Calusa Point Association

Transcription

1 Full Reserve Study Calusa Point Association Miami, FL REVISION Report #: For Period Beginning: January 1, 2016 Expires: December 31, 2016 Date Prepared: November 11, 2015

2 Hello, and welcome to your Reserve Study! W e don t want you to be surprised. This Report is designed to help you anticipate, and prepare for, the major common area expenses your association will face. Inside you will find: 1) The Reserve Component List (the Scope and Schedule of your Reserve projects) telling you what your association is Reserving for, what condition they are in now, and what they ll cost to replace. 2) An Evaluation of your current Reserve Fund Size and Strength (Percent Funded). This tells you your financial starting point, revealing your risk of deferred maintenance and special assessments. 3) A Recommended Multi-Year Reserve Funding Plan, answering the question What do we do now? Need more information? Visit our website at Association Reserves 11/11/2015

3 Table of Contents 3- Minute Executive Summary... i Reserve Study Summary... i Introduction, Objectives, and Methodology... 1 Which Physical Assets are Funded by Reserves?... 2 How do we establish Useful Life and Remaining Useful Life estimates?... 2 How do we establish Current Repair/Replacement Cost Estimates?... 2 How much Reserves are enough?... 3 How much should we contribute?... 4 What is our Recommended Funding Goal?... 4 Projected Expenses... 6 Expense Graph Figure Reserve Fund Status & Recommended Funding Plan... 7 Funding Plan Graph Figure Cash Flow Graph Figure % Funded Graph Figure Table Descriptions... 9 Reserve Component List Detail Table Contribution & Fund Breakdown Table Component Significance Table Year Reserve Plan Summary Table Year Reserve Plan Year by Year Detail Table Accuracy, Limitations, and Disclosures Terms and Definitions Component Details... Appendix Association Reserves 11/11/2015

4 3- Minute Executive Summary Association: Calusa Point Association #: Location: Miami, FL # of Units: 274 Report Period: January 1, 2016 through December 31, 2016 Findings/Recommendations as-of 1/1/2016: Projected Starting Reserve Balance:... $316,494 Current Fully Funded Reserve Balance:... $988,763 Average Reserve Deficit (Surplus) Per Unit:... $2,454 Recommended 2016 Monthly Full Funding Contributions:... $18,004 Alternate minimum contribs* to keep Reserves above $0:... $16,400 Recommended 2016 Special Assessment for Reserves:... $0 Most Recent Budgeted Reserve Contribution Rate:... $9,700 Economic Assumptions: Net Annual After Tax Interest Earnings Accruing to Reserves % Annual Inflation Rate % This is a Full Reserve Study (original, created from scratch ), and is based on our site inspection on June 26, It was prepared by a credentialed Reserve Specialist (RS). Because your Reserve Fund is just above 30% at 32% Funded, this means the association s special assessment & deferred maintenance risk is currently medium/high. The objective of your multi-year Funding Plan is to Fully Fund your Reserves, where associations enjoy a low risk of such Reserve cash flow problems. Based on this starting point, your anticipated future expenses, your historical Reserve contribution rate, and information provided by the Association Manager regarding current budget plans for 2016, our recommendation is to increase your Reserve contributions in 2016 to $18,003/month. Going forward, we recommend increasing this amount by 1% annually for the next 17 years, followed by annual increases of 2%. (continued on following page) Association Reserves i 11/11/2015

5 No assets appropriate for Reserve designation were excluded. *officially called Baseline Funding Association Reserves ii 11/11/2015

6 Table 1: Executive Summary Useful Rem. Current Life Useful Cost # Component (yrs) Life (yrs) Estimate Site and Grounds 2123 Asphalt - Seal/Repair 4 2 $39, Asphalt - Resurface 20 1 $399, Site Fencing: Metal - Replace 25 5 $159, Gazebo - Replace 20 0 $8, Mailboxes - Replace $33, Sign/Monument - Refurbish/Replace $12, Directional/Street Signs - Replace 20 0 $16, Site Pole Lights - Replace 20 0 $110, Landscaping - Refurbish (One-Time) N/A 1 $50, Landscaping - Refurbish (Recurring) 3 4 $15,000 Building Exteriors 2343 Building/Common Exteriors - Paint 7 5 $450, Common Windows & Doors - Replace 10 7 $2, Roofs (Clubhouse) - Replace $12, Roofs (Guardhouse) - Replace $3,500 M.E.P Barcode Reader - Replace 12 0 $12, Barrier Arm Operators - Replace 15 8 $12, HVAC (Guardhouse) - Replace 10 8 $2, Security Cameras - Upgrade/Replace 10 7 $7, Irrigation Pumps - Replace (2016) N/A 0 $12, Irrigation Pumps - Replace (2017) N/A 1 $12, Irrigation Pumps - Replace (2018) N/A 2 $12, Irrigation Pumps - Replace (2019) N/A 3 $12, Irrigation Pumps - Replace (2020) N/A 4 $12, Irrigation Pumps - Replace (Future) 5 10 $7, Golf Cart - Replace 10 0 $6,250 Interiors and Amenities 2750 Bathrooms - Remodel $12, Pool Deck Furniture - Replace 8 4 $7, Pool Deck - Seal/Repair 5 3 $14, Pool Fence - Replace 30 5 $5, Pool Deck Lighting - Replace 20 3 $22, Pool - Resurface 12 0 $10, Pool Equipment - Maintain/Replace 5 2 $2, Playground Equipment - Replace 25 0 $15, Tennis Courts - Re-coat 5 1 $9, Tennis Courts - Resurface 25 6 $28, Tennis Court Fencing - Replace 25 6 $10, Total Funded Components Note 1: a Useful Life of N/A means a one-time expense, not expected to repeat. Association Reserves iii 11/11/2015

7 Note 2: Yellow highlighted line items are expected to require attention in the initial year, green highlighted items are expected to occur within the first five years. Association Reserves iv 11/11/2015

8 Assoc Introduction A Reserve Study is the art and science of anticipating, and preparing for, an association s major common area repair and replacement expenses. Partially art, because in this field we are making projections about the future. Partially science, because our work is a combination of research and welldefined computations, following consistent National Reserve Study Standard principles. The foundation of this and every Reserve Study is your Reserve Component List (what you are reserving for). This is because the Reserve Component List defines the scope and schedule of all your anticipated upcoming Reserve projects. Based on that List and your starting balance, we calculate the association s Reserve Fund Strength (reported in terms of Percent Funded ). Then we compute a Reserve Funding Plan to provide for the Reserve needs of the association. These form the three results of your Reserve Study. Reserve contributions are not for the future. Reserve contributions are designed to offset the ongoing, daily deterioration of your Reserve assets. Done well, a stable, budgeted Reserve Funding Plan will collect sufficient funds from the owners who enjoyed the use of those assets, so the association is financially prepared for the irregular expenditures scattered through future years when those projects eventually require replacement. Methodology For this Full Reserve Study, we started with a review of your Governing Documents, recent Reserve expenditures, an evaluation of how expenditures are handled (ongoing maintenance vs Reserves), and research into any well-established association precedents. We performed an on-site inspection to quantify and evaluate your common areas, creating your Reserve Component List from scratch. Association Reserves 1 11/11/2015

9 Assoc Which Physical Assets are Funded by Reserves? There is a national-standard four-part test to determine which expenses should appear in your Reserve Component List. First, it must be a common area maintenance responsibility. Second, the component must have a limited life. Third, the remaining life must be predictable (or it by definition is a surprise which cannot be accurately anticipated). Fourth, the component must be above a minimum threshold cost (often between.5% and 1% of an association s total budget). This limits Reserve Components to major, predictable expenses. Within this framework, it is inappropriate to include lifetime components, unpredictable expenses (such as damage due to fire, flood, or earthquake), and expenses more appropriately handled from the Operational Budget or as an insured loss. How do we establish Useful Life and Remaining Useful Life estimates? 1) Visual Inspection (observed wear and age) 2) Association Reserves database of experience 3) Client History (install dates & previous life cycle information) 4) Vendor Evaluation and Recommendation How do we establish Current Repair/Replacement Cost Estimates? In this order 1) Actual client cost history, or current proposals 2) Comparison to Association Reserves database of work done at similar associations 3) Vendor Recommendations 4) Reliable National Industry cost estimating guidebooks Association Reserves 2 11/11/2015

10 Assoc How much Reserves are enough? Reserve adequacy is not measured in cash terms. Reserve adequacy is found when the amount of current Reserve cash is compared to Reserve component deterioration (the needs of the association). Having enough means the association can execute its projects in a timely manner with existing Reserve funds. Not having enough typically creates deferred maintenance or special assessments. Adequacy is measured in a two-step process: 1) Calculate the value of deterioration at the association (called Fully Funded Balance, or FFB). 2) Compare that to the Reserve Fund Balance, and express as a percentage. Each year, the value of deterioration at the association changes. When there is more deterioration (as components approach the time they need to be replaced), there should be more cash to offset that deterioration and prepare for the expenditure. Conversely, the value of deterioration shrinks after projects are accomplished. The value of deterioration (the FFB) changes each year, and is a moving but predictable target. There is a high risk of special assessments and deferred maintenance when the Percent Funded is weak, below 30%. Approximately 30% of all associations are in this high risk range. While the 100% point is Ideal (indicating Reserve cash is equal to the value of deterioration), a Reserve Fund in the 70% -130% range is considered strong (low risk of special assessment). Measuring your Reserves by Percent Funded tells how well prepared your association is for upcoming Reserve expenses. New buyers should be very aware of this important disclosure! Association Reserves 3 11/11/2015

11 Assoc How much should we contribute? According to National Reserve Study Standards, there are four Funding Principles to balance in developing your Reserve Funding Plan. Our first objective is to design a plan that provides you with sufficient cash to perform your Reserve projects on time. Second, a stable contribution is desirable because it keeps these naturally irregular expenses from unsettling the budget. Reserve contributions that are evenly distributed over current and future owners enable each owner to pay their fair share of the association s Reserve expenses over the years. And finally, we develop a plan that is fiscally responsible and safe for Boardmembers to recommend to their association. Remember, it is the Board s job to provide for the ongoing care of the common areas. Boardmembers invite liability exposure when Reserve contributions are inadequate to offset ongoing common area deterioration. What is our Recommended Funding Goal? Maintaining the Reserve Fund at a level equal to the value of deterioration is called Full Funding (100% Funded). As each asset ages and becomes used up, the Reserve Fund grows proportionally. This is simple, responsible, and our recommendation. Evidence shows that associations in the % range enjoy a low risk of special assessments or deferred maintenance. Allowing the Reserves to fall close to zero, but not below zero, is called Baseline Funding. Doing so allows the Reserve Fund to drop into the 0-30% range, where there is a high risk of special assessments & deferred maintenance. Since Baseline Funding still provides for the timely execution of all Reserve projects, and only the margin of safety is different, Baseline Funding contributions average only 10% - 15% less than Full Funding contributions. Threshold Funding is the title of all other Cash or Percent Funded objectives between Baseline Funding and Full Funding. Association Reserves 4 11/11/2015

