Reserve Study Project No Prepared for Whisper Canyon Homeowners Association Castle Pines North, Colorado

Transcription

1 Reserve Study Project No Prepared for Whisper Canyon Homeowners Association Castle Pines North, Colorado Prepared by 1130 West 124 th Avenue, Suite 100 Westminster, Colorado June 24, 2010

2 TABLE OF CONTENTS Whisper Canyon Homeowners Association Reserve Study Summary 1 Reserve Study Component Report 5 Reserve Component Detail 20 Reserve Study Annual Expenditure Spread Sheet 22 Reserve Study Annual Expenditure Detail 26 Final Reserve Study Summary 30 Final Reserve Study Projection Graph 31 Final Reserve Study Projection 32

3 June 24, 2010 Ms. Kim Maguire Whisper Canyon Homeowners Association c/o Premier Property Management Horizon Trail Castle Rock, Colorado Re: Whisper Canyon Homeowners Association, Castle Pines North, Colorado Reserve Study Project No Dear Members of the Board of Directors: has been commissioned by Whisper Canyon Homeowners Association to prepare a Reserve Study. The purpose of this Reserve Study is to evaluate the common-area components for major repair, maintenance and replacement items that are the responsibility of the Whisper Canyon Homeowners Association. This Study provides a limited-scope evaluation of the existing condition and remaining life of the common-area components. The Study also includes estimated costs for the major repair, maintenance and replacement items to enable the Association to establish an adequate level of reserve funds for the upkeep of the property. Community Description Whisper Canyon Homeowners Association consists of 42 single-family homes that were built between 2000 and The Association maintenance responsibilities consist of streets, street lights, fencing, two shelters for mail boxes, two entry gates, and irrigated, landscaped areas. Approach To prepare this Reserve Study, has completed the necessary research, the component report, the cost estimates, the financial projections, and the projection interpretation. The Study identifies each reserve component, estimates the quantities of the reserve components and assigns major action items to those components. A major action item is defined as anything estimated to be over $1,000. Reserve cost estimates were determined from bids received from similar projects, unit costs obtained from projects of similar size and scope, past expenditures on similar work and cost estimating guides (RS Means, Walkers Builders Estimators Reference Book, Dodge Unit Cost Guide). We use typical useful lives and unit costs, presuming the systems were properly installed in compliance with local code requirements, manufacturer installation requirements and original construction documents. This Reserve Study is not intended to be a construction compliance assessment or maintenance manual. The Study was prepared based on visual observations. The Study comments on the locations, physical description, the component condition, age, expected useful life, effective useful life, recommendations, and assigns action items to the components during the term of the Study. PAGE 1

4 The projections were assembled using the cash flow method. This method develops a reserve funding plan where contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until a desired funding program is achieved. The assigned action items and replacement costs for the component items are entered into our in-house projection software and the reserve projections include the following information: A summary page with general information about the Association and the projection summary results. The starting reserve fund balance and a projection starting date. Inflation factor, interest rate, tax rate (on interest earned), and loan rate if applicable. Monthly, bi-annual, annual, or special assessment contributions to the fund. A 20-year projection graph that displays the reserve fund balance and incorporates the assessment contribution, future estimated expenditures, inflation, interest, tax (on interest earned if applicable). A report detailing the estimated expenditures assigned to the individual reserve items. A chronological breakdown of the estimated reserve items in a calendar format. A monthly breakdown of the projections over the 20 year period. There are three different reserve projections in the Study that were prepared in the following ways: Existing Reserve Projection The existing reserve projection is based upon current reserve fund contribution levels. Preliminary Reserve Projection The preliminary reserve projection is identical to the existing reserve projection except the reserve fund contributions are modified to allow the funds to cover the expenses over the term of the Study. Final Reserve Projection The final reserve projection is produced after the board of directors and/or management has had the opportunity to review and comment on the existing and preliminary reserve projections. Since the Study is to be a working plan that the Association will endorse and utilize, input is requested on the following items: Reserve items or estimated expenditures listed in the existing and preliminary projections. Timing of estimated expenditures listed in the existing and preliminary projections. Homeowner contributions, either through special assessments or regular assessments. Note: Although costs for projects are beyond the control of, suggestions can be made for alternative materials or repair methods as requested by the Board of Directors or the Property Management Company. PAGE 2

