Mrs. Casey Davis Houston Community Management Services El Comino Real Houston, Texas 77058

Transcription

1 Mrs. Casey Davis Houston Community Management Services 7049 El Comino Real Houston, Texas Reference: Detailed Reserve Study Kipcon Dear Mrs. Davis: Attached please find Kipcon s Detailed Reserve Study, which has been prepared for the. Kipcon Texas Engineers/Inspectors This Detailed Reserve Study has been prepared in conformance with the National Reserve Study Standards of the Community Associations Institute (CAI), which is a national educational organization for the community association industry. It is recommended that prior to implementing this Reserve Study, it be reviewed by the Association s accountant, paying particular attention to the beginning balance and the funding plan. As always, if you have any questions or comments, please do not hesitate to contact me directly. Thank you again for selecting Kipcon to provide these services. 607 Kensington Drive #243 Sugar Land, TX Telephone: (832) Toll Free: (800) info@kipcon.com Website: Very truly yours, KIPCON TEXAS Clayton E. Taylor, CMCA, RS Principal, Kipcon Texas

2 PREPARED FOR League City, Texas PREPARED BY Kipcon Texas Clayton E. Taylor CMCA, RS Reserve Specialist Number 27

3 Contents Executive Summary... Key Figures... 2 Physical Analysis... 3 Common Areas... 4 Community Pool... Financial Analysis... 6 Thirty Year Cash Flow Chart... 8 Thirty Year Projection Graph... 9 Expenditures Graph By Year Expenditures List By Year... 2 Disclosures Glossary of Abbreviations Bibliography Kipcon Texas 205 i P a g e

4 Executive Summary The following Detailed Reserve Study was prepared by Kipcon Texas for the located in League City, Texas. The approximately 7 year old community is comprised of 30 single family residential units. This report was based upon visual observations made on May 22, 205, as well as information provided by Mrs. Casey Davis, the community manager. The purpose of a Detailed Reserve Study is to provide recommendations to the Association in regard to the amount of funding to be set aside to perform future replacements of the common elements as becomes necessary. The basis for this study is an analysis of the condition and replacement costs of the components which will require replacement within the next 30 years. The components and quantities used in this report were updated by Kipcon Texas within the scope of this study unless noted. As required by the National Reserve Study Standards of the Community Associations Institute, a Reserve Study comprises a Physical Analysis and a Financial Analysis. The Physical Analysis involves estimating the useful lives and replacement costs of common element components included within the Reserve Study. The estimated remaining lives of components are based on field observations by Kipcon Texas. Estimated replacement costs are based on construction cost estimating standards, information supplied by contractors, and industry experience. The Financial Analysis is prepared based upon the projected future annual reserve needs of the community association over the next 30 years. This Reserve Study indicates the Association s reserves are underfunded. The Association is currently not making an annual contribution, whereas this study recommends an annual contribution of $02,52. It is recommended that the Association increase its annual contribution amount to the recommended amount of $02,52. However, it is also recommended that the Association review this study with its financial advisor before implementing a funding plan. Based upon field observations by Kipcon Texas and the available reviewed data, the existing conditions at the are accurately represented within this report. It should be recognized that costs and useful lives fluctuate as a result of variables which include overall economic conditions, conditions within the construction industry, unanticipated severe weather, and the amount of ongoing maintenance performed. To ensure that proper funding levels are maintained, this report should be updated in two (2) years to provide the Association with a more current assessment of the status of its reserve fund. This report is prepared for budgetary purposes only. In most cases, bids solicited for replacement of any of the components will not match the costs shown in the Component Inventory. The costs contained within this report are obtained from the sources previously listed and are based on the replacement of the existing components with components of similar quality. Specific notes in this regard may be contained within this report. Kipcon Texas 205 P a g e

5 Key Figures Level of Service Provided: Full Component Inventory Condition Assessment (based upon on-site visual observations) Life and Valuation Estimates Fund Status Funding Plan Physical Description Number of Units: Age of Community: 30 Units 7 Years (apprx.) Click here to enter text.click here to enter text. Financial Description Beginning Reserve Balance: $0 Source of Beginning Reserve Balance and Annual Contribution: Funding Goal: Mrs. Casey Davis, Houston Community Management Full Funding Reserve Fund Status Current Percent Funded (Beginning Reserve Balance/Full Funding Balance): 0% Current Annual Contribution: $0 Recommended Annual Contribution: $02,52 Averaging Interval: 30 Years Kipcon Texas P a g e

