Reserve Study Level I Prepared for Hat Island 2016 Fiscal Year

Transcription

1 Reserve Study Level I Prepared for Hat Island 2016 Fiscal Year Prepared by CEDCORE, LLC Version CEDCORE, LLC

2 Prepared for Hat Island - 1 Contents 1. Executive Summary 1.1 Table 1 - Component List 2. Financial Analysis 2.1 Figure 1 - Reserve Fund Ending Balance vs Fully Funded Balance 2.2 Figure 2 - Reserve Fund Ending Balance vs Reserve Expenses 2.3 Figure 3 - Percent Funded Comparison 2.4 Figure 4 - Reserve Contribution Comparison 2.5 Funding Plan 30 Year Reserve Fund Projections Current Funding Plan Baseline Funding Plan Full Funding Plan 2.6 Funding Plan Cash Flow Projections 3. Physical Analysis 3.1 Table 2 - Component Funding Basis 3.2 Table 3 - Component Metrics 3.3 Component Details 4. How to Read Your Reserve Study 4.1 About Reserve Studies 4.2 Reserve Study Levels 4.3 Percent Funded 4.4 Reserve Funding Plans & Goals 4.5 Reserve Contributions 4.6 Reserve Components 4.7 Implementing Your Reserve Study 5. Supplemental Report Information 5.1 Definitions 5.2 Table 4 - RCW Required Information & Location 5.3 Reserve Study Disclosure

3 Prepared for Hat Island - 2 Executive Summary Report Details Association Name: Hat Island Location: Hat Island, WA Number of Units: 923 Level of Service: Level I Site Visit Date: 5/20/2015 Report Period: FY 2016 Projection Period: Reserve Account Snap Shot January 1, 2016 Projected Reserve Balance: $0.00 Fully Funded Reserve Balance: $862, Percent Funded: 0 % Reserve Surplus or (-) Deficit Per Unit: ($934.30) Current Monthly Reserve Fund Contribution: $7,500 Interest Rate 1.00 % Inflation Rate 3.00 % 2016 Reserve Contribution Requirements (based on the above position) Full Funding Monthly Reserve Contribution: $13, Monthly Reserve Contribution Per Unit (Average): $14.97 Special Assessment Required for this Plan: $240, Baseline Funding Monthly Reserve Contribution: $12, Monthly Reserve Contribution Per Unit (Average): $14.06 Special Assessment Required for this Plan: $240, Based upon the budget and maintenance practices of the association we have used a funding threshold of $8, Expenses below $8, are not funded within this report and best treated as a maintenance expense. We have included comments within the Component Analysis Section of this report. The Association will need to increase contributions by $6.84 average per lot per month ($82.08 per year) to get onto the path to becoming Fully Funded. In addition, a Special Assessment of $240,000 is required in 2016 to fund the predicted maintenance, repair and replacement of various components.

4 Prepared for Hat Island - 3 Table 1 - Component List Component Quantity Current Cost UL RUL Equipment, Back Hoe / Excavator: Replace 1 Each $60, Equipment, Dozer: Replace 1 Each $10, Equipment, Dump Truck: Replace 1 Each $25, Equipment, Flail Mower: Replace 1 Each $10, Equipment, Water Tank / Sprayer: Replace 1 Each $2, Equipment: JD 5410 Tractor, Replace 1 Allowance $35, Fire Panel: Replacement 1 Allowance $2, Fuel Station Equipment 1 Allowance $5, Golf, Aerator: Replace 1 Each $5, Golf, Course Mowers: Replace 1 Allowance $8, Golf, Fairway Tractor: Replace 1 Each $30, Golf, Gang Mower: Replace 1 Allowance $2, Golf, Jacobsen Fairway Sweeper: Replace 1 Allowance $10, Golf, Jacobsen Hauler: Replace 1 Allowance $2, Golf, John Deer Mower: Replace 1 Each $3, Golf, Kubota Tractor: Replace 1 Each $20, Golf, Top Dressor/Sander: Replace 1 Each $15, Marina Showers Building: Replace Bldg 1 Allowance $40, Marina, Concrete Boat Ramp: Replace 1 Allowance $25, Marina, Dock Surface: Replace 1 Allowance $400, Marina, Electrical 1 Allowance $20, Marina, Gangways: Replace 1 Allowance $100, Marina, Maintenance Dredge 1 Allowance $50, Marina, Piles: Replace 1 Allowance $10, Retention Ponds 1 Allowance $10, Roof, Golf Equipment Storage Building, Metal: Replace 1 Allowance $20, Roof, Maintenance Shop, Metal: Replace 2,876 Square Feet $35, Roof, Marina Office: Replace 1,089 Square Feet $10, Roof, Misc. Sheds: Replace 4 Allowance $20, Roof, Starter Shack: Replace 202 Allowance $1, Roof, The Commons, Metal: Replace 2,012 Allowance $25, Roof, Water Tanks, Metal: Replace 2 Allowance $40, Roof, Well Houses & Rabitorium: Replace 6 Allowance $6, Siding, Golf Equipment Storage Shed, Metal: Repaint 852 Linear Feet $ Siding, Maintenance Shop, Metal: Repaint 2,808 Square Feet $2, Siding, Marina Office Building, Vinyl: Clean 2,006 Square Feet $ Siding, Marina Office Building, Vinyl: Replace 2,006 Square Feet $22, Siding, Misc. Sheds: Repaint 6 Allowance $3, Siding, Misc. Sheds: Repair/Replace 6 Allowance $1, Stairs: Replace 1 Each $3,

5 Prepared for Hat Island - 4 Tennis Court: Resurface 1 Allowance $8, Vehicle, Isuzu Flatbed 1 Allowance $20, Vehicle, Manager 1 Allowance $20, Vehicle, Pick Up Truck: Replace 1 Each $20, Vehicle, Water Manager Service Truck K25: Replace 1 Allowance $20, Vessel, Generator Set: Replace 1 Allowance $12, Vessel, Port Engine: Rebuild 1 Allowance $80, Vessel, Starboard Engine: Rebuild 1 Allowance $80, Vessel, Transmissions 1 Allowance $40, Vessel, Wheels and Shafts 1 Allowance $10, Vessel: Deposit for Replacement 1 Allowance $750, Vessel: Rehab 1 Allowance $75, Water Pressure Booster System: Replace 2 Each $10, Water System Sand Filter 1 Each $5, Water System, RO: Replace Membranes 1 Allowance $10, Water Tanks, Concrete, G&M: Line/Replace 2 Each $60, Water Treatment System RO: Upgrades 1 Allowance $20, Waterlines 1 Allowance $50, Wells 1 Allowance $10, Window/Glass Doors: Replace 28 Each $12, Total Current Costs $2,406,277 Total Funded Components 60 Components without a UL are one-time expenses, not expecting to reoccur at this time. It is important to note that actual costs may vary significantly based on scope of work, actual conditions, hidden deterioration, vendor selection, etc. This component list is for budget planning purposes only.

