?5: ,_ BROWNING RESERVE GROUP TRAILSIDE PLACE HOMEOWNERS ASSOCIATION RESERVE STUDY. Full study. First Draft. Published - May 26, 201 o

Transcription

1 . '\?5:,_ BROWNING RESERVE GROUP TRAILSIDE PLACE HOMEOWNERS ASSOCIATION RESERVE STUDY Full study Published - May 26, 201 o BROWNING RESERVE GROUP ~ Emmett, I D ~ Office (208) Fax (208) il! / fS4.D.22 Version 5/ :25:40 I'M Browning Reserve Group 2010

2 . ~ 'l ',<;.. ', BROWNING RESERVE GROUP TRAILSIDE PLACE HOMEOWNERS Table of Contents Section Report Section 1: Summary of Association Reserves Section 11: 30 Year Expense Forecast Section Ill: 30 Year Reserve Funding Plan section 11/~e: 30 Year Reserve Funding Plan Section IV: 30 Year Reserve Funding Plan section v: Reserve Fund Balance Forecast section VI: Component Listing Section VII: Tabular Component Listing Detailed Cash Flow Method {c) Cash Flow Method ~ Ending Balances Chert Fully Funded Balance and % Funded Component Method Included Components JnciiJded Components Page Section Vll~a: Expenditures by Year For 1 Year 33 section IX: Directory of Reserve Study Contractors section X: Auditor Notes Section X-a: Supplementary Information for Auditor Section XI: Glossary Addendum: Component Method Reserve Study Terms Homeowner Distribution Materials See Page if for Details /26/ Version 5/26/2010 5:25:40 PM Browning Reserve Group 2010 TOC- i

3 BROWNING RESERVE GROUP TRAILSIDE PLACE HOMEOWNERS Homeqwner Djstrjbutjpo Materials s~e~c~ti~on~- The following Reserve Study sections should be provided to each Homeowner. ~R~ep~o~rt Page Idaho: Homeowner Summary !i/26/ fs V$rskln 612'6/2010 6:26:40 PM Browning Reserve Group2010 TOG- ii

4 ..',-,,. ' \' ~{~ BROWNING RESERVE GROUP Section I Reserve Study Full Study A Reserve Study was conducted of Trailside Place Homeowners AsSociation (the. "Association"). This study is a Full Study which includes an on-site review upon Where the fohowing tasks are performed: development of a reserve component inventory; condition as$esement ba$ed upon on-site visu!ll observation; life and valuation estimates; fund status; and a funding plan. is a Planned Development with a total of 110 Lot Lots. Physical I hspection Browning Reserve Group ("BRG") 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. A& of the date of the study, they have a remaining us&fullife of le$$ than 30 years, and a value greater than $1, Such additional components, if any, determined by the Board of Directors. During the inspection, BRG utilized the services of our own construction cost estimator. I ri ad-dition, independent contractors were retarned to render opinlons on selected components as indicated in Sectjon VI. Included Coropongnt Usting. Supplemental information to the physical inspection may have been obtained from the following\ sources: 1. Project ph;ms where available. 2. Maintenance records of the reserve components where available. ~. Association board members, management and staff. 1G22 &/26/ ! /26/2010 5:25:40 PM V~>rslon ~ Emmett, I D Office (208) Fax (208) Browning Reserve Group 20 1 o

5 Reserve Study Full Study Summary of Reserves For the first year of the Reserve Study, the reserve contribution is based upon the existing budget 1,1nless otherwise noted in "Section III, Reserve Funding Pkm. n In addition BRG relied on the Association to provide an accurate Beginning Reserve Balance. The status Qf the Association's reserves, as reflected in the fouowing Reserve Study, is as follows: 1. The f:xpendtture Forecast of the following Reserve Study Identifies the major components which the Association is obligated to repair, replace, restore or maintain, as determined tn accordanoe with the criteria specified above, artd specifies for each such component: a. Its current estfmated replacement cott; b. Its estimated useful life; and o. I t1 esthnated 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 $SS,825. {For purposes of this cak:ulation, "necessary~ Is defined as the Fully Funded Balance (FFB) (Component Current Cost X Effective Age I Useful Life, 1nch1dJng a provision for Interest and htflatton in future years.)] 3. The current amount of accumulated cash reserves actually set aside to repair, reptace, restore, or maintain such major components as of the fiscal year ending December 31, 2011 is estimated to be $18,728, constituting 33.5% of. the ~otat expenditures anticipated for all such major components through their first end of useful life replac;emertt. 4. Based upon the sched1de 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 $ ($1S.iJO per Lot per mopth t v uagejj for the fiscal year ending December 31, 2011 (the first fuji fiscal year following first distribution of this report} will be necessary In order to meet att such reserve expenditures when they are projected to come due.

6 Reserve Study Full Study 3 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. Idaho statute lmp()ses.n2 reserve funding level requirements nor does it address funding level adequacy, and although ol1e 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 33.5% funded. The following scale can be used as a measure to determine the associationfs 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 Poor % Fair % - - strong Methodology The above recommended reserve contribution for the next fiscal year (and future fiscal years as outlined in $1Cil9a Ill, &l~tt:~ Euo.rl B.itf nct Eoreru~so was developed using the cash flow method. This is a method of developing a reserve funding plan where the contribution$ 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 sohedute of reserve expenses until the desired.funding.goal Is achieved. Funding Goals The funding goal employed for Is Threshplsl FuMing: Establishing a Reserve funding goal of keeping the Re$erve balance above a specified dollar or Percent Funded amount.. Depending on the threshold, this may be more or less conservative than "Fully Funding."

