RESERVESTUDYUPDATE. The Villas at Blackberry Run Dallas, GA. Prepared for:

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1 RESERVESTUDYUPDATE Dallas, GA Prepared for: THE VILLAS AT BLACKBERRY RUN HOME OWNERS ASSOCIATION, INC. Carl Swanson-President Prepared by: CRITERIUM-CARUSO ENGINEERS 1065 POWERS PLACE, SUITE B ALPHARETTA, GA (770) Project No July 27, 2016 TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY INTRODUCTION ABOUT THE PROJECT COMMON AREAS AREAS THAT ARE SPECIFICALLY EXCLUDED INSPECTION AND INTERVIEWS... 4 Page 1

2 2.5 PLANS AND PROPOSALS PURPOSE REPORT BASIS FOCUS RESPONSIBILITY STATEMENT RECOMMENDATIONS AND COMMENTS STATEMENT PROPERTY DESCRIPTION BUILDINGS OTHER FACILITIES ACCESS AND PARKING CONCLUSIONS FUTURE CAPITAL IMPROVEMENTS/MAINTENANCE RESERVE FUND BUDGET... 7 Villas at Blackberry Run 2016 Update Final Page 2

3 1.0 EXECUTIVE SUMMARY Based upon the information provided to us, and our own estimates of costs and useful lives of capital assets, the existing Reserve Fund with the current annual contributions will be adequate over the next 20 years but will not be adequate to fund the reasonably expected capital expenditures over the entire 30 year life of this study. The table in Section 6.0 summarizes our recommendations for the Reserve Study funding based upon the desires of the community. Escalation of contributions to the reserve study have been eliminated and a level funding plan has been developed and is shown as Alternative 1 in the table in Section 6.0 of this report and in the Appendix to this report. Contributions are based upon the previous 2015 reserve study update with some modifications. A threshold amount of $ 21,000 has been established by the Association in this baseline funding model. This threshold was established by the Association to address unplanned/unanticipated capital expenses. According to a 2016 reserve fund regulation promulgated by the Association, reserve funds will need to be replaced according to the guidelines of this regulation. The input assumptions are noted in the Reserve Study update and are based upon the information given to us by Carl Swanson, President of the Association and information provided during our 2015 update. 1.1 Project Identification Name: Homeowners Association, Inc. Homeowners Association owns a clubhouse along with other common grounds and facilities. Number of homes: 78 Approximate date construction started: 2005 through INTRODUCTION 2.1 About the Project Criterium-Caruso Engineers has been retained by the Association to perform an update to our 2015 Reserve Study update for the common facilities at this location. No site review was performed for this update. Villas at Blackberry Run 2016 Update Final Page 3

4 2.2 Common areas Clubhouse exterior and interior, including mechanical, electrical, and plumbing systems, asphalt parking lot, retaining walls, sidewalks, landscaped grounds, fences, entrances, exterior lighting, entry signage, custom street and traffic signs, and drainage structures. 2.3 Areas that are specifically excluded Private residences. 2.4 Inspection and Interviews Performed by: Date performed: NA NA 2.5 Plans and Proposals 2.6 Purpose 2.7 Report Basis Individuals interviewed for this update regarding this property: Carl Swanson of the Association These individuals and the Board of Directors provided information in regard to the facilities and finances of the Association. Plans Reviewed: Final plats Proposals Reviewed:None Other drawings made available: None Original documentation made available: Declaration of Covenants The purpose of this report is to incorporate changes to the 2015 reserve study update for the common areas of this facility. Based upon our previous reviews and new information provided by the Association, we have developed an inventory of the existing major components and projected estimated future expected useful lives for each of these components This report is based on our previous examination of the common and limited common areas that were accessible on this project. Villas at Blackberry Run 2016 Update Final Page 4

5 All measurements or quantities are approximate. Any quantities are based upon field measurements when plans of the buildings or site are not provided to us. 2.8 Focus Please keep in mind that our previous review of this facility focused on changes to the condition of the structural, mechanical and functional conditions of the common areas. Information provided by the representatives of the association regarding financial, physical, quantity or historical issues will be deemed reliable by Criterium-Caruso Engineers. The reserve study will be a reflection of the information provided to us and assembled for the association s use. An independent audit or verification of the information provided to us is beyond the scope of this study. The purpose of this study is not to perform an audit, quality/forensic analyses or to perform background checks of historical records. This study relies on data provided to us by the client, his representative, his contractors and/or his management company. 2.9 Responsibility Statement As Professional Engineers, it is our responsibility to evaluate available evidence relevant to the purpose of this inspection. We are not, however, responsible for conditions that could not be seen or were not within the scope of our service at the time of the inspection. Compliance with any specifications, except as expressly noted, legal, or code compliance is specifically excluded. This is not an environmental scan. No review of construction documents is included herein, and no comments are made regarding conformance or non-conformance to plans and specifications. No guarantee or warranty as to future life, performance, or need for repair of any item inspected is intended or implied Recommendations and Comments Statement The recommendations and comments included in this report are based on the experience of Criterium-Caruso Engineers. Any costs or other comments contained herein do not necessarily infer that subcontracts, quotes or opinions of other professionals were solicited or obtained. Estimated costs are based upon Building Construction Cost Data published by RS Means and others and our general knowledge of the construction industry in this area. 3.0 PROPERTY DESCRIPTION 3.1 Buildings There is a one-story clubhouse building with an exterior deck constructed near the entrance to the neighborhood. Villas at Blackberry Run 2016 Update Final Page 5

