INSPECTION REPORT October 13, 2017

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P.O. BOX 311 GLENWOOD SPRINGS, CO 81602 970-309-4709 INSPECTION REPORT October 13, 2017 Inspection For: Lakota HOA c/o Sonny Black 151 Clubhouse Drive New Castle, CO 81647 970-355-9552 sonninc@aol.com Inspection Location: 151 Clubhouse Drive New Castle, CO Inspection Date: October 12, 2017 Realtor: N/A Others present at inspection: Buyer: yes Seller: no Agent: no File Number: 17-670 Weather Conditions: Clear Interior Conditions: Furnished Inspected By: Chuck Lanci NOTE: Only the above named client is entitled to rely on the contents of this report. This report addresses a single sale, transfer, exchange or refinance of the property listed above. It is not transferable to, and may not be relied upon, by parties involved in any future sale, transfer, exchange, or refinance of this property. Copyright 2017 by Alpine Building Consultants, Inc., P.O. Box 311, Glenwood Springs, CO, 81602. This report may not be reproduced without the written consent of Alpine Building Consultants, Inc.

A MESSAGE TO THE BUYER: We thank you for calling Alpine Building Consultants, Inc. to inspect this property. Please remember, all structures require regular maintenance, occasional repair and up-grades as they age. The intent of this report is to provide information about the readily accessible and operable components within a structure that are included in the inspection parameters. Included in this report will be details of defects that were observed during the inspection, action that should be considered, and some maintenance and safety information. The report will also list many, but not all, minor concerns. At the end of each section there will be a summary that will briefly indicate if there are defects or corrective actions that should be taken. Additional information (recommendations and maintenance) will be contained in the body of this report. Please read the report in its entirety to avoid misunderstandings. Unless otherwise specified, this inspection has been performed to minimum ASHI (American Society of Home Inspectors) standards. No permanent portion of the structures have been removed in an effort to locate concealed defects or deficiencies. Only readily accessible, major components of this occupancy were inspected. Interior furnishings and stored items may not have been moved and may conceal some components and defects. Interior window coverings have not been evaluated. The presence of insects (including termites), rodents or other pests has not been determined. No evaluation of conformance to the standards of the American's With Disabilities Act (ADA) has been completed. No tests have been made to determine the presence of lead based paints, carbon monoxide, mold or asbestos. No tests have been made to determine if any drug labs have occupied the building in the past. Radon testing was not completed unless otherwise noted. No portion of this inspection report is intended to be construed as a guarantee or warranty as to the future performance or the serviceable life of any component. The inspection and report is based upon the observation of the conditions that existed at the time of inspection only. Any systems, individual components or appliances which were inactive at the time of this evaluation were not activated in an effort to prevent potential hazards, possible system damage and for liability concerns. These items have not been evaluated and are not part of this report. Additional evaluation by other qualified persons may be needed to complete those portions of this inspection. No portion of this report is intended to reflect the value of the premises. The inspection agreement that was signed prior to the performance of the inspection is considered part of this report. 2

1) FOUNDATION a) Formed concrete foundation that appeared to be in generally satisfactory condition. The foundation was inspected where visible in the basement and around the exterior. Portions of the foundation were covered by building finish materials and were not readily accessible for close inspection. SUMMARY: All visible foundation components appeared to be in generally satisfactory condition. b) Drainage: Keeping water away from the foundation is important in maintaining structural stability. The earth should normally slope away from the foundation at a rate of at least one inch per foot. While there were a few flat areas of soils observed around the building, there appeared to be adequate drainage away from most of this structure. Always monitor the area around the home and make drainage improvements if a concern is observed in the future. The underground drain piping was not able to be evaluated as part of this report. SUMMARY: There appeared to be adequate drainage away from this structure at the time of this inspection. 2) STRUCTURE a) Typical wood frame construction that was found to be in generally satisfactory condition. There were no open areas available to view the floor framing. Roof framing visible from the attic access openings in the pool mechanical room, the manager's office and the golf pro shop appeared to be of normal size and was found to be installed per the methods found to be normal for this area. The attic was not able to be accessed through the opening in the ceiling of the closet off the kitchen due to the large amount of stored items in that area. This section of attic and any mechanical equipment located in this area was not able to be evaluated as part of this inspection. It is recommended that this area be accessed and fully evaluated. Most of the structure was covered by building finish materials and was not readily accessible for close inspection. SUMMARY: One section of attic was not able to be evaluated due to the poor access to the access opening. 3) EXTERIOR a) Exterior Cover: Wood siding that appeared to be in generally satisfactory condition. This siding was in need of resealing, especially at the east end of the building where tree branches have been rubbing the building. All branches that are in contact with the siding should be trimmed back. Wood siding and trim have a tendency to shrink, split and warp when subjected to drying weather conditions, especially on the south and west sides due to sun exposure. All exterior wood surfaces may need to be resealed or repainted every two to five years to maintain their serviceable life. 3

