Sample Fractional / Timeshare

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1 Full Reserve Study Sample Fractional / Timeshare Anywhere, USA Report #: For Period Beginning: January 1, 2016 Expires: December 31, 2016 Date Prepared: August 11, 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 8/11/2015

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 8/11/2015

4 3- Minute Executive Summary Association: Sample #: Location: Anywhere, USA # of Units: 50 Report Period: January 1, 2016 through December 31, 2016 Findings/Recommendations as-of 1/1/2016: Projected Starting Reserve Balance:... $324,357 Current Fully Funded Reserve Balance:... $2,440,005 Average Reserve Deficit Per Unit:... $42,313 Recommended 2016 Monthly Full Funding Contributions:... $56,000 Alternate Minimum Contributions to keep Reserves above $0:... $46,000 Recommended 2016 Special Assessment for Reserves:... $0 Most Recent Budgeted Reserve Contribution Rate:... $52,881 Economic Assumptions: Net Annual After Tax Interest Earnings Accruing to Reserves % Annual Inflation Rate % This is a Full Reserve Study (original, created from scratch ), and is based on our site inspection on June 23, It was prepared by a credentialed Reserve Specialist (RS #260). Your Reserve Fund is currently 13% 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 and 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 for component details; the basis of our assumptions. Association Reserves Colorado, LLC i 8/11/2015

5 Table 1: Executive Summary Useful Rem. Current Life Useful Cost # Component (yrs) Life (yrs) Estimate Building Exterior 2303 Exterior Wall Lights - Replace 25 6 $2, Paver Balcony Decks - Replace $10, Wood Balcony Decks - Seal/Repair 3 1 $9, Wood Balcony Decks - Resurface $30, Balcony Rails - Repaint 3 1 $15, Balcony Rails - Replace $68, Patio Deck - Clean/Seal/Repair 5 5 $1, Patio Deck - Replace Coating 25 0 $4, Building Exterior - Seal/Paint 8 7 $16, Stucco Exterior - Seal/Paint 8 7 $30, Stone Veneer - Repair 20 3 $50, Windows/Sliders - Replace/Repair 1 0 $15, Balcony Door Glass - Replace 10 5 $11, Tile Roof Underlayment - Replace 25 6 $105, Gutters/Downspouts - Replace 25 6 $9, Heat Tape - Replace 3 2 $6, Chimney Covers & Flue Caps -Replace 25 6 $8,000 Building Common Interior 2401 Interior Surfaces - Repaint 10 6 $11, Stairwell Int. Surfaces - Repaint 15 2 $4, Wallcoverings - Replace 10 6 $17, Interior Lights - Replace 25 6 $5, Carpet - Replace 10 6 $30, Stairwell Carpet - Replace 15 2 $5, Molding/Trim - Replace $23, Interior Doors - Replace 20 5 $106, Interior Doors - Refinish 10 0 $30, Furnishings and Décor - Update 10 6 $6, Bathrooms - Remodel 15 5 $6, Employee Lounge - Remodel 15 5 $2, Laundry Rooms - Remodel 15 5 $2,000 Mechanical 2503 Card/Fob Reader System - Replace 10 5 $50, Door Software - Upgrade 2 1 $4, Hydraulic Elevator - Modernize 25 6 $170, Elevators - Cab Remodel 20 3 $48, Air Handlers - Repair $10, Computer/IT Equipment - Replace 12 5 $5, Exit/Emergency Lights - Replace 25 6 $6, Laundry Machines - Replace $2, Circulation Pump - Replace $4,000 Unit Interior Association Reserves Colorado, LLC ii 8/11/2015

6 Table 1: Executive Summary Useful Rem. Current Life Useful Cost # Component (yrs) Life (yrs) Estimate 2901 Interior Surfaces - Repaint 7 6 $44, Unit Interiors - Refurbish 10 9 $90, Wallpaper - Replace 10 3 $58, Carpeting - Replace 7 6 $205, Lamps - Replace 12 5 $62, Lighting Fixtures - Replace 12 5 $20, Swing Light - Replace 12 5 $17, Ceiling Fans - Replace $20, Artwork/Mirrors - Replace 10 9 $30, Drapery - Replace 7 6 $237, Valance - Replace 7 5 $18, Wooden Blinds - Replace 10 9 $52, Duvets - Replace 7 6 $72, Linens - Replace 7 3 $190, Bed Shams - Replace 7 6 $29, Throws - Replace 7 6 $6, Bedskirts - Replace 7 6 $35, Mattresses - Replace 10 9 $58, Bed Frames - Replace 10 9 $10, Headboard - Replace 10 9 $32, Sleeper Sofas - Replace 10 9 $27, Sofa - Replace 10 9 $46, Bar Stools - Replace 10 9 $26, Benches - Replace 10 9 $13, Corner Unit Chairs - Replace 10 9 $17, Dining Chairs - Replace 10 9 $82, Hickory Chairs - Replace 10 9 $13, Leather Chairs - Replace 10 9 $45, Credenzas - Replace 10 9 $30, Desk - Replace 10 9 $ Adler Sideboard - Replace 10 9 $41, Armoires - Replace 10 9 $50, Wood Chest - Replace 10 9 $15, Wood Dressers - Replace 10 9 $26, Night Stands - Replace 10 9 $41, Coffee Tables - Replace 10 9 $28, Dining Tables - Replace 10 9 $26, End Tables - Replace 10 9 $20, Safes - Replace $13, Baker Rack - Replace 10 9 $12, Shower Curtains - Replace 7 6 $9, Bathrooms - Refurbish (1st Floor) $800, Bathrooms - Refurbish (2-3 Floors) $1,600, Bathrooms - Refurbish (4th Floor) $230, Kitchen Counter/Cabs - Remodel $530, Kitchens - Remodel 8 3 $126, Kitchen Appliances - Replace 10 2 $261, Kitchen Sink - Replace $18, Unit Front Doors - Replace 20 5 $104,000 Association Reserves Colorado, LLC iii 8/11/2015

7 Table 1: Executive Summary Useful Rem. Current Life Useful Cost # Component (yrs) Life (yrs) Estimate 2953 Telephone Handsets - Replace 7 3 $9, Flat Screen TVs - Replace 6 5 $95, TV Wall Mount - Replace 6 5 $25, Baseboard Covers - Replace 10 9 $25, Laundry Machines - Replace $33, Balcony Furniture - Replace $34, Decoration Package - Replace 7 6 $43, Interior Units - Refurbish 10 9 $90, Smoke Detectors - Replace $16, Fireplaces - Replace 25 0 $50, 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 iv 8/11/2015

8 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 Full Reserve Study, we started with a review of your Governing Documents, recent Reserve expenditures, an evaluation of how expenditures are handled (ongoing maintenance vs Reserves), and research into any well-established association precedents. We performed an on-site inspection to quantify and evaluate your common areas, creating your Reserve Component List from scratch. Association Reserves Colorado, LLC 1 8/11/2015

9 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 8/11/2015

10 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 a 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 8/11/2015

11 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 8/11/2015

12 Assoc Site Inspection Notes During our site visit on June 23, 2015, we started the site inspection beginning with the unit interiors. We visually inspected all/some of the buildings, and were able to see the majority of the common areas. We were not able to inspect the aur handlers. Please see photo appendix for component details; the basis of our assumptions. Association Reserves Colorado, LLC 5 8/11/2015

13 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 $1,043,862. Adding the next five years, your first ten years of projected Reserve expenses are $4,356,904. 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 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ Years Figure 1 Association Reserves Colorado, LLC 6 8/11/2015

14 Assoc Reserve Fund Status The starting point for our financial analysis is your Reserve Fund balance, projected to be $324,357 as-of the start of your Fiscal Year on January 1, As of January 1, 2016, your Fully Funded Balance is computed to be $2,440,005 (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 13% Funded. Across the country, approx 48% 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 $56,000/month this Fiscal Year. 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 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Years Figure 2 Association Reserves Colorado, LLC 7 8/11/2015

15 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. $12,000, Yr Cash Flow Target Fully Funded Balance Recommended Funding Plan Alternate (Minimum) Current Budget $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $ 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 8/11/2015

16 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 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 8/11/2015

17 Table 2: Reserve Component List Detail Rem. Useful Useful [ --- Current Cost Estimate --- ] # Component Quantity Life Life Best Case Worst Case Building Exterior 2303 Exterior Wall Lights - Replace ~ (3) Fixtures 25 6 $1,000 $3, Paver Balcony Decks - Replace ~ 400 GSF $8,000 $12, Wood Balcony Decks - Seal/Repair ~ 1,880 GSF 3 1 $8,000 $10, Wood Balcony Decks - Resurface ~ 1,480 GSF $27,000 $33, Balcony Rails - Repaint ~ 800 LF 3 1 $14,000 $16, Balcony Rails - Replace ~ 800 LF $64,000 $72, Patio Deck - Clean/Seal/Repair ~ 600 GSF 5 5 $1,000 $2, Patio Deck - Replace Coating ~ 600 GSF 25 0 $3,000 $5, Building Exterior - Seal/Paint ~ 8,200 GSF 8 7 $13,000 $20, Stucco Exterior - Seal/Paint ~ 14,100 GSF 8 7 $25,000 $35, Stone Veneer - Repair ~ 2,115 GSF 20 3 $45,000 $55, Windows/Sliders - Replace/Repair ~ (339) Windows 1 0 $10,000 $20, Balcony Door Glass - Replace ~ (43) Doors 10 5 $10,000 $12, Tile Roof Underlayment - Replace ~ 16,100 GSF 25 6 $95,000 $115, Gutters/Downspouts - Replace ~ 900 LF 25 6 $7,000 $11, Heat Tape - Replace ~ 900 LF 3 2 $5,000 $7, Chimney Covers & Flue Caps -Replace (6) Covers, (12) Caps 25 6 $6,000 $10,000 Building Common Interior 2401 Interior Surfaces - Repaint ~ 10,100 GSF 10 6 $10,000 $13, Stairwell Int. Surfaces - Repaint ~ 3,600 GSF 15 2 $4,000 $5, Wallcoverings - Replace ~ 3,400 GSF 10 6 $14,000 $20, Interior Lights - Replace ~ (44) Fixtures 25 6 $4,000 $7, Carpet - Replace ~ 467 GSY 10 6 $28,000 $33, Stairwell Carpet - Replace ~ 102 GSY 15 2 $5,000 $6, Molding/Trim - Replace ~ 1,700 GSF $17,000 $30, Interior Doors - Replace (50) Doors 20 5 $100,000 $112, Interior Doors - Refinish (50) Doors 10 0 $25,000 $35, Furnishings and Décor - Update ~ (12) Pieces 10 6 $5,000 $7, Bathrooms - Remodel (2) Bathrooms 15 5 $5,000 $7, Employee Lounge - Remodel Desk, chairs, etc 15 5 $2,000 $3, Laundry Rooms - Remodel (1) Room 15 5 $1,000 $3,000 Mechanical 2503 Card/Fob Reader System - Replace ~ (50) Units 10 5 $45,000 $55, Door Software - Upgrade ~ (50) Units 2 1 $3,000 $5, Hydraulic Elevator - Modernize (2) 4-Stop Elevator 25 6 $160,000 $180, Elevators - Cab Remodel (2) Elevator Cabs 20 3 $46,000 $50, Air Handlers - Repair (8) Motors $9,000 $11, Computer/IT Equipment - Replace (2) Computers 12 5 $5,000 $6, Exit/Emergency Lights - Replace (44) Fixtures 25 6 $6,000 $7, Laundry Machines - Replace (1) Washer (1) Dryer $1,000 $3, Circulation Pump - Replace (1) Pump $3,000 $5,000 Association Reserves Colorado, LLC 10 8/11/2015

18 Table 2: Reserve Component List Detail Rem. Useful Useful [ --- Current Cost Estimate --- ] # Component Quantity Life Life Best Case Worst Case Unit Interior 2901 Interior Surfaces - Repaint ~ 38,900 GSF 7 6 $39,000 $49, Unit Interiors - Refurbish (50) Units 10 9 $80,000 $100, Wallpaper - Replace ~ 21,600 GSF 10 3 $56,000 $60, Carpeting - Replace ~ 2,517 GSY 7 6 $200,000 $210, Lamps - Replace ~ (228) Pieces 12 5 $60,000 $64, Lighting Fixtures - Replace ~ (81) Pieces 12 5 $18,000 $22, Swing Light - Replace ~ (64) Pieces 12 5 $16,000 $18, Ceiling Fans - Replace ~ (48) Pieces $18,000 $22, Artwork/Mirrors - Replace ~ (190) Pieces 10 9 $25,000 $35, Drapery - Replace ~ (149) Pieces 7 6 $235,000 $240, Valance - Replace ~ (31) Pieces 7 5 $17,000 $20, Wooden Blinds - Replace ~ (149) Pieces 10 9 $50,000 $54, Duvets - Replace ~ (116) Duvets 7 6 $70,000 $75, Linens - Replace (50) Units 7 3 $180,000 $200, Bed Shams - Replace ~ (166) Shams 7 6 $25,000 $34, Throws - Replace ~ (31) Throws 7 6 $5,000 $7, Bedskirts - Replace ~ (116) Skirts 7 6 $30,000 $40, Mattresses - Replace ~ (114) Mattresses 10 9 $56,000 $60, Bed Frames - Replace ~ (116) Frames 10 9 $8,000 $12, Headboard - Replace ~ (83) Units 10 9 $30,000 $34, Sleeper Sofas - Replace ~ (19) Units 10 9 $25,000 $30, Sofa - Replace ~ (33) Units 10 9 $40,000 $52, Bar Stools - Replace ~ (62) Pieces 10 9 $20,000 $32, Benches - Replace ~ (31) Benches 10 9 $12,000 $15, Corner Unit Chairs - Replace ~ (12) Pieces 10 9 $16,000 $18, Dining Chairs - Replace ~ (193) Pieces 10 9 $75,000 $90, Hickory Chairs - Replace ~ (31) Pieces 10 9 $12,000 $14, Leather Chairs - Replace ~ (31) Pieces 10 9 $40,000 $50, Credenzas - Replace ~ (32) Pieces 10 9 $25,000 $35, Desk - Replace ~ (2) Desks 10 9 $900 $1, Adler Sideboard - Replace ~ (31) Pieces 10 9 $35,000 $47, Armoires - Replace ~ (31) Pieces 10 9 $45,000 $55, Wood Chest - Replace ~ (31) Pieces 10 9 $10,000 $20, Wood Dressers - Replace ~ (53) Pieces 10 9 $20,000 $33, Night Stands - Replace ~ (133) Pieces 10 9 $35,000 $47, Coffee Tables - Replace ~ (50) Units 10 9 $26,000 $30, Dining Tables - Replace ~ (50) Units 10 9 $22,000 $30, End Tables - Replace ~ (64) Pieces 10 9 $15,000 $26, Safes - Replace (50) Pieces $13,000 $14, Baker Rack - Replace ~ (19) Pieces 10 9 $12,000 $13, Shower Curtains - Replace (64) Pieces 7 6 $8,000 $10, Bathrooms - Refurbish (1st Floor) (12) Units $700,000 $900, Bathrooms - Refurbish (2-3 Floors) (28) Units $1,500,000 $1,700, Bathrooms - Refurbish (4th Floor) (10) Units $220,000 $240, Kitchen Counter/Cabs - Remodel (50) Kitchens $500,000 $560, Kitchens - Remodel (50) Kitchen 8 3 $120,000 $132, Kitchen Appliances - Replace (50) Units 10 2 $255,000 $268,000 Association Reserves Colorado, LLC 11 8/11/2015

