Page 1 Page 2 SPECIAL N OTICE Pursuant to Section 55

Transcription

Assets
$ 6,742.91
704.79
2,719.96
160,889.16
1,000.00
101,195.32
27,334.66
66,772.59
67,107.51
Confidential:
$ (10.00)
$ (10.00)
$ (434,456.90)
For Internal Use Only
$ (2,719.88)
(1,000.00)
(427,588.46)
4,345.64
7,416.26
(14,910.46)
$ (10.00)
Liabilities and Equity
$ 434,466.90
$ 434,466.90
FINANCIAL STATEMENTS - PIERPOINTE CONDOMINIUM
Balance Sheet
January 31, 2012
CURRENT ASSETS
569-1010.0000
CASH-OPERATING/TOWNE
569-1020.0000
PETTY CASH
569-1102.0000
CASH-OP RESERVE/TOWNE
569-1103.0000
CASH-REP RESERVE/TOWNE
569-1104.0000
CASH-GENERAL MAINT RESERVE
569-1105.0000
CASH-CD/RR/BNKCMLTH/198809
569-1110.0000
CASH-MM/RR/FULTON/33006152
569-1115.0000
CASH-CD/RR/HERITAGE/799540
569-1116.0000
TOTAL CURRENT ASSETS
LONG TERM ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
569-2302.0000
EMP MISC DEDUCTIONS
TOTAL CURRENT LIABILITIES
9:56 am
ACCUM OPERATING RESERVE
ACCUM GENERAL MAINT RESERV
ACCUM REPLACEMENT RESERVE
REPL RESERVES Y-T-D EXPS
RETAINED EARNINGS
CURRENT EARNINGS
LONG TERM LIABILITIES
TOTAL LIABILITIES
CAPITAL & EQUITY
569-3200.0000
569-3202.0000
569-3300.0000
569-3400.0000
569-3498.0000
TOTAL EQUITY
February 10, 2012
9:56 am
TOTAL LIABILITIES & EQUITY
February 10, 2012
Balance Sheet
January 31, 2012
$ (434,466.90)
Confidential:
Budget Comparison Statement
For the Period Ended January 31, 2012
462,000.00
500.00
0
4,500.00
150.00
467,150.00
Annual
Budget
23,399.60 $
(41.67)
.58
(318.50)
(12.50)
23,027.51 $
3,600.00
275.00
2,500.00
50,000.00
14,225.00
13,650.00
250.00
22,150.00
100.00
2,500.00
200.00
800.00
1,500.00
275.00
225.00
3,300.00
115,550.00
YTD
Variance
$
300.00
16.02
113.33
(828.68)
1,185.42
(276.49)
20.83
18.47
8.33
58.53
(3.28)
56.99
125.00
22.92
18.75
(162.65)
673.49 $
YTD
Actual
61,899.60
0
.58
56.50
0
61,956.68
$
YTD
Budget
$
0
6.90
95.00
4,995.35
0
1,413.99
0
1,827.36
0
149.80
19.95
9.68
0
0
0
437.65
8,955.68
Current
Variance
38,500.00
41.67
0
375.00
12.50
38,929.17
$
Monthly
Actual
$
300.00
22.92
208.33
4,166.67
1,185.42
1,137.50
20.83
1,845.83
8.33
208.33
16.67
66.67
125.00
22.92
18.75
275.00
9,629.17
Monthly
Budget
23,399.60
(41.67)
.58
(318.50)
(12.50)
23,027.51
$
38,400.00
44,400.00
11,000.00
93,800.00
Title
$
300.00
16.02
113.33
(828.68)
1,185.42
(276.49)
20.83
18.47
8.33
58.53
(3.28)
56.99
125.00
22.92
18.75
(162.65)
673.49
3,088.00
1,328.02
(658.11)
3,757.91 $
$
61,899.60
0
.58
56.50
0
61,956.68
$
$
$
$
0
6.90
95.00
4,995.35
0
1,413.99
0
1,827.36
0
149.80
19.95
9.68
0
0
0
437.65
8,955.68
112.00
2,371.98
1,574.78
4,058.76
$
38,500.00
41.67
0
375.00
12.50
38,929.17
$
$
$
$
300.00
22.92
208.33
4,166.67
1,185.42
1,137.50
20.83
1,845.83
8.33
208.33
16.67
66.67
125.00
22.92
18.75
275.00
9,629.17
3,200.00
3,700.00
916.67
7,816.67
$
INCOME-ASSOCIATION FEES
ELEVATOR MOVE IN/MOVE OUT
INTEREST-DELINQUENT FEES
INTEREST INCOME
LATE FEES INCOME
TOTAL INCOME
$
$
$
AUDITING EXPENSES
BANK SERVICE CHARGE
LEGAL EXPENSES
EMPLOYEE SALARY/TAXES/BENEF
PROPERTY INSURANCE-FLOOD
PROPERTY INSURANCE
CORPORATE FEES
MANAGEMENT FEE
MISC EXP/GENERAL & ADMIN
OFFICE EXP/PRINTING
COUPON BOOKS
POSTAGE
PROFESSIONAL FEES
TAXES-STATE
TAXES-CORPORATE
TELEPHONE
TOTAL GEN. & ADM. EXPENSE
3,088.00
1,328.02
(658.11)
3,757.91
2,000.00
6,000.00
10,000.00
1,000.00
7,000.00
14,750.00
$
(521.33)
4.16
(2,116.67)
(218.87)
583.33
.01
112.00
2,371.98
1,574.78
4,058.76
688.00
495.84
2,950.00
302.20
0
1,229.16
$
166.67
500.00
833.33
83.33
583.33
1,229.17
(521.33)
4.16
(2,116.67)
(218.87)
583.33
.01
3,200.00
3,700.00
916.67
7,816.67
Confidential:
688.00
495.84
2,950.00