6 3.2 Other Facilities 3.3 Access and Parking 4.0 CONCLUSIONS Other facilities on this property include an asphalt parking lot and common grounds. The neighborhood is accessed from Blackberry Run Trail and is located in the Seven Hills Development in Dallas, Georgia. There is parking in the lot adjacent to the clubhouse. We recommend that this report and the conditions presented be updated and verified periodically. This updating may identify additional concerns which may have developed during this time period which, if planned for early enough, may be coordinated into current funding budgets with the least impact on the individual homeowners. This report has been prepared in strict confidence with you as our client. No reproduction or re-use will be undertaken with any third party without your express written consent or oral consent. 5.0 FUTURE CAPITAL IMPROVEMENTS/MAINTENANCE The following table summarizes the maintenance and upgrade items recommended for this facility over the next 30 years. The purpose of this plan is to assist you in organizing the work that we have recommended for the next 30 years. Costs are developed through our own experience and obtained from published cost indexes such as Means Construction Cost Data and Whitestone Building Maintenance and Repair Cost Reference. These costs are our professional opinion only and are not a guarantee that construction costs will not vary from the estimates. Useful life information is obtained from published information provided by the Federal National Mortgage Association (FNMA), other authoritative sources, and our own experience. This information lists national averages for component useful lives. The following cost estimates are provided to give you a "range of magnitude" understanding of the costs of the recommended repairs. Many different variables, such as season, locale, and inflation, for example, affect the final cost of any project. The cost of labor, materials, equipment and the means, methods and procedures for the work are volatile and affected by many outside factors such as market conditions. Consultation with a competent contractor capable of performing this work will provide you with a much more precise estimate. Villas at Blackberry Run 2016 Update Final Page 6

7 Preventative Maintenance: Associations should establish a preventative maintenance schedule so that components are maintained properly and will attain their design useful lives. Lack of proper maintenance could shorten the useful lives of components requiring additional costs. Villas at Blackberry Run 2016 Update Final Page 7

8 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each SITE 7/27/2016 Remaining Useful life Unit Projected Capital ItemTo Be Replaced Action life (Years) Quantity Price Unit Total Cost Notes 1 Asphalt parking lot Sealcoat, restripe, repair $1.53 SY $1,224 sealcoated around Asphalt parking lot Replace/overlay $15.30 SY $12,240 3 Lawn irrigation systems Maintenance/repairs $3, LS $3,000 Allowance per Association 4 Lawn irrigation systems Maintenance/repairs $3, LS $3,000 5 Lawn irrigation systems Upgrades/repairs $4, LS $4,162 6 Lawn irrigation systems Upgrades/repairs $5, LS $5,000 7 Stone entrance monument & columns Repoint, repair $1, LS $1,530 8 Wood fencing - all Stain/paint $4.66 LF $1,515 Painted around 2012, to be painted again in Wood fencing - all Replace $20.00 LF $6, Concrete sidewalks Repair/replace $1, LS $1, Corrugated metal drainage pipe and inlets Repair/replace Modular retaining wall Repair/replace Behind clubhouse 13 Railing/fence at modular retaining wall Included in 5 14 Railing/fence at modular retaining wall Included in 6 Installed in 2010/ Custom street and traffic signs Paint, repair Master Association Responsibility 16 Custom street and traffic signs Replace Master Association Responsibility 17 ID sign at entrance monument Replace $1, EA $1, Clubhouse sign Replace $1, EA $1, Site electrical Repair $3, LS $3, Landscaping Replacement Allowance $4, LS $4, update final Criterium-Caruso Engineers Component Inventory Summary

9 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each 21 Landscaping upgrades Upgrade $8, LS $8, Grading and erosion control Repair,grade,protect $8, LS $8,900 Drainage improvement on North side completed CLUBHOUSE 25 7/27/2016 Remaining Useful life Unit Projected Capital ItemTo Be Replaced Action life (Years) Quantity Price Unit Total Cost Notes 26 Structure Repair/replace Roofing-asphalt shingles Replace $3.24 SF $9, Metal roofing (over deck) Repair/paint $1, LS $1, Gutters and downspouts Replace $2, LS $2, Exterior Repair/paint $3, LS $3,774 Painted 2015/ Exterior deck (composite decking) Repair/replace $22.44 SF $16,830 Repaired/Replaced in 2010/ Exterior deck railing (wood & comp. matl) Repair/replace $3, LS $3, Electric furnaces Replace $2, EA $4, Electric water heater Replace $ EA $ gal, HVAC condenser Replace $3, EA $3,060 2 ton, HVAC condenser Replace $4, EA $4,080 3 ton, Security System Upgrade/replace $ LS $ Fire alarm system Replace detectors $ LS $ Emergency lighting Replace $ LS $ Electrical Panels, switches Repair/replace $5, LS $5, Plumbing Fixtures Repair/replace $2, LS $2, update final Criterium-Caruso Engineers Component Inventory Summary

10 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each 42 Fitness Equipment Repair/replace $5, LS $5, TV in fitness room Replace $ LS $ Doors, windows and hardware Repair/replace $2, LS $2, Fans Replace $ LS $700 Replacement of exterior porch fans 46 Fireplace (ventless) Repair/replace $3, LS $3, Bathroom remodeling Remodel/paint $ EA $816 7/27/2016 Remaining Useful life Unit Projected Capital ItemTo Be Replaced Action life (Years) Quantity Price Unit Total Cost Notes 48 Interior remodeling Remodel/paint $3, LS $3,060 Wood floor 49 Club room Floor Replace $8, LS $8, Interior furniture Replace $20, LS $20, Interior carpet Replace $30.60 SY $3, Porch and deck furniture Replace $5, LS $5, TV and sound system in clubroom Replace $ LS $ kitchen remodeling Remodel $1, LS $1, Kitchen appliances Replace $2, LS $2, Kitchen warming oven Upgrade $1, LS $1, Gas grille Replace $1, LS $1, Front porch decorative concrete Repair/replace $5, LS $5, update final Criterium-Caruso Engineers Component Inventory Summary

