Riverwoods Condos Reserve Management Plan Type 1 Reserve ...

Riverwoods Condos

Reserve Management Plan

Type 1

Reserve Study with On-Site Analysis

For 30-Year Projection Period Beginning January 1, 2019

Cover

Draft 1

Riverwoods CondosJanuary 1, 2019

Riverwoods Condos


Table of ContentsTable of Contents

Cover 1Table of Contents 2Preparer’s Report on Reserve Study 3Statement of Position 5Summary of Major Components 6Cash Flow - Annual 7Expenditures-Matrix 8Component List - Summary 11Disclosures 15Supplementary Information 18Component List - Detail 19

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Preparer’s Report on Reserve StudyPreparer’s Report on Reserve Study


Type I Reserve Study With On-Site AnalysisFor 30-Year Projection Period Beginning January 1, 2019

Board of DirectorsRiverwoods CondosProvo, UT

Description of Reserve Management Plan Engagement and Reserve Study Report

A reserve management plan engagement involves the reserve professional providing assistance to management of Riverwoods Condos by helping them identify key factors, develop assumptions, gather and assemble information, and develop a financial model so they may consider the results based upon their stated assumptions.

A Type I reserve study engagement is based on an on-site analysis. The on-site analysis of Riverwoods Condos upon which this reserve management plan is based was performed by Robbie Pepper, CMCA,CCIM, GRI of Facilities Advisors International LLC on September 1, 2008.

The attached basic financial exhibits and disclosures comprise a Type I Reserve Study report of Riverwoods Condos. The basic financial exhibits comprising this reserve study report are the statement of position and summary component list as of January 1, 2019, statements of projected cash flows and expenditures for the 30-year period beginning January 1, 2019, and related disclosures that provide important information regarding the basic financial exhibits.

Management’s Responsibility for Reserve Study

The Governing Body of Riverwoods Condos is responsible for the preparation and fair presentation of this reserve study report in accordance with Generally Accepted Reserve Study Principles.

Reserve Professional’s Responsibility

Our responsibility is to perform our reserve management plan engagement and compile the reserve study report in accordance with Generally Accepted Reserve Study Standards.

Report on Reserve Study

Our reserve management plan engagement was performed in accordance with Generally Accepted Reserve Study Standards. A reserve study involves performing procedures to identify, quantify and evaluate condition of components based upon a visual observation for the purpose of making a financial projection. The procedures selected are based on the reserve professional’s judgment. We believe that the procedures we have performed are sufficient and appropriate to support the reserve study report as presented. We are not responsible for any events subsequent to the date of this report.

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We have compiled the accompanying reserve study report of Riverwoods Condos, comprised of the financial exhibits referred to above in accordance with Generally Accepted Reserve Study Principles.

This reserve study report was prepared using software meeting the reserve study calculation and software standards of the International Capital Budgeting Institute.

We are not aware of any material modifications that should be made to the financial exhibits referred to above, based upon the stated significant assumptions and exclusions, for them to be presented in conformity with Generally Accepted Reserve Study Principles.

This reserve study report is restricted to the management and members of the Riverwoods Condos, and should not be relied upon by others not involved in the establishment of the significant assumptions and exclusions upon which this report is based. Readers of the reserve study report should consider the significant assumptions, excluded components, and general exclusions in forming their own conclusions regarding the reserve study report.

Required Supplementary Information

Generally Accepted Reserve Study Standards require that the component list compiled at the major or minor component level be presented to supplement the basic financial exhibits. This component list is the responsibility of the Riverwoods Condos’s management and was used to prepare the basic financial exhibits. The information contained in this list has been subjected to the procedures applied in the compilation of the reserve study report, and we are not aware of any material modifications that should be made thereto.

Regulatory Information

In the case of common interest realty associations located in the U.S.A., Generally Accepted Reserve Study Standards require that regulatory disclosures be presented to supplement the basic financial exhibits. Regulatory Disclosures consist of supplemental information required by the Financial Accounting Standards Board and any disclosures required by state or local jurisdictions. Such information is the responsibility of the Riverwoods Condos’s management and was derived from the component list used to prepare the reserve study report. The information has been subjected to the procedures applied in the compilation of the basic reserve study report, and we are not aware of any material modifications that should be made thereto.

Facilities Advisors Rocky MountainRobbie Pepper, CMCA, CCIM, GRISeptember 14, 2018

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Statement of PositionStatement of Position

Projection period: January 1, 2019 to 2047Type of Project: Condominium Sub-AssociationNumber of Units: 51Location: Provo, UTProject Construction date: July 1, 2010

Description of Project: Riverwoods Condos is an 51 unit two building sub-association located in Provo, UT, as part of The Village at Riverwoods. The project was developed in July 1, 2010.

On-Site analysis performed by: Robbie Pepper Component analysis performed by: Robbie PepperReport prepared by: Robbie Pepper

No special assessments are considered necessary during the 30-year projection period.

