NEW ALBANY COUNTRY CLUB MASTER ASSOCIATION, INC NEW ALBANY, OHIO

Transcription

1 RESERVE FUND STUDY NEW ALBANY COUNTRY CLUB MASTER ASSOCIATION, INC NEW ALBANY, OHIO Criterium Liszkay Engineers 110 N. High St. Gahanna, OH NOVEMBER 2013

2 1.0 INTRODUCTION EXECUTIVE SUMMARY PURPOSE & SCOPE PURPOSE SCOPE SOURCES OF INFORMATION DESCRIPTION OBSERVATIONS RESERVE FUND ANALYSIS CONCLUSION LIMITATIONS...9 APPENDIX A: RESERVE FUND PROJECTIONS...1 APPENDIX B: PROJECT PHOTOGRAPHS...2 APPENDIX C: PROFESSIONAL QUALIFICATIONS...3

3 1.0 INTRODUCTION. New Albany Master Association authorized Criterium Liszkay Engineers to conduct a Building Evaluation and Reserve Fund Study for New Albany Master Association located in. Studies of this nature are important to ensure that an Association has sufficient funds for long-term, periodic capital expenditure requirements. Anticipating large expenditures over an extended period of time through a structured analysis and scheduling process assists the Association in meeting financial requirements without increasing the service fees above permitted maximums, borrowing the funds or levying special financial assessments to the owners. This report is designed to analyze components of the Association for which it is responsible and to assess a useful expected life and useful remaining life to those components. The anticipated scheduled repair or replacement of each component and the anticipated expense for the activity are then analyzed in conjunction with the current capital reserves funding program for the community. This study should be considered as a full inspection since the entire site was inspected by an on-site inspection. The present amount of funds in the reserve account is based on information from Mark Reader, Ohio Equities and has not been audited by Criterium. Future project descriptions and funding amounts are based on information from the Association. Typically, an association has two broad cash requirements: the general operating reserves and the capital repair and replacement reserves. In this report, we will focus on those items falling under the capital repair and replacement reserve criteria. We have projected a capital repair and replacement reserve for 30 years. The first 10 years are the most reliable. Such a study should be updated every five years. This report is intended to be used as a tool to determine reserve fund allocation requirements for the community, to manage future Association obligations and to inform the Association of future financial needs in general. The report that follows has been prepared from the perspective of what an owner of this property would benefit from knowing. Some items, beyond those of immediate concern, may be discussed, because not including these issues could cause a distortion of the Association s situation. Therefore, the report should be read in its entirety in order to fully understand all of the information that has been obtained. New Albany Master Association. Page 1

4 2.0 EXECUTIVE SUMMARY The New Albany Master Association consists of asphalt covered walking paths, wood fences, ponds, barns, playgrounds (including a basketball court), gazebos, and signage. The development was started in approximately 1990 with construction over the years with space for additional construction. There are approximately 40,000 linear feet of wood fences with gates around the community. There are approximately 192,060 sf of walking path with wooden bridges through the Association. Repair, sealing and replacement of these walking paths and fencing are included in this study. There are two barns located around the community; these are generally in fair to poor condition. Based on our evaluation, the current level of funding of the reserve for this project is not adequate. A more detailed analysis of the reserve fund has been provided in Appendix A. There are several capital expenditures to be undertaken over the next 30 years. For your convenience, we have prepared the following summary of the condition of the major systems of the property. PROPERTY SUMMARY SYSTEM CONDITION ACTIVITY REQUIRED ANTICIPATED YEAR OF ACTIVITY SITE Asphalt G-F Repair, seal and replace Barns F Repair 2014 Fences G Paint and replace Lakes G Dredge Bridges G-F Update and repair BUILDING EXTERIOR Masonry G-F Repair BUILDING INTERIOR MECHANICAL Lights G-F Replace 2024 AMENITIES Playground equipment G Replace Basketball court G-P Replace OTHER Signs G-F Replace Reserve study G Update Table 2.1: Summary New Albany Master Association. Page 2

5 3.0 PURPOSE & SCOPE 3.1 Purpose The purpose of this study is to perform a reserve fund analysis and to determine a capital needs plan. It is intended to be used as a tool for the New Albany Master Association in determining the allocation requirements into the reserve fund in order to meet future anticipated capital expenditures for the Association to comply with Ohio Revised Code (ORC) This report forecasts obligations for the Association 30 years into the future. This study is not intended to provide a inventory of all defects. It should be noted that events might occur that could have an effect on the underlying component or system useful life assumptions used in this study. Likewise, inevitable market fluctuations can have an impact on component or system replacement and repair costs. Therefore, a study such as this should be updated from time to time, usually on a five-year cycle, in order to reflect the most accurate needs and obligations of the community. 3.2 Scope This study has been performed according to the scope as generally defined by the New Albany Master Association, Ohio Equities, Criterium Liszkay Engineers and the standards of the Master Associations Institute. The findings and recommendations are based on interviews with the community s management personnel and an investigation of the buildings and site. The guidelines used to determine which physical components within the Master are to be included in the component inventory are based on the following general criteria: 1. The component must be a common element, or otherwise noted to be the responsibility of the Association to replace. 2. The funding for replacement should be from one source only, not funded from another area of the budget or through a maintenance contract. 3. The cost of replacement should be high enough to make it financially unsound to fund it from the operating budget. 4. Components, such as day to day painting, which are considered deferred maintenance, are most appropriately funded from the Operating Budget instead of Reserves. 5. Components with a useful life expectancy exceeding 30 years are not included. Our reserve study analysis included evaluating the following association property: Site and Grounds: The Association consists of asphalt covered walking paths, wood fences, gazebos, furniture, bridges, ponds, some exterior lighting, playground equipment and signage. The site covers many areas that contain approximately 1,450 family homes. The development was started in approximately 1990 with New Albany Master Association. Page 3

