Reserve Study Transmittal Letter

Transcription

1 Reserve Study Transmittal Letter Date: January 18, 2012 To: Michael Lee, Collins Management Co. From: Richard Avelar & Associates (RA&A) Re: Bridgewater Condominium Association Attached, please find the reserve study for the association. 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. $140,567 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, 2012, the association is 46.5% 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 2.5% for the interest rate and 2.5% 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. 12usv4.4.57: 318 Harrison St., #103 / Oakland, CA Office (510) Fax (510) Thess@Ravelar /

2 January 18, 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. New for 2011, this section of the study is a standalone 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, (2011) the current fiscal year is dealt with in the study. Thank you for the opportunity to work with the Bridgewater Condominium Association on this study. 12usv4.4.57:

3 RESERVE STUDY Update w/ Site Visit Review Bridgewater Condominium Association Published - January 18, 2012 Richard Avelar & Associates 318 Harrison St., #103 / Oakland, CA Office (510) Fax (510) Thess@Ravelar / Richard Avelar & Associates /18/ usv4.4.57:*.*

4 Bridgewater Condominium Association 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} 18 Section III-a: 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances Chart 19 Section IV: 30 Year Reserve Funding Plan Fully Funded Balance and % Funded 20 Section IV-a: 30 Year Reserve Funding Plan Cash Flow Method - Percent Funded Chart 21 Section V: Reserve Fund Balance Forecast Component Method 22 Section VI: Component Listing Included Components 29 Section VII: Tabular Component Listing Included Components 60 Section VII-a: Expenditures by Year - Next 3 Years 66 Section X: Auditor Notes 69 Section X-a: Supplementary Information for Auditor Component Method Section XI: Glossary Reserve Study Terms 75 Addendum: Homeowner Distribution Materials See Page ii for Details /18/ usv4.4.57:*.* Richard Avelar & Associates 2012 TOC - i

5 Bridgewater Condominium Association 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} /18/ usv4.4.57:*.* Richard Avelar & Associates 2012 TOC - ii

6 Section I Update w/ Site Visit Review Bridgewater Condominium Association Published - January 18, 2012 Reserve Study A Reserve Study was conducted of Bridgewater Condominium Association (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. Bridgewater Condominium Association is a Condominium with a total of 103 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 /18/ usv4.4.57:*.* Richard Avelar & Associates Harrison St., #103 / Oakland, CA Office (510) Fax (510) Thess@Ravelar /

7 Reserve Study - Update w/ Site Visit Review Bridgewater Condominium Association 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 $1,385,823. [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, 2012 is estimated to be $644,408, constituting 46.5% 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 $140,567 [$ per Unit per month (average)] for the fiscal year ending December 31, 2012 (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 46.5% 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 Bridgewater Condominium Association 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 Bridgewater Condominium Association 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. Personnel Credentials: RA&A is a licensed general building contractor in California, #768851, and the owner, Geoff Haworth, PRA, ICC, holds the Reserve Specialist designation, #46 from the Community Associations Institute.

9 Reserve Study - Update w/ Site Visit Review Bridgewater Condominium Association 4 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 Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Current Replacement Useful / Reserve Component Cost Remaining Restrooms Refurbish {Clubhouse (Womens)} 4, , Refurbish {2 Pool Area} 8, , Refurbish {Clubhouse (Mens)} 4, Total Restrooms 16,000 13, Exterior Planters Planter (Reline) {11,920 Sq. Ft. Buildings 1 and 2} Planter (Repair) {11,920 Sq. Ft. Buildings 1 and 2} Total Exterior Planters 295, , Mechanical Equip. - Fire Safety/Alarm System 3, , Five Year Certification {} 1, ,358 1, Control Panel {3 Addressable Fire Alarm Control Panel} 2, ,003 3, Battery Back-Up {6 Yuasa 12AH} Pull Stations {36 All} 3, ,276 4, Fire Extinguishers/Cabinets {37 All} 6, , Smoke Alarms {50 Alarm Bells} 6, , Power Supplies {2 Electrical & Fire Cable (bldg's 1 & 3)} Power Supplies {Electrical & Fire Cable (bldg 2)} 1, ,800 1, , Modules {6 Flow & Tamper} Relays {5 Addressable Relay} Smoke Detectors {88 Common Area} 7, ,216 8,164 9, Drawings, Engineering, Submittals & Labor {All Buildings} Total Mechanical Equip. - Fire Safety/Alarm System Window Replacement Window Replacement Allowance {}[se:10] Total Window Replacement Siding/Trim (Repair/Replace) Stucco Siding {96,398 Sq. Ft. Repair Fund (20%)} 27, ,800 35,586 59,515 42,827 9, , ,147 3, , ,625 26,266 26,922 27,595 28,285 28,992 29,717 30,460 31,222 32,002 32,802 33,622 34,463 35, ,000 25,625 26,266 26,922 27,595 28,285 28,992 29,717 30,460 31,222 32,002 32,802 33,622 34,463 35,324 23, ,188 4,578 Richard Avelar & Associates to

11 Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Total Siding/Trim (Repair/Replace) 23, Concrete (Partial Replacement) Courtyards & Garages {1,970 Sq. Ft. (5%)} 2, ,277 2,576 2, Culvert {672 Sq. Ft. (5%)} ,058 1, Stairs {1,160 Sq. Ft. Front Entry (5%)} Stamped {1,665 Sq. Ft. Front Entry (5%)} Total Concrete (Partial Replacement) Landings/Stairs/Railings Railings (Metal) {3,231 Lin. Ft. All (Partial Replacement) (10%)} Total Landings/Stairs/Railings Painting/Caulking: Exterior Wood {1,664 Sq. Ft. Trellis/Arbors/Posts} 1, ,615 1,827 2,067 1, ,225 1,385 1,567 5,760 28,188 6,051 6,847 7,746 9, ,438 11,810 13,362 9,693 10,438 11,810 13,362 1, ,523 1,723 1, Stucco {96,398 Sq. Ft. All} 120, , Doors {55 Building 1 & Garages} 4, ,442 5,026 5, Fence (Wrought Iron) {10,820 Lin. Ft. All} Railings (Wrought Iron) {1,741 Lin. Ft. } Gates (Wrought Iron) {1,242 Lin. Ft. All} 24, ,217 29,662 33,560 1, ,594 1,803 2,040 2, ,009 3,405 3, Chimney Caps {29 All} 1, , Retaining Walls {2,537 Lin. Ft. } 2, , Exterior Components {11,920 Sq. Ft. Concrete Planters} Exterior Components {1,591 Lin. Ft. Parapet roof} Total Painting/Caulking: Exterior Door Replacement Doors {17 Exterior, buildings 1, 2 and 3} Doors {24 Exterior, Garage Buildings 1 & 2} 10, ,345 1, , ,747 36, ,820 47,088 6, ,319 8, , Doors {5 Pool House} 1, , Doors {91 Interior, bldg's 1, 2, 3 & clubhouse} 32, , Doors {9 Roof Access} 7, , Doors {7 Trash, Bldg 1 & 2} 1, , Doors {14 Exterior Glass (all)} 11, ,922 Total Door Replacement 69,360 95,614 Richard Avelar & Associates to

12 Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Painting: Interior Corridors {76,854 Sq. Ft. Hallways - All} 73, ,707 91, Service Rooms {Utility Rooms} 5, ,253 6, Stairwells {38,344 Sq. Ft. All} 36, ,271 45, Doors {59 Common Area} 4, ,959 5,611 6, Fitness Room {1,214 Sq. Ft. } 1, ,275 1, Clubhouse {2,584 Sq. Ft. } 2, ,715 3, Restrooms {1,392 Sq. Ft. Poolhouse & clubhouse} 1, ,389 1, Garage (Interior) {7,605 Sq. Ft. Walls} 7, ,378 9,959 Total Painting: Interior 131, ,570 8,378 5, ,312 6,348 9, Structural Repairs Awnings {All} 12, Miscellaneous {Lower Plaza Areas} 358, ,341 Total Structural Repairs 370, , Roofing Low Slope: Single Ply {52,030 Sq. Ft. Replace, All Buildings} Downspouts {1,738 Lin. Ft. All} 15, Chimney Caps {29 All} 5, Roofing: Inspections & Repairs {All Buildings} Total Roofing 439, Re-Model / Upgrade 416, ,827 2, ,500 2,563 2,627 2,692 2,760 2,829 2,899 2,972 3,046 3,122 3,200 3,280 3,362 3,446 3,532 2,500 2,563 2,627 2,692 2,760 2,829 2,899 2,972 3, ,949 3,200 3,280 3,362 3,446 3, Clubhouse {repair fund} 2, ,101 2,498 Total Re-Model / Upgrade 2,000 2,101 2, Gate Equipment / Entry System Operators {2 Garage Bldg 1} 8, ,766 11, Operators {Garage Bldg 2} 4, , Operators {Main Entry Gate} 4, , Operators {Main Exit Gate} 4, ,383 5, Pavement Sensors {4 Main Gate} 3, , Swing Gate {2 Main} 5, , Gate Arm Control Assembly {2 Swing Arm, Main Gate} Keyless Entry System {Common Area Doors} 6, ,107 35, Entry Access System {Dial Up, Bldg 1} 5, Entry Access System {Dial Up, Bldg 2} 5, , Entry Access System {Dial Up, Main Gate} 5, ,389 Richard Avelar & Associates to

