2011 Reserve Study Report

Transcription

1 2011 Reserve Study Report ABC Community Association, Inc Street City, Florida Report No: 1000 From: January 1, 2011 To: December 31, 2011

2 TABLE OF CONTENTS INTRODUCTION 1 1 Letter of Introduction 1-2 Summary of Recommendation & Findings 1-3 Report Process 1-4 Reserve Study Accounting Explanation 1-5 Report Terminology & Definitions 1-6 Report Abbreviations & Annual Update Info 1-7 Terms/Conditions & Company Background GRAPHS 2-1 Charts & Graphs SCHEDULE 3-1 Straight Line Funding Plan CASH FLOW Year Pooled Cash Flow Plan PHOTOGRAPHS 5-1 Reserve Component Photographs

3 Section 1 Introduction This section of the report includes a cover letter, summary of findings as well as general information such as any governing laws or regulations, definitions, report terminology and accounting procedures used. Also included in this section are this report's terms and conditions as well as this Company's background.

4 January 1, 2011 Board of Directors ABC Community Association, Inc Street City, Florida Re: Reserve Study Report Dear Board Members: As authorized, this reserve study report has been prepared on the ABC Community Association, Inc. property, located at 1234 Street in City, Florida. A summary of our recommendations and findings can be found on the next page. Your report has been divided into sections for easier referencing. This first section titled INTRODUCTION includes all of your general information such as report definitions, accounting formulas used, statutory requirements, etc. Section two of the report titled "GRAPHS" shows in graph form the reserve schedules we have calculated and should give you a better understanding of the numbers. In this report we have taken two approaches to calculating the 2011 reserve contribution amount. Section three titled "SCHEDULE" uses straight line accounting method. This schedule will give you the recommended 2011 straight line contribution amount. Section four titled "CASH FLOW" calculates the annual contribution amount based on a thirty year positive cash flow. The total recommended 2011 contribution amount using this method is based on pooling all of the reserve funds and creating one general reserve fund. For further explanation of these two funding methods, please refer to the Reserve Study Accounting page in section 1. Thank you for allowing my Company the opportunity of serving you and your Association. Upon your review of this report, should there be any questions, please do not hesitate to contact me. Prepared By, Reviewed By, D.J. Muehlstedt, Jr. Sr. Reserve Analyst/Insurance Appraiser CCI, CCC, Certified Marshall & Swift Dreux Isaac President Dreux Isaac & Associates, Inc. Page 1-1 Reserve Study Report

5 Summary of Recommendations & Findings 1. General Information Property Name: ABC Community Association, Inc. Property Location: City, Florida Property Number: 3215 Report Run Date: 1/01/2011 Property Type: Other Report No: 1000 Total Units: 802 Budget Year Begins: 01/01/2011 Phase: ABC Community Association (1 of 1) Budget Year Ends: 12/31/ Report Findings Total number of categories set up in reserve schedule: 8 Total number of components scheduled for reserve funding: 235 Total current cost of all scheduled reserve components: $8,849,273 Estimated Beginning Year Reserve Balance: $2,150,322 Total number of components scheduled for replacement in the 2011 Budget Year: 72 Total cost of components scheduled for replacement in the 2011 Budget Year: $889, Straight Line Reserve Funding Plan Analysis Current Annual Reserve Funding Contribution Amount: $250,000 Recommended Annual Reserve Funding Contribution Amount: $658,038 Increase (decrease) between Current & Recommended Contribution Amounts: $408,038 Increase (decrease) between Current & Recommended Contribution Amounts: % Year Pooled Cash Flow Funding Plan Analysis Current Annual Reserve Funding Contribution Amount: $250,000 Recommended 2011 Reserve Funding Contribution Amount: $277,725 Recommended 2011 Planned Special Assessment Amount: $0 Total 2011 Reserve Funding and Planned Special Assessment Amount: $277,725 Increase (decrease) between Current & Recommended Contribution Amounts: $27,725 Increase (decrease) between Current & Recommended Contribution Amounts: 11.09% Dreux Isaac & Associates, Inc. Page 1-2 Reserve Study Report

6 REPORT PROCESS The purpose of this report is to provide ABC Community Association, Inc. with specific information necessary in establishing a capital reserves program for the current budget year beginning January 1, 2011 and ending December 31, The process of preparing this report began with an on-site inspection of the Association's property. During this inspection, an initial review was made of past reserve expenditures and the current reserve plan. From there, a complete inventory was made of the common area elements and a reserve component list was developed. Using this list, a takeoff was then made of each component through a review of available construction drawings, checking maintenance records, taking pertinent measurements and noting its current observed physical condition. Additional background information on the property was obtained through discussions with various contact personnel. Using the information gathered during the site inspection, calculations were then performed to determine the correct quantity of each component. From there cost estimates were then prepared based on a combination of local contractor information, any available bid proposals, and our own database of construction costs. Asset lives have been determined using a combination of published guidelines and our review of the properties climatic conditions and the components observed physical condition noted during our site inspection. Based on the latest available financial records, projections were made as to what the Association's end of year reserve balances would be. However, accumulating interest on the varying reserve balance amounts and/or unplanned expenditures may cause the actual end of year reserve balances to differ from what is presented in this report. Dreux Isaac & Associates, Inc. Page 1-3 Reserve Study Report

7 RESERVE STUDY ACCOUNTING This reserve study report calculates the annual reserve contribution using two methods. These are as follows: Straight Line Funding Plan This plan utilizes straight line accounting formulas. Straight line accounting is based on current costs and neither interest or inflation are factored into the calculations. Straight line accounting takes each individual line item component listed in the reserve schedule breakdown and computes its' annual contribution amount by taking its' unfunded balance (current replacement cost minus projected year end reserve balance) and divides its by the component's remaining life. This is the amount that should be contributed into the reserves accounts over the component's remaining life. 30 Year Pooled Cash Flow Plan To calculate the annual contribution amount using this method, a thirty year cash flow analysis is performed to determine that there will be adequate reserve funds on deposit as the reserve components of the property age and are repaired and/or replaced. This analysis takes the total beginning year reserve balance along with the projected annual reserve expenditures over a thirty year period, and through pooling of all of the reserve funds and creating one general reserve fund, arrives at an annual contribution amount so as to provide a positive cash flow and adequate reserve account balance over the next thirty years. Unlike straight line accounting, the numbers calculated in the thirty year cash flow plan factor in both interest and inflation as well as any annual contribution increases. Dreux Isaac & Associates, Inc. Page 1-4 Reserve Study Report

8 REPORT TERMINOLOGY & DEFINITIONS RESERVES - Monies set aside for the projected repair and/or replacement of the associations common elements. COMPONENT - A specific item or element which is part of the association's common area assets and is considered to require reserve funding. QUANTITY - The quantity or amount of each reserve component element. UNITS - The unit of measurement for each quantity. COST PER UNIT - The estimated cost to replace a reserve component per unit of measurement. CURRENT COST - The estimated current cost to replace a reserve component. USEFUL LIFE - The total average estimated life, in years, of a component to maintain its useful purpose. REMG (REMAINING) LIFE - The estimated remaining useful life, in years, of a reserve component as of the current budget year. 12/31/2010 BALANCE - A projection of estimated reserve funds at the end of the previous budget year. UNFUNDED BALANCE - The total remaining amount of reserve funds that are required to fully fund a component. Calculated by subtracting the component's current replacement cost from its' year end reserve balance CONTRIBUTION - This is the total annual contribution amount for the current budget year calculated by dividing every component's unfunded balance by its' remaining life. Dreux Isaac & Associates, Inc. Page 1-5 Reserve Study Report

9 RESERVE SCHEDULE UNIT ABBREVIATIONS Sq Ft - Square Feet Lp Sm - Lump Sum Dbl Ct - Double Tennis Court Ln Ft - Linear Feet Allow - Allowance Court - Court Each - Each Hp - Horsepower Units - Units Sq Yds - Square Yards Cu Ft - Cubic Feet Cu Yds - Cubic Yards Kw - Kilowatts Pair - Pair Squares - Squares (roofing) ANNUAL UPDATE REPORTS Inflation, labor rates, material availability, taxes, insurance and asset lives are just but a few of the ever changing variables addressed in your reserve study report. Now that your "First Time" reserve study has been completed, it is important that you keep your program on target with our annual "Update" reports. Since the initial calculations on the property have now been performed, we can offer this service to you (with or without site re-inspection) at just a percentage of the cost of your "First Time" reserve study. We recommend annual "Update" reports (without site re-inspection) for the first three years following your "First Time" reserve study. In performing these reports, we will take the information from your computer file and calculate current replacement cost values, asset lives and financial figures based on the latest available information. Then in the fourth year we suggest making a brief site re-inspection to observe the present physical condition of your reserve components to determine if any adjustments should be made to the remaining life expectancies, or unit costs of each component. Once completed we can then repeat this four year cycle of your reserve program for as long as you wish. By following this recommended plan, your reserve program will have the most accurate information available each year from which you can make sound budget decisions. It is also our recommendation that the Association contact our office annually to inquire about having an "Update" report prepared for the coming year. However, you can request an "Update" report at any time by contacting us. Dreux Isaac & Associates, Inc. Page 1-6 Reserve Study Report

10 TERMS AND CONDITIONS This capital reserves study is based on construction replacement cost formulas derived from the analysis of actual construction costs and using local labor rates, material prices, manufactured equipment, and contractors overhead and profit. Unless otherwise noted, each component cost is based on replacing that component as a complete unit at one time. All work has been performed in accordance with accepted standards as set forth by the American Society of Appraisers (ASA) and the American Association of Cost Engineers (AACE). While all cost data is believed to be accurate and reliable to within reasonable limits, other factors such as inflation, availability of materials and qualified personnel and/or acts of nature as well as catastrophic conditions, could significantly affect current prices. No consideration has been given to labor bonuses; material premiums; additional costs to conform property replaced to building codes, ordinances or other legal restrictions; or the cost of demolition in connection with replacement or the removal of destroyed property. No value of land has been included. According to the best of our knowledge and belief, the statements of fact contained in this capital reserves study report which are used as the basis of the analysis, opinions and conclusions stated herein, are true and correct. We have no present or contemplated future interest in the property that is the subject of this report and that we have no personal interest or bias with respect to the subject matter of this report or the parties involved. We certify that neither the employment to prepare this report, nor the compensation, is contingent upon the estimates of value contained herein. COMPANY BACKGROUND Dreux Isaac & Associates Incorporated is a professional organization that specializes in performing reserve studies and insurance appraisals for community associations in Florida and throughout the United States. We are located in Orlando, Florida and have been in business since Since our beginning we have performed thousands of reserve studies and insurance appraisals on community properties ranging in size from 6 units to over 8,000 and ranging in style from resort developments to upscale high-rises to rural neighborhood associations. Our clients include condominium and homeowner associations, timeshares, co-operatives, master planned communities and many golf and country clubs. Dreux Isaac & Associates, Inc. Page 1-7 Reserve Study Report

11 Section 2 Graphs This section of the report shows in graph form the summary of our findings and compares those findings to both current and ideal values. The purpose of these graphs is to give you a better understanding and comprehension of the numbers contained in the report. The values represented in these graphs can be traced to the schedules found in sections 3 (Schedule) and 4 (Cash Flow) of the report.

