RESERVE STUDY THE VILLAGE AT HIGHLANDS CHARLOTTESVILLE, VA Prepared for: VILLAGE AT HIGHLANDS OWNERS ASSOCIATION C/O ASSOCIA COMMUNITY GROUP 1413 SACHEM PLACE, SUITE 2 CHARLOTTESVILLE, VA 22901 Prepared by: 22 MONUMENT SQUARE PORTLAND, MAINE (800) 242-1969, EXT 111 Final Submittal September 1, 2015 Project Number: R15-1014
CONTENTS 1.0 INTRODUCTION... 1 2.0 EXECUTIVE SUMMARY... 2 3.0 PURPOSE & SCOPE... 4 4.0 DESCRIPTION... 7 5.0 OBSERVATIONS... 7 6.0 RESERVE FUND ANALYSIS... 10 7.0 LIMITATIONS... 12 8.0 CONCLUSION. 13 APPENDIX A: RESERVE FUND PROJECTIONS APPENDIX B: PROJECT PHOTOGRAPHS APPENDIX C: PROFESSIONAL QUALIFICATIONS Reserve Study Village at Highlands Owners Association
1.0 INTRODUCTION. The Village at Highlands Owners Association, through Mr. Paul Carrier of Associa Community Group, authorized Criterium Engineers to conduct a Property Evaluation and Reserve Study for the Village at Highlands community, located at Mechums River Road and Gate Post Lane,. 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 owners. Typically, a community association has two broad cash requirements: the general operating reserves and the capital repair and replacement reserves. In this report, we will focus on those items falling under the capital repair and replacement reserve criteria. We have projected a capital repair and replacement reserve for twenty-five (25) years. The first five years are the most reliable. Such a study should be updated every three to five years. This report is structured to analyze common 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. Reserve Study Village at Highlands Owners Association Page 1
2.0 EXECUTIVE SUMMARY The Village at Highlands community is located in Crozet within Albemarle County in Virginia. It is approximately one mile east of the intersection of Route 250 and Route 240 (Three Notch d Road). The property consists of 50 building lots along Mechums River Road and Gate Post Lane. The dwellings are constructed as duplexes on two adjacent lots. There are presently 50 homes with the last four completed in 2012. The building and grounds are generally in good condition. Based on our evaluation, the current level of contributions to reserves for this community will prove inadequate to maintain positive capital reserve fund balances, and result in deficits starting in 2031, Year 16 of the planning period. We have developed two alternate funding plans for the Board s consideration. A more detailed analysis of the reserve fund has been provided in Appendix A. Based on our observations, there are no immediate material deficiencies. Capital expenditures expected over the next twenty-five years are discussed later in this report. For your convenience, we have prepared a summary table of the condition of the major systems of the property. Please see the following page. Reserve Study Village at Highlands Owners Association Page 2
PROPERTY SUMMARY SYSTEM CONDITION ACTIVITY REQUIRED ANTICIPATED YEAR OF ACTIVITY SITE Entrance sign G replace 2016, 2026, 2036 Privacy fences G replace 2024 2028, 2030 Mailboxes G replace Annual allowance, 2016-2036 Mailboxes posts G replace 2026-2030, 2032 Lamp posts G replace 2026 2030, 2032 BUILDING EXTERIOR Buildings G pressure wash Building trim G re-paint Building joints & seams G-F re-caulk 2018 & 2019, 2022 & 2023, 4-year cycle to 2038 & 2039 2022 & 2033, 2030 & 2031, 2038 & 2039 2022 & 2033, 2030 & 2031, 2038 & 2039 Building siding G re-paint 2018 & 2019, 2030 & 2031 Roof G re-surface 2031 2035, 2037 Gutter systems G replace 2031 2035, 2037. Front door G-F refurbish 2016, 2017, 2021, 2022, 2026, 2027, 2031, 3032, 2036. REPAIR ITEMS Roof repair G repair Gutter repair G repair Trim repair G repair Siding repair G repair Annual allowance, 2016-2036 Annual allowance, 2016-2036 Annual allowance, 2016-2036 Annual allowance, 2016-2036 Table 2.1: Summary Reserve Study Village at Highlands Owners Association Page 3
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 Village at Highlands Owners 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 twenty-five 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 Mr. Paul Carrier, Associa Community Group, the Village at Highlands Owners Association, Criterium Engineers, and the standards of the Community Associations Institute. The findings and recommendations are based on interviews with the community s management personnel; a review of available documents; and an investigation of the buildings and site. 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 otherwise noted to be the responsibility of the Association to replace. 2. The component must have an estimated remaining useful life of twenty-five years or less. As the site ages, additional components may need to be added. 3. The funding for replacement should be from one source only, not funded from another area of the budget or through a maintenance contract. 4. The cost of replacement should be high enough to make it financially unsound to fund it from the operating budget. 5. Components, such as 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 and Grounds: The property consists of 50 building lots with 50 homes constructed on them. The site and grounds common items include the mailboxes, lamp posts, privacy fences, and entrance sign. Reserve Study Village at Highlands Owners Association Page 4
Reserve Study Village at Highlands Owners Association Page 5 Building Common Elements: The common elements generally consist of the roof, gutters and downspouts, siding, trim, shutters, front doors and garage doors. The above list was obtained from documents provided by the board and by discussions with some of the board members. We did not inspect any interiors of the homes. This study estimates the funding levels required for maintaining the long term viability of the facility. Our approach involves: 1. Examining association managed equipment, buildings and site facilities. 2. Predicting their remaining service life and, approximating how frequently they will require repair or replacement. 3. Estimating repair or replacement costs (in 2015 dollars) for each capital item. 4. Using data developed in Steps 1, 2 and 3 to project Capital Reserve balances for Years 1 through 25. The statements in this report are opinions about the present condition of 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 and meeting with some board members occurred on the following dates: March 24, 2015 April 23, 2015 The following people were interviewed during our study: Robbie Whitestone, President, Village at Highlands Owners Association. Kendon Stubbs, Treasurer, Village at Highlands Owners Association Treasurer, Robert Nelson, Building Committee Member, Village at Highlands Owners Association. The following documents were made available to us and reviewed: Village at Highlands Home Maintenance Information Quote for roof and gutter replacements by Roof Top Services, dated October 6, 2014. Proposal 1 for painting exterior trim, dated May 22, 2014.
