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SCHWINDT & CO. RESERVE STUDY SERVICES

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ASSOCIATION OF UNIT OWNERS OF COLUMBIA POINT CONDOMINIUMS

MAINTENANCE PLAN UPDATE

RESERVE STUDY

LEVEL III: UPDATE WITH NO VISUAL SITE INSPECTION

2017

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

Revised 1/25/2017


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ASSOCIATION OF UNIT OWNERS OF COLUMBIA POINT

CONDOMINIUMS

Executive Summary

Year of Report:

January 1, 2017 to December 31, 2017

Number of Units:

79 Units

Parameters:

Beginning Balance: $334,227

Year 2017 Suggested Contribution: $65,000

Year 2017 Projected Interest Earned: $333

Inflation: 2.50%

Annual Increase to Suggested Contribution: 7.00%

Lowest Cash Balance Over 30 Years (Threshold): $89,784

Average Reserve Assessment per Unit: $68.57

Prior Year’s Actual Contribution: $63,144

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jwong

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TABLE OF CONTENTSAssociation of Unit Owners of Columbia Point Condominiums


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Disclosure Information 4 of 76

MAINTENANCE PLAN

Executive Summary of Maintenance Plan 8 of 76

Maintenance Plan 9 of 76

RESERVE STUDY

Property Description 20 of 76

Cash Flow Method - Threshold Funding Model Summary 21 of 76

Cash Flow Method - Threshold Funding Model Projection 22 of 76

Component Summary By Group 23 of 76

Component Summary By Category 25 of 76

Annual Expenditure Detail 28 of 76

Detail Report by Category 35 of 76

Additional Disclosures 73 of 76

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Association of Unit Owners of Columbia Point CondominiumsMaintenance Plan Update

Reserve Study Update – OffsiteDisclosure Information

2017

We have conducted an offsite reserve study update and maintenance plan update Association of Unit Owners of Columbia Point Condominiums for the year beginning January 1, 2017, in accordance with guidelines established by Community Associations Institute and the American Institute of Certified Public Accountants.

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

In addition to providing the reserve study and maintenance plan, we also provide tax and review/audit services to the Association.

Schwindt & Company believes that every association should have a complete building envelope inspection within 12 months of completion of all construction and again after 25 years. This inspection must be performed by a licensed building envelope inspector. Ongoing inspections of the property should be performed by a licensed inspector, with the exception of a roof inspection which may be performed by a licensed roofing contractor.

Due to increased building activity we have seen a dramatic increase in certain vendor pricing during 2016. However,

it currently is not known if this is a temporary or permanent increase. We have not considered this increase in

current cost projections but will monitor these costs on a go forward basis.

Assumptions used for inflation, interest, and other factors are detailed in page 20. Income tax factors were not considered due to the uncertainty of factors affecting net taxable income and the election of tax form to be filed.

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

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

All information regarding the useful lives and costs of reserve components were derived by the Association, vendors, MSR Services, Inc., and various construction pricing and scheduling manuals.

Please note that the Association had a complete building envelope inspection performed by MSR Services, Inc. in 2008.

Article 11, section 11.1 of the Association’s Declaration indicates that the necessary work to maintain, repair or replace the common elements shall be the responsibility of the board of directors of the Association and shall be carried out as provided in the Bylaws.

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Article 7, section 7.1 of the Association’s Bylaws indicates that all maintenance of and repairs to any unit shall be made by the owner of such unit. Each unit owner shall be responsible for the maintenance, repair, or replacement of windows and doors and the forced air furnace, any plumbing or heating fixtures, telephones, water heaters, fans, lighting fixtures and lamps, fireplaces, refrigerators, dishwashers, ranges, or other appliances and accessories that may be in or connected with such owner’s unit. All maintenance, repairs, and replacements to the general and limited common elements shall be made by the Association and shall be charged to all the unit owners as a common expense. Each unit owner, however, shall keep the limited common elements which pertain to such owner’s unit in a neat, clean and sanitary condition.

An earthquake insurance deductible is not included in the reserve study.

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

Many reserve studies do not include components such as the structural building envelope, plumbing (including water supply

and piping), electrical systems and water/sewer systems because they are deemed to be beyond the usual 30 year threshold

and reserve study providers are generally not experts in determining the estimated useful lives and replacement costs of such

assets. Associations that are 20+ in age should consider adding funding for these components because the eventual cost may

be one of the largest expenditures in the study. Because the eventual replacement costs and determination of the estimated

useful life of such components depend on a number of factors, it is advisable to hire experts to advise the Association on such

matters. Schwindt & Co believes the best way to determine costs and lives associated with these components is to perform an

inspection of the applicable components which should include information about the component, steps to take to lengthen the

estimated useful life, projected estimated useful life and estimated replacement costs. This inspection should be conducted by

experts and should include a written report. This information will allow the reserve study provider and the Association to

include appropriate costs, lives and projected expenditures in the study. Schwindt & Co believes that the cost of these

inspections should be included in the reserve study as a funded component.

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

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

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

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

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

Physical Analysis:

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

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

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

The client is considered to have deemed previously developed component quantities as accurate and reliable. The current work is reliant on the validity of prior reserve studies.

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

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2017

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Association of Unit Owners of Columbia Point Condominiums Executive Summary of Maintenance Plan


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

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

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

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

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

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2017

Pursuant to Oregon State Statutes Chapters 94 and 100, which require a maintenance plan as an integral part of the reserve study, the maintenance procedures are as follows:

The Board of Directors should refer to this maintenance plan each year when preparing the annual operating budget for the Association to ensure that annual maintenance costs are included in the budget for the years that they are scheduled.

Property Inspection

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

This inspection process should include a careful visual review of the waterproofing membrane on the unit balconies.

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

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

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

Frequency: Annually

Roof Inspection

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

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

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


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

Frequency: Every other year beginning in 2017

Lighting: Exterior & Common Area Interior – Inspection/Maintenance

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

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

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

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

Repairs and inspections should be completed by a qualified professional.

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

Frequency: Bi-Weekly

Clubhouse/Fitness/Recreation Areas

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



Frequency: Monthly

Exterior Stairs, Decks, Balconies, & Patios

Individual decks and balconies should be carefully checked, particularly concrete and wood, on a

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monthly basis. Concrete should be reviewed for deficiencies such as alkali-aggregate expansion, honeycombing, chips, cracks, stains, lifted areas, tripping hazards, and/or unevenness. Railings should be reviewed for stability, hardware, and overall condition. Wood should be reviewed for deficiencies, such as dry rot, termites, instability, worn edges, cracks, holes and splintering. Footing/foundation should be reviewed for stability and overall condition deficiencies, such as cracks and broken or missing components. A safety review should include, but not be limited to, the sufficient distance maintained between flammables and other surfaces, as well as the overall condition of access points such as doors, windows, screens and thresholds.

Frequency: Monthly

Gas Connections–Review

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

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

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

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

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

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

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



Frequency: Monthly

Hot Water Heater –Common Area Only – Inspection/Maintenance

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

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

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

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by the maintenance contractor and/or association representatives.

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

We understand that this expense should be included in the annual operating budget for the Association.

Frequency: Monthly to Annually

Property Entrance - Review

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

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



Frequency: Monthly

Swimming Pool & Spa

Swimming pool maintenance should be performed in conjunction with a service contractor. Preventive maintenance in this area consists of validating all equipment is present and functional on a monthly basis. Only certified professionals should complete repairs or maintenance procedures more advanced than manufacturer’s prescribed chemical treatments and cleaning. Maintenance staff should accompany the certified professional during statutory inspections and maintenance to ensure that the physical work complies with contract and manufacturer’s specifications.

Preventive maintenance includes, but is not limited to, the review of the following: automatic fill device function; electrical component condition; pump/filter/chlorination function; thermostat; and heater function.

Whirlpools should be reviewed for the function of the timer, drainage, and emergency switch.

Deck surface condition should be reviewed for deficiencies such as rough areas and tripping and slippage hazards. Fence and gates should be reviewed for the function of the anchors, latches and the overall condition. Handrails and ladders should be reviewed for stability, hardware and overall condition. Steps and treads should be reviewed for security and tread condition.

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Safety equipment should be reviewed for its condition and function including, but not limited to, the following: the location and condition of the life ring; emergency telephone equipment; compliance of signage with codes and standards; visibility and overall condition of the signage; and fire extinguishers tag currency, placement, housing, hose, and overall condition.

