association of unit owners of buckman...

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SCHWINDT & CO. (503) 227-1165PAGE 1 of 60

ASSOCIATION OF UNIT OWNERS OF BUCKMAN CONDOMINIUMS

MAINTENANCE PLAN

RESERVE STUDY

LEVEL II: UPDATE WITH VISUAL SITE INSPECTION

2016

www.schwindtco.com(503) 227-1165

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Executive Summary

Year of Report:

January 1, 2016 to December 31, 2016

Number of Units:

12 Units

Parameters:

Beginning Balance: $42,325

Year 2016 Suggested Contribution: $15,000

Year 2016 Projected Interest Earned: $21

Inflation: 2.50%

Annual Increase to Suggested Contribution: 10.00%

Lowest Cash Balance Over 30 Years (Threshold): $15,726

Average Reserve Assessment per Unit: $104.17

Prior Year’s Actual Contribution: $10,800

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Header & Footer 3

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TABLE OF CONTENTSAssociation of Unit Owners of Buckman Condominiums


Disclosure Information 4 of 60

MAINTENANCE PLAN

Executive Summary of Maintenance Plan 8 of 60

Maintenance Plan 9 of 60

RESERVE STUDY

Property Description 21 of 60

Cash Flow Method - Threshold Funding Model Summary 22 of 60

Cash Flow Method - Threshold Funding Model Projection 23 of 60

Component Summary By Category 24 of 60

Component Summary By Group 26 of 60

Annual Expenditure Detail 27 of 60

Detail Report by Category 33 of 60

Additional Disclosures 57 of 60

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Association of Unit Owners of Buckman CondominiumsMaintenance Plan

Reserve Study – OnsiteDisclosure Information

2016

We have conducted an onsite reserve study update and maintenance plan for the Association of Unit Owners of Buckman Condominiums for the year beginning January 1, 2016, in accordance with guidelines established by Community Associations Institute and the American Institute of Certified Public Accountants.

This reserve study and maintenance plan is in compliance with the legislative changes made in 2007 to ORS Chapters 94 and 100.

We have no other involvement with the Association other than providing the reserve study and maintenance plan.

Schwindt & Company believes that every association should have a complete building envelope inspection within 12 months of completion of all construction and again after 25 years of existence. This inspection must be performed by a licensed building envelope inspector. Ongoing inspections of the property should be performed by a licensed inspector, with the exception of a roof inspection which may be performed by a licensed roofing contractor.

Assumptions used for inflation, interest, and other factors are detailed in page 22. Income tax factors were not considered due to the uncertainty of factors affecting net taxable income and the election of the tax form to be filed.

David T. Schwindt, the representative in charge of this report, is a designated Reserve Study Specialist, Professional Reserve Analyst, and Certified Public Accountant licensed in the states of Oregon, Washington, California, and Arizona.

All information regarding the useful life and cost of reserve components was derived from the Association, local vendors, and/or from various construction pricing and scheduling manuals.

The terms RS Means, National Construction Estimator, and Fannie Mae Expected Useful Life Tables and Forms refer to construction industry estimating databases that are used throughout the industry to establish cost estimates and useful life estimates for common building components and products. We suggest that the Association obtain firm bids for these services.

According to the Declaration, Article 5: “The general common elements consist of all portions of the Condominium that are not part of a unit or a limited common element, including, but not limited to, the following:

5.1 “The land, pathways, driveways, fences, grounds, garage structures and parking areas, except parking spaces designated as Parking Units by this Declaration.”

5.3 “Roofs, foundations, bearing and shear walls, perimeter walls, beams, columns and girders to the interior surfaces thereof, and exterior doors, door frames, windows and window frames.”

5.4 “Stairways, landings, hallways, entrances and exits that are not part of a unit.”

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According to the Declaration, Article 6: “The following shall constitute limited common elements, the use of which shall be restricted to the units to which they pertain: Patios, designated as a limited common element, pertaining to the unit that they adjoin, and storage spaces designated as limited common elements in the Plat, each of which shall pertain to the unit indicated in the attached Exhibit C.”

According to the Declaration, Article 11, Section 11.1: “The necessary work to maintain, repair or replace the common elements shall be the responsibility of the board of directors of the Association and shall be carried out as provided in the Bylaws.”

According to the Bylaws, Article 7, Section 7.1(a): “All maintenance and repairs to any unit shall be made by the owner of such unit, who shall keep the same in good order, condition and repair and shall do all redecorating, painting and staining that at any time may be necessary to maintain the good appearance and condition of the unit. In addition, each owner shall be responsible for the maintenance, repair, or replacement of the interior doors and the forced air furnace, any plumbing, heating or air conditioning fixtures, telephone, water heaters, automatic garage door openers, fans, vents, lighting fixtures and lamps, electrical outlets, blinds, garbage disposals, fireplaces, refrigerators, dishwashers, ranges, or other appliances that may be in or connected with such owner’s unit.”

According to the Bylaws, Article 7, Section 7.1(b): “All maintenance, repairs and replacement to the general and limited common elements and to Association property shall be made by the Association and shall be charged to all unit owners as a common expense.”

An earthquake insurance deductible is not included in the reserve study.

This study uses information provided by the Association. Factual data may include measurements, component listings and other relevant information. As such, Schwindt & Co. accepts no responsibility for such information. Had we performed a Level I reserve study, Schwindt & Co. would have collected and analyzed such data and would have taken responsibility for the presentation of the reserve study taken as a whole.

We are not aware of any material issues which, if not disclosed, would cause a material distortion of this report.

Certain information, such as the beginning balance of reserve funds and other information as detailed on the component detail reports, was provided by Association representatives and is deemed to be reliable by us. This reserve study is a reflection of the information provided to us and cannot be used for the purpose of performing an audit, a quality/forensic analysis, or background checks of historical records.

Site visits should not be considered a project audit or quality inspection of the Association’s property. This site visit does not evaluate the condition of the property to determine the useful life or needed repairs. Schwindt & Company suggests that the Association perform a building envelope inspection to determine the condition, performance, and the useful life of all the components.

Certain costs outlined in the reserve study are subjective and, as a result, are for planning purposes only. The Association should obtain firm bids at the time of work. Actual costs will depend upon the scope of work as defined at the time the repair, replacement, or restoration is performed. All estimates relating to future work are good faith estimates and projections are based on the estimated inflation rate, which may or may not prove accurate. All future costs and life expectancies should be reviewed and adjusted annually.

This reserve study, unless specifically stated in the report, assumes no fungi, mold, asbestos, lead paint, urea-formaldehyde foam insulation, termite control substances, other chemicals, toxic wastes, radon gas, electro-magnetic radiation or other potentially hazardous materials (on the surface or sub-surface), or termites on the property. The existence of any of these substances may adversely affect the accuracy of this reserve study. Schwindt & Company assumes no responsibility regarding such conditions, as we are not qualified to detect substances, determine the impact, or develop remediation plans/costs.

Since destructive testing was not performed, this reserve study does not attempt to address latent and/or patent defects. Neither does it address useful life expectancies that are abnormally short due either to improper design, installation, nor to subsequent improper maintenance. This reserve study assumes all components will be reasonably maintained for the remainder of their life expectancy.

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Physical Analysis:

New projects generally include information provided by developers and/or refer to drawings.

Full onsite reserve studies generally include field measurements and do not include destructive testing. Drawings are usually not available for existing projects.

Onsite updates generally include observations of physical characteristics, but do not include field measurements.

Please note that the Association has not had a complete building envelope inspection. The effects of not having information relating to this inspection are not known.

This 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 homeowners to pay on demand (as a special assessment) their share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component.

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MAINTENANCE PLAN

2016

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Association of Unit Owners of Buckman Condominiums Executive Summary of Maintenance Plan


Regular maintenance of common elements is necessary to insure the maximum useful life and optimum performance of components. Of particular concern are items that may present a safety hazard to residents or guests if they are not maintained in a timely manner and components that perform a water-proofing function.

This maintenance plan is a cyclical plan that calls for maintenance at regular intervals. The frequency of the maintenance activity and the cost of the activity at the first instance follow a short descriptive narrative. This maintenance plan should be reviewed on an annual basis when preparing the annual operating budget for the Association.

