ASSOCIATION OF UNIT OWNERS OF FOUNTAINS AT SUMMERFIELD CONDOMINIUMS MAINTENANCE PLAN UPDATE RESERVE STUDY LEVEL II: UPDATE WITH VISUAL SITE INSPECTION

Transcription

1 ASSOCIATION OF UNIT OWNERS OF FOUNTAINS AT SUMMERFIELD CONDOMINIUMS MAINTENANCE PLAN UPDATE RESERVE STUDY LEVEL II: UPDATE WITH VISUAL SITE INSPECTION (503) PAGE 1 of 73

2 䴀攀 洀戀攀 爀 猀漀昀琀 栀攀䄀猀 猀 漀挀 椀 愀琀 椀 漀渀漀昀 倀爀 漀昀 攀 猀 猀 椀 漀渀愀氀 刀攀 猀 攀 爀 瘀 攀䄀渀愀氀 礀 猀 琀 猀 刀攀 猀 攀 爀 瘀 攀匀 瀀攀 挀 椀 愀氀 椀 猀 琀 搀攀 猀 椀 最渀愀琀 椀 漀渀昀 爀 漀洀 䌀䄀䤀 ASSOCIATION OF UNIT OWNERS OF FOUNTAINS AT SUMMERFIELD CONDOMINIUMS Executive Summary Year of Report: January 1, 2018 to December 31, 2018 Number of Units: 110 Units Parameters: Beginning Balance: $650,000 Year 2018 Suggested Contribution: $90,000 Year 2018 Projected Interest Earned: $278 Inflation: 2.50% Annual Increase to Suggested Contribution: 10.00% Lowest Cash Balance Over 30 Years (Threshold): $67,083 Average Reserve Assessment per Unit: $68.18 Prior Year s Actual Contribution: $84,000 㐀 㜀匀圀 䌀伀刀䈀䔀吀吀䄀嘀䔀一唀䔀 倀伀刀吀䰀䄀一䐀Ⰰ伀刀㤀㜀 㤀 栀匀吀刀䔀䔀吀Ⰰ匀吀䔀 㤀 一䔀㠀琀 䈀䔀䰀䰀䔀嘀唀䔀Ⰰ圀䄀㤀㠀 㐀 倀䴀䈀 㘀 㔀 㜀 㘀㔀瀀栀漀渀攀昦㔀 㜀 㐀 昀 愀砀 爀 猀 猀 䀀猀 挀 栀眀椀 渀搀琀 挀 漀 挀 漀洀 PAGE 2 of 73

3 TABLE OF CONTENTS Association of Unit Owners of Fountains at Summerfield Condominiums Disclosure Information 4 of 73 MAINTENANCE PLAN Maintenance Plan 9 of 73 RESERVE STUDY Property Description 17 of 73 Cash Flow Method - Threshold Funding Model Summary 21 of 73 Cash Flow Method - Threshold Funding Model Projection 22 of 73 Component Summary By Category 23 of 73 Component Summary By Group 26 of 73 Annual Expenditure Detail 28 of 73 Detail Report by Category 34 of 73 Annual Expenditure Spread Sheet 60 of 73 Additional Disclosures 69 of 73 PAGE 3 of 73

4 䴀攀 洀戀攀 爀 猀漀昀琀 栀攀䄀猀 猀 漀挀 椀 愀琀 椀 漀渀漀昀 倀爀 漀昀 攀 猀 猀 椀 漀渀愀氀 刀攀 猀 攀 爀 瘀 攀䄀渀愀氀 礀 猀 琀 猀 刀攀 猀 攀 爀 瘀 攀匀 瀀攀 挀 椀 愀氀 椀 猀 琀 搀攀 猀 椀 最渀愀琀 椀 漀渀昀 爀 漀洀 䌀䄀䤀 Association of Unit Owners of Fountains at Summerfield Condominiums Maintenance Plan Update Reserve Study Update Offsite Disclosure Information 2018 We have conducted an offsite reserve study update and maintenance plan update for Association of Unit Owners of Fountains at Summerfield Condominiums for the year beginning January 1, 2018, in accordance with guidelines established by Community Associations Institute and the American Institute of Certified Public Accountants. This reserve study and maintenance plan are in compliance with the legislative changes made in 2007 to ORS Chapters 94 and 100. In addition to providing the reserve study and maintenance plan, we also provide tax and review/audit services to the Association. Schwindt & Company believes that every association should have a complete building envelope inspection within 12 months of completion of all construction and every 5 years. This inspection must be performed by a licensed building envelope inspector. Ongoing inspections of the property should be performed by a licensed inspector, with the exception of a roof inspection which may be performed by a licensed roofing contractor. Assumptions used for inflation, interest, and other factors are detailed in page 21. Income tax factors were not considered due to the uncertainty of factors affecting net taxable income and the election of tax form to be filed. Due to increased building activity we have seen a dramatic increase in certain vendor pricing during 2016 and However, it currently is not known if this is a temporary or permanent increase. We will monitor these costs on a go forward basis. Associations should have a complete building envelope study conducted every 3-5 years. If the Association chooses not to engage a qualified engineer or architect to perform a building envelope inspection, the Association should be 100% funded using the fully funded method of funding to insure funds are available to pay for unexpected costs David T. Schwindt, the representative in charge of this report, is a designated Reserve Study Specialist, Professional Reserve Analyst, and Certified Public Accountant licensed in the states of Oregon, Washington, California, and Arizona. All information regarding the useful life and cost of reserve components was derived from the Association, local venders, and/or from various construction pricing and scheduling manuals. The terms RS Means, National Construction Estimator, and Fannie Mae Expected Useful Life Tables and Forms refer to construction industry estimating databases that are used throughout the industry to establish cost estimates and useful life estimates for common building components and products. We suggest that the Association obtain firm bids for these services. 㐀 㜀匀圀 䌀伀刀䈀䔀吀吀䄀嘀䔀一唀䔀 倀伀刀吀䰀䄀一䐀Ⰰ伀刀㤀㜀 㤀 栀匀吀刀䔀䔀吀Ⰰ匀吀䔀 㤀 一䔀㠀琀 䈀䔀䰀䰀䔀嘀唀䔀Ⰰ圀䄀㤀㠀 㐀 倀䴀䈀 㘀 㔀 㜀 㘀㔀瀀栀漀渀攀昦㔀 㜀 㐀 昀 愀砀 爀 猀 猀 䀀猀 挀 栀眀椀 渀搀琀 挀 漀 挀 漀洀 PAGE 4 of 73

