reserve study with site visit...feb 18, 2011 · reserve study with site visit twin creeks hoa,...

© 2018,Onsite Engineering, An MJS Consultants, LLC Company

RESERVE STUDY WITH SITE VISIT

TWIN CREEKS HOA, 1260 LYNCHBURG ROAD, WINCHESTER, TN 37398

Site-Visit Survey performed

October 2, 2018

DRAFT - submitted

November 9, 2018

Prepared For:

TWIN CREEKS HOA

C/O Jeffrey Kinney

TWIN CREEKS PROPERTIES, LLC

Prepared By:

Onsite Engineering170 East Main St., Suite D129

Hendersonville, TN 37075

615-264-0505

Project Number:

13313

Reserve Specialist:

Andrew D Hart, Reserve Specialist

© 2018,Onsite Engineering, An MJS Consultants, LLC Company

TABLE OF CONTENTS

INTRODUCTION 3

EXECUTIVE SUMMARY 3

PURPOSE & SCOPE 4

REFERENCES 6

PROPERTY DESCRIPTION 8

OBSERVATIONS AND COMMENTS SUMMARY 22

RESERVE FUND ANALYSIS 23

LIMITATIONS 26

CONCLUSION 28

APPENDIX

RESERVE FUND PROJECTIONS 29

PROJECT PHOTOGRAPHS 30

PROFESSIONAL QUALIFICATIONS 46

Twin Creeks HOA

1260 Lynchburg Road, Winchester, TN

INTRODUCTION

Twin Creeks HOA, through Twin Creeks Properties, LLC, authorized Onsite Engineering to conduct a

Building Evaluation and Reserve Fund Study for Twin Creeks HOA, located at 1260 Lynchburg Road,

Winchester, TN 37398.

Studies of this nature are important to ensure that a community has sufficient funds for long-term,

periodic capital expenditure requirements. Anticipating large expenditures over an extended period of

time through a structured analysis and scheduling process assists the Association in meeting financial

requirements without:

increasing the service fees above permitted maximums,

borrowing the funds,

or levying special financial assessments to the owners.

Typically, a community association has two broad cash requirements: the general operating requirements

and the capital replacement reserves. In this report, we will focus on those items falling under the capital

replacement reserve criteria. We have projected a capital repair and replacement reserve for thirty (30)

years. The first ten years are the most reliable.

This report is structured to analyze components of the community for which the Association is responsible

and to assess a useful expected life and useful remaining life of those components. The anticipated

scheduled repair or replacement of the component and the anticipated expense for the activity are then

analyzed in conjunction with the current capital reserves funding program for the community. Funding

program recommendations are made with the objective of limiting substantial cash excesses while

minimizing financial burdens that can result from significant cash inadequacies.

This report is intended to be used as a tool to determine reserve fund allocation requirements for the

community, to manage future Association obligations, and to inform the community of future financial

needs in general. The report that follows has been prepared from the perspective of what an owner of

this property would benefit from knowing. Some items, beyond those of immediate concern, may be

discussed. Therefore, the report should be read in its entirety in order to fully understand all of the

information that has been obtained.

EXECUTIVE SUMMARY

The following is a summary of the issues discussed in this Reserve Study. A detailed discussion of each

topic is provided in each of the noted sections of the report.

Based upon the information provided to us, and our own estimates of costs and useful lives of capital

assets, the existing Reserve Fund with the current annual contribution rate is projected to be insufficient

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to fund the reasonably expected capital expenditures over the 30-year life of this study. In addition, there

are significant expenditures projected to occur after the end of the 30-year study period. Therefore,

because these are not covered under the current reserve fund projections, updates to the reserve study

will be required so that reserves can be accrued for future capital expenditures.

Therefore, a study such as this should be updated from time to time, usually on a three to five-year cycle,

in order to reflect the most accurate needs and obligations of the community.

This report has been prepared in strict confidence with you as our client. No reproduction or re-use will

be undertaken with any third party other than your management company Twin Creeks Properties, LLC

without your express written consent or oral consent.

We have included two alternatives to your current funding program and recommend that the board adopt

an alternative that best reflects the objectives of the community. They are outlined in narrative form in

the RESERVE FUND ANALYSIS Section and on Page 1 of the RESERVE FUND PROJECTIONS (Financial

Projections) in the Appendices.

PURPOSE & SCOPE

PURPOSE

The purpose of this study is to perform a reserve fund analysis and to determine a capital needs

projection. It is intended to be used as a tool for Twin Creeks HOA to determine the allocation

requirements for the reserve fund to meet future anticipated capital expenditures for the community.

This report forecasts obligations for the community thirty years into the future. It should be noted that

events might occur that could have an effect on the underlying component or system useful life

assumptions used in this study. Likewise, inevitable market fluctuations can have an impact on component

or system replacement and repair costs.

We recommend that this report be reviewed and updated periodically. The property conditions should

also be evaluated periodically as part of that review. Also, additional concerns which may have developed

during this time period can be identified and, if planned for early enough, may be coordinated into

current funding budgets with the least impact on the individual homeowners. The National professional

association for CPAs (AICPA) recommends that this type of study be updated every three to five years.

SCOPE

This study has been performed according to the scope as generally defined by Twin Creeks Properties,

LLC, Onsite Engineering, and the standards of the Community Associations Institute. The findings and

recommendations are based on interviews with the community's management personnel, a review of

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available documents, and an investigation of the buildings and site.

The guidelines used to determine which physical components within the community are to be included in

the component inventory are based on the following general criteria:

The component must be a common element, or otherwise noted to be the responsibility of the

Association to replace.

The component has an established estimated useful life (EUL). Organizations such as RSMeans, Fannie

Mae, National Association of Home Builders (NAHB) and Whitestone have established EULs for various

building and property components.

The component is visible such that a remaining useful life (RUL) can be projected. The component

must have an estimated remaining useful life of thirty years or less. As the site ages, additional

components may need to be added.

The cost of replacement should be high enough to make it financially unsound to fund it from the

operating budget or is funded through a maintenance contract. We have established a minimum

reserve component cost of $1,000 for this study.

Components, such as painting, which are considered deferred maintenance, are most appropriately

funded from the Operating Budget instead of Reserves. We have done so unless the painting cost is a

significant portion of the budget or we were requested to do so.

This study estimates the funding levels required for maintaining the long-term viability of the property.

Our approach involves:

1. Examining association-managed equipment, buildings and site facilities.

2. Predicting their remaining service life (RUL) and approximating how frequently they will require repair

or replacement (EUL).

3. Estimating current repair or replacement costs for each capital item.

4. Using data developed in Steps 1, 2 and 3 to project Capital Reserve balances for Years 1 through 30.

The statements in this report are opinions about the present condition of the subject community. They

are based on visual evidence available during a diligent investigation of all reasonably accessible areas

falling under the responsibility of the Association. We did not remove any surface materials, perform any

destructive testing, or move any furnishings. This study is not an exhaustive technical evaluation. Such an

evaluation would entail a significantly larger scope than this effort. For additional limitations, see the

LIMITATIONS SECTION.

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As the preparer of this reserve study, Onsite Engineering certifies that we do not have any vested

interests, financial interests, or other interests that would cause a conflict of interest in the preparation of

this study.

REFERENCES

SOURCES OF INFORMATION

The following people were interviewed during our study:

Jeffrey Kinney - Twin Creeks Properties, LLC

The following documents were made available to us and reviewed:

Description Source

Twin Creeks HOA Budget Developer

Property Map & Conceptual Drawings Developer

STANDARDS OF REFERENCE

For your reference, the following definitions may be helpful:

Excellent: Component or system is in "as new" condition, requiring no rehabilitation and should perform

in accordance with expected performance.

