THE VINEYARDS AT DUBLIN GREENE OWNERS ASSOCIATION

Transcription

1 THE VINEYARDS AT DUBLIN GREENE OWNERS ASSOCIATION Full Reserve Study With On-site Visual Inspection October 3, 2018 Reserve Study for Fiscal Year: 01/01/2019 through 12/31/ Camden Ave. Suite 151 San Jose, CA PH: (408) Page 1 of 62

2 General Information The following reserve study assessment is based upon information and data available to us during the course of the study. Factual information provided by the association, managing agent, and association contracted service providers, regarding past or current reserve projects, financial data, physical characteristics, component quantities, or historical issues are assumed to be correct and complete. The initial reserve fund cash balance is derived from the Association's balance sheet as provided by the Association or managing agent. The conclusions and recommendations presented in this report have been based on visual observations and opinion of the reserve inspector at the time of inspection. Property Description The Vineyards at Dublin Greene is a 152 unit townhome project contained in 24 buildings at 4800 Swinford Court in Dublin, CA. The project features a pool house, swimming pool, and spa. Level of Service This reserve study has been prepared to meet California Civil Code section 5570, and the National Reserve Study Standards published by the Community Associations Institute (CAI). The level of service performed in this reserve study was a Full Reserve Study with On-site Visual Inspection, in which the following five objectives were performed: Component Inventory Condition Assessment (based on visual inspection) Life and Valuation Estimates Reserve Fund Status Funding Plan This study is not intended for the purpose of performing quality/forensic analyses, background check of historical records, or an audit or review of a previous reserve study. The on-site inspection is not intended to be a project audit, inspection for compliance with building code and local ordinances, or an inspection on the quality of workmanship. No invasive or destructive testing has been performed as part of this study. Since no destructive testing was undertaken, this study does not purport to address any latent and/or patent defects, nor does it address any life expectancies, which are abnormally short due to either improper design or installation, or to subsequent improper maintenance. Additionally, any components not accessible to the inspector have been omitted from this study. This study assumes that all components will be properly maintained for the remainder of their life expectancy. Page 2 of 62

3 Reserve Study Goals and Objectives This study has been prepared in two parts: The physical analysis and the financial analysis. All information in this report was created by a certified Reserve Specialist from SMA Reserves. The physical analysis is prepared by the reserve study inspector by an on-site visual inspection of the common area components that the Association is obligated to maintain. The physical analysis includes preparation of the component inventory, condition assessment, and life and valuation estimates. The component inventory should be relatively stable from year to year although the recommended scope of repair and/or price consideration may vary, depending on condition, maintenance, and economic factors. The financial analysis is a determination and opinion of the current or projected status of the Association's reserve fund cash balance. The financial analysis includes a reserve funding plan which may have been modified by the Association's board or managing agent as a part of this study. The funding plan included in this report should reflect the Association's anticipated annual reserve contributions and anticipated special assessments, if applicable, as of the date of the report. The funding plan included herein is evaluated based on a cash flow method, whereby contribution 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. The funding goal selected in this report is designed to maintain a minimum threshold balance equal to 5% of the total replacement cost of all components included in the study. The reserve funding plan provides a 5-year reserve fund contribution schedule and anticipated special assessments, if applicable, in order to meet an adequate reserve funding level. Basis for Life Expectancies and Cost Estimates Life expectancy and cost estimates are prepared based on information available to the reserve preparer and the individual experience and opinion of the reserve inspector. The basis for opinion may also be derived from bids from local contractors, recent architectural / construction reports, R.S. Means / BNI construction cost data, historical repair costs, and comparative cost data derived by our reserve study analyst. 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. Page 3 of 62

4 Status of the Reserve Fund The status of the reserve fund cash balance is evaluated as either adequate or inadequate. The reserve fund cash balance is considered adequate if the anticipated cash balance of the reserve fund is greater than or equal to a threshold balance of 5% for each year over the next thirty years without the anticipated need for a special assessment or increase greater than inflation. The Association's current reserve fund cash balance is inadequate. It is recommended that the Association increase their reserve contribution in order to fund anticipated future repairs. Agent Involvement This reserve study was prepared by Erik Sundquist and reviewed by David Hodges. Erik Sundquist has been certified as a Reserve Specialist (RS) by the Community Associations Institute (CAI), graduated with highest honors from UC Berkeley, and has over 25 years experience in construction, construction management, estimating, and design. David Hodges is a graduate of the Orfalea College of Business at Cal Poly San Luis Obispo with over 10 years experience in finance, accounting and business management. Terms and Definitions Component: The 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) predictable Remaining Useful Life expectancies, 4) above a minimum threshold cost, and 5) as required by local codes. Fully Funded: 100% Funded. When the actual (or projected) Reserve Balance is equal to the Fully Funded Balance. 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 initial year have zero Remaining Useful Life. Useful Life (UL): Total Useful Life or Depreciable Life. The estimated time, in years, that a reserve component can be expected to serve its intended function if properly constructed in its present application or installation. Project Management and Administration: It is added to each component to account for additional costs beyond the base component cost such as construction management fees, expansion of project scope, hidden damage, additional association management costs, etc. Deferral (DEF): Deferrals allow an association to extend repairs to a component beyond the recommended useful life. The accountant's breakout gives a detailed analysis of the associations funding for each component. The following definitions are used. Fully Funded Balance (FFB): (Unit Cost / (Useful Life - Remaining Life)) Current Fund Balance: (Component's FFB / sum(ffb)) * Reserve Balance Annual Accrual: Current Cost / Useful Life Annual Contribution: Component's Annual Accrual / sum(annual Accrual) * Annual Contribution Page 4 of 62