302.20
0
1,229.16
$
166.67
500.00
833.33
83.33
583.33
1,229.17
UTILITIES-WATER
UTILITIES-ELECTRIC
UTILITIES-GAS
TOTAL UTILITIES
9:56 am
MAINT.-ENTRY SYSTEM
MAINT.-WASTE DISPOSAL
MAINT.-JANITORIAL SERVICE
MAINT.-GATE MAINTENANCE
MAINT.-FIRE SPRINKLER SYSTE
MAINT.-LAWN CONTRACT
February 10, 2012
125.00
0
0
0
200.00
0
0
2,405.32
9,807.92
0
0
120.00
18,323.44
$
$
0
(1,000.00)
(1,000.00) $
375.00
(875.00)
(500.00) $
125.00 $
83.33
225.00
20.83
(116.67)
83.33
141.67
(1,321.99)
(8,224.59)
75.00
125.00
5.00
(11,048.46) $
YTD
Variance
467,150.00
11,000.00
0
11,000.00
4,500.00
155,000.00
159,500.00
3,000.00
1,000.00
2,700.00
250.00
1,000.00
1,000.00
1,700.00
13,000.00
19,000.00
900.00
1,500.00
1,500.00
87,300.00
Annual
Budget
For the Period Ended January 31, 2012
$
0
13,791.67
13,791.67
$
(8,117.06) $
YTD
Actual
250.00
83.33
225.00
20.83
83.33
83.33
141.67
1,083.33
1,583.33
75.00
125.00
125.00
7,274.98
$
916.67
1,000.00
1,916.67
$
0
YTD
Budget
$
375.00
12,916.67
13,291.67
$
47,046.22
$
Current
Variance
125.00
83.33
225.00
20.83
(116.67)
83.33
141.67
(1,321.99)
(8,224.59)
75.00
125.00
5.00
(11,048.46)
$
916.67
0
916.67
$
14,910.45
Monthly
Actual
$
375.00
(875.00)
(500.00)
$
38,929.16
$
Monthly
Budget
125.00
0
0
0
200.00
0
0
2,405.32
9,807.92
0
0
120.00
18,323.44
$
0
(1,000.00)
(1,000.00)
$
14,910.46
Title
$
0
13,791.67
13,791.67
$
(8,117.06)
$
$
250.00
83.33
225.00
20.83
83.33
83.33
141.67
1,083.33
1,583.33
75.00
125.00
125.00
7,274.98
$
916.67
1,000.00
1,916.67
$
.01
$
$
375.00
12,916.67
13,291.67
$
47,046.22
$
$
MAINT.-LANDSCAPING EXTRAS/T
MAINT.-IRRIGATION
MAINT.-ELECTRICAL REPAIRS
MAINT.-SIGNS
MAINT.-HEAT & A/C CONTRACT
MAINT.-REPAIR/OPERATING SUP
MAINT.-FIRE ALARM MONITOR
MAINT.-ELEVATOR CONTRACT
MAINT.-GEN MAINT & REPAIRS
MAINT.-GENERATOR CONTRACT/F
MAINT.-BOOSTER PUMP REPAIR
MAINT.-GROUNDS/SNOW REMVL
TOTAL MAINTENANCE
$
916.67
0
916.67
$
14,910.45
$
RESERVES-EARNED INTEREST
REPLACEMENT RESERVE
TOTAL REPLACEMENT RESERVE
$
38,929.16
$
$
GENERAL OPERATING RESERVE
GENERAL MAINT RESERVE
TOTAL CAPITAL/OPER RESVRS
$
14,910.46
$
TOTAL EXPENSES/RESERVES
$
.01
Confidential:
$
9:56 am
NET INCOME
February 10, 2012
$ 424,178.74
Balance Sheet
December 31, 2011
Assets
$ 7,873.95
704.79
1,803.21
151,386.71
101,195.32
27,334.66
66,772.59
67,107.51
$ 424,178.74
$ (15,995.00)
Liabilities and Equity
$ (25.00)
(15,970.00)
$ (15,995.00)
$ (408,183.74)
$ (424,178.74)
$ (1,803.21)
(551,586.14)
137,789.35
(3,225.83)
10,642.09
Confidential:
CURRENT ASSETS
569-1010.0000
CASH-OPERATING/TOWNE
569-1020.0000
PETTY CASH
569-1102.0000
CASH-OP RESERVE/TOWNE
569-1103.0000
CASH-REP RESERVE/TOWNE
569-1105.0000
CASH-CD/RR/BNKCMLTH/198809
569-1110.0000
CASH-MM/RR/FULTON/33006152
569-1115.0000
569-1116.0000
TOTAL CURRENT ASSETS
LONG TERM ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
569-2302.0000
EMP MISC DEDUCTIONS
569-2311.0000
DEFERRED REVENUE
TOTAL CURRENT LIABILITIES
LONG TERM LIABILITIES
TOTAL LIABILITIES
CAPITAL & EQUITY
569-3200.0000
ACCUM OPERATING RESERVE
569-3300.0000
ACCUM REPLACEMENT RESERVE
569-3400.0000
REPL RESERVES Y-T-D EXPS
569-3498.0000
RETAINED EARNINGS
CURRENT EARNINGS
TOTAL EQUITY
TOTAL LIABILITIES & EQUITY
January 14, 2012 4:26 pm
January 14, 2012
4:26 pm
Balance Sheet
December 31, 2011
Confidential:
Monthly
Budget
Current
Variance
YTD
Budget
For the Period Ended December 31, 2011
Monthly
Actual
YTD
Actual
426,481.96
(1,487.13)
50.00
1,695.00
7.40
4,366.34
200.00
431,313.57
Title
$
$
432,000.00
0
0
0
0
2,000.00
100.00
434,100.00
$
$
4,585.00
79.20
2,762.00
44,157.14
13,924.00
17,813.18
204.08
21,818.88
895.21
2,520.00
590.60