3) EXTERIOR continued Stone veneer which appeared to be in generally satisfactory condition, except several loose stones (see photo) were observed on the front of the building and on the four post bases supporting the front entry driveway cover. Reattaching and grouting these loose stones is needed. Also, the large gap at the base of the stone veneer along the front of the building (see photo) should be sealed to help prevent the entrance of moisture. Occasionally, the mortar lines should be evaluated for small cracks and areas of loose material. If this condition is found "tuck pointing" may be necessary to help prevent the entrance of moisture between the stones. SUMMARY: Resealing the wood siding and some stone veneer repairs needed. Recommendations made. b) Eaves, soffit, fascia: All exterior surfaces associated with the roof overhang were found to be in generally satisfactory condition. However, one of the attic vent covers was missing from the soffit at the east end of the building (see photo). Replacement of this cover is recommended to help prevent the entrance of birds or insects. SUMMARY: One attic vent opening cover missing. c) Decks, steps, railings: The exterior wood and composite deck assemblies were found to be structurally stable, and in generally satisfactory condition, except a few of the metal joist hangers near the stairway to the upper deck were not fully nailed in place (see photo next page). To support the joists properly, all of the holes in these joist hangers should be filled with "Tico" 4

3) EXTERIOR continued nails. Minor repairs should correct this condition. The base of one of the far west log support posts has decayed (see photo). It is recommended that this post be evaluated further by a qualified contractor to determine if it is stable enough to remain or should be replaced. Also, the small wooden wedges observed at the top of a few of these log posts appear to have been installed to help prevent the large beam above from twisting. Some of these wedges have loosened (see photo) and should be more permanently installed. A few of the upper level deck guardrails were loose and in need of better attachment to the log posts. All of these wood surfaces should also be resealed every two to five years to maintain their serviceable life. The exterior concrete steps, slabs and walkways were found to be in generally satisfactory condition, except the cracks in the concrete pool deck and at the front of the building should be properly sealed to help prevent damaging moisture from entering. The hinges on the large metal gate at the west end of the building haven been damaged, preventing this gate from closing properly. Repairs will be needed to correct this condition. SUMMARY: Several deck and patio concerns noted and recommendations made. d) Garage door(s): N/A 4) ROOF a) Covering: Composition asphalt shingles that appeared to be in generally satisfactory condition. However, tree branches were found to be in direct contact with this roof at the east end of the building. Trim these branches back to avoid their scraping and damaging the roof surface when the wind blows. This type of roof covering has an expected life span of 18 years or more. Metal roofing that appeared to be properly installed and in satisfactory condition. This type of roofing material should have an expected life span of 20 years or more. Temperature differentials will 5

