Reserve Study Transmittal Letter

Transcription

1 Reserve Study Transmittal Letter Date: November 13, 2013 To: Rob Ross, Gateview From: Richard Avelar & Associates (RA&A) Re: Gateview; Update w/ Site Visit Review Attached, please find the reserve study for Gateview. To assist in your understanding of the study, and to highlight key information you may need quickly, we have listed below some of the important information contained in the study. At RA&A our goal is to bring clarity from complexity, so should you have any questions, please do not hesitate to contact us anytime. 1. Where do I find the recommended reserve contribution for next year's budget? This is found in Section III, 30 Year Reserve Funding Plan, Cash Flow Method. $825,693 is the annual amount. Directly under the annual amount is the amount per ownership interest, per month, or other period, as applicable. $ For any other funding related issues, if any, see Section III, 30 Year Reserve Funding Plan, Cash Flow Method. 2. Where do I find the status of the reserve fund, based on the Percent Funded calculation? This is found for the 30-year term of the study in Section IV, 30 Year Reserve Funding Plan, Including Fully Funded Balance and % Funded. For the year for which the study was prepared, 2014, the Association is 24.3% funded. Based on the 30 year cash flow projection, the Association's reserves appear adequately funded as the reserve fund ending balances remain positive throughout the replacement of all major components during the next 30 years. California statute imposes no reserve funding level requirements nor does it address funding level adequacy, and although one or more of the reserve fund percentages expressed in this report may be less than one hundred percent, those percentages do not necessarily indicate that the Association's reserves are inadequately funded. 3. Where do I find the assumptions for interest and inflation factors? While this information is in various places in the study, it can always be found in Section III, 30 Year Reserve Funding Plan, Cash Flow Method. For this study the assumption is 1.00% for the interest rate and 2.50% for the inflation factor. Please be advised these rates estimate the values that will stand the test of time over the 30-year term of the study, not simply only next year. 12usvv Harrison St., #103 / Oakland, CA Office (510) Fax (510) Thess@Ravelar /

2 November 13, Reserve Study Page Two 4. What pages from the reserve study get mailed to the members (homeowners)? Please see the last section of the reserve study, "Member Distribution Materials." These are the last six pages (or more) of the study which can be removed, and copied, for distribution to the membership with the budget packet. This packet includes all state mandated disclosures related to the reserves and the reserve study. This section of the study is a stand-alone packet with it's own cover and table of contents. 5. What are the next steps? This study meets the CA Civil Code Requirements for a site visit study every three years. The next site visit study will be due in three years. For the intervening two years, RA&A proposes doing an Update Without Site Visit Study during the next two years at a nominal cost which will include the preparation of a reserve study and required disclosures including the California Assessment and Reserve Funding Disclosure, which under law, must be presented to the association members each year. Please read the two helpful sections entitled Glossary and Notes to the Auditor. The glossary explains common reserve study terms as well as RA&A specific terminology. The Notes to the Auditor while intended to assist the auditor, has useful information for the casual reader on how year zero, (2013) the current fiscal year is dealt with in the study. Thank you for the opportunity to work with the Gateview on this study. 12usvv4.4.73

3 RESERVE STUDY Update w/ Site Visit Review Gateview Published - November 13, 2013 Richard Avelar & Associates 318 Harrison St., #103 / Oakland, CA Office (510) Fax (510) Thess@Ravelar / Richard Avelar & Associates /13/ usvv :trh. Version 11/13/2013 3:32:58 PM

4 Table of Contents Section Report Page Section I: of Association Reserves 1 Section II: 30 Year Expense Forecast Detailed 5 Section III: 30 Year Reserve Funding Plan Cash Flow Method {c} 19 Section III-a: 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances Chart 20 Section IV: 30 Year Reserve Funding Plan Fully Funded Balance and % Funded 21 Section IV-a: 30 Year Reserve Funding Plan Cash Flow Method - Percent Funded Chart 22 Section V: Reserve Fund Balance Forecast Component Method 23 Section VI: Component Listing Included Components 33 Section VII: Tabular Component Listing Included Components 64 Section VII-a: Expenditures by Year - Next 3 Years 70 Section X: Auditor Notes 74 Section X-a: Supplementary Information for Auditor Component Method Section XI: Glossary Reserve Study Terms 82 Addendum: Homeowner Distribution Materials See Page ii for Details /13/ usvv :trh. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates 2013 TOC - i

5 Homeowner Distribution Materials Section The following Reserve Study sections should be provided to each Homeowner. Report California: Homeowner Assessment and Reserve Funding Disclosure Section III: 30 Year Reserve Funding Plan [Civil Code (b)] Cash Flow Method {c} /13/ usvv :trh. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates 2013 TOC - ii

6 Section I Update w/ Site Visit Review Gateview Published - November 13, 2013 Reserve Study A Reserve Study was conducted of Gateview (the "Association"). An Update With Site- Visit Review is a reserve study update in which the following tasks are performed: development of a reserve component inventory (verification only, not quantification); condition assessment based upon on-site visual observation; life and valuation estimates; fund status; and a funding plan. Gateview is a Planned Development with a total of 487 Units. Physical Inspection Richard Avelar & Associates ("RA&A") conducted a physical inspection of the Association. The inspection encompassed those major components that the Association is required to maintain. For this study components are determined to be major components if: 1. As of the date of the study, they have a remaining useful life of less than 30 years, and a value greater than $1, Such additional components, if any, determined by the Board of Directors. During the inspection, RA&A utilized the services of our own construction cost estimator. In addition, independent contractors were retained to render opinions on selected components as indicated in Section VI, Included Component Listing. Supplemental information to the physical inspection may have been obtained from the following sources: 1. Project plans where available. 2. Maintenance records of the reserve components where available. 3. Association board members, management and staff. of Reserves For the first year of the Reserve Study, the reserve contribution is based upon the existing budget unless otherwise noted in Section III, Reserve Funding Plan. In addition RA&A relied on the Association to provide an accurate Beginning Reserve Balance /13/ usvv :trh. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates Harrison St., #103 / Oakland, CA Office (510) Fax (510) Thess@Ravelar /

7 Reserve Study - Update w/ Site Visit Review Gateview 2 The status of the Association's reserves, as reflected in the following Reserve Study, is as follows: 1. The Expenditure Forecast of the following Reserve Study identifies the major components which the Association is obligated to repair, replace, restore or maintain, as determined in accordance with the criteria specified above, and specifies for each such component: a. Its current estimated replacement cost; b. Its estimated useful life; and c. Its estimated remaining useful life. 2. It is estimated that the total cash reserves necessary to repair, replace, restore or maintain such major components (in the aggregate) during and at the end of their first remaining useful life is $7,394,943. [For purposes of this calculation, necessary is defined as the Fully Funded Balance (FFB) (Component Current Cost X Effective Age / Useful, including a provision for interest and inflation in future years.)] 3. The current amount of accumulated cash reserves actually set aside to repair, replace, restore, or maintain such major components as of the fiscal year ending December 31, 2014 is estimated to be $1,793,602, constituting 24.3% of the total expenditures anticipated for all such major components through their first end of useful life replacement. 4. Based upon the schedule of annual reserve contributions necessary to defray the cost of repairing, replacing, restoring or maintaining such major components in the years such expenditures are estimated to be required, it is estimated that annual reserve contributions in the initial amount of $825,693 [$ per Unit per month (average)] for the fiscal year ending December 31, 2014 (the first full fiscal year following first distribution of this report) will be necessary in order to meet all such reserve expenditures when they are projected to come due. Funding Assessment Based on the 30 year cash flow projection, the Association's reserves appear adequately funded as the reserve fund ending balances remain positive throughout the replacement of all major components during the next 30 years. California statute imposes no reserve funding level requirements nor does it address funding level adequacy, and although one or more of the reserve fund percentages expressed in this report may be less than one hundred percent, those percentages do not necessarily indicate that the Association's reserves are inadequately funded. Percent Funded Status Based on paragraphs 1-3 above, the Association is 24.3% funded. The following scale can be used as a measure to determine the Association s financial picture whereas the lower the percentage, the higher the likelihood of the Association requiring a special assessment, or other large increases to the reserve contribution in the future. Percent Funded Poor % Fair % Strong %

8 Reserve Study - Update w/ Site Visit Review Gateview 3 Methodology The above recommended reserve contribution for the next fiscal year (and future fiscal years as outlined in Section III, Reserve Fund Balance Forecast) was developed using the cash flow method. This is a method of developing a reserve funding plan where the contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved. Funding Goals The funding goal employed for Gateview is Threshold Funding: Establishing a Reserve funding goal of keeping the Reserve balance above a specified dollar or Percent Funded amount. Depending on the threshold, this may be more or less conservative than Fully Funding. Limitations The intention of the Reserve Study is to forecast the Association's ability to repair or replace major components as they wear out in future years. The Reserve Study is not an engineering report, and no destructive testing was performed. The costs outlined in the study are for budgetary and planning purposes only, and actual bid costs would depend upon the defined scope of work at the time repairs are made. Also, any latent defects are excluded from this report. Statutory Disclosures Compliance The Reserve Study was conducted pursuant to Sections 1365 and (d) of the California Civil Code. Open Meeting California Civil Code Section says (in part): The (Reserve Funding) plan shall be adopted by the board of directors at an open meeting before the membership of the association as described in Section If the board of directors determines that an assessment increase is necessary to fund the reserve funding plan, any increase shall be approved in a separate action of the board that is consistent with the procedure described in Section General: Supplemental Disclosures RA&A has no other involvement(s) with the Association which could result in actual or perceived conflicts of interest.

