CAPITAL RESERVE FUNDING ANALYSIS

Transcription

1 CAPITAL RESERVE FUNDING ANALYSIS FOR BROADWAY HOUSING, LLC 625 SW Jackson Portland, OR Prepared by: Capital Reserve Consultants, LLC Carson M. Horton, RS April 2014 Copyright 2014 USA / Canada /

2 TABLE OF CONTENTS Broadway Housing, LLC SECTION I PHYSICAL ANALYSIS Property Summary 1 1 SECTION II FINANCIAL ANALYSIS Current & Projected Funding Analysis 2 1 Distribu on of Accumulated Reserves 2 3 SECTION III RESERVE FUNDING PROJECTIONS Current Assessment Funding Summary 3 1 Current Assessment Funding Projec on 3 2 Component Funding Model Summary 3 3 Component Funding Model Projec on 3 4 SECTION IV COMPONENT INVENTORY REPORTS Explana on of Component Inventory Reports 4 1 Component Inventory by Remaining Life Expectancy 4 2 Component Inventory with Current Costs 4 6 SECTION V RESERVE EXPENDITURE REPORTS Explana on of Expenditure Reports 5 1 Annual Reserve Expenditure Detail 5 2 Capital Expenditures by Needs Classifica on 5 15 APPENDIX Component Detail Reports A 1 Glossary of Terms A 56 Funding Parameters & Assump ons A 62 Component Detail Report Index A 63

3 Disclosures This capital reserve funding analysis has been provided pursuant to an agreement containing restrictions on its use. No part of the document may be copied or distributed in any form, or disclosed to third parties, without the written permission of Capital Reserve Consultants, LLC. The client shall have the right to reproduce and distribute copies of this report, in whole or in part, as may be required for compliance with the Association s governing documents or applicable state law. This funding analysis encompasses a period of 31 years beginning with on July 1, 2014 and ending on June 30, The National Reserve Study Guidelines established by the Community Associations Institute (CAI) recommend that the annual reserve study update include a new onsite assessment every 3 years. Alterations made to the reserve funding analysis by any individual other than a representative of Capital Reserve Consultants, LLC (CRC) are not authorized and do not represent the opinion of the reserve planning advisors who performed the analysis. The authors of this reserve funding analysis have no other involvement with the Broadway Housing, LLC other than to prepare or update this report. Capital Reserve Consultants, LLC and Carson M. Horton, RS, are independent third party consultants with no actual or apparent conflict of interest which would prevent them from rendering an objective and impartial opinion regarding the appropriate level of reserve funding for the association which is the subject of this reserve study. The purpose of this reserve study is to provide a planning and budgeting tool to assist in the development of a long range financial plan for the owners of the Broadway Housing facility which is the subject of this reserve funding analysis. Because the analysis relies on assumptions regarding future events over which CRC has no control, the accuracy of replacement costs and scheduling cannot be guaranteed. For the purposes of this analysis components and equipment are assumed to have been installed correctly, in a workmanlike manner, using generally accepted construction practices. It is expected routine preventive maintenance will be performed throughout the entire lifecycle of all components whether or not such maintenance expenses are provided for in this reserve funding plan or not. The component replacement schedules and corresponding funding projections presented in this report assume all components will achieve their normal life expectancy before requiring replacement; unless otherwise noted in the Baseline Property Condition Assessment prepared by Community Engineering Services, PLLC (CES) in February of This reserve funding analysis is a reflection of information provided to CRC by third parties and cannot be used for the purpose of performing an audit, forensic analysis or verification of historical records. Information regarding the financial condition of the owners association, including the projected reserve fund balance as of the beginning date of the study, has been provided by of the board of directors. The information is deemed reliable, but is not based on an audit of the association s financial condition, and should not be used for purposes other than those intended in this study. An on site inspection conducted in conjunction with a reserve study should not be deemed to be a project audit or quality inspection. Information which has been provided to CRC by third parties is deemed reliable for the purpose of this reserve study. Third party information which is incorrect may have a material impact on the reserve funding analysis. CRC takes no responsibility for the accuracy of any such information or the impact inaccurate information may have on the findings and conclusions presented in this reserve study. This reserve study was prepared in accordance with nationally recognized guidelines for the preparation of reserve studies for common interest developments established by the Community Associations Institute; and the rules set forth in the Audit & Accounting Guide Common Interest Realty Associations (May 1, 2008), published by the American Institute of Certified Public Accountants for maintaining a fund for Future Major Repairs and Replacements.

4 Disclosures No invasive or destructive testing has been employed in the investigative phase of this study and no environmental assessment of any kind was performed. This reserve study is not intended to address or discover construction defects and no representation is made herein that is meant to imply any such warranty. The Property Condition Assessment prepared by CES in conjunction with this reserve funding analysis is consistent with the ASTM2018 Standard for conducting a Baseline Property Condition Assessment.