5 Three Year Projects Summary Report 2019 Anticipated Reserve Projects Schedule 2 Reserve Study Preparation Reserve Study, Update Plumbing Hot Water Heater, 40 gal., Economy 1, Fencing Metal Fencing, Pool, Paint 1, Total Anticipated Reserve Expenditure 3, Total Anticipated Reserve Fund Beginning Cash Balance 920, Anticipated Reserve Projects Schedule 3 Reserve Study Preparation Reserve Study, Update Appurtenant Structure Wood Trellises (all), Paint 3, Balcony Balcony Deck Surfacing, Seal 17, Exterior Siding Stucco Siding, Paint 270, Exterior Siding Wood Trim, Paint 34, Exterior Siding Wood Trim, Window Shutters 246, Pool & Spa Mech & Elec Systems Pool, Chlorinator Pool & Spa Mech & Elec Systems Pool Equipment Controller Pool & Spa Mech & Elec Systems Pool Pump 1, Pool & Spa Mech & Elec Systems Spa, Chlorinator Pool & Spa Mech & Elec Systems Spa, Pumps 3, Exterior Furnishings Pool Furniture 2, Landscape Backflow Valve Repair/Replacement Fund 3, Landscape Plants & Refurbishment 12, Landscape Tree Maintenance 13, Pavement Asphalt Pavement, Crack Fill, Seal Coat, Stripe 18, Pavement Asphalt Pavement, Minor Repair-20% 85, Pavement Concrete Pavement, Repair Fund 2, Total Anticipated Reserve Expenditure 719, Total Anticipated Reserve Fund Beginning Cash Balance 1,096,285 Page 5 of 62

6 Three Year Projects Summary Report 2021 Anticipated Reserve Projects Schedule 1 Reserve Study Preparation Reserve Study, Onsite 1, Plumbing Drinking Fountain 1, Exterior Furnishings Park Bench 7, Misc. Site Systems Signage, Misc. 1, Pool & Spa Site Systems Mastic 1, Pool & Spa Site Systems Spa Plaster 2, Total Anticipated Reserve Expenditure 15, Total Anticipated Reserve Fund Beginning Cash Balance 579,213 Page 6 of 62

7 Reserve Study Financial Summary Status of the Reserve Fund as of December 31, 2018 Reserve Fund Cash Balance as of December 31, , Anticipated Interest Revenue prior to December 31, , Community Information Fiscal Year Start January 1, 2019 Fiscal Year End December 31, 2019 Anticipated Reserve Fund Contribution prior to December 31, , Anticipated Reserve Fund Expenditures prior to December 31, Community Type Townhomes Projected Reserve Fund Cash Balance 920, Number of Units 152 Year Built 2000 Projected Fully Funded Balance 2,725, Percent Funded 34% Last Inspected April 4, 2018 Average Reserve Fund Surplus / (Deficit) per Member (11,870.64) Five Year - Cash Flow Funding Plan Summary Fiscal Year Ending Reserve Contribution Special Assessment Percent Funded , % , % Computation Parameters Inflation Rate 3.00% Interest Rate 1.00% Threshold Factor 5.00% , % , % Prior Year Fund Contribution 144, , % Summary Notice: This five year funding plan summary is provided in accordance with California Civil Code Section The full reserve study plan is available and will be provided, by the Association, to any member upon request. Page 7 of 62

