Medical Reserve Corps Presentation April 20, 2005 Dallas, Texas
Precision 20/20 Full Reserve Study · 2013. 2. 18. · Certification: This Precision 20/20 Full...
Transcript of Precision 20/20 Full Reserve Study · 2013. 2. 18. · Certification: This Precision 20/20 Full...
Precision 20/20Full Reserve Study
for
The Woods at ShagbarkCondominium Association
Gahanna, OhioFebruary 4, 2013
This Report contains intellectual property developed by Reserve Advisors, Inc. specific to this engagement and can not
be reproduced or distributed to those who conduct reserve studies without the written consent of Reserve Advisors, Inc.
See the Professional Service Conditions of the Proposal and this Report for details concerning the use of this Report.
TABLE OF CONTENTS
Page 4.34HVAC Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.34Clubhouse Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.33Signage, Entrance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.33Retaining Walls, Timber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.32Retaining Walls, Masonry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.29Pond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.29Mailbox Stations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.28Landscape, Partial Replacements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.28Guard Rails, Wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.28Gates and Operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.27Fences, Vinyl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.26Concrete Stoops and Porches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.26Concrete Sidewalks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.25Concrete Curbs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.25Concrete, Flatwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.24Catch Basins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.24Asphalt Pavement, Repaving, Walking Paths . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.21Asphalt Pavement, Repaving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.19Asphalt Pavement, Crack Repair, Patch and Seal Coat . . . . . . . . . . . . . . . . . .
Page 4.19Property Site Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.16Walls, Vinyl Siding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.13Walls, Masonry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.12Walls, Cement Parge Coat, Paint Finishes and Partial Replacements . . . . . . .
Page 4.11Walls, Trim, Paint Finishes and Partial Replacements . . . . . . . . . . . . . . . . . . .
Page 4.11Shutters, Vinyl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.3Roofs, Asphalt Shingles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.2Gutters and Downspouts, Aluminum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.1Balconies and Decks, Wood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.1Exterior Building Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.1CONDITION ASSESSMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 3.1RESERVE EXPENDITURES and FUNDING PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 2.2IDENTIFICATION OF PROPERTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 2.1RESERVE STUDY REPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 1.1RESERVE STUDY EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 10.1CREDENTIALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 9.2PROFESSIONAL SERVICE CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 9.1ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 9.1CONDITIONS OF OUR SERVICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 8.1DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 7.1METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 6.1SUPPLEMENTARY INFORMATION FOR FINANCIAL STATEMENTS . . . . . . . . . . . . .
Page 5.1PHOTOGRAPHS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.40Reserve Study Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.392013 Miscellaneous Reserve Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.39Mechanical Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.38Furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.38Fence, Metal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.37Concrete Deck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.37Pool Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.37Windows and Doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.36Walls, Wood Siding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.36Roof, Asphalt Shingles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.35Rest Rooms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Page 4.34Interior Renovations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RESERVE STUDY EXECUTIVE SUMMARY
Client: The Woods at Shagbark Condominium Association (Shagbark)Location: Gahanna, OhioReference: 060436
Property Basics: The Woods at Shagbark Condominium Association is a townhome style developmentof 118 units in 37 residential buildings. The exteriors of the buildings comprise masonry walls, vinylsiding, wood soffits and fascia, and asphalt shingle roofs. The buildings were built from 2001 to 2006.The development contains gated entrances, a clubhouse and a pool.
Reserve Components Identified: 39 Reserve Components.
Inspection Date: February 4, 2013. Reserve Advisors conducted the original Reserve Study in 2006.
Funding Goal: The Funding Goal of this Reserve Study is to maintain reserves above an adequate, notexcessive threshold during one or more years of significant expenditures. Our recommended FundingPlan recognizes this threshold funding year in 2024 and 2043 due to replacement of the roofs and vinylsiding.
Cash Flow Method: We use the Cash Flow Method to compute the Reserve Funding Plan. This methodoffsets future variable Reserve Expenditures with existing and future stable levels of reserve funding.Our application of this method also considers:
current and future local costs of replacement 1.2% annual rate of return on invested reserves 2.0% future Inflation Rate for estimating Future Replacement Costs
Sources for Local Costs of Replacement: Our proprietary database, historical costs and publishedsources, i.e., R.S. Means, Incorporated.
Cash Status of Reserve Fund: $310,408 as of December 31, 2012.
Recommended Reserve Funding: The Association budgeted $144,330 for Reserve Contributions in2013. We recommend that the Association budget annual phased increases in Reserve Contributions ofapproximately $24,700 from 2014 through 2018. Afterwards, the Association should budget gradualannual increases in reserve funding, that in part consider the effects of inflation. The recommended year2014 Reserve Contribution of $169,000 is $24,670 more than the prior budgeted amount and representsabout a seven percent (6.6%) adjustment in the 2013 total Operating Budget of $374,104. This initialadjustment of $24,670 is equivalent to an average monthly increase of $17.42 per unit owner.
The result is an overall increase since our last Reserve Study dated November 9, 2006. This increase isrelated primarily to the following reasons:
Lower than previously recommended Reserve Balance and Reserve Contributions More frequent asphalt pavement sealant coat applications than previously recommended Significant expansion of the scope of work for the line item related to landscaping Addition of ongoing expenditures related to concrete sidewalk leveling Lower than previously anticipated projection of rates of return on reserve investments
Page 1.1 - Executive Summary
Certification: This Precision 20/20 Full Reserve Study exceeds the Community Associations Institute(CAI) and Association of Professional Reserve Analysts (APRA) standards fulfilling the requirements ofa “Level I Full Reserve Study.”
Shagbark Recommended Reserve Funding Table and Graph
YearReserve
Contributions ($)Reserve
Balances ($) YearReserve
Contributions ($)Reserve
Balances ($) YearReserve
Contributions ($)Reserve
Balances ($)
2014 169,000 383,160 2024 301,700 97,180 2034 367,800 1,552,955
2015 193,700 448,645 2025 307,700 213,274 2035 375,200 1,524,269
2016 218,400 499,453 2026 313,900 317,686 2036 382,700 1,476,975
2017 243,100 542,871 2027 320,200 490,119 2037 390,400 1,733,820
2018 267,800 581,023 2028 326,600 659,439 2038 398,200 1,920,207
2019 273,200 673,048 2029 333,100 877,275 2039 406,200 1,569,852
2020 278,700 515,622 2030 339,800 1,009,639 2040 414,300 1,197,696
2021 284,300 413,816 2031 346,600 1,240,202 2041 422,600 840,162
2022 290,000 342,365 2032 353,500 1,366,772 2042 431,100 487,330
2023 295,800 267,669 2033 360,600 1,557,524 2043 439,700 149,005
Respectfully submitted on February 18, 2013 byRESERVE ADVISORS, INC.
Alan M. Ebert, PRA1, RS2, Associate Director of Quality AssuranceVisual Inspection and Report by: John C. Decker, PRA, RS
Page 1.2 - Executive Summary
2013
2016
2019
2022
2025
2028
2031
2034
2037
2040
2043
Years
(1,000)
(500)
0
500
1,000
1,500
2,000
2,500
0
Th
ou
sa
nd
s$
Reserve Expenditures
Recommended Reserve ContributionsYear-End Reserve Balances
2 RS (Reserve Specialist) is the reserve provider professional designation of the Community Associations Institute(CAI) representing America's more than 300,000 condominium, cooperative and homeowners associations.
1 PRA (Professional Reserve Analyst) is the professional designation of the Association of Professional ReserveAnalysts. Learn more about APRA at http://www.apra-usa.com.
RESERVE STUDY REPORT
At the direction of the Board that recognizes the need for proper reserve planning, we have
conducted a Precision 20/20 Full Reserve Study of
The Woods at Shagbark Condominium Association
Gahanna, Ohio
and submit our findings in this report. The effective date of this study is the date of our visual,
noninvasive inspection, February 4, 2013. Reserve Advisors conducted the original Reserve
Study in 2006.
We present our findings and recommendations in the following report sections and
spreadsheets:
Identification of Property - Segregates all property into several areas of responsibility forrepair or replacement
Reserve Expenditures - Identifies reserve components and related quantities, useful lives,remaining useful lives and future reserve expenditures during the next 30 years
Reserve Funding Plan - Presents the recommended Reserve Contributions and year-endReserve Balances for the next 30 years
Condition Assessment - Describes the reserve components, documents conditions withphotographs, describes our recommendations for repairs or replacement, and includesdetailed solutions and procedures for replacements for the benefit of current and futureboard members
Supplementary Information for Financial Statements - Contains significant unauditedinformation about existing reserves from the Reserve Components and Expenditures, andestimated current and future replacement costs
Methodology - Lists the national standards, methods and procedures used, financialinformation relied upon for the Financial Analysis of the Reserve Study
Definitions - Contains definitions of terms used in the Reserve Study, consistent withnational standards
Conditions of our Service - Describes Assumptions and Professional Service Conditions
Credentials
Resources
Page 2.1 - Report
IDENTIFICATION OF PROPERTY
The Woods at Shagbark Condominium Association is a townhome style development of
118 units in 37 residential buildings. The exteriors of the buildings comprise masonry walls,
vinyl siding, wood soffits and fascia, and asphalt shingle roofs. The buildings were built from
2001 to 2006. The development contains gated entrances, a clubhouse and a pool. We identify
39 major reserve components that are likely to require capital repair or replacement during the
next 30 years.
Our investigation includes Reserve Components or property elements as set forth in your
Declaration. Our analysis begins by segregating the property elements into several areas of
responsibility for repair and replacement. Our process of identification helps assure that future
boards and the management team understand whether reserves, the operating budget or
homeowners fund certain replacements and assists in preparation of the annual budget. We
derive these segregated classes of property from our review of the information provided by the
Association and through conversations with Representatives of the Association. These classes of
property include:
Reserve Components Long-Lived Property Elements Operating Budget Funded Repairs and Replacements Property Maintained by Homeowners
We advise that the Board conduct an annual review of these classes of property to
confirm its policy concerning the manner of funding, i.e., from reserves or the operating budget.
Page 2.2 - Report
The Reserve Study identifies Reserve Components as set forth in your Declaration or
which were identified as part of your request for proposed services. Reserve Components are
defined by CAI as property elements with:
Shagbark responsibility Limited useful life expectancies Predictable remaining useful life expectancies Replacement cost above a minimum threshold
Long-Lived Property Elements do not have predictable Remaining Useful Lives. The
operating budget should fund infrequent repairs. Funding untimely or unexpected replacements
from reserves will necessitate increases to Reserve Contributions. Periodic updates of this
Reserve Study will help determine the merits of adjusting the Reserve Funding Plan. We identify
the following Long-Lived Property Elements as excluded from reserve funding at this time.
Bridges, Concrete Structures Foundations Pipes, Subsurface Utilities Pool, Steel Structure Structural Frames
The operating budget provides money for the repair and replacement of certain Reserve
Components. Operating Budget Funded Repairs and Replacements relate to:
General Maintenance to the Common Elements Expenditures less than $3,000 (These relatively minor expenditures have a
limited effect on the recommended Reserve Contributions.) Chimney Caps Clubhouse, Domestic Water Heater Clubhouse, Exterior Paint Applications Creek Maintenance Irrigation System, Entrance Landscape, Maintenance Mailbox Station Shelter Paint Finishes, Touch Up Pond, Shoreline Maintenance and Erosion Control Pool Cover
Page 2.3 - Report
Pool Fence, Paint Applications Pool Structure, Paint Finishes and Repairs Retaining Walls, Less than three feet-tall Signage, Street Other Repairs normally funded through the Operating Budget
Property Maintained by Homeowners relates to unit:
Balconies and Decks, Decking Stain Applications and Maintenance Concrete Driveway Aprons Electrical Systems Garage Doors Heating, Ventilating and Air Conditioning (HVAC) Units Interiors Light Fixtures, Exterior Building Patios Pipes, Interior Building, Water and Sewer Windows and Doors
Page 2.4 - Report
RESERVE EXPENDITURES and FUNDING PLAN
The tables following this introduction present:
Reserve Expenditures
Line item numbers
Total quantities replaced during the next 30 years
Quantities replaced per phase (in a single year)
Reserve component inventory
Estimated first year of replacement
Life analysis showing
- useful life - remaining useful life
Unit cost of replacement
2013 local cost of replacement
Total future costs of replacement anticipated during the next 30 years
Schedule of estimated future costs for each reserve component including inflation
Reserve Funding Plan
Reserves at the beginning of each year
Total recommended reserve contributions
Estimated interest earned from invested reserves
Anticipated expenditures by year
Anticipated reserves at year end
Page 3.1 - Expenditures and Funding
Reserve Advisors, Inc.
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Expenditures and Funding - Page 3.2 Printed 02/18/2013
RESERVE EXPENDITURES for Explanatory Notes:
The Woods at Shagbark 1) 2.0% is the estimated future Inflation Rate for estimating Future Replacement Costs.