Current Replacement Cost of All Components $ 1,256,128Future Replacement Cost of All Components $ 1,941,777Projected Balance of Reserve Funds at January 1, 2019 $ 18,000100% Funded Amount at January 1, 2019 $ 433,552Percent Funded at January 1, 2019 $4.15 %Reserve (Surplus)/Deficit – Average per Unit at January 1, 2019 $ 8,148Projected Reserve Contribution $ 60,000Average Annual Reserve Contribution Per Unit $ 1,176Monthly Reserve Contribution First Year of Projection $ 5,000Average Monthly Reserve Contribution Per Unit $ 98Projected Special Assessment $ 0Projected Inflation Rate 3.00 %Projected Interest Rate 1.00 %

Components Excluded from This Report

Major Component Reason Excluded

Utilities - Underground and in Structure Long-lived Component – Never previously included in study, and Excluded per Board decision

Street Base Lifetime Component Irrigation Lines and Sprinklers Included in Operating BudgetMajor Tree Trimming Included in Operating Budget

Summary of major components is presented on next page

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Summary of Major Components

Estimated Estimated

Remaining Future

Useful Lives Replacement

Categories Years Cost

Concrete 1 $ 20,920

Decks 0- 1 20,765Doors 6-23 146,225Fire Safety 0- 2 8,322Flooring 11 11,122Furnishings 6- 8 7,515Lighting 3- 8 37,936Mechanical Equipment 1-28 815,675Painting 0- 7 331,300Plumbing 21 3,809Roofing 0-20 488,641Sanitation 2- 6 8,231Security 8 19,351Siding 1 21,966

$ 1,941,778

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Riverwoods CondosAnalysis Date - January 1, 2019

Inflation:3.00% Investment:1.00% Contribution Factor:0.00% Calc:Future

Cash Flow - Annual

Period Beginning Balance Contribution Interest Earned Expenditures Ending Balance

01/19 - 12/19 $ 18,000.00 $ 60,000.00 $ 395.23 $ 18,829.99 $ 59,565.24

01/20 - 12/20 59,565.24 90,000.00 696.98 76,815.97 73,446.25

01/21 - 12/21 73,446.25 112,500.00 1,145.09 34,165.73 152,925.61

01/22 - 12/22 152,925.61 140,625.00 2,014.26 49,475.70 246,089.17

01/23 - 12/23 246,089.17 175,781.28 2,975.01 82,464.29 342,381.17

01/24 - 12/24 342,381.17 179,296.92 4,210.35 27,945.86 497,942.58

01/25 - 12/25 497,942.58 182,882.76 4,436.65 322,897.94 362,364.05

01/26 - 12/26 362,364.05 186,540.48 4,234.84 74,234.06 478,905.31

01/27 - 12/27 478,905.31 190,271.28 5,472.58 63,728.52 610,920.65

01/28 - 12/28 610,920.65 192,174.00 6,935.92 35,943.99 774,086.58

$ 18,000.00 $ 1,510,071.72 $ 32,516.91 $ 786,502.05 $ 774,086.58


01/29 - 12/29 $ 774,086.58 $ 194,095.68 $ 8,344.71 $ 88,210.01 $ 888,316.96

01/30 - 12/30 888,316.96 196,036.68 8,852.63 229,621.28 863,584.99

01/31 - 12/31 863,584.99 197,997.00 9,270.31 86,695.08 984,157.22

01/32 - 12/32 984,157.22 199,977.00 10,061.01 180,443.53 1,013,751.70

01/33 - 12/33 1,013,751.70 201,976.80 11,021.59 38,188.14 1,188,561.95

01/34 - 12/34 1,188,561.95 203,996.52 12,749.20 46,609.00 1,358,698.67

01/35 - 12/35 1,358,698.67 206,036.52 12,053.66 572,508.23 1,004,280.62

01/36 - 12/36 1,004,280.62 208,096.92 10,339.38 172,719.32 1,049,997.60

01/37 - 12/37 1,049,997.60 210,177.84 10,557.60 227,487.93 1,043,245.11

01/38 - 12/38 1,043,245.11 212,279.64 10,824.61 156,857.41 1,109,491.95

$ 774,086.58 $ 2,030,670.60 $ 104,074.70 $ 1,799,339.93 $ 1,109,491.95


01/39 - 12/39 $ 1,109,491.95 $ 214,402.44 $ 11,802.25 $ 91,205.92 $ 1,244,490.72

01/40 - 12/40 1,244,490.72 216,546.48 12,589.08 217,536.21 1,256,090.07

01/41 - 12/41 1,256,090.07 218,711.88 13,159.10 121,140.13 1,366,820.92

01/42 - 12/42 1,366,820.92 223,086.12 14,204.46 140,521.00 1,463,590.50

01/43 - 12/43 1,463,590.50 227,547.84 15,416.09 93,239.75 1,613,314.68

01/44 - 12/44 1,613,314.68 232,098.84 16,891.67 104,427.35 1,757,877.84

01/45 - 12/45 1,757,877.84 236,740.80 16,151.66 586,908.64 1,423,861.66

01/46 - 12/46 1,423,861.66 241,475.64 14,630.99 192,506.54 1,487,461.75

01/47 - 12/47 1,487,461.75 246,305.16 14,664.17 329,692.81 1,418,738.27

01/48 - 12/48 1,418,738.27 251,231.28 15,270.14 52,762.76 1,632,476.93

$ 1,109,491.95 $ 2,308,146.48 $ 144,779.61 $ 1,929,941.11 $ 1,632,476.93

PRN:09/14/2018 FAI Rocky Mountains - License # F701122 of 24Percipient Software, Inc. Copyright 2018 All Rights Reserved