8 Cash Flow Funding Plan Fiscal Year Annual Reserve Contribution Monthly Reserve Assessment Percent Increase Anticipated Beginning Balance Estimated Interest Anticipated Reserve Expense Anticipated Special Assessment Anticipated FYE Cash Balance Fully Funded Balance Surplus / (Deficit) of FFB Projected FYE Percent Funded , % 920,982 9,177 3, ,096,285 3,059,877 (1,963,593) 36% , % 1,096,285 3, , ,213 2,674,916 (2,095,703) 22% , % 579,213 5,636 15, ,091 3,010,814 (2,209,723) 27% , % 801,091 7,500 51, ,028,777 3,328,400 (2,299,623) 31% , % 1,028,777 10, ,356,067 3,716,126 (2,360,060) 36% , % 1,356,067 13,213 34, ,705,972 4,088,826 (2,382,854) 42% , % 1,705,972 8, , ,298,954 3,641,744 (2,342,790) 36% , % 1,298,954 12,893 9, ,749,751 4,056,084 (2,306,333) 43% , % 1,749,751 17,120 37, ,190,124 4,463,384 (2,273,260) 49% , % 2,190,124 21,129 77, ,608,918 4,852,038 (2,243,120) 54% , % 2,608,918 26,043 4, ,119,483 5,337,168 (2,217,685) 58% , % 3,119,483 15,322 1,587, ,051,330 4,217,031 (2,165,701) 49% , % 2,051,330 20,490 2, ,588,375 4,706,393 (2,118,018) 55% , % 2,588,375 25,464 41, ,106,356 5,180,600 (2,074,244) 60% , % 3,106,356 31,015 4, ,683,013 5,718,524 (2,035,511) 64% , % 3,683,013 36,798 3, ,283,628 6,285,921 (2,002,293) 68% , % 4,283,628 30,626 1,221, ,677,253 5,627,950 (1,950,697) 65% , % 3,677,253 36,051 72, ,242,660 6,145,876 (1,903,216) 69% , % 4,242,660 41,920 50, ,853,533 6,714,239 (1,860,706) 72% , % 4,853,533 47,562 97, ,441,876 7,264,575 (1,822,699) 75% , % 5,441,876 54,356 6, ,147,242 7,938,715 (1,791,473) 77% , % 6,147,242 9,743 5,172, ,661,091 3,325,337 (1,664,246) 50% , % 1,661,091 16,149 46, ,328,412 3,868,412 (1,540,000) 60% , % 2,328,412 22,621 66, ,002,934 4,421,710 (1,418,776) 68% , % 3,002,934 29,996 3, ,769,415 5,071,700 (1,302,286) 74% , % 3,769,415 37,269 42, ,526,209 5,716,485 (1,190,276) 79% , % 4,526,209 32,808 1,245, ,098,455 5,157,669 (1,059,215) 79% , % 4,098,455 40, ,946,959 5,880,545 (933,585) 84% , % 4,946,959 48,820 64, ,763,525 6,576,221 (812,696) 88% , % 5,763,525 55, , ,480,183 7,174,664 (694,481) 90% Page 8 of 62

9 Cash Flow Funding Plan 6,000,000 4,000,000 2,000, Anticipated Reserve Expense Threshold Minimum Balance Fully Funded Balance Anticipated FYE Cash Balance Page 9 of 62

10 Component Inventory Detail Report See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost ADMINISTRATIVE Reserve Study Preparation 1 Reserve Study, Onsite Fund 1, % 1,838 2 Reserve Study, Update Fund % Reserve Study, Update Fund % 394 BUILDING SYSTEMS Appurtenant Structure 4 Pool House, Refurbish Sq.Ft % 19,845 5 Wood Trellises Sq.Ft % 11,143 6 Wood Trellises (all), Paint Sq.Ft % 3,309 7 Wood Trellis, Pool Sq.Ft % 14,338 Balcony 8 Balcony Deck & Railing, Major Repair Each 3, % 302,400 9 Balcony Deck Surfacing, Resurface Sq.Ft % 102, Balcony Deck Surfacing, Seal Sq.Ft % 17, Metal Balcony Railing Ln.Ft % 73,469 Exterior Doors 12 Exterior Doors, Utility Closets Each % 49, Garage Door, Metal, Sectional, Double - HOMEOWNER Each None 5.00% 0 RESPONSIBILITY 14 Garage Door, Metal, Sectional, Single - HOMEOWNER RESPONSIBILITY Each None 5.00% 0 Page 10 of 62

11 Component Inventory Detail Report See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost Exterior Siding 15 Stucco Siding, 3% Repair Sq.Ft % 32, Stucco Siding, Paint Sq.Ft % 262, Wood Trim, Paint Ln.Ft % 33,056 The Remaining Life of this component has been adjusted to synch with stucco paint. Inspect buildings and touch up as needed in the interim to protect wood surfaces. 18 Wood Trim, Repair Fund Ln.Ft % 19, Wood Trim, Window Shutters Each % 238,875 Interior Renovation 20 Restrooms, Cabana Each 1, % 3,150 Misc. Building Systems 21 Mail Boxes, 4"x5" Cluster Each % 9, Mailbox Kiosk, Refurbish Each 1, % 14, Wood Destroying Pests, Treatment & Repairs Sq.Ft % 139,448 Roofing 24 Downspouts, Aluminum Ln.Ft % 46, Gutters, Aluminum Ln.Ft % 121, Roof Inspection & Repair Each % 51, Tile Roofing, Replace Underlayment Sq.Ft % 1,601,770 Page 11 of 62

12 Component Inventory Detail Report See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost MECHANICAL/ELECTRICAL SYSTEMS Exterior Lighting 28 Exterior Address Light Each % 15, Exterior Bollard Light, Newer Each % 6, Exterior Bollard Light, Original Each % 57, Exterior Entry Lights Each % 17, Exterior Garage Light, Standard Each % 31, Exterior Lights, Balcony Each % 8, Exterior Pole Light Poles Each % 9, Exterior Pole Lights Each % 3,153 Fire & Alarm Systems 36 Fire Sprinkler System Repair/Modernize Each 1, % 223, Fire Standpipe System, 5-Yr Certification* Each % 12, Minor Repair Fund Each % 11,340 Plumbing 39 Drinking Fountain Each 1, % 1, Hot Water Heater, 40 gal., Economy Each 1, % 1, Sewage Utility Lines, Repair Fund Fund 150, % 157, Water Piping Replacement, Common Each 3, % 558,600 Page 12 of 62