Condominium Association 2) FY 2013 is Fiscal Year beginning January 1 and ending December 31.Gahanna, Ohio
Quantities: Estimated Life Analysis, 2013 Cost of Total Future (See Notes 1 & 2)Line 30-Year Per 1st Year of Years Unit Replacement Costs of RUL = 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Item Total Phase Units Reserve Component Inventory Replacement Useful Remaining Cost, $ per Phase, $ Replacement, $ FY2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
----------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Exterior Building Elements
1.120 4,600 2,300 Square Feet Balconies and Decks, Wood, Phased 2024 15 to 25 11 23.00 52,900 132,865 65,775 67,090
1.240 37,200 3,720 Linear Feet Gutters and Downspouts, Aluminum, Phased 2020 15 to 20 7 9.00 33,480 491,698 38,458 39,227 40,012 40,812 41,628
1.279 6 1 Allowance Roofs, Asphalt Shingles, Capital Repairs, Near Term 2013 N/A 0 9,000.00 9,000 56,774 9,000 9,180 9,364 9,551 9,742 9,937
1.280 5,100 510 Squares Roofs, Asphalt Shingles, Phased 2020 15 to 20 7 350.00 178,500 2,621,511 205,040 209,141 213,324 217,591 221,942
1.560 176 88 Pairs Shutters, Vinyl 2020 to 20 7 90.00 7,920 22,351 9,098
1.609 31 1 Allowance Walls, Trim, Paint Finishes and Partial Replacements, Phased 2013 4 to 6 0 46,320.00 46,320 1,963,014 46,320 47,246 48,191 49,155 50,138 51,141 52,164 53,207 54,271 55,357 56,464 57,593 58,745 59,920 61,118 62,341 63,587 64,859 66,156 67,479 68,829
1.700 5 1 Allowance Walls, Cement Parge Coat, Paint Finishes and Partial Replacements 2015 4 to 6 2 25,000.00 25,000 167,272 26,010 29,291 32,987 37,149
1.820 167,000 33,400 Square Feet Walls, Masonry, Inspections, Repairs and Partial Sealer Applications 2014 4 to 6 1 1.25 41,750 273,868 42,585 47,958 54,008 60,822
1.920 129,000 25,800 Square Feet Walls, Vinyl Siding, Phased 2039 to 40 26 5.00 129,000 1,123,401
Property Site Elements
4.020 232,500 9,300 Square Yards Asphalt Pavement, Crack Repair, Patch and Seal Coat, Phased 2013 3 to 5 0 2.40 22,320 768,617 22,500 22,766 23,222 23,686 25,639 26,151 26,674 27,208 27,752 28,307 28,873 29,451 30,040 30,641 31,253 31,878 32,516 33,166
4.040 18,600 6,200 Square Yards Asphalt Pavement, Mill and Overlay, Phased 2017 15 to 20 4 13.00 80,600 267,002 87,244 88,989 90,769
4.045 18,600 6,200 Square Yards Asphalt Pavement, Total Replacement, Phased 2034 15 to 20 21 27.00 167,400 776,493
4.080 800 400 Square Yards Asphalt Pavement, Total Replacement, Walking Paths 2017 10 to 15 4 23.00 9,200 23,361 9,958 13,403
4.100 48 8 Each Catch Basins, Inspections and Capital Repairs, Phased 2017 15 to 20 4 725.00 5,800 46,118 6,278 6,404 6,532
4.110 3,840 640 Linear Feet Concrete Curbs, Partial 2017 to 65 4 20.00 12,800 101,776 13,855 14,132 14,415
4.139 31 1 Allowance Concrete Sidewalks, Leveling, Partial 2013 to 1 0 2,500.00 2,500 105,950 2,500 2,550 2,601 2,653 2,706 2,760 2,815 2,872 2,929 2,988 3,047 3,108 3,171 3,234 3,299 3,365 3,432 3,501 3,571 3,642 3,715
4.140 2,555 365 Square Feet Concrete Sidewalks, Partial Replacements 2016 to 65 3 11.00 4,015 38,302 4,261 4,612 4,992 5,404 5,849
4.170 2,450 350 Square Feet Concrete Stoops and Porches, Partial 2016 to 65 3 22.00 7,700 73,455 8,171 8,845 9,574 10,363 11,217
4.260 1,020 510 Linear Feet Fences, Vinyl 2024 15 to 20 11 28.00 14,280 43,114 17,755
4.320 12 4 Each Gate Operators (includes keypads) 2016 8 to 12 3 4,500.00 18,000 70,771 19,102 23,285
4.330 4 4 Each Gates, Metal 2026 to 20 13 3,500.00 14,000 18,110 18,110
4.401 320 320 Linear Feet Guard Rails, Bridges 2028 to 30 15 50.00 16,000 21,534 21,534
4.500 31 1 Allowance Landscape, Partial Replacements 2013 to 1 0 19,500.00 19,500 826,400 19,500 19,890 20,288 20,694 21,107 21,530 21,960 22,399 22,847 23,304 23,770 24,246 24,731 25,225 25,730 26,244 26,769 27,305 27,851 28,408 28,976
4.600 16 8 Each Mailbox Stations 2020 to 20 7 1,700.00 13,600 38,836 15,622
4.700 2 1 Each Pond, Aerator 2017 10 to 15 4 4,500.00 4,500 11,427 4,871 6,556
4.720 1,600 1,600 Square Yards Pond, Sediment Removal 2030 to 30 17 20.00 32,000 44,808 44,808
4.745 470 470 Square Feet Retaining Walls, Masonry 2035 to 35 22 40.00 18,800 29,064
4.760 930 930 Square Feet Retaining Walls, Timber (replace with masonry) 2018 15 to 20 5 35.00 32,550 35,938 35,938
4.800 2 1 Allowance Signage, Entrance, Renovation 2018 15 to 20 5 5,000.00 5,000 13,723 5,520
Reserve Advisors, Inc.
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Expenditures and Funding - Page 3.2 Printed 02/18/2013
RESERVE EXPENDITURES for Explanatory Notes:
The Woods at Shagbark 1) 2.0% is the estimated future Inflation Rate for estimating Future Replacement Costs.
Condominium Association 2) FY 2013 is Fiscal Year beginning January 1 and ending December 31.Gahanna, Ohio
Quantities: Estimated Life Analysis, 2013 Cost of Total Future (See Notes 1 & 2)Line 30-Year Per 1st Year of Years Unit Replacement Costs of RUL = 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Item Total Phase Units Reserve Component Inventory Replacement Useful Remaining Cost, $ per Phase, $ Replacement, $ FY2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
----------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Clubhouse Elements
5.450 2 1 Allowance HVAC Equipment, Split System 2020 12 to 18 7 5,000.00 5,000 13,946 5,743
5.500 2 1 Allowance Interior Renovations 2016 10 to 15 3 26,000.00 26,000 63,997 27,591 36,406
5.551 2 2 Each Rest Rooms, Renovation 2025 to 25 12 4,500.00 9,000 11,414 11,414
5.600 38 19 Squares Roof, Asphalt Shingles 2021 15 to 20 8 350.00 6,650 19,143 7,792
5.701 1,300 1,300 Square Feet Walls, Wood Siding 2033 to 35 20 8.00 10,400 15,454 15,454
5.800 670 670 Square Feet Windows and Doors 2041 to 40 28 35.00 23,450 40,827
Pool Elements
6.200 5,400 1,800 Square Feet Concrete Deck, Inspections, Partial Replacements and Repairs 2020 8 to 12 7 1.80 3,240 13,789 3,722 4,537
6.400 180 180 Linear Feet Fence, Metal 2032 to 40 19 48.00 8,640 12,587 12,587
6.500 5 1 Allowance Furniture, Phased 2016 to 12 3 3,600.00 3,600 24,568 3,820 4,302 4,845
6.600 4 1 Allowance Mechanical Equipment, Phased 2016 to 15 3 4,300.00 4,300 22,742 4,563 5,242 6,021
1 1 Allowance 2013 Miscellaneous Reserve Expenditures 2013 N/A 0 4,900.00 4,900 4,900 4,900
1 Allowance Reserve Study Update with Site Visit 2015 2 2 3,500.00 3,500 3,500 3,500------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Anticipated Expenditures, By Year $10,454,420 104,720 144,217 133,176 173,247 205,899 236,351 188,655 443,215 391,649 365,961 374,134 474,365 193,458 212,655 152,585 164,136 124,429 218,690 129,456 242,479 187,289
Reserve Advisors, Inc.
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Expenditures and Funding - Page 3.3 Printed 02/18/2013
RESERVE EXPENDITURES for
The Woods at ShagbarkCondominium Association
Gahanna, Ohio
Line 21 22 23 24 25 26 27 28 29 30Item Reserve Component Inventory 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
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Exterior Building Elements
1.120 Balconies and Decks, Wood, Phased
1.240 Gutters and Downspouts, Aluminum, Phased 56,026 57,147 58,289 59,455 60,644
1.279 Roofs, Asphalt Shingles, Capital Repairs, Near Term
1.280 Roofs, Asphalt Shingles, Phased 298,705 304,679 310,773 316,988 323,328
1.560 Shutters, Vinyl 13,253
1.609 Walls, Trim, Paint Finishes and Partial Replacements, Phased 70,206 71,610 73,042 74,503 75,993 77,513 79,063 80,644 82,257 83,902
1.700 Walls, Cement Parge Coat, Paint Finishes and Partial Replacements 41,835
1.820 Walls, Masonry, Inspections, Repairs and Partial Sealer Applications 68,495
1.920 Walls, Vinyl Siding, Phased 215,871 220,188 224,592 229,084 233,666
Property Site Elements
4.020 Asphalt Pavement, Crack Repair, Patch and Seal Coat, Phased 35,900 36,618 37,351 38,098 38,860 39,637 40,430
4.040 Asphalt Pavement, Mill and Overlay, Phased
4.045 Asphalt Pavement, Total Replacement, Phased 253,723 258,797 263,973
4.080 Asphalt Pavement, Total Replacement, Walking Paths
4.100 Catch Basins, Inspections and Capital Repairs, Phased 8,791 8,967 9,146
4.110 Concrete Curbs, Partial 19,401 19,789 20,184
4.139 Concrete Sidewalks, Leveling, Partial 3,789 3,865 3,942 4,021 4,102 4,184 4,267 4,353 4,440 4,528
4.140 Concrete Sidewalks, Partial Replacements 6,331 6,853
4.170 Concrete Stoops and Porches, Partial 12,142 13,143
4.260 Fences, Vinyl 25,359
4.320 Gate Operators (includes keypads) 28,384
4.330 Gates, Metal
4.401 Guard Rails, Bridges
4.500 Landscape, Partial Replacements 29,555 30,147 30,750 31,365 31,992 32,632 33,284 33,950 34,629 35,322
4.600 Mailbox Stations 23,214
4.700 Pond, Aerator
4.720 Pond, Sediment Removal
4.745 Retaining Walls, Masonry 29,064
4.760 Retaining Walls, Timber (replace with masonry)
4.800 Signage, Entrance, Renovation 8,203
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Expenditures and Funding - Page 3.3 Printed 02/18/2013
RESERVE EXPENDITURES for
The Woods at ShagbarkCondominium Association
Gahanna, Ohio
Line 21 22 23 24 25 26 27 28 29 30Item Reserve Component Inventory 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
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Clubhouse Elements
5.450 HVAC Equipment, Split System 8,203
5.500 Interior Renovations
5.551 Rest Rooms, Renovation
5.600 Roof, Asphalt Shingles 11,351
5.701 Walls, Wood Siding
5.800 Windows and Doors 40,827
Pool Elements
6.200 Concrete Deck, Inspections, Partial Replacements and Repairs 5,530
6.400 Fence, Metal
6.500 Furniture, Phased 5,456 6,145
6.600 Mechanical Equipment, Phased 6,916
2013 Miscellaneous Reserve Expenditures
Reserve Study Update with Site Visit------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Anticipated Expenditures, By Year 390,921 422,239 447,894 152,705 233,606 777,370 802,962 792,288 791,849 781,820
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Expenditures and Funding - Page 3.4 Printed 02/18/2013
RESERVE FUNDING PLAN
CASH FLOW ANALYSISThe Woods at Shagbark
Condominium Association Individual Reserve Budgets & Cash Flows for the Next 30 Years
Gahanna, Ohio FY2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028Reserves at Beginning of Year (Note 1) 310,408 353,981 383,160 448,645 499,453 542,871 581,023 673,048 515,622 413,816 342,365 267,669 97,180 213,274 317,686 490,119Total Recommended Reserve Contributions (Note 2) 144,330 169,000 193,700 218,400 243,100 267,800 273,200 278,700 284,300 290,000 295,800 301,700 307,700 313,900 320,200 326,600
Plus Estimated Interest Earned, During Year (Note 3) 3,963 4,396 4,961 5,655 6,217 6,703 7,480 7,089 5,543 4,510 3,638 2,176 1,852 3,167 4,818 6,856Less Anticipated Expenditures, By Year (104,720) (144,217) (133,176) (173,247) (205,899) (236,351) (188,655) (443,215) (391,649) (365,961) (374,134) (474,365) (193,458) (212,655) (152,585) (164,136)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Anticipated Reserves at Year End $353,981 383,160 448,645 499,453 542,871 581,023 673,048 515,622 413,816 342,365 267,669 97,180 213,274 317,686 490,119 659,439
(NOTE 5)
(continued) Individual Reserve Budgets & Cash Flows for the Next 30 Years, Continued2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
Reserves at Beginning of Year 659,439 877,275 1,009,639 1,240,202 1,366,772 1,557,524 1,552,955 1,524,269 1,476,975 1,733,820 1,920,207 1,569,852 1,197,696 840,162 487,330Total Recommended Reserve Contributions 333,100 339,800 346,600 353,500 360,600 367,800 375,200 382,700 390,400 398,200 406,200 414,300 422,600 431,100 439,700
Plus Estimated Interest Earned, During Year 9,165 11,254 13,419 15,549 17,441 18,552 18,353 17,900 19,150 21,793 20,815 16,506 12,154 7,917 3,795Less Anticipated Expenditures, By Year (124,429) (218,690) (129,456) (242,479) (187,289) (390,921) (422,239) (447,894) (152,705) (233,606) (777,370) (802,962) (792,288) (791,849) (781,820)
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Anticipated Reserves at Year End 877,275 1,009,639 1,240,202 1,366,772 1,557,524 1,552,955 1,524,269 1,476,975 1,733,820 1,920,207 1,569,852 1,197,696 840,162 487,330 149,005
(NOTE 4)(NOTE 5)
Explanatory Notes:1) Year 2013 reserves are as of December 31, 2012; FY 2013 starts January 1 and ends December 31.2) Reserve Contributions for 2013 are budgeted; 2014 is the first year of recommended contributions.3) 1.2% is the estimated annual rate of return on invested reserves.4) Accumulated year 2043 ending reserves consider the age, size, overall condition and complexity of the property.5) Threshold Funding Year (reserve balance at critical point).
CONDITION ASSESSMENT
The Condition Assessment of this Precision 20/20 Full Reserve Study includes
Enhanced Solutions and Procedures (ESP) for select significant components. These narratives
describe the Reserve Components, document specific problems and conditions, and may include
detailed solutions and procedures for necessary capital repairs and replacements for the benefit of
current and future board members. We advise the Board use this information to help define the
scope and procedures for repair or replacement when soliciting bids or proposals from
contractors. However, the Report in whole or part is not and should not be used as a design
specification or design engineering service.
Exterior Building Elements
Balconies and Decks, Wood - The Association maintains 42 wood balconies and decks
which comprise a total of 4,600 square feet. The balconies and decks are original and in good
overall condition. Balcony construction includes the following:
Wood deck boards. Wood railings with vertical pickets. Wood column supported frames. Wood frames with metal joist hangers Missing cross bracing that could result in excessive balcony movement
The homeowners are responsible for stain applications and maintenance of the balconies
and decks. Wood balcony materials treated with a protective finish have useful lives of 15- to
25-years with proper maintenance. Proper maintenance, funded by the homeowners, should
include the following activities funded through the operating budget:
Annual inspections to identify and correct any unsafe conditions Securing of loose fasteners and replacement of deteriorated fasteners Replacement of deteriorated wood components Power washing with an algaecide and application of a sealer/stain
Page 4.1 - Condition Assessment
The rates and types of deterioration are not uniform due to the nature of wood.
Replacement is normally an ongoing process which eventually leads to a complete replacement
for economic or aesthetic reasons. We recommend the Association anticipate a phased
replacement of the balcony and deck elements noted above beginning by 2024 and concluding by
2025. We depict this information on Line Item 1.120 of Reserve Expenditures.
Gutters and Downspouts, Aluminum - Approximately 18,600 linear feet of gutters and
downspouts drain storm water from the roofs of Shagbark. These gutters and downspouts are
original and in good to fair overall condition. The gutters and downspouts exhibit stains and
isolated leaks. Page 5.5 of Photograph depicts a leak. We include the following solutions and
procedures for gutter and downspout maintenance and replacements for present and future board
members.