9 Reserve Study - Update w/ Site Visit Review Gateview 4 Personnel Credentials: RA&A is an Architectural Firm and a licensed general building contractor in California. Ken Kosloff, PRA, RS, Principal, holds the Professional Reserve Analyst designation from The Association of Reserve Analysts along with the Reserve Specialist designation from the Community Associations Institute. Completeness: RA&A has found no 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 RA&A. Scope: This Reserve Study is a reflection of information provided to RA&A and assembled for the Association's use, not for the purpose of performing an audit, quality/forensic analysis, health and safety inspection, or background checks of historical records. Reserve Balance: The actual beginning reserve fund balance in this Reserve Study is based upon information provided and was not audited. Reserve Projects: Information provided about reserve projects will be considered reliable. Any on-site inspection should not be considered a project audit, quality inspection, or health and safety review. Component Quantities: The Association warrants the previously developed component quantities are accurate and reliable. Richard Avelar & Associates

10 Section II Gateview 30 Year Expense Forecast - Detailed Current Replacement Useful / Reserve Component Cost Remaining Paint/Caulk/Waterproof/Refinish Waterproofing / Paint 389,787 Sq. Ft. Acrylic Paint Building Exterior[nr:1] Waterproofing / Paint 389,787 Sq. Ft. Elastomeric Paint Bldg Exterior 550, , , Window Re-Caulking 200, , , Waterproofing Plaza Entry Paver & Area Drain Repair Plaza Waterproofing - Leak Detection [nr:1] Plaza Waterproofing - Leak Repairs [nr:1] Building Exterior Paint Removal (strip) [nr:1] Total Paint/Caulk/Waterproof/Refinish Mailboxes Mailboxes D/F Building Mailboxes C/J Building Mailboxes A/B Building 250, ,923 5, ,384 38, ,029 1,076, ,484,506 2,669,967 Total Mailboxes 32, Mechanical Equipment - Domestic Water Valves Main Floor Isolation Valve Boilers Boiler #2 Replace Boilers Boiler #3 Replace Boilers Boiler #1 Replace 768,750 5,384 42, ,923 1,760,208 12, ,361 10, ,801 10, ,801 16, ,971 19,201 21, , , , Boiler Insulation 4, , , Boiler Fencing 3, ,677 40, Booster Pumps Circulation Pumps 4 (50%) 25, ,358 1, ,505 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

11 Current Replacement Useful / Gateview 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Circulation Pumps 4 (50%) Backflow Preventor Plaza Backflow Preventor Pierce Leak Repair/Pipe Replace Interior Building Plumbing Survey/Inspection Report (33%)[nr:1] Total Mechanical Equipment - Domestic Water 1, ,879 20, , ,538 30, ,519 35,661 40,347 5, , , Mechanical Equipment - HVAC / Ventilation Hydronic System Specifications Total Mechanical Equipment - HVAC / Ventilation Mechanical Equipment - Trash Trash Chutes (Repair) Chute/Misc. Door Repair (5%) 5, , Trash Compactor Replace 60, Trash/Recycle Bins 10 Total Mechanical Equipment - Trash 5,519 52,167 93,286 29,863 54,862 62,071 1,879 3, ,904 4,417 4,997 20, ,774 83, Mechanical Equip. - Fire Safety/Alarm System Main Pumps 3 Replace 3,904 4,417 23,774 4,997 37, , Sprinkler System Repair 8, ,272 10,490 11, Miscellaneous System Repair/Retrofit Total Mechanical Equip. - Fire Safety/Alarm System 14, , Mechanical Equipment - Security System Entry Access System [se:2] Surveillance Cameras (18%) Surveillance Cameras (40.9%) Surveillance Cameras (40.9%) 136, ,383 70,092 35, ,000 78, ,462 78, , Backup Batteries 3, ,231 50,282 10,490 11,869 Total Mechanical Equipment - Security System 331, Mechanical Equipment - Garage Ventilation Ventilation Fans 2 Total Mechanical Equipment - Garage Ventilation 106, ,555 82,474 8, ,113 8,938 10,113 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

12 Current Replacement Useful / Gateview 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Mechanical Equip. - Safety System Central Panel 405, , Central Panel 1,014, ,040, Keltron System 36, , Smoke Detectors Consultant Safety/Fire/Comm/Security[nr:1] Consultant Safety/Fire/Comm/Security[nr:1] Total Mechanical Equip. - Safety System 26, ,239 36,148 78, ,971 78, ,945 1,641, Mechanical Equip. - Safety Emergency Syst Generator Replacement Fuel Tank (Generator) Replacement Fire Pump Indicator Panel (Generator) [se:2] Total Mechanical Equip. - Safety Emergency Syst Paving Repairs 6,360 Sq. Ft. Repair/Seal/Re-Stripe Asphalt: Resurface 6,360 Sq. Ft. 50, , , ,817 1,121,109 28,239 49,242 36,148 6, ,338 3,422 3,777 3,871 4,273 4, ,388 Total Paving 32, Concrete (Partial Replacement) 105,575 3,338 3,422 3,777 3,871 4,273 4,380 5, ,265 5,957 6,740 27, ,265 5,957 6, Walkways/Drives 5, ,519 5,798 6,092 6,400 6,724 7,065 7, Pool Deck Re-Coat Total Concrete (Partial Replacement) Waterproofing Planter Areas Repair 3,000 Sq. Ft. Atrium's (5.6%) Garage Slab Leak Inspection [nr:1] Garage Slab Leak Repair [nr:1] 30, ,307 35,384 Total Waterproofing 62, Painting: Interior Common Areas / Stairwells 216,782 Sq. Ft. Total Painting: Interior 200,000 10, , ,688 45, ,125 5,519 38,105 6,092 6,400 6,724 7,065 7,423 53, , , , , , Structural Repairs/Replacement Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

13 Current Replacement Useful / Gateview 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Miscellaneous F Building Emergency Exit[nr:1] Roofing Total Structural Repairs/Replacement Roof Deck Replacement AB Plaza Entry 8, ,713 8, Roof Drainage 1, Low Slope: Tar & Gravel A Bldg Low Slope: Tar & Gravel B Bldg Low Slope:Duro-Last C Bldg Low Slope:Duro-Last D Bldg Low Slope: Tar & Gravel E Bldg Low Slope:Duro-Last F Bldg Low Slope:Duro-Last J Bldg Low Slope: Tar & Gravel 2,000 Sq. Ft. Clubhouse 8,713 25, , , , , , , , , , , , , ,840 86, ,473 21, , Roofing: Inspections & Repairs 5, ,388 7,052 7,784 Total Roofing 1,876,810 22,402 6,388 1,046,780 7, , ,656 7,784 36, Re-Model / Upgrade Security Office [nr:1] Laundry Room 2 Total Re-Model / Upgrade 24, Gate Equipment / Entry System Roll-Up Gate 6 Garbage Room/B Dock Pedestrian Gate A dock Auto Gate 3 Driv. Assy Auto Gate 3 G-1, G-2 Res, G-2 Vis 15, ,375 9, ,521 21, ,375 11,521 5, ,241 12, ,438 14,073 15,922 16, , Security Gate 5, , Safety Loops 2 Total Gate Equipment / Entry System Pool Re-plaster 984 Sq. Ft. 8, ,292 68,652 20,730 14,073 19,681 15,922 14,483 30, ,791 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

14 Current Replacement Useful / Gateview 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Equipment Repair Miscellaneous 3, , Filter 1, ,726 2, Chlorinator 3, ,931 4,447 5, Pumps 2 Solar Pumps 1, , Heater 9, , Pool Cover 2, ,951 3, Miscellaneous Skimmer & Lights Spa Repairs Replacement Heater Heater & Pumps Total Pool 57,381 Total Spa 22, Recreation / Fitness Equipment 5, ,560 21, ,589 3,931 1,726 37,742 6,367 6,560 4,291 11,934 5,031 3,508 2, ,280 22,589 1, Sauna: Heaters 1, ,937 2,086 2,247 2,419 2, Sauna: Wood Replacement Fund Interior Miscellaneous Exercise Equipment (10%) Total Recreation / Fitness Equipment Tennis Court 6, ,873 3, ,643 3,923 4,224 4,549 4,899 11,905 5,580 6,009 6,471 7,873 6,968 7, Seal Coat 6, ,461 7,310 8, Resurface 25, Total Tennis Court 31,000 6,461 7,310 8, Landscaping Irrigation North Plaza, Hillside (13.7%) Irrigation Driveway, Pierce St. (28%) Irrigation South Plaza (28%) Irrigation Plaza Lawns 13, ,500 27, ,990 27, ,715 30, , Plants 25, ,000 32, Plants 25, ,266 33,622 Total Landscaping 148,686 38,500 55,256 29,715 33,114 32,002 33, Fencing (Repair/Replace) Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

15 Current Replacement Useful / Gateview 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Chain Link 950 Lin. Ft Wrought Iron Pool Fence Wrought Iron All W/I Fencing and Railings Miscellaneous Patio Fence Replacement Fund Miscellaneous 728 Lin. Ft. Tennis court fence Total Fencing (Repair/Replace) 27, , , ,384 5,657 5,943 6,244 6,560 6,893 7,241 7,608 50, , , , Office Equipment / Furnishings Carpet Carpet/Paint 5,384 5,657 5,943 6,244 6,560 6,893 37,976 7,608 6, ,623 8, Furnishings 4, ,978 6, Equipment 5, ,378 6,869 7,397 7,966 Total Office Equipment / Furnishings Misc. Mechanical Equipment Miscellaneous Tomcat 250 Floor Cleaner Total Misc. Mechanical Equipment Elevator Cab Refurbish / Upgrade 7 Traction Elevators (50%) Cab Refurbish / Upgrade 7 Traction Elevators (50%) Cab Refurbish / Upgrade Hydraulic Garage Elevator System Modernization Traction Elevators System Modernization Traction Elevators System Modernization Garage Hydraulic Elevator System Modernization B Dock Freight Elevator 17,123 6,623 4,978 6,378 6,869 7,397 8,478 7,966 6,695 10, ,769 13,785 10,000 Total Elevator 1,626,348 87, ,500 85, ,500 15, , , , Common Area Furnishings / Equipment Miscellaneous Microphones 828, , , , , , , , ,823 10,769 13,785 2, , Lobby 9, , Pool/Patio Furnishings 3, ,436 3,887 4,398 Total Common Area Furnishings / Equipment Electrical 15,236 3,436 3,887 11,302 2,566 4,398 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