5 recommends updating the Reserve Study annually or at least every two years to account for changes in inflation, reserve account interest rates, product life and other variables. Reference Material The following references were provided to for this Reserve Study by the Management Company and/or the Board of Directors: Community site map Declarations March 2010 financial balance sheet and income statement Interest rate earned on invested capital funds Historical expense and past capital project information Exclusions Items not included in this Study are: Non-common or non-limited common area components. Association components with work that have estimated costs below the reserve component threshold amount of $1,000. Long lasting items with estimated economic lives exceeding 30 years, such as sanitary sewers or building structural components. However, these items are included if they are known to have a fairly predictable anticipated useful life that falls within the span of the projection. Normal monthly operating items, i.e., taxes, insurance, snow plowing, utilities, cleaning and landscape maintenance, etc., are typically not funded by the reserve account. Disclaimer This Reserve Study was prepared specifically for Whisper Canyon Homeowners Association. The information contained within this document has been assembled in conjunction with the client and is intended to assist the client with its reserve planning and funding. has performed visual site observations of the project to identify components and action items. These observations are non-invasive in nature and do not include any testing, verification of the original intent of the designer, or compliance with industry standards. does not guarantee, either explicitly or implied, that all repair and replacement items have been identified, the accuracy of the probable costs or the product lives associated with these items. In providing the opinions of probable replacement costs, the client understands that has no control over costs or the price of labor, equipment or materials, or over the contractor s method of pricing, and that the opinions of probable replacement costs provided herein are made on the basis of s qualifications and experience. makes no warranty, expressed or implied, as to the accuracy of such opinions as compared to bid or actual costs. All comments made are based on conditions seen at the time of this visual observation. We do not accept any responsibility for unknown or unknowable conditions within the existing site or structures. PAGE 3

6 If you have any questions regarding this report, please do not hesitate to contact our office. Sincerely, Neil L. Mekelburg, P.E., R.S. Principal PAGE 4

7 Reserve Study Component Report A. Topography and Grading A1. Site Grading and Drainage Location: At the two community entrances and throughout the individual lots in the community. Description: The surface drainage and grading of the common-area portions of the site, primarily at the two entrances, do not require significant maintenance due to the use of natural surface slope and drainage paths in the development of these areas. The ground-surface areas of the individual lots in the community do play a significant role in the effectiveness of the roadway drainage. Lots sloping up from the asphalt roadways must control erosion associated with surface drainage, in order to maintain flow in the concrete gutters and into the storm sewer inlet. Lots sloping down from the asphalt roadways must control surface drainage and erosion in a manner sufficient to maintain the stability of the earth supporting the roadway. Condition: Good to fair condition. We noted some landscaping and active landscaping projects at individual lots where erosion and poor landscaping maintenance has allowed debris to flow over the concrete curb and into the concrete gutter, thus inhibiting flow. Age: 10 years old. Expected Useful Life: Indefinite. Effective Useful Life: Indefinite. Action(s): Cyclically check and clean debris from the concrete gutters and drainage inlets every year, to ensure proper flow of the surface storm drainage. The cost associated with this action is not included in the Study because normally associations perform this as a maintenance item and the cost is considered an operating expense. We recommend monitoring and addressing individual lots where owners have modified their landscaping in a manner inappropriate for the effectiveness of the community drainage as a whole. The cost associated with this action is not included in the Study because normally associations perform this as a maintenance item and the cost is considered an operating expense. PAGE 5