5 Introduc on 1. Level of Inquiry: This reserve funding analysis utilizes information obtained from the Baseline Property Condition Assessment report prepared by Community Engineering Services, PLLC in February of 2014, in addition to information obtained from the as built construction drawings provided by the owners of the subject property. Representatives of CRC participated in site inspections on at least two occasions in the course of preparing this reserve funding analysis. Opinions regarding the current condition and remaining life expectancy of the common area components are based on visual observations made by Representatives of CES and CRC during the inspection process. Component quantities may be based on field measurements, a physical inventory and/or historical records. This information is intended to be used for developing long term reserve funding projections, but should not be considered adequate for the purpose of ordering materials or formulating repair and replacement project costs. 2. General Description: The subject property is a ten story mixed use residential/commercial structure that encompasses student housing facilities on floors 3 thru 10; classrooms and offices for Portland State University on the second floor and retail space on the first floor. The building is a post tensioned concrete structure that was constructed in A total of 384 student dormitories are located within the building in addition to 17,910SF of office and classroom space on the second floor and 15,230SF of retail space on the first floor. An eco roof which covers 18,201SF is located on the main roof of the building. 3. Limitations of the Analysis: The physical condition assessment performed in conjunction with this reserve study is not intended to identify construction defects or other sub standard conditions which may require immediate corrective action. The reserve study utilizes information obtained from the following sources to arrive at component replacement costs and useful life estimates for the common area components identified in the component inventory: RS Means CostWorks Life Cycle Costing for Facilities (Reed Construction Publishers) Preventive Maintenance and Building Operations Efficiency (BOMA) Facility Manager s Maintenance Handbook (McGraw Hill) RS Means Facilities Maintenance & Repair Cost Data 16 th Edition 4. Funding Timeframe: The funding time frame covered in this reserve study is 31 years beginning on July 1, 2014 and ending on June 30, Beginning Reserve Fund Balance: This reserve funding analysis assumes that the reserve fund balance as of July 1, 2014 will be $599, Management indicates that the current contribution rate is $5, per month and that this amount is adjusted in July of each year to reflect the current Consumer Price Index. 6. Capital Spending Classifications: The capital expenditures outlined in this reserve funding analysis have been classified in one of two categories depending on how soon the funds are needed. Expenditures that are scheduled to occur within 5 years of the beginning date of this analysis are classified as Immediate Needs. Expenditures that are scheduled to occur in years 6 thru 30 are classified a Long Term Needs. This categorization of capital spending needs is consistent with the requirement of the ASTM2018 Standard for preparing a Baseline Property Condition Assessment.

6 SECTION I PHYSICAL ANALYSIS

7 Property Summary The following details pertain to Broadway Housing facility: 1. Legal Name of Ownership Entity: Broadway Housing, LLC 2. Physical Address: 625 Jackson or 1948 SW Broadway, Portland, OR Property Type: Mixed use residential/commercial retail 4. Total Square Feet of Site: 30, Number of Residential Units: Gross Square Feet of Residential Space: 178, Gross Square Feet of Office Space 2 nd Floor: 21, Gross Square Feet of Retail Space 1 st Floor: 20, Year Constructed: Zoning Designation: RX (d) overlay Capital Reserve Consultants, LLC Page 1 1

8 SECTION II FINANCIAL ANALYSIS

9 Current & Projected Funding Analysis 1. Current Financial Condition: The fiscal year for the Broadway Housing, LLC begins July 1 st of each year. This reserve study covers the 31 year period between: July 1, 2014 and June 30, The beginning reserve fund balance assumed as of is: $599, Funding Parameters & Projections: This reserve funding analysis makes use of certain financial parameters and information that will change over time. It is important to monitor the reserve funding program and to update these parameters in order to maintain a current and timely perspective with regard to the reserve funding requirements for maintaining the facility which is the subject of the analysis. Future replacement costs may vary from the amounts established in this reserve funding analysis. Investment income and income tax levels may affect reserve funding levels and the variances may be material. The reserve funding projections which result from this analysis utilize the following financial parameters: A minimum reserve fund balance of $599, as of July 1, A minimum reserve fund contribution for the 2014 fiscal year in the amount of: $72, Earnings on reserve deposits: 0.50% Annual inflation rate: 3.0% Effective income tax rate: 0% Reserve fund contingency: 0% The Annual Reserve Fund Expenditure Detail indicates the next reserve expenditures scheduled to occur will be during the 2014 fiscal year. The total amount of these expenditures is estimated to be: $233, Reserve Funded Projections: This reserve funding analysis contains two funding schedules which cover the 30 year period indicated above. The first of the funding projections utilizes a cash flow funding model known as Current Assessment Funding. Current Assessment Funding is a reserve funding model which allows the Reserve Analyst to specify the amount of the annual reserve fund contribution in any or all years covered by the analysis. The second reserve funding projection utilizes a funding model known as Component Funding. Component Funding is controlled by adjusting a parameter known as the Funding Velocity. The Funding Velocity is a financial parameter that may be manipulated to increase or decrease the period of time required to achieve a Fully Funded reserve account. A Fully Funded reserve account occurs when the total accumulated reserves as of the beginning date of the fiscal year are equal to the total accumulated depreciation of all assets that are to be replaced using funds from the reserve account. By adjusting the Funding Velocity parameter the Reserve Analyst may increase or decrease the annual contribution amount to achieve the desired funding objectives. Current Assessment Funding Projection: The Current Assessment Funding Projection that appears in Section III begins with a reserve fund contribution of $72, for the 2014 fiscal year. This funding projection represents the minimum contributions possible to meet the capital funding needs as set forth in this reserve funding analysis assuming a first year contribution that is equal to the amount currently being allocated to the Capital Reserve Consultants, LLC Page 2 1