16 Current Replacement Useful / Gateview 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Building Exterior Lighting Ext. Bldg including Pierce Street (25%) Corridor Lighting Interior 22, ,456 26,538 30,026 92, , Garage Lighting 100, , , Lighting Plaza Area Lighting East Hillside Lighting Driveway Miscellaneous Atrium Lighting Miscellaneous Lobby Chandeliers Flooring Total Electrical 334, Carpeting 6,150 Sq. Yds. Carpet corridor (50%) Carpeting 6,150 Sq. Yds. Carpet corridor (50%) Tile Bathrooms Miscellaneous Tile & Vinyl Miscellaneous Carpet Lobby Total Flooring 381, Wallcoverings Sheet Metal 3 Garbage Rooms Total Wallcoverings 7, Miscellaneous 60, ,000 19, ,000 30, ,519 3, ,641 6, ,150 79,000 29,606 31, ,689 26, ,972 4,641 30, , , , , , , ,482 5, , ,135 24,494 6, , , ,739 19,135 7, , ,482 24,494 7, , Structural Repairs 678, , Utility Cart 7, , General Renovations (20%) Miscellaneous 2013 Improvements[nr:1] 8,486 36, ,530 39,430 41,426 43,523 45,726 48,041 50,473 90, , Reserve Study (3-Year Update) 4, ,146 4,465 4,808 5,178 5,576 Total Miscellaneous 816,524 Total Expenditures 2.50% 94,146 37,530 51,780 41,426 4,808 43,523 50,904 48, ,004 50,473 1,389,379 3,536, , , ,525 1,464, , , , , , ,061 1,364,877 2,053,939 70,957 Total Current Replacement Cost 11,372,634 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

17 30 Year Expense Forecast - Detailed Reserve Component Paint/Caulk/Waterproof/Refinish Waterproofing / Paint 389,787 Sq. Ft. Acrylic Paint Building Exterior[nr:1] Waterproofing / Paint 389,787 Sq. Ft. Elastomeric Paint Bldg Exterior 1,019, Window Re-Caulking 370, Waterproofing Plaza Entry Paver & Area Drain Repair Plaza Waterproofing - Leak Detection [nr:1] Plaza Waterproofing - Leak Repairs [nr:1] Building Exterior Paint Removal (strip) [nr:1] Total Paint/Caulk/Waterproof/Refinish Mailboxes Mailboxes D/F Building Mailboxes C/J Building Mailboxes A/B Building Total Mailboxes 371, , ,126 1,390, , Mechanical Equipment - Domestic Water Valves Main Floor Isolation Valve Boilers Boiler #2 Replace Boilers Boiler #3 Replace Boilers Boiler #1 Replace 258,502 24,579 27,809 31, ,362 46, Boiler Insulation 7, Boiler Fencing 6, , Booster Pumps Circulation Pumps 4 (50%) Circulation Pumps 4 (50%) Backflow Preventor Plaza Backflow Preventor Pierce Leak Repair/Pipe Replace Interior Building 46,468 2,179 33,592 45,649 51,647 58,434 2,722 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

18 30 Year Expense Forecast - Detailed Reserve Component Plumbing Survey/Inspection Report (33%)[nr:1] Total Mechanical Equipment - Domestic Water Mechanical Equipment - HVAC / Ventilation Hydronic System Specifications Total Mechanical Equipment - HVAC / Ventilation Mechanical Equipment - Trash Trash Chutes (Repair) Chute/Misc. Door Repair (5%) 5, Trash Compactor Replace 86, Trash/Recycle Bins 10 Total Mechanical Equipment - Trash Mechanical Equip. - Fire Safety/Alarm System Main Pumps 3 Replace 258,502 70, ,014 2,179 33,592 85, ,567 46,468 89,898 2,722 9,162 9,162 6,397 7,237 30,432 38,956 92,552 30,432 6,397 7,237 38, Sprinkler System Repair 13,428 15,193 17, Miscellaneous System Repair/Retrofit Total Mechanical Equip. - Fire Safety/Alarm System Mechanical Equipment - Security System Entry Access System [se:2] Surveillance Cameras (18%) Surveillance Cameras (40.9%) Surveillance Cameras (40.9%) 99, Backup Batteries 4, ,514 29,068 13,428 15,193 46,257 57, , ,143 Total Mechanical Equipment - Security System Mechanical Equipment - Garage Ventilation Ventilation Fans 2 Total Mechanical Equipment - Garage Ventilation Mechanical Equip. - Safety System Central Panel 103, ,514 57, , ,143 12,945 16,571 12,945 16, Central Panel Keltron System Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

19 30 Year Expense Forecast - Detailed Reserve Component Smoke Detectors Consultant Safety/Fire/Comm/Security[nr:1] Consultant Safety/Fire/Comm/Security[nr:1] Total Mechanical Equip. - Safety System Mechanical Equip. - Safety Emergency Syst Generator Replacement Fuel Tank (Generator) Replacement Fire Pump Indicator Panel (Generator) [se:2] Total Mechanical Equip. - Safety Emergency Syst Paving Repairs 6,360 Sq. Ft. Repair/Seal/Re-Stripe Asphalt: Resurface 6,360 Sq. Ft. Total Paving Concrete (Partial Replacement) 80,913 46,272 46,272 4,835 4,956 5,470 5,607 6,189 6,344 4,835 85,869 5,470 5,607 6,189 6,344 7,626 8,628 9,761 40,670 48,295 8,628 9, Walkways/Drives 7,798 8,193 8,608 9,044 9,501 9,982 10,488 11, Pool Deck Re-Coat Total Concrete (Partial Replacement) Waterproofing Planter Areas Repair 3,000 Sq. Ft. Atrium's (5.6%) Garage Slab Leak Inspection [nr:1] Garage Slab Leak Repair [nr:1] Total Waterproofing Painting: Interior Common Areas / Stairwells 216,782 Sq. Ft. Total Painting: Interior Structural Repairs/Replacement Miscellaneous F Building Emergency Exit[nr:1] Roofing Total Structural Repairs/Replacement Roof Deck Replacement AB Plaza Entry 46,790 7,798 8,193 46,790 8,608 9,044 9,501 9,982 10,488 11,019 15,596 15, , , , ,299 52,596 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

20 30 Year Expense Forecast - Detailed Reserve Component Roof Drainage 2, Low Slope: Tar & Gravel A Bldg Low Slope: Tar & Gravel B Bldg Low Slope:Duro-Last C Bldg Low Slope:Duro-Last D Bldg Low Slope: Tar & Gravel E Bldg Low Slope:Duro-Last F Bldg Low Slope:Duro-Last J Bldg Low Slope: Tar & Gravel 2,000 Sq. Ft. Clubhouse 32, Roofing: Inspections & Repairs 8,592 9,484 10,468 11, , , , , , , ,756 Total Roofing Re-Model / Upgrade Security Office [nr:1] Laundry Room 2 Total Re-Model / Upgrade 8,592 32,445 9,484 1,516, ,052 1,035,036 11,555 55,376 16,685 16, Gate Equipment / Entry System Roll-Up Gate 6 Garbage Room/B Dock Pedestrian Gate A dock Auto Gate 3 Driv. Assy Auto Gate 3 G-1, G-2 Res, G-2 Vis 30,414 18,014 20,381 23,060 10,488 25,194 32, Security Gate 10, Safety Loops 2 Total Gate Equipment / Entry System Pool Re-plaster 984 Sq. Ft Equipment Repair Miscellaneous 48,428 25,194 20,381 38,433 20,976 32,250 15,373 44,535 57,009 5,492 7, Filter 2, Chlorinator 5,693 6,441 7, Pumps 2 Solar Pumps 2,458 3,146 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

21 30 Year Expense Forecast - Detailed Reserve Component Heater 16, Pool Cover 4,170 4, Miscellaneous Skimmer & Lights Spa Repairs Replacement Heater Heater & Pumps Total Pool Total Spa 8,398 10,750 44,535 8,150 8,398 5,492 4,170 6,441 16,050 2,828 57,009 15,390 10,750 7,031 37,014 1,721 37,014 1, Recreation / Fitness Equipment Sauna: Heaters 2,806 3,021 3,254 3,504 3, Sauna: Wood Replacement Fund Interior Miscellaneous Exercise Equipment (10%) Total Recreation / Fitness Equipment Tennis Court 10,077 12,900 5,276 5,681 6,118 6,588 7,095 8,081 10,077 8,703 9,372 10,092 23, Seal Coat 9,358 10,588 11, Resurface 44,115 Total Tennis Court 9,358 54,703 11, Landscaping Irrigation North Plaza, Hillside (13.7%) Irrigation Driveway, Pierce St. (28%) Irrigation South Plaza (28%) Irrigation Plaza Lawns Plants 40, Plants 43,039 Total Landscaping Fencing (Repair/Replace) Chain Link 950 Lin. Ft Wrought Iron Pool Fence Wrought Iron All W/I Fencing and Railings Miscellaneous Patio Fence Replacement Fund 40,965 43,039 42,389 28,627 7,993 8,398 8,823 9,270 9,739 10,232 10,750 81,210 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

22 30 Year Expense Forecast - Detailed Reserve Component Miscellaneous 728 Lin. Ft. Tennis court fence Total Fencing (Repair/Replace) Office Equipment / Furnishings Carpet Carpet/Paint 7,993 42,389 8, ,836 8,823 9,270 9,739 10,232 10, Furnishings 9, Equipment 8,578 9,238 9,948 10,713 11,537 10,852 Total Office Equipment / Furnishings Misc. Mechanical Equipment Miscellaneous Tomcat 250 Floor Cleaner Total Misc. Mechanical Equipment Elevator Cab Refurbish / Upgrade 7 Traction Elevators (50%) Cab Refurbish / Upgrade 7 Traction Elevators (50%) Cab Refurbish / Upgrade Hydraulic Garage Elevator System Modernization Traction Elevators System Modernization Traction Elevators System Modernization Garage Hydraulic Elevator System Modernization B Dock Freight Elevator Total Elevator 8,578 9,238 20,800 10,713 9,004 11,537 17,646 17, , , , , Common Area Furnishings / Equipment Miscellaneous Microphones 3,285 4, Lobby 18, Pool/Patio Furnishings 4,976 5,630 6,369 Total Common Area Furnishings / Equipment Electrical Building Exterior Lighting Ext. Bldg including Pierce Street (25%) Corridor Lighting Interior 4,976 3,285 5,630 6,369 18,520 4,205 33,971 38,435 43, Garage Lighting 176, , Lighting Plaza Area 98,317 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