6 Prepared for Hat Island - 5 Financial Analysis We have created the financial projections and recommendations based on the component list in Table One and a projected reserve fund balance $0.00. For your Association to be 100% funded there should be $862, in your reserve account(s). Therefore, your Association is projected to be 0.00% funded. We recommend the Full Funding, which requires a monthly reserve contribution of $13, with a 3.00 % increase in contributions each year for the next 15 years. Currently the Association has monthly reserve contributions of $7, and are Not projected to be sufficient over the next 30 years. The Baseline monthly reserve contribution requires $12,978.00, with a 3.00 % increase in contributions each year for the next 15 years. The baseline funding plan is the lowest contribution amount calculated to prevent the Reserve Fund from dropping below a zero balance. Figure 1 - Reserve Fund Ending Balance vs Fully Funded Balance

7 Prepared for Hat Island - 6 Figure 2 - Reserve Fund Ending Balance vs Reserve Expenses

8 Prepared for Hat Island - 7 Figure 3 - Percent Funded Comparison Figure 4 Reserve Contribution Comparison

9 Prepared for Hat Island Year Reserve Fund Projection (Current Funding) Current Funding Plan Year Start Balance Annual Reserve Contribution Special Assessments Additional Assessments Necessary Per Unit /Per Year Interest Income Reserve Expenses Fully Funded Balance Percent Funded 2016 $0.00 $90, $0.00 $16.64 $0.00 $105, $862, % 2017 $0.00 $92, $0.00 $0.00 $73, $892, % 2018 $19, $95, $0.00 $ $43, $961, % 2019 $71, $98, $0.00 $72.10 $0.00 $236, $1,066, % 2020 $0.00 $101, $0.00 $0.00 $65, $984, % 2021 $36, $104, $0.00 $0.00 $107, $1,083, % 2022 $33, $107, $0.00 $ $60, $1,154, % 2023 $80, $110, $0.00 $ $25, $1,293, % 2024 $165, $114, $0.00 $ $105, $1,508, % 2025 $174, $117, $0.00 $ $150, $1,735, % 2026 $141, $120, $0.00 $1, $0.00 $1,187, $2,266, % 2027 $0.00 $124, $0.00 $0.00 $107, $1,244, % 2028 $16, $128, $0.00 $ $53, $1,308, % 2029 $92, $132, $0.00 $0.00 $203, $1,434, % 2030 $20, $136, $0.00 $ $0.00 $633, $1,415, % 2031 $0.00 $140, $0.00 $0.00 $83, $956, % 2032 $56, $144, $0.00 $ $59, $1,054, % 2033 $142, $148, $0.00 $1, $24, $1,182, % 2034 $266, $153, $0.00 $1, $144, $1,353, % 2035 $276, $157, $0.00 $1, $210, $1,412, % 2036 $224, $162, $0.00 $ $209, $1,408, % 2037 $178, $167, $0.00 $ $127, $1,409, % 2038 $218, $172, $0.00 $0.00 $341, $1,498, % 2039 $49, $177, $0.00 $0.00 $207, $1,374, % 2040 $19, $182, $0.00 $ $39, $1,390, % 2041 $163, $188, $0.00 $1, $90, $1,584, % 2042 $262, $194, $0.00 $1, $209, $1,736, % 2043 $247, $199, $0.00 $2, $ $1,777, % 2044 $447, $205, $0.00 $2, $246, $2,039, % 2045 $408, $212, $0.00 $1, $263, $2,065, %

10 Prepared for Hat Island Year Reserve Fund Projection (Baseline Funding) Baseline Funding Plan Year Start Balance Annual Reserve Contribution Special Assessments Interest Income Reserve Expenses Fully Funded Balance Percent Funded 2016 $0.00 $155, $240, $0.00 $105, $862, % 2017 $290, $160, $0.00 $2, $73, $892, % 2018 $378, $165, $0.00 $2, $43, $961, % 2019 $501, $170, $0.00 $2, $236, $1,066, % 2020 $437, $175, $0.00 $3, $65, $984, % 2021 $549, $180, $0.00 $3, $107, $1,083, % 2022 $624, $185, $0.00 $4, $60, $1,154, % 2023 $753, $191, $0.00 $5, $25, $1,293, % 2024 $922, $197, $0.00 $6, $105, $1,508, % 2025 $1,017, $203, $0.00 $6, $150, $1,735, % 2026 $1,073, $209, $0.00 $0.00 $1,187, $2,266, % 2027 $95, $215, $0.00 $ $107, $1,244, % 2028 $203, $222, $0.00 $1, $53, $1,308, % 2029 $373, $228, $0.00 $1, $203, $1,434, % 2030 $400, $235, $0.00 $0.00 $633, $1,415, % 2031 $2, $138, $0.00 $0.00 $83, $956, % 2032 $56, $142, $0.00 $ $59, $1,054, % 2033 $140, $146, $0.00 $1, $24, $1,182, % 2034 $262, $151, $0.00 $1, $144, $1,353, % 2035 $270, $155, $0.00 $ $210, $1,412, % 2036 $216, $160, $0.00 $ $209, $1,408, % 2037 $167, $165, $0.00 $ $127, $1,409, % 2038 $206, $170, $0.00 $0.00 $341, $1,498, % 2039 $34, $175, $0.00 $0.00 $207, $1,374, % 2040 $2, $180, $0.00 $ $39, $1,390, % 2041 $143, $185, $0.00 $1, $90, $1,584, % 2042 $239, $191, $0.00 $ $209, $1,736, % 2043 $221, $197, $0.00 $2, $ $1,777, % 2044 $419, $203, $0.00 $1, $246, $2,039, % 2045 $376, $209, $0.00 $1, $263, $2,065, %

11 Prepared for Hat Island Year Reserve Fund Projection (Full Funding) Full Funding Plan Year Start Balance Annual Reserve Contribution Special Assessments Interest Income Reserve Expenses Fully Funded Balance Percent Funded 2016 $0.00 $165, $240, $0.00 $105, $862, % 2017 $300, $170, $0.00 $2, $73, $892, % 2018 $399, $175, $0.00 $3, $43, $961, % 2019 $532, $181, $0.00 $2, $236, $1,066, % 2020 $479, $186, $0.00 $3, $65, $984, % 2021 $602, $192, $0.00 $4, $107, $1,083, % 2022 $690, $197, $0.00 $5, $60, $1,154, % 2023 $831, $203, $0.00 $6, $25, $1,293, % 2024 $1,012, $210, $0.00 $7, $105, $1,508, % 2025 $1,120, $216, $0.00 $7, $150, $1,735, % 2026 $1,191, $222, $0.00 $ $1,187, $2,266, % 2027 $226, $229, $0.00 $1, $107, $1,244, % 2028 $349, $236, $0.00 $2, $53, $1,308, % 2029 $534, $243, $0.00 $3, $203, $1,434, % 2030 $576, $250, $0.00 $ $633, $1,415, % 2031 $193, $250, $0.00 $1, $83, $956, % 2032 $361, $251, $0.00 $2, $59, $1,054, % 2033 $555, $251, $0.00 $4, $24, $1,182, % 2034 $784, $251, $0.00 $5, $144, $1,353, % 2035 $895, $252, $0.00 $5, $210, $1,412, % 2036 $939, $252, $0.00 $5, $209, $1,408, % 2037 $986, $252, $0.00 $6, $127, $1,409, % 2038 $1,115, $252, $0.00 $6, $341, $1,498, % 2039 $1,030, $253, $0.00 $6, $207, $1,374, % 2040 $1,079, $253, $0.00 $8, $39, $1,390, % 2041 $1,298, $253, $0.00 $9, $90, $1,584, % 2042 $1,467, $254, $0.00 $9, $209, $1,736, % 2043 $1,517, $254, $0.00 $11, $ $1,777, % 2044 $1,777, $254, $0.00 $11, $246, $2,039, % 2045 $1,792, $255, $0.00 $11, $263, $2,065, %