Note: Any and all electrical outlets near water should be serviced by a ground-fault circuit-interrupter (GFI) to protect users from electrical shock.

Water condition and cleanliness should be reviewed and must comply with local health standards. The County Health Department or local water management authority determines health standards in most communities. Standards must be posted within the pool area.

Pool tile/plaster should be reviewed for its overall condition.

During the off-season when the pool is covered, check the security of the fastening system monthly to make sure it hasn’t been tampered with.



Frequency: Monthly

Windows & Doors

The performance of and payment for the maintenance and repairs of windows and doors is solely the responsibility of the owners. Owners should be made aware of the consequence of not maintaining their property. A method should be adopted for owners to report problems.

These maintenance procedures should also be performed on the common area buildings including the recreation room. This expense for the common buildings should be included in the Association’s operating budget and may be considered part of the annual property inspection.

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

Frequency: Monthly

Gutters & Downspouts

Schwindt & Company recommends that all gutters and downspouts be cleaned, visually inspected, and

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repaired as required every six months in the spring and fall.

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


Frequency: Semiannually, more often if necessary

Bridge Maintenance

Regular maintenance of the wooden foot bridge should include regular inspections, repairs, and replacements of boards, fasteners and railings. Fasteners and railings should be kept secure to ensure safety.

This cost is an estimated amount. We suggest that the Association obtain firm bids for this service.

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

Frequency: Annually

Exterior Walls

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

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

Dryer vents should be checked twice a year and cleared of lint. Also check operation of exhaust baffles to make sure they are present and that they move freely. Exhaust ducts should be cleared of debris every3 years.

Any penetrations of the building envelope such as utility lines and light fixtures should be checked annually for signs of water intrusion. Hose bibs should be checked for leaks and other failures. Each hose bib should be shut off and drained during the winter to prevent damage from freezing.

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


Inspections should be made by a qualified professional.

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Frequency: Annually

Fence – Swimming Pool - Inspection

Metal fences require regular inspection of paint condition, rust and other corrosion, and vegetation and trash buildup. The overall condition of the fence should be reviewed for deficiencies such as vegetation encroachment, debris buildup, holes, sagging areas, missing segments, rust, and/or vandalism.


This expense should be included in the Association’s operating budget and may be considered part of the annual property inspection.

Frequency: Annually

Fire Extinguishers – Common Areas Only

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

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


Frequency: Annually

Trees - Maintenance

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



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Frequency: Annually

Landscape Maintenance

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



Frequency: Annually

Lawn Irrigation System

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

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

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


Frequency: Annually

Storm Drains

Storm drains or sewers are underground systems used to collect and dispose of surface water. They carry large quantities of water away from paved surface areas, and should be kept clean to prevent the accumulation of dirt and debris. They should be cleaned and flushed annually to ensure blockages are removed and piping is functional. If drains tend to become clogged frequently, they should be inspected and cleaned more often.


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

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Frequency: Annually

Exterior Siding Maintenance – Painting

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

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


Frequency: Every 5 years, beginning in 2018 and 2019

Asphalt – Seal Coating

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

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

This work should be performed by a licensed paving contractor.


Frequency: Every 4 years, beginning in 2017

Handrails –- Paint

Periodic maintenance of the handrails should include cleaning, prepping and painting.

Handrails are an essential function of safety in the pool and spa area. Handrails should be regularly inspected in order to assure their safety, including the tightening and/or replacement of the mechanical fasteners as required.



Recreation Room - Interior Paint

The interior painted surfaces of the recreation room should be cleaned, repaired as required, primed and painted with premium quality interior house paint in accordance with the manufacturer’s specifications.

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The work should be performed by a qualified, licensed painting contractor.



Elastomeric Deck Maintenance

Maintenance of the decks includes cleaning, repairing, and applying a top coat to the exposed surfaces with appropriate sealer. Drains should be cleaned and checked for free flow. Flashings, grout and other water resistive details should be renewed as needed to ensure that the tiled surface areas on the decks remain water-tight.

This work should be performed by a licensed contractor.


Frequency: Every 5 years beginning in 2019

Concrete Pavement

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


Frequency: Every 5 years beginning in 2021

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

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RESERVE STUDY

LEVEL III: UPDATE WITH NO VISUAL SITE INSPECTION

2017

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Association of Unit Owners of Columbia Point Condominiums Property Description


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Association of Unit Owners of Columbia Point Condominiums consists of 5 buildings with 79 units plus a pool and two story parking area, located in Portland, Oregon. The property was originally built in 1983, and was converted in 1999. The Association shall provide exterior maintenance upon each unit, such as paint, maintenance, repair and replacement of roofs, gutters, downspouts, rain drains, and exterior building surfaces. The individual homeowners are responsible for all maintenance and repair of the interior of their home.

A site visit was performed by Schwindt & Company in 2012. Schwindt & Co did not investigate components for defects, materials, design or workmanship. This would ordinarily be considered in a complete building envelope inspection. Our condition assessment considers if the component is wearing as intended. All components are considered to be in fair condition and appear to be wearing as intended unless noted otherwise in the component detail.

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

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

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Association of Unit Owners of Columbia Point CondominiumsPortland, Oregon

Cash Flow Method - Threshold Funding Model Summary


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Report Date November 19, 2016Account Number 2colpo

Budget Year Beginning January 01, 2017Budget Year Ending December 31, 2017

Total Units 79

Report Parameters

Inflation 2.50%Annual Assessment Increase 7.00%Interest Rate on Reserve Deposit 0.10%

2017 Beginning Balance $334,227

Threshold Funding Fully Reserved Model Summary

This study utilizes the cash flow method and the threshold funding model, which establishes a reserve funding goal that keeps the reserve balance above a specified dollar or percent funded amount. The threshold method assumes that the threshold method is funded with a positive threshold balance, therefore, "fully reserved".

The following items were not included in the analysis because they have useful lives greater than 30 years: grading/drainage; foundation/footings; storm drains; telephone, cable, and internet lines.

This funding scenario begins with a contribution of $65,000 in 2017 and increases 7.00% each year for the remaining years of the study. A minimum balance of $89,784 is maintained.

The reserve study cash flow model includes an annual increase in the required contribution over the 30 year period. Since the current Board and membership only has the authority to obligate the Association for the current budget year, the cash flow model relies on the actions of future Boards to adhere to the required increase in the annual reserve contribution. Because of the possibility that future Boards, due to budgetary constraints, are not able to increase the reserve contribution to the required amount to provide for adequate funding, the Association may be at risk in the future of special assessing the members to fund needed expenditures.

The purpose of this study is to insure that adequate replacement funds are available when components reach the end of their useful life. Components will be replaced as required, not necessarily in their expected replacement year. This analysis should be updated annually.

Cash Flow Method - Threshold Funding Model Summary of Calculations

Required Month Contribution $5,416.67$68.57 per unit monthly

Average Net Month Interest Earned $27.75Total Month Allocation to Reserves $5,444.41

$68.92 per unit monthly

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Cash Flow Method - Threshold Funding Model Projection


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Beginning Balance: $334,227Projected

Annual Annual Annual EndingYear Contribution Interest Expenditures Reserves

2017 65,000 333 36,641 362,9192018 69,550 341 60,173 372,6372019 74,418 302 110,696 336,6622020 79,628 363 17,138 399,5142021 85,202 437 8,735 476,4182022 91,166 492 34,371 533,7052023 97,547 471 115,577 516,1472024 104,376 282 290,728 330,0772025 111,682 349 42,033 400,0742026 119,500 452 12,801 507,2252027 127,865 561 15,641 620,0102028 136,815 577 116,885 640,5172029 146,392 605 114,667 672,8482030 156,640 732 26,285 803,9352031 167,605 845 49,867 922,5182032 179,337 988 32,126 1,070,7182033 191,891 264 910,975 351,8972034 205,323 467,436 89,7842035 219,696 192 16,936 292,7352036 235,074 400 20,451 507,7592037 251,529 511 132,804 626,9962038 269,137 598 175,200 721,5302039 287,976 476 401,897 608,0852040 308,134 722 53,607 863,3352041 329,704 1,014 28,403 1,165,6492042 352,783 1,357 1,519,7902043 377,478 1,554 170,612 1,728,2102044 403,901 1,811 136,708 1,997,2152045 432,174 2,211 20,915 2,410,6862046 462,427 2,574 88,346 2,787,341

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Association of Unit Owners of Columbia Point Condominiums Component Summary By Group


