Calusa Point Association, Inc. Miami, Florida File #

Transcription

1 A FULL RESERVE STUDY FOR Miami, Florida File # FOR PERIOD: January 1, 2014 December 31, 2014 PREPARED BY GAB ROBINS, A DIVISION OF CUNNINGHAM LINDSEY 3300 W. LAKE MARY BLVD. SUITE 350 LAKE MARY, FLORIDA (800) ext. 257 (FL only) (407) ext. 257

2 3300 W. Lake Mary Blvd. Suite 350 Lake Mary, FL T: x 257 F: service@gabvalue.com On-Line: August 1, 2013 Attn: Ms. Natalie Cedeno, Property Manager c/o PO Box Miami, FL Dear Ms. Cedeno: On July 9, 2013, we completed an on-site inspection of 's common area reserve items. The intent of this reserve study report is to show cash reserves necessary for the future repair or replacement of expendable components incorporated into the subject property. The purpose of this report is to aid in making a determination for cash reserves that are needed to repair or replace short-lived building and/or site components. The report identifies each component selected, it s estimated useful life, adjusted life, scheduled replacement date, and current cost to repair/replace. The useful and remaining lives of the building components in this study, as well as the current replacement costs, have been selected from market standards, cost estimating services, and consideration of actual recent costs incurred by the association for reserve upgrades. This report is classified as a full reserve study under the guidelines of the National Reserve Study Standards of the Community Associations Institute, and conforms to the Community Associations Institute Professional Reserve Specialist Code of Ethics. The Reserve Specialist/GAB Robins have no relationships with the association that would result in actual or perceived conflicts of interest. This report is our opinion and based upon observed conditions and state of repair. Actual determinations of the current conditions and state of repair for certain items may be beyond the scope of this analysis. Items may not last as long as projected or may exceed their estimated lives. Influences such as weather, catastrophe, improper maintenance, physical abuse, or abnormal use can affect these lives and/or replacement costs. When such occurrences happen, another inspection should be made and a new revised study prepared. While we have attempted to create a useful tool for the association to plan their needs, the actual reserves set aside are solely at the association s discretion. The findings of this study are not for use in performing an audit, quality/forensic analyses, or background checks of historical records. In completing this report, the reserve specialist completed the physical on-site inspection of the subject property. Appropriate measurements and counts were taken to determine quantities (blueprints were not

3 available to aid in the determination of quantities). No destructive testing methods (i.e. roof core sampling, etc.) were utilized during the inspection. Current financial data, including the actual or projected reserve fund balance(s) as of the analysis date, and property histories, provided by you, were utilized in the completion of this report. This data was not audited, and was assumed to be complete and correct. The reserve specialist estimated the repair/replacement cost taking into account contingencies inherent to this type of work. The report was prepared utilizing the information gathered in the field and the costs estimated by the reserve specialist. Respectfully submitted, Jon A. Dawson, RS Reserve Specialist, Community Associations Institute, (RS#254)

4 TABLE OF CONTENTS Project Overview Property Location Reserve Study Funding Analysis Executive Summary Reserve Budget Comparison Component Funding Analysis Component Funding Analysis - Category Component Funding Analysis - Items Item Parameter - Category - Chart Item Parameters - Detail Item Parameters - Full Detail Expenditures - Description Cash Flow - Annual Cash Flow - Monthly Cash Flow - Chart Supplementary Information Addendum Chapter 720 Florida Statutes Terms and Definition Annual Update Program Page 4

5 PROJECT OVERVIEW Project Overview The subject of this reserve study is the common areas within, a 274 unit residential development located in Miami, Florida. The common areas were constructed at or near June 1, 1981, and include a pool house, gazebo, mailbox clusters, swimming pool, tennis courts, security barrier gates, video surveillance system, asphalt paved roadways and parking areas, concrete sidewalks and curbing, entry and street signage, perimeter fencing, street/site lighting, landscaping and irrigation systems, and drainage and retention systems. As of the date of our latest physical inspection, the common areas were observed to be in average overall condition. Other than the observed fair/poor condition of the roadways, pool house and guardhouse roof, no other significant items of deferred maintenance noted. The pool house is single story building of concrete block/stucco construction, with painted stucco exteriors and pitched tile roofing. The pool house supports a manager s office, men s and women s restrooms, covered veranda, and typical storage and mechanical rooms. The interior finishes are representative of a good quality property, with upgraded ceramic tile flooring, painted gypsum board interior walls and ceilings, good quality built ins (doors/frames, vanities, etc., and plumbing and electrical fixtures). The adjacent pool is of standard concrete/gunite construction, and is supported by concrete decking, perimeter fencing and gates, and inventories of equipment and deck furniture. The tennis courts are asphalt paved, with perimeter fencing and gates. Reserves are only calculated for the replacement of short-lived building or site components. This includes components that require replacement prior to the overall estimated end life of the buildings or structures. This report is designed to provide reasonable, appropriate budgetary cost and useful life data based on market standards for the subject s property type and in compliance with Florida statutes. Florida Statutes require consideration for roofs, exterior paint and/or waterproofing, pavement and all items that have an estimated repair or replacement cost above 10,000. We are unaware of any private reserve requirements. Page 5

