chuma a. cos-0kpalla

L M C O N S U L T A N T S , I N C . 750 EAST BUNKER COURT, SUITE 100, VERNON HILLS, IL 60061

TE L : 847-573-1717 FA X : 847-573-9737 TO L L F R E E : 1-888-431-1457 W E B S I T E : W W W.LMCONSULTANTS.COM AT L A N T A CH I C A G O DA L L A S D E N V E R FO R T L A U D E R D A L E L O S AN G E L E S N E W YO R K

December 10, 2010 Ms. April Lynn Tuey Association Manager PRINCIPAL MANAGEMENT GROUP 3211 Internet Boulevard, Suite 370 Frisco, TX 75034 Re: LEVEL I: FULL RESERVE STUDY VILLAGE ON THE GREEN McKinney, Texas LM Project No. 4234.001 Dear Ms. Tuey: Thank you for your consideration of LM Consultants, Inc. in performing the professional consulting services. Enclosed please find our Level I: Full Reserve Study for the referenced property, with captioned color photo images of the conditions observed at the time of our visit. If there are any questions concerning anything contained in the Report, or if we can be of further assistance, please contact our Corporate office at (847) 573-1717. Sincerely, LM CONSULTANTS, INC.

Chuma A. Cos-0kpalla Chuma A. Cos-Okpalla, PhD, PE Principal Engineer [email protected] CAC/CRH/mh Encl.: Level I: Full Reserve Study

L M C O N S U L T A N T S , I N C . 750 EAST BUNKER COURT, SUITE 100, VERNON HILLS, IL 60061

TE L : 847-573-1717 FA X : 847-573-9737 TO L L F R E E : 1-888-431-1457 W E B S I T E : W W W.LMCONSULTANTS.COM AT L A N T A CH I C A G O DA L L A S DE N V E R FO R T L A U D E R D A L E LO S AN G E L E S NE W YO R K

LEVEL I: FULL RESERVE STUDY PROPERTY NAME: Village on the Green PROPERTY LOCATION: 4798 Stone Gate Trail

McKinney, Texas CLIENT: Principal Management Group LM PROJECT NO.: 4234.001 DATE OF OBSERVATION: October 13, 2010 OBSERVATION BY: Chuma A. Cos-Okpalla, Professional Engineer REPORT REVIEWED BY: Christian R. Heer, Professional Engineer REPORT ISSUE DATE: December 10, 2010 SITE CONTACT: April Tuey, Senior Association Manager

Principal Management Group PROJECT DOCUMENTS: Landscape Drawings ATTACHMENTS: Replacement Reserve Schedule Cash Flow Analysis Marshall & Swift Estimates Code Check Request and Response Record Photographs

LEVEL I: FULL RESERVE STUDY VILLAGE ON THE GREEN

4798 Stone Gate Trail McKinney, Texas

December 10, 2010

LM Project No. 4234.001 Page 2 of 25

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION The subject property includes 32 two-story, 145-unit condominium buildings. Condominium units have townhouse-style configurations. Each unit has a two-car garage located on the 1st floor. The property is located southeast of the intersection of Eldorado Parkway and Lake Forest Drive in McKinney, Texas. The property encompasses 11.56 acres. The property was reportedly developed between 2003 and 2006 by and for Pasquinelli Portrait Homes.

PROCEDURES AND LIMITATIONS The investigation and resulting Report were prepared in accordance with the Agreement for Property Evaluation Services between the Client and LM Consultants, Inc. The findings contained in this Report are based on the conditions visually observed at the time of our site visit. No samples were taken, no tests were performed, no equipment was operated, and no construction materials were removed to inspect underlying structure or systems. The findings of the investigation and Report are not intended to warrant or guarantee the performance of any property component or system. Conditions often change with the passage of time. This evaluation and Report were prepared for the exclusive use of the Client.

PROPERTY CONDITION/COST ESTIMATE TO CORRECT Based upon our on-site observations, the property improvements were found to be in generally good condition for a development of this type and age. There were, however, conditions observed at the time of our site visit that require repair and/or replacement. Significant issues include foundation wall and garage driveway pavement cracking. A listing of these and other noted conditions is outlined within the Property Condition section of this Report. A summary of the estimated costs for the noted conditions that are considered to require repair/replacement within the next year is as follows:

Code Compliance/Life Safety Issues Subtotal $100.00 ADA/FHAA Barrier Removal Issues Subtotal $0.00 Deferred Maintenance/Property Deficiency Subtotal $8,400.00 Cost Estimate Total $8,500.00



December 10, 2010


See the attached Replacement Reserve Schedule for anticipated future capital repair/replacement costs.

FUND STATUS AND FUNDING PLAN The current reserve fund balance was reported to be approximately $207,999 as of December 8, 2010, and the Association will currently reserve an additional $6,167 in 2010. As of this Report, the fully funded balance is computed to be $594,980, and the current immediate property needs are $8,500 for a total fully funded balance of $603,480, which represents that the reserve fund is 34% funded. This currently represents a mid-range, or “fair”, reserve fund status. We have developed a funding plan that will allow the Association to strengthen the financial position to the ideal, or fully funded, balance, as well as projected minimum contributions to maintain a baseline, or positive reserve fund. Refer to the Fund Status and Funding Plan section of this Report.

CODE COMPLIANCE/LIFE SAFETY We contacted the City of McKinney Building and Fire Departments to determine the status of open code violations. To date, no response has been received relative to our Freedom of Information Act Questionnaire request. At the time of our site visit, we observed conditions that, in our opinion, are code violations or life safety issues. Descriptions of these conditions and associated cost estimates to remedy these conditions are contained in the Property Condition section of this Report.

ADA TITLE III AND FAIR HOUSING AMENDMENTS ACT COMPLIANCE The buildings were designed and constructed subsequent to and in general accordance with the Americans with Disabilities Act (ADA). The buildings were first occupied after the effective date of March 13, 1991 as stipulated in the Fair Housing Amendments Act (FHAA). Based upon our on-site observations, there were no significant barrier removal issues that should be addressed for compliance with the ADA Accessibility Guidelines or FHAA.