Checklists, developed by Reed Construction Data, Inc., can be photocopied or accessed from the RS Means website:

http://www.rsmeans.com/supplement/67346.asp

They can be used to assess and document the existing condition of an Association’s common elements and to track the carrying out of planned maintenance activities.

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Association of Unit Owners of Buckman CondominiumsMaintenance Plan

2016

Pursuant to Oregon State Statutes Chapters 94 and 100, which require a maintenance plan as an integral part of the reserve study, the maintenance procedures are as follows:

The Board of Directors should refer to this maintenance plan each year when preparing the annual operating budget for the Association to ensure that annual maintenance costs are included in the budget for the years that they are scheduled.

Property Inspection

Schwindt & Company recommends that a provision for the annual inspection of common area components be included in the maintenance plan for all associations. This valuable management tool will help to ensure that all components achieve a maximum useful life expectancy and that they function as intended throughout their lifespan.

This inspection process should include a careful visual review of the waterproofing membrane on the balcony.

The inspection should be performed by a qualified professional and should include a written summary of conclusions with specific recommendations for any needed repairs or maintenance.

We suggest that the Association obtain firm bids for this service.

This expense should be included in the annual operating budget for the Association.

Frequency: Annually

Building Envelope Inspection

Schwindt & Company recommends that all associations perform a building envelope inspection within 12 months of substantial completion of all construction or immediately upon detection of any water intrusion or mold problems. This inspection process may involve invasive testing if the problems detected are serious enough to warrant such measures.

The inspection should be performed by an architect, engineer, or state-licensed inspector who is specifically trained in forensic waterproofing analysis. The report should include a written summary of findings with recommendations for needed repairs or maintenance procedures.

All reserve studies and maintenance plans prepared by Schwindt & Company assume that any such recommendations will be followed and that all work will be performed by qualified professionals.

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A complete envelope inspection will usually be required only one time although a visual review of the building exterior may be advisable on a periodic basis under certain circumstances. The Association should consult with the inspector(s) who performed the original assessment to determine the best course of action for their individual situation.

This expense should be included in the annual operating budget for the Association for the year in which it is scheduled. We suggest that the Association obtain firm bids for this service.

Frequency: Once

Roof Inspection

Schwindt & Company recommends that a provision for the periodic inspection and maintenance of roofing and related components be included in the maintenance plan for all associations.

The frequency of this inspection will vary based on the age, condition, complexity, and remaining useful life of the roof system. As the roof components become older, the Association is well advised to consider increasing the frequency of this critical procedure.

The inspection should be performed by a qualified roofing professional and should include a written summary of conclusions with specific recommendations for any needed repairs or maintenance. Recommended maintenance should be performed promptly by a licensed roofing contractor.



Frequency: Refer to roof warranty for frequency

Lighting: Exterior – Inspection/Maintenance

Note: Replacement of flickering or burned-out bulbs should be immediate.

Lighting is a crucial element in the provision of safety and security. All lighting systems should be inspected frequently and care must be taken to identify and correct deficiencies.

Various fixture may be used according to area needs. Lighting systems should be designed to provide maximum, appropriate illumination at minimal energy expenditures. Lighting maintenance processes should include a general awareness of factors that cause malfunctions in lighting systems, such as dirt accumulation and lumen depreciation. It is important to fully wash, rather than dry-wipe, exterior surfaces to reclaim light and prevent further deterioration.

Deficiencies, required maintenance, and required repairs after completion of the review should be noted by the maintenance contractor and/or association representatives.

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Repairs and inspections should be completed by a qualified professional.

This expense should be included in the annual operating budget for the Association as general property maintenance expense.

Frequency: Bi-Weekly

Concrete Deck

The concrete deck should be carefully checked, particularly concrete, on a monthly basis. Concrete should be reviewed for deficiencies such as alkali-aggregate expansion, honeycombing, chips, cracks, stains, lifted areas, tripping hazards, and/or unevenness. Railings should be reviewed for stability, hardware, and overall condition. Footing/foundation should be reviewed for stability and overall condition deficiencies, such as cracks and broken or missing components. A safety review should include, but not be limited to, the sufficient distance maintained between flammables and other surfaces, as well as the overall condition of access points such as doors, windows, screens and thresholds.

Maintenance of the decks includes cleaning, repairing, and applying a top coat to the exposed surfaces with appropriate sealer. Drains should be cleaned and checked for free flow. Flashings, grout and other water resistive details should be renewed as needed to ensure that the tiled surface areas on the decks remain water-tight.

Frequency: Every 5 years, beginning in 2015

Hot Water Heater – Inspection/Maintenance

Maintenance of the hot water heater includes regularly scheduled inspections and maintenance.

The water heater and related components should be checked for water leaks and fuel supply leaks. The water heater and related components should also be checked for proper operation and settings. Filters should be changed and all components serviced as required. The surrounding area should be cleaned at the time of servicing.


Inspections and maintenance should be performed by a qualified, licensed service provider.

We understand that this expense should be included in the annual operating budget for the Association.

Frequency: Monthly to Annually

Property Entrance - Review

The property entrance is a significant reflection on the development as a whole and is often the first stop in the development for residents, prospective residents or buyers, and visitors. The area should be consistently clean, functional, and accessible

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This expense should be included in the annual operating budget for the Association as general property maintenance expense.

Frequency: Monthly

Windows & Doors

Exterior window and door casings, sashes, and frames should be inspected annually for twisting, cracking, deterioration, or other signs of distress. Hardware and weather stripping should be checked for proper operation and fit. Gaskets and seals should be reviewed for signs of moisture intrusion. Weep holes should be cleaned. These building envelope components should be repaired and replaced as necessary.

Frequency: Monthly

Wood Fence – Inspection

The wood fence located should be checked semi-annually for overall integrity and safety. The overall condition of the fence should be checked for deficiencies such as vegetation encroachment, debris buildup, holes, sagging areas, missing segments, rot, fungus, and/or vandalism.


Frequency: Semiannually

Gutters & Downspouts

Schwindt & Company recommends that all gutters and downspouts be cleaned, visually inspected, and repaired as required every six months in the spring and fall.

This important maintenance procedure will help to ensure that the gutters and downspouts are free-flowing at all times, thus preventing the backup of water within the drainage system. Such backup can lead to water ingress issues along the roof edges, around scuppers or other roof penetrations, and at sheet metal flashing or transition points that rely on quick and continuous discharge of water from surrounding roof surfaces to maintain a watertight building exterior.


Frequency: Semiannually, more often if necessary

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Exterior Walls

The siding, trim, and other wood building components should be inspected for loose, missing, cracked or otherwise damaged components. Sealant joints should be checked for missing or cracked sealant.

Painted surfaces should be checked for paint deterioration, bubbling, or other signs of deterioration.

Dryer vents should be checked twice a year and cleared of lint. Also check operation of exhaust baffles to make sure they are present and that they move freely. Exhaust ducts should be cleared of debris every 3 years.

The payment for maintenance and the performance of maintenance repair of dryer vents, exhaust baffles, and exhaust ducts is solely the responsibility of the owners.

Any penetrations of the building envelope such as utility lines and light fixtures should be checked annually for signs of water intrusion. Hose bibs should be checked for leaks and other failures. Each hose bib should be shut off and drained during the winter to prevent damage from freezing.

The payment for and performance of maintenance and repair of all outlets of utility service lines, including water, sewerage, gas or electricity is solely the responsibility of the Owners.

Annual inspections to check for signs of water intrusion should be made of the building envelope interfaces such as where the windows intersect with the walls and where the walls intersect with the roof.


Inspections should be made by a qualified professional.


Frequency: Annually

Fire Extinguishers – Common Areas Only

The following annual preventive maintenance checklist is for the fire extinguishers located in the common areas.. This inspection and certification must be conducted by a licensed specialty contractor and should be scheduled in advance to ensure that the date on extinguishers will not expire. Monthly inspections of fire extinguishers’ general condition, housing, and locations per code should be conducted as part of preventive maintenance procedures. In addition to the annual preventive maintenance tasks outlined below, check the pressure and weight of each extinguisher in the facility every 6 months, according to its manufacturer’s label. If the pressure is below the recommended minimum or if the extinguisher has been used, it should be recharged. Consult the National Fire Protect Association’s (NFPA) Standard 10 for the specific requirements regarding the proper locations of fire extinguishers and signage.

