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Fairway Villas - Unit Interiors - FFAM1RESERVE STUDYForFFAM1 Unit InteriorsWisconsin Dells, WIDate of Inspection9/21-23/2015BUILDING RESERVES, INC.Tel: 877.514.8256Fax: 866.794.9779www.buildingreserves.comPLANNING FOR YOUR FUTURE

The Reports contain intellectual property that was developed by Building Reserves Inc.and isprovided on a confidential basis to only Customer for only Customer’s benefit. The Reports arelimited to only the express purpose stated herein and may be relied upon only by Customer.The Reports, whether in whole or in part, may not be used for any other purpose, including,without limitation, as a design specification, design engineering study or an appraisal. WithoutBuilding Reserves Inc. prior written consent, Customer may not reference Building ReservesInc. name or the Reports (or any information contained therein, whether in whole or in part) inany document that is reproduced or distributed to third parties without Building Reserves Inc.prior written consent. 2015 Building Reserves. All Rights Reserved.

TABLE OF CONTENTSPage1)Report IntroductionSatellite ImageThe Bottom Line, What You Want To KnowReport SummaryA. What is a Reserve Study?B. Financial AnalysisC. Classification of Reserve Components and Non-Reserve Components2)1-11-21-31-41-51-8Component EvaluationEXTERNAL BUILDING COMPONENTSPatio DoorsINTERNAL BUILDING COMPONENTSAlarm ClocksBedding (Top of Bed), Queen BedsBedding (Top of Bed), Murphy BedsBedding, PillowsBedding, BlanketsCabinetryCeiling Tiles, BathroomsDVD PlayersFloor & Wall Coverings, TileFloor Coverings, CarpetFurniture - Sofas, ReplacementFurniture - Wood Case Goods, RefurbishmentFurniture - Wood Case Goods, ReplacementInterior Paint FinishesIron & Ironing Board PackageKitchen Appliances - Coffee Makers & Toasters, PhasedKitchen Appliances - DishwashersKitchen Appliances - Garbage DisposalsKitchen Appliances - MicrowavesKitchen Appliances - RangesKitchen Appliances - RefrigeratorsKitchen Refresh PackageLamps, ReplacementLight Fixtures & Fans, Upgrade From CFL to LEDLuggage 6

TABLE OF CONTENTSPageMattresses & Box Springs, Queen BedsMattresses, Murphy BedsPhonesPlumbing Fixtures - FaucetsPlumbing Fixtures - Sinks, Bathroom, UndermountPlumbing Fixtures - Sinks, KitchenPlumbing Fixtures - ToiletsPlumbing Fixtures - Tubs / ShowersQuarterly RefreshmentsShower Rods & CurtainsSoap DispensersStorage Accessories (Racks, Bars, Holders, etc.)TelevisionsWindow 2-372-382-392-40SERVICE COMPONENTSFire Detection, Emergency DevicesSecurity System, VingCard RFID UpgradeVTAC Units, Phased Replacement2-412-422-43SITE COMPONENTSPatio Furniture2-44MAINTENANCE COMPONENTSCarpet CleaningCarpet Spot CleaningInsect & Vermin RemediationVTAC CleaningTile and Grout Cleaning, PhasedUnit Deep Cleaning2-452-462-472-482-492-50

TABLE OF CONTENTS3)PageReserve AnalysisQuantity and Cost ProjectionsLife Analysis and Condition Assessment30-Year Cash Flow Analysis Displaying Years: 1-30Division 1: Years 1-5 of Cash Flow AnalysisDivision 2: Years 6-10 of Cash Flow AnalysisDivision 3: Years 11-15 of Cash Flow AnalysisDivision 4: Years 16-20 of Cash Flow AnalysisDivision 5: Years 21-25 of Cash Flow AnalysisDivision 6: Years 26-30 of Cash Flow Analysis3-13-33-53-63-83-103-123-143-16