8 B. Paving B1. Asphalt Drive Location: Throughout the community. Description: From information given to us by community representatives during our site visit and from evidence gathered on site, we believe the asphalt received a number of full-depth patches located at the penetrations of the underground water and sewer vaults shortly after the initial asphalt installation and before the community was completed. Condition: Good to fair condition. Overall the asphalt is in good condition, with little deterioration or surface cracking. At the locations of the full-depth patches, above the water and sewer vaults, there is major cracking and separation of the asphalt that extends completely through the asphalt and to the grade below. Average crack width was 3/4 inch to 1 inch, with a maximum crack width in one location of 2 inches. Age: 10 years old. Expected Useful Life: 20 to 30 years, with cyclical maintenance. Effective Useful Life: 10 to 20 years. Eventually, the asphalt will reach the end of its useful life and will need to be replaced. Action(s): Repair the asphalt using infrared patching in We were provided a budget for this action by the Association. Seal coat and crack fill the asphalt surface in We were provided a budget for this action by the Association. Crack fill and seal coat the asphalt surface with a polymer-modified product in We were provided a budget for this action by the Association. Cape-seal the asphalt surface in We were provided a budget for this action by the Association. Cyclically seal coat and crack fill the asphalt surface every 3 years, starting in We were provided a budget for this action by the Association. PAGE 6

9 C. Flatwork C1. Concrete Walkways Location: In front of the mail kiosk structures at each of the community s entrances. Description: The walkways are presumed to be on-grade, non-reinforced, colored and stamped concrete slabs. There are control joints that appear to be cut into the top one inch of the slab approximately every 48 inches. Condition: Good condition with no major cracking or deterioration noted. In future replacements, we recommend pouring the slab with its own clean and straight edge, as opposed to mating the edge of the concrete to the adjacent and crumbled concrete curb (see bottom photo). By properly terminating the edge of each component, concrete slab and adjacent concrete curb, and sealing any indifference between the two, future sectional replacements can occur more easily and attractively without consideration of the adjacent material or components. Age: 10 years old. Expected Useful Life: 20 to 30 years. Typically we recommend cyclical sectional replacement, but due to the small quantity of concrete and the minimal cracking and displacement note, we are recommending complete replacement at the end of the concrete s life. Effective Useful Life: 10 to 20 years. Action(s): Cyclically remove and replace the concrete walkways every 25 years, starting in Inspect the surface and repair any cracks or deteriorating concrete walkways every year. This cost is not included in the Study because normally associations perform this as a maintenance item and the cost is considered an operating expense. PAGE 7

10 C2. Curb and Gutter Location: Throughout the community adjacent to the asphalt pavement. Description: There are two different styles of concrete curb and gutter in the community. There are 6-inch tall curbs with 12-inch deep gutters at the two landscaped islands at each entrance to the community. The remaining curb and gutter throughout the community consists of mountable 4- inch tall curbs with 24-inch deep gutters. Condition: Fair condition. The leading edges of the concrete curbs, where contacting the asphalt, are considerably chipped, cracked and damaged, and appear to have been so since their initial installation. Various locations of the curb and gutter are cracked and displaced. Age: 10 years old. Expected Useful Life: 30 to 40 years. We recommend cyclically sectional replacement as opposed to complete replacement. Effective Useful Life: Cyclical sectional replacement. Action(s): Cyclically remove and replace damaged sections of the concrete curb and gutter every 6 years, starting in This work should be performed prior to the asphalt crack fill and seal coat work occurring on the same schedule. Inspect the surface and repair any cracks or deteriorating concrete curbs every year. This cost is not included in the Study because normally associations perform this as a maintenance item and the cost is considered an operating expense. PAGE 8

11 D. Landscaping and Appurtenances D1. Entrance Monuments Location: At the entrances to the community. Description: 10- to 12-inch diameter log posts, approximately 5-feet high, with two horizontal wood members supporting decorative font, metal lettering. The wood is coated in a heavilypigmented stain. Condition: Good condition. Age: 10 years old. Expected Useful Life: 20 to 25 years, with staining every 3 years. Effective Useful Life: 10 to 15 years. Action(s): Cyclically stain the entrance monuments every 5 years, starting in The cost associated with this action is included in the fence staining budgeted under component D7 of this study. Remove and replace the entrance monuments in PAGE 9