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Expenditures-Matrix

Category 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Concrete $ 20,919 $ 11,443 $ 12,150 $ 12,519

Decks 5,075 15,689 5,552 17,165 6,075 18,779 6,646Doors 9,477 7,637Fire Safety 2,588 2,824 2,910 2,831 3,089 3,183 3,098 3,380 3,483 3,389Furnishings 3,645 3,870Lighting 1,110 17,860 18,963Mechanical Equipment 2,614 1,999 2,860 5,895 9,720 14,710 12,900 1,661Painting 9,135 9,664 37,981 38,750 16,508 230,496 9,694 24,246Roofing 2,030 3,137 29,100 2,288 6,075 2,580Sanitation 2,155 2,358 6,075 2,580Security 19,350Siding 21,965 6,866 18,225 7,511

$ 18,829 $ 76,815 $ 34,165 $ 49,475 $ 82,464 $ 27,945 $ 322,897 $ 74,234 $ 63,728 $ 35,943


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Expenditures-Matrix

Category 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Concrete $ 13,697 $ 14,113 $ 14,985 $ 32,789 $ 17,936

Decks 20,545 7,271 22,478 7,955 24,592 8,703 26,905Doors 16,230 8,725 8,991 12,787 10,305Fire Safety 3,698 3,810 3,708 4,046 4,169 4,057 4,426 4,561 4,438 4,842Flooring 11,121Lighting 1,369 1,689Mechanical Equipment 3,424 3,951 1,745 9,890 3,860 7,955 86,072 87,508 90,518 96,410Painting 34,516 62,335 14,685 23,982 26,640 258,710 65,276 22,194Roofing 2,739 156,398 2,908 96,375 3,088 110,501 92,929Sanitation 2,822 3,088 8,197 3,378Security 8,703Siding 8,218 21,170 8,991 34,429 10,762

$ 88,210 $ 229,621 $ 86,695 $ 180,443 $ 38,188 $ 46,609 $ 572,508 $ 172,719 $ 227,487 $ 156,857


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Expenditures-Matrix

Category 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048

Concrete $ 19,044 $ 19,623 $ 21,469 $ 22,122 $ 23,488

Decks 9,522 29,435 10,417 32,204 11,397 35,233Doors 51,991 43,171 17,255 13,905Fire Safety 4,990 4,856 5,298 5,459 5,313 5,796 5,973 5,812 6,341 6,534Furnishings 5,713 6,066Lighting 27,995 29,724 2,083Mechanical Equipment 17,616 20,604 16,176 12,237 132,734 140,875 154,555 7,502Painting 62,585 42,707 30,478 15,658 71,258 19,837 349,092 20,515 79,538 33,884Plumbing 3,808Roofing 19,933 5,713 3,924 4,167 11,061 4,697Sanitation 3,696 4,044 15,485 4,840Security 20,220 11,744Siding 28,566 11,774 12,881 33,183 14,093

$ 91,205 $ 217,536 $ 121,140 $ 140,521 $ 93,239 $ 104,427 $ 586,908 $ 192,506 $ 329,692 $ 52,762


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Component List - Summary

Category / SubcategoryReplace Adj Rem

Component Date Basis Cost Quantity Current Cost Life Life Future Cost

Concrete

Major Repairs

Stairs-Landings-Retaining Walls 7/2020 $ 10,000 1 Allow $ 10,000 5:00 1:06 $ 10,459

$ 10,000 $ 10,459

Water Infiltration Mitigation

Balcony Walls/ Flashing Drip Edge 7/2020 $ 10,000 1 Allow $ 10,000 3:00 1:06 $ 10,459

$ 10,000 $ 10,459

$ 20,000 $ 20,919

Decks


Balcony Walkway /Flashing -Drip Edge 7/2020 $ 15,000 1 Allow $ 15,000 3:00 1:06 $ 15,689

Covered Walkways Floors 1-3 7/2019 5,000 1 Allow 5,000 3:00 0:06 5,075

$ 20,000 $ 20,765

$ 20,000 $ 20,765

Doors

Garage Doors

Garage Door-Dbl- 7/30 - 7/31 $ 3,000 4 Each $ 12,000 20:00 12:00 $ 17,194

$ 12,000 $ 17,194

Glass Doors

Glass Doors-Dbl 7/30 - 7/32 $ 2,000 5 Each $ 10,000 20:00 12:08 $ 14,636

Glass Doors-Sgl 7/2030 1,500 1 Each 1,500 20:00 11:06 2,117

$ 11,500 $ 16,753

Interior Painting

Unit & Utility Door -Paint 7/25 - 7/26 $ 100 139 Each $ 13,900 10:00 6:11 $ 17,114

$ 13,900 $ 17,114

Unit Doors

Unit & Utility Door-Replace 7/40 - 7/42 $ 350 139 Each $ 48,650 25:00 22:05 $ 95,162