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9 PROPERTY LOCATION Property Location

10 RESERVE STUDY FUNDING ANALYSIS Reserve Study Funding Analysis There are two generally accepted means of estimating reserves; the Component Funding Analysis and the Cash Flow Analysis methodologies. The Component Funding Analysis (or Straight Line Method) calculates the annual contribution amount for each individual line item component by dividing the component s unfunded balance by its remaining useful life. A component s unfunded balance is its replacement cost less the reserve balance in the component at the beginning of the analysis period. The annual contribution rate for each individual line item component is then summed to calculate the total annual contribution rate for this analysis. The Cash Flow Analysis (or Pooling Method) is a method of calculating reserve contributions where contributions to the reserve funds are designed to offset the variable annual expenditures from the reserve fund. This analysis recognizes interest income attributable to reserve accounts over the period of the analysis. Funds from the beginning balances are pooled together and a yearly contribution rate is calculated to arrive at a positive cash flow and reserve account balance to adequately fund the future projected expenditures throughout the period of the analysis. If the association maintains a pooled account for reserves, the amount of the contribution to the pooled reserve account as disclosed on the proposed budget shall be not less than that required to ensure that the balance on hand at the beginning of the period for which the budget will go into effect plus the projected annual cash inflows over the remaining estimated useful lives of all of the assets that make up the reserve pool are equal to or greater than the projected annual cash outflows over the remaining estimated useful lives of all of the assets that make up the reserve pool, based on the current reserve analysis. The projected annual cash inflows may include estimated earnings from investment of principal; the association may include annual percentage increases in costs for the reserve components, but these increases are not mandated. Fully funded reserve contributions utilizing this methodology may not include future special assessments, and the annual funding levels cannot include percentage increases. In our Cash Flow Analysis calculations, we do not include percentage increases in construction costs/inflation. While future costs are expected to be higher than today s costs, which is supported by our analysis of past indexes/trends, increases in costs should be recognized as the association estimates current repair/replacement costs during their annual calculations of full reserve funding. A current cost estimate during the current fiscal year would theoretically be lower than a current cost for future fiscal years. That way the estimates of current cost moving forward will eventually represent current costs as of the date of forecast expenditure. Funding the reserves annually on that basis should ensure that adequate monies are available as of the date of expense, assuming that the current cost estimate is appropriate and that the reserve was fully funded since its last repair/replacement project was completed. As of July 1, 2007, homeowner s associations are mandated by Florida Statute 720 to include a disclaimer in their annual budgets if reserves are excluded from the budget. If homeowner s associations have previously funded reserves, they must include full funding reserve estimates under similar criteria as condominium associations in the state of Florida. A copy of these requirements is included in the addendum to this report. Page 10

11 EXECUTIVE SUMMARY Executive Summary PROPERTY DATA Property Name: Property Location: Miami, Florida Property Type: HOA Total Units: 274 Report Run : August 1, 2013 Budget Year Begins: January 1, 2014 Budget Year Ends: December 31, 2014 PROJECTED COMPONENT CATEGORIES AND PARAMETERS Component Categories in Reserve Analysis: 1. Common Area Interiors 2. Painting & Waterproofing 3. Pavement 4. Pool 5. Roofs 6. Security 7. Site Improvements 8. Tennis Courts Total current cost of all reserve components in reserve analysis: Estimated beginning reserve fund balance for reserve analysis*: Total number of components scheduled for replacement in the 2014 budget year: Total cost of components scheduled for replacement in the 2014 budget year: 999, , ,253 ANALYSIS RESULTS COMPONENT FUNDING ANALYSIS Current annual reserve funding contributions amount (2013 Budget): Recommended annual reserve funding contribution amount: Increase (decrease) between current and recommended annual contribution amounts: Increase (decrease) between current and recommended annual contribution amounts: 59, , , % 59, ,400 44,700 75% ANALYSIS RESULTS CASH FLOW ANALYSIS Current annual reserve funding contributions amount (2013 Budget): Recommended annual reserve funding contribution amount: Increase (decrease) between current and recommended annual contribution amounts: Increase (decrease) between current and recommended annual contribution amounts: Page 11

