3218 Fannin Road Melissa, TX 75454 (972) 562-1011 TEL Firm Reg. No F-4577 www.criteriumdotson.com RESERVE FUND STUDY RIVERCHASE AT WYLIE WYLIE, TX Prepared for: RIVERCHASE AT WYLIE HOMEOWNERS ASSOCIATION C/o Ms. Corinn Dandridge Principal Management Group 12700 Park Central Drive, Suite 600 Dallas, TX 75251 Date of Investigation: February 6, 2018 Investigator: Phillip Nieman, P.E. Reviewed By: David H. Dotson, P.E., R.S. MARCH 2018 (Draft February 2018) Project Number: C171121-1
CONTENTS 1.0 INTRODUCTION... 1 2.0 EXECUTIVE SUMMARY... 2 3.0 PURPOSE & SCOPE... 2 3.1 PURPOSE... 2 3.2 SCOPE... 2 3.3 SOURCES OF INFORMATION... 4 3.4 STANDARDS OF REFERENCE... 4 4.0 DESCRIPTION... 5 5.0 OBSERVATIONS... 7 6.0 RESERVE FUND ANALYSIS... 9 7.0 CONCLUSION... 11 8.0 LIMITATIONS... 11 APPENDIX A: RESERVE FUND PROJECTIONS APPENDIX B: PHOTOGRAPHS APPENDIX C: EXECUTIVE SUMMARY Riverchase at Wylie
1.0 INTRODUCTION RIVERCHASE AT WYLIE HOMEOWNERS ASSOCIATION through Principal Management Group, authorized Criterium Dotson Engineers to conduct a Property Evaluation and Reserve Fund Study for RIVERCHASE AT WYLIE, located in. Studies of this nature are important to ensure that a community has sufficient funds for long-term, periodic capital expenditure requirements. Anticipating large expenditures over an extended period of time through a structured analysis and scheduling process assists the Association in meeting financial requirements without increasing the service fees above permitted maximums, borrowing the funds, or levying special financial assessments to the Homeowners. Typically, a community association has two broad cash requirements: the general operating reserves and the capital repair and replacement reserves. In this report, we focus on those items falling under the capital repair and replacement reserve criteria. We have projected a capital repair and replacement reserve for thirty years. The first ten years are the most reliable. Such a study should be updated every three to five years. A Reserve Study is a working tool and a fluid document over time. In addition to changing conditions, one of the primary reasons that we recommend a reserve study be updated every 3-5 years is so that items that fall outside the 30-year analysis today will be pulled into the calculations and required reserve funding when they are still about 30 years out, thus allowing sufficient time to accumulate funds without placing unnecessary burden on current residents. This report is structured to analyze components of the community for which the Association is responsible and to assess a useful expected life and useful remaining life to those components. The anticipated scheduled repair or replacement of the component and the anticipated expense for the activity are then analyzed in conjunction with the current capital reserves funding program for the community. Funding program recommendations are made with the objective of limiting substantial cash excesses while minimizing financial burdens that can result from significant cash inadequacies. This report is intended to be used as a tool to determine reserve fund allocation requirements for the community, to manage future Association obligations, and to inform the community of future financial needs in general. The report that follows has been prepared from the perspective of what an owner of this property would benefit from knowing. Some items, beyond those of immediate concern, may be discussed. Therefore, the report should be read in its entirety in order to fully understand all of the information that has been obtained. Riverchase at Wylie Page 1
2.0 EXECUTIVE SUMMARY The common property is generally in good condition. Based on our evaluation, the current level of funding of the reserve for this project is inadequate for the short term needs. A more detailed analysis of the reserve fund has been provided in Appendix A. Riverchase at Wylie Page 2 Based on our observations, there are immediate material deficiencies. Those items are as follows: Replace seal between pool deck and coping joint Asphalt trail is due for repairs and replacement Brick perimeter fencing repairs There are, of course, other capital expenditures to be expected over the next thirty years. Those items that will require attention are discussed later in this report. For your convenience, we have prepared the following summary of the condition of the major systems of the property. 3.0 PURPOSE & SCOPE 3.1 Purpose The purpose of this study is to perform a reserve fund analysis and to determine a capital needs plan. It is intended to be used as a tool for the RIVERCHASE AT WYLIE HOMEOWNERS ASSOCIATION in determining the allocation requirements into the reserve fund in order to meet future anticipated capital expenditures for the community. This report forecasts obligations for the community thirty years into the future. It should be noted that events might occur that could have an effect on the underlying component or system useful life assumptions used in this study. Likewise, inevitable market fluctuations can have an impact on component or system replacement and repair costs. Therefore, a study such as this should be updated from time to time, usually on a three to five-year cycle, in order to reflect the most accurate needs and obligations of the community. 3.2 Scope This study has been performed according to the scope as generally defined by RIVERCHASE AT WYLIE HOMEOWNERS ASSOCIATION, Criterium Dotson Engineers, and the standards of the Community Associations Institute. The findings and recommendations are based on a review of available documents; and an investigation of the site components. The guidelines used to determine which physical components within the community are to be included in the component inventory are based on the following general criteria: 1. The component must be a common element, or the responsibility of the Association to replace. 2. The funding for replacement should be from one source only, not funded from another area of the budget or through a maintenance contract. 3. The cost of replacement should be high enough to make it financially unsound to fund it from the operating budget. 4. Components, such as touch-up painting, which are considered deferred maintenance, are most appropriately funded from the
Operating Budget instead of Reserves. Our reserve study analysis included evaluating the following association property: Site: Asphalt trail Bridge Entrance monuments Fountain Ornamental lighting Perimeter fencing Retaining walls Cabana Interior: Fixtures Lighting Cabana Exterior: Roof Lighting Mechanical: Electric panels Irrigation controllers Pool filters Pool pumps Amenities: Park benches Pool Pool deck Pool furnishings The above list was obtained by our inspection of the site. No community asset list was provided. This study estimates the funding levels required for maintaining the long term viability of the facility. Our approach involves: 1. Examining association managed equipment, components, and site facilities. 2. Predicting their remaining service life and, approximating how frequently they will require repair or replacement. 3. Estimating repair or replacement costs (in 2018 dollars) for each capital item. 4. Using data developed in Steps 1, 2 and 3 to project Capital Reserve balances for Years 1 through 30. Riverchase at Wylie Page 3 The statements in this report are opinions about the present condition of