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CapitalCanvas Canopy 2014 2020 7 -1 3 1 Total 3,075.00 3,075Composition Roof - Replacement 2008 2033 25 0 16 1 Total 508,469.70 508,470Concrete Curbing & Wheel-stops 2007 2033 25 1 16 1 Total 4,627.07 4,627Concrete Paving - Driveways & Parking G.. 2009 2034 25 0 17 3,557 SF 15.90 56,567Exterior Lighting - Replacement 2007 2017 10 0 0 1 Total 3,000.00 3,000Exterior Siding - Replacement Phase (I) 2014 2019 5 0 2 1 Total 35,875.00 17,937Exterior Siding - Replacement Phase (II) 2013 2018 5 0 1 1 Total 35,875.00 17,937Exterior Stairs- Replacement 2017 2017 2017 1 0 0 1 Total 18,450.00 18,450Front Entry Decks - Repair 2009 2034 25 0 17 22 Total 7,627.05 167,795Irrigation Project - Pump System UnfundedKey Card System - Add 2013 2038 25 0 21 1 Total 11,294.22 11,294Landscape/Irrigation - Repair 2016 2026 10 0 9 1 Total 10,250.00 10,250Mailboxes - Replacement 2007 2033 25 1 16 1 Total 3,813.52 3,814Parking Garage - Restripe 2010 2017 7 0 0 1 Total 2,562.50 2,562Photovoltaic Electric Project UnfundedPool - Cover Replacement 2009 2019 10 0 2 1 Total 3,388.26 3,388Pool - Equipment - Filter/Chlorinator 2007 2018 10 1 1 1 Total 1,652.53 1,653Pool - Equipment - Heater 2006 2017 6 5 0 1 Total 4,715.00 4,715Pool - Equipment - Pump 2006 2019 6 7 2 1 Total 2,562.50 2,562Pool - Liner Replacement 2009 2019 10 0 2 1 Total 11,898.46 11,898Rear Deck Membrane - Replacement 2009 2024 15 0 7 48 Each 3,388.26 162,636Recreation Center - Bathrooms UnfundedRecreation Center - Equipment Renewal 2013 2018 5 0 1 1 Total 6,610.11 6,610Recreation Center - Garden Style Window 2013 2063 25 25 46 1 Total 3,813.52 3,814Recreation Center - Spa & Sauna UnfundedRoofing - Preformed Metal 2007 2023 15 1 6 2,500 SF 12.70 31,750Signs UnfundedSwimming Pool - Solar Panels Unfunded Capital - Total $1,054,806

Non-CapitalAsphalt Walking Path - Repairs 2007 2020 12 1 3 5,055 SF 2.54 12,840Asphalt Walking Path - Seal Coat 2007 2017 4 6 0 5,055 SF 0.35 1,769Bridge: Walking Path & Railings - Repairs 2009 2030 20 1 13 2 Total 9,533.81 19,068Building Envelope Inspection 1999 2024 25 0 7 1 Total 10,000.00 10,000Concrete Pavement - Power Wash & Seal (.. 2016 2019 3 0 2 42,898 SF 0.56 24,023Concrete Walkways - Repair 2007 2032 25 0 15 587 SF 15.90 9,342Electrical Inspection 1999 2024 25 0 7 1 Total 10,000.00 10,000Exterior Siding - Painting (I) 2014 2019 5 0 2 1 Total 31,443.10 31,443Exterior Siding - Painting (II) 2013 2018 5 0 1 1 Total 32,504.76 32,505Fireplace Chimneys - Inspection & Cleaning 2015 2017 2 0 0 1 Total 3,500.00 3,500Front Entry Decks - Re-Coat (I) 2009 2019 10 0 2 784 SF 10.16 7,965

Revised 1/25/2017

Association of Unit Owners of Columbia Point Condominiums Component Summary By Group


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Non-Capital continued...Front Entry Decks - Re-Coat (II) 2009 2044 10 25 27 784 SF 10.16 7,965Gutters & Downspouts - Repair 2008 2033 25 0 16 1 Total 31,779.36 31,779Handrails & Guardrails - Paint 2016 2022 6 0 5 1 Total 6,355.87 6,356Handrails & Guardrails - Repair 2007 2037 30 0 20 1 Total 38,135.22 38,135Plumbing Inspection 1999 2024 25 0 7 1 Total 10,000.00 10,000Pool Deck, Concrete - Repairs 2007 2037 30 0 20 340 SF 15.90 5,412Recreation Center - Interior Painting 2013 2036 10 13 19 1 Total 2,542.36 2,542Roofing - Inspection (I) 2015 2017 2 0 0 1 Total 2,644.05 2,644 Non-Capital - Total $267,289

Total Asset Summary $1,322,096

Revised 1/25/2017

Association of Unit Owners of Columbia Point Condominiums Component Summary By Category


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RoofingComposition Roof - Replacement 2008 2033 25 0 16 1 Total 508,469.70 508,470Roofing - Inspection (I) 2015 2017 2 0 0 1 Total 2,644.05 2,644Roofing - Preformed Metal 2007 2023 15 1 6 2,500 SF 12.70 31,750 Roofing - Total $542,864

DecksRear Deck Membrane - Replacement 2009 2024 15 0 7 48 Each 3,388.26 162,636 Decks - Total $162,636

LightingExterior Lighting - Replacement 2007 2017 10 0 0 1 Total 3,000.00 3,000 Lighting - Total $3,000

EquipmentCanvas Canopy 2014 2020 7 -1 3 1 Total 3,075.00 3,075Key Card System - Add 2013 2038 25 0 21 1 Total 11,294.22 11,294Recreation Center - Equipment Renewal 2013 2018 5 0 1 1 Total 6,610.11 6,610 Equipment - Total $20,979

Building ComponentExterior Siding - Replacement Phase (I) 2014 2019 5 0 2 1 Total 35,875.00 17,937Exterior Siding - Replacement Phase (II) 2013 2018 5 0 1 1 Total 35,875.00 17,937Exterior Stairs- Replacement 2017 2017 2017 1 0 0 1 Total 18,450.00 18,450Fireplace Chimneys - Inspection & Cleaning 2015 2017 2 0 0 1 Total 3,500.00 3,500Front Entry Decks - Re-Coat (I) 2009 2019 10 0 2 784 SF 10.16 7,965Front Entry Decks - Re-Coat (II) 2009 2044 10 25 27 784 SF 10.16 7,965Front Entry Decks - Repair 2009 2034 25 0 17 22 Total 7,627.05 167,795Handrails & Guardrails - Repair 2007 2037 30 0 20 1 Total 38,135.22 38,135Recreation Center - Bathrooms Unfunded Building Component - Total $279,686

Grounds ComponentAsphalt Walking Path - Repairs 2007 2020 12 1 3 5,055 SF 2.54 12,840Bridge: Walking Path & Railings - Repairs 2009 2030 20 1 13 2 Total 9,533.81 19,068Concrete Curbing & Wheel-stops 2007 2033 25 1 16 1 Total 4,627.07 4,627Concrete Pavement - Power Wash & Seal (.. 2016 2019 3 0 2 42,898 SF 0.56 24,023Concrete Paving - Driveways & Parking G.. 2009 2034 25 0 17 3,557 SF 15.90 56,567Concrete Walkways - Repair 2007 2032 25 0 15 587 SF 15.90 9,342Landscape/Irrigation - Repair 2016 2026 10 0 9 1 Total 10,250.00 10,250Parking Garage - Restripe 2010 2017 7 0 0 1 Total 2,562.50 2,562 Grounds Component - Total $139,279

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Streets/AsphaltAsphalt Walking Path - Seal Coat 2007 2017 4 6 0 5,055 SF 0.35 1,769 Streets/Asphalt - Total $1,769

Pool/SpaPool - Cover Replacement 2009 2019 10 0 2 1 Total 3,388.26 3,388Pool - Equipment - Filter/Chlorinator 2007 2018 10 1 1 1 Total 1,652.53 1,653Pool - Equipment - Heater 2006 2017 6 5 0 1 Total 4,715.00 4,715Pool - Equipment - Pump 2006 2019 6 7 2 1 Total 2,562.50 2,562Pool - Liner Replacement 2009 2019 10 0 2 1 Total 11,898.46 11,898Pool Deck, Concrete - Repairs 2007 2037 30 0 20 340 SF 15.90 5,412Recreation Center - Spa & Sauna Unfunded Pool/Spa - Total $29,629

