Year 2015 Reserve Study & Maintenance Plan. Multnomah Cityside Condominium Portland Oregon

Transcription

1 Year 205 Reserve Study & Maintenance Plan Multnomah Cityside Condominium Portland Oregon PREPARED BY Regenesis? of 27 INNOVATIVE HOMEOWNER ASSOCIATION MANAGEMENT STRATEGIES

2 Regenesis PO Box Phone Portland OR Fax February 5, 205 Lisa Molini Appleton Properties, Inc. Phone RE: Multnomah Cityside Condominium Enclosed is the Reserve Study & Maintenance Plan Update you requested. SPECIAL NOTE ON FUNDING RESERVES: In an effort to provide the best and most useful information to the board, my reserve study software offers customizable funding plans. That means if the board has a different funding plan in mind than the one I recommend, I can produce that plan. There are many approaches to funding reserves but it is recommended that Full (00%) Funding be pursued because it is most likely to avoid special assessments and it shares costs fairly among all members along the 30 year time line. Due to fluctuating inflation rates, investment rates, component costs, starting balances and useful life adjustments, the Percent Funded level will fluctuate (sometimes dramatically) from year to year. The Funding Plan takes these factors into consideration, make adjustments to the Annual Contribution and charts a new course toward Full (00%) Funding. Reserve Study Performed (in bold). Level I: Full reserve study with site inspection Level II: Reserve study update with site inspection Level III: Reserve study update with no site inspection Reserve Fund Balance: Effective the start of the 205 fiscal year, the Actual Starting Balance is $922,620 versus the Ideal Starting Balance of $238,40. Percent Funded This homeowner association is currently 387% Funded (Actual Starting Balance divided by Ideal Starting Balance.) 0-35%=Weak; 36-70%=Fair; 7-00%=Strong Recommended Annual Contribution to Reserves. A contribution of $28,500 is recommended for the 205 Fiscal Year. Following the Recommended Funding Plan will raise the level of reserves to the 00 % ideal in 30 years. Interest Yield on Reserves. A.2% Yield is projected based on the current rate of return on your invested reserves. One of the benefits of the reserve study is it provides information needed to improve reserves investment returns. Increased investment revenue will lower owner contributions by thousands of dollars over the 30 year projection period. Glenn Gregory of Obsidian Investment Advisers LLC can perform a "Duration Study" using this reserve study which will show ways to increase reserve investment revenue. Contact Glenn at ggregory@obsidianllc.com or Phone Innovative Homeowner Association Management Strategies 2 of 27

3 Inflation Rate. 2.42% was used based on the most recent 5 year average published by Tax Rate. 30% was used based on using Federal Tax Form 20H versus 20 which carries a 5% tax rate. Form 20 is more complicated than 20H, requirements are more stringent and tax preparers charge more to complete it. However, if interest earnings are high enough, the additional preparation cost can be worth it. See your CPA for more information on tax filing options. Maintenance Plan. The proper care and maintenance of common components have been entrusted to the homeowner association. The goal of the Maintenance Plan is to provide general information and direction on how to maintain those assets to produce the highest livability and market values for member properties. While specific items are included, the plan is not exhaustive and some issues may develop over time which should be added to the plan. Annual Review & Update Service. An annual review and update of the Reserve Study is required by statute and necessary for continued accuracy. A review and update provides a new 30 year projection with current inflation factor, investment rates and any known component cost changes. Attached is a Three Year Price Guarantee Proposal that will save the client substantial money. To take advantage of the offer, please approve by March 8, 205. Regenesis Resources The Regenesis Report (FREE) Monthly newsletter considered to be the best HOA resource available. To subscribe, info@regenesis.net. Gold Subscribers enjoy the largest homeowner association information resource on the planet and a personalized Ask the HOA Expert service to address specific issues. All for only $99 a year. To subscribe, go to and click on Subscriber Services. It s been my pleasure to provide this valuable financial and maintenance planning information. I would like to meet with the board for up to one hour to review this reserve study, answer questions and make revisions that are indicated. Tuesday, Wednesday or Thursday are generally my best available days. Please contact me to arrange a meeting. Regards, Richard L. Thompson PRA PROFESSIONAL RESERVE ANALYST Innovative Homeowner Association Management Strategies 3 of 27