23 30 Year Expense Forecast - Detailed Reserve Component Lighting East Hillside Lighting Driveway Miscellaneous Atrium Lighting Miscellaneous Lobby Chandeliers Total Electrical 31,134 51,647 5,940 7,604 10,077 33,971 5, ,451 48,513 51, ,461 43, ,202 7, Flooring Carpeting 6,150 Sq. Yds. Carpet corridor (50%) Carpeting 6,150 Sq. Yds. Carpet corridor (50%) Tile Bathrooms Miscellaneous Tile & Vinyl Miscellaneous Carpet Lobby Total Flooring Wallcoverings Sheet Metal 3 Garbage Rooms Total Wallcoverings 295, ,717 9,070 31,355 10,120 12,955 19, , ,717 31,355 12,955 13,905 13, Miscellaneous Structural Repairs Utility Cart 10,606 14, General Renovations (20%) Miscellaneous 2013 Improvements[nr:1] 53,028 55,713 58,533 61,497 64,610 67,881 71,317 74, Reserve Study (3-Year Update) 6,005 6,466 6,964 7,499 8,076 Total Miscellaneous Total Expenditures 2.50% 69,639 55,713 6,466 58,533 68,460 64,610 7,499 67,881 93,656 74, , , , , ,275 1,791, , ,124 1,125,410 1,086,615 1,786, , , , ,440 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates to

24 Section III Gateview 30 Year Reserve Funding Plan Cash Flow Method Beginning Balance Inflated 2.5% Reserve Contribution 487 Percentage Increase Special Assessments / Other Interest Pre 1.00% Ending Balance 1) ,863,659 4,472,846 1,793,602 2,194,065 2,679,134 3,456,314 2,934,560 3,497,700 4,207,341 4,743,093 1,389,379 3,536, , , ,525 1,464, , , , , , , , , , , , , , , % 2.5% 2.5% 2.5% 2.5% 1.0% 1.0% 1.0% 1.0% 185, ,450 31,176 19,839 24,245 30,525 31,795 32,001 38,334 44,530 48,106 4,472,846 1,793,602 2,194,065 2,679,134 3,456,314 2,934,560 3,497,700 4,207,341 4,743,093 4,926,167 Additional Funds to be transferred to the Reserve Account. Beginning Balance Inflated 2.5% Reserve Contribution 487 Percentage Increase Special Assessments / Other Interest Pre 1.00% Ending Balance ,926,167 5,556,539 6,230,598 5,903,241 4,889,925 5,869,291 6,575,759 6,774,949 7,610,791 8,563, , ,061 1,364,877 2,053,939 70, , , , , , , , , , ,794 1,001,778 1,006,787 1,011,821 1,016,880 1,021, % 1.0% 1.0% 1.0% 1.0% 0.5% 0.5% 0.5% 0.5% 0.5% ,153 58,642 60,367 53,697 53,528 61,916 66,421 71,571 80,471 86,661 5,556,539 6,230,598 5,903,241 4,889,925 5,869,291 6,575,759 6,774,949 7,610,791 8,563,791 8,855,142 Beginning Balance Inflated 2.5% Reserve Contribution 487 Percentage Increase Special Assessments / Other Interest Pre 1.00% Ending Balance ,855,142 8,175,549 8,675,377 9,121,163 9,129,107 9,181,359 8,536,213 8,895,908 9,578,730 10,251,284 1,791, , ,124 1,125,410 1,086,615 1,786, , , , ,440 1,027,074 1,032,209 1,037,370 1,042,557 1,047,770 1,053,009 1,058,274 1,063,565 1,068,883 1,074, % 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% ,730 83,835 88,540 90,797 91,097 88,147 86,727 91,914 98, ,742 8,175,549 8,675,377 9,121,163 9,129,107 9,181,359 8,536,213 8,895,908 9,578,730 10,251,284 11,203,812 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

25 Fund Balance Section III-a Gateview 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ Version 11/13/2013 3:32:58 PM Richard Avelar & Associates Years

26 Section IV Gateview 30 Year Reserve Funding Plan Including Fully Funded Balance and % Funded Year Beginning Balance Fully Funded Balance Percent Funded Inflated 2.50% Reserve Contribution Special Assessments & Other Contributions ,863,659 7,982, % 1,389, , ,461 46,450 4,472, ,472,846 7,394, % 3,536, , ,176 1,793, ,793,602 4,539, % 465, , ,839 2,194, ,194,065 4,774, % 406, , ,245 2,679, ,679,134 5,090, % 142, , ,525 3,456, ,456,314 5,698, % 1,464, , ,795 2,934, ,934,560 4,981, % 389, , ,001 3,497, ,497,700 5,365, % 258, , ,334 4,207, ,207,341 5,910, % 447, , ,530 4,743, ,743,093 6,291, % 813, , ,106 4,926, ,926,167 6,325, % 379, , ,153 5,556, ,556,539 6,822, % 352, , ,642 6,230, ,230,598 7,379, % 1,364, , ,367 5,903, ,903,241 6,931, % 2,053, , ,697 4,889, ,889,925 5,734, % 70, , ,528 5,869, ,869,291 6,620, % 357,225 1,001, ,916 6,575, ,575,759 7,254, % 874,019 1,006, ,421 6,774, ,774,949 7,396, % 247,550 1,011, ,571 7,610, ,610,791 8,205, % 144,350 1,016, ,471 8,563, ,563,791 9,162, % 817,275 1,021, ,661 8,855, ,855,142 9,475, % 1,791,397 1,027, ,730 8,175, ,175,549 8,821, % 616,217 1,032, ,835 8,675, ,675,377 9,379, % 680,124 1,037, ,540 9,121, ,121,163 9,909, % 1,125,410 1,042, ,797 9,129, ,129,107 10,021, % 1,086,615 1,047, ,097 9,181, ,181,359 10,201, % 1,786,302 1,053, ,147 8,536, ,536,213 9,694, % 785,306 1,058, ,727 8,895, ,895,908 10,228, % 472,657 1,063, ,914 9,578, ,578,730 11,123, % 494,986 1,068, ,657 10,251, ,251,284 12,045, % 228,440 1,074, ,742 11,203,812 Interest Ending Balance Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

27 Percent Funded Section IV-a Gateview 30 Year Reserve Funding Plan Cash Flow Method - Percent Funded Years /13/ usvv :trh. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

28 Section V Gateview Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Paint/Caulk/Waterproof/Refinish Waterproofing / Paint 389,787 Sq. Ft. Acrylic Paint Building Exterior[nr:1] Waterproofing / Paint 389,787 Sq. Ft. Elastomeric Paint Bldg Exterior 550, ,750 46, , , % 58, , ,019,669 39,218 21,154 22, % 48, Window Re-Caulking 200, ,000 17, , , % 21, Waterproofing Plaza Entry Paver & Area Drain Repair Plaza Waterproofing - Leak Detection [nr:1] Plaza Waterproofing - Leak Repairs [nr:1] Building Exterior Paint Removal (strip) [nr:1] 250, ,923 28, , , % 35,924 5, , ,250 4, % , ,029 2,101 30,461 33, % 2,604 1,076, ,484,506 49, , , % 61,314 Sub-total [ Paint/Caulk/Waterproof/Refinish] 2,669,967 3,610, ,127 1,453,603 1,619, % 228, Mailboxes Mailboxes D/F Building Mailboxes C/J Building Mailboxes A/B Building 12, , ,200 7, % , , ,000 6, % , , ,000 6, % 634 Sub-total [ Mailboxes] 32,000 40,963 1,639 19,200 20, % 2,030 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

29 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Mechanical Equipment - Domestic Water Valves Main Floor Isolation Valve Boilers Boiler #2 Replace Boilers Boiler #3 Replace Boilers Boiler #1 Replace 16, ,971 3,394 9,692 13, % 4, , ,502 10,340 62,688 71, % 12,812 66, ,362 5,318 3,327 6, % 6,590 29, ,361 2,318 1,450 2, % 2,872 66, ,748 3,587 56,631 61, % 4, Boiler Insulation 4, , % Boiler Fencing 3, , ,150 3, % Booster Pumps Circulation Pumps 4 (50%) Circulation Pumps 4 (50%) Backflow Preventor Plaza Backflow Preventor Pierce Leak Repair/Pipe Replace Interior Building Plumbing Survey/Inspection Report (33%)[nr:1] Sub-total [ Mechanical Equipment - Domestic Water] 25, ,358 1,418 18,798 20, % 1,757 1, , , % 124 1, , % , ,592 1,120 6,000 6, % 1,387 20, , ,000 19, % , ,519 6,304 18,000 24, % 7,811 5, ,519 2,760 2,692 5, % 3, , ,821 38, , , % 47, Mechanical Equipment - HVAC / Ventilation Hydronic System Specifications Mechanical Equipment - Trash Trash Chutes (Repair) Chute/Misc. Door Repair (5%) 5, , % 568 3, , , % Trash Compactor Replace 60, ,898 2,897 30,000 32, % 3, Trash/Recycle Bins 10 20, ,774 2,377 6,000 8, % 2,946 Sub-total [ Mechanical Equipment - Trash] 83, ,575 6,055 39,904 41, % 7,502 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

30 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Mechanical Equip. - Fire Safety/Alarm System Main Pumps 3 Replace 37, ,010 1,025 33,437 35, % 1, Sprinkler System Repair 8, ,272 1,854 1,680 3, % 2, Miscellaneous System Repair/Retrofit Sub-total [ Mechanical Equip. - Fire Safety/Alarm System] 14, , % 1,201 59,757 79,349 3,849 35,591 39, % 4, Mechanical Equipment - Security System Entry Access System [se:2] Surveillance Cameras (18%) Surveillance Cameras (40.9%) Surveillance Cameras (40.9%) 136, ,475 9, ,206 74, % 11,439 35, , ,000 1, % 1,084 78, ,231 2,012 74,575 80, % 2,492 78, ,237 2,062 70,650 76, % 2, Backup Batteries 3, , , % 267 Sub-total [ Mechanical Equipment - Security System] 331, ,673 14, , , % 17, Mechanical Equipment - Garage Ventilation Ventilation Fans Mechanical Equip. - Safety System 8, ,113 1,011 4,469 5, % 1, Central Panel 405, ,923 6, ,846 13, % 8, Central Panel 1,014, ,082 17, ,968 1,040, % 21, Keltron System 36, ,242 2,462 14,646 16, % 3, Smoke Detectors Consultant Safety/Fire/Comm/Security[nr:1] Consultant Safety/Fire/Comm/Security[nr:1] Sub-total [ Mechanical Equip. - Safety System] 26, ,119 1,412 18,356 21, % 1,749 78, , % 0 78, ,473 8,095 63,177 80, % 10,030 1,641, ,839 36,069 1,561,963 1,173, % 44,692 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