12 Chart A 2011 Current Reserve Component Costs 534,535 (6.04%) Furniture, Fixtures & Equipment 452,499 (5.11%) Roofs 2,608,993 (29.48%) Misc Site Improvements 2,091,203 (23.63%) Painting & Waterproofing 736,543 (8.32% ) Misc Building Components 358,157 (4.05%) Mechanical & Electrical 1,910,861 (21.59%) Paving 156,482 (1.77%) Elevators Dreux Isaac & Associates, Inc. Page 2-1 Reserve Study Report

13 Chart B 2011 Actual vs. 100% Funded Straight Line Reserve Balances 4,721,859 Thousands 5,000 4,500 4,000 3,500 2,150,322 3,000 2,500 2,000 1,500 1, Total Estim ated 2011 Begin ning Year Balances 10 0% Funded Straight Line Beginnin g Year Ba lances Actual beginning year balances are estimates only based on the latest financial information. 100% funded straight line beginning year balances are based on straight line accounting formulas. Dreux Isaac & Associates, Inc. Page 2-2 Reserve Study Report

14 Chart C 2011 Funding Contribution Comparisons 658,038 Thousands , , Total 2010 Annual Contributio n Proposed 2011 St raight Line Contribution Proposed Cash Flo w Pla n Contrib utio n Proposed 2011 Straight Line Contribution = Unfunded Balance / Remaining Life Dreux Isaac & Associates, Inc. Page 2-3 Reserve Study Report

15 Chart D 30 Year Pooled Cash Flow Plan (Refer to Section 4 or Report For Data) Thousands 6,000 5,000 4,000 3,000 2,000 1,54 2,5 96 1,230,342 1, , , , , , Beginning Year Bala nce Annual Exp enditures Ann ual Contribut ion Dreux Isaac & Associates, Inc. Page 2-4 Reserve Study Report

16 Section 3 Schedule This section of the report utilizes straight line accounting formulas. Straight line accounting is based on current costs and neither interest or inflation are factored into the calculations. Straight line accounting takes each individual line item component listed in the reserve schedule breakdown and computes its annual contribution amount by taking its unfunded balance (current replacement cost minus projected year end reserve balance) and divides it by the component's remaining life. This is the amount that should normally be contributed into the reserve accounts over the component's remaining life.

17 Straight Line Plan Summary Description Current Cost Useful Life Remg Life 12/31/2010 Balance Unfunded Balance 2011 Contribution Roofs 452, , ,779 31,442 Painting & Waterproofing 2,091, ,065 1,769, ,419 Paving 1,910, ,560 1,699,301 60,691 Elevators 156, ,940 93,542 5,514 Mechanical & Electrical 358, , ,270 14,039 Misc Building Components 736, , ,739 75,710 Misc Site Improvements 2,608, ,861 1,809, ,744 Furniture, Fixtures & Equipment 534, , ,050 26,479 Grand Total 8,849,273 2,150,322 6,698, ,038 Dreux Isaac & Associates, Inc. Page 3-1 Reserve Study Report

18 Description Quantity Units Straight Line Plan Detail Cost Per Unit Current Cost Useful Life Remg Life 12/31/10 Balance Unfunded Balance 2011 Contribution Roofs Roof, Concrete Barrel Tile - Beach Bar & Grill Bldg 35 Squares , ,895 2,908 Roof, Concrete Barrel Tile - Beach Club Bldg 280 Squares , ,160 23,263 Roof, Concrete Barrel Tile - Gazebo - Bus Stop (2 Total) 4 Squares , , Roof, Concrete Barrel Tile - Maintenance Bldg 24 Squares , ,928 1,994 Roof, Concrete Barrel Tile - Pool Deck Elevators 12 Squares , , Roof, Metal Panel - Beach Club Bldg 10 Squares 1, , , Roof, Metal Panel - Gatehouse Bldg (2 Total) 6 Squares 1, , , Roof, Modified Membrane - Beach Bar & Grill Bldg 10 Squares , , Roof, Modified Membrane - Beach Club Bldg 66 Squares , , Roof, Modified Membrane - Gatehouse Bldg (2 Total) 14 Squares , , Roofs Total 10 Components 452, , ,779 31,442 Painting & Waterproofing Expansion Joints - Except Planters 1 Total 128, , ,000 14,222 Expansion Joints - Planters Only 1 Total 129, , ,000 8,600 Paint Exterior - Perimeter Wall 1 Total 8, , , Paint Exterior and Interior - Beach Bar & Grill Bldg 1 Total 4, , , Paint Exterior and Interior - Gatehouse Bldg (2 Total) 2 Total 1, , , Paint Exterior and Interior - Maintenance Bldg 1 Total 7, , , Paint Exterior and Waterproof - Beach Club Bldg 1 Total 35, , , Paint Interior - Beach Club Bldg 1 Total 43, , , Paint Interior - Beach Pool Snack/Bath Bldg 1 Total 1, , , Paint Interior - Parking Garage 1 Total 18, , , Paint Interior - Security Office & Hallway 1 Total 1, , , Paint Interior - Teen Rm 1 Total 3, , , Waterproof Membrane - Beach Club Bldg Pavers 22,549 Sq Ft , ,922 59,154 Waterproof Planters 39,427 Sq Ft ,349, ,765 1,157, ,443 Painting & Waterproofing Total 14 Components 2,091, ,065 1,769, ,419 Paving Asphalt Overlay, 1.5" - Beach Club Dr 1,823 Sq Yds , , Asphalt Overlay, 1.5" - Lake Dr 2,700 Sq Yds , , Asphalt Overlay, 1.5" - Lake Villa Dr 2,686 Sq Yds , , Asphalt Overlay, 1.5" - Maintenance P Lot 570 Sq Yds , , Asphalt Overlay, 1.5" - North Club Dr 4,242 Sq Yds , , Asphalt Overlay, 1.5" - Resort Villas P Lot 3,588 Sq Yds , , Asphalt Overlay, 1.5" - South Club Dr 4,242 Sq Yds , , Asphalt Overlay, 1.5" - Tennis P Lot 1,348 Sq Yds , , Asphalt Sealcoat & Restripe 21,189 Sq Yds , , Dreux Isaac & Associates, Inc. Page 3-2 Reserve Study Report

19 Description Quantity Units Cost Per Unit Current Cost Useful Life Remg Life 12/31/10 Balance Unfunded Balance 2011 Contribution Pavers, Interlocking - Beach Bar & Grill 10,793 Sq Ft , ,803 2,529 Pavers, Interlocking - Beach Cabana Walkways 16,292 Sq Ft , ,876 3,817 Pavers, Interlocking - Beach Club Entry Drive 4,510 Sq Ft , ,586 1,057 Pavers, Interlocking - Beach Club Lane 4,791 Sq Ft , ,429 1,122 Pavers, Interlocking - Beach Club Walkways 12,626 Sq Ft , ,827 2,958 Pavers, Interlocking - Club Tower 1 12,038 Sq Ft , ,970 2,820 Pavers, Interlocking - Club Tower 2 10,918 Sq Ft , ,623 2,558 Pavers, Interlocking - Club Tower 3 6,260 Sq Ft , ,066 1,467 Pavers, Interlocking - Club Tower Drive 14,637 Sq Ft , ,019 3,429 Pavers, Interlocking - Club Towers Entry Drive 14,254 Sq Ft , ,507 3,340 Pavers, Interlocking - Fountain Club Tower 2 2,076 Sq Ft , , Pavers, Interlocking - Lake Tower 12,048 Sq Ft , ,035 2,823 Pavers, Interlocking - Lake Villa 1 9,019 Sq Ft , ,165 2,113 Pavers, Interlocking - Lake Villa 2 6,440 Sq Ft , ,247 1,509 Pavers, Interlocking - Lake Villa 3 10,944 Sq Ft , ,793 2,564 Pavers, Interlocking - Lake Walkways 19,855 Sq Ft , ,249 4,652 Pavers, Interlocking - Ocean Tower 1 3,558 Sq Ft , , Pavers, Interlocking - Ocean Tower 2 3,983 Sq Ft , , Pavers, Interlocking - Property Entrance North 20,564 Sq Ft , ,900 4,818 Pavers, Interlocking - Property Entrance South 22,776 Sq Ft , ,411 5,336 Pavers, Interlocking - Resort Villas P Lot 13,661 Sq Ft , ,617 3,201 Pavers, Interlocking - Road Intersections 13,120 Sq Ft , ,068 3,074 Pavers, Interlocking - Tennis Parking Lot 6,048 Sq Ft , ,675 1,417 Pavers, Interlocking - Tennis Walkways 7,827 Sq Ft , ,346 1,834 Paving Total 33 Components 1,910, ,560 1,699,301 60,691 Elevators Elevator Cab Allowance - Beach Club Bldg 2 Each 15, , , Elevator Cab Refurbishment Allowance - Pool Deck 2 Each 15, , , Elevator Modernization Allowance - Beach Club Bldg 6 Stops 7, , ,208 2,623 Elevator Modernization Allowance - Pool Deck 4 Stops 7, , ,472 1,748 Hydraulic Porch Lift, 2 Stop - Beach Club Bldg 1 Total 14, , ,862 1,143 Elevators Total 5 Components 156, ,940 93,542 5,514 Mechanical & Electrical A/C Air Handler Unit, 7.5 Ton - Tennis Offices 1 Each 5, , , A/C Air Handler Unit, 10 Ton - Tennis Card/Pro Shop 1 Each 6, , , A/C Air Handler Unit, 15 Ton - Tennis Lounge/Bar 1 Each 10, , , A/C Condensing Unit, 7.5 Ton - Tennis Offices 1 Each 5, , , A/C Condensing Unit, 10 Ton - Tennis Card/Pro Shop 1 Each 7, , , A/C Condensing Unit, 15 Ton - Tennis Lounge/Bar 1 Each 10, , , A/C Condensing Wtr Pump/Motor, 7.5 Hp - Cooling Twr 2 Each 6, , , A/C Cooling Tower, Stainless Steel, 150 Tons 1 Each 62, , ,940 10,490 Dreux Isaac & Associates, Inc. Page 3-3 Reserve Study Report