6 Physical Analysis The following data represents the Physical Analysis portion of the Reserve Study. This analysis is based on the Component Inventory which incorporates a Condition Assessment of each specific component. The Condition Assessment is presented as the Estimated Remaining Life of each Component with the accompanying Notes. Also included is a valuation of the replacement cost for each Component. These costs are derived as outlined within this study. Construction costs and useful life estimates in this report represent the Engineer's best judgment as a professional familiar with the construction industry. It is recognized, however, that neither the Engineer nor the Association has control over the cost of labor, energy, materials, or equipment; over the contractors' methods of determining bid prices; or over competitive bidding, marketing, or negotiating conditions. Further, the Engineer cannot accurately determine the ongoing rate of deterioration, or the amount of preventive maintenance employed on an ongoing basis for determination of estimated useful lives. In all cases, unless stated otherwise, the useful life estimates are based upon visual inspections with no destructive testing employed. Accordingly, the Engineer cannot and does not warrant or represent those bids or negotiated prices and useful lives will not vary from that presented within the evaluation prepared or agreed to by the Engineer. Component Schedule Summary of Replacement Reserve Needs Effective Date: CATEGORY RESERVE REQUIREMENT PRESENT DOLLARS BEGINNING BALANCE BALANCE REQUIRING FUNDING ANNUAL RESERVE FUNDING REQUIRED FULL FUNDING BALANCE PERCENT FUNDED Common Areas Totals $2,077,285 $0 $2,077,285 $09,522 $488,72 Community Pool Totals $44,836 $0 $44,836 $0,780 $44,245 Category 3 Totals $0 $0 $0 $0 $0 Category 4 Totals $0 $0 $0 $0 $0 Category 5 Totals $0 $0 $0 $0 $0 Category 6 Totals $0 $0 $0 $0 $0 The Percent Funded and Funding Goal are based on fully funding each component within the schedule. Please review the report for various funding strategies. Category 7 Totals $0 $0 $0 $0 $0 Category 8 Totals $0 $0 $0 $0 $0 Category 9 Totals $0 $0 $0 $0 $0 GRAND TOTALS $2,222,2 $0 $2,222,2 $20,302 $532, % Kipcon Texas P a g e

7 Common Areas Common Areas COMPONENT QUANTITY UNIT COST RESERVE REQUIREMENT PRESENT DOLLARS BEGINNING BALANCE ESTIMATED ESTIMATED REMAINING USEFUL LIFE USEFUL LIFE ANNUAL RESERVE FUNDING REQUIRED FULL FUNDING BALANCE Concrete Sidewalks (0%) 7,500 SF $9.90 $74,250 $ $3,228 $7,325 Concrete Streets (0%) 80,000 SF $.3 $904,640 $ $36,86 $50,773 2 Concrete Curbs (0%) 85 LF $22.29 $4,24 $ $79 $962 3 Concrete Bulkhead (0%) 2,440 LF $ $543,242 $ $23,69 $26,756 4 Landscaping LS $0, $0,000 $0 0 3 $3,333 $7,000 5 Landscape Lights 4 EA $64.9 $25,82 $0 5 8 $3,48 $,75 6 Metal Gates 4 EA $3, $4,080 $ $782 $3,942 7 Gate Operators 4 EA $87.95 $3,488 $0 2 5 $698 $2,035 8 Decorative Stone Columns 4 EA $2, $34,3 $ $,906 $9,607 9 Decorative Metal Fence 530 LF $43.7 $22,882 $ $,27 $6,407 0 Security Monitoring System EA $2,652.7 $2,652 $0 5 8 $332 $,238 Brick Pavers 460 SF $.7 $5,388 $ $44 $,886 2 Vehicle Access Call Box EA $,08.8 $,08 $0 5 8 $35 $505 3 Street Lights 89 EA $,2.94 $07,863 $ $5,992 $30,202 4 Street Signs 45 EA $ $,682 $ $649 $3,27 5 Community Monument Sign LS $2, $2,500 $ $962 $4,375 6 Fountains 2 EA $4, $54,97 $0 5 8 $6,865 $25,628 7 Fluorescent Lights 8 EA $0.00 $880 $0 5 8 $0 $4 8 Perimeter Brick Fence 660 LF $58.84 $38,832 $ $2,57 $0,873 9 Perimeter Wood Fence 2,425 LF $37.73 $9,485 $0 5 8 $,436 $42, Pedestrian Bridge 800 SF $8.26 $65,007 $ $3,62 $8,202 2 Vehicular Bridge LS $32, $32,000 $ $,778 $8, Decorative Guardrail Wall LS $6, $6,800 $ $730 $3, NOTES TOTALS $2,077,285 $0 $09,522 $488,72 Kipcon Texas P a g e

