Update "With-Site-Visit" Reserve Study

Update "With-Site-Visit" Reserve Study Sample Townhouse HOA Ventura, CA Report #: For Period Beginning: Expires: Date Prepared: 99999999-0 January 1, 2019 December 31, 2019 June 27, 2018

T W Hello, and welcome to your Reserve Study! his Report is a valuable budget planning tool, for with it you control the future of your association. It contains all the fundamental information needed to understand your current and future Reserve obligations, the most significant expenditures your association will face. ith respect to Reserves, this Report will tell you "where you are," and "where to go from here." In this Report, you will find... 1) A List of What you're Reserving For 2) An Evaluation of your Reserve Fund Size and Strength 3) A Recommended Multi-Year Reserve Funding Plan More Questions? Visit our website at www.reservestudy.com or call us at: 805-277-3466

Table of Contents 3-Minute Executive Summary 1 Reserve Study Summary 1 Executive Summary (Component List) 2 Introduction, Objectives, and Methodology 3 Which Physical Assets are Funded by Reserves? 4 How do we establish Useful Life and Remaining Useful Life estimates? 4 How do we establish Current Repair/Replacement Cost Estimates? 4 How much Reserves are enough? 5 How much should we contribute? 6 What is our Recommended Funding Goal? 6 Projected Expenses 8 Annual Reserve Expenses Graph 8 Reserve Fund Status & Recommended Funding Plan 9 Annual Reserve Funding Graph 9 30-Yr Cash Flow Graph 10 Percent Funded Graph 10 Table Descriptions 11 Reserve Component List Detail 12 Fully Funded Balance 13 Accounting-Tax Summary 14 30-Year Reserve Plan Summary 15 30-Year Income/Expense Detail 16 Accuracy, Limitations, and Disclosures 22 Terms and Definitions 23 Component Details 24

3- Minute Executive Summary Association: Sample Townhouse HOA Assoc. #: 99999999-0 Location: Ventura, CA # of Units:45 Report Period: January 1, 2019 through December 31, 2019 Findings/Recommendations as-of: January 1, 2019. Projected........ Starting....... Reserve....... Balance........................................... $190,604........ Current...... Fully..... Funded...... Reserve....... Balance......................................... $466,960........ Average....... Reserve....... Deficit..... Per.... Unit............................................ $6,141...... Percent...... Funded............................................................. 40.8....%.. 2019.... Recommended............. Monthly....... Contributions........................................... $5,850...... 2019.... Recommended............ Special....... Assessments........... for... Reserves................................. $0... Most.... Recent...... Reserve....... Contribution.................................................. $3,000..... Reserves % Funded: 40.8% Special Assessment Risk: 30% 70% 130% High Medium Low Economic Assumptions:. Net... Annual......"After..... Tax".... Interest....... Earnings........ Accruing........ to.. Reserves......................... 1.00....%.. Annual...... Inflation....... Rate....................................................... 3.00....%. This is an Update "With-Site-Visit" Reserve Study, based on a prior Report prepared by Association Reserves for your 2018 Fiscal Year. We performed the site inspection on 6/1/2018 This Reserve Study was prepared by or under the supervision of a credentialed Reserve Specialist (RS). Because your Reserve Fund is between 30% and 70% at 40.8 % Funded, this represents a moderate risk of special assessments. In perspective, associations above 70% Funded experience low exposure to both special assessment and deferred maintenance risks. Based on this starting point, your anticipated future expenses, and your historical Reserve contribution rate, our recommendation is to increase your Reserve contributions. Your multi-year Funding Plan is designed to gradually bring you to the 100% level, or Fully Funded. No assets appropriate for Reserve designation were excluded. Association Reserves, 99999999-0 1

Executive Summary 99999999-0 # Component Useful Life (yrs) General Common Area Rem. Useful Life (yrs) Current Average Cost 103 Concrete Sidewalks/Curbs - Repair 10 0 $15,150 201 Asphalt - Remove & Replace 30 3 $258,500 202 Asphalt - Seal/Repair 5 3 $15,050 320 Pole Lights - Replace 20 4 $42,450 403 Mailbox Structures - Replace 20 3 $6,315 403 Mailboxes - Replace (New) 15 14 $2,900 403 Mailboxes - Replace (Old) 15 0 $4,350 404 Pool Furniture - Partial Replace 6 2 $4,500 411 Drinking Fountain - Replace 20 0 $1,200 503 Metal Fence/Rail - Partial Replace 15 5 $4,500 504 Stair Railings - Replace 35 33 $5,555 708 Wood Gates - Replace 15 0 $2,425 803 Water Heater/Tank - Replace 15 0 $1,315 909 Bathroom - Refurbish 15 0 $5,050 1001 Backflow Devices - Replace 15 3 $10,500 1003 Irrigation Controllers - Replace 12 9 $6,250 1004 Irrigation Enclosures - Replace 28 0 $7,000 1004 Stainless Enclosures - Replace 28 25 $1,750 1107 Metal Fence/Rail - Repaint 5 0 $3,600 1115 Stucco - Repaint 15 10 $105,050 1116 Wood Surfaces - Repaint 5 0 $44,300 1201 Pool Deck - Replace 45 0 $29,500 1202 Pool - Resurface 12 6 $15,400 1203 Spa - Resurface 6 0 $3,940 1207 Pool Filter - Replace 12 3 $1,210 1207 Spa Filter - Replace 12 6 $1,110 1208 Pool Heater - Replace 10 4 $3,930 1208 Spa Heater - Replace 10 7 $3,800 1210 Pool/Spa Pumps - Partial Replace 4 0 $1,009 1215 Pool Shower - Refurbish 15 0 $1,265 1304 Pool Roof - Replace Underlayment 30 0 $4,520 31 Total Funded Components Note 1: Yellow highlighted line items are expected to require attention in this initial year. Association Reserves, 99999999-0 2

Introduction A Reserve Study is the art and science of anticipating, and preparing for, an association's major common area repair and replacement expenses. Partially art, because in this field we are making projections about the future. Partially science, because our work is a combination of research and welldefined computations, following consistent National Reserve Study Standard principles. The foundation of this and every Reserve Study is your Reserve Component List (what you are reserving for). This is because the Reserve Component List defines the scope and schedule of all your anticipated upcoming Reserve projects. Based on that List and your starting balance, we calculate the association's Reserve Fund Strength (reported in terms of "Percent Funded"). Then we compute a Reserve Funding Plan to provide for the Reserve needs of the association. These form the three results of your Reserve Study. Reserve contributions are not for the future. Reserve contributions are designed to offset the ongoing, daily deterioration of your Reserve assets. Done well, a stable, budgeted Reserve Funding Plan will collect sufficient funds from the owners who enjoyed the use of those assets, so the association is financially prepared for the irregular expenditures scattered through future years when those projects eventually require replacement. Methodology For this Update With-Site-Visit Reserve Study, we started with a review of your prior Reserve Study, then looked into recent Reserve expenditures, evaluated how expenditures are handled (ongoing maintenance vs Reserves), and researched any well-established association precedents. We performed an on-site inspection to evaluate your common areas, updating and adjusting your Reserve Component List as appropriate. Association Reserves, 99999999-0 3

Which Physical Assets are Funded by Reserves? There is a national-standard four-part test to determine which expenses should appear in your Reserve Component List. First, it must be a common area maintenance responsibility. Second, the component must have a limited life. Third, the remaining life must be predictable (or it by definition is a surprise which cannot be accurately anticipated). Fourth, the component must be above a minimum threshold cost (often between.5% and 1% of an association's total budget). This limits Reserve Components to major, predictable expenses. Within this framework, it is inappropriate to include lifetime components, unpredictable expenses (such as damage due to fire, flood, or earthquake), and expenses more appropriately handled from the Operational Budget or as an insured loss. How do we establish Useful Life and Remaining Useful Life estimates? 1) Visual Inspection (observed wear and age) 2) Association Reserves database of experience 3) Client History (install dates & previous life cycle information) 4) Vendor Evaluation and Recommendation How do we establish Current Repair/Replacement Cost Estimates? In this order... 1) Actual client cost history, or current proposals 2) Comparison to Association Reserves database of work done at similar associations 3) Vendor Recommendations 4) Reliable National Industry cost estimating guidebooks Association Reserves, 99999999-0 4