MailboxesMailboxes - Replacement 2007 2033 25 1 16 1 Total 3,813.52 3,814 Mailboxes - Total $3,814

EquipmentIrrigation Project - Pump System UnfundedPhotovoltaic Electric Project UnfundedSwimming Pool - Solar Panels Unfunded

PaintExterior Siding - Painting (I) 2014 2019 5 0 2 1 Total 31,443.10 31,443Exterior Siding - Painting (II) 2013 2018 5 0 1 1 Total 32,504.76 32,505Handrails & Guardrails - Paint 2016 2022 6 0 5 1 Total 6,355.87 6,356Recreation Center - Interior Painting 2013 2036 10 13 19 1 Total 2,542.36 2,542 Paint - Total $72,846

WindowRecreation Center - Garden Style Window 2013 2063 25 25 46 1 Total 3,813.52 3,814 Window - Total $3,814

Gutters & DownspoutsGutters & Downspouts - Repair 2008 2033 25 0 16 1 Total 31,779.36 31,779 Gutters & Downspouts - Total $31,779

SignsSigns Unfunded

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InspectionsBuilding Envelope Inspection 1999 2024 25 0 7 1 Total 10,000.00 10,000Electrical Inspection 1999 2024 25 0 7 1 Total 10,000.00 10,000Plumbing Inspection 1999 2024 25 0 7 1 Total 10,000.00 10,000 Inspections - Total $30,000

Total Asset Summary $1,322,096

Revised 1/25/2017


Annual Expenditure Detail


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Description Expenditures

Replacement Year 2017Asphalt Walking Path - Seal Coat 1,769Exterior Lighting - Replacement 3,000Exterior Stairs- Replacement 2017 18,450Fireplace Chimneys - Inspection & Cleaning 3,500Parking Garage - Restripe 2,562Pool - Equipment - Heater 4,715Roofing - Inspection (I) 2,644

Total for 2017 $36,641

Replacement Year 2018Exterior Siding - Painting (II) 33,317Exterior Siding - Replacement Phase (II) 18,386Pool - Equipment - Filter/Chlorinator 1,694Recreation Center - Equipment Renewal 6,775

Total for 2018 $60,173

Replacement Year 2019Concrete Pavement - Power Wash & Seal (I) 25,239Exterior Siding - Painting (I) 33,035Exterior Siding - Replacement Phase (I) 18,846Fireplace Chimneys - Inspection & Cleaning 3,677Front Entry Decks - Re-Coat (I) 8,369Pool - Cover Replacement 3,560Pool - Equipment - Pump 2,692Pool - Liner Replacement 12,501Roofing - Inspection (I) 2,778

Total for 2019 $110,696

Replacement Year 2020Asphalt Walking Path - Repairs 13,827Canvas Canopy 3,311

Total for 2020 $17,138

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Replacement Year 2021Asphalt Walking Path - Seal Coat 1,953Fireplace Chimneys - Inspection & Cleaning 3,863Roofing - Inspection (I) 2,919

Total for 2021 $8,735

Replacement Year 2022Concrete Pavement - Power Wash & Seal (I) 27,180Handrails & Guardrails - Paint 7,191

Total for 2022 $34,371

Replacement Year 2023Exterior Siding - Painting (II) 37,696Exterior Siding - Replacement Phase (II) 20,802Fireplace Chimneys - Inspection & Cleaning 4,059Pool - Equipment - Heater 5,468Recreation Center - Equipment Renewal 7,666Roofing - Inspection (I) 3,066Roofing - Preformed Metal 36,820

Total for 2023 $115,577

Replacement Year 2024Building Envelope Inspection 11,887Electrical Inspection 11,887Exterior Siding - Painting (I) 37,376Exterior Siding - Replacement Phase (I) 21,322Parking Garage - Restripe 3,046Plumbing Inspection 11,887Rear Deck Membrane - Replacement 193,324

Total for 2024 $290,728

Replacement Year 2025Asphalt Walking Path - Seal Coat 2,156Concrete Pavement - Power Wash & Seal (I) 29,270

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Replacement Year 2025 continued...Fireplace Chimneys - Inspection & Cleaning 4,264Pool - Equipment - Pump 3,122Roofing - Inspection (I) 3,222

Total for 2025 $42,033

Replacement Year 2026Landscape/Irrigation - Repair 12,801

Total for 2026 $12,801

Replacement Year 2027Canvas Canopy 3,936Exterior Lighting - Replacement 3,840Fireplace Chimneys - Inspection & Cleaning 4,480Roofing - Inspection (I) 3,385

Total for 2027 $15,641

Replacement Year 2028Concrete Pavement - Power Wash & Seal (I) 31,520Exterior Siding - Painting (II) 42,649Exterior Siding - Replacement Phase (II) 23,536Handrails & Guardrails - Paint 8,339Pool - Equipment - Filter/Chlorinator 2,168Recreation Center - Equipment Renewal 8,673

Total for 2028 $116,885

Replacement Year 2029Asphalt Walking Path - Seal Coat 2,379Exterior Siding - Painting (I) 42,287Exterior Siding - Replacement Phase (I) 24,124Fireplace Chimneys - Inspection & Cleaning 4,707Front Entry Decks - Re-Coat (I) 10,713Pool - Cover Replacement 4,557Pool - Equipment - Heater 6,341

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Replacement Year 2029 continued...Pool - Liner Replacement 16,002Roofing - Inspection (I) 3,556

Total for 2029 $114,667

Replacement Year 2030Bridge: Walking Path & Railings - Repairs 26,285

Total for 2030 $26,285

Replacement Year 2031Concrete Pavement - Power Wash & Seal (I) 33,944Fireplace Chimneys - Inspection & Cleaning 4,945Parking Garage - Restripe 3,621Pool - Equipment - Pump 3,621Roofing - Inspection (I) 3,736

Total for 2031 $49,867

Replacement Year 2032Asphalt Walking Path - Repairs 18,596Concrete Walkways - Repair 13,530

Total for 2032 $32,126

Replacement Year 2033Asphalt Walking Path - Seal Coat 2,626Composition Roof - Replacement 754,826Concrete Curbing & Wheel-stops 6,869Exterior Siding - Painting (II) 48,253Exterior Siding - Replacement Phase (II) 26,628Fireplace Chimneys - Inspection & Cleaning 5,196Gutters & Downspouts - Repair 47,177Mailboxes - Replacement 5,661Recreation Center - Equipment Renewal 9,813Roofing - Inspection (I) 3,925

Total for 2033 $910,975

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Replacement Year 2034Canvas Canopy 4,679Concrete Pavement - Power Wash & Seal (I) 36,554Concrete Paving - Driveways & Parking Garage 86,074Exterior Siding - Painting (I) 47,844Exterior Siding - Replacement Phase (I) 27,294Front Entry Decks - Repair 255,320Handrails & Guardrails - Paint 9,671

Total for 2034 $467,436

Replacement Year 2035Fireplace Chimneys - Inspection & Cleaning 5,459Pool - Equipment - Heater 7,354Roofing - Inspection (I) 4,124

Total for 2035 $16,936

Replacement Year 2036Landscape/Irrigation - Repair 16,386Recreation Center - Interior Painting 4,064

Total for 2036 $20,451

Replacement Year 2037Asphalt Walking Path - Seal Coat 2,899Concrete Pavement - Power Wash & Seal (I) 39,364Exterior Lighting - Replacement 4,916Fireplace Chimneys - Inspection & Cleaning 5,735Handrails & Guardrails - Repair 62,489Pool - Equipment - Pump 4,199Pool Deck, Concrete - Repairs 8,869Roofing - Inspection (I) 4,333

Total for 2037 $132,804

Replacement Year 2038Exterior Siding - Painting (II) 54,594

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Replacement Year 2038 continued...Exterior Siding - Replacement Phase (II) 30,127Key Card System - Add 18,970Parking Garage - Restripe 4,304Pool - Equipment - Filter/Chlorinator 2,776Recreation Center - Equipment Renewal 11,102Roofing - Preformed Metal 53,327

Total for 2038 $175,200

Replacement Year 2039Exterior Siding - Painting (I) 54,132Exterior Siding - Replacement Phase (I) 30,881Fireplace Chimneys - Inspection & Cleaning 6,025Pool - Cover Replacement 5,833Pool - Liner Replacement 20,484Rear Deck Membrane - Replacement 279,990Roofing - Inspection (I) 4,552