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Annual preventive maintenance checklist consists of the following: certification; housing condition; hose condition; proper location per code; count per code; and overall condition.


Frequency: Annually

Trees - Maintenance

The Association will be responsible for trimming trees in the common area throughout the property. Trees and shrubs should be kept clear of the building components.


This expense is included in the Association’s operating budget.

Frequency: Annually

Landscape Maintenance

The Association will be responsible for maintenance and upkeep of common area landscape throughout the property. This may include mowing lawn, removal of weeds, and dead-heading of flowers. Landscape techniques vary depending on the foliage and season.


This expense should be included in the Association’s operating budget.

Frequency: Annually

Lawn Irrigation System

Periodic maintenance to the lawn irrigation system should be anticipated with this type of component. These maintenance procedures will include replacement of the control mechanism, replacement of damaged piping, upgrading of sprinkler heads and valve components, and any other work that is advised by repair professionals.

In recent years, improvements have been made to this type of system which has increased the efficiency of the water distribution process. Such improvements can be expected to continue to be made and the owners of such systems are well advised to plan on periodic upgrades to maintain the efficiency of their systems.

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Lawn irrigation systems also require periodic testing to ensure proper operation. Sometimes this testing is mandated by ordinance or building codes. All work on lawn irrigation systems must be performed by licensed contractors who specialize in this type of work.


Frequency: Annually

Sewer Laterals – Inspection/Maintenance

All drain lines in the facility connect to the main drain, which is referred to as the “sewer”, beyond the foundation. All sewer lines outside of the foundation have cleanout points at various locations. Reaming from these points requires the use of a high power hose, hydro-jet, or power equipment. Sewer laterals should be annually reamed from clean-out points by in-house personnel.

Inspections and maintenance should be performed by a qualified, licensed service provider.


Frequency: Annually

Storm Drains

Storm drains or sewers are underground systems used to collect and dispose of surface water. They carry large quantities of water away from paved surface areas, and should be kept clean to prevent the accumulation of dirt and debris. They should be cleaned and flushed annually to ensure blockages are removed and piping is functional. If drains tend to become clogged frequently, they should be inspected and cleaned more often.


This expense should be included in the annual operating budget for the Association as a general property maintenance expense.

Frequency: Annually

Exterior Painting

Maintenance of the exterior siding includes regularly scheduled cleaning and inspection of the surface areas for cracks, peeling paint or other sealants, deterioration of the base material, and failure of caulking or other sealant materials that serve a waterproofing function.

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This maintenance provision is for the periodic painting of the exterior wood siding and trim. The siding should be cleaned, repaired as required, and primed and painted with premium quality exterior house paint in accordance with the siding manufacturer’s specifications. The work should be performed by a qualified, licensed painting contractor.

This expense is included in the reserve study for the Association.


Metal Railings – Painting

The exterior railings located at the deck perimeters should be cleaned and painted on a periodic basis to prevent deterioration of the metal material due to rust and oxidation.

The work should be performed by a qualified, licensed painting contractor.



Interior Paint

The interior painted surfaces of the common entries and basement area should be cleaned, repaired as required, primed and painted with premium quality interior house paint in accordance with the manufacturer’s specifications. The work should be performed by a qualified, licensed painting contractor.



Brick & Mortar - Clean & Seal

Maintenance will include cleaning and repairing any damaged surface areas, repair of the mortar joints as required, and the application of a suitable masonry sealer.

It is recommended that the same type of sealer be used on subsequent renewals as this will minimize the chance that incompatible materials will be used.



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Brick Repointing

Repointing brick improves water penetration resistance and will increase the life of the component.

Defective mortar should be removed, the joints cleaned and repointed with the appropriate type mortar, and a suitable sealer applied. It is recommended that the same type of sealer be used on subsequent renewals as this will minimize the chance that incompatible materials will be used.

This work should be performed by a licensed brick mason.



Concrete Pavement

Maintenance of the concrete pavement should include cleaning the surface areas with pressure washing equipment. The pavement should also be visually reviewed for signs of undue stress and cracking. Noticeable cracks should be filled with a suitable concrete crack filler to prevent penetration of moisture below the concrete surface which will undermine the integrity of the base material over time.

This maintenance plan is designed to preserve and extend the useful life of assets and is dependent upon proper inspection and follow up procedures.

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RESERVE STUDY

LEVEL II: UPDATE WITH VISUAL SITE INSPECTION

2016

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Association of Unit Owners of Buckman Condominiums Category Detail Index


Asset IDDescription Replacement Page

Roofing1009 Roof - Composition - Replacement 2025 33 of 60

Painting1026 Concrete Deck Membrane - Recoat 2016 34 of 601018 Interior Painting 2018 34 of 601016 Metal Railings - Painting 2018 35 of 601006 Paint - Exterior (I) 2018 35 of 601038 Paint - Exterior (II) 2048 36 of 60

Building Components1001 Brick & Mortar - Clean & Seal 2016 37 of 601029 Brick & Mortar - Repoint 2016 37 of 601028 Concrete Siding - Repairs 2018 38 of 601027 Gutters and Downspouts - Partial Replacement 2025 38 of 601015 Metal Railings - Partial Replacement 2036 39 of 601010 Siding & Trim - Repairs 2018 39 of 601036 Siding & Trim - Replacement 2042 40 of 60

Fencing/Security1030 Wood Fence - Replacement 2016 41 of 60

Equipment1002 Hot Water Heaters - Replacement 2027 42 of 60

Interior Furnishings1013 Hardwood Flooring (Common Entry Area) - Refinish 2021 43 of 601014 Hardwood Flooring (Common Entry Area) - Replac.. 2041 43 of 601023 Interior Wood Railings - Replacement 2029 44 of 601011 Rug - Stairwell - Replacement 2019 44 of 60

Lighting1017 Interior Lights - Replacements 2019 45 of 601025 Light Post - Exterior - Replacement 2024 45 of 601005 Lights - Exterior - Replacement 2024 46 of 60

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Association of Unit Owners of Buckman Condominiums Category Detail Index


Asset IDDescription Replacement Page

Fire Extinquishers1020 Fire Extinguishers - Replacement 2019 47 of 60

Grounds Components1024 Concrete - Partial Replacement 2016 48 of 601022 Exterior Wood Railings - Replacement 2022 48 of 601004 Irrigation System - Component Replacements 2019 49 of 601012 Landscape Renovation/Tree Removal 2022 49 of 60

Doors and Windows1019 Doors - Replacement 2029 51 of 601039 Garage Doors - Replacement 2035 51 of 601021 Windows - Replacement 2032 52 of 60

Inspections1035 Electrical Study 2021 53 of 601034 Plumbing Study 2023 53 of 60

Reserve Study1031 Reserve Study Update (Off Site) 2016 54 of 601032 Reserve Study Update (On Site) 2020 54 of 60

Contingency1003 Insurance - Deductible 2016 55 of 60

Furniture1033 Outdoor Furniture - Replacement 2019 56 of 60

Total Funded Assets 36Total Unfunded Assets 0Total Assets 36

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Association of Unit Owners of Buckman Condominiums Property Description


The Association of Unit Owners of Buckman Condominiums consists of one building with 12 units located in Portland, Oregon. The building is two stories with a partial basement. The building is of wood frame construction with wood and brick siding and a composition roof. The building was constructed in 1949 and converted in 2004 to a condominium. In addition to the 12 Living Units, there are 4 Parking Units. The Association shall provide exterior improvements upon each unit, such as paint, maintenance, repair and replacement of roofs, gutters, downspouts, rain drains, and exterior building surfaces including windows and window frames, exterior doors and door frames. The individual homeowners are responsible for all maintenance and repairs of the interior of their home.