20 Description Quantity Units Cost Per Unit Current Cost Useful Life Remg Life 12/31/10 Balance Unfunded Balance 2011 Contribution A/C Package Unit, 3 Ton - Beach Bar & Grill Bldg 2 Each 3, , , A/C Package Unit, 8 Ton - Mgmt Office 1 Each 10, , , A/C Package Unit, 15 Ton - Kitchen 1 Each 24, , , A/C WS Heat Pump, 5 Ton - Aerobics 1 Each 5, , , A/C WS Heat Pump, 5 Ton - Mid Level 1 Each 5, , , A/C WS Heat Pump, 8 Ton - Casual Dining 2 Each 8, , , A/C WS Heat Pump, 8 Ton - Formal Dining 1 Each 8, , , A/C WS Heat Pump, 8 Ton - Lobby 1 Each 8, , , A/C WS Heat Pump, 8 Ton - Normal Dining 1 Each 8, , , A/C WS Heat Pump, 10 Ton - Dining RR's 1 Each 10, , , A/C WS Heat Pump, 10 Ton - Locker Rm's 2 Each 10, , , A/C WS Heat Pump, 10 Ton - Lounge/Dining 2 Each 10, , , A/C WS Heat Pump, 12 Ton - Cardio 2 Each 12, , , Generator, Diesel, 150 kw 1 Each 51, , ,930 2,164 Steam Bath Generator - Steam Showers 1 Each 4, , , Steam Bath Generator - Steam Showers 1 Each 4, , , Mechanical & Electrical Total 24 Components 358, , ,270 14,039 Misc Building Components Beach Bar & Grill Bar Renovation - Beach Bar & Grill Bldg 1 Total 10, , ,490 1,311 Finish, Ceramic Tile Floor - Beach Bar & Grill Bldg RR 407 Sq Ft , , Finish, Ceramic Tile Walls - Beach Bar & Grill Bldg RR 772 Sq Ft , ,091 1,261 Finish, Clg, 2x2 SAT - Beach Bar & Grill Bldg 2,384 Sq Ft , , Finish, Epoxy Floor Coating - Beach Bar & Grill Bldg 1,978 Sq Ft , ,145 2,024 Finish, Vinyl Wall Panels - Beach Bar & Grill Bldg 2,741 Sq Ft , , Restroom Renovation - Beach Bar & Grill Bldg 1 Total 12, , ,328 1,541 Trellis, PT Wood - Beach Bar & Grill Bldg 1,281 Sq Ft , ,606 27,650 5,530 Beach Club Bar Renovation - Beach Club Bldg 1 Total 15, , ,735 1,967 Bar Renovation - Tennis Center 1 Total 10, , ,000 1,250 Door, Roll-Up Grille, 22 x 7 - Parking Garage 1 Each 10, , , Finish, Carpet - Card Rm 44 Sq Yds , , Finish, Carpet - Dining Areas 518 Sq Yds , , Finish, Carpet - Fitness 270 Sq Yds , , Finish, Carpet - Locker Rm 135 Sq Yds , , Finish, Carpet - Member Lounge 44 Sq Yds , , Finish, Carpet - Mgmt Offices 194 Sq Yds , , Finish, Carpet - Tennis Common Areas 323 Sq Yds , , Finish, Ceramic Tile Floor - Dining RR 497 Sq Ft , , Finish, Ceramic Tile Floor - Kitchen 2,029 Sq Ft , ,018 2,780 Finish, Ceramic Tile Floor - Locker Rm 1,514 Sq Ft , ,668 2,074 Finish, Ceramic Tile Floor - Massage Rm 156 Sq Ft , , Finish, Ceramic Tile Walls - Dining RR 1,070 Sq Ft , ,985 1,554 Dreux Isaac & Associates, Inc. Page 3-4 Reserve Study Report

21 Description Quantity Units Cost Per Unit Current Cost Useful Life Remg Life 12/31/10 Balance Unfunded Balance 2011 Contribution Finish, Ceramic Tile Walls - Kitchen 2,835 Sq Ft , ,054 4,117 Finish, Ceramic Tile Walls - Locker Rm 3,597 Sq Ft , ,013 5,224 Finish, Clg, 2x4 SAT - Kitchen 2,029 Sq Ft , ,914 3,213 Finish, Marble Tile - Lobby & Dining 4,851 Sq Ft , ,636 10,182 Finish, Mirror Wall Panels - Fitness 950 Sq Ft , , Finish, Rubber Tile Floor - Fitness 308 Sq Ft , , Finish, Vinyl Tile - Mgmt Office Kitchen 123 Sq Ft Finish, Vinyl/Rubber Floor - Fitness Aerobics 806 Sq Ft , , Finish, Wall Covering - Fitness 1,271 Sq Ft , , Finish, Wall Covering - Massage Rm 797 Sq Ft , , Finish, Wood Floor - Tennis Lounge/Bar 968 Sq Ft , ,616 1,936 Restroom Renovation - Beach Club Bldg Dining RR 1 Total 16, , ,856 2,107 Restroom Renovation - Beach Club Bldg Locker Rm 1 Total 39, , ,944 4,993 Spa Finish, Ceramic Tile - Locker Rm 2 Total 5, , ,498 8,992 1,798 Trellis, PT Wood - Beach Club Bldg 2,736 Sq Ft , ,893 9,842 Gatehouse Finish, Ceramic Tile Band - Gatehouse Bldg (2 Total) 252 Sq Ft , , Finish, Ceramic Tile Floor - Gatehouse Bldg (2 Total) 64 Sq Ft Restroom Bldg Finish, Ceramic Tile Flr - Beach Pool Snack/Bath Bldg 1,075 Sq Ft , ,255 1,473 Finish, Ceramic Tile W - Beach Pool Snack/Bath Bldg 1,087 Sq Ft , ,208 1,579 Renovation - Beach Pool Snack/Bath Bldg 1 Total 31, , ,526 3,941 Security Office Finish, Ceramic Tile Floor - Security Office 897 Sq Ft , , Misc Building Components Total 44 Components 736, , ,739 75,710 Misc Site Improvements Basketball Court Retaining Wall, Masonry Block & Concrete 935 Sq Ft , , Entry Features and Signage Sign Letters & Logo Allowance 1 Total 21, , , Sign Wall, 8" CBS 168 Sq Ft , , Sign, DOT Spec, 6' Alum Pole 50 Each , , Fountains Fountain, Equip Allowance 1 Total 10, , , Fountain, Equip Allowance 1 Total 10, , , Fountain, Equip Allowance 1 Total 10, , , Fountain, Equip Allowance 1 Total 10, , , Fountain, Equip Allowance 1 Total 10, , , Fountain, Equip Allowance 1 Total 10, , , Fountain, Equip Allowance 1 Total 10, , , Fountain, Lake, Pump/Motor Allowance 1 Each 6, , , Fountain, Lake, Pump/Motor Allowance - (2 Total) 2 Each 6, , , Fountain, Lighting Allowance 73 Total , , Dreux Isaac & Associates, Inc. Page 3-5 Reserve Study Report

22 Description Quantity Units Gazebos Cost Per Unit Current Cost Useful Life Remg Life 12/31/10 Balance Unfunded Balance 2011 Contribution Bridge, Pedestrian, Concrete - Gazebo - Bridge 1 Total 26, , ,300 2,023 Dock, Concrete - Gazebo - Dock 1 Sq Ft 52, , ,500 1,382 Gazebo, PT Wood - Gazebo - Bridge 1 Total 8, , ,392 1,399 Gazebo, PT Wood - Gazebo - Dock 1 Total 8, , ,392 1,399 Railing, Alum Picket, 3.5' - Gazebo - Bridge 108 Ln Ft , , Railing, Alum Picket, 3.5' - Gazebo - Dock 85 Ln Ft , , Site Wall, Block Pier - Gazebo - Bridge 8 Each 1, , , Site Wall, Block Pier - Gazebo - Dock 4 Each 1, , , Lighting Light Bollard - Cabana Walkways 76 Each , , Light Bollard - Pool Areas 8 Each , , Light Fixture, Landscape Uplight, Allowance 108 Each , , Light Fixture, Mini Landscape Uplight - Allowance 50 Each , , Light Fixture, Sign Uplight - Building Entry Feature 36 Each , , Light Fixture, Sign Uplight - Signage - Street & Traffic 16 Each , , Light Pole & Fixture, 12' Globe 174 Each 3, , ,578 39,113 Light Pole & Fixture, Globe - Vehicular Bridge 10 Each , , Park Park, Bench, 6' 18 Each , , Park, Trash Can Holder 26 Each , , Playground Structure, Coated Mtl 1 Total 52, , ,450 5,245 Pools and Spa Fence, Alum Picket, 3.5' - Fence - Kiddie Pool 125 Ln Ft , , Pool Deck Brick Pavers 15,771 Sq Ft , ,358 3,548 Pool Deck Stone Pavers 16,249 Sq Ft , ,369 5,687 Pool Equipment, Heater, Gas - Beach Pool 1 Each 15, , , Pool Equipment, Heater, Gas - Grand Pool 1 Each 15, , , Pool Equipment, Pump/Motor/Filter - Beach Pool 1 Total 5, , , Pool Equipment, Pump/Motor/Filter - Grand Pool 1 Total 5, , , Pool Finish, Ceramic Tile - Beach Pool 1 Total 12, , , Pool Finish, Ceramic Tile - Grand Pool 1 Total 17, , ,554 1,950 Pool Finish, Exposed Aggregate - Beach Pool 1 Total 65, , , Pool Finish, Exposed Aggregate - Kiddie Pool 1 Total 3, , , Pool Finish, Exposed Aggregate/Aquafin - Grand Pool 7,966 Sq Ft , ,912 28,324 Spa Equipment, Heater, Nat Gas - Grand 1 Each 2, , , Spa Equipment, Pump/Motor/Filter - Grand 1 Total 5, , , Spa Finish, Ceramic Tile Trim - Grand 1 Total 3, , , Spa Finish, Exposed Aggregate - Grand 1 Total 3, , , Site Wall and Fencing Fence, Alum Picket - Fencing 16,660 Sq Ft , , Site Wall, 8" CBS - Site Wall 1 Total 262, , ,300 14,572 Site Wall, Pilaster - Vehicular Gate Systems (2 Total) 6 Each 1, , , Stormwater Control Bulkhead, Concrete, Precast 1 Total 104, , ,900 3,746 Culvert, Drainage Allowance 1 Total 53, , ,000 6,625 Dreux Isaac & Associates, Inc. Page 3-6 Reserve Study Report

23 Description Quantity Units Tennis Court Cost Per Unit Current Cost Useful Life Remg Life 12/31/10 Balance Unfunded Balance 2011 Contribution Site Wall, Block Pilaster - Tennis Awning (4 Total) 8 Each 1, , , Tennis Court Light Fixture 60 Each , , Tennis Court Light Pole 22 Each 1, , , Tennis Court Light Pole - Court #4 4 Each 1, , , Tennis Court Light Pole Arm 60 Each , ,340 1,734 Tennis Court Resurfacing, Clay 8 Each 3, , , Tennis Fence, VC Chain Link 1 Total 43, , , Vehicular Bridge Bridge, Concrete - Deferred Maintenance 1 Total 104, , ,900 8,069 Misc Site Improvements Total 62 Components 2,608, ,861 1,809, ,744 Furniture, Fixtures & Equipment Computer Equipment Computer Server - Accounting 1 Each 7, , , Computer Server - Management 1 Each 7, , , Computer Workstation 5 Each 1, , , Computer Workstation, POS 1 Each 1, , , Computer Workstation, POS 3 Each 1, , , Electronics Electronics, Phone System Allowance 1 Total 20, , , Electronics, Sound System Allowance - Fitness 1 Total 12, , , Fitness Fitness, Cardio, Elliptical 4 Each 4, , , Fitness, Cardio, Recumbent Bike 4 Each 2, , , Fitness, Cardio, Spinning Bike 12 Each , , Fitness, Cardio, Stair Stepper 2 Each 3, , , Fitness, Cardio, Stationary Bike 2 Each 2, , , Fitness, Cardio, Treadmill 6 Each 5, , , Fitness, Weight Bench 4 Each , , Fitness, Weight Machine, Abdominal 1 Each 3, , , Fitness, Weight Machine, Arm Curl 1 Each 2, , , Fitness, Weight Machine, Back Extension 1 Each 2, , , Fitness, Weight Machine, Cable Crossover 1 Each 4, , , Fitness, Weight Machine, Chest Press 1 Each 3, , , Fitness, Weight Machine, Chin/Up Assist 1 Each 3, , , Fitness, Weight Machine, Glute 1 Each 2, , , Fitness, Weight Machine, Hip Abduction/Adduction 1 Each 4, , , Fitness, Weight Machine, Leg Curl 1 Each 3, , , Fitness, Weight Machine, Leg Extension 1 Each 3, , , Fitness, Weight Machine, Leg Press 1 Each 4, , , Fitness, Weight Machine, Pulldown 1 Each 2, , , Fitness, Weight Machine, Row/Rear Delt 1 Each 2, , , Fitness, Weight Machine, Shoulder Press 1 Each 2, , , Dreux Isaac & Associates, Inc. Page 3-7 Reserve Study Report