Proposal 2 for painting exterior trim, dated May 7, 2014. Partial copy of the Village at Highlands Covenants, for common items listing. We based our cost estimates on some or all of the following: R.S. Means Our data files on similar projects Actual recent costs obtained from the association Budget pricing from local companies 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. Fair: Component or system falls into one or more of the following categories: a) Evidence of previous repairs not in compliance with commonly accepted practice, b) Workmanship not in compliance with commonly accepted standards, c) Component or system is obsolete, d) Component or system approaching end of expected performance. Repair or replacement is required to prevent further deterioration or to prolong expected life. Poor: Component or system has either failed or cannot be relied upon to continue performing its original function as a result of having exceeded its expected performance, excessive deferred maintenance, or state of disrepair. Present condition could contribute to or cause the deterioration of other adjoining elements or systems. Repair or replacement is required. Adequate: A component or system is of a capacity that is defined as enough for what is required, sufficient, suitable, and/or conforms to standard construction practices. All ratings are determined by comparison to other buildings of similar age and construction type. Further, some details of workmanship and materials will be examined more closely in higher quality buildings where such details typically become more relevant. All directions (left, right, rear, etc.), when used, are taken from the viewpoint of an observer standing in front of a building and facing it. Repair/Replacement Reserves - Non-annual maintenance items that will require significant expenditure over the life of the buildings. Included are items that will reach the end of their estimated useful life during the course of this forecast, or, in the opinion of the investigator, will require attention during that time. Reserve Study Village at Highlands Owners Association Page 6
4.0 DESCRIPTION The Village at Highlands community is located in Crozet within Albemarle County in Virginia. It is approximately one mile east of the intersection of Route 250 and Route 240 (Three Notch d Road). The property consists of 50 building lots along Mechums River Road and Gate Post Lane. The dwellings are constructed as duplexes on two adjacent lots. There are presently 50 homes (25 duplexes). The homes were constructed between 2006 and 2012. There are three different models of homes that have been combined in the duplexes. The models generally range from 1,405 to 2,663 square feet of living area. They are wood framed with brick veneer and cement fiber siding with wood trim. The roof surfaces are of composite shingles. The windows are vinyl framed with double pane glass. Each house has a garage with a single 16 foot or two-8 foot garage doors. Each house has a mailbox located near the street. These are located at the property line with two mailboxes per post. Each lot also has a light fixture mounted on a wood post, which are positioned between the front of the house and the street. The duplexes have 12 foot long privacy fences attached to the rear of the building between the two back yards. Surface drainage from the properties generally flows toward drainage ditches at the street or to the rear of the properties to drainage ditches. 5.0 OBSERVATIONS The following key observations were made about the current condition of the common elements of the property. Site and Grounds Entrance sign: There is one sign located at the entrance to the Village at Highlands community on Mechums River Road. The painted and engraved sign is mounted on a brick wall. The sign is generally in good condition. Due to the average useful life, we have estimated that this sign will need to be repaired or replaced on a 10-year cycle starting in 2016. The brick structure appears to be in good condition and should not need repair or replacement within the next 25 years. Privacy fences: The privacy fences are of plastic construction and those inspected were in good condition. With an average useful life of approximately 18 years, replacement of these has been scheduled for 2024 through 2030. As we discussed, one fence was removed between house 1482 and 1480, which you commented that it was to be reinstalled. Furthermore, you commented that the new three-section fence between 4636 and 4634 is considered to be the homeowner s responsibility and not the community association. Mailboxes replace boxes: Reserve Study Village at Highlands Owners Association Page 7
According to our discussions, with your past experience, we have planned replacing two mailboxes per year starting in 2016. Mailboxes replace posts: The mailbox posts are generally in good condition; however, some minor damage was noted on some of the wood posts at grade level. This appears to be caused by mowers. You may want to place mulch around the posts to keep the mowers from hitting them. With an average useful life of approximately 20 years, replacing these posts is scheduled from 2026 through 2032. Lamp posts replace: The decorative lamps and wood posts in front of each home are generally in good condition. The light fixtures and lamps are not considered community property. Therefore, we have not included a repair or replacement budget. With an average useful life of approximately 20 years, replacing these wood lamp posts is scheduled from 2026 through 2032. At 4642, the post is damaged and attempts have been made to brace it. As we discussed, you have plans to replace or properly repair the damaged post in the near future. Building Exterior Overall Painting: The scope of work for painting a whole building includes pressure washing, carpentry repairs as necessary, caulking touchup, and painting of siding, trim, shutters, garage doors associated lamp & mailbox/newspaper posts and gutters (as needed.) This work has been scheduled on a 12 year cycle. The association has found that painting large groups is more efficient and economical. So, this work is scheduled in two groups, consisting of 32 and 18 houses. The first group of 32 houses is scheduled to be painted in 2018 with the remaining 18 houses to follow in 2019. The cycle will repeat in 2030 & 2031. Interim Pressure Washing: Pressure washing to remove overall dirt & mildew from building exteriors and stains from the gutters has been scheduled on a four year cycle. This is scheduled forward from the recent pressure washing activities in 2014 and current plan in 2015. In years when a building is scheduled for overall painting, this budget is not entered in the schedule separately. Interim Caulking Touchup: It was noted during the site visit that some of the windows are not caulked plus some caulked areas are failing (cracked). Caulking around windows and doors and junctions of different building materials has been scheduled Reserve Study Village at Highlands Owners Association Page 8