5 According to Section 5.2 of the Declaration, the windows, windows frames, doors and door frames are part of the unit. According to Section 6 of the Declaration, the General Common Elements include the land, pathways, driveways, parking spaces, perimeter walls, main walls, roofs, halls, corridors, lobbies, stair, fire escapes, entrances and exits of the buildings, and all other items necessary of convenient to its existence, maintenance and safety, or normally in common use. According to Section 6.2 of the Declaration, the Limited Common Elements include the patios and deck adjoined to the units. According to Section 6.5 of the Declaration, the maintenance, repair and replacement of the commons elements shall be the responsibility of the Board of Directors of the Association. According to the Association, the insurance deductible is included in the operating budget. The Association has elected to provide certain information to Schwindt & Co to allow Schwindt & Co to perform a lessor level of assurance with respect to the reserve study. Factual data may include measurements, component listings and other relevant information. As such, Schwindt & Co accepts no responsibility for such information. Had we performed a level I reserve study, Schwindt & Co would have collected and analyzed such data and would have taken responsibility for the presentation of the reserve study taken as a whole. Many reserve studies do not include components such as the structural building envelope, plumbing (including water supply and piping), electrical systems and water/sewer systems because they are deemed to be beyond the usual 30 year threshold and reserve study providers are generally not experts in determining the estimated useful lives and replacement costs of such assets. Associations that are 20+ in age should consider adding funding for these components because the eventual cost may be one of the largest expenditures in the study. Because the eventual replacement costs and determination of the estimated useful life of such components depend on a number of factors, it is advisable to hire experts to advise the Association on such matters. Schwindt & Co believes the best way to determine costs and lives associated with these components is to perform an inspection of the applicable components which should include information about the component, steps to take to lengthen the estimated useful life, projected estimated useful life and estimated replacement costs. This inspection should be conducted by experts and should include a written report. This information will allow the reserve study provider and the Association to include appropriate costs, lives and projected expenditures in the study. Schwindt & Co believes that the cost of these inspections should be included in the reserve study as a funded component. We are not aware of any material issues which, if not disclosed, would cause a material distortion of this report. Certain information, such as the beginning balance of reserve funds and other information as detailed on the component detail reports, was provided by Association representatives and is deemed to be reliable by us. This reserve study is a reflection of the information provided to us and cannot be used for the purpose of performing an audit, a quality/forensic analysis, or background checks of historical records. Site visits should not be considered a project audit or quality inspection of the Association s property. This site visit does not evaluate the condition of the property to determine the useful life or needed repairs. Schwindt & Company suggests that the Association perform a building envelope inspection to determine the condition, performance, and the useful life of all the components. Certain costs outlined in the reserve study are subjective and, as a result, are for planning purposes only. The Association should obtain firm bids at the time of work. Actual costs will depend upon the scope of work as defined at the time the repair, replacement, or restoration is performed. All estimates relating to future work are good faith estimates and projections are based on the estimated inflation rate, which may or may not prove accurate. All future costs and life expectancies should be reviewed and adjusted annually. This reserve study, unless specifically stated in the report, assumes no fungi, mold, asbestos, lead paint, urea-formaldehyde foam insulation, termite control substances, other chemicals, toxic wastes, radon gas, electro-magnetic radiation or other potentially hazardous materials (on the surface or sub-surface), or termites on the property. The existence of any of these substances may adversely affect the accuracy of this reserve study. Schwindt & Company assumes no responsibility regarding such conditions, as we are not qualified to detect substances, determine the impact, or develop remediation plans/costs. PAGE 5 of 73

6 Since destructive testing was not performed, this reserve study does not attempt to address latent and/or patent defects. Neither does it address useful life expectancies that are abnormally short due either to improper design, installation, nor to subsequent improper maintenance. This reserve study assumes all components will be reasonably maintained for the remainder of their life expectancy. Physical Analysis: New projects generally include information provided by developers and/or refer to drawings. Full onsite reserve studies generally include field measurements and do not include destructive testing. Drawings are usually not available for existing projects. Onsite updates generally include observations of physical characteristics, but do not include field measurements. Please note that the Association has not had a complete building envelope inspection. The effects of not having information relating to this inspection are not known. The client is considered to have deemed previously developed component quantities as accurate and reliable. The current work is reliant on the validity of prior reserve studies. This reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require homeowners to pay on demand (as a special assessment) their share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component. PAGE 6 of 73