24 Description Quantity Units Cost Per Unit Current Cost Useful Life Remg Life 12/31/10 Balance Unfunded Balance 2011 Contribution Fitness, Weight Machine, Smith Press Station 1 Each 3, , , Fitness, Weight Machine, Tricep Press 1 Each 3, , , Fitness, Weight Set, Dumbbells 2 Each 1, , , Furnishings & Decorating Furnishings/Decorating - Lounge & Dining 1 Total 131, , ,200 21,867 Furnishings/Decorating - Tennis Lounge/Bar 1 Total 40, , , Furnishings/Decorating - Tennis Office 1 Total 25, , , Laundry Laundry, Commercial Dryer 1 Each 8, , , Laundry, Commercial Dryer 2 Each 8, , , Laundry, Commercial Washer 1 Each 7, , ,755 1,108 Laundry, Commercial Washer 2 Each 7, , , Maintenance Maint, Utility Vehicle, Golf Cart 13 Each 2, , , Outdoor Furniture Furniture, Outdoor - Beach Allowance 1 Total 5, , , Furniture, Outdoor - Beach Bar & Grill Allowance 1 Total 27, , , Furniture, Outdoor - Pool Areas Allowance 1 Total 11, , , Furniture, Outdoor - Tennis 1 Total 10, , , Furniture, Fixtures & Equipment Total 43 Components 534, , ,050 26,479 Grand Total 235 Components 8,849,273 2,150,322 6,698, ,038 Dreux Isaac & Associates, Inc. Page 3-8 Reserve Study Report

25 Section 4 Cash Flow This section of the report shows an alternate funding plan to that given in the previous section. While all of the same reserve components, costs and life expectancies used in the previous section are used here, the method of calculating the annual reserve contribution is based on a thirty year cash flow analysis. This funding plan takes the total beginning year reserve balance in year one along with the projected annual reserve expenditures over a thirty year period, and through pooling of all of the reserve funds and creating one general reserve fund, arrives at an annual contribution amount so as to provide a positive cash flow and adequate reserve account balance over the next thirty years. Unlike the straight line accounting plan used in the previous section, the numbers calculated in the thirty year cash flow plan factor in both interest and inflation as well as any annual contribution increases.

26 Cash Flow Plan Summary No Year Beginning Year Balance Annual Reserve Contribution Annual Increase Planned Special Assessments Expenses Inflation Rate Earned Interest Interest Rate Ending Year Balance ,150, , % 0 889, % 15, % 1,553, ,553, , % 0 140, % 34, % 1,756, ,756, , % 0 405, % 50, % 1,745, ,745, , % 0 623, % 45, % 1,547, ,547, , % 0 1,626, % 10, % 354, , , % 0 727, % 2, % 100, , , % 0 339, % 8, % 277, , , % 0 291, % 16, % 553, , , % 0 1,052, % 2, % 100, , , % 0 236, % 14, % 502, , , % 0 383, % 23, % 794, , , % 0 535, % 28, % 971, , , % 0 1,046, % 19, % 658, , , % 0 918, % 14, % 503, , , % 0 359, % 27, % 954, , , % 0 342, % 42, % 1,473, ,473, , % 0 349, % 59, % 2,040, ,040, , % 0 1,475, % 43, % 1,504, ,504, , % 0 1,146, % 38, % 1,335, ,335, , % 0 409, % 57, % 1,965, ,965,125 1,026, % 0 962, % 60, % 2,089, ,089,897 1,074, % 0 177, % 89, % 3,075, ,075,856 1,123, % 0 256, % 118, % 4,061, ,061,480 1,175, % 0 1,157, % 122, % 4,202, ,202,535 1,230, % 0 3,824, % 48, % 1,656, ,656,137 1,287, % 0 284, % 79, % 2,738, ,738,173 1,346, % 0 200, % 116, % 4,001, ,001,485 1,409, % 0 4,911, % 14, % 514, ,369 1,474, % 0 1,891, % 2, % 100, ,000 1,542, % 0 459, % 35, % 1,218,930 Grand Total 25,247, ,424,454 1,245,184 Dreux Isaac & Associates, Inc. Page 4-1 Reserve Study Report

27 Cash Flow Plan Details Category Description Cost Year 1: 2011 Painting & Waterproofing Paint Exterior and Interior - Gatehouse Bldg (2 Total) 3,830 Painting & Waterproofing Paint Exterior and Interior - Maintenance Bldg 7,643 Painting & Waterproofing Paint Exterior and Waterproof - Beach Club Bldg 35,950 Painting & Waterproofing Paint Interior - Beach Club Bldg 43,305 Painting & Waterproofing Paint Interior - Beach Pool Snack/Bath Bldg 1,553 Painting & Waterproofing Paint Interior - Parking Garage 18,842 Paving Asphalt Sealcoat & Restripe 24,156 Mechanical & Electrical A/C Air Handler Unit, 7.5 Ton - Tennis Offices 5,021 Mechanical & Electrical A/C Air Handler Unit, 10 Ton - Tennis Card/Pro Shop 6,665 Mechanical & Electrical A/C Air Handler Unit, 15 Ton - Tennis Lounge/Bar 10,390 Mechanical & Electrical A/C Condensing Unit, 7.5 Ton - Tennis Offices 5,195 Mechanical & Electrical A/C Condensing Unit, 10 Ton - Tennis Card/Pro Shop 7,058 Mechanical & Electrical A/C Condensing Unit, 15 Ton - Tennis Lounge/Bar 10,781 Mechanical & Electrical A/C Condensing Wtr Pump/Motor, 7.5 Hp - Cooling Twr 12,034 Mechanical & Electrical A/C Package Unit, 15 Ton - Kitchen 24,258 Mechanical & Electrical A/C WS Heat Pump, 5 Ton - Aerobics 5,282 Mechanical & Electrical A/C WS Heat Pump, 5 Ton - Mid Level 5,282 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Casual Dining 17,424 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Formal Dining 8,712 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Lobby 8,712 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Normal Dining 8,712 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Dining RR's 10,781 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Locker Rm's 21,562 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Lounge/Dining 21,562 Mechanical & Electrical A/C WS Heat Pump, 12 Ton - Cardio 25,700 Mechanical & Electrical Steam Bath Generator - Steam Showers 4,846 Misc Building Components Door, Roll-Up Grille, 22 x 7 - Parking Garage 10,354 Misc Building Components Finish, Carpet - Card Rm 2,078 Misc Building Components Finish, Carpet - Dining Areas 24,455 Misc Building Components Finish, Carpet - Locker Rm 5,099 Misc Building Components Finish, Carpet - Member Lounge 2,078 Misc Building Components Finish, Carpet - Mgmt Offices 9,159 Misc Building Components Finish, Carpet - Tennis Common Areas 14,535 Misc Building Components Finish, Rubber Tile Floor - Fitness 2,344 Misc Building Components Finish, Vinyl/Rubber Floor - Fitness Aerobics 10,148 Misc Building Components Finish, Wall Covering - Fitness 6,012 Misc Building Components Finish, Wall Covering - Massage Rm 3,770 Misc Site Improvements Fountain, Equip Allowance 10,490 Misc Site Improvements Fountain, Equip Allowance 10,490 Misc Site Improvements Fountain, Equip Allowance 10,490 Misc Site Improvements Fountain, Equip Allowance 10,490 Misc Site Improvements Fountain, Equip Allowance 10,490 Misc Site Improvements Fountain, Equip Allowance 10,490 Dreux Isaac & Associates, Inc. Page 4-2 Reserve Study Report

28 Category Description Cost Misc Site Improvements Fountain, Equip Allowance 10,490 Misc Site Improvements Fountain, Lake, Pump/Motor Allowance 6,207 Misc Site Improvements Fountain, Lake, Pump/Motor Allowance - (2 Total) 12,414 Misc Site Improvements Light Bollard - Cabana Walkways 46,360 Misc Site Improvements Light Bollard - Pool Areas 6,656 Misc Site Improvements Light Fixture, Landscape Uplight, Allowance 42,984 Misc Site Improvements Light Fixture, Mini Landscape Uplight - Allowance 13,250 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 5,245 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 5,245 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 5,000 Misc Site Improvements Tennis Court Resurfacing, Clay 28,536 Furniture, Fixtures & Equipment Computer Server - Accounting 7,134 Furniture, Fixtures & Equipment Computer Server - Management 7,134 Furniture, Fixtures & Equipment Computer Workstation 5,245 Furniture, Fixtures & Equipment Computer Workstation, POS 5,667 Furniture, Fixtures & Equipment Computer Workstation, POS 1,889 Furniture, Fixtures & Equipment Electronics, Phone System Allowance 20,980 Furniture, Fixtures & Equipment Electronics, Sound System Allowance - Fitness 12,000 Furniture, Fixtures & Equipment Fitness, Cardio, Elliptical 18,504 Furniture, Fixtures & Equipment Fitness, Cardio, Recumbent Bike 11,004 Furniture, Fixtures & Equipment Fitness, Cardio, Spinning Bike 11,964 Furniture, Fixtures & Equipment Fitness, Cardio, Stair Stepper 6,138 Furniture, Fixtures & Equipment Fitness, Cardio, Stationary Bike 4,784 Furniture, Fixtures & Equipment Fitness, Cardio, Treadmill 31,602 Furniture, Fixtures & Equipment Fitness, Weight Bench 2,700 Furniture, Fixtures & Equipment Laundry, Commercial Dryer 8,392 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Allowance 5,245 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Bar & Grill Allowance 27,290 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Areas Allowance 11,438 Year 1 Total 889,725 Year 2: 2012 Painting & Waterproofing Paint Interior - Security Office & Hallway 1,516 Painting & Waterproofing Paint Interior - Teen Rm 3,227 Mechanical & Electrical A/C Package Unit, 8 Ton - Mgmt Office 11,019 Misc Building Components Finish, Mirror Wall Panels - Fitness 10,574 Misc Site Improvements Sign, DOT Spec, 6' Alum Pole 26,512 Misc Site Improvements Tennis Fence, VC Chain Link 43,707 Furniture, Fixtures & Equipment Maint, Utility Vehicle, Golf Cart 33,061 Furniture, Fixtures & Equipment Furniture, Outdoor - Tennis 10,450 Year 2 Total 140,066 Dreux Isaac & Associates, Inc. Page 4-3 Reserve Study Report