Total for 2039 $401,897

Replacement Year 2040Concrete Pavement - Power Wash & Seal (I) 42,391Handrails & Guardrails - Paint 11,216

Total for 2040 $53,607

Replacement Year 2041Asphalt Walking Path - Seal Coat 3,200Canvas Canopy 5,562Fireplace Chimneys - Inspection & Cleaning 6,331Pool - Equipment - Heater 8,528Roofing - Inspection (I) 4,782

Total for 2041 $28,403

No Replacement in 2042

Replacement Year 2043Concrete Pavement - Power Wash & Seal (I) 45,651

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Replacement Year 2043 continued...Exterior Siding - Painting (II) 61,769Exterior Siding - Replacement Phase (II) 34,086Fireplace Chimneys - Inspection & Cleaning 6,651Pool - Equipment - Pump 4,869Recreation Center - Equipment Renewal 12,561Roofing - Inspection (I) 5,024

Total for 2043 $170,612

Replacement Year 2044Asphalt Walking Path - Repairs 25,009Exterior Siding - Painting (I) 61,245Exterior Siding - Replacement Phase (I) 34,939Front Entry Decks - Re-Coat (II) 15,515

Total for 2044 $136,708

Replacement Year 2045Asphalt Walking Path - Seal Coat 3,532Fireplace Chimneys - Inspection & Cleaning 6,988Parking Garage - Restripe 5,116Roofing - Inspection (I) 5,279

Total for 2045 $20,915

Replacement Year 2046Concrete Pavement - Power Wash & Seal (I) 49,161Handrails & Guardrails - Paint 13,007Landscape/Irrigation - Repair 20,976Recreation Center - Interior Painting 5,203

Total for 2046 $88,346

Revised 1/25/2017


Detail Report by Category


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Composition Roof - Replacement

Asset ID 1001Capital

RoofingPlaced in Service November 2008

Useful Life 25Replacement Year 2033

Remaining Life 16

1 Total @ $508,469.70Asset Cost $508,469.70

Percent Replacement 100%Future Cost $754,826.13

This provision funds for the composition roof, which is currently being installed in 2008 to replace the concrete tile roof on all five buildings.

According to the Association, there are approximately 46,581 square feet of the concrete tile roof.

MSR Services, Inc. performed an inspection on the roof, and indicated that the roof is concrete tiles over wood battens which are mechanically fastened through asphalt saturated felt into a plywood roof substrate. During the inspection, MSR provided the following information:

While the concrete tile might be sustaining its longevity as installed, the underlying system of battens and felt have run their life cycle.

Ventilation is non-existent at the structural members (cavity or interstitial space below deck) from the exterior wall to the peak. Ventilation appears to be challenged in that it does not meet one square foot in 150 square feet of attic/above ceiling air space.

Penetrating items through the roof deck do not appear to be detailed to a standard that resists the infiltration of water. Penetrating items through the roof assembly include plumbing vent pipes, exhaust vents for air transfer and exhaust vents for furnace, stove and other energized gases.

Walls between second floor decks (pony wall assembly) are capped with tile but in a manner such that there may be infiltration through fasteners. Also, transition points at the top and the bottom of these walls details appear to allow for the infiltration of water.

According to Scott Rich with MSR Services, Inc., the concrete tile roof is currently to be replaced with composition shingle roof. This roof replacement is currently in progress for 2008. A cost of $400,000 was provided by Scott for the replacement of concrete tile roof to composition roof.

According to the Association, the roof was completed in 2009.

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Composition Roof - Replacement continued...

Useful life estimates were provided by Board.

Roofing - Inspection (I)

Asset ID 1026Non-Capital

RoofingPlaced in Service January 2015


Remaining Life 0

1 Total @ $2,644.05Asset Cost $2,644.05


This provision funds for periodic inspection of the roofing, flashing, and related surfaces. This visual inspection is necessary to maintain the integrity of the roof and to insure against water penetration.

According to Scott Rich with MSR Services, Inc., the concrete tile roof is being replaced with composition shingle roof. This roof replacement is currently in progress in 2008.

According to the Association, roof replacements will not be complete until 2009; therefore, they would like roofing inspection to begin in 2012.

Roofing - Preformed Metal


RoofingPlaced in Service January 2007

Useful Life 15Adjustment 1

Replacement Year 2023Remaining Life 6

5,000 SF @ $12.70Asset Cost $31,750.00


This provision funds for ongoing repairs to the preformed metal roofing as needed.

According to the Association, there are approximately 50 squares of the metal roofing or 5,000 square feet.

According to Micheline with T.T. & L Sheet Metal Roofing (503-641-0552), the cost to

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Roofing - Preformed Metal continued...

replace the metal roofing is $8 to $10 per square foot.

According to Scott Rich with MSR Services, Inc., the preformed metal roof is in good condition, and will not be replaced during the replacement of the concrete tile roof. Scott recommended a useful life of every 15 years to do repairs and/or replacement if needed.

This work should be performed by a qualified roofing contractor.

Roofing - Total Current Cost $542,864

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Rear Deck Membrane - Replacement

Asset ID 1066CapitalDecks

Placed in Service January 2009Useful Life 15


48 Each @ $3,388.26Asset Cost $162,636.48


This is a provision to fund for the rear decks at the second floor living units.

The association indicated that there are 48 decks on the second floor.

Schwindt and Company estimated the decks to measure 130 square feet each.

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

The Association should obtain a bid to confirm this estimate.

Decks - Total Current Cost $162,636

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Exterior Lighting - Replacement


LightingPlaced in Service January 2007


Remaining Life 0

1 Total @ $3,000.00Asset Cost $3,000.00


This is a provision to fund for the exterior lighting fixtures if needed.

According to the Association, there are 14 path lights, five parking lights at the garage; and four lights underneath the pedestrian deck; a total of 23 exterior lights..

Cost and useful life is based on estimates established on RS Means and/or the National Estimator.

Note: This provision is for an anticipated expense. If the cost to maintain the exterior lighting is determined to be different than the amount listed here, this study should be updated accordingly.

Lighting - Total Current Cost $3,000

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Canvas Canopy


EquipmentPlaced in Service January 2014

Useful Life 7Adjustment -1


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


This is a provision to fund for the canvas canopy at the mailboxes.

According to Judy Saleg, the canvas has a useful life of five to seven year. According to the Association, this was replaced in 2014 for $2,880

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

According to the Association, the canvas canopy was replaced in 2004.

Key Card System - Add




Remaining Life 21

1 Total @ $11,294.22Asset Cost $11,294.22


This provision is for the addition of a keycard entry system to the common recreation areas.

The Association should obtain a bid for this item.


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

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Recreation Center - Equipment Renewal




Remaining Life 1

1 Total @ $6,610.11Asset Cost $6,610.11


This provision creates a funding cycle to be used for renewal and/or replacement of exercise equipment in the recreation center if needed.

Useful life is based on estimates established on RS Means and/or the National Estimator.

Equipment - Total Current Cost $20,979

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Exterior Siding - Replacement Phase (I)


Building ComponentPlaced in Service January 2014


Remaining Life 2

1 Total @ $35,875.00Asset Cost $17,937.50


This is a provision to fund for the exterior cedar siding.

According to the Association, there is approximately 45,949 square feet of cedar siding at the buildings. There is a total of 11,350 square feet of the second floor deck siding (walls). There is a total of 1,130 square feet of the pool wall siding. There is a total of 479 square feet of the pool house siding. There is a total of 58,908 square feet of the cedar siding.

MSR Services, Inc. performed an inspection on sidings around the window areas and found potentials for water infiltration. MSR did not perform extensive evaluation or destructive testing on the cladding. A variety of locations throughout the structures show the wood siding has absorbed moisture to the point of the formation of rot. Gaps at the trim to fenestration have allowed for the infiltration of moisture.

MSR Services, Inc. indicated that the parapet wall assemblies between the second floor decks over living space have been aggressively strained with the addition of a roof diverter above the deck at a third-floor window. This diverter is intended to direct water to each end thus keeping it from proceeding over the third story window, landing upon the metal roof structure. This has loaded the parapet's protective cap. The parapet wall is roofed with tile, metal, and a barrier underneath. Those walls which have been reviewed by this Inspector have allowed for the infiltration of moisture underneath. A review of previous work orders clearly show that many challenges experienced within units located at the first or even second level occur at this juncture. With the volume of roof above and its water load being directed towards this wall assembly, MSR recommends a waterproof barrier system be designed to handle this extreme volume of water.