The most common and economical type of gutter profile is the metal roll-formed
seamless K-style. The five-inch wide K-style gutter is standard but six-inch wide K-style gutters
should be used on larger roofs. The size of the gutter is determined by the roof's watershed area,
a roof pitch factor and the rainfall intensity number of the Association's region. We recommend
sloping gutters 1/16 inch per linear foot and providing fasteners a maximum of every three feet.
Downspouts can drain 100 square feet of roof area per one square inch of downspout
cross sectional area. Downspouts should be of the same material as the gutters. We recommend
the use of downspout extensions and splash blocks at the downspout discharge to direct storm
water away from the foundations. Downspouts that discharge directly onto roofs cause
Page 4.2 - Condition Assessment
premature deterioration of the roofs due to the high concentration of storm water. We
recommend either routing these downspouts directly to the ground, connecting the downspouts to
the gutters of the lower roof or distributing the storm water discharge over a large area.
Maintenance of the gutters and downspouts should include semiannual inspections,
repairs at seams and fastening points, verification that the downspouts discharge away from
foundations and cleaning. More frequent maintenance may be required for gutters and
downspouts in areas of concentrated landscape growth. The Association should fund these
expenses through the operating budget. A lack of maintenance resulting in misdirected storm
water will result in deterioration of soffits, fascia, siding, foundations, and the gutters and
downspouts themselves.
The useful life of gutters and downspouts coincides with that of the asphalt shingle roofs.
Therefore, we recommend the Association budget for the phased replacement of the gutters and
downspouts in conjunction with the phased roof replacements beginning by 2020 and concluding
by 2024. This will result in the most economical unit price and minimize the possibility of
damage to other roof components as compared to separate replacements. A subsequent phased
replacement is likely beginning by 2039 and concluding by 2043. We depict this information on
Line Item 1.240 of Reserve Expenditures.
Roofs, Asphalt Shingles - Approximately 2,550 squares1 of asphalt shingles comprise
the roofs of Shagbark. The roofs are original. The asphalt shingles appear good with minor
Page 4.3 - Condition Assessment
1We quantify the roof area in squares where one square is equal to 100 square feet of surface area.
algae stains evident. However, representatives of the Association inform us of a history of leaks
primarily at the lower, flatter sloped portions. We understand that many of these locations lack
or have inadequate ice and water shield. We observe significant ice dams at these locations.
Pages 5.5 through 5.7 of Photographs depict the conditions of the roofs. The existing roof
assembly comprises the following:
Dimensional shingles Boston style ridge caps Soffit vents and ridge vents Lack metal drip edges
The useful life of asphalt shingle roofs in Gahanna is from 15- to 20-years. We include
the following solutions and procedures pertaining to the components of an asphalt shingle roof
system, times of replacement, recommended method of replacement, and coordination of other
related work for the benefit of present and future board members.
Insulation and ventilation are two major components of a sloped roof system. Together,
proper insulation and ventilation help to control attic moisture and maintain an energy efficient
building. Both insulation and ventilation prevent moisture buildup which can cause wood rot,
mold and mildew growth, warp sheathing, deteriorate shingles, and eventually damage building
interiors. Sufficient insulation helps to minimize the quantity of moisture that enters the attic
spaces and adequate ventilation helps to remove any moisture that enters the attic spaces. These
two roof system components also help to reduce the amount of energy that is required to heat and
cool a building. Proper attic insulation minimizes heat gain and heat loss between the residential
living spaces and attic spaces. This reduces energy consumption year-round. Proper attic
ventilation removes excessive heat from attic spaces that can radiate into residential living spaces
Page 4.4 - Condition Assessment
and cause air conditioners to work harder. Properly installed attic insulation and ventilation
work together to maximize the useful life of sloped roof systems.
In addition to moisture control and energy conservation, proper attic insulation and
ventilation are essential components to prevent the formation of ice dams. Ice dams occur when
warm air accumulates at the peak of an attic while the roof eaves remain cold. Warm air from
the attic melts the snow at the ridge of the roof and the water runs down the slope of the roof. At
the cold roof eaves, the water refreezes and forms a buildup of snow and ice. This buildup often
traps water that can prematurely deteriorate asphalt shingles and ultimately seep under the
shingles and cause water damage to the roof deck and building interiors. Proper insulation
minimizes the amount of heat that enters attic spaces in the winter and adequate ventilation helps
to remove any heat that enters the attic spaces. Together, these components prevent ice dams
with a cold roof deck that melts snow and ice evenly.
The Association should periodically ensure that the vents are clear of debris and are not
blocked from above by attic insulation. If the soffit vents are blocked from above, the
Association should install polystyrene vent spaces or baffles between the roof joists at these
locations to ensure proper ventilation. Shagbark should fund this ongoing maintenance through
the operating budget.
Certain characteristics of condition govern the times of replacement. Replacement of an
asphalt shingle roof becomes necessary when there are multiple or recurring leaks and when the
shingles begin to cup, curl and lift. These conditions are indications that the asphalt shingle roof
is near the end of its useful life. Even if the shingles are largely watertight, the infiltration of
Page 4.5 - Condition Assessment
water in one area can lead to permanent damage to the underlying roof sheathing. This type of
deterioration requires replacement of saturated sections of sheathing and greatly increases the
cost of roof replacement. Roof leaks may occur from interrelated roof system components, i.e.,
flashings. Therefore, the warranty period, if any, on the asphalt shingles, may exceed the useful
life of the roof system.
Warranties are an indication of product quality and are not a product guarantee. Asphalt
shingle product warranties vary from 20-to 50-years and beyond. However, the scope is usually
limited to only the material cost of the shingles as caused by manufacturing defects. Warranties
may cover defects such as thermal splitting, granule loss, cupping, and curling. Labor cost is
rarely included in the remedy so if roof materials fail, the labor to tear off and install new
shingles is extra. Other limitations of warranties are exclusions for "incidental and
consequential" damages resulting from age, hurricanes, hail storms, ice dams, severe winds,
tornadoes, earthquakes, etc. There are some warranties which offer no dollar limit for
replacement at an additional cost (effectively an insurance policy) but again these warranties also
have limits and may not cover all damages other than a product defect. We recommend a review
of the manufacturers’ warranties as part of the evaluation of competing proposals to replace a
roof system. This evaluation should identify the current costs of remedy if the roof were to fail in
the near term future. A comparison of the costs of remedy to the total replacement cost will
assist in judging the merits of the warranties.
Our estimate of remaining useful life considers this possibility and the Association should
anticipate the need for capital repairs to the shingles and other roof system components to
Page 4.6 - Condition Assessment
achieve or maximize the remaining useful life of the roofs. The Association should fund ongoing
roof repairs as normal maintenance from the operating budget.
Contractors use one of two methods of replacement for sloped roofs, either an
overlayment or a tear-off. Overlayment is the application of new shingles over an existing roof.
Although this method is initially more economical, the following disadvantages exist for this
type of replacement:
1. Overlaid shingles hide condition defects of the roof system and do not allow forreplacement of critical flashings, underlayments and ventilation.
2. Additional layers of shingles absorb and store more heat resulting in prematuredeterioration of the new shingles and continued deterioration of the underlyingshingles and other roof system components.
3. New shingles installed over deteriorated shingles may result in an unevenappearance.
The above disadvantages result in a shorter useful life of 10- to 15-years for overlaid
roofs. This shortened useful life and the inevitable eventual replacement of both shingle layers
will actually result in increased long-term replacement costs. The costs of an eventual total
replacement are deferred onto future homeowners thereby conflicting with the purpose of a
reserve study to ensure that homeowners pay their “fair share” of the weathering and aging of this
commonly owned property. Therefore, we recommend only the tear-off method of replacement.
The advantages of the tear-off method include the correction of hidden or latent defects and
extend the useful life of the new roof.
The tear-off method of replacement includes removal of the existing shingles, flashings if
required and underlayments. The contractor should then inspect the roof sheathing for areas of
water damage and partially replace the sheathing as needed. Once the roof sheathing is repaired,
Page 4.7 - Condition Assessment
the contractor can begin installation of the new underlayments, flashings and shingles. The
following cross-sectional schematic illustrates an asphalt shingle roof system.
The two types of underlayment most often used in an asphalt shingle roof system are ice
and water shield membrane, and organic felt paper of varying weights depending on local
building codes. Both types of underlayment protect the roof sheathing from moisture damage
and wind-driven ice and snow. They have a low vapor resistance that impedes the accumulation
of moisture between the underlayment and the roof sheathing. Ice and water shield membrane is
thicker than organic paper and is used in areas that are subject to ice dams and standing water.
The contractor should install ice and water shield membranes (often a modified bitumen product)
at the outer 36 inches of the gutter and rake edge roof eaves, and in the roof valleys. Standard
Page 4.8 - Condition Assessment
15-pound organic felt paper should provide sufficient protection over the remaining portions of
the roof. Underlayments work in conjunction with flashings to form a watertight roof system.
The function of flashing is to provide a watertight junction between the roofing material
and the other parts of the structure and between roof sections. Flashing material is usually
galvanized metal, although some roofs use copper or synthetic rubber. The Association should
require the contractor to augment existing flashings or replace deteriorated flashings at the time
of roof replacement at the following locations:
Changes in the slope Valleys Roof intersections with a wall, vertical structure, roof penetration, i.e., vent stacks Rakes (sloped edges of the roof) and soffits (lower roof edges)
Another critical type of flashing is drip edge flashing. This important flashing sheds
water off the edges of the roofs. The drip edge flashing allows storm water to run off the roof
into the gutters without coming into contact with the underlayment and eave board. The special
profile of a metal drip edge also prevents or minimizes the possibility of rain water blowing back
under the shingles. The contractor should install this flashing at the gutter edge before the
installation of underlayment and at the rake edge after the installation of underlayment.
Asphalt shingles include both fiberglass shingles and organic mat shingles. Both shingle
types are made with asphalt. Fiberglass shingles use a fiberglass reinforcing mat while organic
shingles use a wood based cellulose fiber mat. Fiberglass shingles are thinner, lighter and carry a
better fire rating than organic shingles. Organic mat shingles are more durable and stay more
flexible in cold weather. The contractor should install the shingles atop the underlayment and in
conjunction with flashing. Based on a better fire rating, we suggest Shagbark use a standard
Page 4.9 - Condition Assessment
strip, fiberglass, Class A, minimum weight class of 210 pounds per square self-sealing shingle at
the time of replacement. The self-sealing strip affixes to the lower exposed edges of the shingles.
Heat from ambient weather and sunlight activates the shingle adhesive material and seals the two
adjacent courses of shingles together. Contractor proposals should specify the types of proposed
materials and types of proposed fasteners. The Association should require the use of nail
fasteners, not staples, at the time of replacement. Nail guns are acceptable. Staples are of lesser
quality and might not withstand wind forces as well as nails.
The Association should plan to coordinate the replacement of gutters and downspouts
with the adjacent roofs. This will result in the most economical unit price and minimize the
possibility of damage to other roof components as compared to separate replacements.
Management and the Board inform us that the Association budgeted $9,000 in 2013 to
repair leaks at approximately four locations including replacement of shingles and installation of
ice and water shield. Continued repairs of similar scope are likely until replacement of the roofs
occurs. We therefore recommend the Association continue to budget $9,000 plus inflation for
roof repairs beginning in 2014 and concluding by 2018.
Based on their age and condition, we recommend that Shagbark plan to replace the roofs
beginning by 2020 and concluding by 2024. A subsequent phased replacement is likely
beginning by 2039 and concluding by 2043. We note this information on Line Items 1.279 and
1.280 of Reserve Expenditures.
Page 4.10 - Condition Assessment
Shutters, Vinyl - The exteriors of the buildings contain 88 pairs of decorative vinyl
shutters. These shutters are original and in good overall condition. As vinyl shutters age, their
color fades and they become brittle, making them increasingly susceptible to damage from wind.
Shagbark should anticipate a useful life of up to 20 years for these exterior building components.
We recommend the Association budget for their replacement by 2020 and again by 2039. We
depict this information on Line Item 1.560 of Reserve Expenditures.
Walls, Trim, Paint Finishes and Partial Replacements - The buildings include paint
finish applications on the wood trim, soffits and fascia. Periodic application of a protective
finish of paint or stain is an essential maintenance activity to maintain the physical appearance
and integrity of these elements. The finish is in good to fair overall condition at various ages.
The Association continuously paints the buildings on an approximately six year cycle.
The Board is likely familiar with many of the requirements for the periodic application of
paint2 products. We include the following solutions and procedures as a summary of the
minimum requirements for a successful paint finish application for present and future board
members.
Correct and complete preparation of the surface before application of the paint finish
maximizes the useful life of the paint finish and surface. The contractor should remove all loose,
peeled or blistered paint before application of the new paint finish. The contractor should then
power wash the surface to remove all dirt or chalking of the prior paint finish.
Page 4.11 - Condition Assessment
2 The term paint is a generic reference to a specialized mixture of solid pigment in a liquid solution that results in aclear, opaque or solid color protective finish. Product types are too numerous to list but include latex, oil, acrylicand elastomeric based products.
Summarizing the minimum requirements of the proposed scope of work, all bids should
include the following:
1) Name of paint finish product2) The contractor will involve manufacturer representatives to ensure specifications and
warranty3) The contractor will apply the paint to clean and dry surfaces at the manufacturer's
recommended spreading rates4) The contractor will apply successive coats of the paint finish, with sufficient time
elapse between coats, as necessary to ensure uniform appearance 5) The contractor will replace deteriorated or damaged materials prior to the application
of the paint finish6) The contractor will replace deteriorated sealants or caulk prior to the application of the
paint finish
At the request of the Board, we include an annual allowance of $46,320 plus inflation for
paint applications beginning in 2013. The Board informs us that this allowance includes
significant partial wood replacements. The exact amount of material in need of replacement will
depend on the actual future conditions and desired appearance. We recommend replacement
wherever holes, cracks and deterioration impair the ability of the material to prevent water
infiltration. We depict this information on Line Item 1.609 of Reserve Expenditures.
Walls, Cement Parge Coat, Paint Finishes and Partial Replacements - The buildings
include approximately 5,000 square feet of cement parge coat atop block masonry along the
basement walls and along the patios and porches. The cement parge coat utilizes a protective
paint finish application. The Association has conducted paint finish to very isolated locations
and the overall condition of the paint finish is poor. We also note several locations of cracks in
the cement parge coat. Pages 5.8 and 5.9 of Photographs depict these conditions. Periodic
application of a protective finish of paint or stain is an essential maintenance activity to maintain
the physical appearance and integrity of these elements. The Association should follow the
Page 4.12 - Condition Assessment
recommendations in the previous section, "Walls, Trim, Paint Finishes and Partial
Replacements" for the proper preparation and application of paint.
The useful life of protective paint finishes in Gahanna is from four- to six-years. Based
on the condition of the paint finishes, we recommend the Association budget for the following
activities by 2015:
Paint finish applications Replacement of 500 square feet, or up to ten percent (10%), of the cement parge
coat
Shagbark should budget subsequent applications and associated replacements every six
years thereafter. We depict this information on Line Item 1.700 of Reserve Expenditures.