11 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each 7/27/2016 Remaining Useful life Unit Projected Capital ItemTo Be Replaced Action life ( Years ) Quantity Price Unit Total Cost Notes TOTALS $188,952 Costs are + or - 10 %; Costs are based upon published costs update final Criterium-Caruso Engineers Component Inventory Summary

12 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each Quantities are based upon readily available information and are only used to provide approximate estimates of costs. The quantities are approximate and should not be used for any other purposes. Reserve study is based on a 20 year projection of non-annual maintenance The cost estimates are provided to give you a "range of magnitude" understanding of the costs of the recommended repairs. Many different variables, such as season, locale and inflation affect the final cost of any project. Costs and other comments contained in this report do not necessarily infer that subcontracts, quotes or opinions of other professionals were solicited or obtained. Estimated costs are based upon published Building Construction Cost Data and our general knowledge of the construction industry in this area. Useful life information is obtained from published information provided by Federal National Mortgage Association (FNMA), other authoritative sources and our own experience. This information lists national averages for component useful llives update final Criterium-Caruso Engineers Component Inventory Summary

13 6.0 RESERVE FUND BUDGET Type of Funding The intent of this study is to assist the Association in developing Maintenance and Reserve Funds which are of sufficient size to cover anticipated repairs/replacements of various system components within this facility during the next 30 years. The Reserve Study update is based upon a 30-year projection of non-annual maintenance and capital improvements. This study provides a limited level of service including component inventory, life and valuation estimates, fund status, and funding plan. Based upon the information provided to us, and our own estimates of costs and useful lives of capital assets, the existing Reserve Fund with the current annual contributions will be adequate over the next 20 years but will not be adequate to fund the reasonably expected capital expenditures over the entire 30 year life of this study. The following table summarizes our recommendations for the Reserve Study funding based upon the desires of the community. Escalation of contributions to the reserve study have been eliminated and a level funding plan has been developed and is shown as Alternative 1 in the table below and in the Appendix to this report. Contributions are based upon the previous 2015 reserve study update with some modifications and a threshold amount of $ 21,000 has been established by the Association in this baseline funding model. This threshold was established by the Association to address unplanned/unanticipated capital expenses. According to a 2016 reserve fund regulation promulgated by the Association, reserve funds will need to be replaced according to the guidelines of this regulation. Special Assessments Annual Contribution to the Reserve Fund Currently Funded level NA $ 10,764 $ 138 Annual contribution to the Reserve Fund per unit Villas at Blackberry Run 2016 Update Final Page 7

14 Level Funding-Alt. #1 represents level funding with no escalation or special assessments, and a baseline threshold for the fund that would not drop below $ 21,000 (See Appendix A) NA $ 14,400 $ Previous Escalating Annual Contribution-Alt. #4 as shown in the 2015 reserve study update with a baseline threshold for the fund that would not drop below $0. (See Appendix B). NA $ 10,764 in 2016 through 2018; $10,951 in 2019 through 2021; $11,138 in 2022 through 2024; then escalating 5% per year thereafter until $ 138 in 2016 through 2018; $ in 2019 through 2021; $ in 2022 through 2024; then escalating 5% per year thereafter until The updated Reserve Study in the Appendix is provided for your use and review. Our study is based upon a baseline-funding concept and we attempt to maintain a positive balance in the reserve fund over the period of the study. Inflation Rate Note: Unless the inflation rate is specified by the client, we use an inflation rate that is based upon the current increase in the consumer price index for all urban consumers over the past year. The rate used is noted in the financial input page of the reserve study and is used over the entire duration of the study. We make no forecast of the inflation rate over periods beyond the current year. Any significant change in the rate of inflation in subsequent years will have a significant impact on the outcome of this study. The client should make his own forecast of future inflation rates. Significant changes in the inflation rate would warrant an update of this study. RESERVE STUDY TABLE OF CONTENTS: Component Inventory Summary: (included after the Future Capital Improvements/Maintenance section of the report) Villas at Blackberry Run 2016 Update Final Page 8

15 This section lists an inventory of reserve study components along with an estimated remaining life, established design useful life, actions to be completed, quantities where applicable, unit cost for the action noted and the projected total cost in current dollars. This section may also note particulars of the components, responsibility in multi-use associations and shared costs where applicable. Information below is included in Reserve Fund Appendix or Appendices of the report Input Financial: This section lists the particulars of the property such as number of units, age of property, base dates, beginning reserve fund balance, inflation rate used and estimated rate of return on invested funds. This section also notes the particulars of any existing reserve fund contribution levels and planned special assessments. Most of the information on this sheet is provided to the reserve fund preparer by the Association or the Association s management company. Alternative funding: This section of the report outlines alternatives when the existing funding level is inadequate. These represent our recommendations for funding the reserves. Alternative 1 represents level funding with no escalation or special assessments, and a baseline threshold for the fund that would not drop below $ 21,000 Yearly Funding sheets: Yearly funding tables are provided for current and all alternative funding recommendations. These tables summarize the beginning reserve fund balance, revenues, special assessments, investment earnings, and capital expenditures by year. The tables note the estimated reserve fund balance at the end of each year. Graphs: The graphs after each yearly funding sheet graphically represent the information in the yearly funding tables. No portion of the graphs for the alternative funding recommendations should drop below zero. Annual Replacement Cost Expense: This table notes the year of occurrence for each anticipated action with item description for each inventoried reserve item and the estimated cost in inflated dollars. The bottom of the table summarizes the total anticipated costs for each year of the study in inflated dollars. Summary Reserve Balance: The chart and graph on these sheets graphically summarizes the year end balances in the reserve fund for each recommended funding alternative. The chart on this sheet lists the funding year, estimated yearly capital expenditures (inflated) and the ending reserve fund balances for each recommended funding alternative. Villas at Blackberry Run 2016 Update Final Page 9