10 Current & Projected Funding Analysis reserve fund and a supplemental contribution in the peak spending years of 2019, 2024, 2025, 2029, 2034 and In all other years the reserve allocation will increase a maximum of 6% above the allocation for the previous year, with the exception of the year immediately following each peak spending cycle. In those years immediately following a peak spending cycle, the reserve contribution is equal the amount contributed in the year previous to the peak spending cycle. Percent funded levels and minimum year end reserve fund balance parameters were not considered when designing the Current Assessment Funding Projection. Component Funding Projection: The Component Funding Projection that appears in Section III was designed to generate a funding schedule that will result in a minimum year end reserve fund balance that never drops below $250, The annual reserve fund contribution will increase or decrease as required to maintain the targeted reserve fund minimum balance. The lowest year end reserve fund balance under the Component Funding projection will occur in 2024, when the peak spending cycle for the 30 year period covered by this analysis is scheduled to occur. The reserve fund balance projected at the end of 2024 is $256, In all other respects the two funding projections provide a direct comparison for determining how the capital funding requirements for the facility might be approached. Both projections will generate sufficient funds to meet the scheduled expenditures assuming the cost, frequency and scheduling of the expenditures does not deviate from the schedule set forth in this analysis. 4. Total Projected Capital Spending: This reserve funding analysis indicates that the total capital spending on repair and replacement of building systems and components for the period between July 1, 2014 and June 310, 2043 will be $12,777, The total capital contribution required under the Current Assessment Funding Projection is $12,748, The year end reserve fund balance at the end of the 30 year funding cycle will be $610, under the Current Assessment Funding Projection. The total capital contribution required under the Component Funding Projection is $18,064, The yearend reserve fund balance at the end of the 30 year funding cycle will be $6,178, under the Component Funding Projection. The capital spending scheduled for 2044 totals $6,657, under both funding projections. Capital Reserve Consultants, LLC Page 2 2

11 Distribu on of Accumulated Reserves Report Date April 08, 2014 Beginning Fiscal Year July 01, 2014 Account Number OR Version Number LEVEL 1 Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves Carpet (2nd Floor) ,600 75,600 Carpet (Stair #1 & 2 at Lobby) ,000 2,000 Carpet (Stair #1 Floors 3thru 10) ,600 3,600 Concrete Spalling Inves ga on & Remedia on , ,000 Deferred Maintenance Budget ,500 27,500 Boiler Reliability Assessment/Remedia on ,636 28,636 Building Enclosure Assessment & Repair , ,000 Building Se ling Inves ga on & Remedia on , ,636 Carpet (Upper Corridors) *45, ,625 Elevators: Cab Renova on ,250 Flush Valves (Common Area) ,250 Standpipe System Inves ga on & Remedia on ,167 Toilet Seats (Common Area) Entrance Door Hardware (Res Units) ,400 Exterior Stairwell Door Hardware ,267 Fire Alarm System Printer Fire Alarms ,200 Fire Dept. Communica on Panel ,333 Fire Detector & Alarm Annuncia on Panel ,000 Interior Stairwell Door Hardware ,333 Kitchen Appliances (Res Units) ,800 Laundry/Trash Room Door Hardware ,267 Security Panels ,000 Smoke Sensors ,000 Trash Compactor ,333 Elevator Moderniza on: Trac on Cable ,158 Toilet Seats (Res Units) , W Markel RDBT PD ,000 6" Recessed HID Downlight (120V) " Recessed HID Downlight (277V) " Recessed MH Downlight (277V) W Markel RDBT PD Capital Reserve Consultants, LLC Page 2 3

12 Distribu on of Accumulated Reserves Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves 9" In Ground Uplight (CFL) AC 1: Air Compressor (2.6 CFM psig) AC 1: Domes c Water Booster Pump (500GPM) ,500 ACCU 1: Condensing Unit (Carrier) ,000 ACCU 2: Condensing Unit (Carrier) ,000 Air Handling Unit 14,000 CFM ,000 Air Handling Unit 23,000 CFM ,000 Bathroom Sinks & Faucets (Res Units) ,000 Built up Bitumen Roof Membrane ,400 Built up Bitumen Roof Membrane (2nd Floor) ,625 Cabinet Unit Heaters 250 CFM (QMARK) ,500 Ceiling Mount Exit Sign Ceiling Tile (2nd Floor) ,500 Door Security System Overide ,000 EF 1: Exhaust Fan 1200 CFM (Cook) EF 2: Exhaust Fan 600 CFM (Cook) EF 5: Exhaust Fan 3200 CFM (Cook) ,250 EF 6: Exhaust Fan 1200 CFM (Cook) EF 7: Exhaust Fan CFM (Cook) ,750 Emergency Power Status Indicators ,000 End Suc on Pumps (120 GPM) ,500 End Suc on Pumps Condenser Water (20 HP) ,000 End Suc on Pumps Hydronic Loop (5 HP) ,500 End Wall Mount Exit Sign ,750 Exterior Fluorescent Cove (277V) ,000 Exterior Fluorescent Wrap Around (277V) ,080 Fiberglass Shower Units & Faucets (Res Units) ,000 Fire Alarm Ba ery Cabinet Fire Pump Controller ,500 GWH 1 2: Gas Water Heater (Lochinvar) ,000 Green Roof Allowance ,000 HP 1: Heat Pump Lobby Entry (McQuay) ,750 HP 2: Heat Pump Main Electrical Room ,750 HP 3: Heat Pump NE Machine Room ,750 HP 4: Heat Pump East Lobby ,750 HP 5: Heat Pump Telecom Room ,750 Capital Reserve Consultants, LLC Page 2 4