13 Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Pedestrian Gate {6 All} 3, , Auto Gate {Garage Bldg 2} 1, , Auto Gate {Garage Bldg 1 (main gate)} Auto Gate {Garage Bldg 1 (secondary gate)} 1, ,500 1, , Miscellaneous {4 Receivers} 2, ,606 Total Gate Equipment / Entry System 96,651 3,000 5,129 18,402 19,367 5,431 5,210 5,340 16, Pool Re-plaster {} 8, , Coping {pool deck} 1, ,200 1,292 1,392 1,499 1, Filter {} , Chlorinator {} Pumps {} Heater {} 2, ,500 3,200 Total Pool 14,250 4, ,292 1, ,248 14,209 1,181 1, Spa Re-Plaster {} 1, , Filter {} Chlorinator {} Pumps {2 } 1, ,077 1, Heater {} 2, ,050 2,624 Total Spa 5, ,050 1, ,816 2, Recreation / Fitness Equipment Sauna: Heaters {Mechanical} 2, , Sauna: Wood Replacement Fund {376 Sq. Ft. Cedar} 10, , Treadmill {} 4, ,415 5, Stationary Bike {Upright} 2, ,050 2, Stationary Bike {Sit Down} 2, , Stair Master {Elliptical} 4, , Bar Bells {} , Drinking Fountain {} 1, , Mirrors {7 } 1, , Weight Machine (Universal) {Universal Gym} 4, , Scale {} Work Out Bench {} Total Recreation / Fitness Equipment 34,321 1,616 2,050 14,096 9,868 2,263 2,345 6,388 2,757 5,652 Richard Avelar & Associates to

14 Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Landscaping Irrigation: Controllers {3 } 2, , Irrigation: Valves {24 } 5, ,412 7, Irrigation: Backflow Preventors {2 } 1, ,743 Total Landscaping 9,230 2,250 7,155 7, Fencing (Repair/Replace) Chain Link: 4' {188 Lin. Ft. Bldg 3} 2, , Chain Link: 6' {500 Lin. Ft. Bldg 3} 6, , Wrought Iron {164 Lin. Ft. Pool Fence (25%)} 1, ,987 2,248 2, Wrought Iron {40 Lin. Ft. Front Entry} 1, , Wrought Iron {598 Lin. Ft. Garages (25%)} Lighting Total Fencing (Repair/Replace) Exterior: Misc. Fixtures {4 Pole Lights 5'} Exterior: Misc. Fixtures {20 Pole Lights 8'} Exterior: Misc. Fixtures {26 Wall Mounted Lights} Exterior: Misc. Fixtures {206 Fluorescent Lights} Exterior: Misc. Fixtures {31 Landscape Lights} Interior Lights {190 Fluorescent Lights} 6, ,245 8,197 9,274 18,441 1, , , , , ,138 29, , Interior Lights {99 Emergency Lights} 24, , Interior Lights {78 Exit Lights} 14, , Interior Lights {5 Recessed Lights} Interior Lights {48 Surface Lights} 6, , Interior Lights {4 Spot Lights} ,232 1,987 10,445 22,939 Total Lighting 135,365 83,934 6, Signage Miscellaneous {23 Directional & Warning} Total Signage 1, Misc. Mechanical Equipment 1, , Water Heater {Pool Area} ,103 1,467 Total Misc. Mechanical Equipment , Elevator Cab Refurbish / Upgrade {3 All} 33, ,537 45, System Modernization {3 All} 165, ,454 Richard Avelar & Associates to

15 Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Load Test {All} 2, ,024 3,422 3,872 Total Elevator 200,740 35,537 3,024 3, ,945 3, Common Area Furnishings / Equipment Miscellaneous {Clubhouse Furnishings} 13, , Pool/Spa Furnishings {All} 3, ,231 3,936 Total Common Area Furnishings / Equipment 16,000 13,325 3,231 3, Flooring Carpeting {1,120 Sq. Ft. Bridge} 6, , Carpeting {1,370 Sq. Ft. Clubhouse} 7, , Carpeting {494 Sq. Ft. Fitness Room} 2, , Carpeting {3,996 Sq. Ft. Hallways, Bldg 1} Carpeting {8,280 Sq. Ft. Hallways, Bldg 2} Carpeting {3,996 Sq. Ft. Hallways, Bldg 3} Carpeting {376 Sq. Ft. Stairwell Bldg 1} Carpeting {502 Sq. Ft. Stairwell Bldg 2} Carpeting {168 Sq. Ft. Storage, Bldg 1} Carpeting {460 Sq. Ft. Utility Room, Bldg 1} Tile {524 Sq. Ft. Clubhouse Restrooms} 22, ,996 47, ,866 22, ,996 2, ,446 2, , ,093 2, ,993 6, , Vinyl {84 Sq. Ft. Poolhouse Restroom} Vinyl {168 Sq. Ft. Storage, Bldg 2} Vinyl {324 Sq. Ft. Trash Room, bldg 1} 1, , Vinyl {280 Sq. Ft. Trash Room, bldg 2} 1, ,327 Total Flooring 130, , , , Outdoor Equipment / Furnishings Benches {3 Courtyard Building 1} , Tables {2 Courtyard Bldg 2} Chairs {10 Courtyard Buildings 1 & 2} 2, , Umbrellas {2 Courtyard Bldg. 2} Total Outdoor Equipment / Furnishings 3,915 4, Miscellaneous Trellis {832 Lin. Ft. Trellis/Arbor (15%)} Mailboxes {All} 20, , ,360 3,801 4,301 Total Miscellaneous 23,120 3,360 3,801 4,301 Richard Avelar & Associates to

16 Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining Total Expenditures 2.50% 57,162 69, , , , ,536 43,518 50, , , ,292 47,667 76, ,791 49,652 Total Current Replacement Cost 2,532,377 Richard Avelar & Associates to

17 30 Year Expense Forecast - Detailed Reserve Component Restrooms Refurbish {Clubhouse (Womens)} 7, Refurbish {2 Pool Area} 14, Refurbish {Clubhouse (Mens)} 6,395 Total Restrooms Exterior Planters Planter (Reline) {11,920 Sq. Ft. Buildings 1 and 2} Planter (Repair) {11,920 Sq. Ft. Buildings 1 and 2} Total Exterior Planters 6,395 21, ,870 5, ,870 5, Mechanical Equip. - Fire Safety/Alarm System Five Year Certification {} 1,738 1,966 2, Control Panel {3 Addressable Fire Alarm Control Panel} Battery Back-Up {6 Yuasa 12AH} Pull Stations {36 All} 5, Fire Extinguishers/Cabinets {37 All} 9, Smoke Alarms {50 Alarm Bells} Power Supplies {2 Electrical & Fire Cable (bldg's 1 & 3)} Power Supplies {Electrical & Fire Cable (bldg 2)} Modules {6 Flow & Tamper} Relays {5 Addressable Relay} 1, Smoke Detectors {88 Common Area} 10,451 11,824 13, Drawings, Engineering, Submittals & Labor {All Buildings} Total Mechanical Equip. - Fire Safety/Alarm System Window Replacement Window Replacement Allowance {}[se:10] Total Window Replacement Siding/Trim (Repair/Replace) Stucco Siding {96,398 Sq. Ft. Repair Fund (20%)} Total Siding/Trim (Repair/Replace) Concrete (Partial Replacement) Courtyards & Garages {1,970 Sq. Ft. (5%)} 2,950 1,966 45,554 4,920 12,676 9, ,592 5, , ,207 37,113 38,040 38,991 39,966 40,965 41,990 43,039 44,115 45,218 46,349 47,507 48,695 49,912 51,160 36,207 37,113 38,040 38,991 39,966 40,965 41,990 43,039 44,115 45,218 46,349 47,507 48,695 49,912 51,160 36,084 46,190 36,084 46,190 3,297 3,731 4, Culvert {672 Sq. Ft. (5%)} 1,355 1,533 1, Stairs {1,160 Sq. Ft. Front Entry (5%)} 2,339 2,646 2,994 Richard Avelar & Associates to

18 30 Year Expense Forecast - Detailed Reserve Component Stamped {1,665 Sq. Ft. Front Entry (5%)} Total Concrete (Partial Replacement) Landings/Stairs/Railings Railings (Metal) {3,231 Lin. Ft. All (Partial Replacement) (10%)} Total Landings/Stairs/Railings Painting/Caulking: Exterior Wood {1,664 Sq. Ft. Trellis/Arbors/Posts} 1,773 2,006 2,270 8,764 9,916 11,219 15,118 17,104 19,352 15,118 17,104 19,352 2,206 2,496 2, Stucco {96,398 Sq. Ft. All} 187, , Doors {55 Building 1 & Garages} 6,434 7,279 8, Fence (Wrought Iron) {10,820 Lin. Ft. All} Railings (Wrought Iron) {1,741 Lin. Ft. } Gates (Wrought Iron) {1,242 Lin. Ft. All} 37,970 42,959 48,605 2,308 2,611 2,955 4,358 4,931 5, Chimney Caps {29 All} 2,262 2, Retaining Walls {2,537 Lin. Ft. } 3,363 4, Exterior Components {11,920 Sq. Ft. Concrete Planters} Exterior Components {1,591 Lin. Ft. Parapet roof} Total Painting/Caulking: Exterior Door Replacement Doors {17 Exterior, buildings 1, 2 and 3} Doors {24 Exterior, Garage Buildings 1 & 2} Doors {5 Pool House} 15,802 20,228 2,109 2, ,747 60, , Doors {91 Interior, bldg's 1, 2, 3 & clubhouse} Doors {9 Roof Access} Doors {7 Trash, Bldg 1 & 2} Doors {14 Exterior Glass (all)} Total Door Replacement Painting: Interior Corridors {76,854 Sq. Ft. Hallways - All} 108, , Service Rooms {Utility Rooms} 7,423 8, Stairwells {38,344 Sq. Ft. All} 54,076 64, Doors {59 Common Area} 7,182 8,126 9, Fitness Room {1,214 Sq. Ft. } 1,802 2,142 Richard Avelar & Associates to