16 APPENDIX A: 2016 UPDATED RESERVE FUND Villas at Blackberry Run 2016 Update Final Appendix A

17 Reserve Study Worksheet Organization: 33 Shoal Creek Way General Information: 7/27/2016 Dallas, GA # of Units Beginning Reserve Fund balance Age of Buildings As of date: 10 Site Inspection Date... Base Dates for Reserve Study: Base Year... 6/24/ $129,492 Year Month Day Base Month Jun-16 Base Day... Investment Rate of Return on Reserve Funds (%) Inflation Rate (%) (See Note below) Additional amount to be contributed this year 0.04% 2.00 % $10, Existing Reserve Fund Contribution Levels Total/Month Total Annual Per Unit/Month Per Unit/Year Current Reserve Fund Contribution: $897$11.50 $10,764 $ Current Planned Special Assessment:N/A Year Planned Total Annual Per Unit/Month N/A N/A Per Unit/Year N/A Requested information for the shaded entries were provided by the Association or the Property Manager * notes information that was not provided by the Association or the Property manager Inflation Rate Note: Unless the inflation rate is specified by the client, we use an inflation rate that is based upon the current increase in the consumer price index for all urban consumers over the past year. This rate is used over the entire duration of the study. We make no forecast of the inflation rate over periods beyond the current year. Any significant change in the rate of inflation in subsequent years will have a significant inpact on the outcome of this study. The client should make his own forecast of future inflation rates. Significant changes in the inflation rate would warrant an update of this study update final Criterium-Caruso Engineers Appendix-Financial Input Worksheet Page 11

18 7/27/2016 Reserve Study Alternative Funding Contribution Recommendations Alternative 1, Recommendation Based on Level Funding, no escalation or special assessments, and a baseline threshold for th Alternative 1, Reserve Fund Contribution: Total/Month $1,200 Total/Annual $14,400 Per Unit/Month $15.38 Per Unit/Year $ Page 12

19 2016 update final Criterium Caruso Engineers Appendix-Alternative Funding Recommendations Dallas, GA 7/27/2016 Current Funding Level Reserve Fund Worksheet Projected Years Beginning Year Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $129,492 $127,284 $91,897 $98,302 $101,589 $106,888 $78,828 $85,028 $92,379 $95,547 $10,563 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $46 $33 $35 $37 $38 $28 $31 $33 $34 $28 $12,817 $46,184 $4,395 $7,513 $5,504 $38,853 $4,595 $3,446 $7,630 $29,592 $127,284 $91,897 $98,302 $101,589 $106,888 $78,828 $85,028 $92,379 $95,547 $76,747 Projected Years Beginning Year Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $76,747 $64,693 $60,660 $64,352 $75,143 $66,820 $57,309 $33,094 $43,874 $48,828 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $23 $22 $23 $27 $24 $21 $12 $16 $18 $6 $22,842 $14,819 $7,095 $0 $19,111 $20,296 $34,990 $0 $5,827 $42,262 $64,693 $60,660 $64,352 $75,143 $66,820 $57,309 $33,094 $43,874 $48,828 $17,337 Projected Years Beginning Year Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: $17,337 ($46,596) ($55,532) ($44,768) ($34,004) ($39,950) ($47,593) ($38,877) ($28,113) ($19,986) Page 13

20 Revenue: Special Assessments: Investment Earnings: Capital Expenditures: Ending Reserve Balance: 2016 update final Criterium-Caruso Engineers $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $74,696 $19,701 $0 $0 $16,709 $18,408 $2,048 $0 $2,637 $20,921 ($46,596) ($55,532) ($44,768) ($34,004) ($39,950) ($47,593) ($38,877) ($28,113) ($19,986) ($30,144) Appendix-Current Funding Projection Reserve Study 7/27/2016 CURRENTLY FUNDED LEVELS Current Reserve Balance: $129,492 Annual Contribution: $10,764 Per Month Amount: $ Per Unit Monthly Amount: $11.50 Special Assessment Amount: Year of Special Assessment Projected Annual Funding and Expenditures: Year: N/A N/A End of Year Reserve Fund Balance $127,284 $91,897 $98,302 $101,589 $106,888 $78,828 $85,028 $92,379 $95,547 $76,747 $64,693 $60,660 $64,352 $75,143 $66,820 $57,309 Capital Expenditures: $12,817 $46,184 $4,395 $7,513 $5,504 $38,853 $4,595 $3,446 $7,630 $29,592 $22,842 $14,819 $7,095 $0 $19,111 $20,296 Total Revenue (all sources) $10,609 $10,797 $10,799 $10,801 $10,802 $10,792 $10,795 $10,797 $10,798 $10,792 $10,787 $10,786 $10,787 $10,791 $10,788 $10,785 Year: End of Year Reserve Fund Balance $33,094 $43,874 $48,828 $17,337 -$46,596 -$55,532 -$44,768 -$34,004 -$39,950 -$47,593 -$38,877 -$28,113 -$19,986 - $30,144 Page 14

