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Reserve Studies by Reserve Funding ● 800-301-3411

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7600 SW Barnes RoadPortland, OregonOctober 23, 2015

Prepared by:D.L. "Dan" Huntley, RS, PRA

Tamarra "Tammy" Axton, PRARay Axton, PRA

TABLE OF CONTENTSAssociation of Unit Owners of Sylvan Heights Condominium


Executive Summary 3

Executive Report 4

Category Detail Index 12

Base Line Assessment Funding Model Summary 16

Base Assessment Funding Model Projection 24

Base Line Funding Model & Fully Funded Comparison Chart 25

Asset Current Cost by Category 26

Component Summary 27

Annual Expenditure Detail 31

Annual Expenditure Detail 44

Annual Asset Expenditure Charts 56

Detail Report Alphabetically 58

Revenue Ruling 70-604 192

Maintenance Plan 193

Funding Goals & Plans 194

Member Summary Report 195

Info On Your Reserve Study 198


Reserve Study Professionals credentialed byCommunity Association Institute (RS )and

Association of Professional Reserve Analysts (PRA)

ASSOCIATION OF UNIT OWNERS OF SYLVAN HEIGHTSCONDOMINIUM

Executive Summary

Fiscal Year of Report

January 1, 2016 to December 31, 2016

Number of Lots 272

Parameters

Beginning Fiscal Year Balance $560,629

Fiscal Year 2016 Suggested Contribution $408,000

Average Reserve Assessment Per Lot $125.00

Prior Year's Actual Contribution $335,225

Fiscal Year Projected Interest Rate .15%

Fiscal Year Inflation Rate 2.50%

Annual Increase To Suggested Contribution 22.05% Through 2019

Lowest Cash Balance Over 30 Years (Threshold) $63,246

This work is copyright and has been supplied under contract to the Association and/or itsrepresentatives. Apart from the Client's right to reproduce and distribute copies of this report asrequired by its governing documents or state law, no part of this reserve study may be reproduced by anyprocess without prior written permission from Reserve Studies by Reserve Funding or its parentcompany Reserve Funding (Western States Subdivision Consulting). Requests and inquiries concerningreproduction and rights should be addressed to Reserve Studies by Reserve Funding at its main office at16869 SW 65th Avenue, Suite 366, Lake Oswego, OR 97035.

16869 SW 65th Avenue, Suite 366Lake Oswego, Oregon 97035800-301-3411


RESERVE STUDIES BYRESERVE FUNDING

Attached herewith is the reserve study (physical and financial analysis) for the Association.Interest from reserve savings accounts must stay in the reserve account(s) and not be used as anoffset against monthly assessments.

You are encouraged to thoroughly review this document and its individual reports for conformityto the description of responsibility for the Association’s Common Areas and Commonly MaintainedProperty as those terms are defined in your Declaration of Covenants, Conditions and Restrictions. Inaddition, please pay close attention to the reserve bank balance estimated to be on hand by your staff.Any discrepancy in the figure or interest rate can have a significant effect on the reserve study andthe outcome of the assumptions shown.

The intention of the reserve study is to forecast, as they wear out in future years, theAssociation’s ability to repair, replace, restore or maintain major components with a life expectancy ofover one year and an estimated cost of over one thousand dollars. The reports will provide theAssociation’s Board of Directors (Board) the information necessary to make the reserve projectiondisclosures required by existing statutes, lender’s requirements, or the governing documents.

The cost outlined in the reserve study is subjective in some areas, therefore we may use costssubmitted by the Declarant, Management or the Board, and are for budgetary and planning purposesonly. Actual bid costs would depend upon the defined scope of work at the time the repair, replacementor restoration is done, and on actual price levels prevailing at the time the future repair, replacement, orrestoration must be done.

The estimates on future repair, replacement and restoration in the reserve study will be good faithestimates and projections, based upon the estimated future inflation rate and interest (yield) on themonies set aside which may or may not prove accurate. Consultant submits that the probability that itmay project in its reserve study, or that the Board could project in its disclosures, future costs or actualfuture remaining useful lives of components having useful lives extended beyond one year withprecision is the functional equivalent of winning the lottery (while it may happen in rare instances bychance, one may not reasonably expect it to happen). As a result, Consultant cannot, and does not,warrant or guaranty its projections. Assumptions on future costs and life expectancy’s should bereviewed and adjusted on an annualized basis, as current and future cost projections and lifeexpectancy’s become more uncertain.


This reserve study is limited to an off-site, on-site or plan take-off physical analysis of theproperty, and as such did not disturb the major components. Therefore, all Common Areas andCommonly Maintained Property as those terms are defined in the Declaration for which there is noaccess without defacement are specifically omitted. However, if sufficient historical data including costswere available that would allow a reasonable projection of future expenditures for any unobservedcomponents, e.g., plumbing, utilities, electrical wiring, those components could be included in thereserve study and may require an engineer's report.

Since no destructive testing was undertaken, this reserve study, as stated above, does not purportto address any latent and/or patent defects, nor does it address any life expectancies that are abnormallyshort due either to improper design or installation, or to subsequent improper maintenance. It is assumedthat all components are to be reasonably maintained for the remainder of their life expectancy.

The seals below the signature is evidence that the reserve study was performed under theguidelines and policies of the Association of Professional Reserve Analysts and the CommunityAssociation Institute.

Sincerely,

, PRA, RS

, PRA

Association of Professional Reserve Analyst-APRA-(PRA)Community Association Institute-CAI-(RS) Reserve Specialist


EXECUTIVE SUMMARY

At the direction of the Association that recognizes the need for proper reserve planning, we haveprepared a Reserve Study (physical and financial analysis) of the Association's Common Areas andCommonly Maintained Property as those terms are defined in the Declaration and submit our findings inthis report. The purpose of this Reserve Study is to establish a reasonable yearly reserve contributionnecessary to meet future expenditures for major replacements or repairs of the Common Areas andCommonly Maintained Property as those terms may be defined in the Declaration, as amended, and thatcomponents have a life expectancy of more than one year and less than thirty years.

All major Common Areas and Commonly Maintained Property as those terms are defined in theDeclaration are likely to require capital repair or replacement over the next thirty years. Our analysisconsidered current and future costs of replacement for the subject Common Areas and CommonlyMaintained Property as those terms are defined in the Declaration, the average annual fund balance,interest on invested funds, and anticipated inflation. Based on the investigation and analysis as detailedin the accompanying narrative, the attached CURRENT ASSESSMENT FUNDING MODELPROJECTION report details the average reserve contributions that are recommended to fund theexpected capital expenditures of the subject Common Areas and Commonly Maintained Property asthose terms are defined in the Declaration over the next thirty years.

We arrived at these recommendations in part by matching the anticipated expenditures noted inthe ANNUAL EXPENDITURE DETAIL against current fund balances and the annual levels of funding.Reserve funds would not become depleted within the next thirty years at the levels of fundingrecommended.

The CURRENT ASSESSMENT FUNDING MODEL PROJECTION enumerates the detailsregarding recommended annual reserve contributions and projected year-end reserve balances. Werecommend, in accordance with state statutes, subsequent yearly off-site updates of this reserve studyand an on-site physical analysis every five years to confirm that the recommended reserve contributionsare appropriate in view of possible changes in the property, components not completed as detailed in theexpenditure report, interest rates, inflation rates, costs, and movement of any excess operating funds tothe reserve savings accounts as approved by the membership.

It is necessary that regular maintenance of the Common Areas and Commonly MaintainedProperty as those terms are defined in the Declaration be done to insure maximum useful life andoptimum performance of the reserve components. Components of concern include items associated withwater intrusion and safety.

The maintenance plan is a cyclical plan that calls for regular maintenance at regular intervals andwill list the maintenance activity and the frequency of maintenance as well as a short narrative.

Checklists developed by Reed Construction Data, Inc. can be accessed, photocopied ordownloaded from the RS Means web site at www.rsmeans.com/supplement/67346.asp. We stronglyurge the Board to use these forms.


NARRATIVE REPORT

The following reports illustrate our recommendations and observations concerning anticipatedexpenditures, recommended reserve funding and projected fund balances during the next thirty years.

We have not investigated the title to or any liabilities against the property subject to this report.

At the direction of the Association, which recognizes the need for proper reserve planning, wehave made a reserve study (physical and financial analysis) of this community and submit our findings inthis report.

The purpose of this study is to establish a reasonable yearly reserve contribution necessary tomeet future expenditures for major replacements or repairs of the Common Areas and CommonlyMaintained Property of the Association as those terms are defined in the Declaration as of the beginningof its fiscal year.

Reserves for replacement are estimates of that amount of money that must be put aside to repairor replace major items or building components that will wear out before the entire facility or projectwears out.

State law, such as that found in Texas, Nevada, California, Oregon and Washington, clearlyestablishes the fiduciary duty of “boards” and the necessity for adequate assessments including reservefunds. The legislative intent of these acts is to better protect current owners and future buyers of units incommunity associations. Reserving funds for future repair or replacement of the shorter-lived buildingcomponents is also one of the most reliable ways of protecting the future market value of an individual’sinvestment property from the deleterious effects of special assessments.

For the purposes of this study, the detailed cash flow analysis is limited to those components orelements that are likely to require replacement or major rehabilitation during the next thirty-year period.Replacement of an entire planned development or condominium in 50 to 75 years is not a typical event.Preventive maintenance generally extends the useful life of many components. As such, estimatinguseful lives beyond thirty years from the date of this study is indeterminate and it is recommended thatperiodic updates of this study be made to consider actual facts and circumstances regarding extended ordiminished component lives, inflation, and appreciation of the reserves.

Our investigation included Common Areas and Commonly Maintained Property as those termare defined in the Declaration as set forth in your Declaration associated with the property of theAssociation. Excluded from our consideration was all other property, including land, property ownedindividually by unit or home owners that is not Commonly Maintained Property, personal property, andintangible assets.

Expenditures relating to the operating budget and apart from reserves are excluded from thisreserve analysis. It is our understanding that the operating budget and future operating budgets willprovide for the on-going normal maintenance of Common Areas and Commonly Maintained Property asthose terms are defined in the Declaration unless specifically identified in the component description onthe DETAIL REPORT BY CATEGORY.

Our report comprises:

This letter, that sets forth the nature and extent of the investigation, identifies the classes of


property considered, and presents the conclusions reached.

An Executive Summary identifies the property, current reserves, recommended reserve funding,and projections concerning reserve funding.

Consideration and Methodology

The purpose of this study is to estimate the amount of yearly reserve contributions necessary tomeet future expenditures for major replacements and repairs of the Common Area and CommonlyMaintained Property as those terms are defined in the Declaration of the Association without a specialassessment. We reviewed the property subject of this investigation and considered the following:

Local costs of material, equipment and labor combined in the cost factor.

The current and future costs of replacement or repair for the Common Areas andCommonly Maintained Property as those terms are defined in the Declaration asdetailed in the DETAIL REPORT BY CATEGORY.

The cost of removal if required of the worn out components as part of the cost ofreplacement.

The anticipated effects of inflation on the amount to be reserved annually.

The anticipated effects of appreciation of the reserves over time in accord withyour average current return or yield on investments. We were informed allaccrued interest on Association investments would be included within thereserve funds.

The past and current maintenance practices of your Association and their effectson remaining lives.

We have not considered as part of the reserve contributions the amounts required for yearlymaintenance activities.


SUMMARY AND CONCLUSION

This study indicates that based on the anticipated expenditures noted in the ANNUALEXPENDITURE DETAIL report, the current reserves and annual recommended levels of funding areadequate to avoid future special assessments. Reserves would not become depleted within the nextthirty years at current recommended levels of funding.

ASSUMPTIONS, SCOPE, AND LIMITED CONDITIONS

To the best of our knowledge, all data set forth in this report are true and accurate. Althoughgathered from reliable sources, no guarantee is made nor liability assumed for the accuracy of any data,opinions, or estimates identified as being furnished by others or ourselves that have been used informulating this analysis.

No soils analysis or geological studies were ordered or made in conjunction with this report, norwas any water, oil, gas, coal or other subsurface mineral and use rights or conditions investigated.

Any latent defects will not be a part of the reserve study. Should we find signs of possible latentdefects or problems not within the scope of the reserve study, the Association will be notified so that theAssociation can retain the proper experts. However, the study will not be designed to uncover anypossible latent defects, and the absence of any indications to such effect will not be, and should not beconstrued to be, an indication that there are no defects not so noted, or that we warrant the absence ofany such defects.

Substances such as fungi, mold, asbestos, lead paint, urea-formaldehyde foam insulation, termitecontrol substances other chemicals, toxic wastes, radon gas, electro-magnetic radiation or otherpotentially hazardous materials (on the surface or sub-surface) could, if present, adversely affect thevalidity of our reserve study. Unless otherwise stated in our reserve study, the existence of hazardoussubstances, that may or may not be present on the property, will not be considered nor will there be anyinspection for termites. Our opinions are predicated on the assumption that there is no such material onor in the property nor existence of termites. No responsibility is assumed for any such conditions, andyou are advised that we are not qualified to detect such substances, quantify the impact, or develop theremedial cost.

The Association needs to review each line item in the reports to be certain corrections aremade from information you may possess that we are not aware of. It is assumed in our reservestudy that no work, or expenditures from the reserve funds will occur for the balance of the fiscalyear. If this is not correct, you need to let us know what extra work was done and how muchmoney will be spent.


This physical analysis was made by individuals generally familiar with real estate and buildingconstruction and 33 years experience preparing reserve studies; however, no invasive testing wasperformed. Our report does not consider electrical wiring, plumbing or utilities that may be theresponsibility of the Association. Accordingly, we do not opine on, nor are we responsible for, thestructural integrity of the property, including, but not limited to, its conformity to specific governmentalcode requirements, such as fire, building safety, earthquake, occupancy, land movement and/or slides, orany physical defects that were not readily apparent in our physical analysis. This reserve study is not anengineering study.

The cost outlined in the reserve study is subjective in some areas; therefore, we may usecosts submitted by the Association that are for budgetary and planning purposes only. Actual bidcosts would depend upon the defined scope of work at the time the repair, replacement or restoration isdone, and on actual price levels prevailing at the time the future repair, replacement or restoration mustbe done. The estimates on future repair, replacement and restoration in the reserve study will be goodfaith estimates and projections, based upon the estimated future inflation rate and interest (yield) on themonies set aside which may or may not prove accurate. We submit that the probability that the boardmay project in its reserve study or disclosures, future costs or actual future remaining useful lives ofcomponents having useful lives extended beyond one year with precision is the functional equivalent ofwinning the lottery (while it may happen in rare instances by chance, one may not reasonably expect it tohappen). As a result, we cannot, and do not, guaranty its projections. Assumptions on future costs andlife expectancies should be reviewed and adjusted on an annualized basis, as current future costsprojections and life expectancies become more uncertain.


PROFESSIONAL SERVICE CONDITIONS

The services provided by Reserve Studies by Reserve Funding© were performed in accordancewith our professional practice standards. Our compensation is not contingent in any way upon ourconclusions. We assume, without independent verification, the accuracy of all data provided to us. Wewill act as an independent contractor. All files, work papers or documents developed by us during thecourse of the engagement will remain our property.

Our report is to be used only for the purposes stated herein. Any use or reliance for any otherpurpose, by you or third parties, is invalid. You may show our report in its entirety to those third partiesthat need to review the information contained herein. No reference to our name or our report, in wholeor in part, in any document you prepare and/or distribute to third parties may be made without ourwritten consent.

Association shall defend, indemnify, and hold harmless Reserve Studies by Reserve Funding©

and its employees and subagents, who were or are a party or are threatened to be made a party to anythreatened, pending, or completed actions, suits, or proceedings, whether civil, criminal, administrative,or investigative by reason of the fact that Reserve Studies by Reserve Funding©, and its employees andsubagents, are or were the authorized representatives of the Association, as to any expense, includingattorneys’ fees, judgments, fines, and amounts paid in settlement actually and reasonably incurred byReserve Studies by Reserve Funding© and its employees and subagents, in connection with such action,suit, or proceeding, if Reserve Studies by Reserve Funding© and its employees and subagents acted ingood faith and in a manner Reserve Studies by Reserve Funding© and its employees and subagentsreasonably believed to be in, or not opposed to, the best interest of the Association, and with respect toany criminal action or proceeding, had no reasonable cause to believe their conduct was unlawful.

We have prepared an initial draft of the study and will make one adjustment to the report upon awritten request from the Association within 30 days of the date the initial draft of the study is sent to theBoard.

We reserve the right to include your Association’s name in our client list, but we will maintainthe confidentiality of all conversations, documents provided to us, and the contents of our reports,subject to legal or administrative process or proceedings.

These conditions can only be modified by written documents executed by both parties.

Respectfully submitted,

D. L. “Dan” Huntley, PRA, RS

Tamarra "Tammy" Axton, PRA

Association of Professional Reserve Analyst-APRA-(PRA)Community Association Institute-CAI-(RS) Reserve Specialist

Association of Unit Owners of Sylvan Heights CondominiumCategory Detail Index


Asset IDDescription Replacement Page

1234 Asphalt: Overlay-Clubhouse-Office 2029 581048 Asphalt: Overlay-Streets 2029 591235 Asphalt: Repairs-Clubhouse-Office 2020 601051 Asphalt: Repairs-Streets 2016 611233 Asphalt: Seal Coat-Clubhouse-Office 2020 621047 Asphalt: Seal Coat-Streets 2016 631117 Buildings-7500: Crawl Space & Laterals-Repairs 2045 641118 Buildings-7502: Crawl Space & Laterals-Repairs 2045 651119 Buildings-7504: Crawl Space & Laterals-Repairs 2045 661120 Buildings-7508: Crawl Space & Laterals-Repairs 2045 671121 Buildings-7510: Crawl Space & Laterals-Repairs 2045 681122 Buildings-7512: Crawl Space & Laterals-Repairs 2045 691123 Buildings-7514: Crawl Space & Laterals-Repairs 2045 701124 Buildings-7518: Crawl Space & Laterals-Repairs 2018 711125 Buildings-7520: Crawl Space & Laterals-Repairs 2020 721127 Buildings-7528: Crawl Space & Laterals-Repairs 2017 731128 Buildings-7530: Crawl Space & Laterals-Repairs 2017 741129 Buildings-7534: Crawl Space & Laterals-Repairs 2045 751130 Buildings-7536: Crawl Space & Laterals-Repairs 2016 761131 Buildings-7552: Crawl Space & Laterals-Repairs 2019 771132 Buildings-7554: Crawl Space & Laterals-Repairs 2019 781133 Buildings-7602: Crawl Space & Laterals-Repairs 2016 791134 Buildings-7702: Crawl Space & Laterals-Repairs 2016 801135 Buildings-7704: Crawl Space & Laterals-Repairs 2016 811136 Buildings-7706: Crawl Space & Laterals-Repairs 2016 821137 Buildings-7710: Crawl Space & Laterals-Repairs 2018 831138 Buildings-7712: Crawl Space & Laterals-Repairs 2018 841139 Buildings-7714: Crawl Space & Laterals-Repairs 2019 851140 Buildings-7716: Crawl Space & Laterals-Repairs 2018 861141 Buildings-7726: Crawl Space & Laterals-Repairs 2017 871142 Buildings-7730: Crawl Space & Laterals-Repairs 2017 881143 Buildings-7736: Crawl Space & Laterals-Repairs 2016 891144 Buildings-7738: Crawl Space & Laterals-Repairs 2016 901145 Buildings-7740: Crawl Space & Laterals-Repairs 2016 911146 Buildings-7742: Crawl Space & Laterals-Repairs 2016 921147 Buildings-7744: Crawl Space & Laterals-Repairs 2016 931148 Buildings-7746: Crawl Space & Laterals-Repairs 2016 941149 Buildings-7750: Crawl Space & Laterals-Repairs 2016 95