December 10, 2010


CONCLUSIONS Based upon our on-site observations, the property is considered to be in generally good condition when compared with developments of similar type and age. The routine maintenance procedures have generally prevented the accumulation of deferred maintenance issues. There were, however, code compliance and deferred maintenance/physical condition issues noted at the time of our site visit. Significant issues include foundation wall and garage driveway pavement cracking. Please refer to the Property Condition section of this Report for additional information. The Association’s reserve fund is 34% funded, and $6,167.00 will be reserved in 2010. The Association will need to strengthen its reserve fund in order to prepare for future component replacements. Please refer to the Fund Analysis and Funding Plan section of this Report for additional information.



December 10, 2010


PROPERTY DESCRIPTION

SITE Civil Drawings were not made available for our review. As a result, the following descriptions are based on our site visit and/or discussions with the Site Contact.

LOCATION AND SIZE: The property is located southeast of the intersection of Eldorado Parkway and Lake Forest Drive in McKinney, Texas. According to the property plat prepared by Brockette Davis Drake, Inc. dated December 17, 2003, the property encompasses 11.56 acres.

ADJACENT PROPERTY USES: The property is bordered by Eldorado Parkway to the north with commercial developments beyond, single-family homes to the east and south, and Lake Forest Drive to the west with single-family developments beyond.

TOPOGRAPHY: The terrain of the subdivision is generally flat, with minor variations in grade across the subdivision.

ACCESS: Access to the subdivision is provided by two drives at the west from Lake Forest Drive. Two pedestrian access points with concrete sidewalks are provided at the north side of the property from Eldorado Parkway.

PARKING: Public parking is provided along the streets. Individual residential homes have common access driveways and individual garages on the 1st floor.

PAVEMENT CONSTRUCTION: Pavement construction at the streets and garage drives consists of cast-in-place Portland cement concrete. Information relative to the construction details was not provided.

CURBS/WHEELSTOPS: Generally, Portland cement concrete curbing contiguous with the pavement is provided along the edges of the streets.



December 10, 2010


SIDEWALKS: Portland cement concrete sidewalks are provided along the streets. The sidewalks are generally 4’ to 5’ wide. Information relative to the construction details was not provided.

BICYCLE/WALKING PATHS: Bicycle and/or walking paths are not provided.

UTILITY SERVICE COMPANIES:

Water: City of McKinney

Sanitary Sewer: City of McKinney

Storm Sewer: City of McKinney

Electricity: Varies depending on homeowner

Gas: Atmos

Telephone: Varies depending on homeowner

Cable TV: Varies depending on homeowner

Satellite TV: Varies depending on homeowner

High-speed Internet Service: Varies depending on homeowner

RETENTION/DETENTION BASINS: Detention basins are provided at the southeast corner and northeast corner of the site. The basins have overflows that connect to the municipal storm sewer.

STORM SEWER SERVICE: Storm sewer service consists of curb inlets provided along the public streets. Information relative to the size and location of the underground piping or connection to municipal mains was not provided.

SANITARY SEWER SERVICE: Information relative to the sanitary sewer service was not provided.

WATER SERVICE:

Size and Location: Information relative to water service was not provided.

Backflow Preventers: Information relative to backflow preventers was not provided.

Fire Hydrants: Seven fire hydrants are provided along the public streets.



December 10, 2010


ELECTRIC SERVICE:

Primary: Primary electric service extends underground to pad-mounted transformers.

Transformers: Pad-mounted transformers are provided.

Meters: The residential units are individually metered.

GAS SERVICE: Information relative to gas service was not provided.

TELEPHONE SERVICE: Telephone service extends underground to grade-mounted utility service cabinets located near the garage doors.

CABLE TELEVISION SERVICE: Cable television service extends underground to grade-mounted utility service cabinets located near the garage doors.

SITE LIGHTING:

Fixture Types: Street lighting is provided by seven decorative single-head high-intensity discharge lamp fixtures mounted on metal poles.

Lighting Control: Site lighting is controlled by photocells.

FENCING: Fencing consists of 6’-high brick masonry walls along the north and west sides of the site, and 6’-high precast plank fencing along the south and east sides. The pool area has 5’-high metal picket fencing. An 8’-high stamped concrete fencing is provided at the northwest portion of the site, which isolates the National Tire and Battery property.

RETAINING WALLS: Retaining walls are not provided.

TRASH DUMPSTER ENCLOSURES: Trash dumpster enclosures are not provided.



December 10, 2010


LANDSCAPING: Common area landscaping consists of lawn areas with mature or newer trees along the street sides and building entrance courts. A landscape picnic garden is provided near the southeast corner of the pool.

LAWN IRRIGATION SYSTEM: A multi-zone automatic irrigation system with pop-up sprinkler heads is provided along the public streets.

IDENTIFICATION SIGNAGE: Wall-mounted signs are provided on the brick masonry walls at the entrances from Lake Forest Drive.

SITE AMENITIES: A bean-shaped swimming pool is provided in the east portion of the site. The pool has a building containing men’s and women’s toilet rooms, pool equipment room, and storage room. A covered verandah is provided along the north side of the pool building. A BBQ/picnic landscaped garden is provided to the southwest of the pool area.



December 10, 2010


CONDOMINIUM BUILDING(S) Construction documents were not made available for our review. As a result, the following descriptions are based on our site visit and/or discussions with the Site Contact.

BUILDING TYPES: The subject property includes 32 two-story, 145-unit condominium buildings. Condominium units have duplex-style configurations. Each unit has a two-car garage located on the 1st floor. The buildings were reported to have been constructed between 2003 and 2006.

FOUNDATIONS: Information relative to the construction details of the foundations was not provided.

GROUND FLOOR CONSTRUCTION: Concrete slabs on grade were noted. Information relative to the construction details was not provided.

STRUCTURAL FRAMING: Information relative to structural framing of the buildings was not provided.

DESIGN LIVE LOADS: Information relative to design live loads was not provided.