12 D2. Community Signs Location: Throughout the community Description: The majority of the signs in the community are wood with raised wood lettering supported by 4 x 6 and 4 x 4 wood posts embedded into the earth. Condition: Good condition. Age: 10 years old. Expected Useful Life: Typically building signage is updated every 15 to 20 years, if maintained properly. Effective Useful Life: 5 to 10 years. Action(s): Remove and replace the community signs in PAGE 10

13 D3. Rock Walls Location: In the landscaping along Buffalo Trail and at the community entrances. Description: There are three different styles of natural rock wall. The two landscaped islands at the community entrances are bordered in an angled, smooth-faced rock wall design. These walls appear to be dry-stacked and without drainage at the retained earth behind the wall. The walls adjacent to the entrance gates appear to be gravity supported, yet possibly adhered to a CMU structure supported by a spread footing. This wall is decorative in nature and does not retain earth for the majority of its length, other than a small section at the northern entrance gates. Most of the walls in the community are of the third type, dry-stacked, natural rock retaining walls. These walls generally do not exceed two-feet in height. We noted some evidence of materials in the wall for providing drainage in the soil retained behind the wall. Condition: Good condition. We noted some displacement and damage to the top courses of the dry-stacked walls, as is typical for the construction method. Age: 10 years old. Expected Useful Life: Indefinite, depending on the design of the wall and the stability of the supporting and adjacent soil. Effective Useful Life: 40+ years, with maintenance. Action(s): Cyclically repair the wall every year, where dry-stacked rocks have shifted, collapsed or been displaced, starting in The cost associated with this action is not included in the Study because normally associations perform this as a maintenance item and the cost is considered an operating expense. PAGE 11

14 D4. Vehicular Entrance Gates Location: At each entry to the community. Description: Metal gate assemblies with vertical wood elements. Each gate section projects approximately 12 feet from the hinges. We were informed that the hinges at the south gate had recently been replaced with oiled hinges and the hinges at the north gate were re-welded approximately 3 years ago. Condition: Good condition. Age: 10 years old. Expected Useful Life: 20 to 30 years, depending on frequency of use and aesthetic preferences. Effective Useful Life: 10 to 20 years. Action(s): Cyclically scrape, rust proof, paint and make minor repairs to the gates every 5 years, starting in Remove and replace the entrance gates in PAGE 12

15 D5. Vehicular Entrance Gate Operators Location: At each vehicular entrance gate. Description: There are four gate operators by Elite, each with 1/2 hp motors. Each gate assembly is provided a Door King DKS keypad, security console. We were informed that an electromagnetic loop is located in the asphalt behind each gate for automatic-exiting operation. Condition: The security keypads and door operators appeared to be in satisfactory condition. We noted the cover to the operator mechanism was missing on one of the operators. Age: 10 years old. Expected Useful Life: Security keypad consoles 15 to 18 years. Gate operators 15 to 20 years, with 5-year motor replacements. Effective Useful Life: Security keypad consoles 5 to 8 years. Gate operators 5 to 10 years. Action(s): Cyclically remove and replace a portion of the gate operator motors every 5 years, starting in Remove and replace the gate operators in Remove and replace the keypad security consoles in PAGE 13

16 D6. Flagstone Pathway Location: At each entrance vehicular gate. Description: Flagstone pathway supported on grade with grouted joints. Condition: Good condition. Age: 10 years old. Expected Useful Life: Indefinite, depending on frequency of use and stability of supporting earth. Effective Useful Life: Indefinite. Action(s): Cyclically repair the grouted joints and damaged stone every year starting in The cost associated with this action is not included in the Study because normally associations perform this as a maintenance item and the cost is considered an operating expense. PAGE 14