8 Notes. The concrete sidewalks located in the common areas throughout the community were observed to be in good condition. The cost shown represents that portion (0%) of concrete sidewalk that is anticipated to need replacement as the component reaches the end of its useful life. 2. The concrete streets located throughout the community were observed to be in good condition. The cost shown represents that portion (0%) of concrete streets that is anticipated to need replacement as the component reaches the end of its useful life.. 3. The concrete bull nose curb located throughout the community were observed to be in good condition. The cost shown represents that portion (0%) of concrete curb that is anticipated to need replacement as the component reaches the end of its useful life.. 4. The concrete bulkhead located around the community lakes were observed to be in good condition. The cost shown represents that portion (0%) of concrete bulkhead that is anticipated to need replacement as the component reaches the end of its useful life.. Notes Kipcon Texas P a g e

9 5. The various landscaping components located in the common areas of the community were observed to be in fair condition. The cost shown represents a lump sum amount to replace the landscaping in the event of natural disaster, disease or infestation. 6. The 00W metal halide landscape lights located in the community common areas were observed to be in fair condition. The cost shown represents the removal and replacement of the landscape lights. 7. The metal slide gates located at the front entry were observed to be in good condition. The cost shown represents the removal and replacement of the metal gates. 8. The Elite gate operators located at the front entry were observed to be in fair condition. The cost shown represents the removal and replacement of the gate operators. Kipcon Texas P a g e

10 Notes 9. The decorative stone columns located at the front entry were observed to be in good condition with minor mortar loss and stone separation. The cost shown represents the removal and replacement of the decorative stone columns. 0. The metal perimeter fence was observed to be in fair condition with minor oxidation. The cost shown represents the removal and replacement of the metal fence.. The security camera and monitor located at the front entry was observed to be in fair condition. The cost shown represents the removal and replacement of the security cameras and monitor. 2. The brick pavers located at the front entry were observed to be in good condition. The cost shown represents the removal and replacement of the brick pavers. Kipcon Texas P a g e

11 Notes 3. The DKS call box located at the front entry was observed to be in fair condition. The cost shown represents the removal and replacement of the call box. 4. The overhead street lights located throughout the community illuminating the community streets were observed to be in good condition. The cost shown represents the removal and replacement of the overhead lights. 5. The street signs located throughout the community streets were observed to be in fair condition. The cost shown represents the removal and replacement of the street signs including the pole, sign, brackets and labor. 6. The decorative monument at the front entrance was observed to be in good condition. The cost shown represents a lump sum amount to replace the monument sign with a like product as the component reaches the end of its useful life. Kipcon Texas P a g e

12 Notes 7. The lake aerators were observed to be in fair condition. The cost shown represents the removal and replacement of the lake aerators. 8. The fluorescent lights located at the front entrance were observed to be in fair condition. The cost shown represents the removal and replacement of the fluorescent lights. 9. The prefabricated brick perimeter fence was observed to be in good condition. The cost shown represents the removal and replacement of the brick perimeter fence. 20. The wood perimeter fence was observed to be in fair condition. The cost shown represents the removal and replacement of the wood fence. Kipcon Texas P a g e

13 Notes 2. The treated wood framed pedestrian bridges were observed to be in good condition. The cost shown represents a lump sum amount to replace the bridges with like products as the components reach the end of their useful lives. 22. The treated wood framed vehicular bridge was observed to be in good condition. The cost shown represents a lump sum amount to replace the bridge with a like product as the component reaches the end of its useful life. 23. The decorative brick and metal guardrail wall was observed to be in good condition. The cost shown represents a lump sum amount to replace the decorative wall with a like product as the component reaches the end of its useful life. Kipcon Texas P a g e

