Sample Reserve Study. Sample. Anywhere, USA. Report #: For Period Beginning: January 1, 2016 Expires: December 31, 2016

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1 Sample Reserve Study Sample Anywhere, USA Report #: For Period Beginning: January 1, 2016 Expires: December 31, 2016 Date Prepared: May 13, 2015

2 Hello, and welcome to your Reserve Study! W e don t want you to be surprised. This Report is designed to help you anticipate, and prepare for, the major common area expenses your association will face. Inside you will find: 1) The Reserve Component List (the Scope and Schedule of your Reserve projects) telling you what your association is Reserving for, what condition they are in now, and what they ll cost to replace. 2) An Evaluation of your current Reserve Fund Size and Strength (Percent Funded). This tells you your financial starting point, revealing your risk of deferred maintenance and special assessments. 3) A Recommended Multi-Year Reserve Funding Plan, answering the question What do we do now? More Questions? Visit our website at or call us at: 303/ Association Reserves Colorado, LLC 5/13/2015

3 Table of Contents 3- Minute Executive Summary... i Reserve Study Summary... i Reserve Component List Table 1... ii Introduction, Objectives, and Methodology... 1 Which Physical Assets are Funded by Reserves?...2 How do we establish Useful Life and Remaining Useful Life estimates?...2 How do we establish Current Repair/Replacement Cost Estimates?...2 How much Reserves are enough?...3 How much should we contribute?...4 What is our Recommended Funding Goal?...4 Projected Expenses... 6 Expense Graph Figure Reserve Fund Status & Recommended Funding Plan... 7 Funding Plan Graph Figure Cash Flow Graph Figure % Funded Graph Figure Table Descriptions... 9 Reserve Component List Detail Table Contribution & Fund Breakdown Table Component Significance Table Year Reserve Plan Summary Table Year Reserve Plan Year by Year Detail Table Accuracy, Limitations, and Disclosures Terms and Definitions Appendix Association Reserves Colorado, LLC 5/13/2015

4 3- Minute Executive Summary Association: Sample #: Location: Anywhere, USA # of Units: 150 Report Period: January 1, 2016 through December 31, 2016 Findings/Recommendations as-of 1/1/2016: Projected Starting Reserve Balance:... $111,438 Current Fully Funded Reserve Balance:... $1,281,406 Average Reserve Deficit Per Unit:... $7,800 Recommended 2016 Monthly Full Funding Contributions:... $17,550 Alternate Minimum Contributions to keep Reserves above $0:... $13,350 Recommended 2016 Special Assessment for Reserves:... $0 Most Recent Budgeted Reserve Contribution Rate:... $10,164 Economic Assumptions: Net Annual After Tax Interest Earnings Accruing to Reserves % Annual Inflation Rate % This is an Full Reserve Study. We performed our on-site inspection on March 17, This Report was prepared by a credentialed Reserve Specialist (RS #260). Your Reserve Fund is currently 9% Funded. This means the association s special assessment & deferred maintenance risk is currently high. The objective of your multi-year Funding Plan is to fund your Reserves to a level where you will enjoy a low risk of such Reserve cash flow problems. Based on this starting point, your anticipated future expenses, our recommendation is to increase your Reserve contributions in order to be within the 70% to 100% level as noted above. 100% Full and 70% contribution rates are designed to achieve these funding objectives by the end of our 30-year report scope. No assets appropriate for Reserve designation were excluded. See photo appendix or component details; the basis of our assumptions. Association Reserves Colorado, LLC i 5/13/2015

5 Table 1: Executive Summary Useful Rem. Current Life Useful Cost # Component (yrs) Life (yrs) Estimate Sites/Grounds 2103 Parking Structure - Seal/Repair 1 0 $1, Parking Deck - Seal/Repair 5 4 $50, Walkway Deck - Seal/Repair 5 2 $9, Fencing: Metal - Repair/Paint 5 1 $3, Garage Doors - Replace $8, Entry Monument - Refurbish/Replace 10 5 $4, Metal Lettering - Replace $6, Pole Lights - Replace 30 9 $14, Bollard Lights - Replace 15 9 $3,500 Building Exteriors 2315 Balcony Decks - Seal/Repair 4 0 $36, Balcony Deck - Resurface $115, Balcony Rails - Repaint 4 0 $36, Balcony Rails - Replace $236, Building Exterior - Seal/Paint 15 0 $84, Windows/Sliders - Replace $332, Roof: Low Slope - Replace 20 5 $135, Skylights - Replace 25 5 $5,000 Building Interiors 2401 Interior Surfaces - Repaint 10 1 $32, Wallcoverings - Replace 15 7 $2, Tile Flooring - Replace $56, Carpet - Replace 10 1 $74, Engineered Hardwood Floor - Replace $2, Ceiling Panels - Replace $13, Mailboxes - Replace $12, Interior Signs - Replace $25, Bathrooms - Remodel $16, Offices - Remodel 15 7 $11, IT Equipment - Replace 4 1 $3, Business Center/Café - Remodel 15 7 $7, Entry Areas - Remodel 15 7 $11, Stairwells - Repaint 20 5 $19, Kitchen - Remodel 10 7 $7, Kitchen Appliances - Replace 10 7 $5, Laundry Rooms - Remodel $5,000 Mechanical 2501 Entry Access System - Replace 12 4 $4, Gate Operators - Replace 6 4 $7, Traction Elevator - Modernize $350, Elevators - Cab Remodel 10 2 $16, Elevator Room Condenser - Replace $2, Elevator Room Split Sys. - Replace 15 2 $3,500 Association Reserves Colorado, LLC ii 5/13/2015

6 Table 1: Executive Summary Useful Rem. Current Life Useful Cost # Component (yrs) Life (yrs) Estimate 2520 Make Up Air Unit - Replace 25 5 $75, Exhaust Hoods - Replace 20 2 $9, Cooling Tower - Refurbish 10 8 $9, Cooling Tower - Replace $300, Roof Motors & Pumps - Allowance 5 3 $7, Trash Compactor - Replace $19, Security System - Modernize 10 7 $13, Generator - Replace $135, Fire Control System- Update/Replace $121, Fire Pumps - Allowance 5 2 $9, CO Monitors - Replace 7 5 $5, Domestic Water Tanks - Replace $11, Tankless Water Heater - Replace ('15) $3, Tankless Water Heaters - Replace $21, Heat Boilers - Replace $100,000 Amenities 2805 BBQs - Replace 10 8 $2, Fitness Room - Remodel $8, Cardio Equipment - Replace 5 0 $11, Strength Equipment - Replace 10 0 $13, Exterior Furnishings - Replace 10 3 $11, Pool/Patio Furniture - Replace 10 8 $10, Pool Deck - Seal/Repair 5 2 $3, Coping Tiles - Replace 30 2 $8, Pool - Resurface 15 2 $11, Spa - Resurface 5 0 $4, Pool/Spa Filters - Replace $3, Pool Heater - Replace 10 0 $6, Spa Heater - Replace 10 0 $3, Pool Restrooms - Refurbish $5, Total Funded Components Note 1: a Useful Life of N/A means a one-time expense, not expected to repeat. Note 2: Yellow highlighted line items are expected to require attention in the initial year, green highlighted items are expected to occur within the first five years. Association Reserves Colorado, LLC iii 5/13/2015

7 Assoc Introduction A Reserve Study is the art and science of anticipating, and preparing for, an association s major common area repair and replacement expenses. Partially art, because in this field we are making projections about the future. Partially science, because our work is a combination of research and welldefined computations, following consistent National Reserve Study Standard principles. The foundation of this and every Reserve Study is your Reserve Component List (what you are reserving for). This is because the Reserve Component List defines the scope and schedule of all your anticipated upcoming Reserve projects. Based on that List and your starting balance, we calculate the association s Reserve Fund Strength (reported in terms of Percent Funded ). Then we compute a Reserve Funding Plan to provide for the Reserve needs of the association. These form the three results of your Reserve Study. Reserve contributions are not for the future. Reserve contributions are designed to offset the ongoing, daily deterioration of your Reserve assets. Done well, a stable, budgeted Reserve Funding Plan will collect sufficient funds from the owners who enjoyed the use of those assets, so the association is financially prepared for the irregular expenditures scattered through future years when those projects eventually require replacement. Methodology For this Update With-Site-Visit Reserve Study, we started with a review of your prior Reserve Study, then looked into recent Reserve expenditures, evaluated how expenditures are handled (ongoing maintenance vs Reserves), and researched any well-established association precedents. We performed an on-site inspection to evaluate your common areas, updating and adjusting your Reserve Component List as appropriate. Association Reserves Colorado, LLC 1 5/13/2015

8 Assoc Which Physical Assets are Funded by Reserves? There is a national-standard four-part test to determine which expenses should appear in your Reserve Component List. First, it must be a common area maintenance responsibility. Second, the component must have a limited life. Third, the remaining life must be predictable (or it by definition is a surprise which cannot be accurately anticipated). Fourth, the component must be above a minimum threshold cost (often between.5% and 1% of an association s total budget). This limits Reserve Components to major, predictable expenses. Within this framework, it is inappropriate to include lifetime components, unpredictable expenses (such as damage due to fire, flood, or earthquake), and expenses more appropriately handled from the Operational Budget or as an insured loss. How do we establish Useful Life and Remaining Useful Life estimates? 1) Visual Inspection (observed wear and age) 2) Association Reserves database of experience 3) Client History (install dates & previous life cycle information) 4) Vendor Evaluation and Recommendation How do we establish Current Repair/Replacement Cost Estimates? In this order 1) Actual client cost history, or current proposals 2) Comparison to Association Reserves database of work done at similar associations 3) Vendor Recommendations 4) Reliable National Industry cost estimating guidebooks Association Reserves Colorado, LLC 2 5/13/2015

9 Assoc How much Reserves are enough? Reserve adequacy is not measured in cash terms. Reserve adequacy is found when the amount of current Reserve cash is compared to Reserve component deterioration (the needs of the association). Having enough means the association can execute its projects in a timely manner with existing Reserve funds. Not having enough typically creates deferred maintenance or special assessments. Adequacy is measured in a two-step process: 1) Calculate the value of deterioration at the association (called Fully Funded Balance, or FFB). 2) Compare that to the Reserve Fund Balance, and express as a percentage. Each year, the value of deterioration at the association changes. When there is more deterioration (as components approach the time they need to be replaced), there should be more cash to offset that deterioration and prepare for the expenditure. Conversely, the value of deterioration shrinks after projects are accomplished. The value of deterioration (the FFB) changes each year, and is a moving but predictable target. There is high risk of special assessments and deferred maintenance when the Percent Funded is weak, below 30%. Approximately 30% of all associations are in this high risk range. While the 100% point is Ideal (indicating Reserve cash is equal to the value of deterioration), a Reserve Fund in the 70% -130% range is considered strong (low risk of special assessment). Measuring your Reserves by Percent Funded tells how well prepared your association is for upcoming Reserve expenses. New buyers should be very aware of this important disclosure! Association Reserves Colorado, LLC 3 5/13/2015

10 Assoc How much should we contribute? According to National Reserve Study Standards, there are four Funding Principles to balance in developing your Reserve Funding Plan. Our first objective is to design a plan that provides you with sufficient cash to perform your Reserve projects on time. Second, a stable contribution is desirable because it keeps these naturally irregular expenses from unsettling the budget. Reserve contributions that are evenly distributed over current and future owners enable each owner to pay their fair share of the association s Reserve expenses over the years. And finally, we develop a plan that is fiscally responsible and safe for Boardmembers to recommend to their association. Remember, it is the Board s job to provide for the ongoing care of the common areas. Boardmembers invite liability exposure when Reserve contributions are inadequate to offset ongoing common area deterioration. What is our Recommended Funding Goal? Maintaining the Reserve Fund at a level equal to the value of deterioration is called Full Funding (100% Funded). As each asset ages and becomes used up, the Reserve Fund grows proportionally. This is simple, responsible, and our recommendation. Evidence shows that associations in the % range enjoy a low risk of special assessments or deferred maintenance. Allowing the Reserves to fall close to zero, but not below zero, is called Baseline Funding. Doing so allows the Reserve Fund to drop into the 0-30% range, where there is a high risk of special assessments & deferred maintenance. Since Baseline Funding still provides for the timely execution of all Reserve projects, and only the margin of safety is different, Baseline Funding contributions average only 10% - 15% less than Full Funding contributions. Threshold Funding is the title of all other Cash or Percent Funded objectives between Baseline Funding and Full Funding. Association Reserves Colorado, LLC 4 5/13/2015

11 Assoc Site Inspection Notes During our site visit on March 17, 2015, we started with a brief meeting with the board, and then started the site inspection beginning with the mechanical equipment. We visually inspected the interiors and exteriors of the building, and were able to see the majority of the common and amenity areas. Please turn to the inventory appendix for photos and component descriptions. Association Reserves Colorado, LLC 5 5/13/2015

12 Assoc Projected Expenses While this Reserve Study looks forward 30 years, we have no expectation that all these expenses will all take place as anticipated. This Reserve Study needs to be updated annually because we expect the timing of these expenses to shift and the size of these expenses to change. We do feel more certain of the timing and cost of near-term expenses than expenses many years away. Your first five years of projected Reserve expenses total $564,636. Adding the next five years, your first ten years of projected Reserve expenses are $1,201,927. Please be aware of your near-term expenses, which we are able to project more accurately than the more distant projections. The figure below summarizes the projected future expenses at your association as defined by your Reserve Component List. A summary of these expenses are shown in Table 5, while details of the projects that make up these expenses are shown in Table 6. Annual Reserve Expenses $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Years Figure 1 Association Reserves Colorado, LLC 6 5/13/2015

13 Assoc Reserve Fund Status The starting point for our financial analysis is your Reserve Fund balance, projected to be $111,438 as-of the start of your Fiscal Year on January 1, As of January 1, 2016, your Fully Funded Balance is computed to be $1,281,406 (see Table 3). This figure represents the deteriorated value of your common area components. Comparing your Reserve Balance to your Fully Funded Balance indicates your Reserves are 9% Funded. Across the country approx 58% of associations in this range experience special assessments or deferred maintenance. Recommended Funding Plan Based on your current Percent Funded and your near-term and long-term Reserve needs, we are recommending budgeted contributions of $17,550/month this Fiscal. The overall 30-yr plan, in perspective, is shown below. This same information is shown numerically in both Table 5 and Table 6. Annual Reserve Funding Recommended Alternate (Minimum) Current Budget $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Years Figure 2 Association Reserves Colorado, LLC 7 5/13/2015

14 Assoc The following chart shows your Reserve balance under our recommended Full Funding Plan, an alternate Baseline Funding Plan, and at your current budgeted contribution rate, compared to your always-changing Fully Funded Balance target. $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500, Yr Cash Flow Target Fully Funded Balance Recommended Funding Plan Alternate (Minimum) Current Budget $ Years Figure 3 This figure shows this same information, plotted on a Percent Funded scale. 120% Percent Funded Recommended Funding Plan Alternate (Minimum) Funding Plan Current Budget 100% 80% 60% 40% 20% 0% Years Figure 4 Association Reserves Colorado, LLC 8 5/13/2015

15 Assoc Table Descriptions The tabular information in this Report is broken down into six tables. Table 1 is a summary of your Reserve Components (your Reserve Component List), the information found in Table 2. Table 2 is your Reserve Component List, which forms the foundation of this Reserve Study. This table represents the information from which all other tables are derived. Table 3 shows the calculation of your Fully Funded Balance, the measure of your current Reserve component deterioration. For each component, the Fully Funded Balance is the fraction of life used up multiplied by its estimated Current Replacement Cost. Table 4 shows the significance of each component to Reserve needs of the association, helping you see which components have more (or less) influence than others on your total Reserve contribution rate. The deterioration cost/yr of each component is calculated by dividing the estimated Current Replacement Cost by Useful Life, then that component s percentage of the total is displayed. Table 5: This table provides a one-page 30-year summary of the cash flowing into and out of the Reserve Fund, with a display of the Fully Funded Balance, Percent Funded, and special assessment risk for each year. Table 6: This table shows the cash flow detail for the next 30 years. This table makes it possible to see which components are projected to require repair or replacement each year, and the size of those individual expenses. Association Reserves Colorado, LLC 9 5/13/2015