Walls, Masonry - Masonry comprises approximately 33,400 square feet of the exterior
walls. We note the following components and conditions of the masonry:
Efflorescence Masonry cracks Masonry spall Mortar cracks
These conditions are most severe adjacent to the garage doors as depicted on Page 5.10 of
Photographs. Page 5.11 of Photographs depicts the mortar cracks at the block masonry at the
patios, porches and stoops. We advise a complete inspection of the masonry, and partial
repointing with related masonry repairs every four- to six-years to forestall deterioration. We
elaborate on solutions and procedures necessary for the optimal maintenance of masonry walls in
the following discussion.
Page 4.13 - Condition Assessment
Masonry generally requires less maintenance than other types of exteriors. However,
masonry is not maintenance free. Masonry exteriors should last the life of the building with
proper maintenance. Shagbark should plan for the periodic inspection of the masonry to identify
and repair areas of deterioration. Common types of masonry deterioration include efflorescence,
spalling and cracking.
The primary cause of efflorescence, cracks and face spall is water infiltration, therefore
prevention of water infiltration is the principal concern for the maintenance of masonry
applications. Masonry walls normally shed storm water and condensate from behind the wall
through weep holes. However, trapped water within masonry walls can cause corrosion of metal
masonry ties, studs, structural members and potentially damage building interiors. The first sign
of water infiltration is usually a water stain. Eventually, water infiltration can lead to
deterioration of the masonry. If left unrepaired, water infiltration can lead to efflorescence,
cracks and face spall as described below.
Trapped water can also migrate through areas of cracked mortar joints or other points
within the cavity of a masonry wall. This moisture then typically migrates to the exterior face of
the masonry where it evaporates. As the moisture evaporates, it deposits soluble white salts
either on the surface as efflorescence or below the surface as subflorescence. Efflorescence mars
the appearance of the masonry, is typically harmless but can also indicate a harmful condition
known as subflorescence. Subflorescence within a masonry unit can create pressure that will
eventually spall the masonry face. In addition, accumulated (trapped) storm water within or
behind mortar joints in conjunction with inclement weather can also gradually spall masonry,
create mold or damage adjacent components, i.e., windows or interior finishes. Spalling is a
Page 4.14 - Condition Assessment
form of deterioration where small fragments of masonry break away from the wall system.
Spalls can also occur as a result of a chemical reaction or from movement of a building structure.
Spalled masonry may eventually dislodge individual masonry units.
Repointing is a process of raking and cutting out defective mortar joints to a depth of not
less than ½ inch nor more than ¾ inch and replacing it with new mortar. Face grouting is the
process of placing mortar over top of the existing mortar. We advise against face grouting
because the existing, often deteriorated mortar does not provide a solid base for the new mortar.
New mortar spalls at face grouted areas will likely occur. One purpose of a mortar joint is to
protect the masonry by relieving stresses within the wall caused by expansion, contraction,
moisture migration and settlement. Repointed mortar joints are more effective if the mortar is
softer and more permeable than the masonry units, and no harder or less permeable than the
existing mortar. The masonry contractor should address these issues within the proposed scope
of work.
A complete inspection of the exterior walls will identify the exact scope of masonry
repairs and replacements. Based on the age and condition of the masonry, we recommend the
Association budget for the following activities:
Complete inspection of the masonry Repointing of up to five percent (5%) of the masonry Replacement of up to one percent (1%) of the masonry (this amount of replacement
should be sufficient to address the masonry adjacent to four garages) Application of a masonry sealer at fifty percent (50%) of the masonry (a sealer should
minimize the amount water than will penetrate into the masonry and reduce the rate ofdeterioration)
Page 4.15 - Condition Assessment
We recommend the Association anticipate this work by 2014 and every six years
thereafter. The times and extent of the masonry repointing and related work may vary.
However, we judge at this time the estimated amounts noted on Line Item 1.820 of Reserve
Expenditures appropriate to estimate sufficient reserves.
Walls, Vinyl Siding - Vinyl siding comprises approximately 129,000 square feet of the
exterior walls. The siding is original and in good overall condition. The siding at Shagbark
consists of the following:
Dutch lap profile Utilizes J-channel trim at window and door perimeters, and other penetrations Excludes water-vapor permeable building paper
Representatives of the Association do not inform us of a history of siding issues. We
elaborate on solutions and procedures necessary for maintenance and replacement of vinyl siding
in the following discussion.
Vinyl siding has a useful life of up to 40 years. Consideration of appearance largely and
development of issues governs the decision to replace, in whole or partially, prior to the end of its
useful life. Maintenance and partial replacements of the siding may extend the useful life.
Normal deterioration mainly relates to discoloration of the exterior finish from exposure to
sunlight, weathering and air pollutants. Loosening of the fasteners also contributes to the
possible need for premature replacement. Vinyl siding gets damaged from forces which cause it
to warp and crack, such as lawn care equipment, wind-driven objects, etc.
Page 4.16 - Condition Assessment
The lack of water-vapor permeable building paper underneath the siding can result in
premature loosening of the siding fasteners from water damage to the substrate sheathing.
Therefore, the Association should anticipate a decreased useful life due to the lack of water
proofing beneath the siding.
The lack of replacement pieces matching the color and profile of the existing siding may
result in the need for a premature replacement. These variables may affect the need for partial
and complete replacements. The following diagram details the use of building wrap in a vinyl
siding system:
The Association should install new vinyl siding as recommended by the Vinyl Siding
Institute. We briefly summarize these recommendations in the following narrative:
Weather Resistant Barrier - Vinyl siding should be installed over a continuous weatherresistant barrier. Vinyl siding is an exterior cladding that is not watertight. The weather
Page 4.17 - Condition Assessment
resistant barrier should include water-vapor permeable building paper and properlyintegrated flashing around all penetrations.
Fasteners - Vinyl siding fasteners include nails, staples and screws. Only aluminum,galvanized steel or other corrosion-resistant fasteners should be used. The fastenersshould penetrate a minimum of ¾ of an inch into the framing.
Fastening - The fasteners should allow 1/32 of an inch clearance between the fastenerhead and the siding, and the fasteners should be installed in the center of the nailing slotin the nailing flange. This will allow for the thermal expansion and contraction of thesiding. Overtight fasteners will cause the siding to buckle. Fasteners should be spaced amaximum of 16 inches apart for horizontal siding, 12 inches for vertical siding and 8- to10-inches for vinyl siding accessories.
Installation - Siding panels should overlap by approximately one inch. Joints should bestaggered so that no two courses are aligned vertically, unless separated by at least threecourses. The siding should not be caulked where the siding meets trim accessories, suchas J-channel, or at overlap joints. J-channel should be installed a minimum of ½ inch offof roof lines.
With consideration of the age and existing condition of the siding, we recommend the
Association anticipate a phased replacement of the siding beginning by 2039 and concluding by
2043. For purposes of this Reserve Study, we base our cost on replacement with a minimum of
.042-inch thick siding. We note this information on Line Item 1.920 of Reserve Expenditures.
Vinyl siding is relatively maintenance free. However, the Association should periodically
clean the vinyl siding with a water hose. A nonabrasive household cleaner or manufacturer
specified vinyl siding cleaner will remove more intense stains. The Association should fund
these ongoing expenses through the operating budget.
Page 4.18 - Condition Assessment
Property Site Elements
Asphalt Pavement, Crack Repair, Patch and Seal Coat - Asphalt pavement comprises
18,600 square yards of streets, parking areas, driveways and walking paths throughout the
community. The pavement is original and in fair overall condition. We observe cracks and
alligator cracks throughout the pavement. We recommend the Association plan for applications
of seal coat and repairs every three- to five-years. However, representatives of the Association
inform us that the Association applies a seal coat to half of the pavement annually, or a two year
cycle. We elaborate on solutions and procedures necessary for the optimal maintenance of
asphalt pavement in the following discussion.
We recommend periodic seal coat applications, crack repairs and patching to maintain
the pavement. Seal coat applications, crack repairs and patching minimize the damaging effects
of vehicle fluids, maintain a uniform and positive appearance, and maximize the useful life of the
pavement. Asphalt pavement is susceptible to isolated areas of accelerated deterioration in areas
that experience freeze-thaw cycles, at the centerlines of streets and at high traffic areas such as
intersections. Depressions often appear at areas where vehicles park such as driveways and
parking areas. Isolated areas of depressions, cracks and deterioration indicate the need for crack
repairs and area patches. The contractor should patch areas that exhibit potholes, alligator or
spider web pattern cracks, and areas of pavement that are severely deteriorated from oil and
gasoline deposits from parking vehicles. Area patching requires total replacement of isolated
areas of pavement. The contractor should mechanically rout and fill all cracks with hot
emulsion. Crack repair minimizes the chance of the cracks transmitting through the pavement.
Page 4.19 - Condition Assessment
There are four main types of seal coats available: fog coat, acrylic sealer, chip seals and
asphaltic emulsion. A fog coat is a simple mixture of water and asphalt. Acrylic sealers include
an acrylic additive to the water and asphalt mixture for greater resistance to abrasion. Fog coats
and acrylic sealers are typically spray applied and are only for aesthetic purposes. Chip seal is
the most substantial type of seal coat which involves placement of oil and aggregate on the
driving surface. Either a roller or normal vehicular traffic works the gravel into the oil.
Asphaltic emulsions combine a sharp sand mixture or mineral fibers, and an emulsifying agent
with the water and asphalt mixture. Asphaltic emulsions are typically hand applied with
squeegees to ensure that the sealer fills surface abrasions and minor cracks. This prevents the
infiltration of water through cracks into the underlying pavement base. Seal coats therefore
minimize the damaging effects of water from expansion and contraction. We regard asphaltic
emulsions as the most effective and economical type of seal coat.
Shagbark should repair any isolated areas of deteriorated pavement prior to seal coat
applications. Proposals for seal coat applications should include both crack repair and area
patching. These activities reduce water infiltration and the effects of inclement weather. The
contractor should only apply seal coat applications after remedial crack and surface repairs are
completed. A seal coat does not bridge or close cracks, therefore, unrepaired cracks render the
seal coat applications useless. Our future estimates of cost include an allowance for both crack
repair and area patching.
At the request of the Board, we include phased seal coat applications to the pavement
beginning in 2013 and concluding by 2014 and every two years thereafter, except when repaving
occurs. The Board should consider a seal coat program with less frequent applications. Seal coat
Page 4.20 - Condition Assessment
product applied every two years does not provide additional protection for the pavement and
results in higher costs for the Association in the long term when compared to a seal coat and
repair program conducted every three- to five-years. Line Item 4.020 of Reserve Expenditures
notes our estimate of future costs and anticipated times of these subsequent seal coat
applications. Our cost includes an allowance for striping of the parking areas.
Asphalt Pavement, Repaving - Asphalt pavement comprises 18,600 square yards of
streets, parking areas and driveways throughout the community. The pavement is original and in
fair overall condition. We observe cracks and alligator cracks throughout the pavement. Pages
5.13 and 5.14 of Photographs depict these conditions. The useful life of pavement in Gahanna is
from 15- to 20-years. We include the following repaving solutions and procedures for the benefit
of the present and future board members.
Components of asphalt pavement include native soil, aggregate and asphalt. First the
contractor creates a base course of aggregate or crushed stone and native soil. The base course is
individually compacted to ninety-five percent (95%) dry density prior to the application of the
asphalt. Compaction assures a stable base for the asphalt that reduces the possibility of
settlement. The initial installation of asphalt uses at least two lifts, or two separate applications
of asphalt, over the base course. The first lift is the binder course. The second lift is the wearing
course. The wearing course comprises a finer aggregate for a smoother more watertight finish.
The following diagram depicts these components.
Page 4.21 - Condition Assessment
The manner of repaving is either a mill and overlay or total replacement. A mill and
overlay is a method of repaving where cracked, worn and failed pavement is mechanically
removed or milled until sound pavement is found. A new layer of asphalt is overlaid atop the
remaining base course of pavement. Total replacement includes the removal of all existing
asphalt down to the base course of aggregate and native soil followed by the application of two
or more new lifts of asphalt. We recommend mill and overlayment on asphalt pavement that
exhibits normal deterioration and wear. We recommend total replacement of asphalt pavement
that exhibits severe deterioration, inadequate drainage, pavement that has been overlaid multiple
times in the past or where the configuration makes overlayment not possible. Based on the
apparent visual condition and configuration of the asphalt pavement, we recommend the mill and
overlay method for initial repaving and the total replacement method for subsequent repaving at
Shagbark.
Page 4.22 - Condition Assessment
A variety of repairs are necessary to deteriorated pavement prior to the application of an
overlay. The contractor should use a combination of area patching, crack repair and milling
before the overlayment. Properly milled pavement removes part of the existing pavement and
permits the overlay to match the elevation of adjacent areas not subject to repaving. Milling also
allows the contractor to make adjustments to the slope of the pavement to ensure proper
drainage. The contractor should clean the milled pavement to ensure proper bonding of the new
overlayment. We recommend an overlayment thickness that averages 1½ inches (not less than
one inch or more than two inches). Variable thicknesses are often necessary to create an
adequate slope for proper drainage. The contractor should identify and quantify areas of
pavement that require area patching, crack repair and milling to help the Association compare
proposed services.
Total replacement requires the removal of all existing asphalt. For area patching, we
recommend the contractor use a rectangular saw cut to remove the deteriorated pavement. For
larger areas such as entire parking areas or driveways, we recommend the contractor grind, mill
or pulverize the existing pavement to remove it. The contractor should then augment and
compact the existing aggregate and native soil to create a stable base. Finally the contractor
should install the new asphalt in at least two lifts.
The time of replacement is dependent on the useful life, age and condition of the
pavement. The useful life of 15- to 20-years is dependent in part on the maintenance applied to
the pavement, the amounts and concentration of auto solvents that penetrate the pavement, the
exposure to sunlight and detrimental effects of inclement weather. Shagbark should repair any
isolated areas of deteriorated pavement concurrent with periodic seal coat applications. We
Page 4.23 - Condition Assessment
recommend the Association plan for a phased milling and overlayment of the pavement with area
patching of up to twenty percent (20%), including likely total replacement of the driveways,
beginning by 2017 and concluding by 2019. We also recommend the Association plan for a
phased total replacement of the asphalt pavement beginning by 2034 and concluding by 2036.
We depict this information on Line Items 4.040 and 4.045 of Reserve Expenditures. The
Association should coordinate asphalt repaving with related activities such as partial replacement
of concrete curbs, and capital repairs to catch basins.
Asphalt Pavement, Repaving, Walking Paths - The Association maintains 400 square
yards of asphalt walking paths that lead to the clubhouse. These paths are original. Walking
path asphalt pavement is typically not as thick as parking area or street asphalt pavement. This
type of pavement application has the potential for deterioration from tree roots, settlement and
development of cracks. The need to maintain a safe pedestrian surface results in a useful life of
10- to 15-years for walking path asphalt pavement. We recommend the Association budget for
total replacement of the asphalt walking path pavement by 2017 and again by 2032. We
anticipate total replacement is likely to maintain a safe pedestrian walking surface. We include
this information on Line Item 4.080 of Reserve Expenditures.