13 Distribu on of Accumulated Reserves Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves HP 6: Heat Pump Elevator Machine Room ,750 HVAC Control & Status Panels ,500 In Line Pumps Boiler Circula on (3/4 HP) ,000 In Line Pumps Coil Pump (1/2 HP) ,500 Jockey Pump ,250 Kitchen Cabinets & Countertops (Res Units) ,000 Kitchen Sinks & Faucets (Res Units) ,000 LED Exit Signs Lavatories & Faucets (Common Area) ,500 MV 1: Master Mixing Valve (Leonard) TM PRV ,400 P 1 & P 2: Pump (200 GPM) ,600 P 1: Pump (100 GPM) RHWP 1: Hot Water Recircula ng Pump (1/6HP) RHWP 2: Hot Water Recircula ng Pump (1/12HP) RPBP 1: Reduced Pressure Backflow Preventer RPBP 2: Reduced Pressure Backflow Preventer ,250 Resilient Flooring (Unit Bathrooms) ,200 SF 1: Stairwell Fan 14,000 CFM (Cook) ,000 SF 2: Stairwell Fan 17,000 CFM (Cook) ,000 SF 3: Stairwell Fan 21,000 CFM (Cook) ,000 SF 4: Elevator Sha Fan 20,000 CFM (Cook) ,250 SF 5: Elevator Sha Fan 20,000 CFM (Cook) ,250 SP 1 3: Sump Pumps ,250 Surface HID Floodlight (277V) Surface Wall Mount Exit Sign ,450 Surface Wall Mount Fluorescent (120V) Toilet Par ons (2nd Floor Restrooms) ,500 Trash Chute Doors ,800 Trash Compactor Room Doors (Paired) ,500 Unit Heaters 350 CFM (QMARK) Unit Heaters 500 CFM (QMARK) Unit Heaters 650 CFM (QMARK) Variable Frequency Drives Condenser Water Pumps ,500 Capital Reserve Consultants, LLC Page 2 5

14 Distribu on of Accumulated Reserves Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves Elevator Moderniza on: Hydraulic ,286 Elevator: Status Panel ,095 Storefront Enclosure East Entrance ,095 Storefront Enclosure South Entrance ,190 Toilets (Common Area) ,750 Exterior Stairwell Doors & Frames ,333 Interior Stairwell Doors & Frames ,000 Laundry/Trash Room Doors ,000 Architectural Electric Convectors 2100W Architectural Electric Convectors 2400W ,600 Architectural Electric Convectors 6900W ,200 Bathroom Doors (Res Units) ,200 Closet Doors (Res Units) ,840 Condenser Water Service (EVAPCO) ,000 Mop Sinks & Faucets North Entrance Door Corridor C 101 & Stairwell #3 Door (Exterior) Storage Room Door Hardware ,280 Storage Room Doors & Frames ,800 Vinyl CompositeTile (Telco Rooms) ,872 Wall Mount Urinals (Common Area) Toilets (Res Units) ,720 1'x4' Industrial Fluorescent (120V) 'x4' Industrial Fluorescent (277V) ,217 1'x4' Lay In Fixtures Fluorescent (120V) ,740 1'x4' Lay In Fixtures Fluorescent (277V) 'x4' Surface Mount Fixture Fluorescent (277V) 'x4' Surface Mount Fixture Fluorescent (277V) " Recessed Lights CFL ,627 6"x6"x4' Wall Mount Fluorecent (277V) ,788 8" Recessed Lights CFL ,800 B 1 & 2: Hydronic Boilers 1.2 Million Btu/Hr. (Fulton) ,000 DET 1: Domes c Water Expansion Tank (68 Gallon) Decora ve Wall Mount Fluorescent (277V) Capital Reserve Consultants, LLC Page 2 6

15 Distribu on of Accumulated Reserves Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves Fire Suppression System Moderniza on ,000 Fire/Smoke Dampers ,000 GPRV 1 8: Gas Pressure Reducing Valves ,667 Hot Water Storage Tank (752 Gal.) ,667 Hydro Pneuma c Tank (132 Gallons) Indirect Wall Mount Fluorescent (277V) Metal Roofing 3rd Floor ,460 Recessed Fluorescent Step Light (120V) Surface Mount Vaporite Fluorescent (120V) Surface Ceiling Mount Fixture (Res Units) ,320 Surface Ceiling Mount Fluorescent Surface Wall Mount Fluorescent (277V) Track Lights Incandescent Entrance Door & Frame (Res Units) ,645 Boiler Room Doors (Paired) Elevator Machine Room Door Generator Room Door Main Electrical Room Door Meter Room Doors Water & Gas Stairwell #1 Door (Interior) Stairwell #3 Door (Interior) Stairwell #4 Door Roo op Fence Fire Pump ,500 Electrical Power Systems Unfunded Total Asset Summary $671,214 $3,472,983 '*' Indicates Par ally Funded Capital Reserve Consultants, LLC Page 2 7

16 SECTION III RESERVE FUNDING PROJECTIONS

17 Current Assessment Funding Summary Report Parameters Report Date April 08, 2014 Account Number OR Version LEVEL 1 Budget Year Beginning July 01, 2014 Budget Year Ending June 30, 2015 Total Units 384 Phase Development 1 of 1 Infla on 3.00% Interest Rate on Reserve Deposit 0.50% 2014 Beginning Balance $599, Current Assessment Funding Model Summary of Calcula ons Required Annual Contribu on $72, $ per unit annually Average Net Annual Interest Earned $2, Total Annual Alloca on to Reserves $74, $ per unit annually Capital Reserve Consultants, LLC Page 3 1