During Schwindt & Company's site visit, Scott Rich with MSR Services, Inc. indicated that the cedar siding has run its life cycle. There are holes in some of the siding. Scott provided an estimated replacement cost of $300,000 to $400,000 for the replacement of the siding within the next few years. Scott indicated that the cost includes $4,000 to $5,000 for design work.

Scott recommend replacing the siding in 2010.

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Exterior Siding - Replacement Phase (I) continued...

The Association has decided to do repairs as the siding is painted. The Association has approved $31,000 of repairs in 2012 and 2013.

The useful life estimates of this component are based on accepted industry estimates as established by the National Construction Estimator.

Exterior Siding - Replacement Phase (II)




Remaining Life 1

1 Total @ $35,875.00Asset Cost $17,937.50


This is a provision to fund for the exterior cedar siding.

According to the Association, there is approximately 45,949 square feet of cedar siding at the buildings. There is a total of 11,350 square feet of the second floor deck siding (walls). There is a total of 1,130 square feet of the pool wall siding. There is a total of 479 square feet of the pool house siding. There is a total of 58,908 square feet of the cedar siding.

MSR Services, Inc. performed an inspection on sidings around the window areas and found potentials for water infiltration. MSR did not perform extensive evaluation or destructive testing on the cladding. A variety of locations throughout the structures shows the wood siding has absorbed moisture to the point of the formation of rot. Gaps at the trim to fenestration have allowed for the infiltrations of moisture.

MSR Services, Inc. indicated that the parapet wall assemblies between the second floor decks over living space have been aggressively strained with the addition of a roof diverter above the deck at a third-floor window. This diverter is intended to direct water to each end thus keeping it from proceeding over the third story window, landing upon the metal roof structure. This has loaded the parapet's protective cap. The parapet wall is roofed with tile, metal, and a barrier underneath. Those walls that have been reviewed by this Inspector have allowed for the infiltration of moisture underneath. A review of previous work orders clearly show that many challenges experienced within units located at the first or even second level occur at this juncture. With the volume of roof above and its water load being directed towards this wall assembly, MSR recommends a waterproof barrier system be designed to handle this extreme

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Exterior Siding - Replacement Phase (II) continued...

volume of water.

During Schwindt & Company's site visit, Scott Rich with MSR Services, Inc. indicated that the cedar siding have run its life cycle. There are holes in some of the siding. Scott provided an estimated replacement cost of $300,000 to $400,000 for the replacement of the sidings within the next few years. Scott indicated that the cost includes $4,000 to $5,000 for designs.

Scott recommend replacing the sidings in 2010.

The Association has decided to do repairs as the siding is painted. The Association has approved $31,000 of repairs in 2012 and 2013.

Useful life estimates of this component are based on accepted industry estimates as established by the National Construction Estimator.

Exterior Stairs- Replacement 2017




Remaining Life 0

1 Total @ $18,450.00Asset Cost $18,450.00


This is a provision to fund for the exterior stairs in 2017.

Fireplace Chimneys - Inspection & Cleaning




Remaining Life 0

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


This is a provision to fund for the inspection and cleaning of the fireplace chimneys.

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Fireplace Chimneys - Inspection & Cleaning continued...

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

Front Entry Decks - Re-Coat (I)




Remaining Life 2

784 SF @ $10.16Asset Cost $7,965.44


This component provides funding for re-coating the front entry decks.

The Association indicated that there is 784 square feet of the concrete pedestrian decks on the second floor.

According to Scott Rich, an additional coat of liquid membrane should be applied to the front entry decks every 10 years, after the replacement in 2009. Scott provided a cost of $5-$8 per square feet to re-coat the decks.

Front Entry Decks - Re-Coat (II)





784 SF @ $10.16Asset Cost $7,965.44


This component provides funding for re-coating the front entry decks.

The Association indicated that there are 784 square feet of the concrete pedestrian decks on the second floor.

According to Scott Rich, an additional coat of liquid membrane should be applied to the front entry decks every 10 years, after the replacement in 2009. Scott provided a cost of $5-$8 per

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Front Entry Decks - Re-Coat (II) continued...

square feet to re-coat the decks.

Front Entry Decks - Repair




Remaining Life 17

22 Total @ $7,627.05Asset Cost $167,795.10


This component provides funding for renewal of the concrete front entry decks, which is known as pedestrian decks in MSR Services, Inc.'s report.

According to Scott Rich, the pedestrian decks will be replaced in 2009, a cost of $5,000 plus $1,000 additional for rot repairs, per pedestrian deck, for a total cost of $6,000 per pedestrian deck.

According to Allen Zachary with Case Forensics, there are a total of 22 front entry decks.

MSR Services, Inc. performed an inspection to the pedestrian decks at the second level. MSR recommends protecting the decks leading to the entry of the second floor units in a similar fashion to those decks leading from the parking structure. In doing this, the system would need to be modified such that the structural metal would not be encapsulated unless all the oxidation has been terminated.

MSR Services, Inc. indicated that the concrete pedestrian decks leading from the parking structure to the respective units at the second floor entrances are not protected at this time. There are areas where the concrete intersects with a dissimilar material, which is allowing for the intrusion of water. Corrosion was observed at the metal surfaces along with intrusion through the concrete, as presented by staining on the underside of the pedestrian decking. Also, there appears to be ponding water at the concrete to steel juncture. Drainage and proper slope is questionable and to be determined. Transition from threshold to wall may be inadequately flashed to prevent the intrusion of water.

MSR Services, Inc. suggests that once the evaluation of the reinforcement is completed, and any repairs are completed, the concrete pedestrian deck should be coated with either an elastomeric pedestrian-grade material or polymer-modified reinforced cement-based slurry. This coating should prevent the infiltration of water by protecting the horizontal exposure of

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Front Entry Decks - Repair continued...

the decking. Also, this coating should provide a tread-surface with safety traction in its application.

Handrails & Guardrails - Repair




Remaining Life 20

1 Total @ $38,135.22Asset Cost $38,135.22


This provision is to repair all the exposed metal exterior handrails and guardrails at all common areas.

According to the Association, the guardrails at Building C and D are approximately 297 linear feet, the guardrail at the terrace of Building A and B is approximately 840 linear feet, the guardrails and handrails on the bridge and on top of the stairs are approximately 209 linear feet, the handrails on the stairs are approximately 676 linear feet, and the guard rail at the garage and upper decks is approximately 530 linear feet. There is a total estimated length of 2,552 linear feet of the handrails and guardrails.



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Recreation Center - Bathrooms




Remaining Life 8

1 Total @ $6,355.87Asset Cost $6,355.87


This is a provision to fund for the bathrooms in the recreation room.

During Schwindt & Company's site visit, there are two bathrooms in the recreation room.

According to the Association, one bathroom was renovated in 2010. The other will be renovated in the 2013 planned renovation.

Useful life estimates are established on Fannie Mae Expected Useful Life Tables and Forms.

Building Component - Total Current Cost $279,686

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Asphalt Walking Path - Repairs


Grounds ComponentPlaced in Service January 2007



5,055 SF @ $2.54Asset Cost $12,839.70


This is a provision to fund for major repairs to the asphalt walking path.

Cost is based on A per square foot estimate provided by Bob Knott (503-783-4308) with Kodiak Pacific Construction.

Useful Life estimates are established on RS Means and/or the National Estimator.

Bridge: Walking Path & Railings - Repairs





2 Total @ $9,533.81Asset Cost $19,067.62


This is a provision to repair the two bridges and railings at the walking path.

According to the Association, there are two bridges at the walking path. A repair cost of $7,500 per bridge; a total of $15,000 was to occur in 2009.


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Concrete Curbing & Wheel-stops





1 Total @ $4,627.07Asset Cost $4,627.07


This provision is to repair or replace the continuous curb with an estimated length of 564 linear feet, and 118 wheel-stops per the Association.

The cost for this component assumes that half of the concrete wheel stops, and approximately 10% of the concrete curbing will require replacement in twenty-five years.

Concrete Pavement - Power Wash & Seal (I)




Remaining Life 2

42,898 SF @ $0.56Asset Cost $24,022.88


This provision funds for periodic power-washing and sealing of the concrete driving and parking surfaces, the concrete pool deck area, and concrete walkway to remove grease stains and debris build-up as needed.

According to the Association, there is approximately 24,228 square feet of the parking garage; 11,349 square feet of the parking area at each building; 3,404 square feet of the pool deck concrete area; and 3,917 square feet of the concrete walkway; for a total of 42,898 square feet of the concrete area. Concrete pavement power washing was done in 2003 by an HOA volunteer.