Riverchase at Wylie Page 4 the subject community. They are based on visual evidence available during a diligent investigation of all reasonably accessible areas falling under the responsibility of the Association. We did not remove any surface materials, perform any destructive testing, or move any furnishings. This study is not an exhaustive technical evaluation. Such an evaluation would entail a significantly larger scope than this effort. For additional limitations, see Section 8.0. 3.3 Sources of Information Onsite inspections of the property occurred on the following date: February 6, 2018 The following people were interviewed during our study: Ms. Corinn Dandridge, Principal Management Group The following documents were made available to us and reviewed: Reserve fund amount and funding rate Replacement and repair history We based our cost estimates on some or all of the following: R.S. Means Our data files on similar projects Local contractors 3.4 Standards of Reference For your reference, the following definitions may be helpful: Excellent: Component or system is in "as new" condition, requiring no rehabilitation and should perform in accordance with expected performance. Good: Component or system is sound and performing its function, although it may show signs of normal wear and tear. Some minor rehabilitation work may be required. Adequate: A component or system is of a capacity that is defined as enough for what is required, sufficient, suitable, and/or conforms to standard construction practices. Fair: Component or system falls into one or more of the following categories: a) Evidence of previous repairs not in compliance with commonly accepted practice, b) Workmanship not in compliance with commonly accepted standards, c) Component or system is obsolete, d) Component or system approaching end of expected performance. Repair or replacement is required to prevent further deterioration or to prolong expected life. Poor: Component or system has either failed or cannot be relied upon to continue performing its original function as a result of having exceeded its expected performance, excessive deferred maintenance, or state of
disrepair. Present condition could contribute to or cause the deterioration of other adjoining elements or systems. Repair or replacement is required. All ratings are determined by comparison to other components of similar age and construction type. Further, some details of workmanship and materials will be examined more closely in higher quality components where such details typically become more relevant. All directions (left, right, rear, etc.), when used, are taken from the viewpoint of an observer standing in front of a component and facing it. Repair/Replacement Reserves - Non-annual maintenance items that will require significant expenditure over the life of the component. Included are items that will reach the end of their estimated useful life during the course of this forecast, or, in the opinion of the investigator, will require attention during that time. 4.0 DESCRIPTION RIVERCHASE AT WYLIE was reportedly constructed in or around 2000 and consists of 292 single family homes. Topography is generally flat with a slight slope west, southwest. The gated community has three (3) entrances and three (3) exits (6 total) equipped with French, ornamental iron gates that are controlled by two (2) Elite ½ hp, 125 lb max swing arm mechanisms each (12 total). Each entrance is equipped with a DKS touchpad controller with phone system access. Each gated entrance/exit has a regular gate at the fencing with access controlled by an electrical combo lock controller (2 each entry/exit). The main entrance to the property is located at Stonecrest Tr. off of Country Club Rd. (FM 1378). There are two (2) other entrances at Coral Reef Ln. and Schooner Bay Dr. both off of Country Club Rd. (FM 1378). A brick/cast-stone entrance monument is located in the middle of the drives at each of the three (3) entrances to the community. Each monument is equipped with accent lighting. The entrance monument at Stonecrest Tr. contains two (2) ornamental light fixtures mounted on the monument. Perimeter fencing along Country Club Rd. (FM 1378), at the east border of the community, consists of a combination of brick fencing (~975 linear feet) and ornamental iron fencing(~1,470 linear feet). Perimeter fencing is only present at the east community border along Main St and is spaced between brick pilasters. Sidewalks run along the streets throughout the community and at the recreation area. All flatwork is cast-in-place concrete and the responsibility of HOA. Riverchase at Wylie Page 5
All streets and curbs at the community are cast-in-place concrete. The streets and curbs in the gated community are owned and maintained by the Homeowner s Association. Streets are typically 24 feet wide with cast-in-place concrete curbing. There is approximately 360,750 square feet of concrete paved streets. The Recreation Center has a cast-in-place concrete paved parking lot with nine (9) striped parking spaces, including one (1) accessible space for the disabled. Drainage in the community is handled over the surface with curb inlets and underground storm drainage at the streets. Most drainage is conveyed to a creek at the middle of the community that flows into the community lake just west of Country Walk Rd. at the west side of the community. The community entrances, recreation areas and common areas are extensively and attractively landscaped. An irrigation system is present at most landscaped areas. Irrigation controllers are located at the following locations: inside a locked fence are with the lake fountain equipment, inside each entry/exit gates (3 total), and at the cabana s west exterior wall with pool equipment. There is a lake present at the west side of the community just west of Country Walk Rd. that is fed by a drainage creek flowing from the east into the lake. The lake is equipped with a fountain and fountain controls are located on the east side of Country Walk Rd. An asphalt walking trail runs along both sides of the creek to the east of the lake, and there are designated picnic areas with tables and grills along the trail. A wood framed bridge connects the asphalt walking trail across the east portion of the creek. The pool area and playground/recreation area are enclosed by ornamental iron fencing. The pool area fencing has controlled access provided by a mechanical combo lock gate. There are approximately 34 ornamental pole-mounted street lights throughout the community. One small building serves as the pool cabana. The building is constructed of concrete masonry units. The walls are load bearing and sit on top of a slab on grade foundation. Roofing consists of a standing seam metal roof (~375 sq. ft.) and a composition shingle roof (~300 sq. ft.). Attic ventilation is provided by roof hawks and soffit vents. Exterior components consists of brick veneer with cedar paneling at the pool side upper half and exposed wood roof framing at the breezeway. Riverchase at Wylie Page 6