Good: Component or system is sound and performing its function, although it may show signs of normal

wear and tear. Some minor rehabilitation work may be required.

Fair: Component or system falls into one or more of the following categories: a) Evidence of previous

repairs not in compliance with commonly accepted practice, b) Workmanship not in compliance with

commonly accepted standards, c) Component or system is obsolete, d) Component or system

approaching end of expected performance. Repair or replacement is required to prevent further

deterioration or to prolong expected life.

Poor: Component or system has either failed or cannot be relied upon to continue performing its original

function as a result of having exceeded its expected performance, excessive deferred maintenance, or

state of disrepair. Present condition could contribute to or cause the deterioration of other adjoining

elements or systems. Repair or replacement is required.

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Adequate: A component or system is of a capacity that is defined as enough for what is required,

sufficient, suitable, and/or conforms to standard construction practices.

All ratings are determined by comparison to other buildings of similar age and construction type.

All directions (left, right, rear, etc.), when used, are taken from the viewpoint of an observer standing in

front of a building(s) and facing it. Some comments may refer to left-hand or right-hand when facing a

specific object.

Repair/Replacement Reserves - Non-annual maintenance items that will require significant expenditure

over the life of the buildings. Included are items that will reach the end of their estimated useful life

during the course of this forecast, or, in the opinion of the investigator, will require attention during that

time.

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PROPERTY DESCRIPTION

GENERAL

Property Description: This property consists of a gated community with a combination of single-family

and townhome-style residences which are currently under development. Upon completion, there will be

approximately 400 homes.

Year Built: Construction on this property began in 2016 and is anticipated to be complete by 2020.

SITE

PROPERTY ACCESS

Description: The main entrance to this property is located on Twin Creeks Drive north of Lynchburg Road.

Based on a conversation with the Developer, we understand that once construction on this property is

complete, there will be a total of four main entrances and one golf cart entrance to the property. Two of

the main entrances will be located north of Lynchburg Road and the other two main entrances will be

located south of Lynchburg Road. The golf cart entrance will be located on Twin Creeks Drive near the

marina.

Observations and Comments: No significant problems were observed.

ENTRANCE MONUMENTS, BUILDINGS, AND GATES

Description: This property is currently identified by two concrete block entrance monuments with stone

veneer exteriors located at the main entrance to the property on Twin Creeks Drive.

Access to the property is provided by controlled entrance and exit gates. There are steel swinging gates at

the entrance to and exit of the property. The gates are provided with hydraulic operators controlled by a

keypad access system. There is a small guard house at the entrance to the property. The guard house is

provided with a stone veneer and painted exterior with a sheet metal roof covering. The guard house is

also provided with an exterior door and vinyl windows.

Based on a conversation with the Developer, we understand that there are plans to construct similar

entrance monuments, guard houses, and gate systems installed at the other three main entrances to the

property as well as at the golf cart entrance.

We have split up the repair and replacement of the entrance monuments, buildings, and gates into two

separate phases as defined below:

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Phase 1: The first phase of entrance monuments, buildings, and gates includes the existing components

located at the main entrance to the property on Twin Creeks Drive that were constructed in and around

2008.

Phase 2: The first phase of entrance monuments, buildings, and gates includes the future components

located at the golf cart entrance and three future main entrances to the property. The Developer

anticipated that the construction of the future entrance monuments, buildings, and gates will be

completed by 2020.

We have included the following projections in the financials for this study:

Entrance Monuments, Buildings, & Gates Component Year

Entrance Monuments & Buildings - Allowance 2024 (5-year cycle)

Entrance Gates (Phase 1) - Replace 2039

Entrance Gates (Phase 2) - Replace This line item has been included as a

means to identify future projections which

are past the 30-year term of this study.

Entrance Gate Keypad Access System (Phase 1) -

Replace

2024

Entrance Gate Keypad Access Systems (Phase 2) -

Replace 2034

Entrance Gate Operators (Phase 1) - Replace 2024

Entrance Gate Operators (Phase 2) - Replace 2034

LANDSCAPING

Description: Landscaping around this property primarily consists of trees, bushes and groundcover

surrounding the main entrance monument and townhome-style buildings.

There are ground-mounted landscape lights installed around the entrance monuments and gates at the

main entrance to the property on Twin Creeks Drive. We anticipate that similar landscape lighting will be

installed at the future entrances to the property.

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Observations and Comments: No significant problems were observed. Maintenance of the landscaping is

considered an operations and maintenance budget item.

We have included an allowance toward the repair and replacement of the landscape lighting on a 5-year

cycle beginning in 2024.

STORM DRAINAGE

Description: Surface drainage throughout the common grass-covered areas and asphalt-paved roads is

directed toward grated drains which connect to an underground storm water system. The underground

storm water system ultimately discharges surface drainage into one of the five retention ponds on the

property.

There are currently three existing retention ponds on the property. One retention pond is located just

past the main entrance to the property on Twin Creeks Drive and the other two retention ponds are

located near the existing townhome-style units on Anderton Drive. The two future retention ponds will be

located near the two future swimming pool areas.

The retention pond located near the main entrance to the property on Twin Creeks Drive is provided with

a fountain aerator.


We have included an allowance toward the maintenance of the retention ponds and fountain aerators on

a 5-year cycle beginning in 2024.

EARTHWORK/GRADING/EROSION CONTROL

Description: There are four railroad-tie retaining walls located behind the townhome-style units located

on Anderton Drive.


We have included a line item for the replacement of the railroad-tie retaining walls anticipated in 2042.

ASPHALT PAVING

Description: Based on information provided by the Developer, we understand that there will be

approximately 20,137 linear feet of asphalt-paved roads on this property upon completion of

construction. This translates to approximately 50,000 square yards of asphalt paving.

Observations and Comments: The final wearing course of asphalt pavement has not been placed on the

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majority of roads on the property. At the time of our site visit, the roads on the south side of Lynchburg

had not been paved.

We recommend crack repair and patching of all the asphalt pavement every three-to-five years. This

extends the life of the pavement and benefits the homeowners by maintaining the aesthetic appearance

of the grounds and perceived value of the property.

We have included an allowance toward patching and crack sealing of all the asphalt pavement on a 5-year

cycle beginning in 2024, with a 1.5-inch paving overlay project anticipated in 2039.

CONCRETE CURBS

Description: There will be concrete curbs installed along the perimeters of the roadways throughout the

property.

Observations and Comments: We observed signs of cracking and deterioration of the concrete curb near

the main entrance to the property on Twin Creeks Drive. Refer to the following photo.

Concrete curbs have an estimated useful life of over 50 years. Because they are generally not replaced all

at once, but are replaced as sections fail, we have included an allowance for the repair of 2% of the

concrete curbs on a 5-year cycle beginning in 2024.

CONCRETE SIDEWALKS

Description: Based on information provided by the Developer, we understand that the HOA is only

responsible for maintaining the sidewalks located in front of the townhome-style units on the property.

The sidewalks located in front of the single-family homes are to be maintained by the individual

homeowners.

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Concrete sidewalks have an estimated useful life of over 50 years. Because they are generally not

replaced all at once, but are replaced as sections fail, we have included an allowance for the repair of 5%

of the townhome concrete sidewalks on a 5-year cycle beginning in 2024.