19 Table 2: Reserve Component List Detail Rem. Useful Useful [ --- Current Cost Estimate --- ] # Component Quantity Life Life Best Case Worst Case 2949 Kitchen Sink - Replace (50) Units $16,000 $20, Unit Front Doors - Replace (50) Doors 20 5 $100,000 $108, Telephone Handsets - Replace (114) Units 7 3 $8,000 $10, Flat Screen TVs - Replace ~ (114) Flat Screens 6 5 $90,000 $100, TV Wall Mount - Replace ~ (114) Flat Screens 6 5 $20,000 $30, Baseboard Covers - Replace (113) Pieces 10 9 $20,000 $30, Laundry Machines - Replace (31) Units $26,000 $40, Balcony Furniture - Replace (38) Pieces $30,000 $38, Decoration Package - Replace (50) Units 7 6 $40,000 $46, Interior Units - Refurbish (50) Units 10 9 $80,000 $100, Smoke Detectors - Replace (150) Pieces $12,000 $20, Fireplaces - Replace (50) Pieces 25 0 $40,000 $60, Total Funded Components Association Reserves Colorado, LLC 12 8/11/2015

20 Table 3: Fully Funded Balance Current Fully Cost Effective Useful Funded # Component Estimate X Age / Life = Balance Building Exterior 2303 Exterior Wall Lights - Replace $2,000 X 19 / 25 = $1, Paver Balcony Decks - Replace $10,000 X 19 / 30 = $6, Wood Balcony Decks - Seal/Repair $9,000 X 2 / 3 = $6, Wood Balcony Decks - Resurface $30,000 X 19 / 30 = $19, Balcony Rails - Repaint $15,000 X 2 / 3 = $10, Balcony Rails - Replace $68,000 X 19 / 30 = $43, Patio Deck - Clean/Seal/Repair $1,500 X 0 / 5 = $ Patio Deck - Replace Coating $4,000 X 25 / 25 = $4, Building Exterior - Seal/Paint $16,500 X 1 / 8 = $2, Stucco Exterior - Seal/Paint $30,000 X 1 / 8 = $3, Stone Veneer - Repair $50,000 X 17 / 20 = $42, Windows/Sliders - Replace/Repair $15,000 X 1 / 1 = $15, Balcony Door Glass - Replace $11,000 X 5 / 10 = $5, Tile Roof Underlayment - Replace $105,000 X 19 / 25 = $79, Gutters/Downspouts - Replace $9,000 X 19 / 25 = $6, Heat Tape - Replace $6,000 X 1 / 3 = $2, Chimney Covers & Flue Caps -Replace $8,000 X 19 / 25 = $6,080 Building Common Interior 2401 Interior Surfaces - Repaint $11,500 X 4 / 10 = $4, Stairwell Int. Surfaces - Repaint $4,500 X 13 / 15 = $3, Wallcoverings - Replace $17,000 X 4 / 10 = $6, Interior Lights - Replace $5,500 X 19 / 25 = $4, Carpet - Replace $30,500 X 4 / 10 = $12, Stairwell Carpet - Replace $5,500 X 13 / 15 = $4, Molding/Trim - Replace $23,500 X 19 / 30 = $14, Interior Doors - Replace $106,000 X 15 / 20 = $79, Interior Doors - Refinish $30,000 X 10 / 10 = $30, Furnishings and Décor - Update $6,000 X 4 / 10 = $2, Bathrooms - Remodel $6,000 X 10 / 15 = $4, Employee Lounge - Remodel $2,500 X 10 / 15 = $1, Laundry Rooms - Remodel $2,000 X 10 / 15 = $1,333 Mechanical 2503 Card/Fob Reader System - Replace $50,000 X 5 / 10 = $25, Door Software - Upgrade $4,000 X 1 / 2 = $2, Hydraulic Elevator - Modernize $170,000 X 19 / 25 = $129, Elevators - Cab Remodel $48,000 X 17 / 20 = $40, Air Handlers - Repair $10,000 X 1 / 17 = $ Computer/IT Equipment - Replace $5,500 X 7 / 12 = $3, Exit/Emergency Lights - Replace $6,500 X 19 / 25 = $4, Laundry Machines - Replace $2,000 X 1 / 13 = $ Circulation Pump - Replace $4,000 X 1 / 20 = $200 Association Reserves Colorado, LLC 13 8/11/2015

21 Table 3: Fully Funded Balance Current Fully Cost Effective Useful Funded # Component Estimate X Age / Life = Balance Unit Interior 2901 Interior Surfaces - Repaint $44,000 X 1 / 7 = $6, Unit Interiors - Refurbish $90,000 X 1 / 10 = $9, Wallpaper - Replace $58,000 X 7 / 10 = $40, Carpeting - Replace $205,000 X 1 / 7 = $29, Lamps - Replace $62,000 X 7 / 12 = $36, Lighting Fixtures - Replace $20,000 X 7 / 12 = $11, Swing Light - Replace $17,000 X 7 / 12 = $9, Ceiling Fans - Replace $20,000 X 1 / 25 = $ Artwork/Mirrors - Replace $30,000 X 1 / 10 = $3, Drapery - Replace $237,500 X 1 / 7 = $33, Valance - Replace $18,500 X 2 / 7 = $5, Wooden Blinds - Replace $52,000 X 1 / 10 = $5, Duvets - Replace $72,500 X 1 / 7 = $10, Linens - Replace $190,000 X 4 / 7 = $108, Bed Shams - Replace $29,500 X 1 / 7 = $4, Throws - Replace $6,000 X 1 / 7 = $ Bedskirts - Replace $35,000 X 1 / 7 = $5, Mattresses - Replace $58,000 X 1 / 10 = $5, Bed Frames - Replace $10,000 X 1 / 10 = $1, Headboard - Replace $32,000 X 1 / 10 = $3, Sleeper Sofas - Replace $27,500 X 1 / 10 = $2, Sofa - Replace $46,000 X 1 / 10 = $4, Bar Stools - Replace $26,000 X 1 / 10 = $2, Benches - Replace $13,500 X 1 / 10 = $1, Corner Unit Chairs - Replace $17,000 X 1 / 10 = $1, Dining Chairs - Replace $82,500 X 1 / 10 = $8, Hickory Chairs - Replace $13,000 X 1 / 10 = $1, Leather Chairs - Replace $45,000 X 1 / 10 = $4, Credenzas - Replace $30,000 X 1 / 10 = $3, Desk - Replace $950 X 1 / 10 = $ Adler Sideboard - Replace $41,000 X 1 / 10 = $4, Armoires - Replace $50,000 X 1 / 10 = $5, Wood Chest - Replace $15,000 X 1 / 10 = $1, Wood Dressers - Replace $26,500 X 1 / 10 = $2, Night Stands - Replace $41,000 X 1 / 10 = $4, Coffee Tables - Replace $28,000 X 1 / 10 = $2, Dining Tables - Replace $26,000 X 1 / 10 = $2, End Tables - Replace $20,500 X 1 / 10 = $2, Safes - Replace $13,500 X 1 / 15 = $ Baker Rack - Replace $12,500 X 1 / 10 = $1, Shower Curtains - Replace $9,000 X 1 / 7 = $1, Bathrooms - Refurbish (1st Floor) $800,000 X 4 / 20 = $160, Bathrooms - Refurbish (2-3 Floors) $1,600,000 X 5 / 20 = $400, Bathrooms - Refurbish (4th Floor) $230,000 X 6 / 20 = $69, Kitchen Counter/Cabs - Remodel $530,000 X 18 / 30 = $318, Kitchens - Remodel $126,000 X 5 / 8 = $78, Kitchen Appliances - Replace $261,500 X 8 / 10 = $209,200 Association Reserves Colorado, LLC 14 8/11/2015

22 Table 3: Fully Funded Balance Current Fully Cost Effective Useful Funded # Component Estimate X Age / Life = Balance 2949 Kitchen Sink - Replace $18,000 X 18 / 30 = $10, Unit Front Doors - Replace $104,000 X 15 / 20 = $78, Telephone Handsets - Replace $9,000 X 4 / 7 = $5, Flat Screen TVs - Replace $95,000 X 1 / 6 = $15, TV Wall Mount - Replace $25,000 X 1 / 6 = $4, Baseboard Covers - Replace $25,000 X 1 / 10 = $2, Laundry Machines - Replace $33,000 X 1 / 13 = $2, Balcony Furniture - Replace $34,000 X 1 / 20 = $1, Decoration Package - Replace $43,000 X 1 / 7 = $6, Interior Units - Refurbish $90,000 X 1 / 10 = $9, Smoke Detectors - Replace $16,000 X 1 / 17 = $ Fireplaces - Replace $50,000 X 25 / 25 = $50,000 $2,440,005 Association Reserves Colorado, LLC 15 8/11/2015

23 Table 4: Component Significance Current Useful Cost Deterioration Deterioration # Component Life Estimate Cost/yr Significance Building Exterior 2303 Exterior Wall Lights - Replace 25 $2,000 $80 0.0% 2311 Paver Balcony Decks - Replace 30 $10,000 $ % 2315 Wood Balcony Decks - Seal/Repair 3 $9,000 $3, % 2317 Wood Balcony Decks - Resurface 30 $30,000 $1, % 2319 Balcony Rails - Repaint 3 $15,000 $5, % 2321 Balcony Rails - Replace 30 $68,000 $2, % 2323 Patio Deck - Clean/Seal/Repair 5 $1,500 $ % 2325 Patio Deck - Replace Coating 25 $4,000 $ % 2341 Building Exterior - Seal/Paint 8 $16,500 $2, % 2343 Stucco Exterior - Seal/Paint 8 $30,000 $3, % 2359 Stone Veneer - Repair 20 $50,000 $2, % 2363 Windows/Sliders - Replace/Repair 1 $15,000 $15, % 2369 Balcony Door Glass - Replace 10 $11,000 $1, % 2381 Tile Roof Underlayment - Replace 25 $105,000 $4, % 2387 Gutters/Downspouts - Replace 25 $9,000 $ % 2393 Heat Tape - Replace 3 $6,000 $2, % 2397 Chimney Covers & Flue Caps -Replace 25 $8,000 $ % Building Common Interior 2401 Interior Surfaces - Repaint 10 $11,500 $1, % 2402 Stairwell Int. Surfaces - Repaint 15 $4,500 $ % 2403 Wallcoverings - Replace 10 $17,000 $1, % 2405 Interior Lights - Replace 25 $5,500 $ % 2411 Carpet - Replace 10 $30,500 $3, % 2411 Stairwell Carpet - Replace 15 $5,500 $ % 2413 Molding/Trim - Replace 30 $23,500 $ % 2425 Interior Doors - Replace 20 $106,000 $5, % 2427 Interior Doors - Refinish 10 $30,000 $3, % 2429 Furnishings and Décor - Update 10 $6,000 $ % 2431 Bathrooms - Remodel 15 $6,000 $ % 2433 Employee Lounge - Remodel 15 $2,500 $ % 2483 Laundry Rooms - Remodel 15 $2,000 $ % Mechanical 2503 Card/Fob Reader System - Replace 10 $50,000 $5, % 2505 Door Software - Upgrade 2 $4,000 $2, % 2513 Hydraulic Elevator - Modernize 25 $170,000 $6, % 2517 Elevators - Cab Remodel 20 $48,000 $2, % 2525 Air Handlers - Repair 17 $10,000 $ % 2545 Computer/IT Equipment - Replace 12 $5,500 $ % 2563 Exit/Emergency Lights - Replace 25 $6,500 $ % 2583 Laundry Machines - Replace 13 $2,000 $ % 2592 Circulation Pump - Replace 20 $4,000 $ % Association Reserves Colorado, LLC 16 8/11/2015

24 Table 4: Component Significance Current Useful Cost Deterioration Deterioration # Component Life Estimate Cost/yr Significance Unit Interior 2901 Interior Surfaces - Repaint 7 $44,000 $6, % 2902 Unit Interiors - Refurbish 10 $90,000 $9, % 2903 Wallpaper - Replace 10 $58,000 $5, % 2911 Carpeting - Replace 7 $205,000 $29, % 2919 Lamps - Replace 12 $62,000 $5, % 2920 Lighting Fixtures - Replace 12 $20,000 $1, % 2921 Swing Light - Replace 12 $17,000 $1, % 2922 Ceiling Fans - Replace 25 $20,000 $ % 2925 Artwork/Mirrors - Replace 10 $30,000 $3, % 2927 Drapery - Replace 7 $237,500 $33, % 2927 Valance - Replace 7 $18,500 $2, % 2927 Wooden Blinds - Replace 10 $52,000 $5, % 2928 Duvets - Replace 7 $72,500 $10, % 2928 Linens - Replace 7 $190,000 $27, % 2929 Bed Shams - Replace 7 $29,500 $4, % 2929 Throws - Replace 7 $6,000 $ % 2930 Bedskirts - Replace 7 $35,000 $5, % 2931 Mattresses - Replace 10 $58,000 $5, % 2932 Bed Frames - Replace 10 $10,000 $1, % 2932 Headboard - Replace 10 $32,000 $3, % 2934 Sleeper Sofas - Replace 10 $27,500 $2, % 2934 Sofa - Replace 10 $46,000 $4, % 2935 Bar Stools - Replace 10 $26,000 $2, % 2935 Benches - Replace 10 $13,500 $1, % 2935 Corner Unit Chairs - Replace 10 $17,000 $1, % 2935 Dining Chairs - Replace 10 $82,500 $8, % 2935 Hickory Chairs - Replace 10 $13,000 $1, % 2935 Leather Chairs - Replace 10 $45,000 $4, % 2936 Credenzas - Replace 10 $30,000 $3, % 2936 Desk - Replace 10 $950 $95 0.0% 2937 Adler Sideboard - Replace 10 $41,000 $4, % 2937 Armoires - Replace 10 $50,000 $5, % 2937 Wood Chest - Replace 10 $15,000 $1, % 2937 Wood Dressers - Replace 10 $26,500 $2, % 2938 Night Stands - Replace 10 $41,000 $4, % 2939 Coffee Tables - Replace 10 $28,000 $2, % 2939 Dining Tables - Replace 10 $26,000 $2, % 2939 End Tables - Replace 10 $20,500 $2, % 2940 Safes - Replace 15 $13,500 $ % 2941 Baker Rack - Replace 10 $12,500 $1, % 2944 Shower Curtains - Replace 7 $9,000 $1, % 2945 Bathrooms - Refurbish (1st Floor) 20 $800,000 $40, % 2945 Bathrooms - Refurbish (2-3 Floors) 20 $1,600,000 $80, % 2945 Bathrooms - Refurbish (4th Floor) 20 $230,000 $11, % 2947 Kitchen Counter/Cabs - Remodel 30 $530,000 $17, % 2947 Kitchens - Remodel 8 $126,000 $15, % 2949 Kitchen Appliances - Replace 10 $261,500 $26, % Association Reserves Colorado, LLC 17 8/11/2015