How much Reserves are enough? Reserve adequacy is not measured in cash terms. Reserve adequacy is found when the amount of current Reserve cash is compared to Reserve component deterioration (the needs of the association). Having enough means the association can execute its projects in a timely manner with existing Reserve funds. Not having enough typically creates deferred maintenance or special assessments. Adequacy is measured in a two-step process: 1) Calculate the value of deterioration at the association (called Fully Funded Balance, or FFB). 2) Compare that to the Reserve Fund Balance, and express as a percentage. Each year, the value of deterioration at the association changes. When there is more deterioration (as components approach the time they need to be replaced), there should be more cash to offset that deterioration and prepare for the expenditure. Conversely, the value of deterioration shrinks after projects are accomplished. The value of deterioration (the FFB) changes each year, and is a moving but predictable target. There is a high risk of special assessments and deferred maintenance when the Percent Funded is weak, below 30%. Approximately 30% of all associations are in this high risk range. While the 100% point is Ideal (indicating Reserve cash is equal to the value of deterioration), a Reserve Fund in the 70% - 130% range is considered strong (low risk of special assessment). Measuring your Reserves by Percent Funded tells how well prepared your association is for upcoming Reserve expenses. New buyers should be very aware of this important disclosure! Association Reserves, 99999999-0 5

How much should we contribute? According to National Reserve Study Standards, there are four Funding Principles to balance in developing your Reserve Funding Plan. Our first objective is to design a plan that provides you with sufficient cash to perform your Reserve projects on time. Second, a stable contribution is desirable because it keeps these naturally irregular expenses from unsettling the budget. Reserve contributions that are evenly distributed over current and future owners enable each owner to pay their fair share of the association's Reserve expenses over the years. And finally, we develop a plan that is fiscally responsible and safe for Boardmembers to recommend to their association. Remember, it is the Board's job to provide for the ongoing care of the common areas. Boardmembers invite liability exposure when Reserve contributions are inadequate to offset ongoing common area deterioration. What is our Recommended Funding Goal? Maintaining the Reserve Fund at a level equal to the value of deterioration is called "Full Funding" (100% Funded). As each asset ages and becomes "used up," the Reserve Fund grows proportionally. This is simple, responsible, and our recommendation. Evidence shows that associations in the 70-130% range enjoy a low risk of special assessments or deferred maintenance. Allowing the Reserves to fall close to zero, but not below zero, is called Baseline Funding. Doing so allows the Reserve Fund to drop into the 0-30% range, where there is a high risk of special assessments & deferred maintenance. Since Baseline Funding still provides for the timely execution of all Reserve projects, and only the "margin of safety" is different, Baseline Funding contributions average only 10% - 15% less than Full Funding contributions. Threshold Funding is the title of all other Cash or Percent Funded objectives between Baseline Funding and Full Funding. Association Reserves, 99999999-0 6

Site Inspection Notes During our site visit on 6/1/2018 we started with a brief meeting with Michael Smith, and then started the site inspection beginning with the Pool Area. We visually inspected all the buildings, and were able to see all areas. During our site inspection we were informed that Concrete Swales - Replace is being handled from the Operational maintenance budget, not Reserves. Association Reserves, 99999999-0 7

Projected Expenses While this Reserve Study looks forward 30 years, we have no expectation that all these expenses will all take place as anticipated. This Reserve Study needs to be updated annually because we expect the timing of these expenses to shift and the size of these expenses to change. We do feel more certain of the timing and cost of near-term expenses than expenses many years away. Please be aware of your near-term expenses, which we are able to project more accurately than the more distant projections. The figure below summarizes the projected future expenses at your association as defined by your Reserve Component List. A summary of these components are shown in the Component Details table, while a summary of the expenses themselves are shown in the 30-yr Expense Summary table. Note the year 2022, made up primarily of Asphalt - Remove & Replace. Figure 1 Association Reserves, 99999999-0 8

Reserve Fund Status The starting point for our financial analysis is your Reserve Fund balance, projected to be $190,604 as-of the start of your Fiscal Year on 1/1/2019. This is based on your actual balance on 06/30/18 of $172,064 and anticipated Reserve contributions ($18,000) and expenses (none projected) through the end of your Fiscal Year. As of your Fiscal Year Start, your Fully Funded Balance is computed to be $466,960. This figure represents the deteriorated value of your common area components. Comparing your Reserve Balance to your Fully Funded Balance indicates your Reserves are 40.8 % Funded. Across the country approximately 13% of associations above 40% and under 50% Funded experience special assessments or deferred maintenance. Recommended Funding Plan Based on your current Percent Funded and your near-term and long-term Reserve needs, we are recommending budgeted contributions of $5,850 per month this Fiscal Year. The overall 30-yr plan, in perspective, is shown below. This same information is shown numerically in both the 30-yr Summary and the Cash Flow Detail tables. Figure 2 Association Reserves, 99999999-0 9

The following chart shows your Reserve balance under our recommended Full Funding Plan and at your current budgeted contribution rate, compared to your always-changing Fully Funded Balance target. Figure 3 This figure shows the same information plotted on a Percent Funded scale. It is clear here to see how your Reserve Fund strength approaches the 100% Funded level under our recommended multi-yr Funding Plan. Figure 4 Association Reserves, 99999999-0 10

Table Descriptions The tabular information in this Report is broken down into nine tables, not all which may have been chosen by your Project Manager to appear in your report. Tables are listed in the order in which they appear in your Report. Executive Summary is a summary of your Reserve Components Budget Summary is a management and accounting tool, summarizing groupings of your Reserve Components. Analysis Summary provides a summary of the starting financial information and your Project Manager s Financial Analysis decision points. Reserve Component List Detail discloses key Component information, providing the foundation upon which the financial analysis is performed. Fully Funded Balance shows the calculation of the Fully Funded Balance for each of your components, and their contributions to the association total. For each component, the Fully Funded Balance is the fraction of life used up multiplied by its estimated Current Replacement Cost. Component Significance shows the relative significance of each component to Reserve funding needs of the association, helping you see which components have more (or less) influence than others on your total Reserve contribution rate. The deterioration cost/yr of each component is calculated by dividing the estimated Current Replacement Cost by its Useful Life, then that component s percentage of the total is displayed. Accounting-Tax Summary provides information on each Component s proportionate portion of key totals, valuable to accounting professionals primarily during tax preparation time of year. 30-Yr Reserve Plan Summary provides a one-page 30-year summary of the cash flowing into and out of the Reserve Fund, with a display of the Fully Funded Balance, Percent Funded, and special assessment risk at the beginning of each year. 30-Year Income/Expense Detail shows the detailed income and expenses for each of the next 30 years. This table makes it possible to see which components are projected to require repair or replacement in a particular year, and the size of those individual expenses. Association Reserves, 99999999-0 11

