CERES GLEANN HOMEOWNERS ASSOCIATION … · TABLE OF CONTENTS Ceres Gleann ... and Fannie Mae...

SCHWINDT & CO. RESERVE STUDY SERVICES

PAGE 1 of 70

CERES GLEANN HOMEOWNERS ASSOCIATION

MAINTENANCE PLAN

RESERVE STUDY

LEVEL III: UPDATE WITH NO VISUAL SITE INSPECTION

2018

https://www.schwindtco.com/(503) 227-1165

Revised 10/19/2017


PAGE 2 of 70


Executive Summary

Year of Report:

January 1, 2018 to December 31, 2018

Number of Units:

133 Units

Parameters:

Beginning Balance: $75,000

Year 2018 Suggested Contribution: $13,196

Year 2018 Projected Interest Earned: $47

Inflation: 2.50%

Annual Increase to Suggested Contribution: 3.00%

Lowest Cash Balance Over 30 Years (Threshold): $20,596

Average Reserve Assessment per Unit: $8.27

Prior Year’s Actual Contribution: $12,500

Revised 10/19/2017

jwong

Letter Head

TABLE OF CONTENTSCeres Gleann Homeowners Association


PAGE 3 of 70

Disclosure Information 4 of 70

MAINTENANCE PLAN

Maintenance Plan 8 of 70

RESERVE STUDY

Property Description 21 of 70

Cash Flow Method - Threshold Funding Model Summary 22 of 70

Cash Flow Method - Threshold Funding Model Projection 23 of 70

Component Summary By Category 24 of 70

Component Summary By Group 27 of 70

Annual Expenditure Detail 29 of 70

Detail Report by Category 36 of 70

Additional Disclosures 67 of 70

Revised 10/19/2017


PAGE 4 of 70

Ceres Gleann Homeowners AssociationMaintenance Plan

Reserve Study Update – OffsiteDisclosure Information

2018

We have conducted an offsite reserve study udpate and maintenance plan for Ceres Gleann Homeowners Association for the year beginning January 1, 2018, in accordance with guidelines established by Community Associations Institute and the American Institute of Certified Public Accountants.

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

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

Schwindt & Company believes that every association should have a complete building envelope inspection within 12 months of completion of all construction and every 7 years. This inspection must be performed by a licensed building envelope inspector. Ongoing inspections of the property should be performed by a licensed inspector, with the exception of a roof inspection which may be performed by a licensed roofing contractor.

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

Due to increased building activity we have seen a dramatic increase in certain vendor pricing during

2016. However, it currently is not known if this is a temporary or permanent increase. We have not

considered this increase in current cost projections but will monitor these costs on a go forward basis.

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

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

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

According to the Declaration, Article 1(h): “Common property” means any real property or interest in real property which is owned or leased by the Association or designated in a plat for transfer to the Association. “Common property” includes personal property owned or leased by the Association.

According to the Bylaws, Article 4 (m), the Board has the power and duty to “Cause the common property owned by the Association to be maintained and pay all local taxes, as applicable.”

Revised 10/19/2017

jwong

CAI - RS

jwong

APRA

jwong

Letter Head


PAGE 5 of 70

An insurance deductible is not included in the reserve study.

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

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

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

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

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

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

Physical Analysis:

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

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

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

Please note that the Association has not had a complete building envelope inspection. The effects of not having information relating to this inspection are not known. The amounts used in this report are solely the representations of the developer.

This reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require homeowners to pay on demand (as a special assessment) their share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component.

Revised 10/19/2017


PAGE 6 of 70


MAINTENANCE PLAN

2018

Revised 10/19/2017

Ceres Gleann Homeowners Association Executive Summary of Maintenance Plan


PAGE 7 of 70

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

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

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

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

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

Revised 10/19/2017


PAGE 8 of 70

Ceres Gleann Homeowners AssociationMaintenance Plan

2018

Please note that the Association has developed an in-house maintenance plan. We commend the Association for developing a very detailed plan as well as using this plan as a guide in maintaining common area components. The Schwindt & Co maintenance plan includes all major maintenance procedures. This plan may not include all detailed maintenance procedures that are included in the in-house maintenance plan. We suggest the Association review the Schwindt & Co maintenance plan and make necessary revisions to the in-house plan and continue to use the in-house plan for scheduling purposes. We would be happy to discuss this recommendation with the Association.

Pursuant to Oregon State Statutes Chapters 94 and 100, which require a maintenance plan as an integral part of the reserve study, the maintenance procedures are as follows:The Board of Directors should refer to this maintenance plan each year when preparing the annual operating budget for the Association to ensure that annual maintenance costs are included in the budget for the years that they are scheduled.

Property Inspection

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

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

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

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

Frequency: Annually

Building Envelope Inspection

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

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

All reserve studies and maintenance plans prepared by Schwindt & Company assume that any such

Revised 10/19/2017


PAGE 9 of 70

recommendations will be followed and that all work will be performed by qualified professionals.

A complete envelope inspection should be done every 7 years, although a visual review of the building exterior may be advisable on a periodic basis under certain circumstances. The Association should consult with the inspector(s) who performed the original assessment to determine the best course of action for their individual situation.


Frequency: Every 7 years

Roof Inspection

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

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

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



Frequency: Refer to reserve study

Lighting: Exterior & Common Area Interior – Inspection/Maintenance

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

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

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

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

Repairs and inspections should be completed by a qualified professional.

Revised 10/19/2017


PAGE 10 of 70

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

Frequency: Bi-Weekly

Clubhouse/Fitness/Recreation Areas

The clubhouse may experience heavy traffic that can have a dramatic impact on the life expectancy of the equipment. Preventive maintenance is critical. Consult the manufacturers of exercise and weight equipment for specific maintenance. The overall condition of the floors and mats should be reviewed for deficiencies such as excessive wear, stains, tears, and tripping hazards. The overall condition of the following should be reviewed: walls/ceilings, lighting fixture protection, exercise/weight equipment; location of signs and fire safety devices, fire extinguishers, and trash receptacles. Mirrors and glass should be reviewed for cracked/broken surfaces or rough edges.


This expense is included in the reserve study for the Association as general property maintenance expense.

Frequency: Annually

Clubhouse–Kitchen–Review

In condo facilities, common area kitchenettes and dining areas may contain pieces of equipment that can jeopardize life safety if preventive maintenance is neglected. The following monthly checklist includes common cooking equipment and dining furniture.

Review the electrical outlet load for fire safety (per manufacturer and code); check that paper/flammable materials are positioned away from heat sources; insure there is an accessible route, and there is sufficient visibility of emergency exits.

A fire extinguisher review should include: tag currency, placement, housing condition, hose condition, and overall condition.

Equipment, such as dishwashers, garbage disposals, stoves, refrigerators, and sinks should undergo review. Note: Always follow manufacturer’s guidelines. For each item, check overall condition, switches, timer, piping and valves for leaks, wiring, pilots, doors, gaskets, and belts where applicable. Gas connections should be checked.

The flooring systems should be reviewed for deficiencies such as excessive wear, stains, and tripping hazards.

Review the exhaust system for hood function and condition, grease trap function, cleanliness and condition, filter condition, exhaust duct condition, and fan function and condition

Deficiencies, required maintenance, and required repairs after completion of the review should be noted

Revised 10/19/2017


PAGE 11 of 70

by the maintenance contractor and/or association representatives.

Frequency: Monthly

Gas Connections–Review

These maintenance procedures should also be performed on the common area equipment, such as the equipment in the clubhouse.

The following check should be performed monthly for all gas connections and main valves throughout the facility. (Do not open and close valves.) The gas company should be contacted if:

* There is an odor of gas anywhere at any time.

* Valves cannot be turned off or appear to be rusted or damaged.