There is a cedar slat arbor overhang at the pool side of the cabana. The restrooms walls consist of painted CMU and the ceilings are composed of stained cedar paneling. There are not any doors to the men or women s restrooms. Each restroom is naturally ventilated. A power meter is located at the west exterior wall of the cabana along with a 200 Amp electrical panel. All power is distributed from this point by copper wiring. There is also a small electrical panel with meter powering the irrigation controller, gate equipment, and monument lighting at each irrigation controller location. A total of six (6) Wal-pak light fixtures provide light at the front and pool side of the cabana, and there are two (2) ceiling fans at the pool side overhang. The plumbing fixtures are vitreous china, of commercial quality, with good quality accessories. An approximate 2,150 S.F. Pool and wading pool are gunite pool surfacing with cast-stone coping and tile at the waterline. Pool apron/decking is Kool-Deck surfaced cast-in-place concrete. Pool equipment is located in a locked fenced area at the west side of the cabana. Pool equipment consists of three (3), 2 hp pumps, one (1) 1 hp pump and four (4) filters. Approximately 45 linear feet of wood fencing encloses the pool equipment. The pool area is secured by a mechanical combo gate lock at the main entrance to the pool area. Six (6) foot high ornamental iron fencing (~250 lin. ft.) surrounds the perimeter of the pool area and playground/recreation area Extensive, metal and plastic playground equipment is located just southeast of the cabana. There are two (2) heavy metal park benches and trash receptacles located at the playground/recreation area. 5.0 OBSERVATIONS The following key observations were made about the current condition of the common elements of the property. Unless mentioned below, components are in good condition and/or aging normally. Riverchase at Wylie Page 7 Site Accent lights at entrance monuments appear relatively new Parking lot due for striping and joint/crack seal
No issues observed with private streets Asphalt trail is in poor condition and repairs and replacement are recommended Brick perimeter fencing repairs due immediately to correct exposed and corroded steel reinforcement Cabana Exterior Exterior stain is in good condition Cabana Interior No issues observed Mechanical All mechanical items appeared to be functioning as intended Amenities Cracks observed at pool deck Deck-o-seal joint is due for immediate replacement Park benches are due for cleaning, priming and painting Riverchase at Wylie Page 8
6.0 RESERVE FUND ANALYSIS Using software developed by Criterium Engineers and KPMG Peat Marwick, we have analyzed capital reserves draw-down for the projected capital expenditures to determine the amount needed. The following is a projected reserve fund analysis for non-annual items as discussed in the report. This projection takes into consideration a reasonable return on invested moneys and inflation. Please review this thoroughly and let us know of any changes that may be desired. The intent of this reserve fund projection is to help the Association develop a reserve fund to provide for anticipated repair or replacements of various system components during the next thirty years. The capital items listed are those that are typically the responsibility of the association. However, association by-laws vary, and therefore, which components are the responsibilities of the owner and which are the responsibilities of the Association can vary. The Association should confirm that the items listed should be financed by the reserve fund. This projection provides the following: An input sheet that defines all the criteria used for the financial alternatives, including the assumed inflation rate and rate of return on deposited reserve funds. A table that lists anticipated replacement and/or repair items complete with estimated remaining life expectancies, projected costs of replacement and/or repair, a frequency in years of when these items require replacement and/or repair, and a projection based on this frequency. A table and graph that represent end of year balances versus capital expenditures based on your current funding program and reserve balances, and alternatives to your current program. The provided graphs illustrate what effects the funding methods will have over the thirty-year study period versus the anticipated capital expenditures. Care should be taken in analyzing the graphs due to varying graphic scales that occur within each graph and between graphs. Note that based on our developed list of capital items and taking inflation into account; the current funding is NOT adequate to meet short-term anticipated capital expenses of the community. The Association should bear in mind that unanticipated expenditures can always arise and maintenance of a significant reserve fund balance can be viewed as a way to avoid special assessments. We have included three alternatives to your current funding program and recommend that the board adopt an alternative that best reflects the objectives of the community. In summary they are as follows: Riverchase at Wylie Page 9
EXISTING FUNDING LEVEL: We have assessed current Capital Reserve Fund balance and current level of contribution into capital reserves and determined that the Association s current financial status is NOT adequate to meet the Association s short-term or long-term financial needs for the community. ALTERNATIVE # 1: Minimum required funding for capital reserves over the duration without special assessments. This alternative requires an increase in initial funding level combined with increases EVERY year for the first 12 of the study period. This alternative creates an adequate fund balance throughout the study period. ALTERNATIVE # 2 Minimum required contribution together with annual escalation in dues for capital reserves over the duration. This alternative also begins with an increase in funding, together with smaller annual increases for the first 17 years. This alternative creates an adequate fund balance throughout the study period and also represents a solid approach. ALTERNATIVE # 3 Alternative 3 reviews maintaining minimum level funding at current level over the duration of the funding period. This alternative requires a special assessment at years 7, 13, 18, and 25, but holds annual dues for the capital reserve at the level funding level. This alternative is NOT recommended but shows what the financial impact will be without long-term planning. Addendum A lists estimated capital reserves for the next thirty years. Riverchase at Wylie Page 10
