Aspens Townhomes Arizona & Sable Blvd. Aurora, CO

Transcription

1 Aspens Townhomes Arizona & Sable Blvd. Aurora, CO Level 1, Platinum Reserve Analysis Report Period 01/01/19-12/31/19 Client Reference Number Property Type Townhomes FINAL Version Fiscal Year End December 31 Number of units- 236 Date of Property Observation - July 10, 2018 Project Manager - Main Contact Person - Justin Huggins Mark Dougal, CAM, CMCA, AMS Report was prepared on - Monday, August 13, 2018 P.O. Box 1762 Castle Rock, CO Phone (303)

2 Table of Contents SECTION 1: SECTION 2: SECTION 3: Introduction to Reserve Analysis... page 1 General Information and Answers to FAQ s... page 2-3 Summary of Reserve Analysis... page 4 Physical Analysis (Photographic)... page 1-79 Financial Analysis a) Funding Summary... page 1 b) Percent Funded Graph... page 2 c) Asset Inventory List... page 3-4 d) Significant Components Table... page 5-6 e) Significant Components Graph... page 7 f) Yearly Summary Table... page 8 g) Yearly Contributions Graph... page 9 h) Component Funding Information... page i) Yearly Cash Flow Table... page 12 j) Projected Expenditures Year by Year Graph... page 13 k) Projected Expenditures Year by Year... page SECTION 4: Glossary of Terms and Definitions... page 1-2

3 Introduction to the Reserve Analysis The elected officials of this association made a wise decision to invest in a Reserve Analysis to get a better understanding of the status of the Reserve funds. This Analysis will be a valuable tool to assist the Board of Directors in making the decision to which the dues are derived. Typically, the Reserve contribution makes up 15% - 40% of the association s total budget. Therefore, Reserves is considered to be a significant part of the overall monthly association payment. Every association conducts its business within a budget. There are typically two main parts to this budget, Operating and Reserves. The Operating budget includes all expenses that are fixed on an annual basis. These would include management fees, maintenance fees, utilities, etc. The Reserves is primarily made up of Capital Replacement items such as asphalt, roofing, fencing, mechanical equipment, etc., that do not normally occur on an annual basis. The Reserve Analysis is also broken down into two different parts, the Physical Analysis and the Financial Analysis. The Physical Analysis is information regarding the physical status and replacement cost of major common area components that the association is responsible to maintain. It is important to understand that while the Component Inventory will remain relatively stable from year to year, the Condition Assessment and Life/Valuation Estimates will most likely vary from year to year. You can find this information in the Asset Inventory Section (Section 2) of this Reserve Analysis. The Financial Analysis Section is the evaluation of the association s Reserve balance, income, and expenses. This is made up of a finding of the clients current Reserve Fund Status (measured as Percent Funded) and a recommendation for an appropriate Reserve Allocation rate (also known as the Funding Plan). You can find this information in Section 3 of this Reserve Analysis. The purpose of this Reserve Analysis is to provide an educated estimate as to what the Reserve Allocation needs to be. The detailed schedules will serve as an advanced warning that major projects will need to be addressed in the future. This will allow the Board of Directors to have ample timing to obtain competitive estimates and bids that will result in cost savings to the individual homeowners. This will also ensure the physical well being of the property and ultimately enhance each owner s investment, while limiting the possibility of unexpected major projects that may lead to Special Assessments. It is important for the client, homeowners, and potential future homeowners to understand that the information contained in this analysis is based on estimates and assumptions gathered from various sources. Estimated life expectancies and cycles are based upon conditions that were readily visible and accessible at time of the observation. No destructive or intrusive methods (such as entering the walls to inspect the condition of electrical wiring, plumbing lines, and telephone wires) were performed. In addition, environmental hazards (such as lead paint, asbestos, radon, etc.), construction defects, and acts of nature have not been investigated in the preparation of this report. If problem areas were revealed, a reasonable effort has been made to include these items within the report. While every effort has been made to ensure accurate results, this report reflects the judgment of Aspen Reserve Specialties and should not be construed as a guarantee or assurance of predicting future events. 1

4 General Information and Answers to Frequently Asked Questions Why is it important to perform a Reserve Study? As previously mentioned, the Reserve allocation makes up a significant portion of the total monthly dues. This report provides the essential information that is needed to guide the Board of Directors in establishing the budget in order to run the daily operations of your association. It is suggested that a third party professionally prepare a Reserve Study since there is no vested interest in the property. Also, a professional knows what to look for and how to properly develop an accurate and reliable component list. Now that we have it, what do we do with it? Hopefully, you will not look at this report and think it is too cumbersome to understand. Our intention is to make this Reserve Analysis very easy to read and understand. Please take the time to review it carefully and make sure the main ingredients (asset information) are complete and accurate. If there are any inaccuracies, please inform us immediately so we may revise the report. Once you feel the report is an accurate tool to work from, use it to help establish your budget for the upcoming fiscal year. The Reserve allocation makes up a significant portion of the total monthly dues and this report should help you determine the correct amount of money to go into the Reserve fund. Additionally, the Reserve Study should act as a guide to obtain proposals in advance of pending normal maintenance and replacement projects. This will give you an opportunity to shop around for the best price available. The Reserve Study should be readily available for Real Estate agents, brokerage firms, and lending institutions for potential future homeowners. As the importance of Reserves becomes more of a household term, people are requesting homeowners associations to reveal the strength of the Reserve fund prior to purchasing a condominium or townhome. How often do we update or review it? Unfortunately, there is a misconception that these reports are good for an extended period of time since the report has projections for the next 30 years. Just like any major line item in the budget, the Reserve Analysis should be reviewed each year before the budget is established. Invariably, some assumptions have to be made during the compilation of this analysis. Anticipated events may not materialize and unpredictable circumstances could occur. Aging rates and repair/replacement costs will vary from causes that are unforeseen. Earned interest rates may vary from year to year. These variations could alter the content of the Reserve Analysis. Therefore, this analysis should be reviewed annually, and a property observation should be conducted at least once every three years. Is it the law to have a Reserve Study conducted? The Government requires reserve analyses in approximately 20 states. The State of Colorado currently requires all associations to adopt a Reserve policy, but does not currently enforce a Reserve Study be completed. Despite enacting this current law, the chances are also very good the documents of the association require the association to have a Reserve fund established. This may not mean a Reserve Analysis is required, but how are you going to know there are enough funds in the account if you don t have the proper information? Hypothetically, some associations look at the Reserve fund and think $150,000 is a lot of money and they are in good shape. What they don t know is a major project will need to be replaced within 5 years, and the cost of the project is going to exceed $175,000. So while $150,000 sounds like a lot of money, in reality it won t even cover the cost of the project, let alone all the other amenities the association is responsible to maintain. 2

5 What makes an asset a Reserve item versus an Operating item? A Reserve asset is an item that is the responsibility of the association to maintain, has a limited Useful Life, predictable Remaining Useful Life expectancies, typically occurs on a cyclical basis that exceeds 1 year, and costs above a minimum threshold cost. An operating expense is typically a fixed expense that occurs on an annual basis. For instance, minor repairs to a roof for damage caused by high winds or other weather elements would be considered an operating expense. However, if the entire roof needs to be replaced because it has reached the end of its life expectancy, then the replacement would be considered a Reserve expense. The GREY area of maintenance items that are often seen in a Reserve Study One of the most popular questions revolves around major maintenance items, such as painting the buildings or seal coating the asphalt. You may hear from your accountant that since painting or seal coating is not replacing a capital item, then it cannot be considered a Reserve issue. However, it is the opinion of several major Reserve Study providers that these items are considered to be major expenses that occur on a cyclical basis. Therefore, it makes it very difficult to ignore a major expense that meets the criteria to be considered a Reserve component. Once explained in this context, many accountants tend to agree and will include any expenses, such as these examples, as a Reserve component. The Property Observation The Property Observation was conducted following a review of the documents that were established by the developer identifying all common area assets. In some cases, the Board of Directors at some point may have revised the documents. In either case, the most current set of documents was reviewed prior to inspecting the property. In addition, common area assets may have been reported to Aspen Reserve Specialties by the client, or by other parties. Estimated life expectancies and life cycles are based upon conditions that were readily accessible and visible at the time of the observation. We did not destroy any landscape work, building walls, or perform any methods of intrusive investigation during the observation. In these cases, information may have been obtained by contacting the contractor or vendor that has worked on the property. The Reserve Fund Analysis We projected the starting balance from taking the most recent balance statement, adding expected Reserve contributions for the rest of the year, and subtracting any pending projects for the rest of the year. We compared this number to the ideal Reserve Balance and arrived at the Percent funded level. Measures of strength are as follows: 0% - 30% Funded Is considered to be a weak financial position. Associations that fall into this category are subject to Special Assessments and deferred maintenance, which could lead to lower property values. If the association is in this position, actions should be taken to improve the financial strength of the Reserve Fund. 31% - 69% Funded The majority of associations are considered to be in this fair financial position. While this doesn t represent financial strength and stability, the likelihood of Special Assessments and deferred maintenance is diminished. Effort should be taken to continue strengthening the financial position of the Reserve fund. 70% - 99% Funded This indicates financial strength of a Reserve fund and every attempt to maintain this level should be a goal of the association. 100% Funded This is the ideal amount of Reserve funding. This means that the association has the exact amount of funds in the Reserve account that should be at any given time. 3

6 Summary of Aspens Townhomes Assoc.# Projected Starting Balance as of January 1, $461,729 Ideal Reserve Balance as of January 1, $3,601,082 Percent Funded as of January 1, % Recommended Reserve Allocation (per month) - $34,400 Minimum Reserve Allocation (per month) - $28,000 Recommended Special Assessment ( ) - $590,000 ($2,500 per unit) Information to complete this Reserve Analysis was gathered during a property observation of the common area elements on July 10, In addition, we obtained information by contacting local vendors and contractors, as well as communicating with the property representative. To the best of our knowledge, the conclusions and suggestions of this report are considered reliable and accurate insofar as the information obtained from these sources. This property contains 236 units within 59 buildings that were constructed in the early to mid 1970s. The common area responsibilities of the association include building exteriors, roofs and gutters, asphalt alleyways, common sidewalks, a tennis court, a pool, landscaping, and an extensive irrigation system. Please refer to the Projected Reserve Expenditures table of the Financial Analysis section for a list of when components are scheduled to be addressed. In comparing the projected balance of $461,729 versus the ideal Reserve Balance of $3,601,082, we find the association Reserve fund to be in a poor financial position at this point in time (approximately 13% funded of ideal). As a result, in order to address the major projects over the short term, we find no alternative but to recommend a multi-year Special Assessment of 590,000 ($2,500 per unit) each year from 2019 through As a result of the information contained in this report, we find the current budgeted Reserve allocation ($17,565 per month) to be less than adequate in improving the strength of the Reserve fund to prepare for future projects. Therefore, we are recommending an increase of the Reserve contribution to $34,400 (representing an increase of $71.33 on average per unit) per month effective immediately, followed by nominal annual increases of 4.50% thereafter to help offset the effects of inflation. By following the recommendation, the plan will maintain the Reserve account in a positive manner, while gradually increasing to a fully funded position within the thirty-year period. In the percent Funded graph, you will see we have also provided a minimum Reserve contribution of $28,000 per month. If the Reserve contribution falls below this rate, then the Reserve fund will fall into a situation where Special Assessments, deferred maintenance, and lower property values are possible at some point in the future. The minimum Reserve allocation follows the threshold theory of Reserve funding where the percent funded status is not allowed to dip below 30% funded at any point during the thirty-year period. This was provided for one purpose only, to show the association how small the difference is between the two scenarios (19% in this case) and how it would not make financial sense to contribute less money to the Reserve fund to only stay above a certain threshold. As you can see, the difference between the two scenarios is considered to be minimal, and based on the risk, we strongly suggest the recommended Reserve Allocation is followed. 4