EXTERIOR WALL CONSTRUCTION/DETAILING:

Exterior Cladding: Buildings are covered with brick veneer and HardiPlank siding.

Trim: Hardiplank trim is installed at the wall corners.

Sheathing: Sheathing was not observable.

Insulation: Insulation was not observable.

Vapor Barriers: Vapor barriers were not observable.

ROOFING:

Roofing System Type: The buildings are typically covered with asphalt composition shingles. Information relative to roof construction was not provided.



December 10, 2010


Skylights/Accessories: Skylights were not observed.

Roof Drains/Gutters: Prefinished metal gutters and downspouts that extend below grade are provided.

Soffits/Fascia: Painted Hardiplank soffits are provided. Fascias are typically painted wood.

ATTIC SPACES:

Fire Stops: Access into the buildings was not provided.

Draft Stops: Access into the buildings was not provided.

Ventilation: Soffit vents and roof gravity vents are typically provided.

Insulation: Access into the buildings was not provided.

BALCONIES/PATIOS: Balconies and patios are not provided.

WINDOWS: Windows are typically metal framed single-hung units, with insulating tinted glazing. Insect screens are installed on the operation window sashes.

ENTRANCE DOORS: Each resident unit is provided with metal-clad wood doors set in painted metal frames. Hardware typically includes aluminum threshold, butt hinges, and mortise lockset.

HVAC: HVAC systems are excluded from the scope of this Report.

ELECTRICAL: Electrical systems are excluded from the scope of this Report.

PLUMBING: Plumbing systems are excluded from the scope of this Report.

FIRE PROTECTION AND LIFE SAFETY: Fire protection systems are excluded from the scope of this Report.



December 10, 2010


SECURITY SYSTEMS: Security systems are excluded from the scope of this Report.

SPECIAL EQUIPMENT: No special equipment was noted.



December 10, 2010


PROPERTY CONDITION Conditions were observed at the time of our site visit that have been categorized as Code Compliance/Life Safety Issues, ADA/FHAA Barrier Removal Issues, or Deferred Maintenance/Physical Condition Issues.

CODE COMPLIANCE/LIFE SAFETY ISSUES At the time of our site visit, we observed conditions that were considered code violations or life safety issues. These items and the cost estimates to correct are listed in the charts on the following pages.

ADA/FHAA BARRIER REMOVAL ISSUES The buildings were designed and constructed after the effective date of the Americans with Disabilities Act (ADA). The buildings were first occupied prior to/after the effective date of March 13, 1991 as stipulated in the Fair Housing Amendments Act (FHAA). There are portions of the property that, in our opinion, require barrier-free access as defined by Title III of the ADA and the FHAA. As part of this property evaluation, attempts have been made to identify the basic barrier removal issues. This evaluation is not intended to serve as a comprehensive ADA/FHAA survey. In addition, changes in building occupancy and use can result in the need to eliminate barriers. At the time of our site visit, we did not observe any significant conditions that are considered barrier removal issues.

DEFERRED MAINTENANCE/PHYSICAL CONDITION ISSUES There were deferred maintenance and physical condition issues noted that require repairs and/or replacements. These items and cost estimates to correct are listed in the charts on the following pages.

LEVEL I: FULL RESERVE STUDYVILLAGE ON THE GREEN

4798 Stone Gate TrailMcKinney, Texas

December 10, 2010

Code Compliance/Life Safety Issues:

No. Item Quantity Units Unit Cost Immediate Cost

1.0 Sidewalk: A gap was noted at the sidewalk slab joint at the entrance to the clubhouse building (see Photo No. 42). The gap is sufficiently wide to trap the heel of a shoe and can lead to a tripping hazard.

1.1 The gap should be filled with pliable material to reduce the risk of tripping and falling. 1 lump sum $100.00 $100.00

Code Compliance/Life Safety Subtotal $100.00




December 10, 2010

ADA/FHAA Barrier Removal Issues:


1.0 No significant issues were noted relative to ADA. $0.00

ADA/FHAA Barrier Removal Subtotal $0.00




December 10, 2010

Deferred Maintenance/Property Deficiency Issues:


Site:1.0 Driveway Pavement and Curb: The concrete pavement at the driveways was noted to be in good

condition; however, spalled and cracked concrete was noted at the garage driveways (see Photo Nos. 12 -19). Also, limited areas with damaged curbs were noted (see Photo No. 22). According to the Association Management, maintenance of the streets is the responsibility of the City.1.1 Repairs to the concrete pavement at the driveways including crackfilling and selective replacement is recommended. 1 allowance $5,000.00 $5,000.001.2 Repairs to the concrete curb is considered part of site street maintenance. Repairs are deemed to be the responsibility of the City. No cost is included. N/A

2.0 Concrete Sidewalk: Generally, the concrete sidewalks were noted to be in good condition with minor cracks and spalled concrete (see Photo Nos. 20 - 21).2.1 Routing and crackfilling of the concrete sidewalks are recommended. 1 lump sum $500.00 $500.00

3.0 Fencing and Railing: Fencing and railing at the perimeter of the site were noted to be in good condition; however, a missing post cap was noted on one of the rail posts. 3.1 Water intrusion into the hollow pipe will likely accelerate corrosion and deterioration of the post. Immediate replacement of the missing post cap is recommended. 1 lump sum $50.00 $50.00

4.0 Site Drainage: The site appeared properly graded and drained. A few damaged downspout drainage bubblers were noted (see Photo No. 28), as well as irrigation valve box covers (see Photo No. 29).

4.1 Replacement of the missing covers is considered routine maintenance, and should be replaced under the landscaping contract. No cost is included. N/A

5.0 Transformer Base: A damaged transformer base was noted at the property (see Photo No. 23). Replacement of the transformer base may be the responsibility of the utility company. However, we include a cost for the replacement of the transformer base. 1 allowance $1,000.00 $1,000.00

Buildings6.0 Foundation: Cracked foundation walls were noted at some of the buildings (see Photo Nos. 32 to 34).