12 Assoc Site Inspection Notes During our site visit on June 26, 2015, we started the site inspection beginning with the roads and exterior common areas. We visually inspected all of the buildings, and were able to see all relevant components. We would like to thank the Board of Directors and Ms. Natalie Cedeno, CAM of Florida Property Management Solutions for their input and assistance with this project. Please refer to the for more information and details regarding each component. Association Reserves 5 11/11/2015

13 Assoc Projected Expenses While this Reserve Study looks forward 30 years, we have no expectation that all these expenses will all take place as anticipated. This Reserve Study needs to be updated annually because we expect the timing of these expenses to shift and the size of these expenses to change. We do feel more certain of the timing and cost of near-term expenses than expenses many years away. Your first five years of projected Reserve expenses total $825,520. Adding the next five years, your first ten years of projected Reserve expenses are $1,713,148. Please be aware of your near-term expenses, which we are able to project more accurately than the more distant projections. The figure below summarizes the projected future expenses at your association as defined by your Reserve Component List. A summary of these expenses are shown in Table 5, while details of the projects that make up these expenses are shown in Table 6. Annual Reserve Expenses $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Years Figure 1 Association Reserves 6 11/11/2015

14 Assoc Reserve Fund Status The starting point for our financial analysis is your Reserve Fund balance, projected to be $316,494 as-of the start of your Fiscal Year on January 1, This is based on your actual balance on July 28, 2015 of $267,994 and anticipated Reserve contributions (August-December) and expenses (none confirmed) projected through the end of your Fiscal Year. As of January 1, 2016, your Fully Funded Balance is computed to be $988,763 (see Table 3). This figure represents the deteriorated value of your common area components. Comparing your Reserve Balance to your Fully Funded Balance indicates your Reserves are 32% Funded. Across the country, approx 20% of associations in this range experience special assessments or deferred maintenance. Recommended Funding Plan Based on your current Percent Funded and your near-term and long-term Reserve needs, we are recommending budgeted contributions of $18,004/month this Fiscal Year along. The overall 30-yr plan, in perspective, is shown below. This same information is shown numerically in both Table 5 and Table 6. Annual Reserve Funding Recommended Alternate (Minimum) Current Budget $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Years Figure 2 Association Reserves 7 11/11/2015

15 Assoc The following chart shows your Reserve balance under our recommended Full Funding Plan, an alternate Baseline Funding Plan, and at your current budgeted contribution rate, compared to your always-changing Fully Funded Balance target. $2,500, Yr Cash Flow Target Fully Funded Balance Recommended Funding Plan Alternate (Minimum) Current Budget $2,000,000 $1,500,000 $1,000,000 $500,000 $ Years Figure 3 This figure shows this same information, plotted on a Percent Funded scale. 120% Percent Funded Recommended Funding Plan Alternate (Minimum) Funding Plan Current Budget 100% 80% 60% 40% 20% 0% Years Figure 4 Association Reserves 8 11/11/2015

16 Assoc Table Descriptions The tabular information in this Report is broken down into six tables. Table 1 is a summary of your Reserve Components (your Reserve Component List), the information found in Table 2. Table 2 is your Reserve Component List, which forms the foundation of this Reserve Study. This table represents the information from which all other tables are derived. Table 3 shows the calculation of your Fully Funded Balance, the measure of your current Reserve component deterioration. For each component, the Fully Funded Balance is the fraction of life used up multiplied by its estimated Current Replacement Cost. Table 4 shows the significance of each component to Reserve needs of the association, helping you see which components have more (or less) influence than others on your total Reserve contribution rate. The deterioration cost/yr of each component is calculated by dividing Current Replacement Cost by Useful Life, then that component s percentage of the total is displayed. Table 5: This table provides a one-page 30-year summary of the cash flowing into and out of the Reserve Fund, with a display of the Fully Funded Balance, Percent Funded, and special assessment risk for each year. Table 6: This table shows the cash flow detail for the next 30 years. This table makes it possible to see which components are projected to require repair or replacement each year, and the size of those individual expenses. Association Reserves 9 11/11/2015

17 Table 2: Reserve Component List Detail Rem. Useful Useful [ --- Current Cost Estimate --- ] # Component Quantity Life Life Best Case Worst Case Site and Grounds 2123 Asphalt - Seal/Repair Approx 33,300 GSY 4 2 $36,600 $43, Asphalt - Resurface Approx 33,300 GSY 20 1 $366,000 $433, Site Fencing: Metal - Replace Approx 3,540 LF 25 5 $142,000 $177, Gazebo - Replace (1) Gazebo 20 0 $6,500 $9, Mailboxes - Replace (21) Total Kiosks $29,400 $37, Sign/Monument - Refurbish/Replace (1) Sign $10,000 $15, Directional/Street Signs - Replace Approx (42) Total Signs 20 0 $12,600 $21, Site Pole Lights - Replace (30) Lights 20 0 $90,000 $130, Landscaping - Refurbish (One-Time) Numerous Areas N/A 1 $40,000 $60, Landscaping - Refurbish (Recurring) Numerous Areas 3 4 $10,000 $20,000 Building Exteriors 2343 Building/Common Exteriors - Paint (274) Units 7 5 $400,000 $500, Common Windows & Doors - Replace Clubhouse, Guardhouse 10 7 $2,000 $3, Roofs (Clubhouse) - Replace Approx 2,035 GSF $11,500 $13, Roofs (Guardhouse) - Replace Approx 235 GSF $3,000 $4,000 M.E.P Barcode Reader - Replace (1) Reader 12 0 $11,000 $13, Barrier Arm Operators - Replace (3) Operators 15 8 $10,500 $13, HVAC (Guardhouse) - Replace (1) Small System 10 8 $2,500 $3, Security Cameras - Upgrade/Replace (11) Cameras 10 7 $6,000 $8, Irrigation Pumps - Replace (2016) (28) Total Pumps N/A 0 $10,000 $14, Irrigation Pumps - Replace (2017) (28) Total Pumps N/A 1 $10,000 $14, Irrigation Pumps - Replace (2018) (28) Total Pumps N/A 2 $10,000 $14, Irrigation Pumps - Replace (2019) (28) Total Pumps N/A 3 $10,000 $14, Irrigation Pumps - Replace (2020) (28) Total Pumps N/A 4 $10,000 $14, Irrigation Pumps - Replace (Future) (28) Total Pumps 5 10 $5,000 $10, Golf Cart - Replace (1) Cart 10 0 $5,000 $7,500 Interiors and Amenities 2750 Bathrooms - Remodel (2) Bathrooms $10,000 $15, Pool Deck Furniture - Replace (50) Pieces 8 4 $6,000 $8, Pool Deck - Seal/Repair Approx 7,160 GSF 5 3 $12,900 $15, Pool Fence - Replace Approx 315 LF 30 5 $4,725 $6, Pool Deck Lighting - Replace (5) Lights 20 3 $20,000 $25, Pool - Resurface (1) Pool 12 0 $9,000 $12, Pool Equipment - Maintain/Replace (2) Filters, (1) Pump 5 2 $1,500 $2, Playground Equipment - Replace (2) Pieces 25 0 $12,500 $18, Tennis Courts - Re-coat (2) Courts 5 1 $8,500 $11, Tennis Courts - Resurface (2) Courts 25 6 $24,000 $32, Tennis Court Fencing - Replace Approx 450 LF 25 6 $9,000 $11, Total Funded Components Association Reserves 10 11/11/2015

18 Table 3: Fully Funded Balance Current Fully Cost Effective Useful Funded # Component Estimate X Age / Life = Balance Site and Grounds 2123 Asphalt - Seal/Repair $39,950 X 2 / 4 = $19, Asphalt - Resurface $399,500 X 19 / 20 = $379, Site Fencing: Metal - Replace $159,500 X 20 / 25 = $127, Gazebo - Replace $8,000 X 20 / 20 = $8, Mailboxes - Replace $33,600 X 10 / 20 = $16, Sign/Monument - Refurbish/Replace $12,500 X 1 / 15 = $ Directional/Street Signs - Replace $16,800 X 20 / 20 = $16, Site Pole Lights - Replace $110,000 X 20 / 20 = $110, Landscaping - Refurbish (One-Time) $50,000 X 0 / 0 = $25, Landscaping - Refurbish (Recurring) $15,000 X 0 / 3 = $0 Building Exteriors 2343 Building/Common Exteriors - Paint $450,000 X 2 / 7 = $128, Common Windows & Doors - Replace $2,500 X 3 / 10 = $ Roofs (Clubhouse) - Replace $12,500 X 2 / 25 = $1, Roofs (Guardhouse) - Replace $3,500 X 2 / 25 = $280 M.E.P Barcode Reader - Replace $12,200 X 12 / 12 = $12, Barrier Arm Operators - Replace $12,000 X 7 / 15 = $5, HVAC (Guardhouse) - Replace $2,750 X 2 / 10 = $ Security Cameras - Upgrade/Replace $7,250 X 3 / 10 = $2, Irrigation Pumps - Replace (2016) $12,000 X 0 / 0 = $12, Irrigation Pumps - Replace (2017) $12,000 X 0 / 0 = $6, Irrigation Pumps - Replace (2018) $12,000 X 0 / 0 = $4, Irrigation Pumps - Replace (2019) $12,000 X 0 / 0 = $3, Irrigation Pumps - Replace (2020) $12,000 X 0 / 0 = $2, Irrigation Pumps - Replace (Future) $7,500 X 0 / 5 = $ Golf Cart - Replace $6,250 X 10 / 10 = $6,250 Interiors and Amenities 2750 Bathrooms - Remodel $12,500 X 4 / 20 = $2, Pool Deck Furniture - Replace $7,000 X 4 / 8 = $3, Pool Deck - Seal/Repair $14,350 X 2 / 5 = $5, Pool Fence - Replace $5,513 X 25 / 30 = $4, Pool Deck Lighting - Replace $22,500 X 17 / 20 = $19, Pool - Resurface $10,500 X 12 / 12 = $10, Pool Equipment - Maintain/Replace $2,000 X 3 / 5 = $1, Playground Equipment - Replace $15,500 X 25 / 25 = $15, Tennis Courts - Re-coat $9,750 X 4 / 5 = $7, Tennis Courts - Resurface $28,000 X 19 / 25 = $21, Tennis Court Fencing - Replace $10,150 X 19 / 25 = $7,714 $988,763 Association Reserves 11 11/11/2015