21 Capital Expenditures: $34,990 $0 $5,827 $42,262 $74,696 $19,701 $0 $0 $16,709 $18,408 $2,048 $0 $2,637 $20,921 Total Revenue (all sources) $10,776 $10,780 $10,782 $10,770 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10,764 $10, update final Criterium-Caruso Engineers $150,000 Appendix-Chart-Current Funding CURRENTLYFUNDEDLEVEL $100,000 $50,000 $ $ 50,000 -$100,000 Funding Years Page 15

22 2016 update final Graph Current funding Dallas, GA 7/27/2016 Alternative 1, Recommendation Based on Level Funding, no escalation or special assessments, and a baseline threshold for the fund that would not drop below $ 21,000. Reserve Fund Worksheet Projected Years Beginning Year Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: Revenue: Investment Earnings: Capital Expenditures: Ending Reserve Balance: Projected Years Beginning Year $129,492 $127,284 $95,535 $105,578 $112,505 $121,445 $97,028 $106,871 $117,868 $124,682 $10,563 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $46 $34 $38 $40 $44 $35 $38 $42 $45 $39 $12,817 $46,184 $4,395 $7,513 $5,504 $38,853 $4,595 $3,446 $7,630 $29,592 $127,284 $95,535 $105,578 $112,505 $121,445 $97,028 $106,871 $117,868 $124,682 $109, Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: Revenue: Investment Earnings: Capital Expenditures: Ending Reserve Balance: Projected Years Beginning Year $109,530 $101,125 $100,742 $108,086 $122,530 $117,861 $112,006 $91,449 $105,887 $114,501 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $36 $36 $39 $44 $42 $40 $33 $38 $41 $31 $22,842 $14,819 $7,095 $0 $19,111 $20,296 $34,990 $0 $5,827 $42,262 $101,125 $100,742 $108,086 $122,530 $117,861 $112,006 $91,449 $105,887 $114,501 $86, Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: $86,670 $26,383 $21,090 $35,503 $49,921 $47,629 $43,637 $56,009 $70,434 $82,227 Page 16

23 Revenue: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $14,400 $9 $8 $13 $18 $17 $16 $20 $25 $30 $27 $74,696 $19,701 $0 $0 $16,709 $18,408 $2,048 $0 $2,637 $20,921 $26,383 $21,090 $35,503 $49,921 $47,629 $43,637 $56,009 $70,434 $82,227 $75, update final Criterium-Caruso Engineers Appendix-Alternative Funding 1 Reserve Study 7/27/2016 Alternative 1, Recommendation Based on Level Funding, no escalation or special assessments, and a baseline threshold for the fund that would not drop below $ 21,000. Current Reserve Balance: $129,492 Annual Contribution: $14,400 Per Month Amount: $1, Per Unit Monthly Amount: $15.38 Projected Annual Funding and Expenditures: Year: End of Year Reserve Fund Balance $127,284 $95,535 $105,578 $112,505 $121,445 $97,028 $106,871 $117,868 $124,682 $109,530 $101,125 $100,742 $108,086 $122,530 $117,861 $112,006 Capital Expenditures: $12,817 $46,184 $4,395 $7,513 $5,504 $38,853 $4,595 $3,446 $7,630 $29,592 $22,842 $14,819 $7,095 $0 $19,111 $20,296 Total Revenue (all sources) $10,609 $14,434 $14,438 $14,440 $14,444 $14,435 $14,438 $14,442 $14,445 $14,439 $14,436 $14,436 $14,439 $14,444 $14,442 $14,440 Page 17

24 Year: End of Year Reserve Fund Balance $91,449 $105,887 $114,501 $86,670 $26,383 $21,090 $35,503 $49,921 $47,629 $43,637 $56,009 $70,434 $82,227 $75,733 Capital Expenditures: $34,990 $0 $5,827 $42,262 $74,696 $19,701 $0 $0 $16,709 $18,408 $2,048 $0 $2,637 $20,921 Total Revenue (all sources) $14,433 $14,438 $14,441 $14,431 $14,409 $14,408 $14,413 $14,418 $14,417 $14,416 $14,420 $14,425 $14,430 $14, update final Criterium-Caruso Engineers Appendix-Chart-Alternative 1 Funding Alternative 1, Recommendation Based on Level Funding, no escalation or special assessments, and a baseline threshold for the fund that would not drop below $ 21,000. Page 18

25 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ Funding Years 2016 update final Graph Alt 1 Page 19