14 Community Pool Community Pool COMPONENT QUANTITY UNIT COST RESERVE REQUIREMENT PRESENT DOLLARS BEGINNING BALANCE ESTIMATED ESTIMATED REMAINING USEFUL LIFE USEFUL LIFE ANNUAL RESERVE FUNDING REQUIRED FULL FUNDING BALANCE Concrete Parking Lot 4,575 SF $.3 $5,734 $ $2,249 $2,07 24 Concrete Curb 200 LF $22.29 $4,458 $ $94 $, Concrete Slab,50 SF $9.90 $,385 $ $495 $2, Perimeter Metal Fence 425 LF $43.7 $8,348 $ $,09 $5,38 27 Overhead Lights 6 EA $ $5,724 $ $38 $, Brick Repointing,370 SF $5.06 $6,932 $ $30 $,68 29 Asphalt Shingle Replace 6 SQ $ $3,956 $ $220 $,08 30 Concrete Deck (0%) 75 SF $9.90 $7,079 $ $308 $,652 3 Coping 255 LF $23.63 $6,025 $ $335 $, Plaster LS $7, $7,000 $0 5 8 $2,25 $7, Furniture 7 EA $83.57 $,42 $0 0 3 $474 $ Restrooms LS $5, $5,000 $0 0 3 $,667 $3, Pump and Filter Systems 2 EA $2, $4,77 $0 2 5 $943 $2,75 36 Drinking Fountain EA $, $,057 $0 5 8 $32 $ NOTES TOTALS $44,836 $0 $0,780 $44,245 Kipcon Texas 205 P a g e

15 Notes 24. The concrete parking lot at the community pool was observed to be in good condition with minor spider cracking. The cost shown represents the removal and replacement of the concrete parking lot. 25. The concrete bull nose curb at the community pool was observed to be in good condition. The cost shown represents the removal and replacement of the concrete curb. 26. The concrete slab at the community pool was observed to be in good condition with minor spider cracking. The cost shown represents the removal and replacement of the concrete slab. 27. The metal pool perimeter fence was observed to be in good condition. The cost shown represents the removal and replacement of the metal fence. Kipcon Texas P a g e

16 Notes 28. The overhead lights at the community pool were observed to be in fair condition. The cost shown represents the removal and replacement of the overhead lighting. 29. The stone and mortar on the pool building was observed to be in good condition. The cost shown represents stone and mortar replacement as the component reaches the end of its useful life. 30. The asphalt shingle roof of the community pool building was observed to be in good condition. The cost shown represents the removal and replacement of the asphalt shingle roof. 3. The concrete pool deck was observed to be in good condition. The cost shown represents removal and replacement of that portion (0%) of concrete decking that is anticipated to need replacement as the component reaches the end of its useful life. Kipcon Texas P a g e

17 Notes 32. The brick pool coping was observed to be in good condition. The cost shown represents the removal and replacement of the brick coping. 33. The pool plaster was observed to be in fair condition. The cost shown represents a lump sum amount to replaster the pools as the components reach the end of their useful lives. 34. The metal framed pool furniture was observed to be in fair condition. The cost shown represents the removal and replacement of the pool furniture. 35. The pool restrooms were observed to be in fair condition. The cost shown represents a lump sum amount to refurbish the restrooms with like products as the components reach the end of their useful lives. Kipcon Texas P a g e

18 Notes 36. The pool pump and filter systems were not observed due to lack of access. Based on the age of the community it is to be assumed that the pump and filter systems would be in fair condition. The cost shown represents the removal and replacement of the pump and filter systems including plumbing and electrical. 37. The Elkay dual unit wall mounted drinking fountains were observed to be in fair condition. The cost shown represents the removal and replacement of the dual unit drinking fountain. Kipcon Texas P a g e