19 30 Year Expense Forecast - Detailed Reserve Component Clubhouse {2,584 Sq. Ft. } 3,836 4, Restrooms {1,392 Sq. Ft. Poolhouse & clubhouse} 1,963 2, Garage (Interior) {7,605 Sq. Ft. Walls} 11,839 14,072 Total Painting: Interior 177,485 7,182 11,839 8, ,974 23, Structural Repairs Awnings {All} 21, Miscellaneous {Lower Plaza Areas} Total Structural Repairs 21, Roofing Low Slope: Single Ply {52,030 Sq. Ft. Replace, All Buildings} Downspouts {1,738 Lin. Ft. All} 27, Chimney Caps {29 All} 9, , Roofing: Inspections & Repairs {All Buildings} Total Roofing 3,621 3,711 3,804 3,899 3,997 4,097 4,199 4,304 4,412 4,522 4,635 4,751 4,870 4,991 5,116 3,621 3,711 3,804 3,899 13,037 4,097 4,199 4,304 4, ,049 4,635 4,751 4,870 4,991 5, Re-Model / Upgrade Clubhouse {repair fund} 2,969 3,529 Total Re-Model / Upgrade 2,969 3, Gate Equipment / Entry System Operators {2 Garage Bldg 1} 14, Operators {Garage Bldg 2} 6,669 8, Operators {Main Entry Gate} 6, Operators {Main Exit Gate} 7, Pavement Sensors {4 Main Gate} 6, Swing Gate {2 Main} Gate Arm Control Assembly {2 Swing Arm, Main Gate} Keyless Entry System {Common Area Doors} Entry Access System {Dial Up, Bldg 1} 7,805 55,953 11, Entry Access System {Dial Up, Bldg 2} 8, Entry Access System {Dial Up, Main Gate} Pedestrian Gate {6 All} 8, Auto Gate {Garage Bldg 2} Auto Gate {Garage Bldg 1 (main gate)} Auto Gate {Garage Bldg 1 (secondary gate)} Miscellaneous {4 Receivers} 4,270 Richard Avelar & Associates to

20 30 Year Expense Forecast - Detailed Reserve Component Total Gate Equipment / Entry System 7,805 62,622 6,836 8,405 21,546 31,735 8, Pool Re-plaster {} 14, Coping {pool deck} 1,738 1,872 2,015 2,170 2, Filter {} 1, Chlorinator {} Pumps {} 891 1, Heater {} 4,097 Total Pool 1, ,872 4,097 4,283 14,806 1,059 2,170 2, Spa Re-Plaster {} 2, Filter {} 936 1, Chlorinator {} Pumps {2 } 1,522 1, Heater {} 3,359 Total Spa 1, ,115 2,066 1,809 2, Recreation / Fitness Equipment Sauna: Heaters {Mechanical} 4, Sauna: Wood Replacement Fund {376 Sq. Ft. Cedar} Treadmill {} 7,235 20, Stationary Bike {Upright} 3, Stationary Bike {Sit Down} 3,043 4, Stair Master {Elliptical} 6,680 8, Bar Bells {} Drinking Fountain {} 2, Mirrors {7 } Weight Machine (Universal) {Universal Gym} Scale {} Work Out Bench {} Total Recreation / Fitness Equipment 2,340 7,333 3,043 4,853 7,235 3,708 30,506 4, Landscaping Irrigation: Controllers {3 } 3, Irrigation: Valves {24 } 9, Irrigation: Backflow Preventors {2 } 2,855 Total Landscaping 3,259 2,855 9, Fencing (Repair/Replace) Richard Avelar & Associates to

21 30 Year Expense Forecast - Detailed Reserve Component Chain Link: 4' {188 Lin. Ft. Bldg 3} Chain Link: 6' {500 Lin. Ft. Bldg 3} Wrought Iron {164 Lin. Ft. Pool Fence (25%)} Wrought Iron {40 Lin. Ft. Front Entry} 2,878 3,256 3, Wrought Iron {598 Lin. Ft. Garages (25%)} Lighting Total Fencing (Repair/Replace) Exterior: Misc. Fixtures {4 Pole Lights 5'} Exterior: Misc. Fixtures {20 Pole Lights 8'} Exterior: Misc. Fixtures {26 Wall Mounted Lights} Exterior: Misc. Fixtures {206 Fluorescent Lights} Exterior: Misc. Fixtures {31 Landscape Lights} Interior Lights {190 Fluorescent Lights} 10,493 11,871 13,431 13,370 15,127 17, Interior Lights {99 Emergency Lights} 44, Interior Lights {78 Exit Lights} 26, Interior Lights {5 Recessed Lights} 1, Interior Lights {48 Surface Lights} 11, Interior Lights {4 Spot Lights} 941 1,599 17,585 9,352 57,631 53,267 10,058 Total Lighting 86, ,536 10, Signage Miscellaneous {23 Directional & Warning} Total Signage 2,404 2, Misc. Mechanical Equipment Water Heater {Pool Area} 1,483 Total Misc. Mechanical Equipment 1, Elevator Cab Refurbish / Upgrade {3 All} 58, System Modernization {3 All} Load Test {All} 4,380 4,956 5,607 Total Elevator 4,380 58,232 4,956 5, Common Area Furnishings / Equipment Miscellaneous {Clubhouse Furnishings} 21, Pool/Spa Furnishings {All} 4,796 5,843 Richard Avelar & Associates to

22 30 Year Expense Forecast - Detailed Reserve Component Total Common Area Furnishings / Equipment 4,796 21,835 5, Flooring Carpeting {1,120 Sq. Ft. Bridge} 10, Carpeting {1,370 Sq. Ft. Clubhouse} 12, Carpeting {494 Sq. Ft. Fitness Room} 4, Carpeting {3,996 Sq. Ft. Hallways, Bldg 1} Carpeting {8,280 Sq. Ft. Hallways, Bldg 2} Carpeting {3,996 Sq. Ft. Hallways, Bldg 3} Carpeting {376 Sq. Ft. Stairwell Bldg 1} Carpeting {502 Sq. Ft. Stairwell Bldg 2} Carpeting {168 Sq. Ft. Storage, Bldg 1} Carpeting {460 Sq. Ft. Utility Room, Bldg 1} Tile {524 Sq. Ft. Clubhouse Restrooms} Vinyl {84 Sq. Ft. Poolhouse Restroom} Vinyl {168 Sq. Ft. Storage, Bldg 2} 1,071 1, Vinyl {324 Sq. Ft. Trash Room, bldg 1} 2,065 2, Vinyl {280 Sq. Ft. Trash Room, bldg 2} 1,784 2,400 37,650 78,015 37,650 3,543 4,730 1,583 4,334 Total Flooring 4, , , Outdoor Equipment / Furnishings Benches {3 Courtyard Building 1} 1, Tables {2 Courtyard Bldg 2} Chairs {10 Courtyard Buildings 1 & 2} 3, Umbrellas {2 Courtyard Bldg. 2} 560 Total Outdoor Equipment / Furnishings Miscellaneous Trellis {832 Lin. Ft. Trellis/Arbor (15%)} Mailboxes {All} Total Miscellaneous Total Expenditures 2.50% 6,259 4,866 5,506 6,229 4,866 5,506 6,229 64, ,867 62, , , ,905 93, , ,923 1,028,659 91,624 54, , ,190 74,513 Richard Avelar & Associates to

23 Section III Bridgewater Condominium Association 30 Year Reserve Funding Plan Cash Flow Method Beginning Balance Inflated 2.5% Reserve Contribution 103 Percentage Increase Special Assessments / Other Interest Pre 2.50% Ending Balance , , , , , , ,457 1,003,653 1,258, ,070 57,162 69, , , , ,536 43,518 50, , , , , , , , , , , , , % 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% ,779 14,846 15,745 15,877 17,066 18,576 21,989 27,924 26,151 16, , , , , , ,457 1,003,653 1,258, , ,713 Beginning Balance Inflated 2.5% Reserve Contribution 103 Percentage Increase Special Assessments / Other Interest Pre 2.50% Ending Balance , ,988 1,072,868 1,374,264 1,229,670 1,562,542 1,888,441 2,046,208 2,386,640 2,405, ,292 47,667 76, ,791 49,652 64, ,867 62, , , , , , , , , , , , , % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ,527 22,504 30,212 32,147 34,472 42,605 48,576 54,727 59,164 55, ,988 1,072,868 1,374,264 1,229,670 1,562,542 1,888,441 2,046,208 2,386,640 2,405,656 2,119,093 Beginning Balance Inflated 2.5% Reserve Contribution 103 Percentage Increase Special Assessments / Other Interest Pre 2.50% Ending Balance ,119,093 2,179,324 2,491,901 2,801,526 2,761,360 2,141,310 2,454,510 2,812,966 3,130,938 3,039, ,905 93, , ,923 1,028,659 91,624 54, , ,190 74, , , , , , , , , , , % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ,067 57,669 65,351 68,678 60,527 56,739 65,031 73,382 76,172 79,395 2,179,324 2,491,901 2,801,526 2,761,360 2,141,310 2,454,510 2,812,966 3,130,938 3,039,014 3,391,993 Richard Avelar & Associates