18 Current Assessment Funding Projec on Report Date April 08, 2014 Beginning Fiscal Year July 01, 2014 Account Number OR Version Number LEVEL 1 Beginning Balance: $599,214 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,624,810 72,000 2, , ,702 3,589,362 12% ,666,479 76, ,445 71,934 3,595,075 2% ,700, , ,748 41,392 3,704,248 1% ,764,865 76, ,301 4,159,168 3% ,967,811 80, ,196 4,645,084 4% ,176, , , ,296 4,351,760 3% ,392,151 80,899 1, ,356 4,865,447 5% ,613,915 85,753 1, ,705 5,406,039 6% ,842,333 90,898 1, , ,285 5,871,826 5% ,077,603 96,352 1, , ,138 6,284,605 4% ,319,931 3,576, ,618, ,088 3,284,975 6% ,569, , ,181 46,136 3,369,248 1% ,826,615 96, ,288 89,647 3,874,285 2% ,091, , ,739 4,461,479 4% ,364, , ,358 31,537 4,764,059 1% ,645,080 1,141, ,043, ,922 4,363,366 3% ,934, , , ,393 4,878,600 3% ,232, ,650 1, ,618 5,555,034 6% ,539, ,439 2, ,463 6,267,662 8% ,855, ,373 1, , ,415 6,748,710 6% ,181,291 2,211, ,435, ,487 5,094,668 3% ,516,730 1,286, ,368,805 79,076 4,476,229 2% ,862, , , ,608 5,161,731 4% ,218, ,892 1, ,282 5,950,498 6% ,584, ,078 1, , ,154 6,616,883 6% ,962, ,421 2,609 34, ,428 7,453,153 7% ,351, ,923 1, , ,581 8,028,810 5% ,751, ,591 2, ,018 8,983,152 6% ,164, ,429 3, ,309 9,987,528 8% ,589, ,442 3, , ,623 10,668,917 6% ,026,720 6,700,000 3,265 6,657, ,272 5,111,003 13% Capital Reserve Consultants, LLC Page 3 2

19 Component Funding Model Summary Report Parameters Report Date April 08, 2014 Account Number OR Version LEVEL 1 Budget Year Beginning July 01, 2014 Budget Year Ending June 30, 2015 Total Units 384 Phase Development 1 of 1 Infla on 3.00% Interest Rate on Reserve Deposit 0.50% 2014 Beginning Balance $599, Component Funding Model Summary of Calcula ons Required Annual Contribu on $391, $1, per unit annually Average Net Annual Interest Earned $3, Total Annual Alloca on to Reserves $395, $1, per unit annually Capital Reserve Consultants, LLC Page 3 3

20 Component Funding Model Projec on Report Date April 08, 2014 Beginning Fiscal Year July 01, 2014 Account Number OR Version Number LEVEL 1 Beginning Balance: $599,214 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,624, ,464 3, , ,763 3,589,362 21% ,666, ,297 3, , ,002 3,595,075 19% ,700, ,953 3, , ,763 3,704,248 19% ,764, ,760 5,433 1,091,956 4,159,168 26% ,967, ,934 7,479 1,503,370 4,645,084 32% ,176, ,896 5, ,652 1,137,272 4,351,760 26% ,392, ,406 8,063 1,620,741 4,865,447 33% ,613, ,497 10,756 2,161,994 5,406,039 40% ,842, ,459 13, ,862 2,684,949 5,871,826 46% ,077, ,870 16, ,624 3,288,555 6,284,605 52% ,319, ,447 1,275 3,618, ,312 3,284,975 8% ,569, ,178 1, , ,760 3,369,248 9% ,826, ,754 3,761 53, ,988 3,874,285 20% ,091, ,190 6,426 1,291,603 4,461,479 29% ,364, ,957 7, ,358 1,484,589 4,764,059 31% ,645, ,572 4,804 1,043, ,703 4,363,366 22% ,934, ,567 6, ,302 1,395,913 4,878,600 29% ,232, ,498 9,932 1,996,344 5,555,034 36% ,539, ,453 13,134 2,639,931 6,267,662 42% ,855, ,159 15, ,339 3,062,990 6,748,710 45% ,181, ,929 6,831 2,435,731 1,373,019 5,094,668 27% ,516, ,858 2,880 1,368, ,953 4,476,229 13% ,862, ,823 5,488 64,237 1,103,027 5,161,731 21% ,218, ,262 8,611 1,730,900 5,950,498 29% ,584, ,687 11, ,063 2,237,657 6,616,883 34% ,962, ,815 14,584 34,757 2,931,299 7,453,153 39% ,351, ,250 16, ,634 3,383,749 8,028,810 42% ,751, ,769 21,233 4,267,751 8,983,152 48% ,164, ,233 26,300 5,286,284 9,987,528 53% ,589,049 1,237,073 30, ,165 6,178,933 10,668,917 58% ,026,720 1,013,789 2,676 6,657, ,781 5,111,003 11% Capital Reserve Consultants, LLC Page 3 4

21 SECTION IV COMPONENT INVENTORY REPORTS

22 Explana on of Component Inventory Reports This section of the reserve study provides two compilations of the repair and replacement expenditures which are the subject of this reserve funding analysis. A brief explanation of each report contained in this section is included here for those readers who may be unfamiliar with the information typically found in a reserve funding analysis. 1. Component Inventory by Remaining Life Expectancy: This report displays the component inventory sorted by the remaining life expectancy of each component which is included in the reserve funding schedule. Expenditures which are scheduled to recur more than one time over the 30 year period covered by the study will only appear one time in this list based on the next year when the expenditure is scheduled to occur. Other information provided in this report includes the useful life, current cost, assigned reserves and the amount required for each component to be fully funded as of the beginning date of the funding analysis. If the assigned reserves are equal to the fully funded amount shown in the far right hand column then the expenditure in question is said to be fully funded. 2. Component Inventory with Current Costs: This report again displays the component inventory by category and remaining life expectancy. It also includes the component quantity based on the unit of measure (SF, SY, LF, etc.,), the unit cost which has been used to arrive at the total replacement cost, and the current replacement cost as of the beginning date of the funding analysis. 3. Component Detail Reports: This report, which is found in the Appendix, reflects all of the component data which has been input into the modeling database to develop the reserve funding projections contained in the reserve funding analysis. Most of the information contained in this report is also displayed in one or more of the Component Inventory reports described above. Capital Reserve Consultants, LLC Page 4 1