* Minor repairs are needed and maintenance personnel do not have adequate training or tools.

When gas is detected by odor, building occupants should immediately evacuate. The gas company and fire department should be contacted.

Possible undetected leakage should be visually checked (do not open and close valves) by performing a bubble test with soap and water, or by using a handheld combustible gas detector of professional quality.



Frequency: Monthly

Hot Water Heater –Inspection/Maintenance

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

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


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

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

Revised 10/19/2017


PAGE 12 of 70

Frequency: Monthly to Annually

Property Entrance - Review

The property entrance is a significant reflection on the development as a whole and is often the first stop in the development for residents, prospective residents or buyers, and visitors. The area should be consistently clean, functional, and accessible. In addition to serving as a point of initial access, the main entry may feature mailboxes, which should be secure and operational.

Mailboxes: Review overall condition and function of locks; proper lubrication of working parts; cleanliness of face plates; security of housing, in compliance with current postal regulations; accuracy and visibility of signage/accessibility of tactile lettering, where required; condition and function of slots and depositories for outgoing mail and packages.


This expense is included in the reserve study for the Association as general property maintenance expense.

Frequency: Annually

Windows & Doors

These maintenance procedures should also be performed on the common area buildings including the clubhouse.

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

Frequency: Annually

Fence–Inspection

The fence located in the common area should be checked annually for overall integrity and safety. The overall condition of the fence should be checked for deficiencies such as vegetation encroachment, debris buildup, holes, sagging areas, missing segments, rust, and/or vandalism.


Frequency: Annually

Gutters & Downspouts

Revised 10/19/2017


PAGE 13 of 70

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

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


Frequency: Annually

HVAC–Clubhouse Air Conditioning Unit

Regular preventive maintenance of HVAC (heating, ventilation, and air-conditioning) systems is crucial to the quality of air and comfort level within the condominium community. Preventive maintenance is also important for energy efficiency and maximizing equipment life. HVAC systems should always sufficiently control temperature and humidity, distribute outside air uniformly, and isolate and remove odors and pollutants. Improper function and maintenance can cause indoor air pollution by allowing stale or contaminated air to remain in the building. It is essential that both the building’s common HVAC system and those for individual units have fully functional and regularly inspected pressure control, filtration, and exhaust equipment. HVAC systems must also be properly sized in proportion to the area and number of occupants.

Management may opt to contract outside professionals to handle this task, although the following preventive maintenance procedures can be conducted by in-house maintenance personnel. If an outside service contractor is used, be sure to validate their performance by an audit of service performed.

When performing any maintenance procedures, always refer to manufacturer’s recommendations. Diagnostic tools, such as a digital HVAC analyzer, can also be of help.

For all types of HVAC systems, change filters twice a year and post a sticker on the HVAC unit with the date of change and initials of the mechanic. If an outside service is used, plot the date of service on the wall chart and verify that performance is as per contract.

Frequency: Semiannually

Exterior Walls

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

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

Any penetrations of the building envelope such as utility lines and light fixtures should be checked annually for signs of water intrusion. Hose bibs should be checked for leaks and other failures. Each

Revised 10/19/2017


PAGE 14 of 70

hose bib should be shut off and drained during the winter to prevent damage from freezing.

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


Inspections should be made by a qualified professional.


Frequency: Annually

Fire Extinguishers – Common Areas Only

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

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

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

Frequency: Semi-annually

Trees - Maintenance

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


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

Frequency: Annually

Landscape Maintenance

Revised 10/19/2017


PAGE 15 of 70

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


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

Frequency: Annually

Lawn Irrigation System

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

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

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


Frequency: Annually

Sewer Laterals – Inspection/Maintenance

All drain lines in the clubhouse connect to the main drain, which is referred to as the “sewer”, beyond the foundation. All sewer lines outside of the foundation have cleanout points at various locations. Reaming from these points requires the use of a high power hose, hydro-jet, or power equipment.



Frequency: Annually

Exterior Siding Maintenance – Painting

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

Revised 10/19/2017


PAGE 16 of 70

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


Frequency: Every 10 years, beginning in 2023

Asphalt – Seal Coating

Maintenance of asphalt paving includes the periodic application of an asphalt emulsion sealer or “seal coat”. This procedure is typically performed every 4 to 7 years, depending on a variety of factors that can affect the useful life of the sealer.

Vehicle traffic is one such factor, and associations that have asphalt paving that carries considerable vehicle traffic should consider a maintenance program that calls for seal coating of asphalt driving surfaces as frequently as every 4 years.

This maintenance procedure involves thoroughly cleaning all pavements, filling of any surface cracks and patching of any locally damaged pavement surfaces. The emulsion sealer is then applied.

Parking area demarcation lines will need to be renewed each time a seal coat is applied. The component expense includes the cost of this work as well as the seal coating cost.

This work should be performed by a licensed paving contractor.



Clubhouse - Interior Paint

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



Backflow Device Maintenance

Maintenance of the backflow device and components related to the water system includes, but is not limited to, inspecting for leaks under pressure and checking for damage or deterioration.

Annual maintenance on the backflow device includes the testing and calibrating of valve operation. Air

Revised 10/19/2017


PAGE 17 of 70

should be bled from the backflow preventer and the area should be cleaned.



This maintenance item should be included in the Association’s annual operating budget.

Frequency: Annually

Concrete Pavement

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

Frequency: Annually

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

Revised 10/19/2017


PAGE 18 of 70


RESERVE STUDY

LEVEL III: UPDATE WITH NO VISUAL SITE INSPECTION

2018

Revised 10/19/2017

Ceres Gleann Homeowners Association Category Detail Index


PAGE 19 of 70

Asset IDDescription Replacement Page

Roofing1027 Roof - Community Center - Replacement 2027 36 of 701028 Roof - Gazebo - Replacement 2029 36 of 701052 Roof Inspection Unfunded 37 of 70

Siding1045 Siding - Repair 2034 38 of 70

Painting1002 Gazebo - Paint 2025 39 of 701003 Interior - Paint 2019 39 of 701001 Siding - Paint 2023 39 of 70

Building Components1026 Acoustic Panels - Replacement 2024 41 of 701011 Carpet - Replacement 2018 41 of 701024 Plumbing Fixtures - Replacement 2024 42 of 701012 Vinyl Flooring - Replacement 2033 42 of 70

Gutters and Downspouts1029 Gutters and Downspouts - Replacement 2023 44 of 70

Fencing/Security1036 Cedar Fence - Replacement 2022 45 of 701047 Masonry Wall - Brick Re-point 2029 45 of 701034 Masonry Wall - Clean and Seal 2018 46 of 701004 Metal Railings/Other Railings - Painting 2018 46 of 70

Equipment1031 Air Conditioning - Replacement 2020 48 of 701057 Automated External Defibrillator - Replacement 2027 48 of 701018 Dishwasher - Replacement 2018 49 of 701015 Electric Range - Replacement 2019 49 of 701060 Folding Round Tables: 4' - Replacement 2024 50 of 701059 Folding Tables: 4' - Replacement 2024 50 of 70

Revised 10/19/2017

Ceres Gleann Homeowners Association Category Detail Index


PAGE 20 of 70

Asset IDDescription Replacement Page

Equipment Continued...1030 Furnace - Replacement 2019 51 of 701017 Garbage Disposal - Replacement 2024 51 of 701032 Gas Fireplace - Replacement 2025 51 of 701016 Refrigerator/Bottom Freezer - Replacement 2018 52 of 701058 Sound System w/ Microphones - Replacement 2022 52 of 701061 Television - Replacement 2018 53 of 701046 Water Heater - Replacement 2019 53 of 70