24 Fund Balance Section III-a Bridgewater Condominium Association 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Years Richard Avelar & Associates

25 Section IV Bridgewater Condominium Association 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 ,980 1,240, % 57, , , , ,103 1,385, % 69, , , , ,408 1,531, % 186, , , , ,941 1,563, % 168, , , , ,095 1,621, % 142, , , , ,233 1,711, % 189, , , , ,457 1,760, % 43, , ,989 1,003, ,003,653 1,964, % 50, , ,924 1,258, ,258,160 2,172, % 734, , , , ,070 1,688, % 717, , , , ,713 1,216, % 121, , , , ,988 1,349, % 47, , ,504 1,072, ,072,868 1,566, % 76, , ,212 1,374, ,374,264 1,764, % 524, , ,147 1,229, ,229,670 1,515, % 49, , ,472 1,562, ,562,542 1,752, % 64, , ,605 1,888, ,888,441 1,985, % 238, , ,576 2,046, ,046,208 2,053, % 62, , ,727 2,386, ,386,640 2,310, % 388, , ,164 2,405, ,405,656 2,246, % 690, , ,861 2,119, ,119,093 1,877, % 340, , ,067 2,179, ,179,324 1,865, % 93, , ,669 2,491, ,491,901 2,113, % 103, , ,351 2,801, ,801,526 2,364, % 456, , ,678 2,761, ,761,360 2,267, % 1,028, , ,527 2,141, ,141,310 1,590, % 91, , ,739 2,454, ,454,510 1,864, % 54, , ,031 2,812, ,812,966 2,191, % 103, , ,382 3,130, ,130,938 2,484, % 516, , ,172 3,039, ,039,014 2,370, % 74, , ,395 3,391,993 Interest Ending Balance Richard Avelar & Associates

26 Percent Funded Section IV-a Bridgewater Condominium Association 30 Year Reserve Funding Plan Cash Flow Method - Percent Funded Years Richard Avelar & Associates

27 Section V Bridgewater Condominium Association Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method Restrooms Refurbish {Clubhouse (Womens)} 4, , ,200 3, % Refurbish {Clubhouse (Mens)} 4, , % Refurbish {2 Pool Area} 8, , ,400 6, % 297 Sub-total [ Restrooms] 16,000 19, ,800 10, % Exterior Planters Planter (Reline) {11,920 Sq. Ft. Buildings 1 and 2} 292, ,870 23,343 14,602 29, % 15, Planter (Repair) {11,920 Sq. Ft. Buildings 1 and 2} 3, , % 280 Sub-total [ Exterior Planters] 295, ,447 23,760 14,927 30, % 15, Mechanical Equip. - Fire Safety/Alarm System Five Year Certification {} 1, , % Control Panel {3 Addressable Fire Alarm Control Panel} 2, , ,637 3, % Battery Back-Up {6 Yuasa 12AH} % Pull Stations {36 All} 3, , , % Fire Extinguishers/Cabinets {37 All} 6, , ,888 6, % Smoke Alarms {50 Alarm Bells} 6, , ,750 4, % Power Supplies {2 Electrical & Fire Cable (bldg's 1 & 3)} 1, , , % Power Supplies {Electrical & Fire Cable (bldg 2)} 1, , , % Modules {6 Flow & Tamper} % Relays {5 Addressable Relay} % Smoke Detectors {88 Common Area} 7, ,216 1,443 7,216 1, % Drawings, Engineering, Submittals & Labor {All Buildings} 27, ,800 2,780 27,800 2, % 1,872 Sub-total [ Mechanical Equip. - Fire Safety/Alarm System] Window Replacement 59,515 61,654 6,174 55,301 18, % 4, Window Replacement Allowance {}[se:10] 250, ,087 28, , , % 19, Siding/Trim (Repair/Replace) Stucco Siding {96,398 Sq. Ft. Repair Fund (20%)} 23, ,188 2,819 4,627 7, % 1,898 Richard Avelar & Associates

28 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method Concrete (Partial Replacement) Courtyards & Garages {1,970 Sq. Ft. (5%)} 2, , ,300 1, % Culvert {672 Sq. Ft. (5%)} % Stairs {1,160 Sq. Ft. Front Entry (5%)} 1, , , % Stamped {1,665 Sq. Ft. Front Entry (5%)} 1, , % 165 Sub-total [ Concrete (Partial Replacement)] 5,760 6,051 1,210 3,456 4, % Landings/Stairs/Railings Railings (Metal) {3,231 Lin. Ft. All (Partial Replacement) (10%)} Painting/Caulking: Exterior 9, ,438 2,088 3,877 5, % 1, Wood {1,664 Sq. Ft. Trellis/Arbors/Posts} 1, , % Stucco {96,398 Sq. Ft. All} 120, ,815 14,681 24,100 37, % 9, Doors {55 Building 1 & Garages} 4, , ,650 2, % Fence (Wrought Iron) {10,820 Lin. Ft. All} 24, ,217 5,243 9,738 14, % 3, Railings (Wrought Iron) {1,741 Lin. Ft. } 1, , % Gates (Wrought Iron) {1,242 Lin. Ft. All} 2, , ,118 1, % Chimney Caps {29 All} 1, , % Retaining Walls {2,537 Lin. Ft. } 2, , % Exterior Components {11,920 Sq. Ft. Concrete Planters} 10, ,345 1,234 2,026 3, % Exterior Components {1,591 Lin. Ft. Parapet roof} 1, , % 111 Sub-total [ Painting/Caulking: Exterior] 169, ,986 23,877 40,781 62, % 16, Door Replacement Doors {17 Exterior, buildings 1, 2 and 3} 6, , ,420 3, % Doors {24 Exterior, Garage Buildings 1 & 2} 8, , ,828 5, % Doors {5 Pool House} 1, , ,006 1, % Doors {91 Interior, bldg's 1, 2, 3 & clubhouse} 32, ,533 1,484 18,306 19, % Doors {9 Roof Access} 7, , ,208 4, % Doors {7 Trash, Bldg 1 & 2} 1, , % Doors {14 Exterior Glass (all)} 11, , ,545 7, % 357 Sub-total [ Door Replacement] 69,360 95,614 3,227 38,925 42, % 2,173 Richard Avelar & Associates

29 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method Painting: Interior Corridors {76,854 Sq. Ft. Hallways - All} 73, ,707 10,958 52,151 64, % 7, Service Rooms {Utility Rooms} 5, , ,571 4, % Stairwells {38,344 Sq. Ft. All} 36, ,271 5,467 26,019 32, % 3, Doors {59 Common Area} 4, , ,832 3, % Fitness Room {1,214 Sq. Ft. } 1, , , % Clubhouse {2,584 Sq. Ft. } 2, , ,846 2, % Restrooms {1,392 Sq. Ft. Poolhouse & clubhouse} 1, , , % Garage (Interior) {7,605 Sq. Ft. Walls} 7, ,378 1,197 1,032 2, % 806 Sub-total [ Painting: Interior] 131, ,949 20,133 89, , % 13, Structural Repairs Awnings {All} 12, , % Miscellaneous {Lower Plaza Areas} 358, ,341 8, , , % 5,889 Sub-total [ Structural Repairs] 370, ,046 9, , , % 6, Roofing Low Slope: Single Ply {52,030 Sq. Ft. Replace, All Buildings} 416, ,827 34, , , % 23, Downspouts {1,738 Lin. Ft. All} 15, ,663 1, , % Chimney Caps {29 All} 5, , ,357 1, % Roofing: Inspections & Repairs {All Buildings} 2, ,500 2,500 2,500 2, % 1,683 Sub-total [ Roofing] 439, ,030 38, , , % 26, Re-Model / Upgrade Clubhouse {repair fund} 2, , ,429 1, % 202 Richard Avelar & Associates

30 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method Gate Equipment / Entry System Operators {2 Garage Bldg 1} 8, , ,675 7, % Operators {Garage Bldg 2} 4, , % Operators {Main Entry Gate} 4, , % Operators {Main Exit Gate} 4, , ,337 3, % Pavement Sensors {4 Main Gate} 3, , ,366 3, % Swing Gate {2 Main} 5, , ,667 4, % Gate Arm Control Assembly {2 Swing Arm, Main Gate} 6, , ,610 6, % Keyless Entry System {Common Area Doors} 35, ,953 2,798 1,750 3, % 1, Entry Access System {Dial Up, Bldg 1} 5, , % Entry Access System {Dial Up, Bldg 2} 5, , ,754 5, % Entry Access System {Dial Up, Main Gate} 5, , ,253 4, % Pedestrian Gate {6 All} 3, , ,750 2, % Auto Gate {Garage Bldg 2} 1, , ,250 1, % Auto Gate {Garage Bldg 1 (main gate)} 1, , , % Auto Gate {Garage Bldg 1 (secondary gate)} 1, , , % Miscellaneous {4 Receivers} 2, , ,057 2, % 88 Sub-total [ Gate Equipment / Entry System] 96, ,636 7,190 44,766 48, % 4, Pool Re-plaster {} 8, , ,433 2, % Coping {pool deck} 1, , , % Filter {} % Chlorinator {} % Pumps {} % Heater {} 2, , , % 168 Sub-total [ Pool] 14,250 16,712 1,814 6,822 4, % 1, Spa Re-Plaster {} 1, , % Filter {} % Chlorinator {} % Pumps {2 } 1, , % Heater {} 2, , ,800 2, % 138 Sub-total [ Spa] 5,250 5, ,141 3, % 420 Richard Avelar & Associates

