Seaspray Condominium Association, Inc. Fort Walton Beach, Florida File #

Transcription

1 A FULL RESERVE STUDY FOR Seaspray Condominium Association, Inc. Fort Walton Beach, Florida File # FOR PERIOD: January 1, 2017 December 31, 2017 PREPARED BY GAB ROBINS, A DIVISION OF CUNNINGHAM LINDSEY 3300 W. LAKE MARY BLVD. SUITE 350 LAKE MARY, FLORIDA (800) ext. 257 (407) ext. 257

2 3300 W. Lake Mary Blvd. Suite 350 Lake Mary, FL T: x 257 F: service@gabvalue.com On-Line: January 29, 2016 Seaspray Condominium Association, Inc. Attn: John M. Dezzutto, Director 29B Miracle Strip Parkway Southwest Fort Walton Beach, Florida Dear Mr. Dezzutto, On January 14, 2016, we completed an on-site inspection of Seaspray Condominium Association, Inc.'s common area reserve items. The intent of this reserve study report is to show cash reserves necessary for the future repair or replacement of expendable components incorporated into the subject property. The purpose of this report is to aid Seaspray Condominium Association, Inc. in making a determination for cash reserves that are needed to repair or replace short-lived building and/or site components. The report identifies each component selected, it s estimated useful life, adjusted life, scheduled replacement date, and current cost to repair/replace. The useful and remaining lives of the building components in this study, as well as the current replacement costs, have been selected from market standards, cost estimating services, and consideration of actual recent costs incurred by the association for reserve upgrades. This report is classified as a full reserve study under the guidelines of the National Reserve Study Standards of the Community Associations Institute, and conforms to the Community Associations Institute Professional Reserve Specialist Code of Ethics. The Reserve Analyst/Specialist and GAB Robins have no relationships with the association that would result in actual or perceived conflicts of interest. This report is our opinion and based upon observed conditions and state of repair. Actual determinations of the current conditions and state of repair for certain items may be beyond the scope of this analysis. Items may not last as long as projected or may exceed their estimated lives. Influences such as weather, catastrophe, improper maintenance, physical abuse, or abnormal use can affect these lives and/or replacement costs. When such occurrences happen, another inspection should be made and a new revised study prepared. While we have attempted to create a useful tool for the association to plan their needs, the actual reserves set aside are solely at the association s discretion. The findings of this study are not for use in performing an audit, quality/forensic analyses, or background checks of historical records. In completing this report, the reserve analyst/specialist completed the physical on-site inspection of the subject property. Appropriate measurements and counts were taken to determine quantities (blueprints were also used to aid in the determination of quantities). No destructive testing methods (i.e. roof core sampling, etc.) were utilized during the inspection. Current financial data, including the actual or projected reserve fund balances as of the analysis date, and property histories, provided by Sue Walden, Page 2

3 Manager, were utilized in the completion of this report. This data was not audited, and was assumed to be complete and correct. The reserve analyst/specialist estimated the repair/replacement cost taking into account contingencies inherent to this type of work. The report was prepared utilizing the information gathered in the field and the costs estimated by the reserve analyst/specialist. Respectfully submitted, Margery Schultz Reserve Analyst Page 3

4 Table of Contents Project Overview... 5 Reserve Study Funding Analysis... 8 Executive Summary Reserve Budget Comparison Cash Flow Analysis Item Parameter - Category - Chart Item Parameters - Detail Item Parameters - Full Detail Expenditures - Items Through Cash Flow - Chart Cash Flow - Annual Cash Flow - Monthly Supplementary Information Component Funding Analysis Component Funding Analysis - Category Component Funding Analysis - Items Addendum Chapter 718 & 719 Florida Statutes Terms and Definition Annual Update Program Page 4

5 PROJECT OVERVIEW Project Overview The subject of this reserve study report is the common areas within Seaspray Condominium Association, Inc., a 100 unit residential development located in Fort Walton Beach, Florida. Originally constructed at or near 1965, according to the association representative, the common areas include a residential East and West wing, center office area, clubhouse, pool bath house, dune crossovers, site lighting, asphalt pavement, entry/exit gates and motors, perimeter wood and aluminum fencing a pool with supporting equipment, furniture, deck and fencing and gates, video surveillance system, wood deck, three wells, a playground and landscaping and irrigation. The main buildings (Center, East and West wings) are of concrete construction with painted stucco exteriors with a combination of flat/membrane and standing seam metal roof covers. Access is provided via exterior stairs to the balconies and exterior stairs to the main entry. These buildings also include the maintenance office, laundry facility and property office and lounge areas. The clubhouse is of concrete construction with a painted stucco exterior and a standing seam metal roof cover. The clubhouse is equipped with a kitchen and two restrooms and was recently renovated in The pool bath house is of wood frame construction with a flat roof cover and includes two restrooms and the pool equipment room. As of the date of our latest physical inspection, the common areas were observed to be in average overall condition, and appear to have been well maintained. No items of significant deferred maintenance were noted. Reserves are only calculated for the replacement of short-lived building or site components. This includes components that require replacement prior to the overall estimated end life of the buildings or structures. This report is designed to provide reasonable, appropriate budgetary cost and useful life data based on market standards for the subject s property type and in compliance with Florida statutes. Florida Statutes require consideration for roofs, exterior paint and/or waterproofing, pavement and all items that have an estimated repair or replacement cost above $10,000. We are unaware of any private reserve requirements. Page 5