The cause of the distress is unknown. At the time of our site visit, the cracks were noted to be localized and evidence of propagation of the crack was not observed.




December 10, 2010


6.1 We recommend that the cracks be monitored for signs of advancement. If this occurs, a professional engineer should be retained to conduct additional site investigation and provide remedies. We include an amount for immediate repairs to the foundations. 1 allowance $1,500.00 $1,500.00

7.0 Exterior Walls: The exterior walls were noted to be in good condition, with isolated limited cracking of the brick veneer walls (see Photo No. 36). Also, shrunken wall joint sealant was noted (see Photo No. 37). These costs are included in the Replacement Reserve Schedule . N/A

8.0 Windows and Doors: No significant issues were noted relative to windows and doors at the buildings; however, we noted a damaged window frame at one of the buildings (see Photo No. 38).

8.1 The top side of the window was noted to be opened between the kinked frame and the lintel. In-place repairs to the damaged frame is recommended. 1 lump sum $100.00 $100.00

9.0 Roofs: No significant issues were noted relative to the roof. Replacement of the roofs should be anticipated in the future. Refer to the Replacement Reserve Schedule for additional information. N/A

Clubhouse:10.0 Generally, the clubhouse, pool areas, and adjacent pool area was noted to be in good condition; however,

we noted deteriorating sealant at the pool deck coping (see Photo No. 46).10.1 Selective repairs to the sealant is recommended. Replacement of sealant should be anticipated in the future. 1 lump sum $250.00 $250.00

Deferred Maintenance/Property Deficiency Subtotal $8,400.00




December 10, 2010

Cost Summary

ImmediateCode Compliance/Life Safety Issues Subtotal $100.00ADA/FHAA Barrier Removal Issues Subtotal $0.00Deferred Maintenance/Property Deficiency Subtotal $8,400.00Cost Estimate Total $8,500.00




December 10, 2010


REPLACEMENT RESERVE SCHEDULE The property components, including site appurtenances, building systems and finishes, are five to eight years old. Repairs to or replacement of the common property components to date have been performed on an as-needed basis. As these property components age and eventually approach the ends of their expected useful service lives, replacement costs will need to be included in capital expenditure budgets. The attached Replacement Reserve Schedule contains the major property components, including pavement, sidewalks, roofing, and exterior wall systems. Property components not included are assumed to be part of the annual operating budget. Costs for repair or replacement of the property components for the balance of 2010 are also assumed to be part of the current operating budget if not included in the Property Condition section. The expected useful life (EUL) values are based upon the average age of the building component and assume that the work outlined in the Property Condition section of the Report will be performed. The remaining useful life (RUL) values assume that proper routine maintenance will be provided.



December 10, 2010


REPLACEMENT COST The Client requested that an insurance replacement cost be provided as part of this Report; however, construction documents for the property were not provided for our use for estimation purposes. However, based on our site observations and information obtained from the Listing Agency for some of the units, the current replacement cost of the property would be approximately $985,000 for the smallest building to $1,000,000 for the largest buildings. The Marshall & Swift Commercial Estimator Summary Reports are attached to this Report.



December 10, 2010


FUND STATUS AND FUNDING PLAN It is important for a condominium association to maintain and preserve market values of both the residential and common areas of the property. To achieve this, funding plans for future repair or replacement of major common-area components must be developed. Annual operating budgets and reserve budgets assist in reflecting the plans and goals of the association as well as in setting the level and quality of service for the community association's activities in the months and years ahead.

ASSUMPTIONS The following information was provided by the Association:

BEGINNING ASSUMPTIONS:

Fiscal Year End: December 31st

Current Reserve Fund Balance: $207,999

Remaining 2010 Contribution: $6,167

2011 Fund Start Balance: $214,166

Current Annual Contributions: $74,000

Fully Funded Balance: $594,980

Immediate Property Needs: $8,500

Fully Funded Balance and Immediate Needs: $603,480

Current Percent Funded: 34%

ECONOMIC ASSUMPTIONS:

Inflation Rate: 3.0%

Post-Tax Interest Rate: 3.0%

Annual Contribution Rate Increase: 3.0%



December 10, 2010


ANTICIPATED CAPITAL EXPENSES The following chart (Figure 1) illustrates the anticipated annual capital expenses that the Association will need to reserve for over the 30-year term.

Figure 1

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The chart shows that the Association will face major replacements in years 2011–2014, 2021–2024, and 2031—2034. Major replacement items include exterior walls, windows, roofing, pavement maintenance, entry doors, sidewalks, mailboxes, and pooling lining and deck. Refer to the Repair and Replacement Schedule for detailed breakdown of the anticipated replacement items and associated costs.

CURRENT FUND STATUS The current reserve fund balance was reported to be approximately $207,999 as of December 8, 2010, and the Association will currently reserve an additional $6,167 in 2010. As of this Report, the fully funded balance is computed to be $594,980, and the current immediate property needs are $8,500 for a total fully funded balance of $603,480, which represents that the reserve fund is 34% funded. This currently represents a mid-range, or “fair”, reserve fund status. A fair reserve fund status reduces the likelihood of special assessments and/or deferred maintenance. The goal for the Association it to continue to strengthen the financial position of the reserve fund.



December 10, 2010


RECOMMENDED FUNDING PLAN Our goal for the Association is to adequately fund its reserves to be financially prepared for the future expenses without the need of special assessments. Based on the current percent funded and the Association’s projected expense requirements, we recommend increasing annual reserve contributions in order to achieve the “ideal” funding level. To achieve an “ideal”, or fully funded balance, we recommend that reserve contributions be increased from $74,000 to $92,000 for 2011 and then increase the annual contributions at the rate identified within the Assumptions. To maintain a baseline (positive) reserve fund balance, reserve contributions may be reduced from $74,000 to $60,500 for 2011 and then increase the annual contributions at the rate identified within the Assumptions. This contribution increase will fairly spread out the contribution burden over current and future owners and help eliminate the need for special assessments for future repairs and replacements. The Annual Contributions chart (Figure 2) illustrates the current, baseline, and recommended contributions for the Association.

