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SCHWINDT & CO. RESERVE STUDY SERVICES

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CERES GLEANN HOMEOWNERS ASSOCIATION

MAINTENANCE PLAN

RESERVE STUDY

LEVEL III: UPDATE WITH NO VISUAL SITE INSPECTION

2017

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

Revised 10/3/2016


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Executive Summary

Year of Report:

January 1, 2017 to December 31, 2017

Number of Units:

133 Units

Parameters:

Beginning Balance: $65,000

Year 2017 Suggested Contribution: $12,812

Year 2017 Projected Interest Earned: $46

Inflation: 2.50%

Annual Increase to Suggested Contribution: 3.00%

Lowest Cash Balance Over 30 Years (Threshold): $14,355

Average Reserve Assessment per Unit: $8.03

Prior Year’s Actual Contribution: $12,500

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TABLE OF CONTENTSCeres Gleann Homeowners Association


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Disclosure Information 4 of 68

MAINTENANCE PLAN

Maintenance Plan 8 of 68

RESERVE STUDY

Property Description 21 of 68

Cash Flow Method - Threshold Funding Model Summary 22 of 68

Cash Flow Method - Threshold Funding Model Projection 23 of 68

Component Summary By Category 24 of 68

Component Summary By Group 27 of 68

Annual Expenditure Detail 29 of 68

Detail Report by Category 36 of 68

Additional Disclosures 65 of 68

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Ceres Gleann Homeowners AssociationMaintenance Plan

Reserve Study Update – OffsiteDisclosure Information

2017

We have conducted an offsite reserve study udpate and maintenance plan for Ceres Gleann Homeowners Association for the year beginning January 1, 2017, in accordance with guidelines established by Community Associations Institute and the American Institute of Certified Public Accountants.

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

We have no other involvement with the Association other than providing the reserve study and maintenance plan.

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

Assumptions used for inflation, interest, and other factors are detailed in page 22. Income tax factors were not considered due to the uncertainty of factors affecting net taxable income and the election of tax form to be filed.

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

2016. However, it currently is not known if this is a temporary or permanent increase. We have not

considered this increase in current cost projections but will monitor these costs on a go forward basis.

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

All information regarding the useful life and cost of reserve components was derived from Association, local venders, and/or from various construction pricing and scheduling manuals.

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

According to the Declaration, Article 1(h): “Common property” means any real property or interest in real property which is owned or leased by the Association or designated in a plat for transfer to the Association. “Common property” includes personal property owned or leased by the Association.

According to the Bylaws, Article 4 (m), the Board has the power and duty to “Cause the common property owned by the Association to be maintained and pay all local taxes, as applicable.”

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An insurance deductible is not included in the reserve study.

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

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

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

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

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

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

Physical Analysis:

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

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

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

Please note that the Association has not had a complete building envelope inspection. The effects of not having information relating to this inspection are not known. The amounts used in this report are solely the representations of the developer.

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

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MAINTENANCE PLAN

2017

Revised 10/3/2016

Ceres Gleann Homeowners Association Executive Summary of Maintenance Plan


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

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

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

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

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

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Ceres Gleann Homeowners AssociationMaintenance Plan

2017

Please note that the Association has developed an in-house maintenance plan. We commend the Association for developing a very detailed plan as well as using this plan as a guide in maintaining common area components. The Schwindt & Co maintenance plan includes all major maintenance procedures. This plan may not include all detailed maintenance procedures that are included in the in-house maintenance plan. We suggest the Association review the Schwindt & Co maintenance plan and make necessary revisions to the in-house plan and continue to use the in-house plan for scheduling purposes. We would be happy to discuss this recommendation with the Association.

Pursuant to Oregon State Statutes Chapters 94 and 100, which require a maintenance plan as an integral part of the reserve study, the maintenance procedures are as follows:The Board of Directors should refer to this maintenance plan each year when preparing the annual operating budget for the Association to ensure that annual maintenance costs are included in the budget for the years that they are scheduled.

Property Inspection

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

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

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

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

Frequency: Annually

Building Envelope Inspection

Schwindt & Company recommends that all associations perform a building envelope inspection within 12 months of substantial completion of all construction or immediately upon detection of any water intrusion or mold problems. This inspection process may involve invasive testing if the problems detected are serious enough to warrant such measures.

The inspection should be performed by an architect, engineer, or state-licensed inspector who is specifically trained in forensic waterproofing analysis. The report should include a written summary of findings with recommendations for needed repairs or maintenance procedures.

All reserve studies and maintenance plans prepared by Schwindt & Company assume that any such

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recommendations will be followed and that all work will be performed by qualified professionals.

A complete envelope inspection should be done again after 25 years of existence, although a visual review of the building exterior may be advisable on a periodic basis under certain circumstances. The Association should consult with the inspector(s) who performed the original assessment to determine the best course of action for their individual situation.


Frequency: Every 25 years, beginning in 2029

Roof Inspection

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

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

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



Frequency: Refer to reserve study

Lighting: Exterior & Common Area Interior – Inspection/Maintenance

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

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

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

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

Repairs and inspections should be completed by a qualified professional.

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

Frequency: Bi-Weekly

Clubhouse/Fitness/Recreation Areas

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


This expense is included in the reserve study for the Association as general property maintenance expense.

Frequency: Annually

Clubhouse–Kitchen–Review

In condo facilities, common area kitchenettes and dining areas may contain pieces of equipment that can jeopardize life safety if preventive maintenance is neglected. The following monthly checklist includes common cooking equipment and dining furniture.

Review the electrical outlet load for fire safety (per manufacturer and code); check that paper/flammable materials are positioned away from heat sources; insure there is an accessible route, and there is sufficient visibility of emergency exits.

A fire extinguisher review should include: tag currency, placement, housing condition, hose condition, and overall condition.

Equipment, such as dishwashers, garbage disposals, stoves, refrigerators, and sinks should undergo review. Note: Always follow manufacturer’s guidelines. For each item, check overall condition, switches, timer, piping and valves for leaks, wiring, pilots, doors, gaskets, and belts where applicable. Gas connections should be checked.

The flooring systems should be reviewed for deficiencies such as excessive wear, stains, and tripping hazards.

Review the exhaust system for hood function and condition, grease trap function, cleanliness and condition, filter condition, exhaust duct condition, and fan function and condition

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

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by the maintenance contractor and/or association representatives.