16 Table 2: Reserve Component List Detail Rem. Useful Useful [ --- Current Cost Estimate --- ] # Component Quantity Life Life Best Case Worst Case Sites/Grounds 2103 Parking Structure - Seal/Repair ~ 21,675 GSF 1 0 $1,000 $2, Parking Deck - Seal/Repair ~ 17,600 GSF 5 4 $45,000 $55, Walkway Deck - Seal/Repair ~ 4,600 GSF 5 2 $8,000 $10, Fencing: Metal - Repair/Paint ~ 580 LF 5 1 $3,000 $4, Garage Doors - Replace (2) 11x7 Roll-Up $7,000 $10, Entry Monument - Refurbish/Replace (1) Metal 10 5 $3,000 $5, Metal Lettering - Replace (2) Signs $5,000 $7, Pole Lights - Replace (10) Pole Lights 30 9 $12,000 $16, Bollard Lights - Replace (4) Fixtures 15 9 $3,000 $4,000 Building Exteriors 2315 Balcony Decks - Seal/Repair ~ 18,144 GSF 4 0 $32,000 $41, Balcony Deck - Resurface ~ 18,144 GSF $91,000 $140, Balcony Rails - Repaint ~ 2,770 LF 4 0 $30,000 $42, Balcony Rails - Replace ~2,770 LF $222,000 $250, Building Exterior - Seal/Paint ~ 56,300 GSF 15 0 $56,000 $113, Windows/Sliders - Replace ~ (166) Windows $249,000 $415, Roof: Low Slope - Replace ~ 19,300 GSF 20 5 $116,000 $155, Skylights - Replace ~ (7) 4x $4,000 $6,000 Building Interiors 2401 Interior Surfaces - Repaint ~ 36,215 GSF 10 1 $30,000 $35, Wallcoverings - Replace ~ 320 GSF 15 7 $1,000 $3, Tile Flooring - Replace ~ 2,890 GSF $49,000 $64, Carpet - Replace ~ 1,422 GSY 10 1 $71,000 $78, Engineered Hardwood Floor - Replace ~ 570 GSF $2,000 $3, Ceiling Panels - Replace ~ 4,410 GSF $12,000 $15, Mailboxes - Replace (150) Boxes $11,000 $14, Interior Signs - Replace ~ (300) Signs $23,000 $27, Bathrooms - Remodel (2) Bathrooms $15,000 $18, Offices - Remodel Desk, chairs, etc 15 7 $10,000 $13, IT Equipment - Replace (6) Computers 4 1 $3,000 $4, Business Center/Café - Remodel ~ 810 GSF 15 7 $6,000 $8, Entry Areas - Remodel ~ 810 GSF 15 7 $11,000 $12, Stairwells - Repaint ~ 23,050 GSF 20 5 $18,000 $20, Kitchen - Remodel ~ (65x10) 10 7 $7,000 $8, Kitchen Appliances - Replace (5) Appliances 10 7 $4,000 $6, Laundry Rooms - Remodel (1) Room $4,000 $6,000 Mechanical 2501 Entry Access System - Replace (1) Access Panel 12 4 $4,000 $5, Gate Operators - Replace (2) Overhead Units 6 4 $7,000 $8, Traction Elevator - Modernize (2) 23-Stop Elevators $330,000 $370, Elevators - Cab Remodel (2) Elevator Cabs 10 2 $14,000 $18,000 Association Reserves Colorado, LLC 10 5/13/2015

17 Table 2: Reserve Component List Detail Rem. Useful Useful [ --- Current Cost Estimate --- ] # Component Quantity Life Life Best Case Worst Case 2519 Elevator Room Condenser - Replace (1) 5-Ton Goodman $2,000 $3, Elevator Room Split Sys. - Replace (1) 2-Ton Weather King 15 2 $3,000 $4, Make Up Air Unit - Replace (1) 25 Ton Carrier Unit 25 5 $70,000 $80, Exhaust Hoods - Replace (5) Hoods 20 2 $8,000 $10, Cooling Tower - Refurbish (1) Cooling Tower 10 8 $8,000 $10, Cooling Tower - Replace (1) Cooling Tower $290,000 $310, Roof Motors & Pumps - Allowance Assorted Pumps, Valves 5 3 $6,000 $8, Trash Compactor - Replace (1) Compactor $13,000 $25, Security System - Modernize (22) Cameras 10 7 $12,000 $15, Generator - Replace (350) KW $120,000 $150, Fire Control System- Update/Replace Central Fire System $112,000 $130, Fire Pumps - Allowance Central Fire System 5 2 $8,000 $10, CO Monitors - Replace ~ (4) CO Detectors 7 5 $5,000 $6, Domestic Water Tanks - Replace (2) 200 Gallon Tanks $10,000 $13, Tankless Water Heater - Replace ('15) (1) 195k BTU Units $2,000 $4, Tankless Water Heaters - Replace (7) 195k BTU Units $18,000 $25, Heat Boilers - Replace (2) 1 Million BTU $90,000 $110,000 Amenities 2805 BBQs - Replace (2) Units 10 8 $2,000 $3, Fitness Room - Remodel (1) Fitness Room $6,000 $10, Cardio Equipment - Replace (5) Pieces 5 0 $10,000 $12, Strength Equipment - Replace (5) Pieces 10 0 $12,000 $14, Exterior Furnishings - Replace ~ (43) Pieces 10 3 $10,000 $12, Pool/Patio Furniture - Replace ~ (42) Pieces 10 8 $8,000 $13, Pool Deck - Seal/Repair ~ 2,400 GSF 5 2 $2,000 $5, Coping Tiles - Replace ~ 165 LF 30 2 $7,000 $9, Pool - Resurface ~ 1,360 GSF 15 2 $9,000 $13, Spa - Resurface (1) 13' Diameter 5 0 $4,000 $5, Pool/Spa Filters - Replace (2) Sand Filters $2,000 $4, Pool Heater - Replace (1) 400K BTU Heater 10 0 $5,000 $7, Spa Heater - Replace (1) 250K BTU Heater 10 0 $3,000 $4, Pool Restrooms - Refurbish (2) Restrooms $5,000 $6, Total Funded Components Association Reserves Colorado, LLC 11 5/13/2015

18 Table 3: Fully Funded Balance Current Fully Cost Effective Useful Funded # Component Estimate X Age / Life = Balance Sites/Grounds 2103 Parking Structure - Seal/Repair $1,500 X 1 / 1 = $1, Parking Deck - Seal/Repair $50,000 X 1 / 5 = $10, Walkway Deck - Seal/Repair $9,000 X 3 / 5 = $5, Fencing: Metal - Repair/Paint $3,500 X 4 / 5 = $2, Garage Doors - Replace $8,500 X 1 / 15 = $ Entry Monument - Refurbish/Replace $4,000 X 5 / 10 = $2, Metal Lettering - Replace $6,000 X 10 / 25 = $2, Pole Lights - Replace $14,000 X 21 / 30 = $9, Bollard Lights - Replace $3,500 X 6 / 15 = $1,400 Building Exteriors 2315 Balcony Decks - Seal/Repair $36,500 X 4 / 4 = $36, Balcony Deck - Resurface $115,500 X 13 / 25 = $60, Balcony Rails - Repaint $36,000 X 4 / 4 = $36, Balcony Rails - Replace $236,000 X 12 / 30 = $94, Building Exterior - Seal/Paint $84,500 X 15 / 15 = $84, Windows/Sliders - Replace $332,000 X 14 / 30 = $154, Roof: Low Slope - Replace $135,500 X 15 / 20 = $101, Skylights - Replace $5,000 X 20 / 25 = $4,000 Building Interiors 2401 Interior Surfaces - Repaint $32,500 X 9 / 10 = $29, Wallcoverings - Replace $2,000 X 8 / 15 = $1, Tile Flooring - Replace $56,500 X 10 / 20 = $28, Carpet - Replace $74,500 X 9 / 10 = $67, Engineered Hardwood Floor - Replace $2,500 X 10 / 30 = $ Ceiling Panels - Replace $13,500 X 9 / 30 = $4, Mailboxes - Replace $12,500 X 8 / 25 = $4, Interior Signs - Replace $25,000 X 9 / 20 = $11, Bathrooms - Remodel $16,500 X 5 / 15 = $5, Offices - Remodel $11,500 X 8 / 15 = $6, IT Equipment - Replace $3,500 X 3 / 4 = $2, Business Center/Café - Remodel $7,000 X 8 / 15 = $3, Entry Areas - Remodel $11,500 X 8 / 15 = $6, Stairwells - Repaint $19,000 X 15 / 20 = $14, Kitchen - Remodel $7,500 X 3 / 10 = $2, Kitchen Appliances - Replace $5,000 X 3 / 10 = $1, Laundry Rooms - Remodel $5,000 X 3 / 15 = $1,000 Mechanical 2501 Entry Access System - Replace $4,500 X 8 / 12 = $3, Gate Operators - Replace $7,500 X 2 / 6 = $2, Traction Elevator - Modernize $350,000 X 13 / 25 = $182, Elevators - Cab Remodel $16,000 X 8 / 10 = $12,800 Association Reserves Colorado, LLC 12 5/13/2015

19 Table 3: Fully Funded Balance Current Fully Cost Effective Useful Funded # Component Estimate X Age / Life = Balance 2519 Elevator Room Condenser - Replace $2,500 X 3 / 15 = $ Elevator Room Split Sys. - Replace $3,500 X 13 / 15 = $3, Make Up Air Unit - Replace $75,000 X 20 / 25 = $60, Exhaust Hoods - Replace $9,000 X 18 / 20 = $8, Cooling Tower - Refurbish $9,000 X 2 / 10 = $1, Cooling Tower - Replace $300,000 X 2 / 40 = $15, Roof Motors & Pumps - Allowance $7,000 X 2 / 5 = $2, Trash Compactor - Replace $19,000 X 9 / 20 = $8, Security System - Modernize $13,500 X 3 / 10 = $4, Generator - Replace $135,000 X 21 / 40 = $70, Fire Control System- Update/Replace $121,000 X 1 / 30 = $4, Fire Pumps - Allowance $9,000 X 3 / 5 = $5, CO Monitors - Replace $5,500 X 2 / 7 = $1, Domestic Water Tanks - Replace $11,500 X 5 / 25 = $2, Tankless Water Heater - Replace ('15) $3,000 X 1 / 20 = $ Tankless Water Heaters - Replace $21,500 X 4 / 20 = $4, Heat Boilers - Replace $100,000 X 5 / 25 = $20,000 Amenities 2805 BBQs - Replace $2,500 X 2 / 10 = $ Fitness Room - Remodel $8,000 X 3 / 15 = $1, Cardio Equipment - Replace $11,000 X 5 / 5 = $11, Strength Equipment - Replace $13,000 X 10 / 10 = $13, Exterior Furnishings - Replace $11,000 X 7 / 10 = $7, Pool/Patio Furniture - Replace $10,500 X 2 / 10 = $2, Pool Deck - Seal/Repair $3,500 X 3 / 5 = $2, Coping Tiles - Replace $8,000 X 28 / 30 = $7, Pool - Resurface $11,000 X 13 / 15 = $9, Spa - Resurface $4,500 X 5 / 5 = $4, Pool/Spa Filters - Replace $3,000 X 7 / 20 = $1, Pool Heater - Replace $6,000 X 10 / 10 = $6, Spa Heater - Replace $3,500 X 10 / 10 = $3, Pool Restrooms - Refurbish $5,500 X 5 / 15 = $1,833 $1,281,406 Association Reserves Colorado, LLC 13 5/13/2015

20 Table 4: Component Significance Current Useful Cost Deterioration Deterioration # Component Life Estimate Cost/yr Significance Sites/Grounds 2103 Parking Structure - Seal/Repair 1 $1,500 $1, % 2107 Parking Deck - Seal/Repair 5 $50,000 $10, % 2107 Walkway Deck - Seal/Repair 5 $9,000 $1, % 2133 Fencing: Metal - Repair/Paint 5 $3,500 $ % 2145 Garage Doors - Replace 15 $8,500 $ % 2167 Entry Monument - Refurbish/Replace 10 $4,000 $ % 2169 Metal Lettering - Replace 25 $6,000 $ % 2175 Pole Lights - Replace 30 $14,000 $ % 2177 Bollard Lights - Replace 15 $3,500 $ % Building Exteriors 2315 Balcony Decks - Seal/Repair 4 $36,500 $9, % 2317 Balcony Deck - Resurface 25 $115,500 $4, % 2319 Balcony Rails - Repaint 4 $36,000 $9, % 2321 Balcony Rails - Replace 30 $236,000 $7, % 2343 Building Exterior - Seal/Paint 15 $84,500 $5, % 2363 Windows/Sliders - Replace 30 $332,000 $11, % 2377 Roof: Low Slope - Replace 20 $135,500 $6, % 2389 Skylights - Replace 25 $5,000 $ % Building Interiors 2401 Interior Surfaces - Repaint 10 $32,500 $3, % 2403 Wallcoverings - Replace 15 $2,000 $ % 2409 Tile Flooring - Replace 20 $56,500 $2, % 2411 Carpet - Replace 10 $74,500 $7, % 2413 Engineered Hardwood Floor - Replace 30 $2,500 $83 0.1% 2419 Ceiling Panels - Replace 30 $13,500 $ % 2421 Mailboxes - Replace 25 $12,500 $ % 2425 Interior Signs - Replace 20 $25,000 $1, % 2431 Bathrooms - Remodel 15 $16,500 $1, % 2433 Offices - Remodel 15 $11,500 $ % 2434 IT Equipment - Replace 4 $3,500 $ % 2435 Business Center/Café - Remodel 15 $7,000 $ % 2435 Entry Areas - Remodel 15 $11,500 $ % 2437 Stairwells - Repaint 20 $19,000 $ % 2441 Kitchen - Remodel 10 $7,500 $ % 2443 Kitchen Appliances - Replace 10 $5,000 $ % 2483 Laundry Rooms - Remodel 15 $5,000 $ % Mechanical 2501 Entry Access System - Replace 12 $4,500 $ % 2509 Gate Operators - Replace 6 $7,500 $1, % 2515 Traction Elevator - Modernize 25 $350,000 $14, % 2517 Elevators - Cab Remodel 10 $16,000 $1, % Association Reserves Colorado, LLC 14 5/13/2015

21 Table 4: Component Significance Current Useful Cost Deterioration Deterioration # Component Life Estimate Cost/yr Significance 2519 Elevator Room Condenser - Replace 15 $2,500 $ % 2519 Elevator Room Split Sys. - Replace 15 $3,500 $ % 2520 Make Up Air Unit - Replace 25 $75,000 $3, % 2525 Exhaust Hoods - Replace 20 $9,000 $ % 2531 Cooling Tower - Refurbish 10 $9,000 $ % 2533 Cooling Tower - Replace 40 $300,000 $7, % 2535 Roof Motors & Pumps - Allowance 5 $7,000 $1, % 2539 Trash Compactor - Replace 20 $19,000 $ % 2543 Security System - Modernize 10 $13,500 $1, % 2549 Generator - Replace 40 $135,000 $3, % 2557 Fire Control System- Update/Replace 30 $121,000 $4, % 2559 Fire Pumps - Allowance 5 $9,000 $1, % 2565 CO Monitors - Replace 7 $5,500 $ % 2567 Domestic Water Tanks - Replace 25 $11,500 $ % 2567 Tankless Water Heater - Replace ('15) 20 $3,000 $ % 2567 Tankless Water Heaters - Replace 20 $21,500 $1, % 2571 Heat Boilers - Replace 25 $100,000 $4, % Amenities 2805 BBQs - Replace 10 $2,500 $ % 2833 Fitness Room - Remodel 15 $8,000 $ % 2835 Cardio Equipment - Replace 5 $11,000 $2, % 2835 Strength Equipment - Replace 10 $13,000 $1, % 2837 Exterior Furnishings - Replace 10 $11,000 $1, % 2850 Pool/Patio Furniture - Replace 10 $10,500 $1, % 2855 Pool Deck - Seal/Repair 5 $3,500 $ % 2857 Coping Tiles - Replace 30 $8,000 $ % 2859 Pool - Resurface 15 $11,000 $ % 2861 Spa - Resurface 5 $4,500 $ % 2863 Pool/Spa Filters - Replace 20 $3,000 $ % 2867 Pool Heater - Replace 10 $6,000 $ % 2869 Spa Heater - Replace 10 $3,500 $ % 2875 Pool Restrooms - Refurbish 15 $5,500 $ % 69 Total Funded Components $151, % Association Reserves Colorado, LLC 15 5/13/2015

