Scope Criterium Engineers was hired to update a reserve study for the Reston Association. The specific tasks included: Review the previous study performed by others Consult with Reston Association management regarding plans for maintenance and upgrades Review and refine list of common elements Conduct an on-site investigation of all common elements
Scope Review and develop cost estimates of necessary maintenance and repairs for the next 30 years Establish projections of reserve fund balances over thirty years Evaluate current and projected funding levels for the reserve period.
Methodology Criterium Engineers Craig Smith, P.E. and Drew Di Sessa, P.E. conducted the initial investigation. From September 16 th through September 18 th, 2009 they met with David Hopkins, Larry Butler, Brian Murphy, Paul Priestly, and Lauren Kowalski. Between September 16 th and October 1 st, 2009 Criterium Engineers spent five (5) days on site observing and evaluating the common elements.
Methodology Cost estimates for maintenance and repair of common elements were developed by review of existing quotes, review of historical costs, review of previous estimates, experience shared by management staff, and cost estimating tools such as R.S. Means) Estimated Useful Life (EUL) were developed based on Fannie Mae and Marshall & Swift guidelines, and Remaining Useful Life (RUL) of common elements were developed based on observation, industry standards, and opinions of management.
Methodology Assembled data was compiled and entered into Criterium Engineers proprietary reserve analysis software by Peter Hollander Cost information was provided by Messrs. Smith and Di Sessa Budget information, current funding levels, and economic assumptions were provided by Reston Association Management The adequacy of existing funding levels were determined Three alternative funding scenarios were evaluated.
All common elements were combined into nineteen (19) general categories and further aggregated into six overall areas. Tot Lots Found to be in good condition with several scheduled for replacement over the next 10 years and safety upgrades to some surfaces Tennis Courts Good condition; maintenance and reconstruction scheduled over the term Multi-purpose Courts Good condition; periodic resurfacing required
Pavilions and Arbors No major defects observed; structures in fair to good condition; several smaller structures were below capital expenditure threshold Foot bridges Most fall outside capital reserve threshold; no significant problems discovered; compliance with AASHTO requires replacement of four bridges over next two years
Boat Docks Generally good condition; some cracking of ramp at Lake Thoreau Lakes, Ponds & Dams Embankments in good visual condition; repairs recommended at inlet structures; new dam safety regulations in 2008; reserve includes dredging as well as contingency for partial dam replacement.
Parking & RV Lots Pavements in good condition with typical wear; no areas of major deterioration; some areas of poor drainage Ball Fields Fields are generally in good condition Brown s Chapel Old, but good condition; typical replacement of building components
Central Services Facility Good condition, wellmaintained Pool Buildings Ponding on membrane roofs; wood rot in some locations, exhaust ventilation insufficient in some pool equipment rooms Swimming Pools Shells and decking generally in good condition; one deck in fair to poor condition; rust in some electrical panels
Underpasses Inspected by Virginia DOT; partial funding recommended in case major repair becomes necessary. Asphalt Trails No immediate dangerous conditions or severely damaged sections; costs to maintain adjusted to reflect current pricing
Sidewalks, Curbs & Gutters No issues; replacement scheduled consistent with previous study Equipment & Vehicles Equipment inventories provided by management; adjustments made for current costs and residual values
Other Site Features Includes fencing, gates, retaining walls, etc. Suggest replacing wood retaining walls with modular block Administrative Equipment Inventories provided by management.
Average funding requirements per year = $2,961,252 Average funding requirements per year = $2,961,252
Average funding requirements per year = $2,961,252 Current funding projections adequate for the next eighteen years. 10,000,000 Existing Funding Levels 5,000,000-20102011201 201320142015201620172018201920202021202 202320242025202620272028202920302031203 2033203420352036203720382039 (5,000,000) Dollars (10,000,000) (15,000,000) (20,000,000) (25,000,000) Funding Years
Slight changes to the funding levels will allow for adequate reserves. Alternative 1: Increase annual funding from an average of $2.1 million/year to $2.7 million. Alternative 2: Increase annual funding by 3% per year. Alternative 3: Retain current funding levels, but plan on a special assessment or other infusion of about $20 million in 16 years.