on an eight year schedule, which coincides with the trim painting schedule. The caulking should be completed prior to painting, especially in those areas where the caulking will also be painted. The houses have been scheduled in the same two groups as the painting. In years when a building is scheduled for overall painting, the caulking budget is not entered in the schedule separately. 32 houses have separate caulking budgets in 2022 and the other 18 in 2023. Interim Trim Painting: Painting the trim on the exterior of the buildings has been scheduled on an eight year cycle which coincides with the caulking schedule. The houses have been scheduled in the same two groups as the painting. In years when a building is scheduled for overall painting, the trim painting budget is not entered in the schedule separately. 32 houses have separate trim painting budgets in 2022 and the other 18 in 2023. Roof: The scope of work for resurfacing the roofs generally includes removal of the existing shingles, pipe flashings and roofing paper; installing new roofing paper, drip edge, shingles and new flashings. The work should also include the shingled areas at the soffit returns and to inspect and repair the copper roofing areas as needed. We have taken our current dollar cost estimate from the price quotation from Roof Top Services. Using a typical expected useful life of 25 years, roof resurfacing has been scheduled to occur in 2031 and run through 2035. The four newer homes are scheduled for resurfacing in 2037. Gutter replacement: This scope of work includes both the gutters and downspouts. For economy, the next cycle of this work has been scheduled to coincide with the roof resurfacing in 2031 through 2035 and finishing up in 2037. Front door refurbishment: As a result of discussion at our meeting on April 24, 2015; we have scheduled the front door refurbishing in two groups. The group of 32 homes will commence in 2016 and continue over five years thereafter. The group of 18 homes will commence in 2017 and similarly continue over five years thereafter Repair Items As directed by the Board, we have incorporated the following annual budget allowances for recurring, regular maintenance repairs in the capital expenditure projection: Roof repair: The annual budget is based on an inspection and repair of five homes. It commences in 2016. Reserve Study Village at Highlands Owners Association Page 9
Gutter repair: The annual budget is based on an inspection and repair of five homes. It commences in 2016. Trim carpentry repairs and paint touch-up: The annual budget is based on an inspection and repair of five homes. It commences in 2016. Siding carpentry repairs and paint touch-up: The annual budget is based on an inspection and repair of five homes. It commences in 2016. Building Interiors No common items. Mechanical No Common items. Amenities No common items. Other No common items. 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 25 years. The capital items listed are those that are typically the responsibility of the home owner s association and are derived from a list provided by the property manager and the association. However, association by-laws vary, and therefore, which components are the responsibility of the owner and which are the responsibility of the Association can vary. The Village at Highlands Owners 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. Reserve Study Village at Highlands Owners Association Page 10
A table that lists anticipated replacement and/or repair capital expenditures 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. Tables 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 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. Starting Capital Reserve Fund Balance: $204,094 (estimated on 01/01/2016) Current Funding Rate: $2,933 per month Based on our developed list of capital expenditures and taking inflation into account, the current rate of funding will prove inadequate to maintain positive capital reserve fund balances starting in 2031 or Year 16 of the study period. We initially prepared two alternatives for the Board s consideration: Alternative 1: Increase the annual contribution to reserves by $100 per Unit starting in 2017 or Year 2. This will maintain positive Fund Balances over a threshold value of $100,000 throughout the 25-Year planning period. Alternative 2: Increase the rate of contribution to reserves by 25%. In each of six years: 2018, 2020, 2022, 2024, 2026 & 2028 (or Years 3, 5, 7, 9, 11 & 13.) This will maintain positive Fund Balances throughout the 25- Year Planning Period. After their review, the Board suggested these approaches, which honor a covenantal limit on annual increases of assessments to 10%: Alternative 3: Increase the rate of overall assessment by 10% annually, while holding increases to operating & maintenance costs to 2%. Transfer the resulting operating surpluses to capital reserves. If this were done for the next six years, 2016 2021, then the amount of contribution could remain level thereafter, throughout the remainder of the planning period. Alternative 4: Increase the rate of contribution to the capital reserve fund by 10% annually. If this were done over the next 15 years, 2016-2030, then the income level would be sufficient to remain level for four years, 2030-2033. Although out-year projections are only speculative, it appears that over the last seven years of the planning period, 2034-2040, the rate of contribution might be reduced by 10% annually. Reserve Study Village at Highlands Owners Association Page 11