23 Component Inventory by Remaining Life Expectancy Report Date April 08, 2014 Beginning Fiscal Year July 01, 2014 Account Number OR Version Number LEVEL 1 Descrip on Year Replacement Life Useful Adjustment Life Remaining Cost Current Assigned Reserves Fully Funded Carpet (2nd Floor) ,600 75,600 75,600 Carpet (Stair #1 & 2 at Lobby) ,000 2,000 2,000 Carpet (Stair #1 Floors 3thru 10) ,600 3,600 3,600 Concrete Spalling Inves ga on & Remedia on , , ,000 Deferred Maintenance Budget ,500 27,500 27,500 Boiler Reliability Assessment/Remedia on ,500 28,636 28,636 Building Enclosure Assessment & Repair , , ,000 Building Se ling Inves ga on & Remedia on , , ,636 Carpet (Upper Corridors) ,950 45, ,625 Elevators: Cab Renova on , ,250 Flush Valves (Common Area) , ,250 Standpipe System Inves ga on & Remedia on , ,167 Toilet Seats (Common Area) Entrance Door Hardware (Res Units) , ,400 Exterior Stairwell Door Hardware , ,267 Fire Alarm System Printer , Fire Alarms , ,200 Fire Dept. Communica on Panel , ,333 Fire Detector & Alarm Annuncia on Panel , ,000 Interior Stairwell Door Hardware , ,333 Kitchen Appliances (Res Units) , ,800 Laundry/Trash Room Door Hardware , ,267 Security Panels , ,000 Smoke Sensors , ,000 Trash Compactor , ,333 Elevator Moderniza on: Trac on Cable , ,158 Toilet Seats (Res Units) , , W Markel RDBT PD , ,000 6" Recessed HID Downlight (120V) , " Recessed HID Downlight (277V) , " Recessed MH Downlight (277V) W Markel RDBT PD , " In Ground Uplight (CFL) , AC 1: Air Compressor (2.6 CFM psig) , AC 1: Domes c Water Booster Pump (500GPM) , ,500 ACCU 1: Condensing Unit (Carrier) , ,000 ACCU 2: Condensing Unit (Carrier) , ,000 Air Handling Unit 14,000 CFM , ,000 Capital Reserve Consultants, LLC Page 4 2

24 Component Inventory by Remaining Life Expectancy Descrip on Replacement Year Life Useful Adjustment Life Remaining Cost Current Assigned Reserves Fully Funded Air Handling Unit 23,000 CFM , ,000 Bathroom Sinks & Faucets (Res Units) , ,000 Built up Bitumen Roof Membrane , ,400 Built up Bitumen Roof Membrane (2nd Floor) , ,625 Cabinet Unit Heaters 250 CFM (QMARK) , ,500 Ceiling Mount Exit Sign Ceiling Tile (2nd Floor) , ,500 Door Security System Overide , ,000 EF 1: Exhaust Fan 1200 CFM (Cook) , EF 2: Exhaust Fan 600 CFM (Cook) , EF 5: Exhaust Fan 3200 CFM (Cook) , ,250 EF 6: Exhaust Fan 1200 CFM (Cook) , EF 7: Exhaust Fan CFM (Cook) , ,750 Emergency Power Status Indicators , ,000 End Suc on Pumps (120 GPM) , ,500 End Suc on Pumps Condenser Water (20 HP) , ,000 End Suc on Pumps Hydronic Loop (5 HP) , ,500 End Wall Mount Exit Sign , ,750 Exterior Fluorescent Cove (277V) , ,000 Exterior Fluorescent Wrap Around (277V) , ,080 Fiberglass Shower Units & Faucets (Res Units) , ,000 Fire Alarm Ba ery Cabinet , Fire Pump Controller , ,500 GWH 1 2: Gas Water Heater (Lochinvar) , ,000 Green Roof Allowance , ,000 HP 1: Heat Pump Lobby Entry (McQuay) , ,750 HP 2: Heat Pump Main Electrical Room , ,750 HP 3: Heat Pump NE Machine Room , ,750 HP 4: Heat Pump East Lobby , ,750 HP 5: Heat Pump Telecom Room , ,750 HP 6: Heat Pump Elevator Machine Room , ,750 HVAC Control & Status Panels , ,500 In Line Pumps Boiler Circula on (3/4 HP) , ,000 In Line Pumps Coil Pump (1/2 HP) , ,500 Jockey Pump , ,250 Kitchen Cabinets & Countertops (Res Units) , ,000 Kitchen Sinks & Faucets (Res Units) , ,000 LED Exit Signs , Lavatories & Faucets (Common Area) , ,500 MV 1: Master Mixing Valve (Leonard) TM PRV , ,400 P 1 & P 2: Pump (200 GPM) , ,600 P 1: Pump (100 GPM) , RHWP 1: Hot Water Recircula ng Pump (1/6HP) , Capital Reserve Consultants, LLC Page 4 3