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THE BOTTOM LINE, WHAT YOU WANT TO KNOWQuestion 1.)Answer1.)Is the current annual contribution to the Reserve Fund sufficient to fund future capitalrepairs and replacements on the development? What is the current annual and monthly perunit contributions to the Reserve Fund?NOAnnually: 0Per Unit Per Month: 0.00The current contributions to the Reserve Fund will not fund future capitalrepairs and replacements. The current annual and monthly contribution perunit per month is listed to the left.Question 2.)What is the total recommended annual contribution starting in the next fiscal year in order tostart funding for future capital repairs and replacements for the next 30-years on thedevelopment?AnswerSEE BELOW The total recommended annual and monthly contribution per unit per month islisted to the left.2.)Annually: 30,570Per Unit Per Month: 283.06Question 3.)How much money is needed NEAR TERM (next 5-years), How much money is needed MIDTERM (next 15-years), How much money is needed LONG TERM (next 30-years) for futurecapital repairs and replacement with in the next 30-years?Answer( 178,971) The NEAR TERM (next 5-years), MID TERM (next 15-years) and LONG TERM( 514,398) (next 30-years) projected cost for capital repairs and replacements is listed to( 1,245,538) the left.3.)Question 4.)Which three components will have the highest cost in the NEAR TERM (next 5-years)?AnswerFurniture - Wood Case Goods, ReplacementFloor Coverings, CarpetMattresses & Box Springs, Queen Beds4.) 46,723 16,677 12,388Question 5.)Which three components will have the highest costs in the LONG TERM (next 30-years)?AnswerFurniture - Wood Case Goods, ReplacementInsect & Vermin RemediationCarpet Cleaning5.) 114,477 104,047 81,5031-2

REPORT SUMMARYClient ProfileClient Reference Number:Type of Study:Date of Non-Invasive Inspection:Date of Study Shipment:Fiscal Year Start and End:15281Full Reserve Study9/21-23/2015November 11, 2015Jan 1 - Dec 31Community DescriptionType of Development:Number of Units:Number of Buildings:Year(s) Built:Description of Major Components by Property Class:External Building ComponentsInternal Building ComponentsService ComponentsSite ComponentsMaintenance ComponentsPool ComponentsGarage ComponentsCondo Interiors9N/A2007 /Windows, Patio DoorsCarpet, Furniture, Fixtures, PaintHVAC, Fire Devices in UnitPatio FurnitureInsect Remediation, CleaningN/AN/ACurrent FundingCurrent Reserve Status as of:Current Reserve Balance:Current Annual Reserve Contributions:Current Reserve Contribution per Unit per Month:Current Operating Budget:Current Percentage of Operating Budget to Reserve Account:(Unaudited Cash Status Of the Reserve Fund)N/A 0 0 0.00N/A0.00%Macro Economic FactorsProjected Interest Earned on Invested Reserves:Projected Local Inflation Costs:0.12%2.90%Recommended FundingRecommended Fund Start as of:Recommended Annual Reserve Contribution:Recommended Reserve Contributions Per Unit Per Month:Recommended Special Assessment:Recommended Special Assessment Per Unit Per Month:Total Recommended Reserve ContributionsTotal Recommended Reserve Contributions Per Unit Per Month:Recommended Percent Adjustment in Operating Budget:Recommended Adjustment in Current Annual Reserve Contributions:Recommended Monthly Difference per Unit per Month:January 1, 2016 30,570 283.06 0 0.00 30,570 283.06N/A 30,570 283.061-3