1150 Buildings-7752: Crawl Space & Laterals-Repairs 2019 961171 Buildings: Deck Coatings-Repair 2016 971237 Buildings: Dry-Rot-Repair 2016 981152 Buildings: Electrical Renovation 2018 991168 Buildings: Heater-Laundry Room-Replace 2019 1001169 Buildings: Hot Water Heaters-Replace 2016 1011153 Buildings: Plumbing Renovation 2018 1021170 Buildings: Washer & Dryers-Replace Unfunded 1031105 Carport: Detached-Paint-01 2016 1041107 Carport: Detached-Paint-02 2016 1051151 Carport: Repairs 2016 1061174 Clubhouse: Appliances-Replace 2018 1071175 Clubhouse: Carpet-Replace 2025 1081172 Clubhouse: Conference Room-Renewal 2018 1091176 Clubhouse: Decks & Stairs-Replace 2018 1101106 Clubhouse: Exterior-Paint 2022 1111177 Clubhouse: Fireplace-Replace 2018 1121238 Clubhouse: Flooring-Wood-Entry-Replace 2025 1131178 Clubhouse: Furniture-Replace 2018 1141179 Clubhouse: Gym Equipment-Replace 2018 1151180 Clubhouse: HVAC-Replace 2028 1161181 Clubhouse: Interior-Painting 2021 1171182 Clubhouse: Locker Rooms-Renovation 2019 1181230 Clubhouse: Office Equipment & Furniture 2018 1191217 Clubhouse: Parking Deck-Replace 2025 1201193 Clubhouse: Sauna Heaters-Replace 2025 1211195 Clubhouse: Spa Heater-Replace 2025 1221196 Clubhouse: Spa Jet Pump-Replace 2024 1231197 Clubhouse: Spa Pump-Replace 2021 1241194 Clubhouse: Spa-Replaster 2030 1251183 Clubhouse: Tile Flooring-Replace 2033 1261184 Clubhouse: Water Heater-Replace 2019 1271218 Common Area: Contingency 2016 1281219 Common Area: Curbing-Repair 2023 1291166 Common Area: Fence: Chain Link-Perimeter 2030 1301167 Common Area: Golf Cart-Replace 2032 1311220 Common Area: Guardrail-Repair 2045 1321231 Common Area: Insurance-Deductible 2016 133




1232 Common Area: Lighting-Replace 2045 1341229 Common Area: Signage-Repair 2016 1351227 Common Area: Storm System-Hydro Jet 2019 1361228 Common Area: Wheel Stops-Replace 2043 1371157 Gutters & Downspouts: Replace-01 2042 1381158 Gutters & Downspouts: Replace-02 2043 1391159 Gutters & Downspouts: Replace-03 2044 1401160 Gutters & Downspouts: Replace-04 2045 1411161 Gutters & Downspouts: Replace-05 2045 1421162 Gutters & Downspouts: Replace-06 2017 1431163 Gutters & Downspouts: Replace-07 2018 1441164 Gutters & Downspouts: Replace-08 2019 1451165 Gutters & Downspouts: Replace-09 2020 1461222 Landscape: Improvements 2025 1471221 Landscape: Irrigation System: Replacement 2021 1481223 Landscape: Sidewalks-Repair-01 2020 1491225 Landscape: Sidewalks-Repair-02 2017 1501226 Landscape: Stairs-Repair 2016 1511187 Pool: Brick Wall-Repair 2024 1521236 Pool: Coping 2035 1531188 Pool: Fence-Maintenance 2025 1541189 Pool: Fence-Replace 2052 1551190 Pool: Furniture-Replace 2017 1561186 Pool: Heater-Replace 2030 1571192 Pool: Pump House-Repair 2044 1581191 Pool: Pump-Replace 2030 1591185 Pool: Replaster 2017 1601102 Roofs: Membrane-Replace 2030 1611126 Roofs: Shake-Maintenance-01 2019 1621103 Roofs: Shake-Maintenance-02 2016 1641104 Roofs: Shake-Replace-01 2016 1661059 Roofs: Shake-Replace-02 2029 1671100 Roofs: Shake-Replace-03 2030 1691101 Roofs: Shake-Replace-04 2031 1711154 Siding-Decks-Railings: Repairs-01 2016 1731155 Siding-Decks-Railings: Repairs-02 2016 1741156 Siding-Decks-Railings: Repairs-03 2021 1761108 Siding: Exterior-Paint-01 2024 177




1109 Siding: Exterior-Paint-02 2016 1781110 Siding: Exterior-Paint-03 2017 1791111 Siding: Exterior-Paint-04 2018 1801112 Siding: Exterior-Paint-05 2019 1811113 Siding: Exterior-Paint-06 2020 1821114 Siding: Exterior-Paint-07 2021 1831115 Siding: Exterior-Paint-08 2022 1841116 Siding: Exterior-Paint-09 2023 1851199 Tennis Court: Chain Link Fence-Replace 2021 1861200 Tennis Court: Light Timers-Replace 2020 1871201 Tennis Court: Lights-Repair 2017 1881202 Tennis Court: Nets-Replace 2017 1891198 Tennis Court: Resurface 2017 1901203 Tennis Court: Retaining Wall-Repair 2018 191

Total Funded Assets 127Total Unfunded Assets 1Total Assets 128

Association of Unit Owners of Sylvan Heights CondominiumBase Line Assessment Funding Model Summary


Report Date October 23, 2015

Version 1 (2016) Level IIIBudget Year Beginning January 01, 2016Budget Year Ending December 31, 2016

Total Units 272Phase Development 2 of 2

Report Parameters

Inflation 2.50%

Interest Rate on Reserve Deposit 0.15%Tax Rate Included in Interest RateContingency 3.00%

2016 Beginning Balance $560,629.34

Current Assessment Funding Model SummaryCash Flow Time Value of Money Threshold Funding

BUSINESS JUDGEMENT RULE

To avoid personal liability for their actions/decisions, directors mustperform their fiduciary duties "with such care, including reasonableinquiry, as an ordinarily prudent person in a like position would use

under similar circumstances."

**********NOTE: The Board MUST (under the new statutes) - Changes to ORS 94.595 &

100.175 by Senate Bill 963B in 2009

(3)(a) The board of directors of the association annually shall conduct a reserve study or

review and update of an existing study to determine reserve account requirements. Subject to

subsection (8) of this section, after review of the reserve study or reserve study update,the

board of directors may, without any action of owners:

(A) Adjust the amount of payments as indicated by the study or update; and

(B) Provide for other reserve items that the board of directors, in its discretion, may deemappropriate.



(b) The reserve study shall:

(A) Identify all items for which reserves are or will be established;

(B) Include the estimated remaining useful life of each item as of the date of the reserve study;and

(C) Include for each item, as applicable, an estimated cost of maintenance and repair andreplacement at the end of the item's useful life.

(8)(a) Except as provided under paragraph (b) of this section, unless the board of directorsunder subsection (3) of this section determines that the reserve account will be adequatelyfunded for the following year, the board of directors or the owners may not vote to eliminatefunding a reserve account required under this section or under the declaration or bylaws.

(b) Following the turnover meeting described in ORS 94.609 & ORS 100.210 on an annualbasis, the board of directors, with the approval of all owners, may elect not to fund the reserveaccount for the following year. (Daniel Zimberoff Attorney-Barker Martin)

This reserve study is for budget and planning purposes and identifies the status of the reservefund and schedules the anticipated major commonly owned item replacements. The reservestudy uses the the cash flow method and the threshold funding model which establishes areserve funding goal that keeps the reserve balance above a specific dollar or percent fundedamount. The threshold method assumes that the threshold method is funded with a positivethreshold balance.

This reserve study will also estimate the expected useful life and remaining useful life of thebuilding and site components or systems, and will provide an estimate replacement orrefurbishment cost for those components or systems. Major components or systems mayinclude, but are not limited to, painting, gutters and downspouts. mailboxes, roofing, siding,windows, doors, paving, mechanical equipment, common area furnishings and amenities andother commonly owned systems or items.

The scope of work identified within our contract is to provide the association with an"Updated On-Site Visit" (Level II) reserve study which includes:

Component/System Inventory



Expected Useful Life and Remaining Useful Life Estimates

Condition Assessment (based upon on-site visual observations if applicable).

Component/System Replacement Schedule and Estimated Pricing

Identify Current Reserve Account Balance

30 Year Funding Plan

How to Use a Reserve Study

The documents included within the reserve study are intended to be used as guidelines andestimates. It is nearly impossible to know exactly when a building component system will fail;however, an estimation of useful life based on similar product history and professionalexperience is used to estimate the time of replacement and associated costs. All costs includedwithin this reserve study should be used as budgeting figures. For exact pricing, a qualified,licensed contractor should be contacted to provide a bid for any anticipated replacements.

The replacement schedule lists all known components and systems that are anticipated to"wear out" or fail within 30 years. Items which are anticipated to be replaced or repaired inthe current year are not included within the reserve study as those items should already bebudgeted for, and scheduled to be replaced or repaired.

On the reserve schedule, review which items are anticipated to fail in the near future, and keepa close eye on them. It is always better to replace items prior to failure to eliminate theopportunity for surrounding components or associated systems to be affected. Be cognizant ofitems scheduled for replacement or repair within 2-3 years of the current year. Remember,items listed are scheduled based on history and replacement or repair is scheduled as anestimate. Items commonly fail sooner or later than the estimated date.

Disclosures

General - The Association of Unit Owners of Sylvan Heights Condominium and ReserveStudies by Reserve Funding aka Reserve Funding a division of Western States SubdivisionConsulting have no professional or personal involvements with each other, other than thescope of work identified in the reserve study contract. This relationship cannot be perceived asa conflict of interest.



Physical Analysis - If an on-site reserve study was performed observations were limited tovisual observations only. Destructive testing (invasive testing) was not performed. Any itemsthat were not clearly visible at the time of the site observation were not viewed, and thereforewere not included in the drafting of this reserve study.

Investigating Components: A site visit by another reserve study provider was performed in2011 and 2014 and they did not investigate components for defects, materials, orworkmanship. This reserve study considers if the components are wearing as intended and allcomponents are considered to be in fair condition and appear to be wearing as intended unlessotherwise noted in the component detail.

Measurements (if applicable) - Measuring and inventory (+/- 10%) were identified via acombination of on-site physical measurements, previous reserve study and/or drawing take-offs. Drawing sets (if used) were provided by the property manager or Declarant for our userelating only to the reserve study scope of work.

Reliance on Client Data - Data received from property management, associationrepresentatives and/or Declarant is deemed reliable by Reserve Funding. Such data mayinclude financial information, physical deficiencies or physical conditions, quantity of physicalassets, or historical issues.

Scope - The Reserve Study is a reflection of information provided to the Consultant andassembled for the Association's use, not for the purpose of performing an audit,quality/forensic analysis, or background checks of historical records.

Reserve Balance - The actual or projected (estimated) total presented in this reserve study isbased upon information provided or collected and was not audited.

Reserve Projects -Information provided or collected for the purpose of this reserve study willbe considered reliable and should not be considered a project audit or quality inspection.

Adjustments to Reserve Study - Should components suggested by Consultant be removed fromthe reserve study or any life cycles or costs other than current bids, engineering constructionstandards, or current component history be used in this reserve study the Client accepts fullresponsibility for the results of the reserve study and is not warranted by Consultant.



Information Provided - Quantity, design and material information included in this report wasprovided in part by the Association and is subject to course of construction changes.

Limitations on Inventory -The following items, but not limited to, may not be included in thephysical analysis because they have a useful life greater than 30 years. Grading/drainage,foundations/footings, party walls, bearing and shear walls, perimeter walls, beams, columnsand girders, sub floors, unfinished floors, concrete stair surfaces, windows, exterior doors,window and door frames, plumbing system, flues (chimneys), air delivery or return systems,ducts, chutes, conduits, pipes, plumbing, sanitary sewage and storm drains, wire, telephone,cable, central television system, sprinklers systems and internet lines.

Warranty or Guaranty - This reserve study and its recommendations should not be construedin any way to constitute a warranty or guaranty regarding the current or future performanceof the components. Components will be replaced as required, not necessarily in their expectedreplacement year.

Annual Updates - Often times there can be a significant expenditure in those years thatexceeds the life of the reserve study. Hence, annual updates should be done to allowadjustments in the reserve contribution each year if required.

Tax Consequences - The tax consequences are not considered in this reserve study due to theuncertainty of all factors affecting net taxable income and the election of the tax form to befiled.

We recommend a building envelope (water intrusion) inspection every twelve years and aroofing inspection every six years (not funded in the reserve).

House Bill 955 (HB 955), in Oregon since 1/1/2006, specifically calls for the provision of areserve study, reserve study update, maintenance plan and reserve summary. ORS 94.595states that: "The board of directors of the association annually shall conduct a reserve study,or review and update an existing reserve study to determine the reserve study requirements".In addition ORS 94.595 (3)(B)(c) and ORS 100.175 (3)(C)(c) further require that a ReserveStudy Update be done each year.



House Bill 2665 (Chapter 409, Oregon Laws 2007) revises portions on SB 955 by removing therequirement for a maintenance plan from the reserve study and makes it a separaterequirement. Also, after 9/27/2007 HB 2665 no longer requires that owners be provided areserve summary of the reserve study or any revisions thereto.

Further House Bill 2665 makes windows and unit access doors, except for glazing andscreening, general common elements, unless Declaration provides otherwise, (Sec 5).

NOTE: Management or the Board shall notify the reserve study provider if the windows anddoors are the responsibility of the Association and if so, will be added to the next update of thereserve study. Management or the Association to provide the count of windows and doorsincluding type and size.

Preparation of a Reserve Study

Data is collected from many sources to prepare a reserve study and a variety of documentreviews, interviews, and site observations are required to adequately fulfill our duties as areserve provider. The following sources, but not limited to, and methods were utilized in thepreparation of this reserve study document:

Property Management Personnel Interviews

As built Plans and Specifications Document Reviews

On-site Observations - If Applicable

In-house company consultations with accredited RS and PRA personnel

Discussions with Engineering or Architectural Consultants

RS Means Facilities Maintenance & Repair Cost Data, 22nd Edition (2015) printedmanual

Interviewing General Contractor Consultants

tabular list of commonly owned items has been developed and given a current conditiongrade, expected useful life, and remaining useful life. A portion of that data will determine inwhat year it is estimated the component should be replaced.



Infrastructure Exposure: The possibility of infrastructure system failures as buildings

age such as, but not limited to, aluminum wiring, cast iron piping, polybutylene plumbing and

coaxial cable may be a threat to the soundness of a building or the expected heath both

physically and financially to all owners.

We strongly suggest the board have a qualified , credentialed, bonded and licensed engineer or

architect inspect the infrastructure for any signs of failure or potential liability of any kind to

owners and provide a written report to the board for future concerns and mitigation and the

estimated cost for potential repairs, maintenance or replacement including expected remaining

useful life.

Tests may include ultrasound, thermographic imaging , sonar imaging and video snaking.

These infrastructure components are not considered in the reserve study as they may be out of

view (hidden) or beyond the expertise of the reserve study provider.

Property Information

Original Starting Date of Reserve Study - Unless otherwise indicated, we have used January 1,1977 and 1978 to begin aging the original components in this reserve study.

Number of Units/Lots and Location - This reserve study is a total of 272 units located inPortland, Oregon with 58 buildings being built in 1977 and 1978 and includes a clubhouse,pool and three tennis courts. Buildings range from 2 to 3 story and are wood frame with cedarshingle roofs and wood siding. In accordance with the Declaration the Association shallprovide exterior maintenanceon each unit, such aspaint, maintenance, repairs and replacementof roofs, gutters, downspouts, rain drains, and exterior building surfaces.

Date of Last Reserve Study (if applicable) - The last on-site physical analysis was completed onOctober 3, 2014 for the fiscal year 2015.

NOTE: All interest accrued from reserve savings account(s) must remain in the reserve savingsaccount(s) and not used as an off-set for operating expenses.



NOTE: A on-site Property Condition Report by RDH Building Sciences, Inc was done in 2011and information in that report was used in this reserve study to determine useful lives andreplacement costs of the Common Element components. That report is attached here byreference.

Funding Required - A minimum threshold of $63,246 is shown over the thirty years of thisreserve study with a monthly reserve assessment of $125.00 per unit and an annual increase of22.05% through the fiscal year 2019.

The industry standards for 100 percent funded are:

0% to 29% - Poor

30% to 69% - Fair

70% to 100% - Good

This association is 6% funded on 1/1/2016 as it relates to being fully funded.

Base Line Funding Model Summary of Calculations

Required Month Contribution $34,000.00$125.00 per unit monthly

Average Net Month Interest EarnedTotal Month Allocation to Reserves $34,000.00

$125.00 per unit monthly

Association of Unit Owners of Sylvan Heights CondominiumBase Assessment Funding Model Projection


Beginning Balance: $560,629Projected Fully

Current Annual Annual Annual Ending Funded PercentYear Cost Contribution Interest Expenditures Reserves Reserves Funded

2016 4,742,320 408,000 805,113 163,516 2,819,497 6%2017 4,634,205 497,964 587,055 74,425 2,901,661 3%2018 4,750,061 607,765 618,944 63,246 3,009,805 2%2019 4,868,812 741,777 589,541 215,482 3,169,374 7%2020 4,990,532 905,339 215 598,341 522,695 3,393,581 15%2021 4,906,551 905,339 297 864,380 563,952 2,964,284 19%2022 5,029,215 905,339 1,206 451,914 1,018,582 3,179,482 32%2023 5,154,945 905,339 2,062 478,808 1,447,176 3,387,510 43%2024 5,283,819 905,339 2,803 537,278 1,818,039 3,556,014 51%2025 5,415,914 905,339 3,618 500,803 2,226,193 3,782,276 59%2026 5,544,588 905,339 4,444 496,511 2,639,465 4,021,095 66%2027 5,683,202 905,339 5,232 516,293 3,033,743 4,269,001 71%2028 5,825,282 905,339 6,173 440,458 3,504,796 4,618,275 76%2029 5,970,914 905,339 4,352 1,820,979 2,593,509 3,570,481 73%2030 6,120,187 905,339 2,517 1,826,508 1,674,857 2,509,340 67%2031 6,273,192 905,339 1,715 1,308,497 1,273,414 1,975,404 64%2032 6,430,022 905,339 2,315 607,323 1,573,744 2,169,787 73%2033 6,590,772 905,339 2,971 580,058 1,901,996 2,416,416 79%2034 6,755,541 905,339 3,436 675,988 2,134,784 2,590,073 82%2035 6,924,430 905,339 4,048 602,799 2,441,372 2,863,777 85%2036 7,097,541 905,339 4,505 680,967 2,670,250 3,084,499 87%2037 7,274,979 905,339 5,133 596,340 2,984,382 3,419,261 87%2038 7,456,854 905,339 5,748 603,086 3,292,383 3,777,249 87%2039 7,643,275 905,339 6,003 783,875 3,419,850 3,980,162 86%2040 7,834,357 905,339 6,471 677,378 3,654,282 4,320,853 85%2041 8,030,216 905,339 6,627 833,921 3,732,327 4,532,165 82%2042 8,230,971 905,339 7,048 701,655 3,943,059 4,909,192 80%2043 8,436,745 905,339 7,224 824,766 4,030,856 5,193,403 78%2044 8,647,664 905,339 7,196 926,197 4,017,195 5,405,503 74%2045 8,863,856 905,339 6,815 1,103,006 3,826,343 5,466,556 70%

Association of Unit Owners of Sylvan Heights CondominiumBase Line Funding Model & Fully Funded Comparison Chart


The Current Assessment Funding Model is based on the current annual assessment, parameters, and reservefund balance. Because it is calculated using the current annual assessment, it will give the accurate projection ofhow well the association is funded for the next 30 years of planned reserve expenditures.