6 New Albany Master Association. Page 4 construction over the years with space for additional construction. Private Streets, Sidewalks and Curbs: There are multiple entrances into the community. The asphalt roads through the Association are maintained by the city. There are wood fences with gates around the community. There are also asphalt covered walking paths with wooden bridges through the Association. Building Common Elements: There are four wooden gazebos with either wood shake or asphalt shingle covered roofs. Lighting fixtures are located around the association. Street and directional signage is located around the community. Brick walls and columns are located around the property, typically at the entrances to the various communities Amenities: There are two barns around the community and some playgrounds and a basketball court. Some ponds are also located around the community. This study estimates the funding levels required for maintaining the long term viability of the development. Our approach involves: 1. Examining association managed equipment, buildings and site facilities. 2. Predicting their remaining service life and approximating how frequently they will require repair or replacement for elements that have a predictable future life. 3. Estimating repair or replacement costs (in 2013 dollars) for each capital item and applying a 3.5% inflation rate. 4. Using data developed in Steps 1, 2 and 3 to project Capital Reserve balances for Years 1 through 30. The statements in this report are opinions about the present condition of the subject community. We did not remove any surface materials, perform any destructive testing, or move any furnishings. This study is not an exhaustive technical evaluation. Such an evaluation would entail a significantly larger scope than this effort. 3.3 Sources of Information Onsite inspections of the property occurred on the following dates: November 18, 2013 November 19, 2013 November 20, 2013 We based our cost estimates on some or all of the following:

7 R.S. Means Our data files on similar projects Information from the Association Local contractors For your reference, the following definitions may be helpful: Excellent: Component or system is in "as new" condition, requiring no rehabilitation and should perform in accordance with expected performance. Good: Component or system is sound and performing its function, although it may show signs of normal wear and tear. Some minor rehabilitation work may be required. Fair: Component or system falls into one or more of the following categories: a) Evidence of previous repairs not in compliance with commonly accepted practice, b) Workmanship not in compliance with commonly accepted standards, c) Component or system is obsolete, d) Component or system approaching end of expected performance. Repair or replacement is required to prevent further deterioration or to prolong expected life. Poor: Component or system has either failed or cannot be relied upon to continue performing its original function as a result of having exceeded its expected performance, excessive deferred maintenance or state of disrepair. Present condition could contribute to or cause the deterioration of other adjoining elements or systems. Repair or replacement is required. Adequate: A component or system is of a capacity that is defined as enough for what is required, sufficient, suitable and/or conforms to standard construction practices. All ratings are determined by comparison to other buildings of similar age and construction type. Further, some details of workmanship and materials will be examined more closely in higher quality buildings where such details typically become more relevant. All directions (left, right, rear, etc.), when used, are taken from the viewpoint of an observer standing in front of a building and facing it. Repair/Replacement Reserves - Non-annual maintenance items that will require significant expenditure over the life of the buildings. Included are items that will reach the end of their estimated useful life during the course of this forecast, or, in the opinion of the investigator, will require attention during that time. 4.0 DESCRIPTION The construction of New Albany Master Association started in approximately There are several entrances into the community. All the roads are constructed of asphalt with concrete curbs but these are maintained by the city, therefore not funds are included in the study for the New Albany Master Association. Page 5

8 upkeep of these roads. There are extensive asphalt covered walking paths with wooden fences and gates running along the walking paths and throughout other areas of the community. Both the fences and walking paths are the responsibility of the association. Some wooden bridges are incorporated into the walking path system. There are ponds and streams around the community. These funds are generally in good condition but silting is occurring. Signage and entrance enhancement in the form of brick walls are located throughout the community. 5.0 OBSERVATIONS The following key observations were made about the current condition of the common elements of the property. Site and Grounds There are extensive asphalt covered walking paths which are the responsibility of the association. An ongoing maintenance program has been developed which has maintained these paths. Funds for the ongoing periodic sealing, repair and eventual replacement are included in the study. There are wooden bridges incorporated into the walking path system. While most of the bridges are in good condition now, partial replacement of the wooden bridges is included in the study. The condition of the wooden fences and gates vary in condition from good to poor. There is maintenance program in place to replace the damaged wood and paint the entire fence network in place. Periodic painting and replacement of these fences and gates must be continued and funds for this work are included in the study. Building Exterior There are four gazebos and two barns located around the community. The gazebos are open sided and only the roofs and some wood trim will periodically need to be replaced. Because of their age, replacement of these structures can be expected during the period of the study. The barns are old and the wood siding is deteriorating. Funds for residing are included in the study. There are some brick walls and columns around the community. These are in good condition now periodic tuck pointing will be needed to maintain their condition. Mechanical New Albany Master Association. Page 6

