Reserve Study Transmittal Letter

Reserve Study Transmittal Letter Date: January 18, 2012 To: Michael Lee, Collins Management Co. From: Richard Avelar & Associates (RA&A) Re: Bridgewater Condominium Association Attached, please find the reserve study for the association. To assist in your understanding of the study, and to highlight key information you may need quickly, we have listed below some of the important information contained in the study. At RA&A our goal is to bring clarity from complexity, so should you have any questions, please do not hesitate to contact us anytime. 1. Where do I find the recommended reserve contribution for next year's budget? This is found in Section III, 30 Year Reserve Funding Plan, Cash Flow Method. $140,567 is the annual amount. Directly under the annual amount is the amount per ownership interest, per month, or other period, as applicable. $113.73 /Unit/month @ 103. For any other funding related issues, if any, see Section III, 30 Year Reserve Funding Plan, Cash Flow Method. 2. Where do I find the status of the reserve fund, based on the Percent Funded calculation? This is found for the 30-year term of the study in Section IV, 30 Year Reserve Funding Plan, Including Fully Funded Balance and % Funded. For the year for which the study was prepared, 2012, the association is 46.5% funded. Based on the 30 year cash flow projection, the Association's reserves appear adequately funded as the reserve fund ending balances remain positive throughout the replacement of all major components during the next 30 years. California statute imposes no reserve funding level requirements nor does it address funding level adequacy, and although one or more of the reserve fund percentages expressed in this report may be less than one hundred percent, those percentages do not necessarily indicate that the Association's reserves are inadequately funded. 3. Where do I find the assumptions for interest and inflation factors? While this information is in various places in the study, it can always be found in Section III, 30 Year Reserve Funding Plan, Cash Flow Method. For this study the assumption is 2.5% for the interest rate and 2.5% for the inflation factor. Please be advised these rates estimate the values that will stand the test of time over the 30-year term of the study, not simply only next year. 12usv4.4.57: 318 Harrison St., #103 / Oakland, CA 94607 Office (510) 893-5501 Fax (510) 893-5874 Thess@Ravelar / www.ravelar.com

- 1720 January 18, 2012 - Reserve Study Page Two 4. What pages from the reserve study get mailed to the members (homeowners)? Please see the last section of the reserve study, "Member Distribution Materials." These are the last six pages (or more) of the study which can be removed, and copied, for distribution to the membership with the budget packet. This packet includes all state mandated disclosures related to the reserves and the reserve study. New for 2011, this section of the study is a standalone packet with it's own cover and table of contents. 5. What are the next steps? This study meets the CA Civil Code Requirements for a site visit study every three years. The next site visit study will be due in three years. For the intervening two years, RA&A proposes doing an Update Without Site Visit Study during the next two years at a nominal cost which will include the preparation of a reserve study and required disclosures including the California Assessment and Reserve Funding Disclosure, which under law, must be presented to the association members each year. Please read the two helpful sections entitled Glossary and Notes to the Auditor. The glossary explains common reserve study terms as well as RA&A specific terminology. The Notes to the Auditor while intended to assist the auditor, has useful information for the casual reader on how year zero, (2011) the current fiscal year is dealt with in the study. Thank you for the opportunity to work with the Bridgewater Condominium Association on this study. 12usv4.4.57:

RESERVE STUDY Update w/ Site Visit Review Bridgewater Condominium Association Published - January 18, 2012 Richard Avelar & Associates 318 Harrison St., #103 / Oakland, CA 94607 Office (510) 893-5501 Fax (510) 893-5874 Thess@Ravelar / www.ravelar.com Richard Avelar & Associates 2012 1720 1/18/2012 12usv4.4.57:*.*

Bridgewater Condominium Association Table of Contents Section Report Page Section I: of Association Reserves 1 Section II: 30 Year Expense Forecast Detailed 5 Section III: 30 Year Reserve Funding Plan Cash Flow Method {c} 18 Section III-a: 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances Chart 19 Section IV: 30 Year Reserve Funding Plan Fully Funded Balance and % Funded 20 Section IV-a: 30 Year Reserve Funding Plan Cash Flow Method - Percent Funded Chart 21 Section V: Reserve Fund Balance Forecast Component Method 22 Section VI: Component Listing Included Components 29 Section VII: Tabular Component Listing Included Components 60 Section VII-a: Expenditures by Year - Next 3 Years 66 Section X: Auditor Notes 69 Section X-a: Supplementary Information for Auditor Component Method Section XI: Glossary Reserve Study Terms 75 Addendum: Homeowner Distribution Materials See Page ii for Details 71 1720 1/18/2012 12usv4.4.57:*.* Richard Avelar & Associates 2012 TOC - i

Bridgewater Condominium Association Homeowner Distribution Materials Section The following Reserve Study sections should be provided to each Homeowner. Report California: Homeowner Assessment and Reserve Funding Disclosure Section III: 30 Year Reserve Funding Plan [Civil Code 1365.2.5.4(b)] Cash Flow Method {c} 1720 1/18/2012 12usv4.4.57:*.* Richard Avelar & Associates 2012 TOC - ii

Section I Update w/ Site Visit Review Bridgewater Condominium Association Published - January 18, 2012 Reserve Study A Reserve Study was conducted of Bridgewater Condominium Association (the "Association"). An Update With Site-Visit Review is a reserve study update in which the following tasks are performed: development of a reserve component inventory (verification only, not quantification); condition assessment based upon on-site visual observation; life and valuation estimates; fund status; and a funding plan. Bridgewater Condominium Association is a Condominium with a total of 103 Units. Physical Inspection Richard Avelar & Associates ("RA&A") conducted a physical inspection of the Association. The inspection encompassed those major components that the Association is required to maintain. For this study components are determined to be major components if: 1. As of the date of the study, they have a remaining useful life of less than 30 years, and a value greater than $1,000. 2. Such additional components, if any, determined by the Board of Directors. During the inspection, RA&A utilized the services of our own construction cost estimator. In addition, independent contractors were retained to render opinions on selected components as indicated in Section VI, Included Component Listing. Supplemental information to the physical inspection may have been obtained from the following sources: 1. Project plans where available. 2. Maintenance records of the reserve components where available. 3. Association board members, management and staff. of Reserves For the first year of the Reserve Study, the reserve contribution is based upon the existing budget unless otherwise noted in Section III, Reserve Funding Plan. In addition RA&A relied on the Association to provide an accurate Beginning Reserve Balance. 1720 1/18/2012 12usv4.4.57:*.* Richard Avelar & Associates 2012 318 Harrison St., #103 / Oakland, CA 94607 Office (510) 893-5501 Fax (510) 893-5874 Thess@Ravelar / www.ravelar.com

Reserve Study - Update w/ Site Visit Review Bridgewater Condominium Association 2 The status of the Association's reserves, as reflected in the following Reserve Study, is as follows: 1. The Expenditure Forecast of the following Reserve Study identifies the major components which the Association is obligated to repair, replace, restore or maintain, as determined in accordance with the criteria specified above, and specifies for each such component: a. Its current estimated replacement cost; b. Its estimated useful life; and c. Its estimated remaining useful life. 2. It is estimated that the total cash reserves necessary to repair, replace, restore or maintain such major components (in the aggregate) during and at the end of their first remaining useful life is $1,385,823. [For purposes of this calculation, necessary is defined as the Fully Funded Balance (FFB) (Component Current Cost X Effective Age / Useful, including a provision for interest and inflation in future years.)] 3. The current amount of accumulated cash reserves actually set aside to repair, replace, restore, or maintain such major components as of the fiscal year ending December 31, 2012 is estimated to be $644,408, constituting 46.5% of the total expenditures anticipated for all such major components through their first end of useful life replacement. 4. Based upon the schedule of annual reserve contributions necessary to defray the cost of repairing, replacing, restoring or maintaining such major components in the years such expenditures are estimated to be required, it is estimated that annual reserve contributions in the initial amount of $140,567 [$113.73 per Unit per month (average)] for the fiscal year ending December 31, 2012 (the first full fiscal year following first distribution of this report) will be necessary in order to meet all such reserve expenditures when they are projected to come due. Funding Assessment Based on the 30 year cash flow projection, the Association's reserves appear adequately funded as the reserve fund ending balances remain positive throughout the replacement of all major components during the next 30 years. California statute imposes no reserve funding level requirements nor does it address funding level adequacy, and although one or more of the reserve fund percentages expressed in this report may be less than one hundred percent, those percentages do not necessarily indicate that the Association's reserves are inadequately funded. Percent Funded Status Based on paragraphs 1-3 above, the Association is 46.5% funded. The following scale can be used as a measure to determine the association s financial picture whereas the lower the percentage, the higher the likelihood of the Association requiring a special assessment, or other large increases to the reserve contribution in the future. Percent Funded --------------- Poor --------------- 30% -------------------- Fair --------------------- 70% ----------- Strong ------------ 100%

Reserve Study - Update w/ Site Visit Review Bridgewater Condominium Association 3 Methodology The above recommended reserve contribution for the next fiscal year (and future fiscal years as outlined in Section III, Reserve Fund Balance Forecast) was developed using the cash flow method. This is a method of developing a reserve funding plan where the contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved. Funding Goals The funding goal employed for Bridgewater Condominium Association is Threshold Funding: Establishing a Reserve funding goal of keeping the Reserve balance above a specified dollar or Percent Funded amount. Depending on the threshold, this may be more or less conservative than Fully Funding. Limitations The intention of the Reserve Study is to forecast the Association's ability to repair or replace major components as they wear out in future years. The Reserve Study is not an engineering report, and no destructive testing was performed. The costs outlined in the study are for budgetary and planning purposes only, and actual bid costs would depend upon the defined scope of work at the time repairs are made. Also, any latent defects are excluded from this report. Statutory Disclosures Compliance The Reserve Study was conducted pursuant to Sections 1365 and 1365.5(d) of the California Civil Code. Open Meeting California Civil Code Section 1365.5 says (in part): The (Reserve Funding) plan shall be adopted by the board of directors at an open meeting before the membership of the association as described in Section 1363.05. If the board of directors determines that an assessment increase is necessary to fund the reserve funding plan, any increase shall be approved in a separate action of the board that is consistent with the procedure described in Section 1366. General: Supplemental Disclosures RA&A has no other involvement(s) with the Association which could result in actual or perceived conflicts of interest. Personnel Credentials: RA&A is a licensed general building contractor in California, #768851, and the owner, Geoff Haworth, PRA, ICC, holds the Reserve Specialist designation, #46 from the Community Associations Institute.

Reserve Study - Update w/ Site Visit Review Bridgewater Condominium Association 4 Completeness: RA&A has found no material issues which, if not disclosed, would cause a distortion of the Association's situation. Reliance on Client Data: Information provided by the official representative of the Association regarding financial, physical, quantity, or historical issues will be deemed reliable by RA&A. Scope: This Reserve Study is a reflection of information provided to RA&A and assembled for the Association's use, not for the purpose of performing an audit, quality/forensic analysis, health and safety inspection, or background checks of historical records. Reserve Balance: The actual beginning reserve fund balance in this Reserve Study is based upon information provided and was not audited. Reserve Projects: Information provided about reserve projects will be considered reliable. Any on-site inspection should not be considered a project audit, quality inspection, or health and safety review. Component Quantities: The Association warrants the previously developed component quantities are accurate and reliable. Richard Avelar & Associates

Section II Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Current Replacement Useful / Reserve Component Cost Remaining 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 00061 - Restrooms 010 - Refurbish {Clubhouse (Womens)} 4,000 20 4 4,415 011 - Refurbish {2 Pool Area} 8,000 20 4 8,831 011 - Refurbish {Clubhouse (Mens)} 4,000 20 19 Total 00061 - Restrooms 16,000 13,246 00063 - Exterior Planters 012 - Planter (Reline) {11,920 Sq. Ft. Buildings 1 and 2} 014 - Planter (Repair) {11,920 Sq. Ft. Buildings 1 and 2} Total 00063 - Exterior Planters 295,616 292,040 20 19 00106 - Mechanical Equip. - Fire Safety/Alarm System 3,576 10 10 4,578 020 - Five Year Certification {} 1,200 5 5 1,358 1,536 100 - Control Panel {3 Addressable Fire Alarm Control Panel} 2,930 10 1 3,003 3,844 108 - Battery Back-Up {6 Yuasa 12AH} 336 3 0 336 362 390 420 452 110 - Pull Stations {36 All} 3,276 10 0 3,276 4,194 118 - Fire Extinguishers/Cabinets {37 All} 6,309 15 1 6,466 134 - Smoke Alarms {50 Alarm Bells} 6,250 25 10 8,001 138 - Power Supplies {2 Electrical & Fire Cable (bldg's 1 & 3)} 139 - Power Supplies {Electrical & Fire Cable (bldg 2)} 1,800 20 0 1,800 1,200 20 0 1,200 140 - Modules {6 Flow & Tamper} 464 10 0 464 593 141 - Relays {5 Addressable Relay} 735 20 0 735 220 - Smoke Detectors {88 Common Area} 7,216 5 0 7,216 8,164 9,237 226 - Drawings, Engineering, Submittals & Labor {All Buildings} Total 00106 - Mechanical Equip. - Fire Safety/Alarm System 00500 - Window Replacement 190 - Window Replacement Allowance {}[se:10] Total 00500 - Window Replacement 01500 - Siding/Trim (Repair/Replace) 100 - Stucco Siding {96,398 Sq. Ft. Repair Fund (20%)} 27,800 10 0 27,800 35,586 59,515 42,827 9,469 362 9,522 390 420 59,147 3,844 452 250,000 10 1 25,625 26,266 26,922 27,595 28,285 28,992 29,717 30,460 31,222 32,002 32,802 33,622 34,463 35,324 250,000 25,625 26,266 26,922 27,595 28,285 28,992 29,717 30,460 31,222 32,002 32,802 33,622 34,463 35,324 23,136 10 8 28,188 4,578 Richard Avelar & Associates 2012 2011 to 2025 5

Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total 01500 - Siding/Trim (Repair/Replace) 23,136 02000 - Concrete (Partial Replacement) 102 - Courtyards & Garages {1,970 Sq. Ft. (5%)} 2,167 5 2 2,277 2,576 2,914 104 - Culvert {672 Sq. Ft. (5%)} 890 5 2 935 1,058 1,197 106 - Stairs {1,160 Sq. Ft. Front Entry (5%)} 360 - Stamped {1,665 Sq. Ft. Front Entry (5%)} Total 02000 - Concrete (Partial Replacement) 02500 - Landings/Stairs/Railings 000 - Railings (Metal) {3,231 Lin. Ft. All (Partial Replacement) (10%)} Total 02500 - Landings/Stairs/Railings 03000 - Painting/Caulking: Exterior 102 - Wood {1,664 Sq. Ft. Trellis/Arbors/Posts} 1,537 5 2 1,615 1,827 2,067 1,166 5 2 1,225 1,385 1,567 5,760 28,188 6,051 6,847 7,746 9,693 5 3 10,438 11,810 13,362 9,693 10,438 11,810 13,362 1,414 5 3 1,523 1,723 1,950 110 - Stucco {96,398 Sq. Ft. All} 120,498 10 8 146,815 128 - Doors {55 Building 1 & Garages} 4,125 5 3 4,442 5,026 5,686 400 - Fence (Wrought Iron) {10,820 Lin. Ft. All} 406 - Railings (Wrought Iron) {1,741 Lin. Ft. } 410 - Gates (Wrought Iron) {1,242 Lin. Ft. All} 24,345 5 3 26,217 29,662 33,560 1,480 5 3 1,594 1,803 2,040 2,795 5 3 3,009 3,405 3,852 476 - Chimney Caps {29 All} 1,450 10 8 1,767 600 - Retaining Walls {2,537 Lin. Ft. } 2,156 10 8 2,627 991 - Exterior Components {11,920 Sq. Ft. Concrete Planters} 992 - Exterior Components {1,591 Lin. Ft. Parapet caps @ roof} Total 03000 - Painting/Caulking: Exterior 03400 - Door Replacement 190 - Doors {17 Exterior, buildings 1, 2 and 3} 191 - Doors {24 Exterior, Garage Buildings 1 & 2} 10,132 10 8 12,345 1,352 10 8 1,648 169,747 36,785 206,820 47,088 6,035 30 13 8,319 8,520 30 13 11,745 192 - Doors {5 Pool House} 1,775 30 13 2,447 193 - Doors {91 Interior, bldg's 1, 2, 3 & clubhouse} 32,305 30 13 44,533 194 - Doors {9 Roof Access} 7,425 30 13 10,235 195 - Doors {7 Trash, Bldg 1 & 2} 1,750 20 13 2,412 196 - Doors {14 Exterior Glass (all)} 11,550 30 13 15,922 Total 03400 - Door Replacement 69,360 95,614 Richard Avelar & Associates 2012 2011 to 2025 6

Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 03500 - Painting: Interior 102 - Corridors {76,854 Sq. Ft. Hallways - All} 73,011 7 2 76,707 91,181 110 - Service Rooms {Utility Rooms} 5,000 7 2 5,253 6,244 112 - Stairwells {38,344 Sq. Ft. All} 36,427 7 2 38,271 45,492 122 - Doors {59 Common Area} 4,720 5 2 4,959 5,611 6,348 124 - Fitness Room {1,214 Sq. Ft. } 1,214 7 2 1,275 1,516 300 - Clubhouse {2,584 Sq. Ft. } 2,584 7 2 2,715 3,227 400 - Restrooms {1,392 Sq. Ft. Poolhouse & clubhouse} 1,322 7 2 1,389 1,651 404 - Garage (Interior) {7,605 Sq. Ft. Walls} 7,225 7 6 8,378 9,959 Total 03500 - Painting: Interior 131,503 130,570 8,378 5,611 149,312 6,348 9,959 04000 - Structural Repairs 960 - Awnings {All} 12,000 25 24 996 - Miscellaneous {Lower Plaza Areas} 358,946 50 8 437,341 Total 04000 - Structural Repairs 370,946 437,341 05000 - Roofing 330 - Low Slope: Single Ply {52,030 Sq. Ft. Replace, All Buildings} 702 - Downspouts {1,738 Lin. Ft. All} 15,294 25 24 802 - Chimney Caps {29 All} 5,655 25 19 900 - Roofing: Inspections & Repairs {All Buildings} Total 05000 - Roofing 439,689 08000 - Re-Model / Upgrade 416,240 15 9 519,827 2,500 1 0 2,500 2,563 2,627 2,692 2,760 2,829 2,899 2,972 3,046 3,122 3,200 3,280 3,362 3,446 3,532 2,500 2,563 2,627 2,692 2,760 2,829 2,899 2,972 3,046 522,949 3,200 3,280 3,362 3,446 3,532 240 - Clubhouse {repair fund} 2,000 7 2 2,101 2,498 Total 08000 - Re-Model / Upgrade 2,000 2,101 2,498 11000 - Gate Equipment / Entry System 050 - Operators {2 Garage Bldg 1} 8,344 10 2 8,766 11,221 051 - Operators {Garage Bldg 2} 4,172 10 9 5,210 052 - Operators {Main Entry Gate} 4,172 10 10 5,340 053 - Operators {Main Exit Gate} 4,172 10 2 4,383 5,611 104 - Pavement Sensors {4 Main Gate} 3,960 20 3 4,264 286 - Swing Gate {2 Main} 5,000 30 2 5,253 290 - Gate Arm Control Assembly {2 Swing Arm, Main Gate} 622 - Keyless Entry System {Common Area Doors} 6,600 20 3 7,107 35,000 20 19 624 - Entry Access System {Dial Up, Bldg 1} 5,004 20 18 625 - Entry Access System {Dial Up, Bldg 2} 5,004 20 1 5,129 626 - Entry Access System {Dial Up, Main Gate} 5,004 20 3 5,389 Richard Avelar & Associates 2012 2011 to 2025 7

Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 780 - Pedestrian Gate {6 All} 3,300 30 5 3,734 782 - Auto Gate {Garage Bldg 2} 1,500 30 5 1,697 783 - Auto Gate {Garage Bldg 1 (main gate)} 784 - Auto Gate {Garage Bldg 1 (secondary gate)} 1,500 30 0 1,500 1,500 30 0 1,500 990 - Miscellaneous {4 Receivers} 2,420 20 3 2,606 Total 11000 - Gate Equipment / Entry System 96,651 3,000 5,129 18,402 19,367 5,431 5,210 5,340 16,832 12000 - Pool 100 - Re-plaster {} 8,600 12 10 11,009 204 - Coping {pool deck} 1,200 3 0 1,200 1,292 1,392 1,499 1,614 702 - Filter {} 900 10 1 923 1,181 704 - Chlorinator {} 450 7 0 450 535 636 706 - Pumps {} 600 7 2 630 749 720 - Heater {} 2,500 10 0 2,500 3,200 Total 12000 - Pool 14,250 4,150 923 630 1,292 1,392 535 2,248 14,209 1,181 1,614 636 13000 - Spa 100 - Re-Plaster {} 1,200 12 10 1,536 702 - Filter {} 600 10 8 731 704 - Chlorinator {} 450 7 0 450 535 636 706 - Pumps {2 } 1,000 7 3 1,077 1,280 780 - Heater {} 2,000 10 1 2,050 2,624 Total 13000 - Spa 5,250 450 2,050 1,077 535 731 2,816 2,624 636 14000 - Recreation / Fitness Equipment 100 - Sauna: Heaters {Mechanical} 2,750 20 3 2,961 140 - Sauna: Wood Replacement Fund {376 Sq. Ft. Cedar} 10,340 25 3 11,135 200 - Treadmill {} 4,000 10 4 4,415 5,652 210 - Stationary Bike {Upright} 2,000 12 1 2,050 2,757 211 - Stationary Bike {Sit Down} 2,000 12 5 2,263 215 - Stair Master {Elliptical} 4,500 12 4 4,967 216 - Bar Bells {} 750 20 12 1,009 218 - Drinking Fountain {} 1,616 15 0 1,616 220 - Mirrors {7 } 1,925 30 8 2,345 220 - Weight Machine (Universal) {Universal Gym} 4,000 20 12 5,380 222 - Scale {} 220 12 4 243 224 - Work Out Bench {} 220 12 4 243 Total 14000 - Recreation / Fitness Equipment 34,321 1,616 2,050 14,096 9,868 2,263 2,345 6,388 2,757 5,652 Richard Avelar & Associates 2012 2011 to 2025 8

Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 18000 - Landscaping 104 - Irrigation: Controllers {3 } 2,250 15 0 2,250 200 - Irrigation: Valves {24 } 5,280 12 1 5,412 7,279 300 - Irrigation: Backflow Preventors {2 } 1,700 20 1 1,743 Total 18000 - Landscaping 9,230 2,250 7,155 7,279 19000 - Fencing (Repair/Replace) 100 - Chain Link: 4' {188 Lin. Ft. Bldg 3} 2,068 40 13 2,851 110 - Chain Link: 6' {500 Lin. Ft. Bldg 3} 6,000 40 13 8,271 200 - Wrought Iron {164 Lin. Ft. Pool Fence (25%)} 1,845 5 3 1,987 2,248 2,543 201 - Wrought Iron {40 Lin. Ft. Front Entry} 1,800 30 4 1,987 202 - Wrought Iron {598 Lin. Ft. Garages (25%)} 20000 - Lighting Total 19000 - Fencing (Repair/Replace) 100 - Exterior: Misc. Fixtures {4 Pole Lights 5'} 101 - Exterior: Misc. Fixtures {20 Pole Lights 8'} 102 - Exterior: Misc. Fixtures {26 Wall Mounted Lights} 103 - Exterior: Misc. Fixtures {206 Fluorescent Lights} 104 - Exterior: Misc. Fixtures {31 Landscape Lights} 400 - Interior Lights {190 Fluorescent Lights} 6,728 5 3 7,245 8,197 9,274 18,441 1,000 20 19 11,000 20 19 5,850 20 19 36,050 20 19 5,425 20 5 6,138 29,450 20 4 32,507 401 - Interior Lights {99 Emergency Lights} 24,750 20 4 27,319 402 - Interior Lights {78 Exit Lights} 14,430 20 4 15,928 403 - Interior Lights {5 Recessed Lights} 650 20 4 717 404 - Interior Lights {48 Surface Lights} 6,240 20 4 6,888 405 - Interior Lights {4 Spot Lights} 520 20 4 574 9,232 1,987 10,445 22,939 Total 20000 - Lighting 135,365 83,934 6,138 21000 - Signage 100 - Miscellaneous {23 Directional & Warning} Total 21000 - Signage 1,265 23000 - Misc. Mechanical Equipment 1,265 20 6 1,467 600 - Water Heater {Pool Area} 800 12 1 820 1,103 1,467 Total 23000 - Misc. Mechanical Equipment 800 820 1,103 23500 - Elevator 100 - Cab Refurbish / Upgrade {3 All} 33,000 10 3 35,537 45,491 200 - System Modernization {3 All} 165,000 30 13 227,454 Richard Avelar & Associates 2012 2011 to 2025 9

Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 300 - Load Test {All} 2,740 5 4 3,024 3,422 3,872 Total 23500 - Elevator 200,740 35,537 3,024 3,422 272,945 3,872 24000 - Common Area Furnishings / Equipment 100 - Miscellaneous {Clubhouse Furnishings} 13,000 20 1 13,325 914 - Pool/Spa Furnishings {All} 3,000 8 3 3,231 3,936 Total 24000 - Common Area Furnishings / Equipment 16,000 13,325 3,231 3,936 25000 - Flooring 200 - Carpeting {1,120 Sq. Ft. Bridge} 6,440 15 5 7,286 201 - Carpeting {1,370 Sq. Ft. Clubhouse} 7,878 15 5 8,913 202 - Carpeting {494 Sq. Ft. Fitness Room} 2,841 15 5 3,214 203 - Carpeting {3,996 Sq. Ft. Hallways, Bldg 1} 204 - Carpeting {8,280 Sq. Ft. Hallways, Bldg 2} 205 - Carpeting {3,996 Sq. Ft. Hallways, Bldg 3} 206 - Carpeting {376 Sq. Ft. Stairwell Bldg 1} 207 - Carpeting {502 Sq. Ft. Stairwell Bldg 2} 208 - Carpeting {168 Sq. Ft. Storage, Bldg 1} 209 - Carpeting {460 Sq. Ft. Utility Room, Bldg 1} 400 - Tile {524 Sq. Ft. Clubhouse Restrooms} 22,977 15 5 25,996 47,610 15 5 53,866 22,977 15 5 25,996 2,162 15 5 2,446 2,887 15 5 3,266 966 15 5 1,093 2,645 15 5 2,993 6,917 40 13 9,535 600 - Vinyl {84 Sq. Ft. Poolhouse Restroom} 370 12 0 370 497 601 - Vinyl {168 Sq. Ft. Storage, Bldg 2} 739 12 3 796 602 - Vinyl {324 Sq. Ft. Trash Room, bldg 1} 1,426 12 3 1,535 603 - Vinyl {280 Sq. Ft. Trash Room, bldg 2} 1,232 12 3 1,327 Total 25000 - Flooring 130,065 370 3,658 135,069 497 9,535 26000 - Outdoor Equipment / Furnishings 308 - Benches {3 Courtyard Building 1} 975 12 7 1,159 320 - Tables {2 Courtyard Bldg 2} 590 12 7 701 330 - Chairs {10 Courtyard Buildings 1 & 2} 2,000 12 7 2,377 785 - Umbrellas {2 Courtyard Bldg. 2} 350 12 7 416 Total 26000 - Outdoor Equipment / Furnishings 3,915 4,654 30000 - Miscellaneous 200 - Trellis {832 Lin. Ft. Trellis/Arbor (15%)} 218 - Mailboxes {All} 20,000 60 60 3,120 5 3 3,360 3,801 4,301 Total 30000 - Miscellaneous 23,120 3,360 3,801 4,301 Richard Avelar & Associates 2012 2011 to 2025 10