Association of Unit Owners of Sylvan Heights CondominiumPortland, Oregon

Component Summary


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Asphalt: Overlay-Clubhouse-Office 7,623 24 13 0 17.25 2,535Asphalt: Overlay-Streets 572,826 24 13 0 1,296.20 190,456Asphalt: Repairs-Clubhouse-Office 447 5 4 0 3.31 81Asphalt: Repairs-Streets 10,779 5 0 4 10,779 72.19 10,779Asphalt: Seal Coat-Clubhouse-Office 1,209 5 4 0 8.95 219Asphalt: Seal Coat-Streets 39,924 5 0 4 39,924 267.38 39,924Buildings-7500: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7502: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7504: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7508: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7510: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7512: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7514: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7518: Crawl Space & Later.. 6,461 30 2 10 0 95.84 5,842Buildings-7520: Crawl Space & Later.. 6,788 30 4 12 0 50.27 5,564Buildings-7528: Crawl Space & Later.. 6,304 30 1 9 5,992 8.97 5,992Buildings-7530: Crawl Space & Later.. 6,304 30 1 9 5,992 8.97 5,992Buildings-7534: Crawl Space & Later.. 12,585 30 29 0 12.61 205Buildings-7536: Crawl Space & Later.. 6,150 30 0 8 6,150 12.49 6,150Buildings-7552: Crawl Space & Later.. 6,623 30 3 11 0 65.44 5,700Buildings-7554: Crawl Space & Later.. 6,623 30 3 11 0 65.44 5,700Buildings-7602: Crawl Space & Later.. 6,150 30 0 6 6,150 12.49 6,150Buildings-7702: Crawl Space & Later.. 6,150 30 0 5 6,150 12.49 6,150Buildings-7704: Crawl Space & Later.. 6,150 30 0 6 6,150 12.49 6,150Buildings-7706: Crawl Space & Later.. 6,150 30 0 6 6,150 12.49 6,150Buildings-7710: Crawl Space & Later.. 6,461 30 2 10 0 95.84 5,842Buildings-7712: Crawl Space & Later.. 6,461 30 2 10 0 95.84 5,842Buildings-7714: Crawl Space & Later.. 6,623 30 3 11 0 65.44 5,700Buildings-7716: Crawl Space & Later.. 6,461 30 2 10 0 95.84 5,842Buildings-7726: Crawl Space & Later.. 8,405 30 1 9 7,990 11.97 7,990Buildings-7730: Crawl Space & Later.. 6,304 30 1 9 5,992 8.97 5,992Buildings-7736: Crawl Space & Later.. 6,150 30 0 8 6,150 12.49 6,150Buildings-7738: Crawl Space & Later.. 6,150 30 0 6 6,150 12.49 6,150Buildings-7740: Crawl Space & Later.. 6,150 30 0 7 6,150 12.49 6,150Buildings-7742: Crawl Space & Later.. 6,150 30 0 6 6,150 12.49 6,150Buildings-7744: Crawl Space & Later.. 8,200 30 0 7 8,200 16.65 8,200Buildings-7746: Crawl Space & Later.. 6,150 30 0 7 6,150 12.49 6,150Buildings-7750: Crawl Space & Later.. 6,150 30 0 7 6,150 12.49 6,150Buildings-7752: Crawl Space & Later.. 6,623 30 3 11 0 65.44 5,700Buildings: Deck Coatings-Repair 5,253 1 0 1 5,253 159.85 5,253Buildings: Dry-Rot-Repair 70,000 1 0 70,000 2,130.06 70,000Buildings: Electrical Renovation 11,038 40 2 0 163.72 9,981Buildings: Heater-Laundry Room-Re.. 1,493 10 3 0 14.76 971Buildings: Hot Water Heaters-Replace 2,080 5 0 5 2,080 13.93 2,080


Component Summary


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Buildings: Plumbing Renovation 11,038 40 2 0 163.72 9,981Buildings: Washer & Dryers-Replace unfundedCarport: Detached-Paint-01 2,101 9 0 2,101 8.60 2,101Carport: Detached-Paint-02 4,202 7 0 1 4,202 21.09 4,202Carport: Repairs 21,012 15 0 21,012 59.59 21,012Clubhouse: Appliances-Replace 3,863 15 2 0 57.30 3,187Clubhouse: Carpet-Replace 11,240 10 9 0 36.85 900Clubhouse: Conference Room-Renewal 4,967 10 2 2 0 73.67 3,940Clubhouse: Decks & Stairs-Replace 8,166 15 2 0 121.13 6,737Clubhouse: Exterior-Paint 14,621 7 6 0 72.07 1,801Clubhouse: Fireplace-Replace 2,760 15 2 0 40.93 2,276Clubhouse: Flooring-Wood-Entry-Re.. 1,499 10 9 0 4.91 120Clubhouse: Furniture-Replace 9,934 15 2 0 147.35 8,195Clubhouse: Gym Equipment-Replace 13,246 15 2 0 196.47 10,926Clubhouse: HVAC-Replace 31,085 15 12 0 76.26 4,623Clubhouse: Interior-Painting 8,321 10 5 0 49.25 3,677Clubhouse: Locker Rooms-Renovation 6,788 15 3 0 67.07 5,043Clubhouse: Office Equipment & Furn.. 5,519 6 2 2 0 81.86 3,940Clubhouse: Parking Deck-Replace 32,802 20 9 0 107.54 14,446Clubhouse: Sauna Heaters-Replace 1,312 10 9 0 4.30 105Clubhouse: Spa Heater-Replace 2,872 10 9 0 9.42 230Clubhouse: Spa Jet Pump-Replace 914 10 8 0 3.37 150Clubhouse: Spa Pump-Replace 2,377 10 5 0 14.07 1,051Clubhouse: Spa-Replaster 4,945 15 14 0 10.38 233Clubhouse: Tile Flooring-Replace 6,395 30 17 0 11.03 1,821Clubhouse: Water Heater-Replace 566 15 3 6 0 5.59 450Common Area: Contingency 10,506 1 0 10,506 319.70 10,506Common Area: Curbing-Repair 9,991 10 7 0 42.18 2,521Common Area: Fence: Chain Link-Pe.. 11,581 50 14 0 24.31 5,901Common Area: Golf Cart-Replace 7,798 30 16 0 14.30 2,451Common Area: Guardrail-Repair 5,375 30 29 0 5.39 88Common Area: Insurance-Deductible 10,000 1 0 10,000 304.29 10,000Common Area: Lighting-Replace 89,694 30 29 0 89.87 1,461Common Area: Signage-Repair 2,627 5 0 -1 2,627 17.59 2,627Common Area: Storm System-Hydro .. 16,971 5 3 3 0 167.69 9,850Common Area: Wheel Stops-Replace 32,148 30 27 0 34.65 1,650Gutters & Downspouts: Replace-01 35,937 30 26 0 40.26 2,521Gutters & Downspouts: Replace-02 61,392 30 27 0 66.17 3,152Gutters & Downspouts: Replace-03 62,927 30 28 0 65.36 2,101Gutters & Downspouts: Replace-04 30,100 30 29 0 30.16 490Gutters & Downspouts: Replace-05 27,950 30 29 0 28.01 455Gutters & Downspouts: Replace-06 15,076 30 1 14,218 24.83 14,218Gutters & Downspouts: Replace-07 18,765 30 2 0 278.32 16,670Gutters & Downspouts: Replace-08 4,526 30 3 0 44.72 3,782


Component Summary


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Gutters & Downspouts: Replace-09 20,874 30 4 0 154.57 16,390Landscape: Improvements 24,977 10 9 0 81.89 2,000Landscape: Irrigation System: Replac.. 356,606 40 5 11 0 2,110.88 284,287Landscape: Sidewalks-Repair-01 57,985 1 4 7 0 429.37 26,266Landscape: Sidewalks-Repair-02 20,500 1 1 4 16,000 132.87 16,000Landscape: Stairs-Repair 133,250 1 0 2 133,250 4,054.72 133,250Pool: Brick Wall-Repair 3,281 15 8 0 12.11 1,257Pool: Coping 10,231 20 19 0 15.77 320Pool: Fence-Maintenance 3,938 10 9 0 12.91 315Pool: Fence-Replace 30,665 50 36 0 24.62 3,530Pool: Furniture-Replace 4,308 15 1 3,922 11.26 3,922Pool: Heater-Replace 4,945 15 14 0 10.38 233Pool: Pump House-Repair 839 10 28 20 0 0.87 28Pool: Pump-Replace 1,696 15 14 0 3.56 80Pool: Replaster 15,076 15 1 13,728 39.41 13,728Roofs: Membrane-Replace 668,028 25 14 0 1,402.58 208,024Roofs: Shake-Maintenance-01 84,856 5 3 0 838.43 31,519Roofs: Shake-Maintenance-02 63,037 5 0 2 63,037 422.18 63,037Roofs: Shake-Replace-01 137,600 30 0 -14 137,600 279.35 137,600Roofs: Shake-Replace-02 614,500 30 13 0 1,390.50 252,603Roofs: Shake-Replace-03 629,862 30 14 1 0 1,322.45 244,455Roofs: Shake-Replace-04 645,609 30 15 2 0 1,264.17 236,816Siding-Decks-Railings: Repairs-01 123,000 1 0 123,000 3,742.82 123,000Siding-Decks-Railings: Repairs-02 51,250 1 0 2 51,250 1,559.51 51,250Siding-Decks-Railings: Repairs-03 23,774 1 5 0 140.73 3,502Siding: Exterior-Paint-01 55,949 9 8 0 206.52 5,102Siding: Exterior-Paint-02 42,640 9 0 42,640 174.59 42,640Siding: Exterior-Paint-03 47,068 9 1 40,818 183.70 40,818Siding: Exterior-Paint-04 58,583 9 2 0 868.92 43,369Siding: Exterior-Paint-05 14,129 9 3 0 139.60 8,747Siding: Exterior-Paint-06 65,169 9 4 0 482.57 32,800Siding: Exterior-Paint-07 66,798 9 5 0 395.40 26,240Siding: Exterior-Paint-08 98,899 9 6 0 487.48 28,427Siding: Exterior-Paint-09 116,967 9 7 0 493.80 21,867Tennis Court: Chain Link Fence-Repl.. 37,445 40 5 1 0 221.65 29,060Tennis Court: Light Timers-Replace 1,305 10 4 5 0 9.66 867Tennis Court: Lights-Repair 12,923 25 1 12,103 23.78 12,103Tennis Court: Nets-Replace 775 10 1 681 2.78 681Tennis Court: Resurface 51,691 10 1 7,020 1,325.83 45,387Tennis Court: Retaining Wall-Repair 22,076 40 2 0 327.44 19,962


Component Summary


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Asset Summary Total: $6,074,661 $939,570 $32,980 $2,900,544Contingency at 3.00% $29,059 $1,020 $89,708Grand Total: $968,629 $34,000 $2,990,252

Association of Unit Owners of Sylvan Heights CondominiumAnnual Expenditure Detail


Description Expenditures

Replacement Year 2016Asphalt: Repairs-Streets 10,779Asphalt: Seal Coat-Streets 39,924Buildings-7536: Crawl Space & Laterals-Repairs 6,150Buildings-7602: Crawl Space & Laterals-Repairs 6,150Buildings-7702: Crawl Space & Laterals-Repairs 6,150Buildings-7704: Crawl Space & Laterals-Repairs 6,150Buildings-7706: Crawl Space & Laterals-Repairs 6,150Buildings-7736: Crawl Space & Laterals-Repairs 6,150Buildings-7738: Crawl Space & Laterals-Repairs 6,150Buildings-7740: Crawl Space & Laterals-Repairs 6,150Buildings-7742: Crawl Space & Laterals-Repairs 6,150Buildings-7744: Crawl Space & Laterals-Repairs 8,200Buildings-7746: Crawl Space & Laterals-Repairs 6,150Buildings-7750: Crawl Space & Laterals-Repairs 6,150Buildings: Deck Coatings-Repair 5,253Buildings: Dry-Rot-Repair 70,000Buildings: Hot Water Heaters-Replace 2,080Carport: Detached-Paint-01 2,101Carport: Detached-Paint-02 4,202Carport: Repairs 21,012Common Area: Contingency 10,506Common Area: Insurance-Deductible 10,000Common Area: Signage-Repair 2,627Landscape: Stairs-Repair 133,250Roofs: Shake-Maintenance-02 63,037Roofs: Shake-Replace-01 137,600Siding-Decks-Railings: Repairs-01 123,000Siding-Decks-Railings: Repairs-02 51,250Siding: Exterior-Paint-02 42,640

Total for 2016 $805,113

Replacement Year 2017Buildings-7528: Crawl Space & Laterals-Repairs 6,304Buildings-7530: Crawl Space & Laterals-Repairs 6,304Buildings-7726: Crawl Space & Laterals-Repairs 8,405Buildings-7730: Crawl Space & Laterals-Repairs 6,304Buildings: Deck Coatings-Repair 5,384Buildings: Dry-Rot-Repair 71,750




Replacement Year 2017 continued...Gutters & Downspouts: Replace-06 15,076Landscape: Sidewalks-Repair-02 20,500Landscape: Stairs-Repair 136,581Pool: Furniture-Replace 4,308Pool: Replaster 15,076Siding-Decks-Railings: Repairs-01 126,075Siding-Decks-Railings: Repairs-02 52,531Siding: Exterior-Paint-03 47,068Tennis Court: Lights-Repair 12,923Tennis Court: Nets-Replace 775Tennis Court: Resurface 51,691

Total for 2017 $587,055

Replacement Year 2018Buildings-7518: Crawl Space & Laterals-Repairs 6,461Buildings-7710: Crawl Space & Laterals-Repairs 6,461Buildings-7712: Crawl Space & Laterals-Repairs 6,461Buildings-7716: Crawl Space & Laterals-Repairs 6,461Buildings: Deck Coatings-Repair 5,519Buildings: Dry-Rot-Repair 73,544Buildings: Electrical Renovation 11,038Buildings: Plumbing Renovation 11,038Clubhouse: Appliances-Replace 3,863Clubhouse: Conference Room-Renewal 4,967Clubhouse: Decks & Stairs-Replace 8,166Clubhouse: Fireplace-Replace 2,760Clubhouse: Furniture-Replace 9,934Clubhouse: Gym Equipment-Replace 13,246Clubhouse: Office Equipment & Furniture 5,519Gutters & Downspouts: Replace-07 18,765Landscape: Sidewalks-Repair-02 21,012Landscape: Stairs-Repair 139,996Siding-Decks-Railings: Repairs-01 129,227Siding-Decks-Railings: Repairs-02 53,845Siding: Exterior-Paint-04 58,583Tennis Court: Retaining Wall-Repair 22,076

Total for 2018 $618,944




Replacement Year 2019Buildings-7552: Crawl Space & Laterals-Repairs 6,623Buildings-7554: Crawl Space & Laterals-Repairs 6,623Buildings-7714: Crawl Space & Laterals-Repairs 6,623Buildings-7752: Crawl Space & Laterals-Repairs 6,623Buildings: Deck Coatings-Repair 5,657Buildings: Dry-Rot-Repair 75,382Buildings: Heater-Laundry Room-Replace 1,493Clubhouse: Locker Rooms-Renovation 6,788Clubhouse: Water Heater-Replace 566Common Area: Storm System-Hydro Jet 16,971Gutters & Downspouts: Replace-08 4,526Landscape: Sidewalks-Repair-02 21,538Landscape: Stairs-Repair 143,496Roofs: Shake-Maintenance-01 84,856Siding-Decks-Railings: Repairs-01 132,458Siding-Decks-Railings: Repairs-02 55,191Siding: Exterior-Paint-05 14,129

Total for 2019 $589,541

Replacement Year 2020Asphalt: Repairs-Clubhouse-Office 447Asphalt: Seal Coat-Clubhouse-Office 1,209Buildings-7520: Crawl Space & Laterals-Repairs 6,788Buildings: Deck Coatings-Repair 5,798Buildings: Dry-Rot-Repair 77,267Gutters & Downspouts: Replace-09 20,874Landscape: Sidewalks-Repair-01 57,985Landscape: Sidewalks-Repair-02 22,076Landscape: Stairs-Repair 147,083Siding-Decks-Railings: Repairs-01 135,769Siding-Decks-Railings: Repairs-02 56,570Siding: Exterior-Paint-06 65,169Tennis Court: Light Timers-Replace 1,305

Total for 2020 $598,341

Replacement Year 2021Asphalt: Repairs-Streets 12,196Asphalt: Seal Coat-Streets 45,170




Replacement Year 2021 continued...Buildings: Deck Coatings-Repair 5,943Buildings: Dry-Rot-Repair 79,199Buildings: Hot Water Heaters-Replace 2,354Clubhouse: Interior-Painting 8,321Clubhouse: Spa Pump-Replace 2,377Common Area: Signage-Repair 2,972Landscape: Irrigation System: Replacement 356,606Landscape: Sidewalks-Repair-01 59,434Landscape: Sidewalks-Repair-02 22,628Siding-Decks-Railings: Repairs-01 139,163Siding-Decks-Railings: Repairs-03 23,774Siding: Exterior-Paint-07 66,798Tennis Court: Chain Link Fence-Replace 37,445

Total for 2021 $864,380

Replacement Year 2022Buildings: Deck Coatings-Repair 6,092Buildings: Dry-Rot-Repair 81,179Clubhouse: Exterior-Paint 14,621Landscape: Sidewalks-Repair-01 60,920Landscape: Sidewalks-Repair-02 23,194Siding-Decks-Railings: Repairs-01 142,642Siding-Decks-Railings: Repairs-03 24,368Siding: Exterior-Paint-08 98,899

Total for 2022 $451,914

Replacement Year 2023Buildings: Deck Coatings-Repair 6,244Buildings: Dry-Rot-Repair 83,208Carport: Detached-Paint-02 4,995Common Area: Curbing-Repair 9,991Landscape: Sidewalks-Repair-01 62,443Landscape: Sidewalks-Repair-02 23,774Siding-Decks-Railings: Repairs-01 146,208Siding-Decks-Railings: Repairs-03 24,977Siding: Exterior-Paint-09 116,967

Total for 2023 $478,808




Replacement Year 2024Buildings: Deck Coatings-Repair 6,400Buildings: Dry-Rot-Repair 85,288Clubhouse: Office Equipment & Furniture 6,400Clubhouse: Spa Jet Pump-Replace 914Common Area: Storm System-Hydro Jet 19,201Landscape: Sidewalks-Repair-01 64,004Landscape: Sidewalks-Repair-02 24,368Pool: Brick Wall-Repair 3,281Roofs: Shake-Maintenance-01 96,006Siding-Decks-Railings: Repairs-01 149,864Siding-Decks-Railings: Repairs-03 25,602Siding: Exterior-Paint-01 55,949

Total for 2024 $537,278

Replacement Year 2025Asphalt: Repairs-Clubhouse-Office 506Asphalt: Seal Coat-Clubhouse-Office 1,368Buildings: Deck Coatings-Repair 6,560Buildings: Dry-Rot-Repair 87,420Carport: Detached-Paint-01 2,624Clubhouse: Carpet-Replace 11,240Clubhouse: Flooring-Wood-Entry-Replace 1,499Clubhouse: Parking Deck-Replace 32,802Clubhouse: Sauna Heaters-Replace 1,312Clubhouse: Spa Heater-Replace 2,872Landscape: Improvements 24,977Landscape: Sidewalks-Repair-01 65,604Landscape: Sidewalks-Repair-02 24,977Pool: Fence-Maintenance 3,938Siding-Decks-Railings: Repairs-01 153,610Siding-Decks-Railings: Repairs-03 26,242Siding: Exterior-Paint-02 53,252

Total for 2025 $500,803

Replacement Year 2026Asphalt: Repairs-Streets 13,799Asphalt: Seal Coat-Streets 51,106Buildings: Dry-Rot-Repair 89,606




Replacement Year 2026 continued...Buildings: Hot Water Heaters-Replace 2,663Common Area: Signage-Repair 3,362Landscape: Sidewalks-Repair-01 67,244Landscape: Sidewalks-Repair-02 25,602Siding-Decks-Railings: Repairs-01 157,450Siding-Decks-Railings: Repairs-03 26,898Siding: Exterior-Paint-03 58,781

Total for 2026 $496,511

Replacement Year 2027Buildings: Dry-Rot-Repair 91,846Landscape: Sidewalks-Repair-01 68,926Landscape: Sidewalks-Repair-02 26,242Siding-Decks-Railings: Repairs-01 161,387Siding-Decks-Railings: Repairs-03 27,570Siding: Exterior-Paint-04 73,162Tennis Court: Nets-Replace 993Tennis Court: Resurface 66,169