7 Reserve Study - Full study 4 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. The costs outlined in the study are for budgetary and planning purposes only. Amual bid (f()sts would depend upon the defined scope of work at the time repairs are made. Also, any latent defects are excluded from this report. It should be noted no destructive testing was performed. Statutory Disclosures Compliance The Reserve Study complies with or exceeds all applicable statutes, if any. General: Supplemental Disclosures BRG has no other involvement{s) with the AssOCiation which could result in actual or perceived conflicts of interest. Personnel Credentials: N. Anthony Dann graduated from Cal State Northridge with Bachelors & Master of Science degrees in Business Admini-stration, Management and Finance. Diane M. Dann has a Certified Property Manager designation from the Institute of Real Estate Management. Cc:)m pleteness: SRG 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 BRG. scope: This Reserve Study Is q reflection of information provided to BRG and assembled for the Association's use, not for the purpose of performing an audit, quality/forensic analysis, health and safety in$pection, or background checks of histoticat records. Reserve Balance: The actual beginning reserve fund balanee in this Reserve Study is based upon information provided and was not audited.

8 ~eserve Study - Full Study Reserve Projects: I nformatioh provided about reserve projects will be considered reliable. Any on~site inspection should not be considered a project audit, quauty inspection, or health and safety review.

9 BROWNING RESERVE GROUP 30 Year Expense Forecast- Detailed Current Life Replacement Useful/ ReseTVe Component Cost Remaining Paving 100 -Asphalt: Sealing {131,600 Sq. A:. 12, ,:n8 13,553 Streets} Asphalt: Repairs: On-going {Streets} 1, ,656 Total Paving 13,778 12,278 15, Concrete Miscellaneous {Common Area} 1, ,000 1,131 Total Concrete 1,000 1,000 1, Painting: Exterior stain {Picnic Area Shade Structure} Stain {Childrens Playgro\lnd}[nr:3] Wrought Iron {1,155 Un. Ft. Perimeter 5, ,740 Fence} Wood Fencing {Amity Road Fence} 1, ,077 1, Wood Fencing {East Perimeter 1, ,160 Fencing} Wood Fencing {West Perimeter 1, Fencing} Light Poles { 15 Street lights} Total Painting: Exterior 10,600 1,400 5, ,077 1,584 2, Structural Repairs 970 -Mailboxes {5 Cluster Mailboxes -One 6, Half} 971 -Mailboxes {5 Cluster Mailboxes- One ii, Half} Total Structural Repairs 13, Basketball I Sport Court Miscellaneous {2 Basketball Court} 1, Total Basketball I Sport 1,500 Court Landscaping 100 -Irrigation: Misc. {Landscaping} 1, ,615 1, Turf Renovation {Landscaping} 5, General Repairs/Upgrades 3, ,394 {Landscaping} Bark Replacement {Landscaping} 3, ,075 3,311 3,566 Section II ,960 16,513 1,828 2,017 16,787 18,530 1,280 1,280 1,024 71;i8 6,823 1,249 1,345 1,249 1,345 1,249 1, ,823 4,496 1,792 4,035 1,873 2,017 6,400 3,840 3,840 4, /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group to2024 6

10 30 Year Expense Forecast- Detailed Current Life Replacement Useful(_ Reserve Component Cost Remaining Tree Maintenance {L!Indscaplng} 2, Total Landscaping 14, Fencing 340 Wood: 6' {820 Un. Ft. Amity Road 13, ,366 Fence} 341 Wood: 6' {855 Un. Ft. West Perimeter 17, Fencing} 342 Wood: 6' {930 Lin. Ft. East Perimeter 18, Fencing} Total Fencing 49,066 13, Lighting 200 Street Lights { 15 Street Lights 3, (13.3%)} Total Lighting 3, Signage 792 Monument {2 Rock Monument Signs} 1, Total Slgnage 1, Outdoor Equipment 100 Tot Lot {Childrens Playground}[nr:1] 6, S40 Shade Structure {Picnk: Area Shade 1, Structure (15%)} Total Outdoor Equipment 7, Miscellaneous 170 Storm Drains {Storm Drains} 1, Total Miscellaneous 1, Reserve Study Year Update with Site Visit {Reserve Study} Total Reserve Study Undesignated 100 Miscellaneous {Common Area} Total Undesignated 500 Total Expenditures 2.50% 28, ,263 3,075 1,615 3,311 5,657 1,740 3,566 18,415 21,570 18,415 21,570 1,261 1, ,328 1,891 22,561 18,520 8,938 26,615 4, ,560 1,873 16,641 2,017 4,136 1,499 1,499 1,062 1,143 1,062 1, ,611 9,554 19, ,725 4,825 0 Total Current Replacement Cost 118,793 / /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group to

11 30 Year Expense Forecast-oetailecJ Reserve Component Paving 100- Asphalt: Sealing {131,600 Sq. Ft. 18,227 20,119 22,208 24,514 Streets} Asphalt: Repairs: on-going {Streets} 2,227 2,458 2,713 2,995 Total Paving 20,454 22,577 24,921 27, Concrete Miscellaneous {Common Area} 1,448 1,639 1,854 Total Concrete 1,448 1,639 1, Painting: Exterior Stain {Picnic Area Shade structure} 1,159 1,311 1, Stain {Childrens Playground}[nr:3] Wrought Iron {1,155 un. Ft. Perimeter 8,110 9,641 11,460 Fence} Wood Fencing {Amity Road Fence} 1,448 1,560 1,680 1,809 1, Wood Fencing {East Perimeter 1,448 1,560 1,680 1,809 1,948 Fencln } Wood Fencing {West Perimeter 1,448 1,560 1,680 1,809 1;948 Fencing} Ught Poles { 15 Street Lights} 891 1,059 Total Painting: Exterior 13, ,679 1,311 5,039 9,641 1,059 5,426 1,483 5,843 11, Structural Repairs 970 -Mailboxes {5 Cluster Mailboxes -One 11,061 Half} Mailboxes {5 Cluster Mailboxes - One 11,621 Half} Total structural Repairs 11,061 11, Basketball I Sport Court Miscellaneous {2 Basketball Court} 2,172 Total Basketball/ Sport 2,172 Court Landscaping 100 -Irrigation: Misc. {Landscaping} 2,172 2,339 2,519 2,713 2, Turf Renovation {Landscaping} 9, General Repairs/Upgrades 4,345 4,916 5,562 {Landscaping} Bart< Replacement {Lanclsceping} 4,454 4,796 5,165 5,562 5, Tree Maintenance {Landscaping} 2,897 3,277 3,708 Total Landscaping 9,414 4,454 2,339 4,796 8,193 2,519 5,165 2,713 24,101 2,922 5, Fencing 340 -Wood: 5 {820 Un. Ft. Amity Road 21,902 Fence} 341 -Wood: 6' {855 Un. Ft. West Perimeter 30,175 Fencing} /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group to2039 8