$ 48,650 $ 95,162

$ 86,050 $ 146,224

Fire Safety

Major Service

Dryer Vent/Duct Cleaning 7/19 - 7/21 $ 150 53 Each $ 7,950 3:00 1:06 $ 8,322

$ 7,950 $ 8,322

$ 7,950 $ 8,322

Flooring

Tile flooring

Tile 7/2030 $ 8 985 SF $ 7,880 20:00 11:06 $ 11,121

$ 7,880 $ 11,121

$ 7,880 $ 11,121


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Furnishings

Furniture

Furniture -Lobbies 7/25 - 7/27 $ 3,000 2 Job $ 6,000 15:00 7:06 $ 7,515

$ 6,000 $ 7,515

$ 6,000 $ 7,515

Lighting

Exterior Lighting

Exterior Light 7/25 - 7/27 $ 175 168 Each $ 29,400 15:00 7:06 $ 36,824

$ 29,400 $ 36,824

Interior Lighting

Garage Light 7/2022 $ 1,000 1 Allow $ 1,000 7:00 3:06 $ 1,110

$ 1,000 $ 1,110

$ 30,400 $ 37,935

Mechanical Equipment

Building Exterior

Roof Access Hatch 7/2027 $ 2,000 1 Allow $ 2,000 10:00 8:06 $ 2,580

$ 2,000 $ 2,580

Elevator

Elevator Cab-Remodel 7/25 - 7/27 $ 5,000 3 Each $ 15,000 15:00 7:06 $ 18,785

Elevator-Control System and Doors Re 7/45 - 7/47 60,000 3 Each 180,000 35:00 27:06 410,438

$ 195,000 $ 429,223

Garage Doors

Liftmaster Garage Door Opener Motor 7/32 - 7/33 $ 650 4 Each $ 2,600 15:00 14:00 $ 3,955

$ 2,600 $ 3,955

HVAC

Air Tester -Garage 7/2024 $ 800 4 Each $ 3,200 10:00 5:06 $ 3,773

Belimo AF-24 Motor/Garage Vents-Lar 7/30 - 7/33 1,200 4 Each 4,800 20:00 13:00 7,090

Carrier Air Handler Aero 39M 7/35 - 7/37 50,000 2 Each 100,000 25:00 17:06 169,011

Carrier Air Handler Aero 39TTH 7/36 - 7/38 50,000 2 Each 100,000 25:00 18:06 174,151

Garage Vents-Small 7/30 - 7/32 400 8 Each 3,200 20:00 12:06 4,655

HVAC Units Lobby 7/22 - 7/24 1,800 2 Each 3,600 12:00 4:06 4,121

Wall Heater Unit 7/25 - 7/27 1,500 6 Each 9,000 15:00 7:06 11,271

Water Heater 7/26 - 7/28 1,250 2 Each 2,500 12:00 8:06 3,226

$ 226,300 $ 377,301

Major Service

Carrier Air Handler Maintenance 7/2020 $ 2,500 1 Allow $ 2,500 3:00 1:06 $ 2,614

$ 2,500 $ 2,614

$ 428,400 $ 815,675

Painting


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Exterior-Painting-Repair

Wood Trellis & Trim Allowance/Repai 7/2019 $ 3,000 1 Allow $ 3,000 3:00 0:06 $ 3,045

Stairwell-Metal-Railing -Paint 7/2020 12 770 LF 9,240 8:00 1:06 9,664

Walkway Ceilings 7/2019 3,000 1 Allow 3,000 3:00 0:06 3,045

$ 15,240 $ 15,755

Garage

Garage Ceiling 7/2019 $ 3,000 1 Allow $ 3,000 3:00 0:06 $ 3,045

$ 3,000 $ 3,045

Interior Painting

Metal Stairwell Railing - Paint 7/2025 $ 1 2,900 LF $ 3,625 15:00 6:06 $ 4,404

Lobby Painting 7/24 - 7/25 1 5,300 SF 7,950 12:00 6:00 9,508

$ 11,575 $ 13,913

Painting-Exterior

Balcony/Deck-Metal-Railing -Paint 7/2022 $ 12 2,025 LF $ 24,300 7:00 3:06 $ 26,986

Covered Hallways and Stairwells-Paint 7/23 - 7/26 1 38,250 SF 66,937 8:00 5:05 78,871

Stucco Surfaces - Paint 7/2025 3 52,600 SF 157,800 10:00 6:06 191,729

$ 249,037 $ 297,587

Trash Enclosure

Metal Gate - Paint 7/2022 $ 12 72 LF $ 900 7:00 3:06 $ 999

$ 900 $ 999

$ 279,752 $ 331,301

Plumbing

Garage

Garage Drains 7/2040 $ 250 8 Each $ 2,000 30:00 21:06 $ 3,808

$ 2,000 $ 3,808

$ 2,000 $ 3,808

Roofing

Awning Condos

Awning / Capital Improvement 7/2021 $ 25,000 1 Allow $ 25,000 5:00 2:06 $ 26,944

$ 25,000 $ 26,944

Gutters

Gutters/Downspouts 7/37 - 7/39 $ 7 2,510 LF $ 17,570 25:00 19:06 $ 31,529

$ 17,570 $ 31,529

Major Repairs

Shingle Roof 7/35 - 7/37 $ 6 17,500 SF $ 105,000 25:00 17:04 $ 176,459

$ 105,000 $ 176,459

Membrane

Flat Roof - Membrane - Replace 7/30 - 7/32 $ 7 22,950 SF $ 172,125 20:00 12:03 $ 248,539