7.0 CONCLUSION In summary, we consider the property to be in generally good condition when compared to others of similar age and construction type. While some components are in need of a repair and replacement program, the program can be prioritized and planned in conjunction with reserve strategies. We feel that the reserve financials included with this report outline several possible strategies for the community to adopt given the current condition of the project as a whole. As time passes, it may become necessary to reestablish financial priorities and capital expenditure schedules given any unforeseen circumstances. We recommend and encourage this activity. 8.0 LIMITATIONS The observations described in this study are valid on the date of the investigation and have been made under the conditions noted in the report. We prepared this study for the exclusive use of RIVERCHASE AT WYLIE HOMEOWNERS ASSOCIATION and their representatives. Criterium-Dotson Engineers does not intend any other individual or party to rely upon this study without our express written consent. If another individual or party relies on this study, they shall indemnify and hold Criterium-Dotson Engineers harmless for any damages, losses, or expenses they may incur as a result of its use. This study is limited to the visual observations made during our inspection. We did not remove surface materials, conduct any destructive or invasive testing, move furnishings or equipment, or undertake any digging or excavation. Accordingly, we cannot comment on the condition of systems that we could not see, such as buried structures and utilities, nor are we responsible for conditions that could not be seen or were not within the scope of our services at the time of the investigation. We did not undertake to completely assess the stability of structures or the underlying foundation soil since this effort would require excavation and destructive testing. Likewise, this is not a seismic assessment. We did not investigate the following areas: Buried utilities or infrastructure Concealed structural members or systems We do not render an opinion on uninvestigated portions of the community. We did not perform any computations or other engineering analysis as part of this evaluation, nor did we conduct a comprehensive code compliance investigation. This study is not to be considered a warranty of condition, and no warranty is implied. The appendices are an integral part of this report and must be included in any review. In our Reserve Fund Analysis, we have provided estimated costs. These costs are based on our general knowledge of building systems, construction components and the contracting and construction industry. When appropriate, we have relied on standard sources, such as Means Building Construction Cost Data, to develop estimates. However, for Riverchase at Wylie Page 11
items that we have developed costs (e.g.: structural repairs), no standard guide for developing such costs exists. Actual costs can vary significantly, based on the availability of qualified contractors to do the work, as well as many other variables. We cannot be responsible for the specific cost estimates provided. We have performed no design work as part of this study, nor have we obtained competitive quotations or estimates from contractors as this also is beyond the scope of the project. The actual cost to remedy deficiencies and deferred maintenance items that we have identified may vary significantly from estimates and competitive quotations from contractors. If you have any questions about this study or the reserve fund analysis, please feel free to contact us. Thank-you for the opportunity to be of assistance to you. Thank you for the opportunity to be of service. CRITERIUM-DOTSON ENGINEERS Riverchase at Wylie Page 12
Appendix A: RESERVE FUND PROJECTIONS
Reserve Study Worksheet - Existing Funding Levels General Information: 1 Organization: Riverchase of Wylie Homeowners Association 2 Address: 1701 Eastfork Lane 75098 3 Number of Homes 292 Total/Month Total Annual Per Unit/Month Per Unit/Year Special Assessments 4 Age of Development (in years) 18 Res. Fund Contrib. (First Year)... $0 $0 $0.00 $0.00 Years Out Total/Year Per Unit 5a Study Period (in years) 30 Res. Fund Contrib. (Remaining Years)... $0 $0 $0.00 $0.00 5b Normal Fiscal Year starts: January 1, 2018 5c Partial Fiscal Year starts: January 1, 2018 5d Partial Year Length: 12 months Final Balance Computed... ($2,196,254) 6 Site Inspection Date February 5, 2018 Average Capital Expenditure per year... $77,795 7 Reserve Funds at start $136,248 8 Rate of Return on invested Reserve Funds (%) 0.5% 9 Inflation Rate (%) 3.0% 10 Yearly Threshold $0 11 Annual Maintenance Budget $0 12 Annual Maintenance Escalation Rate 0.0% 13 Target Funding Percentage 0.0% Fiscal Years: Normal: Jan 2018 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Partial: Jan 2018 (12 months) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: $136,248 $88,769 $85,549 $32,863 $29,140 $21,591 $12,332 ($80,285) ($298,515) ($373,062) ($377,680) ($410,086) ($414,986) ($485,422) ($504,572) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $442 $426 $163 $145 $107 $61 $0 $0 $0 $0 $0 $0 $0 $0 $0 $47,920 $3,646 $52,849 $3,868 $7,656 $9,321 $92,617 $218,231 $74,546 $4,619 $32,405 $4,900 $70,436 $19,150 $40,560 $88,769 $85,549 $32,863 $29,140 $21,591 $12,332 ($80,285) ($298,515) ($373,062) ($377,680) ($410,086) ($414,986) ($485,422) ($504,572) ($545,132) Ending Reserve Balance: Percent Funded: 35.93% 34.84% 11.40% 10.23% 6.59% 3.36% -19.80% -79.76% -153.42% -163.73% -149.96% -139.42% -142.58% -148.97% -146.92% Special Assessment Cost per Unit: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fiscal Years: Normal: Jan 2018 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Partial: Jan 2018 (12 months) 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: ($545,132) ($570,745) ($702,086) ($1,055,699) ($1,117,395) ($1,123,602) ($1,160,041) ($1,166,626) ($1,293,597) ($1,344,002) ($1,420,938) ($1,437,772) ($1,557,981) ($2,172,348) ($2,187,912) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $25,613 $131,341 $353,613 $61,696 $6,207 $36,438 $6,585 $126,971 $50,405 $76,936 $16,834 $120,208 $614,367 $15,564 $8,342 ($570,745) ($702,086) ($1,055,699) ($1,117,395) ($1,123,602) ($1,160,041) ($1,166,626) ($1,293,597) ($1,344,002) ($1,420,938) ($1,437,772) ($1,557,981) ($2,172,348) ($2,187,912) ($2,196,254) Ending Reserve Balance: Percent Funded: -145.40% -165.34% -272.17% -511.77% -474.84% -421.55% -381.05% -372.78% -354.46% -360.27% -353.08% -376.53% -473.77% -551.63% -522.35% Special Assessment Cost per Unit: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Criterium Engineers Page 1 of 12 4/16/2018