Figure 2

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Current Baseline LM Recommended



December 10, 2010


Figure 3 compares the Association’s current year-end reserve fund balance, baseline fund balance, and the recommended reserve fund balance against the fully funded balance. Note that the recommended plan’s reserve fund gradually reaches the fully funded balance near the end of the term without the reliance of special assessments or deferred maintenance. Please refer to the Current, Baseline, and Recommended 30-Year Cash Flow Projections in the Attachment section of our report. The 30-Year Cash Flow Projections illustrate the reserve contributions and expenses on an annual basis for the projected term.

Figure 3

30 Year Reserve Balance

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Fully Funded Current Baseline LM Recommended



December 10, 2010


Figure 4 illustrates the Association’s current reserve fund, the baseline plan, and recommended plan as a percent funded against the fully funded balance. Note that the percent funded starts in the fair level, reaches the high-range, or strong, level in Year 2020, and smoothly approaches the fully-funded level by the end of the term.

Figure 4

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Current Plan Baseline LM Recommended



December 10, 2010


CODE COMPLIANCE We forwarded the Freedom of Information Act Questionnaire to the City of McKinney Building Department to determine if there are open code issues or open permits issued at the site for which final inspection have yet to be completed. At this time, no response has been received. We also forwarded the Freedom of Information Act Questionnaire to the City of McKinney Fire Department to determine if there are open citations at the property. At this time, no response has been received. Information relative to the building codes in force at the time of construction was not provided. At the time of our site visit, we observed conditions that are considered code violations or life safety issues. These conditions, with associated estimated costs to correct, are contained in the Property Condition section.



December 10, 2010

REPLACEMENT RESERVE SCHEDULE 30-YEAR PROJECTION (YEARS 1 THROUGH 10)Date of Construction: 2003 - 2005

Expected Remaining Initial Annual Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 10-YearProperty Component Quantity Units Unit Cost Footnote Cost Life (a) Life (b) Reserve Reserve 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Totals

SitePavement Maintenance 54,500 sf $0.20 (c) $10,900 5 5 $0 $2,180 $10,900 $10,900 $21,800Pavement Replacement 54,500 sf $12.00 (c) $654,000 50 42 $104,640 $13,080 $0Concrete Sidewalk - Maint. 30,000 sf $0.10 (d) $3,000 5 5 $0 $600 $3,000 $3,000 $6,000Concrete Sidewalk - Repl 30,000 sf $10.00 (d) $300,000 30 22 $80,000 $10,000 $0Concrete Curb and Gutter 1 ls $1,000.00 (e) $1,000 5 5 $0 $200 $1,000 $1,000 $2,000Landscaping 1 ls $2,500.00 (f) $2,500 3 2 $833 $833 $2,500 $2,500 $2,500 $7,500Irrigation System 1 allow $100,000.00 (f) $100,000 50 42 $16,000 $2,000 $0Fencing 1 allow $2,000.00 (g) $2,000 10 2 $1,600 $200 $2,000 $2,000Miscellaneous Metals 1 ls $2,000.00 (h) $2,000 5 5 $0 $400 $2,000 $2,000 $4,000Mailboxes 1 allow $20,000.00 (i) $20,000 30 22 $5,333 $667 $0Picnic/BBQ Area 1 allow $2,000.00 (j) $2,000 10 2 $1,600 $200 $2,000 $2,000

Clubhouse BuildingExterior Walls 1 ls $2,000.00 (k) $2,000 10 2 $1,600 $200 $2,000 $2,000Roofing 1 bldg $7,500.00 (l) $7,500 20 12 $3,000 $375 $0Fencing and Railing 1 ls $2,500.00 (m) $2,500 7 7 $0 $357 $2,500 $2,500Pool Lining 1 allow $15,000.00 (n) $15,000 15 7 $8,000 $1,000 $15,000 $15,000Pool Deck 1 allow $10,000.00 (n) $10,000 15 7 $5,333 $667 $10,000 $10,000Pool Equipment 1 allow $4,000.00 (o) $4,000 10 2 $3,200 $400 $4,000 $4,000Restroom Finishes/Fixtures 1 ls $5,000.00 (p) $5,000 20 12 $2,000 $250 $0

Condominium Building Exterior Walls 32 bldg $5,000.00 (k) $160,000 10 2 $128,000 $16,000 $40,000 $40,000 $40,000 $40,000 $160,000Roofing 32 bldg $12,000.00 (l) $384,000 20 12 $153,600 $19,200 $0Windows 32 bldg $2,500.00 (q) $80,000 10 2 $64,000 $8,000 $20,000 $20,000 $20,000 $20,000 $80,000Entry Doors 145 ea $350.00 (r) $50,750 25 17 $16,240 $2,030 $0

PRE-INFLATED TOTALS $594,980 $78,839 $60,000 $72,500 $60,000 $60,000 $19,400 $0 $27,500 $2,500 $0 $16,900 $318,800INFLATION FACTOR (3%) 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305INFLATED TOTALS $60,000 $74,675 $63,654 $65,562 $21,835 $0 $32,838 $3,075 $0 $22,051 $343,689




December 10, 2010

30-YEAR PROJECTION (YEARS 11 THROUGH 30)

Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 30-YearProperty Component 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Totals

SitePavement Maintenance $10,900 $10,900 $10,900 $10,900 $65,400Pavement Replacement $0Concrete Sidewalk - Maint. $3,000 $3,000 $12,000Concrete Sidewalk - Repl $75,000 $75,000 $75,000 $75,000 $300,000Concrete Curb and Gutter $1,000 $1,000 $1,000 $1,000 $6,000Landscaping $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $25,000Irrigation System $0Fencing $2,000 $2,000 $6,000Miscellaneous Metals $2,000 $2,000 $2,000 $2,000 $12,000Mailboxes $20,000 $20,000Picnic/BBQ Area $2,000 $2,000 $6,000