4 Year 205 Reserve Study Multnomah Cityside Condominium Portland Oregon PREPARED BY Regenesis? of 27 INNOVATIVE HOMEOWNER ASSOCIATION MANAGEMENT STRATEGIES

5 Regenesis Reserve Study Table of Contents METHODOLOGY Explains the purpose of the reserve study, how the information was gathered and the sources used. LIMITATIONS & ASSUMPTIONS Explains what a Reserve Study does and does not do. WORKSHEET REPORT Alphabetical listing of the reserve components by type, cost, year put in service, useful life and replacement year FUNDING PLAN SUMMARY REPORT Percent Funded: Starting Balance divided by the Ideal Balance Ideal Balance: Each component is measured, assessed for useful and remaining useful life plus cost of repair or replacement. Based on this analysis, each component should have a certain amount of money set aside as of the year in question. The Ideal Balance is the sum of all these component amounts as adjusted by the inflation factor. Starting Balance: Reserve funds total at beginning of each fiscal year Annual Contribution: Funds needed to meet the reserve schedule Interest Income: Yield on invested reserve funds Tax Liability: Federal taxes owed on investment interest earned ANNUAL EXPENDITURES REPORT Chronological repair and replacement schedule STARTING BALANCE FUNDS DISTRIBUTION Allocates available funds to the components. If funds are insufficient to fully fund each component, funds are allocated to components that are scheduled to happen sooner. 5 of 27

6 Regenesis Reserve Study Methodology DEFINITION Reserve Study Identifies the components which will require maintenance, repair or replacement in more than one and less than thirty years and the cost of repair or replacement of each at recommended intervals. Site inspections are based on visual observation and no invasive testing was done. Representative sampling is used where visual inspection is not possible. RESERVE STUDY CRITERIA. Identify current reserve funds balance 2. Identify components to be included 3. Establish reasonable useful life of each component 4. Establish remaining useful life of each component 5. Estimate current replacement or repair cost of each component 6. Assemble data in Reserve Study 7. Generate Reserve Funding Plan. FUNDING PLAN CRITERIA The Funding Plan is based on the Cashflow Method and includes Percent Funded, Inflation Adjusted Ideal Balance, Starting Balance, Annual Contribution, Interest Income, Tax Liability and Inflation Adjusted Expenditures. Inflation is based on the most recent 5 year average as determined by SOURCES OF INFORMATION (as applicable): Original plans and specifications Original builder and developer Contractors and vendors Industry Professionals (engineers, architects, construction managers, etc.) Board Members General Members Property Manager Resident Manager Cost Estimating Services To remain accurate, the Reserve Study must be updated annually. 6 of 27

7 Regenesis Reserve Study Limitations & Assumptions. The Reserve Study is intended for the sole use of the Client and is not to be construed as a guarantee, warranty or an opinion on the advisability of purchase. 2. The information provided by the Reserve Study is effective for one year from the completion date of the report. An annual review and update of this Reserve Study is required to adjust known cost changes and to maintain accuracy. 3. Consultant s financial liability for errors and omissions is limited to the charge made to Client to perform the Reserve Study. 4. The scope of the Reserve Study is expressly limited to the components included. 5. The useful life estimates of the Reserve Study assume normal weather conditions and do not factor in damage by flood, wind, storm, earthquake or other insurable events. The useful life estimates assume proper construction, installation, design and regular and adequate preventive maintenance. Improper construction, installation, design or failure to maintain will lead to shortened useful lives. 6. The cost estimates of the Reserve Study are based in current pricing for similar installations and materials and/or based in actual costs paid by Client. Future costs are subject to change according to supply and demand, material costs, effects of inflation and other factors which are not under Consultant s control. 7. The conclusions of the Reserve Study do not involve invasive testing of the components and were arrived at by either visual inspection and/or information provided by Client. 8. The Reserve Study is not intended to address or discover construction defects, asbestos, mold, water intrusion or lead paint. Client agrees to indemnify, defend and hold Consultant harmless from all related claims. 7 of 27