13 Component Inventory Detail Report See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost Pool & Spa Mech & Elec Systems 43 Pool, Chlorinator Each % Pool Equipment Controller Each % Pool Filter Each 2, % 2, Pool Heater Each 4, % 4, Pool Pump Each 1, % 1, Spa, Chlorinator Each % Spa, Filter Each 2, % 2, Spa, Heater Each 3, % 4, Spa, Pumps Each 1, % 3,512 SITE SYSTEMS Exterior Furnishings 52 Park Bench Each % 6, Pool Furniture Fund 2, % 2,100 Fencing 54 Metal Fencing, Pool Ln.Ft % 20, Metal Fencing, Pool, Paint Ln.Ft % 1, Metal Patio Gate - 3' Each % 28, Metal Pedestrian Security Gate, Pool Each % Metal Pedestrian Security Gate, Sidewalk Access Each % 7, Metal Pedestrian Security Gate, Sidewalk Access - Auto Closers - None None None None 5.00% 0 OPERATING (As Needed) 60 Metal Vehicle Security Gate Each 1, % 3,490 Fire Access from Dublin Blvd. 61 Wood Fence w/ Pressure Treated Posts Ln.Ft % 18,244 Page 13 of 62

14 Component Inventory Detail Report See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost Landscape 62 Backflow Valve Repair/Replacement Fund Fund 3, % 3, CMU Block Retaining Wall, Paint Sq.Ft % 7, CMU Block Retaining Wall, Repair Sq.Ft % 49, Irrigation Controller Enclosures Each 1, % 9, Irrigation Controllers Each 1, % 9, Landscape Improvement Fund - Irrigation & General Landscape Fund 50, % 52,500 Upggrades 68 Landscape, Reclaimed Water Project Fund 53, % 56,070 Legacy item from previous report. 69 Plants & Refurbishment Each % 11, Tree Maintenance Fund 12, % 13,440 Misc. Site Systems 71 Monument Sign Each 1, % 3, Signage, Misc Fund 1, % 1,312 Pavement 73 Asphalt Pavement, Crack Fill, Seal Coat, Stripe Sq.Ft % 17, Asphalt Pavement, Major Replacement Sq.Ft % 388, Asphalt Pavement, Minor Repair-20% Sq.Ft % 83, Concrete Pavement, Repair Fund Fund 2, % 2, Concrete, Swimming Pool & Spa Deck, Repair 5% Sq.Ft % 4,541 Page 14 of 62

15 Component Inventory Detail Report See General Information for Definitions R.L. U.L. Def. Quantity Unit Cost PM&A Anticipated Total Cost Pool & Spa Site Systems 78 Coping Ln.Ft % 3, Mastic Ln.Ft % 1, Pool Plaster Sq.Ft.Surf % 19, Spa Plaster Sq.Ft.Surf % 2, Tile Ln.Ft % 2,817 Total 5,139,748 Page 15 of 62

16 Accountants Breakout Current Unit Cost Fully Funded Balance Current Fund Balance Annual Reserve Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month ADMINISTRATIVE Reserve Study Preparation 1 Reserve Study, Onsite 1, % Reserve Study, Update % Reserve Study, Update % BUILDING SYSTEMS Appurtenant Structure 4 Pool House, Refurbish 19,845 12,568 4, % Wood Trellises 11,143 7,057 2, % Wood Trellises (all), Paint 3,309 2, % Wood Trellis, Pool 14,338 9,081 3, % Balcony 8 Balcony Deck & Railing, Major Repair 302, ,640 48,541 7, % 5, Balcony Deck Surfacing, Resurface 102,726 78,072 26,383 4, % 2, Balcony Deck Surfacing, Seal 17,442 13,953 4,715 3, % 2, Metal Balcony Railing 73,469 34,898 11,793 1, % 1, Exterior Doors 12 Exterior Doors, Utility Closets 49,090 26,649 9,006 1, % Garage Door, Metal, Sectional, Double % HOMEOWNER RESPONSIBILITY 14 Garage Door, Metal, Sectional, Single - HOMEOWNER RESPONSIBILITY % Page 16 of 62

17 Accountants Breakout Current Unit Cost Fully Funded Balance Current Fund Balance Annual Reserve Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month Exterior Siding 15 Stucco Siding, 3% Repair 32,001 28,801 9,733 3, % 2, Stucco Siding, Paint 262, ,621 79,963 26, % 17, Wood Trim, Paint 33,056 26,445 8,937 6, % 4, Wood Trim, Repair Fund 19,567 15,653 5,290 3, % 2, Wood Trim, Window Shutters 238, ,100 64,579 47, % 32, Interior Renovation 20 Restrooms, Cabana 3,150 2, % Misc. Building Systems 21 Mail Boxes, 4"x5" Cluster 9,483 6,006 2, % Mailbox Kiosk, Refurbish 14,175 8,978 3, % Wood Destroying Pests, Treatment & Repairs 139,448 37,186 12,567 9, % 6, Roofing 24 Downspouts, Aluminum 46,873 29,686 10,032 1, % 1, Gutters, Aluminum 121,755 77,111 26,059 4, % 2, Roof Inspection & Repair 51,072 5,107 1,726 5, % 3, Tile Roofing, Replace Underlayment 1,601, , ,115 40, % 27, Page 17 of 62