7 Comp #: 102 Flat Roof - PVC - Replace - It was reported that these roofs have leaks and should be replaced. - PVC roofs have a typical life expectancy of years. - We would recommend replacing these roofs with a TPO or EPDM flat roof. - Remaining life is based on the reported conditions of the roofs. Flat sections of roofs Approx. 51 Squares Life Expectancy: 20 Remaining Life: 0 Best Cost: $51,000 $1000/square; Estimate to replace Dillon: Worst Cost: $61,200 $1200/square; Higher estimate for better materials Source of Information: Research with contractor Page 1 of 79

8 Comp #: 104 TPO Flat Roof - Replace - These roofs were in good condition at the time of the site observation. - This type of roof has a year life expectancy as long as proper maintenance and limited foot traffic is achieved over the duration of the life of the roof - Remaining life is based on reported conditions and age. See General Notes Approx. 705 squares Life Expectancy: 22 Remaining Life: 11 Best Cost: $705,000 $1000/square; Estimate to replace Worst Cost: $846,000 $1200/square; Higher estimate for better quality Source of Information: Research with contractor Approx. 15 Sqs x 15 Blds = Approx. 225 Squares Arizona Ave: 14185, 14227, 14269, Carson Way: 1300, 1220 Crystal Way: 1253, 1293, 1315, 1272, Dillon Way: 1340, 1277, 1218 Sable Blvd: 1259, 1315 Approx.. 12 Sqs x 40 Blds = Approx. 480 Squares Arizona Ave: , 14259, 14331, 14341, 14403, , 14388, Carson Way: 1210, 1240, 1260, 1298, 1312, 1320 Crystal Way: , 1221, 1261, 1301, 1321, 1337, , 1282, 1424, 1232 Dillon Way: , 1285, 1245, 1237, 1226, , 1296 Sable Blvd: 1219, 1221, 1261, 1299, 1301, 1321 Page 2 of 79

9 Comp #: 105 Comp Shingle - Replace (1) - All the comp shingle roofs are in need or replacement, however, these roofs are the highest priority at this time. - It appears this roof material is rated as a year product. Despite this rating, a life expectancy of years is expected in this environment. - Due to the potentially harsh winters, extensive freeze/thaw cycle, and likelihood of hail events over the useful life of the roof, we typically see associations replacing roofs sooner than the manufacturer's suggested useful life. - Remaining life is based on age of roof and observed conditions. Roofs of all unit buildings Approx. 280 squares Life Expectancy: 25 Remaining Life: 0 Best Cost: $140,000 $500/square; Estimate to replace Worst Cost: $161,000 $575/square; Higher estimate for better quality Approx. 35 Sqs x 8 Blds = Approx. 280 Squares Arizona Ave: /14299, 14381/14397, 14473/14443 Carson Way: 1320/1326 Crystal Way: 1318/1348, 1201/1213 Dillon Way: 1266/1278, 1237/1225 Source of Information: Research with contractor Page 3 of 79

10 Comp #: 106 Comp Shingle - Replace (2) - All the comp shingle roofs are in need of replacement, but we have separated the roofs into phases to ease budgeting concerns. - It appears this roof material is rated as a year product. Despite this rating, a life expectancy of years is expected in this environment. - Due to the potentially harsh winters, extensive freeze/thaw cycle, and likelihood of hail events over the useful life of the roof, we typically see associations replacing roofs sooner than the manufacturer's suggested useful life. - Remaining life is based on age of roof and observed conditions. Roofs of all unit buildings Approx. 350 squares Life Expectancy: 25 Remaining Life: 1 Best Cost: $175,000 $500/square; Estimate to replace Worst Cost: $181,125 $575/square; Higher estimate for better quality Approx. 35 Sqs x 9 Bldgs = Approx. 315 Squares Arizona Ave: 14403/14433, 14372/14342 Carson Way: 1280/1298 Crystal Way: /1347, 1221/1233, 1242/1254, 1262/1274 Dillon Way: /1245, 1336/1330 Source of Information: Research with contractor Page 4 of 79

11 Comp #: 107 Comp Shingle - Replace (3) - All the comp shingle roofs are in need of replacement, but we have separated the roofs into phases to ease budgeting concerns. - It appears this roof material is rated as a year product. Despite this rating, a life expectancy of years is expected in this environment. - Due to the potentially harsh winters, extensive freeze/thaw cycle, and likelihood of hail events over the useful life of the roof, we typically see associations replacing roofs sooner than the manufacturer's suggested useful life. - Remaining life is based on age of roof and observed conditions. Roofs of all unit buildings Approx. 490 squares Life Expectancy: 25 Remaining Life: 2 Best Cost: $245,000 $500/square; Estimate to replace Worst Cost: $281,750 $575/square; Higher estimate for better quality Approx. 35 Sqs x 14 Bldgs = Approx. 490 Squares Arizona Ave: /14371, 14483/14495, 14398/14382 Carson Way: /1278, 1310/1316, 1200/1218 Dillon Way: /1265, 1297/1285, 1206/1218, 1286/1298 Sable Blvd: /1219, 1221/1239, 1241/1259, 1261/1279 Source of Information: Research with contractor Page 5 of 79

12 Comp #: 108 Comp Shingle - Replace (4) - All the comp shingle roofs are in need of replacement, but we have separated the roofs into phases to ease budgeting concerns. - It appears this roof material is rated as a year product. Despite this rating, a life expectancy of years is expected in this environment. - Due to the potentially harsh winters, extensive freeze/thaw cycle, and likelihood of hail events over the useful life of the roof, we typically see associations replacing roofs sooner than the manufacturer's suggested useful life. - Remaining life is based on age of roof and observed conditions. Roofs of all unit buildings Approx. 490 squares Life Expectancy: 25 Remaining Life: 3 Best Cost: $245,000 $500/square; Estimate to replace Worst Cost: $281,750 $575/square; Higher estimate for better quality Approx. 35 Sqs x 14 Bldgs = Approx. 490 Squares Arizona: /14197, 14207/14219, 14227/14239, 14247/14259 Carson Way: 1300/1302, 1220,1238, 1240/1258 Crystal Way: /1253, 1261/1293, 1301/1307, 1311/1317, 1321/1327, 1337/1331 Dillon: 1246/1258 Source of Information: Research with contractor Page 6 of 79

13 Comp #: 109 Comp Shingle - Replace (5) - All the comp shingle roofs are in need of replacement, but we have separated the roofs into phases to ease budgeting concerns. - It appears this roof material is rated as a year product. Despite this rating, a life expectancy of years is expected in this environment. - Due to the potentially harsh winters, extensive freeze/thaw cycle, and likelihood of hail events over the useful life of the roof, we typically see associations replacing roofs sooner than the manufacturer's suggested useful life. - Remaining life is based on age of roof and observed conditions. Roofs of all unit buildings Approx. 420 squares Life Expectancy: 25 Remaining Life: 4 Best Cost: $210,000 $500/square; Estimate to replace Approx. 35 Sqs x 12 Bldgs = Approx. 420 Squares Crystal Way: 1282/1294, 1222/1234 Dillon Way: 1349/1319, 1300/1306, 1310/1316,1320/1326, 1340/1346, 1226/1238 Sable Blvd: 1281/1299, 1301/1307, 1311/1317, 1321/1327 Worst Cost: $241,500 $575/square; Higher estimate for better quality Source of Information: Research with contractor Page 7 of 79

14 Comp #: 111 Comp Shingle - Replace (6) - These roofs have been replaced and were in good condition at the time of the site observation. - It appears this roof material is rated as a year product. Despite this rating, a life expectancy of years is expected in this environment. - Due to the potentially harsh winters, extensive freeze/thaw cycle, and likelihood of hail events over the useful life of the roof, we typically see associations replacing roofs sooner than the manufacturer's suggested useful life. - Remaining life is based on age of roof and observed conditions. Roofs of all unit buildings Approx. 70 Squares Life Expectancy: 25 Remaining Life: 20 Arizona: 14301/14331 Crystal Way: 1281/1293 Best Cost: $35,000 $500/square; Estimate to replace Worst Cost: $40,250 $575/square; Higher estimate for better quality Source of Information: Research with contractor Page 8 of 79

15 Comp #: 120 Rain gutters/downspouts - Repair - The age and conditions of the raingutters and downspouts varied throughout the property. - It is typical for debris, such as roof granules and dirt, to build up in the lines. When debris remains in the rain gutters, it will stay wet after rains and snow melt which will cause premature deterioration of the materials. - Therefore, we recommend cleaning out the lines at least once a year as a maintenance expense to ensure full life expectancy. - Due to the varying conditions of the gutters, we recommend reserving to replace 20% every 5 years. Perimeter of roofs Approx. 28,025 LF Life Expectancy: 5 Remaining Life: 0 Best Cost: $33,650 Estimate to replace 20% at $6.00 per LF Worst Cost: $40,650 Higher estimate for more repairs Source of Information: Research with contractor Page 9 of 79

16 Comp #: 204 Building Ext Surfaces - Repaint (1) - In this climate, it is recommended that exterior surfaces are painted every 5-7 years. - The exact timeframe depends on the color chosen and the level of exposure to elements, as well as the quality of past paint jobs. - The remaining life is based on the observed conditions. See General Notes (44) Units Life Expectancy: 6 Remaining Life: 0 Best Cost: $114,400 $2,600/unit; Estimate to repaint buildings Arizona Ave: 14219, 14259, 14331, 14341, 14403, 14473, 14362, 14388, 14483, 14185, Worst Cost: $127,600 $2,900/unit; Higher estimate for more prep work Source of Information: Estimates received by client Page 10 of 79

17 Comp #: 205 Building Ext Surfaces - Repaint (2) - In this climate, it is recommended that exterior surfaces are painted every 5-7 years. - The exact timeframe depends on the color chosen and the level of exposure to elements, as well as the quality of past paint jobs. - The remaining life is based on the observed conditions. See General Notes (44) Units + Pool Building Carson Way: 1300, 1220, 1210, 1240, 1260, 1298, 1312, $1,800 - $2,100/Unit Life Expectancy: 6 Remaining Life: 1 Best Cost: $117,900 $2,600/unit; Estimate to repaint buildings Crystal Way: 1253, 1213, $1,800-$2,100/Unit Pool Building - $3,500 - $4,250 Worst Cost: $131,850 $2,900/unit; Higher estimate for more prep work Source of Information: Estimates received by client Page 11 of 79

18 Comp #: 206 Building Ext Surfaces - Repaint (3) - In this climate, it is recommended that exterior surfaces are painted every 5-7 years. - The exact timeframe depends on the color chosen and the level of exposure to elements, as well as the quality of past paint jobs. - The remaining life is based on the observed conditions. See General Notes (44) Units Crystal Way: , 1315, 1261, 1301, 1321, 1337, 1341 Life Expectancy: 6 Remaining Life: 2 Best Cost: $114,400 $2,600/unit; Estimate to repaint buildings Dillon Way: 1340, 1336, 1320 Sable Blvd: 1321 Worst Cost: $127,600 $2,900/unit; Higher estimate for more prep work Source of Information: Estimates received by client Page 12 of 79

19 Comp #: 207 Building Ext Surfaces - Repaint (4) - In this climate, it is recommended that exterior surfaces are painted every 5-7 years. - The exact timeframe depends on the color chosen and the level of exposure to elements, as well as the quality of past paint jobs. - The remaining life is based on the observed conditions. See General Notes (48) Units Life Expectancy: 6 Remaining Life: 3 Best Cost: $124,800 $2,600/unit; Estimate to repaint buildings Dillon Way: 1314, 1304, 1296, 1266, 1258 Sable Blvd: , 1259, 1301, 1299, 1261, 1221, 1219 Worst Cost: $139,200 $2,900/unit; Higher estimate for more prep work Source of Information: Estimates received by client Page 13 of 79