Current Replacement Useful / Bridgewater Condominium Association 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Expenditures Inflated @ 2.50% 57,162 69,108 186,647 168,050 142,414 189,536 43,518 50,870 734,988 717,280 121,292 47,667 76,861 524,791 49,652 Total Current Replacement Cost 2,532,377 Richard Avelar & Associates 2012 2011 to 2025 11

30 Year Expense Forecast - Detailed Reserve Component 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 00061 - Restrooms 010 - Refurbish {Clubhouse (Womens)} 7,235 011 - Refurbish {2 Pool Area} 14,470 011 - Refurbish {Clubhouse (Mens)} 6,395 Total 00061 - Restrooms 00063 - Exterior Planters 012 - Planter (Reline) {11,920 Sq. Ft. Buildings 1 and 2} 014 - Planter (Repair) {11,920 Sq. Ft. Buildings 1 and 2} Total 00063 - Exterior Planters 6,395 21,705 466,870 5,860 466,870 5,860 00106 - Mechanical Equip. - Fire Safety/Alarm System 020 - Five Year Certification {} 1,738 1,966 2,225 100 - Control Panel {3 Addressable Fire Alarm Control Panel} 108 - Battery Back-Up {6 Yuasa 12AH} 487 524 564 608 654 110 - Pull Stations {36 All} 5,368 118 - Fire Extinguishers/Cabinets {37 All} 9,365 134 - Smoke Alarms {50 Alarm Bells} 138 - Power Supplies {2 Electrical & Fire Cable (bldg's 1 & 3)} 139 - Power Supplies {Electrical & Fire Cable (bldg 2)} 140 - Modules {6 Flow & Tamper} 759 141 - Relays {5 Addressable Relay} 1,204 220 - Smoke Detectors {88 Common Area} 10,451 11,824 13,378 226 - Drawings, Engineering, Submittals & Labor {All Buildings} Total 00106 - Mechanical Equip. - Fire Safety/Alarm System 00500 - Window Replacement 190 - Window Replacement Allowance {}[se:10] Total 00500 - Window Replacement 01500 - Siding/Trim (Repair/Replace) 100 - Stucco Siding {96,398 Sq. Ft. Repair Fund (20%)} Total 01500 - Siding/Trim (Repair/Replace) 02000 - Concrete (Partial Replacement) 102 - Courtyards & Garages {1,970 Sq. Ft. (5%)} 2,950 1,966 45,554 4,920 12,676 9,365 524 71,592 5,485 608 15,603 654 36,207 37,113 38,040 38,991 39,966 40,965 41,990 43,039 44,115 45,218 46,349 47,507 48,695 49,912 51,160 36,207 37,113 38,040 38,991 39,966 40,965 41,990 43,039 44,115 45,218 46,349 47,507 48,695 49,912 51,160 36,084 46,190 36,084 46,190 3,297 3,731 4,221 104 - Culvert {672 Sq. Ft. (5%)} 1,355 1,533 1,734 106 - Stairs {1,160 Sq. Ft. Front Entry (5%)} 2,339 2,646 2,994 Richard Avelar & Associates 2012 2026 to 2040 12

30 Year Expense Forecast - Detailed Reserve Component 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 360 - Stamped {1,665 Sq. Ft. Front Entry (5%)} Total 02000 - Concrete (Partial Replacement) 02500 - Landings/Stairs/Railings 000 - Railings (Metal) {3,231 Lin. Ft. All (Partial Replacement) (10%)} Total 02500 - Landings/Stairs/Railings 03000 - Painting/Caulking: Exterior 102 - Wood {1,664 Sq. Ft. Trellis/Arbors/Posts} 1,773 2,006 2,270 8,764 9,916 11,219 15,118 17,104 19,352 15,118 17,104 19,352 2,206 2,496 2,824 110 - Stucco {96,398 Sq. Ft. All} 187,935 240,573 128 - Doors {55 Building 1 & Garages} 6,434 7,279 8,236 400 - Fence (Wrought Iron) {10,820 Lin. Ft. All} 406 - Railings (Wrought Iron) {1,741 Lin. Ft. } 410 - Gates (Wrought Iron) {1,242 Lin. Ft. All} 37,970 42,959 48,605 2,308 2,611 2,955 4,358 4,931 5,579 476 - Chimney Caps {29 All} 2,262 2,895 600 - Retaining Walls {2,537 Lin. Ft. } 3,363 4,305 991 - Exterior Components {11,920 Sq. Ft. Concrete Planters} 992 - Exterior Components {1,591 Lin. Ft. Parapet caps @ roof} Total 03000 - Painting/Caulking: Exterior 03400 - Door Replacement 190 - Doors {17 Exterior, buildings 1, 2 and 3} 191 - Doors {24 Exterior, Garage Buildings 1 & 2} 192 - Doors {5 Pool House} 15,802 20,228 2,109 2,700 264,747 60,277 338,899 193 - Doors {91 Interior, bldg's 1, 2, 3 & clubhouse} 194 - Doors {9 Roof Access} 195 - Doors {7 Trash, Bldg 1 & 2} 196 - Doors {14 Exterior Glass (all)} Total 03400 - Door Replacement 03500 - Painting: Interior 102 - Corridors {76,854 Sq. Ft. Hallways - All} 108,386 128,837 110 - Service Rooms {Utility Rooms} 7,423 8,823 112 - Stairwells {38,344 Sq. Ft. All} 54,076 64,279 122 - Doors {59 Common Area} 7,182 8,126 9,194 124 - Fitness Room {1,214 Sq. Ft. } 1,802 2,142 Richard Avelar & Associates 2012 2026 to 2040 13

30 Year Expense Forecast - Detailed Reserve Component 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 300 - Clubhouse {2,584 Sq. Ft. } 3,836 4,560 400 - Restrooms {1,392 Sq. Ft. Poolhouse & clubhouse} 1,963 2,334 404 - Garage (Interior) {7,605 Sq. Ft. Walls} 11,839 14,072 Total 03500 - Painting: Interior 177,485 7,182 11,839 8,126 210,974 23,266 04000 - Structural Repairs 960 - Awnings {All} 21,705 996 - Miscellaneous {Lower Plaza Areas} Total 04000 - Structural Repairs 21,705 05000 - Roofing 330 - Low Slope: Single Ply {52,030 Sq. Ft. Replace, All Buildings} 702 - Downspouts {1,738 Lin. Ft. All} 27,663 802 - Chimney Caps {29 All} 9,040 752,864 900 - Roofing: Inspections & Repairs {All Buildings} Total 05000 - Roofing 3,621 3,711 3,804 3,899 3,997 4,097 4,199 4,304 4,412 4,522 4,635 4,751 4,870 4,991 5,116 3,621 3,711 3,804 3,899 13,037 4,097 4,199 4,304 4,412 785,049 4,635 4,751 4,870 4,991 5,116 08000 - Re-Model / Upgrade 240 - Clubhouse {repair fund} 2,969 3,529 Total 08000 - Re-Model / Upgrade 2,969 3,529 11000 - Gate Equipment / Entry System 050 - Operators {2 Garage Bldg 1} 14,364 051 - Operators {Garage Bldg 2} 6,669 8,537 052 - Operators {Main Entry Gate} 6,836 053 - Operators {Main Exit Gate} 7,182 104 - Pavement Sensors {4 Main Gate} 6,988 286 - Swing Gate {2 Main} 290 - Gate Arm Control Assembly {2 Swing Arm, Main Gate} 622 - Keyless Entry System {Common Area Doors} 624 - Entry Access System {Dial Up, Bldg 1} 7,805 55,953 11,646 625 - Entry Access System {Dial Up, Bldg 2} 8,405 626 - Entry Access System {Dial Up, Main Gate} 780 - Pedestrian Gate {6 All} 8,830 782 - Auto Gate {Garage Bldg 2} 783 - Auto Gate {Garage Bldg 1 (main gate)} 784 - Auto Gate {Garage Bldg 1 (secondary gate)} 990 - Miscellaneous {4 Receivers} 4,270 Richard Avelar & Associates 2012 2026 to 2040 14

30 Year Expense Forecast - Detailed Reserve Component 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total 11000 - Gate Equipment / Entry System 7,805 62,622 6,836 8,405 21,546 31,735 8,537 12000 - Pool 100 - Re-plaster {} 14,806 204 - Coping {pool deck} 1,738 1,872 2,015 2,170 2,337 702 - Filter {} 1,512 704 - Chlorinator {} 756 898 706 - Pumps {} 891 1,059 720 - Heater {} 4,097 Total 12000 - Pool 1,738 891 1,872 4,097 4,283 14,806 1,059 2,170 2,337 898 13000 - Spa 100 - Re-Plaster {} 2,066 702 - Filter {} 936 1,198 704 - Chlorinator {} 756 898 706 - Pumps {2 } 1,522 1,809 780 - Heater {} 3,359 Total 13000 - Spa 1,522 936 4,115 2,066 1,809 2,096 14000 - Recreation / Fitness Equipment 100 - Sauna: Heaters {Mechanical} 4,853 140 - Sauna: Wood Replacement Fund {376 Sq. Ft. Cedar} 200 - Treadmill {} 7,235 20,644 210 - Stationary Bike {Upright} 3,708 211 - Stationary Bike {Sit Down} 3,043 4,093 215 - Stair Master {Elliptical} 6,680 8,984 216 - Bar Bells {} 218 - Drinking Fountain {} 2,340 220 - Mirrors {7 } 220 - Weight Machine (Universal) {Universal Gym} 222 - Scale {} 327 439 224 - Work Out Bench {} 327 439 Total 14000 - Recreation / Fitness Equipment 2,340 7,333 3,043 4,853 7,235 3,708 30,506 4,093 18000 - Landscaping 104 - Irrigation: Controllers {3 } 3,259 200 - Irrigation: Valves {24 } 9,789 300 - Irrigation: Backflow Preventors {2 } 2,855 Total 18000 - Landscaping 3,259 2,855 9,789 19000 - Fencing (Repair/Replace) Richard Avelar & Associates 2012 2026 to 2040 15

30 Year Expense Forecast - Detailed Reserve Component 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 100 - Chain Link: 4' {188 Lin. Ft. Bldg 3} 110 - Chain Link: 6' {500 Lin. Ft. Bldg 3} 200 - Wrought Iron {164 Lin. Ft. Pool Fence (25%)} 201 - Wrought Iron {40 Lin. Ft. Front Entry} 2,878 3,256 3,684 202 - Wrought Iron {598 Lin. Ft. Garages (25%)} 20000 - Lighting Total 19000 - Fencing (Repair/Replace) 100 - Exterior: Misc. Fixtures {4 Pole Lights 5'} 101 - Exterior: Misc. Fixtures {20 Pole Lights 8'} 102 - Exterior: Misc. Fixtures {26 Wall Mounted Lights} 103 - Exterior: Misc. Fixtures {206 Fluorescent Lights} 104 - Exterior: Misc. Fixtures {31 Landscape Lights} 400 - Interior Lights {190 Fluorescent Lights} 10,493 11,871 13,431 13,370 15,127 17,115 401 - Interior Lights {99 Emergency Lights} 44,766 402 - Interior Lights {78 Exit Lights} 26,100 403 - Interior Lights {5 Recessed Lights} 1,176 404 - Interior Lights {48 Surface Lights} 11,286 405 - Interior Lights {4 Spot Lights} 941 1,599 17,585 9,352 57,631 53,267 10,058 Total 20000 - Lighting 86,167 137,536 10,058 21000 - Signage 100 - Miscellaneous {23 Directional & Warning} Total 21000 - Signage 2,404 2,404 23000 - Misc. Mechanical Equipment 600 - Water Heater {Pool Area} 1,483 Total 23000 - Misc. Mechanical Equipment 1,483 23500 - Elevator 100 - Cab Refurbish / Upgrade {3 All} 58,232 200 - System Modernization {3 All} 300 - Load Test {All} 4,380 4,956 5,607 Total 23500 - Elevator 4,380 58,232 4,956 5,607 24000 - Common Area Furnishings / Equipment 100 - Miscellaneous {Clubhouse Furnishings} 21,835 914 - Pool/Spa Furnishings {All} 4,796 5,843 Richard Avelar & Associates 2012 2026 to 2040 16