18 Accountants Breakout Current Unit Cost Fully Funded Balance Current Fund Balance Annual Reserve Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month MECHANICAL/ELECTRICAL SYSTEMS Exterior Lighting 28 Exterior Address Light 15, % Exterior Bollard Light, Newer 6, % Exterior Bollard Light, Original 57,909 44,011 14,873 2, % 1, Exterior Entry Lights 17,712 13,461 4, % Exterior Garage Light, Standard 31,961 24,291 8,209 1, % Exterior Lights, Balcony 8,345 6,343 2, % Exterior Pole Light Poles 9,525 5,171 1, % Exterior Pole Lights 3,153 1, % Fire & Alarm Systems 36 Fire Sprinkler System Repair/Modernize 223, ,296 40,990 6, % 4, Fire Standpipe System, 5-Yr Certification* 12,096 4,838 1,635 2, % 1, Minor Repair Fund 11,340 4,536 1,533 2, % 1, Plumbing 39 Drinking Fountain 1,322 1, % Hot Water Heater, 40 gal., Economy 1,239 1, % Sewage Utility Lines, Repair Fund 157,500 59,850 20,225 3, % 2, Water Piping Replacement, Common 558, ,268 71,733 11, % 7, Page 18 of 62

19 Accountants Breakout Current Unit Cost Fully Funded Balance Current Fund Balance Annual Reserve Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month Pool & Spa Mech & Elec Systems 43 Pool, Chlorinator % Pool Equipment Controller % Pool Filter 2,283 1, % Pool Heater 4,725 3,308 1, % Pool Pump 1,756 1, % Spa, Chlorinator % Spa, Filter 2,283 1, % Spa, Heater 4, % Spa, Pumps 3,512 3,161 1, % SITE SYSTEMS Exterior Furnishings 52 Park Bench 6,615 5,954 2, % Pool Furniture 2,100 1, % Fencing 54 Metal Fencing, Pool 20,147 10,937 3, % Metal Fencing, Pool, Paint 1,648 1, % Metal Patio Gate - 3' 28,123 15,267 5, % Metal Pedestrian Security Gate, Pool % Metal Pedestrian Security Gate, Sidewalk Access 7,098 5,394 1, % Metal Pedestrian Security Gate, Sidewalk Access % Auto Closers - OPERATING (As Needed) 60 Metal Vehicle Security Gate 3,490 1, % Wood Fence w/ Pressure Treated Posts 18,244 15,756 5, % Page 19 of 62

20 Accountants Breakout Current Unit Cost Fully Funded Balance Current Fund Balance Annual Reserve Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month Landscape 62 Backflow Valve Repair/Replacement Fund 3,675 3,491 1, % CMU Block Retaining Wall, Paint 7,484 3,992 1, % CMU Block Retaining Wall, Repair 49,896 23,701 8,009 1, % Irrigation Controller Enclosures 9,823 6,221 2, % Irrigation Controllers 9,182 2, % Landscape Improvement Fund - Irrigation & 52,500 39,900 13,484 2, % 1, General Landscape Upggrades 68 Landscape, Reclaimed Water Project 56,070 21,307 7,200 1, % Plants & Refurbishment 11,970 9,576 3,236 2, % 1, Tree Maintenance 13,440 12,096 4,088 1, % Misc. Site Systems 71 Monument Sign 3,150 2, % Signage, Misc. 1, % Pavement 73 Asphalt Pavement, Crack Fill, Seal Coat, Stripe 17,955 17,955 6,068 3, % 2, Asphalt Pavement, Major Replacement 388, ,716 49,918 7, % 5, Asphalt Pavement, Minor Repair-20% 83,491 83,491 28,214 16, % 11, Concrete Pavement, Repair Fund 2,625 2, % Concrete, Swimming Pool & Spa Deck, Repair 5% 4, % Page 20 of 62

21 Accountants Breakout Current Unit Cost Fully Funded Balance Current Fund Balance Annual Reserve Accrual % of Annual Accrual/ Contribution Annual Contribution Contribution per Unit per Month Pool & Spa Site Systems 78 Coping 3,168 1, % Mastic 1, % Pool Plaster 19,085 11,133 3,762 1, % 1, Spa Plaster 2,310 1, % Tile 2,817 2, % Total 5,139,748 2,725, , , % 169, Page 21 of 62

22 Future Capital Needs Report ADMINISTRATIVE Annual Expense Totals: 3, ,050 15,659 51, , ,133 9,689 37,768 77,187 Reserve Study Preparation 1 Reserve Study, Onsite 0 0 1, , , Reserve Study, Update Reserve Study, Update BUILDING SYSTEMS Appurtenant Structure 4 Pool House, Refurbish Wood Trellises Wood Trellises (all), Paint 0 3, , Wood Trellis, Pool Balcony 8 Balcony Deck & Railing, Major Repair Balcony Deck Surfacing, Resurface , Balcony Deck Surfacing, Seal 0 17, , Metal Balcony Railing Exterior Doors 12 Exterior Doors, Utility Closets Garage Door, Metal, Sectional, Double HOMEOWNER RESPONSIBILITY 14 Garage Door, Metal, Sectional, Single - HOMEOWNER RESPONSIBILITY Page 22 of 62