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8 RESERVE STUDY FUNDING ANALYSIS Reserve Study Funding Analysis There are two generally accepted means of estimating reserves; the Cash Flow Analysis and the Component Funding Analysis methodologies. The Cash Flow Analysis (or Pooling Method) is a method of calculating reserve contributions where contributions to the reserve funds are designed to offset the variable annual expenditures from the reserve fund. This analysis recognizes interest income attributable to reserve accounts over the period of the analysis. Funds from the beginning balances are pooled together and a yearly contribution rate is calculated to arrive at a positive cash flow and reserve account balance to adequately fund the future projected expenditures throughout the period of the analysis. Prior to December 23, 2002, Florida statute mandated that condominium associations calculate reserves via the Component Funding Analysis method, on an annual basis. Funding at less than 100% of the fully funded estimate, based on the Component Funding Analysis method, could occur only after a full vote of the association membership. As of December 23, 2002, amendments to the Florida Administrative Code recognize the Cash Flow Analysis method as an approved methodology for the calculation of reserve funding for condominium associations. The fund requirement estimated by the Cash Flow Analysis method can now be provided to the membership, on an annual basis as a fully funded figure. The analysis must be completed as a portion of the association's annual budget, include the total estimated useful lives, estimated remaining useful lives, and estimated replacement cost/deferred maintenance expenses of all assets in the reserve budget (minimum roofing, painting, paving and any other item with a replacement/repair cost over $10,000), and the estimated fund balance of the pooled reserve account as of the beginning of the period for which the budget will be in effect. If the association maintains a pooled account for reserves, the amount of the contribution to the pooled reserve account as disclosed on the proposed budget shall be not less than that required to ensure that the balance on hand at the beginning of the period for which the budget will go into effect plus the projected annual cash inflows over the remaining estimated useful lives of all of the assets that make up the reserve pool are equal to or greater than the projected annual cash outflows over the remaining estimated useful lives of all of the assets that make up the reserve pool, based on the current reserve analysis. The projected annual cash inflows may include estimated earnings from investment of principal; the association may include annual percentage increases in costs for the reserve components, but these increases are not mandated. Fully funded reserve contributions utilizing this methodology may not include future special assessments, and the annual funding levels cannot include percentage increases. In our Cash Flow Analysis calculations, we do not include increases in construction costs/inflation. While future costs are expected to be higher than today s costs, which is supported by our analysis of past indexes/trends, increases in costs should be recognized as the association estimates current repair/replacement costs during their annual calculations of full reserve funding. A current cost estimate during the current fiscal year would theoretically be lower than a current cost for future fiscal years. That way the estimates of current cost moving forward will eventually represent current cost as of the date of forecast expenditure. Funding the reserves annually on that basis should ensure that adequate monies are available as of the date of expense, assuming that the current cost estimate is appropriate and that the reserve was fully funded since its last repair/replacement project was completed. The Component Funding Analysis (or Straight Line Method) calculates the annual contribution amount for each individual line item component by dividing the component s unfunded balance by its Page 8

9 remaining useful life. A component s unfunded balance is its replacement cost less the reserve balance in the component at the beginning of the analysis period. The annual contribution rate for each individual line item component is then summed to calculate the total annual contribution rate for this analysis. Page 9

10 EXECUTIVE SUMMARY Executive Summary PROPERTY DATA Property Name: Seaspray Condominium Association, Inc. Property Location: Fort Walton Beach, Florida Report Run Date: January 29, 2016 Property Type: Condominium Association Budget Year Begins: January 1, 2017 Total Units: 100 Budget Year Ends: December 31, 2017 PROJECTED COMPONENT CATEGORIES AND PARAMETERS 1. Building Exteriors 2. Clubhouse 3. Common Area Interiors 4. Painting & Waterproofing 5. Pavement 6. Plumbing/Electrical 7. Pool 8. Roofs 9. Security 10. Site Improvements Total current cost of all reserve components in reserve analysis: $ 1,655,820 Estimated beginning reserve fund balance for reserve analysis: $ 208,239 Total number of components scheduled for replacement in the 2017 budget year: 2 Total cost of components scheduled for replacement in the 2017 budget year: $ 136,923 ANALYSIS RESULTS CASH FLOW ANALYSIS Current annual reserve funding contribution amount (2016 Budget): $ 12,943 Our recommended annual reserve funding contribution amount: $ 103,200 Increase (decrease) between current and recommended annual contribution amounts: $ 90,257 Increase (decrease) between current and recommended annual contribution amounts: 697.3% ANALYSIS RESULTS COMPONENT FUNDING ANALYSIS Current annual reserve funding contribution amount (2016 Budget): $ 12,943 Our recommended annual reserve funding contribution amount: $ 384,864 Increase (decrease) between current and recommended annual contribution amounts: $ 371,921 Increase (decrease) between current and recommended annual contribution amounts: 2,873.5% Page 10

11 RESERVE BUDGET COMPARISON Reserve Budget Comparison The previous page provides a comparison of the association s approved fiscal year 2016 reserve contribution level and our estimates for full reserve funding for fiscal year The funding requirements estimated for fiscal year 2017 via the Cash Flow Analysis and Component Funding Analysis are higher than the association s approved fiscal year 2016 contribution levels. It was reported by the association representative that the association currently does not have any reserve account. We recommend that the association adopts one of the recommended contributions above in order to avoid the need for a special assessment or bank loan in order to pay for expenditures in the future. Based on the Cash Flow Analysis methodology, the association can fully fund the reserves as analyzed in this report at $103,200 in fiscal year This level of annual funding could remain stable over the remainder of the study period, provide adequate funds to offset planned reserve expenditures, and maintain a positive reserve fund balance over the entirety of the study period. In this analysis we have utilized a 0.65% rate of return on reserve funds invested over the study period (assuming safe investment in CDs, money market accounts, etc.). The Cash Flow Analysis utilizes a pooling effect with reserve funds by pooling all funds together and distributing these funds to individual components as their replacement comes due. Funds that are pooled together in the cash flow analysis include the beginning balance, contributions to the reserve funds and interest earned on reserve funds. These pooled funds are matched against reserve expenditures throughout the period of the analysis by using our reserve analysis software program to ensure that the available funds are always greater than expenditures. Based on our Component Funding Analysis model, the reserves as analyzed in this report suggest that in order to fully fund in fiscal year 2017, the contribution should be $384,864. The Component Funding Analysis is a straight-line accounting procedure that was previously mandated by the State of Florida. Until December 2002, funding at less than this amount was considered partial funding by the state and required approval by the association members. As stated previously in this report, changes to the administrative code now allow the implementation/use of a pooling, or cash flow method of reserve analysis. Page 11