30 Year Expense Forecast - Detailed Reserve Component 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total 24000 - Common Area Furnishings / Equipment 4,796 21,835 5,843 25000 - Flooring 200 - Carpeting {1,120 Sq. Ft. Bridge} 10,553 201 - Carpeting {1,370 Sq. Ft. Clubhouse} 12,908 202 - Carpeting {494 Sq. Ft. Fitness Room} 4,654 203 - Carpeting {3,996 Sq. Ft. Hallways, Bldg 1} 204 - Carpeting {8,280 Sq. Ft. Hallways, Bldg 2} 205 - Carpeting {3,996 Sq. Ft. Hallways, Bldg 3} 206 - Carpeting {376 Sq. Ft. Stairwell Bldg 1} 207 - Carpeting {502 Sq. Ft. Stairwell Bldg 2} 208 - Carpeting {168 Sq. Ft. Storage, Bldg 1} 209 - Carpeting {460 Sq. Ft. Utility Room, Bldg 1} 400 - Tile {524 Sq. Ft. Clubhouse Restrooms} 600 - Vinyl {84 Sq. Ft. Poolhouse Restroom} 669 601 - Vinyl {168 Sq. Ft. Storage, Bldg 2} 1,071 1,440 602 - Vinyl {324 Sq. Ft. Trash Room, bldg 1} 2,065 2,777 603 - Vinyl {280 Sq. Ft. Trash Room, bldg 2} 1,784 2,400 37,650 78,015 37,650 3,543 4,730 1,583 4,334 Total 25000 - Flooring 4,920 195,620 669 6,616 26000 - Outdoor Equipment / Furnishings 308 - Benches {3 Courtyard Building 1} 1,559 320 - Tables {2 Courtyard Bldg 2} 943 330 - Chairs {10 Courtyard Buildings 1 & 2} 3,197 785 - Umbrellas {2 Courtyard Bldg. 2} 560 Total 26000 - Outdoor Equipment / Furnishings 30000 - Miscellaneous 200 - Trellis {832 Lin. Ft. Trellis/Arbor (15%)} 218 - Mailboxes {All} Total 30000 - Miscellaneous Total Expenditures Inflated @ 2.50% 6,259 4,866 5,506 6,229 4,866 5,506 6,229 64,760 238,867 62,356 388,212 690,492 340,905 93,166 103,802 456,923 1,028,659 91,624 54,662 103,501 516,190 74,513 Richard Avelar & Associates 2012 2026 to 2040 17

Section III Bridgewater Condominium Association 30 Year Reserve Funding Plan Cash Flow Method Beginning Balance Inflated Expenditures @ 2.5% Reserve Contribution Units/month @ 103 Percentage Increase Special Assessments / Other Interest Pre Tax @ 2.50% Ending Balance 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 476,980 558,103 644,408 630,941 655,095 727,233 777,457 1,003,653 1,258,160 860,070 57,162 69,108 186,647 168,050 142,414 189,536 43,518 50,870 734,988 717,280 125,506 140,567 157,435 176,327 197,486 221,184 247,726 277,453 310,747 348,037 101.54 113.73 127.37 142.66 159.78 178.95 200.43 224.48 251.41 281.58 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 0 0 0 0 0 0 0 0 0 0 12,779 14,846 15,745 15,877 17,066 18,576 21,989 27,924 26,151 16,886 558,103 644,408 630,941 655,095 727,233 777,457 1,003,653 1,258,160 860,070 507,713 Beginning Balance Inflated Expenditures @ 2.5% Reserve Contribution Units/month @ 103 Percentage Increase Special Assessments / Other Interest Pre Tax @ 2.50% Ending Balance 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 507,713 749,988 1,072,868 1,374,264 1,229,670 1,562,542 1,888,441 2,046,208 2,386,640 2,405,656 121,292 47,667 76,861 524,791 49,652 64,760 238,867 62,356 388,212 690,492 348,040 348,043 348,046 348,049 348,052 348,055 348,058 348,061 348,064 348,067 281.59 281.59 281.59 281.59 281.60 281.60 281.60 281.60 281.61 281.61 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 15,527 22,504 30,212 32,147 34,472 42,605 48,576 54,727 59,164 55,861 749,988 1,072,868 1,374,264 1,229,670 1,562,542 1,888,441 2,046,208 2,386,640 2,405,656 2,119,093 Beginning Balance Inflated Expenditures @ 2.5% Reserve Contribution Units/month @ 103 Percentage Increase Special Assessments / Other Interest Pre Tax @ 2.50% Ending Balance 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2,119,093 2,179,324 2,491,901 2,801,526 2,761,360 2,141,310 2,454,510 2,812,966 3,130,938 3,039,014 340,905 93,166 103,802 456,923 1,028,659 91,624 54,662 103,501 516,190 74,513 348,070 348,073 348,076 348,079 348,082 348,085 348,088 348,091 348,094 348,097 281.61 281.61 281.61 281.62 281.62 281.62 281.62 281.63 281.63 281.63 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 53,067 57,669 65,351 68,678 60,527 56,739 65,031 73,382 76,172 79,395 2,179,324 2,491,901 2,801,526 2,761,360 2,141,310 2,454,510 2,812,966 3,130,938 3,039,014 3,391,993 Richard Avelar & Associates 2012 18

Fund Balance Section III-a Bridgewater Condominium Association 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Years Richard Avelar & Associates 2012 19

Section IV Bridgewater Condominium Association 30 Year Reserve Funding Plan Including Fully Funded Balance and % Funded Year Beginning Balance Fully Funded Balance Percent Funded Inflated Expenditures @ 2.50% Reserve Contribution Special Assessments & Other Contributions 2011 476,980 1,240,013 45.0% 57,162 125,506 0 12,779 558,103 2012 558,103 1,385,823 46.5% 69,108 140,567 0 14,846 644,408 2013 644,408 1,531,050 41.2% 186,647 157,435 0 15,745 630,941 2014 630,941 1,563,966 41.9% 168,050 176,327 0 15,877 655,095 2015 655,095 1,621,416 44.9% 142,414 197,486 0 17,066 727,233 2016 727,233 1,711,343 45.4% 189,536 221,184 0 18,576 777,457 2017 777,457 1,760,103 57.0% 43,518 247,726 0 21,989 1,003,653 2018 1,003,653 1,964,756 64.0% 50,870 277,453 0 27,924 1,258,160 2019 1,258,160 2,172,123 39.6% 734,988 310,747 0 26,151 860,070 2020 860,070 1,688,711 30.1% 717,280 348,037 0 16,886 507,713 2021 507,713 1,216,756 61.6% 121,292 348,040 0 15,527 749,988 2022 749,988 1,349,416 79.5% 47,667 348,043 0 22,504 1,072,868 2023 1,072,868 1,566,522 87.7% 76,861 348,046 0 30,212 1,374,264 2024 1,374,264 1,764,938 69.7% 524,791 348,049 0 32,147 1,229,670 2025 1,229,670 1,515,137 103.1% 49,652 348,052 0 34,472 1,562,542 2026 1,562,542 1,752,208 107.8% 64,760 348,055 0 42,605 1,888,441 2027 1,888,441 1,985,972 103.0% 238,867 348,058 0 48,576 2,046,208 2028 2,046,208 2,053,529 116.2% 62,356 348,061 0 54,727 2,386,640 2029 2,386,640 2,310,267 104.1% 388,212 348,064 0 59,164 2,405,656 2030 2,405,656 2,246,155 94.3% 690,492 348,067 0 55,861 2,119,093 2031 2,119,093 1,877,504 116.1% 340,905 348,070 0 53,067 2,179,324 2032 2,179,324 1,865,037 133.6% 93,166 348,073 0 57,669 2,491,901 2033 2,491,901 2,113,442 132.6% 103,802 348,076 0 65,351 2,801,526 2034 2,801,526 2,364,586 116.8% 456,923 348,079 0 68,678 2,761,360 2035 2,761,360 2,267,678 94.4% 1,028,659 348,082 0 60,527 2,141,310 2036 2,141,310 1,590,126 154.4% 91,624 348,085 0 56,739 2,454,510 2037 2,454,510 1,864,099 150.9% 54,662 348,088 0 65,031 2,812,966 2038 2,812,966 2,191,010 142.9% 103,501 348,091 0 73,382 3,130,938 2039 3,130,938 2,484,443 122.3% 516,190 348,094 0 76,172 3,039,014 2040 3,039,014 2,370,824 143.1% 74,513 348,097 0 79,395 3,391,993 Interest Ending Balance Richard Avelar & Associates 2012 20

Percent Funded Section IV-a Bridgewater Condominium Association 30 Year Reserve Funding Plan Cash Flow Method - Percent Funded 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Years Richard Avelar & Associates 2012 21

Section V Bridgewater Condominium Association Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method 00061 - Restrooms 010 - Refurbish {Clubhouse (Womens)} 4,000 20 4 4,415 221 3,200 3,485 0.11% 149 011 - Refurbish {Clubhouse (Mens)} 4,000 20 19 6,395 320 200 410 0.15% 215 011 - Refurbish {2 Pool Area} 8,000 20 4 8,831 442 6,400 6,970 0.21% 297 Sub-total [00061 - Restrooms] 16,000 19,640 982 9,800 10,865 0.47% 661 00063 - Exterior Planters 012 - Planter (Reline) {11,920 Sq. Ft. Buildings 1 and 2} 292,040 20 19 466,870 23,343 14,602 29,934 11.18% 15,717 014 - Planter (Repair) {11,920 Sq. Ft. Buildings 1 and 2} 3,576 10 10 4,578 416 325 367 0.20% 280 Sub-total [00063 - Exterior Planters] 295,616 471,447 23,760 14,927 30,301 11.38% 15,997 00106 - Mechanical Equip. - Fire Safety/Alarm System 020 - Five Year Certification {} 1,200 5 5 1,358 226 200 246 0.11% 152 100 - Control Panel {3 Addressable Fire Alarm Control Panel} 2,930 10 1 3,003 300 2,637 3,003 0.14% 202 108 - Battery Back-Up {6 Yuasa 12AH} 336 3 0 336 112 336 115 0.05% 75 110 - Pull Stations {36 All} 3,276 10 0 3,276 328 3,276 336 0.16% 221 118 - Fire Extinguishers/Cabinets {37 All} 6,309 15 1 6,466 431 5,888 6,466 0.21% 290 134 - Smoke Alarms {50 Alarm Bells} 6,250 25 10 8,001 320 3,750 4,100 0.15% 215 138 - Power Supplies {2 Electrical & Fire Cable (bldg's 1 & 3)} 1,800 20 0 1,800 90 1,800 92 0.04% 61 139 - Power Supplies {Electrical & Fire Cable (bldg 2)} 1,200 20 0 1,200 60 1,200 62 0.03% 40 140 - Modules {6 Flow & Tamper} 464 10 0 464 46 464 48 0.02% 31 141 - Relays {5 Addressable Relay} 735 20 0 735 37 735 38 0.02% 25 220 - Smoke Detectors {88 Common Area} 7,216 5 0 7,216 1,443 7,216 1,479 0.69% 972 226 - Drawings, Engineering, Submittals & Labor {All Buildings} 27,800 10 0 27,800 2,780 27,800 2,850 1.33% 1,872 Sub-total [00106 - Mechanical Equip. - Fire Safety/Alarm System] 00500 - Window Replacement 59,515 61,654 6,174 55,301 18,833 2.96% 4,157 190 - Window Replacement Allowance {}[se:10] 250,000 10 1 287,087 28,709 114,773 140,938 13.75% 19,329 01500 - Siding/Trim (Repair/Replace) 100 - Stucco Siding {96,398 Sq. Ft. Repair Fund (20%)} 23,136 10 8 28,188 2,819 4,627 7,114 1.35% 1,898 Richard Avelar & Associates 2012 22

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method 02000 - Concrete (Partial Replacement) 102 - Courtyards & Garages {1,970 Sq. Ft. (5%)} 2,167 5 2 2,277 455 1,300 1,777 0.22% 307 104 - Culvert {672 Sq. Ft. (5%)} 890 5 2 935 187 534 730 0.09% 126 106 - Stairs {1,160 Sq. Ft. Front Entry (5%)} 1,537 5 2 1,615 323 922 1,260 0.15% 217 360 - Stamped {1,665 Sq. Ft. Front Entry (5%)} 1,166 5 2 1,225 245 699 956 0.12% 165 Sub-total [02000 - Concrete (Partial Replacement)] 5,760 6,051 1,210 3,456 4,723 0.58% 815 02500 - Landings/Stairs/Railings 000 - Railings (Metal) {3,231 Lin. Ft. All (Partial Replacement) (10%)} 03000 - Painting/Caulking: Exterior 9,693 5 3 10,438 2,088 3,877 5,961 1.00% 1,406 102 - Wood {1,664 Sq. Ft. Trellis/Arbors/Posts} 1,414 5 3 1,523 305 566 870 0.15% 205 110 - Stucco {96,398 Sq. Ft. All} 120,498 10 8 146,815 14,681 24,100 37,053 7.03% 9,885 128 - Doors {55 Building 1 & Garages} 4,125 5 3 4,442 888 1,650 2,537 0.43% 598 400 - Fence (Wrought Iron) {10,820 Lin. Ft. All} 24,345 5 3 26,217 5,243 9,738 14,972 2.51% 3,530 406 - Railings (Wrought Iron) {1,741 Lin. Ft. } 1,480 5 3 1,594 319 592 910 0.15% 215 410 - Gates (Wrought Iron) {1,242 Lin. Ft. All} 2,795 5 3 3,009 602 1,118 1,719 0.29% 405 476 - Chimney Caps {29 All} 1,450 10 8 1,767 177 290 446 0.08% 119 600 - Retaining Walls {2,537 Lin. Ft. } 2,156 10 8 2,627 263 431 663 0.13% 177 991 - Exterior Components {11,920 Sq. Ft. Concrete Planters} 10,132 10 8 12,345 1,234 2,026 3,116 0.59% 831 992 - Exterior Components {1,591 Lin. Ft. Parapet caps @ roof} 1,352 10 8 1,648 165 270 416 0.08% 111 Sub-total [03000 - Painting/Caulking: Exterior] 169,747 201,986 23,877 40,781 62,701 11.44% 16,076 03400 - Door Replacement 190 - Doors {17 Exterior, buildings 1, 2 and 3} 6,035 30 13 8,319 277 3,420 3,712 0.13% 187 191 - Doors {24 Exterior, Garage Buildings 1 & 2} 8,520 30 13 11,745 391 4,828 5,240 0.19% 264 192 - Doors {5 Pool House} 1,775 30 13 2,447 82 1,006 1,092 0.04% 55 193 - Doors {91 Interior, bldg's 1, 2, 3 & clubhouse} 32,305 30 13 44,533 1,484 18,306 19,868 0.71% 999 194 - Doors {9 Roof Access} 7,425 30 13 10,235 341 4,208 4,566 0.16% 230 195 - Doors {7 Trash, Bldg 1 & 2} 1,750 20 13 2,412 121 613 718 0.06% 81 196 - Doors {14 Exterior Glass (all)} 11,550 30 13 15,922 531 6,545 7,103 0.25% 357 Sub-total [03400 - Door Replacement] 69,360 95,614 3,227 38,925 42,298 1.55% 2,173 Richard Avelar & Associates 2012 23