31 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Mechanical Equip. - Safety Emergency Syst Generator Replacement Fuel Tank (Generator) Replacement Fire Pump Indicator Panel (Generator) [se:2] Sub-total [ Mechanical Equip. - Safety Emergency Syst.] 50, ,913 3,237 12,147 14, % 4, , ,575 3, ,575 3, % 4,361 6, ,760 1,352 1,860 3, % 1, , ,248 8, ,582 21, % 10, Paving Repairs 6,360 Sq. Ft. Repair/Seal/Re-Stripe Asphalt: Resurface 6,360 Sq. Ft. 5, ,265 1,053 4,109 5, % 1,305 27, ,670 1,627 9,863 11, % 2,016 Sub-total [ Paving] 32,533 45,935 2,680 13,972 16, % 3, Concrete (Partial Replacement) Walkways/Drives 5, ,519 2,760 2,692 5, % 3, Pool Deck Re-Coat 30, ,307 2,154 24,000 26, % 2,669 Sub-total [ Concrete (Partial Replacement)] 35,384 37,826 4,913 26,692 32, % 6, Waterproofing Planter Areas Repair 3,000 Sq. Ft. Atrium's (5.6%) Garage Slab Leak Inspection [nr:1] Garage Slab Leak Repair [nr:1] 10, , ,000 1, % 966 7, , ,250 7, % , ,125 1,538 43,500 46, % 1,905 Sub-total [ Waterproofing] 62,500 69,409 2,574 51,750 55, % 3, Painting: Interior Common Areas / Stairwells 216,782 Sq. Ft Structural Repairs/Replacement Miscellaneous F Building Emergency Exit[nr:1] 200, ,000 22, , , % 28,223 8, , ,075 8, % 540 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

32 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Roofing Roof Deck Replacement AB Plaza Entry 25, ,316 2,421 1,713 3, % 3, Roof Drainage 1, , % Low Slope: Tar & Gravel A Bldg Low Slope: Tar & Gravel B Bldg Low Slope:Duro-Last C Bldg Low Slope:Duro-Last D Bldg Low Slope: Tar & Gravel E Bldg Low Slope:Duro-Last F Bldg Low Slope:Duro-Last J Bldg Low Slope: Tar & Gravel 2,000 Sq. Ft. Clubhouse 308, ,782 25, , , % 31, , ,874 21, , , % 27, , ,733 27, , , % 34, , ,733 27, , , % 34, , ,040 26, , , % 32, , ,840 8,123 71,793 80, % 10,065 86, ,473 6,498 57,435 64, % 8,052 21, ,402 1,493 18,479 20, % 1, Roofing: Inspections & Repairs 5, ,388 1,597 1,483 3, % 1,979 Sub-total [ Roofing] 1,876,810 2,225, ,436 1,019,109 1,173, % 185, Re-Model / Upgrade Security Office [nr:1] Laundry Room 2 15, ,375 1,025 14,000 15, % 1,270 9, , ,000 3, % 952 Sub-total [ Re-Model / Upgrade] 24,000 26,896 1,793 17,000 19, % 2,222 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

33 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Gate Equipment / Entry System Roll-Up Gate 6 Garbage Room/B Dock Pedestrian Gate A dock Auto Gate 3 Driv. Assy Auto Gate 3 G-1, G-2 Res, G-2 Vis 21, ,414 1,217 8,400 9, % 1,507 5, , ,077 1, % , ,438 2,488 12,438 2, % 3,082 16, ,681 1,968 3,231 4, % 2, Security Gate 5, , ,077 1, % Safety Loops 2 8, , , % 411 Sub-total [ Gate Equipment / Entry System] 68,652 85,309 6,970 34,515 20, % 8, Pool Re-plaster 984 Sq. Ft Equipment Repair Miscellaneous 30, ,791 3,479 12,000 15, % 4,311 3, , % Filter 1, , , % Chlorinator 3, , ,245 3, % Pumps 2 Solar Pumps 1, , % Heater 9, , , % 1, Pool Cover 2, , % Miscellaneous Skimmer & Lights 5, , ,077 1, % 813 Sub-total [ Pool] 57,381 68,104 7,131 18,209 24, % 8, Spa Repairs Replacement Heater Heater & Pumps 21, ,589 1,129 19,350 20, % 1, , % 132 Sub-total [ Spa] 22,475 23,868 1,236 19,431 21, % 1,532 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

34 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Recreation / Fitness Equipment Sauna: Heaters 1, , ,260 1, % Sauna: Wood Replacement Fund Interior Miscellaneous Exercise Equipment (10%) 6, , ,292 1, % 975 3, ,643 1,214 2,369 3, % 1,504 Sub-total [ Recreation / Fitness Equipment] 11,905 13,452 2,647 4,921 7, % 3, Tennis Court Seal Coat 6, ,461 1,292 2,400 3, % 1, Resurface 25, ,115 1,765 2,000 3, % 2,186 Sub-total [ Tennis Court] 31,000 50,577 3,057 4,400 6, % 3, Landscaping Irrigation North Plaza, Hillside (13.7%) Irrigation Driveway, Pierce St. (28%) Irrigation South Plaza (28%) Irrigation Plaza Lawns 13, , , % , , ,754 27, % , , ,834 26, % , , ,000 27, % Plants 25, ,500 1,250 25,000 2, % 1, Plants 25, ,133 1,313 20,000 23, % 1,627 Sub-total [ Landscaping] 148,686 78,292 4, , , % 5, Fencing (Repair/Replace) Chain Link 950 Lin. Ft Wrought Iron Pool Fence Wrought Iron All W/I Fencing and Railings Miscellaneous Patio Fence Replacement Fund Miscellaneous 728 Lin. Ft. Tennis court fence 27, ,389 2,119 4,179 5, % 2,626 17, ,627 1, , % 1,774 5, ,384 2,692 5,384 2, % 3,336 50, ,210 4,060 2,540 5, % 5,031 22, ,735 1,229 11,884 13, % 1,523 Sub-total [ Fencing (Repair/Replace)] 124, ,344 11,533 24,882 28, % 14,290 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

35 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Office Equipment / Furnishings Carpet Carpet/Paint 6, , ,815 6, % Furnishings 4, , ,949 4, % Equipment 5, ,378 1,595 1,481 2, % 1,976 Sub-total [ Office Equipment / Furnishings] 17,123 17,979 2,672 11,245 13, % 3, Misc. Mechanical Equipment Miscellaneous Tomcat 250 Floor Cleaner Elevator Cab Refurbish / Upgrade 7 Traction Elevators (50%) Cab Refurbish / Upgrade 7 Traction Elevators (50%) Cab Refurbish / Upgrade Hydraulic Garage Elevator System Modernization Traction Elevators System Modernization Traction Elevators System Modernization Garage Hydraulic Elevator System Modernization B Dock Freight Elevator 10, ,769 1,077 7,000 8, % 1,334 87, ,750 1,750 87,500 3, % 2,168 85, ,750 1,750 81,951 87, % 2,168 15, , ,000 12, % , ,888 5, ,775 12, % 7, , ,712 14, , , % 17, , ,570 2,263 80,000 86, % 2, , ,856 3, , , % 4,206 Sub-total [ Elevator] 1,626, ,012 29,650 1,542,310 1,180, % 36, Common Area Furnishings / Equipment Lobby 9, , ,822 7, % Pool/Patio Furnishings 3, , , % Miscellaneous Microphones Sub-total [ Common Area Furnishings / Equipment] 2, , % ,236 17,304 1,509 10,463 8, % 1,870 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

36 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Electrical Building Exterior Lighting Ext. Bldg including Pierce Street (25%) Corridor Lighting Interior 22, ,728 2,346 18,307 23, % 2,906 92, ,972 5,499 60,135 66, % 6, Garage Lighting 100, ,689 10,769 70,000 82, % 13, Lighting Plaza Area Lighting East Hillside Lighting Driveway Miscellaneous Atrium Lighting Miscellaneous Lobby Chandeliers 60, ,000 3,000 60,000 3, % 3,717 19, , , % 1,177 30, ,519 1,576 27,000 29, % 1,953 3, , % 575 6, , ,700 6, % 381 Sub-total [ Electrical] 334, ,698 24, , , % 30, Flooring Carpeting 6,150 Sq. Yds. Carpet corridor (50%) Carpeting 6,150 Sq. Yds. Carpet corridor (50%) Tile Bathrooms Miscellaneous Tile & Vinyl Miscellaneous Carpet Lobby 175, ,233 18, , , % 22, , ,739 18, , , % 22,891 5, , % , ,135 1,913 12,438 14, % 2,371 6, , , % 980 Sub-total [ Flooring] 381, ,083 39, , , % 49, Wallcoverings Sheet Metal 3 Garbage Rooms 7, , ,625 6, % 526 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

37 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2013 Fully Funded Balance 2014 Fully Funded Balance % Per Year Straight Line 2014 Line Item Contribution based on Cash Flow Method Miscellaneous Structural Repairs 678, ,428 30, , , % 37, Utility Cart 7, , ,492 6, % General Renovations (20%) Miscellaneous 2013 Improvements[nr:1] 36, ,530 18,765 18,307 37, % 23,251 90, , % Reserve Study (3-Year Update) 4, ,146 1,382 4,146 1, % 1,712 Sub-total [ Miscellaneous] 816, ,989 51, , , % 63,463 Totals 11,372,634 11,497, ,377 7,982,158 7,394, % 825,693 [A] [EndBal] [A] [B] [EndBal] [B] Percent Funded 56.04% 24.25% Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

38 Section VI Gateview Component Listing Included Components Paint/Caulk/Waterproof/Refinish Waterproofing / Paint 389,787 Sq. Ft. Acrylic Paint Building Exterior 12 Quantity 389,787 Unit of Measure Square Feet Cost /SqFt $ % 1 Total Cost/Study Treatment [nr:1] $550,000 Replacement Year 2014 Future Cost $563, Waterproofing / Paint 389,787 Sq. Ft. Elastomeric Paint Bldg Exterior 12 Quantity 389,787 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $550,000 Replacement Year 2038 Future Cost $1,019,669 This is to paint the entire exterior of the complex and provides for all rigging and access, thorough preparation and one coat of top quality Sherwin Williams duration paint to all exterior painted surfaces, including stairwells. This painting cycle will commence twelve years after the total re-stripping of the building exterior paint included in line item 982 within this category. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