7 ASSOCIATION OF UNIT OWNERS OF FOUNTAINS AT SUMMERFIELD CONDOMINIUMS MAINTENANCE PLAN 2018 PAGE 7 of 73

8 Executive Summary of Maintenance Plan Regular maintenance of common elements is necessary to insure the maximum useful life and optimum performance of components. Of particular concern are items that may present a safety hazard to residents or guests if they are not maintained in a timely manner and components that perform a water-proofing function. This maintenance plan is a cyclical plan that calls for maintenance at regular intervals. The frequency of the maintenance activity and the cost of the activity at the first instance follow a short descriptive narrative. This maintenance plan should be reviewed on an annual basis when preparing the annual operating budget for the Association. Checklists, developed by Reed Construction Data, Inc., can be photocopied or accessed from the RS Means website: They can be used to assess and document the existing condition of an Association s common elements and to track the carrying out of planned maintenance activities. PAGE 8 of 73

9 Maintenance Plan 2018 Pursuant to Oregon State Statutes Chapters 94 and 100, which require a maintenance plan as an integral part of the reserve study, the maintenance procedures are as follows: The Board of Directors should refer to this maintenance plan each year when preparing the annual operating budget for the Association to ensure that annual maintenance costs are included in the budget for the years that they are scheduled. Property Inspection Schwindt & Company recommends that a provision for the annual inspection of common area components be included in the maintenance plan for all associations. This valuable management tool will help to ensure that all components achieve a maximum useful life expectancy and that they function as intended throughout their lifespan. This inspection process should include a careful visual review of the waterproofing membrane on the unit balconies. The inspection should be performed by a qualified professional and should include a written summary of conclusions with specific recommendations for any needed repairs or maintenance. We suggest that the Association obtain firm bids for this service. This expense should be included in the annual operating budget for the Association. Building Envelope Inspection Frequency: Annually Schwindt & Company recommends that all associations perform a building envelope inspection within 12 months of substantial completion of all construction or immediately upon detection of any water intrusion or mold problems. This inspection process may involve invasive testing if the problems detected are serious enough to warrant such measures. The inspection should be performed by an architect, engineer, or state-licensed inspector who is specifically trained in forensic waterproofing analysis. The report should include a written summary of findings with recommendations for needed repairs or maintenance procedures. All reserve studies and maintenance plans prepared by Schwindt & Company assume that any such recommendations will be followed and that all work will be performed by qualified professionals. A complete envelope inspection will usually be required only one time although a visual review of the building exterior may be advisable on a periodic basis under certain circumstances. The Association should consult with the inspector(s) who performed the original assessment to determine the best course PAGE 9 of 73

10 of action for their individual situation. We suggest that the Association obtain firm bids for this service. Roof Inspection Frequency: Every 5 years Schwindt & Company recommends that a provision for the periodic inspection and maintenance of roofing and related components be included in the maintenance plan for all associations. The frequency of this inspection will vary based on the age, condition, complexity, and remaining useful life of the roof system. As the roof components become older, the Association is well advised to consider increasing the frequency of this critical procedure. The inspection should be performed by a qualified roofing professional and should include a written summary of conclusions with specific recommendations for any needed repairs or maintenance. Recommended maintenance should be performed promptly by a licensed roofing contractor. We suggest that the Association obtain firm bids for this service. This expense should be included in the annual operating budget for the Association. Frequency: Refer to roof warranty for frequency Lighting: Exterior & Common Area Interior Inspection/Maintenance Note: Replacement of flickering or burned-out bulbs or lamps should be immediate. Lighting is a crucial element in the provision of safety and security. All lighting systems should be inspected frequently and care must be taken to identify and correct deficiencies. Various fixture and lamp types may be used according to area needs. Lighting systems should be designed to provide maximum, appropriate illumination at minimal energy expenditures. Lighting maintenance processes should include a general awareness of factors that cause malfunctions in lighting systems, such as dirt accumulation and lumen depreciation. It is important to fully wash, rather than drywipe, exterior surfaces to reclaim light and prevent further deterioration. Deficiencies, required maintenance, and required repairs after completion of the review should be noted by the maintenance contractor and/or association representatives. Repairs and inspections should be completed by a qualified professional. This expense should be included in the annual operating budget for the Association as general property maintenance expense. Frequency: Bi-Weekly PAGE 10 of 73

11 Exterior Stairs and Decks Individual decks should be carefully checked, particularly concrete and wood, on a monthly basis. Concrete should be reviewed for deficiencies such as alkali-aggregate expansion, honeycombing, chips, cracks, stains, lifted areas, tripping hazards, and/or unevenness. Railings should be reviewed for stability, hardware, and overall condition. Wood should be reviewed for deficiencies, such as dry rot, termites, instability, worn edges, cracks, holes and splintering. Footing/foundation should be reviewed for stability and overall condition deficiencies, such as cracks and broken or missing components. A safety review should include, but not be limited to, the sufficient distance maintained between flammables and other surfaces, as well as the overall condition of access points such as doors, windows, screens and thresholds. Windows & Doors Frequency: Monthly The performance of and payment for the maintenance and repairs of windows and doors is solely the responsibility of the owners. Owners should be made aware of the consequence of not maintaining their property. A method should be adopted for owners to report problems. Exterior window and door casings, sashes, and frames should be inspected annually for twisting, cracking, deterioration, or other signs of distress. Hardware and weather stripping should be checked for proper operation and fit. Gaskets and seals should be reviewed for signs of moisture intrusion. Weep holes should be cleaned. These building envelope components should be repaired and replaced as necessary. Gutters & Downspouts Frequency: Monthly Schwindt & Company recommends that all gutters and downspouts be cleaned, visually inspected, and repaired as required every six months in the spring and fall. This important maintenance procedure will help to ensure that the gutters and downspouts are freeflowing at all times, thus preventing the backup of water within the drainage system. Such backup can lead to water ingress issues along the roof edges, around scuppers or other roof penetrations, and at sheet metal flashing or transition points that rely on quick and continuous discharge of water from surrounding roof surfaces to maintain a watertight building exterior. This expense should be included in the annual operating budget for the Association. Exterior Walls Frequency: Semiannually, more often if necessary The siding, trim, and other wood building components should be inspected for loose, missing, cracked or otherwise damaged components. Sealant joints should be checked for missing or cracked sealant. PAGE 11 of 73