19 Table 4: Component Significance Current Useful Cost Deterioration Deterioration # Component Life Estimate Cost/yr Significance Site and Grounds 2123 Asphalt - Seal/Repair 4 $39,950 $9, % 2125 Asphalt - Resurface 20 $399,500 $19, % 2137 Site Fencing: Metal - Replace 25 $159,500 $6, % 2149 Gazebo - Replace 20 $8,000 $ % 2166 Mailboxes - Replace 20 $33,600 $1, % 2169 Sign/Monument - Refurbish/Replace 15 $12,500 $ % 2170 Directional/Street Signs - Replace 20 $16,800 $ % 2175 Site Pole Lights - Replace 20 $110,000 $5, % 2185 Landscaping - Refurbish (One-Time) N/A $50,000 $0 0.0% 2186 Landscaping - Refurbish (Recurring) 3 $15,000 $5, % Building Exteriors 2343 Building/Common Exteriors - Paint 7 $450,000 $64, % 2367 Common Windows & Doors - Replace 10 $2,500 $ % 2383 Roofs (Clubhouse) - Replace 25 $12,500 $ % 2383 Roofs (Guardhouse) - Replace 25 $3,500 $ % M.E.P Barcode Reader - Replace 12 $12,200 $1, % 2511 Barrier Arm Operators - Replace 15 $12,000 $ % 2522 HVAC (Guardhouse) - Replace 10 $2,750 $ % 2543 Security Cameras - Upgrade/Replace 10 $7,250 $ % 2585 Irrigation Pumps - Replace (2016) N/A $12,000 $0 0.0% 2585 Irrigation Pumps - Replace (2017) N/A $12,000 $0 0.0% 2585 Irrigation Pumps - Replace (2018) N/A $12,000 $0 0.0% 2585 Irrigation Pumps - Replace (2019) N/A $12,000 $0 0.0% 2585 Irrigation Pumps - Replace (2020) N/A $12,000 $0 0.0% 2585 Irrigation Pumps - Replace (Future) 5 $7,500 $1, % 2599 Golf Cart - Replace 10 $6,250 $ % Interiors and Amenities 2750 Bathrooms - Remodel 20 $12,500 $ % 2763 Pool Deck Furniture - Replace 8 $7,000 $ % 2767 Pool Deck - Seal/Repair 5 $14,350 $2, % 2771 Pool Fence - Replace 30 $5,513 $ % 2772 Pool Deck Lighting - Replace 20 $22,500 $1, % 2773 Pool - Resurface 12 $10,500 $ % 2787 Pool Equipment - Maintain/Replace 5 $2,000 $ % 2801 Playground Equipment - Replace 25 $15,500 $ % 2809 Tennis Courts - Re-coat 5 $9,750 $1, % 2811 Tennis Courts - Resurface 25 $28,000 $1, % 2813 Tennis Court Fencing - Replace 25 $10,150 $ % 36 Total Funded Components $131, % Association Reserves 12 11/11/2015

20 Table 5: 30-Year Reserve Plan Summary Fiscal Year Start: 01/01/16 Interest: 1.0% Inflation: 3.0% Reserve Fund Strength Calculations (All values as of Fiscal Year Start Date) Projected Reserve Balance Changes Starting Fully Special Loans or Reserve Funded Percent Assmt Reserve Special Interest Reserve Year Balance Balance Funded Risk Contribs. Assmts Income Expenses 2016 $316,494 $988, % Med $216,044 $0 $3,304 $191, $344,592 $986, % Med $218,204 $0 $2,120 $485, $79,528 $663, % High $220,386 $0 $1,618 $57, $244,297 $775, % Med $222,590 $0 $3,304 $53, $416,812 $897, % Med $224,816 $0 $5,124 $38, $608,485 $1,035, % Med $227,064 $0 $3,672 $712, $126,253 $489, % High $229,335 $0 $1,893 $104, $252,584 $558, % Med $231,628 $0 $3,536 $32, $454,849 $708, % Med $233,944 $0 $5,559 $36, $657,490 $863, % Low $236,284 $0 $7,792 $ $901,565 $1,066, % Low $238,647 $0 $9,565 $137, $1,012,295 $1,139, % Low $241,033 $0 $11,312 $13, $1,251,144 $1,347, % Low $243,444 $0 $10,342 $686, $818,141 $873, % Low $245,878 $0 $9,238 $43, $1,030,155 $1,054, % Low $248,337 $0 $11,198 $79, $1,210,354 $1,210, % Low $250,820 $0 $13,360 $11, $1,462,850 $1,445, % Low $253,328 $0 $15,668 $59, $1,672,071 $1,645, % Low $255,862 $0 $17,985 $19, $1,926,497 $1,899, % Low $260,979 $0 $20,177 $97, $2,110,528 $2,087, % Low $266,198 $0 $18,444 $815, $1,579,790 $1,547, % Low $271,522 $0 $15,823 $280, $1,586,195 $1,550, % Low $276,953 $0 $13,502 $761, $1,115,324 $1,064, % Low $282,492 $0 $12,075 $109, $1,300,769 $1,244, % Low $288,142 $0 $13,872 $127, $1,474,796 $1,417, % Low $293,905 $0 $16,060 $46, $1,738,616 $1,688, % Low $299,783 $0 $18,572 $79, $1,977,408 $1,941, % Low $305,778 $0 $15,988 $1,077, $1,221,525 $1,182, % Low $311,894 $0 $13,707 $26, $1,521,026 $1,492, % Low $318,132 $0 $16,429 $89, $1,766,129 $1,755, % Low $324,494 $0 $19,224 $29,457 Association Reserves 13 11/11/2015

21 Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) Fiscal Year Starting Reserve Balance $316,494 $344,592 $79,528 $244,297 $416,812 Annual Reserve Contribution $216,044 $218,204 $220,386 $222,590 $224,816 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $3,304 $2,120 $1,618 $3,304 $5,124 Total Income $535,842 $564,916 $301,533 $470,192 $646,752 # Component Site and Grounds 2123 Asphalt - Seal/Repair $0 $0 $42,383 $0 $ Asphalt - Resurface $0 $411,485 $0 $0 $ Site Fencing: Metal - Replace $0 $0 $0 $0 $ Gazebo - Replace $8,000 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Sign/Monument - Refurbish/Replace $0 $0 $0 $0 $ Directional/Street Signs - Replace $16,800 $0 $0 $0 $ Site Pole Lights - Replace $110,000 $0 $0 $0 $ Landscaping - Refurbish (One-Time) $0 $51,500 $0 $0 $ Landscaping - Refurbish (Recurring) $0 $0 $0 $0 $16,883 Building Exteriors 2343 Building/Common Exteriors - Paint $0 $0 $0 $0 $ Common Windows & Doors - Replace $0 $0 $0 $0 $ Roofs (Clubhouse) - Replace $0 $0 $0 $0 $ Roofs (Guardhouse) - Replace $0 $0 $0 $0 $0 M.E.P Barcode Reader - Replace $12,200 $0 $0 $0 $ Barrier Arm Operators - Replace $0 $0 $0 $0 $ HVAC (Guardhouse) - Replace $0 $0 $0 $0 $ Security Cameras - Upgrade/Replace $0 $0 $0 $0 $ Irrigation Pumps - Replace (2016) $12,000 $0 $0 $0 $ Irrigation Pumps - Replace (2017) $0 $12,360 $0 $0 $ Irrigation Pumps - Replace (2018) $0 $0 $12,731 $0 $ Irrigation Pumps - Replace (2019) $0 $0 $0 $13,113 $ Irrigation Pumps - Replace (2020) $0 $0 $0 $0 $13, Irrigation Pumps - Replace (Future) $0 $0 $0 $0 $ Golf Cart - Replace $6,250 $0 $0 $0 $0 Interiors and Amenities 2750 Bathrooms - Remodel $0 $0 $0 $0 $ Pool Deck Furniture - Replace $0 $0 $0 $0 $7, Pool Deck - Seal/Repair $0 $0 $0 $15,681 $ Pool Fence - Replace $0 $0 $0 $0 $ Pool Deck Lighting - Replace $0 $0 $0 $24,586 $ Pool - Resurface $10,500 $0 $0 $0 $ Pool Equipment - Maintain/Replace $0 $0 $2,122 $0 $0 Association Reserves 14 11/11/2015

22 Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) Fiscal Year Playground Equipment - Replace $15,500 $0 $0 $0 $ Tennis Courts - Re-coat $0 $10,043 $0 $0 $ Tennis Courts - Resurface $0 $0 $0 $0 $ Tennis Court Fencing - Replace $0 $0 $0 $0 $0 Total Expenses $191,250 $485,388 $57,236 $53,380 $38,267 Ending Reserve Balance: $344,592 $79,528 $244,297 $416,812 $608,485 Association Reserves 15 11/11/2015