19 Financial Analysis The Cash Flow Chart and Cash Flow Graph (pages 8 and 9) contain a Projected Thirty (30) Year Cash Flow of the reserve requirements for the. This analysis contains three (3) funding scenarios. The first, entitled Current Funding, represents a projection of the Association s current contribution amount for the next 30 years. It is based on the Beginning Balance provided by Casey Davis and the calculated expenditures. The second funding scenario, entitled Full Funding is based on the assumption that all of the items which make up the schedule will be fully funded. In other words, Full Funding means that each component will accumulate its full replacement cost over the span of its Estimated Useful Life. When a component reaches the end of its useful life (which varies for each reserve component), the component would be replaced and the funding cycle would immediately begin again for that particular component. Because expenditures vary from year to year, the Annual Contribution to the reserve changes over the projection period. Since it is impractical for the Association to adjust the amount of its contribution to the reserve fund on a yearly basis, a cash flow analysis based on an average contribution amount (designated Average Annual Contribution) is shown under Full Funding Analysis on page 8. The average annual contribution is based on an average of Full Funding contributions over 30 Years. The third funding scenario, entitled Baseline Funding, is based on keeping the Reserve Fund Balance above a threshold value of $0. This funding scenario entails substantial risk since any change in replacement costs or replacement timeframes could potentially cause the Reserve Fund Balance to drop below zero dollars in a given year.. The Full Funding Annual Contribution for the year beginning 205 would be $20,302. This amount is taken directly from the Summary of Replacement Reserve Needs on page 3, and is the amount used in the cash flow projection. 2. Projections of the Full Funding Annual Contribution amount for Years 206 through 2044 vary from year to year, but generally decrease over time to an amount of $84,77 in the final year of the projection. 3. The Full Funding Average Annual Contribution is $02,52. The average annual contribution is based on an average of Full Funding contributions over 30 Years. 4. The Annual Contribution for the 30 year time frame, when applying Baseline Funding, is $98,297. If the Association implements Baseline Funding, it is imperative that the Reserve Study be updated annually to minimize the danger of creating a deficit in the reserve fund. Kipcon Texas P a g e

20 The column entitled Reserve Fund Balance under Baseline Funding shows the projected reserve fund amounts over the 30 year period. The Reserve Fund Balance Baseline Funding is represented by the second line on the Cash Flow Graph on page 9 and is calculated in the same manner as the Reserve Fund Balance Full Funding, except that the Annual Contribution is used instead of the Average Annual Contribution. Kipcon Texas P a g e

21 Thirty Year Cash Flow Chart Component Schedule Summary of Replacement Reserve Needs Effective Date: CURRENT FUNDING ANALYSIS FULL FUNDING ANALYSIS BASELINE FUNDING ANALYSIS YEAR BEGINNING ANNUAL EXPENDITURE ANNUAL RESERVE FUND CONTRIBUTION BALANCE REQUIRED ANNUAL CONTRIBUTION AVERAGE REQUIRED ANNUAL CONTRIBUTION RESERVE FUND BALANCE ANNUAL CONTRIBUTION RESERVE FUND BALANCE Pooling Factor: 00.00% 95.89% Beginning Balance: $0 $0 $0 205 $0 $0 $0 $20,302 $02,52 $02,52 $98,297 $98, $0 $0 $0 $22,08 $02,52 $205,023 $98,297 $96, $6,42 $0 -$6,42 $27,039 $02,52 $29,4 $98,297 $278, $0 $0 -$6,42 $8,790 $02,52 $393,626 $98,297 $376, $8,205 $0 -$24,625 $2,786 $02,52 $487,933 $98,297 $466, $0 $0 -$24,625 $2,87 $02,52 $590,444 $98,297 $565, $0 $0 -$24,625 $26,875 $02,52 $692,956 $98,297 $663, $94,253 $0 -$28,878 $44,69 $02,52 $60,25 $98,297 $567, $0 $0 -$28,878 $00,66 $02,52 $703,726 $98,297 $665, $0 $0 -$28,878 $00,33 $02,52 $806,238 $98,297 $764, $0 $0 -$28,878 $00,603 $02,52 $908,750 $98,297 $862, $0 $0 -$28,878 $0,34 $02,52 $,0,26 $98,297 $960, $34,309 $0 -$253,87 $02,684 $02,52 $,079,464 $98,297 $,024, $0 $0 -$253,87 $99,48 $02,52 $,8,976 $98,297 $,22, $0 $0 -$253,87 $99,752 $02,52 $,284,488 $98,297 $,22, $0 $0 -$253,87 $00,372 $02,52 $,386,999 $98,297 $,39, $8,205 $0 -$26,392 $0,777 $02,52 $,48,306 $98,297 $,409, $360,72 $0 -$622,03 $05,568 $02,52 $,223,06 $98,297 $,47, $0 $0 -$622,03 $92,400 $02,52 $,325,68 $98,297 $,245, $0 $0 -$622,03 $92,399 $02,52 $,428,30 $98,297 $,343, $0 $0 -$622,03 $92,464 $02,52 $,530,64 $98,297 $,442, $0 $0 -$622,03 $92,698 $02,52 $,633,53 $98,297 $,540, $930,677 $0 -$,552,780 $93,646 $02,52 $804,988 $98,297 $708, $0 $0 -$,552,780 $86,883 $02,52 $907,499 $98,297 $806, $904,640 $0 -$2,457,420 $86,932 $02,52 $05,37 $98,297 $ $0 $0 -$2,457,420 $84,774 $02,52 $207,882 $98,297 $98, $0 $0 -$2,457,420 $84,773 $02,52 $30,394 $98,297 $96, $0 $0 -$2,457,420 $84,773 $02,52 $42,906 $98,297 $294, $8,205 $0 -$2,465,625 $84,775 $02,52 $507,23 $98,297 $384, $0 $0 -$2,465,625 $84,77 $02,52 $609,724 $98,297 $483,279 TOTAL $0 $3,075,349 $3,075,349 $2,948,904 Kipcon Texas P a g e