12 Prepared for Hat Island - 11 Funding Plan Cash Flow Projections Full Funding Plan Year Percent Funded % % % % % Fully Funded Balance $862, $892, $961, $1,066, $984, Beginning Balance $0.00 $300, $399, $532, $479, Annual Contributions $165, $170, $175, $181, $186, Interest Earnings $0.00 $2, $3, $2, $3, Special Assessment $240, $0.00 $0.00 $0.00 $0.00 Reserve Expenses $105, $73, $43, $236, $65, Ending Balance $300, $399, $532, $479, $602, Expenses by Component & Year Components Equipment, Back Hoe / Excavator: Replace $0.00 $0.00 $0.00 $65, $0.00 Equipment, Dump Truck: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Equipment, Flail Mower: Replace $0.00 $0.00 $0.00 $10, $0.00 Fire Panel: Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Fuel Station Equipment $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Course Mowers: Replace $0.00 $8, $0.00 $0.00 $9, Golf, Fairway Tractor: Replace $0.00 $0.00 $0.00 $32, $0.00 Golf, Gang Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, John Deer Mower: Replace $0.00 $3, $0.00 $0.00 $0.00 Golf, Kubota Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Top Dressor/Sander: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina Showers Building: Replace Bldg $40, $0.00 $0.00 $0.00 $0.00 Marina, Concrete Boat Ramp: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Dock Surface: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Electrical $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Gangways: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Piles: Replace $0.00 $10, $0.00 $0.00 $0.00 Retention Ponds $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Golf Equipment Storage Building, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Maintenance Shop, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Marina Office: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Misc. Sheds: Replace $20, $0.00 $0.00 $0.00 $0.00 Roof, Starter Shack: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, The Commons, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Water Tanks, Metal: Replace $0.00 $0.00 $0.00 $0.00 $45, Roof, Well Houses & Rabitorium: Replace $6, $0.00 $0.00 $0.00 $0.00 Siding, Golf Equipment Storage Shed, Metal: Repaint $ $0.00 $0.00 $0.00 $0.00 Siding, Maintenance Shop, Metal: Repaint $2, $0.00 $0.00 $0.00 $0.00

13 Prepared for Hat Island - 12 Siding, Marina Office Building, Vinyl: Clean $ $0.00 $0.00 $ $0.00 Siding, Marina Office Building, Vinyl: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Misc. Sheds: Repaint $3, $0.00 $0.00 $0.00 $0.00 Siding, Misc. Sheds: Repair/Replace $1, $0.00 $0.00 $0.00 $0.00 Stairs: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Pick Up Truck: Replace $0.00 $0.00 $21, $0.00 $0.00 Vehicle, Water Manager Service Truck K25: Replace $0.00 $20, $0.00 $0.00 $0.00 Vessel: Deposit for Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Water Pressure Booster System: Replace $0.00 $0.00 $0.00 $10, $0.00 Water System Sand Filter $0.00 $0.00 $0.00 $0.00 $0.00 Water System, RO: Replace Membranes $0.00 $10, $0.00 $0.00 $0.00 Water Tanks, Concrete, G&M: Line/Replace $0.00 $0.00 $0.00 $65, $0.00 Water Treatment System RO: Upgrades $20, $0.00 $0.00 $0.00 $0.00 Waterlines $0.00 $0.00 $0.00 $0.00 $0.00 Wells $0.00 $0.00 $0.00 $0.00 $0.00 Window/Glass Doors: Replace $0.00 $0.00 $0.00 $0.00 $0.00

14 Prepared for Hat Island - 13 Full Funding Plan Year Percent Funded % % % % % Fully Funded Balance $1,083, $1,154, $1,293, $1,508, $1,735, Beginning Balance $602, $690, $831, $1,012, $1,120, Annual Contributions $192, $197, $203, $210, $216, Interest Earnings $4, $5, $6, $7, $7, Special Assessment $0.00 $0.00 $0.00 $0.00 $0.00 Reserve Expenses $107, $60, $25, $105, $150, Ending Balance $690, $831, $1,012, $1,120, $1,191, Expenses by Component & Year Components Equipment, Back Hoe / Excavator: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Equipment, Dump Truck: Replace $0.00 $0.00 $0.00 $31, $0.00 Equipment, Flail Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Fire Panel: Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Fuel Station Equipment $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Course Mowers: Replace $0.00 $0.00 $9, $0.00 $0.00 Golf, Fairway Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Gang Mower: Replace $0.00 $0.00 $0.00 $0.00 $2, Golf, John Deer Mower: Replace $0.00 $0.00 $0.00 $0.00 $3, Golf, Kubota Tractor: Replace $0.00 $0.00 $0.00 $0.00 $26, Golf, Top Dressor/Sander: Replace $0.00 $0.00 $0.00 $0.00 $19, Marina Showers Building: Replace Bldg $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Concrete Boat Ramp: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Dock Surface: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Electrical $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Gangways: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Piles: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Retention Ponds $11, $0.00 $0.00 $0.00 $0.00 Roof, Golf Equipment Storage Building, Metal: Replace $23, $0.00 $0.00 $0.00 $0.00 Roof, Maintenance Shop, Metal: Replace $41, $0.00 $0.00 $0.00 $0.00 Roof, Marina Office: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Misc. Sheds: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Starter Shack: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, The Commons, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Water Tanks, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Well Houses & Rabitorium: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Golf Equipment Storage Shed, Metal: Repaint $0.00 $0.00 $0.00 $1, $0.00 Siding, Maintenance Shop, Metal: Repaint $0.00 $0.00 $0.00 $3, $0.00 Siding, Marina Office Building, Vinyl: Clean $0.00 $ $0.00 $0.00 $ Siding, Marina Office Building, Vinyl: Replace $0.00 $0.00 $0.00 $0.00 $0.00

15 Prepared for Hat Island - 14 Siding, Misc. Sheds: Repaint $0.00 $0.00 $0.00 $4, $0.00 Siding, Misc. Sheds: Repair/Replace $0.00 $0.00 $0.00 $2, $0.00 Stairs: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Pick Up Truck: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Water Manager Service Truck K25: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vessel: Deposit for Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Water Pressure Booster System: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water System Sand Filter $0.00 $0.00 $6, $0.00 $0.00 Water System, RO: Replace Membranes $0.00 $11, $0.00 $0.00 $0.00 Water Tanks, Concrete, G&M: Line/Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water Treatment System RO: Upgrades $23, $0.00 $0.00 $0.00 $0.00 Waterlines $0.00 $0.00 $0.00 $0.00 $0.00 Wells $0.00 $0.00 $0.00 $0.00 $0.00 Window/Glass Doors: Replace $0.00 $0.00 $0.00 $0.00 $0.00

16 Prepared for Hat Island - 15 Full Funding Plan Year Percent Funded % % % % % Fully Funded Balance $2,266, $1,244, $1,308, $1,434, $1,415, Beginning Balance $1,191, $226, $349, $534, $576, Annual Contributions $222, $229, $236, $243, $250, Interest Earnings $ $1, $2, $3, $ Special Assessment $0.00 $0.00 $0.00 $0.00 $0.00 Reserve Expenses $1,187, $107, $53, $203, $633, Ending Balance $226, $349, $534, $576, $193, Expenses by Component & Year Components Equipment, Back Hoe / Excavator: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Equipment, Dump Truck: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Equipment, Flail Mower: Replace $0.00 $0.00 $0.00 $14, $0.00 Fire Panel: Replacement $3, $0.00 $0.00 $0.00 $0.00 Fuel Station Equipment $6, $0.00 $0.00 $0.00 $0.00 Golf, Course Mowers: Replace $10, $0.00 $0.00 $11, $0.00 Golf, Fairway Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Gang Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, John Deer Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Kubota Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Top Dressor/Sander: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina Showers Building: Replace Bldg $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Concrete Boat Ramp: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Dock Surface: Replace $0.00 $0.00 $0.00 $0.00 $605, Marina, Electrical $0.00 $0.00 $28, $0.00 $0.00 Marina, Gangways: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Piles: Replace $0.00 $13, $0.00 $0.00 $0.00 Retention Ponds $13, $0.00 $0.00 $0.00 $0.00 Roof, Golf Equipment Storage Building, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Maintenance Shop, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Marina Office: Replace $0.00 $0.00 $0.00 $0.00 $16, Roof, Misc. Sheds: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Starter Shack: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, The Commons, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Water Tanks, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Well Houses & Rabitorium: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Golf Equipment Storage Shed, Metal: Repaint $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Maintenance Shop, Metal: Repaint $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Marina Office Building, Vinyl: Clean $0.00 $0.00 $ $0.00 $0.00 Siding, Marina Office Building, Vinyl: Replace $0.00 $0.00 $0.00 $32, $0.00