Total for 2027 $516,293

Replacement Year 2028Buildings: Dry-Rot-Repair 94,142Clubhouse: Conference Room-Renewal 6,358Clubhouse: HVAC-Replace 31,085Landscape: Sidewalks-Repair-01 70,649Landscape: Sidewalks-Repair-02 26,898Siding-Decks-Railings: Repairs-01 165,421Siding-Decks-Railings: Repairs-03 28,259Siding: Exterior-Paint-05 17,645

Total for 2028 $440,458

Replacement Year 2029Asphalt: Overlay-Clubhouse-Office 7,623Asphalt: Overlay-Streets 572,826Buildings: Dry-Rot-Repair 96,496Buildings: Heater-Laundry Room-Replace 1,912Clubhouse: Exterior-Paint 17,380Common Area: Storm System-Hydro Jet 21,724




Replacement Year 2029 continued...Landscape: Sidewalks-Repair-01 72,415Landscape: Sidewalks-Repair-02 27,570Roofs: Shake-Maintenance-01 108,622Roofs: Shake-Replace-02 614,500Siding-Decks-Railings: Repairs-01 169,557Siding-Decks-Railings: Repairs-03 28,966Siding: Exterior-Paint-06 81,387

Total for 2029 $1,820,979

Replacement Year 2030Asphalt: Repairs-Clubhouse-Office 572Asphalt: Seal Coat-Clubhouse-Office 1,547Buildings: Dry-Rot-Repair 98,908Carport: Detached-Paint-02 5,938Clubhouse: Office Equipment & Furniture 7,423Clubhouse: Spa-Replaster 4,945Common Area: Fence: Chain Link-Perimeter 11,581Landscape: Sidewalks-Repair-01 74,225Landscape: Sidewalks-Repair-02 28,259Pool: Heater-Replace 4,945Pool: Pump-Replace 1,696Roofs: Membrane-Replace 668,028Roofs: Shake-Replace-03 629,862Siding-Decks-Railings: Repairs-01 173,796Siding-Decks-Railings: Repairs-03 29,690Siding: Exterior-Paint-07 83,422Tennis Court: Light Timers-Replace 1,670

Total for 2030 $1,826,508

Replacement Year 2031Asphalt: Repairs-Streets 15,612Asphalt: Seal Coat-Streets 57,821Buildings: Dry-Rot-Repair 101,381Buildings: Hot Water Heaters-Replace 3,013Carport: Repairs 30,432Clubhouse: Interior-Painting 10,651Clubhouse: Spa Pump-Replace 3,043Common Area: Signage-Repair 3,804




Replacement Year 2031 continued...Landscape: Sidewalks-Repair-01 76,081Landscape: Sidewalks-Repair-02 28,966Roofs: Shake-Replace-04 645,609Siding-Decks-Railings: Repairs-01 178,141Siding-Decks-Railings: Repairs-03 30,432Siding: Exterior-Paint-08 123,511

Total for 2031 $1,308,497

Replacement Year 2032Buildings: Dry-Rot-Repair 103,915Common Area: Golf Cart-Replace 7,798Landscape: Sidewalks-Repair-01 77,983Landscape: Sidewalks-Repair-02 29,690Pool: Furniture-Replace 6,239Pool: Replaster 21,835Siding-Decks-Railings: Repairs-01 182,594Siding-Decks-Railings: Repairs-03 31,193Siding: Exterior-Paint-09 146,075

Total for 2032 $607,323

Replacement Year 2033Buildings: Dry-Rot-Repair 106,513Clubhouse: Appliances-Replace 5,595Clubhouse: Decks & Stairs-Replace 11,827Clubhouse: Fireplace-Replace 3,997Clubhouse: Furniture-Replace 14,388Clubhouse: Gym Equipment-Replace 19,184Clubhouse: Tile Flooring-Replace 6,395Common Area: Curbing-Repair 12,789Landscape: Sidewalks-Repair-01 79,933Landscape: Sidewalks-Repair-02 30,432Siding-Decks-Railings: Repairs-01 187,159Siding-Decks-Railings: Repairs-03 31,973Siding: Exterior-Paint-01 69,873

Total for 2033 $580,058

Replacement Year 2034Buildings: Dry-Rot-Repair 109,176




Replacement Year 2034 continued...Carport: Detached-Paint-01 3,277Clubhouse: Locker Rooms-Renovation 9,832Clubhouse: Spa Jet Pump-Replace 1,170Clubhouse: Water Heater-Replace 819Common Area: Storm System-Hydro Jet 24,579Landscape: Sidewalks-Repair-01 81,931Landscape: Sidewalks-Repair-02 31,193Roofs: Shake-Maintenance-01 122,896Siding-Decks-Railings: Repairs-01 191,838Siding-Decks-Railings: Repairs-03 32,772Siding: Exterior-Paint-02 66,504

Total for 2034 $675,988

Replacement Year 2035Asphalt: Repairs-Clubhouse-Office 647Asphalt: Seal Coat-Clubhouse-Office 1,751Buildings: Dry-Rot-Repair 111,906Clubhouse: Carpet-Replace 14,388Clubhouse: Flooring-Wood-Entry-Replace 1,918Clubhouse: Sauna Heaters-Replace 1,680Clubhouse: Spa Heater-Replace 3,677Landscape: Improvements 31,973Landscape: Sidewalks-Repair-01 83,979Landscape: Sidewalks-Repair-02 31,973Pool: Coping 10,231Pool: Fence-Maintenance 5,041Siding-Decks-Railings: Repairs-01 196,634Siding-Decks-Railings: Repairs-03 33,592Siding: Exterior-Paint-03 73,410

Total for 2035 $602,799

Replacement Year 2036Asphalt: Repairs-Streets 17,663Asphalt: Seal Coat-Streets 65,420Buildings: Dry-Rot-Repair 114,703Buildings: Hot Water Heaters-Replace 3,409Clubhouse: Exterior-Paint 20,659Clubhouse: Office Equipment & Furniture 8,608




Replacement Year 2036 continued...Common Area: Signage-Repair 4,304Landscape: Sidewalks-Repair-01 86,079Landscape: Sidewalks-Repair-02 32,772Siding-Decks-Railings: Repairs-01 201,550Siding-Decks-Railings: Repairs-03 34,431Siding: Exterior-Paint-04 91,369

Total for 2036 $680,967

Replacement Year 2037Buildings: Dry-Rot-Repair 117,571Carport: Detached-Paint-02 7,058Landscape: Sidewalks-Repair-01 88,231Landscape: Sidewalks-Repair-02 33,592Siding-Decks-Railings: Repairs-01 206,589Siding-Decks-Railings: Repairs-03 35,292Siding: Exterior-Paint-05 22,036Tennis Court: Nets-Replace 1,271Tennis Court: Resurface 84,701

Total for 2037 $596,340

Replacement Year 2038Buildings: Dry-Rot-Repair 120,510Clubhouse: Conference Room-Renewal 8,139Landscape: Sidewalks-Repair-01 90,436Landscape: Sidewalks-Repair-02 34,431Siding-Decks-Railings: Repairs-01 211,753Siding-Decks-Railings: Repairs-03 36,175Siding: Exterior-Paint-06 101,642

Total for 2038 $603,086

Replacement Year 2039Buildings: Dry-Rot-Repair 123,523Buildings: Heater-Laundry Room-Replace 2,447Common Area: Storm System-Hydro Jet 27,809Landscape: Sidewalks-Repair-01 92,697Landscape: Sidewalks-Repair-02 35,292Pool: Brick Wall-Repair 4,753Roofs: Shake-Maintenance-01 139,046




Replacement Year 2039 continued...Siding-Decks-Railings: Repairs-01 217,047Siding-Decks-Railings: Repairs-03 37,079Siding: Exterior-Paint-07 104,183

Total for 2039 $783,875

Replacement Year 2040Asphalt: Repairs-Clubhouse-Office 733Asphalt: Seal Coat-Clubhouse-Office 1,981Buildings: Dry-Rot-Repair 126,611Landscape: Sidewalks-Repair-01 95,015Landscape: Sidewalks-Repair-02 36,175Siding-Decks-Railings: Repairs-01 222,473Siding-Decks-Railings: Repairs-03 38,006Siding: Exterior-Paint-08 154,248Tennis Court: Light Timers-Replace 2,138

Total for 2040 $677,378

Replacement Year 2041Asphalt: Repairs-Streets 19,984Asphalt: Seal Coat-Streets 74,016Buildings: Dry-Rot-Repair 129,776Buildings: Hot Water Heaters-Replace 3,857Clubhouse: Interior-Painting 13,635Clubhouse: Spa Pump-Replace 3,896Common Area: Signage-Repair 4,869Landscape: Sidewalks-Repair-01 97,390Landscape: Sidewalks-Repair-02 37,079Siding-Decks-Railings: Repairs-01 228,035Siding-Decks-Railings: Repairs-03 38,956Siding: Exterior-Paint-09 182,428

Total for 2041 $833,921

Replacement Year 2042Buildings: Dry-Rot-Repair 133,020Clubhouse: Office Equipment & Furniture 9,982Gutters & Downspouts: Replace-01 35,937Landscape: Sidewalks-Repair-01 99,825Landscape: Sidewalks-Repair-02 38,006




Replacement Year 2042 continued...Siding-Decks-Railings: Repairs-01 233,736Siding-Decks-Railings: Repairs-03 39,930Siding: Exterior-Paint-01 87,261Tennis Court: Lights-Repair 23,958

Total for 2042 $701,655

Replacement Year 2043Buildings: Dry-Rot-Repair 136,346Carport: Detached-Paint-01 4,093Clubhouse: Exterior-Paint 24,557Clubhouse: HVAC-Replace 45,021Common Area: Curbing-Repair 16,371Common Area: Wheel Stops-Replace 32,148Gutters & Downspouts: Replace-02 61,392Landscape: Sidewalks-Repair-01 102,320Landscape: Sidewalks-Repair-02 38,956Siding-Decks-Railings: Repairs-01 239,579Siding-Decks-Railings: Repairs-03 40,928Siding: Exterior-Paint-02 83,054

Total for 2043 $824,766

Replacement Year 2044Buildings: Dry-Rot-Repair 139,755Carport: Detached-Paint-02 8,390Clubhouse: Spa Jet Pump-Replace 1,497Common Area: Storm System-Hydro Jet 31,464Gutters & Downspouts: Replace-03 62,927Landscape: Sidewalks-Repair-01 104,878Landscape: Sidewalks-Repair-02 39,930Pool: Pump House-Repair 839Roofs: Shake-Maintenance-01 157,318Siding-Decks-Railings: Repairs-01 245,569Siding-Decks-Railings: Repairs-03 41,951Siding: Exterior-Paint-03 91,679

Total for 2044 $926,197

Replacement Year 2045Asphalt: Repairs-Clubhouse-Office 829




Replacement Year 2045 continued...Asphalt: Seal Coat-Clubhouse-Office 2,241Buildings-7500: Crawl Space & Laterals-Repairs 12,585Buildings-7502: Crawl Space & Laterals-Repairs 12,585Buildings-7504: Crawl Space & Laterals-Repairs 12,585Buildings-7508: Crawl Space & Laterals-Repairs 12,585Buildings-7510: Crawl Space & Laterals-Repairs 12,585Buildings-7512: Crawl Space & Laterals-Repairs 12,585Buildings-7514: Crawl Space & Laterals-Repairs 12,585Buildings-7534: Crawl Space & Laterals-Repairs 12,585Buildings: Dry-Rot-Repair 143,249Clubhouse: Carpet-Replace 18,418Clubhouse: Flooring-Wood-Entry-Replace 2,456Clubhouse: Parking Deck-Replace 53,750Clubhouse: Sauna Heaters-Replace 2,150Clubhouse: Spa Heater-Replace 4,707Clubhouse: Spa-Replaster 7,162Common Area: Guardrail-Repair 5,375Common Area: Lighting-Replace 89,694Gutters & Downspouts: Replace-04 30,100Gutters & Downspouts: Replace-05 27,950Landscape: Improvements 40,928Landscape: Sidewalks-Repair-01 107,500Landscape: Sidewalks-Repair-02 40,928Pool: Fence-Maintenance 6,452Pool: Heater-Replace 7,162Pool: Pump-Replace 2,456Siding-Decks-Railings: Repairs-01 251,708Siding-Decks-Railings: Repairs-03 43,000Siding: Exterior-Paint-04 114,108

Total for 2045 $1,103,006



2016 2017 2018 2019 2020 2021 2022 2023 2024 2025DescriptionAsphalt: Overlay-Clubhouse-OfficeAsphalt: Overlay-StreetsAsphalt: Repairs-Clubhouse-Office 447 506Asphalt: Repairs-Streets 10,779 12,196Asphalt: Seal Coat-Clubhouse-Office 1,209 1,368Asphalt: Seal Coat-Streets 39,924 45,170Buildings-7500: Crawl Space & Laterals-Repai..Buildings-7502: Crawl Space & Laterals-Repai..Buildings-7504: Crawl Space & Laterals-Repai..Buildings-7508: Crawl Space & Laterals-Repai..Buildings-7510: Crawl Space & Laterals-Repai..Buildings-7512: Crawl Space & Laterals-Repai..Buildings-7514: Crawl Space & Laterals-Repai..Buildings-7518: Crawl Space & Laterals-Repai.. 6,461Buildings-7520: Crawl Space & Laterals-Repai.. 6,788Buildings-7528: Crawl Space & Laterals-Repai.. 6,304Buildings-7530: Crawl Space & Laterals-Repai.. 6,304Buildings-7534: Crawl Space & Laterals-Repai..Buildings-7536: Crawl Space & Laterals-Repai.. 6,150Buildings-7552: Crawl Space & Laterals-Repai.. 6,623Buildings-7554: Crawl Space & Laterals-Repai.. 6,623Buildings-7602: Crawl Space & Laterals-Repai.. 6,150Buildings-7702: Crawl Space & Laterals-Repai.. 6,150Buildings-7704: Crawl Space & Laterals-Repai.. 6,150Buildings-7706: Crawl Space & Laterals-Repai.. 6,150Buildings-7710: Crawl Space & Laterals-Repai.. 6,461Buildings-7712: Crawl Space & Laterals-Repai.. 6,461Buildings-7714: Crawl Space & Laterals-Repai.. 6,623Buildings-7716: Crawl Space & Laterals-Repai.. 6,461Buildings-7726: Crawl Space & Laterals-Repai.. 8,405Buildings-7730: Crawl Space & Laterals-Repai.. 6,304Buildings-7736: Crawl Space & Laterals-Repai.. 6,150Buildings-7738: Crawl Space & Laterals-Repai.. 6,150Buildings-7740: Crawl Space & Laterals-Repai.. 6,150Buildings-7742: Crawl Space & Laterals-Repai.. 6,150



2016 2017 2018 2019 2020 2021 2022 2023 2024 2025DescriptionBuildings-7744: Crawl Space & Laterals-Repai.. 8,200Buildings-7746: Crawl Space & Laterals-Repai.. 6,150Buildings-7750: Crawl Space & Laterals-Repai.. 6,150Buildings-7752: Crawl Space & Laterals-Repai.. 6,623Buildings: Deck Coatings-Repair 5,253 5,384 5,519 5,657 5,798 5,943 6,092 6,244 6,400 6,560Buildings: Dry-Rot-Repair 70,000 71,750 73,544 75,382 77,267 79,199 81,179 83,208 85,288 87,420Buildings: Electrical Renovation 11,038Buildings: Heater-Laundry Room-Replace 1,493Buildings: Hot Water Heaters-Replace 2,080 2,354Buildings: Plumbing Renovation 11,038Buildings: Washer & Dryers-Replace UnfundedCarport: Detached-Paint-01 2,101 2,624Carport: Detached-Paint-02 4,202 4,995Carport: Repairs 21,012Clubhouse: Appliances-Replace 3,863Clubhouse: Carpet-Replace 11,240Clubhouse: Conference Room-Renewal 4,967Clubhouse: Decks & Stairs-Replace 8,166Clubhouse: Exterior-Paint 14,621Clubhouse: Fireplace-Replace 2,760Clubhouse: Flooring-Wood-Entry-Replace 1,499Clubhouse: Furniture-Replace 9,934Clubhouse: Gym Equipment-Replace 13,246Clubhouse: HVAC-ReplaceClubhouse: Interior-Painting 8,321Clubhouse: Locker Rooms-Renovation 6,788Clubhouse: Office Equipment & Furniture 5,519 6,400Clubhouse: Parking Deck-Replace 32,802Clubhouse: Sauna Heaters-Replace 1,312Clubhouse: Spa Heater-Replace 2,872Clubhouse: Spa Jet Pump-Replace 914Clubhouse: Spa Pump-Replace 2,377Clubhouse: Spa-ReplasterClubhouse: Tile Flooring-ReplaceClubhouse: Water Heater-Replace 566



2016 2017 2018 2019 2020 2021 2022 2023 2024 2025DescriptionCommon Area: Contingency 10,506Common Area: Curbing-Repair 9,991Common Area: Fence: Chain Link-PerimeterCommon Area: Golf Cart-ReplaceCommon Area: Guardrail-RepairCommon Area: Insurance-Deductible 10,000Common Area: Lighting-ReplaceCommon Area: Signage-Repair 2,627 2,972Common Area: Storm System-Hydro Jet 16,971 19,201Common Area: Wheel Stops-ReplaceGutters & Downspouts: Replace-01Gutters & Downspouts: Replace-02Gutters & Downspouts: Replace-03Gutters & Downspouts: Replace-04Gutters & Downspouts: Replace-05Gutters & Downspouts: Replace-06 15,076Gutters & Downspouts: Replace-07 18,765Gutters & Downspouts: Replace-08 4,526Gutters & Downspouts: Replace-09 20,874Landscape: Improvements 24,977Landscape: Irrigation System: Replacement 356,606Landscape: Sidewalks-Repair-01 57,985 59,434 60,920 62,443 64,004 65,604Landscape: Sidewalks-Repair-02 20,500 21,012 21,538 22,076 22,628 23,194 23,774 24,368 24,977Landscape: Stairs-Repair 133,250 136,581 139,996 143,496 147,083Pool: Brick Wall-Repair 3,281Pool: CopingPool: Fence-Maintenance 3,938Pool: Fence-ReplacePool: Furniture-Replace 4,308Pool: Heater-ReplacePool: Pump House-RepairPool: Pump-ReplacePool: Replaster 15,076Roofs: Membrane-ReplaceRoofs: Shake-Maintenance-01 84,856 96,006



2016 2017 2018 2019 2020 2021 2022 2023 2024 2025DescriptionRoofs: Shake-Maintenance-02 63,037Roofs: Shake-Replace-01 137,600Roofs: Shake-Replace-02Roofs: Shake-Replace-03Roofs: Shake-Replace-04Siding-Decks-Railings: Repairs-01 123,000 126,075 129,227 132,458 135,769 139,163 142,642 146,208 149,864 153,610Siding-Decks-Railings: Repairs-02 51,250 52,531 53,845 55,191 56,570Siding-Decks-Railings: Repairs-03 23,774 24,368 24,977 25,602 26,242Siding: Exterior-Paint-01 55,949Siding: Exterior-Paint-02 42,640 53,252Siding: Exterior-Paint-03 47,068Siding: Exterior-Paint-04 58,583Siding: Exterior-Paint-05 14,129Siding: Exterior-Paint-06 65,169Siding: Exterior-Paint-07 66,798Siding: Exterior-Paint-08 98,899Siding: Exterior-Paint-09 116,967Tennis Court: Chain Link Fence-Replace 37,445Tennis Court: Light Timers-Replace 1,305Tennis Court: Lights-Repair 12,923Tennis Court: Nets-Replace 775Tennis Court: Resurface 51,691Tennis Court: Retaining Wall-Repair 22,076

Year Total: 805,113 587,055 618,944 589,541 598,341 864,380 451,914 478,808 537,278 500,803



2026 2027 2028 2029 2030 2031 2032 2033 2034 2035DescriptionAsphalt: Overlay-Clubhouse-Office 7,623Asphalt: Overlay-Streets 572,826Asphalt: Repairs-Clubhouse-Office 572 647Asphalt: Repairs-Streets 13,799 15,612Asphalt: Seal Coat-Clubhouse-Office 1,547 1,751Asphalt: Seal Coat-Streets 51,106 57,821Buildings-7500: Crawl Space & Laterals-Repai..Buildings-7502: Crawl Space & Laterals-Repai..Buildings-7504: Crawl Space & Laterals-Repai..Buildings-7508: Crawl Space & Laterals-Repai..Buildings-7510: Crawl Space & Laterals-Repai..Buildings-7512: Crawl Space & Laterals-Repai..Buildings-7514: Crawl Space & Laterals-Repai..Buildings-7518: Crawl Space & Laterals-Repai..Buildings-7520: Crawl Space & Laterals-Repai..Buildings-7528: Crawl Space & Laterals-Repai..Buildings-7530: Crawl Space & Laterals-Repai..Buildings-7534: Crawl Space & Laterals-Repai..Buildings-7536: Crawl Space & Laterals-Repai..Buildings-7552: Crawl Space & Laterals-Repai..Buildings-7554: Crawl Space & Laterals-Repai..Buildings-7602: Crawl Space & Laterals-Repai..Buildings-7702: Crawl Space & Laterals-Repai..Buildings-7704: Crawl Space & Laterals-Repai..Buildings-7706: Crawl Space & Laterals-Repai..Buildings-7710: Crawl Space & Laterals-Repai..Buildings-7712: Crawl Space & Laterals-Repai..Buildings-7714: Crawl Space & Laterals-Repai..Buildings-7716: Crawl Space & Laterals-Repai..Buildings-7726: Crawl Space & Laterals-Repai..Buildings-7730: Crawl Space & Laterals-Repai..Buildings-7736: Crawl Space & Laterals-Repai..Buildings-7738: Crawl Space & Laterals-Repai..Buildings-7740: Crawl Space & Laterals-Repai..Buildings-7742: Crawl Space & Laterals-Repai..