25 Component Inventory by Remaining Life Expectancy Descrip on Replacement Year Life Useful Adjustment Life Remaining Cost Current Assigned Reserves Fully Funded RHWP 2: Hot Water Recircula ng Pump (1/12HP) , RPBP 1: Reduced Pressure Backflow Preventer , RPBP 2: Reduced Pressure Backflow Preventer , ,250 Resilient Flooring (Unit Bathrooms) , ,200 SF 1: Stairwell Fan 14,000 CFM (Cook) , ,000 SF 2: Stairwell Fan 17,000 CFM (Cook) , ,000 SF 3: Stairwell Fan 21,000 CFM (Cook) , ,000 SF 4: Elevator Sha Fan 20,000 CFM (Cook) , ,250 SF 5: Elevator Sha Fan 20,000 CFM (Cook) , ,250 SP 1 3: Sump Pumps , ,250 Surface HID Floodlight (277V) Surface Wall Mount Exit Sign , ,450 Surface Wall Mount Fluorescent (120V) Toilet Par ons (2nd Floor Restrooms) , ,500 Trash Chute Doors , ,800 Trash Compactor Room Doors (Paired) , ,500 Unit Heaters 350 CFM (QMARK) , Unit Heaters 500 CFM (QMARK) , Unit Heaters 650 CFM (QMARK) , Variable Frequency Drives Condenser Water Pumps , ,500 Elevator Moderniza on: Hydraulic , ,286 Elevator: Status Panel , ,095 Storefront Enclosure East Entrance , ,095 Storefront Enclosure South Entrance , ,190 Toilets (Common Area) , ,750 Exterior Stairwell Doors & Frames , ,333 Interior Stairwell Doors & Frames , ,000 Laundry/Trash Room Doors , ,000 Architectural Electric Convectors 2100W , Architectural Electric Convectors 2400W , ,600 Architectural Electric Convectors 6900W , ,200 Bathroom Doors (Res Units) , ,200 Closet Doors (Res Units) , ,840 Condenser Water Service (EVAPCO) , ,000 Mop Sinks & Faucets , North Entrance Door Corridor C 101 & , Stairwell #3 Door (Exterior) , Storage Room Door Hardware , ,280 Storage Room Doors & Frames , ,800 Vinyl CompositeTile (Telco Rooms) , ,872 Wall Mount Urinals (Common Area) , Toilets (Res Units) , ,720 Capital Reserve Consultants, LLC Page 4 4

26 Component Inventory by Remaining Life Expectancy Descrip on Replacement Year Life Useful Adjustment Life Remaining Cost Current Assigned Reserves Fully Funded 1'x4' Industrial Fluorescent (120V) , 'x4' Industrial Fluorescent (277V) , ,217 1'x4' Lay In Fixtures Fluorescent (120V) , ,740 1'x4' Lay In Fixtures Fluorescent (277V) , 'x4' Surface Mount Fixture Fluorescent (277V) , 'x4' Surface Mount Fixture Fluorescent (277V) " Recessed Lights CFL , ,627 6"x6"x4' Wall Mount Fluorecent (277V) , ,788 8" Recessed Lights CFL , ,800 B 1 & 2: Hydronic Boilers 1.2 Million Btu/Hr. (Fulton) , ,000 DET 1: Domes c Water Expansion Tank (68 Gallon) , Decora ve Wall Mount Fluorescent (277V) , Fire Suppression System Moderniza on , ,000 Fire/Smoke Dampers , ,000 GPRV 1 8: Gas Pressure Reducing Valves , ,667 Hot Water Storage Tank (752 Gal.) , ,667 Hydro Pneuma c Tank (132 Gallons) , Indirect Wall Mount Fluorescent (277V) Metal Roofing 3rd Floor , ,460 Recessed Fluorescent Step Light (120V) , Surface Mount Vaporite Fluorescent (120V) , Surface Ceiling Mount Fixture (Res Units) , ,320 Surface Ceiling Mount Fluorescent , Surface Wall Mount Fluorescent (277V) , Track Lights Incandescent , Entrance Door & Frame (Res Units) , ,645 Boiler Room Doors (Paired) , Elevator Machine Room Door , Generator Room Door , Main Electrical Room Door , Meter Room Doors Water & Gas , Stairwell #1 Door (Interior) , Stairwell #3 Door (Interior) , Stairwell #4 Door , Roo op Fence , Fire Pump , ,500 Electrical Power Systems Unfunded Total Asset Summary $6,624,810 $671,214 $3,472,983 Capital Reserve Consultants, LLC Page 4 5

27 Component Inventory with Current Costs Report Date April 08, 2014 Beginning Fiscal Year July 01, 2014 Account Number OR Version Number LEVEL 1 Descrip on Date in Service Replacement Year Useful Adjustment Remaining Appliances Kitchen Appliances (Res Units) EA ,200 Appliances Total $307,200 Units Cost Unit Cost Current Building Enclosure Building Enclosure Assessment & Repair EA 275, ,000 Building Enclosure Total $275,000 Doors & Windows Trash Compactor Room Doors (Paired) EA 3, ,000 Storefront Enclosure East Entrance EA 6, ,500 Storefront Enclosure South Entrance EA 6, ,000 Exterior Stairwell Doors & Frames EA 1, ,800 Interior Stairwell Doors & Frames EA 1, ,200 Laundry/Trash Room Doors EA 1, ,200 Bathroom Doors (Res Units) EA ,000 Closet Doors (Res Units) EA ,600 North Entrance Door Corridor C 101 & EA 2, ,000 Stairwell #3 Door (Exterior) EA 2, ,000 Storage Room Doors & Frames EA 1, ,000 Entrance Door & Frame (Res Units) EA 1, ,800 Boiler Room Doors (Paired) EA 3, ,000 Elevator Machine Room Door EA 2, ,000 Generator Room Door EA 2, ,000 Main Electrical Room Door EA 2, ,000 Meter Room Doors Water & Gas EA 2, ,000 Stairwell #1 Door (Interior) EA 1, ,800 Stairwell #3 Door (Interior) EA 1, ,800 Stairwell #4 Door EA 2, ,000 Doors & Windows Total $1,104,700 Electrical Electrical Power Systems Unfunded Elevators Elevators: Cab Renova on EA 8, ,500 Elevator Moderniza on: Trac on Cable EA 60, ,000 Elevator Moderniza on: Hydraulic EA 30, ,000 Elevator: Status Panel EA 6, ,500 Elevators Total $182,000 Capital Reserve Consultants, LLC Page 4 6