17 Prepared for Hat Island - 16 Siding, Misc. Sheds: Repaint $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Misc. Sheds: Repair/Replace $0.00 $0.00 $0.00 $0.00 $0.00 Stairs: Replace $4, $0.00 $0.00 $0.00 $0.00 Vehicle, Pick Up Truck: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Water Manager Service Truck K25: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vessel: Deposit for Replacement $1,007, $0.00 $0.00 $0.00 $0.00 Water Pressure Booster System: Replace $0.00 $0.00 $0.00 $14, $0.00 Water System Sand Filter $0.00 $0.00 $0.00 $0.00 $0.00 Water System, RO: Replace Membranes $0.00 $13, $0.00 $0.00 $0.00 Water Tanks, Concrete, G&M: Line/Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water Treatment System RO: Upgrades $26, $0.00 $0.00 $0.00 $0.00 Waterlines $67, $0.00 $0.00 $0.00 $0.00 Wells $13, $0.00 $0.00 $0.00 $0.00 Window/Glass Doors: Replace $16, $0.00 $0.00 $0.00 $0.00

18 Prepared for Hat Island - 17 Full Funding Plan Year Percent Funded % % % % % Fully Funded Balance $956, $1,054, $1,182, $1,353, $1,412, Beginning Balance $193, $361, $555, $784, $895, Annual Contributions $250, $251, $251, $251, $252, Interest Earnings $1, $2, $4, $5, $5, Special Assessment $0.00 $0.00 $0.00 $0.00 $0.00 Reserve Expenses $83, $59, $24, $144, $210, Ending Balance $361, $555, $784, $895, $939, Expenses by Component & Year Components Equipment, Back Hoe / Excavator: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Equipment, Dump Truck: Replace $0.00 $0.00 $0.00 $42, $0.00 Equipment, Flail Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Fire Panel: Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Fuel Station Equipment $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Course Mowers: Replace $0.00 $12, $0.00 $0.00 $14, Golf, Fairway Tractor: Replace $0.00 $0.00 $0.00 $51, $0.00 Golf, Gang Mower: Replace $0.00 $0.00 $0.00 $0.00 $3, Golf, John Deer Mower: Replace $0.00 $0.00 $4, $0.00 $0.00 Golf, Kubota Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Top Dressor/Sander: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina Showers Building: Replace Bldg $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Concrete Boat Ramp: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Dock Surface: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Electrical $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Gangways: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Piles: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Retention Ponds $15, $0.00 $0.00 $0.00 $0.00 Roof, Golf Equipment Storage Building, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Maintenance Shop, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Marina Office: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Misc. Sheds: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Starter Shack: Replace $1, $0.00 $0.00 $0.00 $0.00 Roof, The Commons, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Water Tanks, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Well Houses & Rabitorium: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Golf Equipment Storage Shed, Metal: Repaint $0.00 $1, $0.00 $0.00 $0.00 Siding, Maintenance Shop, Metal: Repaint $0.00 $4, $0.00 $0.00 $0.00 Siding, Marina Office Building, Vinyl: Clean $ $0.00 $0.00 $ $0.00 Siding, Marina Office Building, Vinyl: Replace $0.00 $0.00 $0.00 $0.00 $0.00

19 Prepared for Hat Island - 18 Siding, Misc. Sheds: Repaint $0.00 $5, $0.00 $0.00 $0.00 Siding, Misc. Sheds: Repair/Replace $0.00 $2, $0.00 $0.00 $0.00 Stairs: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Pick Up Truck: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Water Manager Service Truck K25: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vessel: Deposit for Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Water Pressure Booster System: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water System Sand Filter $0.00 $0.00 $0.00 $0.00 $0.00 Water System, RO: Replace Membranes $0.00 $16, $0.00 $0.00 $0.00 Water Tanks, Concrete, G&M: Line/Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water Treatment System RO: Upgrades $31, $0.00 $0.00 $0.00 $0.00 Waterlines $0.00 $0.00 $0.00 $0.00 $0.00 Wells $0.00 $0.00 $0.00 $0.00 $0.00 Window/Glass Doors: Replace $0.00 $0.00 $0.00 $0.00 $0.00

20 Prepared for Hat Island - 19 Full Funding Plan Year Percent Funded Fully Funded Balance $1,408, % $1,409, % $1,498, % $1,374, % $1,390, % Beginning Balance $939, $986, $1,115, $1,030, $1,079, Annual Contributions $252, $252, $252, $253, $253, Interest Earnings $5, $6, $6, $6, $8, Special Assessment $0.00 $0.00 $0.00 $0.00 $0.00 Reserve Expenses $209, $127, $341, $207, $39, Ending Balance $986, $1,115, $1,030, $1,079, $1,298, Expenses by Component & Year Components Equipment, Back Hoe / Excavator: Replace $0.00 $0.00 $0.00 $118, $0.00 Equipment, Dump Truck: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Equipment, Flail Mower: Replace $0.00 $0.00 $0.00 $19, $0.00 Fire Panel: Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Fuel Station Equipment $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Course Mowers: Replace $0.00 $0.00 $15, $0.00 $0.00 Golf, Fairway Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Gang Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, John Deer Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Kubota Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Top Dressor/Sander: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina Showers Building: Replace Bldg $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Concrete Boat Ramp: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Dock Surface: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Electrical $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Gangways: Replace $0.00 $0.00 $191, $0.00 $0.00 Marina, Piles: Replace $0.00 $18, $0.00 $0.00 $0.00 Retention Ponds $18, $0.00 $0.00 $0.00 $0.00 Roof, Golf Equipment Storage Building, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Maintenance Shop, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Marina Office: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Misc. Sheds: Replace $36, $0.00 $0.00 $0.00 $0.00 Roof, Starter Shack: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, The Commons, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Water Tanks, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Well Houses & Rabitorium: Replace $10, $0.00 $0.00 $0.00 $0.00 Siding, Golf Equipment Storage Shed, Metal: Repaint $0.00 $0.00 $0.00 $0.00 $1, Siding, Maintenance Shop, Metal: Repaint $0.00 $0.00 $0.00 $0.00 $5, Siding, Marina Office Building, Vinyl: Clean $0.00 $ $0.00 $0.00 $ Siding, Marina Office Building, Vinyl: Replace $0.00 $0.00 $0.00 $0.00 $0.00

21 Prepared for Hat Island - 20 Siding, Misc. Sheds: Repaint $0.00 $0.00 $0.00 $0.00 $7, Siding, Misc. Sheds: Repair/Replace $0.00 $0.00 $0.00 $0.00 $3, Stairs: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Pick Up Truck: Replace $0.00 $0.00 $38, $0.00 $0.00 Vehicle, Water Manager Service Truck K25: Replace $0.00 $37, $0.00 $0.00 $0.00 Vessel: Deposit for Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Water Pressure Booster System: Replace $0.00 $0.00 $0.00 $19, $0.00 Water System Sand Filter $0.00 $0.00 $9, $0.00 $0.00 Water System, RO: Replace Membranes $0.00 $18, $0.00 $0.00 $0.00 Water Tanks, Concrete, G&M: Line/Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water Treatment System RO: Upgrades $36, $0.00 $0.00 $0.00 $0.00 Waterlines $90, $0.00 $0.00 $0.00 $0.00 Wells $0.00 $0.00 $0.00 $0.00 $0.00 Window/Glass Doors: Replace $0.00 $0.00 $0.00 $0.00 $0.00