2026 2027 2028 2029 2030 2031 2032 2033 2034 2035DescriptionBuildings-7744: Crawl Space & Laterals-Repai..Buildings-7746: Crawl Space & Laterals-Repai..Buildings-7750: Crawl Space & Laterals-Repai..Buildings-7752: Crawl Space & Laterals-Repai..Buildings: Deck Coatings-RepairBuildings: Dry-Rot-Repair 89,606 91,846 94,142 96,496 98,908 101,381 103,915 106,513 109,176 111,906Buildings: Electrical RenovationBuildings: Heater-Laundry Room-Replace 1,912Buildings: Hot Water Heaters-Replace 2,663 3,013Buildings: Plumbing RenovationBuildings: Washer & Dryers-Replace UnfundedCarport: Detached-Paint-01 3,277Carport: Detached-Paint-02 5,938Carport: Repairs 30,432Clubhouse: Appliances-Replace 5,595Clubhouse: Carpet-Replace 14,388Clubhouse: Conference Room-Renewal 6,358Clubhouse: Decks & Stairs-Replace 11,827Clubhouse: Exterior-Paint 17,380Clubhouse: Fireplace-Replace 3,997Clubhouse: Flooring-Wood-Entry-Replace 1,918Clubhouse: Furniture-Replace 14,388Clubhouse: Gym Equipment-Replace 19,184Clubhouse: HVAC-Replace 31,085Clubhouse: Interior-Painting 10,651Clubhouse: Locker Rooms-Renovation 9,832Clubhouse: Office Equipment & Furniture 7,423Clubhouse: Parking Deck-ReplaceClubhouse: Sauna Heaters-Replace 1,680Clubhouse: Spa Heater-Replace 3,677Clubhouse: Spa Jet Pump-Replace 1,170Clubhouse: Spa Pump-Replace 3,043Clubhouse: Spa-Replaster 4,945Clubhouse: Tile Flooring-Replace 6,395Clubhouse: Water Heater-Replace 819



2026 2027 2028 2029 2030 2031 2032 2033 2034 2035DescriptionCommon Area: ContingencyCommon Area: Curbing-Repair 12,789Common Area: Fence: Chain Link-Perimeter 11,581Common Area: Golf Cart-Replace 7,798Common Area: Guardrail-RepairCommon Area: Insurance-DeductibleCommon Area: Lighting-ReplaceCommon Area: Signage-Repair 3,362 3,804Common Area: Storm System-Hydro Jet 21,724 24,579Common Area: Wheel Stops-ReplaceGutters & Downspouts: Replace-01Gutters & Downspouts: Replace-02Gutters & Downspouts: Replace-03Gutters & Downspouts: Replace-04Gutters & Downspouts: Replace-05Gutters & Downspouts: Replace-06Gutters & Downspouts: Replace-07Gutters & Downspouts: Replace-08Gutters & Downspouts: Replace-09Landscape: Improvements 31,973Landscape: Irrigation System: ReplacementLandscape: Sidewalks-Repair-01 67,244 68,926 70,649 72,415 74,225 76,081 77,983 79,933 81,931 83,979Landscape: Sidewalks-Repair-02 25,602 26,242 26,898 27,570 28,259 28,966 29,690 30,432 31,193 31,973Landscape: Stairs-RepairPool: Brick Wall-RepairPool: Coping 10,231Pool: Fence-Maintenance 5,041Pool: Fence-ReplacePool: Furniture-Replace 6,239Pool: Heater-Replace 4,945Pool: Pump House-RepairPool: Pump-Replace 1,696Pool: Replaster 21,835Roofs: Membrane-Replace 668,028Roofs: Shake-Maintenance-01 108,622 122,896



2026 2027 2028 2029 2030 2031 2032 2033 2034 2035DescriptionRoofs: Shake-Maintenance-02Roofs: Shake-Replace-01Roofs: Shake-Replace-02 614,500Roofs: Shake-Replace-03 629,862Roofs: Shake-Replace-04 645,609Siding-Decks-Railings: Repairs-01 157,450 161,387 165,421 169,557 173,796 178,141 182,594 187,159 191,838 196,634Siding-Decks-Railings: Repairs-02Siding-Decks-Railings: Repairs-03 26,898 27,570 28,259 28,966 29,690 30,432 31,193 31,973 32,772 33,592Siding: Exterior-Paint-01 69,873Siding: Exterior-Paint-02 66,504Siding: Exterior-Paint-03 58,781 73,410Siding: Exterior-Paint-04 73,162Siding: Exterior-Paint-05 17,645Siding: Exterior-Paint-06 81,387Siding: Exterior-Paint-07 83,422Siding: Exterior-Paint-08 123,511Siding: Exterior-Paint-09 146,075Tennis Court: Chain Link Fence-ReplaceTennis Court: Light Timers-Replace 1,670Tennis Court: Lights-RepairTennis Court: Nets-Replace 993Tennis Court: Resurface 66,169Tennis Court: Retaining Wall-Repair

Year Total: 496,511 516,293 440,458 1,820,979 1,826,508 1,308,497 607,323 580,058 675,988 602,799



2036 2037 2038 2039 2040 2041 2042 2043 2044 2045DescriptionAsphalt: Overlay-Clubhouse-OfficeAsphalt: Overlay-StreetsAsphalt: Repairs-Clubhouse-Office 733 829Asphalt: Repairs-Streets 17,663 19,984Asphalt: Seal Coat-Clubhouse-Office 1,981 2,241Asphalt: Seal Coat-Streets 65,420 74,016Buildings-7500: Crawl Space & Laterals-Repai.. 12,585Buildings-7502: Crawl Space & Laterals-Repai.. 12,585Buildings-7504: Crawl Space & Laterals-Repai.. 12,585Buildings-7508: Crawl Space & Laterals-Repai.. 12,585Buildings-7510: Crawl Space & Laterals-Repai.. 12,585Buildings-7512: Crawl Space & Laterals-Repai.. 12,585Buildings-7514: Crawl Space & Laterals-Repai.. 12,585Buildings-7518: Crawl Space & Laterals-Repai..Buildings-7520: Crawl Space & Laterals-Repai..Buildings-7528: Crawl Space & Laterals-Repai..Buildings-7530: Crawl Space & Laterals-Repai..Buildings-7534: Crawl Space & Laterals-Repai.. 12,585Buildings-7536: Crawl Space & Laterals-Repai..Buildings-7552: Crawl Space & Laterals-Repai..Buildings-7554: Crawl Space & Laterals-Repai..Buildings-7602: Crawl Space & Laterals-Repai..Buildings-7702: Crawl Space & Laterals-Repai..Buildings-7704: Crawl Space & Laterals-Repai..Buildings-7706: Crawl Space & Laterals-Repai..Buildings-7710: Crawl Space & Laterals-Repai..Buildings-7712: Crawl Space & Laterals-Repai..Buildings-7714: Crawl Space & Laterals-Repai..Buildings-7716: Crawl Space & Laterals-Repai..Buildings-7726: Crawl Space & Laterals-Repai..Buildings-7730: Crawl Space & Laterals-Repai..Buildings-7736: Crawl Space & Laterals-Repai..Buildings-7738: Crawl Space & Laterals-Repai..Buildings-7740: Crawl Space & Laterals-Repai..Buildings-7742: Crawl Space & Laterals-Repai..



2036 2037 2038 2039 2040 2041 2042 2043 2044 2045DescriptionBuildings-7744: Crawl Space & Laterals-Repai..Buildings-7746: Crawl Space & Laterals-Repai..Buildings-7750: Crawl Space & Laterals-Repai..Buildings-7752: Crawl Space & Laterals-Repai..Buildings: Deck Coatings-RepairBuildings: Dry-Rot-Repair 114,703 117,571 120,510 123,523 126,611 129,776 133,020 136,346 139,755 143,249Buildings: Electrical RenovationBuildings: Heater-Laundry Room-Replace 2,447Buildings: Hot Water Heaters-Replace 3,409 3,857Buildings: Plumbing RenovationBuildings: Washer & Dryers-Replace UnfundedCarport: Detached-Paint-01 4,093Carport: Detached-Paint-02 7,058 8,390Carport: RepairsClubhouse: Appliances-ReplaceClubhouse: Carpet-Replace 18,418Clubhouse: Conference Room-Renewal 8,139Clubhouse: Decks & Stairs-ReplaceClubhouse: Exterior-Paint 20,659 24,557Clubhouse: Fireplace-ReplaceClubhouse: Flooring-Wood-Entry-Replace 2,456Clubhouse: Furniture-ReplaceClubhouse: Gym Equipment-ReplaceClubhouse: HVAC-Replace 45,021Clubhouse: Interior-Painting 13,635Clubhouse: Locker Rooms-RenovationClubhouse: Office Equipment & Furniture 8,608 9,982Clubhouse: Parking Deck-Replace 53,750Clubhouse: Sauna Heaters-Replace 2,150Clubhouse: Spa Heater-Replace 4,707Clubhouse: Spa Jet Pump-Replace 1,497Clubhouse: Spa Pump-Replace 3,896Clubhouse: Spa-Replaster 7,162Clubhouse: Tile Flooring-ReplaceClubhouse: Water Heater-Replace



2036 2037 2038 2039 2040 2041 2042 2043 2044 2045DescriptionCommon Area: ContingencyCommon Area: Curbing-Repair 16,371Common Area: Fence: Chain Link-PerimeterCommon Area: Golf Cart-ReplaceCommon Area: Guardrail-Repair 5,375Common Area: Insurance-DeductibleCommon Area: Lighting-Replace 89,694Common Area: Signage-Repair 4,304 4,869Common Area: Storm System-Hydro Jet 27,809 31,464Common Area: Wheel Stops-Replace 32,148Gutters & Downspouts: Replace-01 35,937Gutters & Downspouts: Replace-02 61,392Gutters & Downspouts: Replace-03 62,927Gutters & Downspouts: Replace-04 30,100Gutters & Downspouts: Replace-05 27,950Gutters & Downspouts: Replace-06Gutters & Downspouts: Replace-07Gutters & Downspouts: Replace-08Gutters & Downspouts: Replace-09Landscape: Improvements 40,928Landscape: Irrigation System: ReplacementLandscape: Sidewalks-Repair-01 86,079 88,231 90,436 92,697 95,015 97,390 99,825 102,320 104,878 107,500Landscape: Sidewalks-Repair-02 32,772 33,592 34,431 35,292 36,175 37,079 38,006 38,956 39,930 40,928Landscape: Stairs-RepairPool: Brick Wall-Repair 4,753Pool: CopingPool: Fence-Maintenance 6,452Pool: Fence-ReplacePool: Furniture-ReplacePool: Heater-Replace 7,162Pool: Pump House-Repair 839Pool: Pump-Replace 2,456Pool: ReplasterRoofs: Membrane-ReplaceRoofs: Shake-Maintenance-01 139,046 157,318



2036 2037 2038 2039 2040 2041 2042 2043 2044 2045DescriptionRoofs: Shake-Maintenance-02Roofs: Shake-Replace-01Roofs: Shake-Replace-02Roofs: Shake-Replace-03Roofs: Shake-Replace-04Siding-Decks-Railings: Repairs-01 201,550 206,589 211,753 217,047 222,473 228,035 233,736 239,579 245,569 251,708Siding-Decks-Railings: Repairs-02Siding-Decks-Railings: Repairs-03 34,431 35,292 36,175 37,079 38,006 38,956 39,930 40,928 41,951 43,000Siding: Exterior-Paint-01 87,261Siding: Exterior-Paint-02 83,054Siding: Exterior-Paint-03 91,679Siding: Exterior-Paint-04 91,369 114,108Siding: Exterior-Paint-05 22,036Siding: Exterior-Paint-06 101,642Siding: Exterior-Paint-07 104,183Siding: Exterior-Paint-08 154,248Siding: Exterior-Paint-09 182,428Tennis Court: Chain Link Fence-ReplaceTennis Court: Light Timers-Replace 2,138Tennis Court: Lights-Repair 23,958Tennis Court: Nets-Replace 1,271Tennis Court: Resurface 84,701Tennis Court: Retaining Wall-Repair

Year Total: 680,967 596,340 603,086 783,875 677,378 833,921 701,655 824,766 926,197 1,103,006

Association of Unit Owners of Sylvan Heights CondominiumAnnual Asset Expenditure Charts


Annual Expenditures

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32

Fiscal Year

Association of Unit Owners of Sylvan Heights CondominiumAnnual Asset Expenditure Charts


Asset Current Cost By Category

20%

17%

8%8%7%

7%

6%

5%

5%

4%

3%

10%Asphalt Pavement

Painting, Exterior

Lighting, Interior

Hot Water System

Roofing

Elevator

Fencing

Play Equipment

Pool

Painting, Interior

Doors, Exterior

Other Categories

Association of Unit Owners of Sylvan Heights CondominiumDetail Report Alphabetically


Asphalt: Overlay-Clubhouse-Office

Asset ID 1234Group Clubhouse

Category Streets-AsphaltPlaced in Service January 2005

Useful Life 24Replacement Year 2029

Remaining Life 13

3,500 SF @ $1.58Asset Cost $5,530.00

Percent Replacement 100%Future Cost $7,623.17

Remarks:

This component is the overlay of the clubhouse parking.

The previous reserve study provider estimate the asphalt at 3,500 square feet.

The cost is based on a per square foot estimate from Coast Pavement.

If applicable, the useful life of this component is predicated on the assumption thecomponent was properly installed or applied.

The cost and useful life assumptions are based on accepted industry estimates asestablished by RS Means, Craftsman, Marshall Swift, The National Construction Estimator,National Repair and Remodel Estimator, Dodge Cost Manual, McGraw Hill Professional,assorted independent contractors, various specialists, assorted vendors catalogues, actualquotations or historical costs, Consultant's own experience in like components or as providedby the Client.

The Association should obtain a bid from a licensed and bonded contractor to confirmthis estimate.

These costs do not take into consideration any changes to the building code.

Note: This is a provision for an anticipated expense. Should the Association find thatthe cost of this item is greater or less than the amount provided for herein, this reserve studyshould be updated to reflect the actual component cost.



Asphalt: Overlay-Streets

Asset ID 1048Group Common Areas



Remaining Life 13

263,000 SF @ $1.58Asset Cost $415,540.00


Remarks:

This component is the overlay of the streets in the community.

The previous reserve study provider estimated the asphalt at 263,000 square feet.

The cost is based on a per square foot estimate from Coast Pavement.








Asphalt: Repairs-Clubhouse-Office


Category Streets-AsphaltPlaced in Service June 2015


Remaining Life 4

1 Total @ $405.00Asset Cost $405.00

Percent Replacement 100%Future Cost $447.04

Remarks:

This component is the repairs to the asphalt at the time of the seal coat including,resetting of manhole and valve covers.

The previous reserve study provider estimates there are 3,500 square feet of asphalt.

The cost is based on information from Pavement Maintenance. The total cost is brokendown into 27% for repairs and 73% for sealcoat.








Asphalt: Repairs-Streets



Useful Life 5Adjustment 4

Replacement Year 2016Remaining Life 0

1 Total @ $10,779.41Asset Cost $10,779.41


Remarks:

This component is the repairs to the asphalt at the time of the seal coat including,resetting of manhole and valve covers.

The previous reserve study provider estimates there are 263,000 square feet of asphalt.









Asphalt: Seal Coat-Clubhouse-Office


Category Streets-AsphaltPlaced in Service June 2015


Remaining Life 4

1 Total @ $1,095.00Asset Cost $1,095.00


Remarks:

This component is the seal coat of the streets in the community including, curbpainting, restripping, and ada stencils as required.

The previous reserve study provider estimate the asphalt at 3,500 square feet.








Asphalt: Seal Coat-Streets





1 Total @ $39,923.75Asset Cost $39,923.75


Remarks:

This component is the seal coat of the streets in the community, including curbpainting, restriping, and ADA stencils as required.

The previous reserve study provider estimated the asphalt at 263,000 square feet.









Buildings-7500: Crawl Space & Laterals-Repairs

Asset ID 1117Group Building Components

Category RehabilitationPlaced in Service January 2015


Remaining Life 29

1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:

This component is the repair of the crawl space and laterals in building 7500.

The cost is based on work done in 2011.












Remaining Life 29

1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:














Remaining Life 29

1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:

This component is the repair of the crawl space and laterals in building 7514. Lateralswere done in 2011.














1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:














Remaining Life 29

1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:















1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:















1 Total @ $8,200.00Asset Cost $8,200.00


Remarks:















1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:















1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:

This component is the repair of the crawl space and laterals in building 7742. ateralswere done in 2011.














1 Total @ $8,200.00Asset Cost $8,200.00


Remarks:















1 Total @ $6,150.00Asset Cost $6,150.00


Remarks:










Buildings: Deck Coatings-Repair

Asset ID 1171Group Balconies & Railings

Category BuildingsPlaced in Service January 2012



1 Total @ $5,253.12Asset Cost $5,253.12


Remarks:

This component is for the repairs to the deck coatings.

This component should be done as the buildings are painted.

The cost and useful life assumptions are based on information from the Association.








Buildings: Dry-Rot-Repair




Remaining Life 0

1 Total @ $70,000.00Asset Cost $70,000.00


Remarks:

This component is for the repairs to the siding, entrys, balconies and posts.









Buildings: Electrical Renovation




Remaining Life 2

1 Total @ $10,506.25Asset Cost $10,506.25


Remarks:

This component is the remodel or rehabilitation of the power supply to the units.








Buildings: Heater-Laundry Room-Replace

Asset ID 1168Group Equipment



Remaining Life 3

12 Total @ $115.57Asset Cost $1,386.84


Remarks:

This component is for the replacement of the heaters in the laundry rooms.

According to the Association 8 were replaced in 2009 and 4 were replaced in 2006.








Buildings: Hot Water Heaters-Replace





12 Each @ $525.31Asset Cost $2,080.23


Remarks:

This component is for the replacement of the hot water heaters.

This provision is to replace 4 of the 12 water heaters every 5 years.









Buildings: Plumbing Renovation




Remaining Life 2

1 Total @ $10,506.25Asset Cost $10,506.25


Remarks:

This component is the remodel or rehabilitation of the plumbing system to the units.








Buildings: Washer & Dryers-Replace




Remaining Life 0



Remarks:

This component is for the replacement of the laundry equipment.

This component may not be relevent because the laundry equipment may beoutsourced.