12 Reserve Component Year Expense Forecast- Detailed Wood: 6' {930 Un. Ft. East Perimeter Fencing} Total Fencing Lighting Street Ughts { 15 Street Ughts (13.3%)} Total Lighting Signage Monument {2 Rock Monument Signs} Total Slgnage Outdoor Equipment 100- Tot Lot {Chlldrens Playground}[nr: 1] 8, Shode structyre {Pig,lc; Area Shade 2,174 Structure (15%)} Total outdoor Equipment 10, Miscellaneous Storm Drains {Storm Drains} Total Miscellaneous Reserve Study Year Update with Site Visit {Reserve 1,231 study} Total Reserve Study 1, Undesignated Miscellaneous {Common Area} 724 Total Undesignatad 724 Total Expenditures 2.50% 39,466 21,902 1,781 1,781 2,458 2,458 1,326 1,428 1,326 1, , ,344 5,595 69,140 9,826 26,426 35,345 30,175 35,345 5,822 5,967 6,116 6,269 6,426 6,587 6,751 5,822 5,967 6,116 6,269 6,426 6,587 6,751 2,118 2,118 2,781 2,781 2,781 2,781 1,537 1,656 1,537 1, , ,023 40,055 40,565 40,044 41,615 17,821 40,085 19; /26/ fs Version 5/26/2010 5;25:40 PM Browning Reserve Group to2039 9

13 30 Year Reserve Funding Plan Cash Flow Method Reserve Funding Plan - Footnotes Period I Year 1) 00/2010 2) Reserve Contribution of $19,800 for 2010 calculated by BRG. Special Assessment of $16,500 ($150 per unit) to fund a Reserve Account /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

14 BROWNING RESERVE GROUP 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances Section III-a $140,000 $120,000 $100,000.!!! = 1 i. $80,000 $60,000 t $40, $20,000 $0 ll - r f-. ~ ~ y ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ & ~ ~ ~ # ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~(;) ~ ~(;) ~ ~(;) ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Years /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

15 BROWNING RESERVE GROUP Year /26/ fs Version 5/26/2010 5:25:40 PM 30 Year Reserve Funding Plan Including Fully Funded Balance and % Funded Inflated Beginning Fully Funded Percent Expenditures Resetve Special Assessments Balance Balance Contribution & Other Contributions 0 72, % 28,044 19,800 16,500 8,256 55, % 9,328 19, ,728 60, % 1,891 19, ,637 73, % 22,561 19, ,876 65, % 18,520 19, ,156 62, % 8,938 19, ,018 68, % 26,615 19, ,203 58, % 4,160 19, ,843 71, % 23,611 19, ,032 64, % 9,554 19, ,278 72, % 19,713 19, ,365 71, % , ,509 89, % 25,725 19, ,584 83, % 4,825 19, ,559 99, % 0 19, , , % 39,466 19, , , % 27,580 19, ,913 95, % , , , % 8,344 20, , , % 5,595 21, , , % 69,140 21, , ,663 89;2% 9,826 22, , , % 26,426 22, , , % 40,055 23, , , % 40,565 24, , , % 40,044 25, ,310 94, % 41,615 25, ,530 85, % 17,821 26, , , % 40,085 27, ,643 95, % 19,235 28,230 0 Browning Resetve Group 2010 Section IV Interest Ending Balance 0 8, , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,638 13

16 BROWNING RESERVE GROUP Reserve Fund Balance Forecast Component Method Section V Reserve Component Current Rep/. Cost Estimated Future Useful Remaining Replacement Life Life Costs Per Year 2010Ful/y Funded Balance 2011 Line Item 2011 Fully Contribution Funded %Per Year based on Balance Straight Line Cash Flow Method Paving 100- Asphalt: Sealing {131,600 Sq. Ft. Streets} 200- Asphalt: Repairs: On-going {Streets} Sub-total [ Paving] 12,278 1,500 13, , ,656 13,934 3, ,401 12, ,578 3, % 4, % 489 3, % 5, Concrete 900- Miscellaneous {Common Area} 1, , , % Painting: Exterior 150- Stain {Picnic Area Shade Structure} 151- Stain {Childrens Playground}[nr:3] 400- Wrought Iron {1,155 Un. Ft. Perimeter Fence} Wood Fencing {Amity Road fence} 451- Wood Fencing {East Perimeter Fencing} Wood Fencing {West Perimeter Fencing} 500- Ught Poles {15 Street Lights} Sub-total [ Painting: Exterior] ,600 1,000 1,000 1, , , , , ~ 1, , , , , % % 177 5, % 1, % % % % 133 7, % 2, Structural Repairs 970 -Mailboxes {5 Ouster Mailboxes- One Half} Mailboxes {5 Cluster Mailboxes - One Half} Sub-total [ Structural Repairs] 6,750 6,750 13, , ,621 22, , ,160 1, % 654 1, % 687 2, % 1, Basketball I Sport Court Miscellaneous {2 Basketball Court} 1, , /o Landscaping 100- Irrigation: Misc. {Landscaping} 1, , % /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