8 February 5, 205 Worksheet Multnomah Cityside Condominium Item Description # of Items _Unit Current Item Cost Future Replacement Cost Year Built Useful Life Year Replace Barkdust Total $ 2, $ 2, No Comments: Originally scheduled for 203 Building Envelope Inspection Total $ 3, $ 3, No Comments: 202: Cost and useful life per board direction Concrete Safety Repair 34 Units $ $ 2, No Comments: Use this fund as needed for repair and replacement over a 5 year period; list year, work done and cost here. Deck & Stair Fences-Wood 688 Ln.Ft. $ $ 32, No Decks-Membrane-Recoat,740 Sq.Ft. $ 7.00 $ 2, No Comments: Originally scheduled for x 4 decks = 480 sf 8 0 x 7 decks =,260 sf Deck-Trex-Replace 2,002 Sq.Ft. $ $ 8, No Comments: 204: 3 decks replaced (Units 2640,2644, 8382) by CR Collins Construction $2,475. All other decks reported as in good condition and do not need replacement at this time. Doors-Entry 34 Units $ 2, $ 47, No Comments: 202: Cost provided by A Cut Above Exteriors, Inc Ph Doors-Garage Total $ 36, $ 63, No Comments: 22 7 x $,250 = $27, x $760 = $9,20 202: Cost information provided by Metro Overhead Door Ph Fence-Chainlink/Vinyl-48",50 Ln.Ft. $ 5.00 $ 29, No Fence-Wood-6' 230 Ln.Ft. $ $ 8, No Fire Alarm-Detection & Notification Devices Total $ - $ Yes Comments: Annual fire inspections should be conducted. Components of the fire alarm system such as fire alarm panel batteries, smoke detectors, exit signs, pull stations, and heat detectors are to be replaced as needed during inspection and paid for out of operating. Recommend the board consult with fire alarm contractor to determine if a global replacement of these items is prudent at a future date. If so, add replacement year and budget cost to reserve study. Life Left One Time? 8 of 27

9 February 5, 205 Worksheet Multnomah Cityside Condominium Item Description # of Items _Unit Current Item Cost Future Replacement Cost Year Built Useful Life Year Replace Fire Sprinkler Testing Total $ - $ No Comments: Paid for out of Operating Budget. Per NFPA 25 system components to be inspected and tested every five years and is a more extensive scope than annual testing. Work includes but is not limited to testing of pressure gauges, fire department connections, check valves and conducting flow testing. Gazebo Furniture Total $ $ No Comments: 0 $50 = $500 Gazebo-Structure-Metal Total $ 4, $ 7, No Comments: 205: Observed multiple post anchor screws missing. Recommend missing screw/bolt be installed 204: New patio ($7,695) and structure ($4,450) installed. Landscape Renovation 34 Units $ $ 5, No Comments: Use this fund as needed for drainage correction and plant replacement; list year, work done and cost here. Lights-Exterior Total $ 5, $ 7, No Comments: This component will serve as a budget fund for replacement as needed. Recommend that the board make efforts to perform work in lump sums in order to reduce varying useful life and contractor mobilization costs. Also, recommend at the time of replacement board consult vendors to perform a fixture replacement energy audit. 6 Wall mount $50 = $ Wall mount $75 = $3, Can $50 = $,600 6 landscape/pathway $50 =$300 Lights-Exterior-Pole Light 5 Each $ $ 2, No Comments: Head only Mailboxes 34 Units $ $ 5, No Comments: 2 3 Slot/ Parcel 6 Slot/2 Parcel Paint-Curbs 650 Ln.Ft. $.00 $ No Paint-Exterior 34 Units $ 3,56.00 $ 5, No Comments: 204: Remaining scope of painting completed by Absolute Painting $63, : Caulking and painting of boards and battins on Buildings -0 completed by J. Thomas Construction. $55,800 Paving-Asphalt-Overlay 25,430 Sq.Ft. $.50 $ 58, No Life Left One Time? 9 of 27