22 Table 5: 30-Year Reserve Plan Summary Fiscal Year Start: 01/01/16 Interest: 1.0% Inflation: 3.0% Reserve Fund Strength Calculations (All values as of Fiscal Year Start Date) Projected Reserve Balance Changes Starting Fully Special Loans or Reserve Funded Percent Assmt Reserve Special Interest Reserve Year Balance Balance Funded Risk Contribs. Assmts Income Expenses 2016 $111,438 $1,281, % High $210,600 $0 $1,190 $196, $126,728 $1,274, % High $216,918 $0 $1,765 $118, $226,446 $1,350, % High $223,426 $0 $3,021 $74, $378,100 $1,480, % High $230,128 $0 $4,847 $21, $591,767 $1,674, % Med $237,032 $0 $6,367 $153, $682,097 $1,742, % Med $244,143 $0 $6,538 $306, $626,151 $1,660, % Med $251,467 $0 $7,523 $5, $879,171 $1,891, % Med $259,011 $0 $9,633 $99, $1,048,196 $2,038, % Med $266,782 $0 $11,215 $130, $1,195,715 $2,163, % Med $274,785 $0 $12,917 $94, $1,388,821 $2,334, % Med $283,029 $0 $14,527 $168, $1,517,715 $2,441, % Med $291,520 $0 $15,627 $215, $1,608,921 $2,509, % Med $300,265 $0 $13,389 $852, $1,069,970 $1,929, % Med $309,273 $0 $12,111 $38, $1,353,171 $2,177, % Med $318,551 $0 $14,738 $90, $1,595,706 $2,386, % Med $328,108 $0 $16,806 $173, $1,766,906 $2,523, % Low $337,951 $0 $15,877 $710, $1,409,849 $2,117, % Med $348,090 $0 $15,252 $131, $1,641,789 $2,304, % Low $358,532 $0 $16,015 $453, $1,562,639 $2,173, % Low $369,288 $0 $15,836 $341, $1,605,829 $2,160, % Low $380,367 $0 $15,992 $408, $1,594,007 $2,087, % Low $391,778 $0 $16,776 $239, $1,762,583 $2,194, % Low $403,531 $0 $18,892 $167, $2,017,347 $2,387, % Low $415,637 $0 $22,161 $38, $2,416,660 $2,728, % Low $428,106 $0 $25,126 $259, $2,610,712 $2,861, % Low $440,950 $0 $26,328 $420, $2,657,140 $2,842, % Low $454,178 $0 $28,861 $22, $3,117,535 $3,241, % Low $467,803 $0 $32,949 $143, $3,475,014 $3,539, % Low $481,838 $0 $36,009 $263, $3,729,748 $3,732, % Low $496,293 $0 $37,778 $434,786 Association Reserves Colorado, LLC 16 5/13/2015

23 Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) Fiscal Year Starting Reserve Balance $111,438 $126,728 $226,446 $378,100 $591,767 Annual Reserve Contribution $210,600 $216,918 $223,426 $230,128 $237,032 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $1,190 $1,765 $3,021 $4,847 $6,367 Total Income $323,228 $345,411 $452,893 $613,076 $835,166 # Component Sites/Grounds 2103 Parking Structure - Seal/Repair $1,500 $1,545 $1,591 $1,639 $1, Parking Deck - Seal/Repair $0 $0 $0 $0 $56, Walkway Deck - Seal/Repair $0 $0 $9,548 $0 $ Fencing: Metal - Repair/Paint $0 $3,605 $0 $0 $ Garage Doors - Replace $0 $0 $0 $0 $ Entry Monument - Refurbish/Replace $0 $0 $0 $0 $ Metal Lettering - Replace $0 $0 $0 $0 $ Pole Lights - Replace $0 $0 $0 $0 $ Bollard Lights - Replace $0 $0 $0 $0 $0 Building Exteriors 2315 Balcony Decks - Seal/Repair $36,500 $0 $0 $0 $41, Balcony Deck - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $36,000 $0 $0 $0 $40, Balcony Rails - Replace $0 $0 $0 $0 $ Building Exterior - Seal/Paint $84,500 $0 $0 $0 $ Windows/Sliders - Replace $0 $0 $0 $0 $ Roof: Low Slope - Replace $0 $0 $0 $0 $ Skylights - Replace $0 $0 $0 $0 $0 Building Interiors 2401 Interior Surfaces - Repaint $0 $33,475 $0 $0 $ Wallcoverings - Replace $0 $0 $0 $0 $ Tile Flooring - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $76,735 $0 $0 $ Engineered Hardwood Floor - Replace $0 $0 $0 $0 $ Ceiling Panels - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Interior Signs - Replace $0 $0 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Offices - Remodel $0 $0 $0 $0 $ IT Equipment - Replace $0 $3,605 $0 $0 $ Business Center/Café - Remodel $0 $0 $0 $0 $ Entry Areas - Remodel $0 $0 $0 $0 $ Stairwells - Repaint $0 $0 $0 $0 $ Kitchen - Remodel $0 $0 $0 $0 $ Kitchen Appliances - Replace $0 $0 $0 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 17 5/13/2015

24 Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) Fiscal Year Mechanical 2501 Entry Access System - Replace $0 $0 $0 $0 $5, Gate Operators - Replace $0 $0 $0 $0 $8, Traction Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $16,974 $0 $ Elevator Room Condenser - Replace $0 $0 $0 $0 $ Elevator Room Split Sys. - Replace $0 $0 $3,713 $0 $ Make Up Air Unit - Replace $0 $0 $0 $0 $ Exhaust Hoods - Replace $0 $0 $9,548 $0 $ Cooling Tower - Refurbish $0 $0 $0 $0 $ Cooling Tower - Replace $0 $0 $0 $0 $ Roof Motors & Pumps - Allowance $0 $0 $0 $7,649 $ Trash Compactor - Replace $0 $0 $0 $0 $ Security System - Modernize $0 $0 $0 $0 $ Generator - Replace $0 $0 $0 $0 $ Fire Control System- Update/Replace $0 $0 $0 $0 $ Fire Pumps - Allowance $0 $0 $9,548 $0 $ CO Monitors - Replace $0 $0 $0 $0 $ Domestic Water Tanks - Replace $0 $0 $0 $0 $ Tankless Water Heater - Replace ('15) $0 $0 $0 $0 $ Tankless Water Heaters - Replace $0 $0 $0 $0 $ Heat Boilers - Replace $0 $0 $0 $0 $0 Amenities 2805 BBQs - Replace $0 $0 $0 $0 $ Fitness Room - Remodel $0 $0 $0 $0 $ Cardio Equipment - Replace $11,000 $0 $0 $0 $ Strength Equipment - Replace $13,000 $0 $0 $0 $ Exterior Furnishings - Replace $0 $0 $0 $12,020 $ Pool/Patio Furniture - Replace $0 $0 $0 $0 $ Pool Deck - Seal/Repair $0 $0 $3,713 $0 $ Coping Tiles - Replace $0 $0 $8,487 $0 $ Pool - Resurface $0 $0 $11,670 $0 $ Spa - Resurface $4,500 $0 $0 $0 $ Pool/Spa Filters - Replace $0 $0 $0 $0 $ Pool Heater - Replace $6,000 $0 $0 $0 $ Spa Heater - Replace $3,500 $0 $0 $0 $ Pool Restrooms - Refurbish $0 $0 $0 $0 $0 Total Expenses $196,500 $118,965 $74,793 $21,308 $153,069 Ending Reserve Balance: $126,728 $226,446 $378,100 $591,767 $682,097 Association Reserves Colorado, LLC 18 5/13/2015

25 Table 6: 30-Year Income/Expense Detail (yrs 5 through 9) Fiscal Year Starting Reserve Balance $682,097 $626,151 $879,171 $1,048,196 $1,195,715 Annual Reserve Contribution $244,143 $251,467 $259,011 $266,782 $274,785 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $6,538 $7,523 $9,633 $11,215 $12,917 Total Income $932,779 $885,141 $1,147,815 $1,326,192 $1,483,417 # Component Sites/Grounds 2103 Parking Structure - Seal/Repair $1,739 $1,791 $1,845 $1,900 $1, Parking Deck - Seal/Repair $0 $0 $0 $0 $65, Walkway Deck - Seal/Repair $0 $0 $11,069 $0 $ Fencing: Metal - Repair/Paint $0 $4,179 $0 $0 $ Garage Doors - Replace $0 $0 $0 $0 $ Entry Monument - Refurbish/Replace $4,637 $0 $0 $0 $ Metal Lettering - Replace $0 $0 $0 $0 $ Pole Lights - Replace $0 $0 $0 $0 $18, Bollard Lights - Replace $0 $0 $0 $0 $4,567 Building Exteriors 2315 Balcony Decks - Seal/Repair $0 $0 $0 $46,237 $ Balcony Deck - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $0 $0 $0 $45,604 $ Balcony Rails - Replace $0 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $0 $ Windows/Sliders - Replace $0 $0 $0 $0 $ Roof: Low Slope - Replace $157,082 $0 $0 $0 $ Skylights - Replace $5,796 $0 $0 $0 $0 Building Interiors 2401 Interior Surfaces - Repaint $0 $0 $0 $0 $ Wallcoverings - Replace $0 $0 $2,460 $0 $ Tile Flooring - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $0 $0 $0 $ Engineered Hardwood Floor - Replace $0 $0 $0 $0 $ Ceiling Panels - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Interior Signs - Replace $0 $0 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Offices - Remodel $0 $0 $14,144 $0 $ IT Equipment - Replace $4,057 $0 $0 $0 $4, Business Center/Café - Remodel $0 $0 $8,609 $0 $ Entry Areas - Remodel $0 $0 $14,144 $0 $ Stairwells - Repaint $22,026 $0 $0 $0 $ Kitchen - Remodel $0 $0 $9,224 $0 $ Kitchen Appliances - Replace $0 $0 $6,149 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 19 5/13/2015

26 Table 6: 30-Year Income/Expense Detail (yrs 5 through 9) Fiscal Year Mechanical 2501 Entry Access System - Replace $0 $0 $0 $0 $ Gate Operators - Replace $0 $0 $0 $0 $ Traction Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $0 $ Elevator Room Condenser - Replace $0 $0 $0 $0 $ Elevator Room Split Sys. - Replace $0 $0 $0 $0 $ Make Up Air Unit - Replace $86,946 $0 $0 $0 $ Exhaust Hoods - Replace $0 $0 $0 $0 $ Cooling Tower - Refurbish $0 $0 $0 $11,401 $ Cooling Tower - Replace $0 $0 $0 $0 $ Roof Motors & Pumps - Allowance $0 $0 $0 $8,867 $ Trash Compactor - Replace $0 $0 $0 $0 $ Security System - Modernize $0 $0 $16,603 $0 $ Generator - Replace $0 $0 $0 $0 $ Fire Control System- Update/Replace $0 $0 $0 $0 $ Fire Pumps - Allowance $0 $0 $11,069 $0 $ CO Monitors - Replace $6,376 $0 $0 $0 $ Domestic Water Tanks - Replace $0 $0 $0 $0 $ Tankless Water Heater - Replace ('15) $0 $0 $0 $0 $ Tankless Water Heaters - Replace $0 $0 $0 $0 $ Heat Boilers - Replace $0 $0 $0 $0 $0 Amenities 2805 BBQs - Replace $0 $0 $0 $3,167 $ Fitness Room - Remodel $0 $0 $0 $0 $ Cardio Equipment - Replace $12,752 $0 $0 $0 $ Strength Equipment - Replace $0 $0 $0 $0 $ Exterior Furnishings - Replace $0 $0 $0 $0 $ Pool/Patio Furniture - Replace $0 $0 $0 $13,301 $ Pool Deck - Seal/Repair $0 $0 $4,305 $0 $ Coping Tiles - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $0 $0 $ Spa - Resurface $5,217 $0 $0 $0 $ Pool/Spa Filters - Replace $0 $0 $0 $0 $ Pool Heater - Replace $0 $0 $0 $0 $ Spa Heater - Replace $0 $0 $0 $0 $ Pool Restrooms - Refurbish $0 $0 $0 $0 $0 Total Expenses $306,628 $5,970 $99,620 $130,477 $94,596 Ending Reserve Balance: $626,151 $879,171 $1,048,196 $1,195,715 $1,388,821 Association Reserves Colorado, LLC 20 5/13/2015

27 Table 6: 30-Year Income/Expense Detail (yrs 10 through 14) Fiscal Year Starting Reserve Balance $1,388,821 $1,517,715 $1,608,921 $1,069,970 $1,353,171 Annual Reserve Contribution $283,029 $291,520 $300,265 $309,273 $318,551 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $14,527 $15,627 $13,389 $12,111 $14,738 Total Income $1,686,376 $1,824,861 $1,922,575 $1,391,353 $1,686,461 # Component Sites/Grounds 2103 Parking Structure - Seal/Repair $2,016 $2,076 $2,139 $2,203 $2, Parking Deck - Seal/Repair $0 $0 $0 $0 $75, Walkway Deck - Seal/Repair $0 $0 $12,832 $0 $ Fencing: Metal - Repair/Paint $0 $4,845 $0 $0 $ Garage Doors - Replace $0 $0 $0 $0 $12, Entry Monument - Refurbish/Replace $0 $0 $0 $0 $ Metal Lettering - Replace $0 $0 $0 $0 $ Pole Lights - Replace $0 $0 $0 $0 $ Bollard Lights - Replace $0 $0 $0 $0 $0 Building Exteriors 2315 Balcony Decks - Seal/Repair $0 $0 $52,040 $0 $ Balcony Deck - Resurface $0 $0 $164,675 $0 $ Balcony Rails - Repaint $0 $0 $51,327 $0 $ Balcony Rails - Replace $0 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $0 $ Windows/Sliders - Replace $0 $0 $0 $0 $ Roof: Low Slope - Replace $0 $0 $0 $0 $ Skylights - Replace $0 $0 $0 $0 $0 Building Interiors 2401 Interior Surfaces - Repaint $0 $44,988 $0 $0 $ Wallcoverings - Replace $0 $0 $0 $0 $ Tile Flooring - Replace $75,931 $0 $0 $0 $ Carpet - Replace $0 $103,125 $0 $0 $ Engineered Hardwood Floor - Replace $0 $0 $0 $0 $ Ceiling Panels - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Interior Signs - Replace $0 $34,606 $0 $0 $ Bathrooms - Remodel $22,175 $0 $0 $0 $ Offices - Remodel $0 $0 $0 $0 $ IT Equipment - Replace $0 $0 $0 $5,140 $ Business Center/Café - Remodel $0 $0 $0 $0 $ Entry Areas - Remodel $0 $0 $0 $0 $ Stairwells - Repaint $0 $0 $0 $0 $ Kitchen - Remodel $0 $0 $0 $0 $ Kitchen Appliances - Replace $0 $0 $0 $0 $ Laundry Rooms - Remodel $0 $0 $7,129 $0 $0 Association Reserves Colorado, LLC 21 5/13/2015

28 Table 6: 30-Year Income/Expense Detail (yrs 10 through 14) Fiscal Year Mechanical 2501 Entry Access System - Replace $0 $0 $0 $0 $ Gate Operators - Replace $10,079 $0 $0 $0 $ Traction Elevator - Modernize $0 $0 $499,016 $0 $ Elevators - Cab Remodel $0 $0 $22,812 $0 $ Elevator Room Condenser - Replace $0 $0 $3,564 $0 $ Elevator Room Split Sys. - Replace $0 $0 $0 $0 $ Make Up Air Unit - Replace $0 $0 $0 $0 $ Exhaust Hoods - Replace $0 $0 $0 $0 $ Cooling Tower - Refurbish $0 $0 $0 $0 $ Cooling Tower - Replace $0 $0 $0 $0 $ Roof Motors & Pumps - Allowance $0 $0 $0 $10,280 $ Trash Compactor - Replace $0 $26,300 $0 $0 $ Security System - Modernize $0 $0 $0 $0 $ Generator - Replace $0 $0 $0 $0 $ Fire Control System- Update/Replace $0 $0 $0 $0 $ Fire Pumps - Allowance $0 $0 $12,832 $0 $ CO Monitors - Replace $0 $0 $7,842 $0 $ Domestic Water Tanks - Replace $0 $0 $0 $0 $ Tankless Water Heater - Replace ('15) $0 $0 $0 $0 $ Tankless Water Heaters - Replace $0 $0 $0 $0 $ Heat Boilers - Replace $0 $0 $0 $0 $0 Amenities 2805 BBQs - Replace $0 $0 $0 $0 $ Fitness Room - Remodel $0 $0 $11,406 $0 $ Cardio Equipment - Replace $14,783 $0 $0 $0 $ Strength Equipment - Replace $17,471 $0 $0 $0 $ Exterior Furnishings - Replace $0 $0 $0 $16,154 $ Pool/Patio Furniture - Replace $0 $0 $0 $0 $ Pool Deck - Seal/Repair $0 $0 $4,990 $0 $ Coping Tiles - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $0 $0 $ Spa - Resurface $6,048 $0 $0 $0 $ Pool/Spa Filters - Replace $0 $0 $0 $4,406 $ Pool Heater - Replace $8,063 $0 $0 $0 $ Spa Heater - Replace $4,704 $0 $0 $0 $ Pool Restrooms - Refurbish $7,392 $0 $0 $0 $0 Total Expenses $168,662 $215,940 $852,605 $38,182 $90,755 Ending Reserve Balance: $1,517,715 $1,608,921 $1,069,970 $1,353,171 $1,595,706 Association Reserves Colorado, LLC 22 5/13/2015