17 D7. Two-Rail Fence Location: Along the edge of the community, adjacent to Buffalo Trail and the community to the north. Description: The fence is a two-rail fence with 10- to 12-inch diameter natural log posts. The rough-sawn 2x8 horizontal rails are secured to the posts with a single lag screw at each end. The fence is coated in a highly-pigmented stain. Condition: Good to fair condition. We noted some peeling stain along the top edges of the horizontal rails and some splitting at the fastener locations. Age: 10 years old. Expected Useful Life: 20 to 25 years. Effective Useful Life: 10 to 15 years. Action(s): Cyclically stain the fence every 5 years, starting in Remove and replace the fence in PAGE 15

18 D8. Lighting Units Location: In the landscaped islands and landscaping adjacent the monument signs at the entrances to the community. Description: Heavy, cast-iron, 120V landscape lighting by Kim. Condition: Good to fair condition. We were informed that the lights are not favored by the community and cost approximately $800 each to replace. Age: 10 years old. Expected Useful Life: 15 to 25 years, depending on frequency of use and aesthetic preferences. Effective Useful Life: We were informed that the community is interested in replacing the lights with low-voltage lighting. Action(s): Remove and replace the landscape lighting with two low-voltage systems in PAGE 16

19 D9. Mailbox Kiosks Location: At each entrance to the community. Description: CMU structures with adhered, natural stone veneer. There is a rough-timber roof structure with a corrugated metal panel roof covering. The architectural style of the kiosks is rustic construction. There are 8 metal mailbox clusters by Auth-Florence of varying styles and box arrangements. Condition: Good to fair condition. We noted some warping of the wood materials due to insufficient fastening, as well as loose and displaced stones. Age: The structure is 10 years old, with 4-year-old mailbox clusters. Expected Useful Life: Wood portions of structure 15 to 20 years, with maintenance. Mailbox clusters 20 to 25 years. Effective Useful Life: Wood portions of structure 5 to 10 years, with maintenance. Mailbox clusters 16 to 21 years. Action(s): Cyclically stain the wood elements 5 years, starting in The cost associated with this action is included in the fence staining budgeted under component D7 of this study. Remove and replace the mailbox clusters in The life expectancy of the mailbox clusters should exceed the term of this Study. PAGE 17

20 D10. Vegetation Location: Throughout the landscaped common areas along Buffalo Trail and at the community entrances. Description: Various species of trees and shrubs. Condition: Good condition. The majority of the vegetation is well established. Age: Varies. Expected Useful Life: Indefinite, depending on care and species health. Effective Useful Life: Varies. Action(s): Remove and replace the diseased or dead trees every 3 years, starting in PAGE 18

21 D11. Irrigation System Location: Throughout landscaped common areas. Description: The irrigation systems are composed of Rain Bird controls, backflow preventers, drip lines and sprinklers Condition: Presumed in good condition. Age: Varies. Irrigation systems are normally repaired as needed and major components are replaced through reserve funds. Expected Useful Life: Cyclical replacement. Effective Useful Life: Cyclical replacement. Action(s): Cyclically replace damaged irrigation system components every 2 years, starting in PAGE 19

22 Whisper Canyon Homeowners Association Castle Rock, Colorado Reserve Component Detail Description Date in Service Year Replacement Useful Adjustment Remaining Asphalt Drive and Parking Areas Cape seal the asphalt surfaces units 78, ,665 Crack fill and seal with polymer-modifi unit 18, ,231 Cyclically seal coat and crack fill unit 1, ,388 Infrared patching unit Seal coat and crack fill units 1, ,388 Asphalt Drive and Parking Areas - Total $100,344 Units Cost Unit Cost Current Concrete Walkways Remove and replace the concrete walk square feet ,016 Concrete Walkways - Total $6,016 Curb and Gutter Cyclically remove and replace damage ,362 linear feet ,139 Curb and Gutter - Total $36,139 Entrance Monuments Remove and replace the entrance mon units 1, ,000 Entrance Monuments - Total $2,000 Community Signs Remove and replace community signs unit 2, ,020 Community Signs - Total $2,020 Vehicular Entrance Gates Cyclically scrape, rust proof, paint and.. unfunded Remove and replace the vehicular gates units 2, ,600 Vehicular Entrance Gates - Total $4,600 Vehicular Entrance Gate Operators Remove and replace a portion of the m units ,400 Remove and replace the operators units 2, ,800 Remove and replace the security keyp units 2, ,200 Vehicular Entrance Gate Operators - Total $15,400 Flagstone Pathway Two-Rail Fence Cyclically stain the fence ,112 linear feet ,392 Remove and replace the fence ,060 linear feet ,840 Two-Rail Fence - Total $36,232 PAGE 20