This study uses information supplied by the Association, vendors and various construction pricing and scheduling manuals to determine useful lives and replacement costs. Factual data may include measurements, component listings and other relevant information. As such, Schwindt & Co. accepts no responsibility for such information. Had we performed a Level I reserve study, Schwindt & Co. would have collected and analyzed such data and would have taken responsibility for the presentation of the reserve study taken as a whole.

A site visit was performed by Schwindt & Company in 2015. Schwindt & Co did not investigate components for defects, materials, design or workmanship. This would ordinarily be considered in a complete building envelope inspection. Our condition assessment considers if the component is wearing as intended. All components are considered to be in fair condition and appear to be wearing as intended unless noted otherwise in the component detail.

Funds are being accumulated in the replacement fund based on estimates of future need for repairs and replacement of common property components. Actual expenditures, investment income, and provisions for income taxes however, may vary from estimated amounts, and variations may be material. Therefore, amounts accumulated in the replacement fund may not be adequate to meet future funding needs.

If additional funds are needed, the Association has the right, subject to board approval, to increase regular assessments, levy special assessments, otherwise the Association may delay repairs or replacements until funds are available.

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Association of Unit Owners of Buckman CondominiumsPortland, Oregon

Cash Flow Method - Threshold Funding Model Summary


Report Date December 28, 2015Account Number 2buckc

Budget Year Beginning January 01, 2016Budget Year Ending December 31, 2016

Total Units 12

Report Parameters

Inflation 2.50%

Interest Rate on Reserve Deposit 0.10%

2016 Beginning Balance $42,325.00

Threshold Funding Fully Reserved Model Summary

This study utilizes the cash flow method and the threshold funding model, which establishes a reserve funding goal that keeps the reserve balance above a specified dollar or percent funded amount. The threshold method assumes that the threshold method is funded with a positive threshold balance, therefore, "fully reserved".

The following items were not included in the analysis because they have useful lives greater than 30 years: grading/drainage; foundation/footings; storm drains; telephone, cable, and internet lines.

This funding scenario begins with a contribution of $15,000 in 2016 and increases 10.00% to 2019. In 2020, the contribution is $21,961 and increases 3.25% for the remaining years of the study. A minimum balance of $15,726 is maintained.

The reserve study cash flow model includes an annual increase in the required contribution over the 30 year period. Since the current Board and membership only has the authority to obligate the Association for the current budget year, the cash flow model relies on the actions of future Boards to adhere to the required increase in the annual reserve contribution. Because of the possibility that future Boards, due to budgetary constraints, are not able to increase the reserve contribution to the required amount to provide for adequate funding, the Association may be at risk in the future of special assessing the members to fund needed expenditures.

The purpose of this study is to insure that adequate replacement funds are available when components reach the end of their useful life. Components will be replaced as required, not necessarily in their expected replacement year. This analysis should be updated annually.

Cash Flow Method - Threshold Funding Model Summary of Calculations

Required Month Contribution $1,250.00$104.17 per unit monthly

Average Net Month Interest Earned $1.77Total Month Allocation to Reserves $1,251.77

$104.31 per unit monthly

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Association of Unit Owners of Buckman Condominiums Cash Flow Method - Threshold Funding Model Projection


Beginning Balance: $42,325Projected

Annual Annual Annual EndingYear Contribution Interest Expenditures Reserves

2016 15,000 21 29,261 28,0852017 16,500 36 717 43,9042018 18,150 7 46,336 15,7262019 19,965 19 7,700 28,0102020 21,961 39 1,214 48,7962021 22,675 46 14,652 56,8662022 23,412 60 9,509 70,8292023 24,173 71 12,719 82,3542024 24,959 40 56,288 51,0642025 25,770 31 34,061 42,8032026 26,607 55 1,856 67,6102027 27,472 78 4,305 90,8552028 28,365 101 5,318 114,0022029 29,287 103 27,157 116,2352030 30,239 73 59,696 86,8512031 31,221 70 33,521 84,6222032 32,236 10 92,336 24,5312033 33,284 42 1,065 56,7922034 34,366 63 12,711 78,5092035 35,482 90 8,153 105,9272036 36,636 53 72,490 70,1262037 37,826 79 12,093 95,9382038 39,056 112 5,086 130,0192039 40,325 151 1,235 169,2602040 41,635 188 3,798 207,2852041 42,989 209 21,228 229,2552042 44,386 90 162,953 110,7792043 45,828 134 1,363 155,3782044 47,318 171 10,082 192,7842045 48,856 164 55,814 185,990

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Association of Unit Owners of Buckman Condominiums Component Summary By Category


Serv

ice

Dat

e in

Year

Repla

cem

ent

Use

ful

Adj

ustm

ent

Remai

ning

Uni

ts

Cost

Uni

t

Cost

Curre

nt

Description

RoofingRoof - Composition - Replacement 2004 2025 20 1 9 6,065 SF 4.00 24,260 Roofing - Total $24,260

PaintingConcrete Deck Membrane - Recoat 2004 2016 5 7 0 1 Total 750.00 750Interior Painting 2004 2018 10 4 2 1,503 SF 1.50 2,254Metal Railings - Painting 2012 2018 6 0 2 80 LF 10.00 800Paint - Exterior (I) 2012 2018 6 0 2 1 Total 18,671.00 18,671Paint - Exterior (II) 2042 2048 6 6 32 1 Total 18,671.00 18,671 Painting - Total $41,146

Building ComponentsBrick & Mortar - Clean & Seal 2004 2016 6 6 0 1 Total 1,000.00 1,000Brick & Mortar - Repoint 2004 2016 25 -13 0 400 SF 10.00 4,000Concrete Siding - Repairs 2012 2018 6 0 2 168 SF 10.00 1,680Gutters and Downspouts - Partial Replace.. 2004 2025 20 1 9 319 LF 6.00 1,914Metal Railings - Partial Replacement 2004 2036 30 2 20 40 LF 41.00 1,640Siding & Trim - Repairs 2012 2018 6 0 2 1,999 SF 10.00 19,997Siding & Trim - Replacement 2036 2042 25 6 26 7,999 SF 10.00 79,990 Building Components - Total $110,221

Fencing/SecurityWood Fence - Replacement 2004 2016 15 -3 0 100 LF 40.00 4,000 Fencing/Security - Total $4,000

EquipmentHot Water Heaters - Replacement 2012 2027 15 0 11 2 Each 1,290.65 2,581 Equipment - Total $2,581

Interior FurnishingsHardwood Flooring (Common Entry Area).. 2011 2021 10 0 5 300 SF 5.00 1,500Hardwood Flooring (Common Entry Area).. 2004 2041 30 7 25 300 SF 20.00 6,000Interior Wood Railings - Replacement 2004 2029 25 0 13 1 Total 1,500.00 1,500Rug - Stairwell - Replacement 2004 2019 15 0 3 1 Total 1,000.00 1,000 Interior Furnishings - Total $10,000

LightingInterior Lights - Replacements 2004 2019 15 0 3 10 Each 100.00 1,000Light Post - Exterior - Replacement 2004 2024 20 0 8 1 Each 300.00 300Lights - Exterior - Replacement 2004 2024 20 0 8 27 Each 150.00 4,050 Lighting - Total $5,350

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Association of Unit Owners of Buckman Condominiums Component Summary By Category


Serv

ice

Dat

e in

Year

Repla

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Use

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Adj

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Remai

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Uni

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Cost

Uni

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Cost

Curre

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Description

Fire ExtinquishersFire Extinguishers - Replacement 2004 2019 15 0 3 3 Each 150.00 450 Fire Extinquishers - Total $450

Grounds ComponentsConcrete - Partial Replacement 2004 2016 15 -3 0 1,619 SF 10.00 16,195Exterior Wood Railings - Replacement 2004 2022 15 3 6 1 Total 1,500.00 1,500Irrigation System - Component Replaceme.. 2004 2019 15 0 3 1 Total 1,000.00 1,000Landscape Renovation/Tree Removal 2004 2022 15 3 6 1 Total 5,000.00 5,000 Grounds Components - Total $23,695