31 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method Recreation / Fitness Equipment Sauna: Heaters {Mechanical} 2, , ,338 2, % Sauna: Wood Replacement Fund {376 Sq. Ft. Cedar} 10, , ,099 9, % Treadmill {} 4, , ,400 2, % Stationary Bike {Upright} 2, , ,833 2, % Stationary Bike {Sit Down} 2, , ,167 1, % Stair Master {Elliptical} 4, , ,000 3, % Bar Bells {} , % Drinking Fountain {} 1, , , % Mirrors {7 } 1, , ,412 1, % Weight Machine (Universal) {Universal Gym} 4, , ,600 1, % Scale {} % Work Out Bench {} % 14 Sub-total [ Recreation / Fitness Equipment] 34,321 38,627 2,354 25,058 26, % 1, Landscaping Irrigation: Controllers {3 } 2, , , % Irrigation: Valves {24 } 5, , ,840 5, % Irrigation: Backflow Preventors {2 } 1, , ,615 1, % 59 Sub-total [ Landscaping] 9,230 9, ,705 7, % Fencing (Repair/Replace) Chain Link: 4' {188 Lin. Ft. Bldg 3} 2, , ,396 1, % Chain Link: 6' {500 Lin. Ft. Bldg 3} 6, , ,050 4, % Wrought Iron {164 Lin. Ft. Pool Fence (25%)} 1, , , % Wrought Iron {40 Lin. Ft. Front Entry} 1, , ,560 1, % Wrought Iron {598 Lin. Ft. Garages (25%)} 6, ,245 1,449 2,691 4, % 976 Sub-total [ Fencing (Repair/Replace)] 18,441 22,340 2,191 10,435 12, % 1,475 Richard Avelar & Associates

32 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method Lighting Exterior: Misc. Fixtures {4 Pole Lights 5'} 1, , % Exterior: Misc. Fixtures {20 Pole Lights 8'} 11, , , % Exterior: Misc. Fixtures {26 Wall Mounted Lights} 5, , % Exterior: Misc. Fixtures {206 Fluorescent Lights} 36, ,631 2,882 1,803 3, % 1, Exterior: Misc. Fixtures {31 Landscape Lights} 5, , ,069 4, % Interior Lights {190 Fluorescent Lights} 29, ,507 1,625 23,560 25, % 1, Interior Lights {99 Emergency Lights} 24, ,319 1,366 19,800 21, % Interior Lights {78 Exit Lights} 14, , ,544 12, % Interior Lights {5 Recessed Lights} % Interior Lights {48 Surface Lights} 6, , ,992 5, % Interior Lights {4 Spot Lights} % 19 Sub-total [ Lighting] 135, ,239 8,812 67,596 76, % 5, Signage Miscellaneous {23 Directional & Warning} 1, , % Misc. Mechanical Equipment Water Heater {Pool Area} % Elevator Cab Refurbish / Upgrade {3 All} 33, ,537 3,554 23,100 27, % 2, System Modernization {3 All} 165, ,454 7,582 93, , % 5, Load Test {All} 2, , , % 407 Sub-total [ Elevator] 200, ,016 11, , , % 7, Common Area Furnishings / Equipment Miscellaneous {Clubhouse Furnishings} 13, , ,350 13, % Pool/Spa Furnishings {All} 3, , ,875 2, % 272 Sub-total [ Common Area Furnishings / Equipment] 16,000 16,556 1,070 14,225 15, % 720 Richard Avelar & Associates

33 Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method Flooring Carpeting {1,120 Sq. Ft. Bridge} 6, , ,293 4, % Carpeting {1,370 Sq. Ft. Clubhouse} 7, , ,252 5, % Carpeting {494 Sq. Ft. Fitness Room} 2, , ,894 2, % Carpeting {3,996 Sq. Ft. Hallways, Bldg 1} 22, ,996 1,733 15,318 17, % 1, Carpeting {8,280 Sq. Ft. Hallways, Bldg 2} 47, ,866 3,591 31,740 35, % 2, Carpeting {3,996 Sq. Ft. Hallways, Bldg 3} 22, ,996 1,733 15,318 17, % 1, Carpeting {376 Sq. Ft. Stairwell Bldg 1} 2, , ,441 1, % Carpeting {502 Sq. Ft. Stairwell Bldg 2} 2, , ,924 2, % Carpeting {168 Sq. Ft. Storage, Bldg 1} , % Carpeting {460 Sq. Ft. Utility Room, Bldg 1} 2, , ,763 1, % Tile {524 Sq. Ft. Clubhouse Restrooms} 6, , ,669 4, % Vinyl {84 Sq. Ft. Poolhouse Restroom} % Vinyl {168 Sq. Ft. Storage, Bldg 2} % Vinyl {324 Sq. Ft. Trash Room, bldg 1} 1, , ,069 1, % Vinyl {280 Sq. Ft. Trash Room, bldg 2} 1, , , % 74 Sub-total [ Flooring] 130, ,632 9,579 87,174 97, % 6, Outdoor Equipment / Furnishings Benches {3 Courtyard Building 1} , % Tables {2 Courtyard Bldg 2} % Chairs {10 Courtyard Buildings 1 & 2} 2, , , % Umbrellas {2 Courtyard Bldg. 2} % 23 Sub-total [ Outdoor Equipment / Furnishings] 3,915 4, ,631 2, % Miscellaneous Trellis {832 Lin. Ft. Trellis/Arbor (15%)} 3, , ,248 1, % Mailboxes {All} 20, % 0 Sub-total [ Miscellaneous] 23,120 3, ,576 2, % 452 Totals 2,532,377 3,177, ,781 1,240,013 1,385, % 140,567 [A] [EndBal] [A] [B] [EndBal] [B] Percent Funded 45.01% 46.50% Richard Avelar & Associates

34 Section VI Bridgewater Condominium Association Component Listing Included Components Restrooms Refurbish Useful 20 Clubhouse (Womens) Quantity 1 Unit of Measure Items Cost /Itm $4, % Total Cost/Study $4,000 Replacement Year 2015 Future Cost $4, Refurbish Useful 20 2 Pool Area Quantity 2 Unit of Measure Items Cost /Itm $4, % Total Cost/Study $8,000 Replacement Year 2015 Future Cost $8, Refurbish Useful 20 Clubhouse (Mens) Quantity 1 Unit of Measure Items Cost /Itm $4, % Total Cost/Study $4,000 Replacement Year 2030 Future Cost $6, Exterior Planters Planter (Reline) Useful 20 11,920 Sq. Ft. Buildings 1 and 2 Quantity 11,920 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $292,040 Replacement Year 2030 Future Cost $466,870 Richard Avelar & Associates

35 Component Listing Included Components Exterior Planters Planter (Repair) Useful 10 11,920 Sq. Ft. Buildings 1 and 2 Quantity 11,920 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $3,576 Replacement Year 2021 Future Cost $4, Mechanical Equip. - Fire Safety/Alarm System Five Year Certification Useful 5 Quantity 1 Unit of Measure Fund Cost /Fnd $1, % Total Cost/Study $1,200 Replacement Year 2016 Future Cost $1, Control Panel Useful 10 3 Addressable Fire Alarm Control Panel Quantity 3 Unit of Measure Items Cost /Itm $ % Total Cost/Study $2,930 Replacement Year 2012 Future Cost $3, Battery Back-Up Useful 3 6 Yuasa 12AH Quantity 6 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $ % Total Cost/Study $336 Replacement Year 2011 Future Cost $ Pull Stations Useful All Quantity 36 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $ % Total Cost/Study $3,276 Replacement Year 2011 Future Cost $3,276 0 Richard Avelar & Associates

36 Component Listing Included Components Mechanical Equip. - Fire Safety/Alarm System Fire Extinguishers/Cabinets Useful All Quantity 37 Unit of Measure Items Cost /Itm $ % Total Cost/Study $6,309 Replacement Year 2012 Future Cost $6, Smoke Alarms Useful Alarm Bells Quantity 50 Unit of Measure Items Cost /Itm $ % Total Cost/Study $6,250 Replacement Year 2021 Future Cost $8, Power Supplies Useful 20 2 Electrical & Fire Cable (bldg's 1 & 3) Quantity 2 Unit of Measure Items Replacement for buildings 1 and 3 Cost /Itm $ % Total Cost/Study $1,800 Replacement Year 2011 Future Cost $1, Power Supplies Useful 20 Electrical & Fire Cable (bldg 2) Quantity 1 Unit of Measure Items Cost /Itm $1, % Total Cost/Study $1,200 Replacement Year 2011 Future Cost $1, Modules Useful 10 6 Flow & Tamper Quantity 6 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $ % Total Cost/Study $464 Replacement Year 2011 Future Cost $464 0 Richard Avelar & Associates

37 Component Listing Included Components Relays Mechanical Equip. - Fire Safety/Alarm System Useful 20 5 Addressable Relay Quantity 5 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $ % Total Cost/Study $735 Replacement Year 2011 Future Cost $ Smoke Detectors Useful 5 88 Common Area Quantity 88 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $ % Total Cost/Study $7,216 Replacement Year 2011 Future Cost $7, Drawings, Engineering, Submittals & Labor Useful 10 All Buildings Quantity 1 Unit of Measure Fund Cost /Fnd $27, % Total Cost/Study $27,800 Replacement Year 2011 Future Cost $27,800 This line item is for the fees associational with the replacement of the fire alarm components. Costing provided by Fire & Security Alarm Company Window Replacement Window Replacement Allowance Useful 10 Quantity 1 Unit of Measure Fund Cost /Fnd $250, % 1 Treatment [se:10] Total Cost/Study $250,000 Replacement Year 2012 Future Cost $319,888 This is a replacement fund established for the partial replacement of windows during each painting cycle. Richard Avelar & Associates