$ 172,125 $ 248,539


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Repairs

Metal Balcony Roof 7/2020 $ 3,000 1 Allow $ 3,000 5:00 1:06 $ 3,137

Shingle Repair Allowance 7/2019 2,000 1 Allow 2,000 2:00 0:06 2,030

$ 5,000 $ 5,168

$ 324,695 $ 488,640

Sanitation

Repairs

Trash Enclosures 7/2025 $ 5,000 1 Allow $ 5,000 10:00 6:06 $ 6,075

$ 5,000 $ 6,075

Trash Enclosure

Trash Chute 7/2021 $ 2,000 1 Allow $ 2,000 3:00 2:06 $ 2,155

$ 2,000 $ 2,155

$ 7,000 $ 8,230

Security

Communications

Intercom System 7/2027 $ 5,000 2 Each $ 10,000 15:00 8:06 $ 12,900

Security Camera System 7/2027 5,000 1 Job 5,000 10:00 8:06 6,450

$ 15,000 $ 19,350

$ 15,000 $ 19,350

Siding

Building Exterior

Rock Façade 7/2020 $ 6,000 1 Allow $ 6,000 3:00 1:06 $ 6,275

$ 6,000 $ 6,275

Repairs

Stucco Repair 7/2020 $ 15,000 1 Allow $ 15,000 5:00 1:06 $ 15,689

$ 15,000 $ 15,689

$ 21,000 $ 21,965

$ 1,256,127 $ 1,941,776


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Riverwoods CondosJanuary 1, 2019DisclosuresDisclosures

Site Analysis

Riverwoods Condos is a sub- association located in Provo, UT. The two building development of 51 units, is part of The Village at Riverwoods The 51 unit project was constructed as one phase July 1, 2010.

The site analysis was performed on September 1, 2008 by Robbie Pepper, CMCA of Facilities Advisors International LLC. Association Manager Carissa Nosack was interviewed during the site analysis regarding component existence, maintenance activities, dates last repaired/replaced, and actual or bid costs, if known. Site analysis procedures included:

Review of Google Earth satellite images Tour of Association common areas Identification and quantification / measurement of common area components Component condition assessment

The site analysis was performed as a limited scope visual observation. No destructive or invasive testing was performed. The condition of components may be assessed differently if destructive / invasive testing was performed, but such testing is beyond the scope of a reserve study.

Component Analysis

Components considered for inclusion in the reserve study report are all those components that are the maintenance responsibility of the Association that are anticipated to require future major repair or replacement under the assumption that such components are subject to normal maintenance activities and normal wear and tear. Components with a useful life of less than two years or a cost of $1,000 have generally been excluded from this analysis, as such items are considered to be part of the Association’s operating budget.

The component list was compiled based upon the previous reserve study, the tour of association common areas, inquiry of Association management and maintenance staff, and selected vendors providing maintenance services to the Association. The component list is believed to be complete, except for the exclusions noted below, which are considered normal exclusions.

Estimated future major repair and replacement costs are generally based on current replacement costs projected to estimated repair or replacement date, applying an inflation factor of 3.00% for the entire 30-year financial projection period.

Current estimated replacement costs are derived from a variety of sources including; actual prior costs, current bids, vendor or contractor estimates, management’s estimates, Facilities Advisors International’s cost database, or cost estimator manuals. This data is considered reliable and has been relied upon in the determination of current cost. Current cost includes material or product cost, labor, overhead, delivery, and sales tax.

See Preparer’s ReportSee Summary of Significant Assumptions

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General Exclusions from the analysis are:

Excluded Conditions Reason for ExclusionBuilding code or zoning violations or upgrades Outside scope of studyStructural stability or engineering analysisEnvironmental conditions *

Outside scope of studyOutside scope of study

Geological stability or soil conditions Outside scope of studySoil contamination Outside scope of studyHydrological conditions Outside scope of studyMold or fungus Outside scope of studyTermites or other pest control Outside scope of studyRisks of wildfire, flood or seismic activity Outside scope of studyWater quality or testing Outside scope of studyIllegal or controlled substances Outside scope of studyBuilding values or appraisals Outside scope of studyAdequacy of efficiency of any system or componentInformation not provided by the association necessary to identify all components

Outside scope of study

Outside scope of study

* Asbestos, radon, formaldehyde, lead, water or air quality, electromagnetic radiation or other environmental hazards.

Financial Analysis

The financial projection was prepared using the pooled cash flow method. Under this method, aggregate expenditures are projected to future estimated repair or replacement dates considering inflation at 3.00%. Actual expenditures may vary from estimated expenditures, and the differences may be significant.

Reserve fund revenues consist of member assessments and interest earned (and other income). Interest income has been estimated at 1.00%. The funding plan does not contain an income tax expense related to interest earned, as income taxes are paid from the operating fund. The projected annual assessment has been subjected to an annual increase factor for the projection period. This annual assessment adjustment factor is necessary to counteract the effects of inflation on projected expenditures.

Replacement reserves are funded at a level of 4.15% as of January 1, 2019 using the inflation adjusted method of calculating percent funded.

The beginning balance of reserve funds was estimated at $ 18,000, based on information provided by management. The beginning balance of reserve funds was provided by Association management.

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Significant Assumptions

The following significant assumptions were used in the preparation of this reserve study report. If the actual replacement costs or remaining lives vary from the assumptions used in this analysis, the impact could be significant on future assessments. Accordingly, an annual review of the analysis is necessary to see if the Board, within its authority, should increase the regular assessments, pass special assessments or reschedule future replacement dates.