Catch Basins - Twenty-four catch basins collect storm water from the pavement and
conduct it into the storm water system. The overall condition of the catch basins is fair with
settlement visually apparent. The useful life of catch basins is up to 60 years. However,
achieving this useful life usually requires interim capital repairs or partial replacements every 15-
to 20-years.
Page 4.24 - Condition Assessment
The Association should anticipate the occasional displacement or failure of a catch basin
and the surrounding pavement from erosion. Erosion causes settlement around the collar of
catch basins. Left unrepaired, the entire catch basin will shift and need replacement. Shagbark
should plan to repair or replace any displaced or failed catch basins concurrently with
surrounding pavement. The exact times and amount of capital repairs or replacements are
dependent upon variable natural forces. Based on the age and condition of the catch basins, we
recommend the Association anticipate the inspection, capital repair or partial replacement of
eight catch basins in conjunction with each phase of repaving. We include this information on
Line Item 4.100 of Reserve Expenditures.
Concrete, Flatwork - The Association maintains various applications of concrete
flatwork such as curbs, sidewalks, stoops and porches. These applications of concrete have
useful lives of up to 65 years although isolated deterioration of limited areas of concrete is
common. Inclement weather, inadequate subsurface preparation and improper concrete mixtures
or finishing techniques can result in premature deterioration such as settlement, chips, cracks and
spalls. Variable conditions like these result in the need to plan for periodic partial replacements
of the concrete flatwork throughout the next 30 years. We comment on the respective quantities,
conditions and times of partial replacements of concrete flatwork in the following sections of this
narrative.
Concrete Curbs - Concrete curbs line the pavement of Shagbark. These curbs
comprise 9,600 linear feet and are in good to fair condition overall. We estimate that up
to 640 linear feet of curbs, or seven percent (6.67%) of the total, will require replacement
Page 4.25 - Condition Assessment
in conjunction with each repaving event. We depict this information on Line Item 4.110
of Reserve Expenditures. We assume the use of 3,500 psi (pounds per square inch)
concrete.
Concrete Sidewalks - Concrete sidewalks comprise 10,200 square feet throughout
the community. The sidewalks are in good to fair overall condition. The Board informs
us that the Association plans to spend approximately $2,500 plus inflation annually for
leveling of settled sections of concrete. In consideration of these ongoing settlement
repairs, we estimate that up to 2,555 square feet of concrete sidewalks, or twenty-five
percent (25%) of the total, will require replacement during the next 30 years. We
recommend the Association budget for replacement of 365 square feet of concrete
sidewalks every four years beginning by 2016. Line Item 4.140 of Reserve Expenditures
notes our estimate of future costs and anticipated times of replacements. We base our
estimate of replacement on four-inch thick, 3,000 psi (pounds per square inch) concrete
with 6x6 - W1.4xW1.4 steel reinforcing mesh. We recommend an annual inspection of
the sidewalks to identify potential trip hazards. We suggest that the Association grind
down or mark these hazards with orange safety paint prior to replacement or leveling.
Concrete Stoops and Porches - Concrete stoops and porches comprise 9,900
square feet throughout the community. The stoops and porches are in good to fair overall
condition. We estimate that up to 2,450 square feet of concrete stoops and porches, or
twenty-five percent (25%) of the total, will require replacement during the next 30 years.
We recommend the Association budget for replacement of 350 square feet of concrete
Page 4.26 - Condition Assessment
stoops and porches every four years beginning by 2016. Line Item 4.170 of Reserve
Expenditures notes our estimate of future costs and anticipated times of replacements.
The Association should coordinate the concrete flatwork partial replacements on Line
Items 4.139 through 4.170 of Reserve Expenditures to maximize the given amount of concrete in
a single event. This will permit the use of a single contractor and likely achieve the most
economical unit price for the work. The Association should also coordinate partial replacements
of concrete curbs with asphalt pavement, due to the interrelated nature of these items. The times
and costs of these replacements may vary. However, the estimated expenditures detailed in
Reserve Expenditures are sufficient to budget appropriate reserves.
Fences, Vinyl - Approximately 510 linear feet of vinyl fences are found at northwest
perimeter of the property. The fences are original and in fair condition. We observe damaged
sections, missing caps and stains. Page 5.16 of Photographs depicts these conditions. These
fences are constructed of hollow frames. Vinyl fences are resistant to moisture and do not
require paint applications. Normal deterioration mainly relates to discoloration of the finish from
exposure to sunlight, weathering and air pollutants. These types of fences are susceptible to
damage from lawn care equipment, primarily as the vinyl ages and becomes brittle. Vinyl fences
with wood or metal backing are more durable than hollow frame vinyl fences. We recommend
the Association anticipate a useful life of 15- to 20-years for these fences and budget for
replacement 2024 and again by 2042. We include this information on Line Item 4.260 of
Reserve Expenditures.
Page 4.27 - Condition Assessment
Gates and Operators - Four gates and four operators limit access into the community.
The gates and operators are original and in good condition. We anticipate a useful life of up to 8-
to 12-years for the operators and recommend the Association budget for replacement by 2016
and every 10 years thereafter. The gates have a longer useful life of up to 20 years. Shagbark
should anticipate replacement of the gates by 2026. We depict this information on Line Items
4.320 and 4.330 of Reserve Expenditures.
Guard Rails, Wood - Approximately 320 linear feet of wood guard rails line the bridges
throughout the community. The guard rails are original and in good condition. Wood guard rails
of this type have useful lives of up to 30 years. The Association should anticipate periodic partial
replacements due to the nonuniform nature of wood deterioration. We suggest the Association
plan for replacement by 2028. We depict this information on Line Item 4.401 of Reserve
Expenditures.
Landscape, Partial Replacements - The Association contains a large quantity of trees,
shrubbery and other landscape elements. We observe large mature trees in close vicinity to
homes. We also observe many ash trees which are highly susceptible to disease. Replacement of
these elements is an ongoing need. Many associations budget for these replacements as normal
maintenance. Other associations fund ongoing replacements from reserves. Large amounts of
landscape may need replacement due to disease, drought or other forces of nature. If the cost of
removal and replacement is substantial, funding from reserves is logical. The Association may
also desire to periodically update the appearance of the community through major improvements
to the landscape. In consideration of these factors and at the request of Representatives of the
Page 4.28 - Condition Assessment
Association, we include a landscape allowance of $19,500 plus inflation annually beginning in
2013 to ensure the accumulation of sufficient reserves for partial replacements of the landscape.
Line Item 4.500 of Reserve Expenditures depicts this information. The landscape allowance is
based on the sum of the 2013 budgeted items: $1,500 entrance shrubs and topsoil, $10,000 for
tree replacements and $8,000 for erosion and tree contingency.
Mailbox Stations - The Association maintains eight metal mailbox stations at the shelter
near the clubhouse. The mailbox stations are original and in good to fair condition and have a
useful life of up to 20 years. Shagbark should budget for replacement of the mailbox stations by
2020 and again by 2040. We depict this information on Line Item 4.600 of Reserve
Expenditures. The Association should verify the new mailboxes meet the specifications of the
United States Postal Service.
Pond - The Association maintains one pond located near the northeast corner of the
property. The health or condition of a pond is reflected in the clarity of the water, balance of
plant life, the ability of the water to retain life giving gases and the health of the fish in larger
bodies of water. Three factors which affect the health of ponds are erosion, build up of silt and
algae blooms. Management and the Board do not report any problems with algae blooms. We
include the following solutions and procedures as a summary of the minimum requirements for
successful pond management for present and future board members.
Eutrophication is a process in which a pond becomes more shallow and more biologically
productive. Human or animal activity often increases the rate of eutrophication. Erosion and
Page 4.29 - Condition Assessment
storm water deposit fines or silt into the pond and affect the rate of eutrophication. The amount
and intensity of rainfall, soil saturation levels and ground cover all affect the amount of deposits
into the pond. Run-off from construction excavations is another contributor to changes in the
depth of the pond. Lawn fertilizers are another source of nutrients that contribute to
eutrophication. Fertilizers often contain nitrogen and phosphorous which exacerbate nutrient
loads into the water system. We advise that Shagbark consider the use of fertilizers with low or
no phosphorus content for areas adjacent to the pond.
Another method to slow eutrophication is the use of algae-killing chemical treatments.
Introduction of metal compounds, such as copper sulfate, to the water renders the nutrients
inactive to the algae. If necessary, we recommend the Association fund the use of chemical
treatments to control algae growth in the pond through the operating budget. The Association
should first obtain all permits necessary for the use of chemical treatments.
There are several methods with which the Association can manage the ponds and limit
algae blooms and slow the eutrophication process. These management methods include aeration,
sediment removal, erosion control and pond liners. We discuss each management method below.
Aeration - The use of small pumps, motors and aerators circulates pond water and
increases the amount of entrained oxygen in the water, increasing water quality and
reducing algae growths. Shagbark utilizes an aerator. The aerator is original and in good
reported operation condition. Aerators have a useful life of 10- to 15-years. Based on
age, we recommend the Association anticipate replacement by 2017 and 2032. Line Item
Page 4.30 - Condition Assessment
4.700 of Reserve Expenditures notes our estimate of future costs and anticipated times of
replacements.
Erosion Control - The lack of visible erosion suggests there is no foreseeable need for
additional native plants and ground covers at this time. Shagbark should fund
maintenance of the existing buffer zone through the operating budget.
Sediment Removal - The gradual build-up of natural debris, including tree leaves,
branches and silt, may eventually change the topography of areas of the pond. Silt
typically accumulates at inlets, outlets and areas of shoreline erosion. Sediment removal
of ponds becomes necessary if this accumulation alters the quality of pond water or the
functionality of the ponds as storm water management structures. Sediment removal is
the optimal but also the most capital intensive method of pond management. Excavation
equipment used for sediment removal includes clamshells, draglines and suction pipe
lines. Sediment removal can also include shoreline regrading. Regrading includes
removal of collapsed and eroded soil, and redefining the shoreline.
We note deciduous trees in the vicinity of the pond that will deposit leaves in the water
during the autumn season. We also note natural vegetation at the perimeter of a portion
of the pond. These conditions suggest the Association should plan for eventual removal
of sediment from the decay of seasonal vegetation at the pond perimeters.
Page 4.31 - Condition Assessment
The pond comprises approximately 1,600 square yards of water surface area. We
recommend the Association anticipate the need to remove pond sediment every 30 years.
For reserve budgeting purposes, we estimate the need to remove sediment over the entire
surface area an average depth of one yard. However, the actual volume of material to
remove may vary dependent upon an invasive analysis at the time of removal. We
conservatively recommend that the Association budget for this variable but probable
activity by 2030. The time and cost of this maintenance activity may vary. However, we
judge the amount shown on Line Item 4.720 of Reserve Expenditures sufficient to budget
appropriate reserves.
The above management methods will help to maintain the pond and potentially reduce
more costly future maintenance expenditures.
Retaining Walls, Masonry - The Association maintains retaining walls which comprise
approximately 470 square feet of interlocking dry-set masonry. The retaining walls are original
and in good overall condition. Properly constructed interlocking masonry retaining walls utilize
geosynthetic reinforcement and a drainage system to stabilize the wall and prevent the buildup of
hydrostatic pressure behind the wall. The Association should follow the manufacturer's
specifications when constructing any retaining walls.
Water stains may indicate inadequate drainage or blocked drainage from behind the wall.
Isolated minor cracks in these types of walls is common. These conditions do not exist at
Shagbark. However, the Association should aggressively monitor cracks to note any continual
Page 4.32 - Condition Assessment
differential settlement for separation, which may indicate a potential failure of the wall. We
recommend the Association contract with a local engineering firm to monitor these conditions
and fund these expenses through the operating budget.
Interlocking masonry retaining walls have useful lives of up to 35 years. We recommend
the Association plan for total replacement of the walls by 2035. We depict this information on
Line Item 4.745 of Reserve Expenditures. The Association should fund for repairs or partial
replacements of the walls through the operating budget.
Retaining Walls, Timber - The Association maintains retaining walls comprised of 930
square feet of wood timbers. The retaining walls are original and in fair overall condition. We
observe wall movement near the clubhouse. Page 5.19 of Photographs depicts this condition.
Timber retaining walls have a useful life of 15- to 20-years. We recommend the Association
anticipate replacement by 2018. We advise that Shagbark replace with a modular, interlocking
dry-set masonry retaining wall system as is utilized at other locations throughout the property.
The cost of dry-set masonry retaining walls is similar to the cost of timber walls. However,
dry-set masonry retaining walls offer a longer useful life of up to 35 years and lower total
maintenance costs. We include this information on Line Item 4.760 of Reserve Expenditures.
Signage, Entrance - The Association maintains one property identification sign at the
west entrance to the community. The signage is original and in good to fair condition.
Community signage contributes to the overall aesthetic appearance to owners and potential
buyers. Renovation or replacement of community signs is often predicated upon the desire to
Page 4.33 - Condition Assessment
"update" the perceived identity of the community rather than for utilitarian concerns. Therefore,
the specific times for replacement or renovation are discretionary. We recommend the
Association plan to renovate the signage every 15- to 20-years, or by 2018 and again by 2038.
We note this information on Line Item 4.800 of Reserve Expenditures. The Association should
fund interim repairs and replacements through the operating budget.
Clubhouse Elements
HVAC Equipment - The clubhouse HVAC (heating, ventilating and air conditioning)
equipment includes the following split system components:
One remote condensing unit One gas-fired forced air furnace
These units are original and in good overall operational condition. The Association
conducted duct and insulation improvements in the attic in 2012. The useful life of residential
size units is from 12- to 18-years. We recommend the Association anticipate the replacement of
this equipment by 2020 and again by 2038. We include this information on Line Item 5.450 of
Reserve Expenditures.
Interior Renovations - The clubhouse interior comprises approximately 1,300 square
feet of finished area. This quantity excludes the two rest rooms as we include renovation of these
areas on a separate line item. Interior components of the clubhouse include:
Carpet and ceramic tile floor coverings Paint finishes on the walls and ceilings Plumbing Fixtures Light fixtures including exit and emergency lights Kitchen cabinets and countertops Furnishings including sofas, tables, chairs and pews Various appliances including a stove, refrigerator and microwave
Page 4.34 - Condition Assessment
The clubhouse interior elements are original and in good to fair overall condition. We
note visible carpet seam but not significant stains. The furniture exhibits moderate wear. The
useful lives of these interior building elements vary. However, due to interrelated nature of these
elements and the desire to achieve a uniform appearance, we recommend the Association
combine their replacements into coordinated interior renovations. We recommend the
Association anticipate complete interior renovations every 10- to 15-years. These renovations
should include replacement.