22 Prepared for Hat Island - 21 Full Funding Plan Year Percent Funded Fully Funded Balance $1,584, % $1,736, % $1,777, % $2,039, % $2,065, % Beginning Balance $1,298, $1,467, $1,517, $1,777, $1,792, Annual Contributions $253, $254, $254, $254, $255, Interest Earnings $9, $9, $11, $11, $11, Special Assessment $0.00 $0.00 $0.00 $0.00 $0.00 Reserve Expenses $90, $209, $ $246, $263, Ending Balance $1,467, $1,517, $1,777, $1,792, $1,790, Expenses by Component & Year Components Equipment, Back Hoe / Excavator: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Equipment, Dump Truck: Replace $0.00 $0.00 $0.00 $57, $0.00 Equipment, Flail Mower: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Fire Panel: Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Fuel Station Equipment $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Course Mowers: Replace $16, $0.00 $0.00 $18, $0.00 Golf, Fairway Tractor: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Golf, Gang Mower: Replace $0.00 $0.00 $0.00 $0.00 $4, Golf, John Deer Mower: Replace $6, $0.00 $0.00 $0.00 $0.00 Golf, Kubota Tractor: Replace $0.00 $0.00 $0.00 $0.00 $47, Golf, Top Dressor/Sander: Replace $0.00 $0.00 $0.00 $0.00 $35, Marina Showers Building: Replace Bldg $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Concrete Boat Ramp: Replace $0.00 $53, $0.00 $0.00 $0.00 Marina, Dock Surface: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Electrical $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Gangways: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Marina, Piles: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Retention Ponds $20, $0.00 $0.00 $0.00 $0.00 Roof, Golf Equipment Storage Building, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Maintenance Shop, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Marina Office: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Misc. Sheds: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Starter Shack: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, The Commons, Metal: Replace $0.00 $54, $0.00 $0.00 $0.00 Roof, Water Tanks, Metal: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Roof, Well Houses & Rabitorium: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Golf Equipment Storage Shed, Metal: Repaint $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Maintenance Shop, Metal: Repaint $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Marina Office Building, Vinyl: Clean $0.00 $0.00 $ $0.00 $0.00 Siding, Marina Office Building, Vinyl: Replace $0.00 $0.00 $0.00 $0.00 $0.00

23 Prepared for Hat Island - 22 Siding, Misc. Sheds: Repaint $0.00 $0.00 $0.00 $0.00 $0.00 Siding, Misc. Sheds: Repair/Replace $0.00 $0.00 $0.00 $0.00 $0.00 Stairs: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Pick Up Truck: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vehicle, Water Manager Service Truck K25: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Vessel: Deposit for Replacement $0.00 $0.00 $0.00 $0.00 $0.00 Water Pressure Booster System: Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water System Sand Filter $0.00 $0.00 $0.00 $0.00 $0.00 Water System, RO: Replace Membranes $0.00 $21, $0.00 $0.00 $0.00 Water Tanks, Concrete, G&M: Line/Replace $0.00 $0.00 $0.00 $0.00 $0.00 Water Treatment System RO: Upgrades $41, $0.00 $0.00 $0.00 $0.00 Waterlines $0.00 $0.00 $0.00 $0.00 $0.00 Wells $0.00 $0.00 $0.00 $0.00 $0.00 Window/Glass Doors: Replace $0.00 $0.00 $0.00 $0.00 $0.00

24 Prepared for Hat Island - 23 We completed a site visit as part of this reserve study on 5/20/2015. Table 2 below shows all the components considered for funding and explains the basis of the funding decision. Table 2: Component Funding Basis Component Condition Funding Basis Buildings, Electrical Buildings, Plumbing System Unfunded outside the 30 year scope of report Unfunded outside the 30 year scope of report Equipment, Back Hoe / Excavator: Replace Poor Funded based on Association direction Equipment, Dozer: Replace Poor Funded based on Association records Equipment, Dump Truck: Replace Good Funded based on Association records Equipment, Flail Mower: Replace Fair Funded based on Association records Equipment, Water Tank / Sprayer: Replace Unknown Funded based on Association records Equipment: JD 5410 Tractor, Replace Good Funded based on Association direction Fence: Replace Physical Analysis Unfunded operating expense Fire Panel: Replacement Unknown Funded based on the typical life expectancy Fuel Station Equipment Fair Funded based on the typical life expectancy Golf, Aerator: Replace Poor Funded based on Association records Golf, Course Mowers: Replace Poor Funded based on Association direction Golf, Fairway Tractor: Replace Poor Funded based on Association records Golf, Gang Mower: Replace Excellent Funded based on Association direction Golf, Jacobsen Fairway Sweeper: Replace Fair Funded based on Association records Golf, Jacobsen Hauler: Replace Fair Funded based on Association direction Golf, Jacobsen Verti-cutter: Replace Poor Unfunded as directed by Association Golf, John Deer Mower: Replace Fair Funded based on Association records Golf, Kubota Tractor: Replace Good Funded based on Association records Golf, Top Dressor/Sander: Replace Good Funded based on Association records Interior Furnishings: Refurbish Assorted Condition Unfunded as directed by Association Interior: Refurbish Assorted Condition Unfunded as directed by Association Marina Showers Building: Replace Bldg Poor Funded based on Association direction Marina, Bulkheads & Breakwater: Repair Good Unfunded outside the 30 year scope of report Marina, Concrete Boat Ramp: Replace Excellent Funded based on Association records Marina, Dock Surface: Replace Good Funded based on Association records Marina, Electrical Good Funded based on Association records Marina, Gangways: Replace Good Funded based on Association records Marina, Maintenance Dredge Good Funded based on Association records Marina, Piles: Replace Fair Funded based on Association direction Retention Ponds Fair Funded based on the typical life expectancy Roof, Golf Equipment Storage Building, Metal: Replace Fair Funded based on Association direction Roof, Maintenance Shop, Metal: Replace Fair Funded based on Association direction Roof, Marina Office: Replace Good Funded based on Association records Roof, Misc. Sheds: Replace Poor Funded based on Association records Roof, Starter Shack: Replace Good Funded based on the typical life expectancy Roof, The Commons, Metal: Replace Good Funded based on the typical life expectancy

25 Prepared for Hat Island - 24 Roof, Water Tanks, Metal: Replace Poor Funded based on the typical life expectancy Roof, Well Houses & Rabitorium: Replace Poor Funded based on the typical life expectancy Siding, Golf Equipment Storage Shed, Metal: Repaint Poor Funded based on the typical life expectancy Siding, Maintenance Shop, Metal: Repaint Fair Funded based on the typical life expectancy Siding, Marina Office Building, Vinyl: Clean Poor Funded based on the typical life expectancy Siding, Marina Office Building, Vinyl: Replace Fair Funded based on the typical life expectancy Siding, Misc. Sheds: Repaint Assorted Condition Funded based on the typical life expectancy Siding, Misc. Sheds: Repair/Replace Poor Funded based on the typical life expectancy Stairs: Replace Fair Funded based on the typical life expectancy Tennis Court: Resurface Poor Funded based on Association direction Vehicle, Isuzu Flatbed Good Funded based on Association direction Vehicle, Manager Poor Funded based on Association direction Vehicle, Pick Up Truck: Replace Poor Funded based on Association records Vehicle, Water Manager Service Truck K25: Replace Poor Funded based on Association direction Vessel, Generator Set: Replace Fair Funded based on Association direction Vessel, Port Engine: Rebuild Good Funded based on Association records Vessel, Starboard Engine: Rebuild Good Funded based on Association records Vessel, Transmissions Fair Funded based on Association direction Vessel, Wheels and Shafts Poor Funded based on Association direction Vessel: Deposit for Replacement Funded based on Association direction Vessel: Rehab Fair Funded based on Association direction Water Pressure Booster System: Replace Fair Funded based on Association records Water System Sand Filter Good Funded based on Association direction Water System, RO: Replace Membranes Poor Funded based on Association records Water Tanks, Concrete, G&M: Line/Replace Poor Funded based on Association records Water Treatment System RO: Upgrades Fair Funded based on Association direction Waterlines Fair Funded based on Association records Wells Unknown Funded based on the typical life expectancy Window/Glass Doors: Replace Fair Funded based on the typical life expectancy