39 Component Listing Included Components Paint/Caulk/Waterproof/Refinish Window Re-Caulking 12 Quantity 1 Unit of Measure Fund Cost /Fnd $200, % Total Cost/Study $200,000 Replacement Year 2014 Future Cost $205,000 1 This is to recaulk the window perimeters and provides for all rigging and access to remove the existing sealant from the window perimeters and replace it with a top quality urethane sealant Waterproofing Plaza Entry Paver & Area Drain Repair Quantity 1 Unit of Measure Fund 10 Cost /Fnd $250, % Total Cost/Study $250,000 Replacement Year 2019 Future Cost $289, Plaza Waterproofing - Leak Detection 20 Quantity 1 Unit of Measure Fund Cost /Fnd $5, % 3 Total Cost/Study Treatment [nr:1] $5,000 Replacement Year 2016 Future Cost $5, Plaza Waterproofing - Leak Repairs 20 Quantity 1 Unit of Measure Fund Cost /Fnd $38, % 4 Total Cost/Study Treatment [nr:1] $38,076 Replacement Year 2017 Future Cost $42, Building Exterior Paint Removal (strip) 30 Quantity 1 Unit of Measure Fund Cost /Fnd $1,076, % 13 Total Cost/Study Treatment [nr:1] $1,076,891 Replacement Year 2026 Future Cost $1,484,505 This is to completely strip and re-paint the building exterior. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

40 Component Listing Included Components Mailboxes Mailboxes D/F Building Quantity 1 Unit of Measure Fund 25 Cost /Fnd $12, % Total Cost/Study $12,000 Replacement Year 2023 Future Cost $15, Mailboxes C/J Building Quantity 1 Unit of Measure Fund 25 Cost /Fnd $10, % Total Cost/Study $10,000 Replacement Year 2023 Future Cost $12, Mailboxes A/B Building Quantity 1 Unit of Measure Fund 25 Cost /Fnd $10, % Total Cost/Study $10,000 Replacement Year 2023 Future Cost $12,801 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

41 Component Listing Included Components Valves Mechanical Equipment - Domestic Water Main Quantity 1 Unit of Measure Items 5 Cost /Itm $16, % Total Cost/Study $16,153 Replacement Year 2015 Future Cost $16, Floor Isolation Valve 196 Quantity 196 Unit of Measure Items 25 Cost /Itm $ % Total Cost/Study $174,133 Replacement Year 2029 Future Cost $258, Boilers Boiler #2 Replace Quantity 1 Unit of Measure Items 20 Cost /Itm $66, % Total Cost/Study $66,533 Replacement Year 2032 Future Cost $106,362 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

42 Component Listing Included Components Boilers Mechanical Equipment - Domestic Water Boiler #3 Replace Quantity 1 Unit of Measure Items 20 Cost /Itm $29, % Total Cost/Study $29,000 Replacement Year 2032 Future Cost $46, Boilers Boiler #1 Replace Quantity 1 Unit of Measure Items 20 Cost /Itm $66, % Total Cost/Study $66,625 Replacement Year 2016 Future Cost $71, Boiler Insulation 20 Quantity 1 Unit of Measure Fund Cost /Fnd $4, % Total Cost/Study $4,561 Replacement Year 2032 Future Cost $7,291 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

43 Component Listing Included Components Mechanical Equipment - Domestic Water Boiler Fencing 20 Quantity 1 Unit of Measure Lump Sum Cost /LS $3, % Total Cost/Study $3,500 Replacement Year 2015 Future Cost $3, Booster Pumps 7 Quantity 7 Unit of Measure Items 20 Cost /Itm $3, % Total Cost/Study $25,065 Replacement Year 2018 Future Cost $28, Circulation Pumps 4 (50%) Quantity 4 Unit of Measure Unit 15 Cost /Ut $665 Qty * $/Ut $2, % Total Cost/Study $1,330 Replacement Year 2018 Future Cost $1,505 5 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

44 Component Listing Included Components Mechanical Equipment - Domestic Water Circulation Pumps 4 (50%) Quantity 4 Unit of Measure Unit 15 Cost /Ut $665 Qty * $/Ut $2, % Total Cost/Study $1,330 Replacement Year 2027 Future Cost $1, Backflow Preventor Plaza Quantity 1 Unit of Measure Items 30 Cost /Itm $20, % Total Cost/Study $20,000 Replacement Year 2034 Future Cost $33, Backflow Preventor Pierce Quantity 1 Unit of Measure Items 30 Cost /Itm $20, % Total Cost/Study $20,000 Replacement Year 2016 Future Cost $21,538 This is to bring the 2nd backflow prevention device up to code by moving it from below grade to above grade. 3 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

45 Component Listing Included Components Mechanical Equipment - Domestic Water Leak Repair/Pipe Replace Interior Building Quantity 1 Unit of Measure Fund 5 Cost /Fnd $30, % Total Cost/Study $30,000 Replacement Year 2015 Future Cost $31, Plumbing Survey/Inspection Report (33%) Quantity 1 Unit of Measure Fund 2 Cost /Fnd $16,153 Qty * $/Fnd $16, % 1 Total Cost/Study Treatment [nr:1] $5,384 Replacement Year 2014 Future Cost $5, Mechanical Equipment - HVAC / Ventilation Hydronic System Specifications Quantity 1 Unit of Measure Lump Sum 20 Cost /LS $5, % Total Cost/Study $5,731 Replacement Year 2032 Future Cost $9,162 This is for the work performed by Gregory Booth Engineering in fiscal year 2012 which includes specifications for the circulation pumps, domestic water pressurization system and new boilers. Replacement of these components is not included in this line item Mechanical Equipment - Trash Trash Chutes (Repair) Chute/Misc. Door Repair (5%) Quantity 1 Unit of Measure Lump Sum 5 Cost /LS $78,075 Qty * $/LS $78, % Total Cost/Study $3,904 Replacement Year 2013 Future Cost $3, Trash Compactor Replace 30 Quantity 1 Unit of Measure Items Cost /Itm $60, % Total Cost/Study $60,000 Replacement Year 2028 Future Cost $86,898 This is to replace the existing trash compactor Trash/Recycle Bins 10 Quantity 10 Unit of Measure Items 10 Cost /Itm $2, % Total Cost/Study $20,000 Replacement Year 2020 Future Cost $23,774 7 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

46 Component Listing Included Components Main Pumps Mechanical Equip. - Fire Safety/Alarm System 3 Replace Quantity 3 Unit of Measure Items 40 Cost /Itm $12, % Total Cost/Study $37,153 Replacement Year 2017 Future Cost $41, Sprinkler System Repair 5 Quantity 1 Unit of Measure Fund Cost /Fnd $8, % Total Cost/Study $8,400 Replacement Year 2017 Future Cost $9, Miscellaneous System Repair/Retrofit Quantity 1 Unit of Measure Fund 30 Cost /Fnd $14, % Total Cost/Study $14,204 Replacement Year 2042 Future Cost $29,068 This is for the system repair/retrofit completed by AECO Systems Inc. in Mechanical Equipment - Security System Entry Access System 15 Quantity 1 Unit of Measure Unit Cost /Ut $136, % 0 Total Cost/Study Treatment [se:2] $136,765 Replacement Year 2013 Future Cost $138, Surveillance Cameras (18%) Quantity 1 Unit of Measure Fund 20 Cost /Fnd $192,030 Qty * $/Fnd $192, % Total Cost/Study $35,000 Replacement Year 2013 Future Cost $35,000 0 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

47 Component Listing Included Components Mechanical Equipment - Security System Surveillance Cameras (40.9%) Quantity 1 Unit of Measure Fund 20 Cost /Fnd $192,030 Qty * $/Fnd $192, % Total Cost/Study $78,500 Replacement Year 2014 Future Cost $80, Surveillance Cameras (40.9%) Quantity 1 Unit of Measure Fund 20 Cost /Fnd $192,030 Qty * $/Fnd $192, % Total Cost/Study $78,500 Replacement Year 2015 Future Cost $82, Backup Batteries 15 Quantity 1 Unit of Measure Fund Cost /Fnd $3, % Total Cost/Study $3,231 Replacement Year 2013 Future Cost $3, Mechanical Equipment - Garage Ventilation Ventilation Fans 2 Quantity 2 Unit of Measure Items 10 Cost /Itm $4, % Total Cost/Study $8,938 Replacement Year 2018 Future Cost $10, Mechanical Equip. - Safety System Central Panel 30 Quantity 1 Unit of Measure Fund Cost /Fnd $405, % Total Cost/Study $405,846 Replacement Year 2013 Future Cost $405, Central Panel 30 Quantity 1 Unit of Measure Fund Cost /Fnd $1,014, % Total Cost/Study $1,014,794 Replacement Year 2014 Future Cost $1,040, Keltron System 20 Quantity 1 Unit of Measure Fund Cost /Fnd $36, % Total Cost/Study $36,614 Replacement Year 2025 Future Cost $49,242 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

48 Component Listing Included Components Mechanical Equip. - Safety System Smoke Detectors 487 Quantity 487 Unit of Measure Items 10 Cost /Itm $ % Total Cost/Study $26,222 Replacement Year 2016 Future Cost $28, Consultant Safety/Fire/Comm/Security Quantity 1 Unit of Measure Fund 5 Cost /Fnd $78, % 0 Total Cost/Study Treatment [nr:1] $78,971 Replacement Year 2013 Future Cost $78, Consultant Safety/Fire/Comm/Security Quantity 1 Unit of Measure Fund 5 Cost /Fnd $78, % 1 Total Cost/Study Treatment [nr:1] $78,971 Replacement Year 2014 Future Cost $80, Generator Mechanical Equip. - Safety Emergency Syst. Replacement Quantity 1 Unit of Measure Unit 25 Cost /Ut $50, % Total Cost/Study $50,613 Replacement Year 2032 Future Cost $80,913 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