29 Category Description Cost Year 3: 2013 Roofs Roof, Modified Membrane - Beach Club Bldg 56,706 Roofs Roof, Modified Membrane - Gatehouse Bldg (2 Total) 12,029 Paving Asphalt Sealcoat & Restripe 24,886 Elevators Elevator Cab Allowance - Beach Club Bldg 32,420 Elevators Elevator Cab Refurbishment Allowance - Pool Deck 32,420 Misc Site Improvements Fountain, Lighting Allowance 23,915 Misc Site Improvements Park, Bench, 6' 14,427 Misc Site Improvements Pool Equipment, Heater, Gas - Beach Pool 16,322 Misc Site Improvements Tennis Court Light Fixture 30,844 Misc Site Improvements Tennis Court Light Pole 26,155 Misc Site Improvements Tennis Court Resurfacing, Clay 29,398 Furniture, Fixtures & Equipment Computer Workstation 5,403 Furniture, Fixtures & Equipment Furnishings/Decorating - Tennis Lounge/Bar 41,208 Furniture, Fixtures & Equipment Furnishings/Decorating - Tennis Office 25,755 Furniture, Fixtures & Equipment Laundry, Commercial Dryer 17,291 Furniture, Fixtures & Equipment Laundry, Commercial Washer 15,978 Year 3 Total 405,157 Year 4: 2014 Painting & Waterproofing Paint Exterior - Perimeter Wall 9,338 Painting & Waterproofing Paint Exterior and Interior - Beach Bar & Grill Bldg 4,967 Paving Asphalt Overlay, 1.5" - Beach Club Dr 17,101 Paving Asphalt Overlay, 1.5" - Lake Dr 25,326 Paving Asphalt Overlay, 1.5" - Lake Villa Dr 25,196 Paving Asphalt Overlay, 1.5" - Maintenance P Lot 5,347 Paving Asphalt Overlay, 1.5" - North Club Dr 39,791 Paving Asphalt Overlay, 1.5" - Resort Villas P Lot 33,656 Paving Asphalt Overlay, 1.5" - South Club Dr 39,791 Paving Asphalt Overlay, 1.5" - Tennis P Lot 12,645 Misc Building Components Finish, Carpet - Fitness 10,821 Misc Site Improvements Sign Letters & Logo Allowance 22,283 Misc Site Improvements Railing, Alum Picket, 3.5' - Gazebo - Bridge 6,613 Misc Site Improvements Railing, Alum Picket, 3.5' - Gazebo - Dock 5,205 Misc Site Improvements Light Fixture, Sign Uplight - Building Entry Feature 25,326 Misc Site Improvements Light Fixture, Sign Uplight - Signage - Street & Traffic 11,256 Misc Site Improvements Pool Equipment, Heater, Gas - Grand Pool 16,812 Misc Site Improvements Pool Finish, Ceramic Tile - Beach Pool 13,508 Misc Site Improvements Pool Finish, Exposed Aggregate - Beach Pool 70,023 Misc Site Improvements Pool Finish, Exposed Aggregate - Kiddie Pool 3,396 Misc Site Improvements Spa Equipment, Heater, Nat Gas - Grand 2,644 Misc Site Improvements Fence, Alum Picket - Fencing 222,567 Year 4 Total 623,612 Dreux Isaac & Associates, Inc. Page 4-4 Reserve Study Report

30 Category Description Cost Year 5: 2015 Painting & Waterproofing Waterproof Planters 1,475,447 Paving Asphalt Sealcoat & Restripe 26,401 Misc Building Components Trellis, PT Wood - Beach Bar & Grill Bldg 35,254 Misc Building Components Spa Finish, Ceramic Tile - Locker Rm 11,465 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 5,732 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 5,732 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 5,465 Misc Site Improvements Tennis Court Resurfacing, Clay 31,188 Furniture, Fixtures & Equipment Computer Server - Accounting 7,797 Furniture, Fixtures & Equipment Computer Server - Management 7,797 Furniture, Fixtures & Equipment Computer Workstation 5,732 Furniture, Fixtures & Equipment Computer Workstation, POS 2,065 Furniture, Fixtures & Equipment Computer Workstation, POS 6,194 Year 5 Total 1,626,269 Year 6: 2016 Painting & Waterproofing Waterproof Membrane - Beach Club Bldg Pavers 399,545 Mechanical & Electrical A/C Cooling Tower, Stainless Steel, 150 Tons 70,853 Misc Building Components Finish, Epoxy Floor Coating - Beach Bar & Grill Bldg 13,672 Misc Building Components Finish, Wood Floor - Tennis Lounge/Bar 13,076 Misc Site Improvements Gazebo, PT Wood - Gazebo - Bridge 9,447 Misc Site Improvements Gazebo, PT Wood - Gazebo - Dock 9,447 Misc Site Improvements Light Fixture, Landscape Uplight, Allowance 48,388 Misc Site Improvements Light Fixture, Mini Landscape Uplight - Allowance 14,916 Furniture, Fixtures & Equipment Furnishings/Decorating - Lounge & Dining 147,695 Year 6 Total 727,039 Year 7: 2017 Painting & Waterproofing Paint Exterior and Interior - Gatehouse Bldg (2 Total) 4,441 Painting & Waterproofing Paint Exterior and Interior - Maintenance Bldg 8,862 Painting & Waterproofing Paint Exterior and Waterproof - Beach Club Bldg 41,684 Painting & Waterproofing Paint Interior - Beach Club Bldg 50,212 Painting & Waterproofing Paint Interior - Beach Pool Snack/Bath Bldg 1,801 Painting & Waterproofing Paint Interior - Parking Garage 21,847 Paving Asphalt Sealcoat & Restripe 28,009 Misc Building Components Trellis, PT Wood - Beach Club Bldg 79,881 Misc Site Improvements Tennis Court Resurfacing, Clay 33,087 Furniture, Fixtures & Equipment Computer Workstation 6,082 Furniture, Fixtures & Equipment Fitness, Weight Bench 3,131 Furniture, Fixtures & Equipment Laundry, Commercial Washer 8,992 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Allowance 6,082 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Bar & Grill Allowance 31,643 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Areas Allowance 13,262 Year 7 Total 339,016 Dreux Isaac & Associates, Inc. Page 4-5 Reserve Study Report

31 Category Description Cost Year 8: 2018 Mechanical & Electrical A/C Package Unit, 3 Ton - Beach Bar & Grill Bldg 9,022 Misc Building Components Bar Renovation - Beach Bar & Grill Bldg 12,528 Misc Building Components Finish, Ceramic Tile Floor - Beach Bar & Grill Bldg RR 5,994 Misc Building Components Finish, Ceramic Tile Walls - Beach Bar & Grill Bldg RR 12,052 Misc Building Components Restroom Renovation - Beach Bar & Grill Bldg 14,723 Misc Building Components Bar Renovation - Beach Club Bldg 18,792 Misc Building Components Bar Renovation - Tennis Center 11,943 Misc Building Components Restroom Renovation - Beach Club Bldg Dining RR 20,131 Misc Building Components Restroom Renovation - Beach Club Bldg Locker Rm 47,704 Misc Building Components Renovation - Beach Pool Snack/Bath Bldg 37,651 Misc Site Improvements Culvert, Drainage Allowance 63,297 Furniture, Fixtures & Equipment Fitness, Cardio, Treadmill 37,742 Year 8 Total 291,579 Year 9: 2019 Painting & Waterproofing Expansion Joints - Except Planters 157,454 Paving Asphalt Sealcoat & Restripe 29,715 Misc Building Components Finish, Ceramic Tile Floor - Dining RR 7,539 Misc Building Components Finish, Ceramic Tile Floor - Kitchen 30,775 Misc Building Components Finish, Ceramic Tile Floor - Locker Rm 22,964 Misc Building Components Finish, Ceramic Tile Floor - Massage Rm 2,367 Misc Building Components Finish, Ceramic Tile Walls - Dining RR 17,203 Misc Building Components Finish, Ceramic Tile Walls - Kitchen 45,581 Misc Building Components Finish, Ceramic Tile Walls - Locker Rm 57,831 Misc Building Components Finish, Clg, 2x4 SAT - Kitchen 35,567 Misc Building Components Finish, Marble Tile - Lobby & Dining 112,723 Misc Building Components Finish, Vinyl Tile - Mgmt Office Kitchen 827 Misc Building Components Finish, Ceramic Tile Band - Gatehouse Bldg (2 Total) 4,180 Misc Building Components Finish, Ceramic Tile Floor - Gatehouse Bldg (2 Total) 972 Misc Building Components Finish, Ceramic Tile Flr - Beach Pool Snack/Bath Bldg 16,305 Misc Building Components Finish, Ceramic Tile W - Beach Pool Snack/Bath Bldg 17,477 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 6,452 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 6,452 Misc Site Improvements Pool Finish, Ceramic Tile - Grand Pool 21,593 Misc Site Improvements Pool Finish, Exposed Aggregate/Aquafin - Grand Pool 313,570 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 6,151 Misc Site Improvements Spa Finish, Ceramic Tile Trim - Grand 3,871 Misc Site Improvements Spa Finish, Exposed Aggregate - Grand 3,936 Misc Site Improvements Tennis Court Resurfacing, Clay 35,102 Furniture, Fixtures & Equipment Computer Server - Accounting 8,776 Furniture, Fixtures & Equipment Computer Server - Management 8,776 Furniture, Fixtures & Equipment Computer Workstation 6,452 Furniture, Fixtures & Equipment Computer Workstation, POS 2,324 Dreux Isaac & Associates, Inc. Page 4-6 Reserve Study Report

32 Category Description Cost Furniture, Fixtures & Equipment Computer Workstation, POS 6,971 Furniture, Fixtures & Equipment Fitness, Cardio, Elliptical 22,762 Furniture, Fixtures & Equipment Maint, Utility Vehicle, Golf Cart 40,267 Year 9 Total 1,052,935 Year 10: 2020 Painting & Waterproofing Paint Exterior - Perimeter Wall 11,150 Painting & Waterproofing Paint Exterior and Interior - Beach Bar & Grill Bldg 5,931 Painting & Waterproofing Paint Interior - Security Office & Hallway 1,902 Painting & Waterproofing Paint Interior - Teen Rm 4,048 Misc Building Components Finish, Carpet - Fitness 12,921 Misc Site Improvements Fountain, Lighting Allowance 29,413 Misc Site Improvements Playground Structure, Coated Mtl 66,455 Misc Site Improvements Tennis Court Light Pole Arm 21,970 Furniture, Fixtures & Equipment Electronics, Phone System Allowance 26,582 Furniture, Fixtures & Equipment Electronics, Sound System Allowance - Fitness 15,204 Furniture, Fixtures & Equipment Fitness, Cardio, Recumbent Bike 13,942 Furniture, Fixtures & Equipment Fitness, Cardio, Stair Stepper 7,777 Furniture, Fixtures & Equipment Fitness, Cardio, Stationary Bike 6,061 Furniture, Fixtures & Equipment Furniture, Outdoor - Tennis 13,110 Year 10 Total 236,466 Year 11: 2021 Paving Asphalt Sealcoat & Restripe 31,524 Mechanical & Electrical A/C Air Handler Unit, 7.5 Ton - Tennis Offices 6,553 Mechanical & Electrical A/C Air Handler Unit, 10 Ton - Tennis Card/Pro Shop 8,698 Mechanical & Electrical A/C Air Handler Unit, 15 Ton - Tennis Lounge/Bar 13,559 Mechanical & Electrical A/C Condensing Unit, 7.5 Ton - Tennis Offices 6,780 Mechanical & Electrical A/C Condensing Unit, 10 Ton - Tennis Card/Pro Shop 9,211 Mechanical & Electrical A/C Condensing Unit, 15 Ton - Tennis Lounge/Bar 14,069 Mechanical & Electrical A/C Package Unit, 15 Ton - Kitchen 31,657 Mechanical & Electrical Steam Bath Generator - Steam Showers 6,324 Misc Building Components Finish, Carpet - Card Rm 2,712 Misc Building Components Finish, Carpet - Dining Areas 31,914 Misc Building Components Finish, Carpet - Locker Rm 6,654 Misc Building Components Finish, Carpet - Member Lounge 2,712 Misc Building Components Finish, Carpet - Mgmt Offices 11,953 Misc Building Components Finish, Carpet - Tennis Common Areas 18,969 Misc Building Components Finish, Rubber Tile Floor - Fitness 3,059 Misc Building Components Finish, Wall Covering - Fitness 7,846 Misc Building Components Finish, Wall Covering - Massage Rm 4,920 Misc Site Improvements Light Fixture, Landscape Uplight, Allowance 56,095 Misc Site Improvements Light Fixture, Mini Landscape Uplight - Allowance 17,292 Misc Site Improvements Pool Equipment, Heater, Gas - Beach Pool 20,677 Misc Site Improvements Tennis Court Resurfacing, Clay 37,240 Dreux Isaac & Associates, Inc. Page 4-7 Reserve Study Report