29 Table 6: 30-Year Income/Expense Detail (yrs 15 through 19) Fiscal Year Starting Reserve Balance $1,595,706 $1,766,906 $1,409,849 $1,641,789 $1,562,639 Annual Reserve Contribution $328,108 $337,951 $348,090 $358,532 $369,288 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $16,806 $15,877 $15,252 $16,015 $15,836 Total Income $1,940,619 $2,120,734 $1,773,191 $2,016,337 $1,947,763 # Component Sites/Grounds 2103 Parking Structure - Seal/Repair $2,337 $2,407 $2,479 $2,554 $2, Parking Deck - Seal/Repair $0 $0 $0 $0 $87, Walkway Deck - Seal/Repair $0 $0 $14,876 $0 $ Fencing: Metal - Repair/Paint $0 $5,616 $0 $0 $ Garage Doors - Replace $0 $0 $0 $0 $ Entry Monument - Refurbish/Replace $6,232 $0 $0 $0 $ Metal Lettering - Replace $9,348 $0 $0 $0 $ Pole Lights - Replace $0 $0 $0 $0 $ Bollard Lights - Replace $0 $0 $0 $0 $0 Building Exteriors 2315 Balcony Decks - Seal/Repair $0 $58,572 $0 $0 $ Balcony Deck - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $0 $57,769 $0 $0 $ Balcony Rails - Replace $0 $0 $0 $401,774 $ Building Exterior - Seal/Paint $131,648 $0 $0 $0 $ Windows/Sliders - Replace $0 $532,763 $0 $0 $ Roof: Low Slope - Replace $0 $0 $0 $0 $ Skylights - Replace $0 $0 $0 $0 $0 Building Interiors 2401 Interior Surfaces - Repaint $0 $0 $0 $0 $ Wallcoverings - Replace $0 $0 $0 $0 $ Tile Flooring - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $0 $0 $0 $ Engineered Hardwood Floor - Replace $0 $0 $0 $0 $ Ceiling Panels - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $20,661 $0 $ Interior Signs - Replace $0 $0 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Offices - Remodel $0 $0 $0 $0 $ IT Equipment - Replace $0 $0 $5,785 $0 $ Business Center/Café - Remodel $0 $0 $0 $0 $ Entry Areas - Remodel $0 $0 $0 $0 $ Stairwells - Repaint $0 $0 $0 $0 $ Kitchen - Remodel $0 $0 $12,396 $0 $ Kitchen Appliances - Replace $0 $0 $8,264 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 23 5/13/2015

30 Table 6: 30-Year Income/Expense Detail (yrs 15 through 19) Fiscal Year Mechanical 2501 Entry Access System - Replace $0 $7,221 $0 $0 $ Gate Operators - Replace $0 $12,035 $0 $0 $ Traction Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $0 $ Elevator Room Condenser - Replace $0 $0 $0 $0 $ Elevator Room Split Sys. - Replace $0 $0 $5,785 $0 $ Make Up Air Unit - Replace $0 $0 $0 $0 $ Exhaust Hoods - Replace $0 $0 $0 $0 $ Cooling Tower - Refurbish $0 $0 $0 $15,322 $ Cooling Tower - Replace $0 $0 $0 $0 $ Roof Motors & Pumps - Allowance $0 $0 $0 $11,917 $ Trash Compactor - Replace $0 $0 $0 $0 $ Security System - Modernize $0 $0 $22,313 $0 $ Generator - Replace $0 $0 $0 $0 $236, Fire Control System- Update/Replace $0 $0 $0 $0 $ Fire Pumps - Allowance $0 $0 $14,876 $0 $ CO Monitors - Replace $0 $0 $0 $0 $9, Domestic Water Tanks - Replace $0 $0 $0 $0 $ Tankless Water Heater - Replace ('15) $0 $0 $0 $0 $5, Tankless Water Heaters - Replace $0 $34,501 $0 $0 $ Heat Boilers - Replace $0 $0 $0 $0 $0 Amenities 2805 BBQs - Replace $0 $0 $0 $4,256 $ Fitness Room - Remodel $0 $0 $0 $0 $ Cardio Equipment - Replace $17,138 $0 $0 $0 $ Strength Equipment - Replace $0 $0 $0 $0 $ Exterior Furnishings - Replace $0 $0 $0 $0 $ Pool/Patio Furniture - Replace $0 $0 $0 $17,876 $ Pool Deck - Seal/Repair $0 $0 $5,785 $0 $ Coping Tiles - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $18,181 $0 $ Spa - Resurface $7,011 $0 $0 $0 $ Pool/Spa Filters - Replace $0 $0 $0 $0 $ Pool Heater - Replace $0 $0 $0 $0 $ Spa Heater - Replace $0 $0 $0 $0 $ Pool Restrooms - Refurbish $0 $0 $0 $0 $0 Total Expenses $173,713 $710,885 $131,401 $453,698 $341,934 Ending Reserve Balance: $1,766,906 $1,409,849 $1,641,789 $1,562,639 $1,605,829 Association Reserves Colorado, LLC 24 5/13/2015

31 Table 6: 30-Year Income/Expense Detail (yrs 20 through 24) Fiscal Year Starting Reserve Balance $1,605,829 $1,594,007 $1,762,583 $2,017,347 $2,416,660 Annual Reserve Contribution $380,367 $391,778 $403,531 $415,637 $428,106 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $15,992 $16,776 $18,892 $22,161 $25,126 Total Income $2,002,188 $2,002,561 $2,185,006 $2,455,145 $2,869,893 # Component Sites/Grounds 2103 Parking Structure - Seal/Repair $2,709 $2,790 $2,874 $2,960 $3, Parking Deck - Seal/Repair $0 $0 $0 $0 $101, Walkway Deck - Seal/Repair $0 $0 $17,245 $0 $ Fencing: Metal - Repair/Paint $0 $6,511 $0 $0 $ Garage Doors - Replace $0 $0 $0 $0 $ Entry Monument - Refurbish/Replace $0 $0 $0 $0 $ Metal Lettering - Replace $0 $0 $0 $0 $ Pole Lights - Replace $0 $0 $0 $0 $ Bollard Lights - Replace $0 $0 $0 $0 $7,115 Building Exteriors 2315 Balcony Decks - Seal/Repair $65,923 $0 $0 $0 $74, Balcony Deck - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $65,020 $0 $0 $0 $73, Balcony Rails - Replace $0 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $0 $ Windows/Sliders - Replace $0 $0 $0 $0 $ Roof: Low Slope - Replace $0 $0 $0 $0 $ Skylights - Replace $0 $0 $0 $0 $0 Building Interiors 2401 Interior Surfaces - Repaint $0 $60,460 $0 $0 $ Wallcoverings - Replace $0 $0 $3,832 $0 $ Tile Flooring - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $138,592 $0 $0 $ Engineered Hardwood Floor - Replace $4,515 $0 $0 $0 $ Ceiling Panels - Replace $0 $25,114 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Interior Signs - Replace $0 $0 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Offices - Remodel $0 $0 $22,035 $0 $ IT Equipment - Replace $0 $6,511 $0 $0 $ Business Center/Café - Remodel $0 $0 $13,413 $0 $ Entry Areas - Remodel $0 $0 $22,035 $0 $ Stairwells - Repaint $0 $0 $0 $0 $ Kitchen - Remodel $0 $0 $0 $0 $ Kitchen Appliances - Replace $0 $0 $0 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 25 5/13/2015

32 Table 6: 30-Year Income/Expense Detail (yrs 20 through 24) Fiscal Year Mechanical 2501 Entry Access System - Replace $0 $0 $0 $0 $ Gate Operators - Replace $0 $0 $14,371 $0 $ Traction Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $30,658 $0 $ Elevator Room Condenser - Replace $0 $0 $0 $0 $ Elevator Room Split Sys. - Replace $0 $0 $0 $0 $ Make Up Air Unit - Replace $0 $0 $0 $0 $ Exhaust Hoods - Replace $0 $0 $17,245 $0 $ Cooling Tower - Refurbish $0 $0 $0 $0 $ Cooling Tower - Replace $0 $0 $0 $0 $ Roof Motors & Pumps - Allowance $0 $0 $0 $13,815 $ Trash Compactor - Replace $0 $0 $0 $0 $ Security System - Modernize $0 $0 $0 $0 $ Generator - Replace $0 $0 $0 $0 $ Fire Control System- Update/Replace $0 $0 $0 $0 $ Fire Pumps - Allowance $0 $0 $17,245 $0 $ CO Monitors - Replace $0 $0 $0 $0 $ Domestic Water Tanks - Replace $20,770 $0 $0 $0 $ Tankless Water Heater - Replace ('15) $0 $0 $0 $0 $ Tankless Water Heaters - Replace $0 $0 $0 $0 $ Heat Boilers - Replace $180,611 $0 $0 $0 $0 Amenities 2805 BBQs - Replace $0 $0 $0 $0 $ Fitness Room - Remodel $0 $0 $0 $0 $ Cardio Equipment - Replace $19,867 $0 $0 $0 $ Strength Equipment - Replace $23,479 $0 $0 $0 $ Exterior Furnishings - Replace $0 $0 $0 $21,709 $ Pool/Patio Furniture - Replace $0 $0 $0 $0 $ Pool Deck - Seal/Repair $0 $0 $6,706 $0 $ Coping Tiles - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $0 $0 $ Spa - Resurface $8,128 $0 $0 $0 $ Pool/Spa Filters - Replace $0 $0 $0 $0 $ Pool Heater - Replace $10,837 $0 $0 $0 $ Spa Heater - Replace $6,321 $0 $0 $0 $ Pool Restrooms - Refurbish $0 $0 $0 $0 $0 Total Expenses $408,181 $239,978 $167,659 $38,485 $259,181 Ending Reserve Balance: $1,594,007 $1,762,583 $2,017,347 $2,416,660 $2,610,712 Association Reserves Colorado, LLC 26 5/13/2015

33 Table 6: 30-Year Income/Expense Detail (yrs 25 through 29) Fiscal Year Starting Reserve Balance $2,610,712 $2,657,140 $3,117,535 $3,475,014 $3,729,748 Annual Reserve Contribution $440,950 $454,178 $467,803 $481,838 $496,293 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $26,328 $28,861 $32,949 $36,009 $37,778 Total Income $3,077,989 $3,140,179 $3,618,287 $3,992,860 $4,263,819 # Component Sites/Grounds 2103 Parking Structure - Seal/Repair $3,141 $3,235 $3,332 $3,432 $3, Parking Deck - Seal/Repair $0 $0 $0 $0 $117, Walkway Deck - Seal/Repair $0 $0 $19,992 $0 $ Fencing: Metal - Repair/Paint $0 $7,548 $0 $0 $ Garage Doors - Replace $0 $0 $0 $0 $20, Entry Monument - Refurbish/Replace $8,375 $0 $0 $0 $ Metal Lettering - Replace $0 $0 $0 $0 $ Pole Lights - Replace $0 $0 $0 $0 $ Bollard Lights - Replace $0 $0 $0 $0 $0 Building Exteriors 2315 Balcony Decks - Seal/Repair $0 $0 $0 $83,509 $ Balcony Deck - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $0 $0 $0 $82,365 $ Balcony Rails - Replace $0 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $0 $ Windows/Sliders - Replace $0 $0 $0 $0 $ Roof: Low Slope - Replace $283,707 $0 $0 $0 $ Skylights - Replace $0 $0 $0 $0 $0 Building Interiors 2401 Interior Surfaces - Repaint $0 $0 $0 $0 $ Wallcoverings - Replace $0 $0 $0 $0 $ Tile Flooring - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $0 $0 $0 $ Engineered Hardwood Floor - Replace $0 $0 $0 $0 $ Ceiling Panels - Replace $0 $0 $0 $0 $ Mailboxes - Replace $0 $0 $0 $0 $ Interior Signs - Replace $0 $0 $0 $0 $ Bathrooms - Remodel $34,547 $0 $0 $0 $ Offices - Remodel $0 $0 $0 $0 $ IT Equipment - Replace $7,328 $0 $0 $0 $8, Business Center/Café - Remodel $0 $0 $0 $0 $ Entry Areas - Remodel $0 $0 $0 $0 $ Stairwells - Repaint $39,782 $0 $0 $0 $ Kitchen - Remodel $0 $0 $16,660 $0 $ Kitchen Appliances - Replace $0 $0 $11,106 $0 $ Laundry Rooms - Remodel $0 $0 $11,106 $0 $0 Association Reserves Colorado, LLC 27 5/13/2015

34 Table 6: 30-Year Income/Expense Detail (yrs 25 through 29) Fiscal Year Mechanical 2501 Entry Access System - Replace $0 $0 $0 $10,296 $ Gate Operators - Replace $0 $0 $0 $17,159 $ Traction Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $0 $ Elevator Room Condenser - Replace $0 $0 $5,553 $0 $ Elevator Room Split Sys. - Replace $0 $0 $0 $0 $ Make Up Air Unit - Replace $0 $0 $0 $0 $ Exhaust Hoods - Replace $0 $0 $0 $0 $ Cooling Tower - Refurbish $0 $0 $0 $20,591 $ Cooling Tower - Replace $0 $0 $0 $0 $ Roof Motors & Pumps - Allowance $0 $0 $0 $16,015 $ Trash Compactor - Replace $0 $0 $0 $0 $ Security System - Modernize $0 $0 $29,987 $0 $ Generator - Replace $0 $0 $0 $0 $ Fire Control System- Update/Replace $0 $0 $0 $0 $285, Fire Pumps - Allowance $0 $0 $19,992 $0 $ CO Monitors - Replace $0 $11,861 $0 $0 $ Domestic Water Tanks - Replace $0 $0 $0 $0 $ Tankless Water Heater - Replace ('15) $0 $0 $0 $0 $ Tankless Water Heaters - Replace $0 $0 $0 $0 $ Heat Boilers - Replace $0 $0 $0 $0 $0 Amenities 2805 BBQs - Replace $0 $0 $0 $5,720 $ Fitness Room - Remodel $0 $0 $17,770 $0 $ Cardio Equipment - Replace $23,032 $0 $0 $0 $ Strength Equipment - Replace $0 $0 $0 $0 $ Exterior Furnishings - Replace $0 $0 $0 $0 $ Pool/Patio Furniture - Replace $0 $0 $0 $24,023 $ Pool Deck - Seal/Repair $0 $0 $7,775 $0 $ Coping Tiles - Replace $0 $0 $0 $0 $ Pool - Resurface $0 $0 $0 $0 $ Spa - Resurface $9,422 $0 $0 $0 $ Pool/Spa Filters - Replace $0 $0 $0 $0 $ Pool Heater - Replace $0 $0 $0 $0 $ Spa Heater - Replace $0 $0 $0 $0 $ Pool Restrooms - Refurbish $11,516 $0 $0 $0 $0 Total Expenses $420,849 $22,644 $143,273 $263,112 $434,786 Ending Reserve Balance: $2,657,140 $3,117,535 $3,475,014 $3,729,748 $3,829,033 Association Reserves Colorado, LLC 28 5/13/2015