49 Component Listing Included Components Mechanical Equip. - Safety Emergency Syst Fuel Tank (Generator) Replacement Quantity 1 Unit of Measure Fund Fuel tank - Generator replacement to occur in Cost /Fnd $105, % Total Cost/Study $105,575 Replacement Year 2013 Future Cost $105, Fire Pump Indicator Panel (Generator) 5 Quantity 1 Unit of Measure Unit Cost /Ut $6, % 3 Total Cost/Study Treatment [se:2] $6,200 Replacement Year 2016 Future Cost $6, Paving Repairs 6,360 Sq. Ft. Repair/Seal/Re-Stripe Quantity 6,360 Unit of Measure Square Feet 5 Cost /SqFt $ % Total Cost/Study $5,137 Replacement Year 2014 Future Cost $5, Asphalt: Resurface 6,360 Sq. Ft. Quantity 6,360 Unit of Measure Square Feet 25 Cost /SqFt $ % Total Cost/Study $27,396 Replacement Year 2029 Future Cost $40,670 This is to completely grind the roadway and install new hot asphalt on to the new surface Concrete (Partial Replacement) Walkways/Drives 2 Quantity 1 Unit of Measure Fund Cost /Fnd $5, % Total Cost/Study $5,384 Replacement Year 2014 Future Cost $5,519 1 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

50 Component Listing Included Components Pool Deck Concrete (Partial Replacement) Re-Coat Quantity 1 Unit of Measure Lump Sum 15 Cost /LS $30, % Total Cost/Study $30,000 Replacement Year 2016 Future Cost $32, Waterproofing Planter Areas Repair 3,000 Sq. Ft. Atrium's (5.6%) Quantity 3,000 Unit of Measure Square Feet 20 Cost /SqFt $60.00 Qty * $/SqFt $180, % Total Cost/Study $10,000 Replacement Year 2031 Future Cost $15,596 This is to waterproof the planters located in the atrium areas. This cost includes fees associated with excavation, cleaning, waterproofing and re-planting Garage Slab Leak Inspection 30 Quantity 1 Unit of Measure Fund Cost /Fnd $7, % 1 Total Cost/Study Treatment [nr:1] $7,500 Replacement Year 2014 Future Cost $7,688 This is a one time expense to perform garage slab leak inspections Garage Slab Leak Repair 30 Quantity 1 Unit of Measure Fund Cost /Fnd $45, % 1 Total Cost/Study Treatment [nr:1] $45,000 Replacement Year 2014 Future Cost $46,125 This is a one time expense for the performance of garage slab repairs. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

51 Component Listing Included Components Painting: Interior Common Areas / Stairwells 216,782 Sq. Ft. Quantity 216,782 Unit of Measure Square Feet 9 Cost /SqFt $ % Total Cost/Study $200,000 Replacement Year 2014 Future Cost $205,000 This is to paint the interior common areas including hallways, ceilings, walls and trim. This cost includes fees associated with the completion of a second coat to walls and ceilings Structural Repairs/Replacement Miscellaneous F Building Emergency Exit Quantity 1 Unit of Measure Lump Sum 20 Cost /LS $8, % 1 Total Cost/Study Treatment [nr:1] $8,500 Replacement Year 2014 Future Cost $8,713 This is to remove/replace the existing wood emergency exit at the F building roof with a walk pad system. Future repair/replacement will be included in the roofing replacement line item. Therefore, this line item is scheduled for 2014 only and will not repeat Roofing Roof Deck Replacement AB Plaza Entry Quantity 1 Unit of Measure Fund 15 Cost /Fnd $25, % Total Cost/Study $25,702 Replacement Year 2027 Future Cost $36,316 This is for the replacement of the roof deck and railings at the AB Plaza Entry Roof Drainage 30 Quantity 1 Unit of Measure Fund Cost /Fnd $1, % Total Cost/Study $1,358 Replacement Year 2042 Future Cost $2,780 This is for the roof drain that was new as of 2012 and installed by Ronald J. Loar. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

52 Component Listing Included Components Roofing Low Slope: Tar & Gravel A Bldg. Quantity 1 Unit of Measure Building This is to re-roof with a tar & gravel roofing product. 15 Cost /Bldg $308, % Total Cost/Study $308,106 Replacement Year 2022 Future Cost $384, Low Slope: Tar & Gravel B Bldg. Quantity 1 Unit of Measure Building This is to re-roof with a tar & gravel roofing product. 15 Cost /Bldg $264, % Total Cost/Study $264,140 Replacement Year 2022 Future Cost $329, Low Slope:Duro-Last C Bldg. Quantity 1 Unit of Measure Building This is to re-roof with a Duro-last roofing product. 15 Cost /Bldg $365, % Total Cost/Study $365,680 Replacement Year 2018 Future Cost $413, Low Slope:Duro-Last D Bldg. Quantity 1 Unit of Measure Building This is to re-roof with a Duro-last roofing product. 15 Cost /Bldg $365, % Total Cost/Study $365,680 Replacement Year 2018 Future Cost $413, Low Slope: Tar & Gravel E Bldg. Quantity 1 Unit of Measure Building This is to re-roof with a tar & gravel roofing product. Version 11/13/2013 3:32:58 PM 15 Cost /Bldg $325, % Total Cost/Study $325,049 Replacement Year 2021 Future Cost $396,040 Richard Avelar & Associates

53 Component Listing Included Components Roofing Low Slope:Duro-Last F Bldg. Quantity 1 Unit of Measure Building 15 Cost /Bldg $107,689 This is to re-coat the roof with a Duro-last roofing product % Total Cost/Study $107,689 Replacement Year 2018 Future Cost $121, Low Slope:Duro-Last J Bldg. Quantity 1 Unit of Measure Building 15 Cost /Bldg $86,152 This is to re-coat the roof with a Duro-last roofing product % Total Cost/Study $86,152 Replacement Year 2018 Future Cost $97, Low Slope: Tar & Gravel 2,000 Sq. Ft. Clubhouse Quantity 2,000 Unit of Measure Square Feet This is to replace the tar and gravel roofing. 15 Cost /SqFt $ % Total Cost/Study $21,322 Replacement Year 2015 Future Cost $22, Roofing: Inspections & Repairs 4 Quantity 1 Unit of Measure Lump Sum Cost /LS $5, % Total Cost/Study $5,932 Replacement Year 2016 Future Cost $6,388 3 This is to inspect and perform periodic maintenance as needed to the roofing. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

54 Component Listing Included Components Re-Model / Upgrade Security Office 15 Quantity 1 Unit of Measure Lump Sum Cost /LS $15, % 1 Total Cost/Study Treatment [nr:1] $15,000 Replacement Year 2014 Future Cost $15,375 This is a one time cost for the performance of a general rehab of the security office Laundry Room 2 Quantity 2 Unit of Measure Fund 15 Cost /Fnd $4, % Total Cost/Study $9,000 Replacement Year 2023 Future Cost $11,521 This is for general rehab of the laundry room and includes flooring, painting, countertops, etc Gate Equipment / Entry System Roll-Up Gate 6 Garbage Room/B Dock Quantity 6 Unit of Measure Items This is to replace the roll-up gate 25 Cost /Itm $3, % Total Cost/Study $21,000 Replacement Year 2028 Future Cost $30,414 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

55 Component Listing Included Components Gate Equipment / Entry System Pedestrian Gate A dock Quantity 1 Unit of Measure Fund This is to repair the pedestrian gates. 15 Cost /Fnd $5, % Total Cost/Study $5,384 Replacement Year 2025 Future Cost $7, Auto Gate 3 Driv. Assy Quantity 3 Unit of Measure Items 5 Cost /Itm $4, % Total Cost/Study $12,438 Replacement Year 2013 Future Cost $12, Auto Gate 3 G-1, G-2 Res, G-2 Vis Quantity 3 Unit of Measure Items 10 Cost /Itm $5, % Total Cost/Study $16,153 Replacement Year 2021 Future Cost $19, Security Gate 15 Quantity 1 Unit of Measure Items Cost /Itm $5, % Total Cost/Study $5,384 Replacement Year 2025 Future Cost $7, Safety Loops 2 Quantity 2 Unit of Measure Items 25 Cost /Itm $4, % Total Cost/Study $8,292 Replacement Year 2013 Future Cost $8, Pool Re-plaster 984 Sq. Ft. Quantity 984 Unit of Measure Square Feet This is to resurface the pool. Includes coping. 10 Cost /SqFt $ % Total Cost/Study $30,000 Replacement Year 2019 Future Cost $34,791 6 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

56 Component Listing Included Components Pool Equipment Repair Miscellaneous Quantity 1 Unit of Measure Fund 10 Cost /Fnd $3, % Total Cost/Study $3,436 Replacement Year 2022 Future Cost $4, Filter 10 Quantity 1 Unit of Measure Items Cost /Itm $1, % Total Cost/Study $1,564 Replacement Year 2017 Future Cost $1, Chlorinator 5 Quantity 1 Unit of Measure Items Cost /Itm $3, % Total Cost/Study $3,741 Replacement Year 2015 Future Cost $3, Pumps 2 Solar Pumps Quantity 2 Unit of Measure Items 10 Cost /Itm $ % Total Cost/Study $1,615 Replacement Year 2020 Future Cost $1, Heater 12 Quantity 1 Unit of Measure Items Cost /Itm $9, % Total Cost/Study $9,096 Replacement Year 2024 Future Cost $11,934 This is to replace the pool heater (includes sump pump) Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

57 Component Listing Included Components Pool Pool Cover 7 Quantity 1 Unit of Measure Items Cost /Itm $2, % Total Cost/Study $2,545 Replacement Year 2019 Future Cost $2, Miscellaneous Skimmer & Lights Quantity 1 Unit of Measure Fund 10 Cost /Fnd $5, % Total Cost/Study $5,384 Replacement Year 2021 Future Cost $6, Spa Repairs Replacement Quantity 1 Unit of Measure Items This is for repairs/replacement to the spa. 20 Cost /Itm $21, % Total Cost/Study $21,500 Replacement Year 2015 Future Cost $22, Heater Heater & Pumps Quantity 1 Unit of Measure Fund This is to replace the spa heater and pumps. Cost /Fnd 12 $ % Total Cost/Study $975 Replacement Year 2024 Future Cost $1,280 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

58 Component Listing Included Components Recreation / Fitness Equipment Sauna: Heaters 3 Quantity 1 Unit of Measure Items Cost /Itm $1, % Total Cost/Study $1,890 Replacement Year 2014 Future Cost $1,937 1 This is to replace the sauna heater Sauna: Wood Replacement Fund Interior Quantity 1 Unit of Measure Fund 10 Cost /Fnd $6,461 This is to recover and replace the wood kit in the sauna room % Total Cost/Study $6,461 Replacement Year 2021 Future Cost $7, Miscellaneous Exercise Equipment (10%) Quantity 1 Unit of Measure Fund 3 Cost /Fnd $35,537 Qty * $/Fnd $35, % Total Cost/Study $3,554 Replacement Year 2014 Future Cost $3,643 This line item allows for 10% repair/replacement of the gym equipment every three years Tennis Court Seal Coat 5 Quantity 1 Unit of Measure Lump Sum Cost /LS $6, % Total Cost/Study $6,000 Replacement Year 2016 Future Cost $6,461 3 This is to resurface the tennis courts utilizing a Petromat overlay, color coat and striping. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