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method 03500 - Painting: Interior 102 - Corridors {76,854 Sq. Ft. Hallways - All} 73,011 7 2 76,707 10,958 52,151 64,146 5.25% 7,378 110 - Service Rooms {Utility Rooms} 5,000 7 2 5,253 750 3,571 4,393 0.36% 505 112 - Stairwells {38,344 Sq. Ft. All} 36,427 7 2 38,271 5,467 26,019 32,004 2.62% 3,681 122 - Doors {59 Common Area} 4,720 5 2 4,959 992 2,832 3,870 0.48% 668 124 - Fitness Room {1,214 Sq. Ft. } 1,214 7 2 1,275 182 867 1,067 0.09% 123 300 - Clubhouse {2,584 Sq. Ft. } 2,584 7 2 2,715 388 1,846 2,270 0.19% 261 400 - Restrooms {1,392 Sq. Ft. Poolhouse & clubhouse} 1,322 7 2 1,389 198 945 1,162 0.10% 134 404 - Garage (Interior) {7,605 Sq. Ft. Walls} 7,225 7 6 8,378 1,197 1,032 2,116 0.57% 806 Sub-total [03500 - Painting: Interior] 131,503 138,949 20,133 89,263 111,027 9.64% 13,555 04000 - Structural Repairs 960 - Awnings {All} 12,000 25 24 21,705 868 480 984 0.42% 585 996 - Miscellaneous {Lower Plaza Areas} 358,946 50 8 437,341 8,747 301,515 316,411 4.19% 5,889 Sub-total [04000 - Structural Repairs] 370,946 459,046 9,615 301,995 317,395 4.61% 6,474 05000 - Roofing 330 - Low Slope: Single Ply {52,030 Sq. Ft. Replace, All Buildings} 416,240 15 9 519,827 34,655 166,496 199,101 16.60% 23,332 702 - Downspouts {1,738 Lin. Ft. All} 15,294 25 24 27,663 1,107 612 1,254 0.53% 745 802 - Chimney Caps {29 All} 5,655 25 19 9,040 362 1,357 1,623 0.17% 243 900 - Roofing: Inspections & Repairs {All Buildings} 2,500 1 0 2,500 2,500 2,500 2,563 1.20% 1,683 Sub-total [05000 - Roofing] 439,689 559,030 38,623 170,965 204,541 18.50% 26,004 08000 - Re-Model / Upgrade 240 - Clubhouse {repair fund} 2,000 7 2 2,101 300 1,429 1,757 0.14% 202 Richard Avelar & Associates 2012 24

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method 11000 - Gate Equipment / Entry System 050 - Operators {2 Garage Bldg 1} 8,344 10 2 8,766 877 6,675 7,697 0.42% 590 051 - Operators {Garage Bldg 2} 4,172 10 9 5,210 521 417 855 0.25% 351 052 - Operators {Main Entry Gate} 4,172 10 10 5,340 485 379 428 0.23% 327 053 - Operators {Main Exit Gate} 4,172 10 2 4,383 438 3,337 3,848 0.21% 295 104 - Pavement Sensors {4 Main Gate} 3,960 20 3 4,264 213 3,366 3,653 0.10% 144 286 - Swing Gate {2 Main} 5,000 30 2 5,253 175 4,667 4,954 0.08% 118 290 - Gate Arm Control Assembly {2 Swing Arm, Main Gate} 6,600 20 3 7,107 355 5,610 6,089 0.17% 239 622 - Keyless Entry System {Common Area Doors} 35,000 20 19 55,953 2,798 1,750 3,588 1.34% 1,884 624 - Entry Access System {Dial Up, Bldg 1} 5,004 20 18 7,805 390 500 769 0.19% 263 625 - Entry Access System {Dial Up, Bldg 2} 5,004 20 1 5,129 256 4,754 5,129 0.12% 173 626 - Entry Access System {Dial Up, Main Gate} 5,004 20 3 5,389 269 4,253 4,616 0.13% 181 780 - Pedestrian Gate {6 All} 3,300 30 5 3,734 124 2,750 2,932 0.06% 84 782 - Auto Gate {Garage Bldg 2} 1,500 30 5 1,697 57 1,250 1,333 0.03% 38 783 - Auto Gate {Garage Bldg 1 (main gate)} 1,500 30 0 1,500 50 1,500 51 0.02% 34 784 - Auto Gate {Garage Bldg 1 (secondary gate)} 1,500 30 0 1,500 50 1,500 51 0.02% 34 990 - Miscellaneous {4 Receivers} 2,420 20 3 2,606 130 2,057 2,232 0.06% 88 Sub-total [11000 - Gate Equipment / Entry System] 96,651 125,636 7,190 44,766 48,225 3.44% 4,841 12000 - Pool 100 - Re-plaster {} 8,600 12 10 11,009 917 1,433 2,204 0.44% 618 204 - Coping {pool deck} 1,200 3 0 1,200 400 1,200 410 0.19% 269 702 - Filter {} 900 10 1 923 92 810 923 0.04% 62 704 - Chlorinator {} 450 7 0 450 64 450 66 0.03% 43 706 - Pumps {} 600 7 2 630 90 429 527 0.04% 61 720 - Heater {} 2,500 10 0 2,500 250 2,500 256 0.12% 168 Sub-total [12000 - Pool] 14,250 16,712 1,814 6,822 4,386 0.87% 1,221 13000 - Spa 100 - Re-Plaster {} 1,200 12 10 1,536 128 200 308 0.06% 86 702 - Filter {} 600 10 8 731 73 120 185 0.04% 49 704 - Chlorinator {} 450 7 0 450 64 450 66 0.03% 43 706 - Pumps {2 } 1,000 7 3 1,077 154 571 732 0.07% 104 780 - Heater {} 2,000 10 1 2,050 205 1,800 2,050 0.10% 138 Sub-total [13000 - Spa] 5,250 5,844 624 3,141 3,340 0.30% 420 Richard Avelar & Associates 2012 25

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method 14000 - Recreation / Fitness Equipment 100 - Sauna: Heaters {Mechanical} 2,750 20 3 2,961 148 2,338 2,537 0.07% 100 140 - Sauna: Wood Replacement Fund {376 Sq. Ft. Cedar} 10,340 25 3 11,135 445 9,099 9,751 0.21% 300 200 - Treadmill {} 4,000 10 4 4,415 442 2,400 2,870 0.21% 297 210 - Stationary Bike {Upright} 2,000 12 1 2,050 171 1,833 2,050 0.08% 115 211 - Stationary Bike {Sit Down} 2,000 12 5 2,263 189 1,167 1,367 0.09% 127 215 - Stair Master {Elliptical} 4,500 12 4 4,967 414 3,000 3,459 0.20% 279 216 - Bar Bells {} 750 20 12 1,009 50 300 346 0.02% 34 218 - Drinking Fountain {} 1,616 15 0 1,616 108 1,616 110 0.05% 73 220 - Mirrors {7 } 1,925 30 8 2,345 78 1,412 1,513 0.04% 53 220 - Weight Machine (Universal) {Universal Gym} 4,000 20 12 5,380 269 1,600 1,845 0.13% 181 222 - Scale {} 220 12 4 243 20 147 169 0.01% 14 224 - Work Out Bench {} 220 12 4 243 20 147 169 0.01% 14 Sub-total [14000 - Recreation / Fitness Equipment] 34,321 38,627 2,354 25,058 26,186 1.13% 1,585 18000 - Landscaping 104 - Irrigation: Controllers {3 } 2,250 15 0 2,250 150 2,250 154 0.07% 101 200 - Irrigation: Valves {24 } 5,280 12 1 5,412 451 4,840 5,412 0.22% 304 300 - Irrigation: Backflow Preventors {2 } 1,700 20 1 1,743 87 1,615 1,743 0.04% 59 Sub-total [18000 - Landscaping] 9,230 9,405 688 8,705 7,308 0.33% 463 19000 - Fencing (Repair/Replace) 100 - Chain Link: 4' {188 Lin. Ft. Bldg 3} 2,068 40 13 2,851 71 1,396 1,484 0.03% 48 110 - Chain Link: 6' {500 Lin. Ft. Bldg 3} 6,000 40 13 8,271 207 4,050 4,305 0.10% 139 200 - Wrought Iron {164 Lin. Ft. Pool Fence (25%)} 1,845 5 3 1,987 397 738 1,135 0.19% 268 201 - Wrought Iron {40 Lin. Ft. Front Entry} 1,800 30 4 1,987 66 1,560 1,661 0.03% 45 202 - Wrought Iron {598 Lin. Ft. Garages (25%)} 6,728 5 3 7,245 1,449 2,691 4,137 0.69% 976 Sub-total [19000 - Fencing (Repair/Replace)] 18,441 22,340 2,191 10,435 12,721 1.05% 1,475 Richard Avelar & Associates 2012 26

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method 20000 - Lighting 100 - Exterior: Misc. Fixtures {4 Pole Lights 5'} 1,000 20 19 1,599 80 50 103 0.04% 54 101 - Exterior: Misc. Fixtures {20 Pole Lights 8'} 11,000 20 19 17,585 879 550 1,128 0.42% 592 102 - Exterior: Misc. Fixtures {26 Wall Mounted Lights} 5,850 20 19 9,352 468 293 600 0.22% 315 103 - Exterior: Misc. Fixtures {206 Fluorescent Lights} 36,050 20 19 57,631 2,882 1,803 3,695 1.38% 1,940 104 - Exterior: Misc. Fixtures {31 Landscape Lights} 5,425 20 5 6,138 307 4,069 4,449 0.15% 207 400 - Interior Lights {190 Fluorescent Lights} 29,450 20 4 32,507 1,625 23,560 25,658 0.78% 1,094 401 - Interior Lights {99 Emergency Lights} 24,750 20 4 27,319 1,366 19,800 21,563 0.65% 920 402 - Interior Lights {78 Exit Lights} 14,430 20 4 15,928 796 11,544 12,572 0.38% 536 403 - Interior Lights {5 Recessed Lights} 650 20 4 717 36 520 566 0.02% 24 404 - Interior Lights {48 Surface Lights} 6,240 20 4 6,888 344 4,992 5,437 0.16% 232 405 - Interior Lights {4 Spot Lights} 520 20 4 574 29 416 453 0.01% 19 Sub-total [20000 - Lighting] 135,365 176,239 8,812 67,596 76,223 4.22% 5,933 21000 - Signage 100 - Miscellaneous {23 Directional & Warning} 1,265 20 6 1,467 73 886 972 0.04% 49 23000 - Misc. Mechanical Equipment 600 - Water Heater {Pool Area} 800 12 1 820 68 733 820 0.03% 46 23500 - Elevator 100 - Cab Refurbish / Upgrade {3 All} 33,000 10 3 35,537 3,554 23,100 27,060 1.70% 2,393 200 - System Modernization {3 All} 165,000 30 13 227,454 7,582 93,500 101,475 3.63% 5,105 300 - Load Test {All} 2,740 5 4 3,024 605 548 1,123 0.29% 407 Sub-total [23500 - Elevator] 200,740 266,016 11,740 117,148 129,658 5.62% 7,905 24000 - Common Area Furnishings / Equipment 100 - Miscellaneous {Clubhouse Furnishings} 13,000 20 1 13,325 666 12,350 13,325 0.32% 449 914 - Pool/Spa Furnishings {All} 3,000 8 3 3,231 404 1,875 2,306 0.19% 272 Sub-total [24000 - Common Area Furnishings / Equipment] 16,000 16,556 1,070 14,225 15,631 0.51% 720 Richard Avelar & Associates 2012 27