Generally, only long-term major repair and replacement activities for components with a life of 2 years or longer and a cost of $1,000 or more have been considered in this analysis. A group of items with individual cost of less than $1,000 are included if the aggregate cost exceeds $1,000.

The Board of Directors will implement and/or continue preventive maintenance and repair programs to prevent abnormal deterioration of the common areas.

The analysis assumes that no unusual conditions will occur, such as weather, vandalism, unusual use, or unforeseen obsolescence.

Measurements and quantities were obtained by count, measurement, or estimation from plans provided by the Board of Directors unless otherwise noted, and are assumed to be a close approximation to actual.

Proper construction and installation of all improvements is assumed, unless otherwise noted. This analysis assumes that the Association membership wishes to continue the use and maintenance of all

amenities currently in place. The Association carries comprehensive property insurance to cover most insurable property risks. Current financial information was supplied by the Board of Directors and is assumed to be reasonably

accurate as of the date of this analysis. Funded cash balances were not audited nor confirmed directly with financial institutions as a part of this analysis.

The Association will collect and set aside reserve assessments on an annual basis as set forth in the funding plan projection, in order that sufficient funds will be available when expenditures are scheduled or necessary.

The Board of Directors does not anticipate any special assessments other than those that may be scheduled as part of the attached 30-year funding projection.

Interest rate of 1.00% is used in the funding plan. Inflation rate of 3.00% is used in the funding plan.

See Preparer’s ReportSee Summary of Significant Assumptions

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Supplementary Informationon Future Major Repairs and Replacements

Estimated Estimated

Estimated Remaining FutureUseful Lives Useful Lives Replacement

Category Life YY:MM Life YY:MM Cost

Concrete 3:00 - 5:00 1:06 $ 20,920Decks 3:00 0:06 - 1:06 20,765Doors 10:00 -25:00 6:06 -23:06 146,225Fire Safety 3:00 0:06 - 2:06 8,322Flooring 20:00 11:06 11,122Furnishings 15:00 6:06 - 8:06 7,515Lighting 7:00 -15:00 3:06 - 8:06 37,936Mechanical Equipment 3:00 -35:00 1:06 -28:06 815,675Painting 3:00 -15:00 0:06 - 7:06 331,300Plumbing 30:00 21:06 3,809Roofing 2:00 -25:00 0:06 -20:06 488,641Sanitation 3:00 -10:00 2:06 - 6:06 8,231Security 10:00 -15:00 8:06 19,351Siding 3:00 - 5:00 1:06 21,966

$ 1,941,778


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Component List - Detail

Category / Subcategory Replace Est Adj Rem

Component Date Basis Cost Quantity Current Cost Life Life Life Future Cost

Concrete

Major Repairs

Stairs-Landings-Retaining Walls 07/01/2020 $ 10,000.00 1 Allow $ 10,000.00 5:00 5:00 1:06 $ 10,459.69Water Infiltration Mitigation

Balcony Walls/ Flashing Drip Edge 07/01/2020 $ 10,000.00 1 Allow $ 10,000.00 3:00 3:00 1:06 $ 10,459.69

$ 20,000.00 $ 20,919.38

Decks


Balcony Walkway /Flashing -Drip Edge 07/01/2020 $ 15,000.00 1 Allow $ 15,000.00 3:00 3:00 1:06 $ 15,689.54Covered Walkways Floors 1-3 07/01/2019 5,000.00 1 Allow 5,000.00 3:00 3:00 0:06 5,075.47

$ 20,000.00 $ 20,765.01

Doors

Garage Doors

Garage Door-Dbl- 07/01/2030 $ 3,000.00 2 Each $ 6,000.00 20:00 20:00 11:06 $ 8,468.29Garage Door-Dbl- 07/01/2031 3,000.00 2 Each 6,000.00 20:00 20:00 12:06 8,725.86

Glass DoorsGlass Doors-Dbl 07/01/2030 $ 2,000.00 2 Each $ 4,000.00 20:00 20:00 11:06 $ 5,645.53Glass Doors-Dbl 07/01/2032 2,000.00 3 Each 6,000.00 20:00 20:00 13:06 8,991.27Glass Doors-Sgl 07/01/2030 1,500.00 1 Each 1,500.00 20:00 20:00 11:06 2,117.07

Interior PaintingUnit & Utility Door -Paint 07/01/2025 $ 100.00 78 Each $ 7,800.00 10:00 10:00 6:06 $ 9,477.12Unit & Utility Door -Paint 07/01/2026 100.00 61 Each 6,100.00 10:00 10:00 7:06 7,637.02

Unit DoorsUnit & Utility Door-Replace 07/01/2040 $ 350.00 78 Each $ 27,300.00 25:00 25:00 21:06 $ 51,991.58Unit & Utility Door-Replace 07/01/2042 350.00 61 Each 21,350.00 25:00 25:00 23:06 43,171.13

$ 86,050.00 $ 146,224.87


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Fire Safety

Major Service

Dryer Vent/Duct Cleaning 07/01/2019 $ 150.00 17 Each $ 2,550.00 3:00 3:00 0:06 $ 2,588.49Dryer Vent/Duct Cleaning 07/01/2020 150.00 18 Each 2,700.00 3:00 3:00 1:06 2,824.12Dryer Vent/Duct Cleaning 07/01/2021 150.00 18 Each 2,700.00 3:00 3:00 2:06 2,910.01