12 CASH FLOW ANALYSIS Cash Flow Analysis Page 12

13 Item Parameter - Category - Chart. Page 13

14 Item Parameters - Detail Replace Current Est Adj Rem Future Basis Measure Description Date Cost Life Life Life Cost Cost Basis Building Exteriors Flooring, Carpet, Exteriors 01/01/2022 $ 71, :00 10:00 5:00 $ 71, $ 71, total Railings/Handrails 01/01/ , :00 35:00 23:00 102, ln ft Sliding Doors Allowance 01/01/2017 5, :00 52:00 0:00 5, , ea Window Replacement Allowance 01/01/ , :00 56:00 4:00 12, , sq ft Clubhouse $ 192, $ 192, Flooring, Tile 01/01/ , :00 25:00 22:00 18, sq ft Furnishings/Finishes, Clubhouse 01/01/ , :00 14:00 11:00 41, sq ft HVAC Split Units 01/01/2020 6, :00 12:00 3:00 6, , tons Int. Renovations, Kitchen 01/01/ , :00 25:00 22:00 15, sq ft Int. Renovations, Restrooms 01/01/ , :00 25:00 22:00 10, sq ft Common Area Interiors $ 93, $ 93, Fitness Equipment Allowance 01/01/2020 7, :00 10:00 3:00 7, , total Int. Renovations, Restrooms, Gym 01/01/ , :00 25:00 13:00 17, sq ft Washers/Dryers Allowance 01/01/2018 6, :00 8:00 1:00 6, , lp sm Insurance Reserve $ 31, $ 31, Insurance Reserve 01/01/ , :00 0:00 0:00 60, , total Insurance Reserve 01/01/ , :00 1:00 1:00 60, , total Insurance Reserve 01/01/ , :00 2:00 2:00 60, , total Insurance Reserve 01/01/ , :00 3:00 3:00 60, , total Painting & Waterproofing $ 240, $ 240, Paint/Waterproof Bldg. Exteriors 07/01/ , :00 12:06 0:06 71, units Pavement $ 71, $ 71, Asphalt Overlay 01/01/ , :00 20:00 11:00 73, sq yds $ 73, $ 73, Page 14

15 Item Parameters - Detail Replace Current Est Adj Rem Future Basis Measure Description Date Cost Life Life Life Cost Cost Basis Plumbing/Electrical Pool Electrical Panel Allowance 01/01/2019 $ 64, :00 2:00 2:00 $ 64, $ 2, ea Light Fixtures/Sconces 01/01/ , :00 22:00 5:00 42, , lp sm Plumbing Allowance 01/01/ , :00 15:00 14:00 40, , total Site Lights Replacement 01/01/ , :00 60:00 8:00 25, , poles Wells, Pumps/Equipment 01/01/ , :00 24:00 17:00 12, , lp sm $ 184, $ 184, Int. Renovations, Restrooms 01/01/2030 3, :00 25:00 13:00 3, sq ft Pool Deck Brick Pavers 01/01/2034 7, :00 25:00 17:00 7, sq ft Pool Equipment Allowance 01/01/ , :00 10:00 7:00 12, , total Pool Fencing & Gates 01/01/ , :00 25:00 13:00 13, ln ft Pool Furniture 01/01/ , :00 10:00 4:00 16, pieces Pool Interior Resurfacing 01/01/ , :00 12:00 4:00 22, , total Roofs $ 74, $ 74, Roofing, Flat/Membrane 01/01/ , :00 20:00 8:00 46, , sqs Roofing, Metal 01/01/ , :00 25:00 13:00 483, sqs Security $ 530, $ 530, Gate Keypad Replacement 10/01/2020 4, :00 12:00 3:09 4, , total Gates, Aluminum 10/01/2033 6, :00 25:00 16:09 6, , gates Gates, Aluminum 10/01/2033 6, :00 25:00 16:09 6, , gates Gates, Motors 10/01/2020 3, :00 12:00 3:09 3, , gates Gates, Motors 10/01/2020 3, :00 12:00 3:09 3, , gates Security, Video Surveillance 01/01/2021 6, :00 12:00 4:00 6, , cameras Site Improvements $ 31, $ 31, Deck Restoration 01/01/ , :00 25:00 20:00 16, sq ft Dune Crossover Repair/Restoration 01/01/ , :00 24:00 2:00 40, sq ft Landscaping/Irrigation 01/01/ :00 10:00 0: total Page 15

16 Item Parameters - Detail Description Replace Date Current Cost Est Life Adj Life Rem Life Future Cost Basis Measure Cost Basis Perimeter Fencing, Aluminum 10/01/2033 $ 13, :00 25:00 16:09 $ 13, $ ln ft Perimeter Fencing, Wood 01/01/ :00 16:00 13: ln ft Perimeter Fencing, Wood 01/01/ , :00 16:00 4:00 24, ln ft Playground Replacement 01/01/ , :00 12:00 4:00 19, , total Signage, Entry Sign 01/01/ , :00 25:00 19:00 17, , total $ 132, $ 132, $ 1,655, $ 1,655, Page 16

17 Item Parameters - Full Detail Flooring, Carpet, Exteriors Item Number 9 Measurement Basis total Type Common Area Estimated Useful Life 10:00 Category Building Exteriors Basis Cost 71, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2022 5:00 10: $ 71, $ 71, $ 71, $ 71, Comments We have observed a 10 year range in useful life cycles for common area exterior carpeting at similar properties. The current cost estimate is based on the existing product located at the hallways, stairs and patios and our experience. It was reported by an association representative that the carpet on the walkways, balconies and stairs was replaced in 2012 at an invoiced cost of $65,000. We have trended this cost for inflation. This cost includes removal and disposal of the existing carpet and pad and replacement with like quality. This life cycle and cost estimate can vary depending on the quality of carpeting, level of ongoing maintenance, and association cosmetic tastes. Page 17

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19 Item Parameters - Full Detail Railings/Handrails Item Number 5 Measurement Basis ln ft Type Common Area Estimated Useful Life 35:00 Category Building Exteriors Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 35: $ 102, $ 102, $ 102, $ 102, Comments At some point in the foreseeable future, the association should expect to incur costs for replacement of the railings/handrails. Replacement is sometimes completed in conjunction with major concrete restoration; we have observed life cycles for railings replacement after less than 25 years, while some properties of 40+ years in age have yet to complete replacement. It was reported by an association representative that the exterior railings/handrails were replaced in The current per linear foot cost estimate includes removal and disposal of the existing railings, typical minor concrete repairs, and installation of railings of similar height/quality. Page 19