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Remaining Estimated Future Replacement Costs Per Year 2011 Fully Funded Balance 2012 Fully Funded Balance % Per Year Straight Line 2012 Line Item Contribution based on Cash Flow Method 25000 - Flooring 200 - Carpeting {1,120 Sq. Ft. Bridge} 6,440 15 5 7,286 486 4,293 4,841 0.23% 327 201 - Carpeting {1,370 Sq. Ft. Clubhouse} 7,878 15 5 8,913 594 5,252 5,921 0.28% 400 202 - Carpeting {494 Sq. Ft. Fitness Room} 2,841 15 5 3,214 214 1,894 2,135 0.10% 144 203 - Carpeting {3,996 Sq. Ft. Hallways, Bldg 1} 22,977 15 5 25,996 1,733 15,318 17,271 0.83% 1,167 204 - Carpeting {8,280 Sq. Ft. Hallways, Bldg 2} 47,610 15 5 53,866 3,591 31,740 35,787 1.72% 2,418 205 - Carpeting {3,996 Sq. Ft. Hallways, Bldg 3} 22,977 15 5 25,996 1,733 15,318 17,271 0.83% 1,167 206 - Carpeting {376 Sq. Ft. Stairwell Bldg 1} 2,162 15 5 2,446 163 1,441 1,625 0.08% 110 207 - Carpeting {502 Sq. Ft. Stairwell Bldg 2} 2,887 15 5 3,266 218 1,924 2,170 0.10% 147 208 - Carpeting {168 Sq. Ft. Storage, Bldg 1} 966 15 5 1,093 73 644 726 0.03% 49 209 - Carpeting {460 Sq. Ft. Utility Room, Bldg 1} 2,645 15 5 2,993 200 1,763 1,988 0.10% 134 400 - Tile {524 Sq. Ft. Clubhouse Restrooms} 6,917 40 13 9,535 238 4,669 4,963 0.11% 160 600 - Vinyl {84 Sq. Ft. Poolhouse Restroom} 370 12 0 370 31 370 32 0.01% 21 601 - Vinyl {168 Sq. Ft. Storage, Bldg 2} 739 12 3 796 66 554 631 0.03% 45 602 - Vinyl {324 Sq. Ft. Trash Room, bldg 1} 1,426 12 3 1,535 128 1,069 1,218 0.06% 86 603 - Vinyl {280 Sq. Ft. Trash Room, bldg 2} 1,232 12 3 1,327 111 924 1,052 0.05% 74 Sub-total [25000 - Flooring] 130,065 148,632 9,579 87,174 97,631 4.59% 6,449 26000 - Outdoor Equipment / Furnishings 308 - Benches {3 Courtyard Building 1} 975 12 7 1,159 97 406 500 0.05% 65 320 - Tables {2 Courtyard Bldg 2} 590 12 7 701 58 246 302 0.03% 39 330 - Chairs {10 Courtyard Buildings 1 & 2} 2,000 12 7 2,377 198 833 1,025 0.09% 133 785 - Umbrellas {2 Courtyard Bldg. 2} 350 12 7 416 35 146 179 0.02% 23 Sub-total [26000 - Outdoor Equipment / Furnishings] 3,915 4,654 388 1,631 2,006 0.19% 261 30000 - Miscellaneous 200 - Trellis {832 Lin. Ft. Trellis/Arbor (15%)} 3,120 5 3 3,360 672 1,248 1,919 0.32% 452 218 - Mailboxes {All} 20,000 60 60 0 0 328 342 0.00% 0 Sub-total [30000 - Miscellaneous] 23,120 3,360 672 1,576 2,260 0.32% 452 Totals 2,532,377 3,177,539 208,781 1,240,013 1,385,823 100.00% 140,567 [A] [EndBal] [A] [B] [EndBal] [B] Percent Funded 45.01% 46.50% Richard Avelar & Associates 2012 28

Section VI Bridgewater Condominium Association Component Listing Included Components 00061 - Restrooms 010 - Refurbish Useful 20 Clubhouse (Womens) Quantity 1 Unit of Measure Items Cost /Itm $4,000 100.00% Total Cost/Study $4,000 Replacement Year 2015 Future Cost $4,415 4 011 - Refurbish Useful 20 2 Pool Area Quantity 2 Unit of Measure Items Cost /Itm $4,000 100.00% Total Cost/Study $8,000 Replacement Year 2015 Future Cost $8,831 4 011 - Refurbish Useful 20 Clubhouse (Mens) Quantity 1 Unit of Measure Items Cost /Itm $4,000 19 100.00% Total Cost/Study $4,000 Replacement Year 2030 Future Cost $6,395 00063 - Exterior Planters 012 - Planter (Reline) Useful 20 11,920 Sq. Ft. Buildings 1 and 2 Quantity 11,920 Unit of Measure Square Feet Cost /SqFt $24.50 19 100.00% Total Cost/Study $292,040 Replacement Year 2030 Future Cost $466,870 Richard Avelar & Associates 2012 29

Component Listing Included Components 00063 - Exterior Planters 014 - Planter (Repair) Useful 10 11,920 Sq. Ft. Buildings 1 and 2 Quantity 11,920 Unit of Measure Square Feet Cost /SqFt $0.300 10 100.00% Total Cost/Study $3,576 Replacement Year 2021 Future Cost $4,578 00106 - Mechanical Equip. - Fire Safety/Alarm System 020 - Five Year Certification Useful 5 Quantity 1 Unit of Measure Fund Cost /Fnd $1,200 100.00% Total Cost/Study $1,200 Replacement Year 2016 Future Cost $1,358 5 100 - Control Panel Useful 10 3 Addressable Fire Alarm Control Panel Quantity 3 Unit of Measure Items Cost /Itm $977 100.00% Total Cost/Study $2,930 Replacement Year 2012 Future Cost $3,003 1 108 - Battery Back-Up Useful 3 6 Yuasa 12AH Quantity 6 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $56.00 100.00% Total Cost/Study $336 Replacement Year 2011 Future Cost $336 0 110 - Pull Stations Useful 10 36 All Quantity 36 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $91.00 100.00% Total Cost/Study $3,276 Replacement Year 2011 Future Cost $3,276 0 Richard Avelar & Associates 2012 30

Component Listing Included Components 00106 - Mechanical Equip. - Fire Safety/Alarm System 118 - Fire Extinguishers/Cabinets Useful 15 37 All Quantity 37 Unit of Measure Items Cost /Itm $171 100.00% Total Cost/Study $6,309 Replacement Year 2012 Future Cost $6,466 1 134 - Smoke Alarms Useful 25 50 Alarm Bells Quantity 50 Unit of Measure Items Cost /Itm $125 10 100.00% Total Cost/Study $6,250 Replacement Year 2021 Future Cost $8,001 138 - Power Supplies Useful 20 2 Electrical & Fire Cable (bldg's 1 & 3) Quantity 2 Unit of Measure Items Replacement for buildings 1 and 3 Cost /Itm $900 100.00% Total Cost/Study $1,800 Replacement Year 2011 Future Cost $1,800 0 139 - Power Supplies Useful 20 Electrical & Fire Cable (bldg 2) Quantity 1 Unit of Measure Items Cost /Itm $1,200 100.00% Total Cost/Study $1,200 Replacement Year 2011 Future Cost $1,200 0 140 - Modules Useful 10 6 Flow & Tamper Quantity 6 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $77.25 100.00% Total Cost/Study $464 Replacement Year 2011 Future Cost $464 0 Richard Avelar & Associates 2012 31

Component Listing Included Components 00106-141 - Relays Mechanical Equip. - Fire Safety/Alarm System Useful 20 5 Addressable Relay Quantity 5 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $147 100.00% Total Cost/Study $735 Replacement Year 2011 Future Cost $735 0 220 - Smoke Detectors Useful 5 88 Common Area Quantity 88 Unit of Measure Items Costing provided by Fire & Security Alarm Company Cost /Itm $82.00 100.00% Total Cost/Study $7,216 Replacement Year 2011 Future Cost $7,216 0 226 - Drawings, Engineering, Submittals & Labor Useful 10 All Buildings Quantity 1 Unit of Measure Fund Cost /Fnd $27,800 100.00% Total Cost/Study $27,800 Replacement Year 2011 Future Cost $27,800 This line item is for the fees associational with the replacement of the fire alarm components. Costing provided by Fire & Security Alarm Company 0 00500 - Window Replacement 190 - Window Replacement Allowance Useful 10 Quantity 1 Unit of Measure Fund Cost /Fnd $250,000 100.00% 1 Treatment [se:10] Total Cost/Study $250,000 Replacement Year 2012 Future Cost $319,888 This is a replacement fund established for the partial replacement of windows during each painting cycle. Richard Avelar & Associates 2012 32

Component Listing Included Components 01500 - Siding/Trim (Repair/Replace) 100 - Stucco Siding Useful 10 96,398 Sq. Ft. Repair Fund (20%) Quantity 96,398 Unit of Measure Square Feet Cost /SqFt $1.20 Qty * $/SqFt $115,678 20.00% Total Cost/Study $23,136 Replacement Year 2019 Future Cost $28,188 This line item is established as a repair fund to include repair and/or replacement of stucco surfaces, if necessary. This line item is scheduled to coincide with the painting of the stucco surfaces and includes stucco throughout the Association. The stucco repairs involved during the window replacement is included within the window replacement cost. 8 02000 - Concrete (Partial Replacement) 102 - Courtyards & Garages Useful 5 1,970 Sq. Ft. (5%) Quantity 1,970 Unit of Measure Square Feet Cost /SqFt $22.00 Qty * $/SqFt $43,340 5.00% Total Cost/Study $2,167 Replacement Year 2013 Future Cost $2,277 2 104 - Culvert Useful 5 672 Sq. Ft. (5%) Quantity 672 Unit of Measure Square Feet Cost /SqFt $26.50 Qty * $/SqFt $17,808 5.00% Total Cost/Study $890 Replacement Year 2013 Future Cost $935 2 106 - Stairs Useful 5 1,160 Sq. Ft. Front Entry (5%) Quantity 1,160 Unit of Measure Square Feet Cost /SqFt $26.50 Qty * $/SqFt $30,740 5.00% Total Cost/Study $1,537 Replacement Year 2013 Future Cost $1,615 2 Richard Avelar & Associates 2012 33

Component Listing Included Components 02000-360 - Stamped Concrete (Partial Replacement) Useful 5 1,665 Sq. Ft. Front Entry (5%) Quantity 1,665 Unit of Measure Square Feet Cost /SqFt $14.00 Qty * $/SqFt $23,310 This is to repair, replace the stamped concrete at the front entry 5.00% Total Cost/Study $1,166 Replacement Year 2013 Future Cost $1,225 2 02500 - Landings/Stairs/Railings 000 - Railings (Metal) 3,231 Lin. Ft. All (Partial Replacement) (10%) Useful 5 Quantity 3,231 Unit of Measure Linear Feet Cost /l.f. $30.00 Qty * $/l.f. $96,930 10.00% Total Cost/Study $9,693 Replacement Year 2014 Future Cost $10,438 3 This is a partial replacement line item established to perform repairs, as necessary, with every paint cycle. 03000-102 - Wood Painting/Caulking: Exterior Useful 5 1,664 Sq. Ft. Trellis/Arbors/Posts Quantity 1,664 Unit of Measure Square Feet Cost /SqFt $0.850 100.00% Total Cost/Study $1,414 Replacement Year 2014 Future Cost $1,523 To paint the wood trellis/arbors and posts at the pool house and clubhouse 3 Richard Avelar & Associates 2012 34

Component Listing Included Components 03000-110 - Stucco Painting/Caulking: Exterior Useful 10 96,398 Sq. Ft. All Quantity 96,398 Unit of Measure Square Feet Cost /SqFt $1.25 100.00% Total Cost/Study $120,498 Replacement Year 2019 Future Cost $146,815 This is to paint the stucco surfaces of all buildings, including the pool house. 8 128 - Doors Useful 5 55 Building 1 & Garages Quantity 55 Unit of Measure Items Cost /Itm $75.00 100.00% Total Cost/Study $4,125 Replacement Year 2014 Future Cost $4,442 This line item is to paint/refinish the exterior common area doors at building 1, garages at buildings 1 and 2 and the pool house 3 400 - Fence (Wrought Iron) Useful 5 10,820 Lin. Ft. All Quantity 10,820 Unit of Measure Linear Feet Cost /l.f. $2.25 100.00% Total Cost/Study $24,345 Replacement Year 2014 Future Cost $26,217 This is to paint/coat the wrought iron of the fencing located at the Association's front entry, pool house and garages. 3 406 - Railings (Wrought Iron) Useful 5 1,741 Lin. Ft. Quantity 1,741 Unit of Measure Linear Feet Cost /l.f. $0.850 100.00% Total Cost/Study $1,480 Replacement Year 2014 Future Cost $1,594 This is to paint/coat the railings. The coating on the surface of all metal handrails helps protect the metal from the two components needed to form rust: water & air. If the coating becomes thin or scratched, rust will start to form and spread beneath th 3 Richard Avelar & Associates 2012 35