12 RESERVE BUDGET COMPARISON Reserve Budget Comparison The previous page provides a comparison of the association s approved fiscal year 2013 reserve contribution level and our estimates for full reserve funding for fiscal year The funding requirement estimated for fiscal year 2014 via both the Component Funding Analysis and Cash Flow Funding Analysis is significantly higher than the association s approved fiscal year 2013 contribution level. Based on our Component Funding Analysis model, the reserves as analyzed in this report suggest that in order to fully fund in fiscal year 201 4, the contribution should be 195,055. The Component Funding Analysis is a straight-line accounting procedure that was previously mandated by the State of Florida for condominiums, and has been a popular method of reserve computation by condominiums, cooperatives, homeowner s associations, property owner s associations, country clubs, etc. Based on the Cash Flow Analysis method, at level annual contributions, the association can fully fund reserves at 104,400 in fiscal year This level of funding could remain stable through fiscal year 2016; as of fiscal year 201 7, at which time the major near future reserve expenditures will have been funded/completed, the funding level could be decreased by a factor of 20%, to 83,520. This level of funding could remain stable over the remainder of the study period. This funding plan would provide adequate funds to offset planned reserve expenditures and maintain positive reserve fund balance. In this analysis we have utilized a 0.75% rate of return on reserve funds invested over the study period (assuming safe investment in CDs, money market accounts, etc.). The Cash Flow Analysis utilizes a pooling effect with reserve funds by pooling all funds together and distributing these funds to individual components as their replacement comes due. Funds that are pooled together in the cash flow analysis include the beginning balance, contributions to the reserve funds and interest earned on reserve funds. These pooled funds are matched against reserve expenditures throughout the period of the analysis by using our reserve analysis software program to ensure that the available funds are always greater than expenditures.

13 COMPONENT FUNDING ANALYSIS Component Funding Analysis Page 13

14 Component Funding Analysis - Category Current Cost Components by Category Common Area Interiors Painting & Waterproofing Pavement Pool Roofs Security Site Improvements Tennis Courts Useful YY:MM 13, , ,541 46,184 18,704 25, ,152 16, ,949 25:00 7:00 4:00-25:00 5:00-25:00 25:00 10:00-15:00 15:00-30:00 8:00-24:00 Remaining YY:MM 23:05 0:05 2:05-6:05 4:05-8:11 0:05 5:05-9:07 0:05-10:05 4:05-5:05 Reserve Reserve 2014 Unfunded 0 280,444 30,036 12, ,178 3,667 13,600 14, ,505 34,083 18,704 25, ,974 13, , ,421 5,978 18,704 3,409 41,151 2, , , ,055 Page 14

15 Component Funding Analysis - Items Current Cost Components by Category Common Area Interiors Restroom Interiors Painting & Waterproofing Paint/Waterproof Bldg. Exteriors Pavement Asphalt Overlay Asphalt Sealcoat/Rejuvenation Pool Pool Deck Restoration Pool Equipment Allowance Pool Fencing & Gates Pool Furniture Pool Interiors Roofs Roofing, Tile (PH & GH) Security Security Barrier Gates Security Video Surveillance Site Improvements Gazebo Restoration Mailbox Clusters Replacement Perimeter Fencing Playground Equipment Useful YY:MM 13,600 13, , , ,138 35, ,541 16,040 5,000 4,594 6,600 13,950 46,184 18,704 18,704 9,648 15,600 25,248 5,457 29, ,595 14,600 25:00 7:00 25:00 4:00 25:00 5:00 24:00 10:00 12:00 25:00 15:00 10:00 15:00 22:00 30:00 20:00 Remaining YY:MM 23:05 0:05 2:05 6:05 4:05 4:05 4:05 8:11 6:05 0:05 5:05 9:07 10:05 8:05 10:05 5:05 Reserve Reserve 2014 Unfunded 0 13, , ,444 14,106 14, ,444 14,106 14,106 30, ,102 35, ,904 5,517 30, , ,421 2,507 5,000 4, , ,600 13,950 3, ,174 12,101 34,083 5, ,704 18, ,704 18, ,648 15,600 1,781 1, ,248 3, ,760 17,988 1,867 5,457 23, ,607 12, ,821 13,018 2,351 Page 15

16 Component Funding Analysis - Items Current Cost Components by Category Site Improvements Street Lights Tennis Courts Tennis Courts Fencing & Gates Tennis Courts Resurfacing Useful YY:MM 65, ,152 9,626 7,344 30:00 Remaining YY:MM Reserve 0:05 Reserve 2014 Unfunded 43,563 21,437 21,437 69, ,974 41,151 3, ,959 7,344 1,349 1,356 16,970 3,667 13,303 2, , , , ,055 24:00 8:00 4:05 5:05 Page 16

