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SCHWINDT & CO. (503) 227-1165PAGE 1 of 33

WILSONVILLE MEADOWS HOMEOWNERS ASSOCIATION, INC.

MAINTENANCE PLAN

RESERVE STUDY

LEVEL I: FULL RESERVE STUDY FUNDING ANALYSIS

2014

www.schwindtco.com503.227.1165

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Wilsonville Meadows Homeowners Association, Inc.

Executive Summary

Year of Report:

January 01, 2014 to

Number of Units:

308 Units

Parameters:

Beginning Balance: $53,148

Year 2014 Suggested Contribution: $3,000

Year 2014 Projected Interest Earned: $51

Inflation: 2.50%

Annual Increase to Suggested Contribution: 2.50%

Lowest Cash Balance Over 30 Years (Threshold): $9,564

Average Reserve Assessment per Unit: $9.74

Prior Year’s Actual Contribution: $2,797DRAFT

jwong

Letter Head

TABLE OF CONTENTSWilsonville Meadows Homeowners Association, Inc.


Disclosure Information 4 of 33

MAINTENANCE PLAN

Maintenance Plan 8 of 33

RESERVE STUDY

Property Description 14 of 33

Cash Flow Method - Threshold Funding Model Summary 15 of 33

Cash Flow Method - Threshold Funding Model Projection 16 of 33

Component Summary By Category 17 of 33

Component Summary By Group 18 of 33

Distribution by Percentage of Ideally Funded 19 of 33

Annual Expenditure Detail 20 of 33

Detail Report by Category 23 of 33

Additional Disclosures 30 of 33

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WILSONVILLE MEADOWS HOMEOWNERS ASSOCIATION, INCMaintenance Plan

Reserve Study – Onsite Disclosure Information

2014

We have conducted an onsite reserve study and maintenance plan for Wilsonville Meadows Homeowners Association, inc for the year beginning January 1, 2014, in accordance with guidelines established by Community Associations Institute and the American Institute of Certified Public Accountants.

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

In addition to providing the Reserve Study and Maintenance Plan, we also provide tax services to the Association

Assumptions used for inflation, interest, and other factors are detailed in page 15. Income tax factors were not considered due to the uncertainty of factors affecting net taxable income and the election of tax form to be filed.

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

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

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.Article 5, Section 3.2 of the Association’s Declaration states: “The following portions of the Initial Development are designated as Common Maintenance Areas: (a) Any portion of the Initial Development designated as “Common Maintenance Area” on the plat of the Initial Development. (b) The wall running along Wilsonville Road and the intersection of Meadows Loop, located on Lots 8, 9, 10, 33 and 34 of the Initial Development, together with the landscaped area between the wall and Wilsonville Road. (c) Any project signs located within the above areas.”.

Article 7, Section 7.1 states: “The Association shall provide for and perform all maintenance upon any Common Areas and the Common Maintenance Areas and all Improvements thereon.”.

According to the Association, all Insurance Deductibles will be funded for in the Operating Budget.DRAFT


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.

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.DRAFT



MAINTENANCE PLAN

2014

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Wilsonville Meadows Homeowners Association, Inc. Executive Summary of Maintenance Plan


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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Wilsonville Meadows Homeowners Association, Inc.Maintenance Plan

2014

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.

Lighting: Exterior– Inspection/Maintenance

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

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

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

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

Repairs and inspections should be completed by a qualified professional.

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

Frequency: Bi-Weekly

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


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

Frequency: Monthly

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Wall – Brick – Inspection

The brick wall located along the perimeter of the property should be checked semi-annually for overall integrity and safety. The overall condition of the wall should be checked for deficiencies such as vegetation encroachment, debris buildup, moss, crumbling mortar and/or vandalism.


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

Frequency: Semiannually

Trees - Maintenance

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

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

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

Landscape Maintenance

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

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

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

Irrigation System

Periodic maintenance to the 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.

Irrigation systems also require periodic testing to ensure proper operation. Sometimes this testing is mandated by ordinance or building codes. All work on irrigation systems must be performed by licensed

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contractors who specialize in this type of work.