Component Listing Included Components 03000 - Painting/Caulking: Exterior 410 - Gates (Wrought Iron) Useful 5 1,242 Lin. Ft. All Quantity 1,242 Unit of Measure Linear Feet Cost /l.f. $2.25 100.00% Total Cost/Study $2,795 Replacement Year 2014 Future Cost $3,009 This is to paint/coat wrought iron gates throughout the Association. Includes vehicle and pedestrian gates at the garages, front entry and pool house. 3 476 - Chimney Caps Useful 10 29 All Quantity 29 Unit of Measure Items This is to prep and paint chimney caps Cost /Itm $50.00 100.00% Total Cost/Study $1,450 Replacement Year 2019 Future Cost $1,767 8 600 - Retaining Walls Useful 10 2,537 Lin. Ft. Quantity 2,537 Unit of Measure Linear Feet Cost /l.f. $0.850 100.00% Total Cost/Study $2,156 Replacement Year 2019 Future Cost $2,627 8 991 - Exterior Components Useful 10 11,920 Sq. Ft. Concrete Planters Quantity 11,920 Unit of Measure Square Feet Cost /SqFt $0.850 100.00% Total Cost/Study $10,132 Replacement Year 2019 Future Cost $12,345 8 992 - Exterior Components Useful 10 1,591 Lin. Ft. Parapet caps @ roof Quantity 1,591 Unit of Measure Linear Feet Cost /l.f. $0.850 100.00% Total Cost/Study $1,352 Replacement Year 2019 Future Cost $1,648 8 Richard Avelar & Associates 2012 36

Component Listing Included Components 03400-190 - Doors Door Replacement Useful 30 17 Exterior, buildings 1, 2 and 3 Quantity 17 Unit of Measure Items Cost /Itm $355 13 100.00% Total Cost/Study $6,035 Replacement Year 2024 Future Cost $8,319 191 - Doors Useful 30 24 Exterior, Garage Buildings 1 & 2 Quantity 24 Unit of Measure Items Cost /Itm $355 13 100.00% Total Cost/Study $8,520 Replacement Year 2024 Future Cost $11,745 192 - Doors Useful 30 5 Pool House Quantity 5 Unit of Measure Items Cost /Itm $355 13 100.00% Total Cost/Study $1,775 Replacement Year 2024 Future Cost $2,447 193 - Doors Useful 30 91 Interior, bldg's 1, 2, 3 & clubhouse Quantity 91 Unit of Measure Items Cost /Itm $355 13 100.00% Total Cost/Study $32,305 Replacement Year 2024 Future Cost $44,533 194 - Doors Useful 30 9 Roof Access Quantity 9 Unit of Measure Items Cost /Itm $825 13 100.00% Total Cost/Study $7,425 Replacement Year 2024 Future Cost $10,235 195 - Doors Useful 20 7 Trash, Bldg 1 & 2 Quantity 7 Unit of Measure Items Cost /Itm $250 13 100.00% Total Cost/Study $1,750 Replacement Year 2024 Future Cost $2,412 196 - Doors Useful 30 14 Exterior Glass (all) Quantity 14 Unit of Measure Items Cost /Itm $825 13 100.00% Total Cost/Study $11,550 Replacement Year 2024 Future Cost $15,922 Richard Avelar & Associates 2012 37

Component Listing Included Components 03500-102 - Corridors Painting: Interior Useful 7 76,854 Sq. Ft. Hallways - All Quantity 76,854 Unit of Measure Square Feet Cost /SqFt $0.950 100.00% Total Cost/Study $73,011 Replacement Year 2013 Future Cost $76,707 2 110 - Service Rooms Useful 7 Utility Rooms Quantity 1 Unit of Measure Fund Cost /Fnd $5,000 100.00% Total Cost/Study $5,000 Replacement Year 2013 Future Cost $5,253 This line item is to paint the interior utility rooms and includes the pool equipment room 2 112 - Stairwells Useful 7 38,344 Sq. Ft. All Quantity 38,344 Unit of Measure Square Feet Cost /SqFt $0.950 100.00% Total Cost/Study $36,427 Replacement Year 2013 Future Cost $38,271 This line item is to paint the interior stairways of all buildings (including the clubhouse) 2 122 - Doors Useful 5 59 Common Area Quantity 59 Unit of Measure Items Cost /Itm $80.00 100.00% Total Cost/Study $4,720 Replacement Year 2013 Future Cost $4,959 This line item is to paint/refinish the common area interior doors at buildings 1 and 2. 2 124 - Fitness Room Useful 7 1,214 Sq. Ft. Quantity 1,214 Unit of Measure Square Feet Cost /SqFt $1.00 100.00% Total Cost/Study $1,214 Replacement Year 2013 Future Cost $1,275 2 300 - Clubhouse Useful 7 2,584 Sq. Ft. Quantity 2,584 Unit of Measure Square Feet This is to paint the clubhouse interior. Cost /SqFt $1.00 100.00% Total Cost/Study $2,584 Replacement Year 2013 Future Cost $2,715 2 Richard Avelar & Associates 2012 38

Component Listing Included Components 03500-400 - Restrooms Painting: Interior Useful 7 1,392 Sq. Ft. Poolhouse & clubhouse Quantity 1,392 Unit of Measure Square Feet This is to paint restroom interiors. Cost /SqFt $0.950 100.00% Total Cost/Study $1,322 Replacement Year 2013 Future Cost $1,389 2 404 - Garage (Interior) Useful 7 7,605 Sq. Ft. Walls Quantity 7,605 Unit of Measure Square Feet Cost /SqFt $0.950 100.00% Total Cost/Study $7,225 Replacement Year 2017 Future Cost $8,378 6 04000-960 - Awnings Structural Repairs Useful 25 All Quantity 1 Unit of Measure Fund This is to replace the awnings. Cost /Fnd $12,000 24 100.00% Total Cost/Study $12,000 Replacement Year 2035 Future Cost $21,705 996 - Miscellaneous Useful 50 Lower Plaza Areas Quantity 1 Unit of Measure Lump Sum Cost /LS $358,946 100.00% Total Cost/Study $358,946 Replacement Year 2019 Future Cost $437,341 This line item is to repair the lower plaza area. The upper plaza repairs were completed with the recent 2009/10 reconstruction project. Cost information is a budget estimate only. Information provided by Cesar Mendes of Draeger Construction. 8 Richard Avelar & Associates 2012 39

Component Listing Included Components 05000 - Roofing 330 - Low Slope: Single Ply Useful 15 52,030 Sq. Ft. Replace, All Buildings Quantity 52,030 Unit of Measure Square Feet This is to re-roof with a single ply roofing product. Cost /SqFt $8.00 100.00% Total Cost/Study $416,240 Replacement Year 2020 Future Cost $519,827 9 Costing provided by State Roofing Systems 702 - Downspouts Useful 25 1,738 Lin. Ft. All Quantity 1,738 Unit of Measure Linear Feet Cost /l.f. $8.80 24 100.00% Total Cost/Study $15,294 Replacement Year 2035 Future Cost $27,663 This line item is for the replacement of downspouts on all residential buildings and the pool house. 802 - Chimney Caps Useful 25 29 All Quantity 29 Unit of Measure Items Cost /Itm $195 19 100.00% Total Cost/Study $5,655 Replacement Year 2030 Future Cost $9,040 This line item is to replace all chimney caps (9 on bldg 1; 13 on bldg 2; 7 on bldg 3) 900 - Roofing: Inspections & Repairs Useful 1 All Buildings Quantity 1 Unit of Measure Lump Sum Cost /LS $2,500 100.00% Total Cost/Study $2,500 Replacement Year 2011 Future Cost $2,500 This is to inspect and perform periodic maintenance as needed to the roofing. 0 Richard Avelar & Associates 2012 40

Component Listing Included Components 08000-240 - Clubhouse Re-Model / Upgrade Useful 7 repair fund Quantity 1 Unit of Measure Fund Cost /Fnd $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2013 Future Cost $2,101 This is a general repair fund established to perform miscellaneous interior clubhouse repairs, as necessary, during the interior painting project. 2 11000-050 - Operators Gate Equipment / Entry System Useful 10 2 Garage Bldg 1 Quantity 2 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operators at garage building 1 Costing provided by Rex Key & Security 100.00% Total Cost/Study $8,344 Replacement Year 2013 Future Cost $8,766 2 051 - Operators Useful 10 Garage Bldg 2 Quantity 1 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operator at garage building 2 Costing provided by Rex Key & Security 100.00% Total Cost/Study $4,172 Replacement Year 2020 Future Cost $5,210 9 052 - Operators Useful 10 Main Entry Gate Quantity 1 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operator at the main entry gate Costing provided by Rex Key & Security 10 100.00% Total Cost/Study $4,172 Replacement Year 2021 Future Cost $5,340 053 - Operators Useful 10 Main Exit Gate Quantity 1 Unit of Measure Items Cost /Itm $4,172 This is to replace the gate control operator at the main exit gate Costing provided by Rex Key & Security 100.00% Total Cost/Study $4,172 Replacement Year 2013 Future Cost $4,383 2 Richard Avelar & Associates 2012 41

Component Listing Included Components 11000 - Gate Equipment / Entry System 104 - Pavement Sensors Useful 20 4 Main Gate Quantity 4 Unit of Measure Items Cost /Itm $990 100.00% Total Cost/Study $3,960 Replacement Year 2014 Future Cost $4,264 3 286 - Swing Gate Useful 30 2 Main Quantity 2 Unit of Measure Items Cost /Itm $2,500 100.00% Total Cost/Study $5,000 Replacement Year 2013 Future Cost $5,253 This is to replace the swing gates at the entry (1 entrance gate, 1 exit gate) 2 290 - Gate Arm Control Assembly Useful 20 2 Swing Arm, Main Gate Quantity 2 Unit of Measure Items Cost /Itm $3,300 100.00% Total Cost/Study $6,600 Replacement Year 2014 Future Cost $7,107 3 Richard Avelar & Associates 2012 42

Component Listing Included Components 11000 - Gate Equipment / Entry System 622 - Keyless Entry System Useful 20 Common Area Doors Quantity 1 Unit of Measure Lump Sum Cost /LS $35,000 19 100.00% Total Cost/Study $35,000 Replacement Year 2030 Future Cost $55,953 624 - Entry Access System Useful 20 Dial Up, Bldg 1 Quantity 1 Unit of Measure Items Cost /Itm $5,004 18 100.00% Total Cost/Study $5,004 Replacement Year 2029 Future Cost $7,805 625 - Entry Access System Useful 20 Dial Up, Bldg 2 Quantity 1 Unit of Measure Items Cost /Itm $5,004 100.00% Total Cost/Study $5,004 Replacement Year 2012 Future Cost $5,129 1 626 - Entry Access System Useful 20 Dial Up, Main Gate Quantity 1 Unit of Measure Items Cost /Itm $5,004 100.00% Total Cost/Study $5,004 Replacement Year 2014 Future Cost $5,389 3 Richard Avelar & Associates 2012 43

Component Listing Included Components 11000 - Gate Equipment / Entry System 780 - Pedestrian Gate Useful 30 6 All Quantity 6 Unit of Measure Items This is to repair the pedestrian gates. Cost /Itm $550 100.00% Total Cost/Study $3,300 Replacement Year 2016 Future Cost $3,734 5 782 - Auto Gate Useful 30 Garage Bldg 2 Quantity 1 Unit of Measure Items Cost /Itm $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2016 Future Cost $1,697 5 783 - Auto Gate Useful 30 Garage Bldg 1 (main gate) Quantity 1 Unit of Measure Items Cost /Itm $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2011 Future Cost $1,500 This line item is for the replacement of the main vehicle gate at Building 1 garage. Per Rex Key & Security this gate has been repaired multiple times and is in need of replacement. 0 Costing provided by Rex Key & Security Richard Avelar & Associates 2012 44

Component Listing Included Components 11000-784 - Auto Gate Gate Equipment / Entry System Useful 30 Garage Bldg 1 (secondary gate) Quantity 1 Unit of Measure Items Cost /Itm $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2011 Future Cost $1,500 This line item is to replace the secondary gate (most commonly used to taking garbage out) at Building 1 garage. Per Rex Key & Security this gate is in need of replacement. Costing provided by Rex Key & Security 0 990 - Miscellaneous Useful 20 4 Receivers Quantity 4 Unit of Measure Items Cost /Itm $605 100.00% Total Cost/Study $2,420 Replacement Year 2014 Future Cost $2,606 This line item is to replace the receivers at all gates (garages and main) 3 12000 - Pool 100 - Re-plaster Useful 12 Quantity 1 Unit of Measure Items Cost /Itm $8,600 10 100.00% Total Cost/Study $8,600 Replacement Year 2021 Future Cost $11,009 This is to resurface the pool. Includes start-up costs. 204 - Coping Useful 3 pool deck Quantity 1 Unit of Measure Lump Sum Costing provided by J & G Services Cost /LS $1,200 100.00% Total Cost/Study $1,200 Replacement Year 2011 Future Cost $1,200 0 Richard Avelar & Associates 2012 45

Component Listing Included Components 12000 - Pool 702 - Filter Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $900 100.00% Total Cost/Study $900 Replacement Year 2012 Future Cost $922 1 Costing provided by J & G Services 704 - Chlorinator Useful 7 Quantity 1 Unit of Measure Items Cost /Itm $450 100.00% Total Cost/Study $450 Replacement Year 2011 Future Cost $450 0 Costing provided by J & G Services 706 - Pumps Useful 7 Quantity 1 Unit of Measure Items Cost /Itm $600 100.00% Total Cost/Study $600 Replacement Year 2013 Future Cost $630 2 Jeff with J & G Services recommends that the Association consider replacing the pump with a Variable Speed Pump for energy efficiency. The cost for such a pump would increase this component cost to $2,000 Costing provided by J & G Services 720 - Heater Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $2,500 100.00% Total Cost/Study $2,500 Replacement Year 2011 Future Cost $2,500 0 This is to replace the pool heater. Costing provided by J & G Services 13000 - Spa 100 - Re-Plaster Useful 12 Quantity 1 Unit of Measure Fund Cost /Fnd $1,200 10 100.00% Total Cost/Study $1,200 Replacement Year 2021 Future Cost $1,536 This is to resurface the spa. 702 - Filter Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $600 100.00% Total Cost/Study $600 Replacement Year 2019 Future Cost $731 8 Costing provided by J & G Services Richard Avelar & Associates 2012 46