803.48
13,703.00
0
160.00
(501.00)
3,195.80
126,710.57
$
(15,543.40)
0
0
0
6.90
190.22
16.66
(15,329.62)
$
$
$
5,800.00
275.00
2,500.00
38,500.00
14,000.00
22,600.00
250.00
20,600.00
0
2,000.00
250.00
1,000.00
4,600.00
250.00
400.00
500.00
3,550.00
117,075.00
$
20,456.60
0
0
0
6.90
356.88
25.00
20,845.38
$
$
$
483.34
17.25
163.34
(3,169.02)
1,166.66
469.35
20.84
(110.70)
(795.21)
(113.76)
(5.86)
61.78
383.34
20.84
33.34
41.66
33.59
(1,299.22)
YTD
Variance
414.12
440.02
1,410.68
2,264.82
Annual
Budget
432,000.00
0
0
0
0
2,000.00
100.00
434,100.00
36,000.00
0
0
0
0
166.66
8.34
36,175.00
$
$
(5,518.04) $
(1,487.13)
50.00
1,695.00
7.40
2,366.34
100.00
(2,786.43) $
$
0
5.66
45.00
6,377.36
0
1,413.99
0
1,827.36
795.21
280.42
26.70
21.56
0
0
0
0
262.25
11,055.51
41,585.88
30,159.98
6,989.32
78,735.18
$
INCOME-ASSOCIATION FEES
INCOME-ADV ASSOC FEES
RESALE PACKAGE INCOME
OTHER MISC INCOME
INTEREST-DELINQUENT FEES
INTEREST INCOME
LATE FEES INCOME
TOTAL INCOME
$
$
5,800.00
275.00
2,500.00
38,500.00
14,000.00
22,600.00
250.00
20,600.00
0
2,000.00
250.00
1,000.00
4,600.00
250.00
400.00
500.00
3,550.00
117,075.00
483.34
22.91
208.34
3,208.34
1,166.66
1,883.34
20.84
1,716.66
0
166.66
20.84
83.34
383.34
20.84
33.34
41.66
295.84
9,756.29
42,000.00
30,600.00
8,400.00
81,000.00
1,215.00
195.80
(262.00)
(5,657.14)
76.00
4,786.82
45.92
(1,218.88)
(895.21)
(520.00)
(340.60)
196.52
(9,103.00)
250.00
240.00
1,001.00
354.20
(9,635.57) $
$
$
$
AUDITING EXPENSES
BANK SERVICE CHARGE
LEGAL EXPENSES
EMPLOYEE SALARY/TAXES/BENEF
PROPERTY INSURANCE-FLOOD
PROPERTY INSURANCE
CORPORATE FEES
MANAGEMENT FEE
MISC EXP/GENERAL & ADMIN
OFFICE EXP/PRINTING
COUPON BOOKS
POSTAGE
PROFESSIONAL FEES
RESALE PACKAGE RMB
TAXES-STATE
TAXES-CORPORATE
TELEPHONE
TOTAL GEN. & ADM. EXPENSE
229.15
942.12
700.00
1,871.27
42,000.00
30,600.00
8,400.00
81,000.00
$
(1,467.65)
1,102.96
(736.29)
3,600.00
7,800.00
18,800.00
$
3,270.85
1,607.88
0
4,878.73
5,067.65
6,697.04
19,536.29
$
3,600.00
7,800.00
18,800.00
300.00
154.16
(1,983.34)
3,500.00
2,550.00
700.00
6,750.00
Confidential:
0
495.84
3,550.00
$
300.00
650.00
1,566.66
UTILITIES-WATER
UTILITIES-ELECTRIC
UTILITIES-GAS
TOTAL UTILITIES
4:26 pm
MAINT.-ENTRY SYSTEM
MAINT.-WASTE DISPOSAL
MAINT.-JANITORIAL SERVICE
January 14, 2012
(2,366.34)
23,755.00
21,388.66 $
(899.91) $
1,856.64
(6,285.57)
(2,242.56)
(3,820.80)
1,200.00
1,276.07
648.35
(2,803.56)
(16,541.71)
(5,429.70)
(34,143.73) $
YTD
Variance
0
8,365.00
8,365.00
2,000.00
135,000.00
137,000.00
2,400.00
16,600.00
500.00
500.00
300.00
1,200.00
2,400.00
1,200.00
9,300.00
24,860.00
1,200.00
90,660.00
Annual
Budget
For the Period Ended December 31, 2011
$
$
YTD
Actual
3,299.91
14,743.36
6,785.57
2,742.56
4,120.80
0
1,123.93
551.65
12,103.56
41,401.71
6,629.70
124,803.73
$
12,270.12
.04
12,270.16
YTD
Budget
$
4,366.34
111,245.00
115,611.34
$
434,100.00
Current
Variance
2,400.00
16,600.00
500.00
500.00
300.00
1,200.00
2,400.00
1,200.00
9,300.00
24,860.00
1,200.00
90,660.00
$
(12,270.12)
8,364.96
(3,905.16)
(7,855.66) $
Monthly
Actual
$
2,000.00
135,000.00
137,000.00
$
$
Monthly
Budget
200.00
154.18
(2,613.34)
(758.34)
(88.50)
100.00
(213.00)
100.00
775.00
(5,399.24)
100.00
(9,172.42)
$
0
8,365.00
8,365.00
441,955.66
Title
$
(549.10)
11,250.00
10,700.90
$
$
$
0
1,229.16
2,655.00
800.00
113.50
0
413.00
0
0
7,470.90
0
16,727.40
$
0
.01
.01
434,100.00
0
$
$
715.76
0
715.76
$
$
(10,642.09) $
$
200.00
1,383.34
41.66
41.66
25.00
100.00
200.00
100.00
775.00
2,071.66
100.00
7,554.98
$
0
697.08
697.08
2,100.54
$
$
$
166.66
11,250.00
11,416.66
$
$
(10,642.09)
$
MAINT.-GATE MAINTENANCE