A. WHAT IS A RESERVE STUDY?What Is A Reserve Study? Why Have One Done?A Reserve Study is a financial plan used to set aside the appropriate amount of money required forcapital repairs and replacements for the development's infrastructure and surrounding assets.Reserve studies are one of the most reliable ways of protecting the value of the property’s infrastructureand marketability. These studies helps ensure that each homeowner pays their fair share of thedeterioration in direct proportion to the amount of time they are owners.It is best that community associations avoid the use of special assessments or loans to fund majorreplacements projects. Funding capital repairs and replacements using special assessments andloans is less cost effective than slowly accumulating reserves over time and investing the balance untilthe funds are needed for major projects.A Reserve Study: A Multi-Functional Tool1.) Lending institutions often request Reserve Studies during the process of a loan application for thecommunity and/or the individual owners.2.) A Reserve Study contains a detailed inventory of the association’s major assets and serves as amanagement tool for planning, scheduling and coordinating future repairs and replacements.3.) A Reserve Study is an annual disclosure of the financial condition of the association to the currenthomeowner, and may be used as a “consumer's guide” by potential purchasers.4.) A Reserve Study is a tool that can assist the board in fulfilling its legal and financial obligations ofkeeping the community in an economically manageable state of repair. If a community is operatingon a deficit basis, it cannot guarantee that a special assessment, when needed, will be approved.Therefore, the association cannot guarantee its ability to perform necessary repairs andreplacement to major components for which they are responsible.5.) Reserve Studies are an essential tool for your accountant during the preparation of the association’sannual audit.Other Advantages Of Reserve Studies Include: Assists in sale of residence Preserves community appearance Reduces cost of community maintenance Minimizes special assessments Maintains market value of home Equitable use of residence1-4

B. FINANCIAL ANALYSISCurrent FundingThe current reserve funding plan as of N/Aconsists of:1.) An overall operating budget of N/A The current percentage contribution from the operating budget to reserves is0.00%2.) A current reserve balance of 03.) An annual reserve contribution of 0Recommended FundingBuilding Reserves recommends the following funding plan to be in effect onJanuary 1, 2016Our recommend funding plan consists of:1.) An annual reserve contribution of 30,570 Equivalent to an average per unit per month contribution of 283.062.) Planned special assessment(s) which are listed below by year2017 , 7,4502020 , 14,400,,Overall Recommended Adjustments In Current Funding Plan1.) The recommended adjustment in the current fiscal year's reserve contribution is 30,570 Equivalent to a per unit per month adjustment of 283.062.) The recommended funding plan represents a percentage adjustment ofN/Ain the current fiscal year's operating budget.Our Recommended Funding Plan Is Based On The Following:30-Year Cash Flow AnalysisThis reserve study uses the Cash Flow Method to calculate the minimum recommended annual reservecontribution to determine adequate, but not excessive contributions. The Cash Flow Method pools allreserve expenses into one account. The 30-Year Cash Flow Analysis uses:1.) The unaudited starting reserve fund balance and current reserve contributions,obtained from the Property Manager2.) 30-Year projection of reserve expenses. This evaluation is based on: Establishing each common reserve component Quantifying each reserve component Estimating the current replacement cost of each reserve component1-5

B. FINANCIAL ANALYSIS Applying a useful life to each reserve component Assessing current age and condition of each reserve component3.) The projected local inflationary cost for labor, equipment and materials is 2.90% This inflationary rate was obtained through Marshall and Swift, Inc.4.) The projected interest earned on invested reserves is 0.12% This interest rate is based on how reserves are currently being invested or the current averageinterest rate on a one-year certificate of deposit (CD). We assume that all interest or dividendsearned are not subject to federal or state taxes.5.) Properly scheduled times for projected projects Properly scheduled projects will allow communities to save time and money. By utilizing onecontractor to complete multiple projects concurrently and by scheduling projects in a logicalmanner, time and money will be saved.6.) Building Reserves uses level recommended monthly reserve contributions which are increasedannually. Building Reserves has established reserve contributions, which are adjusted upwards annuallyto stay ahead of inflationary cost of labor, equipment and materials, thus while avoiding largeinitial increases or special assessments.Sources used to establish local costs of replacements and useful life of components includes,R.S. Means Incorporated (Reeds Construction Data), government standards, experience oncomparable properties and engineering judgment.This Reserve Study is a budget-planning tool that identifies the current status of the reserve fundand a stable and equitable Reserve Funding Plan to offset the anticipated major common-areaexpenditures.Total Suggested Annual Reserve Contributions For Next 30-YearsYears Years Years 2016 30,5702026 40,7002036 54,1002017 38,8502027 41,9002037 55,7002018 32,4002028 43,1002038 57,3002019 33,3002029 44,3002039 59,0002020 48,7502030 45,6002040 38,0002021 35,3002031 46,9002041 38,0002022 36,3002032 48,3002042 38,0002023 37,4002033 49,7002043 38,0002024 38,5002034 51,1002044 38,0002025 39,6002035 52,6002045 38,0001-6