17 CASH FLOW ANALYSIS

18 Item Parameter - Category - Chart

19 Item Parameters - Detail Description Service Current Est Adj Rem Future Basis Measurement Cost Cost Cost Basis Common Area Interiors Restroom Interiors 06/01/ ,60 13,60 25:00 25:00 23:05 13,60 13,60 6,80 each 1, units Painting & Waterproofing Paint/Waterproof Bldg. Exteriors 06/01/ ,55 7:00 11:00 0:05 294,55 294,55 294,55 Pavement Asphalt Overlay 06/01/ , :00 35:00 2:05 281, sq yds Asphalt Sealcoat/Rejuvenation 06/01/ , :00 8:00 6:05 35, sq yds sq ft 316,54 316,54 Pool Pool Deck Restoration 06/01/ , :00 37:00 4:05 16, Pool Equipment Allowance 06/01/2013 5,00 5:00 5:00 4:05 5,00 5,00 Pool Fencing & Gates 06/01/1981 4, :00 37:00 4:05 4, Pool Furniture 12/01/2012 6,60 10:00 10:00 8:11 6, Pool Interiors 06/01/ ,95 12:00 12:00 6:05 13, sq ft sqs 46, lp sm ln ft pieces 46, Roofs Roofing, Tile (PH & GH) 06/01/ , :00 33:00 0:05 18, , , Security Security Barrier Gates 06/01/2004 9, :00 15:00 5:05 9, , gates Security Video Surveillance 08/01/ ,60 10:00 10:00 9:07 15,60 1,30 lp sm 25, , Site Improvements Gazebo Restoration 06/01/2012 5, :00 12:00 10:05 5, sq ft Mailbox Clusters Replacement 06/01/ ,50 22:00 22:00 8:05 29,50 1, each Perimeter Fencing 06/01/ , :00 30:00 10:05 153, Playground Equipment 06/01/ ,60 20:00 38:00 5:05 14,60 14,60 lp sm Street Lights 06/01/ ,00 30:00 33:00 0:05 65,00 65,00 lp sm 268, ln ft 268, Tennis Courts Tennis Courts Fencing & Gates 06/01/1981 9, :00 37:00 4:05 9, Tennis Courts Resurfacing 06/01/2011 7, :00 8:00 5:05 7, , , , , , ln ft courts Page 19

20 Item Parameters - Full Detail Asphalt Overlay Item Number Type Category Tracking Method 1 Common Area Pavement Logistical Adjusted Measurement Basis sq yds 25: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj Quantity /01/ /01/2016 2:05 35: Replacement Cost Current Future 281, , , , Comments We have observed life cycles of less than 15 years, to 25+ years, for asphalt overlay projects, assuming proper design, installation and routine maintenance. Considering the age of the pavement and observed condition, this expense should be expected within the next 1-2 years. At the association's sole discretion, we have adjusted this expense for A recurring market supported 25 year life cycle was scheduled thereafter. The current unit cost estimate includes as needed milling of the asphalt paving at its junction with adjacent concrete paving, typical minor repairs to the underlying pavement subbase and drainage systems, installation of a standard overlay, and re-striping. The paved area is a rounded estimate. Under normal conditions, total replacement of concrete paving (sidewalks, curbing, gutters, etc.) should not be necessary at any one given time. It is our market observation that while some associations do establish and fund contingency reserves for concrete paving repairs, many prefer to fund as needed repairs through their annual operating budgets, as a function of routine maintenance. No reserves for concrete paving were included in this report. Page 20

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22 Item Parameters - Full Detail Asphalt Sealcoat/Rejuvenation Item Number Type Category Tracking Method 3 Common Area Pavement Logistical Adjusted Measurement Basis sq yds 4: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj Quantity /01/ /01/2020 6:05 8: Replacement Cost Current Future 35, , , , Comments Sealcoating/rejuvenation serves as not only a cosmetic upgrade; it also insures minimal moisture intrusion into the underlying pavement structure. Without a proper moisture barrier, premature deterioration in the form of potholes, etc. can occur, causing the need for more frequent (and costly) asphalt overlays. The market reflects a typical useful life of 3-4 years for this upgrade. The previous sealcoating date was unknown, for the purposes of this analysis, we have utilized a placed in service date of At the sole discretion of the association's representative, we have adjusted this expense to be completed in The current cost estimate includes typical minor pavement repairs and re-striping. Page 22

23 Item Parameters - Full Detail Gazebo Restoration Item Number Type Category Tracking Method 5 Common Area Site Improvements Logistical Adjusted Measurement Basis sq ft 15: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/ :05 12:00 Replacement Cost Current Future Quantity 17 5, , , , Comments We have included this allowance to fund for major restoration of the wood gazebo structure. A life cycle of years (depending on maintenance and quality) is typically realized before major third party restoration (roof, board replacement, etc) is necessary. As reported, the gazebo had some measure of restoration in At the sole discretion of the association's representative, we have adjusted the next expense to be completed in A recurring market supported 15 year life cycle was scheduled thereafter. The current cost estimate is an order of magnitude estimate based on the size of the structure and is not reflective of total replacement, which should not be necessary in the foreseeable future. Page 23

24 Item Parameters - Full Detail Mailbox Clusters Replacement Item Number Type Category Tracking Method 19 Common Area Site Improvements Logistical Fixed Measurement Basis each 22:00 1, Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2022 8:05 22:00 Replacement Cost Current Future Quantity 2 29,50 29,50 29,50 29,50 Comments Aluminum mailbox cluster replacement is typically scheduled on a mid 20 year life cycle. The current cost is an order of magnitude estimate based on the +/- 20 mailbox clusters. Page 24