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21 Item Parameters - Full Detail Sliding Doors Allowance Item Number 27 Measurement Basis ea Type Common Area Estimated Useful Life 1:00 Category Building Exteriors Basis Cost 5, Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2017 0:00 52: $ 5, $ 5, $ 5, $ 5, Comments The exterior sliding doors accessing the dwelling units are reportedly the financial responsibility of the association. While minor replacements should be expected from time to time as a function of routine maintenance, the market indicates that at some point total inventory replacement will be necessary. There are a total of 100 sliding doors at a cost of $5,023/door set. We have included an annual allowance for replacement of one door per year. The average total cost estimate is reflective of third party contractor replacement and was provided by the association representative. Page 21

22 Item Parameters - Full Detail Window Replacement Allowance Item Number 33 Measurement Basis sq ft Type Common Area Estimated Useful Life 5:00 Category Building Exteriors Basis Cost 12, Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2021 4:00 56: $ 12, $ 12, $ 12, $ 12, Comments With routine maintenance, exterior window systems should not require total replacement for 30+ years under normal operating conditions, which includes periodic caulking and waterproofing repairs. The current cost estimate is based on the size in square feet of exterior windows and a market supported $40.37/square foot unit cost. The total area of the exterior windows is approximately 6,380 s.f.. We have included an allowance for partial 5% replacements every 5 years. Total replacement would cost $257,560. This cost includes removal and disposal of the existing windows and frames, and installation of new windows and frames. This cost is not reflective of major restoration/replacement of the underlying wood framing and walls; a determination of the condition of these systems and budgetary repair costs and remaining useful life estimates are beyond the scope of this analysis. Page 22

23 Item Parameters - Full Detail Flooring, Tile Item Number 31 Measurement Basis sq ft Type Common Area Estimated Useful Life 25:00 Category Clubhouse Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 18, $ 18, $ 18, $ 18, Comments Tile flooring has shown a wide range in useful lives, which can largely depend on the association's cosmetic tastes. Based on our experience, many associations will replace tile flooring on a year life cycle. The current cost estimate includes removal and disposal of the existing flooring of the clubhouse tile and replacement with like quality, and is based on an average $12.98/sq. ft. unit cost and the approximate floor area. Page 23

24 Item Parameters - Full Detail Furnishings/Finishes, Clubhouse Item Number 32 Measurement Basis sq ft Type Common Area Estimated Useful Life 14:00 Category Clubhouse Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 14: $ 41, $ 41, $ 41, $ 41, Comments To insure a modern cosmetic appeal, the association should expect to complete major clubhouse furnishings and finishes projects on a periodic and regular basis. While minor additions/replacements/upgrades can be expected from time to time, a life cycle in the low to mid-10 year range is the market norm we have observed. The current $29.87/square foot unit cost is an order of magnitude estimate based on actual market data we have observed in buildings of similar overall quality. This cost does not reflect any unforeseen floor area reconfigurations and/or expansions. Page 24

25 Item Parameters - Full Detail HVAC Split Units Item Number 8 Measurement Basis tons Type Common Area Estimated Useful Life 12:00 Category Clubhouse Basis Cost 1, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2020 3:00 12: $ 6, $ 6, $ 6, $ 6, Comments For the purposes of this analysis, we have utilized cost estimates based on the size of the condensers and air handlers in tons and our experience with HVAC equipment replacement costs. A useful life of years can realistically be expected for the exterior condensers; although the corresponding interior air handlers can last years under normal operating conditions, we have utilized the 12 year life cycle for the pair, as the air handlers will typically be replaced simultaneously with the condensers. Page 25

26 Item Parameters - Full Detail Int. Renovations, Kitchen Item Number 12 Measurement Basis sq ft Type Common Area Estimated Useful Life 25:00 Category Clubhouse Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 15, $ 15, $ 15, $ 15, Comments To insure a modern cosmetic appeal, the association should expect to incur costs associated with major renovation of the clubhouse kitchen interiors on an approximate 25 year life cycle. Including flooring, wall/ceiling finishes, appliances, countertops/cabinetry, plumbing/electrical fixtures, etc. It was reported by an association representative that the clubhouse kitchen interiors were renovated in This analysis assumes that as needed replacements will continue to be funded through the association's annual operating budget over this life cycle. The cost estimate is based on the total area of the kitchen and an average per square foot unit cost. Page 26

27 Item Parameters - Full Detail Int. Renovations, Restrooms Item Number 13 Measurement Basis sq ft Type Common Area Estimated Useful Life 25:00 Category Clubhouse Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 10, $ 10, $ 10, $ 10, Comments This fund is designed to cover costs related to the major interior renovation of the clubhouse restroom interiors, including tile flooring, wall/ceiling finishes, mirrors, countertops, lighting and plumbing fixtures, etc., should be expected on a +/- 25 year life cycle. The current cost estimate is representative of the total combined floor area and an average per square foot unit cost. It was reported by an association representative that the clubhouse restroom interiors were renovated in This analysis assumes that minor as needed replacements/repairs will continue to be completed as a function of ongoing maintenance. Page 27

28 Item Parameters - Full Detail Fitness Equipment Allowance Item Number 25 Measurement Basis total Type Common Area Estimated Useful Life 10:00 Category Common Area Interiors Basis Cost 7, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2020 3:00 10: $ 7, $ 7, $ 7, $ 7, Comments Market standards reflect a typical life cycle of 7-8 years for average quality cardiovascular equipment (treadmills, elliptical trainers, etc.) and years for strength training stations, dumbbells, mat flooring, etc. Therefore, we have utilized a 10 year life cycle, with the expectation that individual replacements of cardio equipment will likely be made on an as needed basis over this life cycle. The current lump sum replacement cost for the existing inventory is estimated based on retail costing indexes and our experience. We have included a cost for 50% replacement every 10 years. Page 28

29 Item Parameters - Full Detail Int. Renovations, Restrooms, Gym Item Number 35 Measurement Basis sq ft Type Common Area Estimated Useful Life 25:00 Category Common Area Interiors Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 17, $ 17, $ 17, $ 17, Comments This fund is designed to cover costs related to the major interior renovation of the gym restroom interiors, including tile flooring, sauna restoration and equipment replacement, wall/ceiling finishes, mirrors, lighting and plumbing fixtures, etc., should be expected on a +/- 25 year life cycle. The current cost estimate is representative of the total combined floor area and an average per square foot unit cost. This analysis assumes that minor as needed replacements/repairs will continue to be completed as a function of ongoing maintenance. Page 29