B. FINANCIAL ANALYSISRecommended Reserve Funding Plan For Next 30-YearsCASH FLOW ANALYSIS 150,000 100,000 50,000 0- 50,000- 100,000- 150,0002015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045Projected Reserves at Year EndSuggested Reserve ContributionsPlanned Special AssessmentCumulative Expenditures, By YearThis Reserve Study was submitted on November 11, 2015By Building Reserves, INCThis Reserve Study was: Inspected and prepared by: Brittany Eggert, Reserve Specialist Review by: Kevin E. Bobb, Engineer, Reserve SpecialistRS (Reserve Specialist) is the reserve provider professional designation of the Community AssociationInstitute (CAI) representing America's 380,000 condominium, cooperative and homeownersassociation.1-7

C. CLASSIFICATION OF RESERVE COMPONENTS AND NON-RESERVE COMPONENTSReserve ComponentsReserve Components are classified as items that are:1.) The Association's responsibility2.) Have a limited useful life3.) Have a remaining expected useful life4.) Have a replacement cost above a minimum thresholdList of Reserve Components by Property ClassEXTERNAL BUILDING COMPONENTSPatio DoorsINTERNAL BUILDING COMPONENTSAlarm ClocksBedding (Top of Bed), Queen BedsBedding (Top of Bed), Murphy BedsBedding, PillowsBedding, BlanketsCabinetryCeiling Tiles, BathroomsDVD PlayersFloor & Wall Coverings, TileFloor Coverings, CarpetFurniture - Sofas, ReplacementFurniture - Wood Case Goods, RefurbishmentFurniture - Wood Case Goods, ReplacementInterior Paint FinishesIron & Ironing Board PackageKitchen Appliances - Coffee Makers & Toasters, PhasedKitchen Appliances - DishwashersKitchen Appliances - Garbage DisposalsKitchen Appliances - MicrowavesKitchen Appliances - RangesKitchen Appliances - Refrigerators1-8

C. CLASSIFICATION OF RESERVE COMPONENTS AND NON-RESERVE COMPONENTSKitchen Refresh PackageLamps, ReplacementLight Fixtures & Fans, Upgrade From CFL to LEDLuggage RacksMattresses & Box Springs, Queen BedsMattresses, Murphy BedsPhonesPlumbing Fixtures - FaucetsPlumbing Fixtures - Sinks, Bathroom, UndermountPlumbing Fixtures - Sinks, KitchenPlumbing Fixtures - ToiletsPlumbing Fixtures - Tubs / ShowersQuarterly RefreshmentsShower Rods & CurtainsSoap DispensersStorage Accessories (Racks, Bars, Holders, etc.)TelevisionsWindow TreatmentsSERVICE COMPONENTSFire Detection, Emergency DevicesSecurity System, VingCard RFID UpgradeVTAC Units, Phased ReplacementSITE COMPONENTSPatio FurnitureMAINTENANCE COMPONENTSCarpet CleaningCarpet Spot CleaningInsect & Vermin RemediationVTAC CleaningTile and Grout Cleaning, PhasedUnit Deep Cleaning1-9

C. CLASSIFICATION OF RESERVE COMPONENTS AND NON-RESERVE COMPONENTSNon-Reserve ComponentsOperating Budget Components are classified as:1.) Relatively minor expenses which have little effect on Suggested Reserve contributions2.) Components which are funded through the operating budget3.) Components which have a current cost of replacement under N/AOperating Budget Components consist of:Appliance Warranty ExpensesDock Lock MaintenanceFilter ChangesHair Dryers, As NeededLight Bulb ChangingPlumbing MaintenanceRemote Replacements, As NeededTouch up PaintingWhirlpool CleaningOther repairs normally funded through the operating budgetLong-Lived Components are classified as:1.) Components with estimated remaining useful life beyond 30-Years2.) Components without predictable remaining useful lifeLong-Lived Components consist of:ArtworkBathroom and Bar Area Mirrors, FramelessElectrical SystemsFire Suppression / Sprinkler SystemsFireplace Inserts & SurroundsGranite CountertopsInterior DoorsSafes1-10