MAINT.-LAWN CONTRACT
MAINT.-LANDSCAPING EXTRAS/T
MAINT.-IRRIGATION
MAINT.-ELECTRICAL REPAIRS
MAINT.-EXTM/PEST CONTROL
MAINT.-HEAT & A/C CONTRACT
MAINT.-REPAIR/OPERATING SUP
MAINT.-ELEVATOR CONTRACT
MAINT.-GEN MAINT & REPAIRS
MAINT.-GROUNDS/SNOW REMVL
TOTAL MAINTENANCE
$
0
697.09
697.09
34,074.48
$
$
RESERVES-EARNED INTEREST
REPLACEMENT RESERVE
TOTAL REPLACEMENT RESERVE
$
$
0
OPERATING RESERVE DRAW
GENERAL OPERATING RESERVE
TOTAL CAPITAL/OPER RESVRS
36,175.02
$
$
(13,229.08)
TOTAL EXPENSES/RESERVES
$
(13,229.10)
(.02)
Confidential:
$
$
4:26 pm
NET INCOME
January 14, 2012
REPLACEMENT RESERVE REPORT FY 2011
PIERPOINTE AT FREEMASON HARBOUR
REPLACEMENT RESERVE REPORT FY 2011
Community Management by:
United Property Associates
Mr. Justin Winslow
525 South Independence Boulevard
Suite 200
Virginia Beach, VA 23452
757-334-4224
Consultant:
929 West Street, Suite 310
Annapolis, MD 21401
Tel: 410.268.0479
Fax: 410.268.8483
www.mdareserves.com
INTENTIONALLY LEFT BLANK
Section A
Replacement Reserve Analysis
REPLACEMENT RESERVE REPORT
NORFOLK, VIRGINIA
Executive Summary - A1
Reserve Status & Funding Plan - A1
General Information - A2
Cash Flow Method - A4
Component Method - A6
Current Association Funding - A8
Reserve Analysis Comments - A9
Section B
Replacement Reserve Inventory
General information - B1
Comments - B2
Schedule of Projected Replacements
and Exclusions - B3
Section C
Projected Annual Replacements
Scope. Pierpointe at Freemason Harbour is a condominium association
located in Norfolk, Virginia. Pierpointe was constructed from 2000 to
2002. The community consists of three mid-rise building with a total of
72 units (note: the actual number of units is less due to several owners
having purchased adjacent units and combining them into a single
residence). The survey examined the common elements of the property,
including:
•
•
•
•
•
•
Asphalt drive and parking.
Concrete sidewalks and curb and gutter.
Bulkhead, sheet pile walls, and pilings.
Site utilities (storm water, domestic water, and sanitary sewer).
Building plumbing, mechanical, and electrical systems.
Building exteriors and common interior areas.
Level of Service. This study has been performed as a Level I, Full
Service Reserve Study as defined under the National Reserve Study
Standards that have been adopted by the Community Associations
Institute. As such, a complete component inventory was established
based on information regarding commonly-owned components provided
by the community manager and upon quantities derived from field
measurement and/or quantity takeoffs from to-scale engineering
drawings. The condition of all commonly-owned components was
ascertained from a site visit and the visual inspection of each component
by the Analyst. The life expectancy and the value of the components are
provided based in part on these observations. The fund status and
funding plan have been derived from analysis of this data.
Projected Annual Replacements
General Information - C1
Reserve Analysis and Inventory Policies,
Procedures, and Administration - C2
Calendar of
Projected Annual Replacements - C2
Section D
Condition Assessment
Section E
Attachments
Accounting Summary
Appendix
Purpose. The purpose of this Replacement Reserve Study is to provide Pierpointe at Freemason
Harbour (hereinafter called the Association) with an inventory of the common community facilities and
infrastructure components that require periodic replacement. The Study includes a general view of the
condition of these items and an effective financial plan to fund projected periodic replacements.