26 Prepared for Hat Island - 25 Table 3: Component Metrics Component FFB % FFB Annual Cost % Annual Cost Equipment, Back Hoe / Excavator: Replace $51, % $3, % Equipment, Dozer: Replace $8, % $1, % Equipment, Dump Truck: Replace $5, % $2, % Equipment, Flail Mower: Replace $7, % $1, % Equipment, Water Tank / Sprayer: Replace $1, % $ % Equipment: JD 5410 Tractor, Replace $1, % $1, % Fire Panel: Replacement $1, % $ % Fuel Station Equipment $2, % $ % Golf, Aerator: Replace $4, % $ % Golf, Course Mowers: Replace $5, % $2, % Golf, Fairway Tractor: Replace $24, % $2, % Golf, Gang Mower: Replace $ % $ % Golf, Jacobsen Fairway Sweeper: Replace $5, % $ % Golf, Jacobsen Hauler: Replace $1, % $ % Golf, John Deer Mower: Replace $2, % $ % Golf, Kubota Tractor: Replace $11, % $1, % Golf, Top Dressor/Sander: Replace $8, % $ % Marina Showers Building: Replace Bldg $40, % $1, % Marina, Concrete Boat Ramp: Replace $3, % $ % Marina, Dock Surface: Replace $145, % $18, % Marina, Electrical $8, % $1, % Marina, Gangways: Replace $26, % $3, % Marina, Maintenance Dredge $20, % $10, % Marina, Piles: Replace $9, % $1, % Retention Ponds $ % $2, % Roof, Golf Equipment Storage Building, Metal: Replace $17, % $ % Roof, Maintenance Shop, Metal: Replace $31, % $ % Roof, Marina Office: Replace $3, % $ % Roof, Misc. Sheds: Replace $20, % $1, % Roof, Starter Shack: Replace $ % $ % Roof, The Commons, Metal: Replace $8, % $ % Roof, Water Tanks, Metal: Replace $36, % $1, % Roof, Well Houses & Rabitorium: Replace $6, % $ % Siding, Golf Equipment Storage Shed, Metal: Repaint $ % $ % Siding, Maintenance Shop, Metal: Repaint $2, % $ % Siding, Marina Office Building, Vinyl: Clean $ % $ % Siding, Marina Office Building, Vinyl: Replace $12, % $ % Siding, Misc. Sheds: Repaint $3, % $ % Siding, Misc. Sheds: Repair/Replace $1, % $ % Stairs: Replace $1, % $ % Tennis Court: Resurface $ % $1, % Vehicle, Isuzu Flatbed $5, % $1, %

27 Prepared for Hat Island - 26 Vehicle, Manager $19, % $1, % Vehicle, Pick Up Truck: Replace $18, % $1, % Vehicle, Water Manager Service Truck K25: Replace $19, % $1, % Vessel, Generator Set: Replace $10, % $ % Vessel, Port Engine: Rebuild $10, % $5, % Vessel, Starboard Engine: Rebuild $21, % $5, % Vessel, Transmissions $25, % $2, % Vessel, Wheels and Shafts $10, % $2, % Vessel: Deposit for Replacement $68, % $750, % Vessel: Rehab $7, % $7, % Water Pressure Booster System: Replace $7, % $1, % Water System Sand Filter $2, % $ % Water System, RO: Replace Membranes $8, % $2, % Water Tanks, Concrete, G&M: Line/Replace $55, % $1, % Water Treatment System RO: Upgrades $20, % $4, % Waterlines $ % $5, % Wells $8, % $ % Window/Glass Doors: Replace $8, % $ % Current Fully Funded Balance $862, $855, Per Year Current Reserve Fund Deficit/Surplus ($862,358.65) $71, Per Month This table shows metric information regarding the influence each component has on the fully funded balance and contribution requirements.

28 Prepared for Hat Island - 27 Component Details Building - Buildings, Electrical Current Cost: Funding Basis: Unfunded outside the 30 year scope of report No reported problems. Analysis of the electrical system is beyond the scope of a reserve study. At this time, there is no expectation of significant repair or expenses required. An inspection by an electrical engineer would warn the Board of any current problems and allow them to be repaired or replaced. This inspection could include the use of infrared or thermographic equipment to detect hot spots. We recommend regular inspections of the system by a qualified electrician incorporating the results into future reserve study updates. Building - Buildings, Plumbing System Funding Basis: Unfunded outside the 30 year scope of report No reported problems. Analysis of the plumbing system is beyond the scope of a reserve study. There is no history of building plumbing expenses reported. No expectation of large scale repair or replacement expenses within the scope of this report, however we recommend regular video camera inspections and repair as needed. Should patterns of expense develop, funding maybe updated in future reserve study updates. Mechanical & Equipment - Equipment, Back Hoe / Excavator: Replace Quantity: 1 Each UL: 20 RUL: 3 Current Cost: $60, Condition: Poor Funding Basis: Funded based on Association direction Existing back hoe to be retained until scrapped. Replacement equipment to be tracked excavator. Mechanical & Equipment - Equipment, Dozer: Replace

29 Prepared for Hat Island - 28 Quantity: 1 Each UL: 10 RUL: 2 Current Cost: $10, Condition: Poor Funding Basis: Funded based on Association records Mechanical & Equipment - Equipment, Dump Truck: Replace Quantity: 1 Each UL: 10 RUL: 8 Current Cost: $25, Condition: Good Funding Basis: Funded based on Association records Mechanical & Equipment - Equipment, Flail Mower: Replace Quantity: 1 Each UL: 10 RUL: 3 Current Cost: $10, Condition: Fair Funding Basis: Funded based on Association records Mechanical & Equipment - Equipment, Water Tank / Sprayer: Replace Quantity: 1 Each UL: 20 Condition: Unknown RUL: 10 Funding Basis: Funded based on Association records Mechanical & Equipment - Equipment: JD 5410 Tractor, Replace Quantity: 1 Allowance UL: 20 RUL: 19 Current Cost: $35, Condition: Good Funding Basis: Funded based on Association direction Current Cost: $2,000.00

30 Prepared for Hat Island - 29 Site/Grounds - Fence: Replace Current Cost: Funding Basis: Unfunded operating expense Historically fencing work has been performed by volunteer labor with materials being purchased with Operating budget funds. Mechanical & Equipment - Fire Panel: Replacement Quantity: 1 Allowance UL: 20 RUL: 10 Current Cost: $2, Condition: Unknown Funding Basis: Funded based on the typical life expectancy Reportedly functional condition with no problems at this time. Panels are enclosed for weather protection. Generally these panels can last for an extended period of time barring a damaging electrical event. However, funding is included for repair/replacement and anticipated upgrade needs. Mechanical & Equipment - Fuel Station Equipment Quantity: 1 Allowance UL: 20 RUL: 10 Current Cost: $5, Condition: Fair Funding Basis: Funded based on the typical life expectancy An allowance is recommended for partial replacement of pumps and tanks. Mechanical & Equipment - Golf, Aerator: Replace

31 Prepared for Hat Island - 30 Location: Golf Course Quantity: 1 Each UL: 45 RUL: 5 Current Cost: $5, Condition: Poor Funding Basis: Funded based on Association records Mechanical & Equipment - Golf, Course Mowers: Replace Location: Golf Course Quantity: 1 Allowance UL: 3 RUL: 1 Current Cost: $8, Condition: Poor Funding Basis: Funded based on Association direction This component is for funds to allow the purchase of one replacement mower every three years. Mechanical & Equipment - Golf, Fairway Tractor: Replace Quantity: 1 Each UL: 15 Condition: Poor RUL: 3 Funding Basis: Funded based on Association records Mechanical & Equipment - Golf, Gang Mower: Replace Current Cost: $30, Quantity: 1 Allowance UL: 10 Condition: Excellent RUL: 9 Funding Basis: Funded based on Association direction Mechanical & Equipment - Golf, Jacobsen Fairway Sweeper: Replace Current Cost: $2, Quantity: 1 Allowance UL: 20 Condition: Fair RUL: 10 Funding Basis: Funded based on Association records Mechanical & Equipment - Golf, Jacobsen Hauler: Replace Current Cost: $10, Quantity: 1 Allowance UL: 10 Condition: Fair RUL: 5 Funding Basis: Funded based on Association direction Mechanical & Equipment - Golf, Jacobsen Verti-cutter: Replace Quantity: 1 Each Current Cost: $2,250.00