9 Pole mounted lights are located around the site with some sitting atop some of the entrance walls. These lights appear in good condition but aging. Funds for the replacement of these fixtures are included in the study. Amenities There is a limited amount of wood furniture around the community. While generally in fair to good condition now, over the period of this study all of the furniture will need to be replaced. There are many street and directional signs around the community, which have previously been replaced but there is an ongoing program for the upkeep and replacement of the signs. There are playgrounds around the community each with wood timber framed equipment. The condition of the equipment varies from good to fair condition. Funds for the replacement of the equipment are included in the study. The is also a basketball court near the southern barn and playground. The court is in fair condition. The ponds are generally in good condition but portions of the larger ponds at the shallow locations are silting up. Funds for periodic dredging of the ponds are included in the study. 6.0 RESERVE FUND ANALYSIS Using software developed by Criterium Engineers and KPMG Peat Marwick, we have analyzed capital reserves draw-down for the projected capital expenditures to determine the amount needed. The following is a projected reserve fund analysis for non-annual items as discussed in the report. This projection takes into consideration a reasonable return on invested money and inflation. Please review this thoroughly and let us know of any changes that may be desired. New Albany Master Association. Page 7 The intent of this reserve fund projection is to help the Association develop a reserve fund to provide for anticipated repair or replacements of various system components during the next 30 years. The capital items listed are those that are typically the responsibility of the condominium association however no formal list was provided but information was provided by Ohio Equities. Association by-laws vary, and therefore, which components is the responsibility of the owners and which are the responsibilities of the Association can vary. The New Albany Master Association should confirm that the items listed should be financed by the reserve fund. No taxes have been accounted for in this study. This projection provides the following: An input sheet that defines all the criteria used for the financial

10 alternatives, including the assumed inflation rate and rate of return on deposited reserve funds. A table that lists anticipated replacement and/or repair items complete with estimated remaining life expectancies, projected costs of replacement and/or repair, a frequency in years of when these items require replacement and/or repair and a projection based on this frequency. A table and graph that represent end of year balances versus capital expenditures based on your current funding program and reserve balances, and alternatives to your current program. The provided graphs illustrate what effects the funding methods will have over the presented 30 year period versus the anticipated capital expenditures. Care should be taken in analyzing the graphs due to varying graphic scales that occur within each graph and between graphs. Note that based on our developed list of capital items and taking inflation into account the current funding is adequate. The Association should bear in mind that unanticipated expenditures can always arise and maintenance of a significant reserve fund balance can be viewed as a way to avoid special assessments. Current Reserve Funding Rate: Based on the information received from Ohio Equities $666,737 is expected to be in the reserve fund at the beginning of Currently no funds are budgeted for placement into the reserve fund. Based on the calculation in this study this is not adequate to be considered fully funded. In order to be considered fully funded the following one of the following funding alternatives should be implemented: Alternative 1: Increase the current monthly contribution to reserve fund to $15,000 in Continue to increase the funds contribution by $3,600 per month until 2025 when the contribution would be $54,600 per month. Maintain the rate through the balance of the 30 year period. Alternative 2: Increase the current monthly contribution to reserve fund in 2014 to $47,000. Continue to increase the funds contribution by 16% until 2023 when the contribution would be $57,044 per month. Maintain the rate through the balance of the 30 year period. Alternative 3: Increase the current monthly contribution to reserve fund to $47,000 in Maintain the rate through the balance of the 30 year period. Addendum A lists estimated capital reserves from 2014 through CONCLUSION The New Albany Master Association faculties are in good condition. With the ongoing existing maintenance programs for the communities largest assets, the walking paths and fences, the Association should be able to maintain this condition. However with age the other major capital New Albany Master Association. Page 8

11 assets, ponds, gazebos and lighting, will need to be replaced. The current funding rate does not appear to be adequate to fund the reserve fund over the next 30 years based on the assumptions about the line items contained in this report, including the 3.5% inflation rate. 8.0 LIMITATIONS The observations described in this study are valid on the dates of the investigation and have been made under the conditions noted in the report. We prepared this study for the exclusive use of The New Albany Master Association. Criterium Liszkay Engineers does not intend any other individual or party to rely upon this study without our express written consent. If another individual or party relies on this study, they shall indemnify and hold Criterium Liszkay Engineers harmless for any damages, losses or expenses they may incur as a result of its use. We did not remove surface materials, conduct any destructive or invasive testing, move furnishings or equipment or undertake any digging or excavation. Accordingly, we cannot comment on the condition of systems that we could not see, such as buried structures and utilities, nor are we responsible for conditions that could not be seen or were not within the scope of our services at the time of the investigation. We did not undertake to completely assess the stability of the buildings or the underlying foundation soil since this effort would require excavation and destructive testing. Likewise, this is not a seismic assessment. We did not investigate the following areas: Buried utilities or infrastructure Concealed structural members or systems Any individual components None of the individual utilities We do not render an opinion on uninvestigated portions of the community. We did not perform any computations or other engineering analysis as part of this evaluation, nor did we conduct a comprehensive code compliance investigation. This study is not to be considered a warranty of condition, and no warranty is implied. The appendices are an integral part of this report and must be included in any review. In our Reserve Fund Analysis, we have provided estimated costs. These costs are based on our general knowledge of building systems and the contracting and construction industry. When appropriate, we have relied on standard sources, such as Means Building Construction Cost Data, to develop estimates. However, for items that we have developed costs (e.g. structural repairs) no standard guide for developing such costs exists. Actual costs can vary significantly, based on the availability of qualified contractors to do the work, as well as many other variables. We cannot be responsible for the specific cost estimates provided. We have performed no design work as part of this study, nor have we New Albany Master Association. Page 9