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

Frequency: Annually

Brick (or Masonry) Maintenance & Repair

Maintenance will include cleaning and repairing any damaged surface areas, repair of the mortar joints as required, and the application of a suitable masonry sealer.

It is recommended that the same type of sealer be used on subsequent renewals as this will minimize the chance that incompatible materials will be used.

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

Frequency: Every 5 years, beginning in 2018

Brick Repointing

Repointing brick improves water penetration resistance and will increase the life of the component.

Defective mortar should be removed, the joints cleaned and repointed with the appropriate type mortar, and a suitable sealer applied. It is recommended that the same type of sealer be used on subsequent renewals as this will minimize the chance that incompatible materials will be used.

This work should be performed by a licensed brick mason.

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

Frequency: Every 25 years, beginning in 2038

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

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


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

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 I: FULL RESERVE STUDY FUNDING ANALYSIS

2014

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Wilsonville Meadows Homeowners Association, Inc. Category Detail Index


Asset IDDescription Replacement Page

Lighting1009 Lights - Replacement 2014 23 of 33

Grounds Components1016 Barkdust - Renew 2015 24 of 331010 Landscaping - Replacement 2028 24 of 331018 Park Equipment - Replacement 2023 25 of 33

Signs1001 Entry Monument Signs and Letters - Replacement 2014 26 of 33

Wall1015 Wall - Brick - Clean and Seal 2018 27 of 331002 Wall - Brick - Repointing & Repair 2038 27 of 33

Irrigation System1007 Irrigation System - Controller - Replacement 2018 29 of 331017 Irrigation System - Refurbish 2029 29 of 33

Total Funded Assets 9Total Unfunded Assets 0Total Assets 9

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Wilsonville Meadows Homeowners Association, Inc. Property Description


Wilsonville Meadows Homeowners Association, Inc. consists of 308 Single Family Homes located in Wilsonville, Oregon. The Association shall provide maintenance and repairs to the brick wall, signs on the wall and accent lights, and landscaping between the wall and the roads adjacent. 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, local venders, and various construction pricing and scheduling manuals to determine useful lives and replacement costs.

A site visit was performed by Schwindt & Company in 2013. Schwindt and Company did not investigate components as to condition and estimated useful life.

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 75% member approval, to increase regular assessments, levy special assessments, otherwise the Association may delay repairs or replacements until funds are available.

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Wilsonville Meadows Homeowners Association, Inc.Wilsonville, Oregon

Cash Flow Method - Threshold Funding Model Summary


Report Date July 19, 2013

Budget Year Beginning January 01, 2014Budget Year Ending December 31, 2014

Total Units 308

Report Parameters

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

2014 Beginning Balance $53,148.00

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. It is assumed that the threshold method is funded with a positive threshold balance, therefore, “fully funded”.

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

This funding scenario begins with a contribution of $3,000 in 2014 and increases 2.50% each year for the remaining years of the study. A minimum balance of $9,564 is maintained.

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 Annually Contribution $3,000.00$9.74 per unit annually

Average Net Annually Interest Earned $50.55Total Annually Allocation to Reserves $3,050.55

$9.90 per unit annually

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Wilsonville Meadows Homeowners Association, Inc. Cash Flow Method - Threshold Funding Model Projection


Beginning Balance: $53,148Projected

Annual Annual Annual EndingYear Contribution Interest Expenditures Reserves

2014 3,000 51 5,601 50,5972015 3,075 51 2,460 51,2632016 3,152 54 54,4702017 3,231 58 57,7582018 3,311 52 9,360 51,7612019 3,394 55 55,2102020 3,479 59 58,7482021 3,566 59 2,853 59,5212022 3,655 63 63,2392023 3,747 47 19,645 47,3882024 3,840 48 3,072 48,2052025 3,936 52 52,1932026 4,035 56 56,2842027 4,136 57 3,308 57,1682028 4,239 39 22,721 38,7252029 4,345 21 21,724 21,3672030 4,454 22 3,563 22,2802031 4,565 27 26,8722032 4,679 32 31,5822033 4,796 23 12,997 23,4042034 4,916 19 9,178 19,1612035 5,039 24 24,2242036 5,165 25 4,132 25,2822037 5,294 31 30,6072038 5,426 22 14,425 21,6302039 5,562 23 4,449 22,7652040 5,701 28 28,4942041 5,843 34 34,3722042 5,989 36 4,792 35,6052043 6,139 10 32,190 9,564