12 Painted surfaces should be checked for paint deterioration, bubbling, or other signs of deterioration. Dryer vents should be checked twice a year and cleared of lint. Also check operation of exhaust baffles to make sure they are present and that they move freely. Exhaust ducts should be cleared of debris every 3 years. The payment for maintenance and the performance of maintenance repair of dryer vents, exhaust baffles, and exhaust ducts is solely the responsibility of the owners. Any penetrations of the building envelope such as utility lines and light fixtures should be checked annually for signs of water intrusion. Hose bibs should be checked for leaks and other failures. Each hose bib should be shut off and drained during the winter to prevent damage from freezing. The payment for and performance of maintenance and repair of all outlets of utility service lines, including water, sewerage, gas or electricity is solely the responsibility of the Owners. Annual inspections to check for signs of water intrusion should be made of the building envelope interfaces such as where the windows intersect with the walls and where the walls intersect with the roof. Deficiencies, required maintenance, and required repairs after completion of the review should be noted by the maintenance contractor and/or association representatives. Inspections should be made by a qualified professional. This expense should be included in the annual operating budget for the Association. Landscape Maintenance Frequency: Annually The Association will be responsible for maintenance and upkeep of common area landscape throughout the property. This may include mowing lawn, removal of weeds, and dead-heading of flowers. Landscape techniques vary depending on the foliage and season. We suggest that the Association obtain firm bids for this service. This expense should be included in the Association s operating budget. Lawn Irrigation System Frequency: Annually Periodic maintenance to the lawn irrigation system should be anticipated with this type of component. These maintenance procedures will include replacement of the control mechanism, replacement of damaged piping, upgrading of sprinkler heads and valve components, and any other work that is advised by repair professionals. PAGE 12 of 73

13 In recent years, improvements have been made to this type of system which has increased the efficiency of the water distribution process. Such improvements can be expected to continue to be made and the owners of such systems are well advised to plan on periodic upgrades to maintain the efficiency of their systems. Lawn irrigation systems also require periodic testing to ensure proper operation. Sometimes this testing is mandated by ordinance or building codes. All work on lawn irrigation systems must be performed by licensed contractors who specialize in this type of work. This expense should be included in the annual operating budget for the Association. Storm Drains Frequency: Annually Storm drains or sewers are underground systems used to collect and dispose of surface water. They carry large quantities of water away from paved surface areas, and should be kept clean to prevent the accumulation of dirt and debris. They should be cleaned and flushed annually to ensure blockages are removed and piping is functional. If drains tend to become clogged frequently, they should be inspected and cleaned more often. Deficiencies, required maintenance, and required repairs after completion of the review should be noted by the maintenance contractor and/or association representatives. This expense should be included in the annual operating budget for the Association as a general property maintenance expense. Exterior Sealant Frequency: Annually Sealant acts as a water shedding surface at the exterior face of assemblies and plays a vital role in prevention of water intrusion at building interfaces and transitions. Sealant is also applied at electrical and mechanical penetrations, flashing transitions, and deck and roof transitions. Maintenance of the exterior sealant includes inspection of all exterior sealant for discontinuities, debonding, cracking, etc. Review cladding and fasteners to confirm that corrosion is not present. Provide maintenance and repairs. This expense is included in the reserve study for the Association. Exterior Siding Maintenance Painting Frequency: Every 11 years, beginning in 2019 Maintenance of the exterior siding includes regularly scheduled cleaning and inspection of the surface areas for cracks, peeling paint or other sealants, deterioration of the base material, and failure of caulking PAGE 13 of 73

14 or other sealant materials that serve a waterproofing function. This maintenance provision is for the periodic painting of the exterior siding. The siding should be cleaned, repaired as required, and primed and painted with premium quality exterior house paint in accordance with the siding manufacturer s specifications. The work should be performed by a qualified, licensed painting contractor. This expense is included in the reserve study for the Association. Asphalt Seal Coating Frequency: Every 11 years, beginning in 2019 Maintenance of asphalt paving includes the periodic application of an asphalt emulsion sealer or seal coat. This procedure is typically performed every 4 to 7 years, depending on a variety of factors that can affect the useful life of the sealer. Vehicle traffic is one such factor, and associations that have asphalt paving that carries considerable vehicle traffic should consider a maintenance program that calls for seal coating of asphalt driving surfaces as frequently as every 4 years. This maintenance procedure involves thoroughly cleaning all pavements, filling of any surface cracks and patching of any locally damaged pavement surfaces. The emulsion sealer is then applied. Parking area demarcation lines will need to be renewed each time a seal coat is applied. The component expense includes the cost of this work as well as the seal coating cost. This work should be performed by a licensed paving contractor. This expense is included in the reserve study for the Association. Elastomeric Deck Maintenance Frequency: Every 6 years, beginning in 2018 Maintenance of the decks includes cleaning, repairing, and applying a top coat to the exposed surfaces with appropriate sealer. Drains should be cleaned and checked for free flow. Flashings, grout and other water resistive details should be renewed as needed to ensure that the tiled surface areas on the decks remain water-tight. This work should be performed by a licensed contractor. This expense is included in the reserve study for the Association. Backflow Device Maintenance Frequency: Every 15 years, beginning in 2020 PAGE 14 of 73