Clubhouse BuildingExterior Walls $2,000 $2,000 $6,000Roofing $7,500 $7,500Fencing and Railing $2,500 $2,500 $2,500 $10,000Pool Lining $15,000 $30,000Pool Deck $10,000 $20,000Pool Equipment $4,000 $4,000 $12,000Restroom Finishes/Fixtures $5,000 $5,000

Condominium BuildingExterior Walls $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $480,000Roofing $96,000 $96,000 $96,000 $96,000 $384,000Windows $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $240,000Entry Doors $12,688 $12,688 $12,688 $12,688 $50,750

PRE-INFLATED TOTALS $158,500 $178,500 $156,000 $161,000 $16,900 $12,688 $15,188 $12,688 $12,688 $16,400 $137,500 $190,000 $137,500 $135,000 $13,900 $2,500 $0 $2,500 $2,500 $16,900 $1,697,650INFLATION FACTOR (3%) 1.344 1.384 1.426 1.469 1.513 1.558 1.605 1.653 1.702 1.754 1.806 1.860 1.916 1.974 2.033 2.094 2.157 2.221 2.288 2.357INFLATED TOTALS $213,008 $247,080 $222,409 $236,429 $25,563 $19,767 $24,371 $20,970 $21,599 $28,757 $248,339 $353,457 $263,464 $266,436 $28,256 $5,235 $0 $5,553 $5,720 $39,825 $2,619,927




December 10, 2010

Footnotes:

a. Expected life values are based upon the assumed age of the building component and theassumption that the work outlined in the Property Condition section is performed and thatcontinued proper routine maintenance is provided.

b. Remaining life assumes that recommended repair work outlined in the Property Conditionsection and annual maintenance are performed.

c. The amount for Pavement Maintenance is for selective replacement and crackfilling ofdamaged driveway pavement. Future pavement replacement falls outside the reserveschedule.

d. Sidewalk repairs, including crackfilling, grinding of settled or heaved portions, and/or selectivereplacement of damaged portion is recommended. Maintenance is stopped next to yearswhere sidewalks are replaced. Sidewalk replacement is spread over 4 years.

e. The amount for Concrete Curb and Gutter is for selective replacement of concrete curbs thatfall outside the City maintenance coverage.

f. Landscaping includes amount for refurbishment of landscaping and lawn irrigation system.

g. The amount for Fencing is for repairs and incidental damage to the fences.

h. Repainting of metal railings at the site is recommended.

i. Mailboxes should be replaced at the end of their useful lives.

j. Repairs to the Picnic/BBQ area includes pavement repairs and replacement of damagedamenities.

k. The amount for Exterior Walls includes repainting of HardiPlank siding areas, tuckpointing ofthe brick veneer walls, and renewal of the wall joint sealants. Cost is spread over 4 years foreach condominium building cycle.

l. Reroofing of the condominium buildings should be anticipated beginning in about Year 11,and phased over a 4-year period at the rate of 25% each year.

m. Repainting of metal railings at the pool area is recommended.

n. Pool deck and lining replacement, including renewal of coping sealant, is recommended.

o. The pool equipment is considered to be original to Phase 1 construction of the property.Typically, replacement of equipment component is done at failure. We have included anamount for scheduled replacement.




December 10, 2010

p. Renovation of the clubhouse restrooms, including replacement of fixtures and finishes shouldbe anticipated.

q. The amount for Windows include costs for selective replacement of damaged window sealsand gaskets, as well as for cleaning and repainting of metal lintels at windows located onbrick veneer siding. We spread this cost over a four year period for each cycle.

r. We were informed the entry doors are included in the common area of the property. Wespread this cost over a four year period.


CASH FLOW ANALYSIS LEVEL I: FULL RESERVE STUDYVILLAGE ON THE GREEN


December 10, 2010

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 102011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Starting Balance $214,166 $234,801 $243,413 $265,791 $289,294 $360,347 $458,231 $528,333 $633,437 $747,588 Annual Contributions $74,000 $76,220 $78,507 $80,862 $83,288 $85,786 $88,360 $91,011 $93,741 $96,553 Interest Earnings $6,635 $7,067 $7,525 $8,203 $9,601 $12,097 $14,580 $17,169 $20,409 $23,545 Special Assessments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Reserve Expenses $60,000 $74,675 $63,654 $65,562 $21,835 $0 $32,838 $3,075 $0 $22,051Ending Balance $234,801 $243,413 $265,791 $289,294 $360,347 $458,231 $528,333 $633,437 $747,588 $845,635Percent Funded 36.65% 36.52% 37.60% 38.63% 42.93% 47.87% 50.40% 53.91% 57.00% 59.01%


Starting Balance $845,635 $755,742 $631,598 $531,890 $418,173 $518,383 $630,890 $745,609 $870,838 $1,002,910 Annual Contributions $99,450 $102,433 $105,506 $108,671 $111,932 $115,290 $118,748 $122,311 $125,980 $129,759 Interest Earnings $23,666 $20,503 $17,194 $14,040 $13,841 $16,984 $20,342 $23,888 $27,691 $31,602 Special Assessments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Reserve Expenses $213,008 $247,080 $222,409 $236,429 $25,563 $19,767 $24,371 $20,970 $21,599 $28,757Ending Balance $755,742 $631,598 $531,890 $418,173 $518,383 $630,890 $745,609 $870,838 $1,002,910 $1,135,514Percent Funded 55.27% 49.80% 44.52% 37.74% 41.93% 45.78% 48.95% 51.84% 54.37% 56.47%


Starting Balance $1,135,514 $1,053,173 $865,736 $768,211 $669,060 $813,136 $989,480 $1,181,146 $1,377,785 $1,585,159 Annual Contributions $133,652 $137,662 $141,792 $146,045 $150,427 $154,940 $159,588 $164,375 $169,307 $174,386 Interest Earnings $32,345 $28,358 $24,147 $21,240 $21,904 $26,640 $32,078 $37,817 $43,787 $49,573 Special Assessments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Reserve Expenses $248,339 $353,457 $263,464 $266,436 $28,256 $5,235 $0 $5,553 $5,720 $39,825Ending Balance $1,053,173 $865,736 $768,211 $669,060 $813,136 $989,480 $1,181,146 $1,377,785 $1,585,159 $1,769,294Percent Funded 53.63% 47.76% 43.82% 39.52% 43.30% 47.20% 50.65% 53.53% 56.04% 57.79%