Summary of Reserve Balances $30,000,000 $25,000,000 $20,000,000 Dollars $15,000,000 $10,000,000 $5,000,000 $0 ($5,000,000) 1 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 Funding Years Alt. 1 Alt. 2 Alt. 3
Conclusions The Reston Association infrastructure appears to be in relatively good condition and adequately maintained. Reserve funding plans appear adequate for at least the next 18 years, with minor tweaks as new contingencies arise. This is a mature community already into at least its second round of replacements. Therefore, barring unforeseen events like storms or other acts of nature, no sudden or unanticipated expenditures are anticipated.
Reserve Fund Worksheet Fiscal Years: Normal: Jan 2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Partial: Jan 2010 (12 months) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Existing Funding Levels Beginning Reserve Fund Balance: $4,200,000 $4,111,057 $3,786,903 $3,378,469 $3,797,883 $4,260,966 $2,074,609 $2,293,394 $2,351,479 $2,226,292 $2,938,196 $1,653,978 ($409,683) $765,340 $288,248 Revenue: 1,799,264 1,584,764 1,601,077 1,766,186 1,901,936 2,055,582 2,177,259 2,285,525 2,339,142 2,392,533 2,467,812 2,306,477 2,528,569 2,265,790 2,059,075 Special Assessments: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Earnings: $119,740 $110,298 $98,402 $110,618 $124,106 $60,425 $66,798 $68,490 $64,843 $85,579 $48,174 $0 $22,291 $8,396 $33,749 Capital Expenditures: $2,007,947 $2,019,216 $2,107,913 $1,457,389 $1,562,959 $4,302,365 $2,025,271 $2,295,930 $2,529,173 $1,766,207 $3,800,205 $4,370,137 $1,375,838 $2,751,277 $1,222,350 Ending Reserve Balance: $4,111,057 $3,786,903 $3,378,469 $3,797,883 $4,260,966 $2,074,609 $2,293,394 $2,351,479 $2,226,292 $2,938,196 $1,653,978 ($409,683) $765,340 $288,248 $1,158,722 Alternative 1, Level Funding Average Cap. Expenditure $2,961,252 Beginning Reserve Fund Balance: $4,200,000 $5,038,815 $5,891,186 $6,677,772 $8,157,994 $9,573,886 $8,210,667 $9,151,957 $9,842,708 $10,313,941 $11,585,166 $10,799,511 $9,403,254 $11,049,239 $11,327,901 Revenue: $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 Special Assessment #1: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Special Assessment #2: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Earnings: $146,762 $171,588 $194,498 $237,611 $278,851 $239,146 $266,562 $286,681 $300,406 $337,432 $314,549 $273,881 $321,822 $329,939 $384,167 Capital Expenditures: $2,007,947 $2,019,216 $2,107,913 $1,457,389 $1,562,959 $4,302,365 $2,025,271 $2,295,930 $2,529,173 $1,766,207 $3,800,205 $4,370,137 $1,375,838 $2,751,277 $1,222,350 Ending Reserve Balance: $5,038,815 $5,891,186 $6,677,772 $8,157,994 $9,573,886 $8,210,667 $9,151,957 $9,842,708 $10,313,941 $11,585,166 $10,799,511 $9,403,254 $11,049,239 $11,327,901 $13,189,717 Alternative 2, Escalating Funding at 3% per Year Beginning Reserve Fund Balance: $4,200,000 $4,420,815 $4,701,536 $4,966,159 $5,977,601 $6,981,557 $5,267,078 $5,921,796 $6,394,859 $6,721,680 $7,926,362 $7,156,833 $5,864,395 $7,707,134 $8,280,971 Revenue: $2,100,000 $2,163,000 $2,227,890 $2,294,727 $2,363,569 $2,434,476 $2,507,510 $2,582,735 $2,660,217 $2,740,024 $2,822,224 $2,906,891 $2,994,098 $3,083,921 $3,176,438 Special Assessment #1: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Special Assessment #2: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Earnings: $128,762 $136,938 $144,645 $174,105 $203,346 $153,410 $172,479 $186,258 $195,777 $230,865 $208,451 $170,808 $224,480 $241,193 $307,052 Capital Expenditures: $2,007,947 $2,019,216 $2,107,913 $1,457,389 $1,562,959 $4,302,365 $2,025,271 $2,295,930 $2,529,173 $1,766,207 $3,800,205 $4,370,137 $1,375,838 $2,751,277 $1,222,350 Ending Reserve Balance: $4,420,815 $4,701,536 $4,966,159 $5,977,601 $6,981,557 $5,267,078 $5,921,796 $6,394,859 $6,721,680 $7,926,362 $7,156,833 $5,864,395 $7,707,134 $8,280,971 $10,542,111 Alternative 3, Escalating Funding with Special Assessments Beginning Reserve Fund Balance: $4,200,000 $4,420,815 $4,636,646 $4,767,596 $5,572,513 $6,292,840 $4,213,189 $4,416,556 $4,347,244 $4,035,614 $4,500,489 $2,884,293 $632,580 $1,397,445 $768,553 Revenue: $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 Special Assessment #1: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Special Assessment #2: $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Earnings: $128,762 $135,048 $138,862 $162,306 $183,287 $122,714 $128,638 $126,619 $117,542 $131,082 $84,009 $18,425 $40,702 $22,385 $49,386 Capital Expenditures: $2,007,947 $2,019,216 $2,107,913 $1,457,389 $1,562,959 $4,302,365 $2,025,271 $2,295,930 $2,529,173 $1,766,207 $3,800,205 $4,370,137 $1,375,838 $2,751,277 $1,222,350 Ending Reserve Balance: $4,420,815 $4,636,646 $4,767,596 $5,572,513 $6,292,840 $4,213,189 $4,416,556 $4,347,244 $4,035,614 $4,500,489 $2,884,293 $632,580 $1,397,445 $768,553 $1,695,588 207,000 216,000 226,000 236,000 251,000 267,000 286,000 307,000 329,000 353,000 377,710 - - - - 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 1,527,264 1,303,764 1,310,077 1,465,186 1,585,936 1,723,582 1,826,259 1,913,525 1,945,142 1,974,533 2,025,102 2,241,477 2,463,569 2,200,790 1,994,075 1,799,264 1,584,764 1,601,077 1,766,186 1,901,936 2,055,582 2,177,259 2,285,525 2,339,142 2,392,533 2,467,812 2,306,477 2,528,569 2,265,790 2,059,075 Criterium Engineers Summary Pages 1 and 3 7/19/2010
Reserve Fund Worksheet Fiscal Years: Normal: Jan 2010 Partial: Jan 2010 (12 months) 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Existing Funding Levels Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $1,158,722 ($1,595,445) ($1,682,945) ($2,302,046) ($3,363,722) ($5,917,322) ($9,062,248) ($10,407,206) ($10,113,127) ($10,447,388) ($10,498,027) ($15,052,790) ($15,609,489) ($18,509,701) ($20,371,203) 2,076,701 2,033,351 1,937,094 1,988,623 2,118,514 2,127,817 1,987,607 2,037,484 2,032,624 1,838,849 1,895,804 1,896,229 2,010,983 2,037,988 1,701,594 $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 $4,830,868 $2,120,851 $2,556,195 $3,050,300 $4,672,113 $5,272,744 $3,332,565 $1,743,405 $2,366,885 $1,889,488 $6,450,567 $2,452,928 $4,911,195 $3,899,489 $3,693,776 ($1,595,445) ($1,682,945) ($2,302,046) ($3,363,722) ($5,917,322) ($9,062,248) ($10,407,206) ($10,113,127) ($10,447,388) ($10,498,027) ($15,052,790) ($15,609,489) ($18,509,701) ($20,371,203) ($22,363,384) Alternative 1, Level Funding Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $13,189,717 $11,390,614 $12,328,857 $12,846,841 $12,871,438 $11,226,304 $8,913,168 $8,529,020 $9,770,184 $10,406,398 $11,553,417 $8,036,936 $8,532,528 $6,510,973 $5,470,828 