The Association would like this component to occur every five years per Board meeting.

Cost is based on a per square foot estimate provided by Ken Verhaalen with Verhaalen Painting, Inc.

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Concrete Paving - Driveways & Parking Garage




Remaining Life 17

35,577 SF @ $15.90Asset Cost $56,567.43


This provision funds for the partial replacement and/or repair of the common area driveways and the parking garage. Since the expected useful life of a typical concrete driveway and parking installation is greater than 30 years, this provision only funds for the replacement of a percentage of the total driveways and parking.

Routine maintenance and repair should occur on an ongoing basis throughout the life of the component.

According to the Association, there is approximately 24,228 square feet of the parking garage, and 11,349 square feet of the parking area at each building; a total of 35,577 square feet of the concrete area.

According to Scott Rich with MSR Services, Inc., the concrete garage has cracks, and will be repaired. A proposal was provided by D&R Masonry Restoration, Inc. for repairs to the concrete garage. An estimated cost of $2,475 was provided by Dan Elkins with D&R Masonry Restoration, Inc. The cost estimate include the following scope of work:

D&R will remove the existing spall as per conversation in two locations

Prep the rebar and treat it with a rust inhibitor to prevent further rusting of the steal.

D&R will install a patching mortar to the area and shape to match the existing.

The product that will be used for this repair is called Thorite by Thoro products.

Cost is based on a per square foot estimates provided by Kal's Paving.

The cost of $2,475 provided by D&R Masonry Restoration, Inc. is only for the repairs of the parking garage that will occur in 2009. Therefore, Kal's Paving cost is used in the study to budget for the repairs of the driveways along with the parking garage.

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Concrete Paving - Driveways & Parking Garage continued...

Useful life is based on estimates provided by RS Means and/or the National Estimator.

Concrete Walkways - Repair




Remaining Life 15

3,917 SF @ $15.90Asset Cost $9,342.04


This provision funds for partial repairs and/or replace to the common area walkways. Since the expected useful life of a typical concrete walkway installation is greater than 30 years, this provision only funds for the replacement of a percentage of the total walkway.

According to the Association, there are approximately 3,917 square feet of the concrete walkway area.

Foundations around the trees are cracking, and will be repaired and/or remediated in 2010 per the Board.

During Schwindt & Company's site visit, Scott Rich with MSR Services, Inc. indicated that overgrown tree roots are causing damage to the concrete walkways. Scott suggests removing the trees.

Routine maintenance and repair should occur on an ongoing basis throughout the life of the component.

Cost is based on a per square foot estimate provided by Kal's Paving.


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Landscape/Irrigation - Repair




Remaining Life 9

1 Total @ $10,250.00Asset Cost $10,250.00


This provision is for the renovation of the landscaping or repair of the irrigation system.

The Association plans to budget $10,000 every 10 years for this work.

Parking Garage - Restripe




Remaining Life 0

1 Total @ $2,562.50Asset Cost $2,562.50


This is a provision to fund for the re-striping of the parking garage.

The Board would like this component to begin in 2009, and every seven years thereafter. The Board provided a cost of $2,500 for this work.

According to the Association, this was done in 2010.

Grounds Component - Total Current Cost $139,279

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Asphalt Walking Path - Seal Coat


Streets/AsphaltPlaced in Service January 2007



5,055 SF @ $0.35Asset Cost $1,769.25


This provision is to seal coat the asphalt walking path.

Maintenance of asphalt paving includes the periodic application of an asphalt emulsion sealer or "seal coat". This work should be performed by a licensed paving contractor.

Estimated area is per the Association.

Cost is based on a per square foot estimate provided by Bob Knott (503-783-4308) with Kodiak Pacific Construction.


Streets/Asphalt - Total Current Cost $1,769

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Pool - Cover Replacement


Pool/SpaPlaced in Service January 2009


Remaining Life 2

1 Total @ $3,388.26Asset Cost $3,388.26


This provision funds for replacement of the swimming pool cover every ten years.

Per the Association, the cover was purchased in 2009.




Pool - Equipment - Filter/Chlorinator





1 Total @ $1,652.53Asset Cost $1,652.53


This provision funds for replacement of the swimming pool filter and chlorinator every five years.

According to Judy Saleg, the pool filter/chlorinator was replaced in 2007, and should last until 2017.

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Pool - Equipment - Heater





1 Total @ $4,715.00Asset Cost $4,715.00


This provision funds for replacement of the swimming pool heater.

According to Judy Saleg, the pool heater and pump were replaced in 2006, and have a life of five to six years. The Association suggests scheduling this component to occur in 2017.

Pool - Equipment - Pump





1 Total @ $2,562.50Asset Cost $2,562.50


This provision funds for replacement of the swimming pool circulation pump.

According to Judy Saleg, the pool heater and pump were replaced in 2006, and have a life of five to six years. The Association suggests scheduling this component to occur in 2017.

Pool - Liner Replacement




Remaining Life 2

1 Total @ $11,898.46Asset Cost $11,898.46


This provision funds for replacement of the swimming pool liner every ten years.

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Pool - Liner Replacement continued...

Per the Association, the liner was replaced in 2009.




Pool Deck, Concrete - Repairs




Remaining Life 20

3,404 SF @ $15.90Asset Cost $5,412.36


This is a provision to fund for partial repairs to the concrete pool deck.

According to the Association, there is approximately 3,404 square feet of the concrete pool deck.

Per Board meeting, the pool deck will be repaired in 2012.


Cost is based on a per square foot estimate provided by Kal's Paving.

Recreation Center - Spa & Sauna




Remaining Life 0

1 Total @ $19,067.61Asset Cost $19,067.61


At the time of this report, the spa is closed. The Association is considering removing the sauna

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Recreation Center - Spa & Sauna continued...

and spa.

This provision is included to provide funding for major repair to the spa and sauna.

Per Board meeting, major repairs to the spa and sauna will occur in 2011, a cost of $15,000. This cost includes the repairs and/or replacements to the garden style window.

Pool/Spa - Total Current Cost $29,629

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Mailboxes - Replacement


MailboxesPlaced in Service January 2007



1 Total @ $3,813.52Asset Cost $3,813.52


This is a provision to fund for the replacement of the mailboxes if needed.

Useful life and cost estimates are established on RS Means and/or the National Estimator.

Mailboxes - Total Current Cost $3,814

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Irrigation Project - Pump System


EquipmentPlaced in Service December 2008

No Useful Life

1 Total @ $50,846.97Asset Cost

Future Cost

Memo Only Per Board Meeting

This is a provision to fund for the pump system per Board.

According to the Association, the pump system is to pump water from the Columbia River to water plants. This is a three year process, and will cost $40,000. This component will need to be reviewed and updated when information becomes available.

Photovoltaic Electric Project



No Useful Life

1 Total @ $63,558.71Asset Cost

Future Cost

Memo Only Per Board Meeting

This is a provision to fund for the photovoltaic electric project. The Association is planning to have a major electric system built. Cost of $50,000 was provided by the Board.

Swimming Pool - Solar Panels



No Useful Life

Asset Cost

Future Cost

Per Board meeting, the Association may invest in solar panels to heat the swimming pool. The Association will fund for the acquisition of this component. This component will need to be reviewed and updated when information becomes available.

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Equipment - Total Current Cost $0

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Exterior Siding - Painting (I)


PaintPlaced in Service January 2014


Remaining Life 2

1 Total @ $31,443.10Asset Cost $31,443.10


This provision funds for the periodic painting of the exterior wood siding and related building components. The siding is a bevel cedar siding. This will include painting all exterior trim, doors, and any exposed wood structure, as well as renewal of all exterior caulking and sealants.

According to the Association, there is approximately 45,949 square feet of cedar siding at the five buildings. There is a total of 11,350 square feet of the second floor deck siding (walls). There is a total of 1,130 square feet of the pool wall siding. There is a total of 479 square feet of the pool house siding. There is a total of 58,908 square feet of the cedar siding.

According to the Association, the buildings will be painted over 2 years.

The cost is based on and estimate received by the Association from Jon Bake Painting.

Exterior Siding - Painting (II)




Remaining Life 1

1 Total @ $32,504.76Asset Cost $32,504.76


This provision funds for the periodic painting of the exterior wood siding and related building components. The siding is a bevel cedar siding. This will include painting all exterior trim, doors, and any exposed wood structure, as well as renewal of all exterior caulking and sealants.