23 Whisper Canyon Homeowners Association Castle Rock, Colorado Reserve Component Detail Description Date in Service Year Replacement Useful Adjustment Remaining Lighting Units Replace the landscape lighting with lo units 2, ,000 Lighting Units - Total $5,000 Units Cost Unit Cost Current Mailbox Kiosks Remove and replace the mailbox cluste units ,400 Mailbox Kiosks - Total $6,400 Vegetation Remove and replace dead vegetation unit 1, ,500 Vegetation - Total $1,500 Irrigation System Cyclically replace damaged irrigation sy unit 1, ,000 Irrigation System - Total $1,000 Total Asset Summary $216,651 PAGE 21

24 Whisper Canyon Homeowners Association Castle Rock, Colorado Reserve Study Annual Expenditure Spread Sheet Description Asphalt Drive and Parking Areas Cape seal the asphalt surfaces 93,930 Crack fill and seal with polymer-modifi.. 19,922 Cyclically seal coat and crack fill 1,811 Infrared patching 672 Seal coat and crack fill 1,388 Asphalt Drive and Parking Areas Total: 2,060 19,922 93,930 1,811 Concrete Walkways Remove and replace the concrete walk.. Concrete Walkways Total: Curb and Gutter Cyclically remove and replace damage.. 36,139 43,151 Curb and Gutter Total: 36,139 43,151 Entrance Monuments Remove and replace the entrance mon.. Entrance Monuments Total: Community Signs Remove and replace community signs Community Signs Total: Vehicular Entrance Gates Cyclically scrape, rust proof, paint and.. Remove and replace the vehicular gates Vehicular Entrance Gates Total: unfunded Vehicular Entrance Gate Operators Remove and replace a portion of the m.. 1,400 Remove and replace the operators 10,202 Remove and replace the security keyp.. 6,395 Vehicular Entrance Gate Operators Total: 1,400 10,202 6,395 PAGE 22

25 Whisper Canyon Homeowners Association Castle Rock, Colorado Reserve Study Annual Expenditure Spread Sheet Description Two-Rail Fence Cyclically stain the fence 7,392 8,569 Remove and replace the fence Two-Rail Fence Total: 7,392 8,569 Lighting Units Replace the landscape lighting with lo.. 5,304 Lighting Units Total: 5,304 Mailbox Kiosks Remove and replace the mailbox cluste.. Vegetation Remove and replace dead vegetation 1,545 1,688 1,845 Vegetation Total: 1,545 1,688 1,845 Irrigation System Cyclically replace damaged irrigation sy.. 1,000 1,061 1,126 1,194 1,267 Irrigation System Total: 1,000 1,061 1,126 1,194 1,267 Year Total: 47,991 1,545 6,365 19,922 2,814 18, ,276 8,240 1,267 1,811 PAGE 23