12 obtained competitive quotations or estimates from contractors since this also is beyond the scope of the project. The actual cost to remedy deficiencies and deferred maintenance items that we have identified may vary significantly from estimates and competitive quotations from contractors. If you have any questions about this study or the reserve fund analysis, please feel free to contact us. Thank you for the opportunity to be of assistance to you. Respectfully submitted, Art Wickerham P.E. RS, CBIE Criterium-Liszkay Engineers New Albany Master Association. Page 10

13 Appendix A: RESERVE FUND PROJECTIONS

14 Reserve Study Worksheet General Information: 1 Organization: New Albany Master Community Association, Inc 2 Address: New Albany, OH 3 Number of Units 1 4 Age of Building (in years) 1 5a Study Period (in years) 30 5b Normal Fiscal Year starts: January 1, c Partial Fiscal Year starts: January 1, d Partial Year Length: 12 months 6 Site Inspection Date November 19, Reserve Funds at start $666,737 8 Rate of Return on invested Reserve Funds (%) 0.0% 9 Inflation Rate (%) 3.5% 10 Current Funding Levels Existing Funding Levels Total/Month Total Annual Per Unit/Month Per Unit/Year Reserve Fund Contribution... $0 $0 $0.00 $0.00 Years Out Total Annual Per Unit Planned Special Assessment... 0 $0 $0 Balance Computed... ($16,790,450) 11 Alternative Reserve Fund Contribution Alternative 1 Funding with Level Steps Total/Month Total Annual Per Unit/Month Per Unit/Year Monthly Amount, (First Year)... $15,000 $180,000 $15, $180, Monthly Amount, (Last Year)... $54,600 $655,200 $54, $655, Balance Required Final Year... $581,906 Special Assessments: Years Out Total/Year Per Unit First Assessment... 0 $0 $0 Second Assessment... 0 $0 $0 Balance Computed... $14,350 Alternative 2 Escalating Funding at 16% per Year Total/Month Total Annual Per Unit/Month Per Unit/Year Monthly Amount, (First Year)... $15,000 $180,000 $15, $180, Monthly Amount, (Last Year)... $57,044 $684,533 $57, $684, Balance Required Final Year... $581,906 Base Escalation % % Special Assessments: Years Out Total/Year Per Unit First Assessment... 0 $0 $0 Second Assessment... 0 $0 $0 Balance Computed... $738,075 Alternative 3 Level Funding without Special Assessments Total/Month Total Annual Per Unit/Month Per Unit/Year Monthly Amount, (First Year)... $47,000 $564,000 $47, $564, Monthly Amount, (Last Year)... $47,000 $564,000 $47, $564, Balance Required Final Year... $581,906 Base Escalation % % Special Assessments: Years Out Total/Year Per Unit First Assessment... 0 $0 $0 Second Assessment... 0 $0 $0 Balance Computed... $129,550 Criterium Engineers Page 1 of 15 12/28/2013

15 Itemized Worksheet Full Capital Item Reserve Beginning Frequency Remaining Reserve Funding Required Funding To Be Replaced Quantity Unit cost Requirement (*) Balance (yrs**) Life (yrs) Monthly Annual Balance Site Asphalt path sealing 64,000 sf $0.15 $9, ($14,947.86) 1 0 $0.00 $0.00 $9, Asphalt path repairs 2,000 sf $16.00 $32, ($49,826.21) 1 0 $0.00 $0.00 $32, Asphalt replacement 64,000 sf $2.00 $128, $1,395, ($13,199.31) ($158,391.73) ($896,000.00) Bridge major repairs/replacements 1 ea $7, $7, ($3,892.67) $94.94 $1, $2, Fence painting 39,000 lf $3.00 $117, ($182,177.08) 1 0 $0.00 $0.00 $117, Fence replacement 11,500 lf $13.00 $149, ($232,781.82) 1 0 $0.00 $0.00 $149, Wood gate replacement 5 ea $1, $5, ($5,839.01) 4 1 $ $10, $3, Gazebo replacement 1 ea $15, $15, $ $ $1, $0.00 Dredging and improvements to the large ponds 2 ls $75, $150, ($155,706.91) 15 5 $5, $61, $100, Barns repairs 2 ea $20, $40, $0.00 $0.00 $0.00 $0.00 Building Exterior Masonry (brick and stone) replacement 1 ls $2, $2, ($3,892.67) 6 0 $0.00 $0.00 $2, Building Interior Mechanical Bollard light replacement 21 ea $ $15, ($14,714.30) $ $3, $9, Entrance light replacements 8 ea $1, $8, ($7,473.93) $ $1, $4, Amenities Playground equipment replacement 7 ea $8, $56, ($67,265.38) 35 8 $1, $15, $43, Playground improvements 1 ls $20, $20, $31, ($92.84) ($1,114.14) ($20,000.00) Basketball court 1 ls $15, $15, ($21,020.43) 20 2 $1, $18, $13, Other Community sign replacement 1 ls $4, $4, $ $41.67 $ $0.00 Update reserve study 1 ls $2, $2, $ $33.33 $ $0.00 Total Over Term $12,668, Total Over Term with Inflation $17,457, * Costs are typically 10%± ** Reserve study is based on a 30 year projection of non-annual maintenance Totals $776, $666, ($3,831.17) ($45,974.00) ($428,200.00) Criterium Engineers Page 2 of 15 12/28/2013