35 Assoc Accuracy, Limitations, and Disclosures The reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair or replacement of a reserve component. Because we have no control over future events, we do not expect that all the events we anticipate will occur as planned. We expect that inflationary trends will continue, and we expect Reserve funds to continue to earn interest, so we believe that reasonable estimates for these figures are much more accurate than ignoring these economic realities. We can control measurements, which we attempt to establish within 5% accuracy through a combination of on-site measurements, drawings, and satellite imagery. The starting Reserve Balance and interest rate earned on deposited Reserve funds that you provided to us were considered reliable and were not confirmed independently. We have considered the association s representation of current and historical Reserve projects reliable, and we have considered the representations made by its vendors and suppliers to also be accurate and reliable. Component Useful Life, Remaining Useful Life, and Current Cost estimates assume a stable economic environment and lack of natural disasters. Because the physical condition of your components, the association s Reserve balance, the economic environment, and legislative environment change each year, this Reserve Study is by nature a one-year document. Because a long-term perspective improves the accuracy of near-term planning, this Report projects expenses for the next 30 years. It is our recommendation and that of the Financial Accounting Standards Board (FASB) that your Reserve Study be updated each year as part of the annual budget process. Association Reserves CO, LLC and its employees have no ownership, management, or other business relationships with the client other than this Reserve Study engagement. Bryan Farley R.S., company president, is a credentialed Reserve Specialist (#260). All work done by Association Reserves CO, LLC is performed under his Responsible Charge. There are no material issues to our knowledge that have not been disclosed to the client that would cause a distortion of the association s situation. Component quantities indicated in this Report were developed by Association Reserves unless otherwise noted. No destructive or intrusive testing was performed. This Report and this site inspection were accomplished only for Reserve budget purposes (to help identify and address the normal deterioration of properly built and installed components with predictable life expectancies). The Funding Plan in this Report was developed using the cash-flow methodology to achieve the specified Funding Objective. Association Reserves liability in any matter involving this Reserve Study is limited to our Fee for services rendered. Association Reserves Colorado, LLC 29 5/13/2015

36 Assoc Terms and Definitions BTU DIA GSF GSY HP LF British Thermal Unit (a standard unit of energy) Diameter Gross Square Feet (area). Equivalent to Square Feet Gross Square Yards (area). Equivalent to Square Yards Horsepower Linear Feet (length) Effective Age: The difference between Useful Life and Remaining Useful Life. Note that this is not necessarily equivalent to the chronological age of the component. Fully Funded Balance (FFB): The value of the deterioration of the Reserve Components. This is the fraction of life used up of each component multiplied by its estimated Current Replacement. While calculated for each component, it is summed together for an association total. FFB = (Current Cost X Effective Age) / Useful Life Inflation: Interest: Cost factors are adjusted for inflation at the rate defined in the Executive Summary and compounded annually. These increasing costs can be seen as you follow the recurring cycles of a component on Table 6. Interest earnings on Reserve Funds are calculated using the average balance for the year (taking into account income and expenses through the year) and compounded monthly using the rate defined in the Executive Summary. Annual interest earning assumption appears in the Executive Summary. Percent Funded: The ratio, at a particular point in time (the first day of the Fiscal Year), of the actual (or projected) Reserve Balance to the Fully Funded Balance, expressed as a percentage. Remaining Useful Life (RUL): The estimated time, in years, that a common area component can be expected to continue to serve its intended function. Useful Life (UL): The estimated time, in years, that a common area component can be expected to serve its intended function. Association Reserves Colorado, LLC 30 5/13/2015

37 Assoc The primary purpose of the photographic appendix is to provide the reader with the basis of our funding assumptions resulting from our physical analysis and subsequent research. The photographs herein represent a wide range of elements that were observed and measured against National Reserve Study Standards to determine if they meet the criteria for reserve funding: 1) Common are maintenance, repair & replacement reasonability 2) Components must have a limited life 3) Life limit must be predictable 4) Above a minimum threshold cost (board s discretion typically ½ to 1% of annual operating expenses). Some components are recommended for reserve funding, while others are not. The components that meet these criteria in our judgment are shown with corresponding maintenance, repair or replacement cycles to the left of the photo (UL = Useful Life or how often the project is expected to occur, RUL = Remaining Useful Life or how many years from our reporting period) and a representative market cost range termed Best Cost and Worst Cost below the photo. There are many factors that can result in a wide variety of potential cost; we are attempting to represent a market average for budget purposes. Where there is no UL, the component is expected to be a one-time expense. Where no pricing, the component deemed inappropriate for Reserve Funding. Association Reserves Colorado, LLC 31 5/13/2015

38 Comp # : SITE & GROUNDS--- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: Comp # : 2101 Garage Concrete - Repair Location : Garage Funded? : No Quantity: ~ 21,675 GSF Evaluation : Garage concrete should not be life-limited under normal circumstances and not appropriate for Reserve funding. Typical maintenance includes pressure washing, minor crack repairs, and other small projects as needed. Any trip hazards should be fixed right away to avoid liability issues. Ensure that any drains are cleaned regularly to prevent water ponding. Best Case: Cost Source: Worst Case: May 13,2015 Page 1 of 60

39 Comp # : 2103 Parking Structure - Seal/Repair Location : Common area Quantity: ~ 21,675 GSF Evaluation : At the time of publication the association was currently working with ASR on warranty issues, and work is expected to be completed by the summer of The engineer recommendation is to coat the surface of the parking lot, with yearly maintenance on garage issues. Funding provided here for minor maintenance only. The association has tried to use epoxy sealants, however, the attempts have so far been unsuccessful. Evidence of leaking and water intrusion throughout the parking areas. Parking structure should be waterproofed in order to prevent water penetration which can result in deterioration of the concrete structure. Waterproofing vendors typically recommend sealing of all joints, drain edges, etc. Minor repairs may be required as part of waterproofing project. Silicone sealants are more heavy-duty and are preferable to urethane due to longer life expectancy. Costs will vary depending on the type of seal the association chooses to use. 1 years 0 years Best Case: $1,000 Worst Case: $2,000 Lower allowance Higher allowance Cost Source: Allowance May 13,2015 Page 2 of 60

40 Comp # : 2107 Parking Deck - Seal/Repair Location : Fitness deck, entrance, courtyard Sealed in 2015 Quantity: ~ 17,600 GSF Evaluation : Reported by ASR that the association needs to seal the parking deck with a waterproofing membrane in order mitigate water intrusion into the garage surfaces. At the time of publishing, the estimated cost was ~$47,500, however, this was reported to be a rough estimate. As routine maintenance, inspect regularly, pressure wash for appearance and repair promptly as needed to prevent water penetrating into the base and causing further damage. In our experience, larger repair/replacement expenses emerge as the community ages. Although difficult to predict timing, cost and scope, we suggest a rotating funding allowance to supplement the operating/maintenance budget for periodic larger repairs. Adjust as conditions, actual expense patterns dictate within future reserve study updates. 5 years 4 years Best Case: $45,000 Worst Case: $55,000 Lower allowance for seal/repair Higher allowance for seal/repair May 13,2015 Page 3 of 60

41 Comp # : 2107 Walkway Deck - Seal/Repair Location : Fitness deck (not pool deck), entrance, courtyard, Quantity: ~ 4,600 GSF Evaluation : Minor ponding seen near the entrance. Chipping observed (see photo) adjacent to the entrance. No major issues were observed with the deck at the time of the inspection. No heavy cracking seen. Repair any trip and fall hazards immediately to ensure safety. As routine maintenance, inspect regularly, pressure wash for appearance and repair promptly as needed to prevent water penetrating into the base and causing further damage. In our experience, larger repair/replacement expenses emerge as the community ages. Although difficult to predict timing, cost and scope, we suggest a rotating funding allowance to supplement the operating/maintenance budget for periodic larger repairs. Adjust as conditions, actual expense patterns dictate within future reserve study updates. 5 years 2 years Best Case: $8,000 Worst Case: $10,000 Lower allowance for seal/repair Comp # : 2133 Fencing: Metal - Repair/Paint Location : Adjacent to courtyard Painted in 2012 Higher allowance for seal/repair Quantity: ~ 580 LF Evaluation : Good to fair conditions noted. No rusting or corrosion of the fence noted. Metal fencing should be painted at the interval shown here in order to inhibit corrosion and prevent/limit costly repairs and replacement. Painting not only protects the metal surface from excessive wear, but promotes a good, attractive appearance in the common areas. 5 years 1 years Best Case: $3,000 Worst Case: $4,000 Lower allowance to repaint Higher allowance, Includes additional surface prep, etc. May 13,2015 Page 4 of 60

42 Comp # : 2137 Fencing: Metal - Replace Location : Perimeter Funded? : No Quantity: ~ 580 LF Evaluation : Reported that all metal fence repairs will be handled as an operating cost. No issues noted at the time of the inspection, however, if issues become apparent, funding will need to be added. No significant deterioration, instability and/or damage evident at railings sampled at this time. Sturdy item that can typically last for an extended period with ordinary care and maintenance. In our experience, however, eventual replacement is warranted due to constant wear, usage and exposure over time. Plan to replace at roughly the time frame below. Inspect regularly, clean for appearance and repair promptly as needed to ensure safety and maintain waterproofing. Best Case: Cost Source: Worst Case: Comp # : 2145 Garage Doors - Replace Location : Community entrance/exit Replaced in 2015 Quantity: (2) 11x7 Roll-Up Evaluation : Good condition noted of physical components of metal entry gates observed during our site inspection. Although metal gates are typically durable, we recommend setting aside funding for regular intervals of replacement due to constant wear/usage, exposure and the typical damage not covered by insurance as seen in similar communities. As routine maintenance, have regular professional inspections, maintenance and repairs as needed to help extend useful life cycles; clean for appearance and paint/touch-up as needed within general maintenance, operating funding (no large scale reserve funding anticipated for these type of items). 15 years 14 years Best Case: $7,000 Worst Case: $10,000 Lower allowance to replace Higher allowance Cost Source: Client Cost History May 13,2015 Page 5 of 60

43 Comp # : 2157 Block Wall - Repair/Paint Quantity: ~ 475 LF, 9' Location : Perimeter of association Funded? : No Evaluation : Perimeter site walls should be inspected periodically to identify and weakened/leaning sections which may need to be stabilized. Expect to repair as needed. No reserve funding required due to the unpredictability of the scope of work. Best Case: Cost Source: Worst Case: Comp # : 2167 Entry Monument - Refurbish/Replace Location : Entry location Quantity: (1) Metal Evaluation : Good, legible condition with no significant damage/deterioration noted. Plan to replace at the interval below based on typical deterioration caused by constant exposure. Funding allowance here can vary significantly depending on style/type desired. As routine maintenance, inspect regularly, clean/touch up for appearance and repair from operating budget. 10 years 5 years Best Case: $3,000 Worst Case: $5,000 Lower allowance to replace Higher allowance; more elaborate, better quality May 13,2015 Page 6 of 60

44 Comp # : 2169 Metal Lettering - Replace Location : Entry locations Quantity: (2) Signs Evaluation : No issues were noted. No staining or rusting seen. Good, legible condition with no significant damage/deterioration noted. Plan to replace at the interval below based on typical deterioration caused by constant exposure. Funding allowance here can vary significantly depending on style/type desired. As routine maintenance, inspect regularly, clean/touch up for appearance and repair from operating budget. 25 years 15 years Best Case: $5,000 Worst Case: $7,000 Lower allowance to replace Comp # : 2171 Garage Fixtures - Repaint Location : Parking areas Funded? : No Replaced in 2014 Higher allowance; more elaborate, better quality Quantity: ~ (67) Lights Evaluation : No major issues were noted with the lights at the time of the inspection. Inspected during daylight hours; assumed to be in functional operating condition. As routine maintenance, inspect, repair/change bulbs as needed. Plan to replace the fixtures as needed. Best Case: Cost Source: Worst Case: May 13,2015 Page 7 of 60

45 Comp # : 2175 Pole Lights - Replace Location : Parking areas Quantity: (10) Pole Lights Evaluation : No issues were noted with the lights at the time of the inspection. Observed during daylight hours; assumed to be in functional operating condition. As routine maintenance, inspect, repair/change bulbs as needed. Best to plan for large scale replacement at roughly the time frame below for cost efficiency and consistent quality/appearance throughout association. 30 years 9 years Best Case: Lower allowance $12,000 Worst Case: $16,000 Comp # : 2177 Bollard Lights - Replace Location : Parking areas Higher allowance Quantity: (4) Fixtures Evaluation : No major issues were noted with the lights at the time of the inspection. Inspected during daylight hours; assumed to be in functional operating condition. As routine maintenance, inspect, repair/change bulbs as needed. Best to plan for large scale replacement at roughly the time frame below for cost efficiency and consistent quality/appearance throughout association. 15 years 9 years Best Case: $3,000 Worst Case: $4,000 Lower allowance Higher allowance May 13,2015 Page 8 of 60

46 Comp # : BUILDING EXTERIORS--- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: May 13,2015 Page 9 of 60

47 Comp # : 2315 Balcony Decks - Seal/Repair Location : Balconies Quantity: ~ 18,144 GSF Evaluation : No access to inspect the balcony surfaces. No recent sealing reported. Reported that the majority of the balcony decks have an elastomeric/urethane coating. The balconies are the HOA's responsibility, but the balcony decks were not included on the prior 2009 Reserve Study. Vertical portion of drip edge flashing was observed. Unable to view if coating was turned up the wall a few inches. Railing connections did not attach through deck surface. Generally speaking, decking surfaces should have as few penetrations as possible in order to minimize water intrusion. Elastomeric deck surfaces are typically a three-coat system. Coatings lose thickness each year due to wear and exposure to UV light. If more than the topcoat is allowed to wear off, the surface may still appear to be in good condition to the untrained eye, but waterproof integrity may be compromised. Decks should be thoroughly evaluated by a decking or waterproofing contractor prior to re-coating in order to determine scope of any required repairs. If the deck system has a warranty, the association should make sure to follow any requirements necessary to maintain said warranty, such as re-coating at required intervals and conducting professional inspections. As a general rule, potted plants and other items that may trap water should be elevated off the deck or used with a waterproof liner in order to prevent prolonged exposure. Moisture intrusion is the most common source of degradation on concrete decks and patios. Water intrusion will cause the embedded rebar to corrode and spall the concrete. This issue can become especially pronounced on horizontal concrete surfaces where liquids may pool and further penetrate the substrate. Building design should always be the primary defense against moisture inclusion. Covering the surface with awnings (or other decks) prevents rain from falling directly onto the surface. Moderately graded surfaces allow water to flow toward other water management systems. A coating system cannot correct initial design flaws. Sources of moisture intrusion should be addressed prior to applying any coatings. 4 years 0 years Best Case: $32,000 Worst Case: $41,000 Lower allowance to recoat Higher allowance to recoat May 13,2015 Page 10 of 60

48 Comp # : 2317 Balcony Deck - Resurface Location : Balconies Quantity: ~ 18,144 GSF Evaluation : No access to inspect the balcony surfaces, but no reports of recent resurfacings. Even with regular preventive maintenance (cleaning/repairing/sealing), decking system will eventually wear down to the point of failure. If not resurfaced or replaced with a new system, water penetration can damage the building structure. Typical warning signs that the surface may be failing include large cracks visible on surface or from beneath the deck, staining patterns, spalling/chipping (for concrete decks) and exposed framing, among others. Sub-surface evaluation including moisture testing is outside the scope of this Reserve Study engagement. The association should consult with a decking or waterproofing contractor when evaluating scope of work in order to properly define any necessary structural repairs/restoration. Funding recommendations shown here should be updated based on any new analysis/information provided by more comprehensive evaluations. 25 years 12 years Best Case: $91,000 Worst Case: $140,000 Lower allowance to resurface Higher allowance to resurface May 13,2015 Page 11 of 60

49 Comp # : 2319 Balcony Rails - Repaint Location : Adjacent to decks Quantity: ~ 2,770 LF Evaluation : Fading and weathering noted on the balcony rails. No close access available, however from the ground level, the rail paint was noted to be in poor condition and should be painted soon. Balcony railings should be painted/re-coated at the approximate interval shown below in order to restore good appearance and protect the railings from excessive surface wear. If railing is exposed to the elements without adequate coating for an extended period of time, useful life may be severely reduced. Best practice is to coordinate with other exterior projects when possible, such as balcony sealing or exterior painting. 4 years 0 years Best Case: $30,000 Worst Case: $42,000 Lower allowance to replace Higher allowance to replace May 13,2015 Page 12 of 60