23 Future Capital Needs Report Annual Expense Totals: 3, ,050 15,659 51, , ,133 9,689 37,768 77,187 Exterior Siding 15 Stucco Siding, 3% Repair Stucco Siding, Paint 0 270, Wood Trim, Paint 0 34, , Wood Trim, Repair Fund , Wood Trim, Window Shutters 0 246, , Interior Renovation 20 Restrooms, Cabana , Misc. Building Systems 21 Mail Boxes, 4"x5" Cluster Mailbox Kiosk, Refurbish Wood Destroying Pests, Treatment & Repairs Roofing 24 Downspouts, Aluminum Gutters, Aluminum Roof Inspection & Repair , Tile Roofing, Replace Underlayment Page 23 of 62

24 Future Capital Needs Report MECHANICAL/ELECTRICAL SYSTEMS Annual Expense Totals: 3, ,050 15,659 51, , ,133 9,689 37,768 77,187 Exterior Lighting 28 Exterior Address Light Exterior Bollard Light, Newer Exterior Bollard Light, Original , Exterior Entry Lights , Exterior Garage Light, Standard , Exterior Lights, Balcony , Exterior Pole Light Poles Exterior Pole Lights Fire & Alarm Systems 36 Fire Sprinkler System Repair/Modernize Fire Standpipe System, 5-Yr Certification* , , Minor Repair Fund , ,365 0 Plumbing 39 Drinking Fountain 0 0 1, Hot Water Heater, 40 gal., Economy 1, Sewage Utility Lines, Repair Fund Water Piping Replacement, Common Page 24 of 62

25 Future Capital Needs Report Annual Expense Totals: 3, ,050 15,659 51, , ,133 9,689 37,768 77,187 Pool & Spa Mech & Elec Systems 43 Pool, Chlorinator Pool Equipment Controller Pool Filter , Pool Heater , Pool Pump 0 1, Spa, Chlorinator Spa, Filter , Spa, Heater , Spa, Pumps 0 3, SITE SYSTEMS Exterior Furnishings 52 Park Bench 0 0 7, Pool Furniture 0 2, Fencing 54 Metal Fencing, Pool Metal Fencing, Pool, Paint 1, , Metal Patio Gate - 3' Metal Pedestrian Security Gate, Pool Metal Pedestrian Security Gate, Sidewalk Access , Metal Pedestrian Security Gate, Sidewalk Access Auto Closers - OPERATING (As Needed) 60 Metal Vehicle Security Gate Wood Fence w/ Pressure Treated Posts , Page 25 of 62

26 Future Capital Needs Report Annual Expense Totals: 3, ,050 15,659 51, , ,133 9,689 37,768 77,187 Landscape 62 Backflow Valve Repair/Replacement Fund 0 3, CMU Block Retaining Wall, Paint , CMU Block Retaining Wall, Repair Irrigation Controller Enclosures Irrigation Controllers Landscape Improvement Fund - Irrigation & , General Landscape Upggrades 68 Landscape, Reclaimed Water Project Plants & Refurbishment 0 12, , Tree Maintenance 0 13, Misc. Site Systems 71 Monument Sign , Signage, Misc , ,713 Pavement 73 Asphalt Pavement, Crack Fill, Seal Coat, Stripe 0 18, , Asphalt Pavement, Major Replacement Asphalt Pavement, Minor Repair-20% 0 85, , Concrete Pavement, Repair Fund 0 2, Concrete, Swimming Pool & Spa Deck, Repair 5% ,753 0 Page 26 of 62

27 Future Capital Needs Report Annual Expense Totals: 3, ,050 15,659 51, , ,133 9,689 37,768 77,187 Pool & Spa Site Systems 78 Coping Mastic 0 0 1, , Pool Plaster , Spa Plaster 0 0 2, , Tile , Page 27 of 62

28 Future Capital Needs Report ADMINISTRATIVE Annual Expense Totals: 4,577 1,587,246 2,328 41,934 4,842 3,181 1,221,009 72,172 50,621 97,380 Reserve Study Preparation 1 Reserve Study, Onsite 0 2, , , Reserve Study, Update Reserve Study, Update BUILDING SYSTEMS Appurtenant Structure 4 Pool House, Refurbish 0 27, Wood Trellises 0 15, Wood Trellises (all), Paint 0 4, , Wood Trellis, Pool 0 19, Balcony 8 Balcony Deck & Railing, Major Repair Balcony Deck Surfacing, Resurface Balcony Deck Surfacing, Seal 0 24, , Metal Balcony Railing Exterior Doors 12 Exterior Doors, Utility Closets , Garage Door, Metal, Sectional, Double HOMEOWNER RESPONSIBILITY 14 Garage Door, Metal, Sectional, Single - HOMEOWNER RESPONSIBILITY Page 28 of 62

29 Future Capital Needs Report Annual Expense Totals: 4,577 1,587,246 2,328 41,934 4,842 3,181 1,221,009 72,172 50,621 97,380 Exterior Siding 15 Stucco Siding, 3% Repair 0 44, Stucco Siding, Paint 0 363, Wood Trim, Paint 0 45, , Wood Trim, Repair Fund 0 27, , Wood Trim, Window Shutters 0 330, , Interior Renovation 20 Restrooms, Cabana Misc. Building Systems 21 Mail Boxes, 4"x5" Cluster 0 13, Mailbox Kiosk, Refurbish 0 19, Wood Destroying Pests, Treatment & Repairs 0 193, Roofing 24 Downspouts, Aluminum 0 64, Gutters, Aluminum 0 168, Roof Inspection & Repair , Tile Roofing, Replace Underlayment Page 29 of 62