Interior Furnishings1041 Bathrooms - Renewal 2019 54 of 701022 Folding Chairs - Replacement 2024 54 of 701020 Folding Tables - 6' - Replacement 2024 55 of 701055 Kitchen - Renewal 2025 55 of 70

Lighting1009 Landscape Lighting Fixtures - Replacement 2024 57 of 70

Grounds Components1049 Concrete - Repairs 2021 58 of 701037 Garden Shed - Replacement 2024 59 of 701006 Major Landscape Renovation - Replacement 2018 59 of 70

Doors and Windows1039 Double Doors - Replacement 2018 61 of 701014 Sunshades - Replacement 2037 61 of 701040 Windows - Replacement 2034 62 of 70

Common Area Asphalt1044 Asphalt - Overlay 2032 63 of 701025 Asphalt - Seal Coat 2020 63 of 70

Inspection1050 Building Envelope Inspection 2029 65 of 701051 Property Inspection 2018 65 of 70

Total Funded Assets 43Total Unfunded Assets 1Total Assets 44

Revised 10/19/2017

Ceres Gleann Homeowners Association Property Description


PAGE 21 of 70

Ceres Gleann Homeowners Association consists of 133 single family home units located in Dallas, Oregon. The Association shall provide maintenance to all Common Areas including the clubhouse, garden area, and entrance tracts. The individual homeowners are responsible for all maintenance and repairs of their home and the adjacent private property.

This study uses information supplied by the Association, and various construction pricing and scheduling manuals to determine useful lives and replacement costs.

A site visit was performed by Schwindt & Company in 2015. Schwindt & Co did not investigate

components for defects, materials, design or workmanship. This would ordinarily be considered in a

complete building envelope inspection. Our condition assessment considers if the component is wearing

as intended. All components are considered to be in fair condition and appear to be wearing as intended

unless noted otherwise in the component detail.

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

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

Revised 10/19/2017

Ceres Gleann Homeowners AssociationDallas, Oregon

Cash Flow Method - Threshold Funding Model Summary


PAGE 22 of 70

Report Date September 15, 2014Account Number 2cergl

Budget Year Beginning January 01, 2018Budget Year Ending December 31, 2018

Total Units 133

Report Parameters

Inflation 2.50%Annual Assessment Increase 3.00%Interest Rate on Reserve Deposit 0.10%

2018 Beginning Balance $75,000

Threshold Funding Fully Reserved Model Summary

This study utilizes the cash flow method and the threshold funding model, which establishes a reserve funding goal that

keeps the reserve balance above a specified dollar or percent funded amount. The threshold method assumes that the

threshold method is funded with a positive threshold balance, therefore, "fully reserved".

The following items were not included in the analysis because they have useful lives greater than 30 years:

grading/drainage; foundation/footings; storm drains; telephone, cable, and internet lines.

This funding scenario begins with a contribution of $13,196 in 2018 and increases 3.00% each year for the remaining

years of the study. A minimum balance of $20,596 is maintained.

The reserve study cash flow model includes an annual increase in the required contribution over the 30 year

period. Since the current Board and membership only has the authority to obligate the Association for the current budget

year, the cash flow model relies on the actions of future Boards to adhere to the required increase in the annual reserve

contribution. Because of the possibility that future Boards, due to budgetary constraints, are not able to increase the

reserve contribution to the required amount to provide for adequate funding, the Association may be at risk in the future

of special assessing the members to fund needed expenditures.

The purpose of this study is to insure that adequate replacement funds are available when components reach the end of

their useful life. Components will be replaced as required, not necessarily in their expected replacement year. This

analysis should be updated annually.

Cash Flow Method - Threshold Funding Model Summary of Calculations

Required Month Contribution $1,099.67$8.27 per unit monthly

Average Net Month Interest Earned $3.93Total Month Allocation to Reserves $1,103.60

$8.30 per unit monthly

Revised 10/19/2017

Ceres Gleann Homeowners Association Cash Flow Method - Threshold Funding Model Projection


PAGE 23 of 70

Beginning Balance: $75,000Projected Fully

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

2018 13,196 47 35,004 53,239 98,873 54%2019 13,592 47 13,910 52,968 100,540 53%2020 14,000 52 8,366 58,653 108,284 54%2021 14,420 61 5,279 67,855 119,731 57%2022 14,852 67 9,326 73,448 127,651 58%2023 15,298 75 6,985 81,836 138,479 59%2024 15,757 59 30,916 66,736 125,210 53%2025 16,229 56 19,428 63,594 123,802 51%2026 16,716 51 21,551 58,810 120,567 49%2027 17,218 48 20,476 55,600 118,845 47%2028 17,734 49 15,727 57,656 122,353 47%2029 18,266 47 20,378 55,592 121,081 46%2030 18,814 59 6,524 67,941 134,657 50%2031 19,379 72 6,758 80,633 148,763 54%2032 19,960 66 25,012 75,648 144,952 52%2033 20,559 54 32,503 63,758 133,811 48%2034 21,176 11 64,348 20,596 90,212 23%2035 21,811 25 7,460 34,973 104,310 34%2036 22,465 34 13,239 44,233 113,631 39%2037 23,139 43 13,493 53,922 123,431 44%2038 23,833 49 17,615 60,190 129,771 46%2039 24,548 72 1,176 83,635 153,653 54%2040 25,285 90 7,379 101,631 172,319 59%2041 26,043 107 8,651 119,131 190,708 62%2042 26,825 95 38,499 107,552 179,536 60%2043 27,629 111 11,445 123,847 196,403 63%2044 28,458 109 30,694 121,720 194,565 63%2045 29,312 106 31,835 119,303 192,129 62%2046 30,191 122 13,881 135,736 208,668 65%2047 31,097 119 33,552 133,400 206,107 65%

Revised 10/19/2017

Ceres Gleann Homeowners Association Component Summary By Category


PAGE 24 of 70

Serv

ice

Dat

e in

Yea

r

Rep

lace

men

tU

sefu

lA

djus

tmen

tR

emai

ning

Uni

ts

Cos

t

Uni

t

Cos

t

Cur

rent

Description

RoofingRoof - Community Center - Replacement 2004 2027 20 3 9 4,440 SF 2.62 11,633Roof - Gazebo - Replacement 2004 2029 25 0 11 1 Total 1,575.94 1,576Roof Inspection Unfunded Roofing - Total $13,209

SidingSiding - Repair 2004 2034 30 0 16 567 SF 10.51 5,959 Siding - Total $5,959

PaintingGazebo - Paint 2015 2025 10 0 7 1 Total 525.31 525Interior - Paint 2004 2019 15 0 1 4,076 SF 1.05 4,280Siding - Paint 2014 2023 10 -1 5 2,268 SF 1.58 3,583 Painting - Total $8,389

Building ComponentsAcoustic Panels - Replacement 2004 2024 20 0 6 1 Total 1,754.54 1,755Carpet - Replacement 2004 2018 15 -1 0 1,968 SF 4.20 8,266Plumbing Fixtures - Replacement 2004 2024 20 0 6 1 Total 262.66 263Vinyl Flooring - Replacement 2004 2033 30 -1 15 1,070 SF 6.30 6,741 Building Components - Total $17,024

Gutters and DownspoutsGutters and Downspouts - Replacement 2004 2023 20 -1 5 300 LF 6.30 1,890 Gutters and Downspouts - Total $1,890

Fencing/SecurityCedar Fence - Replacement 2004 2022 20 -2 4 107 LF 28.36 3,035Masonry Wall - Brick Re-point 2004 2029 25 0 11 961 SF 10.51 10,103Masonry Wall - Clean and Seal 2016 2018 2 0 0 1 Total 2,050.00 2,050Metal Railings/Other Railings - Painting 2008 2018 10 0 0 1 Total 6,000.00 6,000 Fencing/Security - Total $21,188