Reserve Study Worksheet - Itemized Worksheet Capital Item Reserve Frequency Remaining To Be Replaced Quantity Unit cost Requirement (*) (yrs**) Life (yrs) Comments Site Asphalt Walking Trail Repairs (Periodic) 3,780 sq. ft. $1.50 $5,670.00 8 0 Board-On-Board Cedar Fencing @ Pool Area 225 lin. ft. $0.00 $0.00 18 10 Operating Budget per HOA Brick Entrance Monument Repairs 3 ea. $850.00 $2,550.00 10 7 Concrete Perimeter Wall @ Playground Area 200 lin. ft. $0.00 $0.00 11 5 Operating Budget per HOA Concrete Sidewalk Repairs (~114,825 sf - Periodic) 11,482 sq. ft. $0.00 $0.00 12 6 Operating Budget per HOA Concrete Street Partial Replacement (~360,750 sf total) 18,037 sq. ft. $9.50 $171,351.50 10 7 5% of total Concrete Street Repairs / Crack Seal 1 lot $45,000.00 $45,000.00 10 6 Electrical Panels 5 ea. $0.00 $0.00 20 5 Operating Budget per HOA Irrigation Controllers 5 ea. $0.00 $0.00 11 4 Operating Budget per HOA Lake-Partial Dredging/Maintenance of Lake 1 lot $22,000.00 $22,000.00 15 8 Based on 2010 Cost Inflated Ornamental Iron Fencing - Along FM 1378 1,470 lin. ft. $62.00 $91,140.00 45 27 Ornamental Iron Fencing - Pool Area 250 lin. ft. $70.00 $17,500.00 36 18 Ornamental Street Lights - Clean/Prime/Paint 21 ea. $250.00 $5,250.00 8 2 Perimeter Brick Fencing Repairs 975 lin. ft. $25.00 $24,375.00 8 0 Stain Wood Bridge Across Creek 1 lot $0.00 $0.00 5 0 Operating Budget per HOA Wash & Stain Board-On-Board Cedar Fencing @ Pool Area 225 lin. ft. $0.00 $0.00 5 4 Operating Budget per HOA Wood Bridge Across Creek 1 lot $9,500.00 $9,500.00 20 13 Building Exterior Wash & Stain Cabana Cedar Overhang & Paneling 1 lot $0.00 $0.00 5 4 Operating Budget per HOA Composition Shingle Roof 300 sq. ft. $4.25 $1,275.00 20 2 Standing Seam Metal Roof 375 sq. ft. $7.00 $2,625.00 40 22 Building Interior Replace Restroom Fixtures 1 lot $0.00 $0.00 22 4 Operating Budget per HOA Mechanical Entrance / Exit Gate Controllers 3 ea. $1,100.00 $3,300.00 8 6 Operating Budget per HOA Entrance / Exit Gate Equipment 12 ea. $2,800.00 $33,600.00 10 2 Operating Budget per HOA Lake Fountain & Equipment / Controls 1 lot $8,000.00 $8,000.00 15 12 Operating Budget per HOA Pool Equipment Pumps 1 ea. $1,800.00 $1,800.00 8 6 Operating Budget per HOA Pool Filters 4 ea. $2,100.00 $8,400.00 21 15 Operating Budget per HOA Surveillance Cameras 6 ea. $325.00 $1,950.00 4 2 Surveillance Equipment Upgrade 1 lot $8,000.00 $8,000.00 12 6 Includes router, server, DVR, power supply Walkway Gate Controllers (Incl. Pool Area) 7 ea. $600.00 $4,200.00 20 2 Operating Budget per HOA Pool Pump Upgrade 1 ea. $1,800.00 $1,800.00 5 0 Per invoice Baby Pool Pump Upgrade 1 ea. $1,300.00 $1,300.00 5 0 Per invoice Amenities BBQ Replacement 4 ea. $250.00 $1,000.00 20 12 Concrete Kool-Deck Pool Decking Repairs (Periodic) 2,730 sq. ft. $3.25 $8,872.50 10 0 Metal Park Benchs & Trash Receptacles 1 lot $1,500.00 $1,500.00 30 17 Park Bench Replacement 2 ea. $500.00 $1,000.00 30 24 Picnic Benches @ Common Area Along Creek 5 ea. $450.00 $2,250.00 16 14 Playground Equipment Replacement 1 lot $35,000.00 $35,000.00 35 17 Pool Furniture 1 lot $0.00 $0.00 7 2 Operating Budget per HOA Re-seal Coping To Decking Joint 175 lin. ft. $5.50 $962.50 4 0 Re-surface Pool & Wading Pool 2,150 sq. ft. $6.50 $13,975.00 8 6 Additional Pool Work for 2018 1 lot $1,400.00 $1,400.00 5 0 Per invoice Other Reserve Study Updates 1 ea. $2,300.00 $2,300.00 4 4 Contingency 1 ea. $3,540.00 $3,540.00 1 0 Totals $542,386.50 * Costs are typically 10%± ** Reserve study is based on a 30 year projection of non-annual maintenance Total Over Term $1,410,042.00 Criterium Engineers Page 2 of 12 4/16/2018
Reserve Study Worksheet - Annual Expense By Year Year: 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Year Number: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Site Asphalt Walking Trail Repairs (Periodic) 5,670 0 0 0 0 0 0 0 5,670 0 0 0 0 0 0 Board-On-Board Cedar Fencing @ Pool Area 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Brick Entrance Monument Repairs 0 0 0 0 0 0 0 2,550 0 0 0 0 0 0 0 Concrete Perimeter Wall @ Playground Area 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Concrete Sidewalk Repairs (~114,825 sf - Periodic) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Concrete Street Partial Replacement (~360,750 sf total) 0 0 0 0 0 0 0 171,352 0 0 0 0 0 0 0 Concrete Street Repairs / Crack Seal 0 0 0 0 0 0 45,000 0 0 0 0 0 0 0 0 Electrical Panels 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Irrigation Controllers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lake-Partial Dredging/Maintenance of Lake 0 0 0 0 0 0 0 0 22,000 0 0 0 0 0 0 Ornamental Iron Fencing - Along FM 1378 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ornamental Iron Fencing - Pool Area 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ornamental Street Lights - Clean/Prime/Paint 0 0 5,250 0 0 0 0 0 0 0 5,250 0 0 0 0 Perimeter Brick Fencing Repairs 24,375 0 0 0 0 0 0 0 24,375 0 0 0 0 0 0 Stain Wood Bridge Across Creek 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Wash & Stain Board-On-Board Cedar Fencing @ Pool Area 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Wood Bridge Across Creek 0 0 0 0 0 0 0 0 0 0 0 0 0 9,500 0 Building Exterior Wash & Stain Cabana Cedar Overhang & Paneling 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Composition Shingle Roof 0 0 1,275 0 0 0 0 0 0 0 0 0 0 0 0 Standing Seam Metal Roof 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Building Interior Replace Restroom Fixtures 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mechanical Entrance / Exit Gate Controllers 0 0 0 0 0 0 3,300 0 0 0 0 0 0 0 3,300 Entrance / Exit Gate Equipment 0 0 33,600 0 0 0 0 0 0 0 0 0 33,600 0 0 Lake Fountain & Equipment / Controls 0 0 0 0 0 0 0 0 0 0 0 0 8,000 0 0 Pool Equipment Pumps 0 0 0 0 0 0 1,800 0 0 0 0 0 0 0 1,800 Pool Filters 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Surveillance Cameras 0 0 1,950 0 0 0 1,950 0 0 0 1,950 0 0 0 1,950 Surveillance Equipment Upgrade 0 0 0 0 0 0 8,000 0 0 0 0 0 0 0 0 Walkway Gate Controllers (Incl. Pool Area) 0 0 4,200 0 0 0 0 0 0 0 0 0 0 0 0 Pool Pump Upgrade 1,800 0 0 0 0 1,800 0 0 0 0 1,800 0 0 0 0 Baby Pool Pump Upgrade 1,300 0 0 0 0 1,300 0 0 0 0 1,300 0 0 0 0 Amenities BBQ Replacement 0 0 0 0 0 0 0 0 0 0 0 0 1,000 0 0 Concrete Kool-Deck Pool Decking Repairs (Periodic) 8,873 0 0 0 0 0 0 0 0 0 8,873 0 0 0 0 Metal Park Benchs & Trash Receptacles 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Park Bench Replacement 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Picnic Benches @ Common Area Along Creek 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,250 Playground Equipment Replacement 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Pool Furniture 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Re-seal Coping To Decking Joint 963 0 0 0 963 0 0 0 963 0 0 0 963 0 0 Re-surface Pool & Wading Pool 0 0 0 0 0 0 13,975 0 0 0 0 0 0 0 13,975 Additional Pool Work for 2018 1,400 0 0 0 0 1,400 0 0 0 0 1,400 0 0 0 0 Other Reserve Study Updates 0 0 0 0 2,300 0 0 0 2,300 0 0 0 2,300 0 0 Contingency 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 Total Costs 47,920 3,540 49,815 3,540 6,803 8,040 77,565 177,442 58,848 3,540 24,113 3,540 49,403 13,040 26,815 Total Costs Adjusted For 3% Inflation 47,920 3,646 52,849 3,868 7,656 9,321 92,617 218,231 74,546 4,619 32,405 4,900 70,436 19,150 40,560 Criterium Engineers Page 3 of 12 4/16/2018