10 February 5, 205 Worksheet Multnomah Cityside Condominium Item Description Signs-Directory Trash Enclosure-Chainlink w/vinyl Comments: 3 locations Treework Comments: Number of Items = 30 # of Items _Unit Current Item Cost Future Replacement Cost Year Built Useful Life Year Replace Paving-Asphalt-Repair, Sealcoat & Restripe 25,430 Sq.Ft. $ 0.25 $ 7, No Comments: Cost reflects budget fo repair, striping and two coats 204: Single coat completed by Pavement Maintenance $3,595 ($0.4/sf). Retaining Wall Repair Total $ 5, $ 5, No Roof-Composition-Asphalt 337 Squares $ $ 60, No Roof-Gutters & Downspouts 3,855 Ln.Ft. $ 5.00 $ 36, No Siding & Trim Repair 34 Units $ $ 0, No Comments: Coordinate with Paint-Exterior Signs-Building Total $ 2, $ 3, No Comments: 34 Unit $50 = $,700 9 Building $75 = $675 Life Left One Time? 2 Each $ $, No 25 Ln.Ft. $ $ 3, No Total $ 5, $ 5, No Have trees inspected by arborist and perform corrective pruning as needed to keep tree limbs at least 6' away from buildings. Tree limbs overhanging roofs and decks will damage and shorten the useful life of that component. Use this fund as needed over a 5 year period; list year, work done and cost here. 0 of 27

11 Building Envelope Inspection Concrete Safety Repair Deck & Stair Fences-Wood Deck & Stair Fences-Wood Deck-Trex-Replace Doors-Entry of 27

12 Doors-Garage Doors-Garage Fence-Chainlink/Vinyl-48" Fence-Wood-6' Gazebo Furniture Gazebo-Structure-Metal 2 of 27

13 Gazebo-Structure-Metal Landscape Renovation Lights-Exterior Lights-Exterior Lights-Exterior Lights-Exterior-Pole Light 3 of 27

14 Mailboxes Mailboxes Paint-Curbs Paint-Exterior 4 of 27 Paving-Asphalt-Repair, Sealcoat & Restripe Retaining Wall Repair

15 Roof-Composition-Asphalt Signs-Building Signs-Building Signs-Directory Trash Enclosure-Chainlink w/vinyl Trash Enclosure-Chainlink w/vinyl 5 of 27