25 Table 4: Component Significance Current Useful Cost Deterioration Deterioration # Component Life Estimate Cost/yr Significance 2949 Kitchen Sink - Replace 30 $18,000 $ % 2951 Unit Front Doors - Replace 20 $104,000 $5, % 2953 Telephone Handsets - Replace 7 $9,000 $1, % 2955 Flat Screen TVs - Replace 6 $95,000 $15, % 2956 TV Wall Mount - Replace 6 $25,000 $4, % 2957 Baseboard Covers - Replace 10 $25,000 $2, % 2963 Laundry Machines - Replace 13 $33,000 $2, % 2967 Balcony Furniture - Replace 20 $34,000 $1, % 2970 Decoration Package - Replace 7 $43,000 $6, % 2970 Interior Units - Refurbish 10 $90,000 $9, % 2975 Smoke Detectors - Replace 17 $16,000 $ % 2979 Fireplaces - Replace 25 $50,000 $2, % 98 Total Funded Components $541, % Association Reserves Colorado, LLC 18 8/11/2015

26 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 $324,357 $2,440, % High $672,000 $0 $6,137 $99, $903,494 $2,969, % Med $692,160 $0 $12,331 $44, $1,563,694 $3,587, % Med $712,925 $0 $17,731 $310, $1,984,037 $3,966, % Med $734,313 $0 $20,876 $546, $2,192,862 $4,132, % Med $756,342 $0 $25,608 $43, $2,930,917 $4,839, % Med $779,032 $0 $30,148 $638, $3,101,337 $4,973, % Med $802,403 $0 $28,784 $1,274, $2,657,874 $4,475, % Med $826,475 $0 $30,299 $110, $3,404,574 $5,182, % Med $851,269 $0 $38,345 $26, $4,267,586 $6,017, % Low $876,808 $0 $40,932 $1,262, $3,922,371 $5,624, % Med $903,112 $0 $42,121 $362, $4,505,418 $6,170, % Low $930,205 $0 $47,135 $557, $4,925,605 $6,553, % Low $958,111 $0 $48,007 $1,251, $4,679,905 $6,256, % Low $986,855 $0 $46,199 $1,149, $4,563,831 $6,079, % Low $1,016,460 $0 $48,944 $400, $5,229,155 $6,693, % Low $1,046,954 $0 $44,268 $2,692, $3,628,210 $4,990, % Low $1,078,363 $0 $34,369 $1,492, $3,248,565 $4,498, % Low $1,110,714 $0 $34,407 $757, $3,635,855 $4,774, % Low $1,144,035 $0 $42,144 $25, $4,796,498 $5,841, % Low $1,178,356 $0 $43,760 $2,059, $3,959,209 $4,873, % Low $1,213,707 $0 $39,116 $1,344, $3,867,382 $4,642, % Low $1,250,118 $0 $44,953 $35, $5,127,107 $5,782, % Low $1,287,621 $0 $55,082 $575, $5,894,022 $6,431, % Low $1,326,250 $0 $62,428 $685, $6,596,879 $7,019, % Low $1,366,038 $0 $70,744 $475, $7,557,987 $7,874, % Low $1,407,019 $0 $78,741 $846, $8,196,813 $8,405, % Low $1,449,229 $0 $88,492 $225, $9,509,171 $9,628, % Low $1,492,706 $0 $93,805 $1,835, $9,259,787 $9,265, % Low $1,537,487 $0 $100,298 $89, $10,808,34 3 $10,728, % Low $1,583,612 $0 $102,189 $2,856,040 Association Reserves Colorado, LLC 19 8/11/2015

27 Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) Fiscal Year Starting Reserve Balance $324,357 $903,494 $1,563,694 $1,984,037 $2,192,862 Annual Reserve Contribution $672,000 $692,160 $712,925 $734,313 $756,342 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $6,137 $12,331 $17,731 $20,876 $25,608 Total Income $1,002,494 $1,607,984 $2,294,350 $2,739,225 $2,974,812 # Component Building Exterior 2303 Exterior Wall Lights - Replace $0 $0 $0 $0 $ Paver Balcony Decks - Replace $0 $0 $0 $0 $ Wood Balcony Decks - Seal/Repair $0 $9,270 $0 $0 $10, Wood Balcony Decks - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $0 $15,450 $0 $0 $16, Balcony Rails - Replace $0 $0 $0 $0 $ Patio Deck - Clean/Seal/Repair $0 $0 $0 $0 $ Patio Deck - Replace Coating $4,000 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $0 $ Stucco Exterior - Seal/Paint $0 $0 $0 $0 $ Stone Veneer - Repair $0 $0 $0 $54,636 $ Windows/Sliders - Replace/Repair $15,000 $15,450 $15,914 $16,391 $16, Balcony Door Glass - Replace $0 $0 $0 $0 $ Tile Roof Underlayment - Replace $0 $0 $0 $0 $ Gutters/Downspouts - Replace $0 $0 $0 $0 $ Heat Tape - Replace $0 $0 $6,365 $0 $ Chimney Covers & Flue Caps -Replace $0 $0 $0 $0 $0 Building Common Interior 2401 Interior Surfaces - Repaint $0 $0 $0 $0 $ Stairwell Int. Surfaces - Repaint $0 $0 $4,774 $0 $ Wallcoverings - Replace $0 $0 $0 $0 $ Interior Lights - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $0 $0 $0 $ Stairwell Carpet - Replace $0 $0 $5,835 $0 $ Molding/Trim - Replace $0 $0 $0 $0 $ Interior Doors - Replace $0 $0 $0 $0 $ Interior Doors - Refinish $30,000 $0 $0 $0 $ Furnishings and Décor - Update $0 $0 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Employee Lounge - Remodel $0 $0 $0 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Mechanical 2503 Card/Fob Reader System - Replace $0 $0 $0 $0 $ Door Software - Upgrade $0 $4,120 $0 $4,371 $ Hydraulic Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $52,451 $ Air Handlers - Repair $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 20 8/11/2015

28 Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) Fiscal Year Computer/IT Equipment - Replace $0 $0 $0 $0 $ Exit/Emergency Lights - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $0 $0 $0 $0 $ Circulation Pump - Replace $0 $0 $0 $0 $0 Unit Interior 2901 Interior Surfaces - Repaint $0 $0 $0 $0 $ Unit Interiors - Refurbish $0 $0 $0 $0 $ Wallpaper - Replace $0 $0 $0 $63,378 $ Carpeting - Replace $0 $0 $0 $0 $ Lamps - Replace $0 $0 $0 $0 $ Lighting Fixtures - Replace $0 $0 $0 $0 $ Swing Light - Replace $0 $0 $0 $0 $ Ceiling Fans - Replace $0 $0 $0 $0 $ Artwork/Mirrors - Replace $0 $0 $0 $0 $ Drapery - Replace $0 $0 $0 $0 $ Valance - Replace $0 $0 $0 $0 $ Wooden Blinds - Replace $0 $0 $0 $0 $ Duvets - Replace $0 $0 $0 $0 $ Linens - Replace $0 $0 $0 $207,618 $ Bed Shams - Replace $0 $0 $0 $0 $ Throws - Replace $0 $0 $0 $0 $ Bedskirts - Replace $0 $0 $0 $0 $ Mattresses - Replace $0 $0 $0 $0 $ Bed Frames - Replace $0 $0 $0 $0 $ Headboard - Replace $0 $0 $0 $0 $ Sleeper Sofas - Replace $0 $0 $0 $0 $ Sofa - Replace $0 $0 $0 $0 $ Bar Stools - Replace $0 $0 $0 $0 $ Benches - Replace $0 $0 $0 $0 $ Corner Unit Chairs - Replace $0 $0 $0 $0 $ Dining Chairs - Replace $0 $0 $0 $0 $ Hickory Chairs - Replace $0 $0 $0 $0 $ Leather Chairs - Replace $0 $0 $0 $0 $ Credenzas - Replace $0 $0 $0 $0 $ Desk - Replace $0 $0 $0 $0 $ Adler Sideboard - Replace $0 $0 $0 $0 $ Armoires - Replace $0 $0 $0 $0 $ Wood Chest - Replace $0 $0 $0 $0 $ Wood Dressers - Replace $0 $0 $0 $0 $ Night Stands - Replace $0 $0 $0 $0 $ Coffee Tables - Replace $0 $0 $0 $0 $ Dining Tables - Replace $0 $0 $0 $0 $ End Tables - Replace $0 $0 $0 $0 $ Safes - Replace $0 $0 $0 $0 $ Baker Rack - Replace $0 $0 $0 $0 $ Shower Curtains - Replace $0 $0 $0 $0 $ Bathrooms - Refurbish (1st Floor) $0 $0 $0 $0 $ Bathrooms - Refurbish (2-3 Floors) $0 $0 $0 $0 $ Bathrooms - Refurbish (4th Floor) $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 21 8/11/2015

29 Table 6: 30-Year Income/Expense Detail (yrs 0 through 4) Fiscal Year Kitchen Counter/Cabs - Remodel $0 $0 $0 $0 $ Kitchens - Remodel $0 $0 $0 $137,684 $ Kitchen Appliances - Replace $0 $0 $277,425 $0 $ Kitchen Sink - Replace $0 $0 $0 $0 $ Unit Front Doors - Replace $0 $0 $0 $0 $ Telephone Handsets - Replace $0 $0 $0 $9,835 $ Flat Screen TVs - Replace $0 $0 $0 $0 $ TV Wall Mount - Replace $0 $0 $0 $0 $ Baseboard Covers - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $0 $0 $0 $0 $ Balcony Furniture - Replace $0 $0 $0 $0 $ Decoration Package - Replace $0 $0 $0 $0 $ Interior Units - Refurbish $0 $0 $0 $0 $ Smoke Detectors - Replace $0 $0 $0 $0 $ Fireplaces - Replace $50,000 $0 $0 $0 $0 Total Expenses $99,000 $44,290 $310,313 $546,364 $43,895 Ending Reserve Balance: $903,494 $1,563,694 $1,984,037 $2,192,862 $2,930,917 Association Reserves Colorado, LLC 22 8/11/2015

30 Table 6: 30-Year Income/Expense Detail (yrs 5 through 9) Fiscal Year Starting Reserve Balance $2,930,917 $3,101,337 $2,657,874 $3,404,574 $4,267,586 Annual Reserve Contribution $779,032 $802,403 $826,475 $851,269 $876,808 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $30,148 $28,784 $30,299 $38,345 $40,932 Total Income $3,740,097 $3,932,524 $3,514,648 $4,294,188 $5,185,326 # Component Building Exterior 2303 Exterior Wall Lights - Replace $0 $2,388 $0 $0 $ Paver Balcony Decks - Replace $0 $0 $0 $0 $ Wood Balcony Decks - Seal/Repair $0 $0 $11,069 $0 $ Wood Balcony Decks - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $0 $0 $18,448 $0 $ Balcony Rails - Replace $0 $0 $0 $0 $ Patio Deck - Clean/Seal/Repair $1,739 $0 $0 $0 $ Patio Deck - Replace Coating $0 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $20,293 $0 $ Stucco Exterior - Seal/Paint $0 $0 $36,896 $0 $ Stone Veneer - Repair $0 $0 $0 $0 $ Windows/Sliders - Replace/Repair $17,389 $17,911 $18,448 $19,002 $19, Balcony Door Glass - Replace $12,752 $0 $0 $0 $ Tile Roof Underlayment - Replace $0 $125,375 $0 $0 $ Gutters/Downspouts - Replace $0 $10,746 $0 $0 $ Heat Tape - Replace $6,956 $0 $0 $7,601 $ Chimney Covers & Flue Caps -Replace $0 $9,552 $0 $0 $0 Building Common Interior 2401 Interior Surfaces - Repaint $0 $13,732 $0 $0 $ Stairwell Int. Surfaces - Repaint $0 $0 $0 $0 $ Wallcoverings - Replace $0 $20,299 $0 $0 $ Interior Lights - Replace $0 $6,567 $0 $0 $ Carpet - Replace $0 $36,419 $0 $0 $ Stairwell Carpet - Replace $0 $0 $0 $0 $ Molding/Trim - Replace $0 $0 $0 $0 $ Interior Doors - Replace $122,883 $0 $0 $0 $ Interior Doors - Refinish $0 $0 $0 $0 $ Furnishings and Décor - Update $0 $7,164 $0 $0 $ Bathrooms - Remodel $6,956 $0 $0 $0 $ Employee Lounge - Remodel $2,898 $0 $0 $0 $ Laundry Rooms - Remodel $2,319 $0 $0 $0 $0 Mechanical 2503 Card/Fob Reader System - Replace $57,964 $0 $0 $0 $ Door Software - Upgrade $4,637 $0 $4,919 $0 $5, Hydraulic Elevator - Modernize $0 $202,989 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $0 $ Air Handlers - Repair $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 23 8/11/2015