17 Reserve Fund Balance Forecast Component Method 2011 Estimated Line Item Future 2010 Fully 2011 Fully Contribution '" Current Useful Remaining Replacement Per Funded Funded %Per Year based on Reserve Component Rep!. Cost Life Life Costs Year Balance Balance Straight Line cash Flow Method 400 -Turf Renovation {Landscaping} 5, , ,667 2, % General Repairs/Upgrades {Landscaping} 3, , % Bark Replacement {Landscaping} 3, ,075 1,025 2,000 3, % 1, Tree Maintenance {Landscaping} 2, , % 557 Sub-total [ landscaping] 14,500 16,748 2,798 4,875 6, % 4, Fencing 340- Wood: 6' {820 Lin. Ft. Amity Road Fence} 13, , , % Wood: 6' {855 Lin. Ft. West Perimeter Fencing} 17, "'-. 18, ,535 15, % 1, Wood: 6' {930 lin. Ft. East Perimeter Fencing} 18, ,570 1,079 13, , % 1,593 Sub-total[ Fencing] 49,066 53,351 2,668 40,~21 30, % 3, Lighting 200 Street Lights {15 Street Ughts (13.JOA>)} 3, , % Signage Monument. {2 Rock Monument Signs} 1, , , % Outdoor Equipment 100- Tot Lot {Childrens Playground}[nr:11 6, , ,500 1, % Shade Structure {Picnic Area Shade Structure (15%)} 1, , % 201 Sub-total [ Outdoor Equipment] 7,500 10, ,594 1, % Miscellaneous Storm Drains {Storm Drains} 1, , % Reserve Study Year Update with Site Visit {Reserve Study} % Undesignated /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

18 Reserve Fund Balance Forecast Component Method Estimated Future Current Useful Remaining Replacement Reserve Component Rep/. Cost Life Life Costs 100- Miscellaneous {Common Area} Per Year Line Item 2010 Fully 2011 Fully Contribution Funded Funded %Per Year based on Balance Balance Straight Line Cash Flow Method % 379 Totals 118, ,296 Percent Funded 13,403 [A] [B] 72,332 55, % 19,800 [EndBal] [A] --- [EndBal] [B] 11.41% 33.55% 1~22 05/26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

19 ..'",' '~~ ll-,\ BROWNING RESERVE GROUP Component Listing Included Components Section VI o1.ooo- Paving Asphalt: Sealing 131,600 Sq. Ft. Streets Useful Life 4 Remaining Life 0 Quantity 131,600 Unit of Measure Square Feet Cost /SqFt $0.093 % Included % Total Cost/Study $12,278 Summary Replacement Year 20~0 Future Cost $12,:278 This Is to apply a single coat asphalt emulsion product $UC::h as "As Premiere One". Includes asphalt surface preparation prior to application. Cost estimate includes painting of speed bumps and sealing of common area walkway and the asphalt sewer easement located at east end of E. Tallow Ulne. If the ongoing repairs and sealing is done on a four year cycle, an overlay most likely can be avoided. Square footage, cost estimate and useful life provided by Steve Cash of Aaphalt Systems Co., I.LC Costing provided by Asphalt Systems Co., LLC Asphalt: Repairs: On-going Streets Summary Useful Life 4 Remaining Life 4 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 % Included % Replacement Year 2014 Total Cost/Study $1,500 Future Cost $1,656 This is for miscellaneous repairs including crackfill, skin patching and minor dig out & fill. Cost estimate and useful life provided by Steve Cash of Asphalt Systems Co., Inc. Costing provided by Asphalt Systems Co., LLC 16Z2 05/26/ ($ Version 5/26/2010 5:25:40 PM rraj/slde Place Homeowners AssoCiation Browning ReseTVe Group

20 Component Listing Included Components Concrete Miscellaneous Common Area Summary Useful Life 5 Remaining Life 0 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 % Included % Replacement Year 2010 Total Cost/Study $1,000 Future Cost $1,000 Tills is for miscellaneous CQncrete repair to Include sidewalks, curbs, gutters, pitnic area and basketball court as needed Painting: Exterior 150- Stain Picnic Area Shade Structure Summary Useful Life 5 Remaining Life 0 Quantity 1 Unit of Measure Lump Sum Cost /LS $800 % Included % Replacement Year 2010 Total Cost/Study $800 Future Cost $800 This is to paint the shade structure with a premium stain such a Kelly Moore or Sherwin Williams. Preparation includes power washing, masking, covering, sanding, scraping, caulking and filling as needed. Cost estimate, useful life and remaining life by Art Eccles of Eccles Pa Costing provided by Eccles Painting /26/ ($ Version 5/26/2010 5:25:40 PM Browning Reserve Group

21 Component Listing Included Components Paintinri: Exterior 15i- Stain Useful Life 5 Remaining Life 0 Treatment [nr:3] Children$ Playground Quantity 1 Unit of Measure Lump Surn Cost /LS $600 % Included % Total Cost/Study $600 Summary Replacement Year 2010 Future Cost $600 This is to paint the children'$ wood playground structur with a premium stain such a Kelly Moore or ShetWin Williams. Preparation includes power washing, masking, covering, sanding, scraping, caulking and filling as needed. Cost estimate, useful life and remaining life by Art Eccles of Eccles Costing provided by Eccles Painting Wrought Iron 1,155 Lin. Ft. Perimeter Fence Summary Useful Life 7 Remaining Life 1 Quantity 1,155 Unit of Measure Linear Feet Cost /I. f. $4.85 % Included % Replacement Year 2011 Total Cost/Study $5,600 Future Cost $5,740 This Is to paint the wrought iron fencing with a premium direct to metal product. Preparation Includes sanding, scraping and primer as necessary. Cost estimate and useful life provided by Art Eccles of Eccles Painting. Linear footage is approximate based on measurements by BRG. Costing provided by Eccles Painting /:1.6/2010 t:lfl;4.0.;!2 Version 5/26/2010 5:25:40 PM Browning Reserve Group