Frequency: Monthly

Gas Connections–Review

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

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

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

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

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

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

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



Frequency: Monthly

Hot Water Heater –Inspection/Maintenance

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

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


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

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

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Frequency: Monthly to Annually

Property Entrance - Review

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

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


This expense is included in the reserve study for the Association as general property maintenance expense.

Frequency: Annually

Windows & Doors

These maintenance procedures should also be performed on the common area buildings including the clubhouse.

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

Frequency: Annually

Fence–Inspection

The fence located in the common area should be checked annually for overall integrity and safety. The overall condition of the fence should be checked for deficiencies such as vegetation encroachment, debris buildup, holes, sagging areas, missing segments, rust, and/or vandalism.


Frequency: Annually

Gutters & Downspouts

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Schwindt & Company recommends that all gutters and downspouts be cleaned, visually inspected, and repaired as required every six months in the spring and fall.

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


Frequency: Annually

HVAC–Clubhouse Air Conditioning Unit

Regular preventive maintenance of HVAC (heating, ventilation, and air-conditioning) systems is crucial to the quality of air and comfort level within the condominium community. Preventive maintenance is also important for energy efficiency and maximizing equipment life. HVAC systems should always sufficiently control temperature and humidity, distribute outside air uniformly, and isolate and remove odors and pollutants. Improper function and maintenance can cause indoor air pollution by allowing stale or contaminated air to remain in the building. It is essential that both the building’s common HVAC system and those for individual units have fully functional and regularly inspected pressure control, filtration, and exhaust equipment. HVAC systems must also be properly sized in proportion to the area and number of occupants.

Management may opt to contract outside professionals to handle this task, although the following preventive maintenance procedures can be conducted by in-house maintenance personnel. If an outside service contractor is used, be sure to validate their performance by an audit of service performed.

When performing any maintenance procedures, always refer to manufacturer’s recommendations. Diagnostic tools, such as a digital HVAC analyzer, can also be of help.

For all types of HVAC systems, change filters twice a year and post a sticker on the HVAC unit with the date of change and initials of the mechanic. If an outside service is used, plot the date of service on the wall chart and verify that performance is as per contract.

Frequency: Semiannually

Exterior Walls

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

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

Any penetrations of the building envelope such as utility lines and light fixtures should be checked annually for signs of water intrusion. Hose bibs should be checked for leaks and other failures. Each

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hose bib should be shut off and drained during the winter to prevent damage from freezing.

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


Inspections should be made by a qualified professional.


Frequency: Annually

Fire Extinguishers – Common Areas Only

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

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

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

Frequency: Semi-annually

Trees - Maintenance

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


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

Frequency: Annually

Landscape Maintenance

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


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

Frequency: Annually

Lawn Irrigation System

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

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

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


Frequency: Annually

Sewer Laterals – Inspection/Maintenance

All drain lines in the clubhouse connect to the main drain, which is referred to as the “sewer”, beyond the foundation. All sewer lines outside of the foundation have cleanout points at various locations. Reaming from these points requires the use of a high power hose, hydro-jet, or power equipment.



Frequency: Annually

Exterior Siding Maintenance – Painting

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

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



Asphalt – Seal Coating

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

Vehicle traffic is one such factor, and associations that have asphalt paving that carries considerable vehicle traffic should consider a maintenance program that calls for seal coating of asphalt driving surfaces as frequently as every 4 years.

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

Parking area demarcation lines will need to be renewed each time a seal coat is applied. The component expense includes the cost of this work as well as the seal coating cost.

This work should be performed by a licensed paving contractor.



Clubhouse - Interior Paint

The interior painted surfaces of the clubhouse should be cleaned, repaired as required, primed and painted with premium quality interior house paint in accordance with the manufacturer’s specifications. The work should be performed by a qualified, licensed painting contractor.



Backflow Device Maintenance

Maintenance of the backflow device and components related to the water system includes, but is not limited to, inspecting for leaks under pressure and checking for damage or deterioration.

Annual maintenance on the backflow device includes the testing and calibrating of valve operation. Air

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should be bled from the backflow preventer and the area should be cleaned.



This maintenance item should be included in the Association’s annual operating budget.

Frequency: Annually

Concrete Pavement

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

Frequency: Annually

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

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RESERVE STUDY

LEVEL III: UPDATE WITH NO VISUAL SITE INSPECTION

2017

Revised 10/3/2016

Ceres Gleann Homeowners Association Category Detail Index


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Asset IDDescription Replacement Page

Roofing1027 Roof - Community Center - Replacement 2027 36 of 681028 Roof - Gazebo - Replacement 2029 36 of 681052 Roof Inspection Unfunded 37 of 68

Siding1045 Siding - Repair 2034 38 of 68

Painting1002 Gazebo - Paint 2025 39 of 681003 Interior - Paint 2018 39 of 681001 Siding - Paint 2023 39 of 68

Building Components1026 Acoustic Panels - Replacement 2024 41 of 681011 Carpet - Replacement 2018 41 of 681024 Plumbing Fixtures - Replacement 2024 42 of 681012 Vinyl Flooring - Replacement 2033 42 of 68

Gutters and Downspouts1029 Gutters and Downspouts - Replacement 2023 44 of 68

Fencing/Security1036 Cedar Fence - Replacement 2022 45 of 681047 Masonry Wall - Brick Re-point 2029 45 of 681034 Masonry Wall - Clean and Seal 2018 46 of 68

Equipment1031 Air Conditioning - Replacement 2020 47 of 681018 Dishwasher - Replacement 2017 47 of 681015 Electric Range - Replacement 2019 48 of 681019 Entertainment Equipment - Replacement 2024 48 of 681030 Furnace - Replacement 2019 49 of 681017 Garbage Disposal - Replacement 2024 49 of 681032 Gas Fireplace - Replacement 2025 49 of 68

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Ceres Gleann Homeowners Association Category Detail Index


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Asset IDDescription Replacement Page

Equipment Continued...1016 Refrigerator/Bottom Freezer - Replacement 2017 50 of 681046 Water Heater - Replacement 2019 50 of 68

Interior Furnishings1041 Bathrooms - Renewal 2018 51 of 681022 Folding Chairs - Replacement 2024 51 of 681021 Folding Tables - 4' - Replacement 2024 52 of 681020 Folding Tables - 6' - Replacement 2024 52 of 681055 Kitchen - Renewal 2025 53 of 68