Based on the age and visual condition of these interior clubhouse elements, we
recommend the Association budget for a coordinated interior renovation by 2016 and again by
2030. These renovations should include the following:
Application of paint finish to all surfaces Replacement of the carpet Replacement of the appliances Replacement of up to fifty percent (50%) of the ceramic tile floor coverings Replacement of up to fifty percent (50%) of the cabinets and counters Replacement of up to fifty percent (50%) of the furnishings
Line Item 5.500 of Reserve Expenditures note our estimate of future cost and anticipated
times of interior clubhouse renovations.
Rest Rooms - The Association maintains two common area rest rooms at the clubhouse.
Components of the rest rooms include:
Ceramic tile floor and wall coverings Painted finishes Light fixtures Plumbing fixtures
Page 4.35 - Condition Assessment
The components are original and in good overall condition. The useful life of rest room
components varies up to 25 years. Periodic renovations of the rest rooms are an astute practice to
maintain a positive overall appearance of the Association. We recommend the Association
budget for renovation of the rest rooms by 2025. We note this information on Line Item 5.551 of
Reserve Expenditures. The Association should verify the rest room renovations comply with the
Americans with Disability Act (ADA).
Roof, Asphalt Shingles - The clubhouse roof comprises 19 squares of asphalt shingles.
The roof is original and in good to fair condition. The useful life of an asphalt shingle roof is
from 15- to 20-years. We recommend the Association anticipate complete replacement of the
clubhouse roof by 2021 and again by 2040. We note this information on Line Item 5.600 of
Reserve Expenditures. The previous narrative “Roofs, Asphalt Shingles” details our
recommendations concerning roof replacement.
Walls, Wood Siding - Wood siding comprises approximately 1,300 square feet of the
exterior walls of the clubhouse. The siding is original and in good condition. Shagbark should
anticipate a useful life of up to 35 years for the siding. This useful life is dependent upon paint
applications and partial replacements of deteriorated siding every four- to six-years. We
include paint finish applications in the previous section “Walls, Trim, Paint Finishes and
Partial Replacements, Phased”. We recommend the Association anticipate replacement of the
wood siding by 2033. We depict this information on Line Item 5.701 of Reserve Expenditures.
Page 4.36 - Condition Assessment
Windows and Doors - Shagbark maintains approximately 670 square feet of windows
and doors at the clubhouse These components are original and in good overall condition. The
Association recently replaced the sill at the fixed windows. Properly maintained windows and
doors have a useful life of up to 40 years. The useful life of the windows and doors is dependent
on the occurrence of water infiltration, thermal inefficiencies compared to present technology,
type of frame, availability of replacement parts and aesthetics. Based on the above factors, we
recommend the Association budget for replacement of the windows and doors by 2041. We note
this information on Line Item 5.800 of Reserve Expenditures.
Pool Elements
Concrete Deck - A concrete deck surrounds the pool and comprises approximately 1,800
square feet. The deck is original. The useful life of a concrete pool deck is up to 60 years.
However, we recommend the Association conduct inspections, partial replacements and repairs
to the deck every 8- to 12-years.
Inadequate subsurface preparation, improper concrete mixtures, poor finishing
techniques, soil movement and water infiltration underneath the concrete deck can cause
significant settlement and cracks in the concrete. The pool deck should also be free of trip
hazards for the safety of residents and their guests. We recommend the Association budget for
the following by 2020 and every 10 years thereafter:
Selective cut out and replacements of up to ten percent (10%) of concrete Crack repairs as needed Mortar joint repairs Caulk replacement
Page 4.37 - Condition Assessment
The times, amounts and related costs of these repairs and replacements may vary.
However, we judge the amounts shown on Line Item 6.200 of Reserve Expenditures sufficient to
budget appropriate reserves.
Fence, Metal - Approximately 180 linear feet of metal fence surrounds the pool. The
fence is original and in good condition. The protective finishes are in good overall condition at
an age of one year. Fences of this type have a long useful life but are not maintenance free.
Periodic maintenance should include periodic applications of protective paint finish to the metal
surfaces and partial replacement of deteriorated sections as needed. Metal components at grade
and key structural connections are especially prone to failure if not thoroughly maintained.
Secure and rust free fasteners and connections will prevent premature deterioration. We
recommend paint applications every six- to eight-years and we anticipate a useful life of up to 40
years for the fence. We recommend the Association fund paint applications to the fence through
the operating budget. We recommend the Association anticipate replacement of the pool fence
by 2032. We include this information on Line Item 6.400 of Reserve Expenditures.
Furniture - Associated furniture and fixtures around the pool include the following:
Chairs (24) Lounges (20) Tables (4) Umbrellas
These items are primarily original and in good overall condition. The Association
recently replaced umbrellas. Pool furniture has a useful life of up to 12 years. We recommend
the Association budget an allowance for phased replacement of up to fifty percent (50%) of the
pool furniture and fixtures by 2016 and every six years thereafter. The times and costs of these
Page 4.38 - Condition Assessment
replacements may vary. However, we judge the amounts shown on Line Item 6.500 of Reserve
Expenditures sufficient to budget appropriate reserves. We recommend interim re-strapping,
refinishing, cushion replacements, reupholstering and other repairs to the furniture as normal
maintenance to maximize its useful life.
Mechanical Equipment - The pool mechanical equipment comprises the following:
Automatic chlorinator Controls Filter Heater Interconnected pipe, fittings and valves Pump
The pool mechanical equipment is original and in good condition. The exception is the
filter which was replaced in approximately 2010. Pool mechanical equipment has a useful life of
up to 15 years. Failure of the pool mechanical equipment as a single event is unlikely. We
recommend the Association anticipate replacement of up to fifty percent (50%) of the pool
mechanical equipment by 2016 and every seven years thereafter. We consider interim
replacement of motors and minor repairs as normal maintenance. We note this information on
Line Item 6.600 of Reserve Expenditures.
2013 Miscellaneous Reserve Expenditures - The Association budgeted $4,900 for the
following:
$1,000 for gutter and downspout repairs $400 for pool lighting $3,500 for the reserve study update
Page 4.39 - Condition Assessment
We include these remaining budgeted expenditures in 2013 on the second to last Line
Item of Reserve Expenditures.
Reserve Study Update - An ongoing review by the Board and an Update of this Reserve
Study in two- to three- years are necessary to ensure an equitable funding plan since a Reserve
Study is a snapshot in time. Many variables change after the study is conducted that may result
in significant overfunding or underfunding the reserve account. Variables that may affect the
Reserve Funding Plan include, but are not limited to:
Deferred or accelerated capital projects based on Board discretion
Changes in the interest rates on reserve investments
Changes in the local construction inflation rate
Additions and deletions to the Reserve Component Inventory
The presence or absence of maintenance programs
Unusually mild or extreme weather conditions
Technological advancements
Periodic updates incorporate these variable changes since the last Reserve Study or Update.
The Association can expense the fee for an Update with site visit from the reserve
account. This fee is included in the Reserve Funding Plan. We base this budgetary amount on
updating the same property components and quantities of this Reserve Study report. Budgeting
for an Update demonstrates the Board's objective to continue fulfilling its fiduciary responsibility
to maintain the commonly owned property and to fund reserves appropriately.
Page 4.40 - Condition Assessment
PHOTOGRAPHS
Photographs document the conditions of various property components as of the date of
our visual inspection, February 4, 2013. The Condition Assessment contains references to these
photographs.
The following is an overview image of the subject property:
The next pages contain the photographs related to Section 4 - Condition Assessment
Page 5.1 - Photographs
Front building elevation
Front building elevation
Rear building elevation
Page 5.2 - Photographs
Rear building elevation
Wood balcony
Wood deck
Page 5.3 - Photographs
Typical balcony underside
Poorly fitted chimney cap - theAssociation should continue tofund replacement of these throughthe operating budget as needed
Replaced and properly fittedchimney cap
Page 5.4 - Photographs
Gutter and downspout
Gutter leak and resulting woodfascia rot at Unit 483
Asphalt shingle roof
Page 5.5 - Photographs
Asphalt shingle roof - note stainsfrom algae growth
Asphalt shingle roof
Asphalt shingle roof
Page 5.6 - Photographs
Asphalt shingle roof
Shutters
Painted wood elements
Page 5.7 - Photographs
Painted wood elements
Wood trim separation and paintfinish deterioration
Cement parge coat stains
Page 5.8 - Photographs
Cement parge coat stains andmortar cracks at the underlyingblock masonry
Cement parge coat stains andmortar cracks at the underlyingblock masonry
Masonry walls
Page 5.9 - Photographs
Example of minor mortar cracks
Example of significant masonrydeterioration at Unit 501
Typical location of masonrydeterioration
Page 5.10 - Photographs
Block masonry at the porches andstoops
Mortar cracks at the blockmasonry at the concrete patios
Mortar cracks at the blockmasonry at the concrete patios
Page 5.11 - Photographs
Vinyl siding
Vinyl siding
Vinyl siding - note stains
Page 5.12 - Photographs
Asphalt pavement street
Asphalt pavement driveway
Asphalt pavement cracks
Page 5.13 - Photographs
Asphalt pavement cracks
Asphalt pavement alligator cracks
Catch basin
Page 5.14 - Photographs
Significant deterioration of theconcrete collar at a catch basin
Concrete stoop
Concrete stoop
Page 5.15 - Photographs
Vinyl fence
Missing fence component
Damaged and stained sections offence
Page 5.16 - Photographs
Gates
Maintenance including greasing atthese locations will maximize theuseful life of the railings
Guard rails
Page 5.17 - Photographs
Tall, mature trees in close vicinityto homes is common throughoutthe community
Mailbox stations
Pond
Page 5.18 - Photographs
Masonry retaining wall
Timber retaining wall movementnear the clubhouse
Creek - the Association shouldcontinue to fund maintenancethrough the operating budget
Page 5.19 - Photographs
Undermined tree root system atthe creek - the Association shouldcontinue to fund maintenancethrough the operating budget
Clubhouse
Split system furnace
Page 5.20 - Photographs
Clubhouse interior
Rest room
Winterized pool
Page 5.21 - Photographs
Pool fence
Pool mechanical equipment
Pool heater
Page 5.22 - Photographs
SUPPLEMENTARY INFORMATION FOR FINANCIAL STATEMENTS
The Reserve Funding Plan uses the Cash Flow Method to determine an appropriate
funding plan with the following unaudited financial information furnished by the Association.
Unaudited Supplemental Information on Future Major Repairs and Replacements
Reserve ComponentCategories
Total CurrentReplacement Costs
Total Future or InflatedReplacement Costs
% of Total FutureReplacements
Component of Projected2013 YE Fund Balance
Exterior Building Elements $4,710,110 $6,852,754 65.55% $232,030
Property Site Elements $2,438,115 $3,354,799 32.09% $113,592
Clubhouse Elements $118,150 $164,781 1.58% $5,579
Pool Elements $53,560 $73,686 0.70% $2,495
2013 Misc. Expenditures $4,900 $4,900 0.05% $166
Reserve Study Update $3,500 $3,500 0.03% $119
Totals $7,328,335 $10,454,420 100% $353,981
The Audit and Accounting Guide for Common Interest Realty Associations presents
recommendations on Supplementary Information on Future Major Repairs and Replacements in
end of fiscal year Audits of Financial Statements for community associations1. Accountants use
discretion and judgment on how to present the Supplementary Information on Future Major
Repairs and Replacements. However, the Supplementary Information on Future Major Repairs
and Replacements often references and includes excerpts from our Reserve Studies. The
following table excerpts significant unaudited information from the Reserve Expenditures about
Reserve Component categories and estimated current and future replacement costs based on
inflation at an annual rate of 2.0%.
The information included in the table above may be included as part of the
Supplementary Information on Future Major Repairs and Replacements. However, Reserve
Page 6.1 - Supplemental Information
1 American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide - Common InterestRealty Associations; American Institute of Certified Public Accountants, Inc.; 2003
The most important category of Reserve Components noted in Reserve Expenditures is
the Exterior Building Elements. The following chart illustrates the relative importance of the
Reserve Expenditures and relative funding during the next 30 years.
Exterior Building Elements$6,852,754
65.55%
Property Site Elements$3,354,799
32.09%
Clubhouse Elements$164,781
1.58%
Pool Elements$73,6860.70%
2013 Misc. Expenditures$4,9000.05%
Reserve Study Update$3,5000.03%
Future Expenditures Relative Cost IllustrationThe Woods at Shagbark
Condominium Association
Advisors, Inc. does not certify that the information in the table will fully satisfy the
recommendations of the AICPA guideline.
Page 6.2 - Supplemental Information
METHODOLOGY
Reserves for replacement are the amounts of money required for future expenditures to
repair or replace Reserve Components that wear out before the entire facility or project wears
out. Reserving funds for future repair or replacement of the Reserve Components is also one of
the most reliable ways of protecting the value of the property’s infrastructure and marketability.
Shagbark can fund capital repairs and replacements in any combination of the following:
1) Increases in the operating budget during years when the shortages occur
2) Loans using borrowed capital for major replacement projects
3) Level monthly reserve assessments annually adjusted upward for inflation toincrease reserves to fund the expected major future expenditures
4) Special assessments
We do not advocate special assessments or loans unless near term circumstances dictate
otherwise. Although loans provide a gradual method of funding a replacement, the costs are
higher than if the Association were to accumulate reserves ahead of the actual replacement.
Interest earnings on reserves also accumulate in this process of saving or reserving for future
replacements, thereby defraying the amount of gradual reserve collections. We advocate the
third method of Level Monthly Reserve Assessments with relatively minor annual adjustments.
The method ensures that homeowners pay their “fair share” of the weathering and aging of the
commonly owned property each year. Level reserve assessments preserve the property and
enhance the resale value of the homes.
Page 7.1 - Methodology
This Reserve Study is in compliance with and exceeds the National standards1 set forth by
Community Associations Institute (CAI) and the Association of Professional Reserve Analysts
(APRA) fulfilling the requirements of a “Full Reserve Study.” These standards require a Reserve
Component to have a “predictable remaining Useful Life.” Estimating Remaining Useful Lives
and Reserve Expenditures beyond 30 years is often indeterminate. Long-Lived Property
Elements are necessarily excluded from this analysis. We considered the following factors in our
analysis:
Information Furnished by the Association
December 31, 2012 unaudited Cash Status of the Reserve Fund $310,408
2013 Budgeted Reserve Contributions $144,330
Anticipated Interest on Reserve Fund $3,963
Less Anticipated Reserve Expenditures ($104,720)
Projected 2013 Year-End Reserve Balance $353,981
The Cash Flow Method to compute, project and illustrate the 30-year ReserveFunding Plan
Local2 costs of material, equipment and labor
Current and future costs of replacement for the Reserve Components
Costs of demolition as part of the cost of replacement
Local economic conditions and a historical perspective to arrive at our estimate oflong term future inflation for construction costs in Gahanna, Ohio at an annualinflation rate of 2.0%. Isolated or regional markets of greater construction(development) activity may experience slightly greater rates of inflation for bothconstruction materials and labor.