EquipmentAir Conditioning - Replacement 2004 2020 15 1 2 1 Total 3,677.19 3,677Automated External Defibrillator - Replace.. 2017 2027 10 0 9 1 Total 1,399.00 1,399Dishwasher - Replacement 2004 2018 8 0 0 1 Total 735.44 735Electric Range - Replacement 2004 2019 15 0 1 1 Total 787.97 788Folding Round Tables: 4' - Replacement 2004 2024 20 0 6 7 Each 125.00 875Folding Tables: 4' - Replacement 2004 2024 20 0 6 8 Each 125.00 1,000Furnace - Replacement 2004 2019 15 0 1 1 Total 3,677.19 3,677

Revised 10/19/2017



PAGE 25 of 70

Serv

ice

Dat

e in

Yea

r

Rep

lace

men

tU

sefu

lA

djus

tmen

tR

emai

ning

Uni

ts

Cos

t

Uni

t

Cos

t

Cur

rent

Description

Equipment continued...Garbage Disposal - Replacement 2004 2024 20 0 6 1 Total 262.66 263Gas Fireplace - Replacement 2004 2025 20 1 7 1 Total 4,612.50 4,612Refrigerator/Bottom Freezer - Replacement 2004 2018 12 0 0 1 Total 2,101.25 2,101Sound System w/ Microphones - Replacem.. 2017 2022 5 0 4 1 Total 2,664.00 2,664Television - Replacement 2004 2018 10 0 0 1 Total 2,000.00 2,000Water Heater - Replacement 2004 2019 15 0 1 1 Total 1,050.62 1,051 Equipment - Total $24,843

Interior FurnishingsBathrooms - Renewal 2004 2019 15 0 1 1 Total 3,075.00 3,075Folding Chairs - Replacement 2004 2024 20 0 6 116 Each 28.89 3,351Folding Tables - 6' - Replacement 2004 2024 20 0 6 12 Each 144.46 1,734Kitchen - Renewal 2004 2025 20 1 7 1 Total 10,506.25 10,506 Interior Furnishings - Total $18,666

LightingLandscape Lighting Fixtures - Replacement 2004 2024 20 0 6 1 Total 2,626.56 2,627 Lighting - Total $2,627

Grounds ComponentsConcrete - Repairs 2016 2021 5 0 3 1 Total 4,202.50 4,202Garden Shed - Replacement 2004 2024 30 -10 6 1 Total 10,506.25 10,506Major Landscape Renovation - Replacement 2009 2018 8 0 0 1 Total 10,000.00 10,000 Grounds Components - Total $24,709

Doors and WindowsDouble Doors - Replacement 2004 2018 15 -1 0 3 Each 1,050.62 3,152Sunshades - Replacement 2007 2037 30 0 19 10 Each 367.72 3,677Windows - Replacement 2004 2034 30 0 16 1 Total 11,031.56 11,032 Doors and Windows - Total $17,861

Common Area AsphaltAsphalt - Overlay 2004 2032 28 0 14 4,800 SF 2.56 12,288Asphalt - Seal Coat 2016 2020 4 0 2 4,800 SF 0.32 1,536 Common Area Asphalt - Total $13,824

InspectionBuilding Envelope Inspection 2004 2029 25 0 11 1 Total 3,151.87 3,152Property Inspection 2017 2018 1 0 0 1 Total 700.00 700 Inspection - Total $3,852

Revised 10/19/2017



PAGE 26 of 70

Serv

ice

Dat

e in

Yea

r

Rep

lace

men

tU

sefu

lA

djus

tmen

tR

emai

ning

Uni

ts

Cos

t

Uni

t

Cos

t

Cur

rent

Description

Total Asset Summary $174,039

Revised 10/19/2017

Ceres Gleann Homeowners Association Component Summary By Group


PAGE 27 of 70

Serv

ice

Dat

e in

Yea

r

Rep

lace

men

tU

sefu

lA

djus

tmen

tR

emai

ning

Uni

ts

Cos

t

Uni

t

Cos

t

Cur

rent

Description

CapitalAcoustic Panels - Replacement 2004 2024 20 0 6 1 Total 1,754.54 1,755Air Conditioning - Replacement 2004 2020 15 1 2 1 Total 3,677.19 3,677Asphalt - Overlay 2004 2032 28 0 14 4,800 SF 2.56 12,288Asphalt - Seal Coat 2016 2020 4 0 2 4,800 SF 0.32 1,536Automated External Defibrillator - Replace.. 2017 2027 10 0 9 1 Total 1,399.00 1,399Bathrooms - Renewal 2004 2019 15 0 1 1 Total 3,075.00 3,075Carpet - Replacement 2004 2018 15 -1 0 1,968 SF 4.20 8,266Cedar Fence - Replacement 2004 2022 20 -2 4 107 LF 28.36 3,035Dishwasher - Replacement 2004 2018 8 0 0 1 Total 735.44 735Double Doors - Replacement 2004 2018 15 -1 0 3 Each 1,050.62 3,152Electric Range - Replacement 2004 2019 15 0 1 1 Total 787.97 788Folding Chairs - Replacement 2004 2024 20 0 6 116 Each 28.89 3,351Folding Round Tables: 4' - Replacement 2004 2024 20 0 6 7 Each 125.00 875Folding Tables - 6' - Replacement 2004 2024 20 0 6 12 Each 144.46 1,734Folding Tables: 4' - Replacement 2004 2024 20 0 6 8 Each 125.00 1,000Furnace - Replacement 2004 2019 15 0 1 1 Total 3,677.19 3,677Garbage Disposal - Replacement 2004 2024 20 0 6 1 Total 262.66 263Garden Shed - Replacement 2004 2024 30 -10 6 1 Total 10,506.25 10,506Gas Fireplace - Replacement 2004 2025 20 1 7 1 Total 4,612.50 4,612Gutters and Downspouts - Replacement 2004 2023 20 -1 5 300 LF 6.30 1,890Kitchen - Renewal 2004 2025 20 1 7 1 Total 10,506.25 10,506Landscape Lighting Fixtures - Replacement 2004 2024 20 0 6 1 Total 2,626.56 2,627Major Landscape Renovation - Replacement 2009 2018 8 0 0 1 Total 10,000.00 10,000Plumbing Fixtures - Replacement 2004 2024 20 0 6 1 Total 262.66 263Refrigerator/Bottom Freezer - Replacement 2004 2018 12 0 0 1 Total 2,101.25 2,101Roof - Community Center - Replacement 2004 2027 20 3 9 4,440 SF 2.62 11,633Roof - Gazebo - Replacement 2004 2029 25 0 11 1 Total 1,575.94 1,576Sound System w/ Microphones - Replacem.. 2017 2022 5 0 4 1 Total 2,664.00 2,664Sunshades - Replacement 2007 2037 30 0 19 10 Each 367.72 3,677Television - Replacement 2004 2018 10 0 0 1 Total 2,000.00 2,000Vinyl Flooring - Replacement 2004 2033 30 -1 15 1,070 SF 6.30 6,741Water Heater - Replacement 2004 2019 15 0 1 1 Total 1,050.62 1,051Windows - Replacement 2004 2034 30 0 16 1 Total 11,031.56 11,032 Capital - Total $133,483

Non-CapitalBuilding Envelope Inspection 2004 2029 25 0 11 1 Total 3,151.87 3,152Concrete - Repairs 2016 2021 5 0 3 1 Total 4,202.50 4,202Gazebo - Paint 2015 2025 10 0 7 1 Total 525.31 525Interior - Paint 2004 2019 15 0 1 4,076 SF 1.05 4,280Masonry Wall - Brick Re-point 2004 2029 25 0 11 961 SF 10.51 10,103Masonry Wall - Clean and Seal 2016 2018 2 0 0 1 Total 2,050.00 2,050