23 Table 6: 30-Year Income/Expense Detail (yrs 5 through 9) Fiscal Year Starting Reserve Balance $608,485 $126,253 $252,584 $454,849 $657,490 Annual Reserve Contribution $227,064 $229,335 $231,628 $233,944 $236,284 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $3,672 $1,893 $3,536 $5,559 $7,792 Total Income $839,221 $357,482 $487,748 $694,353 $901,565 # Component Site and Grounds 2123 Asphalt - Seal/Repair $0 $47,702 $0 $0 $ Asphalt - Resurface $0 $0 $0 $0 $ Site Fencing: Metal - Replace $184,904 $0 $0 $0 $ Gazebo - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Sign/Monument - Refurbish/Replace $0 $0 $0 $0 $ Directional/Street Signs - Replace $0 $0 $0 $0 $ Site Pole Lights - Replace $0 $0 $0 $0 $ Landscaping - Refurbish (One-Time) $0 $0 $0 $0 $ Landscaping - Refurbish (Recurring) $0 $0 $18,448 $0 $0 Building Exteriors 2343 Building/Common Exteriors - Paint $521,673 $0 $0 $0 $ Common Windows & Doors - Replace $0 $0 $3,075 $0 $ Roofs (Clubhouse) - Replace $0 $0 $0 $0 $ Roofs (Guardhouse) - Replace $0 $0 $0 $0 $0 M.E.P Barcode Reader - Replace $0 $0 $0 $0 $ Barrier Arm Operators - Replace $0 $0 $0 $15,201 $ HVAC (Guardhouse) - Replace $0 $0 $0 $3,484 $ Security Cameras - Upgrade/Replace $0 $0 $8,917 $0 $ Irrigation Pumps - Replace (2016) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2017) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2018) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2019) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2020) $0 $0 $0 $0 $ Irrigation Pumps - Replace (Future) $0 $0 $0 $0 $ Golf Cart - Replace $0 $0 $0 $0 $0 Interiors and Amenities 2750 Bathrooms - Remodel $0 $0 $0 $0 $ Pool Deck Furniture - Replace $0 $0 $0 $0 $ Pool Deck - Seal/Repair $0 $0 $0 $18,178 $ Pool Fence - Replace $6,390 $0 $0 $0 $ Pool Deck Lighting - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $0 $0 $ Pool Equipment - Maintain/Replace $0 $0 $2,460 $0 $0 Association Reserves 16 11/11/2015

24 Table 6: 30-Year Income/Expense Detail (yrs 5 through 9) Fiscal Year Playground Equipment - Replace $0 $0 $0 $0 $ Tennis Courts - Re-coat $0 $11,642 $0 $0 $ Tennis Courts - Resurface $0 $33,433 $0 $0 $ Tennis Court Fencing - Replace $0 $12,120 $0 $0 $0 Total Expenses $712,968 $104,897 $32,899 $36,863 $0 Ending Reserve Balance: $126,253 $252,584 $454,849 $657,490 $901,565 Association Reserves 17 11/11/2015

25 Table 6: 30-Year Income/Expense Detail (yrs 10 through 14) Fiscal Year Starting Reserve Balance $901,565 $1,012,295 $1,251,144 $818,141 $1,030,155 Annual Reserve Contribution $238,647 $241,033 $243,444 $245,878 $248,337 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $9,565 $11,312 $10,342 $9,238 $11,198 Total Income $1,149,777 $1,264,640 $1,504,930 $1,073,256 $1,289,689 # Component Site and Grounds 2123 Asphalt - Seal/Repair $53,689 $0 $0 $0 $60, Asphalt - Resurface $0 $0 $0 $0 $ Site Fencing: Metal - Replace $0 $0 $0 $0 $ Gazebo - Replace $0 $0 $0 $0 $ Mailboxes - Replace $45,156 $0 $0 $0 $ Sign/Monument - Refurbish/Replace $0 $0 $0 $0 $18, Directional/Street Signs - Replace $0 $0 $0 $0 $ Site Pole Lights - Replace $0 $0 $0 $0 $ Landscaping - Refurbish (One-Time) $0 $0 $0 $0 $ Landscaping - Refurbish (Recurring) $20,159 $0 $0 $22,028 $0 Building Exteriors 2343 Building/Common Exteriors - Paint $0 $0 $641,592 $0 $ Common Windows & Doors - Replace $0 $0 $0 $0 $ Roofs (Clubhouse) - Replace $0 $0 $0 $0 $ Roofs (Guardhouse) - Replace $0 $0 $0 $0 $0 M.E.P Barcode Reader - Replace $0 $0 $17,394 $0 $ Barrier Arm Operators - Replace $0 $0 $0 $0 $ HVAC (Guardhouse) - Replace $0 $0 $0 $0 $ Security Cameras - Upgrade/Replace $0 $0 $0 $0 $ Irrigation Pumps - Replace (2016) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2017) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2018) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2019) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2020) $0 $0 $0 $0 $ Irrigation Pumps - Replace (Future) $10,079 $0 $0 $0 $ Golf Cart - Replace $8,399 $0 $0 $0 $0 Interiors and Amenities 2750 Bathrooms - Remodel $0 $0 $0 $0 $ Pool Deck Furniture - Replace $0 $0 $9,980 $0 $ Pool Deck - Seal/Repair $0 $0 $0 $21,073 $ Pool Fence - Replace $0 $0 $0 $0 $ Pool Deck Lighting - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $14,970 $0 $ Pool Equipment - Maintain/Replace $0 $0 $2,852 $0 $0 Association Reserves 18 11/11/2015

26 Table 6: 30-Year Income/Expense Detail (yrs 10 through 14) Fiscal Year Playground Equipment - Replace $0 $0 $0 $0 $ Tennis Courts - Re-coat $0 $13,496 $0 $0 $ Tennis Courts - Resurface $0 $0 $0 $0 $ Tennis Court Fencing - Replace $0 $0 $0 $0 $0 Total Expenses $137,483 $13,496 $686,789 $43,101 $79,335 Ending Reserve Balance: $1,012,295 $1,251,144 $818,141 $1,030,155 $1,210,354 Association Reserves 19 11/11/2015

27 Table 6: 30-Year Income/Expense Detail (yrs 15 through 19) Fiscal Year Starting Reserve Balance $1,210,354 $1,462,850 $1,672,071 $1,926,497 $2,110,528 Annual Reserve Contribution $250,820 $253,328 $255,862 $260,979 $266,198 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $13,360 $15,668 $17,985 $20,177 $18,444 Total Income $1,474,535 $1,731,846 $1,945,918 $2,207,652 $2,395,170 # Component Site and Grounds 2123 Asphalt - Seal/Repair $0 $0 $0 $68,012 $ Asphalt - Resurface $0 $0 $0 $0 $ Site Fencing: Metal - Replace $0 $0 $0 $0 $ Gazebo - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Sign/Monument - Refurbish/Replace $0 $0 $0 $0 $ Directional/Street Signs - Replace $0 $0 $0 $0 $ Site Pole Lights - Replace $0 $0 $0 $0 $ Landscaping - Refurbish (One-Time) $0 $0 $0 $0 $ Landscaping - Refurbish (Recurring) $0 $24,071 $0 $0 $26,303 Building Exteriors 2343 Building/Common Exteriors - Paint $0 $0 $0 $0 $789, Common Windows & Doors - Replace $0 $0 $4,132 $0 $ Roofs (Clubhouse) - Replace $0 $0 $0 $0 $ Roofs (Guardhouse) - Replace $0 $0 $0 $0 $0 M.E.P Barcode Reader - Replace $0 $0 $0 $0 $ Barrier Arm Operators - Replace $0 $0 $0 $0 $ HVAC (Guardhouse) - Replace $0 $0 $0 $4,682 $ Security Cameras - Upgrade/Replace $0 $0 $11,983 $0 $ Irrigation Pumps - Replace (2016) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2017) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2018) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2019) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2020) $0 $0 $0 $0 $ Irrigation Pumps - Replace (Future) $11,685 $0 $0 $0 $ Golf Cart - Replace $0 $0 $0 $0 $0 Interiors and Amenities 2750 Bathrooms - Remodel $0 $20,059 $0 $0 $ Pool Deck Furniture - Replace $0 $0 $0 $0 $ Pool Deck - Seal/Repair $0 $0 $0 $24,430 $ Pool Fence - Replace $0 $0 $0 $0 $ Pool Deck Lighting - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $0 $0 $ Pool Equipment - Maintain/Replace $0 $0 $3,306 $0 $0 Association Reserves 20 11/11/2015

28 Table 6: 30-Year Income/Expense Detail (yrs 15 through 19) Fiscal Year Playground Equipment - Replace $0 $0 $0 $0 $ Tennis Courts - Re-coat $0 $15,646 $0 $0 $ Tennis Courts - Resurface $0 $0 $0 $0 $ Tennis Court Fencing - Replace $0 $0 $0 $0 $0 Total Expenses $11,685 $59,775 $19,421 $97,124 $815,380 Ending Reserve Balance: $1,462,850 $1,672,071 $1,926,497 $2,110,528 $1,579,790 Association Reserves 21 11/11/2015

29 Table 6: 30-Year Income/Expense Detail (yrs 20 through 24) Fiscal Year Starting Reserve Balance $1,579,790 $1,586,195 $1,115,324 $1,300,769 $1,474,796 Annual Reserve Contribution $271,522 $276,953 $282,492 $288,142 $293,905 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $15,823 $13,502 $12,075 $13,872 $16,060 Total Income $1,867,136 $1,876,650 $1,409,892 $1,602,783 $1,784,761 # Component Site and Grounds 2123 Asphalt - Seal/Repair $0 $0 $76,548 $0 $ Asphalt - Resurface $0 $743,188 $0 $0 $ Site Fencing: Metal - Replace $0 $0 $0 $0 $ Gazebo - Replace $14,449 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Sign/Monument - Refurbish/Replace $0 $0 $0 $0 $ Directional/Street Signs - Replace $30,343 $0 $0 $0 $ Site Pole Lights - Replace $198,672 $0 $0 $0 $ Landscaping - Refurbish (One-Time) $0 $0 $0 $0 $ Landscaping - Refurbish (Recurring) $0 $0 $28,742 $0 $0 Building Exteriors 2343 Building/Common Exteriors - Paint $0 $0 $0 $0 $ Common Windows & Doors - Replace $0 $0 $0 $0 $ Roofs (Clubhouse) - Replace $0 $0 $0 $24,670 $ Roofs (Guardhouse) - Replace $0 $0 $0 $6,908 $0 M.E.P Barcode Reader - Replace $0 $0 $0 $0 $24, Barrier Arm Operators - Replace $0 $0 $0 $23,683 $ HVAC (Guardhouse) - Replace $0 $0 $0 $0 $ Security Cameras - Upgrade/Replace $0 $0 $0 $0 $ Irrigation Pumps - Replace (2016) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2017) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2018) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2019) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2020) $0 $0 $0 $0 $ Irrigation Pumps - Replace (Future) $13,546 $0 $0 $0 $ Golf Cart - Replace $11,288 $0 $0 $0 $0 Interiors and Amenities 2750 Bathrooms - Remodel $0 $0 $0 $0 $ Pool Deck Furniture - Replace $12,643 $0 $0 $0 $ Pool Deck - Seal/Repair $0 $0 $0 $28,321 $ Pool Fence - Replace $0 $0 $0 $0 $ Pool Deck Lighting - Replace $0 $0 $0 $44,406 $ Pool - Resurface $0 $0 $0 $0 $21, Pool Equipment - Maintain/Replace $0 $0 $3,832 $0 $0 Association Reserves 22 11/11/2015