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31 Item Parameters - Full Detail Washers/Dryers Allowance Item Number 29 Measurement Basis lp sm Type Common Area Estimated Useful Life 8:00 Category Common Area Interiors Basis Cost 6, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2018 1:00 8: $ 6, $ 6, $ 6, $ 6, Comments This allowance is designed to cover expected costs for replacing the six washers and six dryers in the common area as well as the two commercial washers and two commercial dryers with like quality appliances on an as needed basis, as is typical. The current cost estimate is based on the current inventory. This was designed on a recurring eight year life cycle. Page 31

32 Item Parameters - Full Detail Insurance Reserve Item Number 39 Measurement Basis total Type Common Area Estimated Useful Life 0:00 Category Insurance Reserve Basis Cost 60, Tracking Logistical Method One Time Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/2017 0:00 0: $ 60, $ 60, /01/2018 1:00 1: $ 60, $ 60, /01/2019 2:00 2: $ 60, $ 60, /01/2020 3:00 3: $ 60, $ 60, $ 240, $ 240, Comments Some associations establish and fund reserves to provide funds for the possibility of financial losses due to hurricane/storm damage and/or insurance deductibles. Unlike say painting or roof replacement, there is no market standard for this type of reserve; some associations choose to reserve very aggressively, while others more conservatively. On that basis, we include this type of reserve only when provided an association s funding goal in total dollars and time frame in which to reach that goal. At such time as the association provides a budgetary insurance reserve funding goal and time frame in which to reach that goal, this report can be amended to include this component. Per the request of the association we have included a line item for Insurance Reserve which will accrue up to $300,000 at a cost of $60,000 over the course of 5 years. Page 32

33 Item Parameters - Full Detail Paint/Waterproof Bldg. Exteriors Item Number 7 Measurement Basis units Type Common Area Estimated Useful Life 7:00 Category Painting & Waterproofing Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2017 0:06 12: $ 71, $ 71, $ 71, $ 71, Comments To insure proper protection of the underlying concrete, stucco, wood and metal surfaces, the market reflects a maximum 7 year useful life for exterior painting & waterproofing (in lieu of an association purchased 10 year warranty). The current average per dwelling unit cost estimate includes typical minor concrete/stucco repairs, surface preparation, as needed window/sliding glass door caulking and painting/refinishing of all exterior concrete, stucco, wood and metal surfaces (including railings and window/slider frames). A determination of the condition of the exterior concrete systems is beyond the scope of this report. While it is certain that some measure of concrete restoration will be necessary in any property of the subject's design and construction with exposure to the ocean elements, it is very difficult to quantify budgetary costs and remaining useful lives. Costs can range from as low as $5,000 per unit to over $60,000 per unit, and useful lives can range from as low as roughly 15 years to over 40 years. It is our market observation that very few associations establish and fund major concrete restoration reserves, given the relative uncertainty of cost and useful life; it is much more common for these upgrades to be funded (at least partially) via special assessment. No reserves for concrete restoration were included in this report. Should the association wish to include reserves for concrete restoration, a budgetary funding goal and useful life cycle would need to be provided. Page 33

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35 Item Parameters - Full Detail Asphalt Overlay Item Number 1 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement Basis Cost 9.13 Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 20: $ 73, $ 73, $ 73, $ 73, Comments We have observed life cycles of less than 15 years, to 25+ years, for asphalt overlay projects, assuming proper design, installation and routine maintenance. The current unit cost estimate includes as needed milling of the asphalt paving at its junction with adjacent concrete paving, typical minor repairs to the underlying pavement subbase and drainage systems, installation of a standard overlay, and re-striping. The paved area is a rounded estimate. Under normal conditions, total replacement of concrete paving (sidewalks, curbing, gutters, etc.) should not be necessary at any one given time. It is our market observation that while some associations do establish and fund contingency reserves for concrete paving repairs, many prefer to fund as needed repairs through their annual operating budgets, as a function of routine maintenance. No reserves for concrete paving were included in this report. Page 35

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37 Item Parameters - Full Detail Electrical Panel Allowance Item Number 2 Measurement Basis ea Type Common Area Estimated Useful Life 1:00 Category Plumbing/Electrical Basis Cost 2, Tracking Logistical Method One Time Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/2019 2:00 2: $ 64, $ 64, $ 64, $ 64, Comments Under normal conditions, total replacement of the common area electrical systems should not be necessary at any one given time. Therefore, it is our opinion that reserving for total replacement is not prudent or practical, which is supported by our review of reserve budgets at similar properties. While some associations do establish and fund contingency reserves for unpredictable and expected common area electrical repairs, other associations prefer to fund unforeseen common area electrical repairs (at least partially) via special assessment. It was reported by an association representative that the electrical panels will need replacement in the near future. We have this as a one-time occurrence. Page 37

38 Item Parameters - Full Detail Light Fixtures/Sconces Item Number 30 Measurement Basis lp sm Type Common Area Estimated Useful Life 22:00 Category Plumbing/Electrical Basis Cost 42, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2022 5:00 22: $ 42, $ 42, $ 42, $ 42, Comments To insure a modern cosmetic appeal, replacement of the decorative light fixtures/sconces supporting the common area hallways should be expected on a life cycle in the year range. The current lump sum cost estimate is reflective of third party replacement, rather than via in house labor. Page 38

39 Item Parameters - Full Detail Plumbing Allowance Item Number 37 Measurement Basis total Type Common Area Estimated Useful Life 15:00 Category Plumbing/Electrical Basis Cost 40, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 15: $ 40, $ 40, $ 40, $ 40, Comments Under normal conditions, total replacement of the common area plumbing lines/piping should not be necessary at any one given time. Therefore, it is our opinion that reserving for total replacement is not prudent or practical, which is supported by our review of reserve budgets at similar properties. While some associations do establish and fund contingency reserves for unpredictable and expected common area plumbing repairs, other associations prefer to fund unforeseen common area plumbing repairs (at least partially) via special assessment. It was reported by an association representative that the association spent $120,000 in 2009 for lining repairs. The association also spent $70,000-$80,000 on each side for plumbing repairs. The association also plans on spending $100,000 in repairs to the feed lines in We have included an allowance for $40,000 on a recurring 15 year life cycle. Page 39