38 Component Listing Included Components Siding/Trim (Repair/Replace) Stucco Siding Useful 10 96,398 Sq. Ft. Repair Fund (20%) Quantity 96,398 Unit of Measure Square Feet Cost /SqFt $1.20 Qty * $/SqFt $115, % Total Cost/Study $23,136 Replacement Year 2019 Future Cost $28,188 This line item is established as a repair fund to include repair and/or replacement of stucco surfaces, if necessary. This line item is scheduled to coincide with the painting of the stucco surfaces and includes stucco throughout the Association. The stucco repairs involved during the window replacement is included within the window replacement cost Concrete (Partial Replacement) Courtyards & Garages Useful 5 1,970 Sq. Ft. (5%) Quantity 1,970 Unit of Measure Square Feet Cost /SqFt $22.00 Qty * $/SqFt $43, % Total Cost/Study $2,167 Replacement Year 2013 Future Cost $2, Culvert Useful Sq. Ft. (5%) Quantity 672 Unit of Measure Square Feet Cost /SqFt $26.50 Qty * $/SqFt $17, % Total Cost/Study $890 Replacement Year 2013 Future Cost $ Stairs Useful 5 1,160 Sq. Ft. Front Entry (5%) Quantity 1,160 Unit of Measure Square Feet Cost /SqFt $26.50 Qty * $/SqFt $30, % Total Cost/Study $1,537 Replacement Year 2013 Future Cost $1,615 2 Richard Avelar & Associates

39 Component Listing Included Components Stamped Concrete (Partial Replacement) Useful 5 1,665 Sq. Ft. Front Entry (5%) Quantity 1,665 Unit of Measure Square Feet Cost /SqFt $14.00 Qty * $/SqFt $23,310 This is to repair, replace the stamped concrete at the front entry 5.00% Total Cost/Study $1,166 Replacement Year 2013 Future Cost $1, Landings/Stairs/Railings Railings (Metal) 3,231 Lin. Ft. All (Partial Replacement) (10%) Useful 5 Quantity 3,231 Unit of Measure Linear Feet Cost /l.f. $30.00 Qty * $/l.f. $96, % Total Cost/Study $9,693 Replacement Year 2014 Future Cost $10,438 3 This is a partial replacement line item established to perform repairs, as necessary, with every paint cycle Wood Painting/Caulking: Exterior Useful 5 1,664 Sq. Ft. Trellis/Arbors/Posts Quantity 1,664 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $1,414 Replacement Year 2014 Future Cost $1,523 To paint the wood trellis/arbors and posts at the pool house and clubhouse 3 Richard Avelar & Associates

40 Component Listing Included Components Stucco Painting/Caulking: Exterior Useful 10 96,398 Sq. Ft. All Quantity 96,398 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $120,498 Replacement Year 2019 Future Cost $146,815 This is to paint the stucco surfaces of all buildings, including the pool house Doors Useful 5 55 Building 1 & Garages Quantity 55 Unit of Measure Items Cost /Itm $ % Total Cost/Study $4,125 Replacement Year 2014 Future Cost $4,442 This line item is to paint/refinish the exterior common area doors at building 1, garages at buildings 1 and 2 and the pool house Fence (Wrought Iron) Useful 5 10,820 Lin. Ft. All Quantity 10,820 Unit of Measure Linear Feet Cost /l.f. $ % Total Cost/Study $24,345 Replacement Year 2014 Future Cost $26,217 This is to paint/coat the wrought iron of the fencing located at the Association's front entry, pool house and garages Railings (Wrought Iron) Useful 5 1,741 Lin. Ft. Quantity 1,741 Unit of Measure Linear Feet Cost /l.f. $ % Total Cost/Study $1,480 Replacement Year 2014 Future Cost $1,594 This is to paint/coat the railings. The coating on the surface of all metal handrails helps protect the metal from the two components needed to form rust: water & air. If the coating becomes thin or scratched, rust will start to form and spread beneath th 3 Richard Avelar & Associates

41 Component Listing Included Components Painting/Caulking: Exterior Gates (Wrought Iron) Useful 5 1,242 Lin. Ft. All Quantity 1,242 Unit of Measure Linear Feet Cost /l.f. $ % Total Cost/Study $2,795 Replacement Year 2014 Future Cost $3,009 This is to paint/coat wrought iron gates throughout the Association. Includes vehicle and pedestrian gates at the garages, front entry and pool house Chimney Caps Useful All Quantity 29 Unit of Measure Items This is to prep and paint chimney caps Cost /Itm $ % Total Cost/Study $1,450 Replacement Year 2019 Future Cost $1, Retaining Walls Useful 10 2,537 Lin. Ft. Quantity 2,537 Unit of Measure Linear Feet Cost /l.f. $ % Total Cost/Study $2,156 Replacement Year 2019 Future Cost $2, Exterior Components Useful 10 11,920 Sq. Ft. Concrete Planters Quantity 11,920 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $10,132 Replacement Year 2019 Future Cost $12, Exterior Components Useful 10 1,591 Lin. Ft. Parapet roof Quantity 1,591 Unit of Measure Linear Feet Cost /l.f. $ % Total Cost/Study $1,352 Replacement Year 2019 Future Cost $1,648 8 Richard Avelar & Associates

42 Component Listing Included Components Doors Door Replacement Useful Exterior, buildings 1, 2 and 3 Quantity 17 Unit of Measure Items Cost /Itm $ % Total Cost/Study $6,035 Replacement Year 2024 Future Cost $8, Doors Useful Exterior, Garage Buildings 1 & 2 Quantity 24 Unit of Measure Items Cost /Itm $ % Total Cost/Study $8,520 Replacement Year 2024 Future Cost $11, Doors Useful 30 5 Pool House Quantity 5 Unit of Measure Items Cost /Itm $ % Total Cost/Study $1,775 Replacement Year 2024 Future Cost $2, Doors Useful Interior, bldg's 1, 2, 3 & clubhouse Quantity 91 Unit of Measure Items Cost /Itm $ % Total Cost/Study $32,305 Replacement Year 2024 Future Cost $44, Doors Useful 30 9 Roof Access Quantity 9 Unit of Measure Items Cost /Itm $ % Total Cost/Study $7,425 Replacement Year 2024 Future Cost $10, Doors Useful 20 7 Trash, Bldg 1 & 2 Quantity 7 Unit of Measure Items Cost /Itm $ % Total Cost/Study $1,750 Replacement Year 2024 Future Cost $2, Doors Useful Exterior Glass (all) Quantity 14 Unit of Measure Items Cost /Itm $ % Total Cost/Study $11,550 Replacement Year 2024 Future Cost $15,922 Richard Avelar & Associates

43 Component Listing Included Components Corridors Painting: Interior Useful 7 76,854 Sq. Ft. Hallways - All Quantity 76,854 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $73,011 Replacement Year 2013 Future Cost $76, Service Rooms Useful 7 Utility Rooms Quantity 1 Unit of Measure Fund Cost /Fnd $5, % Total Cost/Study $5,000 Replacement Year 2013 Future Cost $5,253 This line item is to paint the interior utility rooms and includes the pool equipment room Stairwells Useful 7 38,344 Sq. Ft. All Quantity 38,344 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $36,427 Replacement Year 2013 Future Cost $38,271 This line item is to paint the interior stairways of all buildings (including the clubhouse) Doors Useful 5 59 Common Area Quantity 59 Unit of Measure Items Cost /Itm $ % Total Cost/Study $4,720 Replacement Year 2013 Future Cost $4,959 This line item is to paint/refinish the common area interior doors at buildings 1 and Fitness Room Useful 7 1,214 Sq. Ft. Quantity 1,214 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $1,214 Replacement Year 2013 Future Cost $1, Clubhouse Useful 7 2,584 Sq. Ft. Quantity 2,584 Unit of Measure Square Feet This is to paint the clubhouse interior. Cost /SqFt $ % Total Cost/Study $2,584 Replacement Year 2013 Future Cost $2,715 2 Richard Avelar & Associates

44 Component Listing Included Components Restrooms Painting: Interior Useful 7 1,392 Sq. Ft. Poolhouse & clubhouse Quantity 1,392 Unit of Measure Square Feet This is to paint restroom interiors. Cost /SqFt $ % Total Cost/Study $1,322 Replacement Year 2013 Future Cost $1, Garage (Interior) Useful 7 7,605 Sq. Ft. Walls Quantity 7,605 Unit of Measure Square Feet Cost /SqFt $ % Total Cost/Study $7,225 Replacement Year 2017 Future Cost $8, Awnings Structural Repairs Useful 25 All Quantity 1 Unit of Measure Fund This is to replace the awnings. Cost /Fnd $12, % Total Cost/Study $12,000 Replacement Year 2035 Future Cost $21, Miscellaneous Useful 50 Lower Plaza Areas Quantity 1 Unit of Measure Lump Sum Cost /LS $358, % Total Cost/Study $358,946 Replacement Year 2019 Future Cost $437,341 This line item is to repair the lower plaza area. The upper plaza repairs were completed with the recent 2009/10 reconstruction project. Cost information is a budget estimate only. Information provided by Cesar Mendes of Draeger Construction. 8 Richard Avelar & Associates