25 Item Parameters - Full Detail Paint/Waterproof Bldg. Exteriors Item Number Type Category Tracking Method 2 Common Area Painting & Waterproofing Logistical Adjusted Measurement Basis units 7:00 1, Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2014 0:05 11:00 Replacement Cost Current Future Quantity ,55 294,55 294,55 294,55 Comments To insure proper protection of the underlying concrete, stucco, wood and metal surfaces, the market reflects a maximum 7 year useful life for exterior painting & waterproofing (in lieu of an association purchased 10 year warranty). The date of the previous exterior painting project was unknown, but assumed to be over 7 years ago. Based on our inspection, and for the purposes of this analysis, we have utilized a placed in service date of The current average per dwelling unit cost estimate includes typical minor concrete/stucco repairs, surface preparation, as needed window/sliding glass door caulking and painting/refinishing of all exterior concrete, stucco, wood and metal surfaces (including railings and window/slider frames). The current cost estimate also considers third party contractor bids between 270,000 and 320,000 recently provided to the association. Page 25

26 Item Parameters - Full Detail Perimeter Fencing Item Number Type Category Tracking Method 14 Common Area Site Improvements Logistical Fixed Measurement Basis ln ft 30: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj Quantity /01/ /01/ :05 30: Replacement Cost Current Future 153, , , , Comments The association should expect to incur costs associated with replacement of the painted aluminum fencing surrounding the property on a year life cycle. The current replacement cost estimate is based on our experience with similar replacements and includes removal of the existing fencing and replacement with like quality. Page 26

27 Item Parameters - Full Detail Playground Equipment Item Number Type Category Tracking Method 16 Common Area Site Improvements Logistical Adjusted Measurement Basis lp sm 20:00 14,60 Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2019 5:05 38:00 Replacement Cost Current Future Quantity ,60 14,60 14,60 14,60 Comments Depending on cosmetic taste, the association should expect to incur costs associated with replacement of the inventory of equipment at the playground on a +/ year schedule. Based on our inspection, replacement was scheduled in The current cost estimate is based on the type and quality of equipment in place. The actual costs may vary slightly due to the type and complexity of equipment chosen in the future. Page 27

28 Item Parameters - Full Detail Pool Deck Restoration Item Number Type Category Tracking Method 8 Common Area Pool Logistical Adjusted Measurement Basis sq ft 25: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj Quantity /01/ /01/2018 4:05 37: Replacement Cost Current Future 16, , , , Comments The pool decking is comprised of concrete/kool deck over concrete slab. While the underlying concrete should not require replacement under normal operating conditions, restoration/replacement of kool deck surfacing can be expected on a +/- 25 year life cycle. As reported, the pool deck had some level of maintenance completed last year. As such, and at the request of the association's representative, we have adjusted this expense to be completed in The total cost estimate includes removal of the existing decking, typical minor repairs to the underlying concrete, and installation with like decking and is based on a market indicated per square foot unit cost and the size of the deck area. Page 28

29 Item Parameters - Full Detail Pool Equipment Allowance Item Number Type Category Tracking Method 17 Common Area Pool Logistical Fixed Measurement Basis lp sm 5:00 5,00 Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2018 4:05 5:00 Replacement Cost Current Future Quantity ,00 5,00 5,00 5,00 Comments Under normal operating conditions, total replacement of the inventory of pool equipment (pumps, filters, chlorination systems, heaters, etc.) should not be necessary at any one given time. Some associations do establish and fund reserves for as needed equipment replacements, while others prefer to fund as needed expenses through their annual operating budgets as a function of general maintenance. For the association's consideration we have provided an allowance of 5,000 on a future 5 year life cycle to provide monies for as needed replacements of the pool equipment. Page 29

30 Item Parameters - Full Detail Pool Fencing & Gates Item Number Type Category Tracking Method 11 Common Area Pool Logistical Adjusted Measurement Basis ln ft 24: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2018 4:05 37:00 Replacement Cost Current Future Quantity , , , , Comments A life cycle in the low to mid 20 year range is the most typical useful life we have observed for replacement of standard chain link pool deck fencing and gates. The pool fencing was assumed to be original. Considering its overall condition, we have adjusted this expense for A recurring market supported 25 year life cycle was scheduled thereafter. The current per linear foot cost estimate includes removal and disposal of the existing fencing and gates and installation of like height/quality fencing and gates. Page 30

31 Item Parameters - Full Detail Pool Furniture Item Number Type Category Tracking Method 10 Common Area Pool Logistical Fixed Measurement Basis pieces 10: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2022 8:11 10:00 Replacement Cost Current Future Quantity 5 6,60 6,60 6,60 6,60 Comments While minor additions/replacements can be expected from time to time, and assuming periodic as needed re-strapping and/or refinishing as a function of routine maintenance, most associations complete pool deck furniture inventory replacements on a 7-10 year life cycle. The current per piece cost estimate is an average figure for the differing types (chaise lounges-35, tables-3, chairs-12). This cost also considers the association reported expense of 6,400 in late 2012 for replacement of the furniture. Page 31