26 Reserve Study 7/27/2016 Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor ITEM DESCRIPTION ACTION YEAR> ACTION Asphalt parking lot Sealcoat, restripe, repair $1,273 $1,434 $1,615 2 Asphalt parking lot Replace/overlay $16,150 3 Lawn irrigation systems Maintenance/repairs $3,060 $3,121 $3,184 4 Lawn irrigation systems Maintenance/repairs $3,446 $3,730 5 Lawn irrigation systems Upgrades/repairs $4,162 6 Lawn irrigation systems Upgrades/repairs $5,100 7 Stone entrance monument & columns Repoint, repair $1,689 8 Wood fencing - all Stain/paint $1,515 $1,639 $1,774 $1,921 9 Wood fencing - all Replace 10 Concrete sidewalks Repair/replace $1,656 $1, Corrugated metal drainage pipe and inlets Repair/replace 12 Modular retaining wall Repair/replace 13 Railing/fence at modular retaining wall Included in 5 14 Railing/fence at modular retaining wall Included in 6 15 Custom street and traffic signs Paint, repair 16 Custom street and traffic signs Replace 17 ID sign at entrance monument Replace $1, Clubhouse sign Replace $1, Site electrical Repair $3, Landscaping Replacement Allowance $4,080 $4,330 $4,595 $4,876 $5, Landscaping upgrades Upgrade $8, Grading and erosion control Repair,grade,protect $10, CLUBHOUSE Structure Repair/replace 27 Roofing-asphalt shingles Replace $10, Metal roofing (over deck) Repair/paint $1,126 Annual Replacement Costs (Inflated)

27 Reserve Study 7/27/2016 Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor Gutters and downspouts Replace $2, Exterior Repair/paint $4, Exterior deck (composite decking) Repair/replace 32 Exterior deck railing (wood & comp. matl) Repair/replace 2016 update final Criterium-Caruso Engineers ITEM DESCRIPTION ACTION YEAR> ACTION 33 Electric furnaces Replace $4, Electric water heater Replace $ HVAC condenser Replace $3, HVAC condenser Replace $4, Security System Upgrade/replace $ Fire alarm system Replace detectors $ Emergency lighting Replace $520 $ Electrical Panels, switches Repair/replace 41 Plumbing Fixtures Repair/replace $2, Fitness Equipment Repair/replace $5, TV in fitness room Replace $624 $ Doors, windows and hardware Repair/replace $2, Fans Replace $714 $ Fireplace (ventless) Repair/replace $3, Bathroom remodeling Remodel/paint $832 $1, Interior remodeling Remodel/paint $3,060 $3, Club room Floor Replace $10, Interior furniture Replace $20, Interior carpet Replace $3,121 $3, Porch and deck furniture Replace $6, TV and sound system in clubroom Replace $714 $ kitchen remodeling Remodel $1,040 $1, Kitchen appliances Replace $2,760 Annual Replacement Costs (Inflated)

28 Reserve Study 7/27/2016 Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor Kitchen warming oven Upgrade $1,530 $1, Gas grille Replace $1,104 $1, Front porch decorative concrete Repair/replace 2016 update final Criterium-Caruso Engineers ITEM DESCRIPTION ACTION YEAR> ACTION Total Costs adjusted for inflation $482,889 $12,817 $46,184 $4,395 $7,513 $5,504 $38,853 $4,595 $3,446 $7,630 $29,592 $22,842 $14,819 $7,095 $19,111 Inflation Rate 2.00 % Year of Replacement Annual Replacement Costs (Inflated)

29 Reserve Study 7/27/2016 Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor update final Criterium-Caruso Engineers Annual Replacement Costs (Inflated)

30 Reserve Study Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor ITEM DESCRIPTION ACTION YEAR> ACTION Asphalt parking lot Sealcoat, restripe, repair $1,819 $2,048 2 Asphalt parking lot Replace/overlay 3 Lawn irrigation systems Maintenance/repairs 4 Lawn irrigation systems Maintenance/repairs $4,038 $4,370 5 Lawn irrigation systems Upgrades/repairs 6 Lawn irrigation systems Upgrades/repairs 7 Stone entrance monument & columns Repoint, repair $2,273 8 Wood fencing - all Stain/paint $2,079 $2,250 $2,436 $2,637 9 Wood fencing - all Replace $8, Concrete sidewalks Repair/replace $2,019 $2,229 $2, Corrugated metal drainage pipe and inlets Repair/replace 12 Modular retaining wall Repair/replace 13 Railing/fence at modular retaining wall Included in 5 14 Railing/fence at modular retaining wall Included in 6 15 Custom street and traffic signs Paint, repair 16 Custom street and traffic signs Replace 17 ID sign at entrance monument Replace 18 Clubhouse sign Replace $1, Site electrical Repair $4,458 $5, Landscaping Replacement Allowance $5,491 $5,827 $6,184 $6, Landscaping upgrades Upgrade 22 Grading and erosion control Repair,grade,protect $13, CLUBHOUSE Structure Repair/replace 27 Roofing-asphalt shingles Replace $15, Metal roofing (over deck) Repair/paint $1,516 Annual Replacement Costs (Inflated)

31 Reserve Study Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor Gutters and downspouts Replace 30 Exterior Repair/paint $5,181 $6, Exterior deck (composite decking) Repair/replace $24, Exterior deck railing (wood & comp. matl) Repair/replace $5, update final Criterium-Caruso Engineers ITEM DESCRIPTION ACTION YEAR> ACTION 33 Electric furnaces Replace $6, Electric water heater Replace $ HVAC condenser Replace $4, HVAC condenser Replace $6, Security System Upgrade/replace $1, Fire alarm system Replace detectors $ Emergency lighting Replace $ Electrical Panels, switches Repair/replace $7, Plumbing Fixtures Repair/replace $3, Fitness Equipment Repair/replace $7, TV in fitness room Replace $ Doors, windows and hardware Repair/replace 45 Fans Replace $1, Fireplace (ventless) Repair/replace 47 Bathroom remodeling Remodel/paint $1, Interior remodeling Remodel/paint $4, Club room Floor Replace $15, Interior furniture Replace $27, Interior carpet Replace $4, Porch and deck furniture Replace 53 TV and sound system in clubroom Replace $1, kitchen remodeling Remodel $1, Kitchen appliances Replace $3,715 Annual Replacement Costs (Inflated)