22 Thirty Year Projection Graph $2,000, Year Cashflow Analysis $,500,000 $,000,000 $500,000 $0 -$500,000 -$,000,000 -$,500,000 -$2,000,000 -$2,500,000 -$3,000,000 Reserve Fund Balance - Full Funding Reserve Fund Balance - Current Funding Reserve Fund Balance - Baseline Funding Kipcon Texas P a g e

23 Expenditures Graph By Year Expenditures By Year $,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $00,000 $0 Common Areas Community Pool Kipcon Texas P a g e

24 Expenditures List By Year 205: 2030: 206: 203: Gate Operators, Pump and Filter Systems 207: Landscaping, Furniture, Restrooms 2032: Metal Gates, Decorative Stone Columns, Decorative Metal Fence, Street Lights, Street Signs, Perimeter Brick Fence, Pedestrian Bridge, Vehicular Bridge, Perimeter Metal Fence, Overhead Lights, Asphalt Shingle Replace, Coping 208: 2033: 209: Gate Operators, Pump and Filter Systems 2034: 2020: 2035: 202: 2036: 2022: Landscape Lights, Security Monitoring System, Vehicle Access Call Box, Fountains, Fluorescent Lights, Perimeter Wood Fence, Plaster, Drinking Fountain 2023: 2038: 2037: Concrete Sidewalks (0%), Concrete Curbs (0%), Concrete Bulkhead (0%), Landscaping, Landscape Lights, Security Monitoring System, Vehicle Access Call Box, Fountains, Fluorescent Lights, Perimeter Wood Fence, Decorative Guardrail Wall, Concrete Parking Lot, Concrete Curb, Concrete Slab, Brick Repointing, Concrete Deck (0%), Plaster, Furniture, Restrooms, Drinking Fountain 2024: 2039: Concrete Streets (0%) 2025: 2040: 2026: 204: 2027: Landscaping, Brick Pavers, Community Signage, Furniture, Restrooms 2042: 2028: 2043: Gate Operators, Pump and Filter Systems 2029: 2044: Kipcon Texas P a g e