7.0 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 Associa Community Group Management Company and the Village at Highlands Owners Association. Criterium 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 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 the buildings or the underlying foundation soil since this effort would require excavation and destructive testing. Likewise, this is not a seismic assessment. We did not investigate the following areas: Buried utilities or infrastructure Concealed structural members or systems Attic areas All interior spaces We do not render an opinion on uninvestigated portions of the community. We did not perform any computations or other engineering analysis as part of this evaluation, nor did we conduct a comprehensive code compliance investigation. This study is not to be considered a warranty of condition, and no warranty is implied. The appendices are an integral part of this report and must be included in any review. In our Reserve Fund Analysis, we have provided estimated costs. These costs are based on our general knowledge of building systems and the contracting and construction industry. When appropriate, we have relied on standard sources, such as Means Building Construction Cost Data, to develop estimates. However, for items that we have developed costs (e.g.: structural repairs), no standard guide for developing such costs exists. Actual costs can vary significantly, based on the availability of qualified contractors to do the work, as well as many other variables. We cannot be responsible for the specific cost estimates provided. We have performed no design work as part of this study, nor have we 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. Reserve Study Village at Highlands Owners Association Page 12
8.0 CONCLUSION We trust this answers any questions that may arise. If not, or if we can be of further assistance, please do not hesitate to call. If you have any questions about this study or the reserve fund analysis, please feel free to contact us. Thank-you for the opportunity to be of assistance to you. Respectfully submitted, CRITERIUM ENGINEERS V. Campbell Grant, P.E. ME Senior Engineer Reserve Study Village at Highlands Owners Association Page 13
Appendix A: RESERVE FUND PROJECTIONS
Initial Capital Reserve Fund Information General Information: 1 Organization: Village at Highlands Owners Association 2 Address: Mechums River Road & Gate Post Lane 3 Number of Units 50 4 Age of Building (in years) 9 5a Study Period (in years) 25 5b Normal Fiscal Year starts: January 1, 2016 5c Partial Fiscal Year starts: January 1, 2016 5d Partial Year Length: 12 months 6 Site Inspection Date April 23, 2015 7 Reserve Funds at start $204,094 8 Rate of Return on invested Reserve Funds (%) 0.75% 9 Inflation Rate (%) 2.50% 10 Yearly Threshold 11 Total/Month Total Annual Per Unit/Month Per Unit/Year 10 Res. Fund Contrib. (First Year)... $2,933 $35,196 $58.66 $703.92 11 Res. Fund Contrib. (Remaining Years)... $2,933 $35,196 $58.66 $703.92 Special Assessments Years Out Total/Year Per Unit 12 None Criterium Engineers Page 1 of 15 9/1/2015
Common Component Inventory & Capital Expenditure Budget Planning Expected Remaining Life or Life Capital Item Quantity Repair/Replace Frequency To Be Replaced Count Unit Unit cost Capital Budget (yrs) (yrs) Planning Notes Site Entrance sign 1 Ea $500 $500.00 10 0 2016 Privacy fences - replace 9 Ea $600 $5,400.00 18 8 Built 2006. Privacy fences - replace 7 Ea $600 $4,200.00 18 9 Built 2007. Privacy fences - replace 2 Ea $600 $1,200.00 18 10 Built 2008. Privacy fences - replace 4 Ea $600 $2,400.00 18 11 Built 2009. Privacy fences - replace 1 Ea $600 $600.00 18 12 Built 2010. Privacy fences - replace 2 Ea $600 $1,200.00 18 14 Built 2012. Mailboxes - replace boxes 2 Ea $100 $200.00 1 0 Total 50 mailboxes, estimated - replace 2 mailboxes per year. Mailboxes - replace post 9 Ea $150 $1,350.00 20 10 Built 2006 Mailboxes - replace post 7 Ea $150 $1,050.00 20 11 Built 2007 Mailboxes - replace post 2 Ea $150 $300.00 20 12 Built 2008 Mailboxes - replace post 4 Ea $150 $600.00 20 13 Built 2009 Mailboxes - replace post 1 Ea $150 $150.00 20 14 Built 2010 Mailboxes - replace post 2 Ea $150 $300.00 20 16 Built 2012 Lamp posts - replace 18 Ea $400 $7,200.00 20 10 Built 2006, Lite fixtures not included Lamp posts - replace 14 Ea $400 $5,600.00 20 11 Built 2007 Lamp posts - replace 4 Ea $400 $1,600.00 20 12 Built 2008 Lamp posts - replace 8 Ea $400 $3,200.00 20 13 Built 2009 Lamp posts - replace 2 Ea $400 $800.00 20 14 Built 2010 Lamp posts - replace 4 Ea $400 $1,600.00 20 16 Built 2012 Criterium Engineers Page 2 of 15 9/1/2015
Common Component Inventory & Capital Expenditure Budget Planning Expected Remaining Life or Life Capital Item Quantity Repair/Replace Frequency To Be Replaced Count Unit Unit cost Capital Budget (yrs) (yrs) Planning Notes Building Exterior Pressure Wash (18) 18 Ea $200 $3,600.00 4 3 Includes those never done 6ea, + those done in 2012-12ea. Pressure Wash (32) 32 Ea $200 $6,400.00 4 2 Includes those done in 2014. Paint Trim (32) 32 Ea $1,200 $38,400.00 8 6 Done in 2014. Skip years when "paint" is scheduled. Updated est from Robbie 5/16/2015. Paint Trim (18) 18 Ea $1,200 $21,600.00 8 7 To be done in 2015, this year. Skip years when "paint house" is scheduled. Paint house (32) 32 Ea $2,500 $80,000.00 12 2 Quantity and cost per meeting on 4/23. Paint house (18) 18 Ea $2,500 $45,000.00 12 3 Quantity and cost per meeting on 4/23. Those built 2012 get painted in 7 yrs Caulking touchup (32) 32 Ea $200 $6,400.00 8 6 Skip year when "paint house" is scheduled. Caulking touchup (18) 18 Ea $200 $3,600.00 8 7 Skip year when "paint house" is scheduled. Roof resurface (18) 18 Ea $15,500 $279,000.00 25 15 Units built 2006. (included returns) Not including skylights or tunnels, etc. Roof resurface (14) 14 Ea $15,500 $217,000.00 25 16 Units built 2007, (included returns) Roof resurface (2) 2 Ea $15,500 $31,000.00 25 17 Units built 2008, (included returns). Roof resurface (2) 2 Ea $8,300 $16,600.00 25 17 Units built 2008, Smaller building.( Included returns). Roof resurface (4) 4 Ea $15,500 $62,000.00 25 18 Units built 2009, (included returns). Roof resurface (4) 4 Ea $8,300 $33,200.00 25 18 Units built 2009, Smaller building.( Included returns). Roof resurface (2) 2 Ea $15,500 $31,000.00 25 19 Units built 2010, (included returns). Roof resurface (4) 4 Ea $15,500 $62,000.00 25 21 Units built 2012, (included returns). Gutter replacement (18) 18 Ea $2,200 $39,600.00 25 15 To be done when resurfacing roofs. Gutter replacement (14) 14 Ea $2,200 $30,800.00 25 16 To be done when resurfacing roofs. Gutter replacement( 2) 2 Ea $2,200 $4,400.00 25 17 To be done when resurfacing roofs. Gutter replacement (2) 2 Ea $1,400 $2,800.00 25 17 To be done when resurfacing roofs. Gutter replacement (4) 4 Ea $2,200 $8,800.00 25 18 To be done when resurfacing roofs. Gutter replacement (4) 4 Ea $1,400 $5,600.00 25 18 To be done when resurfacing roofs. Gutter replacement (2) 2 Ea $2,200 $4,400.00 25 19 To be done when resurfacing roofs. Gutter replacement (4) 4 Ea $2,200 $8,800.00 25 21 To be done when resurfacing roofs. Front door - refurbish (32) 32 Ea $400 $12,800.00 5 0 Quantity and cost per meeting on 4/23. Front door - (18) 18 Ea $400 $7,200.00 5 1 Quantity and cost per meeting on 4/23. Criterium Engineers Page 3 of 15 9/1/2015