28 Component Inventory with Current Costs Descrip on Date in Service Replacement Year Useful Adjustment Remaining Fencing & Gates Roo op Fence EA 20, ,000 Fencing & Gates Total $20,000 Units Cost Unit Cost Current Fire Systems Fire Alarm System Printer EA 1, ,200 Fire Alarms EA ,800 Fire Dept. Communica on Panel EA 5, ,000 Fire Detector & Alarm Annuncia on Panel EA 6, ,000 Smoke Sensors EA ,000 Fire Alarm Ba ery Cabinet EA 1, ,800 Fire Pump Controller Total 5, ,000 Jockey Pump EA 2, ,500 Fire Suppression System Moderniza on Total 225, ,000 Fire Pump Total 50, ,000 Fire Systems Total $469,300 Hardware Entrance Door Hardware (Res Units) EA ,600 Exterior Stairwell Door Hardware EA ,400 Interior Stairwell Door Hardware EA ,000 Laundry/Trash Room Door Hardware EA ,400 Storage Room Door Hardware EA ,200 Hardware Total $177,600 HVAC Boiler Reliability Assessment/Remedia on EA 31, , W Markel RDBT PD EA 2, , W Markel RDBT PD EA 1, ,000 ACCU 1: Condensing Unit (Carrier) EA 30, ,000 ACCU 2: Condensing Unit (Carrier) EA 30, ,000 Air Handling Unit 14,000 CFM EA 40, ,000 Air Handling Unit 23,000 CFM EA 60, ,000 Cabinet Unit Heaters 250 CFM (QMARK) EA 1, ,000 EF 1: Exhaust Fan 1200 CFM (Cook) EA 1, ,500 EF 2: Exhaust Fan 600 CFM (Cook) EA 1, ,000 EF 5: Exhaust Fan 3200 CFM (Cook) EA 2, ,500 EF 6: Exhaust Fan 1200 CFM (Cook) EA 1, ,500 EF 7: Exhaust Fan CFM (Cook) EA 9, ,500 End Suc on Pumps (120 GPM) EA 3, ,000 End Suc on Pumps Condenser Water (20 HP) EA 6, ,000 End Suc on Pumps Hydronic Loop (5 HP) EA 4, ,000 HP 1: Heat Pump Lobby Entry (McQuay) EA 5, ,500 Capital Reserve Consultants, LLC Page 4 7

29 Component Inventory with Current Costs Descrip on Date in Service Replacement Year Useful Adjustment Remaining HVAC con nued... HP 2: Heat Pump Main Electrical Room EA 5, ,500 HP 3: Heat Pump NE Machine Room EA 5, ,500 HP 4: Heat Pump East Lobby EA 5, ,500 HP 5: Heat Pump Telecom Room EA 5, ,500 HP 6: Heat Pump Elevator Machine Room EA 5, ,500 HVAC Control & Status Panels EA 2, ,000 In Line Pumps Boiler Circula on (3/4 HP) EA 2, ,000 In Line Pumps Coil Pump (1/2 HP) EA 1, ,000 SF 1: Stairwell Fan 14,000 CFM (Cook) EA 10, ,000 SF 2: Stairwell Fan 17,000 CFM (Cook) EA 12, ,000 SF 3: Stairwell Fan 21,000 CFM (Cook) EA 18, ,000 SF 4: Elevator Sha Fan 20,000 CFM (Cook) EA 6, ,500 SF 5: Elevator Sha Fan 20,000 CFM (Cook) EA 6, ,500 Unit Heaters 350 CFM (QMARK) EA ,050 Unit Heaters 500 CFM (QMARK) EA ,350 Unit Heaters 650 CFM (QMARK) EA ,650 Variable Frequency Drives Condenser Water Pumps EA 3, ,000 Architectural Electric Convectors 2100W EA 1, ,500 Architectural Electric Convectors 2400W EA 2, ,000 Architectural Electric Convectors 6900W EA 4, ,000 Condenser Water Service (EVAPCO) EA 80, ,000 B 1 & 2: Hydronic Boilers 1.2 Million Btu/Hr. (Fulton) EA 60, ,000 Fire/Smoke Dampers EA ,000 HVAC Total $624,050 Units Cost Unit Cost Current Interior Finishes Carpet (2nd Floor) ,100 SY ,600 Carpet (Stair #1 & 2 at Lobby) EA 1, ,000 Carpet (Stair #1 Floors 3thru 10) EA 1, ,600 Carpet (Upper Corridors) ,900 SY ,950 Ceiling Tile (2nd Floor) ,000 SF ,000 Kitchen Cabinets & Countertops (Res Units) EA 1, ,000 Resilient Flooring (Unit Bathrooms) EA ,400 Toilet Par ons (2nd Floor Restrooms) EA 1, ,000 Vinyl CompositeTile (Telco Rooms) SF ,680 Interior Finishes Total $978,230 Light Fixtures 6" Recessed HID Downlight (120V) EA ,350 6" Recessed HID Downlight (277V) EA ,710 6" Recessed MH Downlight (277V) EA Capital Reserve Consultants, LLC Page 4 8