30 Table 6: 30-Year Income/Expense Detail (yrs 20 through 24) Fiscal Year Playground Equipment - Replace $0 $0 $0 $0 $ Tennis Courts - Re-coat $0 $18,138 $0 $0 $ Tennis Courts - Resurface $0 $0 $0 $0 $ Tennis Court Fencing - Replace $0 $0 $0 $0 $0 Total Expenses $280,941 $761,326 $109,122 $127,987 $46,144 Ending Reserve Balance: $1,586,195 $1,115,324 $1,300,769 $1,474,796 $1,738,616 Association Reserves 23 11/11/2015

31 Table 6: 30-Year Income/Expense Detail (yrs 25 through 29) Fiscal Year Starting Reserve Balance $1,738,616 $1,977,408 $1,221,525 $1,521,026 $1,766,129 Annual Reserve Contribution $299,783 $305,778 $311,894 $318,132 $324,494 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $18,572 $15,988 $13,707 $16,429 $19,224 Total Income $2,056,971 $2,299,174 $1,547,126 $1,855,587 $2,109,847 # Component Site and Grounds 2123 Asphalt - Seal/Repair $0 $86,156 $0 $0 $ Asphalt - Resurface $0 $0 $0 $0 $ Site Fencing: Metal - Replace $0 $0 $0 $0 $ Gazebo - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Sign/Monument - Refurbish/Replace $0 $0 $0 $0 $29, Directional/Street Signs - Replace $0 $0 $0 $0 $ Site Pole Lights - Replace $0 $0 $0 $0 $ Landscaping - Refurbish (One-Time) $0 $0 $0 $0 $ Landscaping - Refurbish (Recurring) $31,407 $0 $0 $34,319 $0 Building Exteriors 2343 Building/Common Exteriors - Paint $0 $970,466 $0 $0 $ Common Windows & Doors - Replace $0 $0 $5,553 $0 $ Roofs (Clubhouse) - Replace $0 $0 $0 $0 $ Roofs (Guardhouse) - Replace $0 $0 $0 $0 $0 M.E.P Barcode Reader - Replace $0 $0 $0 $0 $ Barrier Arm Operators - Replace $0 $0 $0 $0 $ HVAC (Guardhouse) - Replace $0 $0 $0 $6,292 $ Security Cameras - Upgrade/Replace $0 $0 $16,104 $0 $ Irrigation Pumps - Replace (2016) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2017) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2018) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2019) $0 $0 $0 $0 $ Irrigation Pumps - Replace (2020) $0 $0 $0 $0 $ Irrigation Pumps - Replace (Future) $15,703 $0 $0 $0 $ Golf Cart - Replace $0 $0 $0 $0 $0 Interiors and Amenities 2750 Bathrooms - Remodel $0 $0 $0 $0 $ Pool Deck Furniture - Replace $0 $0 $0 $16,015 $ Pool Deck - Seal/Repair $0 $0 $0 $32,832 $ Pool Fence - Replace $0 $0 $0 $0 $ Pool Deck Lighting - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $0 $0 $ Pool Equipment - Maintain/Replace $0 $0 $4,443 $0 $0 Association Reserves 24 11/11/2015

32 Table 6: 30-Year Income/Expense Detail (yrs 25 through 29) Fiscal Year Playground Equipment - Replace $32,454 $0 $0 $0 $ Tennis Courts - Re-coat $0 $21,027 $0 $0 $ Tennis Courts - Resurface $0 $0 $0 $0 $ Tennis Court Fencing - Replace $0 $0 $0 $0 $0 Total Expenses $79,564 $1,077,649 $26,100 $89,458 $29,457 Ending Reserve Balance: $1,977,408 $1,221,525 $1,521,026 $1,766,129 $2,080,390 Association Reserves 25 11/11/2015

33 Assoc Accuracy, Limitations, and Disclosures Because we have no control over future events, we do not expect that all the events we anticipate will occur as planned. We expect that inflationary trends will continue, and we expect Reserve funds to continue to earn interest, so we believe that reasonable estimates for these figures are much more accurate than ignoring these economic realities. We can control measurements, which we attempt to establish within 5% accuracy through a combination of on-site measurements, drawings, and satellite imagery. The starting Reserve Balance and interest rate earned on deposited Reserve funds that you provided to us were considered reliable and were not confirmed independently. We have considered the association s representation of current and historical Reserve projects reliable, and we have considered the representations made by its vendors and suppliers to also be accurate and reliable. Component Useful Life, Remaining Useful Life, and Current Cost estimates assume a stable economic environment and lack of natural disasters. Because the physical condition of your components, the association s Reserve balance, the economic environment, and legislative environment change each year, this Reserve Study is by nature a one-year document. Because a long-term perspective improves the accuracy of near-term planning, this Report projects expenses for the next 30 years. It is our recommendation and that of the Financial Accounting Standards Board (FASB) that your Reserve Study be updated each year as part of the annual budget process. Association Reserves and its employees have no ownership, management, or other business relationships with the client other than this Reserve Study engagement. William G. Simons, RS is the President of Association Reserves Florida, LLC and is a credentialed Reserve Specialist (#190). All work done by Association Reserves Florida, LLC is performed under his Responsible Charge. There are no material issues to our knowledge that have not been disclosed to the client that would cause a distortion of the association s situation. Component quantities indicated in this Report were developed by Association Reserves unless otherwise noted in our Site Inspection Notes comments. No destructive or intrusive testing was performed. This Report and this site inspection were accomplished only for Reserve budget purposes (to help identify and address the normal deterioration of properly built and installed components with predictable life expectancies). The Funding Plan in this Report was developed using the cash-flow methodology to achieve the specified Funding Objective. Association Reserves liability in any matter involving this Reserve Study is limited to our Fee for services rendered. Association Reserves 26 11/11/2015

34 Assoc Terms and Definitions BTU DIA GSF GSY HP LF British Thermal Unit (a standard unit of energy) Diameter Gross Square Feet (area). Equivalent to Square Feet Gross Square Yards (area). Equivalent to Square Yards Horsepower Linear Feet (length) Effective Age: The difference between Useful Life and Remaining Useful Life. Note that this is not necessarily equivalent to the chronological age of the component. Fully Funded Balance (FFB): The value of the deterioration of the Reserve Components. This is the fraction of life used up of each component multiplied by its estimated Current Replacement. While calculated for each component, it is summed together for an association total. FFB = (Current Cost X Effective Age) / Useful Life Inflation: Interest: Cost factors are adjusted for inflation at the rate defined in the Executive Summary and compounded annually. These increasing costs can be seen as you follow the recurring cycles of a component on Table 6. Interest earnings on Reserve Funds are calculated using the average balance for the year (taking into account income and expenses through the year) and compounded monthly using the rate defined in the Executive Summary. Annual interest earning assumption appears in the Executive Summary. Percent Funded: The ratio, at a particular point in time (the first day of the Fiscal Year), of the actual (or projected) Reserve Balance to the Fully Funded Balance, expressed as a percentage. Remaining Useful Life (RUL): The estimated time, in years, that a common area component can be expected to continue to serve its intended function. Useful Life (UL): The estimated time, in years, that a common area component can be expected to serve its intended function. Association Reserves 27 11/11/2015

35 Assoc Component Details Association Reserves 28 11/11/2015

36 Client: 29086A Calusa Point - Site and Grounds Comp #: 2113 Site Drainage System - Clean/Repair Quantity: (1) System Location: Throughout development Evaluation: No access to inspect in-ground drainage infrastructure. Annual preventive maintenance work is typically performed as part of an association's general maintenance/operating fund. Under normal circumstances, site drainage components are constructed of very durable materials which should have an very long useful life (often assumed to be 50 years or more). Repairs may occasionally be required, but timing and scope of work is too unpredictable for Reserve funding in accordance with National Reserve Study Standards. If there are specific, known concerns with drainage system, we recommend further investigation using cameras or other means to document and identify conditions. Some Associations consult with civil and/or geotechnical engineers in order to develop scopes of work for repair/replacement. If more comprehensive analysis becomes available, findings should be incorporated into Reserve Study updates as appropriate. Best Case: Worst Case: Cost Source: November 11,2015 Page 1 of 11

37 Client: 29086A Calusa Point - Site and Grounds Comp #: 2123 Asphalt - Seal/Repair Quantity: Approx 33,300 GSY Location: Streets/roadways throughout association Evaluation: Very poor condition throughout; recommending resurfacing ASAP, followed by seal-coating roughly one year after resurfacing is complete. Regular cycles of seal coating (along with any needed repair) has proven to be the best program in our opinion for the long term care of asphalt pavement. The primary reason to seal coat asphalt pavement is to protect the pavement from the deteriorating effects of sun and water. When asphalt pavement is exposed, the asphalt oxidizes, or hardens which causes the pavement to become more brittle. As a result, the pavement will be more likely to crack because it is unable to bend and flex when subjected to traffic and temperature changes. A seal coat combats this situation by providing a water-resistant membrane, which not only slows down the oxidation process but also helps the pavement to shed water, preventing it from entering the base material. Seal coat also provides uniform appearance, concealing the inevitable patching and repairs which accumulate over time. Seal coat ultimately extends useful life of asphalt, postponing the asphalt resurfacing, which can be one of the larger cost items in this study. Best practice is to seal-coat asphalt when it is still relatively new/fresh, ideally 6-12 months following initial surface application or resurfacing, and then at recurring 4-year intervals. If asphalt is already cracked, raveled and otherwise deteriorated, seal-coating will not provide much physical benefit, but still has aesthetic benefits for curb appeal. 4 years 2 years Best Case: $36, Worst Case: $43, Lower estimate to seal/repair Higher estimate Cost Source: AR Cost Database November 11,2015 Page 2 of 11