Lighting1009 Landscape Lighting Fixtures - Replacement 2024 54 of 68

Grounds Components1049 Concrete - Repairs 2021 55 of 681037 Garden Shed - Replacement 2024 56 of 681006 Landscape Sod Replacement - Renewal 2017 56 of 681023 Metal Patio Furniture - Replacement 2017 57 of 68

Doors and Windows1039 Double Doors - Replacement 2019 58 of 681014 Sunshades - Replacement 2037 58 of 681040 Windows - Replacement 2034 59 of 68

Common Area Asphalt1044 Asphalt - Overlay 2032 60 of 681025 Asphalt - Seal Coat 2020 60 of 681004 Metal Railings - Painting 2026 61 of 681056 Metal Railings - Painting(2017) 2017 61 of 68

Inspection1050 Building Envelope Inspection 2029 63 of 681051 Property Inspection 2017 63 of 68

Total Funded Assets 42Total Unfunded Assets 1Total Assets 43

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Ceres Gleann Homeowners Association Property Description


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Ceres Gleann Homeowners Association consists of 133 single family home units located in Dallas, Oregon. The Association shall provide maintenance to all Common Areas including the clubhouse, garden area, and entrance tracts. The individual homeowners are responsible for all maintenance and repairs of their home and the adjacent private property.

This study uses information supplied by the Association, and various construction pricing and scheduling manuals to determine useful lives and replacement costs.

A site visit was performed by Schwindt & Company in 2015. Schwindt & Co did not investigate

components for defects, materials, design or workmanship. This would ordinarily be considered in a

complete building envelope inspection. Our condition assessment considers if the component is wearing

as intended. All components are considered to be in fair condition and appear to be wearing as intended

unless noted otherwise in the component detail.

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

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

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Ceres Gleann Homeowners AssociationDallas, Oregon

Cash Flow Method - Threshold Funding Model Summary


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Report Date September 09, 2016Account Number 2cergl

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

Total People 133

Report Parameters

Inflation 2.50%Annual Assessment Increase 3.00%Interest Rate on Reserve Deposit 0.10%

2017 Beginning Balance $65,000.00

Threshold Funding Fully Reserved Model Summary

This study utilizes the cash flow method and the threshold funding model, which establishes a reserve funding goal that

keeps the reserve balance above a specified dollar or percent funded amount. The threshold method assumes that the

threshold method is funded with a positive threshold balance, therefore, "fully reserved".

The following items were not included in the analysis because they have useful lives greater than 30 years:

grading/drainage; foundation/footings; storm drains; telephone, cable, and internet lines.

This funding scenario begins with a contribution of $12,812 in 2017 and increases 3.00% each year for the remaining

years of the study. A minimum balance of $14,355 is maintained.

The reserve study cash flow model includes an annual increase in the required contribution over the 30 year

period. Since the current Board and membership only has the authority to obligate the Association for the current budget

year, the cash flow model relies on the actions of future Boards to adhere to the required increase in the annual reserve

contribution. Because of the possibility that future Boards, due to budgetary constraints, are not able to increase the

reserve contribution to the required amount to provide for adequate funding, the Association may be at risk in the future

of special assessing the members to fund needed expenditures.

The purpose of this study is to insure that adequate replacement funds are available when components reach the end of

their useful life. Components will be replaced as required, not necessarily in their expected replacement year. This

analysis should be updated annually.

Cash Flow Method - Threshold Funding Model Summary of Calculations

Required monthly Contribution $1,067.67$8.03 per unit monthly

Average Net Month Interest Earned $3.83Total monthly Allocation to Reserves $1,071.50

$8.06 per unit monthly

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Ceres Gleann Homeowners Association Cash Flow Method - Threshold Funding Model Projection


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Beginning Balance: $65,000Projected

Annual Annual Annual EndingYear Contribution Interest Expenditures Reserves

2017 12,812 46 25,955 51,9032018 13,196 41 18,323 46,8172019 13,592 45 9,567 50,8872020 14,000 50 8,320 56,6172021 14,420 59 5,243 65,8532022 14,853 68 6,348 74,4262023 15,298 76 6,944 82,8562024 15,757 59 32,284 66,3872025 16,230 37 38,675 43,9792026 16,717 35 18,162 42,5692027 17,218 37 15,382 44,4412028 17,735 49 5,429 56,7952029 18,267 44 23,086 52,0202030 18,815 59 3,653 67,2402031 19,379 71 6,712 79,9792032 19,961 67 23,444 76,5632033 20,559 26 61,855 35,2932034 21,176 5 42,119 14,3552035 21,812 19 7,408 28,7772036 22,466 15 25,627 25,6312037 23,140 31 6,944 41,8582038 23,834 50 4,451 61,2922039 24,549 74 1,119 84,7952040 25,286 91 7,302 102,8702041 26,044 76 40,728 88,2632042 26,825 92 10,402 104,7792043 27,630 108 11,378 121,1392044 28,459 104 32,937 116,7652045 29,313 101 31,994 114,1852046 30,192 101 29,760 114,718

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Ceres Gleann Homeowners Association Component Summary By Category


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RoofingRoof - Community Center - Replacement 2004 2027 20 3 10 4,440 SF 2.56 11,366Roof - Gazebo - Replacement 2004 2029 25 0 12 1 Total 1,537.50 1,537Roof Inspection Unfunded Roofing - Total $12,904

SidingSiding - Repair 2004 2034 30 0 17 567 SF 10.25 5,812 Siding - Total $5,812

PaintingGazebo - Paint 2015 2025 10 0 8 1 Total 512.50 512Interior - Paint 2004 2018 15 -1 1 4,076 SF 1.02 4,158Siding - Paint 2014 2023 10 -1 6 2,268 SF 1.54 3,493 Painting - Total $8,163

Building ComponentsAcoustic Panels - Replacement 2004 2024 20 0 7 1 Total 1,711.75 1,712Carpet - Replacement 2004 2018 15 -1 1 1,968 SF 4.10 8,069Plumbing Fixtures - Replacement 2004 2024 20 0 7 1 Total 256.25 256Vinyl Flooring - Replacement 2004 2033 30 -1 16 1,070 SF 6.15 6,580 Building Components - Total $16,617