16 Trash Enclosure-Chainlink w/vinyl Treework 6 of 27

17 February 5, 205 Year Percent Funded Funding Plan Summary Inflation Adjusted Ideal Balance Starting Balance Annual Contribution Interest Income Tax Liability Inflation Adjusted Expenditures % 239, ,620 28,500,24 (337) (4,523) % 275, ,384 29,88,42 (343) (9,282) % 307, ,090 29,893,56 (347) % 358, ,792 30,64,93 (358) (2,96) % 405,9,007,325 3,353,228 (368) (0,278) % 446,652,029,259 32,0,254 (376) (4,809) % 483,237,047,438 32,885,277 (383) (20,964) % 53,726,060,252 33,679,293 (388) (4,542) % 55,053,080,294 34,492,37 (395) % 602,92,5,708 35,325,360 (408) (80,275) % 479,304 97,70 36,77,88 (356) (5,845) % 520,52 992,874 37,05,24 (364) (9,466) % 558,37,0,308 37,945,236 (37) (28,053) % 49, ,065 38,86,30 (339) (908) % 55,82 960,809 39,799,77 (353) (2,366) % 600, ,066 40,760,2 (363) (2,742) % 640,5,008,93 4,744,236 (37) (8,600) % 683,365,032,940 42,75,265 (380) (59,663) % 687,460,06,95 43,783,247 (374) (3,50) % 748,45,058,420 44,840,297 (389) (228,404) % 589, ,764 45,923,078 (324) (20,25) % 640,02 902,38 47,03, (333) (23,084) % 687, ,042 48,67,4 (342) (426,03) % 346,88 549,995 49, (207) (,54) % 43,03 598,653 50, (225) (8,654) % 498,50 63,043 5, (236) (23,89) 204 8% 560, ,444 52, (247) (55,36) 2042 % 592, ,648 54, (247) (5,76) % 675, ,35 55, (265) % 763, ,50 56, (285) (285,62) Total $,234,23 $33,578 ($0,074) ($,644,406) 0.2% Investment Rate 30.00% Tax Rate 2.42% Inflation Rate 0.00% State Tax Multnomah Cityside Condominium 7 of 27

18 February 5, 205 Annual Expenditures Multnomah Cityside Condominium Year Amount Item Description 2,048 Barkdust 2,475 Decks-Membrane-Recoat 205 4, ,282 3,500 Building Envelope Inspection 5,00 Landscape Renovation 682 Paint-Curbs 5,000 Retaining Wall Repair 5,000 Treework 2,20 Barkdust 75 Paint-Curbs 208 2,96 2,550 Concrete Safety Repair 563 Gazebo Furniture 7,65 Paving-Asphalt-Repair, Sealcoat & Restripe 209 0,278 4,059 Decks-Membrane-Recoat 750 Paint-Curbs ,809 2,364 Barkdust 3,500 Building Envelope Inspection 5,00 Landscape Renovation 5,000 Retaining Wall Repair 5,000 Treework ,964 8,92 Fence-Wood-6' 787 Paint-Curbs,86 Signs-Directory 3,027 Trash Enclosure-Chainlink w/vinyl ,542 2,540 Barkdust 2,550 Concrete Safety Repair 635 Gazebo Furniture 826 Paint-Curbs 5,836 Paint-Exterior 8,075 Paving-Asphalt-Repair, Sealcoat & Restripe 8 of 27

19 February 5, 205 Annual Expenditures Multnomah Cityside Condominium 9 of 27 Year Amount Item Description 0,796 Siding & Trim Repair 3,07 Signs-Building ,275 5,845 Decks-Membrane-Recoat ,845 3,500 Building Envelope Inspection 5,00 Landscape Renovation 866 Paint-Curbs 5,000 Retaining Wall Repair 5,000 Treework ,466 2,729 Barkdust 32,859 Deck & Stair Fences-Wood 8,957 Deck-Trex-Replace 7,778 Lights-Exterior 2,729 Lights-Exterior-Pole Light , Paint-Curbs ,550 Concrete Safety Repair 76 Gazebo Furniture 9,00 Paving-Asphalt-Repair, Sealcoat & Restripe ,366 2,932 Barkdust 7,857 Decks-Membrane-Recoat 953 Paint-Curbs ,742 3,500 Building Envelope Inspection 5,00 Landscape Renovation 5,000 Retaining Wall Repair 5,000 Treework 203 8,600,000 Paint-Curbs 58,663 Paving-Asphalt-Overlay ,663 3,50 Barkdust ,50