32 Prepared for Hat Island - 31 Condition: Poor Funding Basis: Unfunded as directed by Association Mechanical & Equipment - Golf, John Deer Mower: Replace Quantity: 1 Each UL: 8 Condition: Fair RUL: 1 Funding Basis: Funded based on Association records Mechanical & Equipment - Golf, Kubota Tractor: Replace Current Cost: $3, Quantity: 1 Each UL: 20 Condition: Good RUL: 9 Funding Basis: Funded based on Association records Mechanical & Equipment - Golf, Top Dressor/Sander: Replace Current Cost: $20, Quantity: 1 Each UL: 20 Condition: Good RUL: 9 Funding Basis: Funded based on Association records Building Interior - Interior Furnishings: Refurbish Current Cost: $15, Condition: Assorted Condition Funding Basis: Unfunded as directed by Association Furnishings will be updated by donation from Owners. Building Interior - Interior: Refurbish Condition: Assorted Condition Funding Basis: Unfunded as directed by Association Updating would be by way of donation from Owners. Building - Marina Showers Building: Replace Bldg Quantity: 1 Allowance UL: 40 Condition: Poor RUL: 0 Funding Basis: Funded based on Association direction Complete replacement for existing building. Site/Grounds - Marina, Bulkheads & Breakwater: Repair Current Cost: $40,000.00

33 Prepared for Hat Island - 32 Location: Marina Current Cost: Condition: Good Funding Basis: Unfunded outside the 30 year scope of report Site/Grounds - Marina, Concrete Boat Ramp: Replace Location: Marina Quantity: 1 Allowance UL: 30 RUL: 26 Current Cost: $25, Condition: Excellent Funding Basis: Funded based on Association records New in Likely durable by subject to erosion and chlorine attack from seawater. Site/Grounds - Marina, Dock Surface: Replace Location: Marina Quantity: 1 Allowance UL: 22 RUL: 14 Current Cost: $400, Condition: Good Funding Basis: Funded based on Association records The older sections that were owned by the Puget Sound Yacht Club will need replacement before the newly replaced sections. Mechanical & Equipment - Marina, Electrical Quantity: 1 Allowance UL: 20 Condition: Good RUL: 12 Funding Basis: Funded based on Association records Current Cost: $20, No reported problems. Analysis of the electrical system is beyond the scope of a reserve study. At this time, there is no expectation of significant repair or expenses, however, we have included an allowance for repairs based on the Associations experience. An inspection by an electrical engineer would warn the Board of any current problems and allow them to be repaired or replaced. We recommend regular inspections of the system by a qualified electrician incorporating the results into future reserve study updates. Site/Grounds - Marina, Gangways: Replace

34 Prepared for Hat Island - 33 Location: Marina Quantity: 1 Allowance UL: 30 RUL: 22 Current Cost: $100, Condition: Good Funding Basis: Funded based on Association records Durable item that may have a longer life but better to be prepared for potential replacement. Site/Grounds - Marina, Maintenance Dredge Quantity: 1 Allowance UL: 5 Condition: Good RUL: 3 Funding Basis: Funded based on Association records Site/Grounds - Marina, Piles: Replace Location: Marina Quantity: 1 Allowance UL: 10 RUL: 1 Current Cost: $10, Condition: Fair Funding Basis: Funded based on Association direction Current Cost: $50, There are 31 older piles that are a part of the marina that is owned by the Puget Sound Yacht Club that is being transferred to the Association. These were not replaced as part of the recent marina work but will need to be replaced in the future, either as needed or as a project. The allowance is for investigation and planning for this work. Update the Reserve Study based on the results of this investigation. Site/Grounds - Retention Ponds Quantity: 1 Allowance UL: 5 RUL: 5 Current Cost: $10, Condition: Fair Funding Basis: Funded based on the typical life expectancy This component may be used to include funding for cycles of anticipated pond refurbishment. At this time we strongly recommend working with a qualified engineer or stormwater official to develop a operations and maintenance plan. With regular proactive maintenance there is little expectation of large expenses. However, if not maintained may include removing sediment, rebuilding the retention pond, clearing clogged inlets/outlets, correcting inadequate erosion control, etc. Building Exterior - Roof, Golf Equipment Storage Building, Metal: Replace

35 Prepared for Hat Island - 34 Location: Golf Course Quantity: 1 Allowance UL: 40 RUL: 5 Current Cost: $20, Condition: Fair Funding Basis: Funded based on Association direction Building Exterior - Roof, Maintenance Shop, Metal: Replace Quantity: 2876 Square Feet UL: 40 Condition: Fair RUL: 5 Funding Basis: Funded based on Association direction Building Exterior - Roof, Marina Office: Replace Location: Marina Quantity: 1089 Square Feet UL: 20 RUL: 14 Current Cost: $10, Condition: Good Funding Basis: Funded based on Association records Current Cost: $35, Good condition with no known or reported concerns at this time, such as water intrusion. We assume proper installation techniques and practices were used. Inspect regularly and repair as needed utilizing the general operating budget. The typical life expectancy is between years for this type of roofing. We recommend that the Association should have a professional roof inspection performed by an independant, qualified Roofing Inspector registered with RCI not a roofing contractor. Reserve funding recommended. Building Exterior - Roof, Misc. Sheds: Replace Quantity: 4 Allowance UL: 20 RUL: 0 Current Cost: $20, Condition: Poor Funding Basis: Funded based on Association records These roofs are past their prime and should be reroofed to protect the contents and the framing. Building Exterior - Roof, Starter Shack: Replace Quantity: 202 Allowance UL: 20 Condition: Good RUL: 15

36 Prepared for Hat Island - 35 Funding Basis: Funded based on the typical life expectancy Building Exterior - Roof, The Commons, Metal: Replace Current Cost: $1, Quantity: 2012 Allowance UL: 40 Condition: Good RUL: 26 Funding Basis: Funded based on the typical life expectancy Building Exterior - Roof, Water Tanks, Metal: Replace Current Cost: $25, Quantity: 2 Allowance UL: 40 Condition: Poor RUL: 4 Funding Basis: Funded based on the typical life expectancy Current Cost: $40, Detailed inspection recommended so that roof maintenance and eventual replacement planned. Building Exterior - Roof, Well Houses & Rabitorium: Replace Quantity: 6 Allowance UL: 20 Condition: Poor RUL: 0 Funding Basis: Funded based on the typical life expectancy Current Cost: $6, These should be reroofed as soon as possible to protect the contents and the framing. Building Exterior - Siding, Golf Equipment Storage Shed, Metal: Repaint Quantity: 852 Linear Feet UL: 8 Condition: Poor RUL: 0 Funding Basis: Funded based on the typical life expectancy Repainting the metal will protect it and allow it to reach its normal life expectancy. Building Exterior - Siding, Maintenance Shop, Metal: Repaint Current Cost: $ Quantity: 2808 Square Feet UL: 8 Condition: Fair RUL: 0 Funding Basis: Funded based on the typical life expectancy Repainting the metal will protect it and allow it to reach its normal life expectancy. Building Exterior - Siding, Marina Office Building, Vinyl: Clean Current Cost: $2,808.00