Doors and WindowsDoors - Replacement 2004 2029 25 0 13 35 Each 500.00 17,500Garage Doors - Replacement 2004 2035 25 6 19 4 Each 1,000.00 4,000Windows - Replacement 2004 2032 25 3 16 123 Each 500.00 61,500 Doors and Windows - Total $83,000

InspectionsElectrical Study 1949 2021 1 71 5 1 Total 10,000.00 10,000Plumbing Study 1949 2023 1 73 7 1 Total 10,000.00 10,000 Inspections - Total $20,000

Reserve StudyReserve Study Update (Off Site) 2015 2016 1 0 0 1 Total 700.00 700Reserve Study Update (On Site) 2015 2020 5 0 4 1 Total 1,100.00 1,100 Reserve Study - Total $1,800

ContingencyInsurance - Deductible 2015 2016 1 0 0 1 Total 2,616.00 2,616 Contingency - Total $2,616

FurnitureOutdoor Furniture - Replacement 2004 2019 15 0 3 1 Total 3,000.00 3,000 Furniture - Total $3,000

Total Asset Summary $332,120

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Association of Unit Owners of Buckman Condominiums Component Summary By Group


Serv

ice

Dat

e in

Year

Repla

cem

ent

Use

ful

Adj

ustm

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Remai

ning

Uni

ts

Cost

Uni

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Cost

Curre

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Description

Brick & Mortar - Clean & Seal 2004 2016 6 6 0 1 Total 1,000.00 1,000Brick & Mortar - Repoint 2004 2016 25 -13 0 400 SF 10.00 4,000Concrete - Partial Replacement 2004 2016 15 -3 0 1,619 SF 10.00 16,195Concrete Deck Membrane - Recoat 2004 2016 5 7 0 1 Total 750.00 750Insurance - Deductible 2015 2016 1 0 0 1 Total 2,616.00 2,616Reserve Study Update (Off Site) 2015 2016 1 0 0 1 Total 700.00 700Wood Fence - Replacement 2004 2016 15 -3 0 100 LF 40.00 4,000Concrete Siding - Repairs 2012 2018 6 0 2 168 SF 10.00 1,680Interior Painting 2004 2018 10 4 2 1,503 SF 1.50 2,254Metal Railings - Painting 2012 2018 6 0 2 80 LF 10.00 800Paint - Exterior (I) 2012 2018 6 0 2 1 Total 18,671.00 18,671Siding & Trim - Repairs 2012 2018 6 0 2 1,999 SF 10.00 19,997Fire Extinguishers - Replacement 2004 2019 15 0 3 3 Each 150.00 450Interior Lights - Replacements 2004 2019 15 0 3 10 Each 100.00 1,000Irrigation System - Component Replaceme.. 2004 2019 15 0 3 1 Total 1,000.00 1,000Outdoor Furniture - Replacement 2004 2019 15 0 3 1 Total 3,000.00 3,000Rug - Stairwell - Replacement 2004 2019 15 0 3 1 Total 1,000.00 1,000Reserve Study Update (On Site) 2015 2020 5 0 4 1 Total 1,100.00 1,100Electrical Study 1949 2021 1 71 5 1 Total 10,000.00 10,000Hardwood Flooring (Common Entry Area).. 2011 2021 10 0 5 300 SF 5.00 1,500Exterior Wood Railings - Replacement 2004 2022 15 3 6 1 Total 1,500.00 1,500Landscape Renovation/Tree Removal 2004 2022 15 3 6 1 Total 5,000.00 5,000Plumbing Study 1949 2023 1 73 7 1 Total 10,000.00 10,000Light Post - Exterior - Replacement 2004 2024 20 0 8 1 Each 300.00 300Lights - Exterior - Replacement 2004 2024 20 0 8 27 Each 150.00 4,050Gutters and Downspouts - Partial Replace.. 2004 2025 20 1 9 319 LF 6.00 1,914Roof - Composition - Replacement 2004 2025 20 1 9 6,065 SF 4.00 24,260Hot Water Heaters - Replacement 2012 2027 15 0 11 2 Each 1,290.65 2,581Doors - Replacement 2004 2029 25 0 13 35 Each 500.00 17,500Interior Wood Railings - Replacement 2004 2029 25 0 13 1 Total 1,500.00 1,500Windows - Replacement 2004 2032 25 3 16 123 Each 500.00 61,500Garage Doors - Replacement 2004 2035 25 6 19 4 Each 1,000.00 4,000Metal Railings - Partial Replacement 2004 2036 30 2 20 40 LF 41.00 1,640Hardwood Flooring (Common Entry Area).. 2004 2041 30 7 25 300 SF 20.00 6,000Siding & Trim - Replacement 2036 2042 25 6 26 7,999 SF 10.00 79,990Paint - Exterior (II) 2042 2048 6 6 32 1 Total 18,671.00 18,671Total Asset Summary $332,120

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Association of Unit Owners of Buckman Condominiums Annual Expenditure Detail


Description Expenditures

Replacement Year 2016Brick & Mortar - Clean & Seal 1,000Brick & Mortar - Repoint 4,000Concrete - Partial Replacement 16,195Concrete Deck Membrane - Recoat 750Insurance - Deductible 2,616Reserve Study Update (Off Site) 700Wood Fence - Replacement 4,000

Total for 2016 $29,261

Replacement Year 2017Reserve Study Update (Off Site) 717

Total for 2017 $717

Replacement Year 2018Concrete Siding - Repairs 1,765Interior Painting 2,369Metal Railings - Painting 840Paint - Exterior (I) 19,616Reserve Study Update (Off Site) 735Siding & Trim - Repairs 21,010

Total for 2018 $46,336

Replacement Year 2019Fire Extinguishers - Replacement 485Interior Lights - Replacements 1,077Irrigation System - Component Replacements 1,077Outdoor Furniture - Replacement 3,231Reserve Study Update (Off Site) 754Rug - Stairwell - Replacement 1,077

Total for 2019 $7,700

Replacement Year 2020Reserve Study Update (On Site) 1,214

Total for 2020 $1,214

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Replacement Year 2021Concrete Deck Membrane - Recoat 849Electrical Study 11,314Hardwood Flooring (Common Entry Area) - Refinish 1,697Reserve Study Update (Off Site) 792

Total for 2021 $14,652

Replacement Year 2022Brick & Mortar - Clean & Seal 1,160Exterior Wood Railings - Replacement 1,740Landscape Renovation/Tree Removal 5,798Reserve Study Update (Off Site) 812

Total for 2022 $9,509

Replacement Year 2023Plumbing Study 11,887Reserve Study Update (Off Site) 832

Total for 2023 $12,719

Replacement Year 2024Concrete Siding - Repairs 2,047Light Post - Exterior - Replacement 366Lights - Exterior - Replacement 4,935Metal Railings - Painting 975Paint - Exterior (I) 22,749Reserve Study Update (Off Site) 853Siding & Trim - Repairs 24,365

Total for 2024 $56,288

Replacement Year 2025Gutters and Downspouts - Partial Replacement 2,390Reserve Study Update (On Site) 1,374Roof - Composition - Replacement 30,297

Total for 2025 $34,061

Replacement Year 2026Concrete Deck Membrane - Recoat 960

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Replacement Year 2026 continued...Reserve Study Update (Off Site) 896

Total for 2026 $1,856

Replacement Year 2027Hot Water Heaters - Replacement 3,387Reserve Study Update (Off Site) 918

Total for 2027 $4,305

Replacement Year 2028Brick & Mortar - Clean & Seal 1,345Interior Painting 3,032Reserve Study Update (Off Site) 941

Total for 2028 $5,318

Replacement Year 2029Doors - Replacement 24,124Interior Wood Railings - Replacement 2,068Reserve Study Update (Off Site) 965

Total for 2029 $27,157

Replacement Year 2030Concrete Siding - Repairs 2,374Metal Railings - Painting 1,130Paint - Exterior (I) 26,382Reserve Study Update (On Site) 1,554Siding & Trim - Repairs 28,256

Total for 2030 $59,696

Replacement Year 2031Concrete - Partial Replacement 23,455Concrete Deck Membrane - Recoat 1,086Hardwood Flooring (Common Entry Area) - Refinish 2,172Reserve Study Update (Off Site) 1,014Wood Fence - Replacement 5,793