31 Table 6: 30-Year Income/Expense Detail (yrs 5 through 9) Fiscal Year Computer/IT Equipment - Replace $6,376 $0 $0 $0 $ Exit/Emergency Lights - Replace $0 $7,761 $0 $0 $ Laundry Machines - Replace $0 $0 $0 $0 $ Circulation Pump - Replace $0 $0 $0 $0 $0 Unit Interior 2901 Interior Surfaces - Repaint $0 $52,538 $0 $0 $ Unit Interiors - Refurbish $0 $0 $0 $0 $117, Wallpaper - Replace $0 $0 $0 $0 $ Carpeting - Replace $0 $244,781 $0 $0 $ Lamps - Replace $71,875 $0 $0 $0 $ Lighting Fixtures - Replace $23,185 $0 $0 $0 $ Swing Light - Replace $19,708 $0 $0 $0 $ Ceiling Fans - Replace $0 $0 $0 $0 $ Artwork/Mirrors - Replace $0 $0 $0 $0 $39, Drapery - Replace $0 $283,587 $0 $0 $ Valance - Replace $21,447 $0 $0 $0 $ Wooden Blinds - Replace $0 $0 $0 $0 $67, Duvets - Replace $0 $86,569 $0 $0 $ Linens - Replace $0 $0 $0 $0 $ Bed Shams - Replace $0 $35,225 $0 $0 $ Throws - Replace $0 $7,164 $0 $0 $ Bedskirts - Replace $0 $41,792 $0 $0 $ Mattresses - Replace $0 $0 $0 $0 $75, Bed Frames - Replace $0 $0 $0 $0 $13, Headboard - Replace $0 $0 $0 $0 $41, Sleeper Sofas - Replace $0 $0 $0 $0 $35, Sofa - Replace $0 $0 $0 $0 $60, Bar Stools - Replace $0 $0 $0 $0 $33, Benches - Replace $0 $0 $0 $0 $17, Corner Unit Chairs - Replace $0 $0 $0 $0 $22, Dining Chairs - Replace $0 $0 $0 $0 $107, Hickory Chairs - Replace $0 $0 $0 $0 $16, Leather Chairs - Replace $0 $0 $0 $0 $58, Credenzas - Replace $0 $0 $0 $0 $39, Desk - Replace $0 $0 $0 $0 $1, Adler Sideboard - Replace $0 $0 $0 $0 $53, Armoires - Replace $0 $0 $0 $0 $65, Wood Chest - Replace $0 $0 $0 $0 $19, Wood Dressers - Replace $0 $0 $0 $0 $34, Night Stands - Replace $0 $0 $0 $0 $53, Coffee Tables - Replace $0 $0 $0 $0 $36, Dining Tables - Replace $0 $0 $0 $0 $33, End Tables - Replace $0 $0 $0 $0 $26, Safes - Replace $0 $0 $0 $0 $ Baker Rack - Replace $0 $0 $0 $0 $16, Shower Curtains - Replace $0 $10,746 $0 $0 $ Bathrooms - Refurbish (1st Floor) $0 $0 $0 $0 $ Bathrooms - Refurbish (2-3 Floors) $0 $0 $0 $0 $ Bathrooms - Refurbish (4th Floor) $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 24 8/11/2015

32 Table 6: 30-Year Income/Expense Detail (yrs 5 through 9) Fiscal Year Kitchen Counter/Cabs - Remodel $0 $0 $0 $0 $ Kitchens - Remodel $0 $0 $0 $0 $ Kitchen Appliances - Replace $0 $0 $0 $0 $ Kitchen Sink - Replace $0 $0 $0 $0 $ Unit Front Doors - Replace $120,565 $0 $0 $0 $ Telephone Handsets - Replace $0 $0 $0 $0 $ Flat Screen TVs - Replace $110,131 $0 $0 $0 $ TV Wall Mount - Replace $28,982 $0 $0 $0 $ Baseboard Covers - Replace $0 $0 $0 $0 $32, Laundry Machines - Replace $0 $0 $0 $0 $ Balcony Furniture - Replace $0 $0 $0 $0 $ Decoration Package - Replace $0 $51,344 $0 $0 $ Interior Units - Refurbish $0 $0 $0 $0 $117, Smoke Detectors - Replace $0 $0 $0 $0 $ Fireplaces - Replace $0 $0 $0 $0 $0 Total Expenses $638,760 $1,274,651 $110,074 $26,602 $1,262,955 Ending Reserve Balance: $3,101,337 $2,657,874 $3,404,574 $4,267,586 $3,922,371 Association Reserves Colorado, LLC 25 8/11/2015

33 Table 6: 30-Year Income/Expense Detail (yrs 10 through 14) Fiscal Year Starting Reserve Balance $3,922,371 $4,505,418 $4,925,605 $4,679,905 $4,563,831 Annual Reserve Contribution $903,112 $930,205 $958,111 $986,855 $1,016,460 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $42,121 $47,135 $48,007 $46,199 $48,944 Total Income $4,867,604 $5,482,759 $5,931,723 $5,712,959 $5,629,235 # Component Building Exterior 2303 Exterior Wall Lights - Replace $0 $0 $0 $0 $ Paver Balcony Decks - Replace $0 $13,842 $0 $0 $ Wood Balcony Decks - Seal/Repair $12,095 $0 $0 $13,217 $ Wood Balcony Decks - Resurface $0 $41,527 $0 $0 $ Balcony Rails - Repaint $20,159 $0 $0 $22,028 $ Balcony Rails - Replace $0 $94,128 $0 $0 $ Patio Deck - Clean/Seal/Repair $2,016 $0 $0 $0 $ Patio Deck - Replace Coating $0 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $0 $ Stucco Exterior - Seal/Paint $0 $0 $0 $0 $ Stone Veneer - Repair $0 $0 $0 $0 $ Windows/Sliders - Replace/Repair $20,159 $20,764 $21,386 $22,028 $22, Balcony Door Glass - Replace $0 $0 $0 $0 $ Tile Roof Underlayment - Replace $0 $0 $0 $0 $ Gutters/Downspouts - Replace $0 $0 $0 $0 $ Heat Tape - Replace $0 $8,305 $0 $0 $9, Chimney Covers & Flue Caps -Replace $0 $0 $0 $0 $0 Building Common Interior 2401 Interior Surfaces - Repaint $0 $0 $0 $0 $ Stairwell Int. Surfaces - Repaint $0 $0 $0 $0 $ Wallcoverings - Replace $0 $0 $0 $0 $ Interior Lights - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $0 $0 $0 $ Stairwell Carpet - Replace $0 $0 $0 $0 $ Molding/Trim - Replace $0 $32,529 $0 $0 $ Interior Doors - Replace $0 $0 $0 $0 $ Interior Doors - Refinish $40,317 $0 $0 $0 $ Furnishings and Décor - Update $0 $0 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Employee Lounge - Remodel $0 $0 $0 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Mechanical 2503 Card/Fob Reader System - Replace $0 $0 $0 $0 $ Door Software - Upgrade $0 $5,537 $0 $5,874 $ Hydraulic Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $0 $ Air Handlers - Repair $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 26 8/11/2015

34 Table 6: 30-Year Income/Expense Detail (yrs 10 through 14) Fiscal Year Computer/IT Equipment - Replace $0 $0 $0 $0 $ Exit/Emergency Lights - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $0 $0 $2,852 $0 $ Circulation Pump - Replace $0 $0 $0 $0 $0 Unit Interior 2901 Interior Surfaces - Repaint $0 $0 $0 $64,615 $ Unit Interiors - Refurbish $0 $0 $0 $0 $ Wallpaper - Replace $0 $0 $0 $85,175 $ Carpeting - Replace $0 $0 $0 $301,049 $ Lamps - Replace $0 $0 $0 $0 $ Lighting Fixtures - Replace $0 $0 $0 $0 $ Swing Light - Replace $0 $0 $0 $0 $ Ceiling Fans - Replace $0 $0 $0 $0 $ Artwork/Mirrors - Replace $0 $0 $0 $0 $ Drapery - Replace $0 $0 $0 $348,777 $ Valance - Replace $0 $0 $26,377 $0 $ Wooden Blinds - Replace $0 $0 $0 $0 $ Duvets - Replace $0 $0 $0 $106,469 $ Linens - Replace $255,344 $0 $0 $0 $ Bed Shams - Replace $0 $0 $0 $43,322 $ Throws - Replace $0 $0 $0 $8,811 $ Bedskirts - Replace $0 $0 $0 $51,399 $ Mattresses - Replace $0 $0 $0 $0 $ Bed Frames - Replace $0 $0 $0 $0 $ Headboard - Replace $0 $0 $0 $0 $ Sleeper Sofas - Replace $0 $0 $0 $0 $ Sofa - Replace $0 $0 $0 $0 $ Bar Stools - Replace $0 $0 $0 $0 $ Benches - Replace $0 $0 $0 $0 $ Corner Unit Chairs - Replace $0 $0 $0 $0 $ Dining Chairs - Replace $0 $0 $0 $0 $ Hickory Chairs - Replace $0 $0 $0 $0 $ Leather Chairs - Replace $0 $0 $0 $0 $ Credenzas - Replace $0 $0 $0 $0 $ Desk - Replace $0 $0 $0 $0 $ Adler Sideboard - Replace $0 $0 $0 $0 $ Armoires - Replace $0 $0 $0 $0 $ Wood Chest - Replace $0 $0 $0 $0 $ Wood Dressers - Replace $0 $0 $0 $0 $ Night Stands - Replace $0 $0 $0 $0 $ Coffee Tables - Replace $0 $0 $0 $0 $ Dining Tables - Replace $0 $0 $0 $0 $ End Tables - Replace $0 $0 $0 $0 $ Safes - Replace $0 $0 $0 $0 $20, Baker Rack - Replace $0 $0 $0 $0 $ Shower Curtains - Replace $0 $0 $0 $13,217 $ Bathrooms - Refurbish (1st Floor) $0 $0 $0 $0 $ Bathrooms - Refurbish (2-3 Floors) $0 $0 $0 $0 $ Bathrooms - Refurbish (4th Floor) $0 $0 $0 $0 $347,896 Association Reserves Colorado, LLC 27 8/11/2015

35 Table 6: 30-Year Income/Expense Detail (yrs 10 through 14) Fiscal Year Kitchen Counter/Cabs - Remodel $0 $0 $755,653 $0 $ Kitchens - Remodel $0 $174,413 $0 $0 $ Kitchen Appliances - Replace $0 $0 $372,836 $0 $ Kitchen Sink - Replace $0 $0 $25,664 $0 $ Unit Front Doors - Replace $0 $0 $0 $0 $ Telephone Handsets - Replace $12,095 $0 $0 $0 $ Flat Screen TVs - Replace $0 $131,502 $0 $0 $ TV Wall Mount - Replace $0 $34,606 $0 $0 $ Baseboard Covers - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $0 $0 $47,050 $0 $ Balcony Furniture - Replace $0 $0 $0 $0 $ Decoration Package - Replace $0 $0 $0 $63,147 $ Interior Units - Refurbish $0 $0 $0 $0 $ Smoke Detectors - Replace $0 $0 $0 $0 $ Fireplaces - Replace $0 $0 $0 $0 $0 Total Expenses $362,185 $557,154 $1,251,818 $1,149,128 $400,080 Ending Reserve Balance: $4,505,418 $4,925,605 $4,679,905 $4,563,831 $5,229,155 Association Reserves Colorado, LLC 28 8/11/2015

36 Table 6: 30-Year Income/Expense Detail (yrs 15 through 19) Fiscal Year Starting Reserve Balance $5,229,155 $3,628,210 $3,248,565 $3,635,855 $4,796,498 Annual Reserve Contribution $1,046,954 $1,078,363 $1,110,714 $1,144,035 $1,178,356 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $44,268 $34,369 $34,407 $42,144 $43,760 Total Income $6,320,378 $4,740,942 $4,393,686 $4,822,034 $6,018,614 # Component Building Exterior 2303 Exterior Wall Lights - Replace $0 $0 $0 $0 $ Paver Balcony Decks - Replace $0 $0 $0 $0 $ Wood Balcony Decks - Seal/Repair $0 $14,442 $0 $0 $15, Wood Balcony Decks - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $0 $24,071 $0 $0 $26, Balcony Rails - Replace $0 $0 $0 $0 $ Patio Deck - Clean/Seal/Repair $2,337 $0 $0 $0 $ Patio Deck - Replace Coating $0 $0 $0 $0 $ Building Exterior - Seal/Paint $25,706 $0 $0 $0 $ Stucco Exterior - Seal/Paint $46,739 $0 $0 $0 $ Stone Veneer - Repair $0 $0 $0 $0 $ Windows/Sliders - Replace/Repair $23,370 $24,071 $24,793 $25,536 $26, Balcony Door Glass - Replace $17,138 $0 $0 $0 $ Tile Roof Underlayment - Replace $0 $0 $0 $0 $ Gutters/Downspouts - Replace $0 $0 $0 $0 $ Heat Tape - Replace $0 $0 $9,917 $0 $ Chimney Covers & Flue Caps -Replace $0 $0 $0 $0 $0 Building Common Interior 2401 Interior Surfaces - Repaint $0 $18,454 $0 $0 $ Stairwell Int. Surfaces - Repaint $0 $0 $7,438 $0 $ Wallcoverings - Replace $0 $27,280 $0 $0 $ Interior Lights - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $48,944 $0 $0 $ Stairwell Carpet - Replace $0 $0 $9,091 $0 $ Molding/Trim - Replace $0 $0 $0 $0 $ Interior Doors - Replace $0 $0 $0 $0 $ Interior Doors - Refinish $0 $0 $0 $0 $ Furnishings and Décor - Update $0 $9,628 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Employee Lounge - Remodel $0 $0 $0 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Mechanical 2503 Card/Fob Reader System - Replace $77,898 $0 $0 $0 $ Door Software - Upgrade $6,232 $0 $6,611 $0 $7, Hydraulic Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $0 $ Air Handlers - Repair $0 $16,047 $0 $0 $0 Association Reserves Colorado, LLC 29 8/11/2015