45 Component Listing Included Components Roofing Low Slope: Single Ply Useful 15 52,030 Sq. Ft. Replace, All Buildings Quantity 52,030 Unit of Measure Square Feet This is to re-roof with a single ply roofing product. Cost /SqFt $ % Total Cost/Study $416,240 Replacement Year 2020 Future Cost $519,827 9 Costing provided by State Roofing Systems Downspouts Useful 25 1,738 Lin. Ft. All Quantity 1,738 Unit of Measure Linear Feet Cost /l.f. $ % Total Cost/Study $15,294 Replacement Year 2035 Future Cost $27,663 This line item is for the replacement of downspouts on all residential buildings and the pool house Chimney Caps Useful All Quantity 29 Unit of Measure Items Cost /Itm $ % Total Cost/Study $5,655 Replacement Year 2030 Future Cost $9,040 This line item is to replace all chimney caps (9 on bldg 1; 13 on bldg 2; 7 on bldg 3) Roofing: Inspections & Repairs Useful 1 All Buildings Quantity 1 Unit of Measure Lump Sum Cost /LS $2, % Total Cost/Study $2,500 Replacement Year 2011 Future Cost $2,500 This is to inspect and perform periodic maintenance as needed to the roofing. 0 Richard Avelar & Associates

46 Component Listing Included Components Clubhouse Re-Model / Upgrade Useful 7 repair fund Quantity 1 Unit of Measure Fund Cost /Fnd $2, % Total Cost/Study $2,000 Replacement Year 2013 Future Cost $2,101 This is a general repair fund established to perform miscellaneous interior clubhouse repairs, as necessary, during the interior painting project Operators Gate Equipment / Entry System Useful 10 2 Garage Bldg 1 Quantity 2 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operators at garage building 1 Costing provided by Rex Key & Security % Total Cost/Study $8,344 Replacement Year 2013 Future Cost $8, Operators Useful 10 Garage Bldg 2 Quantity 1 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operator at garage building 2 Costing provided by Rex Key & Security % Total Cost/Study $4,172 Replacement Year 2020 Future Cost $5, Operators Useful 10 Main Entry Gate Quantity 1 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operator at the main entry gate Costing provided by Rex Key & Security % Total Cost/Study $4,172 Replacement Year 2021 Future Cost $5, Operators Useful 10 Main Exit Gate Quantity 1 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operator at the main exit gate Costing provided by Rex Key & Security % Total Cost/Study $4,172 Replacement Year 2013 Future Cost $4,383 2 Richard Avelar & Associates

47 Component Listing Included Components Gate Equipment / Entry System Pavement Sensors Useful 20 4 Main Gate Quantity 4 Unit of Measure Items Cost /Itm $ % Total Cost/Study $3,960 Replacement Year 2014 Future Cost $4, Swing Gate Useful 30 2 Main Quantity 2 Unit of Measure Items Cost /Itm $2, % Total Cost/Study $5,000 Replacement Year 2013 Future Cost $5,253 This is to replace the swing gates at the entry (1 entrance gate, 1 exit gate) Gate Arm Control Assembly Useful 20 2 Swing Arm, Main Gate Quantity 2 Unit of Measure Items Cost /Itm $3, % Total Cost/Study $6,600 Replacement Year 2014 Future Cost $7,107 3 Richard Avelar & Associates

48 Component Listing Included Components Gate Equipment / Entry System Keyless Entry System Useful 20 Common Area Doors Quantity 1 Unit of Measure Lump Sum Cost /LS $35, % Total Cost/Study $35,000 Replacement Year 2030 Future Cost $55, Entry Access System Useful 20 Dial Up, Bldg 1 Quantity 1 Unit of Measure Items Cost /Itm $5, % Total Cost/Study $5,004 Replacement Year 2029 Future Cost $7, Entry Access System Useful 20 Dial Up, Bldg 2 Quantity 1 Unit of Measure Items Cost /Itm $5, % Total Cost/Study $5,004 Replacement Year 2012 Future Cost $5, Entry Access System Useful 20 Dial Up, Main Gate Quantity 1 Unit of Measure Items Cost /Itm $5, % Total Cost/Study $5,004 Replacement Year 2014 Future Cost $5,389 3 Richard Avelar & Associates

49 Component Listing Included Components Gate Equipment / Entry System Pedestrian Gate Useful 30 6 All Quantity 6 Unit of Measure Items This is to repair the pedestrian gates. Cost /Itm $ % Total Cost/Study $3,300 Replacement Year 2016 Future Cost $3, Auto Gate Useful 30 Garage Bldg 2 Quantity 1 Unit of Measure Items Cost /Itm $1, % Total Cost/Study $1,500 Replacement Year 2016 Future Cost $1, Auto Gate Useful 30 Garage Bldg 1 (main gate) Quantity 1 Unit of Measure Items Cost /Itm $1, % Total Cost/Study $1,500 Replacement Year 2011 Future Cost $1,500 This line item is for the replacement of the main vehicle gate at Building 1 garage. Per Rex Key & Security this gate has been repaired multiple times and is in need of replacement. 0 Costing provided by Rex Key & Security Richard Avelar & Associates

50 Component Listing Included Components Auto Gate Gate Equipment / Entry System Useful 30 Garage Bldg 1 (secondary gate) Quantity 1 Unit of Measure Items Cost /Itm $1, % Total Cost/Study $1,500 Replacement Year 2011 Future Cost $1,500 This line item is to replace the secondary gate (most commonly used to taking garbage out) at Building 1 garage. Per Rex Key & Security this gate is in need of replacement. Costing provided by Rex Key & Security Miscellaneous Useful 20 4 Receivers Quantity 4 Unit of Measure Items Cost /Itm $ % Total Cost/Study $2,420 Replacement Year 2014 Future Cost $2,606 This line item is to replace the receivers at all gates (garages and main) Pool Re-plaster Useful 12 Quantity 1 Unit of Measure Items Cost /Itm $8, % Total Cost/Study $8,600 Replacement Year 2021 Future Cost $11,009 This is to resurface the pool. Includes start-up costs Coping Useful 3 pool deck Quantity 1 Unit of Measure Lump Sum Costing provided by J & G Services Cost /LS $1, % Total Cost/Study $1,200 Replacement Year 2011 Future Cost $1,200 0 Richard Avelar & Associates

51 Component Listing Included Components Pool Filter Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $ % Total Cost/Study $900 Replacement Year 2012 Future Cost $922 1 Costing provided by J & G Services Chlorinator Useful 7 Quantity 1 Unit of Measure Items Cost /Itm $ % Total Cost/Study $450 Replacement Year 2011 Future Cost $450 0 Costing provided by J & G Services Pumps Useful 7 Quantity 1 Unit of Measure Items Cost /Itm $ % Total Cost/Study $600 Replacement Year 2013 Future Cost $630 2 Jeff with J & G Services recommends that the Association consider replacing the pump with a Variable Speed Pump for energy efficiency. The cost for such a pump would increase this component cost to $2,000 Costing provided by J & G Services Heater Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $2, % Total Cost/Study $2,500 Replacement Year 2011 Future Cost $2,500 0 This is to replace the pool heater. Costing provided by J & G Services Spa Re-Plaster Useful 12 Quantity 1 Unit of Measure Fund Cost /Fnd $1, % Total Cost/Study $1,200 Replacement Year 2021 Future Cost $1,536 This is to resurface the spa Filter Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $ % Total Cost/Study $600 Replacement Year 2019 Future Cost $731 8 Costing provided by J & G Services Richard Avelar & Associates

52 Component Listing Included Components Spa Chlorinator Useful 7 Quantity 1 Unit of Measure Items Cost /Itm $ % Total Cost/Study $450 Replacement Year 2011 Future Cost $450 0 Costing provided by J & G Services Pumps Useful 7 2 Quantity 2 Unit of Measure Items Cost /Itm $500 This line item is to replace the filtration and the jet pumps (1 each) Costing provided by J & G Services % Total Cost/Study $1,000 Replacement Year 2014 Future Cost $1, Heater Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $2, % Total Cost/Study $2,000 Replacement Year 2012 Future Cost $2,050 1 This is to replace the spa heater. Costing provided by J & G Services Recreation / Fitness Equipment Sauna: Heaters Useful 20 Mechanical Quantity 1 Unit of Measure Items This is to replace the sauna heater. Cost /Itm $2, % Total Cost/Study $2,750 Replacement Year 2014 Future Cost $2,961 3 Richard Avelar & Associates

53 Component Listing Included Components Recreation / Fitness Equipment Sauna: Wood Replacement Fund Useful Sq. Ft. Cedar Quantity 376 Unit of Measure Square Feet Cost /SqFt $27.50 This is to recover and replace the wood kit in the sauna room % Total Cost/Study $10,340 Replacement Year 2014 Future Cost $11, Treadmill Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $4, % Total Cost/Study $4,000 Replacement Year 2015 Future Cost $4,415 4 This is to replace the treadmill Stationary Bike Useful 12 Upright Quantity 1 Unit of Measure Items This is to replace the Upright stationary bike. Cost /Itm $2, % Total Cost/Study $2,000 Replacement Year 2012 Future Cost $2, Stationary Bike Useful 12 Sit Down Quantity 1 Unit of Measure Items This is to replace the sit down stationary bike. Cost /Itm $2, % Total Cost/Study $2,000 Replacement Year 2016 Future Cost $2,263 5 Richard Avelar & Associates

