Light - Replace

Location:

Building Exteriors

General Notes:

Quantity:

(248) Lights

Quantity description:

Life Expectancy:

16

Best Cost:

$24,800

Remaining Life: 6

$100/Fixture; Estimate to replace Worst Cost:

(30) - Bldg 500 Exterior (81) - Bldg 500 Residential Levels (18) - Bldg 600 Exterior (39) - Bldg 600 Residential Levels (48) - Bldg 1000 (32) - Bldg 1100

$37,200

$150/Fixture; Higher estimate

(248) - Total

Source of Information: CSL Cost Database Observations: The exterior lights are in good condition. No significant problems were noted at the time of the inspection. Expect to replace these lights approximately every 16 years to maintain appearance. Remaining life based on current age.

Page 38 of 41

Comp #:

1603 Garage Light - Replace

Location:

Buidling 500 & 600 Parking Garages

General Notes:

Quantity:

(83) Lights

Quantity description:

Life Expectancy:

20

Best Cost:

$24,900

Remaining Life: 10

$300/Light; Estimate to replace lights Worst Cost:

(50) - Wallpacks, Bldg 500 (1) - Fluorescent, Bldg 600 (32) - Wallpacks, Bldg 600 (83) - Total Lights

$33,200

$400/Light; Higher estimate for more installation costs Source of Information: CSL Cost Database Observations: The garage lights are in good condition. No problems were noted at the time of the inspection. Expect to replace lights approximately every 20 years to ensure appearance and function. Remaining life based on current age.

Page 39 of 41

Comp #:

1604 Pole Light - Replace

Location:

Adjacent to Community Streets

General Notes:

Quantity:

(54) Pole Lights

Quantity description:

Life Expectancy:

16

Best Cost:

$13,500

Remaining Life: 6

$250/Fixture; Estimate to replace light fixtures Worst Cost:

(29) - Acorn Globe (8) - Asphalt Trail (17) - Concrete Drive (54) - Total Lights

$18,900

$350/Fixture; Higher estimate for more installation costs Source of Information: CSL Cost Database Observations: The pole lights are in good condition. A missing light cover was noted on one of the green pole lights at the time of the inspection. We recommend funding to replace these pole light fixtures and to refurbish the electrical approximately every 16 years. Repaint poles as necessary as an operating expense. Remaining life based on current age.

Page 40 of 41

Comp #:

1605 Bollard Light - Replace

Location:

Common Area between Bldgs 200 & 300

Quantity:

(4) Lights

Life Expectancy:

16

Best Cost:

$1,600

General Notes:

Remaining Life: 6

$400/Light; Estimate to replace lights Worst Cost:

$2,400

$600/Light; Higher estimate for more installation costs Source of Information: CSL Cost Database Observations: The bollard lights are in good condition. No problems were noted at the time of the inspection. Expect to replace lights approximately every 16 years to ensure appearance and function. Remaining life based on current age.

Page 41 of 41

Glossary of Commonly Used Words And Phrases (Provided by the National Reserve Study Standards of the Community Associations Institute)

Cash Flow Method – A method of developing a reserve funding plan where contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved. Component – Also referred to as an “Asset.” Individual line items in the Reserve Study developed or updated in the physical analysis. These elements form the building blocks for the Reserve Study. Components typically are: 1) Association responsibility, 2) with limited useful life expectancies, 3) have predictable remaining life expectancies, 4) above a minimum threshold cost, and 5) required by local codes. Component Full Funding – When the actual (or projected) cumulative reserve balance for all components is equal to the fully funded balance. Component Inventory – The task of selecting and quantifying reserve components. This task can be accomplished through on-site visual observations, review of association design and organizational documents, a review of established association precedents, and discussion with appropriate association representatives. Deficit – An actual (or projected reserve balance), which is less than the fully funded balance. Effective Age – The difference between useful life and remaining useful life (UL - RUL). Financial Analysis – The portion of the Reserve Study where current status of the reserves (measured as cash or percent funded) and a recommended reserve contribution rate (reserve funding plan) are derived, and the projected reserve income and expenses over time is presented. The financial analysis is one of the two parts of the Reserve Study. Fully Funded Balance – An indicator against which the actual (or projected) reserve balance can be compared. The reserve balance that is in direct proportion to the fraction of life “used up” of the current repair or replacement cost of a reserve component. This number is calculated for each component, and then summed together for an association total. FFB = Current Cost * Effective Age / Useful Life Fund Status – The status of the reserve fund as compared to an established benchmark, such as percent funded. Funding Goals – Independent of calculation methodology utilized, the following represent the basic categories of funding plan goals: • Baseline Funding: Establishing a reserve-funding goal of keeping the reserve balance above zero. • Component Full Funding: Setting a reserve funding goal of attaining and maintaining cumulative reserves at or near 100% funded. • Threshold Funding: Establishing a reserve funding goal of keeping the reserve balance above a specified dollar or percent funded amount. Funding Plan – An association’s plan to provide income to a reserve fund to offset anticipated expenditures from that fund.

Funding Principles –

• • • •

Sufficient funds when required Stable contributions through the year Evenly distributed contributions over the years Fiscally responsible

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