50 Comp # : 2321 Balcony Rails - Replace Location : Adjacent to decks Quantity: ~2,770 LF Evaluation : Rails were not attached through the waterproof surface of the deck. No reported broken or leaning rails by the contact. These connections should be inspected periodically for structural and/or waterproofing issues. As routine maintenance, inspect regularly to ensure safety and stability; repair promptly as needed using general operating/maintenance funds. We suggest Reserve funding for regular intervals of total replacement as indicated below. Consult with a decking/railing contractor to ensure that replacements are compliant with all relevant building codes. 30 years 18 years Best Case: $222,000 Worst Case: $250,000 Lower allowance to replace Higher allowance to replace May 13,2015 Page 13 of 60

51 Comp # : 2343 Building Exterior - Seal/Paint Location : Exterior building surfaces Quantity: ~ 56,300 GSF Evaluation : Staining noted on the stucco surfaces. Surfaces appeared to be in need of a repaint soon. Stucco had vertical and horizontal control joints. Compression of control joints was observed during our limited visual review. Visible portion of through wall flashing was seen at each floor. Minor hairline cracks in the stucco were noted. Minor cracking is expected in stucco. No large- scale cracking of stucco was observed. The sealant material is unknown. Sealants are typically located at the intersections of the stucco and other material such as windows, door and vents. We have assumed the sealants are silicone, which under good conditions may have a useful life of approximately 15 to 20 years. Urethane sealants would have a useful life of 8-12 years. At time of sealant replacement we recommend recoating the stucco to minimize water penetration and for appearance. Stucco can be recoated to help limited the amount of water penetrating into the stucco. There are three general options for recoating stucco. The least expensive option is applying a new acrylic topcoat, the second option is coating with an elastomeric finish, preferably permeable (~50% more expensive than acrylic) and a third option is a skim coat of stucco (about three times as expensive as acrylic). Generally the more expensive option has the longest useful life, and the least expensive has the shortest useful life. Additional information on Stucco is available at the Portland Cement Association s website 15 years 0 years Best Case: $56,000 Worst Case: $113,000 Lower allowance to prep and paint / caulk Higher allowance, more prep work May 13,2015 Page 14 of 60

52 Comp # : 2347 Brick Siding - Tuck Point Location : Exterior building surfaces Funded? : No Quantity: Extensive GSF Evaluation : Brick is typically a low maintenance material that usually requires little maintenance work. After years (or more), mortar between brick can require repointing. Repointing involves grinding out small sections of existing mortar and installing new mortar and continuing on until all the mortar has been replaced. As the brick and mortar ages cracking may appear, indicating need for repointing. Currently there is no predictable scope or timing for repointing work. Reserve Study review is for financial planning purposes only, and if a thorough investigation of brick and mortar is desired, we recommend having a masonry specialist inspect the brick and mortar. Funding can be added to future updates to the Reserve Study if scope and timing become more well-defined. No funding suggested at this time. Best Case: Cost Source: Worst Case: May 13,2015 Page 15 of 60

53 Comp # : 2363 Windows/Sliders - Replace Location : Building exterior walls Quantity: ~ (166) Windows Evaluation : Windows were metal frames with fixed operation. Head flashing was observed. Jambs and sills had sealant joint between window frame and cladding. Some condensation was observed between window panes on (2) windows in the lobby adjacent to the pool, which is typically indicative of failed glazing seals. However, no other condensation was noted on the windows. Plan to replace these (2) windows as needed soon. Factors effecting useful life include: quality of windows and installation, waterproofing flashing details, exposure to wind driven rain, building movement over time, structural details, etc... We recommend financially planning for a 30-year useful life range timed with other large scale building exterior projects for efficiency. Schedule can be modified as the remaining useful life approaches zero years and the aging of the windows and sliding doors is more apparent. Note: there are many types of glazing and windows types, material and quality, available in today's market; and costs can vary greatly. Inspect regularly, including sealant, if any, and repair as needed. Keep weep holes free and clear to allow proper drainage of water that gets into window frame. Do not block (caulk or seal) gap at top of head flashing, as this allows water that gets behind the siding, to drain out. Proper sealant/caulking is critical to keeping water out of the walls, and preventing water damage. Two common types of sealants/caulking are urethane and silicone. If properly installed, urethane has a life of approximately 6-8 years and silicone s life can be years. Incorrect installation of sealant is common, and can greatly decrease its useful life. Inspect sealant, more frequently as it ages, to determine if it is failing. Typical sealant failures include; lack of adherence to adjacent materials, tearing/splitting of the sealant itself, and loss of elastic ability. Loss of elastic ability can be caused by exposure to ultra-violet light and general aging. Remove and replace all sealants as signs of failure begin to appear. Proper cleaning, prep work, and proper installation are critical for a long lasting sealant/caulking. One of the most important factors in selection window is the design pressure rating. The design pressure rating (DP) is the ability of the window to withstand wind blown rain, and a few other criteria. Manufacturers can choose to have a sample of their windows tested. Independent third parties perform testing following American Architectural Manufacturers Association (AAMA) standards and procedures. AAMA stickers are placed on windows with the specific DP rating (psf) and largest size of the window that meets the design pressure. No AAMA stickers were found on the few windows sampled for this report. 30 years 16 years Best Case: $249,000 Worst Case: $415,000 Lower allowance to replace Higher allowance to replace; upgraded May 13,2015 Page 16 of 60

54 Comp # : 2377 Roof: Low Slope - Replace Location : Rooftop of building Quantity: ~ 19,300 GSF Evaluation : Surface of the roof was an EPDM roof. Slope of the roof appeared adequate. No ponding water areas were noticed. No reports of leakage. The parapet was noted to be falling off of the side wall. Organic debris was not observed on the roof. Drains observed with strainer caps. Overflow drains, required by the 1994 Uniform Building Code, were observed. Typical useful life of low slope roof is years depending on the quality of the roof system installed and the maintenance receives throughout its life. As routine maintenance, many manufacturers recommend professional inspections at least twice annually and after storms. Promptly repair any damaged sections or any other repairs needed to ensure waterproof integrity of roof. Keep scuppers, drains, gutters, and downspouts clear and free of debris to allow proper drainage and prevent the ponding of water on the roof surface. There is a wealth of information available through Roofing Organizations such as the Western States Roofing Contractors Association (WSRCA) Roof Consultant Institute and the National Roofing Contractors Association (NRCA) The NRCA has some of the best information available including this article on selecting a roofing contractor to install a low slope roof: The "NCRA Roofing Manual: Membrane Roof Systems" is an industry standard that is full of easy to understand pictures and diagrams. While homeowners do not usually purchase the manual ($200), it, or an older version, should be available at public libraries. It has great information for anyone looking to learn about roofing. Older versions, are still fairly current, and were entitled "NRCA Roofing and Waterproofing Manual". At time of re-roof we recommend that you hire a professional consultant (Architect, Engineer, building envelope consultant) to evaluate, design, specify, help bid the project, select best bidder, and observe construction to ensure proper installation. We recommend all Associations hire qualified consultants whenever they are considering having work performed on any building envelope components (roof, walls, windows, decks, exterior painting and caulking/sealant). 20 years 5 years Best Case: $116,000 Worst Case: $155,000 Lower allowance to remove and replace roof Higher allowance; upgrades, underlying repair needs, metal work, etc May 13,2015 Page 17 of 60

55 Comp # : 2389 Skylights - Replace Location : Perimeter of building Quantity: ~ (7) 4x4 Evaluation : No issues were reported. Observation of skylights was very limited to viewing from ground. Condensation between panes of glazing was not observed. No current water leak problems are reported. Inspect skylights during roof inspection and repair as needed to maintain waterproof integrity. Best practice is to coordinate replacement of skylights with roof replacement projects to maintain a watertight barrier. 25 years 5 years Best Case: $4,000 Worst Case: $6,000 Lower allowance to replace Higher allowance to replace Comp # : BUILDING INTERIORS---- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: May 13,2015 Page 18 of 60

56 Comp # : 2401 Interior Surfaces - Repaint Location : Interior wall and ceiling surfaces Quantity: ~ 36,215 GSF Evaluation : The hallways were noted to be in fair to poor condition depending on the location. The association should plan to paint the interiors soon in order to update the aesthetics of the hallways. Regular cycles of professional painting are recommended to maintain appearance. Small touch-up projects can be conducted as needed as a maintenance expensive, but comprehensive painting of interior areas will restore a consistent look and quality to all areas. Best practice is to coordinate at same time as other interior projects whenever possible to minimize downtime and maintain consistent quality standard. 10 years 1 years Best Case: $30,000 Worst Case: $35,000 Lower allowance to repaint Higher allowance to repaint; more prep, color change, etc May 13,2015 Page 19 of 60

57 Comp # : 2403 Wallcoverings - Replace Location : Business center Quantity: ~ 320 GSF Evaluation : Wallcoverings should be replaced eventually to update appearance of common/amenity areas. Best practice is to coordinate at same time as other interior projects whenever possible to minimize downtime and maintain consistent quality standard. Timing and interval is subjective. Estimates shown here are based on our experience with similar properties and general aesthetic qualities. Schedule can be updated/adjusted at the discretion of the association for planning purposes. 15 years 7 years Best Case: $1,000 Worst Case: $3,000 Lower allowance to repaint Comp # : 2405 Interior Lights - Replace Location : Interior common areas Funded? : No Higher allowance to repaint; more prep, color change, etc Quantity: ~(575) Fixtures Evaluation : Reported that the fixtures will be replaced as needed as an operating expense. If the association decides to replace the lights, expect to pay ~$100/fixture. As routine maintenance, inspect, repair and change bulbs as needed. Best Case: Cost Source: Worst Case: May 13,2015 Page 20 of 60

58 Comp # : 2409 Tile Flooring - Replace Location : Entry way area Quantity: ~ 2,890 GSF Evaluation : No issues were noted with the tile floors. Good conditions observed. As part of ongoing maintenance program, inspect regularly, repairing or replacing damaged sections as needed. If available, best practice is to keep a collection of replacement tiles on hand for partial replacements. With ordinary care and maintenance, tile in interior locations can last for an extended period of time, but replacement is often warranted eventually to enhance and restore aesthetic appeal in the common areas. Replacement costs can vary greatly depending on size and type of tiles selected. Our recommendation is to replace at the approximate schedule shown here, but this schedule can be adjusted at the association's discretion. 20 years 10 years Best Case: $49,000 Worst Case: $64,000 Lower allowance Higher allowance May 13,2015 Page 21 of 60

59 Comp # : 2411 Carpet - Replace Location : Common area hallways, stairways & lobby Replaced in 2007 Quantity: ~ 1,422 GSY Evaluation : No updates since the 2009 Reserve Study. Loose seams were noted on the floors. Slight matting observed. As part of ongoing maintenance program, vacuum regularly and professionally clean as needed. Best practice is to coordinate at same time as other interior projects whenever possible to minimize downtime and maintain consistent quality standard. Timing and interval is somewhat subjective, but not as flexible as other flooring finishes (tile, wood, etc.). Estimates shown here are based on our experience with similar properties and general aesthetic qualities. Schedule can be updated/adjusted at the discretion of the association for planning purposes. 10 years 1 years Best Case: $71,000 Worst Case: $78,000 Lower allowance to replace, installed Higher allowance; upgraded Comp # : 2413 Engineered Hardwood Floor - Replace Location : Penthouse Quantity: ~ 570 GSF Evaluation : No access to inspect the floors. Wood flooring should eventually be replaced due to wear and deterioration, as well as for aesthetic changes in the common areas. Estimates shown here are based on our experience with similar properties and general aesthetic qualities. Schedule can be updated/adjusted at the discretion of the association for planning purposes. 30 years 20 years Photo Not Available Best Case: $2,000 Worst Case: $3,000 Lower allowance Higher allowance May 13,2015 Page 22 of 60

60 Comp # : 2417 Resilient Sheet Flooring - Replace Location : Trash chute areas Funded? : No Quantity: ~ 110 GSF Evaluation : Inspect regularly, repair any damaged areas and clean using operating/maintenance budget. Although this flooring should have a very long useful life in this application, comprehensive replacement should eventually be expected to maintain good aesthetic standards in the common areas. Costs can vary based on quality and style of flooring selected. Due to the small area of flooring, plan to replace as needed. Photo Not Available Best Case: Cost Source: Worst Case: Comp # : 2419 Ceiling Panels - Replace Location : Interior common area flooring Quantity: ~ 4,410 GSF Evaluation : No major issues noted with the panels at the time of the inspection. Suspended ceiling systems can have an indefinite useful life in most applications, but replacement may be warranted due to staining, rusting of the framework, etc. Individual panels can be replaced as needed as an Operating expense, but plan on complete replacement at the approximate interval shown below in order to maintain good aesthetic standards in the common areas. Best practice is to coordinate this work with other interior finish projects (painting, flooring, etc.) in order to maintain consistency. 30 years 21 years Best Case: $12,000 Worst Case: $15,000 Lower allowance to replace, installed Higher allowance; upgraded May 13,2015 Page 23 of 60

61 Comp # : 2421 Mailboxes - Replace Location : Lobby/main entry area Quantity: (150) Boxes Evaluation : Good conditions noted. No issues observed. Clean and inspect regularly, change lock cylinders, lubricate hinges and repair as needed from Operating budget. Metal mailbox structures located inside protected interior areas can have very long life expectancies. Some historic buildings have original mail equipment over 100 years old. In our experience, it is prudent to expect replacement at the approximate interval shown below in order to maintain good appearance consistent with other interior areas. Schedule can be updated/adjusted at the discretion of the association for planning purposes. 25 years 17 years Best Case: $11,000 Worst Case: $14,000 Lower allowance to replace, includes installation Comp # : 2425 Interior Signs - Replace Location : Interior unit entry doors Higher allowance to replace Quantity: ~ (300) Signs Evaluation : Signs are generally replaced at long intervals due to aesthetic upgrades. As a routine Operating expense, signs should be inspected to make sure visibility is adequate. In our experience, associations should replace signage at the rough interval shown below in order to maintain good aesthetic standards in keeping with the local area. 20 years 11 years Best Case: $23,000 Worst Case: $27,000 Lower allowance Higher allowance May 13,2015 Page 24 of 60

62 Comp # : 2427 Interior Doors - Replace Location : Interior unit entry doors Funded? : No Quantity: (277) Doors Evaluation : Under normal circumstances, interior doors should not have a limited useful life from a functional perspective. Should be painted and repaired as needed to ensure good function and maintain good appearance. No need for Reserve funding at this time. If a comprehensive replacement project is anticipated for aesthetic purposes, this component may need to be re-evaluated during future Reserve Study updates. Best Case: Cost Source: Worst Case: Comp # : 2431 Bathrooms - Remodel Location : Restroom area adjacent to lobby Quantity: (2) Bathrooms Evaluation : Each bathroom has ~180 GSF flooring, (2) sinks, ~ 20 GSF, 85 GSF, (2) vanity lights, (8) can lights. The bathrooms were noted to be in good condition. No issues were noted. Ceramic tiles flooring. As routine maintenance, inspect regularly and perform any needed repairs promptly utilizing general Operating funds. Typical remodeling project can include some or all of the following: replacement of plumbing fixtures, partitions, countertops, lighting, flooring, ventilation fans, accessories, décor, etc. Best practice is to coordinate this type of project with other areas whenever possible. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 15 years 10 years Best Case: $15,000 Worst Case: $18,000 Lower allowance to refurbish Higher allowance; more extensive, elaborate May 13,2015 Page 25 of 60

63 Comp # : 2433 Offices - Remodel Location : Building office Quantity: Desk, chairs, etc Evaluation : The main office includes: (1) desk, (1) chair, (2) guest chairs, (2) cabinets, (4) under cabinets, (3) upper cabinets, and ~24 GSF Formica counters. The Copier room includes: ~16 GSF of Formica counters, (2) lower cabinets, (3) upper cabinets, (1) refrigerator, and (1) safe. The guard office includes, (1) desk, (2) guest chairs, (1) file cabinet, (1) ottoman, and (2) pictures. Periodic office remodeling is prudent in order to maintain an attractive, functional workspace for personnel. Typical projects often include replacement of room finishes and furnishings, and may also include replacement of IT equipment, phones, office supplies, storage units, etc. Life estimates can vary greatly depending on level of use and preferences of association. If the office is used as a "public" area for hosting potential buyers and other important visitors, remodeling should be a high priority. Schedule and cost estimates should be reevaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 15 years 7 years Best Case: $10,000 Worst Case: $13,000 Lower allowance Higher allowance May 13,2015 Page 26 of 60