54 Component Listing Included Components Stair Master Recreation / Fitness Equipment Useful 12 Elliptical Quantity 1 Unit of Measure Items Cost /Itm $4,500 This is to replace the stair master/elliptical style cross trainer machine % Total Cost/Study $4,500 Replacement Year 2015 Future Cost $4, Bar Bells Useful 20 Quantity 1 Unit of Measure Lump Sum Cost /LS $ % Total Cost/Study $750 Replacement Year 2023 Future Cost $1, Drinking Fountain Useful 15 Quantity 1 Unit of Measure Items Cost /Itm $1, % Total Cost/Study $1,616 Replacement Year 2011 Future Cost $1,616 0 The current drinking fountain is unusable due to low water pressure. It is unclear if this problem is due to the component itself or the plumbing to the component. We recommend that the water fountain be inspected by a professional. The remaining life may need to be adjusted based on further inspection. Costing provided by Waterworks Inc Mirrors Useful 30 7 Quantity 7 Unit of Measure Items Cost /Itm $ % Total Cost/Study $1,925 Replacement Year 2019 Future Cost $2,345 8 Richard Avelar & Associates

55 Component Listing Included Components Recreation / Fitness Equipment Weight Machine (Universal) Useful 20 Universal Gym Quantity 1 Unit of Measure Items This is to replace the universal gym Cost /Itm $4, % Total Cost/Study $4,000 Replacement Year 2023 Future Cost $5, Scale Useful 12 Quantity 1 Unit of Measure Items Cost /Itm $ % Total Cost/Study $220 Replacement Year 2015 Future Cost $ Work Out Bench Useful 12 Quantity 1 Unit of Measure Items Cost /Itm $ % Total Cost/Study $220 Replacement Year 2015 Future Cost $ Landscaping Irrigation: Controllers Useful 15 3 Quantity 3 Unit of Measure Items This is to replace irrigation controller(s). Cost /Itm $ % Total Cost/Study $2,250 Replacement Year 2011 Future Cost $2, Irrigation: Valves Useful Quantity 24 Unit of Measure Items This for replacement of the irrigation valves. Cost /Itm $ % Total Cost/Study $5,280 Replacement Year 2012 Future Cost $5, Irrigation: Backflow Preventors Useful 20 2 Quantity 2 Unit of Measure Items This is to replace the backflow preventers Cost /Itm $ % Total Cost/Study $1,700 Replacement Year 2012 Future Cost $1,742 1 Richard Avelar & Associates

56 Component Listing Included Components Fencing (Repair/Replace) Chain Link: 4' Useful Lin. Ft. Bldg 3 Quantity 188 Unit of Measure Linear Feet This is to replace the 4' chain link fencing. Cost /l.f. $ % Total Cost/Study $2,068 Replacement Year 2024 Future Cost $2, Chain Link: 6' Useful Lin. Ft. Bldg 3 Quantity 500 Unit of Measure Linear Feet This is to replace the 6' chain link fencing. Cost /l.f. $ % Total Cost/Study $6,000 Replacement Year 2024 Future Cost $8, Wrought Iron Useful Lin. Ft. Pool Fence (25%) Quantity 164 Unit of Measure Linear Feet Cost /l.f. $45.00 Qty * $/l.f. $7, % Total Cost/Study $1,845 Replacement Year 2014 Future Cost $1,987 This is a partial replacement line item established for any necessary repairs to the pool fence during every paint cycle. Painting for the fence is established as a separate line item Wrought Iron Useful Lin. Ft. Front Entry Quantity 40 Unit of Measure Linear Feet Cost /l.f. $ % Total Cost/Study $1,800 Replacement Year 2015 Future Cost $1, Wrought Iron Useful Lin. Ft. Garages (25%) Quantity 598 Unit of Measure Linear Feet Cost /l.f. $45.00 Qty * $/l.f. $26, % Total Cost/Study $6,728 Replacement Year 2014 Future Cost $7,245 Partial replacement line item established to perform necessary repairs to the fence during every paint cycle. 3 Richard Avelar & Associates

57 Component Listing Included Components Fencing (Repair/Replace) Lighting Exterior: Misc. Fixtures Useful 20 4 Pole Lights 5' Quantity 4 Unit of Measure Items Cost /Itm $250 This is to replace the exterior common area pole lights % Total Cost/Study $1,000 Replacement Year 2030 Future Cost $1, Exterior: Misc. Fixtures Useful Pole Lights 8' Quantity 20 Unit of Measure Items Cost /Itm $550 This is to replace the exterior common area pole lights % Total Cost/Study $11,000 Replacement Year 2030 Future Cost $17, Exterior: Misc. Fixtures Useful Wall Mounted Lights Quantity 26 Unit of Measure Items Cost /Itm $225 This is to replace the exterior common area wall mounted lights % Total Cost/Study $5,850 Replacement Year 2030 Future Cost $9, Exterior: Misc. Fixtures Useful Fluorescent Lights Quantity 206 Unit of Measure Items Cost /Itm $175 This is to replace the exterior common area fluorescent lights % Total Cost/Study $36,050 Replacement Year 2030 Future Cost $57,631 Richard Avelar & Associates

58 Component Listing Included Components Lighting Exterior: Misc. Fixtures Useful Landscape Lights Quantity 31 Unit of Measure Items Cost /Itm $ % Total Cost/Study $5,425 Replacement Year 2016 Future Cost $6, Interior Lights Useful Fluorescent Lights Quantity 190 Unit of Measure Items Cost /Itm $ % Total Cost/Study $29,450 Replacement Year 2015 Future Cost $32, Interior Lights Useful Emergency Lights Quantity 99 Unit of Measure Items Cost /Itm $ % Total Cost/Study $24,750 Replacement Year 2015 Future Cost $27, Interior Lights Useful Exit Lights Quantity 78 Unit of Measure Items Cost /Itm $ % Total Cost/Study $14,430 Replacement Year 2015 Future Cost $15, Interior Lights Useful 20 5 Recessed Lights Quantity 5 Unit of Measure Items Cost /Itm $ % Total Cost/Study $650 Replacement Year 2015 Future Cost $ Interior Lights Useful Surface Lights Quantity 48 Unit of Measure Items Cost /Itm $ % Total Cost/Study $6,240 Replacement Year 2015 Future Cost $6, Interior Lights Useful 20 4 Spot Lights Quantity 4 Unit of Measure Items Cost /Itm $ % Total Cost/Study $520 Replacement Year 2015 Future Cost $574 4 Richard Avelar & Associates

59 Component Listing Included Components Signage Miscellaneous Useful Directional & Warning Quantity 23 Unit of Measure Items Cost /Itm $ % Total Cost/Study $1,265 Replacement Year 2017 Future Cost $1, Misc. Mechanical Equipment Water Heater Useful 12 Pool Area Quantity 1 Unit of Measure Items This is to replace the water heater. Cost /Itm $ % Total Cost/Study $800 Replacement Year 2012 Future Cost $ Elevator Cab Refurbish / Upgrade Useful 10 3 All Quantity 3 Unit of Measure Unit Cost /Ut $11, % Total Cost/Study $33,000 Replacement Year 2014 Future Cost $35,537 This line item is for the cab enhancement of elevators located in buildings 1, 2 and 3 3 Richard Avelar & Associates

60 Component Listing Included Components Elevator System Modernization Useful 30 3 All Quantity 3 Unit of Measure Unit Cost /Ut $55, % Total Cost/Study $165,000 Replacement Year 2024 Future Cost $227, Load Test Useful 5 All Quantity 1 Unit of Measure Lump Sum Cost /LS $2, % Total Cost/Study $2,740 Replacement Year 2015 Future Cost $3,024 This line item is established as a lump sum to perform load tests on all three elevators. Information obtained from Otis Elevator agreement dated August 4, Common Area Furnishings / Equipment Miscellaneous Useful 20 Clubhouse Furnishings Quantity 1 Unit of Measure Lump Sum Cost /LS $13, % Total Cost/Study $13,000 Replacement Year 2012 Future Cost $13,325 This is a provision for furniture and equipment replacement within the clubhouse Pool/Spa Furnishings Useful 8 All Quantity 1 Unit of Measure Lump Sum Cost /LS $3, % Total Cost/Study $3,000 Replacement Year 2014 Future Cost $3,231 This line item is to replace the chairs (lounge and upright) along with the pool area safety equipment. 3 Richard Avelar & Associates

61 Component Listing Included Components Flooring Carpeting Useful 15 1,120 Sq. Ft. Bridge Quantity 1,120 Unit of Measure Square Feet This is to replace the carpeting in the bridge area Cost /SqFt $ % Total Cost/Study $6,440 Replacement Year 2016 Future Cost $7, Carpeting Useful 15 1,370 Sq. Ft. Clubhouse Quantity 1,370 Unit of Measure Square Feet This is to replace the carpeting in the Clubhouse Cost /SqFt $ % Total Cost/Study $7,878 Replacement Year 2016 Future Cost $8, Carpeting Useful Sq. Ft. Fitness Room Quantity 494 Unit of Measure Square Feet This is to replace the carpeting in the Fitness Room Cost /SqFt $ % Total Cost/Study $2,841 Replacement Year 2016 Future Cost $3, Carpeting Useful 15 3,996 Sq. Ft. Hallways, Bldg 1 Quantity 3,996 Unit of Measure Square Feet This is to replace the carpeting in the Hallways Cost /SqFt $ % Total Cost/Study $22,977 Replacement Year 2016 Future Cost $25, Carpeting Useful 15 8,280 Sq. Ft. Hallways, Bldg 2 Quantity 8,280 Unit of Measure Square Feet This is to replace the carpeting in the Hallways Cost /SqFt $ % Total Cost/Study $47,610 Replacement Year 2016 Future Cost $53,866 5 Richard Avelar & Associates