33 Category Description Cost Furniture, Fixtures & Equipment Computer Workstation 6,845 Furniture, Fixtures & Equipment Fitness, Cardio, Spinning Bike 15,613 Furniture, Fixtures & Equipment Laundry, Commercial Dryer 10,952 Year 11 Total 383,828 Year 12: 2022 Roofs Roof, Concrete Barrel Tile - Beach Bar & Grill Bldg 46,905 Roofs Roof, Concrete Barrel Tile - Beach Club Bldg 375,240 Roofs Roof, Concrete Barrel Tile - Gazebo - Bus Stop (2 Total) 5,361 Roofs Roof, Concrete Barrel Tile - Maintenance Bldg 32,163 Roofs Roof, Concrete Barrel Tile - Pool Deck Elevators 16,082 Mechanical & Electrical A/C Package Unit, 8 Ton - Mgmt Office 14,665 Misc Site Improvements Sign Wall, 8" CBS 10,162 Misc Site Improvements Park, Trash Can Holder 10,100 Misc Site Improvements Pool Equipment, Heater, Gas - Grand Pool 21,297 Misc Site Improvements Spa Equipment, Heater, Nat Gas - Grand 3,350 Year 12 Total 535,325 Year 13: 2023 Roofs Roof, Modified Membrane - Beach Bar & Grill Bldg 11,547 Painting & Waterproofing Paint Exterior and Interior - Gatehouse Bldg (2 Total) 5,303 Painting & Waterproofing Paint Exterior and Interior - Maintenance Bldg 10,582 Painting & Waterproofing Paint Exterior and Waterproof - Beach Club Bldg 49,773 Painting & Waterproofing Paint Interior - Beach Club Bldg 59,956 Painting & Waterproofing Paint Interior - Beach Pool Snack/Bath Bldg 2,150 Painting & Waterproofing Paint Interior - Parking Garage 26,087 Paving Asphalt Sealcoat & Restripe 33,444 Elevators Hydraulic Porch Lift, 2 Stop - Beach Club Bldg 20,576 Mechanical & Electrical A/C Condensing Wtr Pump/Motor, 7.5 Hp - Cooling Twr 16,661 Mechanical & Electrical A/C WS Heat Pump, 5 Ton - Aerobics 7,313 Mechanical & Electrical A/C WS Heat Pump, 5 Ton - Mid Level 7,313 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Casual Dining 24,124 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Formal Dining 12,062 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Lobby 12,062 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Normal Dining 12,062 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Dining RR's 14,926 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Locker Rm's 29,853 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Lounge/Dining 29,853 Mechanical & Electrical A/C WS Heat Pump, 12 Ton - Cardio 35,582 Mechanical & Electrical Steam Bath Generator - Steam Showers 6,709 Misc Building Components Door, Roll-Up Grille, 22 x 7 - Parking Garage 14,335 Misc Building Components Finish, Vinyl/Rubber Floor - Fitness Aerobics 14,050 Misc Site Improvements Fountain, Equip Allowance 14,523 Misc Site Improvements Fountain, Equip Allowance 14,523 Misc Site Improvements Fountain, Equip Allowance 14,523 Dreux Isaac & Associates, Inc. Page 4-8 Reserve Study Report

34 Category Description Cost Misc Site Improvements Fountain, Equip Allowance 14,523 Misc Site Improvements Fountain, Equip Allowance 14,523 Misc Site Improvements Fountain, Equip Allowance 14,523 Misc Site Improvements Fountain, Equip Allowance 14,523 Misc Site Improvements Fountain, Lake, Pump/Motor Allowance 8,594 Misc Site Improvements Fountain, Lake, Pump/Motor Allowance - (2 Total) 17,187 Misc Site Improvements Bridge, Pedestrian, Concrete - Gazebo - Bridge 36,412 Misc Site Improvements Light Bollard - Cabana Walkways 64,186 Misc Site Improvements Light Bollard - Pool Areas 9,215 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 7,262 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 7,262 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 6,923 Misc Site Improvements Tennis Court Resurfacing, Clay 39,508 Misc Site Improvements Bridge, Concrete - Deferred Maintenance 145,234 Furniture, Fixtures & Equipment Computer Server - Accounting 9,877 Furniture, Fixtures & Equipment Computer Server - Management 9,877 Furniture, Fixtures & Equipment Computer Workstation 7,262 Furniture, Fixtures & Equipment Computer Workstation, POS 2,615 Furniture, Fixtures & Equipment Computer Workstation, POS 7,846 Furniture, Fixtures & Equipment Fitness, Weight Bench 3,738 Furniture, Fixtures & Equipment Laundry, Commercial Dryer 23,237 Furniture, Fixtures & Equipment Laundry, Commercial Washer 21,474 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Allowance 7,262 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Bar & Grill Allowance 37,783 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Areas Allowance 15,836 Year 13 Total 1,046,574 Year 14: 2024 Misc Site Improvements Light Pole & Fixture, 12' Globe 780,867 Misc Site Improvements Light Pole & Fixture, Globe - Vehicular Bridge 6,046 Misc Site Improvements Fence, Alum Picket, 3.5' - Fence - Kiddie Pool 7,855 Misc Site Improvements Pool Finish, Ceramic Tile - Beach Pool 18,153 Misc Site Improvements Pool Finish, Exposed Aggregate - Beach Pool 94,106 Misc Site Improvements Pool Finish, Exposed Aggregate - Kiddie Pool 4,563 Misc Site Improvements Tennis Court Light Pole - Court #4 6,583 Year 14 Total 918,173 Year 15: 2025 Painting & Waterproofing Expansion Joints - Planters Only 189,478 Paving Asphalt Sealcoat & Restripe 35,481 Misc Building Components Finish, Epoxy Floor Coating - Beach Bar & Grill Bldg 17,839 Misc Site Improvements Park, Bench, 6' 20,569 Misc Site Improvements Tennis Court Resurfacing, Clay 41,914 Furniture, Fixtures & Equipment Computer Workstation 7,704 Furniture, Fixtures & Equipment Fitness, Cardio, Treadmill 46,418 Year 15 Total 359,403 Dreux Isaac & Associates, Inc. Page 4-9 Reserve Study Report

35 Category Description Cost Year 16: 2026 Painting & Waterproofing Paint Exterior - Perimeter Wall 13,313 Painting & Waterproofing Paint Exterior and Interior - Beach Bar & Grill Bldg 7,082 Misc Building Components Finish, Carpet - Fitness 15,428 Misc Building Components Finish, Mirror Wall Panels - Fitness 15,838 Misc Site Improvements Sign Letters & Logo Allowance 31,771 Misc Site Improvements Sign, DOT Spec, 6' Alum Pole 39,713 Misc Site Improvements Light Fixture, Landscape Uplight, Allowance 65,030 Misc Site Improvements Light Fixture, Mini Landscape Uplight - Allowance 20,046 Furniture, Fixtures & Equipment Fitness, Weight Machine, Abdominal 4,793 Furniture, Fixtures & Equipment Fitness, Weight Machine, Arm Curl 4,412 Furniture, Fixtures & Equipment Fitness, Weight Machine, Back Extension 4,339 Furniture, Fixtures & Equipment Fitness, Weight Machine, Cable Crossover 6,213 Furniture, Fixtures & Equipment Fitness, Weight Machine, Chest Press 4,793 Furniture, Fixtures & Equipment Fitness, Weight Machine, Chin/Up Assist 4,590 Furniture, Fixtures & Equipment Fitness, Weight Machine, Glute 4,440 Furniture, Fixtures & Equipment Fitness, Weight Machine, Hip Abduction/Adduction 7,160 Furniture, Fixtures & Equipment Fitness, Weight Machine, Leg Curl 4,950 Furniture, Fixtures & Equipment Fitness, Weight Machine, Leg Extension 4,607 Furniture, Fixtures & Equipment Fitness, Weight Machine, Leg Press 6,443 Furniture, Fixtures & Equipment Fitness, Weight Machine, Pulldown 4,412 Furniture, Fixtures & Equipment Fitness, Weight Machine, Row/Rear Delt 4,412 Furniture, Fixtures & Equipment Fitness, Weight Machine, Shoulder Press 4,421 Furniture, Fixtures & Equipment Fitness, Weight Machine, Smith Press Station 4,825 Furniture, Fixtures & Equipment Fitness, Weight Machine, Tricep Press 4,610 Furniture, Fixtures & Equipment Fitness, Weight Set, Dumbbells 5,446 Furniture, Fixtures & Equipment Maint, Utility Vehicle, Golf Cart 49,523 Year 16 Total 342,610 Year 17: 2027 Paving Asphalt Sealcoat & Restripe 37,642 Misc Building Components Finish, Clg, 2x2 SAT - Beach Bar & Grill Bldg 20,099 Misc Building Components Finish, Vinyl Wall Panels - Beach Bar & Grill Bldg 19,947 Misc Building Components Spa Finish, Ceramic Tile - Locker Rm 16,346 Misc Site Improvements Fountain, Lighting Allowance 36,174 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 8,173 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 8,173 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 7,791 Misc Site Improvements Tennis Court Resurfacing, Clay 44,467 Misc Site Improvements Tennis Fence, VC Chain Link 67,433 Furniture, Fixtures & Equipment Computer Server - Accounting 11,117 Furniture, Fixtures & Equipment Computer Server - Management 11,117 Furniture, Fixtures & Equipment Computer Workstation 8,173 Furniture, Fixtures & Equipment Computer Workstation, POS 2,944 Dreux Isaac & Associates, Inc. Page 4-10 Reserve Study Report