32 Reserve Study Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor Kitchen warming oven Upgrade $2, Gas grille Replace $1, Front porch decorative concrete Repair/replace $7, update final Criterium-Caruso Engineers ITEM DESCRIPTION ACTION YEAR> ACTION Total Costs adjusted for inflation Inflation Rate 2.00 % Year of Replacement $482,889 $20,296 $34,990 $5,827 $42,262 $74,696 $19,701 $16,709 $18,408 $2,048 $2,637 $20, Annual Replacement Costs (Inflated)

33 Reserve Study Annual Replacement Cost Expense For Capital ItemsAdjusted For Inflation Inflation factor update final Criterium-Caruso Engineers Annual Replacement Costs (Inflated)

34 7/27/2016 Summary of Year End Reserve Balances for Alternative Funding Recommendations Yearly 2016 update final Funding Year Expenditures Alternative 1, Year (inflated) Recommendation Based on Level Funding, no escalation $12,817 or special assessments, and a $46,184 baseline threshold for the $4,395 fund that would not drop $7,513 below $ 21, $5,504 $127, $38,853 $95, $4,595 $105, $3,446 $112, $7,630 $121, $29,592 $97, $22,842 $106, $14,819 $117, $7,095 $124, $0 $109, $19,111 $101, $20,296 $100, $34,990 $108, $0 $122, $5,827 $117, $42,262 $112, $74,696 $91, $19,701 $105, $0 $114, $0 $86, $16,709 $26, $18,408 $21, $2,048 $35, $0 $49, $2, $20,921 $47,629 $43,637

35 $56,009 $70,434 Criterium-Caruso Engineers $82,227 $75,733 Appendix-Reserve Balance Summary for Alternative Funding Recommendations ALTERNATIVEFUNDINGSUMMARY Funding Years

36 Alt 1 Graph Summary Reserve Balance 8/1/2016

37 APPENDIX B: 2015 UPDATE: ESCALATING RESERVE FUND CONTRIBUTION Villas at Blackberry Run 2016 Update Final Appendix B

38 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each SITE 7/14/2015 RemaininUseful life Unit Projected Capital ItemTo Be Replaced Action life (Years) Quantity Price Unit Total Cost Notes 1 Asphalt parking lot Sealcoat, restripe, repair $1.50 SY $1,200 sealcoated around Asphalt parking lot Replace/overlay $15.00 SY $12,000 3 Lawn irrigation systems Repair/upgrade $8, LS $8,000 Allowance per Association 4 Stone entrance monument & columns Repoint, repair $1, LS $1,500 5 Wood fencing - entrance Stain/paint $1, LS $1,125 Painted around Wood fencing - entrance Replace $5, LS $5,000 7 Concrete sidewalks Repair/replace $5, LS $5,000 8 Corrugated metal drainage pipe and inlets Repair/replace Modular retaining wall Repair/replace Behind clubhouse 10 Railing/fence at modular retaining wall Repair/paint $ LS $ Railing/fence at modular retaining wall Replace $2, LS $2,500 Installed in 2010/ Custom street and traffic signs Paint, repair $1, LS $1, Custom street and traffic signs Replace $5, LS $5, ID sign at entrance monument Replace $1, EA $1, Clubhouse sign Replace $1, EA $1, Site electrical Repair $3, LS $3, Landscaping Replacement Allowance $4, LS $4, Landscaping upgrades Upgrade $8, LS $8, Grading and erosion control Repair,grade,protect $14, LS $14,600 Drainage improvement on North side update Final alt 4 Criterium-Caruso Engineers Component Inventory Summary

39 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each 21 CLUBHOUSE Structure Repair/replace /14/2015 RemaininUseful life Unit Projected Capital ItemTo Be Replaced Action life (Years) Quantity Price Unit Total Cost Notes 24 Roofing-asphalt shingles Replace $2.75 SF $8, Metal roofing (over deck) Repair/paint $1, LS $1, Gutters and downspouts Replace $2, LS $2, Exterior Repair/paint $3, LS $3, Exterior deck (composite decking) Repair/replace $22.00 SF $16,500 Repaired/Replaced in 2010/ Exterior deck railing (wood & comp. matl) Repair/replace $3, LS $3, Electric furnaces Replace $2, EA $4, Electric water heater Replace $ EA $ gal, HVAC condenser Replace $3, EA $3,000 2 ton, HVAC condenser Replace $4, EA $4,000 3 ton, Security System Upgrade/replace $ LS $ Fire alarm system Replace detectors $ LS $ Emergency lighting Replace $ LS $ Electrical Panels, switches Repair/replace $5, LS $5, Plumbing Fixtures Repair/replace $2, LS $2, Fitness Equipment Repair/replace $5, LS $5, TV in fitness room Replace $ LS $ Doors, windows and hardware Repair/replace $2, LS $2, update Final alt 4 Criterium-Caruso Engineers Component Inventory Summary

40 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each 42 Fireplace (ventless) Repair/replace $3, LS $3, Bathroom remodeling Remodel/paint $ EA $ Interior remodeling Remodel/paint $3, LS $3, Club room Floor Replace $8, LS $8,550 Wood floor 46 Interior furniture Replace $15, LS $15, Interior carpet Replace $30.00 SY $3,000 7/14/2015 Remainin Useful life Unit Projected Capital ItemTo Be Replaced Action life (Years) Quantity Price Unit Total Cost Notes 48 Porch and deck furniture Replace $5, LS $5, TV and sound system in clubroom Replace $1, LS $1, kitchen remodeling Remodel $1, LS $1, Kitchen appliances Replace $2, LS $2, Gas grille Replace $1, LS $1, update Final alt 4 Criterium-Caruso Engineers Component Inventory Summary