C. CLASSIFICATION OF RESERVE COMPONENTS AND NON-RESERVE COMPONENTSComponents Maintained by Others are classified as:1.) Components maintained and replaced by the local government, the utility service provider or others:Components Maintained by Others consist of:All Items Maintained By Chula Vista, Condos, and/or Fairway VillasSheets, Pillow Cases, Towels, Bath MatsShampoo, Conditioner, Soap, Dish Soap, Garbage Bags, Coffee, etc.RevisionsRevisions will be made to this Reserve Study in agreement with written instruction from the Board ofDirectors. No additional charge is incurred for the first revision if requested in writing within sixmonths of the shipment date of this report.UpdatesIt is necessary to update this reserve study in two or three years to make certain an equitable fundingplan is in place since a Reserve Study is a snapshot in time. Many variables can alter the study afterit is completed which may result in significant underfunding or overfunding of the reserve account.Examples of variables that can change the recommended funding are: Timing of proposed projects Maintenance practices of reserve components Changes in interest rates on invested reserves Changes in inflationary cost of labor, equipment and materials(Liabilities not in favor of the property have not been examined.)1-11

Patio DoorsEXTERNAL BUILDING COMPONENTPERCENTAGE OF TOTAL FUTURE COSTS:3.89%ESTIMATED UNIT QUANTITYLINE ITEM: 1Present:432Square FeetESTIMATED REPLACEMENT COSTS 56.50Current Unit Cost:Replacement Per Phase:432Square FeetCurrent Cost Per Phase: 24,408Replaced in Next 30-Years:432Square FeetTotal Cost Next 30-Years: 48,473ESTIMATED AGE AND REPLACEMENT YEARSCONDITION AND USEFUL LIFEEstimated Current Age in Years:Overall Current Condition:Useful Life in Wisconsin Dells, WIGoodFull or Partial Replacement:Full8 /-Remaining Years Until Replacement:24Estimated First Year of Replacement:203930 to 35Overview of patio doors at Fairway Villas.Typical sliding patio door with transom lites.Wood-framed patio door, interior view.Interior wood trim at patio door and 025Schedule of Replacements Costs 0 0 2026 0 2036 0 0 2027 0 2037 0 0 2028 0 2038 0 0 2029 0 2039 48,473 0 2030 0 2040 0 0 2031 0 2041 0 0 2032 0 2042 0 0 2033 0 2043 0 0 2034 0 2044 0 0 2035 0 2045 0YearsSpecial ConditionsComponent includes the replacement of the patiodoors and adjacent transom lites. The patio doors arein good overall condition, with no noted leaking, waterinfiltration, or failed thermopanes. Patio doorreplacement at all units is forecasted to coincide withthe replacement of the patio doors at other unit typesat the Fairway Villas buildings.2-1

Alarm ClocksINTERNAL BUILDING COMPONENTPERCENTAGE OF TOTAL FUTURE COSTS:0.15%Line Item: 2ESTIMATED UNIT QUANTITYPresent:9EachESTIMATED REPLACEMENT COSTS 43.00Current Unit Cost:Replacement Per Phase:9EachCurrent Cost Per Phase: 38727EachTotal Cost Next 30-Years: 1,866Replaced in Next 30-Years:ESTIMATED AGE AND REPLACEMENT YEARSCONDITION AND USEFUL LIFEEstimated Current Age in Years:08Overall Current Condition:Useful Life in Wisconsin Dells, WIVery GoodRemaining Years Until Replacement:Estimated First Year of Replacement:2023Full or Partial Replacement:FullTypical alarm clock at unit interior.Typical alarm clock at unit interior.Typical alarm clock at unit interior.Typical alarm clock at unit 025Schedule of Replacements Costs 0 0 2026 0 2036 0 0 2027 0 2037 0 0 2028 0 2038 0 0 2029 0 2039 769 0 2030 0 2040 0 0 2031 611 2041 0 0 2032 0 2042 0 486 2033 0 2043 0 0 2034 0 2044 0 0 2035 0 2045 08 to 1