Revised 10/19/2017

Ceres Gleann Homeowners Association Component Summary By Group


PAGE 28 of 70

Serv

ice

Dat

e in

Yea

r

Rep

lace

men

tU

sefu

lA

djus

tmen

tR

emai

ning

Uni

ts

Cos

t

Uni

t

Cos

t

Cur

rent

Description

Non-Capital continued...Metal Railings/Other Railings - Painting 2008 2018 10 0 0 1 Total 6,000.00 6,000Property Inspection 2017 2018 1 0 0 1 Total 700.00 700Roof Inspection UnfundedSiding - Paint 2014 2023 10 -1 5 2,268 SF 1.58 3,583Siding - Repair 2004 2034 30 0 16 567 SF 10.51 5,959 Non-Capital - Total $40,555

Total Asset Summary $174,039

Revised 10/19/2017

Ceres Gleann Homeowners Association Annual Expenditure Detail


PAGE 29 of 70

Description Expenditures

Replacement Year 2018Carpet - Replacement 8,266Dishwasher - Replacement 735Double Doors - Replacement 3,152Major Landscape Renovation - Replacement 10,000Masonry Wall - Clean and Seal 2,050Metal Railings/Other Railings - Painting 6,000Property Inspection 700Refrigerator/Bottom Freezer - Replacement 2,101Television - Replacement 2,000

Total for 2018 $35,004

Replacement Year 2019Bathrooms - Renewal 3,152Electric Range - Replacement 808Furnace - Replacement 3,769Interior - Paint 4,387Property Inspection 717Water Heater - Replacement 1,077

Total for 2019 $13,910

Replacement Year 2020Air Conditioning - Replacement 3,863Asphalt - Seal Coat 1,614Masonry Wall - Clean and Seal 2,154Property Inspection 735

Total for 2020 $8,366

Replacement Year 2021Concrete - Repairs 4,526Property Inspection 754

Total for 2021 $5,279

Replacement Year 2022Cedar Fence - Replacement 3,350

Revised 10/19/2017



PAGE 30 of 70


Replacement Year 2022 continued...Masonry Wall - Clean and Seal 2,263Property Inspection 773Sound System w/ Microphones - Replacement 2,941

Total for 2022 $9,326

Replacement Year 2023Gutters and Downspouts - Replacement 2,138Property Inspection 792Siding - Paint 4,054

Total for 2023 $6,985

Replacement Year 2024Acoustic Panels - Replacement 2,035Asphalt - Seal Coat 1,781Folding Chairs - Replacement 3,886Folding Round Tables: 4' - Replacement 1,015Folding Tables - 6' - Replacement 2,010Folding Tables: 4' - Replacement 1,160Garbage Disposal - Replacement 305Garden Shed - Replacement 12,184Landscape Lighting Fixtures - Replacement 3,046Masonry Wall - Clean and Seal 2,377Plumbing Fixtures - Replacement 305Property Inspection 812

Total for 2024 $30,916

Replacement Year 2025Gas Fireplace - Replacement 5,483Gazebo - Paint 624Kitchen - Renewal 12,489Property Inspection 832

Total for 2025 $19,428

Replacement Year 2026Concrete - Repairs 5,120

Revised 10/19/2017



PAGE 31 of 70


Replacement Year 2026 continued...Dishwasher - Replacement 896Major Landscape Renovation - Replacement 12,184Masonry Wall - Clean and Seal 2,498Property Inspection 853

Total for 2026 $21,551

Replacement Year 2027Automated External Defibrillator - Replacement 1,747Property Inspection 874Roof - Community Center - Replacement 14,528Sound System w/ Microphones - Replacement 3,327

Total for 2027 $20,476

Replacement Year 2028Asphalt - Seal Coat 1,966Masonry Wall - Clean and Seal 2,624Metal Railings/Other Railings - Painting 7,681Property Inspection 896Television - Replacement 2,560

Total for 2028 $15,727

Replacement Year 2029Building Envelope Inspection 4,136Masonry Wall - Brick Re-point 13,256Property Inspection 918Roof - Gazebo - Replacement 2,068

Total for 2029 $20,378

Replacement Year 2030Masonry Wall - Clean and Seal 2,757Property Inspection 941Refrigerator/Bottom Freezer - Replacement 2,826

Total for 2030 $6,524

Revised 10/19/2017



PAGE 32 of 70


Replacement Year 2031Concrete - Repairs 5,793Property Inspection 965

Total for 2031 $6,758

Replacement Year 2032Asphalt - Overlay 17,363Masonry Wall - Clean and Seal 2,897Property Inspection 989Sound System w/ Microphones - Replacement 3,764

Total for 2032 $25,012

Replacement Year 2033Carpet - Replacement 11,971Double Doors - Replacement 4,565Property Inspection 1,014Siding - Paint 5,190Vinyl Flooring - Replacement 9,763

Total for 2033 $32,503

Replacement Year 2034Bathrooms - Renewal 4,565Dishwasher - Replacement 1,092Electric Range - Replacement 1,170Furnace - Replacement 5,459Interior - Paint 6,353Major Landscape Renovation - Replacement 14,845Masonry Wall - Clean and Seal 3,043Property Inspection 1,039Siding - Repair 8,846Water Heater - Replacement 1,560Windows - Replacement 16,376

Total for 2034 $64,348

Replacement Year 2035Air Conditioning - Replacement 5,595

Revised 10/19/2017



PAGE 33 of 70


Replacement Year 2035 continued...Gazebo - Paint 799Property Inspection 1,065

Total for 2035 $7,460

Replacement Year 2036Asphalt - Seal Coat 2,396Concrete - Repairs 6,554Masonry Wall - Clean and Seal 3,197Property Inspection 1,092

Total for 2036 $13,239

Replacement Year 2037Automated External Defibrillator - Replacement 2,237Property Inspection 1,119Sound System w/ Microphones - Replacement 4,259Sunshades - Replacement 5,879

Total for 2037 $13,493

Replacement Year 2038Masonry Wall - Clean and Seal 3,359Metal Railings/Other Railings - Painting 9,832Property Inspection 1,147Television - Replacement 3,277

Total for 2038 $17,615

Replacement Year 2039Property Inspection 1,176

Total for 2039 $1,176

Replacement Year 2040Asphalt - Seal Coat 2,644Masonry Wall - Clean and Seal 3,529Property Inspection 1,205

Total for 2040 $7,379

Revised 10/19/2017



PAGE 34 of 70


Replacement Year 2041Concrete - Repairs 7,416Property Inspection 1,235

Total for 2041 $8,651

Replacement Year 2042Cedar Fence - Replacement 5,489Dishwasher - Replacement 1,330Major Landscape Renovation - Replacement 18,087Masonry Wall - Clean and Seal 3,708Property Inspection 1,266Refrigerator/Bottom Freezer - Replacement 3,801Sound System w/ Microphones - Replacement 4,818

Total for 2042 $38,499

Replacement Year 2043Gutters and Downspouts - Replacement 3,504Property Inspection 1,298Siding - Paint 6,643

Total for 2043 $11,445

Replacement Year 2044Acoustic Panels - Replacement 3,334Asphalt - Seal Coat 2,919Folding Chairs - Replacement 6,368Folding Round Tables: 4' - Replacement 1,663Folding Tables - 6' - Replacement 3,294Folding Tables: 4' - Replacement 1,900Garbage Disposal - Replacement 499Landscape Lighting Fixtures - Replacement 4,991Masonry Wall - Clean and Seal 3,896Plumbing Fixtures - Replacement 499Property Inspection 1,330