•
Inventory of Items Owned by the Association. Section B Replacement Reserve Inventory lists the
Projected Replacements of the commonly owned items that require periodic replacement using
funding from Replacement Reserves. The Replacement Reserve Inventory also provides information
about excluded items, which are items whose replacements are not scheduled for funding from
Replacement Reserves.
•
Condition of Items Owned by the Association. Section B Replacement Reserve Inventory
includes our estimates of the normal economic life and the remaining economic life for the projected
replacements. Section C Calendar of Projected Annual Replacements provides a year-by-year listing
of the projected replacements. Section D Condition Assessment provides additional detail for items
that are unique or deserving of attention because of their condition or the manner in which they have
been treated in this Study.
•
Financial Plan. The Association has a fiduciary responsibility to protect the appearance, value, and
safety of the property and it is therefore essential the Association have a financial plan that provides
funding for the projected replacements. In conformance with American Institute of Certified Public
Accountant guidelines, Section A Replacement Reserve Analysis evaluates the current funding of
Replacement Reserves as reported by the Association and recommends annual funding of
Replacement Reserves by two generally accepted accounting methods; the Cash Flow Method and
the Component Method. Section A Replacement Reserve Analysis includes graphic and tabular
presentations of these methods and current Association funding. An Executive Summary of these
calculations is provided on Page A1.
Basis. The data contained in this Replacement Reserve Study is based upon the following:
•
The Request for Proposal submitted and executed by the Association.
•
Our visual evaluation and measurements on December 8, 2010. Miller - Dodson Associates has
visually inspected the common elements of the property in order to ascertain the remaining useful life
and the replacement costs of these components.
Engineering Drawings. Partial site plans for Pierpointe at Freemason Harbour Building 1 by C. Allan
Bamforth Engineers and dated November 2000 was used as the basis for establishing the quantities of
asphalt pavement, concrete sidewalk, concrete curb and gutter, and storm water drainage facilities.
Partial plumbing, mechanical and electrical drawings prepared by Hickman Ambrose Engineers dated
November 2000 for Building 1 were used for partial quantities for both Buildings 1 and 2 as they are
similar in size and construction.
No drawings for Building 3 were provided.
We recommend the Association assemble a library of site and building plans of the entire community.
Reproducible drawings should be stored and kept in a secure fireproof location. The Association will find
these drawings to be a valuable resource in planning and executing future projects.
The original design architect for the property is CMSS Architects of Virginia Beach. Unfortunately CMSS
has been acquired recently by another firm and attempting to obtain drawings from them may be difficult.
The other alternative is try contacting the original developer for the property, Collins Enterprises of
Norfolk, VA.
Current Funding. This reserve study has been prepared for Fiscal Year 2011 covering the period from
January 1, 2011 to December 31, 2011. The Replacement Reserves on deposit as of October 31, 2010
are reported to be $424,328. The planned contribution for the fiscal year 2011 is $135,000. This results
in a Reserve Fund balance at the start of the fiscal year as follows:
Oct. 31, 2010 balance
Two months contribution
Planned expenditures
FY 2011 opening balance
$424,328
$19,990
$0
$444,318
The balance and contribution figures have been supplied by the property management agent and
confirmation or audit of these figures is beyond the scope of the study. For the purposes of this study, it
is assumed that the annual contribution will be deposited at the end of each month.
Acknowledgement. Miller - Dodson Associates would like to acknowledge the assistance and input of
Mr. Justin Winslow, the property manager, who provided very helpful insight into the current operations at
the property.
Analyst’s Credentials. Mr. Philip Pointon holds a Bachelors Degree in Architecture from Virginia
Polytechnic Institute and State University and a Masters Degree from Old Dominion University in
Engineering Management as well as coursework at U.S. Army Management Staff College. Mr. Pointon
has been a Registered Professional Architect in the State of Virginia and Hawaii since 1990, and has
served in many facilities in an architectural function since 1987. He is currently a Reserve Specialist (RS)
for Miller - Dodson Associates, Inc.
Respectfully submitted,
MILLER - DODSON ASSOCIATES, INC.
Philip Pointon, AIA, RS, LEED AP
Reserve Analyst
Intentionally Left Blank
Miller + Dodson Associates, Inc.
Replacement Reserve Analysis - Page A1
December 8, 2010
Pierpointe at Freemason Harbour
1068105PIERPOIN11
EXECUTIVE SUMMARY
The Pierpointe at Freemason Harbour Replacement Reserve Inventory identifies 202 Projected Replacements for
funding from Replacement Reserves, with an estimated one-time replacement cost of $3,687,387.
The Replacement Reserve Analysis calculates recommended funding of Replacement Reserves by the two generally
accepted methods, the Cash Flow Method and the Component Method. The Analysis also evaluates current funding
of Replacement Reserves, as reported by the Association. The calculations and evaluation are summarized below:
z
$154,771
CASH FLOW METHOD MINIMUM ANNUAL FUNDING OF REPLACEMENT RESERVES IN
THE STUDY YEAR, 2011.
$179.13 Per unit (average), minimum monthly funding of Replacement Reserves
The Cash Flow Method (CFM) calculates Minimum Annual Funding of Replacement Reserves that will fund
Projected Replacements identified in the Replacement Reserve Inventory from a common pool of Replacement
Reserves and prevent Replacement Reserves from dropping below a Minimum Recommended Balance.
CFM - Minimum Annual Funding remains the same between peaks in cumulative expenditures called Peak Years.