38 Client: 29086A Calusa Point - Site and Grounds Comp #: 2125 Asphalt - Resurface Quantity: Approx 33,300 GSY Location: Streets/roadways throughout association Evaluation: Significant, severe cracking and deterioration throughout development. Alligatoring and raveling, especially at lower portions of roadways. Complete reconstruction may be required in some areas. As routine maintenance, keep roadway clean, free of debris and well drained; fill/seal cracks to prevent water from penetrating into the sub-base and accelerating damage. Even with ordinary care and maintenance, plan for eventual large scale resurface (milling and overlay of all asphalt surfaces is recommended here, unless otherwise noted) at roughly the time frame below. Take note of any areas of ponding water or other drainage concerns, and incorporate repairs into scope of work for resurfacing. Our inspection is visual only and does not incorporate any core sampling or other testing, which may be advisable when asphalt is nearing end of useful life. Some communities choose to work with independent paving consultants or engineering firms in order to identify any hidden concerns and develop scope of work prior to bidding. If more comprehensive analysis becomes available, incorporate findings into future Reserve Study updates as appropriate. 20 years 1 years Best Case: $366, Worst Case: $433, Lower estimate to resurface Higher estimate Cost Source: AR Cost Database November 11,2015 Page 3 of 11

39 Client: 29086A Calusa Point - Site and Grounds Comp #: 2137 Site Fencing: Metal - Replace Quantity: Approx 3,540 LF Location: North, East, South perimeters Evaluation: 6' tall fencing was worn and faded at time of inspection. Still intact and upright, but in mostly poor aesthetic condition. Aluminum fencing will eventually break down due to sunlight and weather exposure, and replacement is often less expensive than refinishing. Aluminum is a relatively light material and can be damaged easily if abused. Plan to replace at the approximate interval shown here. 25 years 5 years Best Case: $142, Worst Case: $177, Lower estimate to replace Cost Source: AR Cost Database Higher estimate Comp #: 2139 Site Fencing: Wood - Replace Quantity: Numerous LF Location: West border of development Evaluation: Wood fencing at the West side of the community does not belong to Calusa Point according to Manager; no need for Reserve funding. Photo Not Available Best Case: Worst Case: Cost Source: November 11,2015 Page 4 of 11

40 Client: 29086A Calusa Point - Site and Grounds Comp #: 2149 Gazebo - Replace Quantity: (1) Gazebo Location: Common areas Evaluation: Footprint area is roughly 15'x15'. Wood frame and canopy are very worn and rotting in sections. Warping wood at roof section is pulling nails out of framing. Severely deteriorated appearance. Routine maintenance and repair should be considered an Operating expense. This component represents an allowance for complete rebuilding/replacement at longer intervals. Costs shown here assume replacement with a comparable size, style, etc. 20 years 0 years Best Case: $6, Worst Case: $9, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 5 of 11

41 Client: 29086A Calusa Point - Site and Grounds Comp #: 2166 Mailboxes - Replace Quantity: (21) Total Kiosks Location: Kiosks at common areas Evaluation: (17) 16-box+2-parcel kiosks, and (4) 12-box+1-parcel. Fair appearance at time of inspection. Fully exposed locations. Inspect regularly and clean by wiping down exterior surfaces. If necessary, change lock cylinders, lubricate hinges and repair as an Operating expense. Best to plan for total replacement at roughly the time frame below due to constant exposure, usage and wear over time. Note: USPS has a limited budget for replacement and should not be relied upon for purposes of long term planning. 20 years 10 years Best Case: $29, Worst Case: $37, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 6 of 11

42 Client: 29086A Calusa Point - Site and Grounds Comp #: 2169 Sign/Monument - Refurbish/Replace Quantity: (1) Sign Location: Main entry to community Evaluation: Plain lettering on block wall. Signage is older/dated in style but landscaping in this area was refurbished in early 2015 and remained in generally good condition at time of inspection. As routine maintenance, inspect regularly, clean/touch-up and repair as an Operating expense. Plan to refurbish or replace at the interval below. Timing and scope of refurbishing or replacement projects is very subjective but should always be scheduled in order to maintain good curb appeal. In our experience, most Associations choose to replace signage in order to maintain good appearance and aesthetics in keeping with local area, often before signage is in poor physical condition. If present, concrete walls are expected to be painted and repaired as part of refurbishing, but not fully replaced. Costs can vary significantly depending on style/type desired, and may include landscaping, lighting, etc. Reserve Study updates should incorporate any estimates or information collected regarding potential 15 years 14 years Best Case: $10, Worst Case: $15, Lower estimate to refurbish/replace Higher estimate Cost Source: AR Cost Database/Client Cost History November 11,2015 Page 7 of 11

43 Client: 29086A Calusa Point - Site and Grounds Comp #: 2170 Directional/Street Signs - Replace Quantity: Approx (42) Total Signs Location: Adjacent to streets and parking areas Evaluation: (24) guest parking and (18) other signs noted during inspection. Wood posts. Should ideally be replaced at same time as street lights to preserve consistent aesthetic standard. Decorative street signs and posts are generally replaced at longer intervals due to weathering and deterioration or to coincide with other exterior projects such as entry signage, street lighting, etc. Signs should be inspected regularly to make sure visibility is adequate, including at night. Repair any damaged or leaning posts as needed. Costs for replacement can vary greatly depending on style selected; costs shown here are based on replacement with a comparable type as are currently in place. 20 years 0 years Best Case: $12, Worst Case: $21, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 8 of 11

44 Client: 29086A Calusa Point - Site and Grounds Comp #: 2175 Site Pole Lights - Replace Quantity: (30) Lights Location: Common areas throughout development Evaluation: Lighting is believed to be original. Poor appearance and physical condition at time of inspection. Manager reports that lights will be replaced in the near future, and scope of work is expected to include re-wiring and possible addition/relocation of lights. Observed during daylight hours; assumed to be in functional operating condition. As routine maintenance, inspect, repair/change bulbs as needed. Best to plan for large scale replacement at roughly the time frame below for cost efficiency and consistent quality/appearance throughout Association. Replacement costs can vary greatly; estimates shown here are based on replacement with a comparable size and design, unless otherwise noted. 20 years 0 years Best Case: $90, Worst Case: $130, Lower estimate to replace Higher estimate Cost Source: Estimate Provided by Client November 11,2015 Page 9 of 11

45 Client: 29086A Calusa Point - Site and Grounds Comp #: 2185 Landscaping - Refurbish (One-Time) Quantity: Numerous Areas Location: Landscaped common areas Evaluation: Large, mature trees and plantings throughout community. Some overgrown sections noted. The Board of Directors reports that the community may be overdue for a major renovation project to help prepare for or mitigate potential storm damage. This component represents a singular, large project for initial renovation work, which can be followed by recurring, smaller projects as described in component # years 1 years Best Case: $40, Worst Case: $60, Lower allowance to refurbish Higher allowance Cost Source: Estimate Provided by Client November 11,2015 Page 10 of 11

46 Client: 29086A Calusa Point - Site and Grounds Comp #: 2186 Landscaping - Refurbish (Recurring) Quantity: Numerous Areas Location: Landscaped common areas Evaluation: Refer to component #2185 for more details. Routine daily/weekly/monthly maintenance is expected to be funded through the Operating budget. However, this component represents a supplemental "allowance" for larger projects which may occur periodically, such as renovation/restoration of landscaped areas, new trees, hedges, flower beds, etc. Timing and costs of such projects are very subjective. Estimates shown here should be reevaluated by the Association over time and adjusted as needed during future Reserve Study updates. 3 years 4 years Best Case: $10, Worst Case: $20, Lower allowance to refurbish Higher allowance Cost Source: Estimate Provided by Client November 11,2015 Page 11 of 11

47 Client: 29086B Calusa Point - Building Exteriors Comp #: 2343 Building/Common Exteriors - Paint Quantity: (274) Units Location: Building exteriors Evaluation: Residential buildings are 2-story, arranged in attached townhome clusters. Buildings were reported to have been painted recently (completed early 2015). The Board of Directors reported that the low bid was accepted due to budget constraints, but a higher number should be used for future planning purposes. Besides painting the residential buildings, project reportedly included repairs, pressure-washing, exterior walls, curbing, guardhouse and clubhouse. Stucco and large amounts of wood trim at fascia, eaves, etc. There are two important reasons for painting and waterproofing a building: to protect the structure from damage caused by exposure to the elements, and to restore or maintain good aesthetic standards for curb appeal. As routine maintenance, we recommend that regular inspections, spot repairs and touch-up painting be included in the operating budget. Typical paint cycles can vary greatly depending upon many factors including; type of material painted, surface preparations, quality of material, application methods, weather conditions during application, moisture beneath paint, and exposure to weather conditions. Proper sealant/caulking at window and door perimeters and other "gaps" in the building structure are critical to preventing water intrusion and resulting damage. The general rule of thumb is that sealant/caulking should be in place wherever two dissimilar building surfaces meet, such as window frame to concrete structure junctions. For best results, the client may want to consult with a paint company representative, building envelope specialist or structural engineer to specify the types of materials to be used and define complete scope of work before bidding. In our experience, cost estimates for painting and waterproofing can vary widely, even when based on the same prescribed scope of work. Estimates shown here should be updated and revised as needed based on actual bids obtained or project cost history during future Reserve Study updates. 7 years 5 years Best Case: $400, Worst Case: $500, Lower estimate to seal/repaint Higher estimate Cost Source: Client Cost History/Estimates Provided November 11,2015 Page 1 of 5

48 Client: 29086B Calusa Point - Building Exteriors Comp #: 2363 Unit Windows & Doors - Replace Quantity: (274) Units Location: Building exterior Evaluation: Based on information provided, individual owners are believed to be responsible for window and door replacement at their units. However, our review is not intended to be a professional legal opinion and we reserve the right to revise this component if the Association is otherwise found to be responsible for replacement. No recommendation for Reserve funding at this time. Best Case: Worst Case: Cost Source: November 11,2015 Page 2 of 5

49 Client: 29086B Calusa Point - Building Exteriors Comp #: 2367 Common Windows & Doors - Replace Quantity: Clubhouse, Guardhouse Location: Windows and doors at common areas Evaluation: Guardhouse has (3) large windows, (1) smaller window and (1) entry door. Clubhouse/pool building has a handful of utility doors. One window at the guardhouse was replaced in 2013, and window at visitor entry lane is expected to have a shorter than average life expectancy due to constant daily opening/closing according to the Board of Directors. All are assumed to have been compliant with applicable building codes at time of installation. Inspect regularly for leaks and cracks around frame and repair as needed. For operable windows, clean tracks and ensure hardware is functional to prevent accidental damage during opening/closing. With ordinary care and maintenance, useful life is typically long but often difficult to predict. Many factors affect useful life including quality of window currently installed, waterproofing details, exposure to wind and rain, etc. Individual windows and doors may be replaced as an Operating expense if damaged or broken, or using Reserve funds if cost is significant. An allowance for ongoing replacements is recommended here. 10 years 7 years Best Case: $2, Worst Case: $3, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 3 of 5