Gutters and DownspoutsGutters and Downspouts - Replacement 2004 2023 20 -1 6 300 LF 6.15 1,845 Gutters and Downspouts - Total $1,845

Fencing/SecurityCedar Fence - Replacement 2004 2022 20 -2 5 107 LF 27.67 2,961Masonry Wall - Brick Re-point 2004 2029 25 0 12 961 SF 10.25 9,853Masonry Wall - Clean and Seal 2016 2018 2 0 1 1 Total 2,000.00 2,000 Fencing/Security - Total $14,814

EquipmentAir Conditioning - Replacement 2004 2020 15 1 3 1 Total 3,587.50 3,587Dishwasher - Replacement 2004 2017 8 0 0 1 Total 717.50 717Electric Range - Replacement 2004 2019 15 0 2 1 Total 768.75 769Entertainment Equipment - Replacement 2004 2024 20 0 7 1 Total 2,255.00 2,255Furnace - Replacement 2004 2019 15 0 2 1 Total 3,587.50 3,587Garbage Disposal - Replacement 2004 2024 20 0 7 1 Total 256.25 256Gas Fireplace - Replacement 2004 2025 20 1 8 1 Total 4,612.50 4,612Refrigerator/Bottom Freezer - Replacement 2004 2017 12 0 0 1 Total 2,050.00 2,050

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Equipment continued...Water Heater - Replacement 2004 2019 15 0 2 1 Total 1,025.00 1,025 Equipment - Total $18,860

Interior FurnishingsBathrooms - Renewal 2004 2018 15 -1 1 1 Total 3,000.00 3,000Folding Chairs - Replacement 2004 2024 20 0 7 116 Each 28.19 3,270Folding Tables - 4' - Replacement 2004 2024 20 0 7 15 Each 51.25 769Folding Tables - 6' - Replacement 2004 2024 20 0 7 12 Each 140.94 1,691Kitchen - Renewal 2004 2025 20 1 8 1 Total 10,250.00 10,250 Interior Furnishings - Total $18,980

LightingLandscape Lighting Fixtures - Replacement 2004 2024 20 0 7 1 Total 2,562.50 2,562 Lighting - Total $2,562

Grounds ComponentsConcrete - Repairs 2016 2021 5 0 4 1 Total 4,100.00 4,100Garden Shed - Replacement 2004 2024 30 -10 7 1 Total 10,250.00 10,250Landscape Sod Replacement - Renewal 2009 2017 8 0 0 1 Total 15,000.00 15,000Metal Patio Furniture - Replacement 2004 2017 15 -2 0 1 Total 1,537.50 1,537 Grounds Components - Total $30,887

Doors and WindowsDouble Doors - Replacement 2004 2019 15 0 2 3 Each 1,025.00 3,075Sunshades - Replacement 2007 2037 30 0 20 10 Each 358.75 3,587Windows - Replacement 2004 2034 30 0 17 1 Total 10,762.50 10,762 Doors and Windows - Total $17,425

Common Area AsphaltAsphalt - Overlay 2004 2032 28 0 15 4,800 SF 2.50 12,000Asphalt - Seal Coat 2016 2020 4 0 3 4,800 SF 0.31 1,488Metal Railings - Painting 2016 2026 10 0 9 507 LF 15.37 7,793Metal Railings - Painting(2017) 2007 2017 10 0 0 1 Total 6,000.00 6,000 Common Area Asphalt - Total $27,281

InspectionBuilding Envelope Inspection 2004 2029 25 0 12 1 Total 3,075.00 3,075Property Inspection 2016 2017 1 0 0 1 Total 650.00 650 Inspection - Total $3,725

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Total Asset Summary $179,875

Revised 10/3/2016

Ceres Gleann Homeowners Association Component Summary By Group


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CapitalAcoustic Panels - Replacement 2004 2024 20 0 7 1 Total 1,711.75 1,712Air Conditioning - Replacement 2004 2020 15 1 3 1 Total 3,587.50 3,587Asphalt - Overlay 2004 2032 28 0 15 4,800 SF 2.50 12,000Asphalt - Seal Coat 2016 2020 4 0 3 4,800 SF 0.31 1,488Bathrooms - Renewal 2004 2018 15 -1 1 1 Total 3,000.00 3,000Carpet - Replacement 2004 2018 15 -1 1 1,968 SF 4.10 8,069Cedar Fence - Replacement 2004 2022 20 -2 5 107 LF 27.67 2,961Dishwasher - Replacement 2004 2017 8 0 0 1 Total 717.50 717Double Doors - Replacement 2004 2019 15 0 2 3 Each 1,025.00 3,075Electric Range - Replacement 2004 2019 15 0 2 1 Total 768.75 769Entertainment Equipment - Replacement 2004 2024 20 0 7 1 Total 2,255.00 2,255Folding Chairs - Replacement 2004 2024 20 0 7 116 Each 28.19 3,270Folding Tables - 4' - Replacement 2004 2024 20 0 7 15 Each 51.25 769Folding Tables - 6' - Replacement 2004 2024 20 0 7 12 Each 140.94 1,691Furnace - Replacement 2004 2019 15 0 2 1 Total 3,587.50 3,587Garbage Disposal - Replacement 2004 2024 20 0 7 1 Total 256.25 256Garden Shed - Replacement 2004 2024 30 -10 7 1 Total 10,250.00 10,250Gas Fireplace - Replacement 2004 2025 20 1 8 1 Total 4,612.50 4,612Gutters and Downspouts - Replacement 2004 2023 20 -1 6 300 LF 6.15 1,845Kitchen - Renewal 2004 2025 20 1 8 1 Total 10,250.00 10,250Landscape Lighting Fixtures - Replacement 2004 2024 20 0 7 1 Total 2,562.50 2,562Landscape Sod Replacement - Renewal 2009 2017 8 0 0 1 Total 15,000.00 15,000Metal Patio Furniture - Replacement 2004 2017 15 -2 0 1 Total 1,537.50 1,537Plumbing Fixtures - Replacement 2004 2024 20 0 7 1 Total 256.25 256Refrigerator/Bottom Freezer - Replacement 2004 2017 12 0 0 1 Total 2,050.00 2,050Roof - Community Center - Replacement 2004 2027 20 3 10 4,440 SF 2.56 11,366Roof - Gazebo - Replacement 2004 2029 25 0 12 1 Total 1,537.50 1,537Sunshades - Replacement 2007 2037 30 0 20 10 Each 358.75 3,587Vinyl Flooring - Replacement 2004 2033 30 -1 16 1,070 SF 6.15 6,580Water Heater - Replacement 2004 2019 15 0 2 1 Total 1,025.00 1,025Windows - Replacement 2004 2034 30 0 17 1 Total 10,762.50 10,762 Capital - Total $132,430