30 Future Capital Needs Report MECHANICAL/ELECTRICAL SYSTEMS Annual Expense Totals: 4,577 1,587,246 2,328 41,934 4,842 3,181 1,221,009 72,172 50,621 97,380 Exterior Lighting 28 Exterior Address Light , Exterior Bollard Light, Newer Exterior Bollard Light, Original Exterior Entry Lights Exterior Garage Light, Standard Exterior Lights, Balcony Exterior Pole Light Poles , Exterior Pole Lights 0 4, Fire & Alarm Systems 36 Fire Sprinkler System Repair/Modernize , Fire Standpipe System, 5-Yr Certification* , , Minor Repair Fund , ,306 0 Plumbing 39 Drinking Fountain Hot Water Heater, 40 gal., Economy 0 0 1, Sewage Utility Lines, Repair Fund Water Piping Replacement, Common Page 30 of 62

31 Future Capital Needs Report Annual Expense Totals: 4,577 1,587,246 2,328 41,934 4,842 3,181 1,221,009 72,172 50,621 97,380 Pool & Spa Mech & Elec Systems 43 Pool, Chlorinator Pool Equipment Controller Pool Filter , Pool Heater , Pool Pump 0 2, Spa, Chlorinator Spa, Filter , Spa, Heater , Spa, Pumps 0 4, SITE SYSTEMS Exterior Furnishings 52 Park Bench Pool Furniture 0 2, Fencing 54 Metal Fencing, Pool , Metal Fencing, Pool, Paint 2, , Metal Patio Gate - 3' , Metal Pedestrian Security Gate, Pool , Metal Pedestrian Security Gate, Sidewalk Access Metal Pedestrian Security Gate, Sidewalk Access Auto Closers - OPERATING (As Needed) 60 Metal Vehicle Security Gate Wood Fence w/ Pressure Treated Posts Page 31 of 62

32 Future Capital Needs Report Annual Expense Totals: 4,577 1,587,246 2,328 41,934 4,842 3,181 1,221,009 72,172 50,621 97,380 Landscape 62 Backflow Valve Repair/Replacement Fund CMU Block Retaining Wall, Paint CMU Block Retaining Wall, Repair Irrigation Controller Enclosures 0 13, Irrigation Controllers 0 12, Landscape Improvement Fund - Irrigation & General Landscape Upggrades 68 Landscape, Reclaimed Water Project Plants & Refurbishment 0 16, , Tree Maintenance 0 18, Misc. Site Systems 71 Monument Sign Signage, Misc , Pavement 73 Asphalt Pavement, Crack Fill, Seal Coat, Stripe 0 24, , Asphalt Pavement, Major Replacement Asphalt Pavement, Minor Repair-20% 0 115, , Concrete Pavement, Repair Fund 0 3, Concrete, Swimming Pool & Spa Deck, Repair 5% ,731 0 Page 32 of 62

33 Future Capital Needs Report Annual Expense Totals: 4,577 1,587,246 2,328 41,934 4,842 3,181 1,221,009 72,172 50,621 97,380 Pool & Spa Site Systems 78 Coping , Mastic 1, , , Pool Plaster , Spa Plaster , Tile Page 33 of 62

34 Future Capital Needs Report ADMINISTRATIVE Annual Expense Totals: 6,295 5,172,920 46,165 66,354 3,319 42,473 1,245, , ,646 Reserve Study Preparation 1 Reserve Study, Onsite 3, , , ,330 2 Reserve Study, Update Reserve Study, Update BUILDING SYSTEMS Appurtenant Structure 4 Pool House, Refurbish Wood Trellises Wood Trellises (all), Paint 0 6, , Wood Trellis, Pool Balcony 8 Balcony Deck & Railing, Major Repair 0 562, Balcony Deck Surfacing, Resurface Balcony Deck Surfacing, Seal 0 32, , Metal Balcony Railing 0 136, Exterior Doors 12 Exterior Doors, Utility Closets Garage Door, Metal, Sectional, Double HOMEOWNER RESPONSIBILITY 14 Garage Door, Metal, Sectional, Single - HOMEOWNER RESPONSIBILITY Page 34 of 62

35 Future Capital Needs Report Annual Expense Totals: 6,295 5,172,920 46,165 66,354 3,319 42,473 1,245, , ,646 Exterior Siding 15 Stucco Siding, 3% Repair 0 59, Stucco Siding, Paint 0 489, Wood Trim, Paint 0 61, , Wood Trim, Repair Fund 0 36, , Wood Trim, Window Shutters 0 444, , Interior Renovation 20 Restrooms, Cabana Misc. Building Systems 21 Mail Boxes, 4"x5" Cluster Mailbox Kiosk, Refurbish Wood Destroying Pests, Treatment & Repairs , Roofing 24 Downspouts, Aluminum Gutters, Aluminum Roof Inspection & Repair , Tile Roofing, Replace Underlayment 0 2,979, Page 35 of 62