The first Peak Year occurs in 2043 which is outside of the 30-year Study Period. The Cash Flow
Method - Minimum Annual Funding of Replacement Reserves remains constant at $154,771 throughout the
entire 30-year Study Period.
z
$267,558
COMPONENT METHOD RECOMMENDED ANNUAL FUNDING OF REPLACEMENT
RESERVES IN THE STUDY YEAR, 2011.
$309.67 Per unit (average), recommended monthly funding of Replacement Reserves
The Component Method is a time tested and very conservative funding model developed by HUD in the early 1980's.
The Component Method treats each projected replacement in the Replacement Reserve Inventory as a separate
account. Deposits are made to each individual account, where funds are held for exclusive use by that item.
Based on this funding model, the Association has a Current Funding Objective of $1,218,645.
The Association reports having $444,318 on deposit, which is 36.5% funded.
z
$135,000
CURRENT ANNUAL FUNDING OF REPLACEMENT RESERVES
(as reported by the Association).
$156.25 Per unit (average), reported current monthly funding of Replacement Reserves
The evaluation of Current Funding, as reported by the Association, has calculated that if the Association
continues to fund Replacement Reserves at the current level, there will be adequate funds for Projected
Replacements throughout the entire 30-year Study Period.
Pages A2 and A3 explain the Study Year, Study Period, Adjustments (interest & inflation), Beginning Balance, and Projected Replacements. Pages A4 to A9
explain in more detail the calculations associated with the Cash Flow Method, Component Method, and Current Funding.
REPLACEMENT RESERVE STATUS AND FUNDING PLAN
Current funding of Replacement Reserves is adequate to fund Projected Replacements.
We recommend the Association adopt a Replacement Reserve Funding Plan based on the Cash Flow Method or the
Component Method, to ensure that adequate funding is available throughout the 30-Year Study Period for the
$3,858,846 of Projected Replacements listed in the Pierpointe at Freemason Harbour Replacement Reserve Inventory.
The Funding Plan should be professionally evaluated every three to five years or after completion of each major
replacement project. The Board of Directors has a fiduciary responsibility to review the Funding Plan annually and
should consider annual increases in Replacement Reserve funding at least equal to the Consumer Price Index.
The starting balance for January 2011 is calculated from data provided by the Manager and reflects the balance as of
Oct. 31, 2010 plus two months of budgeted deposits less anticipated expenses from the reserves for November and
December 2010.
December 8, 2010
1068105PIERPOIN11
REPLACEMENT RESERVE ANALYSIS - GENERAL INFORMATION
The Pierpointe at Freemason Harbour Replacement Reserve Analysis calculations of recommended funding of
Replacement Reserves by the Cash Flow Method and the Component Method, and the evaluation of the Current
Funding, are based upon the same General Information; including the Study Year, Study Period, Adjustments (for
interest, inflation, and/or a constant increase in annual funding), Beginning Balance, and Projected Replacements:
STUDY YEAR
The Association reports that their accounting year begins on January 1, and the Study Year, the first year evaluated
by the Replacement Reserve Analysis, begins on January 1, 2011.
STUDY PERIOD
The Replacement Reserve Analysis evaluates the funding of Replacement Reserves over a 30-year Study Period
that begins on January 1, 2011.
ADJUSTMENTS
The calculations in this Replacement Reserve Analysis do not account for interest earned on Replacement Reserves,
the effects of inflation on the costs of Projected Replacements, or a constant annual increase in Annual Funding
of Replacement Reserves. If requested, we will provide a Replacement Reserve Analysis with adjustments for
inflation, interest, and/or a constant annual increase in funding, using values provided by the Association.
BEGINNING BALANCE
The Association reports Replacement Reserves on Deposit totaling $444,318 at the start of the Study Year.
Graph #1. Annual Expenditures for Projected Replacements
This bar graph summarizes annual expenditures for the $3,858,846 of Projected Replacements identified in the Replacement Reserve Inventory over the
30-year Study Period. The red line shows the average annual expenditure of $128,628.
$424,854
2032
$453,573
$421,114
2031
$436,873
$500,000
$280,911
$292,287
$400,000
2040
2039
$7,860
2038
2037
$25,030
$78,855
$50,084
$17,454
2036
2035
2034
2033
$0
2030
$5,654
2029
2028
2027
$1,200
$39,960
$30,970
2026
$2,000
$18,164
2025
2024
2022
2023
2021
$0
2019
2018
2017
2016
2015
2014
2013
2011
$0
2012
$208,182
$236,792
$94,825
$25,030
$6,790
$31,295
$64,611
$100,000
2020
30 YR AVERAGE
$103,845
$128,628
$114,847
$200,000
$209,415
$176,372
$300,000
December 8, 2010
1068105PIERPOIN11
PROJECTED REPLACEMENTS
The Pierpointe at Freemason Harbour Replacement Reserve Inventory (Section B) identifies 202 Projected
Replacements with a one-time Replacement Cost of $3,687,387 and replacements totaling $3,858,846 over the
30-year Study Period. Projected Replacements are the replacement of commonly-owned items that:
require periodic replacement and
whose replacement is to be funded from Replacement Reserves.
The Replacement Reserve Inventory also identifies 54 Excluded Items. Expenditures for the replacement of these
items are NOT scheduled for funding from Replacement Reserves. The accuracy of the calculations made in the
Replacement Reserve Analysis is dependent on expenditures NOT being made for Excluded Items. The rationale
behind these exclusions is discussed in detail on Page B1.