26 Whisper Canyon Homeowners Association Castle Rock, Colorado Reserve Study Annual Expenditure Spread Sheet Description Asphalt Drive and Parking Areas Cape seal the asphalt surfaces Crack fill and seal with polymer-modifi.. Cyclically seal coat and crack fill 1,979 2,162 2,363 Infrared patching Seal coat and crack fill Asphalt Drive and Parking Areas Total: 1,979 2,162 2,363 Concrete Walkways Remove and replace the concrete walk.. 9,373 Concrete Walkways Total: 9,373 Curb and Gutter Cyclically remove and replace damage.. 51,525 61,524 Curb and Gutter Total: 51,525 61,524 Entrance Monuments Remove and replace the entrance mon.. 3,116 Entrance Monuments Total: 3,116 Community Signs Remove and replace community signs 2,715 Community Signs Total: 2,715 Vehicular Entrance Gates Cyclically scrape, rust proof, paint and.. unfunded Remove and replace the vehicular gates 7,167 Vehicular Entrance Gates Total: 7,167 Vehicular Entrance Gate Operators Remove and replace a portion of the m.. 1,881 2,181 Remove and replace the operators Remove and replace the security keyp.. Vehicular Entrance Gate Operators Total: 1,881 2,181 PAGE 24

27 Whisper Canyon Homeowners Association Castle Rock, Colorado Reserve Study Annual Expenditure Spread Sheet Description Two-Rail Fence Cyclically stain the fence 9,934 Remove and replace the fence 44,932 Two-Rail Fence Total: 9,934 44,932 Lighting Units Replace the landscape lighting with lo.. Lighting Units Total: Mailbox Kiosks Remove and replace the mailbox cluste.. Vegetation Remove and replace dead vegetation 2,016 2,203 2,407 2,630 Vegetation Total: 2,016 2,203 2,407 2,630 Irrigation System Cyclically replace damaged irrigation sy.. 1,344 1,426 1,513 1,605 1,702 Irrigation System Total: 1,344 1,426 1,513 1,605 1,702 Year Total: 17,890 54,930 2,203 1,513 68,931 4,012 65,589 2,630 PAGE 25

28 Whisper Canyon Homeowners Association Reserve Study Annual Expenditure Detail Description Expenditures Replacement Year 2011 Asphalt Drive and Parking Areas Infrared patching 672 Seal coat and crack fill 1,388 Curb and Gutter Cyclically remove and replace damaged sections 36,139 Vehicular Entrance Gate Operators Remove and replace a portion of the motors in the gate op.. 1,400 Two-Rail Fence Cyclically stain the fence 7,392 Irrigation System Cyclically replace damaged irrigation system components 1,000 Total for 2011 $47,991 Replacement Year 2012 Vegetation Remove and replace dead vegetation 1,545 Total for 2012 $1,545 Replacement Year 2013 Lighting Units Replace the landscape lighting with low-voltage systems 5,304 Irrigation System Cyclically replace damaged irrigation system components 1,061 Total for 2013 $6,365 Replacement Year 2014 Asphalt Drive and Parking Areas Crack fill and seal with polymer-modified coating 19,922 Total for 2014 $19,922 Replacement Year 2015 Vegetation Remove and replace dead vegetation 1,688 Irrigation System Cyclically replace damaged irrigation system components 1,126 Total for 2015 $2,814 PAGE 26

29 Whisper Canyon Homeowners Association Reserve Study Annual Expenditure Detail Description Expenditures Replacement Year 2016 Vehicular Entrance Gate Operators Remove and replace the operators 10,202 Two-Rail Fence Cyclically stain the fence 8,569 Total for 2016 $18,771 Replacement Year 2017 Asphalt Drive and Parking Areas Cape seal the asphalt surfaces 93,930 Curb and Gutter Cyclically remove and replace damaged sections 43,151 Irrigation System Cyclically replace damaged irrigation system components 1,194 Total for 2017 $138,276 Replacement Year 2018 Vehicular Entrance Gate Operators Remove and replace the security keypad consoles 6,395 Vegetation Remove and replace dead vegetation 1,845 Total for 2018 $8,240 Replacement Year 2019 Irrigation System Cyclically replace damaged irrigation system components 1,267 Total for 2019 $1,267 Replacement Year 2020 Asphalt Drive and Parking Areas Cyclically seal coat and crack fill 1,811 Total for 2020 $1,811 Replacement Year 2021 Community Signs Remove and replace community signs 2,715 PAGE 27