64 Comp # : 2434 IT Equipment - Replace Location : Lobby areas Quantity: (6) Computers Evaluation : Units include: (6) computers,(1) printer, and (1) printe/copier. Typical projects often include replacement of IT equipment, phones, office supplies, storage units, etc. Life estimates can vary greatly depending on level of use and preferences of association. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 4 years 1 years Best Case: $3,000 Worst Case: $4,000 Lower allowance Higher allowance May 13,2015 Page 27 of 60

65 Comp # : 2435 Business Center/Café - Remodel Location : Lobby areas Quantity: ~ 810 GSF Evaluation : Internet café includes (2) high tables, (4) chairs, (4) round tables, (1) bar cabinet. The business center includes: ~40 GSF Corian counters. Remodeling is prudent in order to maintain an attractive, desirable appearance for existing owners as well as potential buyers and other guests. Typical projects often include replacement of finishes and furnishings, artwork, lighting, etc. Life estimates can vary greatly depending on level of wear and preferences of association. Costs can vary greatly depending on types of materials selected for replacement. Many associations choose to work with design personnel to maintain a coordinated, attractive aesthetic. Funding recommendation shown here is for remodeling to an appropriate standard for this association. Life and cost estimates should be reevaluated during future Reserve Study updates. 15 years 7 years Best Case: $6,000 Worst Case: $8,000 Lower allowance Higher allowance May 13,2015 Page 28 of 60

66 Comp # : 2435 Entry Areas - Remodel Location : Lobby areas Quantity: ~ 810 GSF Evaluation : Entry area remodeling is prudent in order to maintain an attractive, desirable appearance for existing owners as well as potential buyers and other guests. Typical projects often include replacement of finishes and furnishings, artwork, lighting, etc. Life estimates can vary greatly depending on level of wear and preferences of association. Costs can vary greatly depending on types of materials selected for replacement. Many associations choose to work with design personnel to maintain a coordinated, attractive aesthetic. Funding recommendation shown here is for remodeling to an appropriate standard for this association. Life and cost estimates should be re-evaluated during future Reserve Study updates. 15 years 7 years Best Case: $11,000 Worst Case: $12,000 Lower allowance Higher allowance Cost Source: ARI Cost Database May 13,2015 Page 29 of 60

67 Comp # : 2437 Stairwells - Repaint Location : Interior wall and ceiling surfaces Quantity: ~ 23,050 GSF Evaluation : This is a lower priority item. No major issues were noted with the interior surfaces. Regular cycles of professional painting are recommended to maintain appearance. Small touch-up projects can be conducted as needed as a maintenance expensive, but comprehensive painting of interior areas will restore a consistent look and quality to all areas. Best practice is to coordinate at same time as other interior projects whenever possible to minimize downtime and maintain consistent quality standard. 20 years 5 years Best Case: $18,000 Worst Case: $20,000 Lower allowance to repaint Higher allowance to repaint; more prep, color change, etc May 13,2015 Page 30 of 60

68 Comp # : 2441 Kitchen - Remodel Location : Lobby area Quantity: ~ (65x10) Evaluation : ~65 LF of Corian counters, (5) bar stools, (3) cabinets, and (1) drawer cabinet. Kitchen materials typically have an extended useful life. However, many associations choose to refurbish the kitchen periodically for aesthetic updating. This may include refurbishment/refinishing of kitchen cabinets, and countertops, replacement of sinks, installation/replacement of under-cabinet lighting, etc. Should ideally be coordinated with replacement of the kitchen appliances. Best practice is to coordinate this project with other amenity areas, such as bathrooms or other amenity rooms. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment 10 years 7 years Best Case: $7,000 Worst Case: $8,000 Lower allowance to repaint Higher allowance to repaint; more prep, color change, etc May 13,2015 Page 31 of 60

69 Comp # : 2443 Kitchen Appliances - Replace Location : Kitchen area Quantity: (5) Appliances Evaluation : Pieces include: (1) dishwasher, (1) ice-maker, (1) wine refrigerator, (1) microwave, and (1) under counter refrigerator. This is a lower priority item. No major issues were noted with the interior surfaces. Regular cycles of professional painting are recommended to maintain appearance. Small touch-up projects can be conducted as needed as a maintenance expensive, but comprehensive painting of interior areas will restore a consistent look and quality to all areas. Best practice is to coordinate at same time as other interior projects whenever possible to minimize downtime and maintain consistent quality standard. 10 years 7 years Best Case: $4,000 Worst Case: $6,000 Lower allowance Higher allowance May 13,2015 Page 32 of 60

70 Comp # : 2483 Laundry Rooms - Remodel Location : Adjacent to lobby Quantity: (1) Room Evaluation : The laundry room was noted to be in good condition. No issues were noted. Laundry rooms should be remodeled at the approximate interval shown below, based on our experience with other associations. Remodeling typically includes replacement of flooring and other finishes (wallcoverings, etc.), as well as painting, and can also include installation/replacement of lighting, counter tops, etc. Costs can vary depending on the type and quality of replacement materials. Should ideally be coordinated with remodeling of any other amenity areas to maintain consistency in the common areas. 15 years 12 years Best Case: $4,000 Worst Case: $6,000 Lower allowance to replace Higher allowance Comp # : BUILDING SYSTEMS----- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: May 13,2015 Page 33 of 60

71 Comp # : 2501 Entry Access System - Replace Location : Entry areas of property Entry areas of property Quantity: (1) Access Panel Evaluation : Access/intercom system was not inspected internally during site inspection. Should be checked and repaired as needed by servicing vendor as routine maintenance. Individual components can often be replaced for relatively low cost as an Operating expense. Plan for complete replacement at the approximate interval shown here for functional and aesthetic considerations. 12 years 4 years Best Case: $4,000 Worst Case: $5,000 Lower allowance to replace Comp # : 2509 Gate Operators - Replace Location : Adjacent to entry/exit gates Replaced in 2014 Higher allowance Quantity: (2) Overhead Units Evaluation : Reported that these units typically experience a short useful life due to the heavy use. Liftmaster units. Good conditions noted with no functional/operational problems observed during our site inspection and no reported ongoing problems. As routine maintenance, we recommend regular professional inspections including service and repair as needed from the Operating budget. Even with ongoing maintenance, plan for replacement at typical life expectancy indicated below. Monitor actual expenses closely for future Reserve Study updates. Funding to replace with similar units. 6 years 4 years Best Case: $7,000 Worst Case: $8,000 Lower allowance to replace Higher allowance May 13,2015 Page 34 of 60

72 Comp # : 2515 Traction Elevator - Modernize Location : Center of building Modernized in 2002/2003 Quantity: (2) 23-Stop Elevators Evaluation : No reported issues with the elevators at the time of the inspection. Should be inspected regularly and tested as a preventive maintenance expense. This project typically includes replacement/upgrade of controller(s), mechanical door components, push-button fixtures, code-required changes, etc.. Elevator vendors typically recommend modernization cycles of approximately 25 years for continued smooth, safe operation, technology and code advances. In our experience, actual interval can be anywhere from years or more depending on level of use, maintenance, availability of replacement parts, etc. When remaining useful life is within a year few years of 0, begin discussions with your vendor(s) to determine the most cost effective specifications and approach to a modernization project. Modernization should be anticipated and planned for, as lead time for required parts can be months-long if done on short notice. To minimize elevator downtime, schedule the project ahead of time and consult with elevator vendor for more information. Many associations hire an elevator consultant to draft a scope of work and oversee the process of obtaining estimates, and installation for compliance. 25 years 12 years Best Case: $330,000 Worst Case: $370,000 Lower allowance to modernize Higher allowance May 13,2015 Page 35 of 60

73 Comp # : 2517 Elevators - Cab Remodel Location : Elevator interior Quantity: (2) Elevator Cabs Evaluation : Reported that the association would like to upgrade the elevators cabs soon. This component factors periodic remodeling of the elevator cab interiors for best appearance and function. Timing of this type of elective project is at the discretion of the board of directors, but ideally should be coordinated with mechanical modernization to minimize downtime. Cost can vary greatly depending upon chosen design--our estimates assume remodeling to a similar standard as currently in place. A general funding allowance based upon our experience and consultation with elevator vendors is factored below for planning purposes - include actual cost within future Reserve Study updates when known. 10 years 2 years Best Case: $14,000 Worst Case: $18,000 Lower allowance to refurbish cab Higher allowance May 13,2015 Page 36 of 60

74 Comp # : 2519 Elevator Room Condenser - Replace Location : Mechanical areas Replaced in 2013 Quantity: (1) 5-Ton Goodman Evaluation : This unit serves the elevator room. Life expectancy of HVAC systems can vary greatly depending on location of the property. Those in coastal locations typically have much shorter life expectancies due to more exposure to corrosive air environments. As routine maintenance, regular professional inspections and maintenance will help to extend useful life cycles. Treat routine repairs/maintenance such as filter replacement as an Operating expense. Plan for replacement at the typical service life expectancy indicated below. With proactive service and maintenance, useful life can often be extended - have service vendor evaluate continuously and adjust useful life / remaining useful life as indicated within Reserve Study updates. Unless otherwise noted, funding for system with same size/capacity as the current system. 15 years 12 years Best Case: $2,000 Worst Case: $3,000 Lower average allowance to replace Higher average allowance to replace May 13,2015 Page 37 of 60

75 Comp # : 2519 Elevator Room Split Sys. - Replace Location : Mechanical areas Replaced in 2003 Quantity: (1) 2-Ton Weather King Evaluation : Serial-T-M Model -24AHJ21S04C01. This unit serves the elevator room. Life expectancy of HVAC systems can vary greatly depending on location of the property. Those in coastal locations typically have much shorter life expectancies due to more exposure to corrosive air environments. As routine maintenance, regular professional inspections and maintenance will help to extend useful life cycles. Treat routine repairs/maintenance such as filter replacement as an Operating expense. Plan for replacement at the typical service life expectancy indicated below. With proactive service and maintenance, useful life can often be extended - have service vendor evaluate continuously and adjust useful life / remaining useful life as indicated within Reserve Study updates. Unless otherwise noted, funding for system with same size/capacity as the current system. 15 years 2 years Best Case: $3,000 Worst Case: $4,000 Lower average allowance to replace Higher average allowance to replace May 13,2015 Page 38 of 60

76 Comp # : 2520 Make Up Air Unit - Replace Location : Rooftop mechanical room Quantity: (1) 25 Ton Carrier Unit Evaluation : The unit is reported to have a new motor and a new VFD. This unit services all of the common hallways (2-21). Older unit that has been rebuilt in the past, but may be reaching the end of its useful life, and due to the unit's age, it may be cheaper to replace the unit rather than rebuild. The equipment should be maintained on a regular basis, checking belts, filters and motors. At time of inspection, no reported problems were noted. Recommend continuing current maintenance and inspections to ensure maximum useful life. 25 years 5 years Best Case: $70,000 Worst Case: $80,000 Lower allowance (including crane) Comp # : 2523 Supply/Exhaust Fans - Replace Location : Garage area Funded? : No Cost Source: Estimate Provided by Client Higher allowance (including crane) Quantity: (6) Fans Evaluation : Fans should be inspected and serviced regularly by HVAC vendor or maintenance staff to ensure proper function and to help attain full life expectancy. In most cases, motors can be rebuilt and small components can be replaced as needed as an Operating expense Best Case: Cost Source: Worst Case: May 13,2015 Page 39 of 60

77 Comp # : 2525 Exhaust Hoods - Replace Location : Roof Quantity: (5) Hoods Evaluation : Hoods appeared to be older. No reports of recent replacements. Fans should be inspected and serviced regularly by HVAC vendor or maintenance staff to ensure proper function and to help attain full life expectancy. In most cases, motors can be rebuilt and small components can be replaced as needed as an Operating expense. Plan for complete replacement at the approximate interval shown here. In most cases, individual fan units will need to be replaced, not all together as one comprehensive project. An allowance for replacements is recommended here. Keep track of all expenses and make adjustments as needed during future Reserve Study updates. 20 years 2 years Best Case: $8,000 Worst Case: $10,000 Lower allowance Higher allowance May 13,2015 Page 40 of 60

78 Comp # : 2531 Cooling Tower - Refurbish Location : Roof Replaced in 2014 Quantity: (1) Cooling Tower Evaluation : Evapco unit. Model -PMW-232A. The cooling tower replacement included: (2) 20 HP NEMA 3R VFD, (2) 15 HP Inverter duty fan motors, (2) 3 HP spray pump motors, and (2) 12KW sump heaters. Cooling tower systems can often be refurbished and individual components can be replaced to extend the life of the entire unit. Plan for periodic tear down/refurbish cycles at roughly the time below to extend total service life and provide maximum operating efficiency. Consult with the system's servicing vendor to optimize performance and plan for replacement of key components. This component should be re-evaluated and adjusted as needed during future Reserve Study updates. Cost estimate below incudes a full replacement of the unit. 10 years 8 years Best Case: $8,000 Worst Case: $10,000 Lower allowance Higher allowance May 13,2015 Page 41 of 60

79 Comp # : 2533 Cooling Tower - Replace Location : Rooftop Replaced in 2014 Quantity: (1) Cooling Tower Evaluation : Evapco unit. Model -PMW-232A. The cooling tower replacement included: (2) 20 HP NEMA 3R VFD, (2) 15 HP Inverter duty fan motors, (2) 3 HP spray pump motors, and (2) 12KW sump heaters. This component factors periodic total replacement of cooling tower. The system should be inspected and serviced regularly throughout its life cycle to ensure optimal performance and attain a full useful life. As remaining useful life approaches zero, consult with HVAC vendors to determine options for replacement. In many cases, more efficient systems are available that may have a higher initial cost, but are advantageous over the long term due to lower energy usage. In many cases the "payback" period for efficient HVAC systems is a fraction of the actual useful life of the system. Continue to proactively maintain and ensure proper water chemistry to extend life as much as possible. 40 years 38 years Best Case: Lower allowance $290,000 Worst Case: $310,000 Cost Source: Client Cost History Higher allowance Comp # : 2535 Roof Motors & Pumps - Allowance Quantity: Assorted Pumps, Valves Location : Mechanical room on roof New circulation pump in 2014 Evaluation : Individual pumps and motors can often be repaired or rebuilt for relatively low cost as an Operating expense. This component recommends an allowance for replacements and larger repair expenses. 5 years 3 years Best Case: $6,000 Worst Case: $8,000 Lower allowance Higher allowance Cost Source: Allowance May 13,2015 Page 42 of 60

80 Comp # : 2539 Trash Compactor - Replace Location : Garage area Entry areas of property Quantity: (1) Compactor Evaluation : No issues noted. Reported by staff to be in functional operating condition. Inspect, service and maintain professionally using general maintenance and repair funds. Plan for future replacement at roughly the time frame below. Proactive maintenance 20 years 11 years Best Case: $13,000 Worst Case: $25,000 Lower allowance to replace Comp # : 2543 Security System - Modernize Location : Common areas Replaced in 2013 Higher allowance Quantity: (22) Cameras Evaluation : No issues were reported or noted with the equipment at the time of the inspection. Security/surveillance systems should be monitored closely to ensure proper function. Whenever possible, camera locations should be protected and isolated to prevent tampering and/or theft. Plan to replace/upgrade the system at the approximate interval shown below. Typical modernization projects may include addition and/or replacement of camera fixtures, recording equipment, monitors, software, etc. In many cases, replacement or modernization is warranted due to advancement in technology, not functional failure of the existing system. Keep track of any partial replacements and include cost history during future Reserve Study updates. 10 years 7 years Best Case: $12,000 Worst Case: $15,000 Lower allowance Higher allowance May 13,2015 Page 43 of 60

81 Comp # : 2549 Generator - Replace Location : Mechanical area in garage Quantity: (350) KW Evaluation : ~264 hours of total operation at this time. Vendors typically report that with ongoing maintenance (e.g. fluids, batteries, tune ups), useful life can be extended for many years, sometimes years or more. However, funding for complete replacement is often warranted due to lack of available replacement parts rather than failure of the system as a whole. Treat periodic service and inspect as general maintenance expense within Operating budget, not Reserves. Generator is a key building element in this location due to risk of severe storms and power outages, and should be tested evaluated regularly to ensure proper function. 40 years 19 years Best Case: $120,000 Worst Case: $150,000 Lower allowance Higher allowance May 13,2015 Page 44 of 60