20 Comp #: 208 Building Ext Surfaces - Repaint (5) - In this climate, it is recommended that exterior surfaces are painted every 5-7 years. - The exact timeframe depends on the color chosen and the level of exposure to elements, as well as the quality of past paint jobs. - The remaining life is based on the observed conditions. See General Notes (56) Units Life Expectancy: 6 Remaining Life: 4 Best Cost: $145,600 $2,600/unit; Estimate to repaint buildings Arizona Ave: 14269, Crystal Way: 1348, 1282, 1272, 1232, 1242 Dillon Way: , 1226, 1237, 1245, 1277, 1285, 1349 Worst Cost: $162,400 $2,900/unit; Higher estimate for more prep work Source of Information: Estimates received by client Page 14 of 79

21 Comp #: 209 Wood Fencing - Restain (1) - In this climate, we recommend staining wood fences every 3-6 years to protect the materials against splintering and cracking. - The remaining life is based on the timing of the next paint cycle. See General Notes Approx. 935 LF Life Expectancy: 6 Remaining Life: 0 Best Cost: $6,545 $7.00/LF: Estimate to restain fence Arizona Ave: 14219, 14259, 14331, 14341, 14403, 14473, 14362, 14388, 14483, 14185, Approx. 85 LF x 11 Bldg = Approx. 935 LF Worst Cost: $7,500 $8.00/LF; Higher est. for more prep Source of Information: Cost database Page 15 of 79

22 Comp #: 210 Wood Fencing - Restain (2) - In this climate, we recommend staining wood fences every 3-6 years to protect the materials against splintering and cracking. - The remaining life is based on the timing of the next paint cycle. See General Notes Approx. 1,345 LF Life Expectancy: 6 Remaining Life: 1 Best Cost: $9,425 $7.00/LF: Estimate to restain fence Carson Way: 1300, 1220, 1210, 1240, 1260, 1298, 1312, 1320 Crystal Way: 1253, 1213, 1221 Approx. 85 LF x 11 Bldgs = Approx. 935 LF Pool Building: Approx. 410 LF Worst Cost: $10,775 $8.00/LF; Higher est. for more prep Source of Information: Cost database Page 16 of 79

23 Comp #: 211 Wood Fencing - Restain (3) - In this climate, we recommend staining wood fences every 3-6 years to protect the materials against splintering and cracking. - The remaining life is based on the timing of the next paint cycle. See General Notes Approx. 1,105 LF Crystal Way: , 1315, 1261, 1301, 1321, 1337, 1341 Life Expectancy: 6 Remaining Life: 2 Best Cost: $7,750 $7.00/LF: Estimate to restain fence Dillon Way: 1340, 1336, 1320 Sable Blvd: 1321 Approx. 85 LF x 13 Bldg = Approx. 1,105 LF Worst Cost: $8,850 $8.00/LF; Higher est. for more prep Source of Information: Cost database Page 17 of 79

24 Comp #: 212 Wood Fencing - Restain (4) - In this climate, we recommend staining wood fences every 3-6 years to protect the materials against splintering and cracking. - The remaining life is based on the timing of the next paint cycle. See General Notes Approx. 1,020 LF Life Expectancy: 6 Remaining Life: 3 Best Cost: $7,150 $7.00/LF: Estimate to restain fence Dillon Way: 1314, 1304, 1296, 1266, 1258 Sable Blvd: , 1259, 1301, 1299, 1261, 1221, 1219 Approx. 85 LF x 12 Bldgs = Approx. 1,020 LF Worst Cost: $8,175 $8.00/LF; Higher est. for more prep Source of Information: Cost database Page 18 of 79

25 Comp #: 213 Wood Fencing - Restain (5) - In this climate, we recommend staining wood fences every 3-6 years to protect the materials against splintering and cracking. - The remaining life is based on the timing of the next paint cycle. See General Notes Approx. 1,190 LF Life Expectancy: 6 Remaining Life: 4 Best Cost: $8,350 $7.00/LF: Estimate to restain fence Arizona Ave: 14269, Crystal Way: 1348, 1282, 1272, 1232, 1242 Dillon Way: , 1226, 1237, 1245, 1277, 1285, 1349 Approx. 85 LF x 14 Bldgs = Approx. 1,190 LF Worst Cost: $9,525 $8.00/LF; Higher est. for more prep Source of Information: Cost database Page 19 of 79

26 Comp #: 303 Wood Siding - Major Repairs (1) - The siding is in very poor condition throughout the property, with some repairs noted at the time of the site observation. - Some minor warping and cupping, but in general, all material exhibits typical signs of wear and deterioration for a property of this age. - This material typically lasts years, depending on how well it is maintained throughout the years. - In order to keep up the appearance of the community and to ensure a maximum life of siding, we have established a Reserve allowance for major repairs and partial replacement every painting cycle. Unit Building Exteriors (44) Units Life Expectancy: 6 Remaining Life: 0 Best Cost: $39,600 $900/Unit; Allowance for major repairs Worst Cost: $52,800 $1200/Unit; Higher allowance for more repairs Arizona Ave: 14219, 14259, 14331, 14341, 14403, 14473, 14362, 14388, 14483, 14185, Cedar Shake Siding: Approx. 3,075 GSF x 11 Bldg = Approx. 33,825 GSF Wood Panel Siding: Approx. 2,545 GSF x 11 Bldg = Approx. 27,995 GSF Source of Information: Cost database Page 20 of 79

27 Comp #: 304 Wood Siding - Major Repairs (2) - The siding is in very poor condition throughout the property, with some repairs noted at the time of the site observation. - Some minor warping and cupping, but in general, all material exhibits typical signs of wear and deterioration for a property of this age. - This material typically lasts years, depending on how well it is maintained throughout the years. - In order to keep up the appearance of the community and to ensure a maximum life of siding, we have established a Reserve allowance for major repairs and partial replacement every painting cycle. Unit Building Exteriors (44) Units + Pool Building Life Expectancy: 6 Remaining Life: 1 Best Cost: $39,600 $900/Unit; Allowance for major repairs Worst Cost: $52,800 $1200/Unit; Higher allowance for more repairs Carson Way: 1300, 1220, 1210, 1240, 1260, 1298, 1312, 1320 Crystal Way: 1253, 1213, 1221 Cedar Shake Siding: Approx. 3,075 GSF x 11 Bldg = Approx. 33,825 Wood Panel Siding: Approx. 2,545 GSF x 11 Bldg = Approx. 26,995 GSF Pool Building: Approx. 770 GSF Source of Information: Cost database Page 21 of 79

28 Comp #: 305 Wood Siding - Major Repairs (3) - The siding is in very poor condition throughout the property, with some repairs noted at the time of the site observation. - Some minor warping and cupping, but in general, all material exhibits typical signs of wear and deterioration for a property of this age. - This material typically lasts years, depending on how well it is maintained throughout the years. - In order to keep up the appearance of the community and to ensure a maximum life of siding, we have established a Reserve allowance for major repairs and partial replacement every painting cycle. Unit Building Exteriors (44) Units Crystal Way: , 1315, 1261, 1301, 1321, 1337, 1341 Life Expectancy: 6 Remaining Life: 2 Best Cost: $39,600 $900/Unit; Allowance for major repairs Worst Cost: $52,800 $1200/Unit; Higher allowance for more repairs Dillon Way: 1340, 1336, 1320 Sable Blvd: 1321 Cedar Shake Siding: Approx. 3,075 GSF x 11 Bldg = Approx. 33,825 Wood Panel Siding: Approx. 2,545 GSF x 11 Bldg = Approx. 26,995 GSF Source of Information: Cost database Page 22 of 79

29 Comp #: 306 Wood Siding - Major Repairs (4) - The siding is in very poor condition throughout the property, with some repairs noted at the time of the site observation. - Some minor warping and cupping, but in general, all material exhibits typical signs of wear and deterioration for a property of this age. - This material typically lasts years, depending on how well it is maintained throughout the years. - In order to keep up the appearance of the community and to ensure a maximum life of siding, we have established a Reserve allowance for major repairs and partial replacement every painting cycle. Unit Building Exteriors (48) Units Life Expectancy: 6 Remaining Life: 3 Best Cost: $43,200 $900/Unit; Allowance for major repairs Worst Cost: $57,600 $1200/Unit; Higher allowance for more repairs Dillon Way: 1314, 1304, 1296, 1266, 1258 Sable Blvd: , 1259, 1301, 1299, 1261, 1221, 1219 Cedar Shake Siding: Approx. 3,075 GSF x 12 Bldg = Approx. 36,900 GSF Wood Panel Siding: Approx. 2,545 GSF x 12 Bldg = Approx. 30,540 GSF Source of Information: Cost database Page 23 of 79

30 Comp #: 307 Wood Siding - Major Repairs (5) - The siding is in very poor condition throughout the property, with some repairs noted at the time of the site observation. - Some minor warping and cupping, but in general, all material exhibits typical signs of wear and deterioration for a property of this age. - This material typically lasts years, depending on how well it is maintained throughout the years. - In order to keep up the appearance of the community and to ensure a maximum life of siding, we have established a Reserve allowance for major repairs and partial replacement every painting cycle. Unit Building Exteriors (56) Units Life Expectancy: 6 Remaining Life: 4 Best Cost: $50,400 $900/Unit; Allowance for major repairs Worst Cost: $67,200 $1200/Unit; Higher allowance for more repairs Arizona Ave: 14269, Crystal Way: 1348, 1282, 1272, 1232, 1242 Dillon Way: , 1226, 1237, 1245, 1277, 1285, 1349 Cedar Shake Siding: Approx. 3,075 GSF x 12 Bldg = Approx. 36,900 GSF Wood Panel Siding: Approx. 2,545 GSF x 12 Bldg = Approx. 30,540 GSF Source of Information: Cost database Page 24 of 79

31 Comp #: 308 Fiber Cement Siding - Replace - The fiber cement siding is new and in good condition. - This type of siding has an extended useful life, and any repairs should be handled when the buildings are painted. - Continue to monitor conditions in future updates and adjust the report accordingly. Chimnies on Unit Buildings Approx. 11,615 GSF Life Expectancy: N/A Remaining Life: Best Cost: $0 Worst Cost: $0 Source of Information: Page 25 of 79

32 Comp #: 401 Asphalt - Overlay - There were minor repairs to asphalt in the community, but the overall condition was poor. - The average life expectancy for asphalt surfaces ranges between years for surfaces that are maintained on a regular schedule. - Maintenance includes crack fill and repairing small potholes annually as an operating expense. - In addition, asphalt should be seal coated every 3-4 years, depending on the level of traffic and snow removing techniques. - We have extended the remaining life to allow funds for more pressing projects. Private driveways Approx. 74,520 GSF Life Expectancy: 24 Remaining Life: 4 Best Cost: $126,700 $1.70/GSF; Est. to rotomill and 2" overlay Worst Cost: $149,050 $2.00/GSF; Higher estimate for more repairs Source of Information: Cost database 14185: Approx. 2,160 GSF 1285/1277: Approx. 4,440 GSF 1348/1349: Approx. 3,025 GSF 1340/1334: Approx. 2,495 GSF 1343/1337: Approx. 2,595 GSF 1333/1315: Approx. 2,960 GSF 1301/1293: Approx. 2,180 GSF 1261/1253: Approx. 2,300 GSF 1221/1213: Approx. 2,595 GSF 1218/1220: Approx. 2,715 GSF 1258/1260: Approx. 2,595 GSF 1298/1300: Approx. 2,715 GSF 1314/1320: Approx. 3,120 GSF 1323/1317: Approx. 5,170 GSF 1301/1291: Approx. 4,440 GSF 1269/1259: Approx. 4,700 GSF 1229/1211: Approx. 4,680 GSF 1234/1242: Approx. 4,460 GSF 14463/14483: Approx. 2,325 GSF 14403/14397: Approx. 2,595 GSF 14382/14372: Approx. 2,885 GSF 14341/14331: Approx. 2,450 GSF 14259/14269: Approx. 2,495 GSF 14219/14227: Approx. 2,425 GSF Page 26 of 79