37 Table 6: 30-Year Income/Expense Detail (yrs 15 through 19) Fiscal Year Computer/IT Equipment - Replace $0 $0 $9,091 $0 $ Exit/Emergency Lights - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $0 $0 $0 $0 $ Circulation Pump - Replace $0 $0 $0 $0 $7,014 Unit Interior 2901 Interior Surfaces - Repaint $0 $0 $0 $0 $ Unit Interiors - Refurbish $0 $0 $0 $0 $157, Wallpaper - Replace $0 $0 $0 $0 $ Carpeting - Replace $0 $0 $0 $0 $ Lamps - Replace $0 $0 $102,477 $0 $ Lighting Fixtures - Replace $0 $0 $33,057 $0 $ Swing Light - Replace $0 $0 $28,098 $0 $ Ceiling Fans - Replace $0 $0 $0 $0 $ Artwork/Mirrors - Replace $0 $0 $0 $0 $52, Drapery - Replace $0 $0 $0 $0 $ Valance - Replace $0 $0 $0 $0 $32, Wooden Blinds - Replace $0 $0 $0 $0 $91, Duvets - Replace $0 $0 $0 $0 $ Linens - Replace $0 $0 $314,041 $0 $ Bed Shams - Replace $0 $0 $0 $0 $ Throws - Replace $0 $0 $0 $0 $ Bedskirts - Replace $0 $0 $0 $0 $ Mattresses - Replace $0 $0 $0 $0 $101, Bed Frames - Replace $0 $0 $0 $0 $17, Headboard - Replace $0 $0 $0 $0 $56, Sleeper Sofas - Replace $0 $0 $0 $0 $48, Sofa - Replace $0 $0 $0 $0 $80, Bar Stools - Replace $0 $0 $0 $0 $45, Benches - Replace $0 $0 $0 $0 $23, Corner Unit Chairs - Replace $0 $0 $0 $0 $29, Dining Chairs - Replace $0 $0 $0 $0 $144, Hickory Chairs - Replace $0 $0 $0 $0 $22, Leather Chairs - Replace $0 $0 $0 $0 $78, Credenzas - Replace $0 $0 $0 $0 $52, Desk - Replace $0 $0 $0 $0 $1, Adler Sideboard - Replace $0 $0 $0 $0 $71, Armoires - Replace $0 $0 $0 $0 $87, Wood Chest - Replace $0 $0 $0 $0 $26, Wood Dressers - Replace $0 $0 $0 $0 $46, Night Stands - Replace $0 $0 $0 $0 $71, Coffee Tables - Replace $0 $0 $0 $0 $49, Dining Tables - Replace $0 $0 $0 $0 $45, End Tables - Replace $0 $0 $0 $0 $35, Safes - Replace $0 $0 $0 $0 $ Baker Rack - Replace $0 $0 $0 $0 $21, Shower Curtains - Replace $0 $0 $0 $0 $ Bathrooms - Refurbish (1st Floor) $0 $1,283,765 $0 $0 $ Bathrooms - Refurbish (2-3 Floors) $2,492,748 $0 $0 $0 $ Bathrooms - Refurbish (4th Floor) $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 30 8/11/2015

38 Table 6: 30-Year Income/Expense Detail (yrs 15 through 19) Fiscal Year Kitchen Counter/Cabs - Remodel $0 $0 $0 $0 $ Kitchens - Remodel $0 $0 $0 $0 $220, Kitchen Appliances - Replace $0 $0 $0 $0 $ Kitchen Sink - Replace $0 $0 $0 $0 $ Unit Front Doors - Replace $0 $0 $0 $0 $ Telephone Handsets - Replace $0 $0 $14,876 $0 $ Flat Screen TVs - Replace $0 $0 $157,021 $0 $ TV Wall Mount - Replace $0 $0 $41,321 $0 $ Baseboard Covers - Replace $0 $0 $0 $0 $43, Laundry Machines - Replace $0 $0 $0 $0 $ Balcony Furniture - Replace $0 $0 $0 $0 $59, Decoration Package - Replace $0 $0 $0 $0 $ Interior Units - Refurbish $0 $0 $0 $0 $157, Smoke Detectors - Replace $0 $25,675 $0 $0 $ Fireplaces - Replace $0 $0 $0 $0 $0 Total Expenses $2,692,168 $1,492,377 $757,831 $25,536 $2,059,405 Ending Reserve Balance: $3,628,210 $3,248,565 $3,635,855 $4,796,498 $3,959,209 Association Reserves Colorado, LLC 31 8/11/2015

39 Table 6: 30-Year Income/Expense Detail (yrs 20 through 24) Fiscal Year Starting Reserve Balance $3,959,209 $3,867,382 $5,127,107 $5,894,022 $6,596,879 Annual Reserve Contribution $1,213,707 $1,250,118 $1,287,621 $1,326,250 $1,366,038 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $39,116 $44,953 $55,082 $62,428 $70,744 Total Income $5,212,032 $5,162,453 $6,469,811 $7,282,700 $8,033,661 # Component Building Exterior 2303 Exterior Wall Lights - Replace $0 $0 $0 $0 $ Paver Balcony Decks - Replace $0 $0 $0 $0 $ Wood Balcony Decks - Seal/Repair $0 $0 $17,245 $0 $ Wood Balcony Decks - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $0 $0 $28,742 $0 $ Balcony Rails - Replace $0 $0 $0 $0 $ Patio Deck - Clean/Seal/Repair $2,709 $0 $0 $0 $ Patio Deck - Replace Coating $0 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $32,564 $ Stucco Exterior - Seal/Paint $0 $0 $0 $59,208 $ Stone Veneer - Repair $0 $0 $0 $98,679 $ Windows/Sliders - Replace/Repair $27,092 $27,904 $28,742 $29,604 $30, Balcony Door Glass - Replace $0 $0 $0 $0 $ Tile Roof Underlayment - Replace $0 $0 $0 $0 $ Gutters/Downspouts - Replace $0 $0 $0 $0 $ Heat Tape - Replace $10,837 $0 $0 $11,842 $ Chimney Covers & Flue Caps -Replace $0 $0 $0 $0 $0 Building Common Interior 2401 Interior Surfaces - Repaint $0 $0 $0 $0 $ Stairwell Int. Surfaces - Repaint $0 $0 $0 $0 $ Wallcoverings - Replace $0 $0 $0 $0 $ Interior Lights - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $0 $0 $0 $ Stairwell Carpet - Replace $0 $0 $0 $0 $ Molding/Trim - Replace $0 $0 $0 $0 $ Interior Doors - Replace $0 $0 $0 $0 $ Interior Doors - Refinish $54,183 $0 $0 $0 $ Furnishings and Décor - Update $0 $0 $0 $0 $ Bathrooms - Remodel $10,837 $0 $0 $0 $ Employee Lounge - Remodel $4,515 $0 $0 $0 $ Laundry Rooms - Remodel $3,612 $0 $0 $0 $0 Mechanical 2503 Card/Fob Reader System - Replace $0 $0 $0 $0 $ Door Software - Upgrade $0 $7,441 $0 $7,894 $ Hydraulic Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $94,732 $ Air Handlers - Repair $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 32 8/11/2015

40 Table 6: 30-Year Income/Expense Detail (yrs 20 through 24) Fiscal Year Computer/IT Equipment - Replace $0 $0 $0 $0 $ Exit/Emergency Lights - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $0 $0 $0 $0 $ Circulation Pump - Replace $0 $0 $0 $0 $0 Unit Interior 2901 Interior Surfaces - Repaint $79,469 $0 $0 $0 $ Unit Interiors - Refurbish $0 $0 $0 $0 $ Wallpaper - Replace $0 $0 $0 $114,468 $ Carpeting - Replace $370,253 $0 $0 $0 $ Lamps - Replace $0 $0 $0 $0 $ Lighting Fixtures - Replace $0 $0 $0 $0 $ Swing Light - Replace $0 $0 $0 $0 $ Ceiling Fans - Replace $0 $0 $0 $0 $40, Artwork/Mirrors - Replace $0 $0 $0 $0 $ Drapery - Replace $428,951 $0 $0 $0 $ Valance - Replace $0 $0 $0 $0 $ Wooden Blinds - Replace $0 $0 $0 $0 $ Duvets - Replace $130,943 $0 $0 $0 $ Linens - Replace $0 $0 $0 $0 $386, Bed Shams - Replace $53,280 $0 $0 $0 $ Throws - Replace $10,837 $0 $0 $0 $ Bedskirts - Replace $63,214 $0 $0 $0 $ Mattresses - Replace $0 $0 $0 $0 $ Bed Frames - Replace $0 $0 $0 $0 $ Headboard - Replace $0 $0 $0 $0 $ Sleeper Sofas - Replace $0 $0 $0 $0 $ Sofa - Replace $0 $0 $0 $0 $ Bar Stools - Replace $0 $0 $0 $0 $ Benches - Replace $0 $0 $0 $0 $ Corner Unit Chairs - Replace $0 $0 $0 $0 $ Dining Chairs - Replace $0 $0 $0 $0 $ Hickory Chairs - Replace $0 $0 $0 $0 $ Leather Chairs - Replace $0 $0 $0 $0 $ Credenzas - Replace $0 $0 $0 $0 $ Desk - Replace $0 $0 $0 $0 $ Adler Sideboard - Replace $0 $0 $0 $0 $ Armoires - Replace $0 $0 $0 $0 $ Wood Chest - Replace $0 $0 $0 $0 $ Wood Dressers - Replace $0 $0 $0 $0 $ Night Stands - Replace $0 $0 $0 $0 $ Coffee Tables - Replace $0 $0 $0 $0 $ Dining Tables - Replace $0 $0 $0 $0 $ End Tables - Replace $0 $0 $0 $0 $ Safes - Replace $0 $0 $0 $0 $ Baker Rack - Replace $0 $0 $0 $0 $ Shower Curtains - Replace $16,255 $0 $0 $0 $ Bathrooms - Refurbish (1st Floor) $0 $0 $0 $0 $ Bathrooms - Refurbish (2-3 Floors) $0 $0 $0 $0 $ Bathrooms - Refurbish (4th Floor) $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 33 8/11/2015

41 Table 6: 30-Year Income/Expense Detail (yrs 20 through 24) Fiscal Year Kitchen Counter/Cabs - Remodel $0 $0 $0 $0 $ Kitchens - Remodel $0 $0 $0 $0 $ Kitchen Appliances - Replace $0 $0 $501,061 $0 $ Kitchen Sink - Replace $0 $0 $0 $0 $ Unit Front Doors - Replace $0 $0 $0 $0 $ Telephone Handsets - Replace $0 $0 $0 $0 $18, Flat Screen TVs - Replace $0 $0 $0 $187,491 $ TV Wall Mount - Replace $0 $0 $0 $49,340 $ Baseboard Covers - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $0 $0 $0 $0 $ Balcony Furniture - Replace $0 $0 $0 $0 $ Decoration Package - Replace $77,663 $0 $0 $0 $ Interior Units - Refurbish $0 $0 $0 $0 $ Smoke Detectors - Replace $0 $0 $0 $0 $ Fireplaces - Replace $0 $0 $0 $0 $0 Total Expenses $1,344,650 $35,346 $575,789 $685,821 $475,674 Ending Reserve Balance: $3,867,382 $5,127,107 $5,894,022 $6,596,879 $7,557,987 Association Reserves Colorado, LLC 34 8/11/2015

42 Table 6: 30-Year Income/Expense Detail (yrs 25 through 29) Fiscal Year Starting Reserve Balance $7,557,987 $8,196,813 $9,509,171 $9,259,787 $10,808,343 Annual Reserve Contribution $1,407,019 $1,449,229 $1,492,706 $1,537,487 $1,583,612 Recommended Special Assessments $0 $0 $0 $0 $0 Interest Earnings $78,741 $88,492 $93,805 $100,298 $102,189 Total Income $9,043,746 $9,734,535 $11,095,682 $10,897,572 $12,494,144 # Component Building Exterior 2303 Exterior Wall Lights - Replace $0 $0 $0 $0 $ Paver Balcony Decks - Replace $0 $0 $0 $0 $ Wood Balcony Decks - Seal/Repair $18,844 $0 $0 $20,591 $ Wood Balcony Decks - Resurface $0 $0 $0 $0 $ Balcony Rails - Repaint $31,407 $0 $0 $34,319 $ Balcony Rails - Replace $0 $0 $0 $0 $ Patio Deck - Clean/Seal/Repair $3,141 $0 $0 $0 $ Patio Deck - Replace Coating $8,375 $0 $0 $0 $ Building Exterior - Seal/Paint $0 $0 $0 $0 $ Stucco Exterior - Seal/Paint $0 $0 $0 $0 $ Stone Veneer - Repair $0 $0 $0 $0 $ Windows/Sliders - Replace/Repair $31,407 $32,349 $33,319 $34,319 $35, Balcony Door Glass - Replace $23,032 $0 $0 $0 $ Tile Roof Underlayment - Replace $0 $0 $0 $0 $ Gutters/Downspouts - Replace $0 $0 $0 $0 $ Heat Tape - Replace $0 $12,940 $0 $0 $14, Chimney Covers & Flue Caps -Replace $0 $0 $0 $0 $0 Building Common Interior 2401 Interior Surfaces - Repaint $0 $24,801 $0 $0 $ Stairwell Int. Surfaces - Repaint $0 $0 $0 $0 $ Wallcoverings - Replace $0 $36,662 $0 $0 $ Interior Lights - Replace $0 $0 $0 $0 $ Carpet - Replace $0 $65,776 $0 $0 $ Stairwell Carpet - Replace $0 $0 $0 $0 $ Molding/Trim - Replace $0 $0 $0 $0 $ Interior Doors - Replace $221,940 $0 $0 $0 $ Interior Doors - Refinish $0 $0 $0 $0 $ Furnishings and Décor - Update $0 $12,940 $0 $0 $ Bathrooms - Remodel $0 $0 $0 $0 $ Employee Lounge - Remodel $0 $0 $0 $0 $ Laundry Rooms - Remodel $0 $0 $0 $0 $0 Mechanical 2503 Card/Fob Reader System - Replace $104,689 $0 $0 $0 $ Door Software - Upgrade $8,375 $0 $8,885 $0 $9, Hydraulic Elevator - Modernize $0 $0 $0 $0 $ Elevators - Cab Remodel $0 $0 $0 $0 $ Air Handlers - Repair $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 35 8/11/2015