Expenditures from Replacements Reserves should be made only after consultation with an accounting professional.
The Section B - Replacement Reserve Inventory, contains Tables that list each Projected Replacement (and any
Excluded Items) broken down into 19 major categories (Pages B3 to B20). Tables are also included that list each
Projected Replacement by year for each of the 30 years of the Study Period beginning on Page C1.
The accuracy of this Replacement Reserve Analysis is dependent upon expenditures from Replacement Reserves
being made only for the Projected Replacements specifically listed in the Replacement Reserve Inventory.
Graph #2. Comparison of Cumulative Replacement Reserve Funding and Expenditures
The line graph shows Replacement Reserves - Cumulative Receipts over the 30-year Study Period by the Cash Flow Method (red circles), Component
Method (purple diamonds), and the Current Funding Plan as reported by the Association (blue triangles). The bar graph shows the Cumulative
Expenditures necessary to fund the Project Replacements listed in the Replacement Reserve Inventory (Section B) and summarized in Graph #1.
$7,000,000
Cash Flow Method - Cumulative Receipts
Projected Replacements - Cumulative
Expenditures
Component Method - Cumulative Receipts
Current Funding - Cumulative Receipts
$6,000,000
$6,000,769
$5,087,442
$5,000,000
$4,494,318
$4,000,000
$3,858,846
$3,000,000
$2,000,000
$1,000,000
2040
2039
2038
2037
2036
2035
2034
2033
2031
2032
2030
2029
2028
2027
2026
2025
2024
2022
2023
2021
2020
2019
2018
2017
2016
2015
2014
2012
2013
2011
$0
December 8, 2010
1068105PIERPOIN11
CASH FLOW METHOD
z
CASH FLOW METHOD MINIMUM ANNUAL FUNDING OF REPLACEMENT RESERVES IN
THE STUDY YEAR, 2011.
$154,771
$179.13 Per unit (average), minimum monthly funding of Replacement Reserves
General. The Cash Flow Method is founded on the concept that the Replacement Reserve Account is solvent if
cumulative receipts always exceed cumulative expenses. The Cash Flow Method calculates a MINIMUM annual
deposit to Replacement Reserves that will:
z Fund all Projected Replacements listed in the Replacement Reserve Inventory (see Section B)
z Prevent Replacement Reserves from dropping below the Minimum Recommended Balance (see Page A-5)
z Allow a constant annual funding level between peaks in cumulative expenditures
Graph #3. Cash Flow Method - Cumulative Receipts and Expenditures Graph
$6,000,000
Cash Flow Method - Cumulative Receipts
Cash Flow Method - Year End Balance
Cumulative Expenditures
$5,087,442
$5,000,000
$4,000,000
$3,858,846
$3,000,000
$2,000,000
$1,228,596
$1,000,000
2040
2038
2039
2037
2036
2035
2034
2033
2031
2032
2030
2029
2028
2027
2026
2025
2024
2023
2021
2022
2020
2018
2019
2017
2016
2015
2014
2013
2011
2012
$0
December 8, 2010
1068105PIERPOIN11
CASH FLOW METHOD (cont'd)
z Replacement Reserves - Minimum Recommended Balance. The Minimum Recommended Balance is $184,369,
which is 5.0 percent of the one-time replacement cost of the Projected Replacements listed in the Replacement
Reserve Inventory. Unless otherwise noted in the Comments on Page A-9, the Minimum Recommended
Balance has been established by the Analyst based upon an evaluation of the types of items included in the
Replacement Reserve Inventory.
z Peak Years. The Cash Flow Method calculates a constant annual funding of Replacement Reserves between
peaks in cumulative expenditures called Peak Years. In Peak Years, Replacement Reserves on Deposit decline
to the Replacement Reserves - Minimum Recommended Balance discussed in the paragraph above.
First Peak Year. The first Peak Year occurs in 2043, which is outside of the 30-year Study Period. The Cash Flow
Method - Minimum Annual Funding of Replacement Reserves of $154,771 remains the same throughout the
entire 30-year Study Period.
This funding level is adequate to fund the $3,858,846 of Projected Expenditures listed in the Replacement Reserve
Inventory.
z Study Period. The Cash Flow Method calculates the recommended contributions to Replacement Reserves over
the 30-year Study Period. These calculations are based upon a 40-year projection of expenditures for Projected
Replacements to avoid the Replacement Reserve balance dropping to the Minimum Recommended Balance in the
final year of the Study Period.
z Failure to Fund. The Cash Flow Method calculates a MINIMUM annual funding of Replacement Reserves.
Failure to fund Replacement Reserves at the minimum level calculated by the Cash Flow Method will result in
Replacement Reserves not being available for the Projected Replacements listed in the Replacement Reserve
Inventory and/or Replacement Reserves dropping below the Minimum Recommended Balance.
z Adjustment to the Cash Flow Method for interest and inflation. The calculations in this Replacement Reserve
Analysis do not account for interest earned on Replacement Reserves, the effects of inflation of the cost of
Projected Replacements, or a constant annual increase in Annual Funding of Replacement Reserves.
z Comparison of Cash Flow Funding and Average Annual Expenditure. The Average Annual Expenditure for
Projected Replacements listed in the Reserve Inventory over the 30-year Study Period is $128,628 (see Graph #1).