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $2,700,000 $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 $331,765 $359,093 $374,180 $374,896 $326,980 $259,607 $248,418 $284,568 $303,099 $336,507 $234,086 $248,520 $189,640 $159,345 $134,312 $4,830,868 $2,120,851 $2,556,195 $3,050,300 $4,672,113 $5,272,744 $3,332,565 $1,743,405 $2,366,885 $1,889,488 $6,450,567 $2,452,928 $4,911,195 $3,899,489 $3,693,776 $11,390,614 $12,328,857 $12,846,841 $12,871,438 $11,226,304 $8,913,168 $8,529,020 $9,770,184 $10,406,398 $11,553,417 $8,036,936 $8,532,528 $6,510,973 $5,470,828 $4,611,364 Alternative 2, Escalating Fundi Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $10,542,111 $9,252,464 $10,816,542 $12,083,266 $12,986,318 $12,356,465 $11,202,851 $12,130,212 $14,842,943 $17,119,207 $20,083,544 $18,570,809 $21,266,124 $21,650,225 $23,232,045 $3,271,732 $3,369,884 $3,470,980 $3,575,109 $3,682,363 $3,792,834 $3,906,619 $4,023,817 $4,144,532 $4,268,868 $4,396,934 $4,528,842 $4,664,707 $4,804,648 $4,948,788 $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 $269,489 $315,045 $351,940 $378,242 $359,897 $326,297 $353,307 $432,319 $498,618 $584,958 $540,897 $619,402 $630,589 $676,662 $734,612 $4,830,868 $2,120,851 $2,556,195 $3,050,300 $4,672,113 $5,272,744 $3,332,565 $1,743,405 $2,366,885 $1,889,488 $6,450,567 $2,452,928 $4,911,195 $3,899,489 $3,693,776 $9,252,464 $10,816,542 $12,083,266 $12,986,318 $12,356,465 $11,202,851 $12,130,212 $14,842,943 $17,119,207 $20,083,544 $18,570,809 $21,266,124 $21,650,225 $23,232,045 $25,221,669 Alternative 3, Escalating Fundi Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $1,695,588 ($1,035,280) ($1,056,131) $19,042,305 $18,634,765 $16,544,531 $13,772,941 $12,916,587 $13,671,378 $13,806,628 $14,437,654 $10,389,700 $10,337,875 $7,752,480 $6,131,580 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $2,100,000 $0 $0 $20,000,000 $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 $554,630 $542,760 $481,880 $401,154 $376,211 $398,195 $402,135 $420,514 $302,613 $301,103 $225,800 $178,590 $136,134 $4,830,868 $2,120,851 $2,556,195 $3,050,300 $4,672,113 $5,272,744 $3,332,565 $1,743,405 $2,366,885 $1,889,488 $6,450,567 $2,452,928 $4,911,195 $3,899,489 $3,693,776 ($1,035,280) ($1,056,131) $19,042,305 $18,634,765 $16,544,531 $13,772,941 $12,916,587 $13,671,378 $13,806,628 $14,437,654 $10,389,700 $10,337,875 $7,752,480 $6,131,580 $4,673,939 - - - - - - - - - - - - - - - 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 2,011,701 1,968,351 1,872,094 1,923,623 2,053,514 2,062,817 1,922,607 1,972,484 1,967,624 1,773,849 1,830,804 1,831,229 1,945,983 1,972,988 1,636,594 2,076,701 2,033,351 1,937,094 1,988,623 2,118,514 2,127,817 1,987,607 2,037,484 2,032,624 1,838,849 1,895,804 1,896,229 2,010,983 2,037,988 1,701,594 Criterium Engineers Summary Pages 2 and 3 7/19/2010
Reserve Fund Worksheet Fiscal Years: Normal: Jan 2010 Partial: Jan 2010 (12 months) Existing Funding Levels Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: Ending Reserve Balance: 2,041,741.77 Alternative 1, Level Funding Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: Alternative 2, Escalating Fundi Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: Alternative 3, Escalating Fundi Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: Criterium Engineers Summary Pages 3 and 3 7/19/2010