41 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each 7/14/2015 Remainin Useful life Unit Projected Capital ItemTo Be Replaced Action life ( Years ) Quantity Price Unit Total Cost Notes TOTALS $183,375 Costs are + or - 10 %; Costs are based upon published costs update Final alt 4 Criterium-Caruso Engineers Component Inventory Summary

42 Reserve Study LS-Lump Sum; Allow-Allowance; SY-Square Yard; SF-Square Foot;EA-Each Quantities are based upon readily available information and are only used to provide approximate estimates of costs. The quantities are approximate and should not be used for any other purposes. Reserve study is based on a 20 year projection of non-annual maintenance The cost estimates are provided to give you a "range of magnitude" understanding of the costs of the recommended repairs. Many different variables, such as season, locale and inflation affect the final cost of any project. Costs and other comments contained in this report do not necessarily infer that subcontracts, quotes or opinions of other professionals were solicited or obtained. Estimated costs are based upon published Building Construction Cost Data and our general knowledge of the construction industry in this area. Useful life information is obtained from published information provided by Federal National Mortgage Association (FNMA), other authoritative sources and our own experience. This information lists national averages for component useful llives update Final alt 4 Criterium-Caruso Engineers Component Inventory Summary

43 7/14/2015 Reserve Study Alternative Funding Contribution Recommendations Alternative 1, Recommendation Based on Level Funding, No Special Assessment Alternative 1, Reserve Fund Contribution: Total/Month N/A Total/Annual N/A Per Unit/Month N/A Per Unit/Year N/A Alternative 4, Recommendation Based on Escalating Annual Contribution Alternative 4, Reserve Fund Contribution: % Annual Total/ Total/ Per Unit/ Per Unit/ % Annual Total/ Total Per Unit/ Per Unit/ Escalation Month Annual Month Year Escalation Month Annual Month Year Year Year % $860 $10,321 $11.03 $ % $1,371 $16,456 $17.58 $ % $897 $10,764 $11.50 $ % $1,371 $16,456 $17.58 $ % $897 $10,764 $11.50 $ % $1,371 $16,456 $17.58 $ % $897 $10,764 $11.50 $ % $1,371 $16,456 $17.58 $ % $913 $10,951 $11.70 $ % $1,371 $16,456 $17.58 $ % $913 $10,951 $11.70 $ % $1,371 $16,456 $17.58 $ % $913 $10,951 $11.70 $ % $1,371 $16,456 $17.58 $ % $928 $11,138 $11.90 $ % $1,371 $16,456 $17.58 $ % $928 $11,138 $11.90 $ % $1,371 $16,456 $17.58 $ % $928 $11,138 $11.90 $ % $1,371 $16,456 $17.58 $ % $975 $11,695 $12.49 $ % $1,023 $12,280 $13.12 $ % $1,075 $12,894 $13.78 $ % $1,128 $13,539 $14.46 $ % $1,185 $14,216 $15.19 $ % $1,244 $14,926 $15.95 $ % $1,306 $15,673 $16.74 $ % $1,371 $16,456 $17.58 $ % $1,371 $16,456 $17.58 $ % $1,371 $16,456 $17.58 $ Alternative 3, Recommendation Based on Level Funding with Special Assessment(s) Total/Month Total/Annual Per Unit/Month Per Unit/Year

44 Alternative 3, Reserve Fund Contribution: N/A N/A N/A N/A Year Total/Month Total/Annual Per Unit/Month Per Unit/Year Special Assessment #1: N/A N/A N/A N/A N/A Special Assessment #2: N/A N/A N/A N/A N/A 2015 update Final alt 4 Criterium Caruso Engineers Appendix-Alternative Funding Recommendations Dallas, GA 7/14/2015 Alternative 4, Recommendation Based On Escalating Funding Level Reserve Fund Worksheet Projected Years Beginning Year Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: Revenue: Investment Earnings: Capital Expenditures: Ending Reserve Balance: Projected Years Beginning Year $117,505 $105,806 $107,020 $85,042 $89,391 $100,378 $106,179 $70,138 $81,305 $88,140 $6,563 $10,764 $10,764 $10,764 $10,951 $10,951 $10,951 $11,138 $11,138 $11,138 $38 $39 $31 $32 $36 $38 $25 $29 $32 $35 $18,300 $9,588 $32,773 $6,447 $0 $5,189 $47,017 $0 $4,335 $2,779 $105,806 $107,020 $85,042 $89,391 $100,378 $106,179 $70,138 $81,305 $88,140 $96, Beginning Month/Day Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1 Beginning Reserve Fund Balance: Revenue: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $96,534 $94,184 $76,589 $88,881 $98,574 $112,830 $85,897 $80,733 $65,007 $81,493 $11,695 $12,280 $12,894 $13,539 $14,216 $14,926 $15,673 $16,456 $16,456 $16,456 $34 $28 $32 $35 $41 $31 $29 $23 $29 $35 $14,079 $29,903 $634 $3,881 $0 $41,890 $20,866 $32,206 $0 $1,093 $94,184 $76,589 $88,881 $98,574 $112,830 $85,897 $80,733 $65,007 $81,493 $96,891