Common Component Inventory & Capital Expenditure Budget Planning Expected Remaining Life or Life Capital Item Quantity Repair/Replace Frequency To Be Replaced Count Unit Unit cost Capital Budget (yrs) (yrs) Planning Notes Building Interior None $0.00 Mechanical None $0.00 Amenities None $0.00 Annual Repairs Roof repair 5 Ea $200 $1,000.00 1 0 Gutter repair 5 Ea $150 $750.00 1 0 Trim repair 5 Ea $800 $4,000.00 1 0 Siding repair 5 Ea $1,000 $5,000.00 1 0 Criterium Engineers Page 4 of 15 9/1/2015
Reserve Study Worksheet - Annual Expense By Year Year: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year Number: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Site Entrance sign 500 0 0 0 0 0 0 0 0 0 500 0 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 5,400 0 0 0 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 4,200 0 0 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 1,200 0 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 2,400 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 0 600 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,200 Mailboxes - replace boxes 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 1,350 0 0 0 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 1,050 0 0 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 300 0 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 600 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 0 150 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 7,200 0 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 5,600 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 1,600 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 3,200 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 800 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Criterium Engineers Page 5 of 15 9/1/2015
Reserve Study Worksheet - Annual Expense By Year Year: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year Number: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Building Exterior Pressure Wash (18) 0 0 0 0 0 0 0 3,600 0 0 0 3,600 0 0 0 Pressure Wash (32) 0 0 0 0 0 0 6,400 0 0 0 6,400 0 0 0 0 Paint Trim (32) 0 0 0 0 0 0 38,400 0 0 0 0 0 0 0 0 Paint Trim (18) 0 0 0 0 0 0 0 21,600 0 0 0 0 0 0 0 Paint house (32) 0 0 80,000 0 0 0 0 0 0 0 0 0 0 0 80,000 Paint house (18) 0 0 0 45,000 0 0 0 0 0 0 0 0 0 0 0 Caulking touchup (32) 0 0 0 0 0 0 6,400 0 0 0 0 0 0 0 0 Caulking touchup (18) 0 0 0 0 0 0 0 3,600 0 0 0 0 0 0 0 Roof resurface (18) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (14) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (4) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (4) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (4) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (18) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (14) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement( 2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (4) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (4) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (2) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (4) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Front door - refurbish (32) 12,800 0 0 0 0 12,800 0 0 0 0 12,800 0 0 0 0 Front door - (18) 0 7,200 0 0 0 0 7,200 0 0 0 0 7,200 0 0 0 Criterium Engineers Page 6 of 15 9/1/2015
Reserve Study Worksheet - Annual Expense By Year Year: 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year Number: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Building Interior None 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mechanical None 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Amenities None 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Annual Repairs Roof repair 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Gutter repair 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 Trim repair 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Siding repair 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Total Costs 24,250 18,150 90,950 55,950 10,950 23,750 69,350 39,750 16,350 15,150 40,400 30,800 13,450 14,750 93,100 Total Costs Adjusted For 2.5% Inflation 24,250 18,604 95,554 60,252 12,087 26,871 80,425 47,250 19,921 18,920 51,715 40,412 18,089 20,333 131,548 Criterium Engineers Page 7 of 15 9/1/2015
Reserve Study Worksheet - Annual Expense By Year Year: 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Year Number: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Site Entrance sign 0 0 0 0 0 500 0 0 0 0 0 0 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 5,400 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 0 4,200 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 1,200 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,400 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Privacy fences - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mailboxes - replace boxes 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mailboxes - replace post 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mailboxes - replace post 0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lamp posts - replace 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lamp posts - replace 0 1,600 0 0 0 0 0 0 0 0 0 0 0 0 0 Criterium Engineers Page 8 of 15 9/1/2015
Reserve Study Worksheet - Annual Expense By Year Year: 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Year Number: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Building Exterior Pressure Wash (18) 0 0 0 0 3,600 0 0 0 3,600 0 0 0 3,600 0 0 Pressure Wash (32) 0 0 0 6,400 0 0 0 6,400 0 0 0 6,400 0 0 0 Paint Trim (32) 0 0 0 0 0 0 0 38,400 0 0 0 0 0 0 0 Paint Trim (18) 0 0 0 0 0 0 0 0 21,600 0 0 0 0 0 0 Paint house (32) 0 0 0 0 0 0 0 0 0 0 0 80,000 0 0 0 Paint house (18) 45,000 0 0 0 0 0 0 0 0 0 0 0 45,000 0 0 Caulking touchup (32) 0 0 0 0 0 0 0 6,400 0 0 0 0 0 0 0 Caulking touchup (18) 0 0 0 0 0 0 0 0 3,600 0 0 0 0 0 0 Roof resurface (18) 279,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (14) 0 217,000 0 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (2) 0 0 31,000 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (2) 0 0 16,600 0 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (4) 0 0 0 62,000 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (4) 0 0 0 33,200 0 0 0 0 0 0 0 0 0 0 0 Roof resurface (2) 0 0 0 0 31,000 0 0 0 0 0 0 0 0 0 0 Roof resurface (4) 0 0 0 0 0 0 62,000 0 0 0 0 0 0 0 0 Gutter replacement (18) 39,600 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (14) 0 30,800 0 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement( 2) 0 0 4,400 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (2) 0 0 2,800 0 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (4) 0 0 0 8,800 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (4) 0 0 0 5,600 0 0 0 0 0 0 0 0 0 0 0 Gutter replacement (2) 0 0 0 0 4,400 0 0 0 0 0 0 0 0 0 0 Gutter replacement (4) 0 0 0 0 0 0 8,800 0 0 0 0 0 0 0 0 Front door - refurbish (32) 12,800 0 0 0 0 12,800 0 0 0 0 12,800 0 0 0 0 Front door - (18) 0 7,200 0 0 0 0 7,200 0 0 0 0 7,200 0 0 0 Criterium Engineers Page 9 of 15 9/1/2015