Non-CapitalBuilding Envelope Inspection 2004 2029 25 0 12 1 Total 3,075.00 3,075Concrete - Repairs 2016 2021 5 0 4 1 Total 4,100.00 4,100Gazebo - Paint 2015 2025 10 0 8 1 Total 512.50 512Interior - Paint 2004 2018 15 -1 1 4,076 SF 1.02 4,158Masonry Wall - Brick Re-point 2004 2029 25 0 12 961 SF 10.25 9,853Masonry Wall - Clean and Seal 2016 2018 2 0 1 1 Total 2,000.00 2,000Metal Railings - Painting 2016 2026 10 0 9 507 LF 15.37 7,793Metal Railings - Painting(2017) 2007 2017 10 0 0 1 Total 6,000.00 6,000

Revised 10/3/2016

Ceres Gleann Homeowners Association Component Summary By Group


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Non-Capital continued...Property Inspection 2016 2017 1 0 0 1 Total 650.00 650Roof Inspection UnfundedSiding - Paint 2014 2023 10 -1 6 2,268 SF 1.54 3,493Siding - Repair 2004 2034 30 0 17 567 SF 10.25 5,812 Non-Capital - Total $47,445

Total Asset Summary $179,875

Revised 10/3/2016

Ceres Gleann Homeowners Association Annual Expenditure Detail


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Description Expenditures

Replacement Year 2017Dishwasher - Replacement 717Landscape Sod Replacement - Renewal 15,000Metal Patio Furniture - Replacement 1,537Metal Railings - Painting(2017) 6,000Property Inspection 650Refrigerator/Bottom Freezer - Replacement 2,050

Total for 2017 $25,955

Replacement Year 2018Bathrooms - Renewal 3,075Carpet - Replacement 8,271Interior - Paint 4,261Masonry Wall - Clean and Seal 2,050Property Inspection 666

Total for 2018 $18,323

Replacement Year 2019Double Doors - Replacement 3,231Electric Range - Replacement 808Furnace - Replacement 3,769Property Inspection 683Water Heater - Replacement 1,077

Total for 2019 $9,567

Replacement Year 2020Air Conditioning - Replacement 3,863Asphalt - Seal Coat 1,602Masonry Wall - Clean and Seal 2,154Property Inspection 700

Total for 2020 $8,320

Replacement Year 2021Concrete - Repairs 4,526Property Inspection 717

Total for 2021 $5,243

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Replacement Year 2022Cedar Fence - Replacement 3,350Masonry Wall - Clean and Seal 2,263Property Inspection 735

Total for 2022 $6,348

Replacement Year 2023Gutters and Downspouts - Replacement 2,140Property Inspection 754Siding - Paint 4,050

Total for 2023 $6,944

Replacement Year 2024Acoustic Panels - Replacement 2,035Asphalt - Seal Coat 1,769Entertainment Equipment - Replacement 2,680Folding Chairs - Replacement 3,887Folding Tables - 4' - Replacement 914Folding Tables - 6' - Replacement 2,010Garbage Disposal - Replacement 305Garden Shed - Replacement 12,184Landscape Lighting Fixtures - Replacement 3,046Masonry Wall - Clean and Seal 2,377Plumbing Fixtures - Replacement 305Property Inspection 773

Total for 2024 $32,284

Replacement Year 2025Dishwasher - Replacement 874Gas Fireplace - Replacement 5,620Gazebo - Paint 624Kitchen - Renewal 12,489Landscape Sod Replacement - Renewal 18,276Property Inspection 792

Total for 2025 $38,675

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Replacement Year 2026Concrete - Repairs 5,120Masonry Wall - Clean and Seal 2,498Metal Railings - Painting 9,732Property Inspection 812

Total for 2026 $18,162

Replacement Year 2027Property Inspection 832Roof - Community Center - Replacement 14,550

Total for 2027 $15,382

Replacement Year 2028Asphalt - Seal Coat 1,952Masonry Wall - Clean and Seal 2,624Property Inspection 853

Total for 2028 $5,429

Replacement Year 2029Building Envelope Inspection 4,136Masonry Wall - Brick Re-point 13,252Property Inspection 874Refrigerator/Bottom Freezer - Replacement 2,757Roof - Gazebo - Replacement 2,068

Total for 2029 $23,086

Replacement Year 2030Masonry Wall - Clean and Seal 2,757Property Inspection 896

Total for 2030 $3,653

Replacement Year 2031Concrete - Repairs 5,793Property Inspection 918

Total for 2031 $6,712

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Replacement Year 2032Asphalt - Overlay 17,380Masonry Wall - Clean and Seal 2,897Metal Patio Furniture - Replacement 2,227Property Inspection 941

Total for 2032 $23,444

Replacement Year 2033Bathrooms - Renewal 4,454Carpet - Replacement 11,978Dishwasher - Replacement 1,065Interior - Paint 6,172Landscape Sod Replacement - Renewal 22,268Property Inspection 965Siding - Paint 5,185Vinyl Flooring - Replacement 9,769

Total for 2033 $61,855

Replacement Year 2034Double Doors - Replacement 4,679Electric Range - Replacement 1,170Furnace - Replacement 5,459Masonry Wall - Clean and Seal 3,043Property Inspection 989Siding - Repair 8,843Water Heater - Replacement 1,560Windows - Replacement 16,376

Total for 2034 $42,119

Replacement Year 2035Air Conditioning - Replacement 5,595Gazebo - Paint 799Property Inspection 1,014

Total for 2035 $7,408

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Replacement Year 2036Asphalt - Seal Coat 2,379Concrete - Repairs 6,554Masonry Wall - Clean and Seal 3,197Metal Railings - Painting 12,458Property Inspection 1,039

Total for 2036 $25,627

Replacement Year 2037Property Inspection 1,065Sunshades - Replacement 5,879

Total for 2037 $6,944

Replacement Year 2038Masonry Wall - Clean and Seal 3,359Property Inspection 1,092