PROPERTY SIGNAGE

Description: There are combination stop/street signs installed at the street intersections on the property.

Upon completion of construction on this property, we estimate that there will be approximately 60

combination stop/street signs.



Property Signage Component Year

Street Signs - Replace 2044

Sign Posts - Paint 2024 (5-year cycle)

Sign Posts - Replace This line item has been included as a



POLE-MOUNTED LIGHTS

Description: Pole-mounted lights provide area lighting throughout the roads on this property. Based on

information provided by the Developer, there will be approximately 201 pole-mounted lights on the

property upon completion of construction.



Pole-Mounted Lights Component Year

Pole-Mounted Light Fixtures - Replace 2044

Light Poles - Paint 2024 (5-year cycle)

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Pole-Mounted Lights Component Year

Light Poles - Replace This line item has been included as a



FENCING

Description: There is wood perimeter fencing installed along the south perimeter of the property along

Lynchburg Road. Upon completion of construction on this property, the Developer estimates that there

will be a total of 4,333 linear feet of perimeter fencing.

Observations and Comments: The existing fencing near the main entrance to the property on Twin

Creeks Drive showed signs of deteriorated paint as well as damage to the fence posts that was likely

caused by high-powered weed trimmers. Refer to the following photos.

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During our site visit, additional perimeter fencing was being installed along the north perimeter of the

property near the marina. Refer to the following photo.

We have included a line item for painting the perimeter fencing on a 5-year cycle beginning in 2024 with

the replacement of the perimeter fencing anticipated in 2039.

MAILBOXES

Description: There are two pedestal-mounted mailbox cluster units that serve the townhome-style units

on Anderton Drive. Based on information provided by the Developer, we understand that there will be

two more pedestal-mounted mailbox cluster units installed at the final phase of townhomes that will be

constructed by 2020.


We have included a line item for the replacement of the mailboxes anticipated in 2044.

GAZEBO

Description: There is a wood-framed gazebo with a sheet metal roof covering located near the retention

pond just past the main entrance to the property on Twin Creeks Drive.


We have included a line item for the replacement of the gazebo anticipated in 2044.

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TOWNHOME BUILDING EXTERIORS

PHASES

Description: The construction of the townhome-style buildings is split up into three separate phases. Each

phase is defined below:

Phase 1 Townhomes: The first phase of townhomes includes one building with a total of 7 residential

units consisting of Units 9 through 37 on Anderton Drive. These townhomes were constructed in and

around 2008.

Phase 2 Townhomes: The second phase of townhomes includes seven buildings with a total of 23

residential units consisting of Units 44 through 160 on Anderton Drive. These townhomes were

constructed in and around 2017.

Phase 3 Townhomes: The third phase of townhomes will be constructed in 2019/2020. This third phase

will include nine buildings with a total of 31 residential units consisting of Units 326 through 359 on Island

Way.

STRUCTURE

Description: The basic construction of the townhome-style buildings consists of wood-framed walls,

ceilings, and roofs built on concrete slabs on grade. No drawings were reviewed and our understanding of

the building structures is based upon visual evaluation only.


We have included an allowance toward general structural repairs on a 5-year cycle beginning in 2024.

ROOFING

Description: The roof coverings on the Phase 1 buildings consists of sheet metal. The roof coverings on

the Phase 2 and 3 buildings consists of architectural-grade asphalt shingles. The roofs are sloped and

provided with aluminum gutters and downspouts for drainage. Sheet metal roof coverings generally have

an anticipated useful life of 25-35 years and architectural-grade asphalt shingle roof coverings generally

have an anticipated useful life of 20-25 years. Maintenance and repair must be performed within the

guidelines of the warranty.


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Roofing Component Year

Sheet Metal Roof Coverings (Phase 1) - Replace 2039

Asphalt Shingle Roof Coverings (Phase 2) - Replace 2039

Asphalt Shingle Roof Coverings (Phase 3) - Replace 2041

Aluminum Gutters & Downspouts (Phase 1) - Replace 2039

Aluminum Gutters & Downspouts (Phase 2) - Replace 2047

Aluminum Gutters & Downspouts (Phase 3) - Replace This line item has been included as a



EXTERIOR

Description: The exteriors of the townhome-style buildings consist of a combination of stone veneer and

painted cement fiberboard siding with aluminum trim and vinyl soffit.



Exterior Component Year

Stone Veneer - Repair Allowance 2022 (5-year cycle)

Building Exteriors (Phase 1) - Paint & Seal 2021 (7-year cycle)



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Exterior Component Year

Cement Fiberboard Siding (Phase 1) - Replace This line item has been included as a









Soffit & Trim (Phase 1) - Replace This line item has been included as a









PRIVACY FENCING

Description: The Phase 1 townhome-style units are provided with vinyl privacy fencing and the Phase 2

and 3 townhome-style units are provided with stained wood privacy fencing.

Observations and Comments: Some of the Phase 1 vinyl privacy fencing showed signs of damage likely

caused by high-powered weed trimmers. Refer to the following photo.

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Privacy Fencing Component Year

Vinyl Privacy Fencing (Phase 1) - Replace 2039

Wood Privacy Fencing (Phase 2) - Stain 2022 (5-year cycle)

Wood Privacy Fencing (Phase 3) - Stain 2024 (5-year cycle)

Wood Privacy Fencing (Phase 2) - Replace 2037

Wood Privacy Fencing (Phase 3) - Replace 2039

CONCRETE DRIVEWAYS, PATIOS, PORCHES, AND WALKS

Description: Each townhome-style unit is provided with a concrete driveway, concrete patio, and

concrete porch or walkway.


Concrete patios, porches, and driveways have estimated useful lives of over 50 years. Because they are

generally not replaced all at once, but are replaced as sections fail, we have included an allowance for the

repair of 5% of the townhome concrete patios, porches, and driveways on a 5-year cycle beginning in

2022.

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MECHANICAL

UTILITIES

Description: This property is served by the municipal water and sewer system. The utilities for each unit

are individually metered.


ELECTRICAL

Description: Electrical service to the buildings consists of 120/240 volt systems. The main electric service

cable comes to the buildings underground. No excavation on or near the property should be done unless

the electric utility has been consulted. We observed 200 Amp breakers for the units at the meter banks.

The main electrical switches and power meters are located at a combined meter bank at each building.

Our investigation of the electrical system is limited to the visible components in the common areas of the

buildings, the entrance cable, meter box, service panels, common area outlets and switches, and the

visible portions of the wiring. The covers of the service panels were not removed to investigate the

conditions in them.

A larger portion of the electrical system is hidden behind walls and ceilings, and, obviously, all the

conditions relating to these unseen areas cannot be known. While some components of the system are

readily discernible, not all conditions that can lead to the interruption of electrical service, or that are

hazardous can be identified.



Electrical Component Year

Electrical Repairs - Allowance 2024 (5-year cycle)

Electric Meter Panels (Phase 1) - Replace 2039

Electric Meter Panels (Phase 2) - Replace 2047

Electric Meter Panels (Phase 3) - Replace This line item has been included as a



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AMENITIES

RENTAL CLUBHOUSE AND SWIMMING POOL

Description: Based on information provided by the Developer, we understand that the Clubhouse and

swimming pool area near the main entrance to the property on Twin Creeks Drive is owned by Twin

Creeks Properties, LLC. We understand that the Twin Creeks HOA currently rents this Clubhouse and

swimming pool each month. The Twin Creeks HOA may choose to purchase the Clubhouse and swimming

pool in the future, but the Twin Creeks HOA is not reserving for these amenities at this time.