Reserve Study Worksheet - Annual Expense By Year Year: 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Year Number: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Building Interior None 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Mechanical None 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Amenities None 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Annual Repairs Roof repair 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Gutter repair 750 750 750 750 750 750 750 750 750 750 750 750 750 750 750 Trim repair 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Siding repair 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Total Costs 387,350 267,850 65,750 126,950 49,950 24,250 88,950 62,150 39,750 10,950 23,750 109,950 63,750 12,150 13,350 Total Costs Adjusted For 2.5% Inflation 560,998 397,625 100,046 197,999 79,853 39,736 149,399 106,996 70,143 19,806 44,031 208,937 124,172 24,257 27,320 Criterium Engineers Page 10 of 15 9/1/2015
Reserve Study Worksheet - Current Rate of Contribution Projected Forward Unchanged Over 25 Years Results in Deficit Balances starting in 2031 or Year 16 Beginning Year Reserve Fund Fee Special Investment Total Capital Ending Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance 2016 1 $204,094 $35,196 $0 $1,613 $36,809 $24,250 $216,653 2017 2 $216,653 $35,196 $0 $1,749 $36,945 $18,604 $234,994 2018 3 $234,994 $35,196 $0 $1,310 $36,506 $95,554 $175,946 2019 4 $175,946 $35,196 $0 $1,132 $36,328 $60,252 $152,021 2020 5 $152,021 $35,196 $0 $1,313 $36,509 $12,087 $176,444 2021 6 $176,444 $35,196 $0 $1,386 $36,582 $26,871 $186,155 2022 7 $186,155 $35,196 $0 $1,057 $36,253 $80,425 $141,983 2023 8 $141,983 $35,196 $0 $974 $36,170 $47,250 $130,903 2024 9 $130,903 $35,196 $0 $1,096 $36,292 $19,921 $147,275 2025 10 $147,275 $35,196 $0 $1,227 $36,423 $18,920 $164,777 2026 11 $164,777 $35,196 $0 $1,112 $36,308 $51,715 $149,370 2027 12 $149,370 $35,196 $0 $1,081 $36,277 $40,412 $145,235 2028 13 $145,235 $35,196 $0 $1,218 $36,414 $18,089 $163,559 2029 14 $163,559 $35,196 $0 $1,338 $36,534 $20,333 $179,761 2030 15 $179,761 $35,196 $0 $626 $35,822 $131,548 $84,034 2031 16 $84,034 $35,196 $0 $0 $35,196 $560,998 ($441,768) 2032 17 ($441,768) $35,196 $0 $0 $35,196 $397,625 ($804,197) 2033 18 ($804,197) $35,196 $0 $0 $35,196 $100,046 ($869,047) 2034 19 ($869,047) $35,196 $0 $0 $35,196 $197,999 ($1,031,850) 2035 20 ($1,031,850) $35,196 $0 $0 $35,196 $79,853 ($1,076,506) 2036 21 ($1,076,506) $35,196 $0 $0 $35,196 $39,736 ($1,081,047) 2037 22 ($1,081,047) $35,196 $0 $0 $35,196 $149,399 ($1,195,250) 2038 23 ($1,195,250) $35,196 $0 $0 $35,196 $106,996 ($1,267,049) 2039 24 ($1,267,049) $35,196 $0 $0 $35,196 $70,143 ($1,301,997) 2040 25 ($1,301,997) $35,196 $0 $0 $35,196 $19,806 ($1,286,606) 2041 26 ($1,286,606) $35,196 $0 $0 $35,196 $44,031 ($1,295,441) 2042 27 ($1,295,441) $35,196 $0 $0 $35,196 $208,937 ($1,469,183) 2043 28 ($1,469,183) $35,196 $0 $0 $35,196 $124,172 ($1,558,159) 2044 29 ($1,558,159) $35,196 $0 $0 $35,196 $24,257 ($1,547,220) 2045 30 ($1,547,220) $35,196 $0 $0 $35,196 $27,320 ($1,539,344) Criterium Engineers Page 11 of 15 9/1/2015
Funding Alternative One - Increase Rate of Contribution to Reserves by $100/Unit per Month Starting in 2017 or Year Two. Results in Positive Fund Balances over $100K threshold throughout Planning Period Beginning Year Reserve Fund Fee Special Investment Total Capital Ending Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance 2016 1 $204,094 $35,196 $0 $1,613 $36,809 $24,250 $216,653 2017 2 $216,653 $95,196 $0 $2,199 $97,395 $18,604 $295,444 2018 3 $295,444 $95,196 $0 $2,213 $97,409 $95,554 $297,299 2019 4 $297,299 $95,196 $0 $2,492 $97,688 $60,252 $334,735 2020 5 $334,735 $95,196 $0 $3,134 $98,330 $12,087 $420,978 2021 6 $420,978 $95,196 $0 $3,670 $98,866 $26,871 $492,973 2022 7 $492,973 $95,196 $0 $3,808 $99,004 $80,425 $511,552 2023 8 $511,552 $95,196 $0 $4,196 $99,392 $47,250 $563,694 2024 9 $563,694 $95,196 $0 $4,792 $99,988 $19,921 $643,762 2025 10 $643,762 $95,196 $0 $5,400 $100,596 $18,920 $725,438 2026 11 $725,438 $95,196 $0 $5,767 $100,963 $51,715 $774,685 2027 12 $774,685 $95,196 $0 $6,221 $101,417 $40,412 $835,690 2028 13 $835,690 $95,196 $0 $6,846 $102,042 $18,089 $919,643 2029 14 $919,643 $95,196 $0 $7,459 $102,655 $20,333 $1,001,965 2030 15 $1,001,965 $95,196 $0 $7,242 $102,438 $131,548 $972,855 2031 16 $972,855 $95,196 $0 $3,803 $98,999 $560,998 $510,856 2032 17 $510,856 $95,196 $0 $1,563 $96,759 $397,625 $209,990 2033 18 $209,990 $95,196 $0 $1,539 $96,735 $100,046 $206,678 2034 19 $206,678 $95,196 $0 $779 $95,975 $197,999 $104,655 2035 20 $104,655 $95,196 $0 $900 $96,096 $79,853 $120,898 2036 21 $120,898 $95,196 $0 $1,323 $96,519 $39,736 $177,680 2037 22 $177,680 $95,196 $0 $926 $96,122 $149,399 $124,403 2038 23 $124,403 $95,196 $0 $845 $96,041 $106,996 $113,448 2039 24 $113,448 $95,196 $0 $1,039 $96,235 $70,143 $139,540 2040 25 $139,540 $95,196 $0 $1,612 $96,808 $19,806 $216,542 2041 26 $216,542 $95,196 $0 $2,008 $97,204 $44,031 $269,715 2042 27 $269,715 $95,196 $0 $1,170 $96,366 $208,937 $157,143 2043 28 $157,143 $95,196 $0 $961 $96,157 $124,172 $129,128 2044 29 $129,128 $95,196 $0 $1,501 $96,697 $24,257 $201,568 2045 30 $201,568 $95,196 $0 $2,021 $97,217 $27,320 $271,465 Criterium Engineers Page 12 of 15 6 of 15/1/2015