36 Future Capital Needs Report MECHANICAL/ELECTRICAL SYSTEMS Annual Expense Totals: 6,295 5,172,920 46,165 66,354 3,319 42,473 1,245, , ,646 Exterior Lighting 28 Exterior Address Light Exterior Bollard Light, Newer , Exterior Bollard Light, Original Exterior Entry Lights Exterior Garage Light, Standard Exterior Lights, Balcony Exterior Pole Light Poles Exterior Pole Lights Fire & Alarm Systems 36 Fire Sprinkler System Repair/Modernize Fire Standpipe System, 5-Yr Certification* , , Minor Repair Fund , ,945 0 Plumbing 39 Drinking Fountain 0 0 2, Hot Water Heater, 40 gal., Economy , Sewage Utility Lines, Repair Fund Water Piping Replacement, Common Page 36 of 62

37 Future Capital Needs Report Annual Expense Totals: 6,295 5,172,920 46,165 66,354 3,319 42,473 1,245, , ,646 Pool & Spa Mech & Elec Systems 43 Pool, Chlorinator Pool Equipment Controller 0 1, Pool Filter , Pool Heater , Pool Pump 0 3, Spa, Chlorinator Spa, Filter , Spa, Heater , Spa, Pumps 0 6, SITE SYSTEMS Exterior Furnishings 52 Park Bench , Pool Furniture 0 3, Fencing 54 Metal Fencing, Pool Metal Fencing, Pool, Paint 2, , Metal Patio Gate - 3' Metal Pedestrian Security Gate, Pool Metal Pedestrian Security Gate, Sidewalk Access Metal Pedestrian Security Gate, Sidewalk Access Auto Closers - OPERATING (As Needed) 60 Metal Vehicle Security Gate 0 6, Wood Fence w/ Pressure Treated Posts , Page 37 of 62

38 Future Capital Needs Report Annual Expense Totals: 6,295 5,172,920 46,165 66,354 3,319 42,473 1,245, , ,646 Landscape 62 Backflow Valve Repair/Replacement Fund 0 6, CMU Block Retaining Wall, Paint , CMU Block Retaining Wall, Repair 0 92, Irrigation Controller Enclosures Irrigation Controllers , Landscape Improvement Fund - Irrigation & General Landscape Upggrades 68 Landscape, Reclaimed Water Project Plants & Refurbishment 0 22, , Tree Maintenance 0 25, Misc. Site Systems 71 Monument Sign Signage, Misc , Pavement 73 Asphalt Pavement, Crack Fill, Seal Coat, Stripe 0 33, , Asphalt Pavement, Major Replacement Asphalt Pavement, Minor Repair-20% 0 155, , Concrete Pavement, Repair Fund 0 4, Concrete, Swimming Pool & Spa Deck, Repair 5% ,390 0 Page 38 of 62

39 Future Capital Needs Report Annual Expense Totals: 6,295 5,172,920 46,165 66,354 3,319 42,473 1,245, , ,646 Pool & Spa Site Systems 78 Coping Mastic 0 0 2, , Pool Plaster , Spa Plaster , Tile ,639 Page 39 of 62

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62 Assessment and Reserve Funding Disclosure Summary Assessment and Reserve Funding Disclosure Summary For the Fiscal Year Ending December 31, 2019 (1) The current assessment per ownership interest is $ per month. Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page of the attached summary. (2) Additional regular or special assessments that have already been scheduled to be imposed or charged, regardless of the purpose, if they have been approved by the board and/or members: Date assessment will be due: None Amount per ownership interest month: Purpose of the assessment: Note: If assessments vary by the size or type of ownership interest, the assessment applicable to this ownership interest may be found on page of the attached report. (3) Based upon the most recent reserve study and other information available to the board of directors, will currently projected reserve account balances be sufficient at the end of each year to meet the association's obligation for repair and/or replacement of major components during the next 30 years. Yes (4) If the answer to (3) is no, what additional assessments or other contributions to reserves would be necessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have not yet been approved by the board or the members: Approximate date assessment will be due: Amount per ownership interest: (5) All major components are included in the reserve study and are included in its calculations. (6) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570, the estimated amount required in the reserve fund at the end of the current fiscal year is $2,725,318.47, based in whole or in part on the last reserve update prepared by SMA Reserves as of October 3, The projected reserve fund cash balance at the end of the current fiscal year is $920,981.62, resulting in reserves being 34% funded at this date. (7) Based on the method of calculation in paragraph (4) of subdivision (b) of Section 5570 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five budget years is (below), and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is (below), leaving the reserve at (below) percent funded. If the reserve funding proved by the association is implemented, the projected reserve fund cash balance in each of those years will be (below), leaving the reserve at (below) percent funded. FY Ending Fully Funded Balance Projected Reserve Fund Balance Percent Funded ,059,877 1,096,285 36% ,674, ,213 22% ,010, ,091 27% ,328,400 1,028,777 31% ,716,126 1,356,067 36% Note: The financial representations set forth in this summary are based on the best estimates of the preparer at that time. The estimates are subject to change. At the time this summary was prepared, the assumed long-term before-tax interest rate earned on reserve funds was 1.00% per year, and the assumed long-term inflation rate to be applied to major component repair and replacement costs was 3.00% per year. Page 62 of 62