FUTURE SWIMMING POOLS AND BUILDINGS

Description: Based on information provided by the Developer, we understand that there are plans to

install two HOA-owned swimming pools on this property. Each swimming pool will be provided with a

cabana building with bathrooms. Additionally, an event barn will be constructed at one of the swimming

pool sites.

Observations and Comments: The Developer provided projected reserve fund allowances for the two

future swimming pool areas which have been included in the financial projections for this study.

Conceptual renderings of each swimming pool area can be seen below.

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Swimming Pool Component Year

Swimming Pool & Buildings (Event Barn) - Allowance 2020 (1-year cycle)

Swimming Pool & Buildings (Campfire Court) - Allowance 2020 (1-year cycle)

Swimming Pool Furniture (Event Barn) - Allowance 2020 (1-year cycle)

Swimming Pool Furniture (Campfire Court) - Allowance 2020 (1-year cycle)

OTHER

UPDATES

Description: An estimate for the update of the Reserve Study has been included in the financial

projections.

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OBSERVATIONS AND COMMENTS SUMMARY

Following is a summary of the Observation and Comments grouped according to their report Section(s):

We observed signs of cracking and deterioration of the concrete curb near the main entrance to the

property on Twin Creeks Drive.

The existing fencing near the main entrance to the property on Twin Creeks Drive showed signs of

deteriorated paint as well as damage to the fence posts that was likely caused by high-powered weed

trimmers.

Some of the Phase 1 vinyl privacy fencing showed signs of damage likely caused by high-powered weed

trimmers.

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RESERVE FUND ANALYSIS

We have analyzed the projected capital expenditures and calculated a reserve cash flow need. The

following is a reserve fund financial analysis for non-annual items as discussed in the report. These

financial worksheets take into consideration a reasonable return on invested moneys and inflation.

Please review this thoroughly and let us know of any changes that may be desired. The intent of this

reserve fund financials is to help the Association develop a reserve fund to provide for anticipated repair

or replacements of various system components throughout the term of the study. Many different

variables, such as season, locale, and inflation, affect the final cost of any project. Consultation with a

competent contractor capable of performing this work will provide you with an actual estimate.

Lacking actual estimates from contractors bidding on the work, costs are developed through our own

experience and from published cost indexes such as Means Construction Cost Data. Useful life information

is obtained from published information provided by the Federal National Mortgage Association (FNMA),

other authoritative sources and our own experience. This information lists national averages for

component useful lives.

The capital items listed are those that are typically the responsibility of the association and are derived

from a list provided by the Developer. However, association by-laws vary, and therefore, which

components are the responsibility of the owner and which are the responsibility of the Association can

vary. You should confirm that the items listed should be financed by the reserve fund.

The Developer provided the following information for this study.

Reserve Fund Balance as of September 30, 2018 $0

Reserve Contributions to be collected until Study Effective Date $0

Projected Interest on Reserve Fund This year $0

Less Projected Reserve Expenditures $0

Projected Year-End Reserve Balance before the Effective Date $0

The Reserve Fund Projections (financials) in the Appendix provides the following:

An input sheet that defines all the criteria used for the financial alternatives, including the assumed

inflation rate and rate of return on deposited reserve funds.

A table that lists anticipated replacement and/or repair items complete with estimated remaining life

expectancies, projected costs of replacement and/or repair, a frequency in years of when these items

require replacement and/or repair, and a projection based on this frequency.

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A table and graph that represent end-of-year balances versus capital expenditures based on your

current funding program and reserve balances, and alternatives to your current program. The

provided graphs illustrate what effects the funding methods will have over the presented life of the

study versus the anticipated capital expenditures. Care should be taken in analyzing the graphs due to

varying graphic scales that occur within each graph and between graphs.

This study is based upon a Cash Flow Method using a Threshold Funding goal. The Cash Flow Method

looks at reserve requirements each year and then calculates what the cash requirements will be each

year. Our funding goal is to maintain a positive balance in the reserve fund at or above the threshold

amount with an additional goal of achieving 60 percent funding throughout the study term.

We have defined the threshold or minimum allowed reserve balance as the average annual expenditure.

In addition, as an additional measure of Association reserve funding health, we have included information

about percent of Full Funding. The funding alternatives we have provided are based on maintaining a

minimum reserve balance above a threshold value using Cash Flow Method. They are also based on

keeping the percent funding as close to the goal as possible. By doing so, there is less of a possibility of a

special assessment.

To show these methods, we have included the percent funding values on the Alternative Funding Charts

as well as a target percent funding level line. This can be informative because there may be years when

even though the minimum cash flow requirements are met, future years would have a large projected

cash outlay, which would be shown by the percent funding measurement.

As a result, we do not expect or anticipate to rigidly meet a particular percent funding target. We do

expect and anticipate, however, to meet the Reserve threshold cash flow requirements throughout the

entire 30-year term of the study and to use the percent funding target as a reserve balance positioning

tool.

Note that based upon the information provided to us, and our own estimates of costs and useful lives

of capital assets, and taking inflation and return on investment into account, the current funding rate

will not be adequate to fund the reasonable, expected capital expenditures over the 30-year life of the

study.

The association should bear in mind that unanticipated expenditures can always arise and maintenance of

a significant reserve fund balance can be viewed as an important way to avoid special assessments.

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We have included two alternatives to your current funding program and recommend that the board

adopt an alternative that best reflects the objectives of the community.

All funding alternatives are based on a starting balance of $0 beginning January 1, 2019. They are based

on the entire Association as a single unit.

We have used an inflation rate of 2.8% based on CPI over the last 30 years, and a rate of return on

investment of 1.0%.

We have used the projected average annual expenditure rate of $202,368 as our threshold for the reserve

fund account balance.

In summary, the funding alternatives are as follows:

2018 Funding Rate: $0 per year

Alternative 1: Beginning January 1, 2019, set the annual contribution to the reserves at $153,500 per

year. Every following year, beginning in 2020 through 2048, increase the annual contribution to the

reserves by $5,700 per year.

Alternative 2: Beginning January 1, 2019, set the annual contribution to the reserves at $153,500 per

year. Every following year, beginning in 2020 through 2048, increase the annual contribution to the

reserves by 3.0% per year.

These funding alternatives are projected to maintain a positive balance at or near the threshold while

targeting a 60% funding goal.

The Reserve Fund Projections in the Appendix lists estimated capital reserves from 2019 through 2048.

Twin Creeks HOA


LIMITATIONS

The observations described in this study are valid on the date of the investigation and have been made

under the conditions noted in the report. We prepared this study for the exclusive use of Twin Creeks

HOA. Onsite Engineering does not intend any other individual or party to rely upon this study without our

express written consent. If another individual or party relies on this study, they shall indemnify and hold

Onsite Engineering harmless for any damages, losses, or expenses they may incur as a result of its use.

Information provided by the representatives of the association regarding financial, physical, quantity or

historical issues will be deemed reliable by Onsite Engineering. The reserve study will be a reflection of

the information provided to us and assembled for the association's use. An independent audit or

verification of the information provided to us is beyond the scope of this study. The purpose of this study

is not to perform an audit, quality/forensic analyses or to perform background checks of historical

records. This study relies on data provided to us by the client, the client’s representative, contractors

and/or management company. It also assumes that the property will be properly maintained in order to

obtain industry acceptable property component estimated useful lives.