Total for 2031 $33,521

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Replacement Year 2032Reserve Study Update (Off Site) 1,039Windows - Replacement 91,297

Total for 2032 $92,336

Replacement Year 2033Reserve Study Update (Off Site) 1,065

Total for 2033 $1,065

Replacement Year 2034Brick & Mortar - Clean & Seal 1,560Fire Extinguishers - Replacement 702Interior Lights - Replacements 1,560Irrigation System - Component Replacements 1,560Outdoor Furniture - Replacement 4,679Reserve Study Update (Off Site) 1,092Rug - Stairwell - Replacement 1,560

Total for 2034 $12,711

Replacement Year 2035Garage Doors - Replacement 6,395Reserve Study Update (On Site) 1,759

Total for 2035 $8,153

Replacement Year 2036Concrete Deck Membrane - Recoat 1,229Concrete Siding - Repairs 2,753Metal Railings - Painting 1,311Metal Railings - Partial Replacement 2,687Paint - Exterior (I) 30,595Reserve Study Update (Off Site) 1,147Siding & Trim - Repairs 32,768

Total for 2036 $72,490

Replacement Year 2037Exterior Wood Railings - Replacement 2,519

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Replacement Year 2037 continued...Landscape Renovation/Tree Removal 8,398Reserve Study Update (Off Site) 1,176

Total for 2037 $12,093

Replacement Year 2038Interior Painting 3,881Reserve Study Update (Off Site) 1,205

Total for 2038 $5,086


Total for 2039 $1,235

Replacement Year 2040Brick & Mortar - Clean & Seal 1,809Reserve Study Update (On Site) 1,990

Total for 2040 $3,798

Replacement Year 2041Brick & Mortar - Repoint 7,416Concrete Deck Membrane - Recoat 1,390Hardwood Flooring (Common Entry Area) - Replacement 11,124Reserve Study Update (Off Site) 1,298

Total for 2041 $21,228

Replacement Year 2042Concrete Siding - Repairs 3,192Hot Water Heaters - Replacement 4,905Metal Railings - Painting 1,520Reserve Study Update (Off Site) 1,330Siding & Trim - Replacement 152,004

Total for 2042 $162,953


Total for 2043 $1,363

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Replacement Year 2044Light Post - Exterior - Replacement 599Lights - Exterior - Replacement 8,086Reserve Study Update (Off Site) 1,398

Total for 2044 $10,082

Replacement Year 2045Gutters and Downspouts - Partial Replacement 3,917Reserve Study Update (On Site) 2,251Roof - Composition - Replacement 49,646

Total for 2045 $55,814

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Association of Unit Owners of Buckman Condominiums Detail Report by Category


Roof - Composition - ReplacementAsset ID 1009

CapitalRoofing

Placed in Service January 2004Useful Life 20Adjustment 1

Replacement Year 2025Remaining Life 9

6,065 SF @ $4.00Asset Cost $24,260.00

Percent Replacement 100%Future Cost $30,297.42

This component funds for the replacement of the composition roofing. This procedure includes removal and disposal of the old roofing and replacement of the waterproof barrier sheet beneath the shingles.

The work should be performed by a qualified licensed roofing contractor.

According to information provided by the Association, there are 6,065 square feet of roofing.

The cost and useful life estimates are based on a per square foot estimate provided by Clow Roofing & Siding.

Roofing - Total Current Cost $24,260

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Concrete Deck Membrane - RecoatAsset ID 1026

Non-CapitalPainting



1 Total @ $750.00Asset Cost $750.00

Percent Replacement 100%Future Cost $750.00

This provision provides funding to recoat the concrete deck membrane.

Schwindt & Company estimated 200 square feet of the deck.

The cost is an estimate. The Association will need to obtain bids for this work.

The useful life assumption is based on estimates established on RS Means and/or The National Estimator.

Interior PaintingAsset ID 1018

Non-CapitalPainting



1,503 SF @ $1.50Asset Cost $2,254.50


This provision provides funding to paint the interior of the common area entries and the basement including the painted wood staircase.

Schwindt & Company estimated 1,476 square feet of interior walls and 27 square feet of painted staircase.

The cost and useful life assumptions are based on estimates established on RS Means and/or The National Estimator. The Association will need to obtain bids for this work.

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Metal Railings - PaintingAsset ID 1016

Non-CapitalPainting

Placed in Service January 2012Useful Life 6


80 LF @ $10.00Asset Cost $800.00


This provision provides funding to paint the metal railings on the exterior and interior.

Schwindt & Company estimated 80 lineal feet of railings.

The cost is based on a per lineal foot estimate provided by Verhaalen Painting, Inc. The Association will need to obtain bids for this work.


All handrails were painted as needed except the newer metal handrail sections that were installed per the 2012 invoice from Homestead Exteriors, Inc. The cost was included with the painting of the siding bid.

Paint - Exterior (I)Asset ID 1006

Non-CapitalPainting



1 Total @ $18,671.00Asset Cost $18,671.00


This component funds for painting the exterior, including trim and any soffits.

In 2012, Homestead Exteriors, Inc. painted the exterior for a cost of $16,915. The Association will need to obtain bids for this work.

The useful life assumption is based on estimates established on RS - and/or The National Estimator.

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Paint - Exterior (II)Asset ID 1038

Non-CapitalPainting



1 Total @ $18,671.00Asset Cost $18,671.00


This component funds for painting the exterior, including trim and any soffits.

In 2012, Homestead Exteriors, Inc. painted the exterior for a cost of $16,915. The Association will need to obtain bids for this work.


Painting - Total Current Cost $41,146

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Brick & Mortar - Clean & SealAsset ID 1001

Non-CapitalBuilding Components



1 Total @ $1,000.00Asset Cost $1,000.00


This component funds for cleaning and sealing the brick siding.

The Association provided an area of 800 square feet.



Brick & Mortar - RepointAsset ID 1029


Placed in Service January 2004Useful Life 25Adjustment -13


800 SF @ $10.00Asset Cost $4,000.00


This component funds for repointing of the brick siding.

The Association provided an area of 800 square feet.

The cost is based on a per square foot estimate provided by D & R Masonry. The Association will need to obtain bids for this work.


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Concrete Siding - RepairsAsset ID 1028




336 SF @ $10.00Asset Cost $1,680.00


This provision provides funding to repair the concrete siding on the garages.

Schwindt & Company estimated 336 square feet of concrete siding.

The cost is based on a per square foot estimate provided by Coast Pavement Services, Inc. The Association will need to obtain bids for this work.


Gutters and Downspouts - Partial Replacement

Asset ID 1027Non-Capital

Building ComponentsPlaced in Service January 2004

Useful Life 20Adjustment 1


638 LF @ $6.00Asset Cost $1,914.00


This provision provides funding to partially replace the gutters and downspouts. A partial replacement is based on the expectation that most of the gutters and downspouts are in good enough condition that a full replacement is not needed.

Schwindt & Company estimated 638 lineal feet of gutters and downspouts.

The cost is based on a per lineal foot estimate provided by Great Northwest Gutters. The Association will need to obtain bids for this work.


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Metal Railings - Partial ReplacementAsset ID 1015




80 LF @ $41.00Asset Cost $1,640.00


This provision provides funding to partially replace the metal railings on the exterior and interior. A partial replacement is based on the expectation that most of the railings will be in good enough condition that a full replacement is not needed.

Schwindt & Company estimated 80 lineal feet of the railings.

The cost is based on a per lineal foot estimate provided by Portland Fence Co. The Association will need to obtain bids for this work.


Siding & Trim - RepairsAsset ID 1010




7,999 SF @ $10.00Asset Cost $19,997.50


This component funds for repairs to the siding and trim. It is scheduled to occur at the time of painting.

Dry-rot repairs were done in 2012.

Schwindt & Company estimated 7,999 square feet of the wood siding.

The cost is based on a per square foot estimate provided by Clow Roofing and Siding. The Association will need to obtain bids for this work.

The useful life assumption is based on estimates established on RS Means and/or The National

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Siding & Trim - Repairs continued...

Estimator.