22 Component Listing Included Components Painting: Exterior Wood Fencing Amity Road Fence Useful Life 3 Remaining Life 3 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 % Included % Total Cost/Study $1,000 Summary Replacement Year 2013 Future Cost $1,077 This is to prep and stain the l.x6 dog eared wood cedar fence installed in 2010 with a nrejmi,um Messmer's UV or equal. Cost estimate and useful life provided by Max McCammon of Costing provided by Falling Star LLC Wood Fencing East Perimeter Fencing Summary Useful Life 3 Remaining Life 6 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 %Included % Replacement Year 2016 Total Cost/Study $1,000 Future Cost $1,160 This is to prep and stain the east perimeter fence starting three years from installation projected in Product to be a premium wood stain such as Messmer's UV or equal. Cost estimate and useful life provided by Max McCammon of Falling Star LLC. Costing provided by Falling Star LLC /26/ fs Version 5/26/2010 5:25:40 PM Browning ReseTVe Group

23 .Component Listing Included Components 03t:ioo -.Paiiiting: Exterior Wood Fencing West Perimeter Fencing Summary Useful Life 3 Remaining Life 9 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 % Included % Replacement Year 2019 Total Cost/Study $1,000 Future Cost $i,249 This Is to prep and stain the west perimeter fence starting three years from installation projected In Product to be a premium wood stain such as Messmer's UV or equal. Cost estimate and useful life provided by Max McCammon of Falling Star LLC. Costing provided by Falling Star LLC Light Poles 15 Street Lights Summary Useful Life 7 Remaining Life 2 Quantity 15 Unit of Measure Items Cost /Itm $40.00 % Included % Replacement Year 2012 Total Cost/Study $600 Future Cost $630 This is to prep and paint the light poles with a premium direct to metal product. Cost estimate and useful life provided by Art Eccles of Eccles Painting. Costing provided by Eccles Painting /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

24 Component Listing Included Components o4ooo - StructuriJI R.epiJirs Mailboxes 5 Cluster Mailboxes - One Half Summary Thi$ is to replace one half of the cluster mailboxes. Useful Life 25 Remaining Life 20 Quantity S Unit of Measure Items Cost /Itm $1,350 % Included % Total Cost/Study $6,750 Replacement Year 2030 Future Cost $11,061 Costing provided by Mailboxichange Mailboxes 5 Cluster Mailboxes - One Half Summary This is to replace one half of the cluster mailboxes. Useful Life 25 Remaining Life 22 Quantity 5 Unit of Measure Items Cost /Itm $1,350 % Included % Replacement Year 2032 Total Cost/Study $6,750 Future Cost $11,621 Costing provided by Mailboxichange 1622 OS/26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

25 Component Listing Included Components Prepared for the Fiscal Year 1.7soo- llasket:ball 1 Sport court Miscellaneous 2 Basketball Court Useful Life 20 Remaining Life 15 Quantity 2 Unit of Measure Lump Sum Cost /LS $750 % Included % Total Cost/Study $1,500 Summary Replacement Year 2025 Future Cost $2,172 This is to remove and replace both backboards and rims. Cost estimate and useful life provided by Tom Nicotera of Institutional Basketball Systems Landscaping Irrigation: Misc. Landscaping Summary Useful Life 3 Remaining Life 3 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 % Included % Replacement Year 2013 Total Cost/Study $1,500 Future Cost $1,615 This is for major repairs to the irrigation components in excess of the operating budget. Includes replacement of 4 time clocks, 3 backflow preventer valves, miscellaneous valves and underground pvc piping as needed. Cost estimate provided by Travis Krahn of Big Sky Outdoor Co. Costing provided by Big Sky Outdoor Company /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

26 Component Listing Included Components Landscaping 400- Turf Renovation Landscaping Summary Useful Life 15 Remaining Life 10 Quantity 1 Unit of Measure Lump Sum Cost /LS $5,000 % Included % Replacement Year 2020 Total Cost/Study $5,000 Future Cost $6,400 This is for renovating the common area turf utilizing a sod cutter, replacing top soil and sod as needed. Cost estimate and useful life provided by Travis Krahn of Big Sky Outdoor cnrnm~nv Costing provided by Big Sky Outdoor Company General Repairs/Upgrades Landscaping Summary Useful Life 5 Remaining Life 5 Quantity 1 Unit of Measure Lump Sum Cost /LS $3,000 % Included % Replacement Year 2015 Total Cost/Study $3,000 Future Cost $3,394 This is to have funds in excess of the operating budget for miscellaneous plantings, removals and other work as directed by the association. Cost estimate provided by Travis Krahn of Big Outdoor rnr,.,n:~nv Costing provided by Big Sky Outdoor Company /26/ fs Version 5/26/2010 5:25:40 I>M Browning Reserve Group

27 Component Listing Included Components :zsooo - l.alldscaplng Bark Replacement Landscaping Summary Useful Life 3 Remaining Life 1 Quantity 1 Unit of Measure Lump Sum Cost /LS $3,000 % Included % Replacement Year 2011 Total Cost/Study $3,000 Future Cost $3,075 This is for replacing landscape bark in the bedding areas. Cost estimate provided by Travis Krahn of Big Sky Outdoor Company. Costing provided by Big Sky Outdoor Company Tree Maintenance Landscaping Summary Useful Life 5 Remaining Life 5 Quantity 1 Unit of Measure Lump Sum Cost /LS $2,000 % Included % Replacement Year 2015 Total Cost/Study $2,000 Future Cost $2,263 This is to prune, remove and replace trees as needed to enhance the association's landscaping and to avoid branch and root damage to nearby objects. This is in excess of the operating budget. Cost estimate provided by Travis Krahn of Big Sky Outdoor Company. Costing provided by Big Sky Outdoor Company /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