Total for 2038 $4,451

Replacement Year 2039Property Inspection 1,119

Total for 2039 $1,119

Replacement Year 2040Asphalt - Seal Coat 2,626Masonry Wall - Clean and Seal 3,529Property Inspection 1,147

Total for 2040 $7,302

Replacement Year 2041Concrete - Repairs 7,416Dishwasher - Replacement 1,298Landscape Sod Replacement - Renewal 27,131Property Inspection 1,176Refrigerator/Bottom Freezer - Replacement 3,708

Total for 2041 $40,728

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Replacement Year 2042Cedar Fence - Replacement 5,489Masonry Wall - Clean and Seal 3,708Property Inspection 1,205

Total for 2042 $10,402

Replacement Year 2043Gutters and Downspouts - Replacement 3,506Property Inspection 1,235Siding - Paint 6,637

Total for 2043 $11,378

Replacement Year 2044Acoustic Panels - Replacement 3,334Asphalt - Seal Coat 2,898Entertainment Equipment - Replacement 4,392Folding Chairs - Replacement 6,369Folding Tables - 4' - Replacement 1,497Folding Tables - 6' - Replacement 3,294Garbage Disposal - Replacement 499Landscape Lighting Fixtures - Replacement 4,991Masonry Wall - Clean and Seal 3,896Plumbing Fixtures - Replacement 499Property Inspection 1,266

Total for 2044 $32,937

Replacement Year 2045Gas Fireplace - Replacement 9,209Gazebo - Paint 1,023Kitchen - Renewal 20,464Property Inspection 1,298

Total for 2045 $31,994

Replacement Year 2046Concrete - Repairs 8,390

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Replacement Year 2046 continued...Masonry Wall - Clean and Seal 4,093Metal Railings - Painting 15,947Property Inspection 1,330

Total for 2046 $29,760

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Ceres Gleann Homeowners Association Detail Report by Category


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Roof - Community Center - Replacement

Asset ID 1027Capital

RoofingPlaced in Service January 2004

Useful Life 20Adjustment 3

Replacement Year 2027Remaining Life 10

4,440 SF @ $2.56Asset Cost $11,366.40

Percent Replacement 100%Future Cost $14,549.95

This component funds for the replacement of the roof shingles and related flashings on the

Community Center. This procedure includes removal and disposal of the old roofing and

replacement of the waterproof barrier sheet beneath the shingles.

Schwindt and Company estimated 4,440 square feet of roofing material.

This work should be performed by a qualified roofing contractor.

The cost is per a per square foot estimate provided by Clow Roofing and Siding.

The life estimate is per the Association.

Roof - Gazebo - Replacement



Useful Life 25Replacement Year 2029

Remaining Life 12

1 Total @ $1,537.50Asset Cost $1,537.50


This component funds for the replacement of the roof shingles and related flashings on the

gazebo. This procedure includes removal and disposal of the old roofing and replacement of

the waterproof barrier sheet beneath the shingles.

This work should be performed by a qualified roofing contractor.

Clow Roofing (503) 281-1238 estimated a cost of $1,500 to replace.

The estimated useful life is per the Association.

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Roof - Gazebo - Replacement continued...

Note: This is a provision for an anticipated expense. Should the Association find that the cost

of this item is greater than or less than the amount provided for herein, this study should be

updated to reflect the actual component cost.

Roof Inspection

Asset ID 1052Non-Capital



Remaining Life 1

1 Total @ $153.75Asset Cost $153.75

Percent Replacement 100%Future Cost $157.59

Done with property inspection.

This component funds for the periodic inspection and maintenance of roofing and related

elements of the clubhouse.

The inspection should be performed by a qualified roofing professional and should include a

written summary of conclusions with specific recommendations for any needed repairs or

maintenance.

Recommended maintenance and repairs should be performed in a timely manner by a licensed

roofing contractor.

No inspection is occurs in 2024 due to the planned replacement.

This component is an estimate. If the actual cost of this component is determined to be

different from this estimate, the reserve study should be updated to reflect the actual cost.

Roofing - Total Current Cost $12,904

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Siding - Repair


SidingPlaced in Service January 2004


Remaining Life 17

2,268 SF @ $10.25Asset Cost $5,811.75


This component funds for the repair of the Community Center exterior. This provision is for damaged sections on, which is estimated to be 25%.

Schwindt and Company estimated 2,268 square feet of siding.

The cost and useful life assumptions are based on accepted industry estimates as established by RS Means and/or The National Construction Estimator. The Association should obtain a bid to confirm this estimate.Note: This is a provision for an anticipated expense. Should the Association find that the cost



Siding - Total Current Cost $5,812

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Gazebo - Paint


PaintingPlaced in Service January 2015


Remaining Life 8



This component funds for the painting of the Gazebo every 4 years. This includes the maintenance of the floor.

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

Interior - Paint



Useful Life 15Adjustment -1


4,076 SF @ $1.02Asset Cost $4,157.52


This component funds for painting the interior walls every 10 years.

Schwindt and Company estimated 4,076 square feet of walls.


Siding - Paint





2,268 SF @ $1.54Asset Cost $3,492.72


This component funds for the painting of the community center exterior siding.

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Siding - Paint continued...

Painting includes power washing the surface to be painted; replacing cracked caulking; scraping, sanding and priming peeling paint; nailing down loose boards and checking for dry rot; spraying all siding with 2 coats of Sherwin Williams Super paint; and roll and brush all trim with 2 coats satin or semi gloss Super paint.

Schwindt and Company estimated 2,268 square feet of siding.

The cost is based on a per square foot estimate provided by a local vendor.

The useful life estimate is per the Association.




Painting - Total Current Cost $8,163

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Acoustic Panels - Replacement


Building ComponentsPlaced in Service January 2004


Remaining Life 7

1 Total @ $1,711.75Asset Cost $1,711.75


This component funds for replacement of the acoustic panels in the Community Center.

According to the Association, they have estimated $495 for absorptive panels, $495 for Diffusive panels, and $680 for a contractor, including scaffolding necessary.


Carpet - Replacement





1,968 SF @ $4.10Asset Cost $8,068.80


This component funds for the replacement of the carpet in the Community Center.

Schwindt and Company estimated 1,968 square feet of carpet.