33 Comp #: 402 Asphalt - Seal Coat/crack fill - The private drives were in need of crackfill and a sealcoat. - In this environment, expect to seal asphalt every 2-4 years, depending on traffic levels and effects from weather. - Sealcoating is applied to protect the asphalt from ultra-violet rays and water. - This helps in slowing the process of oxidation and raveling. - While acting as a protective barrier, it also maintains the appearance of the community to maintain or improve property values. Private driveways Approx. 74,520 GSF Life Expectancy: 4 Remaining Life: 0 Best Cost: $12,675 $.17/GSF; Estimate for seal coat only Worst Cost: $14,925 $.20/GSF; Higher est. includes repairs/crack fill Source of Information: Cost database 14185: Approx. 2,160 GSF 1285/1277: Approx. 4,440 GSF 1348/1349: Approx. 3,025 GSF 1340/1334: Approx. 2,495 GSF 1343/1337: Approx. 2,595 GSF 1333/1315: Approx. 2,960 GSF 1301/1293: Approx. 2,180 GSF 1261/1253: Approx. 2,300 GSF 1221/1213: Approx. 2,595 GSF 1218/1220: Approx. 2,715 GSF 1258/1260: Approx. 2,595 GSF 1298/1300: Approx. 2,715 GSF 1314/1320: Approx. 3,120 GSF 1323/1317: Approx. 5,170 GSF 1301/1291: Approx. 4,440 GSF 1269/1259: Approx. 4,700 GSF 1229/1211: Approx. 4,680 GSF 1234/1242: Approx. 4,460 GSF 14463/14483: Approx. 2,325 GSF 14403/14397: Approx. 2,595 GSF 14382/14372: Approx. 2,885 GSF 14341/14331: Approx. 2,450 GSF 14259/14269: Approx. 2,495 GSF 14219/14227: Approx. 2,425 GSF Page 27 of 79

34 Comp #: 403 Concrete - Partial Replace - There were several new drain pans which were in good condition, but the older drain pans were in poor condition. - Since it is unlikely that all concrete surfaces will fail at the same time, we suggest establishing a Reserve fund for periodic repairs and replacement to approximately 10% of the total area (650 GSF) every 4 years. - Repairs should be coordinated with other concrete surfaces and asphalt for best cost estimate since most asphalt companies can also perform concrete work. See General Notes Approx. 6,505 GSF Life Expectancy: 4 Remaining Life: 2 Best Cost: $7,150 Allowance to replace 10% of area every 4 years Worst Cost: $8,450 Higher estimate for more repairs 1285/1277: Approx. 890 GSF 1333/1315: Approx. 595 GSF 1301/1293: Approx. 435 GSF 1261/1253: Approx. 460 GSF 1323/1317: Approx. 475 GSF 1301/1291: Approx. 880 GSF 1229/1211: Approx. 940 GSF 1229/1211: Approx. 935 GSF 1234/1242: Approx. 895 GSF Source of Information: Cost database Page 28 of 79

35 Comp #: 502 Garage Doors - Replace - According to Article VII, the association shall maintain the exterior of the buildings, which includes staining of garage doors. However, we do not interpret this to mean the association is responsible for replacement. - Some associations decide to include garage doors as an association expense to obtain the best cost available and to maintain a consistent appearance for the association. - Unless otherwise noted, Reserve funding will not be included based on the rules stated in the declarations. - We suggest the association establish a design guideline so that when an owner goes to replace a door, it will match and be consistent with the others. At each garage (236) 16 x 7 doors Life Expectancy: N/A Remaining Life: Best Cost: $0 Worst Cost: $0 Source of Information: Page 29 of 79

36 Comp #: 503 Garage Access Doors - Replace - According to Article VII, all doors are the responsibility of the individual homeowner. - Therefore, no Reserve funding is necessary for this component. Garages (118) 3 x 7 doors Life Expectancy: N/A Remaining Life: Best Cost: $0 Worst Cost: $0 Source of Information: Page 30 of 79

37 Comp #: 601 Concrete Sidewalks - Repair - There were minor repairs to the sidewalks, however, there were significant trip hazards and deterioration noted throughout the property, most notable outside of 1279/ Similar to other concrete surfaces, it is unlikely that all concrete surfaces will fail and need to be replaced at the same time. - Therefore, we suggest establishing a Reserve fund for frequent repairs and replacement to a percentage of the area (5% or 2,000 GSF) every 4 years. - Coordinate repairs with other concrete surfaces for best cost estimate. See General Notes Approx. 39,775 GSF Life Expectancy: 4 Remaining Life: 0 Greenbelt Area: Approx. 9,940 GSF Unit Sidewalks: Approx. 29,835 GSF Best Cost: $20,000 Estimate to repair 5% of area every 4 yrs Worst Cost: $24,000 Higher estimate for more repairs Source of Information: Cost database Page 31 of 79

38 Comp #: 607 Wood Deck/Stairs - Major Repairs Unit Decks 59 Stairs, 43 Decks Life Expectancy: 6 Remaining Life: 0 Best Cost: $75,000 Allowance for major repairs/replacement Worst Cost: $90,000 Higher allowance for more repairs/replacements Source of Information: Cost database Page 32 of 79

39 Comp #: 608 Pool Deck - Replace - The pool deck was in very poor condition at the time of the site observation. There was a large number of significant cracks, spalling, and trip hazards. - We would recommend replacing the pool deck as soon as possible due to the potential injury liability and safety concerns. - Once replaced this concrete can expect a life expectancy of years if properly installed and maintained. - Remaining life is based on the observed conditions of the pool deck. Pool Area Approx. 5,110 GSF Life Expectancy: 20 Remaining Life: 0 Best Cost: $61,325 $12/GSF; Estimate to replace Worst Cost: $71,550 $14/GSF; Higher estimate for more labor Source of Information: Cost database Page 33 of 79

40 Comp #: 609 Composite Deck - Replace - Over a period of time, the material begins to fade and scratch and eventually will become aesthetically unpleasing. - Therefore, due to the level of use and exposure to the elements, we recommend establishing a replacement cycle of years. - This funding is for the decking material only. Unit Front Decks (16) Decks (2,595 GSF) Life Expectancy: 25 Remaining Life: 22 Best Cost: $98,610 $38/GSF; Estimate to replace Worst Cost: $109,000 $42/GSF; Higher estimate for more labor Source of Information: Past client cost Page 34 of 79

41 Comp #: 703 Hot Water Heater Tank - Replace - In our experience, we have seen the need to replace storage tanks on the average of years, depending on the quality of the tank, the liner, and the quality of the water running through the system. - The estimated cost is for an "emergency replacement". - The association could save some substantial money if replacement was done on a proactive manner, as opposed to a reactive manner when the heater fails. - We understand that these heaters have exceeded the typical life expectancy, but the association should plan on replacement any moment. Pool equipment room (2) Rheem, 40 gallon Life Expectancy: 18 Remaining Life: 0 Best Cost: $3,500 $1750/heater; Estimate to replace (2) Rheem: 40 Gallon M/N: 21V S/N: RHNG S/N: RHNG Worst Cost: $4,500 Higher estimate for emergency call Source of Information: Cost database Page 35 of 79

42 Comp #: 801 Identification Signs - Replace - These signs are 16 years old and are starting to show some signs of deterioration. - Due to more pressing project occurring over the next several years, we have extended the useful life of these signs. Corner of Sable and Arizona (2) Assorted signs Life Expectancy: 20 Remaining Life: 4 Best Cost: $4,000 $2000/sign; Estimate to replace with similar design (2) Large Signs Project History: : Replaced Worst Cost: $5,000 Higher estimate for more elaborate design Source of Information: Cost database Page 36 of 79

43 Comp #: 803 Mailboxes - Replace - According to several manufacturers, the typical life expectancy for this type of mailbox is years in this environment. - Remaining life is based on average age of all units. - Per new Postal regulations effective 2012, "all customers are responsible for repairs and replacement of keys, locks, or the boxes/cluster units themselves". See General Notes (15) 16-Box CBUs w/ 2 Parcels Life Expectancy: 20 Remaining Life: 4 Best Cost: $27,000 $1800/CBU; Estimate to replace Worst Cost: $31,500 $2100/CBU; Higher estimate for better quality Source of Information: Cost database Page 37 of 79

44 Comp #: 805 Private Property Signs - Replace (1) - This line item is for the 6 original signs on the property. They were in fair condition at the time of the site observation. - We expect the association will need to replace all signs every 15 years based on proper maintenance. - Remaining life based on observed conditions and assumed age. Throughout Property (6) Signs Life Expectancy: 15 Remaining Life: 5 Best Cost: $3,600 $600/sign; Estimate to replace and install Worst Cost: $4,450 $740/sign; Higher estimate Source of Information: Past client cost Page 38 of 79

45 Comp #: 806 Private Property Signs - Replace (2) - This line item is for the 6 new signs that were added in They were in excellent condition at the time of the site observation. - We expect the association will need to replace all signs every 15 years based on proper maintenance. - Remaining life based on observed conditions and assumed age. Throughout Property (6) Signs Project History: : Added New - $4, Life Expectancy: 15 Remaining Life: 14 Best Cost: $3,600 $600/sign; Estimate to replace and install Worst Cost: $4,450 $740/sign; Higher estimate Source of Information: Past client cost Page 39 of 79

46 Comp #: 1001 Wood Fencing - Replace (1) - The replacement cycle is based on the observed quality of fence installed and the current condition. - In our experience, fences that are stained on a periodic basis (every 3-4 years), have a replacement cycle of years - The remaining life is based on age of fence and observed conditions. See General Notes Approx. 1,105 LF Life Expectancy: 25 Remaining Life: 6 Best Cost: $37,575 $34/LF; Estimate to replace Arizona Ave: 14219, 14259, 14331, 14341, 14403, 14473, 14362, 14388, 14483, 14185, 14227, 14269, Approx. 85 LF x 13 Bldg = Approx. 1,105 LF Worst Cost: $51,110 $40/LF; Higher estimate for better quality Source of Information: Cost database Page 40 of 79

47 Comp #: 1002 Wood Fencing - Replace (2) - The replacement cycle is based on the observed quality of fence installed and the current condition. - In our experience, fences that are stained on a periodic basis (every 3-4 years), have a replacement cycle of years - The remaining life is based on age of fence and observed conditions. See General Notes Approx. 1,345 LF Life Expectancy: 25 Remaining Life: 7 Best Cost: $45,750 $34/LF; Estimate to replace Carson Way: 1300, 1220, 1210, 1240, 1260, 1298, 1312, 1320 Crystal Way: 1253, 1213, 1221 Approx. 85 LF x 11 Bldgs = Approx. 935 LF Pool Building: Approx. 410 LF Worst Cost: $53,800 $40/LF; Higher estimate for better quality Source of Information: Cost database Page 41 of 79

48 Comp #: 1003 Wood Fencing - Replace (3) - The replacement cycle is based on the observed quality of fence installed and the current condition. - In our experience, fences that are stained on a periodic basis (every 3-4 years), have a replacement cycle of years - The remaining life is based on age of fence and observed conditions. See General Notes Approx. 935 LF Crystal Way: , 1315, 1261, 1301, 1321, 1337, 1341 Life Expectancy: 25 Remaining Life: 8 Best Cost: $31,800 $34/LF; Estimate to replace Dillon Way: 1340, 1336, 1320 Sable Blvd: 1321 Approx. 85 LF x 11 Bldgs = Approx. 935 LF Worst Cost: $37,400 $40/LF; Higher estimate for better quality Source of Information: Cost database Page 42 of 79