15 Maintenance of the backflow device and components related to the water system includes, but is not limited to, inspecting for leaks under pressure and checking for damage or deterioration. Annual maintenance on the backflow device includes the testing and calibrating of valve operation. Air should be bled from the backflow preventer and the area should be cleaned. Inspections and maintenance should be performed by a qualified, licensed service provider. Deficiencies, required maintenance, and required repairs after completion of the review should be noted by the maintenance contractor and/or association representatives. This maintenance item should be included in the Association s annual operating budget. Attic Spaces Frequency: Annually Attic should be inspected annually to make sure all vents are free of obstructions and exhaust ducts are tight lined to the exterior. Owners should consult a professional if mold is detected. Owners should consult a professional if water related damage is discovered. Concrete Pavement Frequency: Annually Maintenance of the concrete pavement should include cleaning the surface areas with pressure washing equipment. The pavement should also be visually reviewed for signs of undue stress and cracking. Noticeable cracks should be filled with a suitable concrete crack filler to prevent penetration of moisture below the concrete surface which will undermine the integrity of the base material over time. This maintenance item should be included in the Association s annual operating budget. Frequency: Annually This maintenance plan is designed to preserve and extend the useful life of assets and is dependent upon proper inspection and follow up procedures. PAGE 15 of 73

16 ASSOCIATION OF UNIT OWNERS OF FOUNTAINS AT SUMMERFIELD CONDOMINIUMS RESERVE STUDY LEVEL II: UPDATE WITH VISUAL SITE INSPECTION 2018 PAGE 16 of 73

17 Property Description Association of Unit Owners of Fountains at Summerfield Condominiums consists of 19 buildings with 110 units located in Tigard, Oregon. The buildings are two stories, of wood frame construction with brick veneer and wood siding with a composition roof. The Association was built in The Association shall provide exterior improvements upon each unit, such as paint, maintenance, repair and replacement of roofs, gutters, downspouts, rain drains, and exterior building surfaces. The individual homeowners are responsible for all maintenance and repairs to the interior of their home. A site visit was performed by Schwindt & Company in Schwindt & Co did not investigate components for defects, materials, design or workmanship. This would ordinarily be considered in a complete building envelope inspection. Our condition assessment considers if the component is wearing as intended. All components are considered to be in fair condition and appear to be wearing as intended unless noted otherwise in the component detail. Funds are being accumulated in the replacement fund based on estimates of future need for repairs and replacement of common property components. Actual expenditures, investment income, and provisions for income taxes however, may vary from estimated amounts, and variations may be material. Therefore, amounts accumulated in the replacement fund may not be adequate to meet future funding needs. If additional funds are needed, the Association has the right, subject to board member approval, to increase regular assessments, levy special assessments, otherwise the Association may delay repairs or replacements until funds are available. PAGE 17 of 73

18 Category Detail Index Asset IDDescription Replacement Page Building Cladding Components - Masonry 1001 Brick Masonry Veneer Unfunded 34 of 73 Building Cladding Components - Painting and Sealants 1008 Caulking & Joint Sealant of Exterior Siding - Painting/Repair of 73 Building Cladding Components - Roofing 1010 Composition Roof: Phase 1 - Replacement of Composition Roof: Phase 2 - Replacement of Composition Roof: Phase 3 - Replacement of Composition Roof: Phase 4 - Replacement of Composition Roof: Phase 5 - Replacement of Rain Gutters & Downspouts: Phase 1 - Replacement of Rain Gutters & Downspouts: Phase 2 - Replacement of Rain Gutters & Downspouts: Phase 3 - Replacement of Rain Gutters & Downspouts: Phase 4 - Replacement of Rain Gutters & Downspouts: Phase 5 - Replacement of Roof & Flashing - Repair of Sheet Metal Flashing & Trim - Replacement of 73 Decks and Railings 1024 Brick Clad Deck Support Posts: Phase 1 - Replacem.. Unfunded 41 of Brick Clad Support Posts: Phase 2 - Replacement Unfunded 41 of Deck - Repair & Replacement of Deck Coatings - Renewal of 73 Exterior Openings - Lobbies 1030 Metal Doors Hardware - Replacement of Metal Doors and Frames - Replacement of 73 Interior Finishing - Lobbies 1036 Carpeting - Replacement of Interior Hand Rails - Replacement of Interior Paint of 73 PAGE 18 of 73

19 Category Detail Index Asset IDDescription Replacement Page Interior Finishing - Lobbies Continued Interior Stair Banisters - Replacement Unfunded 45 of 73 Garages and Trash Corrals 1007 Garage Repair/Painting (27) of Wood Doors Hardware: Phase 1 - Replacement Unfunded 46 of Wood Doors Hardware: Phase 2 - Replacement Unfunded 47 of Wood Doors and Frames: Phase 1 - Replacement Unfunded 47 of Wood Doors and Frames: Phase 2 - Replacement Unfunded 48 of Wood Fencing - Trash Corrals (11) of 73 Site Specialties 1039 Building Labeling Signage - Replacement of Monument Sign - Replacement Unfunded 49 of 73 Lighting Fixtures 1041 Interior Lighting Lobbies - Replacement of Landscaping Lighting - Replacement of Site & Parking Lighting - Repair Unfunded 50 of 73 Exterior Improvements 1044 Asphalt Parking - Overlay of Asphalt Parking - Sealants Sealer/Repair of Concrete Entry Porches - Repair of Concrete Flatwork - Repairs of Concrete Flatwork - Repairs of Fountain Head - Replacement of Fountain Improvements of Fountain Pumps & Filters - Replacement of Irrigation Controllers - Replacement of Irrigation Systems - Repair of Landscaping - Improvements of Landscaping - Improvements of Landscaping - Improvements of 73 PAGE 19 of 73