20 February 5, 205 Annual Expenditures Multnomah Cityside Condominium 20 of 27 Year Amount Item Description 2,550 Concrete Safety Repair 807 Gazebo Furniture 7,79 Gazebo-Structure-Metal,049 Paint-Curbs 92,852 Paint-Exterior 0,256 Paving-Asphalt-Repair, Sealcoat & Restripe 3,72 Siding & Trim Repair ,404 20,25 Decks-Membrane-Recoat ,25 3,385 Barkdust 3,500 Building Envelope Inspection 5,00 Landscape Renovation,00 Paint-Curbs 5,000 Retaining Wall Repair 5,000 Treework ,084 47,322 Doors-Entry 63,470 Doors-Garage 29,898 Fence-Chainlink/Vinyl-48" 2,756 Fence-Wood-6' 5,009 Mailboxes 60,625 Roof-Composition-Asphalt 2,600 Signs-Directory 4,333 Trash Enclosure-Chainlink w/vinyl ,03,54 Paint-Curbs 2038,54 3,636 Barkdust 2,550 Concrete Safety Repair 909 Gazebo Furniture,559 Paving-Asphalt-Repair, Sealcoat & Restripe ,654 22,680 Decks-Membrane-Recoat,20 Paint-Curbs ,89 3,500 Building Envelope Inspection 5,00 Landscape Renovation 5,000 Retaining Wall Repair

21 February 5, 205 Annual Expenditures Multnomah Cityside Condominium Year Amount Item Description 36,76 Roof-Gutters & Downspouts 5,000 Treework ,36 3,907 Barkdust,270 Paint-Curbs ,76 2,550 Concrete Safety Repair,025 Gazebo Furniture,332 Paint-Curbs 244,946 Paint-Exterior 3,027 Paving-Asphalt-Repair, Sealcoat & Restripe 7,47 Siding & Trim Repair 4,866 Signs-Building ,62 Total,644,406 2 of 27

22 February 5, 205 Starting Balance Distribution Multnomah Cityside Condominium Item Description Useful Life Life Left Year Replace Future Replacement Cost Ideal Balance Actual Balance Barkdust $ 2,048 $ 2,048 $ 2,048 Building Envelope Inspection $ 3,500 $ 2,800 $ 2,800 Concrete Safety Repair $ 2,550 $ 50 $ 50 Deck & Stair Fences-Wood $ 32,859 $ 3,44 $ 3,44 Decks-Membrane-Recoat $ 2,475 $ 2,475 $ 2,475 Deck-Trex-Replace $ 8,957 $ 32,783 $ 32,783 Doors-Entry $ 47,322 $ 39,286 $ 39,286 Doors-Garage $ 63,470 $ 6,925 $ 6,925 Fence-Chainlink/Vinyl-48" $ 29,898 $ 7,973 $ 7,973 Fence-Wood-6' $ 8,92 $ 4,753 $ 4,753 Fire Alarm-Detection & Notification Devices $ - $ - $ - Fire Sprinkler Testing $ - $ - $ - Gazebo Furniture $ 563 $ 3 $ 3 Gazebo-Structure-Metal $ 7,79 $ 359 $ 359 Landscape Renovation $ 5,00 $ 4,080 $ 4,080 Lights-Exterior $ 7,778 $ 3, $ 3, Lights-Exterior-Pole Light $ 2,729 $,092 $,092 Mailboxes $ 5,009 $,336 $,336 Paint-Curbs $ 682 $ 34 $ 34 Paint-Exterior $ 5,836 $ 5,84 $ 5,84 Paving-Asphalt-Overlay $ 58,663 $ 8,772 $ 8,772 Paving-Asphalt-Repair, Sealcoat & Restripe $ 7,65 $,433 $,433 Retaining Wall Repair $ 5,000 $ 4,000 $ 4,000 Roof-Composition-Asphalt $ 60,625 $ 42,833 $ 42,833 Roof-Gutters & Downspouts $ 36,76 $ 4,90 $ 4,90 Siding & Trim Repair $ 0,796 $,080 $,080 Signs-Building $ 3,07 $,659 $,659 Signs-Directory $,86 $ 969 $ 969 Trash Enclosure-Chainlink w/vinyl $ 3,027 $,64 $,64 Treework $ 5,000 $ 4,000 $ 4,000. $ 857,737 $ 239,573 $ 239, Excess Funds 683,047 Investment Rate 0.2% Contingency $ - $ - Tax Rate 30.00% Total $ 239,573 $ 922,620 Inflation Rate 2.42% Contingency Rate 0.00% 22 of 27