49 Comp #: 1004 Wood Fencing - Replace (4) - The replacement cycle is based on the observed quality of fence installed and the current condition. - In our experience, fences that are stained on a periodic basis (every 3-4 years), have a replacement cycle of years - The remaining life is based on age of fence and observed conditions. See General Notes Approx. 1,020 LF Life Expectancy: 25 Remaining Life: 9 Best Cost: $34,700 $34/LF; Estimate to replace Dillon Way: 1314, 1304, 1296, 1266, 1258 Sable Blvd: , 1259, 1301, 1299, 1261, 1221, 1219 Approx. 85 LF x 12 Bldgs = Approx. 1,020 LF Worst Cost: $40,800 $40/LF; Higher estimate for better quality Source of Information: Cost database Page 43 of 79

50 Comp #: 1005 Wood Fencing - Replace (5) - The replacement cycle is based on the observed quality of fence installed and the current condition. - In our experience, fences that are stained on a periodic basis (every 3-4 years), have a replacement cycle of years - The remaining life is based on age of fence and observed conditions. See General Notes Approx. 1,020 LF Life Expectancy: 25 Remaining Life: 10 Best Cost: $34,700 $34/LF; Estimate to replace Crystal Way: 1348, 1282, 1272, 1232, 1242 Dillon Way: , 1226, 1237, 1245, 1277, 1285, 1349 Approx. 85 LF x 12 Bldgs = Approx. 1,020 LF Worst Cost: $40,800 $40/LF; Higher estimate for better quality Source of Information: Cost database Page 44 of 79

51 Comp #: 1006 Wood Fencing - Replace (North Perimeter) - The replacement cycle is based on the observed quality of fence installed and the current condition. - In our experience, fences that are stained on a periodic basis (every 3-4 years), have a replacement cycle of years - The remaining life is based on age of fence and observed conditions. See General Notes Approx. 755 LF Life Expectancy: 20 Remaining Life: 3 North Perimeter: Approx. 535 LF Retaining Walls: Approx. 220 LF Best Cost: $25,675 $34/LF; Estimate to replace Worst Cost: $30,200 $40/LF; Higher estimate for better quality Source of Information: Cost database Page 45 of 79

52 Comp #: 1007 Chain Link Fencing - Replace Tennis court 450 LF, 10 ft high Life Expectancy: 25 Remaining Life: 0 Best Cost: $18,450 $41/LF; Estimate to replace Worst Cost: $20,700 $46/LF; Higher estimate for more labor Source of Information: Cost database Page 46 of 79

53 Comp #: 1101 Pool - Resurface - The average resurfacing cycle for pool surfaces ranges from 8-12 years, depending on the quality of the water and the chemical levels in the water. - In this climate, frequent acid washes are required to clean the surface after being winterized for 9 months a year. These acid washes gradually "eat" away the plaster and the surface becomes rough. - The useful life and remaining life is based on the observed conditions. Recreation area Approx. 2,650 GSF Life Expectancy: 12 Remaining Life: 3 Best Cost: $23,850 $9/GSF; Estimate to resurface Worst Cost: $27,825 $10.50/GSF; Higher estimate for more labor Source of Information: Cost database Page 47 of 79

54 Comp #: 1104 Coping Stone/Tile - Replace - It is typical to replace these materials every other pool resurface cycle. - Therefore, based on the observed condition, we suggest replacing at the time of the following replaster job Pool Area Approx. 190 LF Life Expectancy: 24 Remaining Life: 3 Best Cost: $12,350 $65/LF; Estimate to replace tile and coping stones Worst Cost: $14,250 $75/LF; Estimate for upgraded materials Source of Information: Cost Database Page 48 of 79

55 Comp #: 1105 Pool Heater - Replace - The overall life expectancy depends on the level of maintenance and the quality of the water running through the system. - For this type of heater, the average replacement cycle will range between years with proper maintenance and under normal conditions. Pool Equipment Room (1) Raypak Pool Heater Life Expectancy: 18 Remaining Life: 11 Best Cost: $8,500 Estimate to replace M/N: C-R406A-ENC ASME S/N: ,000 Btu Project History: : Replaced Worst Cost: $12,000 Higher estimate for more efficiency Source of Information: Cost database Page 49 of 79

56 Comp #: 1108 Pool Filter - Replace - The shell will have an extended useful life of years and most leaks can be attributed to gaskets and seals that can be replaced on an as needed basis. - Remove and replace filter sand on an as needed basis using operating funds. Pool equipment room (1) Pentair Filter Life Expectancy: 18 Remaining Life: 15 Best Cost: $1,800 Estimate to replace Triton II: - M/N: TR S/N: /16/2016 Project History: : Replaced - No cost provided Worst Cost: $2,200 Higher estimate Source of Information: Cost database Page 50 of 79

57 Comp #: 1111 Pool Pump - Replace - Motors and other components for this pump can be replaced and repaired on an as needed basis. - The individual replacement costs of these items is too small for separate Reserve designation. - Therefore, we suggest the association replace these items on an as needed basis with general operating/maintenance funds. Pool equipment room (1) Pentair Whisperflo Life Expectancy: N/A Remaining Life: Best Cost: $0 Pentair Whisperflo: 1.5 HP - S/N: U - 07/27/2017 Worst Cost: $0 Source of Information: Page 51 of 79

58 Comp #: 1113 Pool Cover - Replace - The pool cover was rolled up and in storage at the time of the site observation, but it was reported this was replaced in While most cover manufacturers carry a 10 year warranty against defects, there are strict storage requirements to adhere to the warranty. - In this environment, the cover fabric typically has a life expectancy of 8-10 years. - The replacement cost is a little higher than normal for the pool cover due to the need for a custom design. Pool Equipment Room Approx. 2,000 GSF Project History: : Replaced - No cost provided Life Expectancy: 10 Remaining Life: 8 Best Cost: $8,000 $4.00/GSF; Estimate to replace Worst Cost: $9,500 $4.75/ GSF; Higher estimate for better quality Source of Information: Cost database Page 52 of 79

59 Comp #: 1121 Pool Furniture - Replace - The pool furniture was in very poor condition at the time of the site observation. - While on-site, it was requested we add funding for new pool furniture in We have based our cost on the existing number of units and cost we typically see for pool furniture. - The average replacement cycle for furniture ranges between 5-8 years, depending on the quality of the furniture and the level of use/abuse. - We suggest storing the furniture inside during non-use seasons for best results and to achieve full life expectancy. Pool Deck (20) Assorted pieces Life Expectancy: 8 Remaining Life: 0 Best Cost: $3,500 $175/Piece; Estimate to replace pool furniture Plastic Chairs: (11) Plastic Tables: (4) Plastic Chaise Lounge: (1) Strap Chaise Lounge: (1) Sling Chairs: (3) Worst Cost: $4,500 $225/Piece; Higher estimate for better quality Source of Information: Cost database Page 53 of 79

60 Comp #: 1201 Tennis Court Asphalt - Replace - The tennis courts are in very poor condition. The nets are no longer installed and the courts are unplayable and a serious safety concern. - We would recommend replacing the asphalt tennis courts with post tension tennis courts, and estimated costs reflect this. - These are more expensive up front, but the maintenance is much less and the life expectancy is much longer. - If post tension concrete courts are installed, we can adjust the Useful Life to reflect those new materials. - Remaining life is based on the observed conditions. Southeast corner (2) Courts Life Expectancy: 24 Remaining Life: 0 Best Cost: $125,000 $62,500/court; Est. to replace with post tension Worst Cost: $135,000 $67,500/court; Higher estimate for more labor (PT) Source of Information: Research with Sport Court Page 54 of 79

61 Comp #: 1202 Tennis Court - Recoat/Paint - Depending on the level of use, we recommend the association recoat (also known as resurfacing) the court every 5-7 years. - In between recoating cycles, cracks should be filled as an operating expense to prevent the cracks from worsening. Tennis court surface (2) courts Approx. 12,375 GSF Life Expectancy: 6 Remaining Life: 0 Best Cost: $17,000 $8500/court; Est. to crack fill, repaint/coat Worst Cost: $20,000 $10,000/court; Higher estimate for some repairs Source of Information: Cost Database Page 55 of 79

62 Comp #: 1311 Pet Waste Pick Up Stations - Replace - The association is responsible for 2.5 pet waste stations on the property. - Due to the low quantity, unlikely event that all will require replacement at the same time and the relatively low cost of individual replacement, we do not recommend reserving for replacement at this time. - Maintain and replace on an as needed basis using operating funds. Throughout Property 3 Stations Project History: : Installed 3 stations - $2,445 Life Expectancy: N/A Remaining Life: Best Cost: $0 Worst Cost: $0 Source of Information: Page 56 of 79

63 Comp #: 1413 Restroom - Remodel - There was a evidence of a leak in the women's restroom at the time of the site observation. This should be handled immediately with operating funds. - Most associations perform a general remodel of the restroom/locker room interiors every years to maintain appearance and keep up with current decorative trends. - The final decision is up to the community members in deciding when to spend the money to perform this project since it is considered cosmetic. - We have extended the life of this project to allow funds for more pressing projects. Pool Building (2) Restrooms Life Expectancy: 25 Remaining Life: 4 Best Cost: $8,000 Estimate for a basic remodel Coated Flooring: Approx. 90 GSF/each Tile Wall: Approx. 160 GSF/each Painted Wall: Approx. 160 GSF/each Metal Partitions (2) toilets, (1) urinal, (2) sinks Worst Cost: $10,000 Higher estimate for more elaborate remodel Source of Information: Cost database Page 57 of 79

64 Comp #: 1602 Exterior Wall mount - Replace (1) - The types of lights and their conditions vary throughout the property. - While replacement can occur on an as needed basis, it is our opinion and recommendation to replace all lights at the same time every years to maintain a consistent appearance throughout the property. - In addition, by replacing multiple fixtures, the association will be able to obtain a quantity discount for the fixtures. - We have established Reserves to replace the lights during the next painting cycle. See General Notes Approx. 156 Lights Life Expectancy: 20 Remaining Life: 0 Best Cost: $21,850 $140/light; Estimate to replace Arizona Ave: 14219, 14259, 14331, 14341, 14403, 14473, 14362, 14388, 14483, 14185, 14227, 14269, Worst Cost: $25,750 $165/light; Higher estimate for better quality Source of Information: Cost database Page 58 of 79

65 Comp #: 1603 Exterior Wall mount - Replace (2) - The types of lights and their conditions vary throughout the property. - While replacement can occur on an as needed basis, it is our opinion and recommendation to replace all lights at the same time every years to maintain a consistent appearance throughout the property. - In addition, by replacing multiple fixtures, the association will be able to obtain a quantity discount for the fixtures. - We have established Reserves to replace the lights during the next painting cycle. See General Notes Approx. 134 Lights Life Expectancy: 20 Remaining Life: 1 Best Cost: $18,775 $140/light; Estimate to replace Carson Way: 1300, 1220, 1210, 1240, 1260, 1298, 1312, 1320 Crystal Way: 1253, 1213, 1221 Pool Building Worst Cost: $22,125 $165/light; Higher estimate for better quality Source of Information: Cost database Page 59 of 79

66 Comp #: 1604 Exterior Wall mount - Replace (3) - The types of lights and their conditions vary throughout the property. - While replacement can occur on an as needed basis, it is our opinion and recommendation to replace all lights at the same time every years to maintain a consistent appearance throughout the property. - In addition, by replacing multiple fixtures, the association will be able to obtain a quantity discount for the fixtures. - We have established Reserves to replace the lights during the next painting cycle. See General Notes Approx. 132 Lights Crystal Way: , 1315, 1261, 1301, 1321, 1337, 1341 Life Expectancy: 20 Remaining Life: 1 Best Cost: $18,500 $140/light; Estimate to replace Dillon Way: 1340, 1336, 1320 Sable Blvd: 1321 Worst Cost: $21,800 $165/light; Higher estimate for better quality Source of Information: Cost database Page 60 of 79