Siding & Trim - ReplacementAsset ID 1036

CapitalBuilding Components



7,999 SF @ $10.00Asset Cost $79,990.00


This component funds for a replacement of the siding and trim.

Dry-rot repairs were done in 2012.

Schwindt & Company estimated 7,999 square feet of the wood siding.

The cost is based on a per square foot estimate provided by Clow Roofing and Siding. The Association will need to obtain bids for this work.


Building Components - Total Current Cost $110,221

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Wood Fence - ReplacementAsset ID 1030

CapitalFencing/Security



100 LF @ $40.00Asset Cost $4,000.00


This provision provides funding to replace the wood fence. The cost includes demolishing the old fence.

Schwindt & Company estimated 100 lineal feet of the wood fence.

The cost is based on a per lineal foot estimate provided by Rick's Custom Fencing and Decking. The Association will need to obtain bids for this work.


Fencing/Security - Total Current Cost $4,000

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Hot Water Heaters - ReplacementAsset ID 1002

CapitalEquipment



2 Each @ $1,290.65Asset Cost $2,581.30


This component funds for the replacement of the electric hot water heaters.

According to information provided by the Association, there are two hot water heaters.

In 2012, Threefoot Plumbing replaced both water heaters at a cost of $1,175 each.

During Schwindt & Company's site visit, we were advised that the water heaters were not maintained annually.

The useful life estimate assumption is based on estimates established on RS Means and/or The National Estimator.

Equipment - Total Current Cost $2,581

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Hardwood Flooring (Common Entry Area) - Refinish

Asset ID 1013Capital

Interior FurnishingsPlaced in Service January 2011

Useful Life 10Replacement Year 2021

Remaining Life 5

300 SF @ $5.00Asset Cost $1,500.00


This provision provides funding to refinish the hardwood flooring in the common entry areas.

The area was provided by the Association.

The cost is based on a per square foot estimate provided by Brandsen Hardwood Floors, Inc. The Association will need to obtain bids for this work.

During Schwindt & Company's 2015 site visit, one of the entry areas has carpet runners on the staircase.


Hardwood Flooring (Common Entry Area) - Replacement


Interior FurnishingsPlaced in Service January 2004

Useful Life 30Adjustment 7


300 SF @ $20.00Asset Cost $6,000.00


This provision provides funding to replace the hardwood flooring in the common entry areas.

The area was provided by the Association.

During Schwindt & Company's 2015 site visit, one of the entry areas has carpet runners on the staircase.


DRAFT



Interior Wood Railings - ReplacementAsset ID 1023

CapitalInterior Furnishings



1 Total @ $1,500.00Asset Cost $1,500.00


This provision provides funding to replace the wood railings on the interior.


The cost is an estimate. The useful life assumption is based on estimates established on RS Means and/or The National Estimator. The Association will need to obtain bids for this work.

Rug - Stairwell - ReplacementAsset ID 1011

CapitalInterior Furnishings



1 Total @ $1,000.00Asset Cost $1,000.00


This component funds for the replacement of the stairwell carpeting.

During Schwindt & Company's 2015 site visit, there is a rug on one of the interior stairwell.

The useful life assuption is based on estimates established on RS Means and/or The National Estimator.


Interior Furnishings - Total Current Cost $10,000

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Interior Lights - ReplacementsAsset ID 1017

CapitalLighting



10 Each @ $100.00Asset Cost $1,000.00


This provision provides funding to replace the interior lighting fixtures in the common area entries and the basement.

Schwindt & Company counted 10 lights.


Light Post - Exterior - ReplacementAsset ID 1025

CapitalLighting



1 Each @ $300.00Asset Cost $300.00


This component funds for the replacement of the light post on the exterior.

The Association should use a licensed electrician for replacements.

According to the Association, there is 1 light post.

The cost and useful life assumptions are based on estimates established on RS Means and/or The National Estimator.

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Lights - Exterior - ReplacementAsset ID 1005

CapitalLighting



27 Each @ $150.00Asset Cost $4,050.00


This component funds for the replacement of the exterior light fixtures. Individual fixtures should be replaced as necessary.

The Association should use a licensed electrician for replacements.

Schwindt & Company counted 27 lights.


Lighting - Total Current Cost $5,350

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Fire Extinguishers - ReplacementAsset ID 1020

CapitalFire Extinquishers



3 Each @ $150.00Asset Cost $450.00


This provision provides funding to replace the fire extinguishers.

Schwindt & Company counted 3 fire extinguishers.


Fire Extinquishers - Total Current Cost $450

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Concrete - Partial ReplacementAsset ID 1024

Non-CapitalGrounds Components



3,239 SF @ $10.00Asset Cost $16,195.00


This provision provides funding to partially replace the concrete. This includes the concrete flooring in the basement, porches, walkways around the building, and deck. The cost is an estimate and it may be more at the time of the expense.

Schwindt & Company estimated 3,239 square feet of concrete.

During Schwindt & Company's site visit, there were numerous areas of trip hazards and cracked concrete.

The sidewalk is not the Association's responsibility.

The cost is based on a per square foot estimate provided by Coast Pavement Services, Inc. The Association will need to obtain bids for this work.


Exterior Wood Railings - ReplacementAsset ID 1022

CapitalGrounds Components



1 Total @ $1,500.00Asset Cost $1,500.00


This provision provides funding to replace the wood railings on the exterior.


The cost is an estimate. The useful life assumption is based on estimates established on RS Means and/or The National Estimator. The Association will need to obtain bids for this work.

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Irrigation System - Component Replacements


Grounds ComponentsPlaced in Service January 2004

Useful Life 15Replacement Year 2019

Remaining Life 3

1 Total @ $1,000.00Asset Cost $1,000.00


This component funds for replacements of components associated with the irrigation system. This includes controllers, back flow, valves, etc.

Schwindt & Company spoke to Nick of LBD Landscaping LLC in 2015, and was informed that the system was in good condition. The irrigation system is small. There is 1 controller. The replacement cost of the controller is $300. The cost to replace back flow and valves are minimal.

The useful life assumptions are based on estimates established on RS Means and/or The National Estimator.

Landscape Renovation/Tree RemovalAsset ID 1012

Non-CapitalGrounds Components



1 Total @ $5,000.00Asset Cost $5,000.00


This component funds for any necessary arbor work, including trimming for structure and health, and for emergency work due to storms. This also includes landscape renovation.

Schwindt & Company spoke to Nick of LBD Landscaping LLC in 2015, and confirmed that $5,000 was reasonable for landscape renovation and tree removal if needed.


This component is an estimate. If the actual cost of this component is determined to be different from this estimate, the reserve study should be updated to reflect the actual cost.

DRAFT



Grounds Components - Total Current Cost $23,695

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Doors - ReplacementAsset ID 1019

CapitalDoors and Windows



35 Each @ $500.00Asset Cost $17,500.00


This provision provides funding to replace the doors.

Schwindt & Company counted 35 doors.


Garage Doors - ReplacementAsset ID 1039




4 Each @ $1,000.00Asset Cost $4,000.00


This provision provides funding to replace the garage doors.

Schwindt & Company counted 4 garage doors.


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Windows - ReplacementAsset ID 1021




123 Each @ $500.00Asset Cost $61,500.00


This provision provides funding to replace the windows.

Schwindt & Company counted 123 windows.


Doors and Windows - Total Current Cost $83,000

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Electrical StudyAsset ID 1035

Non-CapitalInspections



1 Total @ $10,000.00Asset Cost $10,000.00


This component funds for an electrical study to determine the current condition of the electrical wires and panels.

The cost is an estimate and the Association will need to obtain bids for this work.

Plumbing StudyAsset ID 1034

Non-CapitalInspections



1 Total @ $10,000.00Asset Cost $10,000.00


This component funds for a plumbing study to determine the current condition of the pipes and sewer lines.

According to the Association, some of the cold water pipes were replaced in 2013.

The cost is an estimate and the Association will need to obtain bids for this work.

Inspections - Total Current Cost $20,000

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Reserve Study Update (Off Site)Asset ID 1031

Non-CapitalReserve Study



1 Total @ $700.00Asset Cost $700.00


This component funds for an off-site reserve study update.