Component Listing Included Components 13000 - Spa 704 - Chlorinator Useful 7 Quantity 1 Unit of Measure Items Cost /Itm $450 100.00% Total Cost/Study $450 Replacement Year 2011 Future Cost $450 0 Costing provided by J & G Services 706 - Pumps Useful 7 2 Quantity 2 Unit of Measure Items Cost /Itm $500 This line item is to replace the filtration and the jet pumps (1 each) Costing provided by J & G Services 100.00% Total Cost/Study $1,000 Replacement Year 2014 Future Cost $1,077 3 780 - Heater Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2012 Future Cost $2,050 1 This is to replace the spa heater. Costing provided by J & G Services 14000 - Recreation / Fitness Equipment 100 - Sauna: Heaters Useful 20 Mechanical Quantity 1 Unit of Measure Items This is to replace the sauna heater. Cost /Itm $2,750 100.00% Total Cost/Study $2,750 Replacement Year 2014 Future Cost $2,961 3 Richard Avelar & Associates 2012 47

Component Listing Included Components 14000 - Recreation / Fitness Equipment 140 - Sauna: Wood Replacement Fund Useful 25 376 Sq. Ft. Cedar Quantity 376 Unit of Measure Square Feet Cost /SqFt $27.50 This is to recover and replace the wood kit in the sauna room. 100.00% Total Cost/Study $10,340 Replacement Year 2014 Future Cost $11,135 3 200 - Treadmill Useful 10 Quantity 1 Unit of Measure Items Cost /Itm $4,000 100.00% Total Cost/Study $4,000 Replacement Year 2015 Future Cost $4,415 4 This is to replace the treadmill. 210 - Stationary Bike Useful 12 Upright Quantity 1 Unit of Measure Items This is to replace the Upright stationary bike. Cost /Itm $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2012 Future Cost $2,050 1 211 - Stationary Bike Useful 12 Sit Down Quantity 1 Unit of Measure Items This is to replace the sit down stationary bike. Cost /Itm $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2016 Future Cost $2,263 5 Richard Avelar & Associates 2012 48

Component Listing Included Components 14000-215 - Stair Master Recreation / Fitness Equipment Useful 12 Elliptical Quantity 1 Unit of Measure Items Cost /Itm $4,500 This is to replace the stair master/elliptical style cross trainer machine. 100.00% Total Cost/Study $4,500 Replacement Year 2015 Future Cost $4,967 4 216 - Bar Bells Useful 20 Quantity 1 Unit of Measure Lump Sum Cost /LS $750 12 100.00% Total Cost/Study $750 Replacement Year 2023 Future Cost $1,009 218 - Drinking Fountain Useful 15 Quantity 1 Unit of Measure Items Cost /Itm $1,616 100.00% Total Cost/Study $1,616 Replacement Year 2011 Future Cost $1,616 0 The current drinking fountain is unusable due to low water pressure. It is unclear if this problem is due to the component itself or the plumbing to the component. We recommend that the water fountain be inspected by a professional. The remaining life may need to be adjusted based on further inspection. Costing provided by Waterworks Inc. 220 - Mirrors Useful 30 7 Quantity 7 Unit of Measure Items Cost /Itm $275 100.00% Total Cost/Study $1,925 Replacement Year 2019 Future Cost $2,345 8 Richard Avelar & Associates 2012 49

Component Listing Included Components 14000 - Recreation / Fitness Equipment 220 - Weight Machine (Universal) Useful 20 Universal Gym Quantity 1 Unit of Measure Items This is to replace the universal gym Cost /Itm $4,000 12 100.00% Total Cost/Study $4,000 Replacement Year 2023 Future Cost $5,380 222 - Scale Useful 12 Quantity 1 Unit of Measure Items Cost /Itm $220 100.00% Total Cost/Study $220 Replacement Year 2015 Future Cost $243 4 224 - Work Out Bench Useful 12 Quantity 1 Unit of Measure Items Cost /Itm $220 100.00% Total Cost/Study $220 Replacement Year 2015 Future Cost $243 4 18000 - Landscaping 104 - Irrigation: Controllers Useful 15 3 Quantity 3 Unit of Measure Items This is to replace irrigation controller(s). Cost /Itm $750 100.00% Total Cost/Study $2,250 Replacement Year 2011 Future Cost $2,250 0 200 - Irrigation: Valves Useful 12 24 Quantity 24 Unit of Measure Items This for replacement of the irrigation valves. Cost /Itm $220 100.00% Total Cost/Study $5,280 Replacement Year 2012 Future Cost $5,412 1 300 - Irrigation: Backflow Preventors Useful 20 2 Quantity 2 Unit of Measure Items This is to replace the backflow preventers Cost /Itm $850 100.00% Total Cost/Study $1,700 Replacement Year 2012 Future Cost $1,742 1 Richard Avelar & Associates 2012 50

Component Listing Included Components 19000 - Fencing (Repair/Replace) 100 - Chain Link: 4' Useful 40 188 Lin. Ft. Bldg 3 Quantity 188 Unit of Measure Linear Feet This is to replace the 4' chain link fencing. Cost /l.f. $11.00 13 100.00% Total Cost/Study $2,068 Replacement Year 2024 Future Cost $2,851 110 - Chain Link: 6' Useful 40 500 Lin. Ft. Bldg 3 Quantity 500 Unit of Measure Linear Feet This is to replace the 6' chain link fencing. Cost /l.f. $12.00 13 100.00% Total Cost/Study $6,000 Replacement Year 2024 Future Cost $8,271 200 - Wrought Iron Useful 5 164 Lin. Ft. Pool Fence (25%) Quantity 164 Unit of Measure Linear Feet Cost /l.f. $45.00 Qty * $/l.f. $7,380 25.00% Total Cost/Study $1,845 Replacement Year 2014 Future Cost $1,987 This is a partial replacement line item established for any necessary repairs to the pool fence during every paint cycle. Painting for the fence is established as a separate line item. 3 201 - Wrought Iron Useful 30 40 Lin. Ft. Front Entry Quantity 40 Unit of Measure Linear Feet Cost /l.f. $45.00 100.00% Total Cost/Study $1,800 Replacement Year 2015 Future Cost $1,987 4 202 - Wrought Iron Useful 5 598 Lin. Ft. Garages (25%) Quantity 598 Unit of Measure Linear Feet Cost /l.f. $45.00 Qty * $/l.f. $26,910 25.00% Total Cost/Study $6,728 Replacement Year 2014 Future Cost $7,245 Partial replacement line item established to perform necessary repairs to the fence during every paint cycle. 3 Richard Avelar & Associates 2012 51

Component Listing Included Components 19000 - Fencing (Repair/Replace) 20000 - Lighting 100 - Exterior: Misc. Fixtures Useful 20 4 Pole Lights 5' Quantity 4 Unit of Measure Items Cost /Itm $250 This is to replace the exterior common area pole lights 19 100.00% Total Cost/Study $1,000 Replacement Year 2030 Future Cost $1,599 101 - Exterior: Misc. Fixtures Useful 20 20 Pole Lights 8' Quantity 20 Unit of Measure Items Cost /Itm $550 This is to replace the exterior common area pole lights 19 100.00% Total Cost/Study $11,000 Replacement Year 2030 Future Cost $17,585 102 - Exterior: Misc. Fixtures Useful 20 26 Wall Mounted Lights Quantity 26 Unit of Measure Items Cost /Itm $225 This is to replace the exterior common area wall mounted lights 19 100.00% Total Cost/Study $5,850 Replacement Year 2030 Future Cost $9,352 103 - Exterior: Misc. Fixtures Useful 20 206 Fluorescent Lights Quantity 206 Unit of Measure Items Cost /Itm $175 This is to replace the exterior common area fluorescent lights 19 100.00% Total Cost/Study $36,050 Replacement Year 2030 Future Cost $57,631 Richard Avelar & Associates 2012 52

Component Listing Included Components 20000 - Lighting 104 - Exterior: Misc. Fixtures Useful 20 31 Landscape Lights Quantity 31 Unit of Measure Items Cost /Itm $175 100.00% Total Cost/Study $5,425 Replacement Year 2016 Future Cost $6,138 5 400 - Interior Lights Useful 20 190 Fluorescent Lights Quantity 190 Unit of Measure Items Cost /Itm $155 100.00% Total Cost/Study $29,450 Replacement Year 2015 Future Cost $32,507 4 401 - Interior Lights Useful 20 99 Emergency Lights Quantity 99 Unit of Measure Items Cost /Itm $250 100.00% Total Cost/Study $24,750 Replacement Year 2015 Future Cost $27,319 4 402 - Interior Lights Useful 20 78 Exit Lights Quantity 78 Unit of Measure Items Cost /Itm $185 100.00% Total Cost/Study $14,430 Replacement Year 2015 Future Cost $15,928 4 403 - Interior Lights Useful 20 5 Recessed Lights Quantity 5 Unit of Measure Items Cost /Itm $130 100.00% Total Cost/Study $650 Replacement Year 2015 Future Cost $717 4 404 - Interior Lights Useful 20 48 Surface Lights Quantity 48 Unit of Measure Items Cost /Itm $130 100.00% Total Cost/Study $6,240 Replacement Year 2015 Future Cost $6,888 4 405 - Interior Lights Useful 20 4 Spot Lights Quantity 4 Unit of Measure Items Cost /Itm $130 100.00% Total Cost/Study $520 Replacement Year 2015 Future Cost $574 4 Richard Avelar & Associates 2012 53

Component Listing Included Components 21000 - Signage 100 - Miscellaneous Useful 20 23 Directional & Warning Quantity 23 Unit of Measure Items Cost /Itm $55.00 100.00% Total Cost/Study $1,265 Replacement Year 2017 Future Cost $1,467 6 23000 - Misc. Mechanical Equipment 600 - Water Heater Useful 12 Pool Area Quantity 1 Unit of Measure Items This is to replace the water heater. Cost /Itm $800 100.00% Total Cost/Study $800 Replacement Year 2012 Future Cost $820 1 23500 - Elevator 100 - Cab Refurbish / Upgrade Useful 10 3 All Quantity 3 Unit of Measure Unit Cost /Ut $11,000 100.00% Total Cost/Study $33,000 Replacement Year 2014 Future Cost $35,537 This line item is for the cab enhancement of elevators located in buildings 1, 2 and 3 3 Richard Avelar & Associates 2012 54

Component Listing Included Components 23500 - Elevator 200 - System Modernization Useful 30 3 All Quantity 3 Unit of Measure Unit Cost /Ut $55,000 13 100.00% Total Cost/Study $165,000 Replacement Year 2024 Future Cost $227,454 300 - Load Test Useful 5 All Quantity 1 Unit of Measure Lump Sum Cost /LS $2,740 100.00% Total Cost/Study $2,740 Replacement Year 2015 Future Cost $3,024 This line item is established as a lump sum to perform load tests on all three elevators. Information obtained from Otis Elevator agreement dated August 4, 2010. 4 24000 - Common Area Furnishings / Equipment 100 - Miscellaneous Useful 20 Clubhouse Furnishings Quantity 1 Unit of Measure Lump Sum Cost /LS $13,000 100.00% Total Cost/Study $13,000 Replacement Year 2012 Future Cost $13,325 This is a provision for furniture and equipment replacement within the clubhouse 1 914 - Pool/Spa Furnishings Useful 8 All Quantity 1 Unit of Measure Lump Sum Cost /LS $3,000 100.00% Total Cost/Study $3,000 Replacement Year 2014 Future Cost $3,231 This line item is to replace the chairs (lounge and upright) along with the pool area safety equipment. 3 Richard Avelar & Associates 2012 55

Component Listing Included Components 25000 - Flooring 200 - Carpeting Useful 15 1,120 Sq. Ft. Bridge Quantity 1,120 Unit of Measure Square Feet This is to replace the carpeting in the bridge area Cost /SqFt $5.75 100.00% Total Cost/Study $6,440 Replacement Year 2016 Future Cost $7,286 5 201 - Carpeting Useful 15 1,370 Sq. Ft. Clubhouse Quantity 1,370 Unit of Measure Square Feet This is to replace the carpeting in the Clubhouse Cost /SqFt $5.75 100.00% Total Cost/Study $7,878 Replacement Year 2016 Future Cost $8,913 5 202 - Carpeting Useful 15 494 Sq. Ft. Fitness Room Quantity 494 Unit of Measure Square Feet This is to replace the carpeting in the Fitness Room Cost /SqFt $5.75 100.00% Total Cost/Study $2,841 Replacement Year 2016 Future Cost $3,214 5 203 - Carpeting Useful 15 3,996 Sq. Ft. Hallways, Bldg 1 Quantity 3,996 Unit of Measure Square Feet This is to replace the carpeting in the Hallways Cost /SqFt $5.75 100.00% Total Cost/Study $22,977 Replacement Year 2016 Future Cost $25,996 5 204 - Carpeting Useful 15 8,280 Sq. Ft. Hallways, Bldg 2 Quantity 8,280 Unit of Measure Square Feet This is to replace the carpeting in the Hallways Cost /SqFt $5.75 100.00% Total Cost/Study $47,610 Replacement Year 2016 Future Cost $53,866 5 Richard Avelar & Associates 2012 56