Therefore this component is unfuded.








Carport: Detached-Paint-01

Asset ID 1105Group Buildings

Category PaintingPlaced in Service January 2007


Remaining Life 0

4 Each @ $525.31Asset Cost $2,101.24


Remarks:

This component is to paint the detatched carports.

Cost and useful life are based on information from the Association.








Carport: Detached-Paint-02





4 Each @ $1,050.62Asset Cost $4,202.48


Remarks:

This component is to paint the detatched carports.

Cost and useful life are based on historical information from the Association.








Carport: Repairs




Remaining Life 0

2 Each @ $10,506.25Asset Cost $21,012.50


Remarks:

This component is to repair the crawl space under the carports.

Cost and useful life are based on work already done.








Clubhouse: Appliances-Replace

Asset ID 1174Group Recreation/Pool

Category ClubhousePlaced in Service January 2003


Remaining Life 2

1 Total @ $3,677.19Asset Cost $3,677.19


Remarks:

This component is for the replacement of the clubhouse appliances.

According to information from the Association $3,092 was spent in 2003-2004 onappliances.








Clubhouse: Carpet-Replace


Category ClubhousePlaced in Service July 2015


Remaining Life 9

1 Total @ $9,000.00Asset Cost $9,000.00


Remarks:

This component is for the replacement of the clubhouse carpet.

According to information from the Association $2,810 was spent in 2003 on carpet.








Clubhouse: Conference Room-Renewal





1 Total @ $4,727.81Asset Cost $4,727.81


Remarks:

This component is for the renewal of the conference room.

This includes the ping pong table, dart board, carpet, and folding chairs and tables.








Clubhouse: Decks & Stairs-Replace




Remaining Life 2

296 SF @ $26.26Asset Cost $7,772.96


Remarks:

This component is for the replacement of the clubhouse decking and stairs.

The previous reserve study provider estimated 296 square feet.








Clubhouse: Exterior-Paint




Remaining Life 6

1 Total @ $12,607.50Asset Cost $12,607.50


Remarks:

This component is to paint the exterior of the clubhouse

Cost is based on a per square foot estimated by Verhaalen Paint, Inc..








Clubhouse: Fireplace-Replace




Remaining Life 2

1 Total @ $2,626.56Asset Cost $2,626.56


Remarks:

This component is for the replacement / renovation of the fireplace.








Clubhouse: Flooring-Wood-Entry-Replace


Category ClubhousePlaced in Service July 2015


Remaining Life 9

1 Total @ $1,200.00Asset Cost $1,200.00


Remarks:

This component is for the replacement of the clubhouse entry carpet withy woodflooring.








Clubhouse: Furniture-Replace




Remaining Life 2

1 Total @ $9,455.62Asset Cost $9,455.62


Remarks:

This component is for the replacement of the clubhouse furniture in the lounge.

According to information from the Association $8,500 was spent in 2003-2004 onfurniture.








Clubhouse: Gym Equipment-Replace




Remaining Life 2

1 Total @ $12,607.50Asset Cost $12,607.50


Remarks:

This component is for the replacement of the equipment in the gym.








Clubhouse: HVAC-Replace




Remaining Life 12

1 Total @ $23,113.75Asset Cost $23,113.75


Remarks:

This component is for the replacement of the HVAC system in the clubhouse.

The cost is based on information from Jacobs Heating and Air Conditioning.








Clubhouse: Interior-Painting




Remaining Life 5

1 Total @ $7,354.37Asset Cost $7,354.37


Remarks:

This component is for the painting of the interior of clubhouse

The previous reserve study provider estimated 12,535 square feet of interior walls.

The cost is based on a per square foot estimate from Verhaalen Paint.








Clubhouse: Locker Rooms-Renovation




Remaining Life 3

2 Each @ $3,151.87Asset Cost $6,303.74


Remarks:

This component is for the renovation of the locker rooms.








Clubhouse: Office Equipment & Furniture

Asset ID 1230Group Office




1 Total @ $5,253.12Asset Cost $5,253.12


Remarks:

This component is for the replacement of the office equipment and furniture.








Clubhouse: Parking Deck-Replace

Asset ID 1217Group Ground Components



Remaining Life 9

1 Total @ $26,265.62Asset Cost $26,265.62


Remarks:

This component is the replacement of the parking deck.








Clubhouse: Sauna Heaters-Replace




Remaining Life 9

2 Each @ $525.31Asset Cost $1,050.62


Remarks:

This component is the replacement of the sauna heaters.








Clubhouse: Spa Heater-Replace


Category ClubhousePlaced in Service May 2015


Remaining Life 9

1 Each @ $2,300.00Asset Cost $2,300.00


Remarks:

This component is the replacement of the spa heater and new filtration.








Clubhouse: Spa Jet Pump-Replace




Remaining Life 8

1 Each @ $750.00Asset Cost $750.00


Remarks:

This component is the replacement of the spa jet pump.








Clubhouse: Spa Pump-Replace




Remaining Life 5

1 Each @ $2,101.25Asset Cost $2,101.25


Remarks:

This component is the replacement of the spa pump.








Clubhouse: Spa-Replaster


Category ClubhousePlaced in Service April 2015


Remaining Life 14

1 Each @ $3,500.00Asset Cost $3,500.00


Remarks:

This component is to replaster of the spa.








Clubhouse: Tile Flooring-Replace




Remaining Life 17

1 Each @ $4,202.50Asset Cost $4,202.50


Remarks:

This component is for the replacement of the clubhouse tile floors.

According to information from the Association $3,248 was spent in 2003 for tileflooring.








Clubhouse: Water Heater-Replace





1 Each @ $525.31Asset Cost $525.31


Remarks:

This component is for the replacement of the water heater in the clubhouse.








Common Area: Contingency


Category Common AreasPlaced in Service January 2012


Remaining Life 0

1 Total @ $10,506.25Asset Cost $10,506.25


Remarks:

This component is a contingency for the common area.

This for any unforeseen damage, such as that caused by snow, ice and wind.

The cost and useful life is based on information from the Association.








Common Area: Curbing-Repair




Remaining Life 7

1 Total @ $8,405.00Asset Cost $8,405.00


Remarks:

This component is for the repair of damage to the curbing. This for any unforeseendamage such as caused by snow, ice and wind.

Due to the severe winter storm in 2008, the curbing has been damaged and requiresrepairs.

The previous reserve study provider estimated 13,160 linear feet of curbing.









Common Area: Fence: Chain Link-Perimeter

Asset ID 1166Group Fencing & Security



Remaining Life 14

300 LF @ $27.32Asset Cost $8,196.00


Remarks:

This component is for the replacement of the chain link fence located on the perimeterof the property.

The previous reserve study provider estimated 300 linear feet of fencing.








Common Area: Golf Cart-Replace




Remaining Life 16

1 Total @ $5,253.12Asset Cost $5,253.12


Remarks:

This component is for the replacement of the golf cart.









Common Area: Guardrail-Repair


Category Common AreasPlaced in Service April 2015


Remaining Life 29

1 Total @ $2,626.56Asset Cost $2,626.56


Remarks:

This component is the repairs to the traffic guardrails on the property.








Common Area: Insurance-Deductible

Asset ID 1231Group Insurance



Remaining Life 0

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


Remarks:

This component is for the annual cost of the insurance deductible in the event a claim ismade.








Common Area: Lighting-Replace

Asset ID 1232Group Common Lighting

Category Common AreasPlaced in Service August 2015


Remaining Life 29

1 Total @ $43,830.00Asset Cost $43,830.00


Remarks:

This component is for the replacement of the common area and building lighting on theproperty with LED lighting.

In 2014, the Association had a lighting audit done by Oregon Pacific Group. TheAssociation should consider replacement of all lights to newer energy efficient lights.

Cost is based on an estimate provided by Oregon Electric Group.








Common Area: Signage-Repair

Asset ID 1229Group Signs


Useful Life 5Adjustment -1


1 Total @ $2,626.56Asset Cost $2,626.56


Remarks:

This component is for the repairs to the signage on the property.








Common Area: Storm System-Hydro Jet





1 Total @ $15,759.37Asset Cost $15,759.37


Remarks:

This component is for the clean out of the storm system with a hydro jet.

The costs and useful life are based on estomates from the Association representative,Peter Brennan..








Common Area: Wheel Stops-Replace




Remaining Life 27

316 Each @ $52.23Asset Cost $16,504.68


Remarks:

This component is for the replacement of the wheel stops. This assumes the wheelstops are replaced with plastic stops.








Gutters & Downspouts: Replace-01

Asset ID 1157Group Gutters & Downspouts



Remaining Life 26

36 Units @ $525.31Asset Cost $18,911.16


Remarks:

This component is for the replacement of the gutters and downspouts at the same timethey are painted.

An estimated 36 units will be painted. For a list of the buildings to be painted see thepainting schedule from the board.












Remaining Life 27

60 Units @ $525.31Asset Cost $31,518.60


Remarks:














Remaining Life 28

60 Units @ $525.31Asset Cost $31,518.60


Remarks:














Remaining Life 29

28 Units @ $525.31Asset Cost $14,708.68


Remarks:












Category BuildingsPlaced in Service June 2015


Remaining Life 29

26 Units @ $525.31Asset Cost $13,658.06


Remarks:














Remaining Life 1

28 Units @ $525.31Asset Cost $14,708.68


Remarks:














Remaining Life 2

34 Units @ $525.31Asset Cost $17,860.54


Remarks:














Remaining Life 3

8 Units @ $525.31Asset Cost $4,202.48


Remarks:














Remaining Life 4

36 Units @ $525.31Asset Cost $18,911.16


Remarks:










Landscape: Improvements




Remaining Life 9

1 Total @ $20,000.00Asset Cost $20,000.00


Remarks:

This component is for the landscape and trees on the property. According to Mike atSunshade Landscaping.

The Association should consider a plan to renew the barkdust and mulch.








Landscape: Irrigation System: Replacement





1 Total @ $315,187.50Asset Cost $315,187.50


Remarks:

This component is for the upgrade of the irrigation system. Currently the landscapeirrigation is controlled through a series of timers. The Association should consider a systemthat ties everything together.









Landscape: Sidewalks-Repair-01





1 Total @ $105,062.50Asset Cost $52,531.25


Remarks:

This component is for the repairs to the sidewalks.

The previous reserve study provider estimated 21,712 square feet of sidewalks.

The costs and useful life are based on estimates from the Association.








Landscape: Sidewalks-Repair-02





1 Total @ $20,000.00Asset Cost $20,000.00


Remarks:

This component is for the repairs to the sidewalks in 2017.

The previous reserve study provider estimated 21,712 square feet of sidewalks.

The costs and useful life are based on estimates from the Association.








Landscape: Stairs-Repair





260 Each @ $512.50Asset Cost $133,250.00


Remarks:

This component is for the repairs to the landscaping stairs.

The costs and useful life are based on estomates from the Association.








Pool: Brick Wall-Repair




Remaining Life 8

1,140 SF @ $15.75Asset Cost $2,693.25


Remarks:

This component is for the replair of the brick wall.

The previous reserve study provider estimated 1,140 square feet of brick.








Pool: Coping


Category Common AreasPlaced in Service May 2015


Remaining Life 19

1 Each @ $6,400.00Asset Cost $6,400.00


Remarks:

This component is for the installation of new coping at the pool.








Pool: Fence-Maintenance




Remaining Life 9

300 LF @ $10.51Asset Cost $3,153.00


Remarks:

This component is for the maintenance of the pool fence.

The previous reserve study provider estimated 300 linear feet.








Pool: Fence-Replace




Remaining Life 36

300 LF @ $42.02Asset Cost $12,606.00


Remarks:

This component is for the replacement of the pool fence.

The previous reserve study provider estimated 300 linear feet.








Pool: Furniture-Replace




Remaining Life 1

1 Total @ $4,202.50Asset Cost $4,202.50


Remarks:

This component is for the replacement of the pool furniture.








Pool: Heater-Replace




Remaining Life 14

1 Each @ $3,500.00Asset Cost $3,500.00


Remarks:

This component is for the replacement of the pool heater.

According to infromation from the Association the heater was replaced in 2006 for$3,028.








Pool: Pump House-Repair


Category Common AreasPlaced in Service July 2014





Remarks:

This component is to repair the pump house.








Pool: Pump-Replace


Category Common AreasPlaced in Service April 2015


Remaining Life 14

1 Total @ $1,200.00Asset Cost $1,200.00


Remarks:

This component is for the replacement of the pool pump.








Pool: Replaster




Remaining Life 1

1 Each @ $14,708.75Asset Cost $14,708.75


Remarks:

This component is for the replastering of the pool.








Roofs: Membrane-Replace


Category RoofingPlaced in Service January 2005


Remaining Life 14

1 Total @ $472,781.25Asset Cost $472,781.25


Remarks:

This component is the replacement of the membrane roofs.

According to Michael at Pioneer Roofing (503-281-0305), the roofs have a guaranteednon-declining material warranty, that lasts 25 years.

The cost and useful life are based on information from Pioneer Roof.








Roofs: Shake-Maintenance-01




Remaining Life 3

1 Total @ $78,796.87Asset Cost $78,796.87


Remarks:

This component is the maintenance of the wood shake roofs.

According to Roof Life of Oregon, the maintenance vendor, with proper maintenance,the roofs will last approximately 20 years from 2009.

The cost and useful life assumptions are based on information from Roof Life ofOregon.

Measurements per Roof Life of Oregon.

According to Association records, $155,199 worth of work was donein 2009/2010.





Note: This is a provision for an anticipated expense. Should the Association find thatthe cost of this item is greater or less than the amount provided for herein, this reserve study



Roofs: Shake-Maintenance-01 continued...

should be updated to reflect the actual component cost.



Roofs: Shake-Maintenance-02





1 Total @ $63,037.50Asset Cost $63,037.50


Remarks:

This component is the maintenance of the wood shake roofs.




According to Association records, $155,199 worth of work was done in 2009/2010.





Note: This is a provision for an anticipated expense. Should the Association find that



Roofs: Shake-Maintenance-02 continued...

the cost of this item is greater or less than the amount provided for herein, this reserve studyshould be updated to reflect the actual component cost.



Roofs: Shake-Replace-01



Useful Life 30Adjustment -14


1 Total @ $137,600.00Asset Cost $137,600.00


Remarks:

This component is the replacement of the wood shake roofs.

According to an inspection done by Cedar Tech in 2014, $137,600 of roof replacementsneed to be done in 2015.


According to Association records, $155,199 worth of work was done in 2009/2010.












Remaining Life 13

1 Total @ $1,337,445.62Asset Cost $445,770.63

Percent Replacement 33.33%Future Cost $614,499.73

Remarks:

This component is the replacement of the shake roofs.

According to Roof Life of Oregon, the maintenance vendor, with proper maintenancethe roofs will last approximately 20 years from 2009.

This component is for 1/3rd of the work to be done in 2030.










Roofs: Shake-Replace-02 continued...









1 Total @ $1,337,445.62Asset Cost $445,770.63


Remarks:

This component is the replacement of the wood shake roofs.
















1 Total @ $1,337,445.62Asset Cost $445,770.63


Remarks:

This component is the replacement of the shake roofs.











Siding-Decks-Railings: Repairs-01




Remaining Life 0

1 Total @ $123,000.00Asset Cost $123,000.00


Remarks:

This component is for the repair of the siding, decks, and railings as needed. Therepairs are planned to be done at the same time as the painting, which occurs yearly.

In 2011, the Association had a building envelope inspection by RDH whichrecommended replacement of the building envelope. The Association has decided tocomplete repairs as needed. The long tern financial effect of this approach is notcurrently known. The Association should continually inspect the envelope for signs ofwater intrusion.













1 Total @ $51,250.00Asset Cost $51,250.00


Remarks:







Note: This is a provision for an anticipated expense. Should the Association find thatthe cost of this item is greater or less than the amount provided for herein, this reserve study



Siding-Decks-Railings: Repairs-02 continued...

should be updated to reflect the actual component cost.







Remaining Life 5

1 Total @ $21,012.50Asset Cost $21,012.50


Remarks:










Siding: Exterior-Paint-01




Remaining Life 8

28 Each @ $1,640.00Asset Cost $45,920.00


Remarks:

This component is to paint the exterior of 28 units.

Cost is based on a per square foot estimated by Verhaalen Paint, Inc.

For a list of buildings to be painted, please see the paint schedule prepared by theAssociation.












Remaining Life 0

26 Each @ $1,640.00Asset Cost $42,640.00


Remarks:















Remaining Life 1

28 Each @ $1,640.00Asset Cost $45,920.00


Remarks:















Remaining Life 2

34 Each @ $1,640.00Asset Cost $55,760.00


Remarks:















Remaining Life 3

8 Each @ $1,640.00Asset Cost $13,120.00


Remarks:















Remaining Life 4

36 Each @ $1,640.00Asset Cost $59,040.00


Remarks:















Remaining Life 5

36 Each @ $1,640.00Asset Cost $59,040.00


Remarks:















Remaining Life 6

52 Each @ $1,640.00Asset Cost $85,280.00


Remarks:















Remaining Life 7

60 Each @ $1,640.00Asset Cost $98,400.00


Remarks:











Tennis Court: Chain Link Fence-Replace





1,050 LF @ $31.52Asset Cost $33,096.00


Remarks:

This component is for the replacement of the tennis court fence.

The previous reserve study provider estimated 1,050 linear feet of chain link fence.








Tennis Court: Light Timers-Replace





3 Each @ $393.98Asset Cost $1,181.94


Remarks:

This component is for the replacement of the tennis court light timers.

This cost is based on work done in 2005.








Tennis Court: Lights-Repair




Remaining Life 1

12 Each @ $1,050.62Asset Cost $12,607.44


Remarks:

This component is for the repairs of the tennis court lights.








Tennis Court: Nets-Replace




Remaining Life 1

3 Each @ $252.15Asset Cost $756.45


Remarks:

This component is for the replacement of the tennis court nets.

Cost is based on an estimate from the Association.








Tennis Court: Resurface




Remaining Life 1

3 Each @ $16,810.00Asset Cost $50,430.00


Remarks:

This component is for the resurface of the tennis courts.

This cost is based on the replacement cost in 2007.








Tennis Court: Retaining Wall-Repair




Remaining Life 2

1 Total @ $21,012.50Asset Cost $21,012.50


Remarks:

This component is for the repair to the tennis court retaining wall.

The previous reserve study provider estmated 2,100 square feet.







ASSOCIATION RESOLUTION FOR REVENUE RULING 70-604 ELECTIONEXCESS INCOME APPLIED TO THE FOLLOWING YEAR'S ASSESSMENTS

RESOLUTION MUST BE VOTED ON BY THE MEMBERSHIPAT THE ANNUAL MEETING IF FILING AS A 1120 STANDARD CORPORATION

ANNUAL RESOLUTION OF THE (Association)____________________________________________________________________________________________________

RE: EXCESS INCOME APPLIED TO THE FOLLOWING YEAR'SASSESSMENTS REVENUE RULING 70-604

WHEREAS, The (Association)_______________________________________ is a (State)___________________ corporation duly organized and existing under the laws of the State of(State) ______________________;

and

WHEREAS, The members desire that the corporation shall act in full accordance with therulings and regulations of the Internal Revenue Service;

and

NOW, THEREFORE, the members hereby adopt the following resolution by and on behalfof the (Association) __________________________________________:

RESOLVED, that any excess of membership income over membership expenses for the yearending _____________________________20__ shall be applied against the subsequent tax yearmember assessment as provided by IRS Revenue Ruling 70-604.

This resolution was voted on and made a part of the minutes of the annual meeting of(Association) __________________________________________________.

BY: ________________________________President

ATTESTED: ________________________Secretary

Form compliant with IRS Ruling 70-604


ASSOCIATION OF UNIT OWNERS OF SYLVAN HEIGHTS CONDOMINIUM

Maintenance Plan(will follow later by email)

The current maintenance plan prepared by Reserve Studies by Reserve Funding is attached as anaddendum to this reserve study by separate document. The reserve study and the maintenance planshould be filed together as one document.

Each year, during the update process whether Level II or Level III, the maintenance plan shouldbe updated and revised as required.