According to the Association, there is approximately 45,949 square feet of cedar siding at the five buildings. There is a total of 11,350 square feet of the second floor deck siding (walls). There is a total of 1,130 square feet of the pool wall siding. There is a total of 479 square feet of the pool house siding. There is a total of 58,908 square feet of the cedar siding.

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Exterior Siding - Painting (II) continued...

According to the Association, the buildings will be painted over 2 years.

The cost is based on and estimate received by the Association from Jon Bake Painting.

Handrails & Guardrails - Paint




Remaining Life 5

1 Total @ $6,355.87Asset Cost $6,355.87


This provision is to paint all the exposed metal exterior handrails and guardrails at all common areas. This procedure follows the same schedule as other exterior painting procedures.

According to the Association, the guardrails at Building C and D are approximately 297 linear feet, the guardrail at the terrace of Building A and B is approximately 840 linear feet, the guardrails and handrails on the bridge and on top of the stairs are approximately 209 linear feet, the handrails on the stairs are approximately 676 linear feet, and the guard rail at the garage and upper decks is approximately 530 linear feet. There is a total estimated length of 2,552 linear feet of the handrails and guardrails.

Per Board meeting, handrails and guardrails will be replacing with anodized painting surfaces, which only need touch up paint. A cost of $5,000 was provided by Board.

According to the Association, the railings on the stairways and by the pool were painted in 2010.

Useful life estimates are established on RS Means and/or the National Estimator.

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Recreation Center - Interior Painting

Asset IDNon-Capital




1 Total @ $2,542.36Asset Cost $2,542.36


This provision is for painting all the interior surfaces in the recreation center.

This assumes the recreation center is painted in the planned 2013 renovation.

A cost of $2,000 was provided by the Board.


Paint - Total Current Cost $72,846

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Recreation Center - Garden Style Window


WindowPlaced in Service January 2013



1 Total @ $3,813.52Asset Cost $3,813.52


This is a provision to fund for the garden style window at the recreation room. This assumes the windows are repaired in the 2013 renovation.

The useful life is based on estimates established on RS Means and/or the National Estimator.

Window - Total Current Cost $3,814

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Gutters & Downspouts - Repair


Gutters & DownspoutsPlaced in Service November 2008


Remaining Life 16

1 Total @ $31,779.36Asset Cost $31,779.36


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

All ongoing expenses for cleaning, maintenance and minor repairs should be included in the annual operating budget for the association.

According to the Association, there is approximately 1,889 linear feet of the gutter, and 519 linear feet of the downspouts.

During Schwindt & Company's site visit, Scott Rich with MSR Services, Inc. indicated that the gutters and downspouts will be replaced in 2008 during the roof replacement. Scott provided an estimated cost of $22,000 to $25,000 for the gutters and downspout replacement.

Useful life estimates coincides with the roofing replacement.

Gutters & Downspouts - Total Current Cost $31,779

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Signs


SignsPlaced in Service December 2008

No Useful Life

Asset Cost

Future Cost

Memo Only per Board Meeting

This is a provision to fund for signage around the buildings, and a sign map. This component is unfunded at this time. This component will need to be reviewed and updated when information becomes available.

Signs - Total Current Cost $0

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Building Envelope Inspection

Asset ID 1070Non-CapitalInspections



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


This provision is for a building envelope inspection. Generally the life of the building envelope is greater than 30 years. We recommend the Association perform an inspection to determine the current condition of the system. Once the condition is known the reserve study should be updated.

Electrical Inspection




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


This provision is for an electrical inspection. Generally the life of the electrical system is greater than 30 years. We recommend the Association perform an inspection to determine the current condition of the system. Once the condition is known the reserve study should be updated.

Plumbing Inspection




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


This provision is for a plumbing inspection, including water supply and sewer system.

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Plumbing Inspection continued...

Generally the life of the plumbing system is greater than 30 years. We recommend the Association perform an inspection to determine the current condition of the system. Once the condition is known the reserve study should be updated.

Inspections - Total Current Cost $30,000

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Association of Unit Owners of Columbia Point Condominiums Category Detail Index


PAGE 70 of 76

Asset IDDescription Replacement Page

Roofing1001 Composition Roof - Replacement 2033 35 of 761026 Roofing - Inspection (I) 2017 36 of 761002 Roofing - Preformed Metal 2023 36 of 76

Decks1066 Rear Deck Membrane - Replacement 2024 38 of 76

Lighting1019 Exterior Lighting - Replacement 2017 39 of 76

Equipment1035 Canvas Canopy 2020 40 of 761064 Key Card System - Add 2038 40 of 761025 Recreation Center - Equipment Renewal 2018 41 of 76

Building Component1004 Exterior Siding - Replacement Phase (I) 2019 42 of 761052 Exterior Siding - Replacement Phase (II) 2018 43 of 761069 Exterior Stairs- Replacement 2017 2017 44 of 761073 Fireplace Chimneys - Inspection & Cleaning 2017 44 of 761028 Front Entry Decks - Re-Coat (I) 2019 45 of 761039 Front Entry Decks - Re-Coat (II) 2044 45 of 761007 Front Entry Decks - Repair 2034 46 of 761011 Handrails & Guardrails - Repair 2037 47 of 761034 Recreation Center - Bathrooms Unfunded 48 of 76

Grounds Component1048 Asphalt Walking Path - Repairs 2020 49 of 761059 Bridge: Walking Path & Railings - Repairs 2030 49 of 761014 Concrete Curbing & Wheel-stops 2033 50 of 761027 Concrete Pavement - Power Wash & Seal (I) 2019 50 of 761012 Concrete Paving - Driveways & Parking Garage 2034 51 of 761013 Concrete Walkways - Repair 2032 52 of 761063 Landscape/Irrigation - Repair 2026 53 of 76

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Grounds Component Continued...1046 Parking Garage - Restripe 2017 53 of 76

Streets/Asphalt1017 Asphalt Walking Path - Seal Coat 2017 54 of 76

Pool/Spa1021 Pool - Cover Replacement 2019 55 of 761022 Pool - Equipment - Filter/Chlorinator 2018 55 of 761067 Pool - Equipment - Heater 2017 56 of 761023 Pool - Equipment - Pump 2019 56 of 761065 Pool - Liner Replacement 2019 56 of 761030 Pool Deck, Concrete - Repairs 2037 57 of 761015 Recreation Center - Spa & Sauna Unfunded 57 of 76

Mailboxes1033 Mailboxes - Replacement 2033 59 of 76

Equipment1045 Irrigation Project - Pump System Unfunded 60 of 761044 Photovoltaic Electric Project Unfunded 60 of 761049 Swimming Pool - Solar Panels Unfunded 60 of 76

Paint1006 Exterior Siding - Painting (I) 2019 62 of 761061 Exterior Siding - Painting (II) 2018 62 of 761029 Handrails & Guardrails - Paint 2022 63 of 76

Recreation Center - Interior Painting 2036 64 of 76

Window1037 Recreation Center - Garden Style Window 2063 65 of 76

Gutters & Downspouts1003 Gutters & Downspouts - Repair 2033 66 of 76

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Signs1051 Signs Unfunded 67 of 76

Inspections1070 Building Envelope Inspection 2024 68 of 761072 Electrical Inspection 2024 68 of 761071 Plumbing Inspection 2024 68 of 76

Total Funded Assets 41Total Unfunded Assets 6Total Assets 47

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Additional Disclosures

Levels of Service

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

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

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

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

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

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

Terms and Definitions

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

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

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

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

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

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

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

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

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

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

the Association or cooperative.

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

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

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

observed or reported characteristics.

CURRENT REPLACEMENT COST: See Replacement Cost.

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

would be a Surplus.

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

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

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

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

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

of a Reserve Study.

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

Balance.

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

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

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

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

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

FFB = Current Cost X Effective Age / Useful Life

or

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

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

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

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

funding. The Association appears to be adequately funded as the threshold method.

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

Funding Plan goals:

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

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

funded.

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

reserves required by local statues.

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

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

conservative than fully funding.

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

from that fund.

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

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

repair or Replacement Costs for the reserve Components.

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

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

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

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

Reserve Study.

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

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

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

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

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

Component during that particular year.

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

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

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

provided and not audited.

RESERVE PROVIDER: An individual that prepares Reserve Studies.

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

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

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

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

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

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

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

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

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

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

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

Revised 1/25/2017

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