CURRENT 30-YEAR CASH FLOW

LM Project No. 4234.001

CASH FLOW ANALYSIS LEVEL I: FULL RESERVE STUDYVILLAGE ON THE GREEN


December 10, 2010


Starting Balance $214,166 $221,098 $215,186 $222,180 $229,401 $283,236 $362,921 $413,802 $498,619 $591,366 Annual Contributions $60,500 $62,315 $64,184 $66,110 $68,093 $70,136 $72,240 $74,407 $76,640 $78,939 Interest Earnings $6,432 $6,448 $6,464 $6,674 $7,576 $9,549 $11,479 $13,484 $16,108 $18,594 Special Assessments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Reserve Expenses $60,000 $74,675 $63,654 $65,562 $21,835 $0 $32,838 $3,075 $0 $22,051Ending Balance $221,098 $215,186 $222,180 $229,401 $283,236 $362,921 $413,802 $498,619 $591,366 $666,848Percent Funded 34.51% 32.28% 31.43% 30.63% 33.75% 37.91% 39.48% 42.44% 45.09% 46.54%


Starting Balance $666,848 $553,177 $403,989 $277,916 $136,457 $207,489 $289,321 $371,804 $463,171 $559,685 Annual Contributions $81,307 $83,746 $86,259 $88,846 $91,512 $94,257 $97,085 $99,997 $102,997 $106,087 Interest Earnings $18,030 $14,145 $10,077 $6,124 $5,083 $7,342 $9,770 $12,340 $15,116 $17,951 Special Assessments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Reserve Expenses $213,008 $247,080 $222,409 $236,429 $25,563 $19,767 $24,371 $20,970 $21,599 $28,757Ending Balance $553,177 $403,989 $277,916 $136,457 $207,489 $289,321 $371,804 $463,171 $559,685 $654,966Percent Funded 40.46% 31.85% 23.26% 12.32% 16.78% 20.99% 24.41% 27.57% 30.34% 32.57%


Starting Balance $654,966 $533,460 $304,941 $164,336 $20,027 $116,777 $243,541 $383,278 $525,543 $676,000 Annual Contributions $109,270 $112,548 $115,924 $119,402 $122,984 $126,674 $130,474 $134,388 $138,420 $142,572 Interest Earnings $17,563 $12,390 $6,935 $2,725 $2,022 $5,325 $9,263 $13,431 $17,757 $21,821 Special Assessments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Reserve Expenses $248,339 $353,457 $263,464 $266,436 $28,256 $5,235 $0 $5,553 $5,720 $39,825Ending Balance $533,460 $304,941 $164,336 $20,027 $116,777 $243,541 $383,278 $525,543 $676,000 $800,568Percent Funded 27.17% 16.82% 9.37% 1.18% 6.22% 11.62% 16.44% 20.42% 23.90% 26.15%

BASELINE 30-YEAR CASH FLOW

LM Project No. 4234.001

Short Report

Cost data by Marshall & Swift, L.P. ***This SwiftEstimator report has been produced utilizing current cost data and is in compliance with the Marshall & Swift Licensed User Certificate. This report authenticates the user as a current Marshall & Swift user.***

General Information Estimate ID 4234_001_Village on the GreenProperty Owner Principal Management GroupAddress 4798 Stone Gate TrailCity McKinneyState/Province TXZIP/Postal Code 75070Surveyed By Chuma Cos-OkpallaSurvey Date 11/2/2010Appraisal For Cost As Of 11/2010 Low-rise Multiple Cost DataDescription Units Unit Cost TotalBase Cost 7,945 $41.81 $332,180Basic Structure Total Cost 7,945 $126.59 $1,005,727Replacement Cost New 7,945 $126.59 $1,005,727Total Depreciated Cost $1,005,727Total $1,005,727

Page 1 of 1

11/2/2010https://www.swiftestimator.com/main/re/reports/html.asp

Short Report

Cost data by Marshall & Swift, L.P. ***This SwiftEstimator report has been produced utilizing current cost data and is in compliance with the Marshall & Swift Licensed User Certificate. This report authenticates the user as a current Marshall & Swift user.***

General Information Estimate ID 4234_001_Village on the GreenProperty Owner Principal Management GroupAddress 4798 Stone Gate TrailCity McKinneyState/Province TXZIP/Postal Code 75070Surveyed By Chuma Cos-OkpallaSurvey Date 11/2/2010Appraisal For Cost As Of 11/2010 Low-rise Multiple Cost DataDescription Units Unit Cost TotalBase Cost 7,404 $42.60 $315,410Basic Structure Total Cost 7,404 $132.99 $984,637Replacement Cost New 7,404 $132.99 $984,637Total Depreciated Cost $984,637Total $984,637

Page 1 of 1

11/2/2010https://www.swiftestimator.com/main/re/reports/html.asp

Sec. 146-76. - RG 27 general residence townhome district.

(a) Purpose. The RG 27 general residence townhome zone is designed to provide for a medium density residential environment of attached townhome units.

(b) Principal permitted uses. The following principal uses are permitted in the RG 27 general residence townhome zone: (1)

Residential buildings containing townhome units; and (2)

Other uses as allowed in the RD 30 duplex residence zone. (c)

Permitted accessory uses. The following accessory uses are permitted in the RG 27 general residence townhome zone: same uses as allowed in the RD 30 duplex residence zone.

(d) Specific use permit. The following specific uses require a permit in the RG 27 general residence townhome zone: same as allowed in the RD 30 duplex residence zone.