The maintenance plan should be used as a guide for the timing of maintenance procedures andthe forms attached to the maintenance plan used in order to have an on-going record of maintenancedone.

This maintenance plan may be the original maintenance plan done (Level 1) or an update of aprevious maintenance plan.

If component materials have been changed or substituted the Client should notify Reserve Funding byReserve Studies so that changes can be taken into consideration during the preparation of the reservestudy.


FUNDING GOALS AND FUNDING PLANSEXPLANATION OF FUNDING GOALS

In a Full Reserve Study, the reserve provider conducts a component inventory, a condition assessment (basedupon on-site visual observations), and life and valuation estimates to determine both a “fund status” and “fundingplan”.

In an Update with site inspection, the reserve provider conducts a component inventory (verification only, notquantification unless new components have been added to the inventory), a condition assessment (based upon on-site visual observations), and life and valuation estimates to determine both the “fund status and “funding plan.”

In an Update without site inspection, the reserve provider conducts life and valuation estimates to determine the“fund status” and “funding plan.”

EXPLANATION OF FUNDING PLANS

Baseline Funding Model. The goal of this funding method is to keep the reserve cash balance above

zero. This means that while each individual component may not be fully funded, the reserve balance overall does

not drop below zero during the projected period. An association using this funding method must understand that

even a minor reduction in a component’s remaining useful life can result in a deficit in the reserve cash balance.

Greatest risk to Client for a special assessment

Threshold Funding Model. This method is based upon the cash flow funding concept. The minimum

reserve cash balance in threshold funding, however, is set at a predetermined dollar amount (other than $0) and

Client must select a dollar amount. Lesser risk to Client for a special assessment

Full Funding Model (Proportional Funding)---Given that the basis of funding for reserves is to

distribute the costs of the replacements over the lives of the components in question, it follows that the ideal level

of reserves will be proportionately related to those lives and costs. If an association has a component with an

expected estimated useful life of ten years, it will set aside approximately one-tenth of the replacement cost each

year. At the end of three years, one will expect three-tenths of the replacement cost to have accumulated, and if

so, that component will be “fully-funded.” This model is important in that it is a measure of the adequacy of an

association’s reserves at any one point of time, and is independent of any particular method which may have been

used for past funding or may be under consideration for future funding. This formula represents a snapshot in

time and is based upon current replacement cost, independent of future inflationary or investment factors:

Fully Funded Reserves = Age divided by Useful Life the results multiplied by Current Replacement Cost

When an association’s total accumulated reserves for all components meet this criterion, its reserves areconsidered “fully-funded.” Least risk to Client for a special assessment.

Association of Unit Owners of Sylvan Heights CondominiumMember Summary Report


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Asphalt: Overlay-Clubhouse-Office 2005 2029 5,530 24 0 13 3500 @ 1.587,623Asphalt: Overlay-Streets 2005 2029 415,540 24 0 13 263000 @ 1.58572,826Asphalt: Repairs-Clubhouse-Office 2015 2020 405 5 0 4 1 @ 405.00447Asphalt: Repairs-Streets 2006 2016 10,779 5 4 0 1 @ 10,779.4110,779Asphalt: Seal Coat-Clubhouse-Office 2015 2020 1,095 5 0 4 1 @ 1,095.001,209Asphalt: Seal Coat-Streets 2006 2016 39,924 5 4 0 1 @ 39,923.7539,924Buildings-7500: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7502: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7504: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7508: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7510: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7512: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7514: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7518: Crawl Space & Late.. 1978 2018 6,150 30 10 2 1 @ 6,150.006,461Buildings-7520: Crawl Space & Late.. 1978 2020 6,150 30 12 4 1 @ 6,150.006,788Buildings-7528: Crawl Space & Late.. 1978 2017 6,150 30 9 1 1 @ 6,150.006,304Buildings-7530: Crawl Space & Late.. 1978 2017 6,150 30 9 1 1 @ 6,150.006,304Buildings-7534: Crawl Space & Late.. 2015 2045 6,150 30 0 29 1 @ 6,150.0012,585Buildings-7536: Crawl Space & Late.. 1978 2016 6,150 30 8 0 1 @ 6,150.006,150Buildings-7552: Crawl Space & Late.. 1978 2019 6,150 30 11 3 1 @ 6,150.006,623Buildings-7554: Crawl Space & Late.. 1978 2019 6,150 30 11 3 1 @ 6,150.006,623Buildings-7602: Crawl Space & Late.. 1978 2016 6,150 30 6 0 1 @ 6,150.006,150Buildings-7702: Crawl Space & Late.. 1978 2016 6,150 30 5 0 1 @ 6,150.006,150Buildings-7704: Crawl Space & Late.. 1978 2016 6,150 30 6 0 1 @ 6,150.006,150Buildings-7706: Crawl Space & Late.. 1978 2016 6,150 30 6 0 1 @ 6,150.006,150Buildings-7710: Crawl Space & Late.. 1978 2018 6,150 30 10 2 1 @ 6,150.006,461Buildings-7712: Crawl Space & Late.. 1978 2018 6,150 30 10 2 1 @ 6,150.006,461Buildings-7714: Crawl Space & Late.. 1978 2019 6,150 30 11 3 1 @ 6,150.006,623Buildings-7716: Crawl Space & Late.. 1978 2018 6,150 30 10 2 1 @ 6,150.006,461Buildings-7726: Crawl Space & Late.. 1978 2017 8,200 30 9 1 1 @ 8,200.008,405Buildings-7730: Crawl Space & Late.. 1978 2017 6,150 30 9 1 1 @ 6,150.006,304Buildings-7736: Crawl Space & Late.. 1978 2016 6,150 30 8 0 1 @ 6,150.006,150Buildings-7738: Crawl Space & Late.. 1978 2016 6,150 30 6 0 1 @ 6,150.006,150Buildings-7740: Crawl Space & Late.. 1978 2016 6,150 30 7 0 1 @ 6,150.006,150Buildings-7742: Crawl Space & Late.. 1978 2016 6,150 30 6 0 1 @ 6,150.006,150Buildings-7744: Crawl Space & Late.. 1978 2016 8,200 30 7 0 1 @ 8,200.008,200Buildings-7746: Crawl Space & Late.. 1978 2016 6,150 30 7 0 1 @ 6,150.006,150Buildings-7750: Crawl Space & Late.. 1978 2016 6,150 30 7 0 1 @ 6,150.006,150Buildings-7752: Crawl Space & Late.. 1978 2019 6,150 30 11 3 1 @ 6,150.006,623Buildings: Deck Coatings-Repair 2012 2016 5,253 1 1 0 1 @ 5,253.125,253Buildings: Dry-Rot-Repair 2015 2016 70,000 1 0 0 1 @ 70,000.0070,000Buildings: Electrical Renovation 1978 2018 10,506 40 0 2 1 @ 10,506.2511,038Buildings: Heater-Laundry Room-Re.. 2009 2019 1,387 10 0 3 12 @ 115.571,493Buildings: Hot Water Heaters-Replace 2006 2016 2,080 5 5 0 12 @ 525.312,080Buildings: Plumbing Renovation 1978 2018 10,506 40 0 2 1 @ 10,506.2511,038Buildings: Washer & Dryers-Replace 1170 UnfundedCarport: Detached-Paint-01 2007 2016 2,101 9 0 0 4 @ 525.312,101



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Carport: Detached-Paint-02 2008 2016 4,202 7 1 0 4 @ 1,050.624,202Carport: Repairs 1998 2016 21,012 15 0 0 2 @ 10,506.2521,012Clubhouse: Appliances-Replace 2003 2018 3,677 15 0 2 1 @ 3,677.193,863Clubhouse: Carpet-Replace 2015 2025 9,000 10 0 9 1 @ 9,000.0011,240Clubhouse: Conference Room-Renew.. 2006 2018 4,728 10 2 2 1 @ 4,727.814,967Clubhouse: Decks & Stairs-Replace 2003 2018 7,773 15 0 2 296 @ 26.268,166Clubhouse: Exterior-Paint 2015 2022 12,607 7 0 6 1 @ 12,607.5014,621Clubhouse: Fireplace-Replace 2003 2018 2,627 15 0 2 1 @ 2,626.562,760Clubhouse: Flooring-Wood-Entry-Re.. 2015 2025 1,200 10 0 9 1 @ 1,200.001,499Clubhouse: Furniture-Replace 2003 2018 9,456 15 0 2 1 @ 9,455.629,934Clubhouse: Gym Equipment-Replace 2003 2018 12,607 15 0 2 1 @ 12,607.5013,246Clubhouse: HVAC-Replace 2013 2028 23,114 15 0 12 1 @ 23,113.7531,085Clubhouse: Interior-Painting 2011 2021 7,354 10 0 5 1 @ 7,354.378,321Clubhouse: Locker Rooms-Renovatio.. 2004 2019 6,304 15 0 3 2 @ 3,151.876,788Clubhouse: Office Equipment & Fur.. 2010 2018 5,253 6 2 2 1 @ 5,253.125,519Clubhouse: Parking Deck-Replace 2005 2025 26,266 20 0 9 1 @ 26,265.6232,802Clubhouse: Sauna Heaters-Replace 2015 2025 1,051 10 0 9 2 @ 525.311,312Clubhouse: Spa Heater-Replace 2015 2025 2,300 10 0 9 1 @ 2,300.002,872Clubhouse: Spa Jet Pump-Replace 2014 2024 750 10 0 8 1 @ 750.00914Clubhouse: Spa Pump-Replace 2011 2021 2,101 10 0 5 1 @ 2,101.252,377Clubhouse: Spa-Replaster 2015 2030 3,500 15 0 14 1 @ 3,500.004,945Clubhouse: Tile Flooring-Replace 2003 2033 4,202 30 0 17 1 @ 4,202.506,395Clubhouse: Water Heater-Replace 1998 2019 525 15 6 3 1 @ 525.31566Common Area: Contingency 2012 2016 10,506 1 0 0 1 @ 10,506.2510,506Common Area: Curbing-Repair 2013 2023 8,405 10 0 7 1 @ 8,405.009,991Common Area: Fence: Chain Link-P.. 1980 2030 8,196 50 0 14 300 @ 27.3211,581Common Area: Golf Cart-Replace 2002 2032 5,253 30 0 16 1 @ 5,253.127,798Common Area: Guardrail-Repair 2015 2045 2,627 30 0 29 1 @ 2,626.565,375Common Area: Insurance-Deductible 2013 2016 10,000 1 0 0 1 @ 10,000.0010,000Common Area: Lighting-Replace 2015 2045 43,830 30 0 29 1 @ 43,830.0089,694Common Area: Signage-Repair 2010 2016 2,627 5 -1 0 1 @ 2,626.562,627Common Area: Storm System-Hydro.. 2011 2019 15,759 5 3 3 1 @ 15,759.3716,971Common Area: Wheel Stops-Replace 2013 2043 16,505 30 0 27 316 @ 52.2332,148Gutters & Downspouts: Replace-01 2012 2042 18,911 30 0 26 36 @ 525.3135,937Gutters & Downspouts: Replace-02 2013 2043 31,519 30 0 27 60 @ 525.3161,392Gutters & Downspouts: Replace-03 2014 2044 31,519 30 0 28 60 @ 525.3162,927Gutters & Downspouts: Replace-04 2015 2045 14,709 30 0 29 28 @ 525.3130,100Gutters & Downspouts: Replace-05 2015 2045 13,658 30 0 29 26 @ 525.3127,950Gutters & Downspouts: Replace-06 2017 2017 14,709 30 0 1 28 @ 525.3115,076Gutters & Downspouts: Replace-07 2018 2018 17,861 30 0 2 34 @ 525.3118,765Gutters & Downspouts: Replace-08 2019 2019 4,202 30 0 3 8 @ 525.314,526Gutters & Downspouts: Replace-09 2020 2020 18,911 30 0 4 36 @ 525.3120,874Landscape: Improvements 2015 2025 20,000 10 0 9 1 @ 20,000.0024,977Landscape: Irrigation System: Repla.. 1970 2021 315,187 40 11 5 1 @ 315,187.50356,606Landscape: Sidewalks-Repair-01 2012 2020 52,531 1 7 4 1 @ 105,062.5057,985Landscape: Sidewalks-Repair-02 2012 2017 20,000 1 4 1 1 @ 20,000.0020,500Landscape: Stairs-Repair 2011 2016 133,250 1 2 0 260 @ 512.50133,250



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Pool: Brick Wall-Repair 2009 2024 2,693 15 0 8 1140 @ 15.753,281Pool: Coping 2015 2035 6,400 20 0 19 1 @ 6,400.0010,231Pool: Fence-Maintenance 2015 2025 3,153 10 0 9 300 @ 10.513,938Pool: Fence-Replace 2002 2052 12,606 50 0 36 300 @ 42.0230,665Pool: Furniture-Replace 2002 2017 4,202 15 0 1 1 @ 4,202.504,308Pool: Heater-Replace 2015 2030 3,500 15 0 14 1 @ 3,500.004,945Pool: Pump House-Repair 2014 2044 420 10 20 28 1 @ 420.25839Pool: Pump-Replace 2015 2030 1,200 15 0 14 1 @ 1,200.001,696Pool: Replaster 2002 2017 14,709 15 0 1 1 @ 14,708.7515,076Roofs: Membrane-Replace 2005 2030 472,781 25 0 14 1 @ 472,781.25668,028Roofs: Shake-Maintenance-01 2019 2019 78,797 5 0 3 1 @ 78,796.8784,856Roofs: Shake-Maintenance-02 2008 2016 63,037 5 2 0 1 @ 63,037.5063,037Roofs: Shake-Replace-01 1999 2016 137,600 30 -14 0 1 @ 137,600.00137,600Roofs: Shake-Replace-02 1999 2029 445,771 30 0 13 1 @1,337,445.62614,500Roofs: Shake-Replace-03 1999 2030 445,771 30 1 14 1 @1,337,445.62629,862Roofs: Shake-Replace-04 1999 2031 445,771 30 2 15 1 @1,337,445.62645,609Siding-Decks-Railings: Repairs-01 2015 2016 123,000 1 0 0 1 @ 123,000.00123,000Siding-Decks-Railings: Repairs-02 2013 2016 51,250 1 2 0 1 @ 51,250.0051,250Siding-Decks-Railings: Repairs-03 2021 2021 21,012 1 0 5 1 @ 21,012.5023,774Siding: Exterior-Paint-01 2015 2024 45,920 9 0 8 28 @ 1,640.0055,949Siding: Exterior-Paint-02 2007 2016 42,640 9 0 0 26 @ 1,640.0042,640Siding: Exterior-Paint-03 2008 2017 45,920 9 0 1 28 @ 1,640.0047,068Siding: Exterior-Paint-04 2009 2018 55,760 9 0 2 34 @ 1,640.0058,583Siding: Exterior-Paint-05 2010 2019 13,120 9 0 3 8 @ 1,640.0014,129Siding: Exterior-Paint-06 2011 2020 59,040 9 0 4 36 @ 1,640.0065,169Siding: Exterior-Paint-07 2012 2021 59,040 9 0 5 36 @ 1,640.0066,798Siding: Exterior-Paint-08 2013 2022 85,280 9 0 6 52 @ 1,640.0098,899Siding: Exterior-Paint-09 2014 2023 98,400 9 0 7 60 @ 1,640.00116,967Tennis Court: Chain Link Fence-Rep.. 1980 2021 33,096 40 1 5 1050 @ 31.5237,445Tennis Court: Light Timers-Replace 2005 2020 1,182 10 5 4 3 @ 393.981,305Tennis Court: Lights-Repair 1992 2017 12,607 25 0 1 12 @ 1,050.6212,923Tennis Court: Nets-Replace 2007 2017 756 10 0 1 3 @ 252.15775Tennis Court: Resurface 2007 2017 50,430 10 0 1 3 @ 16,810.0051,691Tennis Court: Retaining Wall-Repair 1978 2018 21,012 40 0 2 1 @ 21,012.5022,076


Important Information About Your Reserve Study

Important Information

This document has been provided pursuant to an agreement containing restrictions on its use. No part ofthis document may be copied or distributed, in any form or by any means, nor disclosed to third partieswithout the expressed written permission of Reserve Studies by Reserve Funding©. The client shallhave the right to reproduce and distribute copies of this report, or the information contained within, asmay be required for compliance with all applicable regulations.

This reserve analysis study and the parameters under which it has been completed are based uponinformation provided to us in part by representatives of the association, its contractors, assorted vendors,specialist and independent contractors, the Community Association Institute, Association of ProfessionalReserve Analyst and various construction pricing and scheduling manuals including, but not limited to:Marshall & Swift Valuation Service, RS Means Facilities Maintenance & Repair Cost Data, RS MeansRepair & Remodeling Cost Data, National Construction Estimator, National Repair & RemodelEstimator, Dodge Cost Manual and McGraw-Hill Professional. Additionally, costs are obtained fromnumerous vendor catalogues, actual quotations or historical costs, and our own experience in the field ofproperty management and reserve study preparation.

It has been assumed, unless otherwise noted in this report, that all assets have been designed andconstructed properly and that each estimated useful life will approximate that of the norm per industrystandards and/or manufacturer’s specifications. In some cases, estimates may have been used on assets,which have an indeterminable but potential liability to the association. The decision for the inclusion ofthese as well as all assets considered is left to the client.

We recommend that your reserve analysis study be updated on an annual basis due to fluctuating interestrates, inflationary changes, and the unpredictable nature of the lives of many of the assets underconsideration (our contract provides that we shall update the reserve study annually). All of theinformation collected during our physical analysis of the association and computations madesubsequently in preparing this reserve analysis study are retained in our computer files. Therefore,annual updates may be completed quickly and inexpensively each year.

Reserve Studies by Reserve Funding© would like to thank you for using our services. We invite you tocall us at any time, should you have questions, comments or need assistance. In addition, any of theparameters and estimates used in this study may be changed at your request, after which we will providea revised study. Client shall accept all responsibility and liability for changes made and the resultsthereof. Consultant does not warranty the results of the revised study.

This reserve analysis study is provided as an aid for planning purposes and not as an accounting tool.Since it deals with events yet to take place, there is no assurance that the results enumerated within itwill, in fact, occur as described.

Introduction

Preparing the annual budget and overseeing the association’s finances are perhaps the most importantresponsibilities of board members. The annual operating and reserve budgets reflect the planning andgoals of the association and set the level and quality of service for all of the association’s activities.

Funding Options

When a major repair or replacement is required in a community, an association has essentially four


options available to address the expenditure:

The first, and only logical means that the Board of Directors has to ensure its ability to maintain theassets for which it is obligated, is by assessing an adequate level of reserves as part of the regularmembership assessment, thereby distributing the cost of the replacements uniformly over the entiremembership. The community is not only comprised of present members, but also future members. Anydecision by the Board of Directors to adopt a calculation method or funding plan which woulddisproportionately burden future members in order to make up for past reserve deficits, would be abreach of its fiduciary responsibility to those future members. Unlike individuals determining their owncourse of action, the board is responsible to the “community” as a whole.

Whereas, if the association was setting aside reserves for this purpose, using the vehicle of the regularlyassessed membership dues, it would have had the full term of the life of the roof, for example, toaccumulate the necessary monies. Additionally, those contributions would have been evenly distributedover the entire membership and would have earned interest as part of that contribution.

The second option is for the association to acquire a loan from a lending institution in order to effectthe required repairs. In many cases, banks will lend to an association using “future homeownerassessments” as collateral for the loan. With this method, the current board is pledging the future assetsof an association. They are also incurring the additional expense of interest fees along with the originalprincipal amount. In the case of a $150,000 roofing replacement, the association may be required to payback the loan over a three to five year period, with interest.

The third option, too often used, is simply to defer the required repair or replacement. This option,which is not recommended, can create an environment of declining property values due to expandinglists of deferred maintenance items and the association’s financial inability to keep pace with the normalaging process of the common area components. This, in turn, can have a seriously negative impact onsellers in the association by making it difficult, or even impossible, for potential buyers to obtainfinancing from lenders. Increasingly, lending institutions are requesting copies of the association’s mostrecent reserve study before granting loans, either for the association itself, a prospective purchaser, or foran individual within such an association.