20 Category Detail Index Asset IDDescription Replacement Page Consultant Fees Building Envelope Inspection of 73 Electrical Inspection of 73 Plumbing Inspection of Reserve Study Update - Offsite of Reserve Study Update - Onsite of 73 Total Funded Assets 44 Total Unfunded Assets 10 Total Assets 54 PAGE 20 of 73

21 Tigard, Oregon Cash Flow Method - Threshold Funding Model Summary Report Date March 27, 2018 Budget Year Beginning January 01, 2018 Budget Year Ending December 31, 2018 Total Units 110 Report Parameters Inflation 2.50% Interest Rate on Reserve Deposit 0.10% 2018 Beginning Balance $650,000 Threshold Funding Fully Reserved Model Summary This study utilizes the cash flow method and the threshold funding model, which establishes a reserve funding goal that keeps the reserve balance above a specified dollar or percent funded amount. The threshold method assumes that the threshold method is funded with a positive threshold balance, therefore, "fully reserved". The following items were not included in the analysis because they have useful lives greater than 30 years: grading/drainage; foundation/footings; storm drains; telephone, cable, and internet lines. This funding scenario begins with a contribution of $90,000 in 2018 and increases 10.00% each year until In 2031 the contribution is $110,000 and remains constant for the remaining years of the study. A minimum balance of $67,083 is maintained. The reserve study cash flow model includes an annual increase in the required contribution over the 30 year period. Since the current Board and membership only has the authority to obligate the Association for the current budget year, the cash flow model relies on the actions of future Boards to adhere to the required increase in the annual reserve contribution. Because of the possibility that future Boards, due to budgetary constraints, are not able to increase the reserve contribution to the required amount to provide for adequate funding, the Association may be at risk in the future of special assessing the members to fund needed expenditures. The purpose of this study is to insure that adequate replacement funds are available when components reach the end of their useful life. Components will be replaced as required, not necessarily in their expected replacement year. This analysis should be updated annually. Cash Flow Method - Threshold Funding Model Summary of Calculations Required Month Contribution $7, $68.18 per unit monthly Average Net Month Interest Earned $23.15 Total Month Allocation to Reserves $7, $68.39 per unit monthly PAGE 21 of 73

22 Cash Flow Method - Threshold Funding Model Projection Beginning Balance: $650,000 Projected Fully Annual Annual Annual Ending Funded Percent Year Contribution Interest Expenditures Reserves Reserves Funded , , ,161 1,274,677 25% , , ,657 1,295,110 23% , , ,458 1,401,720 25% , , ,685 1,540,197 30% , ,057 1,693,019 35% , , ,443 1,848,687 40% , , ,495 1,844,720 39% , , ,661 1,713,913 35% , , ,140 1,511,249 28% , , ,111 1,253,931 18% , , ,528 1,087,072 12% , ,225 67, ,644 7% , , , ,272 12% , , , ,944 17% , , ,897 1,148,946 23% , , ,755 1,195,053 20% , , ,790 1,390,176 25% , , ,518 1,559,100 27% , , ,852 1,679,715 26% , , ,071 1,732,831 22% , , ,034 1,947,822 25% , , ,153 2,183,479 27% , , ,577 2,416,627 28% , , ,002 2,353,142 21% , , ,291 2,504,027 19% , , ,954 2,683,006 19% , , ,819 2,947,180 21% , , ,756 3,152,608 20% , , ,736 3,415,757 21% , , ,781 3,551,815 18% PAGE 22 of 73

23 Component Summary By Category Description Date in Service Building Cladding Components - Masonry Brick Masonry Veneer Unfunded Year Replacement Useful Adjustment Remaining Units Cost Unit Cost Current Building Cladding Components - Painting and Sealants Caulking & Joint Sealant Total 45, ,177 Exterior Siding - Painting/Repair ,400 SF ,600 Building Cladding Components - Painting and Sealants - Total $117,777 Building Cladding Components - Roofing Composition Roof: Phase 1 - Replacement ,540 SF ,472 Composition Roof: Phase 2 - Replacement ,540 SF ,472 Composition Roof: Phase 3 - Replacement ,540 SF ,472 Composition Roof: Phase 4 - Replacement ,540 SF ,472 Composition Roof: Phase 5 - Replacement ,540 SF ,472 Rain Gutters & Downspouts: Phase 1 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 2 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 3 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 4 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 5 - Rep Total 13, ,214 Roof & Flashing - Repair Total 34, ,730 Sheet Metal Flashing & Trim - Replacement ,635 LF ,946 Building Cladding Components - Roofing - Total $1,251,108 Decks and Railings Brick Clad Deck Support Posts: Phase Unfunded Brick Clad Support Posts: Phase 2 - Replac.. Unfunded Deck - Repair & Replacement Total 250, ,000 Deck Coatings - Renewal ,500 SF ,500 Decks and Railings - Total $340,500 Exterior Openings - Lobbies Metal Doors Hardware - Replacement Each ,884 Metal Doors and Frames - Replacement Each ,574 Exterior Openings - Lobbies - Total $30,458 Interior Finishing - Lobbies Carpeting - Replacement ,150 SF ,990 Interior Hand Rails - Replacement Each ,990 Interior Paint ,360 SF ,334 Interior Stair Banisters - Replacement Unfunded Interior Finishing - Lobbies - Total $77,315 PAGE 23 of 73