40 Item Parameters - Full Detail Site Lights Replacement Item Number 6 Measurement Basis poles Type Common Area Estimated Useful Life 40:00 Category Plumbing/Electrical Basis Cost 1, Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2025 8:00 60: $ 25, $ 25, $ 25, $ 25, Comments While minor as needed replacement can be expected from time to time, the association should expect a major inventory replacement on a +/- 30 year life cycle for these lights. The current per pole unit cost estimate is based on known costs for similar replacements and includes removal of the existing pole/fixture and replacement with like quality. The lights are past their useful life but they have been reported issues or plans to replace them in the near-term. Page 40

41 Item Parameters - Full Detail Wells, Pumps/Equipment Item Number 36 Measurement Basis lp sm Type Common Area Estimated Useful Life 24:00 Category Plumbing/Electrical Basis Cost 12, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 24: $ 12, $ 12, $ 12, $ 12, Comments Under normal conditions, total replacement of wells should not be necessary at any one given time; as such, reserving for total replacement is not considered prudent or practical. It is our market observation that while periodic pump rebuilds, pumps/motors replacements, and other repairs should be expected as a function of routine maintenance, major modernization of well pumps and equipment should be expected on a life cycle in the mid-20 year range. It was reported by an association representative that the property has three wells. We have included a lump sum allowance for repairs and replacements on a recurring 24 year life cycle. Page 41

42 Item Parameters - Full Detail Int. Renovations, Restrooms Item Number 28 Measurement Basis sq ft Type Common Area Estimated Useful Life 25:00 Category Pool Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 3, $ 3, $ 3, $ 3, Comments This fund is designed to cover costs related to the major interior renovation of the pool house restroom interiors, including tile flooring, wall/ceiling finishes, mirrors, lighting and plumbing fixtures, etc., should be expected on a +/- 25 year life cycle. The current cost estimate is representative of the total combined floor area and an average per square foot unit cost. This analysis assumes that minor as needed replacements/repairs will continue to be completed as a function of ongoing maintenance. It was reported by an association representative that the fixtures were replaced in The tile was installed in Page 42

43 Item Parameters - Full Detail Pool Deck Brick Pavers Item Number 16 Measurement Basis sq ft Type Common Area Estimated Useful Life 25:00 Category Pool Basis Cost 6.13 Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 7, $ 7, $ 7, $ 7, Comments Replacement of this type of decking is typically completed on a year life cycle, with proper installation and maintenance. The current cost estimate includes removal and replacement of the existing brick paver decking with a similar quality and is based on the total size of brick paved decking and a market supported per square foot unit cost. Page 43

44 Item Parameters - Full Detail Pool Equipment Allowance Item Number 20 Measurement Basis total Type Common Area Estimated Useful Life 10:00 Category Pool Basis Cost 12, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2024 7:00 10: $ 12, $ 12, $ 12, $ 12, Comments Since it is unlikely that the entire inventory of pool equipment (pumps, filters, chlorination systems, etc.) will require replacement at any one given time under normal operating conditions, many associations choose to fund as needed replacements of the pool equipment inventory through the annual operating budget. Based on our experience with similar properties, we have estimated a nominal allowance. This cost and timeframe may vary, even widely, from actual expenses and can be adjusted as needed. It was reported by an association representative that the pool heaters are approximately 2 years old and are replaced on a 3 year recurring life cycle. Page 44

45 Item Parameters - Full Detail Pool Fencing & Gates Item Number 17 Measurement Basis ln ft Type Common Area Estimated Useful Life 25:00 Category Pool Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 13, $ 13, $ 13, $ 13, Comments A life cycle in the low to mid-20 year range is the most typical useful life we have observed for replacement of standard vinyl pool/spa deck fencing and gates. The current per linear foot cost estimate includes removal and disposal of the existing fencing and gates and installation of like height/quality fencing and gates. It was reported by an association representative that the pool fencing and gates were installed in Page 45

46 Item Parameters - Full Detail Pool Furniture Item Number 15 Measurement Basis pieces Type Common Area Estimated Useful Life 10:00 Category Pool Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2021 4:00 10: $ 16, $ 16, $ 16, $ 16, Comments While minor additions/replacements can be expected from time to time, and assuming periodic as needed re-strapping and/or refinishing as a function of routine maintenance, most associations complete pool deck furniture inventory replacements on a 7-10 year life cycle. The current per piece cost estimate is an average figure for the differing types (i.e. chaise lounges, tables, chairs, umbrellas, trash receptacles, etc.). This cost includes the four picnic table at the deck area. It was reported by an association representative that the pool furniture was purchased in Page 46

47 Item Parameters - Full Detail Pool Interior Resurfacing Item Number 14 Measurement Basis total Type Common Area Estimated Useful Life 12:00 Category Pool Basis Cost 22, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2021 4:00 12: $ 22, $ 22, $ 22, $ 22, Comments Assuming proper installation, chemical balancing, and routine maintenance, interior resurfacing of standard concrete pools with marcite or aggregate interior finishes should be expected on a life cycle in the year range. The current per square foot of surface area cost estimate includes typical minor tank/structural repairs, tile upgrades and/or replacements, and installation of new aggregate surface materials (i.e. "diamond brite", "pebble crete", etc.). This cost is based on 1,800 s.f. at a cost of $12.39/s.f.. It was reported by an association representative that the pool interior was resurfaced in Page 47

48 Item Parameters - Full Detail Roofing, Flat/Membrane Item Number 26 Measurement Basis sqs Type Common Area Estimated Useful Life 20:00 Category Roofs Basis Cost 1, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2025 8:00 20: $ 46, $ 46, $ 46, $ 46, Comments Data gleaned from both within and outside the local market area reflects a probable life cycle in the year range for a properly designed, installed and maintained flat/membrane roof. As no professional roofing studies were provided that would suggest that physical conditions exist at this (or any other common area) roofing, a 2025 replacement date was scheduled. The current cost estimate includes removal and disposal of the existing roofing, typical minor repairs to the underlying roof structures, flashing, etc. and installation of like roofing. This cost includes the office roofs and pool house roof. one square = 100 square feet Page 48