43 Table 6: 30-Year Income/Expense Detail (yrs 25 through 29) Fiscal Year Computer/IT Equipment - Replace $0 $0 $0 $0 $12, Exit/Emergency Lights - Replace $0 $0 $0 $0 $ Laundry Machines - Replace $4,188 $0 $0 $0 $ Circulation Pump - Replace $0 $0 $0 $0 $0 Unit Interior 2901 Interior Surfaces - Repaint $0 $0 $97,737 $0 $ Unit Interiors - Refurbish $0 $0 $0 $0 $212, Wallpaper - Replace $0 $0 $0 $0 $ Carpeting - Replace $0 $0 $455,364 $0 $ Lamps - Replace $0 $0 $0 $0 $146, Lighting Fixtures - Replace $0 $0 $0 $0 $47, Swing Light - Replace $0 $0 $0 $0 $40, Ceiling Fans - Replace $0 $0 $0 $0 $ Artwork/Mirrors - Replace $0 $0 $0 $0 $70, Drapery - Replace $0 $0 $527,556 $0 $ Valance - Replace $0 $39,897 $0 $0 $ Wooden Blinds - Replace $0 $0 $0 $0 $122, Duvets - Replace $0 $0 $161,043 $0 $ Linens - Replace $0 $0 $0 $0 $ Bed Shams - Replace $0 $0 $65,528 $0 $ Throws - Replace $0 $0 $13,328 $0 $ Bedskirts - Replace $0 $0 $77,745 $0 $ Mattresses - Replace $0 $0 $0 $0 $136, Bed Frames - Replace $0 $0 $0 $0 $23, Headboard - Replace $0 $0 $0 $0 $75, Sleeper Sofas - Replace $0 $0 $0 $0 $64, Sofa - Replace $0 $0 $0 $0 $108, Bar Stools - Replace $0 $0 $0 $0 $61, Benches - Replace $0 $0 $0 $0 $31, Corner Unit Chairs - Replace $0 $0 $0 $0 $40, Dining Chairs - Replace $0 $0 $0 $0 $194, Hickory Chairs - Replace $0 $0 $0 $0 $30, Leather Chairs - Replace $0 $0 $0 $0 $106, Credenzas - Replace $0 $0 $0 $0 $70, Desk - Replace $0 $0 $0 $0 $2, Adler Sideboard - Replace $0 $0 $0 $0 $96, Armoires - Replace $0 $0 $0 $0 $117, Wood Chest - Replace $0 $0 $0 $0 $35, Wood Dressers - Replace $0 $0 $0 $0 $62, Night Stands - Replace $0 $0 $0 $0 $96, Coffee Tables - Replace $0 $0 $0 $0 $65, Dining Tables - Replace $0 $0 $0 $0 $61, End Tables - Replace $0 $0 $0 $0 $48, Safes - Replace $0 $0 $0 $0 $31, Baker Rack - Replace $0 $0 $0 $0 $29, Shower Curtains - Replace $0 $0 $19,992 $0 $ Bathrooms - Refurbish (1st Floor) $0 $0 $0 $0 $ Bathrooms - Refurbish (2-3 Floors) $0 $0 $0 $0 $ Bathrooms - Refurbish (4th Floor) $0 $0 $0 $0 $0 Association Reserves Colorado, LLC 36 8/11/2015

44 Table 6: 30-Year Income/Expense Detail (yrs 25 through 29) Fiscal Year Kitchen Counter/Cabs - Remodel $0 $0 $0 $0 $ Kitchens - Remodel $0 $0 $279,882 $0 $ Kitchen Appliances - Replace $0 $0 $0 $0 $ Kitchen Sink - Replace $0 $0 $0 $0 $ Unit Front Doors - Replace $217,753 $0 $0 $0 $ Telephone Handsets - Replace $0 $0 $0 $0 $ Flat Screen TVs - Replace $0 $0 $0 $0 $223, TV Wall Mount - Replace $0 $0 $0 $0 $58, Baseboard Covers - Replace $0 $0 $0 $0 $58, Laundry Machines - Replace $69,095 $0 $0 $0 $ Balcony Furniture - Replace $0 $0 $0 $0 $ Decoration Package - Replace $0 $0 $95,515 $0 $ Interior Units - Refurbish $0 $0 $0 $0 $212, Smoke Detectors - Replace $0 $0 $0 $0 $ Fireplaces - Replace $104,689 $0 $0 $0 $0 Total Expenses $846,933 $225,364 $1,835,895 $89,229 $2,856,040 Ending Reserve Balance: $8,196,813 $9,509,171 $9,259,787 $10,808,343 $9,638,104 Association Reserves Colorado, LLC 37 8/11/2015

45 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 38 8/11/2015

46 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 39 8/11/2015

47 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 area maintenance repair & replacement responsibility 2) Components must have a limited life 3) Life limit must be predictable 4) Above a minimum threshold cost (board s discretion typically 1/2 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 costs, 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 40 8/11/2015

48 Comp # : BUILDING EXTERIORS--- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: Comp # : 2303 Exterior Wall Lights - Replace Location : Adjacent to pool Quantity: ~ (3) Fixtures Evaluation : Observed during daylight hours, but assumed to be in functional operating condition. As routine maintenance, clean by wiping down with an appropriate cleaner, change bulbs and repair as needed. Best practice is to plan for largescale replacement at roughly the time frame below for cost efficiency and consistent quality/appearance throughout association. Should be coordinated with exterior painting projects whenever possible. Be sure to inspect for tight seal with building envelope. Note: expect the need to replace individual fixtures occasionally due to failure or damage. Individual replacements should be considered an Operating expense. If available, an extra supply of replacement fixtures should be kept on-site to allow for prompt replacement. 25 years 6 years Best Case: $1,000 Worst Case: $3,000 to replace; installed to replace Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 1 of 65

49 Comp # : 2311 Paver Balcony Decks - Replace Location : 1st Floor balconies Quantity: ~ 400 GSF Evaluation : Exterior tile decking should be inspected regularly for cracking, loose tile, poor drainage, and other problems. Unless otherwise noted, deck is assumed to be properly constructed without defect, including adequate waterproofing measures and drainage. Forensic building evaluation is beyond the scope of this Reserve Study. Replacement is typically required at long intervals in order to maintain a watertight building envelope, and to update the appearance in the common areas. 30 years 11 years Best Case: $8,000 Worst Case: $12,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 2 of 65

50 Comp # : 2315 Wood Balcony Decks - Seal/Repair Location : Balconies Quantity: ~ 1,880 GSF Evaluation : Surface appearance was of that of a wood stain coating. Slope appeared adequate. 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. 3 years 1 years Best Case: $8,000 Worst Case: $10,000 to recoat to recoat Cost Source: Estimate Provided by Client August 11,2015 Page 3 of 65

51 Comp # : 2317 Wood Balcony Decks - Resurface Location : Balconies Quantity: ~ 1,480 GSF Evaluation : Generally good to fair conditions. Deck surface is open boards that allow water to drain off in between the slats. Wood deck surface was painted/stained. Minor staining of boards was observed. Plan for large scale repair / replacement at roughly the interval below. As routine maintenance, inspect deck, stairs, and railings annually and repair as needed. As part of maintenance, apply water repellant stain/preservative at least every other year. Options for a longer lasting deck include such things as using a thick wood boards of suitable species or a composite product. Composite materials are available that require less maintenance and lower life cycle costs typically. Funding for replacing existing wood boards with in-kind material is factored below. Costs can increase greatly, if decay of the structural framing is found. 30 years 11 years Best Case: $27,000 Worst Case: $33,000 to resurface to resurface Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 4 of 65

52 Comp # : 2319 Balcony Rails - Repaint Location : Balconies Quantity: ~ 800 LF Evaluation : No issues were noted with the rails at the time of the inspection. No peeling or blistering noted. 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. 3 years 1 years Best Case: $14,000 Worst Case: $16,000 Comp # : 2321 Balcony Rails - Replace Location : Adjacent to decks Cost Source: Client Cost History Quantity: ~ 800 LF Evaluation : No issues were seen with the rails at the time of the inspection. No broken sections were seen. Rails were attached through the waterproof surface of the deck. 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 11 years Best Case: $64,000 Worst Case: $72,000 to replace to replace Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 5 of 65

53 Comp # : 2323 Patio Deck - Clean/Seal/Repair Location : Adjacent to 231 unit Quantity: ~ 600 GSF Evaluation : Plan to start the cycle once the coating has been installed. Seal was noted to be in poor condition. Concrete patio. Adequate slope noted. Drains were seen. Reported that the patio needs to be shoveled during the snow season. 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. 5 years 5 years Best Case: $1,000 Worst Case: $2,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 6 of 65

54 Comp # : 2325 Patio Deck - Replace Coating Location : Adjacent to 231 unit Quantity: ~ 600 GSF Evaluation : No coating was noted. The association may want to consider installing a waterproofing coating (traffic coating, elastomeric coating). Funding below provided for this type of work. 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 0 years Best Case: $3,000 Worst Case: $5,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 7 of 65

55 Comp # : 2341 Building Exterior - Seal/Paint Location : Exterior walls Painted in 2015 Quantity: ~ 8,200 GSF Evaluation : The painted surface of the wood trim and the siding appeared in good condition with no peeling or blistering of the painted observed. Siding types included board and batten. Siding material was wood. Useful life below is allowanced for financial planning purposes at 5-8 years. Evaluate and adjust remaining useful life as it approaches zero years. As routine maintenance, inspect regularly (including sealants) repair locally and touch-up paint as needed. Typical paint cycles vary greatly depending upon many factors including; type of material painted, surface preparations, quality of primer/paint/stain, application methods, weather conditions during application, moisture beneath paint, and exposure to weather conditions. 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 6-9 years and silicone s life can be years. Incorrect installations of sealant are common, and can greatly decrease its useful life. Inspect sealant, more frequently as it ages, to determine if it is failing. Typical sealant problems include failure of sealant to adhere to adjacent materials and tearing/splitting of the sealant itself. As sealants age and are exposure to ultra-violet sunlight, they will dry out, harden, and lose their elastic ability. Remove and replace sealant as signs of failure begin to appear. Proper cleaning, prep work, and proper installation are critical for a long lasting sealant/caulking. Do not install sealant in locations that would block water drainage from behind the siding. Repair areas as needed prior to painting/caulking. Additional information on painting is available through American Coatings Association at 8 years 7 years Best Case: $13,000 Worst Case: $20,000 to prep, coat / caulk Cost Source: Client Cost History August 11,2015 Page 8 of 65

56 Comp # : 2343 Stucco Exterior - Seal/Paint Location : Exterior building surfaces Painted in 2015 Quantity: ~ 14,100 GSF Evaluation : Stucco had vertical and horizontal control joints. No compression of control joints was observed during our limited visual review. Visible portion of through wall flashing was seen at each floor. No large- scale cracking of stucco was observed. Sealant joints were observed at window jambs and sills. The sealant material is unknown. Stucco is a relatively low maintenance material, although sealants require more maintenance. As annual maintenance, inspect stucco and sealants for any visible problems. Replacing sealants is an important part of maintaining stucco s waterproofing. 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 8 years 7 years Best Case: $25,000 Worst Case: $35,000 to prep and paint / caulk, more prep work Cost Source: Client Cost History August 11,2015 Page 9 of 65

57 Comp # : 2359 Stone Veneer - Repair Location : Exterior walls Quantity: ~ 2,115 GSF Evaluation : Some stone veneer was used for cladding on small portions of the building. No cracked grout or broken stone were observed during our limited visual review. Stone veneer is a relatively low maintenance item. Inspect periodically and repair as needed using operation and maintenance funds. Funding included at the request of the contact. 20 years 3 years Best Case: $45,000 Worst Case: $55,000 Cost Source: Estimate Provided by Client August 11,2015 Page 10 of 65

58 Comp # : 2363 Windows/Sliders - Replace/Repair Quantity: ~ (339) Windows Location : Building exterior walls Evaluation : Reported by the contact that the association replaces and repairs the windows on an annual basis. Windows included: (293) 3x4 windows and (46) 2x4 windows. No problems were reported. Crank operated windows. Head flashing was observed. Jambs and sills had sealant joint between window frame and cladding. Weep holes, at exterior Lower corners, were observed to be clear, in the few windows sampled for our report. No condensation was observed between window panes, which is typically indicative of failed glazing seals. 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. 1 years 0 years Best Case: $10,000 Worst Case: $20,000 to replace to replace; upgraded Cost Source: Research with Local Vendor/Contractor August 11,2015 Page 11 of 65

59 Comp # : 2369 Balcony Door Glass - Replace Location : Exterior walls Quantity: ~ (43) Doors Evaluation : Funding provided to replace the glass in the doors. Per the vendor, expect to pay ~$800/door to replace the glass on the door. Funding provided is for an allowance. Doors have wood frames. No condensation was observed between glass panes, which is typically indicative of failed glazing seals. Inspect regularly, including sealant, if any, and repair as needed. Proper sealant/caulking is critical to keeping water out of the walls, and preventing water damage. With ordinary care and maintenance, useful life is long but difficult to predict. Many factors affect useful life including quality of door installed, waterproofing flashing details, exposure to wind driven rain, etc. In many cases, doors are replaced on an ongoing basis to select areas as-needed rather than to an entire building at one time. This component should be re-evaluated as the building ages and more problems develop, and funding recommendations should be adjusted accordingly. An allowance for partial replacements may be warranted if certain doors are more deteriorated than others. Consult with vendors to ensure replacement doors are compliant with all applicable building codes. 10 years 5 years Best Case: $10,000 Worst Case: $12,000 Cost Source: Allowance August 11,2015 Page 12 of 65

60 Comp # : 2381 Tile Roof Underlayment - Replace Location : Rooftop of buildings Quantity: ~ 16,100 GSF Evaluation : No issues were noted. Section adjacent to unit #231 had exposed flashing, which may need to be inspected by a professional. Roofing consists of tiles over underlayment. Typical replacement includes removal and replacement of tiles and underlayment, with repairs to any damaged substrate made as needed. Tile roofing is typically a long-lived component assuming it was properly installed and is properly maintained. As routine maintenance, many manufacturers recommend inspections at least twice annually (once in the fall, before the rainy season, and again in the spring) and after large storm events. Promptly replace any damaged/missing sections or conduct any other repair needed to ensure waterproof integrity of roof. We recommend having roof inspected in greater detail (including conditions of sub-surface materials) by an independent roofing consultant prior to replacement. There is a wealth of information available through organizations such as the Roof Consultant Institute and the National Roofing Contractors Association (NRCA) If the roof has a warranty, be sure to review terms and conduct proper inspections/repairs as needed to keep warranty in force. 25 years 6 years Best Case: $95,000 Worst Case: $115,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 13 of 65

61 Comp # : 2387 Gutters/Downspouts - Replace Quantity: ~ 900 LF Location : Perimeter of building Evaluation : Generally the metal gutters and downspouts appeared in good condition. We suggest to plan for total replacement of gutter and downspouts at the same intervals as roof replacement for cost efficiency. National Roofing Contractor Association (NRCA) roofing standard includes installing eave flashings at the gutters. As routine maintenance, inspect regularly, keep gutters and downspouts free of debris. 25 years 6 years Best Case: $7,000 Worst Case: $11,000 to replace Comp # : 2393 Heat Tape - Replace Location : Adjacent to gutters and downspouts to replace Cost Source: ARI Cost Database: Similar Project Cost History Quantity: ~ 900 LF Evaluation : Heat tape is reportedly replaced annually. Heat tape generally follows the length of the gutter and downspouts. Heat cables, when installed and functioning properly, will help offset the likelihood of an ice dam. Typically heat tape will last 2-4 years depending on the warranty. Heat tape, on average, creates an output between F. When installed in the gutters, the heat cables can keep your gutters and downspouts from collecting and freezing with ice and snow melt. 3 years 2 years Best Case: $5,000 Worst Case: $7,000 to replace to replace Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 14 of 65