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

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Plumbing Fixtures - Replacement




Remaining Life 7



This component funds for the replacement of the plumbing fixtures in the Community Center.


Vinyl Flooring - Replacement





1,070 SF @ $6.15Asset Cost $6,580.50


This component funds for the replacement of the vinyl flooring.

Schwindt and Company and the following estimates:

2 bathrooms @ 10 x 10: 200 sf

Kitchen @ 15 x 10: 150 sf

Dance Floor @ 24 x 30: 720 sf

Total: 1,070 sf


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Building Components - Total Current Cost $16,617

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Gutters and Downspouts - Replacement


Gutters and DownspoutsPlaced in Service January 2004



300 LF @ $6.15Asset Cost $1,845.00


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

same time that the roofing is replaced. This component is scheduled to occur in 2022 with the

first phase of the roof replacement.

It is recommended that the gutters be replaced at the time the roofing is replaced to ensure a

high quality, water-tight transition between the roof edge and the gutters.

All ongoing expenses for cleaning, maintenance and minor repairs should be included in the

annual operating budget for the association.

Schwindt and Company estimated 300 linear feet of gutters.

The cost is based on a per linear foot estimate provided by Great Northwest Gutters, a local

service provider.


Gutters and Downspouts - Total Current Cost $1,845

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PAGE 45 of 68

Cedar Fence - Replacement


Fencing/SecurityPlaced in Service January 2004



107 LF @ $27.67Asset Cost $2,960.69


This component funds for the replacement of the cedar fence on the south and west side of the garden area by the gazebo.

According to the Association, there is107 linear feet of fencing.

The cost is based on a per linear foot estimate provided by Rick's Custom Fencing & Decking.


Masonry Wall - Brick Re-point




Remaining Life 12

9,613 SF @ $10.25Asset Cost $9,853.32


This component funds for the re-pointing of the brick masonry walls on Rhododendron, Magnolia, and by the gazebo. Normally 10 to 15% of the wall will need re-pointing.

The Association estimated 9,613 square feet of walls.


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Masonry Wall - Clean and Seal




Remaining Life 1

1 Total @ $2,000.00Asset Cost $2,000.00


This component funds for the cleaning and sealing of the masonry fences on Rhododendron, Magnolia, and near the gazebo.

The Association estimated 9,613 square feet of walls.

The cost is based per the Association.

The useful life assumption is based on accepted industry estimates as established by RS Means

and/or The National Construction Estimator.

Fencing/Security - Total Current Cost $14,814

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PAGE 47 of 68

Air Conditioning - Replacement


EquipmentPlaced in Service January 2004



1 Total @ $3,587.50Asset Cost $3,587.50


This component funds for the replacement of the air conditioning unit in the Community Center.

The cost and useful life are based on information from Home Comfort, Inc. 503-623-2341

Dishwasher - Replacement




Remaining Life 0



This component funds for the replacement of the dishwasher.

The cost estimate is based on accepted industry estimates as established by RS Means and/or

The National Construction Estimator.


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Electric Range - Replacement




Remaining Life 2



This component funds for the replacement of the electric range in the Community Center.




Entertainment Equipment - Replacement




Remaining Life 7

1 Total @ $2,255.00Asset Cost $2,255.00


This component funds for the replacement of the television and audio-visual (AV) equipment.

The cost estimates are per the Association. The Association should obtain a bid to confirm this estimate.

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

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Furnace - Replacement




Remaining Life 2

1 Total @ $3,587.50Asset Cost $3,587.50


This component funds for the replacement of the gas furnace in the Community Center.


Garbage Disposal - Replacement




Remaining Life 7



This component funds for the replacement of the garbage disposal.




Gas Fireplace - Replacement





1 Total @ $4,612.50Asset Cost $4,612.50


This component funds for the replacement of the gas fireplace.

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Gas Fireplace - Replacement continued...


Refrigerator/Bottom Freezer - Replacement




Remaining Life 0

1 Total @ $2,050.00Asset Cost $2,050.00


This component funds for the replacement of the refrigerator with bottom unit freezer.

The cost estimate is per the Association and includes delivery.


Water Heater - Replacement




Remaining Life 2

1 Total @ $1,025.00Asset Cost $1,025.00


This provision is for the replacement of the water heater.


Equipment - Total Current Cost $18,860

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Bathrooms - Renewal


Interior FurnishingsPlaced in Service January 2004



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


This component funds for the renewal of the men's and women's bathrooms. The renewal is for the replacement/upgrade of fixtures including the toilets and sinks.





Folding Chairs - Replacement




Remaining Life 7

116 Each @ $28.19Asset Cost $3,270.04


This component fuds for the replacement of the 116 folding chairs.

The cost is per Costco. The Association should obtain a bid to confirm this estimate.


The count is per the Association.

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Folding Tables - 4' - Replacement




Remaining Life 7

15 Each @ $51.25Asset Cost $768.75


This component funds for the replacement of the eight 4' folding tables and seven 4' round tables.

The cost is per Amazon. The Association should obtain a bid to confirm this estimate.


The count estimate is per the Association.

Folding Tables - 6' - Replacement




Remaining Life 7

12 Each @ $140.94Asset Cost $1,691.28


This component funds for the replacement of the twelve 6' folding tables.

The cost estimate is based on Costco pricing. The Association should obtain a bid to confirm this estimate.


The count estimate is per the Association..

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Kitchen - Renewal





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


This component funds for the renewal of the kitchen. The renewal is for the replacement/upgrade of fixtures including the cabinets and sinks.





Interior Furnishings - Total Current Cost $18,980

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Landscape Lighting Fixtures - Replacement


LightingPlaced in Service January 2004


Remaining Life 7

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


This component funds for the replacement of the landscape lighting fixtures and controllers.

This includes the light fixtures and controllers.


Lighting - Total Current Cost $2,562

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PAGE 55 of 68

Concrete - Repairs


Grounds ComponentsPlaced in Service January 2016


Remaining Life 4

1 Total @ $4,100.00Asset Cost $4,100.00


This component funds for the partial replacement or repair of the concrete sidewalks and

walkways in the common area, and concrete pads for mailboxes. Since the expected useful life

of a typical concrete sidewalk installation is greater than thirty years, this provision funds for

the replacement of any damaged portions of the walkways.