30 Whisper Canyon Homeowners Association Reserve Study Annual Expenditure Detail Description Expenditures Replacement Year 2021 continued... Vehicular Entrance Gate Operators Remove and replace a portion of the motors in the gate op.. 1,881 Two-Rail Fence Cyclically stain the fence 9,934 Vegetation Remove and replace dead vegetation 2,016 Irrigation System Cyclically replace damaged irrigation system components 1,344 Total for 2021 $17,890 No Replacement in 2022 Replacement Year 2023 Asphalt Drive and Parking Areas Cyclically seal coat and crack fill 1,979 Curb and Gutter Cyclically remove and replace damaged sections 51,525 Irrigation System Cyclically replace damaged irrigation system components 1,426 Total for 2023 $54,930 Replacement Year 2024 Vegetation Remove and replace dead vegetation 2,203 Total for 2024 $2,203 Replacement Year 2025 Irrigation System Cyclically replace damaged irrigation system components 1,513 Total for 2025 $1,513 Replacement Year 2026 Asphalt Drive and Parking Areas Cyclically seal coat and crack fill 2,162 PAGE 28

31 Whisper Canyon Homeowners Association Reserve Study Annual Expenditure Detail Description Expenditures Replacement Year 2026 continued... Concrete Walkways Remove and replace the concrete walkways 9,373 Entrance Monuments Remove and replace the entrance monuments 3,116 Vehicular Entrance Gates Remove and replace the vehicular gates 7,167 Vehicular Entrance Gate Operators Remove and replace a portion of the motors in the gate op.. 2,181 Two-Rail Fence Remove and replace the fence 44,932 Total for 2026 $68,931 Replacement Year 2027 Vegetation Remove and replace dead vegetation 2,407 Irrigation System Cyclically replace damaged irrigation system components 1,605 Total for 2027 $4,012 No Replacement in 2028 Replacement Year 2029 Asphalt Drive and Parking Areas Cyclically seal coat and crack fill 2,363 Curb and Gutter Cyclically remove and replace damaged sections 61,524 Irrigation System Cyclically replace damaged irrigation system components 1,702 Total for 2029 $65,589 Replacement Year 2030 Vegetation Remove and replace dead vegetation 2,630 Total for 2030 $2,630 PAGE 29

32 Whisper Canyon Homeowners Association Castle Rock, Colorado Final Reserve Study Summary Report Date June 24, 2010 Account Number Budget Year Beginning January 01, 2011 Budget Year Ending December 31, 2011 Total Units 42 Report Parameters Inflation 3.00% Annual Assessment Increase 0.00% Interest Rate on Reserve Deposit 1.50% Tax Rate on Interest 0.00% Contingency 1.00% 2011 Beginning Balance $181, Final Funding Model Summary of Calculations Required Monthly Contribution $2, $51.90 per unit monthly Average Net Monthly Interest Earned $ Total Monthly Allocation to Reserves $2, $56.33 per unit monthly PAGE 30

33 Whisper Canyon Homeowners Association Final Reserve Study Projection Graph 350, , , , , ,000 50,000 0 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 Annual Expenditures Funding Model Projected Ending Balance PAGE 31

34 Whisper Canyon Homeowners Association Final Reserve Study Projection Beginning Balance: $181,575 Projected Current Annual Annual Annual Ending Year Cost Contribution Interest Expenditures Reserves ,651 26,160 2,231 47, , ,028 26,160 2,637 1, , ,659 26,160 2,975 6, , ,489 26,160 3,115 19, , ,004 26,160 3,514 2, , ,635 26,160 3,679 18, , ,464 26,160 2, , , ,750 26,160 2,343 8, , ,092 26,160 2,754 1, , ,565 26,160 3,163 1, , ,172 26,160 3,336 17, , ,917 26,160 3, , ,804 26,160 3,404 54, , ,838 26,160 3,817 2, , ,024 26,160 4,247 1, , ,364 26,160 3,665 68, , ,865 26,160 4,055 4, , ,531 26,160 4, , ,367 26,160 3,984 65, , ,378 26,160 4,400 2, ,731 PAGE 32