50 Client: 29086B Calusa Point - Building Exteriors Comp #: 2383 Roofs (Clubhouse) - Replace Quantity: Approx 2,035 GSF Location: Building rooftop Evaluation: Clubhouse roof was reported to have been replaced in 2013, but may not have been done to a high standard according to the Board of Directors. Some concerns of leaks. Shown here on same replacement schedule as guardhouse roof for future planning purposes. However, our inspection is visual only and if roof is inspected in more detail and found to be in poor condition, useful life estimates shown here may need to be re-evaluated. Typical replacement includes removal and replacement of tiles and underlayment, with repairs to any damaged substrate made as needed. Tile roofing is typically a long-lived component assuming it was properly installed and is properly maintained. The primary reason to replace tile roofs is not based on the condition of the tiles themselves, whose main purpose is to provide a barrier for the underlayment which is the actual waterproofing layer of the roof system. As routine maintenance, many manufacturers recommend inspections at least twice annually and after large storm events. Promptly replace any damaged/missing sections or conduct any other repair needed to ensure waterproof integrity of roof. We recommend having roof inspected in greater detail (including conditions of sub-surface materials) by an independent roofing consultant prior to replacement. There is a wealth of information available through organizations such as the Roof Consultant Institute and the National Roofing Contractors Association (NRCA) If the roof has a warranty, be sure to review terms and conduct proper inspections/repairs as needed to keep warranty in force. 25 years 23 years Best Case: $11, Worst Case: $13, Lower estimate to replace Higher estimate Cost Source: Client Cost History November 11,2015 Page 4 of 5

51 Client: 29086B Calusa Point - Building Exteriors Comp #: 2383 Roofs (Guardhouse) - Replace Quantity: Approx 235 GSF Location: Building rooftop Evaluation: Refer to "Clubhouse" roof for more general information. Guardhouse roof was reported to have been replaced in No concerns reported at time of inspection. Steeper slope than other roofs. 25 years 23 years Best Case: $3, Worst Case: $4, Lower estimate to replace Cost Source: Client Cost History Higher estimate Comp #: 2383 Roofs (Residential Bldgs) - Replace Quantity: (274) Units Location: Building rooftop Evaluation: According to the Board of Directors and Manager, the tile roofs at individual units have historically been replaced by each unit owner, not the Association. Roofs are inconsistent with regard to age, size, materials and conditions. Under Article VI, Section 3 of the Association's Declaration, the Association's responsibility for repairs and replacement of roofs and gutters/downspouts appears to have been eliminated. A separate, "hypothetical" analysis including Reserve funding recommendations for roofs may be prepared at the request of the Association, but there is no recommendation in the official Reserve Study at this time. Best Case: Worst Case: Cost Source: November 11,2015 Page 5 of 5

52 Client: 29086C Calusa Point - M.E.P. Comp #: 2507 Barcode Reader - Replace Quantity: (1) Reader Location: Gate entrance Evaluation: Barcode Automation, Inc. model BA-200, serial number B. Manufactured in Manufacturer confirmed that this model and decals that go with it are no longer supported, and that the Association should be prepared to upgrade to the BA-220 or BA-440 model. An allowance for 500 new decals is included in costs shown here. Should be evaluated and repaired as needed by servicing vendor to ensure proper function. For best pricing and to minimize downtime, best practice is to replace with other similar components, such as gate operators. Plan on replacing at the approximate interval shown here. 12 years 0 years Best Case: $11, Worst Case: $13, Lower estimate to replace Higher estimate Cost Source: Research with Manufacturer November 11,2015 Page 1 of 8

53 Client: 29086C Calusa Point - M.E.P. Comp #: 2511 Barrier Arm Operators - Replace Quantity: (3) Operators Location: Gate entrances Evaluation: Two operators had visible manufacture dates (2009, 2010). All observed to be functional at time of inspection. Funding recommendation is primarily for the motor/mechanical unit, not the arm itself, which are generally replaced as an Operating/maintenance expense. Life expectancy can vary based on level of use, exposure to the elements, level of preventive maintenance, etc. Should be inspected and repaired as needed by servicing vendor to attain full life expectancy. 15 years 8 years Best Case: $10, Worst Case: $13, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 2 of 8

54 Client: 29086C Calusa Point - M.E.P. Comp #: 2522 HVAC (Guardhouse) - Replace Quantity: (1) Small System Location: Guardhouse Evaluation: System was a Mitsubishi mini-split model with 0.5 nominal ton capacity; believed to have been replaced in When exact replacement date is unknown or unreported, age of the system is derived by manufacturer's serial number or date shown on equipment unless otherwise noted. Life expectancy of HVAC systems can vary greatly depending on many factors including location of the property, level of preventive maintenance, manufacturer, etc. We recommend that routine repairs and maintenance such as filter replacement, system flushing, etc. be budgeted as an Operating expense. Useful life can often be extended with proactive service and maintenance. Unless otherwise noted, funding for system with same size/capacity as the current system. For split systems, we recommend budgeting to replace the entire system (condensing unit and air handler) together in order to obtain better unit pricing and ensure maximum efficiency, refrigerant compatibility, etc. If additional costs are expected during replacement, such as for system reconfiguration or expansion, ductwork repairs, electrical work, etc. costs should be re-evaluated and adjusted as needed during future Reserve Study updates. 10 years 8 years Best Case: $2, Worst Case: $3, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 3 of 8

55 Client: 29086C Calusa Point - M.E.P. Comp #: 2543 Security Cameras - Upgrade/Replace Quantity: (11) Cameras Location: Guardhouse, amenities, etc. Evaluation: Low-resolution cameras noted. Last project took place in 2013 according to records provided. Security/surveillance systems should be monitored closely to ensure proper function. Whenever possible, camera locations should be protected and isolated to prevent tampering and/or theft. Typical modernization projects may include addition and/or replacement of camera fixtures, recording equipment, monitors, software, etc. Costs assume that existing wiring can be re-used and only the actual equipment will be replaced. In many cases, replacement or modernization is warranted due to advancement in technology, not necessarily due to functional failure of the existing system. Keep track of any partial replacements and include cost history during future Reserve Study updates. 10 years 7 years Best Case: $6, Worst Case: $8, Lower allowance to upgrade/replace Higher allowance Cost Source: AR Cost Database November 11,2015 Page 4 of 8

56 Client: 29086C Calusa Point - M.E.P. Comp #: 2585 Irrigation Pumps - Replace (2016) Quantity: (28) Total Pumps Location: Throughout development Evaluation: The Association has had to replace pumps and electrical panels in several locations recently according to information provided. To date, (3) of the (28) pumps have been replaced, and the current plan as reported to us is to replace the remaining pumps five at at a time over the next five years to spread out the costs. We have included five "one-time" expense components, reflecting the replacement of 5 pumps each year from , with a sixth component line item added for "future" replacements. Irrigation pumps can often be repaired or rebuilt rather than completely replaced. Individual motor replacements, rebuilds and other small component repairs are generally considered an Operating expense. Pumps and motors need to be checked and serviced regularly by landscaping/irrigation vendor or other maintenance personnel to ensure proper function. If possible, should be protected from sunlight and weather to minimize exposure and prolong life. This component represents an allowance for ongoing repairs/replacements. There should be no expectation to replace all at one time. 0 years 0 years Best Case: $10, Worst Case: $14, Lower allowance to replace Higher allowance Cost Source: Estimate Provided by Client November 11,2015 Page 5 of 8

57 Client: 29086C Calusa Point - M.E.P. Comp #: 2585 Irrigation Pumps - Replace (2017) Quantity: (28) Total Pumps Location: Throughout development Evaluation: Refer to "Irrigation Pumps - Replace (2016)" for more information. 0 years 1 years Best Case: $10, Worst Case: $14, Lower allowance to replace Cost Source: Estimate Provided by Client Comp #: 2585 Irrigation Pumps - Replace (2018) Quantity: (28) Total Pumps Location: Throughout development Evaluation: Refer to "Irrigation Pumps - Replace (2016)" for more information. Higher allowance 0 years 2 years Best Case: $10, Worst Case: $14, Lower allowance to replace Higher allowance Cost Source: Estimate Provided by Client November 11,2015 Page 6 of 8

58 Client: 29086C Calusa Point - M.E.P. Comp #: 2585 Irrigation Pumps - Replace (2019) Quantity: (28) Total Pumps Location: Throughout development Evaluation: Refer to "Irrigation Pumps - Replace (2016)" for more information. 0 years 3 years Best Case: $10, Worst Case: $14, Lower allowance to replace Cost Source: Estimate Provided by Client Comp #: 2585 Irrigation Pumps - Replace (2020) Quantity: (28) Total Pumps Location: Throughout development Evaluation: Refer to "Irrigation Pumps - Replace (2016)" for more information. Higher allowance 0 years 4 years Best Case: $10, Worst Case: $14, Lower allowance to replace Higher allowance Cost Source: Estimate Provided by Client November 11,2015 Page 7 of 8

59 Client: 29086C Calusa Point - M.E.P. Comp #: 2585 Irrigation Pumps - Replace (Future) Quantity: (28) Total Pumps Location: Throughout development Evaluation: All pumps are expected to be replaced from This component represents an allowance for future pump repairs/replacements, beginning roughly 5 years after the last round of replacements, currently scheduled for years 10 years Best Case: $5, Worst Case: $10, Lower allowance to replace Cost Source: AR Cost Database Higher allowance Comp #: 2599 Golf Cart - Replace Quantity: (1) Cart Location: Maintenance shed Evaluation: Older 2-seat cart with utility bed. Has not worked in a few years according to Manager. Routine maintenance should be performed to maximize useful life of the cart. Useful life will depend on application and level of daily use, but plan to replace at the approximate interval shown below. Unless otherwise noted, cost estimates reflect replacement with a comparable model, either new or lightly used. 10 years 0 years Best Case: $5, Worst Case: $7, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 8 of 8