4) ROOF continued cause metal roofing components to expand and contract slightly. This minor movement is typical, but may contribute to the loosening of some roof fastening devices over time. The roof should be checked every few years for similar concerns. SUMMARY: Tree branches rubbing the roof covering should be trimmed back. b) Flashings: All roof penetrations were properly protected by flashings. c) Leaks, condensation: None detected at the time of this inspection. 5) PLUMBING a) Supply and distribution piping: A large copper water service and main valve are located in the basement. This main valve was not tested for function or effectiveness. Water appears to be carried throughout this system in copper pipe. Most of this system was concealed within wall spaces and was not readily accessible for close inspection. Water quality can be variable in the mountain areas. Alpine Building Consultants, Inc. does not evaluate the buried water piping or water quality. The fire suppression system was not evaluated as part of this inspection. The annual inspection of this part of the system by the local Fire Marshal, or an assigned contractor is required. The most recent inspection tag on this sprinkler system was dated 2015. It is recommended that the manager of this property be contacted to determine if additional inspections have occurred since that time. SUMMARY: All visible plumbing supply and distribution components appeared to be in generally satisfactory condition. However, the fire suppression system did not appear to have an up to date inspection tag. Recommendation made. b) Drain system: This appears to be a PVC plastic pipe drain system that was found to be in generally satisfactory condition. There was satisfactory functional drainage at all plumbing fixtures. The controls for a sewage lift station were observed in the basement of this building. Other evidence of a lift station was not found. It is recommended that the current manager be contacted for information concerning the existence, condition and operation of a sewage lift station associated with this building. Normally, sewage lift stations should be cleaned and evaluated by a qualified contractor every five years. The floor drains were not tested as part of this inspection. Most of this system was concealed within wall spaces and was not readily accessible for close inspection. No under ground water piping was evaluated as part of this inspection. SUMMARY: Evidence of a sewage lift station found, but no lift station was observed. Recommendations made. c) Fixtures and faucets: All units were tested and found to be functional, except one of the toilets in the men's locker room had a sign on it indicating it was "out of order." Contact the current manager for information concerning the condition of this toilet. The other men's locker 6

5) PLUMBING continued room toilet was found to be loose. The anchor bolts for this unit may need to be tightened. Often, a toilet will need to be removed and reset to correct this condition (always replace the wax seal when resetting a toilet). The handicap accessible showers in both the men's and women's locker rooms were in need of shower head assembly repairs. Also, the hot and cold water were reversed on the handicap accessible shower in the men's locker room. The triple sink located at the back of the kitchen would not drain freely. This condition may be caused by the need for the large grease trap installed beneath this sink to be cleaned. The exterior sprinkler system was not operated, evaluated or tested and is not included in this report. Contact the current manager for information concerning the condition, operation and maintenance of this system. If possible, obtain the name and phone number of the firm which installed or maintains the system. The pool filtration and heat systems were shut down at the time of this inspection. It is recommended that a qualified pool maintenance contractor complete a full evaluation of these systems to determine the need for maintenance. Several sections of missing tile were observed around the perimeter of the pool (see photo). It is recommended that this missing tile be replaced and any loose tile be properly reinstalled. Some maintenance and minor repair can be expected from normal wear and tear with any plumbing system. SUMMARY: Several important, but normally easy to remedy plumbing fixture concerns noted and recommendations made. Further evaluation of the inactive swimming pool systems is recommended. d) Functional flow: Water pressure and volume appeared to be satisfactory when two or more plumbing fixtures were operated simultaneously at the time of the inspection. e) Plumbing "air gap" (cross connection) concerns: None detected. f) Water heater: Domestic water heating is provided through a heat exchanger tank associated with the boiler system. There was a continuous supply of heated water available. It could not be determined if this system is sufficient to handle peak use. SUMMARY: The water heater appeared to be in generally satisfactory condition. 6) HEATING a) There are four 399,000 Btu Raypak hot water boilers located in the pool mechanical 7

6) HEATING continued room. All of these boilers were turned off and unable to be fully evaluated. One of these boilers had its flue pipe disconnected. It is recommended that the current manager be contacted to determine the reason for this condition. Also, the boiler in the north east corner was found to be heavily corroded (see photo). This condition would indicate that long term exposure to moisture has occurred. This exposure may have damaged the boiler. Further evaluation of this and all of these boilers by a qualified heating specialist is recommended. They should also be cleaned and adjusted at that time. There is a 228,000 BTU Buderus hot water heat boiler located in the basement. This unit responded to normal controls when heat was called for the domestic water heater. The temperature/pressure relief valve associated with this boiler was found to be dripping at the time of this evaluation. Minerals often build up in the T/P valve causing it to open slightly. Usually the replacement of this valve resolves this condition. However, if a new T/P valve continues to drip, further evaluation of the boiler will be needed to determine the cause of this leakage. The mineral buildup (see photo) on the heat system pipe joint behind the right side of the boiler would indicate a slow water leak that should be repaired before it becomes a larger leak. The boiler observed in the basement appears to supply heated water to four fan coil units installed throughout the building. These fan coil units are designed to move air past hot water heat exchangers and distributing this heated air throughout the building. Three of the fan coil units were observed: one in the basement near the boiler, one in the attic space above the manager's office (this unit was found to have a slow leak (see photo) that should be repaired) and one in the attic space above the golf pro shop. The other fan 8