62 Comp # : 2397 Chimney Covers & Flue Caps -Replace Quantity: (6) Covers, (12) Caps Location : Roofs of buildings Evaluation : Observation of top of chimney was not possible due to limited access. We typically include replacement cycle timed to coincide with re-roofing. Review condition of chimney caps and flue caps with consultant while evaluating the roofing project. As routine maintenance, inspect and clean during roof maintenance. Repair locally as needed. Assuming proactive maintenance, plan for total replacement at roughly the time frame indicated below. 25 years 6 years Best Case: $6,000 Worst Case: $10,000 $500/ea chimney cover and $125/ea flue cap, Lower $800/ea chimney cover and $175/ea flue cap, Higher allowance to replace allowance to replace Cost Source: ARI Cost Database: Similar Project Cost History Comp # : BUILDING INTERIORS---- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: August 11,2015 Page 15 of 65

63 Comp # : 2401 Interior Surfaces - Repaint Location : Interior wall and ceiling surfaces Quantity: ~ 10,100 GSF Evaluation : 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 6 years Best Case: $10,000 Worst Case: $13,000 to repaint Cost Source: ARI Cost Database: Similar Project Cost History to repaint; more prep, color change, etc Comp # : 2402 Stairwell Int. Surfaces - Repaint Quantity: ~ 3,600 GSF Location : Interior wall and ceiling surfaces Evaluation : Stairwells are typically a lower priority and usually painted at a longer frequency. 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. 15 years 2 years Best Case: $4,000 Worst Case: $5,000 to repaint to repaint; more prep, color change, etc Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 16 of 65

64 Comp # : 2403 Wallcoverings - Replace Location : Interior wall surfaces Quantity: ~ 3,400 GSF Evaluation : No ripping or blemishing noted with the wallcoverings. No major issues were seen. 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. 10 years 6 years Best Case: $14,000 Worst Case: $20,000 Cost Source: ARI Cost Database: Similar Project Cost History Comp # : 2405 Interior Lights - Replace Quantity: ~ (44) Fixtures Location : Interior common areas Evaluation : No major problems were noted with the interior lights. As routine maintenance, inspect, repair and change bulbs as needed. Best practice is to coordinate at same time as other interior projects (especially painting) 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. A wide variety of fixture styles is available; funding recommendations are based on replacement with comparable quality fixtures. 25 years 6 years Best Case: $4,000 Worst Case: $7,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 17 of 65

65 Comp # : 2406 Stairwell Lights - Replace Location : Interior common areas Funded? : No Quantity: ~ (20) Fixtures Evaluation : No major problems were noted with the interior lights. Due to the style of light, plan to replace the units as needed from the operating budget. Best Case: Cost Source: Worst Case: Comp # : 2411 Carpet - Replace Location : Common area hallways, stairways & lobby Replaced in 2011 Quantity: ~ 467 GSY Evaluation : Staining observed along the hallways. 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 6 years Best Case: $28,000 Worst Case: $33,000 to replace, installed ; upgraded Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 18 of 65

66 Comp # : 2411 Stairwell Carpet - Replace Location : Common area hallways, stairways & lobby Quantity: ~ 102 GSY Evaluation : No issues were noted with the carpet at the time of the inspection. 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. 15 years 2 years Best Case: $5,000 Worst Case: $6,000 to replace, installed Comp # : 2413 Molding/Trim - Replace Location : Interior common area flooring ; upgraded Cost Source: ARI Cost Database: Similar Project Cost History Quantity: ~ 1,700 GSF Evaluation : Wood trim should eventually be replaced due to age, 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 11 years Best Case: $17,000 Worst Case: $30,000 to repair/replace Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 19 of 65

67 Comp # : 2425 Interior Doors - Replace Quantity: (50) Doors Location : Interior unit entry doors Evaluation : The association is planning to replace the doors completely every 20 years. 20 years 5 years Best Case: $100,000 Worst Case: $112,000 Comp # : 2427 Interior Doors - Refinish Location : Interior unit entry doors Will be completed in 2016 Cost Source: Estimate Provided by Client Quantity: (50) Doors Evaluation : 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. 10 years 0 years Best Case: $25,000 Worst Case: $35,000 Cost Source: Estimate Provided by Client August 11,2015 Page 20 of 65

68 Comp # : 2429 Furnishings and Décor - Update Location : Hallways Quantity: ~ (12) Pieces Evaluation : Each hallway consists of (1) table, (1) mirror, and (1) art. This component recommends funding for periodic replacement/refurbishment of interior furnishings and decor such as furniture, artwork, window treatments, misc. decorative items, etc., in order to maintain a desirable aesthetic in the common areas. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. 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 6 years Best Case: $5,000 Worst Case: $7,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 21 of 65

69 Comp # : 2431 Bathrooms - Remodel Location : Employee area Quantity: (2) Bathrooms Evaluation : 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 5 years Best Case: $5,000 Worst Case: $7,000 to refurbish ; more extensive, elaborate Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 22 of 65

70 Comp # : 2433 Employee Lounge - Remodel Location : Building office Quantity: Desk, chairs, etc Evaluation : ~ 400 GSF of vinyl flooring. Miscellaneous furniture. Parodic 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 re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 15 years 5 years Best Case: $2,000 Worst Case: $3,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 23 of 65

71 Comp # : 2483 Laundry Rooms - Remodel Location : Laundry room Quantity: (1) Room Evaluation : Room had ~100 GSF of vinyl flooring. 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 5 years Best Case: $1,000 Worst Case: $3,000 to replace Cost Source: ARI Cost Database: Similar Project Cost History Comp # : BUILDING SYSTEMS----- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: August 11,2015 Page 24 of 65

72 Comp # : 2503 Card/Fob Reader System - Replace Location : Adjacent to doors Quantity: ~ (50) Units Evaluation : Card/fob reader devices were/were observed to be functional during site inspection. Due to use, exposure, and advancements in technology, plan to replace devices and control system at the approximate interval shown here. Individual readers can often be replaced as an Operating expense due to damage or localized failures. To ensure a functional, compatible system and obtain better pricing, plan on replacing all devices together as one project. 10 years 5 years Best Case: $45,000 Worst Case: $55,000 Cost Source: Estimate Provided by Client Comp # : 2505 Door Software - Upgrade Quantity: ~ (50) Units Location : Entry areas Evaluation : Component added at the request of the contact. Funding to upgrade the Ving software. 2 years 1 years Best Case: $3,000 Worst Case: $5,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 25 of 65

73 Comp # : 2513 Hydraulic Elevator - Modernize Location : Center of building Quantity: (2) 4-Stop Elevator Evaluation : (1) of the boxes was noted to be leaking 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 6 years Best Case: $160,000 Worst Case: $180,000 to modernize Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 26 of 65

74 Comp # : 2517 Elevators - Cab Remodel Location : Elevator interior Quantity: (2) Elevator Cabs Evaluation : Ceramic flooring, wood paneling. 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. 20 years 3 years Best Case: $46,000 Worst Case: $50,000 to refurbish cab Cost Source: Estimate Provided by Client August 11,2015 Page 27 of 65

75 Comp # : 2525 Air Handlers - Repair Location : Roof Quantity: (8) Motors Evaluation : No access to inspect the units at the time of the inspection. An air handler (often abbreviated to AHU), is a device used to regulate and circulate air as part of a heating, ventilating, and air-conditioning (HVAC) system. An air handler is usually a large metal box containing a blower, heating or cooling elements, filter racks or chambers, sound attenuators, and dampers. Air handlers usually connect to a ductwork ventilation system that distributes the conditioned air through the building and returns it to the AHU. 17 years 16 years Photo Not Available Best Case: $9,000 Worst Case: $11,000 Comp # : 2545 Computer/IT Equipment - Replace Location : Manager's office Cost Source: Client Cost History Quantity: (2) Computers Evaluation : Computers and other IT equipment have a relatively short useful life (depending on the application and level of use) due to advancements in technology. Plan to replace/upgrade the existing equipment at the approximate interval shown here to ensure proper function and uninterrupted service. Keep track of any partial replacements and include cost history during future Reserve Study updates. 12 years 5 years Photo Not Available Best Case: $5,000 Worst Case: $6,000 Cost Source: Estimate Provided by Client August 11,2015 Page 28 of 65

76 Comp # : 2563 Exit/Emergency Lights - Replace Location : Fire system mechanical Quantity: (44) Fixtures Evaluation : Exit signs and emergency lighting fixtures were not tested for functionality during site inspection. Replacement of individual fixtures can be included within the general maintenance and repair category of the Operating budget. Large-scale replacement of many (or all) fixtures may be warranted at some point and should ideally be coordinated with other life-safety components, such as fire alarm control panel(s), smoke detectors, pull stations, etc. There is a wide variety of fixture styles available, with a wide range of associated costs. Funding here to replace with fixtures comparable to those currently in place. 25 years 6 years Best Case: $6,000 Worst Case: $7,000 Comp # : 2583 Laundry Machines - Replace Location : Laundry room Cost Source: ARI Cost Database: Similar Project Cost History Quantity: (1) Washer (1) Dryer Evaluation : Residential quality washers and dryers assumed to be functioning and in operating order, no problems reported. Inspect regularly and make minor repairs from operating/maintenance fund. Best to plan for replacement of all appliances together at the time frame indicated below. 13 years 12 years Best Case: $1,000 Worst Case: $3,000 to replace Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 29 of 65

77 Comp # : 2592 Circulation Pump - Replace Location : Pool deck Quantity: (1) Pump 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. 20 years 19 years Photo Not Available Best Case: $3,000 Worst Case: $5,000 to repair Cost Source: ARI Cost Database: Similar Project Cost History Comp # : UNIT INTERIORS----- Location : Funded? : No Evaluation : Quantity: Best Case: Cost Source: Worst Case: August 11,2015 Page 30 of 65

78 Comp # : 2901 Interior Surfaces - Repaint Location : Unit interiors Quantity: ~ 38,900 GSF Evaluation : 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. 7 years 6 years Best Case: $39,000 Worst Case: $49,000 Cost Source: ARI Cost Database: Similar Project Cost History Comp # : 2902 Unit Interiors - Refurbish Location : Unit interiors Evaluation : Item added at the request of the contact. Quantity: (50) Units 10 years 9 years Best Case: $80,000 Worst Case: $100,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 31 of 65

79 Comp # : 2903 Wallpaper - Replace Location : Unit interiors Quantity: ~ 21,600 GSF Evaluation : The style of wallcovering varied depending on the location of the wallcovering. Ornate wallcoverings noted. 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. 10 years 3 years Best Case: $56,000 Worst Case: $60,000 Cost Source: Estimate Provided by Client August 11,2015 Page 32 of 65

80 Comp # : 2911 Carpeting - Replace Location : Unit interiors Replaced in 2015 Quantity: ~ 2,517 GSY Evaluation : No major issues were noted with the carpet at the time of the inspection. 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. 7 years 6 years Best Case: $200,000 Worst Case: $210,000 Cost Source: Client Cost History August 11,2015 Page 33 of 65

81 Comp # : 2919 Lamps - Replace Location : Unit interiors Quantity: ~ (228) Pieces Evaluation : As routine maintenance, inspect, repair and change bulbs as needed. Best practice is to coordinate at same time as other interior projects (especially painting) 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. A wide variety of fixture styles is available; funding recommendations are based on replacement with comparable quality fixtures. 12 years 5 years Best Case: $60,000 Worst Case: $64,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 34 of 65

82 Comp # : 2920 Lighting Fixtures - Replace Location : Unit interiors Quantity: ~ (81) Pieces Evaluation : As routine maintenance, inspect, repair and change bulbs as needed. Best practice is to coordinate at same time as other interior projects (especially painting) 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. A wide variety of fixture styles is available; funding recommendations are based on replacement with comparable quality fixtures. 12 years 5 years Best Case: $18,000 Worst Case: $22,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 35 of 65

83 Comp # : 2921 Swing Light - Replace Location : Unit interiors Quantity: ~ (64) Pieces Evaluation : As routine maintenance, inspect, repair and change bulbs as needed. Best practice is to coordinate at same time as other interior projects (especially painting) 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. A wide variety of fixture styles is available; funding recommendations are based on replacement with comparable quality fixtures. 12 years 5 years Best Case: $16,000 Worst Case: $18,000 Cost Source: Estimate Provided by Client August 11,2015 Page 36 of 65

84 Comp # : 2922 Ceiling Fans - Replace Location : Unit interiors Replaced in 2015 Quantity: ~ (48) Pieces Evaluation : As routine maintenance, inspect, repair and change bulbs as needed. Best practice is to coordinate at same time as other interior projects (especially painting) 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. A wide variety of fixture styles is available; funding recommendations are based on replacement with comparable quality fixtures. 25 years 24 years Best Case: $18,000 Worst Case: $22,000 Cost Source: Client Cost History August 11,2015 Page 37 of 65

85 Comp # : 2925 Artwork/Mirrors - Replace Location : Unit interiors Replaced in 2015 Quantity: ~ (190) Pieces Evaluation : This component recommends funding for periodic replacement/refurbishment of artwork in order to maintain a desirable aesthetic in the common areas. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. 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 9 years Best Case: $25,000 Worst Case: $35,000 Cost Source: Client Cost History August 11,2015 Page 38 of 65

86 Comp # : 2927 Drapery - Replace Location : Unit Interiors Quantity: ~ (149) Pieces Evaluation : Cost estimates includes labor and material. This component recommends funding for periodic replacement/refurbishment of the window treatments in order to maintain a desirable aesthetic in the common areas. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 6 years Best Case: $235,000 Worst Case: $240,000 Cost Source: Client Cost History August 11,2015 Page 39 of 65

87 Comp # : 2927 Valance - Replace Location : Unit interiors Quantity: ~ (31) Pieces Evaluation : Cost estimates includes labor and material. This component recommends funding for periodic replacement/refurbishment of the window treatments in order to maintain a desirable aesthetic in the common areas. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 5 years Best Case: $17,000 Worst Case: $20,000 Cost Source: Client Cost History August 11,2015 Page 40 of 65

88 Comp # : 2927 Wooden Blinds - Replace Location : Unit Interiors Quantity: ~ (149) Pieces Evaluation : This component recommends funding for periodic replacement/refurbishment of the window treatments in order to maintain a desirable aesthetic in the common areas. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. 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 9 years Best Case: $50,000 Worst Case: $54,000 Cost Source: Client Cost History August 11,2015 Page 41 of 65

89 Comp # : 2928 Duvets - Replace Location : Unit interiors Quantity: ~ (116) Duvets Evaluation : Includes (50) king and (66) twin. This component recommends funding for periodic replacement of the duvet and fill in order to facilitate an attractive environment. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 6 years Best Case: $70,000 Worst Case: $75,000 Cost Source: Estimate Provided by Client Comp # : 2928 Linens - Replace Quantity: (50) Units Location : Unit interiors Evaluation : This component recommends funding for periodic replacement of the linens in order to facilitate an attractive environment. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 3 years Best Case: $180,000 Worst Case: $200,000 Cost Source: Estimate Provided by Client August 11,2015 Page 42 of 65