Reserve Component List Detail 99999999-0 WSV Current Cost Estimate # Component Quantity Useful Life Rem. Useful Life Best Case Worst Case General Common Area 103 Concrete Sidewalks/Curbs - Repair Extensive GSF 10 0 $10,100 $20,200 201 Asphalt - Remove & Replace Approx. 85,300 GSF 30 3 $215,000 $302,000 202 Asphalt - Seal/Repair Approx. 85,300 GSF 5 3 $12,900 $17,200 320 Pole Lights - Replace (24) Fixtures 20 4 $36,400 $48,500 403 Mailbox Structures - Replace (5) Structures 20 3 $5,050 $7,580 403 Mailboxes - Replace (New) (2) Kiosks 15 14 $2,600 $3,200 403 Mailboxes - Replace (Old) (3) Kiosks 15 0 $3,900 $4,800 404 Pool Furniture - Partial Replace (26) Assorted Pieces 6 2 $4,000 $5,000 411 Drinking Fountain - Replace (1) Wall Mounted Unit 20 0 $1,000 $1,400 503 Metal Fence/Rail - Partial Replace Approx. 1/3 of 290 LF 15 5 $4,000 $5,000 504 Stair Railings - Replace Approx. 130 LF 35 33 $5,050 $6,060 708 Wood Gates - Replace Approx. 30 LF 15 0 $2,020 $2,830 803 Water Heater/Tank - Replace (1) Reliance 30 Gal 15 0 $1,110 $1,520 909 Bathroom - Refurbish (2) 80 GSF Rooms 15 0 $4,040 $6,060 1001 Backflow Devices - Replace (5) Backflows 15 3 $8,500 $12,500 1003 Irrigation Controllers - Replace (5) 18-24 Station Units 12 9 $5,000 $7,500 1004 Irrigation Enclosures - Replace (4) Steel enclosures 28 0 $6,000 $8,000 1004 Stainless Enclosures - Replace (1) Stainless enclosure 28 25 $1,500 $2,000 1107 Metal Fence/Rail - Repaint Approx. 290 LF 5 0 $3,200 $4,000 1115 Stucco - Repaint Approx. 84100 GSF 15 10 $84,100 $126,000 1116 Wood Surfaces - Repaint Approx. 25300 GSF 5 0 $38,000 $50,600 1201 Pool Deck - Replace Approx. 2200 GSF 45 0 $26,000 $33,000 1202 Pool - Resurface (1) 132 LF Pool 12 6 $14,100 $16,700 1203 Spa - Resurface (1) 8' Diameter Spa 6 0 $3,540 $4,340 1207 Pool Filter - Replace (1) Purex 58 GSF 12 3 $1,110 $1,310 1207 Spa Filter - Replace (1) Pentair 48 GSF 12 6 $1,010 $1,210 1208 Pool Heater - Replace (1) Pentair 400K BTU 10 4 $3,540 $4,320 1208 Spa Heater - Replace (1) Mighty Max Unit 10 7 $3,200 $4,400 1210 Pool/Spa Pumps - Partial Replace (3) Assorted Units 4 0 $808 $1,210 1215 Pool Shower - Refurbish (1) Shower 15 0 $1,010 $1,520 1304 Pool Roof - Replace Underlayment Approx. 800 GSF 30 0 $4,040 $5,000 31 Total Funded Components Association Reserves, 99999999-0 12

Fully Funded Balance 99999999-0 WSV # Component Current Cost Estimate X Effective Age / Useful Life = Fully Funded Balance General Common Area 103 Concrete Sidewalks/Curbs - Repair $15,150 X 10 / 10 = $15,150 201 Asphalt - Remove & Replace $258,500 X 27 / 30 = $232,650 202 Asphalt - Seal/Repair $15,050 X 2 / 5 = $6,020 320 Pole Lights - Replace $42,450 X 16 / 20 = $33,960 403 Mailbox Structures - Replace $6,315 X 17 / 20 = $5,368 403 Mailboxes - Replace (New) $2,900 X 1 / 15 = $193 403 Mailboxes - Replace (Old) $4,350 X 15 / 15 = $4,350 404 Pool Furniture - Partial Replace $4,500 X 4 / 6 = $3,000 411 Drinking Fountain - Replace $1,200 X 20 / 20 = $1,200 503 Metal Fence/Rail - Partial Replace $4,500 X 10 / 15 = $3,000 504 Stair Railings - Replace $5,555 X 2 / 35 = $317 708 Wood Gates - Replace $2,425 X 15 / 15 = $2,425 803 Water Heater/Tank - Replace $1,315 X 15 / 15 = $1,315 909 Bathroom - Refurbish $5,050 X 15 / 15 = $5,050 1001 Backflow Devices - Replace $10,500 X 12 / 15 = $8,400 1003 Irrigation Controllers - Replace $6,250 X 3 / 12 = $1,563 1004 Irrigation Enclosures - Replace $7,000 X 28 / 28 = $7,000 1004 Stainless Enclosures - Replace $1,750 X 3 / 28 = $188 1107 Metal Fence/Rail - Repaint $3,600 X 5 / 5 = $3,600 1115 Stucco - Repaint $105,050 X 5 / 15 = $35,017 1116 Wood Surfaces - Repaint $44,300 X 5 / 5 = $44,300 1201 Pool Deck - Replace $29,500 X 45 / 45 = $29,500 1202 Pool - Resurface $15,400 X 6 / 12 = $7,700 1203 Spa - Resurface $3,940 X 6 / 6 = $3,940 1207 Pool Filter - Replace $1,210 X 9 / 12 = $908 1207 Spa Filter - Replace $1,110 X 6 / 12 = $555 1208 Pool Heater - Replace $3,930 X 6 / 10 = $2,358 1208 Spa Heater - Replace $3,800 X 3 / 10 = $1,140 1210 Pool/Spa Pumps - Partial Replace $1,009 X 4 / 4 = $1,009 1215 Pool Shower - Refurbish $1,265 X 15 / 15 = $1,265 1304 Pool Roof - Replace Underlayment $4,520 X 30 / 30 = $4,520 $466,960 Association Reserves, 99999999-0 13

Accounting-Tax Summary 99999999-0 WSV # Component UL RUL Current Cost Estimate Fully Funded Balance Current Fund Balance Proportional Reserve Contribs General Common Area 103 Concrete Sidewalks/Curbs - Repair 10 0 $15,150 $15,150 $15,150 $221 201 Asphalt - Remove & Replace 30 3 $258,500 $232,650 $42,285 $1,258 202 Asphalt - Seal/Repair 5 3 $15,050 $6,020 $6,020 $439 320 Pole Lights - Replace 20 4 $42,450 $33,960 $0 $310 403 Mailbox Structures - Replace 20 3 $6,315 $5,368 $5,368 $46 403 Mailboxes - Replace (New) 15 14 $2,900 $193 $0 $28 403 Mailboxes - Replace (Old) 15 0 $4,350 $4,350 $4,350 $42 404 Pool Furniture - Partial Replace 6 2 $4,500 $3,000 $3,000 $109 411 Drinking Fountain - Replace 20 0 $1,200 $1,200 $1,200 $9 503 Metal Fence/Rail - Partial Replace 15 5 $4,500 $3,000 $0 $44 504 Stair Railings - Replace 35 33 $5,555 $317 $0 $23 708 Wood Gates - Replace 15 0 $2,425 $2,425 $2,425 $24 803 Water Heater/Tank - Replace 15 0 $1,315 $1,315 $1,315 $13 909 Bathroom - Refurbish 15 0 $5,050 $5,050 $5,050 $49 1001 Backflow Devices - Replace 15 3 $10,500 $8,400 $8,400 $102 1003 Irrigation Controllers - Replace 12 9 $6,250 $1,563 $0 $76 1004 Irrigation Enclosures - Replace 28 0 $7,000 $7,000 $7,000 $36 1004 Stainless Enclosures - Replace 28 25 $1,750 $188 $0 $9 1107 Metal Fence/Rail - Repaint 5 0 $3,600 $3,600 $3,600 $105 1115 Stucco - Repaint 15 10 $105,050 $35,017 $0 $1,022 1116 Wood Surfaces - Repaint 5 0 $44,300 $44,300 $44,300 $1,293 1201 Pool Deck - Replace 45 0 $29,500 $29,500 $29,500 $96 1202 Pool - Resurface 12 6 $15,400 $7,700 $0 $187 1203 Spa - Resurface 6 0 $3,940 $3,940 $3,940 $96 1207 Pool Filter - Replace 12 3 $1,210 $908 $908 $15 1207 Spa Filter - Replace 12 6 $1,110 $555 $0 $13 1208 Pool Heater - Replace 10 4 $3,930 $2,358 $0 $57 1208 Spa Heater - Replace 10 7 $3,800 $1,140 $0 $55 1210 Pool/Spa Pumps - Partial Replace 4 0 $1,009 $1,009 $1,009 $37 1215 Pool Shower - Refurbish 15 0 $1,265 $1,265 $1,265 $12 1304 Pool Roof - Replace Underlayment 30 0 $4,520 $4,520 $4,520 $22 31 Total Funded Components $466,960 $190,604 $5,850 Association Reserves, 99999999-0 14