Funding Alternative Two - Increase Rate of Contribution to Reserves by 25% in Six Iterations In 2018, 2020, 2022, 2024, 2026 & 2028. (Years 3, 5, 7, 9, 11 & 13.) Results in Positive Fund Balances throughout Planning Period Beginning Year Reserve Fund Fee Special Investment Total Capital Ending Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance 2016 1 $204,094 $35,196 $0 $1,613 $36,809 $24,250 $216,653 2017 2 $216,653 $35,196 $0 $1,749 $36,945 $18,604 $234,994 2018 3 $234,994 $43,995 $0 $1,376 $45,371 $95,554 $184,811 2019 4 $184,811 $43,995 $0 $1,264 $45,259 $60,252 $169,818 2020 5 $169,818 $54,994 $0 $1,595 $56,589 $12,087 $214,320 2021 6 $214,320 $54,994 $0 $1,818 $56,812 $26,871 $244,261 2022 7 $244,261 $68,742 $0 $1,744 $70,487 $80,425 $234,323 2023 8 $234,323 $68,742 $0 $1,919 $70,661 $47,250 $257,734 2024 9 $257,734 $85,928 $0 $2,428 $88,356 $19,921 $326,169 2025 10 $326,169 $85,928 $0 $2,949 $88,877 $18,920 $396,125 2026 11 $396,125 $107,410 $0 $3,389 $110,798 $51,715 $455,208 2027 12 $455,208 $107,410 $0 $3,917 $111,326 $40,412 $526,122 2028 13 $526,122 $134,262 $0 $4,817 $139,079 $18,089 $647,112 2029 14 $647,112 $134,262 $0 $5,708 $139,970 $20,333 $766,749 2030 15 $766,749 $134,262 $0 $5,771 $140,033 $131,548 $775,234 2031 16 $775,234 $134,262 $0 $2,614 $136,876 $560,998 $351,112 2032 17 $351,112 $134,262 $0 $658 $134,920 $397,625 $88,407 2033 18 $88,407 $134,262 $0 $920 $135,182 $100,046 $123,543 2034 19 $123,543 $134,262 $0 $449 $134,711 $197,999 $60,255 2035 20 $60,255 $134,262 $0 $860 $135,122 $79,853 $115,524 2036 21 $115,524 $134,262 $0 $1,575 $135,837 $39,736 $211,625 2037 22 $211,625 $134,262 $0 $1,474 $135,736 $149,399 $197,962 2038 23 $197,962 $134,262 $0 $1,689 $135,951 $106,996 $226,918 2039 24 $226,918 $134,262 $0 $2,183 $136,445 $70,143 $293,219 2040 25 $293,219 $134,262 $0 $3,058 $137,320 $19,806 $410,733 2041 26 $410,733 $134,262 $0 $3,757 $138,019 $44,031 $504,722 2042 27 $504,722 $134,262 $0 $3,225 $137,487 $208,937 $433,272 2043 28 $433,272 $134,262 $0 $3,325 $137,587 $124,172 $446,687 2044 29 $446,687 $134,262 $0 $4,175 $138,437 $24,257 $560,867 2045 30 $560,867 $134,262 $0 $5,009 $139,271 $27,320 $672,818 Criterium Engineers Page 13 of 15 9/1/2015
Funding Alternative Three per Board's Suggestion - Increase Total Rate of Assessment by 10% per Year Assume O&M Expense rises at 2% per year. Deposit Annual Operating Supluses to Capital Reserves Freeze Transfer at 2021 level throughout remainder of the planning period. Overall Annual Transfer Capital Annual O&M Operating Contribution Beginning Assessment Expense Surplus Annual Year Reserve Fund Fee Special Investment Total Capital Ending +10% +2% to Capital Increase Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance $35,196 2016 1 $204,094 $44,064 $0 $1,679 $45,743 $24,250 $225,587 $112,200 $68,136 $44,064 25.2% 2017 2 $225,587 $53,921 $0 $1,957 $55,878 $18,604 $262,861 $123,420 $69,499 $53,921 22.4% 2018 3 $262,861 $64,873 $0 $1,741 $66,614 $95,554 $233,921 $135,762 $70,889 $64,873 20.3% 2019 4 $233,921 $77,032 $0 $1,880 $78,912 $60,252 $252,582 $149,338 $72,306 $77,032 18.7% 2020 5 $252,582 $90,519 $0 $2,483 $93,002 $12,087 $333,496 $164,272 $73,753 $90,519 17.5% 2021 6 $333,496 $105,472 $0 $3,091 $108,563 $26,871 $415,188 $180,699 $75,228 $105,472 16.5% 2022 7 $415,188 $105,472 $0 $3,302 $108,774 $80,425 $443,537 $105,472 0.0% 2023 8 $443,537 $105,472 $0 $3,763 $109,235 $47,250 $505,522 $105,472 2024 9 $505,522 $105,472 $0 $4,433 $109,905 $19,921 $595,506 $105,472 2025 10 $595,506 $105,472 $0 $5,115 $110,587 $18,920 $687,174 $105,472 2026 11 $687,174 $105,472 $0 $5,557 $111,029 $51,715 $746,487 $105,472 2027 12 $746,487 $105,472 $0 $6,087 $111,559 $40,412 $817,633 $105,472 2028 13 $817,633 $105,472 $0 $6,788 $112,260 $18,089 $911,804 $105,472 2029 14 $911,804 $105,472 $0 $7,477 $112,949 $20,333 $1,004,420 $105,472 2030 15 $1,004,420 $105,472 $0 $7,338 $112,810 $131,548 $985,682 $105,472 2031 16 $985,682 $105,472 $0 $3,976 $109,448 $560,998 $534,132 $105,472 2032 17 $534,132 $105,472 $0 $1,815 $107,287 $397,625 $243,794 $105,472 2033 18 $243,794 $105,472 $0 $1,869 $107,341 $100,046 $251,089 $105,472 2034 19 $251,089 $105,472 $0 $1,189 $106,661 $197,999 $159,751 $105,472 2035 20 $159,751 $105,472 $0 $1,390 $106,862 $79,853 $186,761 $105,472 2036 21 $186,761 $105,472 $0 $1,894 $107,366 $39,736 $254,390 $105,472 2037 22 $254,390 $105,472 $0 $1,578 $107,050 $149,399 $212,042 $105,472 2038 23 $212,042 $105,472 $0 $1,579 $107,051 $106,996 $212,097 $105,472 2039 24 $212,097 $105,472 $0 $1,856 $107,328 $70,143 $249,281 $105,472 2040 25 $249,281 $105,472 $0 $2,512 $107,984 $19,806 $337,460 $105,472 Criterium Engineers Page 14 of 15 4 of 15/1/20
Funding Alternative Four per Board's Suggestion - Increase Rate of Contribution to Capital Reserve by 10% annually through Year 15, 2030. Then, hold level for four years through Year 18, 2033. Then, decrease by 10% annually for the remainder of the planning period. Capital Beginning Reserve Annual Year Reserve Fund Fee Special Investment Total Capital Ending Contribution Increase Year Number Balance Revenue Assessments Earnings Revenue Expenditures Balance $35,196 2016 1 $204,094 $38,716 $0 $1,639 $40,355 $24,250 $220,199 $38,716 10.0% 2017 2 $220,199 $42,587 $0 $1,831 $44,418 $18,604 $246,014 $42,587 10.0% 2018 3 $246,014 $46,846 $0 $1,480 $48,326 $95,554 $198,785 $46,846 10.0% 2019 4 $198,785 $51,530 $0 $1,425 $52,955 $60,252 $191,489 $51,530 10.0% 2020 5 $191,489 $56,684 $0 $1,771 $58,455 $12,087 $237,857 $56,684 10.0% 2021 6 $237,857 $62,532 $0 $2,051 $64,583 $26,871 $275,569 $62,352 10.0% 2022 7 $275,569 $68,587 $0 $1,978 $70,565 $80,425 $265,709 $68,587 10.0% 2023 8 $265,709 $75,446 $0 $2,204 $77,650 $47,250 $296,109 $75,446 10.0% 2024 9 $296,109 $82,990 $0 $2,694 $85,684 $19,921 $361,872 $82,990 10.0% 2025 10 $361,872 $91,289 $0 $3,257 $94,546 $18,920 $437,498 $91,289 10.0% 2026 11 $437,498 $100,418 $0 $3,647 $104,065 $51,715 $489,847 $100,418 10.0% 2027 12 $489,847 $110,460 $0 $4,199 $114,659 $40,412 $564,094 $110,460 10.0% 2028 13 $564,094 $121,506 $0 $5,006 $126,512 $18,089 $672,517 $121,506 10.0% 2029 14 $672,517 $133,657 $0 $5,894 $139,551 $20,333 $791,735 $133,657 10.0% 2030 15 $791,735 $147,022 $0 $6,054 $153,076 $131,548 $813,263 $147,022 10.0% 2031 16 $813,263 $147,022 $0 $2,995 $150,017 $560,998 $402,282 $147,022 0.0% 2032 17 $402,282 $147,022 $0 $1,138 $148,160 $397,625 $152,817 $147,022 0.0% 2033 18 $152,817 $147,022 $0 $1,498 $148,520 $100,046 $201,291 $147,022 0.0% 2034 19 $201,291 $132,320 $0 $1,017 $133,337 $197,999 $136,629 $132,320-10.0% 2035 20 $136,629 $119,088 $0 $1,319 $120,407 $79,853 $177,183 $119,088-10.0% 2036 21 $177,183 $107,179 $0 $1,835 $109,014 $39,736 $246,461 $107,179-10.0% 2037 22 $246,461 $96,461 $0 $1,451 $97,912 $149,399 $194,974 $96,461-10.0% 2038 23 $194,974 $86,815 $0 $1,311 $88,126 $106,996 $176,105 $86,815-10.0% 2039 24 $176,105 $78,134 $0 $1,381 $79,515 $70,143 $185,476 $78,134-10.0% 2040 25 $185,476 $70,320 $0 $1,770 $72,090 $19,806 $237,760 $70,320-10.0% Criterium Engineers Page 15 of 15 9/1/2015
Appendix B: PROJECT PHOTOGRAPHS