Total for 2044 $30,694

Revised 10/19/2017



PAGE 35 of 70


Replacement Year 2045Gas Fireplace - Replacement 8,984Gazebo - Paint 1,023Kitchen - Renewal 20,464Property Inspection 1,363

Total for 2045 $31,835

Replacement Year 2046Concrete - Repairs 8,390Masonry Wall - Clean and Seal 4,093Property Inspection 1,398

Total for 2046 $13,881

Replacement Year 2047Automated External Defibrillator - Replacement 2,863Property Inspection 1,432Roof - Community Center - Replacement 23,805Sound System w/ Microphones - Replacement 5,452

Total for 2047 $33,552

Revised 10/19/2017

Ceres Gleann Homeowners Association Detail Report by Category


PAGE 36 of 70

Roof - Community Center - Replacement

Asset ID 1027Capital

RoofingPlaced in Service January 2004

Useful Life 20Adjustment 3

Replacement Year 2027Remaining Life 9

4,440 SF @ $2.62Asset Cost $11,632.80

Percent Replacement 100%Future Cost $14,527.77

This component funds for the replacement of the roof shingles and related flashings on the

Community Center. This procedure includes removal and disposal of the old roofing and

replacement of the waterproof barrier sheet beneath the shingles.

Schwindt and Company estimated 4,440 square feet of roofing material.

This work should be performed by a qualified roofing contractor.

The cost is per a per square foot estimate provided by Clow Roofing and Siding.

The life estimate is per the Association.

Roof - Gazebo - Replacement



Useful Life 25Replacement Year 2029

Remaining Life 11

1 Total @ $1,575.94Asset Cost $1,575.94


This component funds for the replacement of the roof shingles and related flashings on the

gazebo. This procedure includes removal and disposal of the old roofing and replacement of

the waterproof barrier sheet beneath the shingles.

This work should be performed by a qualified roofing contractor.

Clow Roofing (503) 281-1238 estimated a cost of $1,500 to replace.

The estimated useful life is per the Association.

Revised 10/19/2017



PAGE 37 of 70

Roof - Gazebo - Replacement continued...

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

of this item is greater than or less than the amount provided for herein, this study should be

updated to reflect the actual component cost.

Roof Inspection

Asset ID 1052Non-Capital



Remaining Life 0

1 Total @ Asset Cost

Percent Replacement 100%Future Cost

Done with property inspection.

This component funds for the periodic inspection and maintenance of roofing and related

elements of the clubhouse.

The inspection should be performed by a qualified roofing professional and should include a

written summary of conclusions with specific recommendations for any needed repairs or

maintenance.

Recommended maintenance and repairs should be performed in a timely manner by a licensed

roofing contractor.

No inspection is occurs in 2024 due to the planned replacement.

This component is an estimate. If the actual cost of this component is determined to be

different from this estimate, the reserve study should be updated to reflect the actual cost.

Roofing - Total Current Cost $13,209

Revised 10/19/2017



PAGE 38 of 70

Siding - Repair


SidingPlaced in Service January 2004


Remaining Life 16

2,268 SF @ $10.51Asset Cost $5,959.17


This component funds for the repair of the Community Center exterior. This provision is for damaged sections on, which is estimated to be 25%.

Schwindt and Company estimated 2,268 square feet of siding.

The cost and useful life assumptions are based on accepted industry estimates as established by RS Means and/or The National Construction Estimator. The Association should obtain a bid to confirm this estimate.Note: This is a provision for an anticipated expense. Should the Association find that the cost



Siding - Total Current Cost $5,959

Revised 10/19/2017



PAGE 39 of 70

Gazebo - Paint


PaintingPlaced in Service January 2015


Remaining Life 7

1 Total @ $525.31Asset Cost $525.31

Percent Replacement 100%Future Cost $624.43

This component funds for the painting of the Gazebo every 4 years. This includes the maintenance of the floor.

The cost and useful life assumptions are based on accepted industry estimates as established by RS Means and/or The National Construction Estimator.

Interior - Paint




Remaining Life 1

4,076 SF @ $1.05Asset Cost $4,279.80


This component funds for painting the interior walls every 15 years.

Schwindt and Company estimated 4,076 square feet of walls.


Siding - Paint



Useful Life 10Adjustment -1


2,268 SF @ $1.58Asset Cost $3,583.44


This component funds for the painting of the community center exterior siding.

Revised 10/19/2017



PAGE 40 of 70

Siding - Paint continued...

Painting includes power washing the surface to be painted; replacing cracked caulking; scraping, sanding and priming peeling paint; nailing down loose boards and checking for dry rot; spraying all siding with 2 coats of Sherwin Williams Super paint; and roll and brush all trim with 2 coats satin or semi gloss Super paint.

Schwindt and Company estimated 2,268 square feet of siding.

The cost is based on a per square foot estimate provided by a local vendor.

The useful life estimate is per the Association.




Painting - Total Current Cost $8,389

Revised 10/19/2017



PAGE 41 of 70

Acoustic Panels - Replacement


Building ComponentsPlaced in Service January 2004


Remaining Life 6

1 Total @ $1,754.54Asset Cost $1,754.54


This component funds for replacement of the acoustic panels in the Community Center.

According to the Association, they have estimated $495 for absorptive panels, $495 for Diffusive panels, and $680 for a contractor, including scaffolding necessary.


Carpet - Replacement





1,968 SF @ $4.20Asset Cost $8,265.60


This component funds for the replacement of the carpet in the Community Center.

Schwindt and Company estimated 1,968 square feet of carpet.

The cost and useful life assumptions are based on accepted industry estimates as established by RS Means and/or The National Construction Estimator. The Association should obtain a bid to confirm this estimate.

Revised 10/19/2017



PAGE 42 of 70

Plumbing Fixtures - Replacement




Remaining Life 6



This component funds for the replacement of the plumbing fixtures in the Community Center.


Vinyl Flooring - Replacement





1,070 SF @ $6.30Asset Cost $6,741.00


This component funds for the replacement of the vinyl flooring.

Schwindt and Company and the following estimates:

2 bathrooms @ 10 x 10: 200 sf

Kitchen @ 15 x 10: 150 sf

Dance Floor @ 24 x 30: 720 sf

Total: 1,070 sf


Revised 10/19/2017



PAGE 43 of 70

Building Components - Total Current Cost $17,024

Revised 10/19/2017



PAGE 44 of 70

Gutters and Downspouts - Replacement


Gutters and DownspoutsPlaced in Service January 2004



300 LF @ $6.30Asset Cost $1,890.00


This component provides funding for the replacement of the gutters and downspouts at the

same time that the roofing is replaced. This component is scheduled to occur in 2022 with the

first phase of the roof replacement.

It is recommended that the gutters be replaced at the time the roofing is replaced to ensure a

high quality, water-tight transition between the roof edge and the gutters.

All ongoing expenses for cleaning, maintenance and minor repairs should be included in the

annual operating budget for the association.

Schwindt and Company estimated 300 linear feet of gutters.

The cost is based on a per linear foot estimate provided by Great Northwest Gutters, a local

service provider.


Gutters and Downspouts - Total Current Cost $1,890

Revised 10/19/2017



PAGE 45 of 70

Cedar Fence - Replacement


Fencing/SecurityPlaced in Service January 2004



107 LF @ $28.36Asset Cost $3,034.52


This component funds for the replacement of the cedar fence on the south and west side of the garden area by the gazebo.

According to the Association, there is107 linear feet of fencing.

The cost is based on a per linear foot estimate provided by Rick's Custom Fencing & Decking.


Masonry Wall - Brick Re-point




Remaining Life 11

9,613 SF @ $10.51Asset Cost $10,103.26


This component funds for the re-pointing of the brick masonry walls on Rhododendron, Magnolia, and by the gazebo. Normally 10 to 15% of the wall will need re-pointing.