24 Component Summary By Category Description Garages and Trash Corrals Date in Service Year Replacement Useful Garage Repair/Painting (27) ,000 SF ,500 Wood Doors Hardware: Phase 1 - Replace.. Unfunded Wood Doors Hardware: Phase 2 - Replace.. Unfunded Wood Doors and Frames: Phase 1 - Replac.. Unfunded Wood Doors and Frames: Phase 2 - Replac.. Unfunded Wood Fencing - Trash Corrals (11) LF ,699 Garages and Trash Corrals - Total $78,199 Adjustment Remaining Units Cost Unit Cost Current Site Specialties Building Labeling Signage - Replacement Each ,365 Monument Sign - Replacement Unfunded Site Specialties - Total $17,365 Lighting Fixtures Interior Lighting Lobbies - Replacement Each ,473 Landscaping Lighting - Replacement Each ,093 Site & Parking Lighting - Repair Unfunded Lighting Fixtures - Total $8,566 Exterior Improvements Asphalt Parking - Overlay ,616 SF ,232 Asphalt Parking - Sealants Sealer/Repair ,616 SF ,124 Concrete Entry Porches - Repair Each 1, ,821 Concrete Flatwork - Repairs Total 11, ,859 Concrete Flatwork - Repairs Total 3, ,085 Fountain Head - Replacement Each ,705 Fountain Improvements Total 31, ,836 Fountain Pumps & Filters - Replacement Each ,705 Irrigation Controllers - Replacement Total 6, ,247 Irrigation Systems - Repair Total 4, ,728 Landscaping - Improvements Total 30, ,750 Landscaping - Improvements Total 18, ,523 Landscaping - Improvements Total 11, ,019 Exterior Improvements - Total $323,632 Consultant Fees Building Envelope Inspection Total 5, ,000 Electrical Inspection Total 5, ,000 Plumbing Inspection Total 5, ,000 Reserve Study Update - Offsite Total Reserve Study Update - Onsite Total 1, ,389 Consultant Fees - Total $17,236 PAGE 24 of 73

25 Component Summary By Category Description Date in Service Year Replacement Useful Total Asset Summary $2,262,156 Adjustment Remaining Units Cost Unit Cost Current PAGE 25 of 73

26 Component Summary By Group Description Date in Service Year Replacement Useful Asphalt Parking - Overlay ,616 SF ,232 Brick Clad Deck Support Posts: Phase Unfunded Brick Clad Support Posts: Phase 2 - Replac.. Unfunded Brick Masonry Veneer Unfunded Building Labeling Signage - Replacement Each ,365 Carpeting - Replacement ,150 SF ,990 Composition Roof: Phase 1 - Replacement ,540 SF ,472 Composition Roof: Phase 2 - Replacement ,540 SF ,472 Composition Roof: Phase 3 - Replacement ,540 SF ,472 Composition Roof: Phase 4 - Replacement ,540 SF ,472 Composition Roof: Phase 5 - Replacement ,540 SF ,472 Fountain Head - Replacement Each ,705 Fountain Improvements Total 31, ,836 Fountain Pumps & Filters - Replacement Each ,705 Interior Hand Rails - Replacement Each ,990 Interior Lighting Lobbies - Replacement Each ,473 Interior Stair Banisters - Replacement Unfunded Irrigation Controllers - Replacement Total 6, ,247 Landscaping - Improvements Total 30, ,750 Landscaping - Improvements Total 18, ,523 Landscaping - Improvements Total 11, ,019 Landscaping Lighting - Replacement Each ,093 Metal Doors Hardware - Replacement Each ,884 Metal Doors and Frames - Replacement Each ,574 Monument Sign - Replacement Unfunded Rain Gutters & Downspouts: Phase 1 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 2 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 3 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 4 - Rep Total 13, ,214 Rain Gutters & Downspouts: Phase 5 - Rep Total 13, ,214 Sheet Metal Flashing & Trim - Replacement ,635 LF ,946 Wood Doors Hardware: Phase 1 - Replace.. Unfunded Wood Doors Hardware: Phase 2 - Replace.. Unfunded Wood Doors and Frames: Phase 1 - Replac.. Unfunded Wood Doors and Frames: Phase 2 - Replac.. Unfunded Wood Fencing - Trash Corrals (11) LF ,699 - Total $1,601,461 Adjustment Remaining Units Cost Unit Cost Current Non- Asphalt Parking - Sealants Sealer/Repair ,616 SF ,124 Building Envelope Inspection Total 5, ,000 Caulking & Joint Sealant Total 45, ,177 PAGE 26 of 73

27 Component Summary By Group Description Date in Service Year Replacement Useful Non- continued... Concrete Entry Porches - Repair Each 1, ,821 Concrete Flatwork - Repairs Total 11, ,859 Concrete Flatwork - Repairs Total 3, ,085 Deck - Repair & Replacement Total 250, ,000 Deck Coatings - Renewal ,500 SF ,500 Electrical Inspection Total 5, ,000 Exterior Siding - Painting/Repair ,400 SF ,600 Garage Repair/Painting (27) ,000 SF ,500 Interior Paint ,360 SF ,334 Irrigation Systems - Repair Total 4, ,728 Plumbing Inspection Total 5, ,000 Reserve Study Update - Offsite Total Reserve Study Update - Onsite Total 1, ,389 Roof & Flashing - Repair Total 34, ,730 Site & Parking Lighting - Repair Unfunded Non- - Total $660,694 Adjustment Remaining Units Cost Unit Cost Current Total Asset Summary $2,262,156 PAGE 27 of 73