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Wilsonville Meadows Homeowners Association, Inc. Component Summary By Category


Serv

ice

Dat

e in

Year

Repla

cem

ent

Use

ful

Adj

ustm

ent

Remai

ning

Uni

ts

Cost

Uni

t

Cost

Curre

nt

Description

LightingLights - Replacement 1989 2014 20 5 0 34 Each 87.00 2,958 Lighting - Total $2,958

Grounds ComponentsBarkdust - Renew 2012 2015 3 0 1 1 Total 2,400.00 2,400Park Equipment - Replacement 1989 2023 30 4 9 1 Total 10,000.00 10,000Landscaping - Replacement 2013 2028 15 0 14 1 Total 10,000.00 10,000 Grounds Components - Total $22,400

SignsEntry Monument Signs and Letters - Repla.. 1989 2014 20 4 0 1 Total 2,643.32 2,643 Signs - Total $2,643

WallWall - Brick - Clean and Seal 2013 2018 5 0 4 1 Total 5,730.00 5,730Wall - Brick - Repointing & Repair 2013 2038 25 0 24 189 Total 10.00 1,895 Wall - Total $7,625

Irrigation SystemIrrigation System - Controller - Replacement 2008 2018 10 0 4 1 Total 350.00 350Irrigation System - Refurbish 1989 2029 40 0 15 1 Total 15,000.00 15,000 Irrigation System - Total $15,350

Total Asset Summary $50,976

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Wilsonville Meadows Homeowners Association, Inc. Component Summary By Group


Serv

ice

Dat

e in

Year

Repla

cem

ent

Use

ful

Adj

ustm

ent

Remai

ning

Uni

ts

Cost

Uni

t

Cost

Curre

nt

Description

CapitalEntry Monument Signs and Letters - Repla.. 1989 2014 20 4 0 1 Total 2,643.32 2,643Irrigation System - Controller - Replacement 2008 2018 10 0 4 1 Total 350.00 350Irrigation System - Refurbish 1989 2029 40 0 15 1 Total 15,000.00 15,000Lights - Replacement 1989 2014 20 5 0 34 Each 87.00 2,958Park Equipment - Replacement 1989 2023 30 4 9 1 Total 10,000.00 10,000 Capital - Total $30,951

Non-CapitalBarkdust - Renew 2012 2015 3 0 1 1 Total 2,400.00 2,400Landscaping - Replacement 2013 2028 15 0 14 1 Total 10,000.00 10,000Wall - Brick - Clean and Seal 2013 2018 5 0 4 1 Total 5,730.00 5,730Wall - Brick - Repointing & Repair 2013 2038 25 0 24 189 Total 10.00 1,895 Non-Capital - Total $20,025

Total Asset Summary $50,976

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Wilsonville Meadows Homeowners Association, Inc. Distribution by Percentage of Ideally Funded


Life

Remai

ning

Balan

ce

Begin

ning

Dist

ribut

ed

Ass

essm

ent

Dist

ribut

ed

Inte

rest

Expe

nditu

res

Balan

ce

Endi

ng

Description

LightingLights - Replacement 0 2,715 238 6 2,958 0 Lighting - Total $2,715 $238 $6 $2,958

Grounds ComponentsBarkdust - Renew 1 3,760 129 3 3,892Landscaping - Replacement 14 1,567 54 1 1,622Park Equipment - Replacement 9 17,281 591 14 17,887 Grounds Components - Total $22,609 $773 $18 $23,401

SignsEntry Monument Signs and Letters - Repla.. 0 2,426 213 5 2,643 0 Signs - Total $2,426 $213 $5 $2,643

WallWall - Brick - Clean and Seal 4 2,693 92 2 2,788Wall - Brick - Repointing & Repair 24 178 6 184 Wall - Total $2,872 $98 $2 $2,972