82 Comp # : 2557 Fire Control System- Update/Replace Location : Throughout property Replaced in 2015 Quantity: Central Fire System Evaluation : Meridian system. Funding provided below for the complete upgrade of the system based on the recent work that was completed in If the association is planning to replace just the panel, a panel for a building like this will typically cost ~$5k-$8k. No problems were reported. Panel was not tested for functionality during site inspection. Unless otherwise noted, fire alarm panel is assumed to have been designed and installed properly and adheres to all relevant building codes. Regular testing and inspections should be conducted as an Operating expense. In many cases, manufacturers discontinue support of panel and parts/service availability may therefore be limited as the panel ages. Research and experience suggests planning for replacement at roughly the time frame below. Begin formulation of specifications and obtain estimates in advance of need - replace proactively to ensure safety. 30 years 29 years Best Case: $112,000 Worst Case: $130,000 Lower allowance to replace Higher allowance Cost Source: Client Cost History May 13,2015 Page 45 of 60

83 Comp # : 2559 Fire Pumps - Allowance Location : Garage fire room Quantity: Central Fire System Evaluation : Good conditions reported. Regular testing and inspections indicated. Manufacturers can periodically discontinue support of panel and parts / service availability may therefore be limited in coming years. ADA work will likely need to be performed periodically (e.g. strobes) and devices (e.g. speakers, detectors) in common areas and units as well. Research and experience suggests planning for replacement at roughly the time frame below. Begin formulation of specifications and obtain allowances in advance of need - replace proactively to ensure safety. 5 years 2 years Best Case: $8,000 Worst Case: $10,000 Lower allowance to replace Comp # : 2565 CO Monitors - Replace Location : Garage Higher allowance Quantity: ~ (4) CO Detectors Evaluation : Carbon monoxide monitors were not tested for functionality during site inspection. Should be inspected, tested and individually repaired/replaced as needed by qualified vendor. Funding recommendation shown here provides for replacement of all units together as one project. As with any life safety component, monitors should be kept in good condition and replaced periodically with more modern technology. 7 years 5 years Best Case: $5,000 Worst Case: $6,000 Lower allowance Higher allowance May 13,2015 Page 46 of 60

84 Comp # : 2567 Domestic Water Tanks - Replace Location : Roof mechanical area Replaced in 2011 Quantity: (2) 200 Gallon Tanks Evaluation : NST steel holding tanks. Water heater life expectancies can vary greatly depending on level of use, location within a building, etc. Should be inspected and repaired as needed by servicing vendor or maintenance staff. Unless otherwise noted, expected to be functional. Plan to replace at the approximate interval shown below. 25 years 20 years Best Case: Lower allowance $10,000 Worst Case: $13,000 Comp # : 2567 Tankless Water Heater-Replace ('15) Location : Roof mechanical area Replaced in 2015 Higher allowance Quantity: (1) 195k BTU Units Evaluation : These units are Eternal tankless water heaters. Model- GU195S/508. Serial - G Holding capacity is (3) gallons. Water heater life expectancies can vary greatly depending on level of use, location within a building, etc. Should be inspected and repaired as needed by servicing vendor or maintenance staff. Unless otherwise noted, expected to be functional. Plan to replace at the approximate interval shown below. 20 years 19 years Best Case: $2,000 Worst Case: $4,000 Lower allowance Higher allowance Cost Source: ARI Cost Database May 13,2015 Page 47 of 60

85 Comp # : 2567 Tankless Water Heaters - Replace Location : Roof mechanical area Replaced in 2011 Quantity: (7) 195k BTU Units Evaluation : These units are Eternal tankless water heaters. Model- GU195S/508. Serial - G Holding capacity is (3) gallons. Water heater life expectancies can vary greatly depending on level of use, location within a building, etc. Should be inspected and repaired as needed by servicing vendor or maintenance staff. Unless otherwise noted, expected to be functional. Plan to replace at the approximate interval shown below. 20 years 16 years Best Case: Lower allowance $18,000 Worst Case: $25,000 Comp # : 2571 Heat Boilers - Replace Location : Mechanical Room Replaced in 2011 Cost Source: ARI Cost Database Higher allowance Quantity: (2) 1 Million BTU Evaluation : These units provide the heat for the heat pump in the cooling tower. Model C Serial number W Natural gas boiler. With routine inspection and maintenance, the boiler should have an approximate useful life as shown below before replacement with future technology and efficiencies will be warranted. Life expectancy can vary based on level of use and location on the property. When considering replacements, the association should strongly consider replacing with high-efficiency models. Although initial cost may be higher than conventional alternatives, the payback period in energy savings is often a fraction of the overall life span of the boiler itself. 25 years 20 years Best Case: $90,000 Worst Case: $110,000 Lower allowance Higher allowance May 13,2015 Page 48 of 60

86 Comp # : 2583 Laundry Machines - Replace Quantity: (19) Stackable, (8) W & D Location : Laundry room Funded? : No Evaluation : These machines are leased and reportedly not owned by the HOA Best Case: Cost Source: Worst Case: Comp # : 2587 Irrigation Controller - Replace Location : Courtyard Funded? : No Quantity: (1) Controller Evaluation : No problems observed or reported of irrigation clocks throughout community. Inspect regularly and repair/replace as needed. Although eventual replacement will be needed due to parts obsolescence, technological upgrades, etc. best suited to be handled as needed within the operating budget and not anticipated as large scale reserve project. Photo Not Available Best Case: Cost Source: Worst Case: May 13,2015 Page 49 of 60

87 Comp # : AMENITIES----- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: Comp # : 2805 BBQs - Replace Location : Common areas Replaced in 2014 Quantity: (2) Units Evaluation : No major issues noted. Barbecues were not tested during site inspection, and are assumed to be functional. Should be cleaned after each use and covered when not in use in order to prolong life expectancy. Unless otherwise noted, funding recommendation assumes that barbecues would be replaced with comparable types. Schedule for replacement is subject to the association's preferences and standards in the local area. Life estimates shown here are based on our experience with similar associations. 10 years 8 years Best Case: $2,000 Worst Case: $3,000 Lower allowance Higher allowance May 13,2015 Page 50 of 60

88 Comp # : 2833 Fitness Room - Remodel Location : Adjacent to pool Quantity: (1) Fitness Room Evaluation : Fitness room should be remodeled at the approximate interval shown here in order to maintain good appearance and functionality. Remodeling typically includes replacement of flooring, lighting, mirrors (if necessary), and can also incorporate replacement of other furnishings such as televisions. Best practice is to coordinate remodeling with other projects, such as remodeling of other amenity areas, or with replacement of exercise equipment. 15 years 12 years Best Case: Lower allowance $6,000 Worst Case: $10,000 Comp # : 2835 Cardio Equipment - Replace Location : Fitness Room Replaced (1) treadmill in 2015 Higher allowance Quantity: (5) Pieces Evaluation : Reported that the association is planning to make replacements in 2015/2016. The pieces include (2) treadmills, (2) bikes, and (1) cross trainer. Inspect regularly, clean for appearance, maintain and repair promptly as needed from Operating budget to ensure safety. Best practice is to coordinate replacement of all equipment together to obtain better pricing and achieve consistent style and quality. Commercial-grade equipment should have a relatively long functional life assuming proper maintenance. Replacement may be warranted from an aesthetic/quality standpoint before equipment fails to take advantage of new technology and maintain an attractive, desirable amenity. 5 years 0 years Best Case: $10,000 Worst Case: $12,000 Lower allowance Higher allowance May 13,2015 Page 51 of 60

89 Comp # : 2835 Strength Equipment - Replace Location : Fitness Room Quantity: (5) Pieces Evaluation : Reported that the association is planning to make replacements in 2015/2016. The pieces include (2) leg machines, (1) bicep machine, and (1) lat machine, and (1) bench press. Inspect regularly, clean for appearance, maintain and repair promptly as needed from Operating budget to ensure safety. Best practice is to coordinate replacement of all equipment together to obtain better pricing and achieve consistent style and quality. Commercial-grade equipment should have a relatively long functional life assuming proper maintenance. Replacement may be warranted from an aesthetic/quality standpoint before equipment fails to take advantage of new technology and maintain an attractive, desirable amenity. 10 years 0 years Best Case: $12,000 Worst Case: $14,000 Lower allowance Higher allowance May 13,2015 Page 52 of 60

90 Comp # : 2837 Exterior Furnishings - Replace Location : Common areas Quantity: ~ (43) Pieces Evaluation : Pieces include (11) planters, (2) trash cans, (4) stainless steel trash cans, (3) concrete benches, (3) cigarette trash cans, (1) trash can, (1) dog waste station. Life expectancy of picnic tables, benches and other outdoor furnishings can vary greatly depending on level of exposure to the elements, preventive maintenance, quality of material and aesthetic standards of the association. In our experience, it is prudent to plan for replacement of all items together to preserve a coordinated appearance. Cost estimates can vary greatly depending on types of replacement furnishings selected. Unless otherwise noted, funding recommendation shown here assumes replacement with pieces comparable to the existing furnishings. 10 years 3 years Best Case: $10,000 Worst Case: $12,000 Higher allowance Lower allowance May 13,2015 Page 53 of 60

91 Comp # : 2850 Pool/Patio Furniture - Replace Location : Pool area Replaced in 2013/2014 Quantity: ~ (42) Pieces Evaluation : Good conditions were noted. Units include: (16) chairs, (16) chaise lounges, (4) tables, and (6) high-bar chairs. Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Protected storage of furniture when not in use can help to extend useful life. Best practice is to replace all pieces together in order to maintain consistent style and quality in the pool/recreation area. Costs can vary greatly based on type of pieces selected for replacement. Funding recommendation shown here is based on replacement with comparable quality pieces. 10 years 8 years Best Case: $8,000 Worst Case: $13,000 Lower allowance to replace Higher allowance May 13,2015 Page 54 of 60

92 Comp # : 2855 Pool Deck - Seal/Repair Location : Pool deck Sealed in 2013 Quantity: ~ 2,400 GSF Evaluation : Minor cracking seen. No major issues were observed, however the seal appeared to be wearing thin and faded. Pool deck is located above the garage and should be inspected on a regular basis to mitigate any potential issues. Pool deck should not need to be completely replaced at any time in the foreseeable future, but occasional repairs may be required due to sun and weather exposure, pool chemicals, etc. Coatings lose thickness each year due to wear and exposure to UV light. If more than the topcoat is allowed to wear off, the surface may still appear to be in good condition to the untrained eye, but waterproof integrity may be compromised. Decks should be thoroughly evaluated by a decking or waterproofing contractor prior to re-coating in order to determine scope of any required repairs. If the deck system has a warranty, the association should make sure to follow any requirements necessary to maintain said warranty, such as re-coating at required intervals and conducting professional inspections. As a general rule, potted plants and other items that may trap water should be elevated off the deck or used with a waterproof liner in order to prevent prolonged exposure. Should be pressure-washed periodically to minimize staining and restore good, consistent appearance. 5 years 2 years Best Case: $2,000 Worst Case: $5,000 Lower allowance Higher allowance May 13,2015 Page 55 of 60

93 Comp # : 2857 Coping Tiles - Replace Location : Pool Quantity: ~ 165 LF Evaluation : Fair conditions were noted. Small repairs to waterline tile should be done as needed as an Operating expense. Complete re-tiling is warranted at longer intervals to restore the look and feel of the interior finish. While drained for resurfacing, any other repairs to lighting, handrails, stairs, ladders, etc. should be conducted as needed. This type of project is best suited for slow/offseason to minimize downtime during periods when pool is used heavily. Should be expected at the approximate interval shown below to preserve this important amenity of the association. 30 years 2 years Best Case: Lower allowance $7,000 Worst Case: $9,000 Comp # : 2859 Pool - Resurface Location : Pool/spa area Higher allowance Quantity: ~ 1,360 GSF Evaluation : The pool has not been resurfaced since 2009, however, no issues were noted. The remaining useful life has been extended based on the appearance of the pool surface. Pool resurfacing will restore the aesthetic quality of the pool while protecting the actual concrete shell of the pool from deterioration. While drained for resurfacing, any other repairs to lighting, handrails, stairs, ladders, etc. should be conducted as needed. This type of project is best suited for slow/offseason to minimize downtime during periods when pool is used heavily. Should be expected at the approximate interval shown below to preserve this important amenity of the association. 15 years 2 years Best Case: $9,000 Worst Case: $13,000 Lower allowance Higher allowance May 13,2015 Page 56 of 60

94 Comp # : 2861 Spa - Resurface Location : Pool/spa area Quantity: (1) 13' Diameter Evaluation : The spa surface was noted to be in poor condition. Cracking and pitting were noted on the entry spa steps. Spas often need to be resurfaced more frequently than pools due to higher temperatures, but both should be done at the same time whenever possible to achieve better pricing and minimize downtime. Resurfacing will restore the aesthetic quality of the spa while protecting the actual concrete shell from deterioration. While drained for resurfacing, any other repairs to lighting, handrails, stairs, ladders, etc. should be conducted as needed. This type of project is best suited for slow/offseason to minimize downtime during periods when spa is used heavily. Should be expected at the approximate interval shown below to preserve this important amenity of the association. 5 years 0 years Best Case: Lower allowance $4,000 Worst Case: $5,000 Higher allowance Comp # : 2863 Pool/Spa Filters - Replace Quantity: (2) Sand Filters Location : Pool equipment room Replaced in 2009 Evaluation : No leaking or evidence of leaking noted. Fiberglass/Metal filters should experience an extended useful life if maintained. Pool vendor should inspect regularly for optimal performance and address any repairs or preventive maintenance as needed. Life can vary depending on location, as well as level of use and preventive maintenance. 20 years 13 years Best Case: $2,000 Worst Case: $4,000 Lower allowance Higher allowance May 13,2015 Page 57 of 60

95 Comp # : 2867 Pool Heater - Replace Location : Pool equipment room Quantity: (1) 400K BTU Heater Evaluation : Unit is older and may need to be replaced soon. Pool vendor should inspect heater regularly to ensure proper function, identify any required repairs, etc. Internal components were not analyzed during our site inspection, but typical signs of age and failure include rusting and corrosion around the burners, worn electrical components, etc. Many associations choose not to heat their pools year-round, which can prolong the life of the heater while reducing energy costs. When replacement models are being evaluated, we recommend considering high efficiency models which may have a higher initial cost but will ultimately be less expensive due to reduced energy usage. 10 years 0 years Best Case: $5,000 Worst Case: $7,000 Lower allowance Higher allowance May 13,2015 Page 58 of 60

96 Comp # : 2869 Spa Heater - Replace Location : Pool equipment room in garage Quantity: (1) 250K BTU Heater Evaluation : Unit is older, and based on the age of the unit, plan to replace the unit soon. Pool vendor should inspect heater regularly to ensure proper function, identify any required repairs, etc. Internal components were not analyzed during our site inspection, but typical signs of age and failure include rusting and corrosion around the burners, worn electrical components, etc. Many associations choose not to heat their pools year-round, which can prolong the life of the heater while reducing energy costs. When replacement models are being evaluated, we recommend considering high efficiency models which may have a higher initial cost but will ultimately be less expensive due to reduced energy usage. 10 years 0 years Best Case: Lower allowance $3,000 Worst Case: $4,000 Higher allowance Comp # : 2871 Pool/Spa Pumps - Repair/Replace Quantity: (2) Pumps Location : Pool equipment room Funded? : No Evaluation : In most cases, pool and spa pumps are repaired or rebuilt as needed as an Operating cost, as expenses involved do not typically meet threshold for Reserve funding. Plan to repair and replace as needed as an Operating expense, but keep track of any larger projects. This component may need to be re-evaluated during future Reserve Study updates if costs become significant. Best Case: Cost Source: Worst Case: May 13,2015 Page 59 of 60

97 Comp # : 2875 Pool Restrooms - Refurbish Location : Pool/spa areas Quantity: (2) Restrooms Evaluation : Each bathroom consists of (1) light, (1) sink, and (1) toilet. Good condition noted with no significant damage/deterioration noted. Minor staining noted on the floors, but no pitting or chipping seen. Prudent planning suggests setting aside funds for periodic large scale refurbishing which may include items such as: plumbing fixtures, vanity area, lighting, flooring, ventilation, accessories, décor, etc. As routine maintenance, inspect regularly, perform any needed local repairs promptly utilizing general operating funds. 15 years 10 years Best Case: $5,000 Worst Case: $6,000 Lower allowance Higher allowance May 13,2015 Page 60 of 60