60 Client: 29086D Calusa Point - Amenities Comp #: 2750 Bathrooms - Remodel Quantity: (2) Bathrooms Location: Common area bathrooms Evaluation: Each bathroom is roughly 16'x8' with tile flooring. Men's has (2) sinks, (1) urinal and (1) toilet. Women's is approximately the same but with (2) toilets. Good condition at time of inspection. Were last remodeled in 2012 per records provided. As routine maintenance, inspect regularly and perform any needed repairs promptly utilizing general Operating funds. Typical remodeling project can include some or all of the following: replacement of plumbing fixtures, partitions, countertops, lighting, flooring, ventilation fans, accessories, décor, etc. Costs can vary greatly depending on scope of work involved. In general, estimates shown are based primarily on cosmetic remodeling, not necessarily total "gut" remodel projects unless otherwise noted. 20 years 16 years Best Case: $10, Worst Case: $15, Lower allowance to remodel Higher allowance Cost Source: AR Cost Database November 11,2015 Page 1 of 12

61 Client: 29086D Calusa Point - Amenities Comp #: 2763 Pool Deck Furniture - Replace Quantity: (50) Pieces Location: Pool deck Evaluation: (35) lounge chairs, (3) dining tables, (12) chairs, counted during inspection. Plain, strapped pieces. Last replaced in 2012 per records provided. We recommend regular inspections and repair or replacement of any damaged pieces promptly to ensure safety. Protected storage of furniture when not in use can help to extend useful life. Best practice is to replace all pieces together in order to maintain consistent style and quality in the pool/recreation area. Costs can vary greatly based on type of pieces selected for replacement. Funding recommendation shown here is based on replacement with comparable number and quality of pieces. 8 years 4 years Best Case: $6, Worst Case: $8, Lower estimate to replace Higher estimate Cost Source: AR Cost Database/Client Cost History November 11,2015 Page 2 of 12

62 Client: 29086D Calusa Point - Amenities Comp #: 2767 Pool Deck - Seal/Repair Quantity: Approx 7,160 GSF Location: Pool deck Evaluation: Deck was in overall poor condition with cracks, stains and general wear and deterioration across all areas. Project is to be deferred according to the Board of Directors. Subjective project with lower priority compared to other work in the community. Pool decks may be exposed to harsh chemicals that can leave stains if not addressed properly. Periodic pressure-washing and re-coating will restore the appearance and prolong the need for major restoration or replacement of the deck surface. Take note of any places where water is ponding, which may result in slip-and-fall hazards if not corrected. 5 years 3 years Best Case: $12, Worst Case: $15, Lower estimate to clean/seal/repair Higher estimate Cost Source: AR Cost Database November 11,2015 Page 3 of 12

63 Client: 29086D Calusa Point - Amenities Comp #: 2771 Pool Fence - Replace Quantity: Approx 315 LF Location: Perimeter of pool area Evaluation: Chain link fencing, 6' tall in poor condition. Largely overgrown by surrounding hedge. As a routine maintenance item, fence should be inspected regularly and repaired as-needed to ensure safety. Periodically clean with an appropriate cleaner and touch up paint as needed in between regular paint cycles. When evaluating replacements, be sure to comply with any applicable building codes. Gates and locks should be inspected to make sure they close and lock properly. Faulty perimeter around a pool area can expose an Association to significant liability risk. When possible, replacement should be coordinated with other projects, such as pool deck projects, other fencing/railing work, etc. 30 years 5 years Best Case: $4, Worst Case: $6, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 4 of 12

64 Client: 29086D Calusa Point - Amenities Comp #: 2772 Pool Deck Lighting - Replace Quantity: (5) Lights Location: Pool deck Evaluation: Old, outdated design. The Board of Directors reports that the wiring and electrical panel for these lights may also need replacement, so cost estimates have been updated accordingly. Project is to be deferred according to the Board of Directors. Subjective project with lower priority compared to other work in the community. Inspected during daylight hours but assumed to be functional. Lighting around the pool deck should be inspected regularly to ensure adequate brightness at night for safety. Replacement is often coordinated with other exterior or site lighting, or with pool fence or other components in this area. Cost shown are based on replacement with comparable size and design standards. 20 years 3 years Best Case: $20, Worst Case: $25, Lower estimate to replace Higher estimate Cost Source: Estimate Provided by Client November 11,2015 Page 5 of 12

65 Client: 29086D Calusa Point - Amenities Comp #: 2773 Pool - Resurface Quantity: (1) Pool Location: Interior finishes of pool Evaluation: Major chipping, cracks and deterioration observed. Poor appearance. Approximately 1,270 GSF footprint area with 156' waterline/perimeter length. Depth ranges from 3' to 6'. Pool resurfacing will restore the aesthetic quality of the pool while protecting the actual concrete shell of the pool from deterioration. While drained for resurfacing, any other repairs to lighting, handrails, stairs, ladders, etc. should be conducted as needed. This type of project is best suited for slow/offseason to minimize downtime during periods when pool is used heavily. Should be expected at the approximate interval shown below; in some cases, schedule may need to be accelerated due to improper chemical balances or aesthetic preferences of the Association. 12 years 0 years Best Case: $9, Worst Case: $12, Lower estimate to resurface Higher estimate Cost Source: AR Cost Database November 11,2015 Page 6 of 12

66 Client: 29086D Calusa Point - Amenities Comp #: 2781 Spa Heater - Replace Quantity: (1) Heater Location: Exposed location adjacent to pool deck Evaluation: Appeared to be approximately 250,000 BTU. This heater is reportedly for the spa which is no longer in use. No need for replacement. Best Case: Worst Case: Cost Source: Comp #: 2787 Pool Equipment - Maintain/Replace Quantity: (2) Filters, (1) Pump Location: Pool equipment room Evaluation: (2) small filters, (1) 5 HP pump. Pool and spa pumps, filters and other miscellaneous equipment can be repaired or replaced for relatively low cost in most cases. However, if multiple repairs or replacements are required at the same time, then it may be warranted to use Reserve funds for these expenses. An allowance for ongoing projects is recommended here based on our experience with other properties. 5 years 2 years Best Case: $1, Worst Case: $2, Lower allowance to repair/replace equipment Higher allowance Cost Source: AR Cost Database November 11,2015 Page 7 of 12

67 Client: 29086D Calusa Point - Amenities Comp #: 2801 Playground Equipment - Replace Quantity: (2) Pieces Location: Playground/tot lot Evaluation: One slide and one 4-swing set. Old and outdated; believed to be original to the property. Our inspection is not intended to identify any structural or latent defects, safety hazards, or other liability concerns. Funding recommendation shown here is strictly for budget purposes. As a routine maintenance expense, inspect for stability, damage and excessive wear and utilize maintenance funds for any repairs needed between replacement cycles. Life expectancy can vary depending on the amount of use/abuse. Unless otherwise noted, cost estimates assume replacement would be with comparable size and style of equipment as noted during inspection. 25 years 0 years Best Case: $12, Worst Case: $18, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 8 of 12

68 Client: 29086D Calusa Point - Amenities Comp #: 2809 Tennis Courts - Re-coat Quantity: (2) Courts Location: Tennis courts Evaluation: Courts were repaired and re-coated in 2011 according to the Board of Directors. Still in playable condition, but appearance is poor in some areas due to structural cracks. Costs shown here are based in part on copies of proposals provided, which did not include fiberglass layer installation. We recommend fully resurfacing (reconstructing) the court eventually as noted in component #2811. Inspect regularly and locally repair as needed within the annual Operating budget. Cracks and trip hazards should be addressed promptly to ensure safety. Re-coating is a recommended practice for restoring apeparance of the court, bridging small surface cracks, and prolonging the life of the court surface itself. Plan to re-coat (includes striping) at the approximate interval shown below. Maintenance projects such as pressure-washing should be considered as Operating expense. 5 years 1 years Best Case: $8, Worst Case: $11, Lower estimate to repair/coat/stripe Higher estimate Cost Source: AR Cost Database/Estimates Provided November 11,2015 Page 9 of 12

69 Client: 29086D Calusa Point - Amenities Comp #: 2811 Tennis Courts - Resurface Quantity: (2) Courts Location: Tennis courts Evaluation: Some cracks showing through the surface, but not extreme. May have ponding in some areas due to poor drainage. Assuming proper maintenance and proper re-coating schedules, the court surface should have a relatively long life expectancy. Over time, exposure to UV light, wind rain and foot traffic will deteriorate the surface to the point of failure. Prior to resurfacing, consult with vendors to identify any structural problems, such as poor grade, lack of drainage, high spots, etc. Plan to resurface at the approximate interval shown below in order to preserve the appearance and usefulness of the court surface. Best practice is to coordinate with other projects, such as fencing and/or lighting replacement. 25 years 6 years Best Case: $24, Worst Case: $32, Lower estimate to resurface Higher estimate Cost Source: AR Cost Database November 11,2015 Page 10 of 12

70 Client: 29086D Calusa Point - Amenities Comp #: 2813 Tennis Court Fencing - Replace Quantity: Approx 450 LF Location: Tennis court Evaluation: Fencing appears to be original. Poor appearance; rusted and deteriorated. Tennis court fencing should have a very long life expectancy assuming proper design and installation, lack of vandalism/abuse, etc. Best practice is to coordinate replacement with other major projects, such as court resurfacing, lighting replacement, etc. Vinylcoated chain link fences normally have a longer life expectancy and are more attractive than those without. Gates and locks should be inspected and repaired as needed as an Operating expense in order to restrict access (if desired) to the tennis court. 25 years 6 years Best Case: $9, Worst Case: $11, Lower estimate to replace Higher estimate Cost Source: AR Cost Database November 11,2015 Page 11 of 12

71 Client: 29086D Calusa Point - Amenities Comp #: 2815 Tennis Court Windscreen - Replace Quantity: Approx 2,700 GSF Location: Tennis court Evaluation: Tennis court windscreens should be inspected periodically, especially where attached to the chain link to identify and repair any rips or tears. Loose/sagging/faded sections should be replaced to maintain good aesthetic appearance in the common areas. Costs to replace do not typically meet threshold for Reserve funding. Maintain, repair and replace as needed as an Operating expense. Best Case: Worst Case: Cost Source: Comp #: 2822 Basketball Court - Resurface Quantity: (1) Court Location: Basketball court Evaluation: Basketball court can likely be maintained and repaired as needed as an Operating expense. Should be no predictable need for Reserve funding. Best Case: Worst Case: Cost Source: November 11,2015 Page 12 of 12