$ 7,950.00 $ 8,322.62

Flooring

Tile flooring

Tile 07/01/2030 $ 8.00 985 SF $ 7,880.00 20:00 20:00 11:06 $ 11,121.69

$ 7,880.00 $ 11,121.69

Furnishings

Furniture

Furniture -Lobbies 07/01/2025 $ 3,000.00 1 Job $ 3,000.00 15:00 15:00 6:06 $ 3,645.05Furniture -Lobbies 07/01/2027 3,000.00 1 Job 3,000.00 15:00 15:00 8:06 3,870.15

$ 6,000.00 $ 7,515.20

Lighting

Exterior Lighting

Exterior Light 07/01/2025 $ 175.00 84 Each $ 14,700.00 15:00 15:00 6:06 $ 17,860.72Exterior Light 07/01/2027 175.00 84 Each 14,700.00 15:00 15:00 8:06 18,963.75

Interior LightingGarage Light 07/01/2022 $ 1,000.00 1 Allow $ 1,000.00 7:00 7:00 3:06 $ 1,110.57

$ 30,400.00 $ 37,935.04



Draft 1







Building Exterior

Roof Access Hatch 07/01/2027 $ 2,000.00 1 Allow $ 2,000.00 10:00 10:00 8:06 $ 2,580.10Elevator

Elevator Cab-Remodel 07/01/2025 $ 5,000.00 1 Each $ 5,000.00 15:00 15:00 6:06 $ 6,075.08Elevator Cab-Remodel 07/01/2026 5,000.00 1 Each 5,000.00 15:00 15:00 7:06 6,259.86Elevator Cab-Remodel 07/01/2027 5,000.00 1 Each 5,000.00 15:00 15:00 8:06 6,450.26Elevator-Control System and Doors 07/01/2045 60,000.00 1 Each 60,000.00 35:00 35:00 26:06 132,734.71Elevator-Control System and Doors 07/01/2046 60,000.00 1 Each 60,000.00 35:00 35:00 27:06 136,771.96Elevator-Control System and Doors 07/01/2047 60,000.00 1 Each 60,000.00 35:00 35:00 28:06 140,932.01

Garage DoorsLiftmaster Garage Door Opener Motor 07/01/2032 $ 650.00 2 Each $ 1,300.00 15:00 15:00 13:06 $ 1,948.11Liftmaster Garage Door Opener Motor 07/01/2033 650.00 2 Each 1,300.00 15:00 15:00 14:06 2,007.36

HVACAir Tester -Garage 07/01/2024 $ 800.00 4 Each $ 3,200.00 10:00 10:00 5:06 $ 3,773.28Belimo AF-24 Motor/Garage Vents-Large 07/01/2030 1,200.00 1 Each 1,200.00 20:00 20:00 11:06 1,693.66Belimo AF-24 Motor/Garage Vents-Large 07/01/2031 1,200.00 1 Each 1,200.00 20:00 20:00 12:06 1,745.17Belimo AF-24 Motor/Garage Vents-Large 07/01/2032 1,200.00 1 Each 1,200.00 20:00 20:00 13:06 1,798.25Belimo AF-24 Motor/Garage Vents-Large 07/01/2033 1,200.00 1 Each 1,200.00 20:00 20:00 14:06 1,852.95Carrier Air Handler Aero 39M 07/01/2035 50,000.00 1 Each 50,000.00 25:00 25:00 16:06 81,974.26Carrier Air Handler Aero 39M 07/01/2037 50,000.00 1 Each 50,000.00 25:00 25:00 18:06 87,036.75Carrier Air Handler Aero 39TTH 07/01/2036 50,000.00 1 Each 50,000.00 25:00 25:00 17:06 84,467.58Carrier Air Handler Aero 39TTH 07/01/2038 50,000.00 1 Each 50,000.00 25:00 25:00 19:06 89,684.05Garage Vents-Small 07/01/2030 400.00 4 Each 1,600.00 20:00 20:00 11:06 2,258.21Garage Vents-Small 07/01/2032 400.00 4 Each 1,600.00 20:00 20:00 13:06 2,397.67HVAC Units Lobby 07/01/2022 1,800.00 1 Each 1,800.00 12:00 12:00 3:06 1,999.02HVAC Units Lobby 07/01/2024 1,800.00 1 Each 1,800.00 12:00 12:00 5:06 2,122.47Wall Heater Unit 07/01/2025 1,500.00 2 Each 3,000.00 15:00 15:00 6:06 3,645.05Wall Heater Unit 07/01/2026 1,500.00 2 Each 3,000.00 15:00 15:00 7:06 3,755.91


Draft 1







Wall Heater Unit 07/01/2027 $ 1,500.00 2 Each $ 3,000.00 15:00 15:00 8:06 $ 3,870.15Water Heater 07/01/2026 1,250.00 1 Each 1,250.00 12:00 12:00 7:06 1,564.96Water Heater 07/01/2028 1,250.00 1 Each 1,250.00 12:00 12:00 9:06 1,661.61