The Association estimated 9,613 square feet of walls.


Revised 10/19/2017



PAGE 46 of 70

Masonry Wall - Clean and Seal




Remaining Life 0

1 Total @ $2,050.00Asset Cost $2,050.00


This component funds for the cleaning and sealing of the masonry fences on Rhododendron, Magnolia, and near the gazebo.

The Association estimated 9,613 square feet of walls.

The cost is based per the Association.

The useful life assumption is based on accepted industry estimates as established by RS Means

and/or The National Construction Estimator.

Metal Railings/Other Railings - Painting




Remaining Life 0

1 Total @ $6,000.00Asset Cost $6,000.00


This component funds for the painting of the metal railings/fencing. The Association estimated the following:

Gazebo: 35'6"

Rhododendron Entrance: 117'10" and 33'6"

Magnolia Entrance: 94'4" and 48'6"

Garden (north & east): 80'

Community Center: 97'8"

The life expectancy is per the Association.

Revised 10/19/2017



PAGE 47 of 70

Metal Railings/Other Railings - Painting continued...

The cost is based on a cost per linear foot provided by a local vendor, and provides for power

washing and two coats of paint.

Fencing/Security - Total Current Cost $21,188

Revised 10/19/2017



PAGE 48 of 70

Air Conditioning - Replacement


EquipmentPlaced in Service January 2004



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


This component funds for the replacement of the air conditioning unit in the Community Center.

The cost and useful life are based on information from Home Comfort, Inc. 503-623-2341

Automated External Defibrillator - Replacement




Remaining Life 9

1 Total @ $1,399.00Asset Cost $1,399.00


This component funds for the replacement of the automated external defibrillator.

The useful life estimate is based on accepted industry estimates as established by RS Means


The cost estimate is per the Association.

Revised 10/19/2017



PAGE 49 of 70

Dishwasher - Replacement




Remaining Life 0



This component funds for the replacement of the dishwasher.

The cost estimate is based on accepted industry estimates as established by RS Means and/or

The National Construction Estimator.


Electric Range - Replacement




Remaining Life 1



This component funds for the replacement of the electric range in the Community Center.




Revised 10/19/2017



PAGE 50 of 70

Folding Round Tables: 4' - Replacement




Remaining Life 6

7 Each @ $125.00Asset Cost $875.00


This component funds for the replacement of the 4' round folding tables.

The cost estimates are per the Association. The Association should obtain a bid to confirm this estimate.

The useful life assumption is based on accepted industry estimates as established by RS Means and/or The National Construction Estimator.

Folding Tables: 4' - Replacement




Remaining Life 6

8 Each @ $125.00Asset Cost $1,000.00


This component funds for the replacement of the 4' folding tables.



Revised 10/19/2017



PAGE 51 of 70

Furnace - Replacement




Remaining Life 1

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


This component funds for the replacement of the gas furnace in the Community Center.


Garbage Disposal - Replacement




Remaining Life 6



This component funds for the replacement of the garbage disposal.




Gas Fireplace - Replacement





1 Total @ $4,612.50Asset Cost $4,612.50


This component funds for the replacement of the gas fireplace.

Revised 10/19/2017



PAGE 52 of 70

Gas Fireplace - Replacement continued...


Refrigerator/Bottom Freezer - Replacement




Remaining Life 0

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


This component funds for the replacement of the refrigerator with bottom unit freezer.

The cost estimate is per the Association and includes delivery.


Sound System w/ Microphones - Replacement




Remaining Life 4

1 Total @ $2,664.00Asset Cost $2,664.00


This component funds for the replacement of the sound system with microphones.

The useful life estimate is based on accepted industry estimates as established by RS Means


The cost estimate is per the Association.

Revised 10/19/2017



PAGE 53 of 70

Television - Replacement




Remaining Life 0

1 Total @ $2,000.00Asset Cost $2,000.00


This component funds for the replacement of the television.



Water Heater - Replacement




Remaining Life 1

1 Total @ $1,050.62Asset Cost $1,050.62


This provision is for the replacement of the water heater.


Equipment - Total Current Cost $24,843

Revised 10/19/2017



PAGE 54 of 70

Bathrooms - Renewal


Interior FurnishingsPlaced in Service January 2004


Remaining Life 1

1 Total @ $3,075.00Asset Cost $3,075.00


This component funds for the renewal of the men's and women's bathrooms. The renewal is for the replacement/upgrade of fixtures including the toilets and sinks.





Folding Chairs - Replacement




Remaining Life 6

116 Each @ $28.89Asset Cost $3,351.24


This component fuds for the replacement of the 116 folding chairs.

The cost is per Costco. The Association should obtain a bid to confirm this estimate.


The count is per the Association.

Revised 10/19/2017



PAGE 55 of 70

Folding Tables - 6' - Replacement




Remaining Life 6

12 Each @ $144.46Asset Cost $1,733.52


This component funds for the replacement of the twelve 6' folding tables.

The cost estimate is based on Costco pricing. The Association should obtain a bid to confirm this estimate.


The count estimate is per the Association..

Kitchen - Renewal





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


This component funds for the renewal of the kitchen. The renewal is for the replacement/upgrade of fixtures including the cabinets and sinks.





Revised 10/19/2017



PAGE 56 of 70

Interior Furnishings - Total Current Cost $18,666

Revised 10/19/2017



PAGE 57 of 70

Landscape Lighting Fixtures - Replacement


LightingPlaced in Service January 2004


Remaining Life 6

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


This component funds for the replacement of the landscape lighting fixtures and controllers.

This includes the light fixtures and controllers.


Lighting - Total Current Cost $2,627

Revised 10/19/2017



PAGE 58 of 70

Concrete - Repairs


Grounds ComponentsPlaced in Service January 2016


Remaining Life 3

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


This component funds for the partial replacement or repair of the concrete sidewalks and

walkways in the common area, and concrete pads for mailboxes. Since the expected useful life

of a typical concrete sidewalk installation is greater than thirty years, this provision funds for

the replacement of any damaged portions of the walkways.

Since the expected useful life of a typical concrete installation is greater than 30 years, this

component only provides funding for the replacement or repair of a portion of the total amount

of common area concrete walkways and mailbox pads.

The Association estimated 9,447.3 square feet of concrete sidewalks.

The cost is based on an estimate provided by the Association.

The Association should obtain a bid to confirm this estimate.





Revised 10/19/2017



PAGE 59 of 70

Garden Shed - Replacement





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


This component funds for the replacement of the garden shed. This includes removal and disposal of the old shed.




Major Landscape Renovation - Replacement




Remaining Life 0

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


This component funds for the replacement of sod, trees, hedges and addition of garden hardscape.

The cost assumption is based on information from Greg Russel 503-932-0151.

the useful life estimate is per the Association.

The Association should obtain a bid to confirm this estimate.

Revised 10/19/2017



PAGE 60 of 70

Grounds Components - Total Current Cost $24,709

Revised 10/19/2017



PAGE 61 of 70

Double Doors - Replacement


Doors and WindowsPlaced in Service January 2004



3 Each @ $1,050.62Asset Cost $3,151.86


This component funds for the replacement of the exterior double doors of the Community Center.

Schwindt and Company counted three doors.


Sunshades - Replacement




Remaining Life 19

10 Each @ $367.72Asset Cost $3,677.20


This component funds for the replacement of the sunshades in the Community Center.

Schwindt and Company estimated 10 sunshades.


Revised 10/19/2017



PAGE 62 of 70

Windows - Replacement




Remaining Life 16

1 Total @ $11,031.56Asset Cost $11,031.56


This component funds for the replacement of the windows in the Community Center.