90 Comp # : 2929 Bed Shams - Replace Location : Unit interiors Quantity: ~ (166) Shams Evaluation : Includes (100) king shams and (66) twin shams. This component recommends funding for periodic replacement of the shams in order to facilitate an attractive environment. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 6 years Best Case: $25,000 Worst Case: $34,000 Comp # : 2929 Throws - Replace Location : Unit interiors Cost Source: Estimate Provided by Client Quantity: ~ (31) Throws Evaluation : This component recommends funding for periodic replacement of the throws in order to facilitate an attractive environment. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 6 years Best Case: $5,000 Worst Case: $7,000 Cost Source: Estimate Provided by Client August 11,2015 Page 43 of 65

91 Comp # : 2930 Bedskirts - Replace Location : Unit interiors Quantity: ~ (116) Skirts Evaluation : Includes (50) king and (66) twin. This component recommends funding for periodic replacement of the bedskirts in order to facilitate an attractive environment. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 6 years Best Case: $30,000 Worst Case: $40,000 Cost Source: Estimate Provided by Client August 11,2015 Page 44 of 65

92 Comp # : 2931 Mattresses - Replace Location : Unit interiors Quantity: ~ (114) Mattresses Evaluation : Pieces include (52) king beds and (62) twin beds. This component recommends funding for the replacement of the mattresses in order to facilitate an attractive environment. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. 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 9 years Best Case: $56,000 Worst Case: $60,000 Comp # : 2932 Bed Frames - Replace Location : Unit interiors Cost Source: Estimate Provided by Client Quantity: ~ (116) Frames Evaluation : Includes (50) king frames and (66) frames. 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. 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 9 years Best Case: $8,000 Worst Case: $12,000 Cost Source: Estimate Provided by Client August 11,2015 Page 45 of 65

93 Comp # : 2932 Headboard - Replace Location : Unit interiors Quantity: ~ (83) Units Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $30,000 Worst Case: $34,000 Comp # : 2934 Sleeper Sofas - Replace Location : Unit Interiors Cost Source: Estimate Provided by Client Quantity: ~ (19) Units Evaluation : 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. 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 9 years Best Case: $25,000 Worst Case: $30,000 Cost Source: Client Cost History August 11,2015 Page 46 of 65

94 Comp # : 2934 Sofa - Replace Location : Unit Interiors Quantity: ~ (33) Units Evaluation : 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. 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 9 years Best Case: $40,000 Worst Case: $52,000 Comp # : 2935 Bar Stools - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (62) Pieces Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $20,000 Worst Case: $32,000 Cost Source: Client Cost History August 11,2015 Page 47 of 65

95 Comp # : 2935 Benches - Replace Location : Unit interiors Quantity: ~ (31) Benches Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $12,000 Worst Case: $15,000 Comp # : 2935 Corner Unit Chairs - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (12) Pieces Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $16,000 Worst Case: $18,000 Cost Source: Client Cost History August 11,2015 Page 48 of 65

96 Comp # : 2935 Dining Chairs - Replace Location : Unit interiors Quantity: ~ (193) Pieces Evaluation : Includes (38) studio unit chairs. Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $75,000 Worst Case: $90,000 Comp # : 2935 Hickory Chairs - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (31) Pieces Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $12,000 Worst Case: $14,000 Cost Source: Client Cost History August 11,2015 Page 49 of 65

97 Comp # : 2935 Leather Chairs - Replace Location : Unit interiors Quantity: ~ (31) Pieces Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $40,000 Worst Case: $50,000 Comp # : 2936 Credenzas - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (32) Pieces Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $25,000 Worst Case: $35,000 Cost Source: Client Cost History August 11,2015 Page 50 of 65

98 Comp # : 2936 Desk - Replace Location : 3 bedroom units Quantity: ~ (2) Desks Evaluation : Inspect regularly and repair or replace any damaged pieces promptly to ensure safety. Best practice is to replace all pieces together in order to maintain consistent style and quality. 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 9 years Best Case: $900 Worst Case: $1,000 Comp # : 2937 Adler Sideboard - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (31) Pieces Evaluation : Pieces 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. 10 years 9 years Best Case: $35,000 Worst Case: $47,000 Cost Source: Client Cost History August 11,2015 Page 51 of 65

99 Comp # : 2937 Armoires - Replace Location : Unit interiors Quantity: ~ (31) Pieces Evaluation : Armoires 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. 10 years 9 years Photo Not Available Best Case: $45,000 Worst Case: $55,000 Comp # : 2937 Wood Chest - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (31) Pieces Evaluation : Wood chest 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. 10 years 9 years Best Case: $10,000 Worst Case: $20,000 Cost Source: Client Cost History August 11,2015 Page 52 of 65

100 Comp # : 2937 Wood Dressers - Replace Location : Unit interiors Quantity: ~ (53) Pieces Evaluation : Wood dressers 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. 10 years 9 years Best Case: $20,000 Worst Case: $33,000 Comp # : 2938 Night Stands - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (133) Pieces Evaluation : Component includes (38) studio night stands. Night stands 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. 10 years 9 years Best Case: $35,000 Worst Case: $47,000 Cost Source: Client Cost History August 11,2015 Page 53 of 65

101 Comp # : 2939 Coffee Tables - Replace Location : Unit interiors Quantity: ~ (50) Units Evaluation : Component includes (19) studio tables. Night stands 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. 10 years 9 years Best Case: $26,000 Worst Case: $30,000 Comp # : 2939 Dining Tables - Replace Location : Unit interiors Cost Source: Client Cost History Quantity: ~ (50) Units Evaluation : Includes (19) 3' round tables and (31) 5' oval tables. Tables 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. 10 years 9 years Best Case: $22,000 Worst Case: $30,000 Cost Source: Client Cost History August 11,2015 Page 54 of 65

102 Comp # : 2939 End Tables - Replace Location : Unit interiors Quantity: ~ (64) Pieces Evaluation : Includes (31) wood end tables and (33) wood/metal end tables. Tables 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. 10 years 9 years Best Case: $15,000 Worst Case: $26,000 Cost Source: Client Cost History Comp # : 2940 Safe - Replace Quantity: (50) Pieces Location : Closet Evaluation : No issues were noted with the safes at the time of the inspection. Overall good conditions noted. 15 years 14 years Best Case: $13,000 Worst Case: $14,000 Cost Source: Client Cost History August 11,2015 Page 55 of 65

103 Comp # : 2941 Baker Rack - Replace Quantity: ~ (19) Pieces Location : Unit interiors Evaluation : No issues were noted with the racks at the time of the inspection. Overall good conditions noted. 10 years 9 years Photo Not Available Best Case: $12,000 Worst Case: $13,000 Comp # : 2944 Shower Curtains - Replace Location : Bathrooms Cost Source: ARI Cost Database: Similar Project Cost History Quantity: (64) Pieces Evaluation : This component recommends funding for periodic replacement/refurbishment of the shower curtains in order to maintain a desirable aesthetic in the common areas. Cost estimates can vary greatly depending on the amount of items to be replaced at each project, and the style and quality of replacement options. Best practice is to coordinate this type of project with other interior projects such as flooring replacement, painting, etc. Schedule and cost estimates should be re-evaluated during future Reserve Study updates and adjusted as needed based on the association's good judgment. 7 years 6 years Photo Not Available Best Case: $8,000 Worst Case: $10,000 Cost Source: Client Cost History August 11,2015 Page 56 of 65

104 Comp # : 2945 Bathrooms - Refurbish (1st Floor) Location : Unit interiors Remodeled in 2012 Quantity: (12) Units Evaluation : 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. 20 years 16 years Best Case: $700,000 Worst Case: $900,000 Comp # : 2945 Bathrooms - Refurbish (2-3 Floors) Location : Unit interiors Remodeled in 2011 Cost Source: Estimate Provided by Client Quantity: (28) Units Evaluation : 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. 20 years 15 years Best Case: $1,500,000 Worst Case: $1,700,000 Cost Source: Estimate Provided by Client August 11,2015 Page 57 of 65

105 Comp # : 2945 Bathrooms - Refurbish (4th Floor) Location : Unit interiors Remodeled in 2010 Quantity: (10) Units Evaluation : 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. 20 years 14 years Best Case: $220,000 Worst Case: $240,000 Comp # : 2947 Kitchen Counter/Cabs - Remodel Location : Unit interiors Cost Source: Estimate Provided by Client Quantity: (50) Kitchens Evaluation : 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 30 years 12 years Best Case: $500,000 Worst Case: $560,000 Cost Source: Estimate Provided by Client August 11,2015 Page 58 of 65

106 Comp # : 2947 Kitchens - Remodel Location : Unit interiors Quantity: (50) Kitchen Evaluation : 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 8 years 3 years Best Case: $120,000 Worst Case: $132,000 Comp # : 2949 Kitchen Appliances - Replace Location : Unit interiors Cost Source: Estimate Provided by Client Quantity: (50) Units Evaluation : Total inventory includes: (31) dishwasher, (50) microwave, (2) oven/range, (29) oven/range- 4 burner, (19) countertop burners, (31) refrigerators, and (19) smaller refrigerators. Individual appliances were not tested during inspection, and are assumed to be in functional operating condition unless otherwise noted. Replacement should ideally be coordinated with kitchen remodeling. Funding recommendation shown here is for replacing with comparable quality appliances. Individual pieces may be replaced as needed using Operating funds. 10 years 2 years Best Case: $255,000 Worst Case: $268,000 Cost Source: Estimate Provided by Client August 11,2015 Page 59 of 65

107 Comp # : 2949 Kitchen Sink - Replace Location : Unit interiors Quantity: (50) Units Evaluation : Individual appliances were not tested during inspection, and are assumed to be in functional operating condition unless otherwise noted. Replacement should ideally be coordinated with kitchen remodeling. Funding recommendation shown here is for replacing with comparable quality appliances. Individual pieces may be replaced as needed using Operating funds. 30 years 12 years Best Case: $16,000 Worst Case: $20,000 Comp # : 2951 Unit Front Doors - Replace Location : Units Cost Source: Estimate Provided by Client Quantity: (50) Doors Evaluation : Under normal circumstances, interior doors should experience an extended useful life from a functional perspective. Should be painted and repaired as needed to ensure good function and maintain good appearance. 20 years 5 years Best Case: $100,000 Worst Case: $108,000 Cost Source: Estimate Provided by Client August 11,2015 Page 60 of 65

108 Comp # : 2953 Telephone Handsets - Replace Location : Unit interiors Quantity: (114) Units Evaluation : Telephone equipment should be maintained and tested periodically to ensure good function. For most associations, ongoing replacements of individual components is treated as an Operating expense, but replacement of many (or all) system components may eventually be warranted. Funding recommendation shown here is for replacement with new equipment, comparable in style and quality to the assets noted during our site inspection. 7 years 3 years Photo Not Available Best Case: $8,000 Worst Case: $10,000 Comp # : 2955 Flat Screen TVs - Replace Location : Unit interiors Replaced in 2015 Cost Source: Estimate Provided by Client Quantity: ~ (114) Flat Screens Evaluation : Audio/visual equipment should be maintained and tested periodically to ensure good function. For most associations, ongoing replacements of individual components is treated as an Operating expense, but replacement of many (or all) system components may eventually be warranted. Funding recommendation shown here is for replacement with new equipment, comparable in style and quality to the assets noted during our site inspection. 6 years 5 years Best Case: $90,000 Worst Case: $100,000 Cost Source: ARI Cost Database: Similar Project Cost History August 11,2015 Page 61 of 65

109 Comp # : 2956 TV Wall Mount - Replace Location : Unit interiors Replaced in 2015 Quantity: ~ (114) Flat Screens Evaluation : Audio/visual equipment should be maintained and tested periodically to ensure good function. For most associations, ongoing replacements of individual components is treated as an Operating expense, but replacement of many (or all) system components may eventually be warranted. Funding recommendation shown here is for replacement with new equipment, comparable in style and quality to the assets noted during our site inspection. 6 years 5 years Best Case: $20,000 Worst Case: $30,000 Cost Source: Estimate Provided by Client Comp # : 2957 Baseboard Covers - Replace Quantity: (113) Pieces Location : Unit interiors Evaluation : Units were noted to be in good condition. No issues reported. 10 years 9 years Photo Not Available Best Case: $20,000 Worst Case: $30,000 Cost Source: Client Cost History August 11,2015 Page 62 of 65

110 Comp # : 2963 Laundry Machines - Replace Location : Unit interiors Quantity: (31) Units Evaluation : Residential quality washers and dryers assumed to be functioning and in operating order, no problems reported. Inspect regularly and make minor repairs from operating/maintenance fund. Best to plan for replacement of all appliances together at the time frame indicated below. 13 years 12 years Best Case: $26,000 Worst Case: $40,000 Comp # : 2967 Balcony Furniture - Replace Location : Patios Cost Source: Client Cost History Quantity: (38) Pieces Evaluation : 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. Costs can vary greatly based on type of pieces selected for replacement. Funding recommendation shown here is based on replacement with comparable quality pieces. 20 years 19 years Best Case: $30,000 Worst Case: $38,000 Cost Source: Client Cost History August 11,2015 Page 63 of 65

111 Comp # : 2970 Decoration Package - Replace Quantity: (50) Units Location : Patios Evaluation : This component acts as a contingency line item for general decoration. 7 years 6 years Best Case: $40,000 Worst Case: $46,000 Cost Source: Client Cost History Comp # : 2970 Interior Units - Refurbish Quantity: (50) Units Location : Unit interiors Evaluation : This component acts as a contingency line item for general decoration. 10 years 9 years Best Case: $80,000 Worst Case: $100,000 Cost Source: Client Cost History August 11,2015 Page 64 of 65

112 Comp # : 2975 Smoke Detectors - Replace Location : Unit interiors Quantity: (150) Pieces Evaluation : Units were not tested during site inspection, and is assumed to be functional unless otherwise noted. Units should have a long useful life expectancy under normal circumstances. Should be inspected, tested and repaired as needed on a regular basis by qualified vendor to ensure optimal performance. 17 years 16 years Best Case: $12,000 Worst Case: $20,000 Cost Source: Client Cost History Comp # : 2979 Fireplaces - Replace Location : Unit interiors Evaluation : Gas insert units. Will be replaced in Quantity: (50) Pieces 25 years 0 years Best Case: $40,000 Worst Case: $60,000 Cost Source: Estimate Provided by Client August 11,2015 Page 65 of 65