Reserve Study Worksheet - Annual Expense By Year Year: 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Year Number: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Site Asphalt Walking Trail Repairs (Periodic) 0 5,670 0 0 0 0 0 0 0 5,670 0 0 0 0 0 Board-On-Board Cedar Fencing @ Pool Area 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Brick Entrance Monument Repairs 0 0 2,550 0 0 0 0 0 0 0 0 0 2,550 0 0 Concrete Perimeter Wall @ Playground Area 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Concrete Sidewalk Repairs (~114,825 sf - Periodic) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Concrete Street Partial Replacement (~360,750 sf total) 0 0 171,352 0 0 0 0 0 0 0 0 0 171,352 0 0 Concrete Street Repairs / Crack Seal 0 45,000 0 0 0 0 0 0 0 0 0 45,000 0 0 0 Electrical Panels 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Irrigation Controllers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lake-Partial Dredging/Maintenance of Lake 0 0 0 0 0 0 0 0 22,000 0 0 0 0 0 0 Ornamental Iron Fencing - Along FM 1378 0 0 0 0 0 0 0 0 0 0 0 0 91,140 0 0 Ornamental Iron Fencing - Pool Area 0 0 0 17,500 0 0 0 0 0 0 0 0 0 0 0 Ornamental Street Lights - Clean/Prime/Paint 0 0 0 5,250 0 0 0 0 0 0 0 5,250 0 0 0 Perimeter Brick Fencing Repairs 0 24,375 0 0 0 0 0 0 0 24,375 0 0 0 0 0 Stain Wood Bridge Across Creek 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Wash & Stain Board-On-Board Cedar Fencing @ Pool Area 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Wood Bridge Across Creek 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Building Exterior Wash & Stain Cabana Cedar Overhang & Paneling 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Composition Shingle Roof 0 0 0 0 0 0 0 1,275 0 0 0 0 0 0 0 Standing Seam Metal Roof 0 0 0 0 0 0 0 2,625 0 0 0 0 0 0 0 Building Interior Replace Restroom Fixtures 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mechanical Entrance / Exit Gate Controllers 0 0 0 0 0 0 0 3,300 0 0 0 0 0 0 0 Entrance / Exit Gate Equipment 0 0 0 0 0 0 0 33,600 0 0 0 0 0 0 0 Lake Fountain & Equipment / Controls 0 0 0 0 0 0 0 0 0 0 0 0 8,000 0 0 Pool Equipment Pumps 0 0 0 0 0 0 0 1,800 0 0 0 0 0 0 0 Pool Filters 8,400 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Surveillance Cameras 0 0 0 1,950 0 0 0 1,950 0 0 0 1,950 0 0 0 Surveillance Equipment Upgrade 0 0 0 8,000 0 0 0 0 0 0 0 0 0 0 0 Walkway Gate Controllers (Incl. Pool Area) 0 0 0 0 0 0 0 4,200 0 0 0 0 0 0 0 Pool Pump Upgrade 1,800 0 0 0 0 1,800 0 0 0 0 1,800 0 0 0 0 Baby Pool Pump Upgrade 1,300 0 0 0 0 1,300 0 0 0 0 1,300 0 0 0 0 Amenities BBQ Replacement 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Concrete Kool-Deck Pool Decking Repairs (Periodic) 0 0 0 0 0 8,873 0 0 0 0 0 0 0 0 0 Metal Park Benchs & Trash Receptacles 0 0 1,500 0 0 0 0 0 0 0 0 0 0 0 0 Park Bench Replacement 0 0 0 0 0 0 0 0 0 1,000 0 0 0 0 0 Picnic Benches @ Common Area Along Creek 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Playground Equipment Replacement 0 0 35,000 0 0 0 0 0 0 0 0 0 0 0 0 Pool Furniture 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Re-seal Coping To Decking Joint 0 963 0 0 0 963 0 0 0 963 0 0 0 963 0 Re-surface Pool & Wading Pool 0 0 0 0 0 0 0 13,975 0 0 0 0 0 0 0 Additional Pool Work for 2018 1,400 0 0 0 0 1,400 0 0 0 0 1,400 0 0 0 0 Other Reserve Study Updates 0 2,300 0 0 0 2,300 0 0 0 2,300 0 0 0 2,300 0 Contingency 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 3,540 Total Costs 16,440 81,848 213,942 36,240 3,540 20,175 3,540 66,265 25,540 37,848 8,040 55,740 276,582 6,803 3,540 Total Costs Adjusted For 3% Inflation 25,613 131,341 353,613 61,696 6,207 36,438 6,585 126,971 50,405 76,936 16,834 120,208 614,367 15,564 8,342 Criterium Engineers Page 4 of 12 4/16/2018
Reserve Study Worksheet - Current Funding Levels Beginning Year Reserve Fund Fee Special Investment Total Capital Ending Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance 2018 1 $136,248 $0 $0 $442 $442 $47,920 $88,769 2019 2 $88,769 $0 $0 $426 $426 $3,646 $85,549 2020 3 $85,549 $0 $0 $163 $163 $52,849 $32,863 2021 4 $32,863 $0 $0 $145 $145 $3,868 $29,140 2022 5 $29,140 $0 $0 $107 $107 $7,656 $21,591 2023 6 $21,591 $0 $0 $61 $61 $9,321 $12,332 2024 7 $12,332 $0 $0 $0 $0 $92,617 ($80,285) 2025 8 ($80,285) $0 $0 $0 $0 $218,231 ($298,515) 2026 9 ($298,515) $0 $0 $0 $0 $74,546 ($373,062) 2027 10 ($373,062) $0 $0 $0 $0 $4,619 ($377,680) 2028 11 ($377,680) $0 $0 $0 $0 $32,405 ($410,086) 2029 12 ($410,086) $0 $0 $0 $0 $4,900 ($414,986) 2030 13 ($414,986) $0 $0 $0 $0 $70,436 ($485,422) 2031 14 ($485,422) $0 $0 $0 $0 $19,150 ($504,572) 2032 15 ($504,572) $0 $0 $0 $0 $40,560 ($545,132) 2033 16 ($545,132) $0 $0 $0 $0 $25,613 ($570,745) 2034 17 ($570,745) $0 $0 $0 $0 $131,341 ($702,086) 2035 18 ($702,086) $0 $0 $0 $0 $353,613 ($1,055,699) 2036 19 ($1,055,699) $0 $0 $0 $0 $61,696 ($1,117,395) 2037 20 ($1,117,395) $0 $0 $0 $0 $6,207 ($1,123,602) 2038 21 ($1,123,602) $0 $0 $0 $0 $36,438 ($1,160,041) 2039 22 ($1,160,041) $0 $0 $0 $0 $6,585 ($1,166,626) 2040 23 ($1,166,626) $0 $0 $0 $0 $126,971 ($1,293,597) 2041 24 ($1,293,597) $0 $0 $0 $0 $50,405 ($1,344,002) 2042 25 ($1,344,002) $0 $0 $0 $0 $76,936 ($1,420,938) 2043 26 ($1,420,938) $0 $0 $0 $0 $16,834 ($1,437,772) 2044 27 ($1,437,772) $0 $0 $0 $0 $120,208 ($1,557,981) 2045 28 ($1,557,981) $0 $0 $0 $0 $614,367 ($2,172,348) 2046 29 ($2,172,348) $0 $0 $0 $0 $15,564 ($2,187,912) 2047 30 ($2,187,912) $0 $0 $0 $0 $8,342 ($2,196,254) Criterium Engineers Page 5 of 12 4/16/2018
Reserve Study Worksheet - Alternative 1, Level Funding with Step Every Year Beginning Year Reserve Fund Fee Special Investment Total Capital Ending Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance 2018 1 $136,248 $14,600 $0 $515 $15,115 $47,920 $103,442 2019 2 $103,442 $21,900 $0 $608 $22,508 $3,646 $122,304 2020 3 $122,304 $29,200 $0 $493 $29,693 $52,849 $99,149 2021 4 $99,149 $36,500 $0 $659 $37,159 $3,868 $132,440 2022 5 $132,440 $43,800 $0 $843 $44,643 $7,656 $169,426 2023 6 $169,426 $51,100 $0 $1,056 $52,156 $9,321 $212,262 2024 7 $212,262 $58,400 $0 $890 $59,290 $92,617 $178,935 2025 8 $178,935 $65,700 $0 $132 $65,832 $218,231 $26,537 2026 9 $26,537 $73,000 $0 $125 $73,125 $74,546 $25,115 2027 10 $25,115 $80,300 $0 $504 $80,804 $4,619 $101,300 2028 11 $101,300 $87,600 $0 $782 $88,382 $32,405 $157,278 2029 12 $157,278 $94,900 $0 $1,236 $96,136 $4,900 $248,514 2030 13 $248,514 $94,900 $0 $1,365 $96,265 $70,436 $274,343 2031 14 $274,343 $94,900 $0 $1,750 $96,650 $19,150 $351,843 2032 15 $351,843 $94,900 $0 $2,031 $96,931 $40,560 $408,214 2033 16 $408,214 $94,900 $0 $2,388 $97,288 $25,613 $479,889 2034 17 $479,889 $94,900 $0 $2,217 $97,117 $131,341 $445,665 2035 18 $445,665 $94,900 $0 $935 $95,835 $353,613 $187,887 2036 19 $187,887 $94,900 $0 $1,105 $96,005 $61,696 $222,196 2037 20 $222,196 $94,900 $0 $1,554 $96,454 $6,207 $312,443 2038 21 $312,443 $94,900 $0 $1,855 $96,755 $36,438 $372,759 2039 22 $372,759 $94,900 $0 $2,305 $97,205 $6,585 $463,379 2040 23 $463,379 $94,900 $0 $2,157 $97,057 $126,971 $433,465 2041 24 $433,465 $94,900 $0 $2,390 $97,290 $50,405 $480,350 2042 25 $480,350 $94,900 $0 $2,492 $97,392 $76,936 $500,805 2043 26 $500,805 $94,900 $0 $2,894 $97,794 $16,834 $581,765 2044 27 $581,765 $94,900 $0 $2,782 $97,682 $120,208 $559,239 2045 28 $559,239 $94,900 $0 $199 $95,099 $614,367 $39,971 2046 29 $39,971 $94,900 $0 $597 $95,497 $15,564 $119,904 2047 30 $119,904 $94,900 $0 $1,032 $95,932 $8,342 $207,494 Criterium Engineers Page 6 of 12 4/16/2018