All measurements or quantities are approximate. Any quantities are based upon field measurements

when plans of the buildings or site are not provided to us. Unless specifically described above, no

construction documents were reviewed, and no comments are made regarding conformance or non-

conformance to plans and specifications. No guarantee or warranty as to future life, performance, or

need for repair of any item inspected is intended or implied.

Please keep in mind that our review of this property focuses on the structural, mechanical and functional

conditions of the common areas. While some mention within this report may be made regarding life

safety issues, this report is not to be considered a life safety/code compliance review of this property.

Further, issues regarding handicap accessibility and other related issues adopted under the Americans

with Disabilities Act (ADA) or the Fair Housing Amendments Act are not included in this report, since this

was beyond the intended scope of services. Some comments about ADA or Fair Housing Act compliance

may be mentioned in the "General" section of this report.

This study is limited to the visual observations made during our inspection. We did not remove surface

materials, conduct any destructive or invasive testing, move furnishings or equipment, or undertake any

digging or excavation. Accordingly, we cannot comment on the condition of systems that we could not

see, such as buried structures and utilities, nor are we responsible for conditions that could not be seen or

were not within the scope of our services at the time of the investigation. We did not undertake to

completely assess the stability of the buildings or the underlying foundation soil since this effort would

require excavation and destructive testing. Likewise, this is not a seismic assessment.

Twin Creeks HOA


We did not investigate the following areas:

Buried utilities or infrastructure

Concealed structural members or systems

Attic areas

All interior spaces

We do not render an opinion on uninvestigated portions of the community.

We did not perform any computations or other engineering analysis as part of this evaluation, nor did we

conduct a comprehensive code compliance investigation. This study is not to be considered a warranty of

condition, and no warranty is implied. The appendices are an integral part of this report and must be

included in any review.

In our Reserve Fund Analysis, we have provided estimated costs. These costs are based on our general

knowledge of building systems and the contracting and construction industry. When appropriate, we have

relied on standard sources, such as Means Building Construction Cost Data, Craftsman Construction Books

etc. to develop estimates. Any costs or other comments contained herein do not necessarily infer that

subcontracts, quotes or opinions of other professionals were solicited or obtained. However, for items

that we have developed costs (e.g.: structural repairs), no standard guide for developing such costs exists.

Actual costs can vary significantly, based on the availability of qualified contractors to do the work, as well

as many other variables. We cannot be responsible for the specific cost estimates provided.

Twin Creeks HOA


CONCLUSION

We recommend that this report be reviewed and updated periodically. The property conditions should

also be evaluated periodically as part of that review. Regular periodic updates are intended to identify

additional concerns which may have developed and, if planned for early enough, may be coordinated into

current funding budgets with the least impact on the individual homeowners. An estimate for the update

of the Reserve Study has been included in the financial projections.

This report has been prepared in strict confidence with you as our client. No reproduction or reuse will be

undertaken with any third party without your express written or oral consent.

If you have any questions about this study or the reserve fund analysis, please feel free to contact us.

Thank-you for the opportunity to be of assistance to you.

Respectfully submitted,

Andrew D Hart, Reserve Specialist

Reviewed By:

Mark J. Smith, P.E., RS

Certified Building Inspection Engineer

Twin Creeks HOA


RESERVE FUND PROJECTIONS

FINANCIALS

Components List and CostsAge: 2 Effective Date: 1/1/2019

No. Units: 400 Fiscal Year Start: 1/1/2019

Report Date: 11/9/2018

1 SITE

2 Entrance Monuments & Buildings - Allowance 1 LS 21,300.00$ 21,300.00$ 5 5

3 Entrance Gates (Phase 1) - Replace 2 EA 5,000.00$ 10,000.00$ 30 20

4 Entrance Gates (Phase 2) - Replace 8 EA 5,000.00$ 40,000.00$ 30 30

5 Entrance Gate Keypad Access System (Phase 1) - Replace 1 EA 1,500.00$ 1,500.00$ 15 5

6 Entrance Gate Keypad Access Systems (Phase 2) - Replace 4 EA 1,500.00$ 6,000.00$ 15 15

7 Entrance Gate Operators (Phase 1) - Replace 2 EA 3,000.00$ 6,000.00$ 15 5

8 Entrance Gate Operators (Phase 2) - Replace 8 EA 3,000.00$ 24,000.00$ 15 15

9 Landscape Lighting - Allowance 1 LS 2,500.00$ 2,500.00$ 5 5

10 Retention Ponds & Aerators - Replace 1 LS 5,000.00$ 5,000.00$ 5 3

11 Railroad Tie Retaining Walls - Replace 1 LS 5,585.00$ 5,585.00$ 25 23

12 Asphalt Paving - Patch & Crack Seal 1 LS 30,000.00$ 30,000.00$ 5 5

13 Asphalt Paving - Overlay 50,000 SY 12.00$ 600,000.00$ 20 20

14 Concrete Curbing - Allowance 1 LS 12,085.00$ 12,085.00$ 5 5 2% of Curbs

15 Townhome Concrete Sidewalks - Allowance 1 LS 2,750.00$ 2,750.00$ 5 5 5% of Sidewalks

16 Street Signs - Replace 60 EA 250.00$ 15,000.00$ 25 25 Estimated

17 Sign Posts - Paint 60 EA 25.00$ 1,500.00$ 5 5 Estimated

18 Sign Posts - Replace 60 EA -$ 50 50 Estimated

19 Pole-Mounted Light Fixtures - Replace 201 EA 200.00$ 40,200.00$ 25 25 Developer Provided

20 Light Poles - Paint 201 EA 75.00$ 15,075.00$ 5 5

21 Light Poles - Replace 201 EA -$ 50 50

22 Perimeter Wood Fencing - Paint 4,333 LF 3.50$ 15,165.50$ 5 5

23 Perimeter Wood Fencing - Replace 4,333 LF 17.00$ 73,661.00$ 20 20

24 Pedestal-Mounted Mailbox Cluster Units - Replace 4 EA 2,000.00$ 8,000.00$ 25 25

25 Gazebo - Replace 1 EA 3,500.00$ 3,500.00$ 25 23

26 TOWNHOME EXTERIORS -$

27 Structural Repairs - Allowance 1 LS 5,000.00$ 5,000.00$ 5 5

28 Sheet Metal Roof Coverings (Phase 1) - Replace 7 EA 5,335.00$ 30 20 Developer Provided

29 Asphalt Shingle Roof Coverings (Phase 2) - Replace 23 EA 5,335.00$ 122,705.00$ 22 20 Developer Provided

30 Asphalt Shingle Roof Coverings (Phase 3) - Replace 31 EA 5,335.00$ 165,385.00$ 22 22 Developer Provided

31 Aluminum Gutters & Downspouts (Phase 1) - Replace 1 LS 5,230.00$ 5,230.00$ 30 20



34 Stone Veneer - Repair Allowance 1 LS 9,790.00$ 9,790.00$ 5 3

35 Building Exteriors (Phase 1) - Paint & Seal 1 LS 17,375.00$ 17,375.00$ 7 2



38 Cement Fiberboard Siding (Phase 1) - Replace 1 LS 50 40

39 Cement Fiberboard Siding (Phase 2) - Replace 1 LS -$ 50 48

40 Cement Fiberboard Siding (Phase 3) - Replace 1 LS -$ 50 50

Twin Creeks HOA1260 Lynchburg Road

Winchester, TN 37398

# Remaining

Useful Life

(RUL)