16 Itemized Graph Categories Totals Site $12,444,000 Building Exterior $12,500 Building Interior $0 Mechanical $23,750 Amenities $166,000 Other $22,000 Total $12,668,250 Itemized Graph Site, $12,444,000 Site Building Exterior Building Interior Mechanical Amenities Other Other, $22,000 Amenities, $166,000 Mechanical, $23,750 Building Interior, $0 Building Exterior, $12,500 Criterium Engineers Page 3 of 15 12/28/2013

17 Itemized Funding Monthly Annual Balance Reserve Reserve Full Simple Reserve Beginning Requiring Funding Funding Funding Percent Categories Requirement Balance Funding Required Required Balance Funded Site $12,444,000 $749,962 $11,694,038 ($6,981) ($83,772) ($481,650) Building Exterior $12,500 ($3,893) $16,393 $0 $0 $2,500 Building Interior $0 $0 $0 $0 $0 $0 Mechanical $23,750 ($22,188) $45,938 $383 $4,594 $14,250 Amenities $166,000 ($57,144) $223,144 $2,692 $32,304 $36,700 Other $22,000 $0 $22,000 $75 $900 $0 $666,737 Totals $12,668,250 $666,737 $12,001,513 ($3,831) ($45,974) ($428,200) 3.8% Criterium Engineers Page 4 of 15 12/28/2013

18 Annual Expense By Year Year: Year Number: Site Asphalt path sealing 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 Asphalt path repairs 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 Asphalt replacement , , , Bridge major repairs/replacements , Fence painting 117, , , , , , , , , , , , , , , ,000 Fence replacement 149, , , , , , , , , , , , , , , ,500 Wood gate replacement 0 5, , , , Gazebo replacement , Dredging and improvements to the large ponds , Barns repairs 40, Building Exterior Masonry (brick and stone) replacement 2, , , Building Interior Mechanical Bollard light replacement , Entrance light replacements , Amenities Playground equipment replacement , Playground improvements , ,000 Basketball court , Other Community sign replacement , Update reserve study , , ,000 Total Costs 350, , , , , , , , , , , , , , , ,100 Total Costs Adjusted For 3.5% Inflation 350, , , , , , , , , , , , , , , ,033 Criterium Engineers Page 5 of 15 12/28/2013

19 Annual Expense By Year Year: Year Number: Site Asphalt path sealing Asphalt path repairs Asphalt replacement Bridge major repairs/replacements Fence painting Fence replacement Wood gate replacement Gazebo replacement Dredging and improvements to the large ponds Barns repairs Building Exterior Masonry (brick and stone) replacement Building Interior Mechanical Bollard light replacement Entrance light replacements Amenities Playground equipment replacement Playground improvements Basketball court Other Community sign replacement Update reserve study Total Costs Total Costs Adjusted For 3.5% Inflation ,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32,000 32, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Criterium Engineers Page 6 of 15 12/28/2013

20 Existing Funding Levels Beginning Year Reserve Fund Fee Special Investment Capital Ending Year Number Balance Revenue Assessments Earnings Expenditures Balance $666,737 $0 $0 $0 $350,600 $316, $316,137 $0 $0 $0 $324,059 ($7,922) ($7,922) $0 $0 $0 $346,113 ($354,034) ($354,034) $0 $0 $0 $341,596 ($695,630) ($695,630) $0 $0 $0 $353,552 ($1,049,182) ($1,049,182) $0 $0 $0 $552,393 ($1,601,575) ($1,601,575) $0 $0 $0 $381,807 ($1,983,382) ($1,983,382) $0 $0 $0 $391,989 ($2,375,371) ($2,375,371) $0 $0 $0 $653,269 ($3,028,640) ($3,028,640) $0 $0 $0 $601,174 ($3,629,814) ($3,629,814) $0 $0 $0 $711,435 ($4,341,249) ($4,341,249) $0 $0 $0 $449,817 ($4,791,066) ($4,791,066) $0 $0 $0 $469,338 ($5,260,404) ($5,260,404) $0 $0 $0 $489,675 ($5,750,079) ($5,750,079) $0 $0 $0 $498,720 ($6,248,798) ($6,248,798) $0 $0 $0 $553,033 ($6,801,831) ($6,801,831) $0 $0 $0 $541,177 ($7,343,008) ($7,343,008) $0 $0 $0 $561,913 ($7,904,921) ($7,904,921) $0 $0 $0 $576,936 ($8,481,857) ($8,481,857) $0 $0 $0 $592,323 ($9,074,180) ($9,074,180) $0 $0 $0 $985,144 ($10,059,324) ($10,059,324) $0 $0 $0 $644,808 ($10,704,132) ($10,704,132) $0 $0 $0 $688,691 ($11,392,824) ($11,392,824) $0 $0 $0 $679,704 ($12,072,528) ($12,072,528) $0 $0 $0 $718,335 ($12,790,863) ($12,790,863) $0 $0 $0 $809,648 ($13,600,510) ($13,600,510) $0 $0 $0 $753,600 ($14,354,110) ($14,354,110) $0 $0 $0 $779,976 ($15,134,086) ($15,134,086) $0 $0 $0 $807,275 ($15,941,361) ($15,941,361) $0 $0 $0 $849,089 ($16,790,450) Criterium Engineers $666,737 $0 Page 7 of 15 $0 $666,737 12/28/2013