Reserve Study Update (On Site)Asset ID 1032

Non-CapitalReserve Study



1 Total @ $1,100.00Asset Cost $1,100.00


This component funds for an on-site reserve study update.

Reserve Study - Total Current Cost $1,800

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Insurance - DeductibleAsset ID 1003

Non-CapitalContingency



1 Total @ $2,616.00Asset Cost $2,616.00


This component is for the insurance deductible in the event a claim is made.

Contingency - Total Current Cost $2,616

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Outdoor Furniture - ReplacementAsset ID 1033

CapitalFurniture



1 Total @ $3,000.00Asset Cost $3,000.00


This component funds for the replacement of outdoor furniture.

The cost and useful life is an estimate. The Association will need to obtain bids for this work.

Furniture - Total Current Cost $3,000

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Additional DisclosuresLevels of Service

The following three categories describe the various types of Reserve Studies from exhaustive to minimal.

I. Full: A Reserve Study in which the following five Reserve Study tasks are performed: ■ Component Inventory ■ Condition Assessment (based upon on-site visual observations) ■ Life and Valuation Estimates ■ Fund Status ■ Funding Plan

II. Update, With Site Visit/On-Site Review: A Reserve Study update in which the following five Reserve Study tasks are performed:

■ Component Inventory (verification only, not quantification) ■ Condition Assessment (based on on-site visual observations) ■ Life and Valuation Estimates ■ Fund Status ■ Funding Plan

III. Update, No Site Visit/Off Site Review: A Reserve Study update with no on-site visual observations in which the following three Reserve Study tasks are performed:

■ Life and Valuation Estimates ■ Fund Status ■ Funding Plan

Terms and Definitions

CASH FLOW METHOD: A method of developing a reserve Funding Plan where contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve Funding Plans are tested against the anticipated schedule of reserve expenses until the desired Funding Goal is achieved.

COMPONENT: The individual line items in the Reserve Study developed or updated in the Physical Analysis. These elements form the building blocks for the Reserve Study. Components typically are: 1) association responsibility; 2) with limited Useful Life expectancies; 3) predictable Remaining Useful Life expectancies; 4) above a minimum threshold cost; and 5) as required by local codes.

COMPONENT INVENTORY: The task of selecting and quantifying reserve Components. This task can be accomplished through on-site visual observations, review of association design and organizational documents, a review of established association precedents, and discussion with appropriate association representative(s) of the Association or cooperative.

COMPONENT METHOD: A method of developing a reserve Funding Plan where the total contribution is based on the sum of contributions for individual Components. See Cash Flow Method.

DRAFT


CONDITION ASSESSMENT: The task of evaluating the current condition of the Component based on observed or reported characteristics.

CURRENT REPLACEMENT COST: See Replacement Cost.

DEFICIT: An actual or projected Reserve Balance that is less than the Fully Funded Balance. The opposite would be a Surplus.

EFFECTIVE AGE: The difference between Useful Life and Remaining Useful Life. Not always equivalent to chronological age since some Components age irregularly. Used primarily in computations.

FINANCIAL ANALYSIS: The portion of a Reserve Study where current status of the reserves (measured as cash or Percent Funded) and a recommended reserve contribution rate (reserve Funding Plan) are derived, and the projected reserve income and expense over time is presented. The Financial Analysis is one of the two parts of a Reserve Study.

FULLY FUNDED: 100% Funded. When the actual or projected Reserve Balance is equal to the Fully Funded Balance.

FULLY FUNDED BALANCE (FFB): Total accrued depreciation, an indicator against which actual or projected Reserve Balance can be compared. The Reserve Balance that is in direct proportion to the fraction of life “used up” of the current repair or Replacement Cost. This number is calculated for each Component, then added together for an association total. Two formulas can be utilized, depending on the provider’s sensitivity to interest and inflation effects. Note: Both yield identical results when interest and inflation are equivalent.

FFB = Current Cost X Effective Age / Useful Life

or

FFB = (Current Cost X Effective Age / Useful Life) + [(Current Cost X Effective Age /

Useful Life) / (1 + Interest Rate) ^ Remaining Life] - [(Current Cost X Effective Age / Useful Life)

/ (1 + Inflation Rate) ^ Remaining Life]

FUND STATUS: The status of the reserve fund as compared to an established benchmark such as percent funding.

FUNDING GOALS: Independent of methodology utilized, the following represent the basic categories of Funding Plan goals:

■ Baseline Funding: Establishing a reserve funding goal of keeping the reserve cash balance above zero.

■ Full Funding: Setting a reserve funding goal of attaining and maintaining reserves at or near 100% funded.

■ Statutory Funding: Establishing a reserve funding goal of setting aside the specific minimum amount of reserves required by local statues.

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■ Threshold Funding: Establishing a reserve funding goal of keeping the Reserve Balance above a specified dollar or Percent Funded amount. Depending on the threshold, this may be more or less conservative than fully funding.

FUNDING PLAN: An association’s plan to provide income to a reserve fund to offset anticipated expenditures from that fund.

FUNDING PRINCIPLES: ■ Sufficient Funds When Required ■ Stable Contribution Rate over the Years ■ Evenly Distributed Contributions over the Years ■ Fiscally Responsible

LIFE AND VALUATION ESTIMATES: The task of estimating Useful Life, Remaining Useful Life, and repair or Replacement Costs for the reserve Components.

PERCENT FUNDED: The ratio at a particular point of time (typically the beginning of the Fiscal Year) of the actual or projected Reserve Balance to the Fully Funded Balance, expressed as a percentage.

PHYSICAL ANALYSIS: The portion of the Reserve Study where the Component Inventory, Condition Assessment, and Life and Valuation Estimate tasks are performed. This represents one of the two parts of the Reserve Study.

REMAINING USEFUL LIFE (RUL): Also referred to as “Remaining Life” (RL). The estimated time, in years, that a reserve Component can be expected to continue to serve its intended function. Projects anticipated to occur in the initial year have “zero” Remaining Useful Life.

REPLACEMENT COST: The cost of replacing, repairing, or restoring a reserve Component to its original functional condition. The Current Replacement Cost would be the cost to replace, repair, or restore the Component during that particular year.

RESERVE BALANCE: Actual or projected funds as of a particular point in time that the Association has identified for use to defray the future repair or replacement of those major Components which the Association is obligated to maintain. Also known as reserves, reserve accounts, or cash reserves. Based upon information provided and not audited.

RESERVE PROVIDER: An individual that prepares Reserve Studies.

RESERVE STUDY: A budget planning tool which identifies the current status of the reserve fund and a stable and equitable Funding Plan to offset the anticipated future major common area expenditures. The Reserve Studyconsists of two parts: the Physical Analysis and the Financial Analysis.

RESPONSIBLE CHARGE: A reserve specialist in Responsible Charge of a Reserve Study shall render regular and effective supervision to those individuals performing services which directly and materially affect the quality

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and competence rendered by the reserve specialist. A reserve specialist shall maintain such records as are reasonably necessary to establish that the reserve specialist exercised regular and effective supervision of a Reserve Study of which he was in Responsible Charge. A reserve specialist engaged in any of the following acts or practices shall be deemed not to have rendered the regular and effective supervision required herein:

■ The regular and continuous absence from principal office premises from which professional services are rendered, except for performance of field work or presence in a field office maintained exclusively for a specific project;

■ The failure to personally inspect or review the work of subordinates where necessary and appropriate;

■ The rendering of a limited, cursory, or perfunctory review of plans or projects in lieu of an appropriate detailed review;

■ The failure to personally be available on a reasonable basis or with adequate advance notice for consultation and inspection where circumstances require personal availability.

SPECIAL ASSESSMENT: An assessment levied on the members of an association in addition to regular assessments. Special Assessments are often regulated by governing documents or local statutes.

SURPLUS: An actual or projected Reserve Balance greater than the Fully Funded Balance.The opposite would be a Deficit.

USEFUL LIFE (UL): Total Useful Life or depreciable life. The estimated time, in years, that a Reserve Component can be expected to serve its intended function if properly constructed in its present application or installation.

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