67 Comp #: 1605 Exterior Wall mount - Replace (4) - The types of lights and their conditions vary throughout the property. - While replacement can occur on an as needed basis, it is our opinion and recommendation to replace all lights at the same time every years to maintain a consistent appearance throughout the property. - In addition, by replacing multiple fixtures, the association will be able to obtain a quantity discount for the fixtures. - We have established Reserves to replace the lights during the next painting cycle. See General Notes Approx. 144 Lights Life Expectancy: 20 Remaining Life: 3 Best Cost: $20,175 $140/light; Estimate to replace Dillon Way: 1314, 1304, 1296, 1266, 1258 Sable Blvd: , 1259, 1301, 1299, 1261, 1221, 1219 Worst Cost: $23,775 $165/light; Higher estimate for better quality Source of Information: Cost database Page 61 of 79

68 Comp #: 1606 Exterior Wall mount - Replace (5) - The types of lights and their conditions vary throughout the property. - While replacement can occur on an as needed basis, it is our opinion and recommendation to replace all lights at the same time every years to maintain a consistent appearance throughout the property. - In addition, by replacing multiple fixtures, the association will be able to obtain a quantity discount for the fixtures. - We have established Reserves to replace the lights during the next painting cycle. See General Notes Approx. 144 Lights Life Expectancy: 20 Remaining Life: 4 Best Cost: $20,175 $140/light; Estimate to replace Crystal Way: 1348, 1282, 1272, 1232, 1242 Dillon Way: , 1226, 1237, 1245, 1277, 1285, 1349 Worst Cost: $23,775 $165/light; Higher estimate for better quality Source of Information: Cost database Page 62 of 79

69 Comp #: 1607 Tennis Court Lights - Replace - It was reported that these lights are functional and are working fine. - Due to the unpredictable life expectancy, replace as needed with operating funds. Tennis Courts (4) 20ft standards Life Expectancy: N/A Remaining Life: Best Cost: $0 Worst Cost: $0 Source of Information: Page 63 of 79

70 Comp #: 1701 Irrigation System - Complete Replacement (1) - This line item is for the area of the system that was replaced years ago. - In our experience, we have seen the need to replace older systems about years from the date of installation. - Remaining life is based on the reported age. Greenbelt, landscaped areas 1/5 of property Life Expectancy: 30 Remaining Life: 19 Best Cost: $148,200 Estimate to completely replace 1/5 of system - This line item is for the area of the system that was replaced years ago. - In our experience, we have seen the need to replace older systems about years from the date of installation. - Remaining life is based on the reported age. Worst Cost: $163,800 Higher estimate for more labor Source of Information: Research with contractor Page 64 of 79

71 Comp #: 1702 Irrigation System - Complete Replacement (2) - This line item is for the area of the system that was replaced years ago. - In our experience, we have seen the need to replace older systems about years from the date of installation. - Remaining life is based on the reported age. Greenbelt, landscaped areas 1/5 of property Life Expectancy: 30 Remaining Life: 17 Best Cost: $148,200 Estimate to completely replace 1/5 of system Worst Cost: $163,800 Higher estimate for more labor Source of Information: Research with contractor Page 65 of 79

72 Comp #: 1703 Irrigation System - Complete Replacement (3) - In our experience, we have seen the need to replace older systems about years from the date of installation. - Remaining life is based on the reported age. Greenbelt, landscaped areas 1/5 of property Life Expectancy: 30 Remaining Life: 0 Best Cost: $148,200 Estimate to completely replace 1/5 of system Worst Cost: $163,800 Higher estimate for more labor Source of Information: Research with contractor Page 66 of 79

73 Comp #: 1705 Irrigation System - Complete Replacement (4) - In our experience, we have seen the need to replace older systems about years from the date of installation. - Remaining life is based on the reported age. Greenbelt, landscaped areas 1/5 of property Life Expectancy: 30 Remaining Life: 1 Best Cost: $148,200 Estimate to completely replace 1/5 of system Worst Cost: $163,800 Higher estimate for more labor Source of Information: Research with contractor Page 67 of 79

74 Comp #: 1706 Irrigation System - Complete Replacement (5). - In our experience, we have seen the need to replace older systems about years from the date of installation. - Remaining life is based on the reported age. Greenbelt, landscaped areas 1/5 of property Life Expectancy: 30 Remaining Life: 2 Best Cost: $148,200 Estimate to completely replace 1/5 of system Worst Cost: $163,800 Higher estimate for more labor Source of Information: Cost database Page 68 of 79

75 Comp #: 1707 Backflow Devices - Replace - Devices can be rebuilt and repaired when needed as a maintenance issue. - It is very seldom that a complete system would need to be replaced due to normal wear and tear. - Replacement would be as a result of freezing conditions if system is not winterized properly or in a timely manner. - No Reserve funding is required due to difficulty of predicting a life expectancy and the fact that systems can be rebuilt an a minimal cost, as opposed to being replaced. Throughout Property Approx. 20 Devices Life Expectancy: 5 Remaining Life: Best Cost: $0 Worst Cost: $0 Source of Information: Page 69 of 79

76 Comp #: 1707 Controllers - Replace - The overall life expectancy of irrigation controllers typically ranges between years if properly maintained and under normal conditions. - Due to the varying types and ages of controllers, we have established a Reserve allowance for partial replacement of controllers every 4 years. - This line item should not be intended to be interpreted as complete replacement. Throughout Property (20) Clocks Life Expectancy: 4 Remaining Life: 0 Best Cost: $12,500 $2,500/clock; Estimate to replace 5 clocks Worst Cost: $15,000 $3,000/clock; Higher estimate Source of Information: Cost database Page 70 of 79

77 Comp #: 1802 Tree Trimming - Perform (1) - This line item is for large scale tree trimming that needs to be done every 15 years. - Due to the difficulty in determining an estimated trimming cost and the frequency of trimming, expenses associated with this component is typically considered an operating expense. - However, this has been added at the request of the BOD, due to the large scope of trees on the property. - The trimming has been split into 5 phases to ease budgeting concerns. Throughout Property Numerous Life Expectancy: 15 Remaining Life: 0 Best Cost: $12,200 Estimate for tree trimming Worst Cost: $14,900 Higher estimate for more labor Source of Information: Estimates received by client Page 71 of 79

78 Comp #: 1803 Tree Trimming - Perform (2) - This line item is for large scale tree trimming that needs to be done every 15 years. - Due to the difficulty in determining an estimated trimming cost and the frequency of trimming, expenses associated with this component is typically considered an operating expense. - However, this has been added at the request of the BOD, due to the large scope of trees on the property. - The trimming has been split into 5 phases to ease budgeting concerns. Throughout Property Numerous Life Expectancy: Remaining Life: 1 Best Cost: $12,200 Estimate for tree trimming Worst Cost: $14,900 Higher estimate for more labor Source of Information: Estimates received by client Page 72 of 79

79 Comp #: 1804 Tree Trimming - Perform (3) - This line item is for large scale tree trimming that needs to be done every 15 years. - Due to the difficulty in determining an estimated trimming cost and the frequency of trimming, expenses associated with this component is typically considered an operating expense. - However, this has been added at the request of the BOD, due to the large scope of trees on the property. - The trimming has been split into 5 phases to ease budgeting concerns. Throughout Property Numerous Life Expectancy: 15 Remaining Life: 2 Best Cost: $12,200 Estimate for tree trimming Worst Cost: $14,900 Higher estimate for more labor Source of Information: Estimates received by client Page 73 of 79

80 Comp #: 1805 Tree Trimming - Perform (4) - This line item is for large scale tree trimming that needs to be done every 15 years. - Due to the difficulty in determining an estimated trimming cost and the frequency of trimming, expenses associated with this component is typically considered an operating expense. - However, this has been added at the request of the BOD, due to the large scope of trees on the property. - The trimming has been split into 5 phases to ease budgeting concerns. Throughout Property Numerous Life Expectancy: 15 Remaining Life: 3 Best Cost: $12,200 Estimate for tree trimming Worst Cost: $14,900 Higher estimate for more labor Source of Information: Estimates received by client Page 74 of 79

81 Comp #: 1806 Tree Trimming - Perform (5) - This line item is for large scale tree trimming that needs to be done every 15 years. - Due to the difficulty in determining an estimated trimming cost and the frequency of trimming, expenses associated with this component is typically considered an operating expense. - However, this has been added at the request of the BOD, due to the large scope of trees on the property. - The trimming has been split into 5 phases to ease budgeting concerns. Throughout Property Numerous Life Expectancy: 15 Remaining Life: 4 Best Cost: $12,200 Estimate for tree trimming Worst Cost: $14,900 Higher estimate for more labor Source of Information: Estimates received by client Page 75 of 79

82 Comp #: 1807 Tree - Replacement/Major Maintenance - It is very difficult to predict a replacement cycle for trees as there are several factors that will contribute to a tree dying. - Factors such as disease, infestation of insects, heavy snow storms, etc. can all attribute to eventual tree replacement. - Since it is difficult to predict when the replacement will be necessary, Reserve funding is typically not a factor. - However, per the request of the association, an allowance for periodic replacement has been included. Throughout Numerous types, sizes Life Expectancy: 3 Remaining Life: 2 Best Cost: $12,000 Allowance for some replacement Worst Cost: $14,000 Higher allowance for more replacement Source of Information: Client provided cost information Page 76 of 79

83 Comp #: 1811 Concrete Drain Swales - Repair - While concrete has a long life expectancy, periodic repairs should be anticipated. - However, due to the small area, we recommend treating repairs on an as needed basis with general operating funds. - Therefore, separate Reserve funding is not required at this time. Various locations in landscaped areas Approx. 2,825 GSF Life Expectancy: N/A Remaining Life: Best Cost: $0 Worst Cost: $0 Source of Information: Page 77 of 79

84 Comp #: 1904 Storage Shed - Replace Adjacent to pool building (1) 15 x 11 shed Life Expectancy: 20 Remaining Life: 4 Best Cost: $5,000 Estimate tor eplace and assemble Worst Cost: $65,000 Higher estimate Source of Information: Cost database Page 78 of 79

85 Comp #: 2001 Sewer System - Underground utility systems are not typically included in a Reserve report. - The reason behind this is due to the unpredictable nature of when/if replacement or major repairs will be necessary and also the variable nature of how much these repairs, if needed, would cost. - However, due to the association's history of repairs, we have included and allowance for major repairs every 2 years. - Remaining life is based on the age of the property. Underground utility line (1) Line per unit Life Expectancy: 2 Remaining Life: 1 Best Cost: $32,400 Allowance for major repairs Worst Cost: $39,600 Higher allowance for more repairs Source of Information: Client provided cost information Page 79 of 79

86 Funding Summary For Aspens Townhomes Beginning Assumptions Financial Information Source Research With Client # of units 236 Fiscal Year End December 31, 2019 Monthly Dues from 2018 budget $65, Monthly Reserve Allocation from 2018 Budget $17, Projected Starting Reserve Balance (as of 1/1/2019) $461,729 Reserve Balance: Average Per Unit $1,956 Ideal Starting Reserve Balance (as of 1/1/2019) $3,601,082 Ideal Reserve Balance: Average Per Unit $15,259 Economic Factors Past 20 year Average Inflation Rate (Based on CCI) 3.75% Current Average Interest Rate 1.00% Current Reserve Status Current Balance as a % of Ideal Balance 13% Recommendations for 2019 Fiscal Year Monthly Reserve Allocation $34,400 Per Unit $ Minimum Monthly Reserve Allocation $28,000 Per Unit $ Primary Annual Increases 4.50% # of Years 30 Special Assessment ( ) $590,000 Per Unit $2,500 Changes From Prior Year (2018 to 2019) Increase/Decrease to Reserve Allocation $16,835 as Percentage 96% Average Per Unit $

87 Percent Funded Graph For Aspens Townhomes Percent Funded Recommended 120% Monthly Reserve Allocation from 2018 Budget Minimum 100% % Level of Funding 80% 60% 40% 20% 0% Year 2