32 Item Parameters - Full Detail Pool Interiors Item Number Type Category Tracking Method 9 Common Area Pool Logistical Fixed Measurement Basis sq ft 12: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj Quantity /01/ /01/2020 6:05 12: Replacement Cost Current Future 13,95 13,95 13,95 13,95 Comments Assuming proper installation, chemical balancing, and routine maintenance, interior resurfacing of standard concrete pools with marcite or aggregate interior finishes should be expected on a life cycle in the year range. The current per square foot of surface area cost estimate includes typical minor tank/structural repairs, tile upgrades and/or replacements, and installation of new aggregate surface materials (i.e. "diamond brite", "pebble crete", etc.). Page 32

33 Item Parameters - Full Detail Restroom Interiors Item Number Type Category Tracking Method 18 Common Area Common Area Interiors Logistical Fixed Measurement Basis each 25:00 6,80 Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/ :05 25:00 Replacement Cost Current Future Quantity ,60 13,60 13,60 13,60 Comments This reserve considers major restoration of the common area restroom interiors within the pool house (including, but not necessarily limited to, flooring, wall finishes, vanities, mirrors, dividers, plumbing and electrical fixtures, etc.). cycles of less than 15 years, to 30+ years, have been observed in properties of similar quality. As reported, the association incurred a cost of +/- 30,000 in 2012 for remodeling of the restrooms. This cost was found to be much higher than we have observed in the marketplace for this type of renovation. The current cost is based on our experience and known costs for similar restroom renovation projets we have observed in the marketplace. The current cost estimate does not include any unforeseen floor area reconfiguration and/or expansion. Page 33

34 Item Parameters - Full Detail Roofing, Tile (PH & GH) Item Number Type Category Tracking Method 4 Common Area Roofs Logistical Adjusted Measurement Basis sqs 25: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2014 0:05 33:00 Replacement Cost Current Future Quantity , , , , Comments cycles of less than 20 years, to 35+ years, have been observed for replacement of pitched tile roofing; the most typical life falls in the mid 20 year range, assuming proper design, installation and routine maintenance. Considering the age of the poolhouse (20 squares*) roof, reported and observed condition (leaking), replacement was scheduled for The current cost estimate considers a third party bid provided to the association between 14,000 to 16,000 for replacement. The current cost estimate includes removal and disposal of the existing roofing, typical minor repairs to the underlying roof structures, flashing, as needed repair/replacement of fascia, soffits and/or gutters and downspouts, and installation of like roofing. This cost also includes consideration for replacement of the guardhouse roof with tile (+/- 1.4 squares), which appears to also be original. As reported, the association is not responsible for the roof covers at the residential buildings. *one square = 100 square feet Page 34

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36 Item Parameters - Full Detail Security Barrier Gates Item Number Type Category Tracking Method 12 Common Area Security Logistical Fixed Measurement Basis gates 15:00 3, Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2019 5:05 15:00 Replacement Cost Current Future Quantity , , , , Comments Barring any unforeseen vehicular damage, replacement of the barrier gates/operators at the entrance/exit should be necessary on a year basis with routine maintenance. A current cost estimate per gate was utilized, which includes removal and disposal of the existing gate/motor, typical minor electrical upgrades, and installation with a similar unit. Page 36

37 Item Parameters - Full Detail Security Video Surveillance Item Number Type Category Tracking Method 13 Common Area Security Logistical Fixed Measurement Basis lp sm 10:00 1,30 Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2023 9:07 10:00 Replacement Cost Current Future Quantity ,60 15,60 15,60 15,60 Comments As reported and reflected in this analysis, the association's plans to replace the current security video surveillance system with a 12 camera system in 2013 for approximately 15,600. This cost was found to be in line with market standards. Data gleaned from both within and outside the local market area indicates that while minor component repairs/replacements (cameras, monitors, recording equipment, hardware/software, etc.) can be expected as a function of ongoing maintenance, total system modernization and/or replacement can be expected on a life cycle in the year range. The current per camera cost estimate is reflective of the entire system. Page 37

38 Item Parameters - Full Detail Street Lights Item Number Type Category Tracking Method 15 Common Area Site Improvements Logistical Adjusted Measurement Basis lp sm 30:00 65,00 Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2014 0:05 33:00 Replacement Cost Current Future Quantity ,00 65,00 65,00 65,00 Comments The subject's street lights are maintained by the city. However, the association is responsible for the cost of installation, which is expected to be 65,000. Considering the poor condition of the street lights, this expense was scheduled in A recurring 30 year life cycle was scheduled thereafter. Page 38

39 Item Parameters - Full Detail Tennis Courts Fencing & Gates Item Number Type Category Tracking Method 6 Common Area Tennis Courts Logistical Adjusted Measurement Basis ln ft 24: Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2018 4:05 37:00 Replacement Cost Current Future Quantity 45 9, , , , Comments Data gleaned from both within and outside the local market area indicates that under normal conditions, replacement of typical coated chain link tennis court fencing and gates should be expected on a life cycle in the low to mid-20 year range. As reported, the fencing is original. Considering the observed condition, replacement should be expected in the near future. At the sole discretion of the association's representative, we have adjusted this expense to be completed in 2018, along with the scheduled pool fence replacement. The current per linear foot unit cost estimate includes removal and disposal of the existing fencing and gates and installation of like height/quality fencing and gates. Page 39