21 Existing Funding Levels Beginning Balance as of start of year beginning Jan 2014: $666,737 CONTRIBUTIONS SPECIAL ASSESSMENTS AMOUNT Totals $0.00 per year Per Year $0 Per Unit $0 $0.00 per unit per year $0.00 per month $0.00 per unit per month Projected Annual Funding and Expenditures: Year: Year Number: End of Year Reserve Fund Balance 316,137 (7,922) (354,034) (695,630) (1,049,182) (1,601,575) (1,983,382) (2,375,371) (3,028,640) (3,629,814) (4,341,249) (4,791,066) (5,260,404) (5,750,079) (6,248,798) Capital Expenditures: 350, , , , , , , , , , , , , , ,720 Total Revenue (all sources) Year: Year Number: End of Year Reserve Fund Balance (6,801,831) (7,343,008) (7,904,921) (8,481,857) (9,074,180) (10,059,324) (10,704,132) (11,392,824) (12,072,528) (12,790,863) (13,600,510) (14,354,110) (15,134,086) (15,941,361) (16,790,450) Capital Expenditures: 553, , , , , , , , , , , , , , ,089 Total Revenue (all sources) (6,248,798) (6,801,831) (7,343,008) (7,904,921) (8,481,857) (9,074,180) (10,059,324) (10,704,132) (11,392,824) (12,072,528) (12,790,863) (13,600,510) (14,354,110) (15,134,086) (15,941,361) Existing Funding Levels 2,000, (2,000,000) (4,000,000) (6,000,000) Dollars (8,000,000) (10,000,000) (12,000,000) (14,000,000) (16,000,000) (18,000,000) Funding Years Criterium Engineers Page 8 of 15 12/28/2013

22 Alternative 1: Funding with Level Steps Beginning Year Reserve Fund Fee Special Special Investment Capital Ending Year Number Balance Revenue Assessments 1 Assessments 2 Earnings Expenditures Balance $666,737 $180,000 $0 $0 $0 $350,600 $496, $496,137 $223,200 $0 $0 $0 $324,059 $395, $395,278 $266,400 $0 $0 $0 $346,113 $315, $315,566 $309,600 $0 $0 $0 $341,596 $283, $283,570 $352,800 $0 $0 $0 $353,552 $282, $282,818 $396,000 $0 $0 $0 $552,393 $126, $126,425 $439,200 $0 $0 $0 $381,807 $183, $183,818 $482,400 $0 $0 $0 $391,989 $274, $274,229 $525,600 $0 $0 $0 $653,269 $146, $146,560 $568,800 $0 $0 $0 $601,174 $114, $114,186 $612,000 $0 $0 $0 $711,435 $14, $14,751 $655,200 $0 $0 $0 $449,817 $220, $220,134 $655,200 $0 $0 $0 $469,338 $405, $405,996 $655,200 $0 $0 $0 $489,675 $571, $571,521 $655,200 $0 $0 $0 $498,720 $728, $728,002 $655,200 $0 $0 $0 $553,033 $830, $830,169 $655,200 $0 $0 $0 $541,177 $944, $944,192 $655,200 $0 $0 $0 $561,913 $1,037, $1,037,479 $655,200 $0 $0 $0 $576,936 $1,115, $1,115,743 $655,200 $0 $0 $0 $592,323 $1,178, $1,178,620 $655,200 $0 $0 $0 $985,144 $848, $848,676 $655,200 $0 $0 $0 $644,808 $859, $859,068 $655,200 $0 $0 $0 $688,691 $825, $825,576 $655,200 $0 $0 $0 $679,704 $801, $801,072 $655,200 $0 $0 $0 $718,335 $737, $737,937 $655,200 $0 $0 $0 $809,648 $583, $583,490 $655,200 $0 $0 $0 $753,600 $485, $485,090 $655,200 $0 $0 $0 $779,976 $360, $360,314 $655,200 $0 $0 $0 $807,275 $208, $208,239 $655,200 $0 $0 $0 $849,089 $14,350 Criterium Engineers Page 9 of 15 12/28/2013

23 Alternative 1: Funding with Level Steps Beginning Balance as of start of year beginning Jan 2014: $666,737 CONTRIBUTIONS SPECIAL ASSESSMENTS SETTINGS (analyzed by unit/month) FIRST YR LAST YR Totals Starting amount ($): $180, $655, per year First Per Year $0 Per Unit $0 Increment by ($): 3600 $180, $655, per unit per year Second Per Year $0 Per Unit $0 Every 1 year $15, $54, per month Frequency: 11 time $15, $54, per unit per month Projected Annual Funding and Expenditures: Year: Year Number: End of Year Reserve Fund Balance 496, , , , , , , , , ,186 14, , , , ,002 Capital Expenditures: 350, , , , , , , , , , , , , , ,720 Total Revenue (all sources) 180, , , , , , , , , , , , , , ,200 Year: Year Number: End of Year Reserve Fund Balance 830, ,192 1,037,479 1,115,743 1,178, , , , , , , , , ,239 14,350 Capital Expenditures: 553, , , , , , , , , , , , , , ,089 Total Revenue (all sources) 655, , , , , , , , , , , , , , ,200 Alternative 1: Funding with Level Steps 1,400,000 1,200,000 1,000, ,000 Dollars 600, , , Funding Years Criterium Engineers Page 10 of 15 12/28/2013