59 Component Listing Included Components Tennis Court Resurface 25 Quantity 1 Unit of Measure Lump Sum Cost /LS $25, % Total Cost/Study $25,000 Replacement Year 2036 Future Cost $44, Irrigation Landscaping North Plaza, Hillside (13.7%) Quantity 1 Unit of Measure Lump Sum 30 Cost /LS $98,372 Qty * $/LS $98, % Total Cost/Study $13,500 Replacement Year 2013 Future Cost $13, Irrigation Driveway, Pierce St. (28%) Quantity 1 Unit of Measure Lump Sum 30 Cost /LS $98,372 Qty * $/LS $98, % Total Cost/Study $27,593 Replacement Year 2015 Future Cost $28, Irrigation South Plaza (28%) Quantity 1 Unit of Measure Lump Sum 30 Cost /LS $98,372 Qty * $/LS $98, % Total Cost/Study $27,593 Replacement Year 2016 Future Cost $29, Irrigation Plaza Lawns Quantity 1 Unit of Measure Lump Sum 30 Cost /LS $30, % Total Cost/Study $30,000 Replacement Year 2017 Future Cost $33,114 4 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

60 Component Listing Included Components Landscaping Plants 10 Quantity 1 Unit of Measure Lump Sum Cost /LS $25, % Total Cost/Study $25,000 Replacement Year 2013 Future Cost $25, Plants 10 Quantity 1 Unit of Measure Lump Sum Cost /LS $25, % Total Cost/Study $25,000 Replacement Year 2015 Future Cost $26,266 2 This is to perform re-planting of the common areas, if needed Chain Link Fencing (Repair/Replace) 950 Lin. Ft. Quantity 950 Unit of Measure Linear Feet This is to replace the chain link fencing. 20 Cost /l.f. $ % Total Cost/Study $27,858 Replacement Year 2030 Future Cost $42, Wrought Iron Pool Fence Quantity 1 Unit of Measure Fund Cost /Fnd 20 $17, % Total Cost/Study $17,907 Replacement Year 2032 Future Cost $28,627 This is to replace the wrought iron fencing. With aggressive paint maintenance, this component s life may be extended. Painting is provided for within another component. Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

61 Component Listing Included Components Fencing (Repair/Replace) Wrought Iron All W/I Fencing and Railings Quantity 1 Unit of Measure Fund 2 Cost /Fnd $5, % Total Cost/Study $5,384 Replacement Year 2013 Future Cost $5, Miscellaneous Patio Fence Replacement Fund Quantity 1 Unit of Measure Fund 20 Cost /Fnd $50, % Total Cost/Study $50,799 Replacement Year 2032 Future Cost $81, Miscellaneous 728 Lin. Ft. Tennis court fence Quantity 728 Unit of Measure Linear Feet 25 Cost /l.f. $ % Total Cost/Study $22,853 Replacement Year 2025 Future Cost $30, Carpet Office Equipment / Furnishings Carpet/Paint Quantity 1 Unit of Measure Fund 10 Cost /Fnd $6, % Total Cost/Study $6,461 Replacement Year 2014 Future Cost $6, Furnishings 12 Quantity 1 Unit of Measure Fund Cost /Fnd $4, % Total Cost/Study $4,738 Replacement Year 2015 Future Cost $4,978 2 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

62 Component Listing Included Components Office Equipment / Furnishings Equipment 3 Quantity 1 Unit of Measure Fund Cost /Fnd $5, % Total Cost/Study $5,923 Replacement Year 2016 Future Cost $6, Misc. Mechanical Equipment Miscellaneous Tomcat 250 Floor Cleaner Quantity 1 Unit of Measure Items 10 Cost /Itm $10, % Total Cost/Study $10,000 Replacement Year 2016 Future Cost $10,769 This is to replace the Tomcat 250 machine used to clean the garage floors Elevator Cab Refurbish / Upgrade 7 Traction Elevators (50%) Quantity 7 Unit of Measure Items 25 Cost /Itm $25,000 Qty * $/Itm $175, % Total Cost/Study $87,500 Replacement Year 2013 Future Cost $87,500 0 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

63 Component Listing Included Components Elevator Cab Refurbish / Upgrade 7 Traction Elevators (50%) Quantity 7 Unit of Measure Unit 25 Cost /Ut $24,390 Qty * $/Ut $170, % Total Cost/Study $85,366 Replacement Year 2014 Future Cost $87, Cab Refurbish / Upgrade Hydraulic Garage Elevator Quantity 1 Unit of Measure Unit 25 Cost /Ut $15, % Total Cost/Study $15,000 Replacement Year 2018 Future Cost $16, System Modernization Traction Elevators Quantity 1 Unit of Measure Fund This is for the modernization of the traction elevators. 30 Cost /Fnd $359, % Total Cost/Study $359,775 Replacement Year 2013 Future Cost $359, System Modernization Traction Elevators Quantity 1 Unit of Measure Fund This is for the modernization of the traction elevators. 30 Cost /Fnd $828, % Total Cost/Study $828,707 Replacement Year 2014 Future Cost $849, System Modernization Garage Hydraulic Elevator Quantity 1 Unit of Measure Fund 25 Cost /Fnd $100, % Total Cost/Study $100,000 Replacement Year 2018 Future Cost $113, System Modernization B Dock Freight Elevator Quantity 1 Unit of Measure Fund 25 Cost /Fnd $150, % Total Cost/Study $150,000 Replacement Year 2018 Future Cost $169, Lobby Common Area Furnishings / Equipment 20 Quantity 1 Unit of Measure Fund Cost /Fnd $9, % Total Cost/Study $9,746 Replacement Year 2019 Future Cost $11,302 6 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

64 Component Listing Included Components Common Area Furnishings / Equipment Pool/Patio Furnishings 5 Quantity 1 Unit of Measure Fund Cost /Fnd $3, % Total Cost/Study $3,436 Replacement Year 2013 Future Cost $3, Common Area Furnishings / Equipment Miscellaneous Microphones Quantity 1 Unit of Measure Lump Sum 10 Cost /LS $2, % Total Cost/Study $2,055 Replacement Year 2022 Future Cost $2, Electrical Building Exterior Lighting Ext. Bldg including Pierce Street (25%) Quantity 1 Unit of Measure Fund 5 Cost /Fnd $91,536 Qty * $/Fnd $91, % Total Cost/Study $22,884 Replacement Year 2014 Future Cost $23, Corridor Lighting Interior Quantity 1 Unit of Measure Fund Cost /Fnd 20 $92, % Total Cost/Study $92,516 Replacement Year 2020 Future Cost $109,972 7 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

65 Component Listing Included Components Electrical Garage Lighting 10 Quantity 1 Unit of Measure Fund Cost /Fnd $100, % Total Cost/Study $100,000 Replacement Year 2016 Future Cost $107, Lighting Plaza Area Quantity 1 Unit of Measure Fund 20 Cost /Fnd $60, % Total Cost/Study $60,000 Replacement Year 2013 Future Cost $60, Lighting East Hillside Quantity 1 Unit of Measure Fund 20 Cost /Fnd $19, % Total Cost/Study $19,000 Replacement Year 2013 Future Cost $19, Lighting Driveway Quantity 1 Unit of Measure Fund 20 Cost /Fnd $30, % Total Cost/Study $30,000 Replacement Year 2015 Future Cost $31, Miscellaneous Atrium Lighting Quantity 1 Unit of Measure Lump Sum 10 Cost /LS $3, % Total Cost/Study $3,716 Replacement Year 2022 Future Cost $4,641 9 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

66 Component Listing Included Components Electrical Miscellaneous Lobby Chandeliers Quantity 1 Unit of Measure Lump Sum 20 Cost /LS $6, % Total Cost/Study $6,000 Replacement Year 2014 Future Cost $6, Flooring Carpeting 6,150 Sq. Yds. Carpet corridor (50%) 10 Quantity 6,150 Unit of Measure Square Yard Cost /SqYd $57.18 Qty * $/SqYd $351, % Total Cost/Study $175,837 Replacement Year 2014 Future Cost $180,233 1 This is to replace the current carpeting in the common area corridors with carpet tiles Carpeting 6,150 Sq. Yds. Carpet corridor (50%) 10 Quantity 6,150 Unit of Measure Square Yard Cost /SqYd $57.18 Qty * $/SqYd $351, % Total Cost/Study $175,837 Replacement Year 2015 Future Cost $184,739 2 This is to replace the current carpeting in the common area corridors with carpet tiles Tile Bathrooms Quantity 1 Unit of Measure Lump Sum This is to replace the bathroom tile. 20 Cost /LS $5, % Total Cost/Study $5,673 Replacement Year 2032 Future Cost $9,070 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates

67 Component Listing Included Components Flooring Miscellaneous Tile & Vinyl Quantity 1 Unit of Measure Lump Sum This is to replace the tile flooring. 10 Cost /LS $17, % Total Cost/Study $17,769 Replacement Year 2016 Future Cost $19, Miscellaneous Carpet Lobby Quantity 1 Unit of Measure Lump Sum This is to replace the lobby carpet runners. 10 Cost /LS $6, % Total Cost/Study $6,330 Replacement Year 2022 Future Cost $7, Wallcoverings Sheet Metal 3 Garbage Rooms Quantity 3 Unit of Measure Unit 20 Cost /Ut $2, % Total Cost/Study $7,500 Replacement Year 2018 Future Cost $8,486 This is to repair/replace the sheet metal wall coverings located in the garbage rooms Miscellaneous Structural Repairs 30 Quantity 1 Unit of Measure Lump Sum Cost /LS $678, % Total Cost/Study $678,441 Replacement Year 2025 Future Cost $912, Utility Cart 12 Quantity 1 Unit of Measure Items Cost /Itm $7, % Total Cost/Study $7,323 Replacement Year 2016 Future Cost $7,886 3 Version 11/13/2013 3:32:58 PM Richard Avelar & Associates