Reserve Study Worksheet - Alternative 1, Level Funding with Step Every Year Beginning Balance as of start of year beginning Jan 2018: $136,248 CONTRIBUTIONS SETTINGS (analyzed by unit/year) FIRST YR LAST YR Starting amount ($): $50.00 $14,600.00 $94,900.00 per year Increment by ($): $25.00 $50.00 $325.00 per unit per year Every 1 year $1,216.67 $7,908.33 per month Frequency: 11 time $4.17 $27.08 per unit per month Threshold: $0.00 Projected Annual Funding and Expenditures: Year: 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Year Number: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 End of Year Reserve Fund Balance 103,442 122,304 99,149 132,440 169,426 212,262 178,935 26,537 25,115 101,300 157,278 248,514 274,343 351,843 408,214 Capital Expenditures: 47,920 3,646 52,849 3,868 7,656 9,321 92,617 218,231 74,546 4,619 32,405 4,900 70,436 19,150 40,560 Special Assessment - - - - - - - - - - - - - - - Total Revenue (all sources) 15,115 22,508 29,693 37,159 44,643 52,156 59,290 65,832 73,125 80,804 88,382 96,136 96,265 96,650 96,931 Target Funding Requirement - - - - - - - - - - - - - - - Year: 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Year Number: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 End of Year Reserve Fund Balance 479,889 445,665 187,887 222,196 312,443 372,759 463,379 433,465 480,350 500,805 581,765 559,239 39,971 119,904 207,494 Capital Expenditures: 25,613 131,341 353,613 61,696 6,207 36,438 6,585 126,971 50,405 76,936 16,834 120,208 614,367 15,564 8,342 Special Assessment - - - - - - - - - - - - - - - Total Revenue (all sources) 97,288 97,117 95,835 96,005 96,454 96,755 97,205 97,057 97,290 97,392 97,794 97,682 95,099 95,497 95,932 Target Funding Requirement - - - - - - - - - - - - - - - Reserve Study Worksheet - Alternative 1, Level Funding with Step Every Year 596,310 558,188 520,067 481,945 443,824 405,702 367,581 329,459 Dollars 291,338 253,216 215,095 176,973 138,852 100,730 62,609 24,487 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Funding Years Criterium Engineers Page 7 of 12 4/16/2018
Reserve Study Worksheet - Alternative 2, Escalating Funding at 8% per Year Beginning Year Reserve Fund Fee Special Investment Total Capital Ending Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance 2018 1 $136,248 $30,660 $0 $595 $31,255 $47,920 $119,582 2019 2 $119,582 $33,113 $0 $745 $33,858 $3,646 $149,794 2020 3 $149,794 $35,762 $0 $664 $36,425 $52,849 $133,371 2021 4 $133,371 $38,623 $0 $841 $39,463 $3,868 $168,966 2022 5 $168,966 $41,713 $0 $1,015 $42,728 $7,656 $204,038 2023 6 $204,038 $45,050 $0 $1,199 $46,248 $9,321 $240,965 2024 7 $240,965 $48,654 $0 $985 $49,639 $92,617 $197,987 2025 8 $197,987 $52,546 $0 $162 $52,707 $218,231 $32,464 2026 9 $32,464 $56,750 $0 $73 $56,823 $74,546 $14,741 2027 10 $14,741 $61,289 $0 $357 $61,647 $4,619 $71,768 2028 11 $71,768 $66,193 $0 $528 $66,720 $32,405 $106,083 2029 12 $106,083 $71,488 $0 $863 $72,351 $4,900 $173,535 2030 13 $173,535 $77,207 $0 $902 $78,109 $70,436 $181,207 2031 14 $181,207 $83,384 $0 $1,227 $84,611 $19,150 $246,668 2032 15 $246,668 $90,054 $0 $1,481 $91,535 $40,560 $297,643 2033 16 $297,643 $97,259 $0 $1,846 $99,105 $25,613 $371,136 2034 17 $371,136 $105,039 $0 $1,724 $106,764 $131,341 $346,558 2035 18 $346,558 $105,039 $0 $490 $105,529 $353,613 $98,475 2036 19 $98,475 $105,039 $0 $709 $105,748 $61,696 $142,527 2037 20 $142,527 $105,039 $0 $1,207 $106,246 $6,207 $242,566 2038 21 $242,566 $105,039 $0 $1,556 $106,595 $36,438 $312,723 2039 22 $312,723 $105,039 $0 $2,056 $107,095 $6,585 $413,232 2040 23 $413,232 $105,039 $0 $1,957 $106,996 $126,971 $393,258 2041 24 $393,258 $105,039 $0 $2,239 $107,279 $50,405 $450,131 2042 25 $450,131 $105,039 $0 $2,391 $107,431 $76,936 $480,626 2043 26 $480,626 $105,039 $0 $2,844 $107,884 $16,834 $571,675 2044 27 $571,675 $105,039 $0 $2,783 $107,822 $120,208 $559,289 2045 28 $559,289 $105,039 $0 $250 $105,289 $614,367 $50,211 2046 29 $50,211 $105,039 $0 $698 $105,738 $15,564 $140,385 2047 30 $140,385 $105,039 $0 $1,185 $106,225 $8,342 $238,267 Criterium Engineers Page 8 of 12 4/16/2018
Reserve Study Worksheet - Alternative 2, Escalating Funding at 8% per Year Beginning Balance as of start of year beginning Jan 2018: $136,248 CONTRIBUTIONS SETTINGS (analyzed by unit/year) FIRST YR LAST YR Starting amount ($): $105.00 $30,660.00 $105,039.40 per year Increment by (%): 8 $105.00 $359.72 per unit per year Step (%): 0 $2,555.00 $8,753.28 per month Every 1 year $8.75 $29.98 per unit per month Frequency: 16 time Threshold: $0.00 Projected Annual Funding and Expenditures: Year: 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Year Number: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 End of Year Reserve Fund Balance 119,582 149,794 133,371 168,966 204,038 240,965 197,987 32,464 14,741 71,768 106,083 173,535 181,207 246,668 297,643 Capital Expenditures: 47,920 3,646 52,849 3,868 7,656 9,321 92,617 218,231 74,546 4,619 32,405 4,900 70,436 19,150 40,560 Special Assessment - - - - - - - - - - - - - - - Total Revenue (all sources) 31,255 33,858 36,425 39,463 42,728 46,248 49,639 52,707 56,823 61,647 66,720 72,351 78,109 84,611 91,535 Target Funding Requirement - - - - - - - - - - - - - - - Year: 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Year Number: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 End of Year Reserve Fund Balance 371,136 346,558 98,475 142,527 242,566 312,723 413,232 393,258 450,131 480,626 571,675 559,289 50,211 140,385 238,267 Capital Expenditures: 25,613 131,341 353,613 61,696 6,207 36,438 6,585 126,971 50,405 76,936 16,834 120,208 614,367 15,564 8,342 Special Assessment - - - - - - - - - - - - - - - Total Revenue (all sources) 99,105 106,764 105,529 105,748 106,246 106,595 107,095 106,996 107,279 107,431 107,884 107,822 105,289 105,738 106,225 Target Funding Requirement - - - - - - - - - - - - - - - Reserve Study Worksheet - Alternative 2, Escalating Funding at 8% per Year 585,968 547,862 509,755 471,649 433,542 395,436 357,330 319,223 Dollars 281,117 243,010 204,904 166,798 128,691 90,585 52,478 14,372 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Funding Years Criterium Engineers Page 9 of 12 4/16/2018