24 Alternative 2: Escalating Funding at 16% per Year Beginning Year Reserve Fund Fee Special Special Investment Capital Ending Year Number Balance Revenue Assessments 1 Assessments 2 Earnings Expenditures Balance $666,737 $180,000 $0 $0 $0 $350,600 $496, $496,137 $208,800 $0 $0 $0 $324,059 $380, $380,878 $242,208 $0 $0 $0 $346,113 $276, $276,974 $280,961 $0 $0 $0 $341,596 $216, $216,339 $325,915 $0 $0 $0 $353,552 $188, $188,702 $378,061 $0 $0 $0 $552,393 $14, $14,371 $438,551 $0 $0 $0 $381,807 $71, $71,115 $508,720 $0 $0 $0 $391,989 $187, $187,846 $590,115 $0 $0 $0 $653,269 $124, $124,691 $684,533 $0 $0 $0 $601,174 $208, $208,050 $684,533 $0 $0 $0 $711,435 $181, $181,148 $684,533 $0 $0 $0 $449,817 $415, $415,864 $684,533 $0 $0 $0 $469,338 $631, $631,059 $684,533 $0 $0 $0 $489,675 $825, $825,918 $684,533 $0 $0 $0 $498,720 $1,011, $1,011,731 $684,533 $0 $0 $0 $553,033 $1,143, $1,143,232 $684,533 $0 $0 $0 $541,177 $1,286, $1,286,587 $684,533 $0 $0 $0 $561,913 $1,409, $1,409,208 $684,533 $0 $0 $0 $576,936 $1,516, $1,516,804 $684,533 $0 $0 $0 $592,323 $1,609, $1,609,015 $684,533 $0 $0 $0 $985,144 $1,308, $1,308,403 $684,533 $0 $0 $0 $644,808 $1,348, $1,348,128 $684,533 $0 $0 $0 $688,691 $1,343, $1,343,970 $684,533 $0 $0 $0 $679,704 $1,348, $1,348,799 $684,533 $0 $0 $0 $718,335 $1,314, $1,314,997 $684,533 $0 $0 $0 $809,648 $1,189, $1,189,882 $684,533 $0 $0 $0 $753,600 $1,120, $1,120,816 $684,533 $0 $0 $0 $779,976 $1,025, $1,025,373 $684,533 $0 $0 $0 $807,275 $902, $902,631 $684,533 $0 $0 $0 $849,089 $738,075 Criterium Engineers Page 11 of 15 12/28/2013

25 Alternative 2: Escalating Funding at 16% per Year Beginning Balance as of start of year beginning Jan 2014: $666,737 CONTRIBUTIONS SPECIAL ASSESSMENTS SETTINGS (analyzed by unit/month) FIRST YR LAST YR Totals Starting amount ($): $180, $684, per year First Per Year $0 Per Unit $0 Increment by (%): 16 $180, $684, per unit per year Second Per Year $0 Per Unit $0 Step (%): $15, $57, per month Every 1 year $15, $57, per unit per month Frequency: 9 time Projected Annual Funding and Expenditures: Year: Year Number: End of Year Reserve Fund Balance 496, , , , ,702 14,371 71, , , , , , , ,918 1,011,731 Capital Expenditures: 350, , , , , , , , , , , , , , ,720 Total Revenue (all sources) 180, , , , , , , , , , , , , , ,533 Year: Year Number: End of Year Reserve Fund Balance 1,143,232 1,286,587 1,409,208 1,516,804 1,609,015 1,308,403 1,348,128 1,343,970 1,348,799 1,314,997 1,189,882 1,120,816 1,025, , ,075 Capital Expenditures: 553, , , , , , , , , , , , , , ,089 Total Revenue (all sources) 684, , , , , , , , , , , , , , ,533 Alternative 2: Escalating Funding at 16% per Year 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Dollars 800, , , , Funding Years Criterium Engineers Page 12 of 15 12/28/2013

26 Alternative 3: Level Funding without Special Assessments Beginning Year Reserve Fund Fee Special Special Investment Capital Ending Year Number Balance Revenue Assessments 1 Assessments 2 Earnings Expenditures Balance $666,737 $564,000 $0 $0 $0 $350,600 $880, $880,137 $564,000 $0 $0 $0 $324,059 $1,120, $1,120,078 $564,000 $0 $0 $0 $346,113 $1,337, $1,337,966 $564,000 $0 $0 $0 $341,596 $1,560, $1,560,370 $564,000 $0 $0 $0 $353,552 $1,770, $1,770,818 $564,000 $0 $0 $0 $552,393 $1,782, $1,782,425 $564,000 $0 $0 $0 $381,807 $1,964, $1,964,618 $564,000 $0 $0 $0 $391,989 $2,136, $2,136,629 $564,000 $0 $0 $0 $653,269 $2,047, $2,047,360 $564,000 $0 $0 $0 $601,174 $2,010, $2,010,186 $564,000 $0 $0 $0 $711,435 $1,862, $1,862,751 $564,000 $0 $0 $0 $449,817 $1,976, $1,976,934 $564,000 $0 $0 $0 $469,338 $2,071, $2,071,596 $564,000 $0 $0 $0 $489,675 $2,145, $2,145,921 $564,000 $0 $0 $0 $498,720 $2,211, $2,211,202 $564,000 $0 $0 $0 $553,033 $2,222, $2,222,169 $564,000 $0 $0 $0 $541,177 $2,244, $2,244,992 $564,000 $0 $0 $0 $561,913 $2,247, $2,247,079 $564,000 $0 $0 $0 $576,936 $2,234, $2,234,143 $564,000 $0 $0 $0 $592,323 $2,205, $2,205,820 $564,000 $0 $0 $0 $985,144 $1,784, $1,784,676 $564,000 $0 $0 $0 $644,808 $1,703, $1,703,868 $564,000 $0 $0 $0 $688,691 $1,579, $1,579,176 $564,000 $0 $0 $0 $679,704 $1,463, $1,463,472 $564,000 $0 $0 $0 $718,335 $1,309, $1,309,137 $564,000 $0 $0 $0 $809,648 $1,063, $1,063,490 $564,000 $0 $0 $0 $753,600 $873, $873,890 $564,000 $0 $0 $0 $779,976 $657, $657,914 $564,000 $0 $0 $0 $807,275 $414, $414,639 $564,000 $0 $0 $0 $849,089 $129,550 Criterium Engineers Page 13 of 15 12/28/2013