The past and current maintenance practices of Shagbark and their effects onremaining useful lives
Page 7.2 - Methodology
2 See Credentials for addition information on our use of published sources of cost data.
1 Identified in the APRA “Standards - Terms and Definitions” and the CAI “Terms and Definitions”.
The Funding Plan excludes necessary operating budget expenditures. It is ourunderstanding that future operating budgets will provide for the ongoing normalmaintenance of Reserve Components
The anticipated effects of appreciation of the reserves over time in accord with ananticipated future return or yield on investment of your cash equivalent assets atan annual rate of 1.2% (We did not consider the costs, if any, of Federal and StateTaxes on income derived from interest and/or dividend income)
Interest rates on reserves are steady or increasing in concert with the certificates of
deposit and money market rates. Slight increases exist in the savings rates of one, two or
three-year CDs. Without significant differences in these savings rates, shorter term investments
are the choice of many investors. We recommend consultation with a professional investment
adviser before investing reserves to determine an appropriate investment strategy to maximize a
safe return on reserve savings. The following table summarizes rates of inflation and key rates
for government securities, generally considered as safe investment alternatives.
Updates to this Reserve Study will continue to monitor historical facts and trends
concerning the external market conditions.
Page 7.3 - Methodology
Interest Rate and Inflation Data
Av erage or Last Actual = (A) 2011:1 (A) 2011:2 (A) 2011:3 (A) 2011:4 (E) 2012:1 (A) 2012:2 (A) 2012:3 (A) 2012:4 (E)
90-Day Treasury Bill 0.050% 0.40% 0.20% 0.20% 0.05% 0.10% 0.1% 0.1%
1-Year Treasury Bill 0.30 0.15 0.10 0.10 0.30 0.19 0.18 0.18
10-Year Treasury Note 2.50 2.25 2.20 1.85 2.50 1.50 1.45 1.70
30-Year Treasury Bond 4.50 4.50 3.60 2.80 4.50 2.55 2.50 2.90
Consumer Price Index (annualized rate) 0.02 3.6% 3.8% 3.2% 2.1% 2% 2% 2%
"Residential Construction" Producer Price Index -Inflation Rate, Bureau of Labor Statistics (BLS - 12 months) 2.3%
National Market Savings Rates as found in 0.10% for Money Market Savings 0.8% for 2-Year Certificate of Deposit
http://www.bankrate.com 0.4% for 1-Year Certificate of Deposit 1.2% for 3-Year Certificate of Deposit
Estimated Near Term Yield Rate for Reserve Savings . . . . . . . . . . . . . . . . . . . 1.2%
Est. Near Term Local Inflation Rate for Future Capital Expenditures . . . . . . . . . . . 2.0% 10/17/2012
DEFINITIONS1
Cash Flow Method - A method of calculating Reserve Contributions where contributions to the reserve fund aredesigned to offset the variable annual expenditures from the reserve fund. Different Reserve Funding Plans aretested against the anticipated schedule of reserve expenses until the desired funding goal is achieved.
Component Method - A method of developing a Reserve Funding Plan with the total contribution is based on thesum of the contributions for individual components.
Current Cost of Replacement - That amount required today derived from the quantity of a Reserve Component andits unit cost to replace or repair a Reserve Component using the most current technology and constructionmaterials, duplicating the productive utility of the existing property at current local market prices for materials,labor and manufactured equipment, contractors' overhead, profit and fees, but without provisions for buildingpermits, overtime, bonuses for labor or premiums for material and equipment. We include removal and disposalcosts where applicable.
Fully Funded Balance - The Reserve balance that is in direct proportion to the fraction of life "used up" of thecurrent Repair or Replacement cost similar to Total Accrued Depreciation
Funding Goal (Threshold) - The stated purpose of this Reserve Study is to determine the adequate, not excessive,minimal threshold reserve balances.
Future Cost of Replacement - Reserve Expenditure derived from the inflated current cost of replacement or currentcost of replacement as defined above, with consideration given to the effects of inflation on local market rates formaterials, labor and equipment.
Long-Lived Property Component - Property component of Shagbark responsibility not likely to require capitalrepair or replacement during the next 30 years with an unpredictable remaining Useful Life beyond the next 30years.
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.
Remaining Useful Life - The estimated remaining functional or useful time in years of a Reserve Component basedon its age, condition and maintenance.
Reserve Component - Property elements with: 1) Shagbark responsibility; 2) limited Useful Life expectancies;3) predictable Remaining Useful Life expectancies; and 4) a replacement cost above a minimum threshold.
Reserve Component Inventory - Line Items in Reserve Expenditures that identify a Reserve Component.
Reserve Contribution - An amount of money set aside or Reserve Assessment contributed to a Reserve Fund forfuture Reserve Expenditures to repair or replace Reserve Components.
Reserve Expenditure - Future Cost of Replacement of a Reserve Component.
Reserve Fund Status - The accumulated amount of reserves in dollars at a given point in time, i.e., at year end.
Reserve Funding Plan - The portion of the Reserve Study identifying the Cash Flow Analysis and containing therecommended Reserve Contributions and projected annual expenditures, interest earned and reserve balances.
Reserve Study - A budget planning tool that identifies the current status of the reserve fund and a stable andequitable Funding Plan to offset the anticipated future major common area expenditures.
Useful Life - The anticipated total time in years that a Reserve Component is expected to serve its intended functionin its present application or installation.
Page 8.1 - Definitions
1 Definitions are derived from the standards set forth by the Community Associations Institute (CAI) representingAmerica's 305,000 condominium and homeowners associations and cooperatives, and the Association ofProfessional Reserve Analysts, setting the standards of care for reserve study practitioners.
CONDITIONS OF OUR SERVICEASSUMPTIONS
To the best of our knowledge, all data set forth in this report are true and accurate. Althoughgathered from reliable sources, we make no guarantee nor assume liability for the accuracy of any data,opinions, or estimates identified as furnished by others that we used in formulating this analysis.
We did not make any soil analysis or geological study with this report; nor were any water, oil, gas,coal, or other subsurface mineral and use rights or conditions investigated.
Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes,environmental mold or other potentially hazardous materials could, if present, adversely affect the validityof this study. Unless otherwise stated in this report, the existence of hazardous substance, that may or maynot be present on or in the property, was not considered. Our opinions are predicated on the assumption thatthere are no hazardous materials on or in the property. We assume no responsibility for any such conditions.We are not qualified to detect such substances, quantify the impact, or develop the remedial cost.
We have made a visual inspection of the property and noted visible physical defects, if any, in ourreport. Our inspection and analysis was made by employees generally familiar with real estate and buildingconstruction; however, we did not do any invasive testing. Accordingly, we do not opine on, nor are weresponsible for, the structural integrity of the property including its conformity to specific governmentalcode requirements, such as fire, building and safety, earthquake, and occupancy, or any physical defects thatwere not readily apparent during the inspection.
Our opinions of the remaining useful lives of the property elements do not represent a guarantee orwarranty of performance of the products, materials and workmanship.
Page 9.1 - Conditions of Our Service
PROFESSIONAL SERVICE CONDITIONSOur Services - Reserve Advisors, Inc. will perform its services as an independent contractor in
accordance with our professional practice standards. Our compensation is not contingent upon ourconclusions.
Our inspection and analysis of the subject property is limited to visual observations and isnoninvasive. We will inspect sloped roofs from the ground. We will inspect flat roofs where safe access(stairs or ladder permanently attached to the structure) is available. The report is based upon a “snapshot intime” at the moment of our observation. Conditions can change between the time of inspection and theissuance of the report. Reserve Advisors does not investigate, nor assume any responsibility for anyexistence or impact of any hazardous materials, structural, latent or hidden defects which may or may not bepresent on or within the property. Our opinions of estimated costs and remaining useful lives are not aguarantee of the actual costs of replacement, a warranty of the common elements or other property elements,or a guarantee of remaining useful lives.
We assume, without independent verification, the accuracy of all data provided to us. You agree toindemnify and hold us harmless against and from any and all losses, claims, actions, damages, expenses orliabilities, including reasonable attorneys' fees, to which we may become subject in connection with thisengagement, because of any false, misleading or incomplete information which we have relied upon assupplied by you or others under your direction, or which may result from any improper use or reliance on thereport by you or third parties under your control or direction. Your obligation for indemnification andreimbursement shall extend to any controlling person of Reserve Advisors, Inc., including any director,officer, employee, affiliate, or agent. Liability of Reserve Advisors, Inc. and its employees, affiliates, andagents for errors and omissions, if any, in this work is limited to the amount of its compensation for the workperformed in this engagement.
Report - Reserve Advisors, Inc. will complete the services in accordance with the Proposal. Wewill consider any additional information made available to us in the interest of promptly issuing a FinalReport (if requested). However, the Report represents a valid opinion of our findings and recommendationsand is deemed complete and final if no Final Report or changes are requested within six months of ourinspection. We retain the right to withhold the Report or Final Report if payment for services is notrendered in a timely manner. All files, work papers or documents developed by us during the course of theengagement remains our property.
Your Obligations - You agree to provide us access to the subject property during our on-site visualinspection and tour. You will provide to us to the best of your ability and if reasonably available, historicaland budgetary information, the governing documents, and other information that we request and deemnecessary to complete our Study. You agree to pay our actual attorneys’ fees and any other costs incurred inthe event we have to initiate litigation to collect on any unpaid balance for our services.
Use of Our Report and Your Name - Use of our Report(s) is limited to only the purpose statedherein. Any use or reliance for any other purpose, by you or third parties, is invalid. Our Reserve StudyReport in whole or part is not and can not be used as a design specification, design engineering services oran appraisal. You may show our report in its entirety to those third parties who need to review theinformation contained herein. The Client and other third parties viewing this report should not reference ourname or our report, in whole or in part, in any document prepared and/or distributed to third parties withoutour written consent. This report contains intellectual property developed by Reserve Advisors, Inc. specificto this engagement and can not be reproduced or distributed to those who conduct reserve studies withoutthe written consent of Reserve Advisors, Inc.
Page 9.2 - Conditions of Our Service
We reserve the right to include our client's name in our client lists, but we will maintain theconfidentiality of all conversations, documents provided to us, and the contents of our reports, subject tolegal or administrative process or proceedings. These conditions can only be modified by written documentsexecuted by both parties.
Payment Terms, Due Dates, and Interest Charges - The retainer payment is due uponauthorization and prior to shipment of the report. The final payment of the fee is due immediately uponreceipt of the Report. Subsequent changes to the report can be made for up to six months from the initialreport date. Any outstanding balance after 30 days of the invoice date is subject to an interest charge of1.5% per month. Any litigation necessary to collect an unpaid balance shall be venued in MilwaukeeCounty Circuit Court in the State of Wisconsin.
Page 9.3 - Conditions of Our Service
CREDENTIALS
HISTORY AND DEPTH OF SERVICEFounded in 1991, Reserve Advisors, Inc. is the leading provider of reserve studies, insurance
appraisals, developer turnover transition studies, expert witness services, and other engineeringconsulting services. Clients include community associations, resort properties, hotels, clubs, non-profitorganizations, apartment building owners, religious and educational institutions, and office/commercialbuilding owners in 48 states, Canada and throughout the world.
The architectural engineering consulting firm was formed to take a leadership role in helpingfiduciaries, boards, and property managers manage their property like a business with a long rangemaster plan known as a Reserve Study.
Reserve Advisors employs the largest staff of Reserve Specialists with bachelors degrees inengineering dedicated to Reserve Study services. Our principals are founders of CommunityAssociations Institute's (CAI) Reserve Committee, that developed national standards for reserve studyproviders. One of our principals is a Past President of the Association of Professional Reserve Analysts(APRA). Our vast experience with a variety of building types and ages, on-site examination and ahistorical analyses are keys to determining accurate remaining useful life estimates of buildingcomponents.
No Conflict of Interest - As consulting specialists, our independent opinion eliminates any realor perceived conflict of interest because we do not conduct or manage capital projects.
TOTAL STAFF INVOLVEMENTSeveral staff members participate in each assignment. The responsible advisor involves the staff
through a Team Review, exclusive to Reserve Advisors, Inc., and by utilizing the experience of otherstaff members, each of whom has served hundreds of clients. We conduct Team Reviews, an internalquality assurance review of each assignment, including: the inspection; building component costing;lifing; and technical report phases of the assignment. Each Team Review requires the attendance ofseveral engineers, a Review Coordinator, Director of Quality Assurance and other participatory peers.Due to our extensive experience with building components, we do not have a need to utilizesubcontractors.
OUR GOAL To help our clients fulfill their fiduciary responsibilities to maintain property in good condition.
VAST EXPERIENCE WITH A VARIETY OF BUILDINGSReserve Advisors, Inc. has conducted reserve studies for a multitude of different communities
and building types. We've analyzed thousands of buildings, from as small as a 3,500 square-foot daycare center to the 100-story John Hancock Center in Chicago. We also routinely inspect buildings withvarious types of mechanical systems such as simple electric heat, to complex systems with air handlers,chillers, boilers, elevators, and life safety security systems.
We're familiar with all types of building exteriors as well. Our well versed staff regularlyidentifies optimal repair and replacement solutions for such building exterior surfaces such as adobe,brick, stone, concrete, stucco, EIFS, wood products, stained glass and aluminum siding, and windowwall systems.
OLD TO NEWReserve Advisors experience includes ornate and vintage buildings as well as modern structures.
Our specialists are no strangers to older buildings. We're accustomed to addressing the unique challengesposed by buildings that date to the 1800's. We recognize and consider the methods of constructionemployed into our analysis. We recommend appropriate replacement programs that apply cost effectivetechnologies while maintaining a building's character and appeal.
Page 10.1 - Credentials
THEODORE J. SALGADO, P.E., PRAPrincipal
Theodore J. Salgado is a co-founder of Reserve Advisors, Inc., which isdedicated to serving community associations, city and country clubs, religiousorganizations, educational facilities, and public and private entities throughout theUnited States. He is responsible for the production, management, review, andquality assurance of all reserve studies, defect identification transition studies, andconsulting services for a nationwide portfolio of more than 5,000 clients. Under hisdirection, the firm conducts reserve study services for apartment complexes,churches, hotels, resorts, office towers and vintage architecturally ornate buildings.
PRIOR RELEVANT EXPERIENCEBefore founding Reserve Advisors, Inc. in 1991, Mr. Salgado, a professional engineer registered
in the State of Wisconsin, served clients for over 15 years through American Appraisal Associates, theworld's largest full service valuation firm. Mr. Salgado conducted facilities analyses of hospitals, steelmills and various other large manufacturing and petrochemical facilities and casinos.
He has served clients throughout the United States and in foreign countries, and frequently actedas project manager on complex valuation, and federal and state tax planning assignments. His valuationstudies led to negotiated settlements on property tax disputes between municipalities and propertyowners.
Mr. Salgado has authored articles on the topic of reserve studies and facilities maintenance. Healso co-authored "Reserves", an educational videotape produced by Reserve Advisors on the subject ofReserve Studies and maintaining appropriate reserves. Mr. Salgado has also written in-house computerapplications manuals and taught techniques relating to valuation studies.