30-Year Reserve Plan Summary 99999999-0 WSV Fiscal Year Start: 2019 Interest: 1.00 % Inflation: 3.00 % Reserve Fund Strength Calculations: (All values of Fiscal Year Start Date) Projected Reserve Balance Changes % Increase Starting Fully Special In Annual Loan or Reserve Funded Percent Assmt Reserve Reserve Special Interest Reserve Year Balance Balance Funded Risk Contribs. Contribs. Assmts Income Expenses 2019 $190,604 $466,960 40.8 % Medium 95.00 % $70,200 $0 $1,641 $124,624 2020 $137,821 $393,892 35.0 % Medium 3.50 % $72,657 $0 $1,750 $0 2021 $212,228 $448,234 47.3 % Medium 3.50 % $75,200 $0 $2,486 $4,774 2022 $285,140 $500,564 57.0 % Medium 0.75 % $75,764 $0 $1,645 $318,612 2023 $43,936 $232,525 18.9 % High 0.75 % $76,332 $0 $557 $53,337 2024 $67,489 $231,032 29.2 % High 0.75 % $76,905 $0 $759 $60,746 2025 $84,407 $223,257 37.8 % Medium 0.75 % $77,482 $0 $1,114 $24,418 2026 $138,584 $254,102 54.5 % Medium 0.75 % $78,063 $0 $1,761 $4,674 2027 $213,734 $307,688 69.5 % Medium 0.75 % $78,648 $0 $2,411 $26,044 2028 $268,750 $342,394 78.5 % Low 0.75 % $79,238 $0 $3,057 $8,155 2029 $342,890 $398,136 86.1 % Low 0.75 % $79,832 $0 $2,711 $225,912 2030 $199,521 $232,875 85.7 % Low 0.75 % $80,431 $0 $2,408 $0 2031 $282,360 $297,012 95.1 % Low 0.75 % $81,034 $0 $3,208 $7,056 2032 $359,547 $357,518 100.6 % Low 0.75 % $81,642 $0 $3,911 $22,101 2033 $422,998 $406,110 104.2 % Low 0.75 % $82,254 $0 $4,577 $17,138 2034 $492,691 $463,091 106.4 % Low 0.75 % $82,871 $0 $4,869 $98,954 2035 $481,477 $439,383 109.6 % Low 0.75 % $83,493 $0 $5,248 $1,619 2036 $568,599 $517,149 109.9 % Low 0.75 % $84,119 $0 $6,103 $6,281 2037 $652,540 $594,434 109.8 % Low 0.75 % $84,750 $0 $6,588 $78,312 2038 $665,566 $601,893 110.6 % Low 0.75 % $85,385 $0 $7,115 $0 2039 $758,066 $692,346 109.5 % Low 0.75 % $86,026 $0 $7,374 $134,120 2040 $717,346 $649,540 110.4 % Low 0.75 % $86,671 $0 $7,583 $11,627 2041 $799,973 $733,855 109.0 % Low 0.75 % $87,321 $0 $8,475 $0 2042 $895,770 $834,980 107.3 % Low 0.75 % $87,976 $0 $9,229 $42,166 2043 $950,809 $898,081 105.9 % Low 0.75 % $88,636 $0 $9,473 $104,341 2044 $944,576 $901,478 104.8 % Low 0.75 % $89,301 $0 $8,311 $323,907 2045 $718,280 $681,342 105.4 % Low 0.75 % $89,970 $0 $7,619 $9,705 2046 $806,165 $780,824 103.2 % Low 0.75 % $90,645 $0 $8,498 $11,129 2047 $894,179 $884,495 101.1 % Low 0.75 % $91,325 $0 $9,177 $52,757 2048 $941,923 $951,150 99.0 % Low 0.75 % $92,010 $0 $9,890 $6,834 Association Reserves, 99999999-0 15

30-Year Income/Expense Detail 99999999-0 WSV Fiscal Year 2019 2020 2021 2022 2023 Starting Reserve Balance $190,604 $137,821 $212,228 $285,140 $43,936 Annual Reserve Contribution $70,200 $72,657 $75,200 $75,764 $76,332 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $1,641 $1,750 $2,486 $1,645 $557 Total Income $262,445 $212,228 $289,914 $362,548 $120,826 # Component General Common Area 103 Concrete Sidewalks/Curbs - Repair $15,150 $0 $0 $0 $0 201 Asphalt - Remove & Replace $0 $0 $0 $282,470 $0 202 Asphalt - Seal/Repair $0 $0 $0 $16,446 $0 320 Pole Lights - Replace $0 $0 $0 $0 $47,778 403 Mailbox Structures - Replace $0 $0 $0 $6,901 $0 403 Mailboxes - Replace (New) $0 $0 $0 $0 $0 403 Mailboxes - Replace (Old) $4,350 $0 $0 $0 $0 404 Pool Furniture - Partial Replace $0 $0 $4,774 $0 $0 411 Drinking Fountain - Replace $1,200 $0 $0 $0 $0 503 Metal Fence/Rail - Partial Replace $0 $0 $0 $0 $0 504 Stair Railings - Replace $0 $0 $0 $0 $0 708 Wood Gates - Replace $2,425 $0 $0 $0 $0 803 Water Heater/Tank - Replace $1,315 $0 $0 $0 $0 909 Bathroom - Refurbish $5,050 $0 $0 $0 $0 1001 Backflow Devices - Replace $0 $0 $0 $11,474 $0 1003 Irrigation Controllers - Replace $0 $0 $0 $0 $0 1004 Irrigation Enclosures - Replace $7,000 $0 $0 $0 $0 1004 Stainless Enclosures - Replace $0 $0 $0 $0 $0 1107 Metal Fence/Rail - Repaint $3,600 $0 $0 $0 $0 1115 Stucco - Repaint $0 $0 $0 $0 $0 1116 Wood Surfaces - Repaint $44,300 $0 $0 $0 $0 1201 Pool Deck - Replace $29,500 $0 $0 $0 $0 1202 Pool - Resurface $0 $0 $0 $0 $0 1203 Spa - Resurface $3,940 $0 $0 $0 $0 1207 Pool Filter - Replace $0 $0 $0 $1,322 $0 1207 Spa Filter - Replace $0 $0 $0 $0 $0 1208 Pool Heater - Replace $0 $0 $0 $0 $4,423 1208 Spa Heater - Replace $0 $0 $0 $0 $0 1210 Pool/Spa Pumps - Partial Replace $1,009 $0 $0 $0 $1,136 1215 Pool Shower - Refurbish $1,265 $0 $0 $0 $0 1304 Pool Roof - Replace Underlayment $4,520 $0 $0 $0 $0 Total Expenses $124,624 $0 $4,774 $318,612 $53,337 Ending Reserve Balance $137,821 $212,228 $285,140 $43,936 $67,489 Association Reserves, 99999999-0 16