Since the expected useful life of a typical concrete installation is greater than 30 years, this

component only provides funding for the replacement or repair of a portion of the total amount

of common area concrete walkways and mailbox pads.

The Association estimated 9,447.3 square feet of concrete sidewalks.

The cost is based on an estimate provided by the Association.

The Association should obtain a bid to confirm this estimate.





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Garden Shed - Replacement





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


This component funds for the replacement of the garden shed. This includes removal and disposal of the old shed.




Landscape Sod Replacement - Renewal




Remaining Life 0

1 Total @ $15,000.00Asset Cost $15,000.00


This component funds for the renewal of landscape shrubs and bushes in the common area.

The cost assumption is based on information from Greg Russel 503-932-0151.

the useful life estimate is per the Association.

The Association should obtain a bid to confirm this estimate.

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Metal Patio Furniture - Replacement





1 Total @ $1,537.50Asset Cost $1,537.50


This component funds for the replacement of the patio furniture, consisting of the glass and metal table and the associated fabric and metal chairs.

The cost is based on accepted industry estimates as established by RS Means and/or The

National Construction Estimator.

The count and useful life estimate is per the Association.

Grounds Components - Total Current Cost $30,887

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Double Doors - Replacement


Doors and WindowsPlaced in Service January 2004


Remaining Life 2

3 Each @ $1,025.00Asset Cost $3,075.00


This component funds for the replacement of the exterior double doors of the Community Center.

Schwindt and Company counted three doors.


Sunshades - Replacement




Remaining Life 20

10 Each @ $358.75Asset Cost $3,587.50


This component funds for the replacement of the sunshades in the Community Center.

Schwindt and Company estimated 10 sunshades.


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Windows - Replacement




Remaining Life 17

1 Total @ $10,762.50Asset Cost $10,762.50


This component funds for the replacement of the windows in the Community Center.

Schwindt and Company counted the following:

10 windows @ $1,000: $10,000

2 windows @ $250: $ 500

Total: $10,500


Doors and Windows - Total Current Cost $17,425

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Asphalt - Overlay


Common Area AsphaltPlaced in Service January 2004


Remaining Life 15

4,800 SF @ $2.50Asset Cost $12,000.00


This component funds for the overlay of the asphalt area.

Schwindt and Company estimated 4,800 square feet of asphalt.

The cost is based on a per square foot estimate provided by Coast Paving. The Association should obtain a bid to confirm this estimate.



Asphalt - Seal Coat




Remaining Life 3

4,800 SF @ $0.31Asset Cost $1,488.00


This component funds for the seal coating of the asphalt area.

Schwindt and Company estimated 4,800 square feet of asphalt.

The cost is based on a per square foot estimate provided by Coast Paving. The Association should obtain a bid to confirm this estimate.



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Metal Railings - Painting




Remaining Life 9

507 LF @ $15.37Asset Cost $7,792.59


This component funds for the painting of the metal railings/fencing. The Association estimated the following:

Gazebo: 35'6"

Rhododendron Entrance: 117'10" and 33'6"

Magnolia Entrance: 94'4" and 48'6"

Garden (north & east): 80'

Community Center: 97'8"

The life expectancy is per the Association.

The cost is based on a cost per linear foot provided by Verhaalen painting, and provides for

power washing and two coats of paint.

Metal Railings - Painting(2017)




Remaining Life 0

1 Total @ $6,000.00Asset Cost $6,000.00


This component funds for the painting of the metal railings/fencing in 2017. The Association estimated the following:

Gazebo: 35'6"

Rhododendron Entrance: 117'10" and 33'6"

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Metal Railings - Painting(2017) continued...

Magnolia Entrance: 94'4" and 48'6"

Garden (north & east): 80'

Community Center: 97'8"

The life expectancy is per the Association.

The cost is based on a cost per linear foot provided by Verhaalen painting, and provides for

power washing and two coats of paint.

Common Area Asphalt - Total Current Cost $27,281

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Building Envelope Inspection


InspectionPlaced in Service January 2004


Remaining Life 12

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


This component funds for a building envelope inspection.

The inspection should be done by a company which specializes in such inspections.



This component is an estimate. If the actual cost of this component is determined to be

different from this estimate, the reserve study should be updated to reflect the actual cost.

Property Inspection


InspectionPlaced in Service January 2016


Remaining Life 0



This component funds for an inspection of the common area property. It includes, but is not limited to the following:

exterior and interior clubhouse lightingclubhouse recreational & fitness areasclubhouse kitchen; clubhouse gas connectionsclubhouse hot water heatermailboxesfences in the common areaclubhouse doors & windowsclubhouse gutters & downspoutsexterior clubhouse walls

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Property Inspection continued...

interior and exterior clubhouse paintcommon area asphalt and concrete, including but not limited to seal coatgazebo roof.

Not included in the annual inspection are the following items: HVAC (still to be performed semiannually by current firm), fire extinguishers (inspected semiannually by current firm), Roof (see item #2 above), and building envelope (see item #1 above). Also not included are the recommendations to inspect storm drains and sewer lateral connections. Storm drains are a responsibility of the City of Dallas and sewer laterals are the responsibility of individual homeowners.

The purpose of the inspection is for the inspector to provide a written condition status report to the board to assist them in ongoing maintenance of the common are property. to assist the board in determining whether the timing of the repair and/or replacement of items in this study need to be accelerated or delayed.

Inspection - Total Current Cost $3,725

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Additional Disclosures

Levels of Service

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

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

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

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

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

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

Terms and Definitions

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

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

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

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

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

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

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

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

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

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

the Association or cooperative.

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

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

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

observed or reported characteristics.

CURRENT REPLACEMENT COST: See Replacement Cost.

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

would be a Surplus.

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

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

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

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

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

of a Reserve Study.

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

Balance.

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

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

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

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

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

FFB = Current Cost X Effective Age / Useful Life

or

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

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

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

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

funding.

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

Funding Plan goals:

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

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

funded.

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

reserves required by local statues.

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

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

conservative than fully funding.

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

from that fund.

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

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

repair or Replacement Costs for the reserve Components.

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

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

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

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

Reserve Study.

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

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

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

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

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

Component during that particular year.

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

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

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

provided and not audited.

RESERVE PROVIDER: An individual that prepares Reserve Studies.

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

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

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

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

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

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

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

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

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

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

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

Revised 10/3/2016

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