The fourth option is to pass a “special assessment” to the membership in an amount required to coverthe expenditure. When a special assessment is passed, the association has the authority andresponsibility to collect the assessments, even by means of foreclosure, if necessary. However, anassociation considering a special assessment cannot guarantee that an assessment, when needed, will bepassed. Consequently, the association cannot guarantee its ability to perform the required repairs orreplacements to those major components for which it is obligated when the need arises. Additionally,while relatively new communities require very little in the way of major “reserve” expenditures,associations reaching 12 to 15 years of age and older, find many components reaching the end of theireffective useful lives. These required expenditures, all accruing at the same time, could be devastatingto an association’s overall budget.

Types of Reserve Studies

Most reserve studies fit into one of three categories:

Full Reserve Study;

Update with site inspection; and

Update without site inspection.

In a Full Reserve Study, the reserve provider conducts a component inventory, a condition assessment(based upon on-site visual observations), and life and valuation estimates to determine both a “fundstatus” and “funding plan”.

In an Update with site inspection, the reserve provider conducts a component inventory (verificationonly, not quantification unless new components have been added to the inventory), a conditionassessment (based upon on-site visual observations), and life and valuation estimates to determine boththe “fund status and “funding plan.”

In an Update without site inspection, the reserve provider conducts life and valuation estimates todetermine the “fund status” and “funding plan.”

The Reserve Study: A Physical and a Financial Analysis

There are two components of a reserve study: a physical analysis and a financial analysis.

Physical Analysis

During the physical analysis, a reserve study provider evaluates information regarding the physical statusand repair/replacement cost of the association’s major common area components. To do so, the providerconducts a component inventory, a condition assessment, and life and valuation estimates.

Developing a Component List

The budget process begins with full inventory of all the major components for which the association isresponsible. The determination of whether an expense should be labeled as operational, reserve, orexcluded altogether is sometimes subjective. Since this labeling may have a major impact on thefinancial plans of the association, subjective determinations should be minimized. We suggest thefollowing considerations when labeling an expense.


Operational Expenses

Occur at least annually, no matter how large the expense, and can be effectively budgeted each year.They are characterized as being reasonably predictable, both in terms of frequency and cost. Operationalexpenses include all minor expenses, which would not otherwise adversely affect an operational budgetfrom one year to the next. Examples of some operational expenses include:

Utilities: Administrative: Services: Repair Expenses:

Electrical/Lights Supplies Landscape Operating Contingency

Water/Irrigation Bank Service Charges Reserve Study Costs

Insurance

These are major expenses that occur other than annually, and which must be budgeted in advance inorder to ensure the availability of the necessary funds in time for their use. Reserve expenses arereasonably predictable both in terms of frequency and cost. However, they may include significantassets that have an indeterminable but potential liability that may be demonstrated as a likely occurrence.They are expenses that, when incurred, would have a significant effect on the smooth operation of thebudgetary process from one year to the next, if they were not reserved in advance. Examples of somereserve expenses include:

Asphalt Seal Coating Painting-Mail Box Structures

Asphalt Overlays Lighting Replacement

Asphalt Repair or Replacement Underground Utilities

Masonry Repair Concrete Curbs, Sidewalks, Aprons, and Parking Pads

Fencing Repair and Replacement Insurance Deductible

Budgeting is Normally Excluded for:

Repairs or replacements of assets which are deemed to have an estimated useful life equal to orexceeding the estimated useful life of the facility or community itself, or exceeding the legal life of thecommunity as defined in an association’s governing documents. Examples include the completereplacement of masonry walls and concrete. Also excluded are insignificant expenses that may becovered either by an operating or reserve contingency, or otherwise in a general maintenance fund.Expenses that are necessitated by acts of nature, accidents, or other occurrences that are more properlyinsured, rather than reserved, are also excluded.

Financial Analysis

The financial analysis assesses the association’s reserve balance or “fund status” (measured in cash or aspercent fully funded) to determine a recommendation for the appropriate reserve contribution rate in thefuture, known as the “funding plan.”


Preparing the Reserve Study

Once the reserve assets have been identified and quantified, their respective replacement costs, usefullives, and remaining lives must be assigned so that a funding schedule can be constructed. Replacementcosts and useful lives can be found in published manuals such as construction estimators, appraisalhandbooks, and valuation guides. Remaining lives are calculated from the useful lives and ages of assetsand adjusted according to conditions such as design, manufactured quality, usage, exposure to theelements, and maintenance history.

By following the recommendations of an effective reserve study, the association should avoid any majorshortfalls. However, to remain accurate, the report should be updated on an annual basis to reflect suchchanges as shifts in economic parameters, additions of phases or assets, or expenditures of reserve funds.The association can assist in simplifying the reserve analysis update process by keeping accurate recordsof these changes throughout the year.

Funding Methods

From the simplest to the most complex, reserve analysis providers use many different computationalprocesses to calculate reserve requirements. However, there are two basic processes identified asindustry standards: the cash flow method and the component method.

The cash flow method develops a reserve-funding plan where contributions to the reserve fund aredesigned to offset the variable annual expenditures from the reserve fund. Different reserve fundingplans are tested against the actual anticipated schedule of reserve expenses until the desired funding goalis achieved. This method sets up a “window” in which all future anticipated replacement costs arecomputed, based upon the individual lives of the components under consideration. The Reserve Studiesby Reserve Funding© Threshold and the Reserve Studies by Reserve Funding© Current Assessmentfunding models are based upon the cash flow method.

The component method develops a reserve-funding plan where the total contribution is based upon thesum of contributions for individual components. The component method is the more conservative of thetwo funding options, and assures that the association will achieve and maintain an ideal level of reserveover time. This method also allows for computations on individual components in the analysis. TheReserve Studies by Reserve Funding© Component Funding model is based upon the componentmethodology.


Funding Strategies

Once an association has established its funding goals, the association can select an appropriate fundingplan. There are four basic strategies from which most associations select. It is recommended thatassociations consult professionals to determine the best strategy or combination of plans that best suitthe association’s need. Additionally, associations should consult with their financial advisor todetermine the tax implications of selecting a particular plan. Further, consultation with the AmericanInstitute of Certified Public Accountants (AICPA) for their reporting requirements is advisable. Thefour funding plans and descriptions of each are detailed below. Associations will have to update theirreserve studies more or less frequently depending on the funding strategy they select.

Full Funding---Given that the basis of funding for reserves is to distribute the costs of the replacementsover the lives of the components in question, it follows that the ideal level of reserves would beproportionately related to those lives and costs. If an association has a component with an expectedestimated useful life of ten years, it would set aside approximately one-tenth of the replacement costeach year. At the end of three years, one would expect three-tenths of the replacement cost to haveaccumulated, and if so, that component would be “fully-funded.” This model is important in that it is ameasure of the adequacy of an association’s reserves at any one point of time, and is independent of anyparticular method which may have been used for past funding or may be under consideration for futurefunding. This formula represents a snapshot in time and is based upon current replacement cost,independent of future inflationary or investment factors:

Fully Funded Reserves = Age divided by Useful Life the results multiplied by Current ReplacementCost

When an association’s total accumulated reserves for all components meet this criterion, its reserves areconsidered “fully-funded.”

The Reserve Studies by Reserve Funding© Threshold Funding Model (Minimum Funding). Thegoal of this funding method is to keep the reserve cash balance above zero. This means that while eachindividual component may not be fully funded, the reserve balance overall does not drop below zeroduring the projected period. An association using this funding method must understand that even aminor reduction in a component’s remaining useful life can result in a deficit in the reserve cash balance.

The Reserve Studies by Reserve Funding © Threshold Funding Model. This method is based upon thecash flow funding concept. The minimum reserve cash balance in threshold funding, however, is set at apredetermined dollar amount (other than $0).

The Reserve Studies by Reserve Funding © Current Assessment Funding Model. This method is alsobased upon the cash flow funding concept. The initial reserve assessment is set at the association’scurrent fiscal year funding level and a 30-year projection is calculated to illustrate the adequacy of thecurrent funding over time.


The Reserve Studies by Reserve Funding © Component Funding Model. This is a straight-linefunding model. It distributes the cash reserves to individual reserve components and then calculateswhat the reserve assessment and interest contribution (minus taxes) should be, again by each reservecomponent. The current annual assessment is then determined by summing all the individual componentassessments, hence the name “Component Funding Model”. This is the most conservative fundingmodel. It leads to or maintains the fully funded reserve position. The following details this calculationprocess.

Distribution of Reserves

Component Funding Model Distribution of Accumulated Reserves

The “Distribution of Accumulated Reserves Report” is a “Component Funding Model” calculation. Thisdistribution does not apply to the cash flow funding models.

When calculating reserves based upon the component methodology, a beginning reserve balance must beallocated for each of the individual components considered in the analysis, before the individualcalculations can be completed. When this distribution is not available, or of sufficient detail, thefollowing method is suggested for allocating reserves:

The first step the program performs in this process is subtracting, from the total accumulated reserves,any amounts for assets that have predetermined (fixed) reserve balances. The user can “fix” theaccumulated reserve balance within the program on the individual asset’s detail page. If, by error, theseamounts total more than the amount of funds available, then the remaining assets are adjustedaccordingly. A provision for a contingency reserve is then deducted by the determined percentage used,and if there are sufficient remaining funds available.

The second step is to identify the ideal level of reserves for each asset. As indicated in the prior section,this is accomplished by evaluating the component’s age proportionate to its estimated useful life andcurrent replacement cost. Again, the equation used is as follows:

Fully Funded Reserves = (Age/Useful Life) x Current Replacement Cost

The Reserve Studies by Reserve Funding© software program performs the above calculations to theactual month the component was placed-in-service. The program projects that the accumulation ofnecessary reserves for repairs or replacements will be available on the first day of the fiscal year inwhich they are scheduled to occur.

The next step the program performs is to arrange all of the assets used in the study in ascending order byremaining life, and alphabetically within each grouping of remaining life items. These assets are thenassigned their respective ideal level of reserves until the amount of funds available is depleted, or untilall assets are appropriately funded. If any assets are assigned a zero remaining life (scheduled forreplacement in the current fiscal year), then the amount assigned equals the current replacement cost andfunding begins for the next cycle of replacement. If there are insufficient funds available to accomplishthis, then the software automatically adjusts the zero remaining life items to one year, and that assetassumes its new grouping position alphabetically in the final printed report.


If, at the completion of this task, there are additional moneys that have not been distributed, theremaining reserves are then assigned, in ascending order, to a level equal to, but not exceeding, thecurrent replacement cost for each component. If there are sufficient moneys available to fund all assetsat their current replacement cost levels, then any excess funds are designated as such and are not factoredinto any of the report computations. If, at the end of this assignment process there are designated excessfunds, they can be used to offset the monthly contribution requirements recommended, or used in anyother manner the client may desire.

Assigning the reserves in this manner defers the make-up period for any under-funding over the longestremaining life of all assets under consideration, thereby minimizing the impact of any deficiency. Forexample, if the report indicates an under funding of $50,000, this under-funding will be assigned tocomponents with the longest remaining lives in order to give more time to “replenish” the account. Ifthe $50,000 under-funding were to be assigned to short remaining life items, the impact would be feltimmediately.

If the reserves are under-funded, the monthly contribution requirements, as outlined in this report, can beexpected to be higher than normal. In future years, as individual assets are replaced, the fundingrequirements will return to their normal levels. In the case of a large deficiency, a special assessmentmay be considered. The program can easily generate revised reports outlining how the monthlycontributions would be affected by such an adjustment, or by any other changes that may be underconsideration.

Funding Reserves

Three assessment and contribution figures are provided in the report, the “Monthly Reserve AssessmentRequired”, the “Average Net Monthly Interest Earned” contribution and the “Total Monthly Allocationto Reserves.” The association should allocate the “Monthly Reserve Assessment Required” amount toreserves each month when the interest earned on the reserves is left in the reserve accounts as part of thecontribution. Any interest earned on reserve deposits, must be left in the reserve account and onlyamounts set aside for taxes should be removed .

The second alternative is to allocate the "Total Monthly Allocation" to reserves (this is the memberassessment plus the anticipated interest earned for the fiscal year. This method assumes that all interestearned will be assigned directly as operating income. This allocation takes into consideration theanticipated interest earned on accumulated reserves regardless of whether or not it is actually earned.When taxes are paid, the amount due will be taken directly from the association's operating accounts asthe reserve accounts are allocating only those moneys net of taxes.


Users’ Guide to your Reserve Analysis Study

Part II of your Reserve Funding© Report contains the reserve analysis study for your association. Thereare seven types of reports in the study as described below.

Report Summaries

The Report Summary for all funding models lists all of the parameters that were used in calculating thereport as well as the summary of your reserve analysis study.

Index Reports

The Distribution of Accumulated Reserves report lists all assets in remaining life order. It alsoidentifies the ideal level of reserves that should have accumulated for the association as well as theactual reserves available. This information is valid only for the “Component Funding Model”calculation.

The Component Listing/Summary lists all assets by category (i.e. roofing, painting, lighting, etc.)together with their remaining life, current cost, monthly reserve contribution, and net monthly allocation.

Detail Reports

The Detail Report itemizes each asset and lists all measurements, current and future costs, andcalculations for that asset. Provisions for percentage replacements, salvage values, and one-timereplacements can also be utilized. These reports can be sorted by category or group.

The numerical listings for each asset are enhanced by extensive narrative detailing factors such asdesign, manufactured quality, usage, exposure to elements and maintenance history.

The Reserve Studies by Reserve Funding© Detail Index is an alphabetical listing of all assets, togetherwith the page number of the asset’s detail report, the projected replacement year, and the asset number.

Projections

Thirty-year projections add to the usefulness of your reserve analysis study.


DefinitionsReport I.D.Includes the Report Date (example: June 19, 2006), Account Number (example: 9773), and Version(example: 1.0). Please use this information (displayed on the summary page) when referencing yourreport.

Budget Year Beginning/EndingThe budgetary year for which the report is prepared. For associations with fiscal years ending December31st, the monthly contribution figures indicated are for the 12-month period beginning 1/1/20xx andending 12/31/20xx.

Number of Units and/or PhasesIf applicable, the number of units and/or phases included in this version of the report.

InflationThis figure (information taken from “Inflationdata.com" and averaged over 5 years is used toapproximate the future cost to repair or replace each component in the report. The current cost for eachcomponent is compounded on an annual basis by the number of remaining years to replacement, and thetotal is used in calculating the monthly reserve contribution that will be necessary to accumulate therequired funds in time for replacement.

Annual Assessment IncreaseThis represents the percentage rate at which the association will increase its assessment to reserves at theend of each year. For example, in order to accumulate $10,000 in 10 years, you could set aside $1,000per year. As an alternative, you could set aside $795 the first year and increase that amount by 5% eachyear until the year of replacement. In either case you arrive at the same amount. The idea is that youstart setting aside a lower amount and increase that number each year in accordance with the plannedpercentage. Ideally this figure should be equal to the rate of inflation. It can, however, be used to aidethose associations that have not set aside appropriate reserves in the past, by making the initial year’sallocation less formidable.

Investment Yield Before TaxesThe average interest rate anticipated by the association based upon its current investment practices.

Taxes on Interest YieldThe estimated percentage of interest income that will be set aside to pay income taxes on the interestearned.

Projected Reserve BalanceThe anticipated reserve balance on the first day of the fiscal year for which this report has been prepared.This is based upon information provided and not audited.

Percent Fully FundedThe ratio, at the beginning of the fiscal year, of the actual (or projected) reserve balance to the calculatedfully funded balance, expressed as a percentage.


Phase Increment Detail and/or AgeComments regarding aging of the components on the basis of construction date or date of acceptance bythe association.

Monthly AssessmentThe assessment to reserves required by the association each month.

Interest Contribution (After Taxes)The interest that should be earned on the reserves, net of taxes, based upon their beginning reservebalance and monthly contributions for one year. This figure is averaged for budgeting purposes.

Total Monthly AllocationThe sum of the monthly assessment and interest contribution figures.

Group and CategoryThe report may be prepared and sorted either by group (location, building, phase, etc.) or by category(roofing, painting, etc.). The standard report printing format is by category.

Percentage of Replacement or RepairsIn some cases, an asset may not be replaced in its entirety or the cost may be shared with a second party.Examples are budgeting for a percentage of replacement of streets over a period of time, or sharing theexpense to replace a common wall with a neighboring party.

Placed-In-Service DateThe month and year that the asset was placed-in-service. This may be the construction date, the firstescrow closure date in a given phase, or the date of the last servicing or replacement.

Estimated Useful LifeThe estimated useful life of an asset based upon industry standards, manufacturer specifications, visualinspection, location, usage, association standards and prior history. All of these factors are taken intoconsideration when tailoring the estimated useful life to the particular asset. For example, the carpetingin a hallway or elevator (a heavy traffic area) will not have the same life as the identical carpeting in aseldom-used meeting room or office.

Adjustment to Useful LifeOnce the useful life is determined, it may be adjusted, up or down, by this separate figure for the currentcycle of replacement. This will allow for a current period adjustment without affecting the estimatedreplacement cycles for future replacements.

Estimated Remaining Life

This calculation is completed internally based upon the report’s fiscal year date and the date the assetwas placed-in-service.

Replacement Year

The year that the asset is scheduled to be replaced. The appropriate funds will be available by the firstday of the fiscal year for which replacement is anticipated.


Annual Fixed Reserves

An optional figure which, if used, will override the normal process of allocating reserves to each asset.

Fixed AssessmentAn optional figure which, if used, will override all calculations and set the assessment at this amount.This assessment can be set for monthly, quarterly or annually as necessary.

Salvage ValueThe salvage value of the asset at the time of replacement, if applicable.

One-Time ReplacementNotation if the asset is to be replaced on a one-time basis.

Current Replacement CostThe estimated replacement cost effective at the beginning of the fiscal year for which the report is beingprepared.

Future Replacement CostThe estimated cost to repair or replace the asset at the end of its estimated useful life based upon thecurrent replacement cost and inflation.

Component InventoryThe task of selecting and qualifying reserve components. This task can be accomplished through on-sitevisual, review of association design and organizational documents, a review of established associationprecedents, and discussion with appropriate association representative(s).


A Multi-Purpose Tool

Your Reserve Studies by Reserve Funding © Report is an important part of your association’s budgetaryprocess. Following its recommendations should ensure the association’s smooth budgetary transitionsfrom one fiscal year to the next, and either decrease or eliminate the need for “special assessments”.

In addition, your Reserve Studies by Reserve Funding© reserve study serves a variety of usefulpurposes:

Following the recommendations of a reserve study performed by a professional consultant canprotect the Board of Directors in a community from personal liability concerning reservecomponents and reserve funding.

A reserve analysis study is required by your accountant during the preparation of theassociation’s annual audit.

The Reserve Studies by Reserve Funding© reserve study is often requested by lendinginstitutions during the process of loan applications, both for the community and, in many cases,the individual owners.

Your Reserve Studies by Reserve Funding© Report is also a detailed inventory of theassociation’s major assets and serves as a management tool for scheduling, coordinating andplanning future repairs and replacements.

Your Reserve Studies by Reserve Funding© Report is a tool that can assist the Board in fulfillingits legal and fiduciary obligations for maintaining the community in a state of good repair. If acommunity is operating on a special assessment basis, it cannot guarantee that an assessment,when needed, will be passed. Therefore, it cannot guarantee its ability to perform the requiredrepairs or replacements to those major components for which the association is obligated.

Since the Reserve Studies by Reserve Funding© reserve analysis study includes measurementsand cost estimates of the client’s assets, the detail reports may be used to evaluate the accuracyand price of contractor bids when assets are due to be repaired or replaced.

The Reserve Studies by Reserve Funding© reserve study is an annual disclosure to themembership concerning the financial condition of the association, and may be used as a“consumers’ guide” by prospective purchasers.

The Reserve Studies by Reserve Funding© Owners’ Summary meets the disclosure requirementsof the Texas Timeshare Act

Your Reserve Studies by Reserve Funding© Report provides a record of the time, cost, andquantities of past reserve replacements. At times the association’s management company andboard of directors are transitory which may result in the loss of these important records.

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