Schwindt and Company counted the following:

10 windows @ $1,000: $10,000

2 windows @ $250: $ 500

Total: $10,500


Doors and Windows - Total Current Cost $17,861

Revised 10/19/2017



PAGE 63 of 70

Asphalt - Overlay


Common Area AsphaltPlaced in Service January 2004


Remaining Life 14

4,800 SF @ $2.56Asset Cost $12,288.00


This component funds for the overlay of the asphalt area.

Schwindt and Company estimated 4,800 square feet of asphalt.

The cost is based on a per square foot estimate provided by Coast Paving. The Association should obtain a bid to confirm this estimate.



Asphalt - Seal Coat


Common Area AsphaltPlaced in Service January 2016


Remaining Life 2

4,800 SF @ $0.32Asset Cost $1,536.00


This component funds for the seal coating of the asphalt area.

Schwindt and Company estimated 4,800 square feet of asphalt.

The cost is based on a per square foot estimate provided by Coast Paving. The Association should obtain a bid to confirm this estimate.



Revised 10/19/2017



PAGE 64 of 70

Common Area Asphalt - Total Current Cost $13,824

Revised 10/19/2017



PAGE 65 of 70

Building Envelope Inspection


InspectionPlaced in Service January 2004


Remaining Life 11

1 Total @ $3,151.87Asset Cost $3,151.87


This component funds for a building envelope inspection.

The inspection should be done by a company which specializes in such inspections.



This component is an estimate. If the actual cost of this component is determined to be

different from this estimate, the reserve study should be updated to reflect the actual cost.

Property Inspection


InspectionPlaced in Service January 2017


Remaining Life 0



This component funds for an inspection of the common area property. It includes, but is not limited to the following:

exterior and interior clubhouse lightingclubhouse recreational & fitness areasclubhouse kitchen; clubhouse gas connectionsclubhouse hot water heatermailboxesfences in the common areaclubhouse doors & windowsclubhouse gutters & downspoutsexterior clubhouse walls

Revised 10/19/2017



PAGE 66 of 70

Property Inspection continued...

interior and exterior clubhouse paintcommon area asphalt and concrete, including but not limited to seal coatgazebo roof.

Not included in the annual inspection are the following items: HVAC (still to be performed semiannually by current firm), fire extinguishers (inspected semiannually by current firm), Roof (see item #2 above), and building envelope (see item #1 above). Also not included are the recommendations to inspect storm drains and sewer lateral connections. Storm drains are a responsibility of the City of Dallas and sewer laterals are the responsibility of individual homeowners.

The purpose of the inspection is for the inspector to provide a written condition status report to the board to assist them in ongoing maintenance of the common are property. to assist the board in determining whether the timing of the repair and/or replacement of items in this study need to be accelerated or delayed.

Inspection - Total Current Cost $3,852

Revised 10/19/2017


PAGE 67 of 70

Additional Disclosures

Levels of Service

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

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

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

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

III. Update, No Site Visit/Off Site Review: A Reserve Study update with no on-site visual observations in

which the following three Reserve Study tasks are performed: ■ Life and Valuation Estimates ■ Fund Status ■ Funding Plan

Terms and Definitions

CASH FLOW METHOD: A method of developing a reserve Funding Plan where contributions to the reserve

fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve Funding

Plans are tested against the anticipated schedule of reserve expenses until the desired Funding Goal is achieved.

COMPONENT: The individual line items in the Reserve Study developed or updated in the Physical Analysis.

These elements form the building blocks for the Reserve Study. Components typically are: 1) association

responsibility; 2) with limited Useful Life expectancies; 3) predictable Remaining Useful Life expectancies; 4)

above a minimum threshold cost; and 5) as required by local codes.

COMPONENT INVENTORY: The task of selecting and quantifying reserve Components. This task can be

accomplished through on-site visual observations, review of association design and organizational documents, a

review of established association precedents, and discussion with appropriate association representative(s) of

the Association or cooperative.

COMPONENT METHOD: A method of developing a reserve Funding Plan where the total contribution is

Revised 10/19/2017


PAGE 68 of 70

based on the sum of contributions for individual Components. See Cash Flow Method.

CONDITION ASSESSMENT: The task of evaluating the current condition of the Component based on

observed or reported characteristics.

CURRENT REPLACEMENT COST: See Replacement Cost.

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

would be a Surplus.

EFFECTIVE AGE: The difference between Useful Life and Remaining Useful Life. Not always equivalent to

chronological age since some Components age irregularly. Used primarily in computations.

FINANCIAL ANALYSIS: The portion of a Reserve Study where current status of the reserves (measured as

cash or Percent Funded) and a recommended reserve contribution rate (reserve Funding Plan) are derived, and

the projected reserve income and expense over time is presented. The Financial Analysis is one of the two parts

of a Reserve Study.

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

Balance.

FULLY FUNDED BALANCE (FFB): Total accrued depreciation, an indicator against which actual or

projected Reserve Balance can be compared. The Reserve Balance that is in direct proportion to the fraction of

life “used up” of the current repair or Replacement Cost. This number is calculated for each Component, then

added together for an association total. Two formulas can be utilized, depending on the provider’s sensitivity to

interest and inflation effects. Note: Both yield identical results when interest and inflation are equivalent.

FFB = Current Cost X Effective Age / Useful Life

or

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

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

Life) / (1 + Inflation Rate) ^ Remaining Life]

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

funding.

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

Funding Plan goals:

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

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

funded.

Revised 10/19/2017


PAGE 69 of 70

■ Statutory Funding: Establishing a reserve funding goal of setting aside the specific minimum amount of

reserves required by local statues.

■ Threshold Funding: Establishing a reserve funding goal of keeping the Reserve Balance above a

specified dollar or Percent Funded amount. Depending on the threshold, this may be more or less

conservative than fully funding.

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

from that fund.

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

LIFE AND VALUATION ESTIMATES: The task of estimating Useful Life, Remaining Useful Life, and

repair or Replacement Costs for the reserve Components.

PERCENT FUNDED: The ratio at a particular point of time (typically the beginning of the Fiscal Year) of the

actual or projected Reserve Balance to the Fully Funded Balance, expressed as a percentage.

PHYSICAL ANALYSIS: The portion of the Reserve Study where the Component Inventory, Condition

Assessment, and Life and Valuation Estimate tasks are performed. This represents one of the two parts of the

Reserve Study.

REMAINING USEFUL LIFE (RUL): Also referred to as “Remaining Life” (RL). The estimated time, in years,

that a reserve Component can be expected to continue to serve its intended function. Projects anticipated to

occur in the initial year have “zero” Remaining Useful Life.

REPLACEMENT COST: The cost of replacing, repairing, or restoring a reserve Component to its original

functional condition. The Current Replacement Cost would be the cost to replace, repair, or restore the

Component during that particular year.

RESERVE BALANCE: Actual or projected funds as of a particular point in time that the Association has

identified for use to defray the future repair or replacement of those major Components which the Association is

obligated to maintain. Also known as reserves, reserve accounts, or cash reserves. Based upon information

provided and not audited.

RESERVE PROVIDER: An individual that prepares Reserve Studies.

RESERVE STUDY: A budget planning tool which identifies the current status of the reserve fund and a stable

and equitable Funding Plan to offset the anticipated future major common area expenditures. The Reserve Study

Revised 10/19/2017


PAGE 70 of 70

consists of two parts: the Physical Analysis and the Financial Analysis.

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

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

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

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

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

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

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

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

Revised 10/19/2017

CERES GLEANN HOMEOWNERS ASSOCIATION … · TABLE OF CONTENTS Ceres Gleann ... and Fannie Mae...

Documents

Transcript of CERES GLEANN HOMEOWNERS ASSOCIATION … · TABLE OF CONTENTS Ceres Gleann ... and Fannie Mae...