40 Item Parameters - Full Detail Tennis Courts Resurfacing Item Number Type Category Tracking Method 7 Common Area Tennis Courts Logistical Fixed Measurement Basis courts 8:00 3, Estimated Useful Basis Cost Salvage Value Code Service Replace Rem Adj /01/ /01/2019 5:05 8:00 Replacement Cost Current Future Quantity , , , , Comments To insure proper protection of the underlying court structures and a high cosmetic appeal, the market reflects a range in useful life of 6-9 years for resurfacing of standard asphalt tennis courts. The current per court cost estimate includes typical minor repairs to the underlying court structures and re-striping. Page 40

41 Expenditures - Description Description Asphalt Overlay Asphalt Sealcoat/Rejuvenation Gazebo Restoration Mailbox Clusters Replacement Paint/Waterproof Bldg. Exteriors Perimeter Fencing Playground Equipment Pool Deck Restoration Pool Equipment Allowance Pool Fencing & Gates Pool Furniture Pool Interiors Restroom Interiors Roofing, Tile (PH & GH) Security Barrier Gates Security Video Surveillance Street Lights Tennis Courts Fencing & Gates Tennis Courts Resurfacing ,137 35,402 29, , ,550 14,600 16,039 5,000 4,594 5,000 6,600 13,950 18,703 9,648 15,600 65,000 9,625 7, , , ,259 31,592 49, ,550 36,100 20,600 Page 41

42 Expenditures - Description Description Asphalt Overlay Asphalt Sealcoat/Rejuvenation Gazebo Restoration Mailbox Clusters Replacement Paint/Waterproof Bldg. Exteriors Perimeter Fencing Playground Equipment Pool Deck Restoration Pool Equipment Allowance Pool Fencing & Gates Pool Furniture Pool Interiors Restroom Interiors Roofing, Tile (PH & GH) Security Barrier Gates Security Video Surveillance Street Lights Tennis Courts Fencing & Gates Tennis Courts Resurfacing ,402 5, , , , ,595 5,000 5,000 6,600 13,950 15,600 7, , , , ,952 20,600 Page 42

43 Expenditures - Description Description Asphalt Overlay Asphalt Sealcoat/Rejuvenation Gazebo Restoration Mailbox Clusters Replacement Paint/Waterproof Bldg. Exteriors Perimeter Fencing Playground Equipment Pool Deck Restoration Pool Equipment Allowance Pool Fencing & Gates Pool Furniture Pool Interiors Restroom Interiors Roofing, Tile (PH & GH) Security Barrier Gates Security Video Surveillance Street Lights Tennis Courts Fencing & Gates Tennis Courts Resurfacing ,137 35,402 35,402 5, , ,550 14,600 16,039 5,000 5,000 4,594 6,600 13,600 18,703 9,648 15,600 9,625 7,344 9, ,894 7,344 35,402 13,600 5,000 38,760 35, , ,369 43,983 Page 43

44 Cash Flow - Annual Beginning Period 01/14-12/14 Interest Earned Ending Expenditures 395, ,40 1, /15-12/15 123, ,40 1, /16-12/16 229, , , , /17-12/17 53, , , /18-12/18 137, ,52 1, , , /19-12/19 187, ,52 1, , , /20-12/20 240, ,52 1, , , /21-12/21 276, ,52 1, ,55 66, /22-12/22 66, , ,10 114, /23-12/23 114, ,52 1, ,60 178, , ,126, , , ,84 Beginning Period 378, Interest Earned 123, , Ending Expenditures 01/24-12/24 178, , , , /25-12/25 68, , , /26-12/26 153, ,52 1, , /27-12/27 238, ,52 2, , , /28-12/28 316, ,52 1, , , /29-12/29 66, , , /30-12/30 150, ,52 1, , /31-12/31 235, ,52 2, , /32-12/32 321, ,52 2, , , /33-12/33 351, ,52 2, ,60 417, , ,20 Beginning Period 16, , Interest Earned 417, Ending Expenditures 01/34-12/34 417, ,52 3, , , /35-12/35 494, ,52 2, , , /36-12/36 278, ,52 2, , , /37-12/37 329, ,52 2, ,60 402, /38-12/38 402, ,52 3, ,00 483, /39-12/39 483, ,52 3, , , /40-12/40 532, ,52 4, , , /41-12/41 584, ,52 3, , , /42-12/42 390, ,52 1, , , /43-12/43 160, ,52 1, , , , ,080, , , ,20 Page 44