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Sign at the entrance to the Village of Highlands. Photo Number 1 Description: View of houses on Mechums River Road. Photo Number 2
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Front view of typical house. Photo Number 3 Description: Privacy fence between homes. Photo Number 4
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Privacy fence removed. To be replaced this year. Photo Number 5 Description: Typical mailbox and post. Photo Number 6
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Rusted mailbox at 4642. Photo Number 7 Description: Damaged light post at 4642 with temporary bracing. Photo Number 8
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Window trim that needs to be painted. Photo Number 9 Description: Paint peeling on front of 4642 next to garage door. Photo Number 10
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: No caulk at window frame and brick on 1450. Photo Number 11 Description: No caulk at top of window and brick joint. Photo Number 12
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Typical roof surface. Photo Number 13 Description: Roof surface with skylights installed. Photo Number 14
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Typical front door. Photo Number 15 Description: Damaged pipe vent flashing on 1472. Photo Number 16
Location: Photo Taken by: Date: Village of Highlands Charles E. Dutt, P.E. May 21, 2015 Description: Dryer vent outlet appears to be restricted due to lint buildup on brick ledge. Photo Number 17 Description: Siding board above window not set properly on 4642. Photo Number 18
Appendix C: PROFESSIONAL QUALIFICATIONS
PROFESSIONAL QUALIFICATIONS AND EXPERIENCE Area of Expertise CHARLES E. DUTT, P.E. Charles Dutt is a licensed Professional Engineer in Pennsylvania and Virginia. He specializes in the inspection and evaluation of commercial and residential buildings. Clients include owners, investors, and community associations. He also has extensive experience in preventive/ predictive maintenance programs. Qualifications In 1998, Mr. Dutt joined Criterium-Moring Engineers, an established consulting practice in Staunton, Virginia. In this capacity he has successfully completed hundreds of home (residential) inspections (approximately 80-100 per year) including many older (100 years +/-) homes. Additionally he has worked, individualy or as a team member, in the successful completion of Property Condition Assessments of commercial properties (approximately 10 to 30 per year). These properties have included shopping malls, strip shopping centers, single and multistory residential and commercial buildings and several unique buildings. Included in these commercial buildings are several 75 to 125 year old buildings. He also has performed numerous reserve studies for community associations and consulted on structural failures and repair designs. Prior to joining Criterium-Moring Engineers, he was Engineering and Maintenance Manager for Roche Vitamins Incorporated in Freeport, Texas where he worked on numerous building construction, modification and maintenance planning projects. He has previous experience with Roche in Belvidere, New Jersey as Project Engineer where he designed and supervised the construction of building additions, process modifications and startup of a 10 metric ton expansion to the Vitamin C process. Additional projects have included the design and construction of in-plant access roads and a new de-alkalized water building; the purchase, installation and startup of a new main plant electrical transformer and 800-ton chiller and upgrades to several plant HVAC systems. Mr. Dutt also has designed and constructed numerous individual subsurface sewage deposal systems in New Jersey. Education Norwich University, Northfield, Vermont, Bachelor of Science,Mechanical Engineering Professional Engineering Registrations: Pennsylvania - No. 027019-E Virginia - No. 033982
BUILDING INSPECTION ENGINEERS PROUDLY SERVING NORTH AMERICA SINCE 1957 V. Campbell Grant, P.E., CBIE, LEED AP, E.P. Senior Engineer Cam Grant is a licensed professional civil engineer and project manager with over 35 years experience in site development, building design & construction and facility management. Since joining Criterium, Cam has become expert in o commercial & residential Property Condition Assessments in support of real estate due diligence and financial underwriting o Capital Reserve & Transition Studies for community associations facility & financial planning o Phase One Environmental Site Assessments for all appropriate inquiry under EPA regulations Cam now manages these inspection services provided to Criterium s national clients across the country. He directs assigned professional staff from our affiliated offices, and assists them with guidance whenever required to ensure consistent high quality. Cam has planned and led hundreds of capital improvement projects from conceptual payback analysis through facility commissioning. His responsibilities have included building design; permitting & construction; and process equipment specification, procurement & start-up. The value of several of his larger projects ranged over $50 million and up to $150 million. Prior to joining Criterium, Cam was a project manager for a design-build general contractor. In that role, he concurrently estimated costs, authored proposals, obtained permits, hired subcontractors, purchased materials, leased equipment, and managed on-site superintendents at multiple locations. EDUCATION AND PROFESSIONAL AFFILIATION University of Maine, Orono, ME Bachelors of Science, Civil Engineering Southern Maine Community College, South Portland, ME 2D & 3D Design (AutoCad) ASTM Training, Standard E 2018 Property Condition Assessments ASTM Training, Standard E 1527 Phase I Environmental Site Assessments, September 2006 Licensed Professional Engineer: State of Maine, No. 4227 Certified Building Inspection Engineer, National Association of Building Inspection Engineers Accredited Professional, US Green Building Council, Leadership in Energy & Environmental Design Environmental Professional, Phase One Environmental Site Assessments WHY I DO WHAT I DO When I was small, I enjoyed stacking up blocks, laying out toy train tracks and assembling erector sets. As I got older, I began to understand that building bigger things must be a group undertaking, and how the constructed environment enables human activities. At this point, I derive the most satisfaction from facilitating the work of others while ensuring a high