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50 Item Parameters - Full Detail Roofing, Metal Item Number 10 Measurement Basis sqs Type Common Area Estimated Useful Life 25:00 Category Roofs Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 483, $ 483, $ 483, $ 483, Comments Pitched standing seam metal has a minimum expected life cycle of 25 years, which assumes proper design, installation and routine maintenance. Utilizing a 25 year life cycle reflects a 2030 replacement date. The current cost estimate includes removal and disposal of the existing roofing, typical minor repairs to the underlying roof structures, flashing, as needed repair/replacement of fascia, soffits, and installation of like roofing. It was reported by an association representative that the roofs were replaced in This cost includes the clubhouse roof. one square = 100 square feet Page 50

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52 Item Parameters - Full Detail Gate Keypad Replacement Item Number 22 Measurement Basis total Type Common Area Estimated Useful Life 12:00 Category Security Basis Cost 4, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2020 3:09 12: $ 4, $ 4, $ 4, $ 4, Comments Gate access keypads, like the one in service at the subject property typically enjoy a useful life cycle of +/-10 years, barring unforeseen vehicle or storm damages. The cost estimate is based on actual costs incurred at similar properties and is in keeping with retail pricing indexes. The cost and life may vary depending on the system chosen and association tastes. Page 52

53 Item Parameters - Full Detail Gates, Aluminum Item Number 4 Measurement Basis gates Type Common Area Estimated Useful Life 25:00 Category Security Basis Cost 6, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :09 25: $ 6, $ 6, /01/ /01/ :09 25: $ 6, $ 6, $ 13, $ 13, Comments This category refers to costs associated with replacement of the two aluminum entry gates. Barring unforeseen damage to the subject's gates, and assuming proper and routine maintenance, a minimum useful life of approximately years can be expected. The current replacement cost estimate is based on industry standards, national cost estimating indexes, and our experience with this type of component. Page 53

54 Item Parameters - Full Detail Gates, Motors Item Number 3 Measurement Basis gates Type Common Area Estimated Useful Life 12:00 Category Security Basis Cost 3, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2020 3:09 12: $ 3, $ 3, /01/ /01/2020 3:09 12: $ 3, $ 3, $ 7, $ 7, Comments This category refers to costs associated with replacement of the two metal entry/exit gate motors. Based on industry standards, a useful life of approximately 8-12 years can realistically be expected for these motors. The current replacement cost for each motor is based on industry standards, national cost estimating indexes, and our experience. It was reported that the gate motors were installed in October of Page 54

55 Item Parameters - Full Detail Security, Video Surveillance Item Number 21 Measurement Basis cameras Type Common Area Estimated Useful Life 12:00 Category Security Basis Cost 1, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2021 4:00 12: $ 6, $ 6, $ 6, $ 6, Comments The association has a six camera video surveillance system. The exact installation date was not confirmed. Data gleaned from both within and outside the local market area indicates that while minor component repairs/replacements (cameras, monitors, recording equipment, hardware/software, etc.) can be expected as a function of ongoing maintenance, total system modernization and/or replacement can be expected on a life cycle in the year range. The current per camera cost estimate is reflective of the entire system. Page 55

56 Item Parameters - Full Detail Deck Restoration Item Number 19 Measurement Basis sq ft Type Common Area Estimated Useful Life 25:00 Category Site Improvements Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 16, $ 16, $ 16, $ 16, Comments This reserve refers to costs associated with periodic third party restoration of the composite deck, including replacement of the decking, railings and benches. With routine maintenance, including periodic as needed repairs, a life cycle in the year range can be expected. The current cost estimate is based on our experience with similar expenses. Page 56

57 Item Parameters - Full Detail Dune Crossover Repair/Restoration Item Number 18 Measurement Basis sq ft Type Common Area Estimated Useful Life 20:00 Category Site Improvements Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2019 2:00 24: $ 40, $ 40, $ 40, $ 40, Comments This reserve refers to costs associated with periodic third party restoration of the dune crossover, including decking replacement, railings and as needed repairs and/or replacements to the underlying framing. With routine maintenance and periodic sealing/waterproofing, a life cycle in the 14 to 20 year range can be expected. The dune crossovers are currently past their useful lives. There were no reported plans to restore them in the near-term. We have assigned a 2019 restoration date accordingly. A market supported $31.28/square foot unit cost was utilized. Page 57

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59 Item Parameters - Full Detail Landscaping/Irrigation Item Number 38 Measurement Basis total Type Common Area Estimated Useful Life 10:00 Category Site Improvements Basis Cost 0.00 Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/1975 0:00 10: $ 0.00 $ 0.00 $ 0.00 $ 0.00 Comments In our experience, some associations do establish and fund landscaping reserves, typically on a contingency basis for unforeseen storm damage, blight, etc. Because landscaping is largely cosmetic, costs and useful lives can vary, often widely, from property to property. Given this unpredictability, we include landscaping reserves only when provided current cost and useful life/remaining useful live parameters by an association, and then include at that association's sole discretion. At such time as the association can provide a budgetary funding goal and time frame in which to reach that goal for their common area landscaping, this report can be amended accordingly. As needed upgrades to irrigation systems is typically funded through an association s annual operating budget, as a function of routine maintenance; we have not encountered an association that has established and funded a reserve for total replacement in the absence of an engineering report demonstrating the need and/or economic feasibility of total irrigation system replacement. Page 59

60 Item Parameters - Full Detail Perimeter Fencing, Aluminum Item Number 23 Measurement Basis ln ft Type Common Area Estimated Useful Life 25:00 Category Site Improvements Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :09 25: $ 13, $ 13, $ 13, $ 13, Comments The association should expect to incur costs associated with replacement of the painted aluminum fencing surrounding the property front entrance on a year life cycle. The current replacement cost estimate is based on our experience with similar replacements and includes removal of the existing fencing and replacement with like quality. It was reported by an association representative that this fence was installed the same time as the gates, in Page 60

61 Item Parameters - Full Detail Perimeter Fencing, Wood Item Number 34 Measurement Basis ln ft Type Common Area Estimated Useful Life 16:00 Category Site Improvements Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 16: $ $ /01/ /01/2021 4:00 16: $ 24, $ 24, $ 24, $ 24, Comments We have included a separate line item for the wood fencing in service at the property. Assuming routine maintenance, total replacement of this type of wood fencing should not be necessary for years. The current cost estimate per linear foot includes removal and disposal of the existing fencing and replacement with similar quality. It was reported by an association representative that the wood fence at the front of the property was installed in The remaining wood fence at both perimeters was installed in Page 61