Major ServiceCarrier Air Handler Maintenance 07/01/2020 $ 2,500.00 1 Allow $ 2,500.00 3:00 3:00 1:06 $ 2,614.92

$ 428,400.00 $ 815,675.37

Painting

Exterior-Painting-Repair

Wood Trellis & Trim 07/01/2019 $ 3,000.00 1 Allow $ 3,000.00 3:00 3:00 0:06 $ 3,045.28Stairwell-Metal-Railing -Paint 07/01/2020 12.00 770 LF 9,240.00 8:00 8:00 1:06 9,664.75Walkway Ceilings 07/01/2019 3,000.00 1 Allow 3,000.00 3:00 3:00 0:06 3,045.28

GarageGarage Ceiling 07/01/2019 $ 3,000.00 1 Allow $ 3,000.00 3:00 3:00 0:06 $ 3,045.28

Interior Painting Metal Stairwell Railing - Paint 07/01/2025 $ 1.25 2,900 LF $ 3,625.00 15:00 15:00 6:06 $ 4,404.43Lobby Painting 07/01/2024 1.50 2,800 SF 4,200.00 12:00 12:00 5:06 4,952.43Lobby Painting 07/01/2025 1.50 2,500 SF 3,750.00 12:00 12:00 6:06 4,556.31

Painting-ExteriorBalcony/Deck-Metal-Railing -Paint 07/01/2022 $ 12.00 2,025 LF $ 24,300.00 7:00 7:00 3:06 $ 26,986.73Covered Hallways and Stairwells-Painting 07/01/2023 1.75 19,350 SF 33,862.50 8:00 8:00 4:06 38,750.35Covered Hallways and Stairwells-Painting 07/01/2024 1.75 5,600 SF 9,800.00 8:00 8:00 5:06 11,555.67Covered Hallways and Stairwells-Painting 07/01/2025 1.75 8,875 SF 15,531.25 8:00 8:00 6:06 18,870.71Covered Hallways and Stairwells-Painting 07/01/2026 1.75 4,425 SF 7,743.75 8:00 8:00 7:06 9,694.95Stucco Surfaces - Paint 07/01/2025 3.00 52,600 SF 157,800.00 10:00 10:00 6:06 191,729.41


Draft 1






Painting

Trash Enclosure

Metal Gate - Paint 07/01/2022 $ 12.50 72 LF $ 900.00 7:00 7:00 3:06 $ 999.51

$ 279,752.50 $ 331,301.09

Plumbing

Garage

Garage Drains 07/01/2040 $ 250.00 8 Each $ 2,000.00 30:00 30:00 21:06 $ 3,808.91

$ 2,000.00 $ 3,808.91

Roofing

Awning Condos

Awning / Capital Improvement 07/01/2021 $ 25,000.00 1 Allow $ 25,000.00 5:00 5:00 2:06 $ 26,944.58Gutters

Gutters/Downspouts 07/01/2037 $ 7.00 1,255 LF $ 8,785.00 25:00 25:00 18:06 $ 15,292.36Gutters/Downspouts 07/01/2039 7.00 1,255 LF 8,785.00 25:00 25:00 20:06 16,236.77

Major RepairsShingle Roof 07/01/2035 $ 6.00 10,400 SF $ 62,400.00 25:00 25:00 16:06 $ 102,303.88Shingle Roof 07/01/2037 6.00 7,100 SF 42,600.00 25:00 25:00 18:06 74,155.31

MembraneFlat Roof - Membrane - Replace 07/01/2030 $ 7.50 14,375 SF $ 107,812.50 20:00 20:00 11:06 $ 152,164.64Flat Roof - Membrane - Replace 07/01/2032 7.50 8,575 SF 64,312.50 20:00 20:00 13:06 96,375.17

RepairsMetal Balcony Roof 07/01/2020 $ 3,000.00 1 Allow $ 3,000.00 5:00 5:00 1:06 $ 3,137.91Shingle Repair Allowance 07/01/2019 2,000.00 1 Allow 2,000.00 2:00 2:00 0:06 2,030.19

$ 324,695.00 $ 488,640.81


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Sanitation

Repairs

Trash Enclosures 07/01/2025 $ 5,000.00 1 Allow $ 5,000.00 10:00 10:00 6:06 $ 6,075.08Trash Enclosure

Trash Chute 07/01/2021 $ 2,000.00 1 Allow $ 2,000.00 3:00 3:00 2:06 $ 2,155.57

$ 7,000.00 $ 8,230.65

Security

Communications

Intercom System 07/01/2027 $ 5,000.00 2 Each $ 10,000.00 15:00 15:00 8:06 $ 12,900.51Security Camera System 07/01/2027 5,000.00 1 Job 5,000.00 10:00 10:00 8:06 6,450.26

$ 15,000.00 $ 19,350.77

Siding

Building Exterior

Rock Façade 07/01/2020 $ 6,000.00 1 Allow $ 6,000.00 3:00 3:00 1:06 $ 6,275.81Repairs

Stucco Repair 07/01/2020 $ 15,000.00 1 Allow $ 15,000.00 5:00 5:00 1:06 $ 15,689.54

$ 21,000.00 $ 21,965.35

$ 1,256,127.50 $ 1,941,776.76


Draft 1

Riverwoods Condos Reserve Management Plan Type 1 Reserve ...

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