36 Category Description Cost Furniture, Fixtures & Equipment Computer Workstation, POS 8,831 Furniture, Fixtures & Equipment Fitness, Cardio, Elliptical 28,834 Furniture, Fixtures & Equipment Laundry, Commercial Washer 12,084 Year 17 Total 349,345 Year 18: 2028 Roofs Roof, Metal Panel - Beach Club Bldg 23,578 Roofs Roof, Metal Panel - Gatehouse Bldg (2 Total) 14,147 Roofs Roof, Modified Membrane - Beach Club Bldg 88,347 Roofs Roof, Modified Membrane - Gatehouse Bldg (2 Total) 18,740 Painting & Waterproofing Paint Interior - Security Office & Hallway 2,409 Painting & Waterproofing Paint Interior - Teen Rm 5,128 Elevators Elevator Cab Allowance - Beach Club Bldg 50,510 Elevators Elevator Cab Refurbishment Allowance - Pool Deck 50,510 Elevators Elevator Modernization Allowance - Beach Club Bldg 75,770 Elevators Elevator Modernization Allowance - Pool Deck 50,513 Mechanical & Electrical A/C Package Unit, 3 Ton - Beach Bar & Grill Bldg 12,124 Misc Building Components Bar Renovation - Beach Bar & Grill Bldg 16,837 Misc Site Improvements Site Wall, Block Pier - Gazebo - Bridge 18,862 Misc Site Improvements Site Wall, Block Pier - Gazebo - Dock 9,431 Misc Site Improvements Pool Deck Stone Pavers 164,304 Misc Site Improvements Site Wall, 8" CBS - Site Wall 420,996 Misc Site Improvements Site Wall, Pilaster - Vehicular Gate Systems (2 Total) 14,147 Misc Site Improvements Site Wall, Block Pilaster - Tennis Awning (4 Total) 18,862 Misc Site Improvements Tennis Court Light Fixture 48,054 Misc Site Improvements Tennis Court Light Pole 40,748 Furniture, Fixtures & Equipment Furnishings/Decorating - Lounge & Dining 210,578 Furniture, Fixtures & Equipment Furnishings/Decorating - Tennis Lounge/Bar 64,201 Furniture, Fixtures & Equipment Furnishings/Decorating - Tennis Office 40,125 Furniture, Fixtures & Equipment Furniture, Outdoor - Tennis 16,607 Year 18 Total 1,475,528 Year 19: 2029 Painting & Waterproofing Expansion Joints - Except Planters 211,605 Painting & Waterproofing Paint Exterior and Interior - Gatehouse Bldg (2 Total) 6,332 Painting & Waterproofing Paint Exterior and Interior - Maintenance Bldg 12,635 Painting & Waterproofing Paint Exterior and Waterproof - Beach Club Bldg 59,431 Painting & Waterproofing Paint Interior - Beach Club Bldg 71,590 Painting & Waterproofing Paint Interior - Beach Pool Snack/Bath Bldg 2,567 Painting & Waterproofing Paint Interior - Parking Garage 31,149 Paving Asphalt Sealcoat & Restripe 39,934 Misc Site Improvements Pool Equipment, Heater, Gas - Beach Pool 26,193 Misc Site Improvements Pool Finish, Ceramic Tile - Grand Pool 29,020 Misc Site Improvements Pool Finish, Exposed Aggregate/Aquafin - Grand Pool 421,412 Misc Site Improvements Spa Finish, Ceramic Tile Trim - Grand 5,203 Dreux Isaac & Associates, Inc. Page 4-11 Reserve Study Report

37 Category Description Cost Misc Site Improvements Spa Finish, Exposed Aggregate - Grand 5,290 Misc Site Improvements Tennis Court Resurfacing, Clay 47,175 Furniture, Fixtures & Equipment Computer Workstation 8,671 Furniture, Fixtures & Equipment Electronics, Phone System Allowance 34,683 Furniture, Fixtures & Equipment Electronics, Sound System Allowance - Fitness 19,838 Furniture, Fixtures & Equipment Fitness, Cardio, Recumbent Bike 18,191 Furniture, Fixtures & Equipment Fitness, Cardio, Stair Stepper 10,147 Furniture, Fixtures & Equipment Fitness, Cardio, Stationary Bike 7,909 Furniture, Fixtures & Equipment Fitness, Weight Bench 4,464 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Allowance 8,671 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Bar & Grill Allowance 45,115 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Areas Allowance 18,909 Year 19 Total 1,146,134 Year 20: 2030 Paving Asphalt Overlay, 1.5" - Beach Club Dr 27,442 Paving Asphalt Overlay, 1.5" - Lake Dr 40,642 Paving Asphalt Overlay, 1.5" - Lake Villa Dr 40,432 Paving Asphalt Overlay, 1.5" - Maintenance P Lot 8,580 Paving Asphalt Overlay, 1.5" - North Club Dr 63,854 Paving Asphalt Overlay, 1.5" - Resort Villas P Lot 54,008 Paving Asphalt Overlay, 1.5" - South Club Dr 63,854 Paving Asphalt Overlay, 1.5" - Tennis P Lot 20,292 Misc Site Improvements Light Fixture, Sign Uplight - Building Entry Feature 40,642 Misc Site Improvements Light Fixture, Sign Uplight - Signage - Street & Traffic 18,063 Misc Site Improvements Pool Equipment, Heater, Gas - Grand Pool 26,979 Misc Site Improvements Spa Equipment, Heater, Nat Gas - Grand 4,243 Year 20 Total 409,031 Year 21: 2031 Paving Asphalt Sealcoat & Restripe 42,366 Mechanical & Electrical A/C Air Handler Unit, 7.5 Ton - Tennis Offices 8,806 Mechanical & Electrical A/C Air Handler Unit, 10 Ton - Tennis Card/Pro Shop 11,689 Mechanical & Electrical A/C Air Handler Unit, 15 Ton - Tennis Lounge/Bar 18,222 Mechanical & Electrical A/C Condensing Unit, 7.5 Ton - Tennis Offices 9,111 Mechanical & Electrical A/C Condensing Unit, 10 Ton - Tennis Card/Pro Shop 12,379 Mechanical & Electrical A/C Condensing Unit, 15 Ton - Tennis Lounge/Bar 18,908 Mechanical & Electrical A/C Package Unit, 15 Ton - Kitchen 42,545 Misc Building Components Finish, Carpet - Card Rm 3,644 Misc Building Components Finish, Carpet - Dining Areas 42,890 Misc Building Components Finish, Carpet - Locker Rm 8,943 Misc Building Components Finish, Carpet - Member Lounge 3,644 Misc Building Components Finish, Carpet - Mgmt Offices 16,063 Misc Building Components Finish, Carpet - Tennis Common Areas 25,492 Misc Building Components Finish, Rubber Tile Floor - Fitness 4,111 Dreux Isaac & Associates, Inc. Page 4-12 Reserve Study Report

38 Category Description Cost Misc Building Components Finish, Wall Covering - Fitness 10,544 Misc Building Components Finish, Wall Covering - Massage Rm 6,612 Misc Site Improvements Railing, Alum Picket, 3.5' - Gazebo - Bridge 10,930 Misc Site Improvements Railing, Alum Picket, 3.5' - Gazebo - Dock 8,603 Misc Site Improvements Light Fixture, Landscape Uplight, Allowance 75,387 Misc Site Improvements Light Fixture, Mini Landscape Uplight - Allowance 23,238 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 9,199 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 9,199 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 8,769 Misc Site Improvements Fence, Alum Picket - Fencing 367,869 Misc Site Improvements Tennis Court Light Pole Arm 30,412 Misc Site Improvements Tennis Court Resurfacing, Clay 50,048 Furniture, Fixtures & Equipment Computer Server - Accounting 12,512 Furniture, Fixtures & Equipment Computer Server - Management 12,512 Furniture, Fixtures & Equipment Computer Workstation 9,199 Furniture, Fixtures & Equipment Computer Workstation, POS 3,313 Furniture, Fixtures & Equipment Computer Workstation, POS 9,939 Furniture, Fixtures & Equipment Fitness, Cardio, Spinning Bike 20,983 Furniture, Fixtures & Equipment Laundry, Commercial Dryer 14,718 Year 21 Total 962,799 Year 22: 2032 Painting & Waterproofing Paint Exterior - Perimeter Wall 15,897 Painting & Waterproofing Paint Exterior and Interior - Beach Bar & Grill Bldg 8,456 Mechanical & Electrical A/C Package Unit, 8 Ton - Mgmt Office 19,708 Misc Building Components Trellis, PT Wood - Beach Bar & Grill Bldg 58,269 Misc Building Components Finish, Carpet - Fitness 18,422 Furniture, Fixtures & Equipment Fitness, Cardio, Treadmill 57,088 Year 22 Total 177,840 Year 23: 2033 Paving Asphalt Sealcoat & Restripe 44,946 Mechanical & Electrical Steam Bath Generator - Steam Showers 9,017 Misc Building Components Finish, Ceramic Tile Floor - Security Office 18,778 Misc Site Improvements Tennis Court Resurfacing, Clay 53,096 Furniture, Fixtures & Equipment Computer Workstation 9,759 Furniture, Fixtures & Equipment Laundry, Commercial Dryer 31,229 Furniture, Fixtures & Equipment Laundry, Commercial Washer 28,859 Furniture, Fixtures & Equipment Maint, Utility Vehicle, Golf Cart 60,907 Year 23 Total 256,591 Year 24: 2034 Painting & Waterproofing Waterproof Membrane - Beach Club Bldg Pavers 680,199 Mechanical & Electrical A/C Cooling Tower, Stainless Steel, 150 Tons 120,623 Dreux Isaac & Associates, Inc. Page 4-13 Reserve Study Report

39 Category Description Cost Mechanical & Electrical Generator, Diesel, 150 kw 99,523 Misc Building Components Finish, Epoxy Floor Coating - Beach Bar & Grill Bldg 23,276 Misc Site Improvements Fountain, Lighting Allowance 44,489 Misc Site Improvements Gazebo, PT Wood - Gazebo - Bridge 16,083 Misc Site Improvements Gazebo, PT Wood - Gazebo - Dock 16,083 Misc Site Improvements Pool Finish, Ceramic Tile - Beach Pool 24,397 Misc Site Improvements Pool Finish, Exposed Aggregate - Beach Pool 126,470 Misc Site Improvements Pool Finish, Exposed Aggregate - Kiddie Pool 6,133 Year 24 Total 1,157,276 Year 25: 2035 Painting & Waterproofing Paint Exterior and Interior - Gatehouse Bldg (2 Total) 7,560 Painting & Waterproofing Paint Exterior and Interior - Maintenance Bldg 15,087 Painting & Waterproofing Paint Exterior and Waterproof - Beach Club Bldg 70,964 Painting & Waterproofing Paint Interior - Beach Club Bldg 85,483 Painting & Waterproofing Paint Interior - Beach Pool Snack/Bath Bldg 3,066 Painting & Waterproofing Paint Interior - Parking Garage 37,194 Painting & Waterproofing Waterproof Planters 2,664,820 Paving Asphalt Sealcoat & Restripe 47,683 Mechanical & Electrical A/C Condensing Wtr Pump/Motor, 7.5 Hp - Cooling Twr 23,755 Mechanical & Electrical A/C WS Heat Pump, 5 Ton - Aerobics 10,427 Mechanical & Electrical A/C WS Heat Pump, 5 Ton - Mid Level 10,427 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Casual Dining 34,394 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Formal Dining 17,197 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Lobby 17,197 Mechanical & Electrical A/C WS Heat Pump, 8 Ton - Normal Dining 17,197 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Dining RR's 21,281 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Locker Rm's 42,563 Mechanical & Electrical A/C WS Heat Pump, 10 Ton - Lounge/Dining 42,563 Mechanical & Electrical A/C WS Heat Pump, 12 Ton - Cardio 50,731 Mechanical & Electrical Steam Bath Generator - Steam Showers 9,566 Misc Building Components Door, Roll-Up Grille, 22 x 7 - Parking Garage 20,438 Misc Building Components Finish, Vinyl/Rubber Floor - Fitness Aerobics 20,032 Misc Site Improvements Fountain, Equip Allowance 20,707 Misc Site Improvements Fountain, Equip Allowance 20,707 Misc Site Improvements Fountain, Equip Allowance 20,707 Misc Site Improvements Fountain, Equip Allowance 20,707 Misc Site Improvements Fountain, Equip Allowance 20,707 Misc Site Improvements Fountain, Equip Allowance 20,707 Misc Site Improvements Fountain, Equip Allowance 20,707 Misc Site Improvements Fountain, Lake, Pump/Motor Allowance 12,252 Misc Site Improvements Fountain, Lake, Pump/Motor Allowance - (2 Total) 24,505 Misc Site Improvements Light Bollard - Cabana Walkways 91,513 Misc Site Improvements Light Bollard - Pool Areas 13,139 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 10,353 Dreux Isaac & Associates, Inc. Page 4-14 Reserve Study Report