28 Component Listing Included Components Jsooo- Fenctng 340- Wood: 6' 820 Lin. Ft. Amity Road Fence Summary Useful Life 20 Remaining Life 0 Quantity 820 Unit of Measure Linear Feet Cost /I. f. $16.30 % Included % Replacement Year 2010 Total Cost/Study $13,366 Future Cost $13,366 This is to replace the lx6 wood fencing including discarded fence material removal and disposal. Fence was replaced in 2010 at above cost. Cost and useful life provided by Max McCammon of Fallng Star LLC. Linear footage is approximate based on measurements by BRG. Costing provided by Falling Star LLC Wood: 6' 855 Lin. Ft. West Perimeter Fencing Summary Useful Life 20 Remaining Life 3 Quantity 855 Unit of Measure Linear Feet Cost /l.f. $20.00 % Included % Replacement Year 2013 Total Cost/Study $17,100 Future Cost $18,415 This is to replace the lx3 6' wood fencing including discarded fence material removal and disposal. Replacement fence to be 1x6 dog eared cedar with galvanized pipe supports. Cost estimate provided by Max McCammon of Fallng Star LLC. Linear footage is approximate based on measurements by BRG. Costing provided by Falling Star LLC /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

29 Component Listing Included Components Jsooo- Fencing 342- Wood: 6' 930 Lin. Ft. East Perimeter Fencing Summary Useful Life 20 Remaining Life 6 Quantity 930 Unit of Measure Linear Feet Cost /I. f. $20.00 % Included % Replacement Year 2016 Total Cost/Study $18,600 Future Cost $21,570 This is to replace the 1x3 wood fencing including discarded fence material removal and disposal. Replacement fence to be 1x6 dog eared cedar with galvanized pipe supports. Cost estimate and useful life provided by Max McCammon of Fallng Star LLC. Linear footage is approximate based on measurements by BRG. Costing provided by Falling Star LLC Lighting Street Lights 15 Street Lights (13.3%) Summary Useful Life 1 Remaining Life 23 Quantity 15 Unit of Measure Items Cost /ltm $1,650 % Included 13.33% Replacement Year 2033 Qty * $/Itm $24,750 Total Cost/Study $3,299 Future Cost $5,822 This is to replace a percentage of the association street lights. Since the core light standard and fixture useful life exceeds the scope of this study, this component is for partial replacement only /26/ fs Version 5/26/2010 5:25:40 PM Browning ReseNe Group

30 Component Listing Included Components 21ooo - Signage Monument 2 Rock Monument Signs Summary Useful Life 7 Remaining Life 2 Quantity 2 Unit of Measure Items Cost /Itm $600 % Included % Replacement Year 2012 Total Cost/Study $1,200 Future Cost $1,261 This is to have the monument sign lettering removed, prepped and painted then re-installed. Cost estimate and useful life provided by Craig Lunsford of Young Electric Sign Company. Costing provided by Young Electric Sign Company Outdoor Equipment 100- Tot Lot Childrens Playground Summary Useful Life 20 Remaining Life 15 Treatment [nr: 1] Quantity 1 Unit of Measure Items Cost /Itm $6,000 % Included % Replacement Year 2025 Total Cost/Study $6,000 Future Cost $8,690 This is to replace the playground equipment. Since there are multiple choices of construction material and designs. This item can be further defined with association input /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

31 Component Listing Included Components Outdoor Equipment Shade Structure Picnic Area Shade Structure (15%) Summary Useful Life 5 Remaining Life 15 Quantity 1 Unit of Measure Lump Sum Cost /LS $10,000 % Included 15.00% Replacement Year 2025 Qty * $/LS $10,000 Total Cost/Study $1,500 Future Cost $2,172 This is for periodic repairs/replacement of wood portions of the shade structure. Since the wood components will not fail simultaneously, this component provides for fifteen percent replacement every three years beginning in fifteen years, Miscellaneous Storm Drains Storm Drains Summary Useful Life 30 Remaining Life 25 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 % Included % Replacement Year 2035 This is to have funds to repair/maintain the storm drains as needed. Total Cost/Study $1,500 Future Cost $2, Reserve Study Year Update with Site Visit Useful Life 3 Remaining Life 3 Reserve Study Summary Quantity 1 Cost /LS $850 % Included % Replacement Year 2013 Unit of Measure Lump Sum Total Cost/Study $850 Future Cost $915 This is for the 3 year full study which includes a visual observation of the accessible reserve components /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

32 Component Listing Included Components 320tJo - undesi"ijirated Miscellaneous Common Area Summary Useful Life 2 Remaining Life 1 Quantity 1 Unit of Measure Lump Sum Cost /LS $500 % Included % Replacement Year 2011 Total Cost/Study $500 Future Cost $512 This is to have funds available for costs of repairs, replacement or maintenance of smaller reserve components such as: Paint 8 fire $30 ea; Paint 10 mailbox clusters@ $35 ea; Replace landscape light monument signs; Replace barbecue; Replace miscellaneous signs; Minor playground equipment repairs; Re-stripe basketball court; Maintain/replace small wood structure for irrigation controller; Replace basketball nets; Paint utility boxes; /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