27 Alternative 3: Level Funding without Special Assessments Beginning Balance as of start of year beginning Jan 2014: $666,737 CONTRIBUTIONS SPECIAL ASSESSMENTS SETTINGS (analyzed by unit/month) FIRST YR LAST YR Totals Starting amount ($): $564, $564, per year First Per Year $0 Per Unit $0 Increment by (%): 0 $564, $564, per unit per year Second Per Year $0 Per Unit $0 Step (%): 0 $47, $47, per month Every 3 year $47, $47, per unit per month Frequency: 3 time Projected Annual Funding and Expenditures: Year: Year Number: End of Year Reserve Fund Balance 880,137 1,120,078 1,337,966 1,560,370 1,770,818 1,782,425 1,964,618 2,136,629 2,047,360 2,010,186 1,862,751 1,976,934 2,071,596 2,145,921 2,211,202 Capital Expenditures: 350, , , , , , , , , , , , , , ,720 Total Revenue (all sources) 564, , , , , , , , , , , , , , ,000 Year: Year Number: End of Year Reserve Fund Balance 2,222,169 2,244,992 2,247,079 2,234,143 2,205,820 1,784,676 1,703,868 1,579,176 1,463,472 1,309,137 1,063, , , , ,550 Capital Expenditures: 553, , , , , , , , , , , , , , ,089 Total Revenue (all sources) 564, , , , , , , , , , , , , , ,000 Alternative 3: Level Funding without Special Assessments 2,500,000 2,000,000 1,500,000 Dollars 1,000, , Funding Years Criterium Engineers Page 14 of 15 12/28/2013

28 Summary of Reserve Balances Year Yearly Year Number Expenditures Alt. 1 Alt. 2 Alt $350,600 $496,137 $496,137 $880, $324,059 $395,278 $380,878 $1,120, $346,113 $315,566 $276,974 $1,337, $341,596 $283,570 $216,339 $1,560, $353,552 $282,818 $188,702 $1,770, $552,393 $126,425 $14,371 $1,782, $381,807 $183,818 $71,115 $1,964, $391,989 $274,229 $187,846 $2,136, $653,269 $146,560 $124,691 $2,047, $601,174 $114,186 $208,050 $2,010, $711,435 $14,751 $181,148 $1,862, $449,817 $220,134 $415,864 $1,976, $469,338 $405,996 $631,059 $2,071, $489,675 $571,521 $825,918 $2,145, $498,720 $728,002 $1,011,731 $2,211, $553,033 $830,169 $1,143,232 $2,222, $541,177 $944,192 $1,286,587 $2,244, $561,913 $1,037,479 $1,409,208 $2,247, $576,936 $1,115,743 $1,516,804 $2,234, $592,323 $1,178,620 $1,609,015 $2,205, $985,144 $848,676 $1,308,403 $1,784, $644,808 $859,068 $1,348,128 $1,703, $688,691 $825,576 $1,343,970 $1,579, $679,704 $801,072 $1,348,799 $1,463, $718,335 $737,937 $1,314,997 $1,309, $809,648 $583,490 $1,189,882 $1,063, $753,600 $485,090 $1,120,816 $873, $779,976 $360,314 $1,025,373 $657, $807,275 $208,239 $902,631 $414, $849,089 $14,350 $738,075 $129,550 Summary of Reserve Balances $2,500,000 $2,000,000 Dollars $1,500,000 $1,000,000 $500,000 $ Funding Years Alt. 1 Alt. 2 Alt. 3 Criterium Engineers Page 15 of 15 12/28/2013

29 Appendix B: PROJECT PHOTOGRAPHS

30 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 One of the entrances to the Association. 1 General view of the Association fences. 2

31 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Sections of the fences that need to be painted. 3 View of one of the several fences. 4

32 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 General view of one of the barns. 5 Some of the wood siding has deteriorated. 6

33 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 The bottom of a portion of the siding. 7 Other portions of the wood siding have rotted. 8

34 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 General view of the second barn. 9 Portions of the plywood siding are deteriorated. 10

35 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 With the siding run into the ground premature rotting of the wood will occur. 11 Portions of the soffet are damaged. 12

36 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Portions of the asphalt walks are cracking. 13 Cracks parallel to the edge of the walk generally indicate failure of the sub base. 14

37 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Section of the path that was trenched and poorly repaired. 15 View of one of the playgrounds. 16

38 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Close up of one of the playgrounds. 17 Erosion has occurred along one section of the pond. 18

39 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Erosion has occurred along one section of the pond. 19 Example of one of the signs around the community. 20

40 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Example of one of the street signs in the community. 21 Portions of the fences need to be replaced. 22

41 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Many sections of the fence need to be repaired. 23 Area around a manhole now represents a trip hazard. 24

42 Location: Photo Taken by: Date: New Albany Master Assoc Wickerham, P.E. November 2013 Portions of the ponds need to be dredged. 25 Portions of the ponds need to be dredged. 26