6) HEATING continued coil unit was not found, but was assumed to be in the attic space above the kitchen (this space was not able to be accessed due to the large amount of stored items in the closet where the access opening was located). There are four air conditioning units located on the exterior of the west end of the building. The return air duct grills observed throughout this building were all very dirty. This would indicate the need for system filter maintenance and cleaning of the ductwork. Not all of the air conditioning and heating zones were able to be made fully operational at the time of this inspection. It appeared that the heating and cooling system was partially locked down at the thermostats. While the employee working the pro shop was very helpful with other concerns, he did not know how to unlock the thermostats. Since there are several other heating system concerns, it is recommended that a qualified heating and ventilation contractor be contacted to further evaluate this system and make corrections as needed. SUMMARY: Several heat system concerns observed and recommendations made. 7) ELECTRICAL a) Service: An underground service provides 120/240 volts to a meter located at the west end of this building. SUMMARY: All visible electrical service components appeared to be in generally satisfactory condition. b) Service equipment: There is a circuit breaker panel with an 800 amp main circuit breaker located at the west end of the building next to the electric meter. There are five 200 amp breakers in place designed to protect the five sub panels (one located in the back part of the kitchen and four located in the laundry room). There are also four circuit breakers each labeled A/C designed to protect the four air conditioning units. One additional sub panel was located in the pool mechanical room. This panel is protected by a 100 amp breaker located in one of the four sub panels in the laundry room Each of the four sub panels located in the laundry room is designed to accommodate up to 42 breakers. The two right panels each have 42 breakers installed, limiting their expansion (a few of the breakers installed in these two panels do not have any circuits attached to them, so they can be considered "spares"). The far left panel in the laundry room has 32 breakers installed in it, while the panel to its right has 18 breakers installed in it. This leaves ample room for future expansion. The fifth sub panel, located in the kitchen is also designed to accommodate up to 42 breakers. It has 26 breakers installed (two of which do not have any circuits attached to them), thus leaving space for future expansion. The small panel located in the pool mechanical room was designed to accommodate 24 breakers and it had 24 breakers installed in it. Several of these breakers, mostly associated with the pool equipment, were turned off. This inspector is not allowed to activate any breakers that are in the "off" position and, therefore, those circuits were not able to be evaluated as part of this 9

7) ELECTRICAL continued report. The circuits in the circuit breaker panel located in the pool mechanical room and the two left panels in the laundry room were not fully labeled. Labeling circuits is an important convenience and safety feature. Without all circuits being labeled a complete evaluation of the panel cannot be made. Labeling all circuits in these panels is recommended. SUMMARY: Several unlabeled circuit breakers were observed. Recommendations made. c) Devices and equipment: A reasonable number of visible and accessible receptacles, lights and switches were tested for proper function. There was no Ground Fault Circuit Interrupter (GFCI) protection found for the exterior receptacles located outside the kitchen at the west end of the building. These exterior receptacles should be upgraded for safety reasons. Also, most of the weather proof covers on the exterior receptacles installed on the stone fence posts surrounding the pool were damaged and in need of replacement. These receptacles were turned off at a circuit breaker in the electric panel located in the pool mechanical room. Contact the current manager for information concerning the need for these receptacles being deactivated. A few receptacle cover plates were damaged (including one floor receptacle cover in the large meeting room near the golf pro shop) and should be replaced. One receptacle was loosely installed in the wall to the right of the double doors in the large meeting room (see photo). Better support of this receptacle in the wall is needed. A few switches did not appear to control any device in their immediate location. The current manager should be contacted for additional information concerning the purpose of these switches. Several light fixtures were not functional. It could not be determined if this condition was caused by damaged bulbs or wiring or switch concerns. Further evaluation of these fixtures is recommended. One of the ceiling recessed lights over the dining area was missing its trim. One recessed light fixture was missing in the women's locker room. The roof gutter heat tape, audio video systems, alarm and surveillance systems were not evaluated as part of this inspection. SUMMARY: Several important, but normally easy to remedy light fixture concerns noted and recommendations made. 8) INTERIOR a) Walls and ceilings: The drywall and wood interior was found to be in generally 10