33 BROWNING RESERVE GROUP Component Tabular Listing Included Components Current Useful Remaining Unit of Component Replacement Cost Life Life Quantity Measure Location Section VII OlOOO - Paving Asphalt: Sealing $12, ,600 Square Feet Asphalt: Repairs: On-going $1, Lump Sum Streets Streets Concrete Miscellaneous $1, Lump Sum Painting: Exterior 150- Stain $ Lump Sum 151- Stain $ Lump sum Wrought Iron $5, ,155 Linear Feet Wood Fencing $1, Lump Sum Wood Fencing $1, Lump Sum Wood Fencing $1, Lump Sum Light Poles $ Items Structural Repairs Mailboxes $6, Items Mailboxes $6, Items l7500- Basketball I Sport Court Miscellaneous $1, Lump Sum lbooo- Landscaping Irrigation: Misc. $1, Lump Sum Turf Renovation $5, Lump Sum General Repairs/Upgrades $3, Lump Sum Bark Replacement $3, Lump Sum Tree Maintenance $2, Lump sum, Common Area Picnic Area Shade Structure Childrens Playground Perimeter Fence Amity Road Fence East Perimeter Fencing West Perimeter Fencing Street Lights Cluster Mailboxes - One Half Cluster Mailboxes - One Half Basketball Court Landscaping Landscaping Landscaping Landscaping Landscaping /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

34 Component Component Tabular Listing Included Components Current Replacement Cost Useful Remaining Unit of Ufe Ufe Quantity Measure Location Prepared for the 2011 Ascal Year Fencing Wood: 6' $13, Linear Feet Amity Road Fence Wood: 6' Wood: 6' $17,100 $18, Linear Feet Linear Feet West Perimeter Fencing East Perimeter Fencing Lighting 200- Street Lights $3, Items Street Lights Signage Monument $1, Items Rock Monument Signs Outdoor Equipment 100- Tot Lot $6, Items Childrens Playground Shade Structure $1, Lump Sum Picnic Area Shade Structure Miscellaneous 170- Storm Drains $1, Lump Sum Storm Drains Reserve Study Year Update with Site Visit $ Lump Sum Reserve Study Undesignated Miscellaneous $ Lump Sum Common Area /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

35 .. ~,:,:~ ',o r~~~:,, ', BROWNING RESERVE GROUP Expenditures by Year For1 Year Section VII-a Life Cutrent Forecast Reserve Component Useful Replacement Cost Inflated 2.50% Paving 100 -Asphalt: Sealing {131,600 Sq. Ft. Streets} 4 12,278 o2ooo - Concrete Miscellaneous {Common Area} Painting: Exterior 150 -stain {Picnic Ar-ea Shade Structure} 151- Stain {Childrens Playground}[nr:3J Fencing 340 -Wood: 6' {820 Lin. Ft. Amity Road Fence} Total Painting: Exterior: 20 Total 2010: 1, ,400 1,400 13,366 28, /26/ fs Version 5/26/2010 5:25:40 PM Browning Reserve Group

36 . :,:;,. ~~~(' "L,,, BROWNING RESERVE GROUP Directory of Reserve Study Contractors Section IX Asphalt Systems co., LLC Steve Cash BOISE, IO Paving Asphalt: Sealing 200- Asphalt: Repairs: On-going Big Sky outdoor Company Travis Krahn P. 0. Box 1034 Meridian, IO sooo- l.itndscapinii 100- Irrigation: Misc Turf Renovation General Repairs/Upgrades Bark Replacement soo - Tree Malrltenance Eccles Paintiilg Art Eccles 450 W. Grove Street Boise, to oo - Painting: Exterior 150- Stain Phone: (208) Streets Streets Phone:(208) Landscaping Landscaping Landscaping Landscaping Landscaping Phone:(208} Childrens Playground License#: License#: License#: Stain Picnic Area Shade Structure Wrought Iron 500 Light Pole$ Falling Stat LLC Max Mc:cammon 3512 s. Montana Caldwell, ID Painting: Exterior 450 wood Fencing wood Fencing Perimeter Fence Street Lights Phone: (208) 841~2474 Amity Road Fence East Perimeter Fencing License#: wood Fencing 16:22 05/211/ f$ VersiOI\ 5{1.6{ ;2$:40 PM Browning Reserve Group 20l0 West Perimeter Fencing 34

37 Directory of Reserve Study Contractors Fencing 340- Wood: 6' wood: 6' 340- wood: 6' Mallboxichange UNKNOWN,CA XXXXX o4ooo - sti'iii:turat Repairs Mailboxes Mailboxes Amity R,oad Fence 'East Perimet~r Fencing West Perimeter Fencing Phone:(800) License 1/:: Cluster MailbOxes One Half Cluster Mailboxes - One Half Young Eleetfic Sign Company Craig Lunsford 416 E. 41st Street Boise, lo Si{Jitage 792- Monument Phone: (208) ~ock Monument Signs License#: /26/ fs version 5/26/2010 5:25:40 PM Browning Reserve Group

38 BROWNING RESERVE GROUP Notes to the Auditor Section X This report is intended to assist the auditor while preparing the audit, review or cornpllatlon of 's (the "Association") financial documents. Browning Reserve Group ("BRG") prepared a reserve study for the Association during the 2010 fiscal year. This was done to help determine the Association's reserve contribution for the next fiscal year (2011) and future fiscal years. In addition, BRG prepared the proper statutory disclosures for distribution to the Association members. This Reserve Study is a Full Study. This study is a Full Study which includes an on~site review upon where the following tasks are performed: development of a reserve component inventory; condition assessment based upon on-site visual observation; life and valuation estimates; fund status; and a funding plan. Please note, in order to complete these study tasks, one or more visits were conducted by BRG to. For BRG reserve studies, the year tn which the study is being conducted, Is the first year of the study. For example, this study is being prepared during 2010 and is the Association's first year in the study. This enables BRG to use a starting polnt which ties to the fast audited financial statement, December 31, You will notice in Section Ill, Reserve fund. Bidii.Dce fprt.ut, a Beginning Reserve Balance of $0 is being used which ties to the last completed audit or review of the Association's financial statements. BRG then re-builds the first year of the study, in this case and estimates an ending reserve fund balance. Again, see Section III and the 2010 ending reserve balance estimate of $8,256. "Re.,.building" the first year of the study as mentioned above simply means using the 2010 adopted budget for the 2010 reserve contribution. Finally, the 2010 reserve expenses both actual and projected are estimated /26/ fs Version S/26/2010 5;25:40 PM Browning Reserve Group