28 Annual Expenditure Detail Description Expenditures Replacement Year 2018 Asphalt Parking - Sealants Sealer/Repair 50,124 Building Envelope Inspection 5,000 Concrete Flatwork - Repairs ,085 Deck - Repair & Replacement 250,000 Deck Coatings - Renewal 90,500 Electrical Inspection 5,000 Landscaping - Improvements ,019 Plumbing Inspection 5,000 Reserve Study Update - Onsite 1,389 Total for 2018 $421,117 Replacement Year 2019 Caulking & Joint Sealant 46,306 Concrete Flatwork - Repairs ,162 Exterior Siding - Painting/Repair 74,415 Reserve Study Update - Offsite 868 Total for 2019 $124,752 Replacement Year 2020 Concrete Flatwork - Repairs ,241 Fountain Head - Replacement 3,892 Fountain Pumps & Filters - Replacement 3,892 Reserve Study Update - Offsite 890 Roof & Flashing - Repair 36,488 Total for 2020 $48,403 Replacement Year 2021 Concrete Flatwork - Repairs ,322 Interior Lighting Lobbies - Replacement 3,740 Reserve Study Update - Offsite 912 Total for 2021 $7,975 Replacement Year 2022 Reserve Study Update - Offsite 935 Total for 2022 $935 PAGE 28 of 73

29 Annual Expenditure Detail Description Expenditures Replacement Year 2023 Building Envelope Inspection 5,657 Reserve Study Update - Onsite 1,572 Total for 2023 $7,229 Replacement Year 2024 Asphalt Parking - Overlay 161,466 Fountain Head - Replacement 4,296 Fountain Pumps & Filters - Replacement 4,296 Reserve Study Update - Offsite 982 Total for 2024 $171,041 Replacement Year 2025 Composition Roof: Phase 1 - Replacement 271,582 Rain Gutters & Downspouts: Phase 1 - Replacement 15,708 Reserve Study Update - Offsite 1,007 Sheet Metal Flashing & Trim - Replacement 9,445 Total for 2025 $297,742 Replacement Year 2026 Carpeting - Replacement 67,000 Composition Roof: Phase 2 - Replacement 278,371 Interior Paint 5,281 Rain Gutters & Downspouts: Phase 2 - Replacement 16,100 Reserve Study Update - Offsite 1,032 Total for 2026 $367,785 Replacement Year 2027 Composition Roof: Phase 3 - Replacement 285,330 Concrete Entry Porches - Repair 11,017 Garage Repair/Painting (27) 84,298 Irrigation Controllers - Replacement ,802 Rain Gutters & Downspouts: Phase 3 - Replacement 16,503 Reserve Study Update - Offsite 1,058 Wood Fencing - Trash Corrals (11) 13,361 Total for 2027 $419,369 PAGE 29 of 73

30 Annual Expenditure Detail Description Expenditures Replacement Year 2028 Building Envelope Inspection 6,400 Composition Roof: Phase 4 - Replacement 292,464 Fountain Head - Replacement 4,742 Fountain Pumps & Filters - Replacement 4,742 Rain Gutters & Downspouts: Phase 4 - Replacement 16,915 Reserve Study Update - Onsite 1,778 Total for 2028 $327,042 Replacement Year 2029 Composition Roof: Phase 5 - Replacement 299,775 Rain Gutters & Downspouts: Phase 5 - Replacement 17,338 Reserve Study Update - Offsite 1,111 Total for 2029 $318,225 Replacement Year 2030 Asphalt Parking - Sealants Sealer/Repair 67,411 Caulking & Joint Sealant 60,758 Concrete Flatwork - Repairs ,949 Exterior Siding - Painting/Repair 97,639 Irrigation Systems - Repair 6,359 Reserve Study Update - Offsite 1,139 Total for 2030 $249,254 Replacement Year 2031 Fountain Improvements 43,886 Reserve Study Update - Offsite 1,168 Total for 2031 $45,053 Replacement Year 2032 Fountain Head - Replacement 5,234 Fountain Pumps & Filters - Replacement 5,234 Reserve Study Update - Offsite 1,197 Total for 2032 $11,666 PAGE 30 of 73

31 Annual Expenditure Detail Description Expenditures Replacement Year 2033 Building Envelope Inspection 7,241 Deck Coatings - Renewal 131,071 Reserve Study Update - Onsite 2,012 Total for 2033 $140,324 Replacement Year 2034 Reserve Study Update - Offsite 1,257 Total for 2034 $1,257 Replacement Year 2035 Metal Doors and Frames - Replacement 34,350 Reserve Study Update - Offsite 1,289 Total for 2035 $35,639 Replacement Year 2036 Asphalt Parking - Sealants Sealer/Repair 78,176 Fountain Head - Replacement 5,778 Fountain Pumps & Filters - Replacement 5,778 Reserve Study Update - Offsite 1,321 Total for 2036 $91,052 Replacement Year 2037 Building Labeling Signage - Replacement 27,761 Garage Repair/Painting (27) 107,909 Irrigation Controllers - Replacement ,987 Reserve Study Update - Offsite 1,354 Wood Fencing - Trash Corrals (11) 17,103 Total for 2037 $164,114 Replacement Year 2038 Building Envelope Inspection 8,193 Reserve Study Update - Onsite 2,276 Total for 2038 $10,469 PAGE 31 of 73