(e) Space limits. The following space limits shall apply to the RG 27 general residence townhome zone: (1)

Minimum lot area: 2,700 square feet. (2)

Minimum width of lot: 25 feet. (3)

Minimum depth of lot: 100 feet. (4)

Maximum height of building: 35 feet. (5)

Minimum front yard: 20 feet. (6)

Minimum rear yard: 20 feet. (7)

Minimum side yard: 14 feet between ends of buildings. (8)

Minimum side yard at corner: 15 feet. (9)

Maximum lot coverage: 50 percent. (10)

Maximum floor area ratio: one to two. (f)

Miscellaneous provisions. (1)

Rear entry off-street parking shall be provided for all uses established in this zone.

(2) Site plan approval at the planning and zoning commission shall be required prior to development.

(Code 1982, § 41-71; Ord. No. 1270, § 3.08.5, 12-15-1981; Ord. No. 1511, § 2, 1-15-1985; Ord. No. 1612, § 1, 12-17-1985; Ord. No. 2002-08-084, § I.1, 8-20-2002; Ord. No. 2008-07-066, § 1, 7-14-2008)

javascript:void(0)

of l

Sonya Paul

From: Richard Everett

Sent: Monday, October 04, 2010 1:54 PM

To: Sonya Paul

Subject: RE: ORR: Village on the Green, Lake Forest and Stonegate

Sonya,

Our new Fire Department software does not have this address in any of its listings, and I no longer have access to THE.... 50, I have no information about this address ... sorry

Richard J Everett Fire Systems Review Specialist Inspector/Plan Reviewer Fire Prevention Division McKinney Fire Department 2200 Taylor Burk Dr. McKinney, TX 75071 (972) 547.2859 Desk (972) 547.2870 Fax Reve [email protected]

From: Sonya Paul sent: Monday, October 04, 2010 8:33 AM To: Teresa Noble; Bennie Reed; Richard Everett; Kathy Wright; Blanca Garcia; Brandon Opiela; Alex Glushko Subject: ORR: Village on the Green, Lake Forest and Stonegate

Good Morning,

Attached is an Open Records Request. Your response is needed on or before October 12th.

Thank You!

Sonya E.. Paul Record & Information Coordinator 222 N. Tennessee Street McKinney, TX 75069 [email protected] 972-547-7615 Office 972-547-7617 Fax

101512010

mailto:[email protected]

VILLAGE ON THE GREEN 4798 STONE GATE TRAIL MCKINNEY, TEXAS

LEVEL I: FULL RESERVE STUDY

LM PROJECT NO. 4234.001

1. View of community signage noted on the perimeter fencing at the southeast access point from Lake Forest Drive.

2. View looking south at Heather Glen Trail.

3. View looking west at Stone Forest Circle.




4. View looking west at Stone Gate Trail.

5. View looking west at the south side of the community along Lake Forest Drive.

6. View looking southwest at a typical building showing typical exterior finishes.




7. View of typical rear side of the condominium buildings.

8. View of typical condominium unit entrance court.

9. View of typical garage access driveway.




10. View of typical main condominium unit entry door.

11. View of typical concrete sidewalk provided along the streets.

12. View of driveway pavement cracking noted at Unit 4949. Similar conditions were noted elsewhere.




13. View of garage driveway cracking noted at the east end of the building containing Units 4947 to 4957. Similar conditions were noted elsewhere.

14. View of garage drive court cracking noted near the northwest corner of the garage driveway at Unit 3117.

15. View of damaged concrete sidewalk noted near the northwest corner of Unit 4873.




16. View of cracked concrete noted at the garage driveway at Unit 4873.

17. View of cracking of the garage drive court noted at the north end of the drive at the building containing Units 3117 to 3129.

18. View of concrete garage drive court cracking noted to the west of building containing Units 3016 to 3028.




19. View of spalled concrete noted to the west of the building containing Units 3016 to 3028.

20. View of typical concrete sidewalk cracking noted across from the entrances to Units 3000, 3004, 3008, 3024, and 3044.

21. View of cracked concrete sidewalk noted at the northwest portion of the site near Unit 3004.




22. View of cracked and spalled concrete curb noted on Stone Gate Trail near the entrance to Unit 4940.

23. View of damaged transformer pad noted to the north of Building 3117-3129.

24. View of missing post cap noted on the railing at the northeast detention basin.




25. View of the storm water detention basin located at the northeast corner of the site. A similar basin is provided at the northwest corner.

26. View showing typical fencing types provided at the perimeter of the community.

27. View of one of the landscape irrigation controllers noted on the south perimeter fence across from Unit 4969.




28. View of missing cap noted at a roof storm sewer bubble discharge noted near the northwest corner of Unit 4901.

29. View of damaged cap noted at a landscape irrigation control valve box noted across the sidewalk from Unit 3001. Similar conditions were noted elsewhere.

30. View of mailbox station located at the west end of Stone Forest Circle.




31. View of typical garage door with landscape rocks between garage driveways.

32. View of cracked foundation concrete noted at the garage door at Unit 4837.

33. View of cracked foundation concrete noted at the southwest corner of Unit 4833.




34. View of cracked concrete foundation noted at the southwest corner of Unit 3052.

35. View of typical building soffit noting typical soffit venting of the attic.

36. View of cracking exterior brick veneer noted above the eastside window at the entry to Unit 4965.




37. View of typical shrunken wall joint sealant noted at the buildings.

38. View of damaged window frame noted to the east of the entry door on the south side of Unit 4973.

39. View of picnic area provided to the northeast of the Clubhouse.




40. View of the Clubhouse looking southwest.

41. View of the east side entrance to the Clubhouse.

42. View of gap noted at the main entrance to the Clubhouse.




43. View of the covered porch at the west side of the Clubhouse facing the swimming pool.

44. View looking northwest at the pool area of the Clubhouse.

45. View looking east at the Clubhouse from the pool area.




46. View of deteriorating sealant noted at the pool deck.

47. View of urinal and sink area in the men's toilet room in the Clubhouse.

48. View in the handicapped-accessible water closet stall in the men's toilet room in the Clubhouse.




49. View of fixtures and finishes noted in the men's toilet room in the Clubhouse.

50. View in a storage room located in the northeast portion of the Clubhouse.

51. View of pool and spa equipment located in the northwest portion of the Clubhouse.

chuma a. cos-0kpalla

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