Reserve Study Worksheet - Alternative 3, Escalating Funding with Special Assessments Beginning Year Reserve Fund Fee Special Investment Total Capital Ending Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance 2018 1 $136,248 $0 $0 $442 $442 $47,920 $88,769 2019 2 $88,769 $0 $0 $426 $426 $3,646 $85,549 2020 3 $85,549 $0 $0 $163 $163 $52,849 $32,863 2021 4 $32,863 $0 $0 $145 $145 $3,868 $29,140 2022 5 $29,140 $0 $0 $107 $107 $7,656 $21,591 2023 6 $21,591 $0 $0 $61 $61 $9,321 $12,332 2024 7 $12,332 $0 $420,000 $1,699 $421,699 $92,617 $341,414 2025 8 $341,414 $0 $0 $616 $616 $218,231 $123,799 2026 9 $123,799 $0 $0 $246 $246 $74,546 $49,499 2027 10 $49,499 $0 $0 $224 $224 $4,619 $45,105 2028 11 $45,105 $0 $0 $63 $63 $32,405 $12,763 2029 12 $12,763 $0 $0 $39 $39 $4,900 $7,902 2030 13 $7,902 $0 $500,000 $2,187 $502,187 $70,436 $439,653 2031 14 $439,653 $0 $0 $2,103 $2,103 $19,150 $422,606 2032 15 $422,606 $0 $0 $1,910 $1,910 $40,560 $383,956 2033 16 $383,956 $0 $0 $1,792 $1,792 $25,613 $360,135 2034 17 $360,135 $0 $0 $1,144 $1,144 $131,341 $229,938 2035 18 $229,938 $0 $410,000 $1,432 $411,432 $353,613 $287,757 2036 19 $287,757 $0 $0 $1,130 $1,130 $61,696 $227,191 2037 20 $227,191 $0 $0 $1,105 $1,105 $6,207 $222,088 2038 21 $222,088 $0 $0 $928 $928 $36,438 $186,578 2039 22 $186,578 $0 $0 $900 $900 $6,585 $180,893 2040 23 $180,893 $0 $0 $270 $270 $126,971 $54,192 2041 24 $54,192 $0 $0 $19 $19 $50,405 $3,805 2042 25 $3,805 $0 $1,100,000 $5,134 $1,105,134 $76,936 $1,032,004 2043 26 $1,032,004 $0 $0 $5,076 $5,076 $16,834 $1,020,245 2044 27 $1,020,245 $0 $0 $4,500 $4,500 $120,208 $904,537 2045 28 $904,537 $0 $0 $1,451 $1,451 $614,367 $291,621 2046 29 $291,621 $0 $0 $1,380 $1,380 $15,564 $277,437 2047 30 $277,437 $0 $0 $1,345 $1,345 $8,342 $270,440 Criterium Engineers Page 10 of 12 4/16/2018
Reserve Study Worksheet - Alternative 3, Escalating Funding with Special Assessments Beginning Balance as of start of year beginning Jan 2018: $136,248 CONTRIBUTIONS SETTINGS (analyzed by unit/year) FIRST YR LAST YR Starting amount ($): $0.00 $0.00 $0.00 per year Increment by (%): 3 $0.00 $0.00 per unit per year Step (%): 0 $0.00 $0.00 per month Every 3 year $0.00 $0.00 per unit per month Frequency: 3 time Threshold: $0.00 Projected Annual Funding and Expenditures: Year: 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Year Number: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 End of Year Reserve Fund Balance 88,769 85,549 32,863 29,140 21,591 12,332 341,414 123,799 49,499 45,105 12,763 7,902 439,653 422,606 383,956 Capital Expenditures: 47,920 3,646 52,849 3,868 7,656 9,321 92,617 218,231 74,546 4,619 32,405 4,900 70,436 19,150 40,560 Special Assessment - - - - - - 420,000 - - - - - 500,000 - - Total Revenue (all sources) 442 426 163 145 107 61 421,699 616 246 224 63 39 502,187 2,103 1,910 Target Funding Requirement - - - - - - - - - - - - - - - Year: 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Year Number: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 End of Year Reserve Fund Balance 360,135 229,938 287,757 227,191 222,088 186,578 180,893 54,192 3,805 1,032,004 1,020,245 904,537 291,621 277,437 270,440 Capital Expenditures: 25,613 131,341 353,613 61,696 6,207 36,438 6,585 126,971 50,405 76,936 16,834 120,208 614,367 15,564 8,342 Special Assessment - - 410,000 - - - - - - 1,100,000 - - - - - Total Revenue (all sources) 1,792 1,144 411,432 1,130 1,105 928 900 270 19 1,105,134 5,076 4,500 1,451 1,380 1,345 Target Funding Requirement - - - - - - - - - - - - - - - Reserve Study Worksheet - Alternative 3, Escalating Funding with Special Assessments 1,057,804 987,531 917,258 846,985 776,712 706,439 636,166 565,893 Dollars 495,621 425,348 355,075 284,802 214,529 144,256 73,983 3,710 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Funding Years Criterium Engineers Page 11 of 12 4/16/2018
Summary of Reserve Ending Balances Year Yearly Year Number Expenditures Current Alt. 1 Alt. 2 Alt. 3 2018 1 $47,920 $88,769 $103,442 $119,582 $88,769 2019 2 $3,646 $85,549 $122,304 $149,794 $85,549 2020 3 $52,849 $32,863 $99,149 $133,371 $32,863 2021 4 $3,868 $29,140 $132,440 $168,966 $29,140 2022 5 $7,656 $21,591 $169,426 $204,038 $21,591 2023 6 $9,321 $12,332 $212,262 $240,965 $12,332 2024 7 $92,617 ($80,285) $178,935 $197,987 $341,414 2025 8 $218,231 ($298,515) $26,537 $32,464 $123,799 2026 9 $74,546 ($373,062) $25,115 $14,741 $49,499 2027 10 $4,619 ($377,680) $101,300 $71,768 $45,105 2028 11 $32,405 ($410,086) $157,278 $106,083 $12,763 2029 12 $4,900 ($414,986) $248,514 $173,535 $7,902 2030 13 $70,436 ($485,422) $274,343 $181,207 $439,653 2031 14 $19,150 ($504,572) $351,843 $246,668 $422,606 2032 15 $40,560 ($545,132) $408,214 $297,643 $383,956 2033 16 $25,613 ($570,745) $479,889 $371,136 $360,135 2034 17 $131,341 ($702,086) $445,665 $346,558 $229,938 2035 18 $353,613 ($1,055,699) $187,887 $98,475 $287,757 2036 19 $61,696 ($1,117,395) $222,196 $142,527 $227,191 2037 20 $6,207 ($1,123,602) $312,443 $242,566 $222,088 2038 21 $36,438 ($1,160,041) $372,759 $312,723 $186,578 2039 22 $6,585 ($1,166,626) $463,379 $413,232 $180,893 2040 23 $126,971 ($1,293,597) $433,465 $393,258 $54,192 2041 24 $50,405 ($1,344,002) $480,350 $450,131 $3,805 2042 25 $76,936 ($1,420,938) $500,805 $480,626 $1,032,004 2043 26 $16,834 ($1,437,772) $581,765 $571,675 $1,020,245 2044 27 $120,208 ($1,557,981) $559,239 $559,289 $904,537 2045 28 $614,367 ($2,172,348) $39,971 $50,211 $291,621 2046 29 $15,564 ($2,187,912) $119,904 $140,385 $277,437 2047 30 $8,342 ($2,196,254) $207,494 $238,267 $270,440 Summary of Reserve Ending Balances $1,057,804 $837,206 $616,609 $396,011 $175,413 ($45,184) 1 ($265,782) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Dollars ($486,380) ($706,977) ($927,575) ($1,148,173) ($1,368,770) ($1,589,368) ($1,809,966) ($2,030,563) ($2,251,161) Funding Years Current Alt. 1 Alt. 2 Alt. 3 Criterium Engineers Page 12 of 12 4/16/2018
Appendix B: PHOTOGRAPHS
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Entrance Monument Photo Number 1 Description: Concrete Street Photo Number 2
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Concrete Street Photo Number 3 Description: Metal Fencing Photo Number 4
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Brick Fencing Photo Number 5 Description: Amenity Center Parking Photo Number 6
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Front Elevation Cabana Photo Number 7 Description: Cabana Exterior Photo Number 8
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Rear Elevation Cabana Photo Number 9 Description: Gate Controller Photo Number 10
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Gates and Motors Photo Number 11 Description: Irrigation Controller Photo Number 12
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Pool Equipement Photo Number 13 Description: Pool Fencing Photo Number 14
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Pool and Deck Photo Number 15 Description: Pool Furniture Photo Number 16
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Playground Equipment Photo Number 17 Description: Walking Trail Photo Number 18
Location: Photo Taken by: Date: Riverchase Phillip Nieman, P.E. February 6, 2018 Description: Pond and Fountain Photo Number 19 Description: Wood Bridge Photo Number 20