Fiscal Year 2024 2025 2026 2027 2028 Starting Reserve Balance $67,489 $84,407 $138,584 $213,734 $268,750 Annual Reserve Contribution $76,905 $77,482 $78,063 $78,648 $79,238 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $759 $1,114 $1,761 $2,411 $3,057 Total Income $145,153 $163,003 $218,408 $294,794 $351,045 # Component General Common Area 103 Concrete Sidewalks/Curbs - Repair $0 $0 $0 $0 $0 201 Asphalt - Remove & Replace $0 $0 $0 $0 $0 202 Asphalt - Seal/Repair $0 $0 $0 $19,065 $0 320 Pole Lights - Replace $0 $0 $0 $0 $0 403 Mailbox Structures - Replace $0 $0 $0 $0 $0 403 Mailboxes - Replace (New) $0 $0 $0 $0 $0 403 Mailboxes - Replace (Old) $0 $0 $0 $0 $0 404 Pool Furniture - Partial Replace $0 $0 $0 $5,700 $0 411 Drinking Fountain - Replace $0 $0 $0 $0 $0 503 Metal Fence/Rail - Partial Replace $5,217 $0 $0 $0 $0 504 Stair Railings - Replace $0 $0 $0 $0 $0 708 Wood Gates - Replace $0 $0 $0 $0 $0 803 Water Heater/Tank - Replace $0 $0 $0 $0 $0 909 Bathroom - Refurbish $0 $0 $0 $0 $0 1001 Backflow Devices - Replace $0 $0 $0 $0 $0 1003 Irrigation Controllers - Replace $0 $0 $0 $0 $8,155 1004 Irrigation Enclosures - Replace $0 $0 $0 $0 $0 1004 Stainless Enclosures - Replace $0 $0 $0 $0 $0 1107 Metal Fence/Rail - Repaint $4,173 $0 $0 $0 $0 1115 Stucco - Repaint $0 $0 $0 $0 $0 1116 Wood Surfaces - Repaint $51,356 $0 $0 $0 $0 1201 Pool Deck - Replace $0 $0 $0 $0 $0 1202 Pool - Resurface $0 $18,388 $0 $0 $0 1203 Spa - Resurface $0 $4,705 $0 $0 $0 1207 Pool Filter - Replace $0 $0 $0 $0 $0 1207 Spa Filter - Replace $0 $1,325 $0 $0 $0 1208 Pool Heater - Replace $0 $0 $0 $0 $0 1208 Spa Heater - Replace $0 $0 $4,674 $0 $0 1210 Pool/Spa Pumps - Partial Replace $0 $0 $0 $1,278 $0 1215 Pool Shower - Refurbish $0 $0 $0 $0 $0 1304 Pool Roof - Replace Underlayment $0 $0 $0 $0 $0 Total Expenses $60,746 $24,418 $4,674 $26,044 $8,155 Ending Reserve Balance $84,407 $138,584 $213,734 $268,750 $342,890 Association Reserves, 99999999-0 17

Fiscal Year 2029 2030 2031 2032 2033 Starting Reserve Balance $342,890 $199,521 $282,360 $359,547 $422,998 Annual Reserve Contribution $79,832 $80,431 $81,034 $81,642 $82,254 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $2,711 $2,408 $3,208 $3,911 $4,577 Total Income $425,433 $282,360 $366,603 $445,100 $509,829 # Component General Common Area 103 Concrete Sidewalks/Curbs - Repair $20,360 $0 $0 $0 $0 201 Asphalt - Remove & Replace $0 $0 $0 $0 $0 202 Asphalt - Seal/Repair $0 $0 $0 $22,101 $0 320 Pole Lights - Replace $0 $0 $0 $0 $0 403 Mailbox Structures - Replace $0 $0 $0 $0 $0 403 Mailboxes - Replace (New) $0 $0 $0 $0 $4,387 403 Mailboxes - Replace (Old) $0 $0 $0 $0 $0 404 Pool Furniture - Partial Replace $0 $0 $0 $0 $6,807 411 Drinking Fountain - Replace $0 $0 $0 $0 $0 503 Metal Fence/Rail - Partial Replace $0 $0 $0 $0 $0 504 Stair Railings - Replace $0 $0 $0 $0 $0 708 Wood Gates - Replace $0 $0 $0 $0 $0 803 Water Heater/Tank - Replace $0 $0 $0 $0 $0 909 Bathroom - Refurbish $0 $0 $0 $0 $0 1001 Backflow Devices - Replace $0 $0 $0 $0 $0 1003 Irrigation Controllers - Replace $0 $0 $0 $0 $0 1004 Irrigation Enclosures - Replace $0 $0 $0 $0 $0 1004 Stainless Enclosures - Replace $0 $0 $0 $0 $0 1107 Metal Fence/Rail - Repaint $4,838 $0 $0 $0 $0 1115 Stucco - Repaint $141,178 $0 $0 $0 $0 1116 Wood Surfaces - Repaint $59,535 $0 $0 $0 $0 1201 Pool Deck - Replace $0 $0 $0 $0 $0 1202 Pool - Resurface $0 $0 $0 $0 $0 1203 Spa - Resurface $0 $0 $5,617 $0 $0 1207 Pool Filter - Replace $0 $0 $0 $0 $0 1207 Spa Filter - Replace $0 $0 $0 $0 $0 1208 Pool Heater - Replace $0 $0 $0 $0 $5,944 1208 Spa Heater - Replace $0 $0 $0 $0 $0 1210 Pool/Spa Pumps - Partial Replace $0 $0 $1,439 $0 $0 1215 Pool Shower - Refurbish $0 $0 $0 $0 $0 1304 Pool Roof - Replace Underlayment $0 $0 $0 $0 $0 Total Expenses $225,912 $0 $7,056 $22,101 $17,138 Ending Reserve Balance $199,521 $282,360 $359,547 $422,998 $492,691 Association Reserves, 99999999-0 18

Fiscal Year 2034 2035 2036 2037 2038 Starting Reserve Balance $492,691 $481,477 $568,599 $652,540 $665,566 Annual Reserve Contribution $82,871 $83,493 $84,119 $84,750 $85,385 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $4,869 $5,248 $6,103 $6,588 $7,115 Total Income $580,431 $570,218 $658,821 $743,878 $758,066 # Component General Common Area 103 Concrete Sidewalks/Curbs - Repair $0 $0 $0 $0 $0 201 Asphalt - Remove & Replace $0 $0 $0 $0 $0 202 Asphalt - Seal/Repair $0 $0 $0 $25,622 $0 320 Pole Lights - Replace $0 $0 $0 $0 $0 403 Mailbox Structures - Replace $0 $0 $0 $0 $0 403 Mailboxes - Replace (New) $0 $0 $0 $0 $0 403 Mailboxes - Replace (Old) $6,777 $0 $0 $0 $0 404 Pool Furniture - Partial Replace $0 $0 $0 $0 $0 411 Drinking Fountain - Replace $0 $0 $0 $0 $0 503 Metal Fence/Rail - Partial Replace $0 $0 $0 $0 $0 504 Stair Railings - Replace $0 $0 $0 $0 $0 708 Wood Gates - Replace $3,778 $0 $0 $0 $0 803 Water Heater/Tank - Replace $2,049 $0 $0 $0 $0 909 Bathroom - Refurbish $7,868 $0 $0 $0 $0 1001 Backflow Devices - Replace $0 $0 $0 $17,876 $0 1003 Irrigation Controllers - Replace $0 $0 $0 $0 $0 1004 Irrigation Enclosures - Replace $0 $0 $0 $0 $0 1004 Stainless Enclosures - Replace $0 $0 $0 $0 $0 1107 Metal Fence/Rail - Repaint $5,609 $0 $0 $0 $0 1115 Stucco - Repaint $0 $0 $0 $0 $0 1116 Wood Surfaces - Repaint $69,018 $0 $0 $0 $0 1201 Pool Deck - Replace $0 $0 $0 $0 $0 1202 Pool - Resurface $0 $0 $0 $26,217 $0 1203 Spa - Resurface $0 $0 $0 $6,708 $0 1207 Pool Filter - Replace $1,885 $0 $0 $0 $0 1207 Spa Filter - Replace $0 $0 $0 $1,890 $0 1208 Pool Heater - Replace $0 $0 $0 $0 $0 1208 Spa Heater - Replace $0 $0 $6,281 $0 $0 1210 Pool/Spa Pumps - Partial Replace $0 $1,619 $0 $0 $0 1215 Pool Shower - Refurbish $1,971 $0 $0 $0 $0 1304 Pool Roof - Replace Underlayment $0 $0 $0 $0 $0 Total Expenses $98,954 $1,619 $6,281 $78,312 $0 Ending Reserve Balance $481,477 $568,599 $652,540 $665,566 $758,066 Association Reserves, 99999999-0 19