45 Cash Flow - Monthly Beginning 2014 Interest January February March April May June July August September October November December 395, , , , , , , , , , , , , Earned 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 104,40 123, , , , , , , , , , , , , ,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 229, ,40 104,40 January 132, , , , , , , , , , , , ,96 229, Ending Expenditures , , Interest 53, Earned 123, Ending 1, ,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 8,70 Beginning 2017 Expenditures , , , , , , , , , , , , , , , , , , , , , , , , , Interest January February March April May June July August September October November December Earned Beginning , , Interest January February March April May June July August September October November December Expenditures Beginning 2015 Ending 237, , , , , , , , , , , , , Ending Earned Expenditures , Page 45

46 Cash Flow - Monthly February March April May June July August September October November December 60, , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83, Beginning , , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 187, January February March April May June 240, , , , , , , ,52 35, , , , , , , , , , , , , Expenditures 1, ,96 6,96 6,96 6,96 6,96 6,96 31, , Interest 187, Ending , , Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 Beginning 2020 Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December Ending Earned Beginning , , , , , , , , , , , Interest January February March April May June July August September October November December , , , , , , , , , , , , , Ending Earned Expenditures , , , , , , , Page 46

47 Cash Flow - Monthly July August September October November December 233, , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 83, Beginning , , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 66, January February March April May June July August September October November 114, , , , , , , , , , , , ,52 294,55 283, , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 29,50 6,60 36,10 Interest 66, Ending Expenditures , ,55 Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 Beginning 2023 Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December 49, Ending Earned Beginning , , , , , , Interest January February March April May June July August September October November December 1, , , , , , , , , , , , , , Ending Earned Expenditures ,00 15,60 121, , , , , , , , , , , Page 47

48 Cash Flow - Monthly December 171, , ,96 83, Beginning , , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 68, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,52 Expenditures , Ending Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 68, Ending Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 178, , Earned Beginning 2026 Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December 20,60 Ending Earned Beginning , Interest January February March April May June July August September October November December 1, , , , , , , , , , , , , , , Page 48

49 Cash Flow - Monthly Beginning 2027 Interest January February March April May June July August September October November December 238, , , , , , , , , , , , , Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 316, , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 66, ,52 83,52 January 150, , , , , , , , , , , , , , , Expenditures Interest 6,96 66, Ending Earned 316, Ending 1, ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 Beginning 2030 Expenditures , , , , , , , , , , , , , , , , , , , , , , , , , Interest January February March April May June July August September October November December Earned Beginning , , Interest January February March April May June July August September October November December Expenditures Beginning 2028 Ending 73, , , , , , , , , , , , , Ending Earned Expenditures , Page 49

50 Cash Flow - Monthly February March April May June July August September October November December 157, , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83, Beginning , , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 321, January February March April May June 351, , , , , , , ,52 242, , , , , , , , , , , , Expenditures 2, ,96 6,96 6,96 6,96 6,96 6,96 49, ,60 55, Interest 321, Ending , Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 Beginning 2033 Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December Ending Earned Beginning , , , , , , , , , , , Interest January February March April May June July August September October November December 1, , , , , , , , , , , , , , Ending Earned Expenditures ,00 358, , , , , , Page 50

51 Cash Flow - Monthly July August September October November December 389, , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 83, Beginning , , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 494, January February March April May June July August September October November 278, , , , , , , , , , , , ,52 9, , , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 301, , Interest 494, Ending Expenditures , , Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 Beginning 2036 Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December 20,60 Ending Earned Beginning , , , , , , Interest January February March April May June July August September October November December 2, ,60 501, , , , , , , , , , , , , Ending Earned Expenditures , , , , , , , , , , , , Page 51

52 Cash Flow - Monthly December 322, , ,96 83, Beginning , , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 402, , ,60 336, , , , , , , , , , , , ,52 3, ,00 5,00 409, , , , , , , , , , , , ,52 Expenditures , Ending Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 402, Ending Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December 2, ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 329, ,60 Earned Beginning 2039 Expenditures , , , , , , , , , , , , Interest January February March April May June July August September October November December 35, Ending Earned Beginning , Interest January February March April May June July August September October November December 2, , , , , , , , , , , , , , , , , Page 52

53 Cash Flow - Monthly Beginning 2040 Interest January February March April May June July August September October November December 532, , , , , , , , , , , , , Earned 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83,52 584, , , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 390, ,52 83,52 January 160, , , , , , , , , , , , , , , Expenditures , , ,60 315, Interest 6,96 390, Ending Earned 584, Ending 3, ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 Beginning 2043 Expenditures , , , , , , , , , , , , , , , , , , , , , , , , , Interest January February March April May June July August September October November December Earned Beginning , , Interest January February March April May June July August September October November December Expenditures Beginning 2041 Ending 397, , , , , , , , , , , , , Ending Earned Expenditures , Page 53

54 Cash Flow - Monthly February March April May June July August September October November December 167, , , , , , , , , , , , ,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 6,96 83, , , ,60 43, , , , , , , , , , , , , Page 54

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56 Cash Flow - Chart Page 56