40 Category Description Cost Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 10,353 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 9,870 Misc Site Improvements Tennis Court Resurfacing, Clay 56,329 Furniture, Fixtures & Equipment Computer Server - Accounting 14,082 Furniture, Fixtures & Equipment Computer Server - Management 14,082 Furniture, Fixtures & Equipment Computer Workstation 10,353 Furniture, Fixtures & Equipment Computer Workstation, POS 3,729 Furniture, Fixtures & Equipment Computer Workstation, POS 11,186 Furniture, Fixtures & Equipment Fitness, Cardio, Elliptical 36,526 Furniture, Fixtures & Equipment Fitness, Weight Bench 5,330 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Allowance 10,353 Furniture, Fixtures & Equipment Furniture, Outdoor - Beach Bar & Grill Allowance 53,870 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Areas Allowance 22,578 Year 25 Total 3,824,977 Year 26: 2036 Painting & Waterproofing Paint Interior - Security Office & Hallway 3,052 Painting & Waterproofing Paint Interior - Teen Rm 6,496 Misc Building Components Trellis, PT Wood - Beach Club Bldg 140,072 Misc Site Improvements Light Fixture, Landscape Uplight, Allowance 87,395 Misc Site Improvements Light Fixture, Mini Landscape Uplight - Allowance 26,940 Furniture, Fixtures & Equipment Furniture, Outdoor - Tennis 21,037 Year 26 Total 284,992 Year 27: 2037 Paving Asphalt Sealcoat & Restripe 50,587 Misc Site Improvements Park, Bench, 6' 29,327 Misc Site Improvements Pool Equipment, Heater, Gas - Beach Pool 33,180 Misc Site Improvements Tennis Court Resurfacing, Clay 59,760 Furniture, Fixtures & Equipment Computer Workstation 10,984 Furniture, Fixtures & Equipment Laundry, Commercial Washer 16,240 Year 27 Total 200,078 Year 28: 2038 Roofs Roof, Modified Membrane - Beach Bar & Grill Bldg 17,989 Painting & Waterproofing Paint Exterior - Perimeter Wall 18,982 Painting & Waterproofing Paint Exterior and Interior - Beach Bar & Grill Bldg 10,097 Paving Pavers, Interlocking - Beach Bar & Grill 152,723 Paving Pavers, Interlocking - Beach Cabana Walkways 230,532 Paving Pavers, Interlocking - Beach Club Entry Drive 63,817 Paving Pavers, Interlocking - Beach Club Lane 67,793 Paving Pavers, Interlocking - Beach Club Walkways 178,659 Paving Pavers, Interlocking - Club Tower 1 170,339 Paving Pavers, Interlocking - Club Tower 2 154,491 Dreux Isaac & Associates, Inc. Page 4-15 Reserve Study Report

41 Category Description Cost Paving Pavers, Interlocking - Club Tower 3 88,580 Paving Pavers, Interlocking - Club Tower Drive 207,114 Paving Pavers, Interlocking - Club Towers Entry Drive 201,695 Paving Pavers, Interlocking - Fountain Club Tower 2 29,376 Paving Pavers, Interlocking - Lake Tower 170,479 Paving Pavers, Interlocking - Lake Villa 1 127,619 Paving Pavers, Interlocking - Lake Villa 2 91,127 Paving Pavers, Interlocking - Lake Villa 3 154,858 Paving Pavers, Interlocking - Lake Walkways 280,948 Paving Pavers, Interlocking - Ocean Tower 1 50,347 Paving Pavers, Interlocking - Ocean Tower 2 56,360 Paving Pavers, Interlocking - Property Entrance North 290,980 Paving Pavers, Interlocking - Property Entrance South 322,281 Paving Pavers, Interlocking - Resort Villas P Lot 193,305 Paving Pavers, Interlocking - Road Intersections 185,649 Paving Pavers, Interlocking - Tennis Parking Lot 85,579 Paving Pavers, Interlocking - Tennis Walkways 110,754 Mechanical & Electrical A/C Package Unit, 3 Ton - Beach Bar & Grill Bldg 16,294 Misc Building Components Bar Renovation - Beach Bar & Grill Bldg 22,627 Misc Building Components Finish, Ceramic Tile Floor - Beach Bar & Grill Bldg RR 10,826 Misc Building Components Finish, Ceramic Tile Walls - Beach Bar & Grill Bldg RR 21,766 Misc Building Components Restroom Renovation - Beach Bar & Grill Bldg 26,592 Misc Building Components Bar Renovation - Beach Club Bldg 33,941 Misc Building Components Bar Renovation - Tennis Center 21,570 Misc Building Components Finish, Carpet - Fitness 21,997 Misc Building Components Finish, Wood Floor - Tennis Lounge/Bar 25,056 Misc Building Components Restroom Renovation - Beach Club Bldg Dining RR 36,359 Misc Building Components Restroom Renovation - Beach Club Bldg Locker Rm 86,160 Misc Building Components Renovation - Beach Pool Snack/Bath Bldg 68,002 Misc Site Improvements Retaining Wall, Masonry Block & Concrete 49,413 Misc Site Improvements Sign Letters & Logo Allowance 45,297 Misc Site Improvements Pool Deck Brick Pavers 214,316 Misc Site Improvements Pool Equipment, Heater, Gas - Grand Pool 34,176 Misc Site Improvements Spa Equipment, Heater, Nat Gas - Grand 5,375 Misc Site Improvements Bulkhead, Concrete, Precast 226,270 Misc Site Improvements Culvert, Drainage Allowance 114,321 Furniture, Fixtures & Equipment Electronics, Phone System Allowance 45,254 Furniture, Fixtures & Equipment Electronics, Sound System Allowance - Fitness 25,884 Furniture, Fixtures & Equipment Fitness, Cardio, Recumbent Bike 23,736 Furniture, Fixtures & Equipment Fitness, Cardio, Stair Stepper 13,240 Furniture, Fixtures & Equipment Fitness, Cardio, Stationary Bike 10,319 Year 28 Total 4,911,264 Dreux Isaac & Associates, Inc. Page 4-16 Reserve Study Report

42 Category Description Cost Year 29: 2039 Painting & Waterproofing Expansion Joints - Except Planters 284,380 Paving Asphalt Sealcoat & Restripe 53,668 Misc Building Components Finish, Ceramic Tile Floor - Dining RR 13,617 Misc Building Components Finish, Ceramic Tile Floor - Kitchen 55,583 Misc Building Components Finish, Ceramic Tile Floor - Locker Rm 41,475 Misc Building Components Finish, Ceramic Tile Floor - Massage Rm 4,275 Misc Building Components Finish, Ceramic Tile Walls - Dining RR 31,071 Misc Building Components Finish, Ceramic Tile Walls - Kitchen 82,324 Misc Building Components Finish, Ceramic Tile Walls - Locker Rm 104,450 Misc Building Components Finish, Clg, 2x4 SAT - Kitchen 64,239 Misc Building Components Finish, Marble Tile - Lobby & Dining 203,589 Misc Building Components Finish, Vinyl Tile - Mgmt Office Kitchen 1,493 Misc Building Components Spa Finish, Ceramic Tile - Locker Rm 23,306 Misc Building Components Finish, Ceramic Tile Band - Gatehouse Bldg (2 Total) 7,549 Misc Building Components Finish, Ceramic Tile Floor - Gatehouse Bldg (2 Total) 1,755 Misc Building Components Finish, Ceramic Tile Flr - Beach Pool Snack/Bath Bldg 29,449 Misc Building Components Finish, Ceramic Tile W - Beach Pool Snack/Bath Bldg 31,566 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Beach Pool 11,653 Misc Site Improvements Pool Equipment, Pump/Motor/Filter - Grand Pool 11,653 Misc Site Improvements Pool Finish, Ceramic Tile - Grand Pool 39,000 Misc Site Improvements Pool Finish, Exposed Aggregate/Aquafin - Grand Pool 566,343 Misc Site Improvements Spa Equipment, Pump/Motor/Filter - Grand 11,109 Misc Site Improvements Spa Finish, Ceramic Tile Trim - Grand 6,992 Misc Site Improvements Spa Finish, Exposed Aggregate - Grand 7,109 Misc Site Improvements Tennis Court Light Pole - Court #4 10,255 Misc Site Improvements Tennis Court Resurfacing, Clay 63,399 Furniture, Fixtures & Equipment Computer Server - Accounting 15,850 Furniture, Fixtures & Equipment Computer Server - Management 15,850 Furniture, Fixtures & Equipment Computer Workstation 11,653 Furniture, Fixtures & Equipment Computer Workstation, POS 4,197 Furniture, Fixtures & Equipment Computer Workstation, POS 12,590 Furniture, Fixtures & Equipment Fitness, Cardio, Treadmill 70,211 Year 29 Total 1,891,653 Year 30: 2040 Misc Building Components Finish, Mirror Wall Panels - Fitness 23,957 Misc Site Improvements Sign, DOT Spec, 6' Alum Pole 60,070 Furniture, Fixtures & Equipment Furnishings/Decorating - Lounge & Dining 300,234 Furniture, Fixtures & Equipment Maint, Utility Vehicle, Golf Cart 74,908 Year 30 Total 459,169 Dreux Isaac & Associates, Inc. Page 4-17 Reserve Study Report

43 Section 5 Photographs This section of the report includes various photographs of the property and were taken during the initial field inspection.

44 Beach Club Bldg Foyer, Lobby Dreux Isaac & Associates, Inc. Page 5-1 Reserve Study Report

45 Member Lounge Card Room Dreux Isaac & Associates, Inc. Page 5-2 Reserve Study Report

46 Fitness Bar & Lounge Dreux Isaac & Associates, Inc. Page 5-3 Reserve Study Report

47 Lounge & Dining Dining Dreux Isaac & Associates, Inc. Page 5-4 Reserve Study Report

48 Private Dining Beach Club Kitchen Dreux Isaac & Associates, Inc. Page 5-5 Reserve Study Report

49 Spa Massage Room Dreux Isaac & Associates, Inc. Page 5-6 Reserve Study Report

50 Parking Garage Garage Gate Dreux Isaac & Associates, Inc. Page 5-7 Reserve Study Report

51 A/C Cooling Tower, Stainless Steel, 150 Tons Generator, Diesel, 150 kw Dreux Isaac & Associates, Inc. Page 5-8 Reserve Study Report

52 Beach Bar & Grill Bldg Beach Pool Snack/Bath Bldg Dreux Isaac & Associates, Inc. Page 5-9 Reserve Study Report

53 Gatehouse Bldg Maintenance Bldg Dreux Isaac & Associates, Inc. Page 5-10 Reserve Study Report