EXPERT WITNESSMr. Salgado has testified successfully before the Butler County Board of Tax Revisions in Ohio.
His depositions in pretrial discovery proceedings relating to reserve studies of Crestview EstatesCondominium Association in Wauconda, Illinois and the North Shore Club Associations inSouth Bend, Indiana have successfully assisted the parties in arriving at out of court settlements.
EDUCATIONMilwaukee School of Engineering - B.S. Architectural Engineering
PROFESSIONAL AFFILIATIONS/DESIGNATIONSAmerican Association of Cost Engineers - Past President, Wisconsin SectionAssociation of Construction Inspectors - Senior Designated Member and Certified Construction
InspectorAssociation of Professional Reserve Analysts - Past President, and Professional Reserve Analyst
(PRA)Community Associations Institute - Member and Volunteer Leader of multiple chapters throughout
the United StatesConcordia Seminary, St. Louis - Member, National Steering CommitteeMilwaukee School of Engineering - Member, Corporation BoardProfessional Engineer, Wisconsin - Registered in 1982
Page 10.2 - Credentials
JOHN P. POEHLMANN, RSPrincipal
John P. Poehlmann is a co-founder of Reserve Advisors, Inc. He isresponsible for the finance, accounting, marketing, and overall administration ofReserve Advisors, Inc. He also regularly participates in internal Quality ControlTeam Reviews of Reserve Study reports.
Mr. Poehlmann directs corporate marketing, including businessdevelopment, advertising, press releases, conference exhibiting, and direct mailpromotions. He frequently speaks throughout the country at seminars andworkshops on the benefits of future planning and budgeting for capital repairs andreplacements of building components and other assets.
Mr. Poehlmann served on the national Board of Trustees of Community Associations Institute.Community Associations Institute (CAI) is a national, nonprofit 501(c)(6) trade association created in1973 to provide education and resources to America's 305,000 residential condominium, cooperative andhomeowner associations and related professionals and service providers. The Institute is dedicated tofostering vibrant, responsive, competent community associations that promote harmony, community, andresponsible leadership.
He is a founding member of the Institute's Reserve Committee. The Reserve Committeedeveloped national standards and the Reserve Specialist (RS) Designation Program for Reserve Studyproviders. Mr. Poehlmann has authored numerous articles on the topic of Reserve Studies, includingPlanning for Replacement of Property Doesn't Have to Be Like a Trip to the Dentist, Reserve Studies forthe First Time Buyer, Sound Association Planning Parallels Business Concepts, and Reserve StudiesMinimize Liability. He has worked with a variety of publications, including the Chicago Tribune, TheMilwaukee Journal/Sentinel, Common Ground, Common Interest, and Condo Management. He alsoco-authored "Reserves", an educational videotape produced by Reserve Advisors on the subject ofReserve Studies and the benefits of maintaining appropriate reserves. The videotape is available throughReserve Advisors or CAI's website, www.caionline.org and libraries in the State of Virginia.
INDUSTRY SERVICE AWARDSCAI National Rising Star Award - To an individual whose leadership abilities and professionalcontributions have earmarked them for even greater accomplishments in the future.
CAI Michigan Chapter Award - "Given to the individual who contributed their time, expertise, andresources toward improving the quality of services offered by the chapter. Mr. Poehlmann wasunanimously selected as the winner of the CAI Michigan Chapter Award."
EDUCATIONUniversity of Wisconsin-Milwaukee - Master of Science ManagementUniversity of Wisconsin - Bachelor of Business Administration
PROFESSIONAL AFFILIATIONSCommunity Associations Institute (CAI) - Founding member of Reserve Committee; former member
of National Board of Trustees; Reserve Specialist (RS) designation; Member of multiplechapters
Association of Condominium, Townhouse, & Homeowners Associations (ACTHA) - member
Page 10.3 - Credentials
QUALIFICATIONSAlan M. Ebert, P.E., PRA, RS
Associate Director of Quality Assurance
CURRENT CLIENT SERVICESAlan M. Ebert, a Geological Engineer, is an Advisor for Reserve Advisors, Inc. Mr. Ebert is responsible for theinspection and analysis of the condition of clients' properties, and recommending engineering solutions to prolongthe lives of the components. He also forecasts capital expenditures for the repair and/or replacement of theproperty components and prepares technical reports on assignments. He is responsible for conducting Life CycleCost Analyses and Capital Replacement Forecast services and the preparation of Reserve Study Reports forcondominiums, townhomes and homeowner associations.
The following is a partial list of clients served by Alan Ebert demonstrating his breadth of experiential knowledgeof community associations in construction and related buildings systems.
Brownsville Winter Haven Located in Brownsville, Texas, this unique homeowners association contains 525units. The Association maintains three pools and pool houses, a community and management office,landscape and maintenance equipment, and nine irrigation canals with associated infrastructure.
Rosemont Condominiums This unique condominium is located in Alexandria, Virginia and dates to the 1940's.The two mid-rise buildings utilize decorative stone and brick masonry. The development featurescommon interior spaces, multi-level wood balconies and common asphalt parking areas.
Stillwater Homeowners Association Located in Naperville, Illinois, Stillwater Homeowners Associationmaintains four tennis courts, an Olympic sized pool and an upscale ballroom with commercial-gradekitchen. The community also maintains three storm water retention ponds and a detention basin.
Birchfield Community Services Association This extensive Association comprises seven separate parcelswhich include 505 townhome and single family homes. This Community Services Association is locatedin Mt. Laurel, New Jersey. Three lakes, a pool, a clubhouse and management office, wood carports,aluminum siding, and asphalt shingle roofs are a few of the elements maintained by the Association.
Oakridge Manor Condominium Association Located in Londonderry, New Hampshire, this Associationincludes 104 units at 13 buildings. In addition to extensive roads and parking areas, the Associationmaintains a large septic system and significant concrete retaining walls.
Memorial Lofts Homeowners Association This upscale high rise is located in Houston, Texas. The 20 luxuryunits include large balconies and decorative interior hallways. The 10-story building utilizes a paintedstucco facade and TPO roof, while an on-grade garage serves residents and guests.
PRIOR RELEVANT EXPERIENCEMr. Ebert earned his Bachelor of Science degree in Geological Engineering from the University ofWisconsin-Madison. His relevant course work includes foundations, retaining walls, and slope stability. Beforejoining Reserve Advisors, Inc., Mr. Ebert was an oilfield engineer and tested and evaluated hundreds of oil andgas wells throughout North America.
EDUCATION - University of Wisconsin-Madison - B.S. Geological Engineering
PROFESSIONAL AFFILIATIONS/DESIGNATIONSReserve Specialist (RS)- Community Associations InstituteProfessional Reserve Analyst (PRA) - Association of Professional Reserve Analysts
Professional Engineering License - Wisconsin 2012
Page 10.4 - Credentials
QUALIFICATIONSJohn C. Decker, P.E., PRA, RS
Responsible Advisor
CURRENT CLIENT SERVICESJohn C. Decker, a Professional Engineer (P.E.) in civil engineering, is an Advisor for Reserve Advisors, Inc. Mr.Decker is responsible for the inspection and analysis of the condition of clients' property, and recommendingengineering solutions to prolong the lives of the components. He also forecasts capital expenditures for the repairand/or replacement of the property components and prepares technical reports on assignments. He is responsiblefor conducting Life Cycle Cost Analysis and Capital Replacement Forecast services and the preparation ofReserve Study and Transition Study Reports for apartments, high rises, condominiums, townhomes andhomeowners associations. John Decker frequently serves as the Quality Assurance Review Coordinator forRecreational, Townhome, Mid Rise and High Rise communities. Mr. Decker has experience leading Associationsto a negotiated settlement concerning appropriate reserve at the time of developer turnover.
The following is a partial list of clients served by John Decker demonstrating his breadth of experientialknowledge of community associations in construction and related buildings systems.
East Rich Street Lofts This vintage mid-rise was built in the early 1900’s and recently converted tocondominiums. The combination of vintage and current styling make it an important fixture indowntown Columbus, Ohio.
Central Park Condominium Association In the north suburbs of Chicago is this mid rise building built in 1971.At four stories tall this stunning property features spacious floor plans and a high level of finish.
Fairlington Village A 1703-unit residential development in Arlington, Virginia. This property was originallyconstructed between 1942 and 1945 and was selected for the National Register for Historic Places by theFederal Government. The development includes six pools, 13 tennis courts and a community center.
The Brownstone Located in downtown Chicago is this 23-story, 75-unit building. The building containsunderground parking, rooftop pool and a fitness center.
Savoy Park Located in suburban Virginia, these recently constructed mid-rise buildings have an undergroundparking structure, pool and tasteful and spacious courtyards.
Regency Park 130-unit, 28-building townhome community located in the northern suburbs of Detroit is acomfortable development constructed amongst mature pine trees and an adjacent golf club.
Park Lane Upscale condominium and townhome development of 153 units in a five-story mid rise building and17 townhome units. This gated community includes a unique below grade recreation center, tennis courtsand an outdoor pool.
Museum Park Tower I Located in downtown Chicago, this 19 story high rise includes 221 luxury units in thismodern building constructed in the early 2000’s. The building includes a multistory undergroundparking garage.
PRIOR RELEVANT EXPERIENCEBefore joining Reserve Advisors, Inc., Mr. Decker was a Staff Engineer for a construction engineering firm. Hewas responsible supervision of a team of engineering technicians who provided field and laboratory testingservices of construction materials for large-scale commercial construction projects.
EDUCATION - University of Wisconsin, Platteville - B.S. Civil Engineering
PROFESSIONAL AFFILIATIONS / DESIGNATIONS
Professional Engineer (P.E.) Registration - Wisconsin 2007 Reserve Specialist (RS) - Community Associations Institute
Professional Reserves Analyst (PRA) - Association of Professional Reserve Analysts
Page 10.5 - Credentials
QUALIFICATIONSMatthew R. Beilman, RS
Review CoordinatorCURRENT CLIENT SERVICES
Matthew Beilman, a Civil Engineer, is an Advisor for Reserve Advisors, Inc. Mr. Beilman is responsible for theinspection and analysis of the condition of clients' property, and recommending engineering solutions to prolongthe lives of the components. He also forecasts capital expenditures for the repair and/or replacement of theproperty components and prepares technical reports on assignments. He is responsible for conducting Life CycleCost Analysis and Capital Replacement Forecast services and the preparation of Reserve Study Reports forcondominiums, townhomes and homeowner associations.
The following is a partial list of clients served by Matthew Beilman demonstrating his breadth of experientialknowledge of community associations in construction and related buildings systems.
Hedingham Community Association Located in Raleigh, North Carolina, this unique townhome associationcomprises 759 units in 379 buildings. The exteriors of the buildings include masonry veneer, vinylsiding and asphalt shingle roofs
Runnymeade Farms Association Located in Newton Square, Pennsylvania, this attractive master associationincludes an extensive landscape, a swimming pool, tennis courts, retaining walls, entrance monuments,asphalt pavement and a pavilion containing a concrete balcony and pool mechanical equipment.
Beaumont Residential Association This expansive master association, located in the rolling hills of Lexington,Kentucky, is responsible for several miles of asphalt trails, miles of horse fencing, street signs, numerousand elaborate entrance monuments, and light poles and fixtures.
Fairfield Village Community Association A unique community association located in Cypress, Texas,comprises nine lakes, perimeter fences, retaining walls and tennis courts. A fitness center withgymnasium, daycare center and a pool provide additional amenities to more than 5,000 residents.
Arboretum Village Located in Chanhassen, Minnesota, this extensive development includes four separatetownhome associations which contain 342 units in 85 buildings. Detailed architectural exteriors utilize avariety of building materials while interior components include complex fire suppression systems.
The Point and Townhouses at River Shores This attractive community in West Bend, Wisconsin comprises atownhome association and a mid-rise community association. The mid-rise building is constructed ofvarious wall finishes, flat roofs and balconies, and contains heating and cooling systems, elevators, anindoor parking garage, life safety system and various interior finishes.
Smithfield Greene Condominium Association Located in Louisville, Kentucky, this association contains 28units in four buildings. Characteristic of upscale architectural design, the exteriors of the buildingsinclude masonry veneer and complex roof designs. The development encompasses attractive landscape,large retaining walls supporting asphalt pavement, masonry perimeter walls and brick pavers.
Villas of Crimson Oaks A distinguished community located in Lake St. Louis, Missouri, this associationcontains 44 units in 23 buildings. The custom buildings involve steep and elaborate roofing assemblies,masonry, vinyl siding, patios, and wood and composite decks including complex multistory framing.Features of the site involve several large retaining walls, pavement, fences and a large retention pond.
PRIOR RELEVANT EXPERIENCEBefore joining Reserve Advisors, Inc., Mr. Beilman attended the University of Wisconsin in Madison, Wisconsinwhere he attained his Bachelor of Science degree in Civil Engineering with a second major in Economics. Hisstudies focused on construction engineering, project estimating and structural analysis.
EDUCATION - University of Wisconsin - B.S. Civil Engineering
PROFESSIONAL AFFILIATIONS
Reserve Specialist (RS) - Community Associations Institute
Page 10.6 - Credentials
RESOURCES
Reserve Advisors, Inc. utilizes numerous resources of national and local data to conduct itsProfessional Services. A concise list of several of these resources follows:
Association of Construction Inspectors, (ACI) the largest professional organization for thoseinvolved in construction inspection and construction project management. ACI is alsothe leading association providing standards, guidelines, regulations, education, training,and professional recognition in a field that has quickly become important procedure forboth residential and commercial construction, found on the web at http://www.iami.org.Several advisors and a Principal of Reserve Advisors, Inc. hold Senior Memberships withACI.
American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc.,(ASHRAE) the American Society of Heating, Refrigerating and Air-ConditioningEngineers, Inc., devoted to the arts and sciences of heating, ventilation, air conditioningand refrigeration; recognized as the foremost, authoritative, timely and responsive sourceof technical and educational information, standards and guidelines, found on the web at http://www/ashrae.org. Reserve Advisors, Inc. actively participates in its local chapterand holds individual memberships.
Community Associations Institute, (CAI) America's leading advocate for responsiblecommunities noted as the only national organization dedicated to fostering vibrant,responsive, competent community associations. Their mission is to assist communityassociations in promoting harmony, community, and responsible leadership.
Marshall & Swift / Boeckh, (MS/B) the worldwide provider of building cost data, co-sourcingsolutions, and estimating technology for the property and casualty insurance industryfound on the web at http://www.msbinfo.com
R.S. Means CostWorks, North America's leading supplier of construction cost information. Asa member of the Construction Market Data Group, Means provides accurate andup-to-date cost information that helps owners developers, architects, engineers,contractors and others to carefully and precisely project and control the cost of both newbuilding construction and renovation projects found on the web at http://www.rsmeans.com
Reserve Advisors, Inc., library of numerous periodicals relating to reserve studies, conditionanalyses, chapter community associations, and historical costs from thousands of capitalrepair and replacement projects, and product literature from manufacturers of buildingproducts and building systems.
Page 10.7 - Credentials