23 Year 205 Maintenance Plan Multnomah Cityside Condominium Portland Oregon PREPARED BY Regenesis? of 27 INNOVATIVE HOMEOWNER ASSOCIATION MANAGEMENT STRATEGIES

24 Maintenance Plan for Multnomah Cityside Condominium The proper care and maintenance of common elements has been entrusted to the homeowner association. The key to any effective Maintenance Plan is consistency and expertise. The goal of this Maintenance Plan is to provide general information and direction on how to maintain those assets to produce the highest livability and market values for member units. While many specific items are included, the list is not exhaustive and some issues may develop over time which should be added to the Plan. Many building and grounds components require specific maintenance to ensure their proper function. Many of the tasks are suitable only to trained professionals with a thorough understanding of the systems. It is highly recommended that only licensed, bonded and insured workman with the training, knowledge, tools and equipment to handle the maintenance of those systems or components be used to ensure highest service quality. The Maintenance Plan is divided into two parts: Annual Maintenance and Reserve Repairs & Replacements. The first deals with annual tasks while the second deals with cyclical tasks. Close attention to both are required to achieve the desired results. Annual Maintenance The following tasks should be performed on according to a regular and adequate schedule as preventive maintenance: General Repairs The Operating Budget should provide money to handle various minor repairs like paint touchup, recaulking, minor electrical, plumbing and roof repairs. Various non-emergency repair requests should be grouped together so work can be handled cost effectively. Landscape-Maintenance Landscaping is an extremely important aspect of livability and market value. Having a contractor that is competent and regularly attending to the landscaping is the proper approach. When the contractor completes work, a job slip should be left with a designated Committee member so the work can be reviewed. If there are deficiencies, the contractor should be notified immediately. If the contractor is consistently unresponsive or the quality of work deficient, a change in contractors is indicated. For details on landscape maintenance, refer to the landscape contractor s agreement. Lights-Exterior For appearance and security, all exterior light fixtures should be in good working order. Repair fixture or replace bulbs as needed. Pressure Washing Each year, selected areas of asphalt and concrete sidewalks and steps should be pressure washed to remove oil spots, algae and moss which could cause slipping hazards. 24 of 27

25 Roof & Gutter Maintenance To ensure the roof lasts its normal useful life:. The roof must be kept clean of dirt, debris, moss and algae. As needed, apply moss killer and clear moss away when it is dead and dry. Repair roofing and flashing as needed at least once a year. 2. Keeping scuppers, gutters and downspouts unobstructed is extremely important to prevent damage to the paint, siding and landscaping. Perform at least twice per year, in the fall just prior to winter rains and again in the spring after winter rains have passed. Siding & Trim All siding and trim should be inspected, repaired and caulked as necessary at least once per year, generally before winter rains come to ensure it is watertight. Water Intrusion Repairs A knowledgeable building contractor should inspect the buildings for sources of potential water intrusion, like missing flashing, failed caulking or negative drainage which directs water toward the building. Take appropriate corrective action as indicated. Reserve Repairs & Replacements The following items should be performed according to the schedule outlined in the Reserve Study: Barkdust Barkdust beautifies, reduces irrigation water and retards weed growth. Install 2" of medium fresh fir on all planting beds. Concrete Safety Repair. Inspect all flatwork and sidewalks for tripping hazards of 3/8" or more. 2. Grind down or remove and replace selected sections as needed. 3. Remove and replace any sections that have multiple cracks and failure Deck Membrane-Recoat. Thoroughly clean deck surface to remove dirt. 2. Repair cuts and holes as needed. 3. Apply two coats of high quality deck coating mixed with anti-skid additive like crushed walnut shells according to manufacturer's specifications. Fence-Wood-6'. Install 4" x 4" x 8' pressure treated fence posts set a minimum of 8" deep 2. Fill each post hole with one sack of premixed concrete 3. 2" x 4" treated horizontal rails for attaching vertical boards 4. Install " x 6" x 6' # tight knot cedar boards tight to each other 5. Install 2" x 6" # tight knot cedar cap rail 6. Use brass screws or cement coated galvanized nails as fasteners Landscape Renovation Bushes and plants mature, overgrow their location and die. This fund is to remove and replace those specimens that need it. It is recommended to use drought and pest resistant native species. Paint Curbs 25 of 27