Irrigation SystemIrrigation System - Controller - Replacement 4 494 17 511Irrigation System - Refurbish 15 22,034 754 18 22,805 Irrigation System - Total $22,527 $771 $18 $23,316

Grand - Total $53,148 $2,093 $50 $5,601 $49,689

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Wilsonville Meadows Homeowners Association, Inc. Annual Expenditure Detail


Description Expenditures

Replacement Year 2014Entry Monument Signs and Letters - Replacement 2,643Lights - Replacement 2,958

Total for 2014 $5,601

Replacement Year 2015Barkdust - Renew 2,460

Total for 2015 $2,460

No Replacement in 2016No Replacement in 2017

Replacement Year 2018Barkdust - Renew 2,649Irrigation System - Controller - Replacement 386Wall - Brick - Clean and Seal 6,325

Total for 2018 $9,360



Total for 2021 $2,853

No Replacement in 2022

Replacement Year 2023Park Equipment - Replacement 12,489Wall - Brick - Clean and Seal 7,156

Total for 2023 $19,645


Total for 2024 $3,072

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Total for 2027 $3,308

Replacement Year 2028Irrigation System - Controller - Replacement 495Landscaping - Replacement 14,130Wall - Brick - Clean and Seal 8,096

Total for 2028 $22,721

Replacement Year 2029Irrigation System - Refurbish 21,724

Total for 2029 $21,724


Total for 2030 $3,563


Replacement Year 2033Barkdust - Renew 3,837Wall - Brick - Clean and Seal 9,160

Total for 2033 $12,997

Replacement Year 2034Entry Monument Signs and Letters - Replacement 4,331Lights - Replacement 4,847

Total for 2034 $9,178



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Replacement Year 2038Irrigation System - Controller - Replacement 633Wall - Brick - Clean and Seal 10,364Wall - Brick - Repointing & Repair 3,428

Total for 2038 $14,425


Total for 2039 $4,449



Total for 2042 $4,792

Replacement Year 2043Landscaping - Replacement 20,464Wall - Brick - Clean and Seal 11,726

Total for 2043 $32,190

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Wilsonville Meadows Homeowners Association, Inc. Detail Report by Category


Lights - ReplacementAsset ID 1009

CapitalLighting

Placed in Service November 1989Useful Life 20Adjustment 5

Replacement Year 2014Remaining Life 0

34 Each @ $87.00Asset Cost $2,958.00

Percent Replacement 100%Future Cost $2,958.00

This component is for the replacement of the ground lights along Meadows Parkway and Wilsonville Road for monument and accent lighting.

Schwindt and Company estimated 34 lights.

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.

Lights may need to be replaced sooner than their expected lifetime due to possible vandalism.

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

Lighting - Total Current Cost $2,958

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Barkdust - RenewAsset ID 1016

Non-CapitalGrounds Components

Placed in Service January 2012Useful Life 3


1 Total @ $2,400.00Asset Cost $2,400.00


This component is for the barkdust in the planting areas along Wilsonville Road and Meadows Parkway.

The cost and useful life is based on information from Peter Timmen of Showplace Landscape Services.

Landscaping - ReplacementAsset ID 1010

Non-CapitalGrounds Components



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


This component is for the replacement of landscaping shrubs and ground cover along Meadows Parkway and Wilsonville Road.

The cost and useful life is based on the information of Peter Timmen of Showplace Landscape Services.


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Park Equipment - ReplacementAsset ID 1018

CapitalGrounds Components

Placed in Service November 1989Useful Life 30Adjustment 4


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


This provision is for the replacement of the park equipment. According to the Association, they have an agreement with the City of Wilsonville. This includes the swing set, teeter totter, picnic table, bench and playground chips.

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

Grounds Components - Total Current Cost $22,400

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Entry Monument Signs and Letters - Replacement

Asset ID 1001Capital

SignsPlaced in Service November 1989

Useful Life 20Adjustment 4


1 Total @ $2,643.32Asset Cost $2,643.32


This component is for the replacement of the entry monument signs, including lettering and the main entrance oval picture sign.

Schwindt and Company noted that some metal letters were detaching from their backing and appeared to be missing.