Comment / ReferenceComponent Qty U/M Unit Cost Reserve

Requirement

Estimated

Useful Life

(EUL)

Components List and Costs Page 1 ©2014 Onsite Engineering

FINANCIALS

Components List and Costs# Remaining

Useful Life

(RUL)

Comment / ReferenceComponent Qty U/M Unit Cost Reserve

Requirement

Estimated

Useful Life

(EUL)

41 Soffit & Trim (Phase 1) - Replace 1 LS -$ 50 40



44 Vinyl Privacy Fencing (Phase 1) - Replace 7 EA 2,350.00$ 16,450.00$ 30 20

45 Wood Privacy Fencing (Phase 2) - Stain 23 EA 125.00$ 2,875.00$ 5 3

46 Wood Privacy Fencing (Phase 3) - Stain 31 EA 125.00$ 3,875.00$ 5 5

47 Wood Privacy Fencing (Phase 2) - Replace 23 EA 400.00$ 9,200.00$ 20 18

48 Wood Privacy Fencing (Phase 3) - Replace 31 EA 400.00$ 20 20

49 Concrete Driveways, Patios, Porches, & Walks - Allowance 1 LS 9,495.00$ 9,495.00$ 5 3

50 MECHANICAL -$

51 Electrical Repairs - Allowance 1 LS 5,000.00$ 5,000.00$ 5 5

52 Electric Meter Panels (Phase 1) - Replace 1 LS 5,500.00$ 5,500.00$ 30 20



55 AMENITIES -$

56 Swimming Pool & Buildings (Event Barn) - Allowance 1 LS 20,209.00$ 20,209.00$ 1 1 Developer Provided

57 Swimming Pool & Buildings (Campfire Court) - Allowance 1 LS 14,859.00$ 14,859.00$ 1 1 Developer Provided

58 Swimming Pool Furniture (Event Barn) - Allowance 1 LS 2,400.00$ 1 1 Developer Provided

59 Swimming Pool Furniture (Campfire Court) - Allowance 1 LS 2,400.00$ 2,400.00$ 1 1 Developer Provided

60 OTHER -$

61 Reserve Study - Update 1 LS 4,600.00$ 4,600.00$ 4 3

Abbreviations: EA - Each, LF- Linear Feet, LS - Lump Sum, SF - Square Feet, SQ - Square, SY - Square Yard, U/M - Unit of Measure

Components List and Costs Page 2 ©2014 Onsite Engineering

Projected Reserve Expenses by Year

# Reserve Component 1 2 3 4 5 6 7 8 9 10

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

1 SITE

2 Entrance Monuments & Buildings - Allowance 24,454$

3 Entrance Gates (Phase 1) - Replace


5 Entrance Gate Keypad Access System (Phase 1) - Replace 1,722$

6 Entrance Gate Keypad Access Systems (Phase 2) - Replace

7 Entrance Gate Operators (Phase 1) - Replace 6,888$

8 Entrance Gate Operators (Phase 2) - Replace

9 Landscape Lighting - Allowance 2,870$

10 Retention Ponds & Aerators - Replace 5,432$ 6,236$

11 Railroad Tie Retaining Walls - Replace

12 Asphalt Paving - Patch & Crack Seal 34,442$

13 Asphalt Paving - Overlay

14 Concrete Curbing - Allowance 13,874$

15 Townhome Concrete Sidewalks - Allowance 3,157$

16 Street Signs - Replace

17 Sign Posts - Paint 1,722$

18 Sign Posts - Replace

19 Pole-Mounted Light Fixtures - Replace

20 Light Poles - Paint 17,307$

21 Light Poles - Replace

22 Perimeter Wood Fencing - Paint 17,411$

23 Perimeter Wood Fencing - Replace

24 Pedestal-Mounted Mailbox Cluster Units - Replace

25 Gazebo - Replace

26 TOWNHOME EXTERIORS

27 Structural Repairs - Allowance 5,740$

28 Sheet Metal Roof Coverings (Phase 1) - Replace

29 Asphalt Shingle Roof Coverings (Phase 2) - Replace


31 Aluminum Gutters & Downspouts (Phase 1) - Replace



34 Stone Veneer - Repair Allowance 10,636$ 12,210$

35 Building Exteriors (Phase 1) - Paint & Seal 18,362$ 22,277$

36 Building Exteriors (Phase 2) - Paint & Seal 62,983$

37 Building Exteriors (Phase 3) - Paint & Seal 89,714$

38 Cement Fiberboard Siding (Phase 1) - Replace



41 Soffit & Trim (Phase 1) - Replace



44 Vinyl Privacy Fencing (Phase 1) - Replace

45 Wood Privacy Fencing (Phase 2) - Stain 3,123$ 3,586$

46 Wood Privacy Fencing (Phase 3) - Stain 4,449$

47 Wood Privacy Fencing (Phase 2) - Replace



Projected Reserve Expenses by Year, Page 3 ©2014 Onsite Engineering


# Reserve Component 1 2 3 4 5 6 7 8 9 10

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028




49 Concrete Driveways, Patios, Porches, & Walks - Allowance 10,315$ 11,842$

50 MECHANICAL

51 Electrical Repairs - Allowance 5,740$

52 Electric Meter Panels (Phase 1) - Replace



55 AMENITIES

56 Swimming Pool & Buildings (Event Barn) - Allowance 20,775$ 21,357$ 21,955$ 22,569$ 23,201$ 23,851$ 24,519$ 25,205$ 25,911$

57 Swimming Pool & Buildings (Campfire Court) - Allowance 15,275$ 15,703$ 16,142$ 16,594$ 17,059$ 17,537$ 18,028$ 18,533$ 19,051$

58 Swimming Pool Furniture (Event Barn) - Allowance 2,467$ 2,536$ 2,607$ 2,680$ 2,755$ 2,833$ 2,912$ 2,993$ 3,077$

59 Swimming Pool Furniture (Campfire Court) - Allowance 2,467$ 2,536$ 2,607$ 2,680$ 2,755$ 2,833$ 2,912$ 2,993$ 3,077$

60 OTHER

61 Reserve Study - Update 4,997$ 5,581$

Inflated Total For Each Year -$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$