Fiscal Year 2039 2040 2041 2042 2043 Starting Reserve Balance $758,066 $717,346 $799,973 $895,770 $950,809 Annual Reserve Contribution $86,026 $86,671 $87,321 $87,976 $88,636 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $7,374 $7,583 $8,475 $9,229 $9,473 Total Income $851,466 $811,600 $895,770 $992,974 $1,048,917 # Component General Common Area 103 Concrete Sidewalks/Curbs - Repair $27,363 $0 $0 $0 $0 201 Asphalt - Remove & Replace $0 $0 $0 $0 $0 202 Asphalt - Seal/Repair $0 $0 $0 $29,702 $0 320 Pole Lights - Replace $0 $0 $0 $0 $86,292 403 Mailbox Structures - Replace $0 $0 $0 $12,463 $0 403 Mailboxes - Replace (New) $0 $0 $0 $0 $0 403 Mailboxes - Replace (Old) $0 $0 $0 $0 $0 404 Pool Furniture - Partial Replace $8,128 $0 $0 $0 $0 411 Drinking Fountain - Replace $2,167 $0 $0 $0 $0 503 Metal Fence/Rail - Partial Replace $8,128 $0 $0 $0 $0 504 Stair Railings - Replace $0 $0 $0 $0 $0 708 Wood Gates - Replace $0 $0 $0 $0 $0 803 Water Heater/Tank - Replace $0 $0 $0 $0 $0 909 Bathroom - Refurbish $0 $0 $0 $0 $0 1001 Backflow Devices - Replace $0 $0 $0 $0 $0 1003 Irrigation Controllers - Replace $0 $11,627 $0 $0 $0 1004 Irrigation Enclosures - Replace $0 $0 $0 $0 $0 1004 Stainless Enclosures - Replace $0 $0 $0 $0 $0 1107 Metal Fence/Rail - Repaint $6,502 $0 $0 $0 $0 1115 Stucco - Repaint $0 $0 $0 $0 $0 1116 Wood Surfaces - Repaint $80,011 $0 $0 $0 $0 1201 Pool Deck - Replace $0 $0 $0 $0 $0 1202 Pool - Resurface $0 $0 $0 $0 $0 1203 Spa - Resurface $0 $0 $0 $0 $8,009 1207 Pool Filter - Replace $0 $0 $0 $0 $0 1207 Spa Filter - Replace $0 $0 $0 $0 $0 1208 Pool Heater - Replace $0 $0 $0 $0 $7,989 1208 Spa Heater - Replace $0 $0 $0 $0 $0 1210 Pool/Spa Pumps - Partial Replace $1,822 $0 $0 $0 $2,051 1215 Pool Shower - Refurbish $0 $0 $0 $0 $0 1304 Pool Roof - Replace Underlayment $0 $0 $0 $0 $0 Total Expenses $134,120 $11,627 $0 $42,166 $104,341 Ending Reserve Balance $717,346 $799,973 $895,770 $950,809 $944,576 Association Reserves, 99999999-0 20

Fiscal Year 2044 2045 2046 2047 2048 Starting Reserve Balance $944,576 $718,280 $806,165 $894,179 $941,923 Annual Reserve Contribution $89,301 $89,970 $90,645 $91,325 $92,010 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $8,311 $7,619 $8,498 $9,177 $9,890 Total Income $1,042,187 $815,869 $905,308 $994,681 $1,043,824 # Component General Common Area 103 Concrete Sidewalks/Curbs - Repair $0 $0 $0 $0 $0 201 Asphalt - Remove & Replace $0 $0 $0 $0 $0 202 Asphalt - Seal/Repair $0 $0 $0 $34,433 $0 320 Pole Lights - Replace $0 $0 $0 $0 $0 403 Mailbox Structures - Replace $0 $0 $0 $0 $0 403 Mailboxes - Replace (New) $0 $0 $0 $0 $6,834 403 Mailboxes - Replace (Old) $0 $0 $0 $0 $0 404 Pool Furniture - Partial Replace $0 $9,705 $0 $0 $0 411 Drinking Fountain - Replace $0 $0 $0 $0 $0 503 Metal Fence/Rail - Partial Replace $0 $0 $0 $0 $0 504 Stair Railings - Replace $0 $0 $0 $0 $0 708 Wood Gates - Replace $0 $0 $0 $0 $0 803 Water Heater/Tank - Replace $0 $0 $0 $0 $0 909 Bathroom - Refurbish $0 $0 $0 $0 $0 1001 Backflow Devices - Replace $0 $0 $0 $0 $0 1003 Irrigation Controllers - Replace $0 $0 $0 $0 $0 1004 Irrigation Enclosures - Replace $0 $0 $0 $16,015 $0 1004 Stainless Enclosures - Replace $3,664 $0 $0 $0 $0 1107 Metal Fence/Rail - Repaint $7,538 $0 $0 $0 $0 1115 Stucco - Repaint $219,951 $0 $0 $0 $0 1116 Wood Surfaces - Repaint $92,754 $0 $0 $0 $0 1201 Pool Deck - Replace $0 $0 $0 $0 $0 1202 Pool - Resurface $0 $0 $0 $0 $0 1203 Spa - Resurface $0 $0 $0 $0 $0 1207 Pool Filter - Replace $0 $0 $2,688 $0 $0 1207 Spa Filter - Replace $0 $0 $0 $0 $0 1208 Pool Heater - Replace $0 $0 $0 $0 $0 1208 Spa Heater - Replace $0 $0 $8,441 $0 $0 1210 Pool/Spa Pumps - Partial Replace $0 $0 $0 $2,309 $0 1215 Pool Shower - Refurbish $0 $0 $0 $0 $0 1304 Pool Roof - Replace Underlayment $0 $0 $0 $0 $0 Total Expenses $323,907 $9,705 $11,129 $52,757 $6,834 Ending Reserve Balance $718,280 $806,165 $894,179 $941,923 $1,036,990 Association Reserves, 99999999-0 21

Accuracy, Limitations, and Disclosures Because we have no control over future events, we cannot claim that all the events we anticipate will occur as planned. We expect that inflationary trends will continue, and we expect that financial institutions will provide interest earnings on funds on-deposit. We believe that reasonable estimates for these figures are much more accurate than ignoring these economic realities. The things we can control are measurements, which we attempt to establish within 5% accuracy. Your starting Reserve Balance and current Reserve interest earnings are also numbers that can be identified with a high degree of certainty. These figures have been provided to us, and were not confirmed by our independent research. Our projections assume a stable economic environment and lack of natural disasters. Because both the physical status and financial status of the association change each year, this Reserve Study is by nature a one-year document. This information can and should be adjusted annually as part of the Reserve Study Update process so that more accurate estimates can be reflected in the Reserve plan. Reality often differs from even the best assumptions due to changing economic factors, physical factors, or ownership expectations. Because many years of financial preparation help the preparation for large expenses, this Report shows expenses for the next 30 years. We fully expect a number of adjustments will be necessary through the interim years to both the cost and timing of distant expense projections. It is our recommendation and that of the American Institute of Certified Public Accountants (AICPA) that your Reserve Study be updated annually. Association Reserves - Gold Coast, LLC., and its employees have no ownership, management, or other business relationships with the client other than this Reserve Study engagement. There are no material issues to our knowledge that have not been disclosed to the client that would cause a distortion of the association s situation. We have relied upon the client to provide the current (or projected) Reserve Balance, the estimated netafter-tax current rate of interest earnings, and to indicate if those earnings accrue to the Reserve Fund. In addition, we have considered the association s representation of current and historical Reserve projects reliable, and we have considered the representations made by its vendors and suppliers to also be accurate and reliable. Association Reserves, 99999999-0 22