Shelly Wells of FastSigns Tigard (503-244-estimated the following costs:

Main monument half-oval sign: $ 214.00Main monument dimensional letters: $1,008.42Secondary entrance (2 monuments) letters: $ 825.90Labor (remove prior signs, install new): $ 595.00

Total: $2,643.32

Shelly noted that signs consisting of metal laminated onto PVC have a general life of 7 years before delaminating.

The Association should obtain a bid to confirm this cost.

Signs - Total Current Cost $2,643DRAFT



Wall - Brick - Clean and SealAsset ID 1015

Non-CapitalWall



1 Total @ $5,730.00Asset Cost $5,730.00


This component is for the washing and sealing of the brick and mortar on the wall along Meadows Parkway and Wilsonville Road.

According to the Association, this was done in 2013 by Snugs Pro Wash at a cost of $5,730.

The useful life assumption is 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 cost.

Wall - Brick - Repointing & RepairAsset ID 1002

Non-CapitalWall



1,895 Total @ $10.00Asset Cost $1,895.00


This component is for the repointing and repair of the brick wall along Meadows Parkway and Wilsonville Road. Normally only a portion of a wall will need repointing and repair, usually 10% to 15% of the total.

Schwindt and Company estimated 1,895 linear feet of wall.

The cost estimate is from a per linear foot estimate from D & R Masonry.

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

In 2013, The Association paid KPMC, LLC (503-656-4723) $8,850 for repairs and repointing to the walls after an accident.

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

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Wall - Brick - Repointing & Repair continued...

updated to reflect the actual component cost

Wall - Total Current Cost $7,625

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Irrigation System - Controller - Replacement

Asset ID 1007Capital

Irrigation SystemPlaced in Service January 2008

Useful Life 10Replacement Year 2018

Remaining Life 4

1 Total @ $350.00Asset Cost $350.00

Percent Replacement 100%Future Cost $386.33

This component is for the replacement of the controller for the irrigation system along Meadows Parkway, Wilsonville Road and the pathway from Wilsonville Road to the park.

The cost and useful life is based on the information from Peter Timmen of Showplace Landscape Services.


Irrigation System - RefurbishAsset ID 1017

CapitalIrrigation System

Placed in Service November 1989Useful Life 40


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


This component is for the repair and refurbishing of the irrigation system installed in 1989, over the next 15 years. This includes the pipes throughout the landscaping.

The cost and useful life estimates are from Peter at Showplace Landscape Services.

The Association should obtain a bid to confirm the cost.

Irrigation System - Total Current Cost $15,350

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

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CONDITION ASSESSMENT: The task of evaluating the current condition of the Component based on observed or reported characteristics.

CURRENT REPLACEMENT COST: See Replacement Cost.

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

EFFECTIVE AGE: The difference between Useful Life and Remaining Useful Life. Not always equivalent to chronological age since some Components age irregularly. Used primarily in computations.

FINANCIAL ANALYSIS: The portion of a Reserve Study where current status of the reserves (measured as cash or Percent Funded) and a recommended reserve contribution rate (reserve Funding Plan) are derived, and the projected reserve income and expense over time is presented. The Financial Analysis is one of the two parts of a Reserve Study.

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

FULLY FUNDED BALANCE (FFB): Total accrued depreciation, an indicator against which actual or projected Reserve Balance can be compared. The Reserve Balance that is in direct proportion to the fraction of life “used up” of the current repair or Replacement Cost. This number is calculated for each Component, then added together for an association total. Two formulas can be utilized, depending on the provider’s sensitivity to interest and inflation effects. Note: Both yield identical results when interest and inflation are equivalent.

FFB = Current Cost X Effective Age / Useful Life

or

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

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

/ (1 + Inflation Rate) ^ Remaining Life]

FUND STATUS: The status of the reserve fund as compared to an established benchmark such as percent funding. The Association appears to be adequately funded as the threshold method.

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

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

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

■ Statutory Funding: Establishing a reserve funding goal of setting aside the specific minimum amount of reserves required by local statues.

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■ 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 who 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 Studyconsists 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

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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.

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