25 Disclosures In accordance with the National Reserve Study Standards of the Community Associations Institute, the following disclosures are provided regarding the preparation of this Reserve Study. General. Kipcon Texas is not aware of any involvement with the which could result in any actual or perceived conflicts of interest which would influence the preparation of this study. Physical Analysis. The on-site observations which were performed in the preparation of this study were cursory in nature and only included the accessible common and limited common elements. In addition, no field measurements were taken to confirm or provide quantities unless specifically outlined within this report. Financial Analysis. Unless specifically noted within this report, Kipcon Texas has not utilized any assumptions in regard to interest, inflation, taxes, or any other outside economic factors. Personnel Credentials. This study has been prepared under the direction of Mitchell H. Frumkin, P.E., R.S., C.G.P. Comprehensive curriculum vitae can be provided on request. Completeness. Kipcon Texas is not aware of any material issues, which if not disclosed, would cause a distortion of the Association's situation. Reliance on Client Data. Information provided by the official representative of the Association regarding financial, physical, quantity, or historical issues will be deemed reliable by Kipcon Texas. Scope. This Reserve Study will be a reflection of information provided to Kipcon Texas and assembled for the Association s use, not for the purpose of performing an audit, quality/forensic analyses, or background checks of historical records. Reserve Balance. The actual or projected total presented in this Reserve Study is based upon the information provided and was not audited. Reserve Projects. Information provided to Kipcon Texas about the reserve project will be considered reliable. Any on-site inspection should not be considered a project audit or quality inspection. Reserve Study Updates. The items which are included in the Component Inventory are based on information provided in the report being updated, and are reliant on the validity of the previously developed Reserve Study. The quantities have not been confirmed by Kipcon Texas unless specifically noted. The quantities in the previously developed Reserve Study have been considered to be deemed accurate by the Association. No components have been added to or removed from the most recent Component Inventory unless specifically indicated in the Notes section of this report. Kipcon Texas P a g e

26 Glossary of Abbreviations Abbreviation Definition Abbreviation Definition Avg. Average Lg. Long, Length B.F. Board Feet L.S. Lump Sum Bit/Bitum. Bituminous Maint. Maintenance Bldg. Building Mat., Mat l. Material Brk. Brick Max. Maximum Calc. Calculated MBF Thousand Board Feet C.C.F. Hundred Cubic Feet M.C.F. Thousand Cubic Feet C.F. Cubic Feet Min. Minimum C.L.F. Hundred Lineal Feet Misc. Miscellaneous Col. Column M.L.F. Thousand Lineal Feet Conc. Concrete M.S.F Thousand Square Feet Cont. Continuous, Continued M.S.Y. Thousand Square Yards C.S.F. Hundred Square Feet NA Not Available/Applicable Cu. Ft. Cubic Feet No. Number C.Y. Cubic Yard O.C. On Center DHW Domestic Hot Water P.E. Professional Engineer Diam. Diameter Ply. Plywood Ea. Each Pr. Pair Est. Estimated PVC Polyvinyl Chloride Ext. Exterior Pvmt. Pavement Fig. Figure Quan., Qty. Quantity Fin. Finished R.C.P. Reinforced Concrete Pipe Fixt. Fixture Reinf. Reinforced Flr. Floor Req d Required FRP Fiberglass Reinforced Plastic Sch., Sched. Schedule Ft. Foot, Feet S.F. Square Feet Galv. Galvanized Sq. Square Ht. Height Std. Standard Htrs. Heaters S.Y. Square Yards HVAC Heating, Ventilation and AC Sys. System HW Hot Water T & G Tongue and Groove In. Inch Th., Thk. Thick Int. Interior Tot. Total Inst. Installation Unfin. Unfinished Insul. Insulation V.C.T. Vinyl Composition Tile lb. Pound Vent. Ventilator L.F. Lineal Feet Yd. Yard Kipcon Texas P a g e

27 Bibliography ) Reserve Funds: How and Why Community Associations Invest Assets Edited by Mitchell H. Frumkin, P.E., M.B.A., R.S. and Nico F. March, C.F.M. Community Associations Institute Second Edition ) National Reserve Study Standards by the Community Associations Institute Dated ) Common Interest Realty Association Audit and Accounting Guide by the American Institute of Certified Public Accountants Dated ) Life Cycle Cost Analysis by the American Institute of Architects Dated 977 5) Means Open Shop Building Construction Cost Data by R.S. Means Company, Inc. Dated 204 6) Means Site Work and Landscaping Cost Data by R.S. Means Company, Inc. Dated 204 7) Means Mechanical Cost Data by R. S. Means Company, Inc. Dated 204 8) Means Electrical Cost Data by R. S. Means Company, Inc. Dated 204 Kipcon Texas P a g e