8) INTERIOR continued satisfactory condition. An area of ceiling water damage was visible in the men's locker room (see photo). This was probably due to water leaking from a second floor plumbing fixture or water piping in the ceiling. The previous repairs observed over the toilets would indicate that this concern has existed in the past. The source of the water damage should be investigated and repaired by a qualified plumber. Drywall repairs can also be expected. The ceiling drywall damage observed in the pool mechanical room (see photo) may have been caused by water spraying up from the pool pump and filtration equipment. There were no indications of roof or plumbing leakage observed in the attic space above this damage. Again, drywall repairs should be expected. Contact the current manager for information concerning these damaged areas. Minor defects from normal wear and tear are common and normal and are not included in this report. SUMMARY: Two areas of drywall damage observed. b) Floors: Floor coverings were found to be in generally satisfactory condition with typical wear and tear. c) Windows and doors: A reasonable number of doors and windows were tested for proper function. The screens were missing from windows. Consult with the current manager concerning the whereabouts of these missing screens. The crank handles were missing from the small "awning" type windows. The lock hardware was missing from the exterior door out of the back of the kitchen. The latch hardware was loose on the door into the upper level women's bathroom. Some of the covers on the latch hardware at the top and bottom of one of the front entry double doors (see photo) was missing. Also, the weather stripping between these double doors is in need of 11

8) INTERIOR continued replacement. SUMMARY: Door and window concerns noted and recommendations made. d) Stairways and Railings: The interior stairway was properly protected by handrails and guardrails. The elevator equipment was not fully inspected as part of this report. The current inspection certificate, posted within the elevator car, was dated December of 2015. This elevator should be inspected annually. While the elevator was found to operate, its control button had to be pressed constantly in order to get it to move (whether within the car or outside calling it). This is not normal operation and repairs should be made by a qualified elevator installer. Also, an interior, retractable door is usually installed within the elevator, protecting the occupants from getting clothing or body parts caught between the elevator car and the shaft. This elevator was missing this protection. While this protective door may not be required, liability concerns may exist without it. SUMMARY: Elevator concerns noted and recommendations made. e) Appliances: The dishwasher was not operable at the time of this inspection. The pilot lights on the back cooktop burners were dimly light and reported to blow out regularly. The vent hood over the grill appears to have built up enough grease to be leaking onto the floor behind the left side of the grill (see photo). This vent hood is in need of immediate and regular cleaning. Also, the vent hood fire suppression system inspection records should be obtained to be sure this system has been getting properly inspected by the Fire Marshal or designated contractor. The effectiveness and efficiency of these devices was not determined as part of this inspection. The clothes washer and dryer were not evaluated as part of this report. SUMMARY: Kitchen appliance concerns noted and recommendations made. f) Fireplace/woodstove: The gas fireplace located in the main level lounge appeared to be installed per normal practices and appeared to be in generally satisfactory condition. The chimney assembly associated with this unit should be inspected and cleaned by a qualified chimney sweep at least once each year. SUMMARY: All visible components appeared to be in generally satisfactory condition. 12

9) INSULATION a) The amount of loose fiberglass insulation visible from the attic accesses appeared to be within typical industry standards (approximately R-30). For proper function this type of insulation should not be compressed in any way. The attic areas appeared to have been accessed several times in the past, compressing and displacing some of the insulation. Air trapped in loose insulation plays a major part in the insulation's ability to resist cold air infiltration. When the insulation is compressed, these air pockets are eliminated. Additional insulation may need to be added to compensate for the areas that have been compressed. No insulation has been installed over the access covers. These areas will be cold spots in the ceiling. Adding a section of rolled fiberglass to each of these areas is recommended. The attic area over the kitchen was not able to be accessed or fully evaluated. SUMMARY: Insulation upgrades recommended. 10) VENTILATION a) There appeared to be adequate ventilation in the attic areas as viewed from the attic access openings in the manager's office and the golf pro shop. The vent fan in the upper level men's bathroom did not appear to be active. Further evaluation of this fan assembly is recommended. SUMMARY: One bathroom vent fan appeared to be inactive. Thank you for selecting Alpine Building Consultants, Inc. to perform the inspection of this property. Please call our office if there are any questions concerning this report. Also, we are available to answer any of your future building maintenance questions or to perform a reinspection of this property after work may have been completed. Respectfully, Chuck Lanci Inspector 13