88 Category Asset # Asset Name UL RUL Best Cost Worst Cost Roofing 102 Flat Roof - PVC - Replace 20 0 $51,000 $61, TPO Flat Roof - Replace $705,000 $846, Comp Shingle - Replace (1) 25 0 $140,000 $161, Comp Shingle - Replace (2) 25 1 $175,000 $181, Comp Shingle - Replace (3) 25 2 $245,000 $281, Comp Shingle - Replace (4) 25 3 $245,000 $281, Comp Shingle - Replace (5) 25 4 $210,000 $241, Comp Shingle - Replace (6) $35,000 $40, Rain gutters/downspouts - Repair 5 0 $33,650 $40,650 Painted Surfaces 204 Building Ext Surfaces - Repaint (1) 6 0 $114,400 $127, Building Ext Surfaces - Repaint (2) 6 1 $117,900 $131, Building Ext Surfaces - Repaint (3) 6 2 $114,400 $127, Building Ext Surfaces - Repaint (4) 6 3 $124,800 $139, Building Ext Surfaces - Repaint (5) 6 4 $145,600 $162, Wood Fencing - Restain (1) 6 0 $6,545 $7, Wood Fencing - Restain (2) 6 1 $9,425 $10, Wood Fencing - Restain (3) 6 2 $7,750 $8, Wood Fencing - Restain (4) 6 3 $7,150 $8, Wood Fencing - Restain (5) 6 4 $8,350 $9,525 Siding Materials 303 Wood Siding - Major Repairs (1) 6 0 $39,600 $52, Wood Siding - Major Repairs (2) 6 1 $39,600 $52, Wood Siding - Major Repairs (3) 6 2 $39,600 $52, Wood Siding - Major Repairs (4) 6 3 $43,200 $57, Wood Siding - Major Repairs (5) 6 4 $50,400 $67, Fiber Cement Siding - Replace N/A $0 $0 Drive Materials 401 Asphalt - Overlay 24 4 $126,700 $149, Asphalt - Seal Coat/crack fill 4 0 $12,675 $14, Concrete - Partial Replace 4 2 $7,150 $8,450 Property Access 502 Garage Doors - Replace N/A $0 $0 503 Garage Access Doors - Replace N/A $0 $0 Walking Surfaces 601 Concrete Sidewalks - Repair 4 0 $20,000 $24, Wood Deck/Stairs - Major Repairs 6 0 $75,000 $90, Pool Deck - Replace 20 0 $61,325 $71, Composite Deck - Replace $98,610 $109,000 Mechanical Equip. 703 Hot Water Heater Tank - Replace 18 0 $3,500 $4,500 Prop. Identification 801 Identification Signs - Replace 20 4 $4,000 $5, Mailboxes - Replace 20 4 $27,000 $31, Private Property Signs - Replace (1) 15 5 $3,600 $4, Private Property Signs - Replace (2) $3,600 $4,450 Fencing/Walls 1001 Wood Fencing - Replace (1) 25 6 $37,575 $51, Wood Fencing - Replace (2) 25 7 $45,750 $53, Wood Fencing - Replace (3) 25 8 $31,800 $37, Wood Fencing - Replace (4) 25 9 $34,700 $40, Wood Fencing - Replace (5) $34,700 $40, Wood Fencing - Replace (North Perimet 20 3 $25,675 $30, Chain Link Fencing - Replace 25 0 $18,450 $20,700 Pool/Spa 1101 Pool - Resurface 12 3 $23,850 $27, Coping Stone/Tile - Replace 24 3 $12,350 $14, Pool Heater - Replace $8,500 $12, Pool Filter - Replace $1,800 $2,200 3

89 Category Asset # Asset Name UL RUL Best Cost Worst Cost Pool/Spa 1111 Pool Pump - Replace N/A $0 $ Pool Cover - Replace 10 8 $8,000 $9, Pool Furniture - Replace 8 0 $3,500 $4,500 Courts 1201 Tennis Court Asphalt - Replace 24 0 $125,000 $135, Tennis Court - Recoat/Paint 6 0 $17,000 $20,000 Recreation Equip Pet Waste Pick Up Stations - Replace N/A $0 $0 Interiors 1413 Restroom - Remodel 25 4 $8,000 $10,000 Light Fixtures 1602 Exterior Wall mount - Replace (1) 20 0 $21,850 $25, Exterior Wall mount - Replace (2) 20 1 $18,775 $22, Exterior Wall mount - Replace (3) 20 1 $18,500 $21, Exterior Wall mount - Replace (4) 20 3 $20,175 $23, Exterior Wall mount - Replace (5) 20 4 $20,175 $23, Tennis Court Lights - Replace N/A $0 $0 Irrig. System 1701 Irrigation System - Complete Replaceme $148,200 $163, Irrigation System - Complete Replaceme $148,200 $163, Irrigation System - Complete Replaceme 30 0 $148,200 $163, Irrigation System - Complete Replaceme 30 1 $148,200 $163, Irrigation System - Complete Replaceme 30 2 $148,200 $163, Backflow Devices - Replace 5 $0 $ Controllers - Replace 4 0 $12,500 $15,000 Landscaping 1802 Tree Trimming - Perform (1) 15 0 $12,200 $14, Tree Trimming - Perform (2) 1 $12,200 $14, Tree Trimming - Perform (3) 15 2 $12,200 $14, Tree Trimming - Perform (4) 15 3 $12,200 $14, Tree Trimming - Perform (5) 15 4 $12,200 $14, Tree - Replacement/Major Maintenance 3 2 $12,000 $14, Concrete Drain Swales - Repair N/A $0 $0 Maintenance Equip Storage Shed - Replace 20 4 $5,000 $65,000 Miscellaneous 2001 Sewer System 2 1 $32,400 $39,600 4

90 Significant Components For Aspens Townhomes Significance: Ave Curr (Curr Cost/UL) ID Asset Name UL RUL Cost As $ As % 102 Flat Roof - PVC - Replace 20 0 $56,100 $2, % 104 TPO Flat Roof - Replace $775,500 $35, % 105 Comp Shingle - Replace (1) 25 0 $150,500 $6, % 106 Comp Shingle - Replace (2) 25 1 $178,063 $7, % 107 Comp Shingle - Replace (3) 25 2 $263,375 $10, % 108 Comp Shingle - Replace (4) 25 3 $263,375 $10, % 109 Comp Shingle - Replace (5) 25 4 $225,750 $9, % 111 Comp Shingle - Replace (6) $37,625 $1, % 120 Rain gutters/downspouts - Repair 5 0 $37,150 $7, % 204 Building Ext Surfaces - Repaint (1) 6 0 $121,000 $20, % 205 Building Ext Surfaces - Repaint (2) 6 1 $124,875 $20, % 206 Building Ext Surfaces - Repaint (3) 6 2 $121,000 $20, % 207 Building Ext Surfaces - Repaint (4) 6 3 $132,000 $22, % 208 Building Ext Surfaces - Repaint (5) 6 4 $154,000 $25, % 209 Wood Fencing - Restain (1) 6 0 $7,023 $1, % 210 Wood Fencing - Restain (2) 6 1 $10,100 $1, % 211 Wood Fencing - Restain (3) 6 2 $8,300 $1, % 212 Wood Fencing - Restain (4) 6 3 $7,663 $1, % 213 Wood Fencing - Restain (5) 6 4 $8,938 $1, % 303 Wood Siding - Major Repairs (1) 6 0 $46,200 $7, % 304 Wood Siding - Major Repairs (2) 6 1 $46,200 $7, % 305 Wood Siding - Major Repairs (3) 6 2 $46,200 $7, % 306 Wood Siding - Major Repairs (4) 6 3 $50,400 $8, % 307 Wood Siding - Major Repairs (5) 6 4 $58,800 $9, % 401 Asphalt - Overlay 24 4 $137,875 $5, % 402 Asphalt - Seal Coat/crack fill 4 0 $13,800 $3, % 403 Concrete - Partial Replace 4 2 $7,800 $1, % 601 Concrete Sidewalks - Repair 4 0 $22,000 $5, % 607 Wood Deck/Stairs - Major Repairs 6 0 $82,500 $13, % 608 Pool Deck - Replace 20 0 $66,438 $3, % 609 Composite Deck - Replace $103,805 $4, % 703 Hot Water Heater Tank - Replace 18 0 $4,000 $ % 801 Identification Signs - Replace 20 4 $4,500 $ % 803 Mailboxes - Replace 20 4 $29,250 $1, % 805 Private Property Signs - Replace (1) 15 5 $4,025 $ % 806 Private Property Signs - Replace (2) $4,025 $ % 1001 Wood Fencing - Replace (1) 25 6 $44,343 $1, % 1002 Wood Fencing - Replace (2) 25 7 $49,775 $1, % 1003 Wood Fencing - Replace (3) 25 8 $34,600 $1, % 1004 Wood Fencing - Replace (4) 25 9 $37,750 $1, % 1005 Wood Fencing - Replace (5) $37,750 $1, % 1006 Wood Fencing - Replace (North Perimeter) 20 3 $27,938 $1, % 1007 Chain Link Fencing - Replace 25 0 $19,575 $ % 1101 Pool - Resurface 12 3 $25,838 $2, % 1104 Coping Stone/Tile - Replace 24 3 $13,300 $ % 1105 Pool Heater - Replace $10,250 $ % 1108 Pool Filter - Replace $2,000 $ % 1113 Pool Cover - Replace 10 8 $8,750 $ % 1121 Pool Furniture - Replace 8 0 $4,000 $ % 1201 Tennis Court Asphalt - Replace 24 0 $130,000 $5, % 1202 Tennis Court - Recoat/Paint 6 0 $18,500 $3, % 1413 Restroom - Remodel 25 4 $9,000 $ % 1602 Exterior Wall mount - Replace (1) 20 0 $23,800 $1, % 5

91 Significant Components For Aspens Townhomes Significance: Ave Curr (Curr Cost/UL) ID Asset Name UL RUL Cost As $ As % 1603 Exterior Wall mount - Replace (2) 20 1 $20,450 $1, % 1604 Exterior Wall mount - Replace (3) 20 1 $20,150 $1, % 1605 Exterior Wall mount - Replace (4) 20 3 $21,975 $1, % 1606 Exterior Wall mount - Replace (5) 20 4 $21,975 $1, % 1701 Irrigation System - Complete Replacement $156,000 $5, % 1702 Irrigation System - Complete Replacement $156,000 $5, % 1703 Irrigation System - Complete Replacement 30 0 $156,000 $5, % 1705 Irrigation System - Complete Replacement 30 1 $156,000 $5, % 1706 Irrigation System - Complete Replacement 30 2 $156,000 $5, % 1707 Backflow Devices - Replace 5 0 $0 $ % 1707 Controllers - Replace 4 0 $13,750 $3, % 1802 Tree Trimming - Perform (1) 15 0 $13,550 $ % 1804 Tree Trimming - Perform (3) 15 2 $13,550 $ % 1805 Tree Trimming - Perform (4) 15 3 $13,550 $ % 1806 Tree Trimming - Perform (5) 15 4 $13,550 $ % 1807 Tree - Replacement/Major Maintenance 3 2 $13,000 $4, % 1904 Storage Shed - Replace 20 4 $35,000 $1, % 2001 Sewer System 2 1 $36,000 $18, % 6

92 Significant Components Graph For Aspens Townhomes 104 TPO Flat Roof - Replace 208 Building Ext Surfaces - Repaint (5) 207 Building Ext Surfaces - Repaint (4) 205 Building Ext Surfaces - Repaint (2) All Other 9% 7% 6% 6% 72% Significance: (Curr Cost/UL) Asset ID Asset Name UL RUL Average Curr. Cost As $ As % 104 TPO Flat Roof - Replace $775,500 $35,250 9% 208 Building Ext Surfaces - Repaint (5) 6 4 $154,000 $25,667 7% 207 Building Ext Surfaces - Repaint (4) 6 3 $132,000 $22,000 6% 205 Building Ext Surfaces - Repaint (2) 6 1 $124,875 $20,813 6% All Other See Expanded Table on Page 4 For Additional Breakdown $270,458 72% 7