# Reserve Component

1 SITE

2 Entrance Monuments & Buildings - Allowance



5 Entrance Gate Keypad Access System (Phase 1) - Replace




9 Landscape Lighting - Allowance

10 Retention Ponds & Aerators - Replace


12 Asphalt Paving - Patch & Crack Seal


14 Concrete Curbing - Allowance

15 Townhome Concrete Sidewalks - Allowance


17 Sign Posts - Paint



20 Light Poles - Paint


22 Perimeter Wood Fencing - Paint



25 Gazebo - Replace


27 Structural Repairs - Allowance







34 Stone Veneer - Repair Allowance

35 Building Exteriors (Phase 1) - Paint & Seal










45 Wood Privacy Fencing (Phase 2) - Stain





11 12 13 14 15 16 17 18 19 20

2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

28,074$ 32,231$

9,079$

36,317$

3,295$ 3,783$

7,159$ 8,220$

39,541$ 45,396$

15,929$ 18,287$

3,625$ 4,161$

1,977$ 2,270$

19,870$ 22,812$

19,989$ 22,948$

6,590$ 7,566$

14,018$ 16,094$

27,028$

76,414$ 92,710$

108,846$

4,117$ 4,726$

5,107$ 5,864$

15,124$



# Reserve Component

1 SITE




49 Concrete Driveways, Patios, Porches, & Walks - Allowance

50 MECHANICAL

51 Electrical Repairs - Allowance




55 AMENITIES

56 Swimming Pool & Buildings (Event Barn) - Allowance

57 Swimming Pool & Buildings (Campfire Court) - Allowance

58 Swimming Pool Furniture (Event Barn) - Allowance

59 Swimming Pool Furniture (Campfire Court) - Allowance

60 OTHER

61 Reserve Study - Update

Inflated Total For Each Year

11 12 13 14 15 16 17 18 19 20

2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

13,596$ 15,609$

6,590$ 7,566$

26,636$ 27,382$ 28,149$ 28,937$ 29,747$ 30,580$ 31,437$ 32,317$ 33,222$ 34,152$

19,585$ 20,133$ 20,697$ 21,276$ 21,872$ 22,485$ 23,114$ 23,761$ 24,427$ 25,111$

3,163$ 3,252$ 3,343$ 3,437$ 3,533$ 3,632$ 3,733$ 3,838$ 3,945$ 4,056$

3,163$ 3,252$ 3,343$ 3,437$ 3,533$ 3,632$ 3,733$ 3,838$ 3,945$ 4,056$

6,233$ 6,961$ 7,774$

203,136$ 60,252$ 131,946$ 95,977$ 167,531$ 285,569$ 89,046$ 63,754$ 125,311$ 167,858$



# Reserve Component

1 SITE

2 Entrance Monuments & Buildings - Allowance



5 Entrance Gate Keypad Access System (Phase 1) - Replace




9 Landscape Lighting - Allowance

10 Retention Ponds & Aerators - Replace


12 Asphalt Paving - Patch & Crack Seal


14 Concrete Curbing - Allowance

15 Townhome Concrete Sidewalks - Allowance


17 Sign Posts - Paint



20 Light Poles - Paint


22 Perimeter Wood Fencing - Paint



25 Gazebo - Replace


27 Structural Repairs - Allowance







34 Stone Veneer - Repair Allowance
















21 22 23 24 25 26 27 28 29 30

2039 2040 2041 2042 2043 2044 2045 2046 2047 2048

37,003$ 42,482$

17,372$

2,606$

10,423$

4,343$ 4,986$

9,437$ 10,834$

10,541$

52,117$ 59,834$

1,042,350$

20,995$ 24,103$

4,777$ 5,485$

29,917$

2,606$ 2,992$

80,178$

26,189$ 30,067$

26,346$ 30,247$

127,968$

15,956$

6,606$

8,686$ 9,972$

64,878$

213,169$

303,630$

9,086$

44,900$

18,477$ 21,212$

32,792$

112,480$

132,058$ 160,220$

28,578$

5,426$ 6,229$

6,732$ 7,729$



# Reserve Component

1 SITE




49 Concrete Driveways, Patios, Porches, & Walks - Allowance

50 MECHANICAL

51 Electrical Repairs - Allowance




55 AMENITIES

56 Swimming Pool & Buildings (Event Barn) - Allowance

57 Swimming Pool & Buildings (Campfire Court) - Allowance

58 Swimming Pool Furniture (Event Barn) - Allowance

59 Swimming Pool Furniture (Campfire Court) - Allowance

60 OTHER

61 Reserve Study - Update

Inflated Total For Each Year

21 22 23 24 25 26 27 28 29 30

2039 2040 2041 2042 2043 2044 2045 2046 2047 2048

21,542$

17,920$ 20,573$

8,686$ 9,972$

9,555$

42,251$

35,108$ 36,091$ 37,102$ 38,141$ 39,208$ 40,306$ 41,435$ 42,595$ 43,788$ 45,014$

25,814$ 26,537$ 27,280$ 28,043$ 28,829$ 29,636$ 30,466$ 31,319$ 32,196$ 33,097$

4,169$ 4,286$ 4,406$ 4,530$ 4,656$ 4,787$ 4,921$ 5,059$ 5,200$ 5,346$

4,169$ 4,286$ 4,406$ 4,530$ 4,656$ 4,787$ 4,921$ 5,059$ 5,200$ 5,346$

8,682$ 9,696$

1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

-$ (40,984)$ (101,478)$ (179,293)$ (223,817)$ (472,348)$ (519,400)$ (663,065)$ (746,664)$ (820,058)$ (1,023,194)$ (1,083,446)$ (1,215,392)$ (1,311,369)$ (1,478,900)$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

-$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$ 203,136$ 60,252$ 131,946$ 95,977$ 167,531$

0% -12% -22% -32% -32% -73% -65% -78% -76% -73% -88% -81% -84% -82% -87%

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048

(1,764,469)$ (1,853,514)$ (1,917,268)$ (2,042,580)$ (2,210,437)$ (4,025,706)$ (4,228,964)$ (4,605,788)$ (4,790,909)$ (4,868,259)$ (5,301,695)$ (5,495,917)$ (5,589,644)$ (5,982,248)$ (6,071,050)$

-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

285,569$ 89,046$ 63,754$ 125,311$ 167,858$ 1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$

-82% -87% -104% -98% -91% -89% -90% -418% -401% -468% -431% -359% -421% -390% -334%

Projected January/1/2019 Reserve Fund Balance: -$ Inflation: 2.80% Threshold: 202,368$

Present Total Annual Deposit to Reserves: -$ Return on Investment: 1.00% Funding Percent Target: 60%

RESERVE FUND ANALYSIS - EXISTING FUNDING RATE

Annual Deposits

Special Assessments

Actual Percent Funding

Ending Year Balance

Ending Year Balance

Special Assessments

Annual Deposits


Inflated Annual Expenditures


$(7,000,000)

$(6,000,000)

$(5,000,000)

$(4,000,000)

$(3,000,000)

$(2,000,000)

$(1,000,000)

$-

$1,000,000

$2,000,000

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

20

31

20

32

20

33

20

34

20

35

20

36

20

37

20

38

20

39

20

40

20

41

20

42

20

43

20

44

20

45

20

46

20

47

20

48

Do

lla

rs

Funding Years

RESERVE FUND ANALYSIS - EXISTING FUNDING RATE

Ending Year Balance $s at 60% Funding Target Threshold:

Financials Page 9 ©2014 Onsite Engineering

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

155,035$ 275,983$ 384,194$ 481,749$ 619,660$ 558,660$ 706,301$ 763,596$ 887,888$ 1,029,487$ 1,047,220$ 1,215,199$ 1,318,205$ 1,464,326$ 1,545,396$

153,500$ 159,200$ 164,900$ 170,600$ 176,300$ 182,000$ 187,700$ 193,400$ 199,100$ 204,800$ 210,500$ 216,200$ 221,900$ 227,600$ 233,300$

-$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$ 203,136$ 60,252$ 131,946$ 95,977$ 167,531$

66% 78% 83% 86% 88% 87% 89% 89% 90% 91% 91% 91% 91% 91% 91%

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048

1,513,815$ 1,686,165$ 1,891,539$ 2,042,551$ 2,157,858$ 616,190$ 692,993$ 601,021$ 707,504$ 929,658$ 800,145$ 916,699$ 1,141,676$ 1,072,794$ 1,315,820$

239,000$ 244,700$ 250,400$ 256,100$ 261,800$ 267,500$ 273,200$ 278,900$ 284,600$ 290,300$ 296,000$ 301,700$ 307,400$ 313,100$ 318,800$

285,569$ 89,046$ 63,754$ 125,311$ 167,858$ 1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$