37 Prepared for Hat Island - 36 Location: Marina Quantity: 2006 Square Feet UL: 3 RUL: 0 Current Cost: $ Condition: Poor Funding Basis: Funded based on the typical life expectancy Areas of soiling observed during our inspection. While vinyl siding does not need to be painted and is relatively low maintenance, it does needs to be cleaned periodically. Therefore, reserve funding suggested for cycles of cleaning every three years. Building Exterior - Siding, Marina Office Building, Vinyl: Replace Quantity: 2006 Square Feet UL: 30 Condition: Fair RUL: 13 Funding Basis: Funded based on the typical life expectancy Current Cost: $22, Fair condition with no significant instability or deterioration reported. We assume proper waterproofing details were utilized including flashing and moisture barrier. We recommend continuing regular inspections with any repair completed utilizing the operating budget to ensure waterproofing. Should a pattern of instability develop repair funding may be added to the reserve study in future updates as necessary. Clean and inspect the vinyl regularly and perform any needed repairs promptly. Reserve funding recommended for replacement at the typical life expectancy of 30 years. Building Exterior - Siding, Misc. Sheds: Repaint Quantity: 6 Allowance UL: 8 Condition: Assorted Condition RUL: 0 Funding Basis: Funded based on the typical life expectancy The following building require repainting: Fitting Storage Building and Shop Pipe Storage Building M Tank Pump House G Tank Pump House Rabitorium Starter Shack Building Exterior - Siding, Misc. Sheds: Repair/Replace Current Cost: $3, Quantity: 6 Allowance UL: 8 Condition: Poor RUL: 0 Funding Basis: Funded based on the typical life expectancy Current Cost: $1, Partial siding replacement prior to each repainting cycle for the following buildings: Fittings Storage Building, Pipe Storage Building, M Tank Pump House, G Tank Pump House, Rabitorium & Starter Shack. Building Exterior - Stairs: Replace

38 Prepared for Hat Island - 37 Location: Marina Quantity: 1 Each UL: 20 RUL: 10 Current Cost: $3, Condition: Fair Funding Basis: Funded based on the typical life expectancy Good condition with no unusual deterioration or instability observed. No history of concern. These units are constructed utilizing sturdy materials, with no expectation of large scale repair or replacement required within the scope of this report. Inspect regularly and ensure that treads are fastened securely and cleaned to minimize slip hazards. Recreation - Tennis Court: Resurface Quantity: 1 Allowance UL: 7 RUL: 7 Current Cost: $8, Condition: Poor Funding Basis: Funded based on Association direction Currently covered in moss and not useable. Based on community need, this should be cleaned and resurfaced. Mechanical & Equipment - Vehicle, Isuzu Flatbed Quantity: 1 Allowance UL: 20 RUL: 15 Current Cost: $20, Condition: Good Funding Basis: Funded based on Association direction Mechanical & Equipment - Vehicle, Manager Quantity: 1 Allowance UL: 20 Condition: Poor RUL: 1 Funding Basis: Funded based on Association direction Replacement vehicle required as soon as possible. Mechanical & Equipment - Vehicle, Pick Up Truck: Replace Current Cost: $20, Quantity: 1 Each UL: 20 Condition: Poor RUL: 2

39 Prepared for Hat Island - 38 Funding Basis: Funded based on Association records Mechanical & Equipment - Vehicle, Water Manager Service Truck K25: Replace Quantity: 1 Allowance UL: 20 RUL: 1 Current Cost: $20, Condition: Poor Funding Basis: Funded based on Association direction Current Cost: $20, This is a 1998 K25 Fleetside truck. For Water system work. Mechanical & Equipment - Vessel, Generator Set: Replace Quantity: 1 Allowance UL: 15 Condition: Fair RUL: 2 Funding Basis: Funded based on Association direction Mechanical & Equipment - Vessel, Port Engine: Rebuild Current Cost: $12, Quantity: 1 Allowance UL: 15 Condition: Good RUL: 13 Funding Basis: Funded based on Association records Mechanical & Equipment - Vessel, Starboard Engine: Rebuild Current Cost: $80, Quantity: 1 Allowance UL: 15 Condition: Good RUL: 11 Funding Basis: Funded based on Association records Mechanical & Equipment - Vessel, Transmissions Current Cost: $80, Quantity: 1 Allowance UL: 16 Condition: Fair RUL: 6 Funding Basis: Funded based on Association direction Mechanical & Equipment - Vessel, Wheels and Shafts Current Cost: $40, Quantity: 1 Allowance UL: 4 Condition: Poor RUL: 0 Funding Basis: Funded based on Association direction Mechanical & Equipment - Vessel: Deposit for Replacement Current Cost: $10,000.00

40 Prepared for Hat Island - 39 Location: Vessel Quantity: 1 Allowance RUL: 10 Current Cost: $750, Funding Basis: Funded based on Association direction This component is for the deposit required for a replacement vessel. Salvage / resale value of existing vessel is not included and could be used to reduce the loan for the replacement vessel or to increase the balance in the Reserve Fund. Mechanical & Equipment - Vessel: Rehab Quantity: 1 Allowance UL: 10 Condition: Fair RUL: 9 Funding Basis: Funded based on Association direction Mechanical & Equipment - Water Pressure Booster System: Replace Quantity: 2 Each UL: 10 RUL: 3 Current Cost: $10, Condition: Fair Funding Basis: Funded based on Association records Current Cost: $75, Mechanical & Equipment - Water System Sand Filter Quantity: 1 Each UL: 15 Condition: Good RUL: 7 Funding Basis: Funded based on Association direction Planned upgrade based on the Association records. Mechanical & Equipment - Water System, RO: Replace Membranes Current Cost: $5, Quantity: 1 Allowance UL: 5 Condition: Poor RUL: 1 Funding Basis: Funded based on Association records Mechanical & Equipment - Water Tanks, Concrete, G&M: Line/Replace Current Cost: $10,000.00

41 Prepared for Hat Island - 40 Quantity: 2 Each UL: 39 RUL: 3 Current Cost: $60, Condition: Poor Funding Basis: Funded based on Association records Planned lining or replacement of the 2 concrete 150,000 gallon storage tanks. Mechanical & Equipment - Water Treatment System RO: Upgrades Quantity: 1 Allowance UL: 5 RUL: 0 Current Cost: $20, Condition: Fair Funding Basis: Funded based on Association direction Planned upgrades to the RO system based on the Association's past experience. Mechanical & Equipment - Waterlines Quantity: 1 Allowance UL: 10 Condition: Fair RUL: 10 Funding Basis: Funded based on Association records Current Cost: $50, The approximately 27,000 linear feet of waterlines have had some repairs / replacement done over the past 8 years, however they are now approximately 50 years old and increased breaks or leaks are likely to occur. Complete replacement would cost at least $3.5M. We recommend tracking costs and hours for this work so that a better budget can be developed. In addition, mapping the location of breaks, repairs and replacements will help to highlight areas of deterioration. This mapping could be done by GPS or measurement from easily identifiable components such as valves, hydrants, intersections, etc. Mechanical & Equipment - Wells Quantity: 1 Allowance UL: 50 RUL: 10 Current Cost: $10, Condition: Unknown Funding Basis: Funded based on the typical life expectancy The Association has 6 wells that are used to pump water for the community. While it is unlikely that all 6 would fail at one time, we feel it is prudent to include an allowance to drill one new well in future should it become necessary. The alternative would be to have this unplanned work paid from the Operating budget.

42 Prepared for Hat Island - 41 Building Exterior - Window/Glass Doors: Replace Quantity: 28 Each UL: 30 RUL: 10 Current Cost: $12, Condition: Fair Funding Basis: Funded based on the typical life expectancy Generally fair condition with no known water intrusion or concerns. We strongly recommend regular inspections and repair to ensure the integrity of the building envelope. Reserve funding recommended for eventual replacement at the typical life expectancy of 30 to 40 years. Should patterns of repair arise, additional funding may be included in future reserve studies, however, at this time there is no need.