93 Yearly Summary For Aspens Townhomes Fiscal Year Fully Funded Starting Reserve Percent Annual Reserve Rec. Special Interest Reserve Start Balance Balance Funded Contribs Ass'mnt Income Expenses 2019 $3,601,082 $461,729 13% $412,800 $590,000 $7,687 $985, $3,101,486 $486,331 16% $431,376 $590,000 $9,895 $614, $2,983,512 $903,571 30% $450,788 $590,000 $13,867 $677, $2,810,574 $1,280,924 46% $471,073 $590,000 $17,840 $661, $2,663,559 $1,698,667 64% $492,272 $0 $15,183 $866, $2,313,856 $1,339,234 58% $514,424 $0 $15,493 $108, $2,754,840 $1,760,752 64% $537,573 $0 $18,338 $408, $2,918,731 $1,908,380 65% $561,764 $0 $20,258 $345, $3,172,147 $2,144,983 68% $587,043 $0 $22,573 $383, $3,414,766 $2,371,457 69% $613,460 $0 $25,059 $367, $3,702,316 $2,642,535 71% $641,066 $0 $27,557 $439, $3,945,723 $2,871,232 73% $669,914 $0 $25,923 $1,251, $3,377,304 $2,315,584 69% $700,060 $0 $24,241 $505, $3,583,697 $2,534,717 71% $731,563 $0 $27,378 $350, $3,980,971 $2,943,183 74% $764,483 $0 $31,722 $335, $4,432,271 $3,403,984 77% $798,885 $0 $35,551 $529, $4,723,893 $3,709,304 79% $834,834 $0 $38,965 $496, $5,085,963 $4,086,972 80% $872,402 $0 $43,387 $408, $5,578,611 $4,594,114 82% $911,660 $0 $47,717 $600, $5,918,360 $4,953,427 84% $952,685 $0 $50,638 $778, $6,114,118 $5,178,397 85% $995,556 $0 $52,164 $967, $6,150,582 $5,258,911 86% $1,040,356 $0 $55,155 $577, $6,622,912 $5,776,709 87% $1,087,172 $0 $59,730 $749, $6,966,520 $6,174,356 89% $1,136,094 $0 $66,575 $230, $7,893,774 $7,146,363 91% $1,187,219 $0 $71,078 $1,329, $7,749,732 $7,075,184 91% $1,240,643 $0 $71,958 $1,065, $7,909,578 $7,322,470 93% $1,296,472 $0 $75,176 $974, $8,205,713 $7,719,167 94% $1,354,814 $0 $77,178 $1,428, $8,080,634 $7,722,970 96% $1,415,780 $0 $75,103 $1,909, $7,490,485 $7,304,011 98% $1,479,490 $0 $76,453 $866,778 8

94 Reserve Contributions For Aspens Townhomes Reserve Contributions Recommended Current Minimum $140,000 $120,000 $100,000 Monthly Contribution $80,000 $60,000 $40,000 $20,000 $ Year 9

95 Component Funding Information For Aspens Townhomes Ave Current Current Fund ID Component Name Cost Balance Balance Monthly 102 Flat Roof - PVC - Replace $56,100 $56,100 $56,100 $ TPO Flat Roof - Replace $775,500 $387,750 $0 $3, Comp Shingle - Replace (1) $150,500 $150,500 $150,500 $ Comp Shingle - Replace (2) $178,063 $170,940 $0 $ Comp Shingle - Replace (3) $263,375 $242,305 $0 $ Comp Shingle - Replace (4) $263,375 $231,770 $0 $ Comp Shingle - Replace (5) $225,750 $189,630 $0 $ Comp Shingle - Replace (6) $37,625 $7,525 $0 $ Rain gutters/downspouts - Repair $37,150 $37,150 $37,150 $ Building Ext Surfaces - Repaint (1) $121,000 $121,000 $121,000 $1, Building Ext Surfaces - Repaint (2) $124,875 $104,063 $0 $1, Building Ext Surfaces - Repaint (3) $121,000 $80,667 $0 $1, Building Ext Surfaces - Repaint (4) $132,000 $66,000 $0 $2, Building Ext Surfaces - Repaint (5) $154,000 $51,333 $0 $2, Wood Fencing - Restain (1) $7,023 $7,023 $7,023 $ Wood Fencing - Restain (2) $10,100 $8,417 $0 $ Wood Fencing - Restain (3) $8,300 $5,533 $0 $ Wood Fencing - Restain (4) $7,663 $3,831 $0 $ Wood Fencing - Restain (5) $8,938 $2,979 $0 $ Wood Siding - Major Repairs (1) $46,200 $46,200 $46,200 $ Wood Siding - Major Repairs (2) $46,200 $38,500 $0 $ Wood Siding - Major Repairs (3) $46,200 $30,800 $0 $ Wood Siding - Major Repairs (4) $50,400 $25,200 $0 $ Wood Siding - Major Repairs (5) $58,800 $19,600 $0 $ Asphalt - Overlay $137,875 $114,896 $0 $ Asphalt - Seal Coat/crack fill $13,800 $13,800 $13,800 $ Concrete - Partial Replace $7,800 $3,900 $0 $ Concrete Sidewalks - Repair $22,000 $22,000 $22,000 $ Wood Deck/Stairs - Major Repairs $82,500 $82,500 $7,957 $1, Pool Deck - Replace $66,438 $66,438 $0 $ Composite Deck - Replace $103,805 $12,457 $0 $ Hot Water Heater Tank - Replace $4,000 $4,000 $0 $ Identification Signs - Replace $4,500 $3,600 $0 $ Mailboxes - Replace $29,250 $23,400 $0 $ Private Property Signs - Replace (1) $4,025 $2,683 $0 $ Private Property Signs - Replace (2) $4,025 $268 $0 $ Wood Fencing - Replace (1) $44,343 $33,700 $0 $ Wood Fencing - Replace (2) $49,775 $35,838 $0 $ Wood Fencing - Replace (3) $34,600 $23,528 $0 $ Wood Fencing - Replace (4) $37,750 $24,160 $0 $ Wood Fencing - Replace (5) $37,750 $22,650 $0 $ Wood Fencing - Replace (North Perimeter) $27,938 $23,747 $0 $ Chain Link Fencing - Replace $19,575 $19,575 $0 $ Pool - Resurface $25,838 $19,378 $0 $ Coping Stone/Tile - Replace $13,300 $11,638 $0 $ Pool Heater - Replace $10,250 $3,986 $0 $ Pool Filter - Replace $2,000 $333 $0 $ Pool Cover - Replace $8,750 $1,750 $0 $ Pool Furniture - Replace $4,000 $4,000 $0 $ Tennis Court Asphalt - Replace $130,000 $130,000 $0 $ Tennis Court - Recoat/Paint $18,500 $18,500 $0 $ Ideal 10

96 ID Component Name Ave Current Cost Ideal Balance Current Fund Balance Monthly 1413 Restroom - Remodel 9000 $7,560 $0 $ Exterior Wall mount - Replace (1) $23,800 $0 $ Exterior Wall mount - Replace (2) $19,428 $0 $ Exterior Wall mount - Replace (3) $19,143 $0 $ Exterior Wall mount - Replace (4) $18,679 $0 $ Exterior Wall mount - Replace (5) $17,580 $0 $ Irrigation System - Complete Replacement (1) $57,200 $0 $ Irrigation System - Complete Replacement (2) $67,600 $0 $ Irrigation System - Complete Replacement (3) $156,000 $0 $ Irrigation System - Complete Replacement (4) $150,800 $0 $ Irrigation System - Complete Replacement (5) $145,600 $0 $ Backflow Devices - Replace 0 $0 $0 $ Controllers - Replace $13,750 $0 $ Tree Trimming - Perform (1) $13,550 $0 $ Tree Trimming - Perform (3) $11,743 $0 $ Tree Trimming - Perform (4) $10,840 $0 $ Tree Trimming - Perform (5) $9,937 $0 $ Tree - Replacement/Major Maintenance $4,333 $0 $ Storage Shed - Replace $28,000 $0 $ Sewer System $18,000 $0 $1,

97 Yearly Cash Flow For Aspens Townhomes Year Starting Balance $461,729 $486,331 $903,571 $1,280,924 $1,698,667 Reserve Income $412,800 $431,376 $450,788 $471,073 $492,272 Interest Earnings $7,687 $9,895 $13,867 $17,840 $15,183 Special Assessments $590,000 $590,000 $590,000 $590,000 $0 Funds Available $1,472,216 $1,517,602 $1,958,225 $2,359,837 $2,206,122 Reserve Expenditures $985,885 $614,031 $677,302 $661,171 $866,888 Ending Balance $486,331 $903,571 $1,280,924 $1,698,667 $1,339,234 Year Starting Balance $1,339,234 $1,760,752 $1,908,380 $2,144,983 $2,371,457 Reserve Income $514,424 $537,573 $561,764 $587,043 $613,460 Interest Earnings $15,493 $18,338 $20,258 $22,573 $25,059 Special Assessments $0 $0 $0 $0 $0 Funds Available $1,869,151 $2,316,663 $2,490,402 $2,754,598 $3,009,977 Reserve Expenditures $108,399 $408,283 $345,419 $383,141 $367,442 Ending Balance $1,760,752 $1,908,380 $2,144,983 $2,371,457 $2,642,535 Year Starting Balance $2,642,535 $2,871,232 $2,315,584 $2,534,717 $2,943,183 Reserve Income $641,066 $669,914 $700,060 $731,563 $764,483 Interest Earnings $27,557 $25,923 $24,241 $27,378 $31,722 Special Assessments $0 $0 $0 $0 $0 Funds Available $3,311,158 $3,567,069 $3,039,885 $3,293,657 $3,739,389 Reserve Expenditures $439,926 $1,251,485 $505,169 $350,474 $335,404 Ending Balance $2,871,232 $2,315,584 $2,534,717 $2,943,183 $3,403,984 Year Starting Balance $3,403,984 $3,709,304 $4,086,972 $4,594,114 $4,953,427 Reserve Income $798,885 $834,834 $872,402 $911,660 $952,685 Interest Earnings $35,551 $38,965 $43,387 $47,717 $50,638 Special Assessments $0 $0 $0 $0 $0 Funds Available $4,238,420 $4,583,103 $5,002,761 $5,553,491 $5,956,750 Reserve Expenditures $529,117 $496,131 $408,647 $600,064 $778,352 Ending Balance $3,709,304 $4,086,972 $4,594,114 $4,953,427 $5,178,397 Year Starting Balance $5,178,397 $5,258,911 $5,776,709 $6,174,356 $7,146,363 Reserve Income $995,556 $1,040,356 $1,087,172 $1,136,094 $1,187,219 Interest Earnings $52,164 $55,155 $59,730 $66,575 $71,078 Special Assessments $0 $0 $0 $0 $0 Funds Available $6,226,117 $6,354,422 $6,923,610 $7,377,026 $8,404,659 Reserve Expenditures $967,206 $577,713 $749,254 $230,663 $1,329,475 Ending Balance $5,258,911 $5,776,709 $6,174,356 $7,146,363 $7,075,184 Year Starting Balance $7,075,184 $7,322,470 $7,719,167 $7,722,970 $7,304,011 Reserve Income $1,240,643 $1,296,472 $1,354,814 $1,415,780 $1,479,490 Interest Earnings $71,958 $75,176 $77,178 $75,103 $76,453 Special Assessments $0 $0 $0 $0 $0 Funds Available $8,387,785 $8,694,118 $9,151,158 $9,213,853 $8,859,955 Reserve Expenditures $1,065,315 $974,952 $1,428,188 $1,909,842 $866,778 Ending Balance $7,322,470 $7,719,167 $7,722,970 $7,304,011 $7,993,177 12

98 Yearly Expenditures Graph For Aspens Townhomes Reserve Expenditures $2,000,000 $1,800,000 $1,600,000 $1,400,000 Annual Totals $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Year