62 Item Parameters - Full Detail Playground Replacement Item Number 11 Measurement Basis total Type Common Area Estimated Useful Life 12:00 Category Site Improvements Basis Cost 19, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/2021 4:00 12: $ 19, $ 19, $ 19, $ 19, Comments The association should expect to incur costs associated with replacement of the inventory of equipment at the playground on a year schedule. It was reported by an association representative that the equipment was purchased in 2008 and We have assigned a 2009 installation date as the average date. The current cost estimate is based on the type and quality of equipment in place. The actual costs may vary slightly due to the type and complexity of equipment chosen in the future. Page 62

63 Item Parameters - Full Detail Signage, Entry Sign Item Number 24 Measurement Basis total Type Common Area Estimated Useful Life 25:00 Category Site Improvements Basis Cost 17, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Date Date Life Life Quantity Current Future /01/ /01/ :00 25: $ 17, $ 17, $ 17, $ 17, Comments This fund is designed to cover the expense of restoring the entry signage including associated lettering, lighting, landscaping, etc. Associations typically complete this upgrade on a year life cycle. The total cost estimate is based on the entry signage in place and our experience with similar signage replacements. Page 63

64 Expenditures - Items Through 2046 Description Asphalt Overlay Deck Restoration Dune Crossover Repair/Restoration 40,351 Electrical Panel Allowance 64,550 Fitness Equipment Allowance 7,500 Flooring, Carpet, Exteriors 71,800 Flooring, Tile Furnishings/Finishes, Clubhouse Gate Keypad Replacement 4,200 Gates, Aluminum Gates, Motors 7,180 HVAC Split Units 6,900 Insurance Reserve 60,000 60,000 60,000 60,000 Int. Renovations, Kitchen Int. Renovations, Restrooms Int. Renovations, Restrooms Int. Renovations, Restrooms, Gym Landscaping/Irrigation Light Fixtures/Sconces 42,000 Paint/Waterproof Bldg. Exteriors 71,900 71,900 Perimeter Fencing, Aluminum Perimeter Fencing, Wood 24,273 Playground Replacement 19,500 Plumbing Allowance Pool Deck Brick Pavers Pool Equipment Allowance 12,000 Pool Fencing & Gates Pool Furniture 16,380 Pool Interior Resurfacing 22,300 Railings/Handrails Roofing, Flat/Membrane 46,410 Roofing, Metal Security, Video Surveillance 6,120 Page 64

65 Expenditures - Items Through 2046 Description Signage, Entry Sign Site Lights Replacement 25,800 Sliding Doors Allowance 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 Washers/Dryers Allowance 6,500 6,500 Wells, Pumps/Equipment Window Replacement Allowance 12,900 12, ,923 71, ,924 90, , ,823 5,023 88,923 77,233 24,423 Page 65

66 Expenditures - Items Through 2046 Description Asphalt Overlay 73,313 Deck Restoration Dune Crossover Repair/Restoration Electrical Panel Allowance Fitness Equipment Allowance 7,500 Flooring, Carpet, Exteriors 71,800 Flooring, Tile Furnishings/Finishes, Clubhouse 41,818 Gate Keypad Replacement 4,200 Gates, Aluminum 13,940 Gates, Motors 7,180 HVAC Split Units 6,900 Insurance Reserve Int. Renovations, Kitchen Int. Renovations, Restrooms Int. Renovations, Restrooms 3,399 Int. Renovations, Restrooms, Gym 17,259 Landscaping/Irrigation Light Fixtures/Sconces Paint/Waterproof Bldg. Exteriors 71,900 Perimeter Fencing, Aluminum 13,702 Perimeter Fencing, Wood 323 Playground Replacement 19,500 Plumbing Allowance 40,000 Pool Deck Brick Pavers 7,356 Pool Equipment Allowance 12,000 Pool Fencing & Gates 13,212 Pool Furniture 16,380 Pool Interior Resurfacing 22,300 Railings/Handrails Roofing, Flat/Membrane Roofing, Metal 483,935 Security, Video Surveillance 6,120 Page 66

67 Expenditures - Items Through 2046 Description Signage, Entry Sign 17,500 Site Lights Replacement Sliding Doors Allowance 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 Washers/Dryers Allowance 6,500 Wells, Pumps/Equipment 12,500 Window Replacement Allowance 12,900 12,900 5, ,154 5, , ,203 95,103 80,585 43,379 5,023 35,423 Page 67

68 Expenditures - Items Through 2046 Description Asphalt Overlay Deck Restoration 16,884 Dune Crossover Repair/Restoration 40,351 Electrical Panel Allowance Fitness Equipment Allowance 7,500 Flooring, Carpet, Exteriors 71,800 Flooring, Tile 18,172 Furnishings/Finishes, Clubhouse 41,818 Gate Keypad Replacement 4,200 Gates, Aluminum Gates, Motors 7,180 HVAC Split Units 6,900 Insurance Reserve Int. Renovations, Kitchen 15,792 Int. Renovations, Restrooms 10,346 Int. Renovations, Restrooms Int. Renovations, Restrooms, Gym Landscaping/Irrigation Light Fixtures/Sconces 42,000 Paint/Waterproof Bldg. Exteriors 71,900 71,900 Perimeter Fencing, Aluminum Perimeter Fencing, Wood 24, Playground Replacement 19,500 Plumbing Allowance 40,000 Pool Deck Brick Pavers Pool Equipment Allowance 12,000 Pool Fencing & Gates Pool Furniture 16,380 Pool Interior Resurfacing 22,300 Railings/Handrails 102,779 Roofing, Flat/Membrane 46,410 Roofing, Metal Security, Video Surveillance 6,120 Page 68

69 Expenditures - Items Through 2046 Description Signage, Entry Sign Site Lights Replacement Sliding Doors Allowance 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 5,023 Washers/Dryers Allowance 6,500 Wells, Pumps/Equipment Window Replacement Allowance 12,900 12,900 46,180 76,923 89, ,302 34, ,141 5,023 77, ,253 58,246 Page 69

70 Cash Flow - Chart. Page 70