Terms and Definitions BTU DIA GSF GSY HP LF Effective Age Fully Funded Balance (FFB) Inflation Interest Percent Funded Remaining Useful Life (RUL) Useful Life (UL) British Thermal Unit (a standard unit of energy) Diameter Gross Square Feet (area). Equivalent to Square Feet Gross Square Yards (area). Equivalent to Square Yards Horsepower Linear Feet (length) The difference between Useful Life and Remaining Useful Life. Note that this is not necessarily equivalent to the chronological age of the component. The value of the deterioration of the Reserve Components. This is the fraction of life "used up" of each component multiplied by its estimated Current Replacement. While calculated for each component, it is summed together for an association total. Cost factors are adjusted for inflation at the rate defined in the Executive Summary and compounded annually. These increasing costs can be seen as you follow the recurring cycles of a component on the "30-yr Income/Expense Detail" table. Interest earnings on Reserve Funds are calculated using the average balance for the year (taking into account income and expenses through the year) and compounded monthly using the rate defined in the Executive Summary. Annual interest earning assumption appears in the Executive Summary. The ratio, at a particular point in time (the first day of the Fiscal Year), of the actual (or projected) Reserve Balance to the Fully Funded Balance, expressed as a percentage. The estimated time, in years, that a common area component can be expected to continue to serve its intended function. The estimated time, in years, that a common area component can be expected to serve its intended function. Association Reserves, 99999999-0 23

Component Details Component quantities indicated in this Report were derived from the prior Reserve Study, unless otherwise noted in our Site Inspection Notes comments. No destructive or intrusive testing was performed, nor should the site inspection be assumed to be anything other than for budget purposes. Association Reserves, 99999999-0 24

General Common Area Comp #: 103 Concrete Sidewalks/Curbs - Repair Quantity: Extensive GSF Location: Walkways throughout property and pool deck Evaluation: Under normal circumstances these surfaces should reach a very long useful life with no expectation for complete replacement. Best to inspect on a regular basis for trip-hazards. We recommend that the association fund for annual concrete repairs and pressure-washing with Operating Funds but based on the extensive amount of damage, we also recommend periodic larger-scale repairs be funded with Reserves. 10 years 0 years Best Case: $ 10,100 Lower allowance for large-scale repairs Worst Case: $ 20,200 Higher allowance Association Reserves, 99999999-0 25

Comp #: 201 Asphalt - Remove & Replace Quantity: Approx. 85,300 GSF Location: Streets and drives throughout association Evaluation: Currently the asphalt is in remarkably good condition relative to its age. There are periodic transverse and longitudinal cracks but nothing drastic, no alligator cracking, no raveling, etc. The useful life is based on the assumption that the association will reseal and repair the asphalt on schedule. We also recommend that the association hire an asphalt consultant to gather the proper specifications of your asphalt project to insure that the association is planning properly. For long-term budget stability, it is best to fund for complete remove and replacement projects rather than overlay projects. 30 years 3 years Best Case: $ 215,000 Lower estimate to remove and replace Worst Case: $ 302,000 Comp #: 202 Asphalt - Seal/Repair Quantity: Approx. 85,300 GSF Location: Streets and drives throughout association Seal & Repair in 2015 Evaluation: Seal coat on the streets remains in fair condition overall and the parking areas have a clear problem with irrigation overspray. Fixing that issue will help prolong the life of both the seal coats as well as the asphalt base. Asphalt should be sealed regularly to ensure a full useful life. Sealing at regular intervals restores the appearance and minimizes penetration of water and other surface contaminants. Seal coating is essential preventive maintenance and should not be deferred. 5 years 3 years Best Case: $ 12,900 Lower estimate to seal and repair Worst Case: $ 17,200 Association Reserves, 99999999-0 26

Comp #: 320 Pole Lights - Replace Quantity: (24) Fixtures Location: Adjacent to streets and walks Evaluation: Inspected during daylight hours, but assumed to be functional. Weathering, tilting and some broken lenses observed in various cases. Plan to eventually replace all of the pole lights at the same time to maintain a uniform appearance. Best to clean the fixtures on a regular basis to ensure full illumination. 20 years 4 years Best Case: $ 36,400 Lower estimate to replace Worst Case: $ 48,500 Comp #: 403 Mailbox Structures - Replace Quantity: (5) Structures Location: Central locations throughout association Evaluation: The mailbox structures are upright and intact. As repainting and repairs appear to have been executed in recent years, the useful life has been extended. No signs of any instability, but moderate aging and wear are apparent. Overall fair condition. 20 years 3 years Best Case: $ 5,050 Lower estimate to replace Worst Case: $ 7,580 Association Reserves, 99999999-0 27

Comp #: 403 Mailboxes - Replace (New) Quantity: (2) Kiosks Location: Central locations throughout association New in 16/17 Evaluation: The mailboxes are intact and functional. Moderate wear and scuffing noted, but no signs of any corrosion or vandalism. The association should plan to replace alongside the mailbox structures to ensure continued full functionality and attractive appearance. 15 years 14 years Best Case: $ 2,600 Lower estimate to replace Worst Case: $ 3,200 Comp #: 403 Mailboxes - Replace (Old) Quantity: (3) Kiosks Location: Central locations throughout association Evaluation: The older mailbox clusters are showing significant aging and weathering. Based on recent need to replace other kiosks, expect the need to replace these older kiosks in the near future as well. 15 years 0 years Best Case: $ 3,900 Lower estimate to replace Worst Case: $ 4,800 Association Reserves, 99999999-0 28

Comp #: 404 Pool Furniture - Partial Replace Quantity: (26) Assorted Pieces Location: Pool deck Evaluation: Comprised of (7) lounges, (12) chairs, (3) tables, and (4) umbrellas. The furniture varies in age and condition but is serviceable and primarily in fair condition. No signs of any tears or warping. Expect a full useful life. 6 years 2 years Best Case: $ 4,000 Lower allowance for partial replacement Worst Case: $ 5,000 Higher allowance Comp #: 411 Drinking Fountain - Replace Quantity: (1) Wall Mounted Unit Location: Pool building wall Evaluation: Observed to be functional, but weathered and aged in appearance. Not a critical asset to proactively replace, but based on age and condition, replacement would enhance the unit. 20 years 0 years Best Case: $ 1,000 Lower estimate to replace Worst Case: $ 1,400 Association Reserves, 99999999-0 29

Comp #: 503 Metal Fence/Rail - Partial Replace Quantity: Approx. 1/3 of 290 LF Location: Pool perimeter Evaluation: All stair railings were replaced with vinyl, now only pool fencing remains metal. The fencing is primarily intact and stable. Areas of rusting noted, but no signs of any warped or missing sections. Regular repainting projects will help extend the metal surfaces' useful life (refer to #1107). If repainting is deferred, this project may be need to be executed sooner than expected. 15 years 5 years Best Case: $ 4,000 Worst Case: $ 5,000 Lower estimate to replace 1/3 Comp #: 504 Stair Railings - Replace Quantity: Approx. 130 LF Location: Stairway railings throughout community Replaced metal and wood railings with vinyl in 2015 Evaluation: Railings were observed to be in fair condition. 35 years 33 years Best Case: $ 5,050 Lower estimate to replace Worst Case: $ 6,060 Cost Source: Client Cost History Association Reserves, 99999999-0 30

Comp #: 708 Wood Gates - Replace Quantity: Approx. 30 LF Location: Storage area enclosures Evaluation: The wood enclosures have been repainted and repaired in recent years, but the gates themselves remain older and worn. All gates remain serviceable, but the association should plan to completely replace during the next wood paint cycle to ensure continued full functionality. 15 years 0 years Best Case: $ 2,020 Lower estimate to replace Worst Case: $ 2,830 Comp #: 803 Water Heater/Tank - Replace Quantity: (1) Reliance 30 Gal Location: Pool building, adjacent to pool equipment Evaluation: The heater has reached the end of its useful life and rust is apparent. Evidence of previous leaking apparent as well. Plan to replace in the immediate future to prevent any further water leakage. Model #: 5-30-NORT6-CF, Serial #: L92304075 15 years 0 years Best Case: $ 1,110 Lower estimate to replace Worst Case: $ 1,520 Association Reserves, 99999999-0 31