89% 89% 89% 89% 88% 64% 66% 61% 64% 69% 63% 65% 68% 65% 68%

Increase Period (Years) : 1

Projected January/1/2019 Reserve Fund Balance: -$ Number of Increases : 29 Threshold: 202,368$

First Year Contribution : 153,500$ Return on Investment: 1.00% Periodic Increase : $5,700 Funding Percent Target: 60%

RESERVE FUND ANALYSIS - ALTERNATIVE 1 - Escalating Funding at $5700 Every Year Through 2048

Ending Year Balance


Ending Year Balance



Annual Deposits

Special Assessments

Annual Deposits

Special Assessments


$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

201

9

202

0

202

1

202

2

202

3

202

4

202

5

202

6

202

7

202

8

202

9

203

0

203

1

203

2

203

3

203

4

203

5

203

6

203

7

203

8

203

9

204

0

204

1

204

2

204

3

204

4

204

5

204

6

204

7

204

8

Do

llars

Funding Years

RESERVE FUND ANALYSIS - ALTERNATIVE 1 - Escalating Funding at $5700 Every Year Through 2048 Ending Year Balance $s at 60% Funding Target Threshold


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

155,035$ 274,877$ 381,004$ 475,632$ 609,912$ 544,723$ 687,767$ 740,217$ 859,578$ 996,331$ 1,009,482$ 1,173,326$ 1,272,837$ 1,416,303$ 1,495,764$

153,500$ 158,105$ 162,848$ 167,734$ 172,766$ 177,949$ 183,287$ 188,786$ 194,449$ 200,283$ 206,291$ 212,480$ 218,854$ 225,420$ 232,183$

-$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$ 203,136$ 60,252$ 131,946$ 95,977$ 167,531$

66% 77% 82% 85% 87% 84% 87% 87% 87% 88% 87% 88% 88% 88% 88%

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048

1,463,836$ 1,637,324$ 1,845,555$ 2,001,383$ 2,123,716$ 591,542$ 680,577$ 603,854$ 728,895$ 973,215$ 869,786$ 1,016,666$ 1,276,547$ 1,247,491$ 1,535,626$

239,148$ 246,322$ 253,712$ 261,323$ 269,163$ 277,238$ 285,555$ 294,122$ 302,946$ 312,034$ 321,395$ 331,037$ 340,968$ 351,197$ 361,733$

285,569$ 89,046$ 63,754$ 125,311$ 167,858$ 1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$

86% 87% 87% 87% 87% 61% 64% 61% 66% 72% 69% 72% 76% 76% 79%

Increase Period (Years) : 1

Projected January/1/2019 Reserve Fund Balance: -$ Number of Increases : 29 Threshold: 202,368$

First Year Contribution : 153,500$ Return on Investment: 1.00% Periodic Increase : 3.0% Funding Percent Target: 60%

RESERVE FUND ANALYSIS - ALTERNATIVE 2 - Escalating Funding at 3% Every Year Through 2048

Ending Year Balance

Annual Deposits

Special Assessments


Percent Funding

Percent Funding

Ending Year Balance

Annual Deposits

Special Assessments


$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

201

9

202

0

202

1

202

2

202

3

202

4

202

5

202

6

202

7

202

8

202

9

203

0

203

1

203

2

203

3

203

4

203

5

203

6

203

7

203

8

203

9

204

0

204

1

204

2

204

3

204

4

204

5

204

6

204

7

204

8

Do

llars

Funding Years

RESERVE FUND ANALYSIS - ALTERNATIVE 2 - Escalating Funding at 3% Every Year Through 2048

Ending Year Balance $s at 60% Funding Target Threshold


Twin Creeks HOA


Page 30

PROJECT PHOTOGRAPHS

Twin Creeks HOA


Page 31

No. Image

1

Typical stone veneer

entrance monument

2

Typical landscape lighting

Twin Creeks HOA


Page 32

3

Entrance gates and

guard house

4

Entrance gate keypad

access system

Twin Creeks HOA


Page 33

5

Typical entrance gate

6

Typical entrance gate

operator

Twin Creeks HOA


Page 34

7

Typical entrance guard

house

8

Typical retention pond

Twin Creeks HOA


Page 35

9

Typical retention pond

fountain aerator

10

Typical railroad-tie

retaining wall

Twin Creeks HOA


Page 36

11

Typical asphalt-paved

road with concrete

curbs and sidewalk

12

Typical property signage

Twin Creeks HOA


Page 37

13

Typical pole-mounted

light fixture

14

Typical pedestal-

mounted mailbox

cluster unit

Twin Creeks HOA


Page 38

15

Typical wood perimeter

fencing

16

Gazebo

Twin Creeks HOA


Page 39

17

Typical front view of

Phase 1 townhome-style

units

18

Typical side view of


unit

Twin Creeks HOA


Page 40

19

Typical rear view of


units with vinyl privacy

fencing

20

Typical front view of


units

Twin Creeks HOA


Page 41

21

Typical side view of


unit

22

Typical rear view of


units

Twin Creeks HOA


Page 42

23

Typical Phase 2 stained

wood privacy fencing

24

Typical electric meter

panel

Twin Creeks HOA


Page 43

25

Current construction of

single-family home

26

Future main entrance to

property

Twin Creeks HOA


Page 44

27

Future site of swimming

pool and event barn

28

Future construction of

property on south side

of Lynchburg Road

Twin Creeks HOA


Page 45

29

Rental Clubhouse near

main entrance to

property on Twin Creeks

Road

30

Rental swimming pool

near main entrance to

property on Twin Creeks

Road

Twin Creeks HOA


Page 46

PROFESSIONAL QUALIFICATIONS

Twin Creeks HOA


Page 47

ANDREW HART, EIT

ONSITE ENGINEERING

PROFESSIONAL ENGINEER REGISTRATIONS:

EIT Tennessee

EXPERIENCE

Engineering Technician, Onsite Engineering

Engineering Technician, Criterium-Smith Engineers

Construction Materials Technician, S&ME

Professional Intern, CEMEX

PROFESSIONAL:

Reserve Specialist (RS) Designation, By Community Associations Institute (CAI)

ACI Concrete Field Testing Technician - Grade 1

EDUCATION:

Middle Tennessee State University

BS Concrete Industry Management

Tennessee State University

BS Civil Engineering

Twin Creeks HOA


Page 48

MARK J. SMITH, P.E.

ONSITE ENGINEERING

PROFESSIONAL ENGINEER REGISTRATIONS:

Tennessee - No. 107733

Illinois - No. 62-043214

Kentucky No. 27136

EXPERIENCE

Owner, Onsite Engineering

Owner, Criterium-Smith Engineers

Director of Engineering, American Permanent Ware Company

Director of Engineering, Southbend A Middleby Company

Project Engineer, Anetsberger Brothers

Project Engineer, Underwriters Laboratories

PROFESSIONAL:

Board Certified Building Inspection Engineer (BCBIE), By the Building Inspection Engineers

Certification Institute.

Member, National Society of Professional Engineers (NSPE)

Professional Member, National Academy of Building Inspection Engineers (NABIE)

Board Member, National Academy of Building Inspection Engineers (NABIE)

Member of Community Associations Institute (CAI)

Reserve Specialist (RS) Designation, By Community Associations Institute (CAI)

LEED Accredited Professional

Passed National Home Inspection Exam (NHIE)

EDUCATION:

University of Illinois, Champaign-Urbana, Illinois

BS Mechanical Engineering

Wheaton College, Wheaton, Illinois

BA Liberal Arts Engineering

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