26 . Pressure wash curbs to remove dirt, algae and moss. 2. Scrape or wire brush to remove flaking paint. 3. Spray or hand brush with white, yellow, red paint as appropriate. 4. Repaint to original specs and layout (No Parking, Fire Lane, etc.) Paint-Exterior. Inspect and repair as needed. 2. Power wash all surfaces to remove peeling paint, moss, algae, dirt and other contaminates. 3. Treat areas with mildew with mildewcide. 4. Scrape or wire brush loose paint and prime all bare spots with primer. 5. Remove and/or provide adequate protection for lighting fixtures and other hardware. 6. Mask with tape and paper, cover with plastic tarp or otherwise protect windows, other unpainted surfaces, landscaping and personal property from paint drips and/or overspray. 7. Surface to be painted shall be dry and free of dirt, dust, oils or other contaminates which will prevent adhesion of the coating. 8. Coating shall be applied at a temperature in accordance with manufacturer's specification. 0. Spray and backroll high quality paint or stain product suitable for siding, trim, soffit and fascia according to manufacturer's guidelines.. Spray high quality paint or sealer product as applies on exterior doors. 2. Clean up all work related debris and dispose of off site. Paving-Asphalt-Overlay. Keep sprinkler system turned off (if applies) before and throughout process 2. Seal cracks with rubberized sealer 3. Remove and patch crumbled or alligatored areas 4. Apply 2" overlay of new material 5. After three months have elapsed, apply two coats of emulsified sealcoat 20 gallons per 000 sf 6. Add 3 lbs of sand per gallon to first coat 7. Apply sealcoat in dry weather only with surface temperature of at least 60 degrees F 8. Allow first coat to dry to touch before applying second coat. 9. Wait 24 hours before driving on 0. Restripe to original pattern (if applies). Paving-Asphalt-Repair & Sealcoat. Keep sprinkler system (if applies) turned off before and throughout process 2. Thoroughly clean all asphalt surfaces removing moss, algae, oil, dirt, rocks and weeds 3. Seal cracks with rubberized sealer 4. Remove and patch crumbled or alligatored areas 5. Apply two coats of emulsified sealcoat according to the following application rates: a. Smooth surfaces (newer): 20 gallons per 000 sf b. Medium surfaces (middle age): 30 gallons per 000 sf c. Rough surfaces (older): 50 gallons per 000 sf 6. Add 3 lbs of sand per gallon to first coat 26 of 27

27 7. Apply sealcoat in dry weather only with surface temperature of at least 60 degrees F 8. Allow first coat to dry to touch before applying second coat. 9. Restripe to original pattern (if applies). 0. Wait 24 hours before driving on. Roof-Composition-Asphalt When due for replacement, roofing must be removed to install the new shingles. Consider upgrading to a longer life product for greater durability and smaller per year cost. Remove and replace with comparable quality roofing according to manufactures specification; replace all flashing. Coordinate with replacement of Roof-Gutters & Downspouts. Roof-Gutters & Downspouts Coordinate with Roof-Composition-Asphalt. Remove and replace with comparable material and design. Siding & Trim Repair. Coordinate with Paint-Exterior. 2. Inspect all siding and trim for loose or bad boards. 3. Renail or remove and replace as needed. Treework Have all trees inspected by certified arborist; Perform corrective pruning as needed to insure maximum health and beauty of trees. 27 of 27