39 Notes to the Auditor We find by using the above method a more accurate reserve study is possibte because the beginning reserve fund balance ties directly to the Association's audited financial statement or, in the absence of an audit or review, the year end balance sheet. There Is no need to rely on others for determining mid year reserve balances or estimating current year ending reserve balances. This approach forces all involved, to look at the current year's reserve fund activities so a more accurate ending reserve fund balance can be estimated. With respect to the reserve component Information on the next page/s, here are the calculations: FFB = Current Cost X Effective Age 1 Useful Life % Funded = FFB 1 Fkst Year Estimated Ending Reserve Balance Please see section V:.. R sfuxt: fi.i.j1rl Balance Fom ast /26/ fs Version 5/26/2010 5:25:40 PM Browning ReseTVe Group

40 .." '. ;,,:,:: >, llrowning RESERVE GROUP ~~'( Schedule of Supplementary Information for Auditor Component Method Prepared for the Fiscai Year Line Item 20,10 Fully 2011 Fully Contribution Current Useful Remaining Funded Funded based on Reserve Component Rep/. Cost Ufe Life Balance Balance cash Flow Method Paving 100- Asphalt: Sealing {131,600 Sq. l't. Streets} 12, ,278 3,146 4, , Asphalt: Repairs: 01'1-golng {Streets} 1, $ Concrete MisCellaneous {Common Area} 1, , i:J Painting: Exterior 150 Stain {Picnic Arei!l Shade Structure} 800 s Stain {Chlldrens Playground}[nr:3] Wrought Iron {1,155 Un. A:. Perimeter fence} 5,600 7 l 4,800 5,740 1, Wood Fencing {Amity Road Fence} 1, Wood Fencing {East Perimeter fencing} 1, Wood Fencing {West Perimeter Fencing} 1, soo Ught Poles {15 Strt~et lights} Structural Repairs 970 Mailboxes {5 Clust.w Mailboxes One Half} 6,' ,350 1, Mailboxes {5 Cluster Mailboxes One Half} 6, , Basketball/ Sport Court Miscellaneous {2 Basketball Court} 1, Landscaping 100 litigation: Misc. {landscaping} 1, Turt RenovatiOn {landscaping} 5, ,667 2, General Repairs/Upgrades {landscaping} 3, ark Replaooment: {landscaping} ~,000 3,075 1, Tree Maintenance {Landscaping} 2, Fencing 340 Wood: 6' {820 Un. Ft, Amity Road Fence} 13, , Wood: 6' {855 Lin. Ft. west Perimeter Fencing} 17, ,535 15,775 1, Wood: 6' {930 Un. Ft. East Perimeter Fencing} 18, ,020 14,299 1, Lighting 200 Street lights {15 Street lights (13.3%}} 3, /26/2010 December 31 Version 5/26/2010 5:25:40 PM Browning Reserve Group

41 ReseNe Component Schedule of Supplementary Information for Auditor Component Method Current Repi. Cosi: Useful Remaining Life Life Prepared for the 20{1 Fiscal Year 2011 Line Item 2010 Fully 2011 FUlly Contribution Funded Funded based on Baiance Balance cash rtow MethOd Signage 79~ - Monument {2 Rock Monument Signs} 1, , Outdoor Equipment ioo- Tot Lot {Childrens Playground}[nr:l] 6, Shade Structure {Picnic Area Shade Str\lc:ture (15%)} 1,SOO ,500 1, Miscellaneous 170 Storm Drains {storm Drains} l,soo Reserve Study S Year Update with Site Visit {Re$et'le Study} :2()o() - Unilesignated 100 Miscellaneous {Commt:ill Area} soo Totals 118,793 Percent Funded [A] [B] 72,332 55,825 19,800 [EndBal] [EndBai] [A] [B) 11.41% 33.55% /26/2010 December :h Version 5/26/2010 5:25:40 PM Browning Reserve Group

42 ..,, ';,;,~ ~f~: ' ', BROWNING RESERVE GROUP Glossary of Reserve Study Terms Section XI Terms 8t Definitions CASH FLOW METHOD: A method of developing a Reserve Funding Plan where 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 untu the desired Funding Goat is achieved. COMPONENT INVENTORY: The task of selecting and quantifying Reserve Components. This task can be accomplished through on~stte visual observations, review of association design and organizational documents, a review of established association precedents, and discussion with appropriate association representative(s) of the association or cooperative. COMPONENT METHOD: A method of developing a Reserve Funding Plan where the total contribution is based on the sum of contributions for individual cornponents. See "Cash Flow Method. COMPONENT: The individual Une items lri the Reserve Study, developed or updated In the Physical Analysis. These elements form the building blocks for the Reserve Study. components typically are: 1) Association responsibility, 2) with limited Useful life expectancies, 3) predictable Remaining Useful Life expectancies, 4) above a minlinum threshold cost, and S) as required by local codes. CONDITION ASSESSMENT: The task of evaluating the current condition of the component based on observed or reported characteristics. CURRENT R.E:PLACEMENT COST: See "Replacement Cost." DEFICIT; An actual (or projected) Reserve Balance Jess than the futly Funded Balance. The opposite would be a Surplus. EFFECTIVE AGE: The difference between Useful life and Remaining Useful life. Not always equivalent to chronological age, since some components age irregularly. Used primarily Jn computations /26/ fs Version 5/2fi/2010 5:25:40 PM Browning Reserve Group