Comp #: 909 Bathroom - Refurbish Quantity: (2) 80 GSF Rooms Location: Pool building Evaluation: The bathrooms are visibly aged. Normal operations observed, but the interior surfaces and fixtures have an overall worn appearance. Plan to refurbish in the near future to restore bright, clean conditions. 15 years 0 years Best Case: $ 4,040 Lower estimate to refurbish Worst Case: $ 6,060 Cost Source: ARI Cost Database Comp #: 1001 Backflow Devices - Replace Quantity: (5) Backflows Location: Throughout community Evaluation: The backflows were not tested during inspection. Best to have the device inspected and maintained on a regular basis by a certified plumbing vendor. These devices prevent harmful chemicals from backwashing into your drinking water supply. Reserve funding for the eventual replacement of the backflows. 15 years 3 years Best Case: $ 8,500 Lower estimate to repalce Worst Case: $ 12,500 Association Reserves, 99999999-0 32

Comp #: 1003 Irrigation Controllers - Replace Quantity: (5) 18-24 Station Units Location: Throughout common area ALL replaced 1/15 Evaluation: No access to closely inspect but reported to be in good working order 12 years 9 years Best Case: $ 5,000 Lower estimate to replace Worst Case: $ 7,500 Comp #: 1004 Irrigation Enclosures - Replace Quantity: (4) Steel enclosures Location: Throughout community Evaluation: All four remaining steel enclosures are heavily aged, rusted exhibit metal wear-through, etc. Should be replaced as soon as possible. Reserve funding reflects cost of replacement with lower maintenance and higher quality stainless steel. 28 years 0 years Best Case: $ 6,000 Lower estimate to replace Worst Case: $ 8,000 Association Reserves, 99999999-0 33

Comp #: 1004 Stainless Enclosures - Replace Quantity: (1) Stainless enclosure Location: Throughout community New in FY 14-15 Evaluation: Enclosure is in good condition. No rusting or vandalism noted. 28 years 25 years Best Case: $ 1,500 Lower estimate to replace Worst Case: $ 2,000 Comp #: 1107 Metal Fence/Rail - Repaint Quantity: Approx. 290 LF Location: Pool perimeter Evaluation: The metal surfaces are in fair condition overall, but areas of rusting are beginning to develop. The association may need to repaint before a full useful life is reached to prevent any further corrosion. Regular paint cycles will help protect the ironwork from damaging weather and irrigation elements while maintaining an attractive appearance. 5 years 0 years Best Case: $ 3,200 Lower estimate to repaint Worst Case: $ 4,000 Association Reserves, 99999999-0 34

Comp #: 1115 Stucco - Repaint Quantity: Approx. 84100 GSF Location: Building exterior surfaces Evaluation: Stucco is in fair condition. It is important to note that when trying to span 15 years between stucco paint cycles that power washing the stucco every 5 years should be done to maintain the aesthetic quality of the clean paint. Failing to do so will leave walls dingy and discolored effecting curb appeal across the community. 15 years 10 years Best Case: $ 84,100 Lower estimate to repaint Worst Case: $ 126,000 Comp #: 1116 Wood Surfaces - Repaint Quantity: Approx. 25300 GSF Location: Building exterior surfaces Evaluation: The wood surfaces are in fair condition. No signs of extensive cracking or peeling. No dry-rot observed. Regular paint cycles will help protect the wood surfaces from damaging weather elements that cause dry-rotting and warping. In order to accomplish this, repainting must occur before surfaces appear to need repainting. 5 years 0 years Best Case: $ 38,000 Lower estimate to repaint Worst Case: $ 50,600 Association Reserves, 99999999-0 35

Comp #: 1201 Pool Deck - Replace Quantity: Approx. 2200 GSF Location: Pool/spa area Evaluation: The association has a history of periodic partial repairs to the pool deck though it was reported that sealing the deck may have never taken place historically. This could be responsible for the historic, ongoing damage that occurs. At this point widespread cracking and slab problems are occurring and the association is faced with potentially fully replacing the pool deck. Funding provided for this long-term intermittent project. Future plans to treat or seal a new surface will be added pending the surface type elected. 45 years 0 years Best Case: $ 26,000 Lower estimate to seal/repair Worst Case: $ 33,000 Comp #: 1202 Pool - Resurface Quantity: (1) 132 LF Pool Location: Center of property Evaluation: The pool is serviceable and aging normally. Slight discoloration observed but no staining or chipping observed. The pool surfaces are smooth and in fair condition. 12 years 6 years Best Case: $ 14,100 Lower estimate to resurface Worst Case: $ 16,700 Cost Source: Client Cost History Plus Inflation Association Reserves, 99999999-0 36

Comp #: 1203 Spa - Resurface Quantity: (1) 8' Diameter Spa Location: Center of property Evaluation: The spa appears to be aging normally. No signs of any heavy fading or grime build up. Spa surfaces typically experience shorter useful lives than pool surfaces due to higher temperature and chemical balances. 6 years 0 years Best Case: $ 3,540 Lower estimate to resurface Worst Case: $ 4,340 Cost Source: Client Cost History Plus Inflation Comp #: 1207 Pool Filter - Replace Quantity: (1) Purex 58 GSF Location: Interior closet of pool building Evaluation: Pool filter exhibits build-up, evidence of leakage and other advance use signs. Be prepared to replace in the near future. 12 years 3 years Best Case: $ 1,110 Lower estimate to replace Worst Case: $ 1,310 Association Reserves, 99999999-0 37

Comp #: 1207 Spa Filter - Replace Quantity: (1) Pentair 48 GSF Location: Interior closet of pool building Evaluation: The filter appears to be functional and aging normally. No signs of active leakage. No reported problems. Fair condition. Model #: FLT-SMBW-4048, Serial #: 0146243110056A 12 years 6 years Best Case: $ 1,010 Lower estimate to replace Worst Case: $ 1,210 Comp #: 1208 Pool Heater - Replace Quantity: (1) Pentair 400K BTU Location: Interior closet of pool building Evaluation: The heater is reported to be functional and in fair condition. No reported problems. No signs of corrosion. Moderate exterior wear noted. Model #: HTR-400NA ASME, Serial #: 11182011100113 10 years 4 years Best Case: $ 3,540 Lower estimate to replace Worst Case: $ 4,320 Association Reserves, 99999999-0 38

Comp #: 1208 Spa Heater - Replace Quantity: (1) Mighty Max Unit Location: Interior closet of pool building Evaluation: Heater appears to be in good condition with no signs of problems or damage. If well maintained, expect full useful life. 10 years 7 years Best Case: $ 3,200 Lower estimate to replace Worst Case: $ 4,400 Comp #: 1210 Pool/Spa Pumps - Partial Replace Quantity: (3) Assorted Units Location: Interior closet of pool building Evaluation: The pool and spa pumps vary in condition and age. No reported problems. There is no expectation to replace all pumps at the same time. Funding for partial replacements. 4 years 0 years Best Case: $ 808 Lower estimate to replace (1) pump Worst Case: $ 1,210 Association Reserves, 99999999-0 39

Comp #: 1215 Pool Shower - Refurbish Quantity: (1) Shower Location: Pool area Evaluation: The pool shower is functional but aged with a large area of discoloration. The association appears to be repairing and replacing the fixtures as needed as an Operating expense, but funding is provided for periodic tile refurbishment and pipe maintenance. 15 years 0 years Best Case: $ 1,010 Lower estimate to refurbish Worst Case: $ 1,520 Comp #: 1304 Pool Roof - Replace Underlayment Quantity: Approx. 800 GSF Location: Adjacent to pool Evaluation: The tiles are intact and properly aligned, but based on the age of the roof, the underlayment will likely need to be replaced in the near future. Plan to follow a certified vendor recommended maintenance and replacement plan. A typical project involves removing and stacking existing tiles, replacing all underlayment material, and then re-laying tile. An allowance for some tile breakage is included in these costs. 30 years 0 years Best Case: $ 4,040 Lower estimate to replace underlayment Worst Case: $ 5,000 Association Reserves, 99999999-0 40