The Cash Flow Method - Minimum Annual Funding of Replacement Reserves in the Study Year is $154,771.
This is 120.3 percent of the Average Annual Expenditure, indicating that the Association is building Replacement
Reserves in advance of the first Peak Year in 2043.
Table #1. Cash Flow Method Data - Years 1 through 30
Year
Beginning balance
Minimum annual funding
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
$444,318
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
Expenditures
Year end balance
Minimum recommended balance
Cumulative expenditures
Cumulative receipts
$31,295
$567,794
$184,369
$31,295
$599,089
$103,845
$618,720
$184,369
$135,140
$753,860
$64,611
$708,880
$184,369
$199,751
$908,630
$6,790
$856,861
$184,369
$206,541
$1,063,401
$25,030
$986,601
$184,369
$231,571
$1,218,172
$114,847
$1,026,525
$184,369
$346,418
$1,372,943
$176,372
$1,004,924
$184,369
$522,790
$1,527,714
$209,415
$950,279
$184,369
$732,205
$1,682,484
$94,825
$1,010,225
$184,369
$827,030
$1,837,255
$1,164,996
$184,369
$827,030
$1,992,026
Year
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
Expenditures
Year end balance
Cumulative receipts
$236,792
$1,082,974
$184,369
$1,063,822
$2,146,797
$280,911
$956,835
$184,369
$1,344,733
$2,301,568
$208,182
$903,424
$184,369
$1,552,915
$2,456,339
$2,000
$1,056,195
$184,369
$1,554,915
$2,611,109
$18,164
$1,192,802
$184,369
$1,573,078
$2,765,880
$30,970
$1,316,603
$184,369
$1,604,048
$2,920,651
$436,873
$1,034,500
$184,369
$2,040,921
$3,075,422
$39,960
$1,149,311
$184,369
$2,080,881
$3,230,193
$5,654
$1,298,428
$184,369
$2,086,535
$3,384,963
$1,453,199
$184,369
$2,086,535
$3,539,734
Year
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
$154,771
Expenditures
Year end balance
Cumulative receipts
$421,114
$1,186,856
$184,369
$2,507,649
$3,694,505
$424,854
$916,772
$184,369
$2,932,503
$3,849,276
$453,573
$617,971
$184,369
$3,386,076
$4,004,047
$1,200
$771,541
$184,369
$3,387,276
$4,158,817
$17,454
$908,858
$184,369
$3,404,730
$4,313,588
$50,084
$1,013,545
$184,369
$3,454,814
$4,468,359
$78,855
$1,089,461
$184,369
$3,533,669
$4,623,130
$7,860
$1,236,372
$184,369
$3,541,529
$4,777,901
$25,030
$1,366,112
$184,369
$3,566,559
$4,932,672
$292,287
$1,228,596
$184,369
$3,858,846
$5,087,442
December 8, 2010
1068105PIERPOIN11
COMPONENT METHOD
z
COMPONENT METHOD RECOMMENDED ANNUAL FUNDING OF REPLACEMENT
RESERVES IN THE STUDY YEAR, 2011.
$267,558
$309.67 Per unit (average), recommended monthly funding of Replacement Reserves
General. The Component Method is a time tested and very conservative mathematical model developed by HUD
in the early 1980s. Each of the 202 Projected Replacements listed in the Replacement Reserve Inventory is treated
as a separate account. The Beginning Balance is allocated to each of these individual accounts, as is all
subsequent funding of Replacement Reserves. These funds are "locked" in these individual accounts and are not
available to fund other Projected Replacements. The calculation of the Recommended Annual Funding of
Replacement Reserves is a multi-step process outlined in more detail on Page A7.
Graph #4. Component Method - Cumulative Receipts and Expenditures Graph
$7,000,000
Component Method - Cumulative Receipts
Component Method - Year End Balance
Projected Replacements - Cumulative Expenditures
$6,000,000
$6,000,769
$5,000,000
$4,000,000
$3,858,846
$3,000,000
$2,141,923
$2,000,000
$1,000,000
2040
2038
2039
2037
2036
2035
2034
2033
2031
2032
2030
2028
2029
2027
2026
2025
2024
2023
2021
2022
2020
2018
2019
2017
2016
2015
2014
2013
2011
2012
$0
December 8, 2010
1068105PIERPOIN11
COMPONENT METHOD (cont'd)
z Current Funding Objective. A Current Funding Objective is calculated for each of the Projected Replacements
listed in the Replacement Reserve Inventory. Replacement Cost is divided by the Normal Economic Life to
determine the nominal annual contribution. The Remaining Economic Life is then subtracted from the
Normal Economic Life to calculate the number of years that the nominal annual contribution should have
been made. The two values are then multiplied to determine the Current Funding Objective. This is repeated for
each of the 202 Projected Replacements. The total, $1,218,645, is the Current Funding Objective.
For an example, consider a very simple Replacement Reserve Inventory with one Projected Replacement, a fence
with a $1,000 Replacement Cost, a Normal Economic Life of 10 years, and a Remaining Economic Life of 2 years.
A contribution to Replacement Reserves of $100 ($1,000 + 10 years) should have been made in each of the
previous 8 years (10 years - 2 years). The result is a Current Funding Objective of $800 (8 years x $100 per year).
z Funding Percentage. The Funding Percentage is calculated by dividing the Beginning Balance ($444,318)
by the Current Funding Objective ($1,218,645). At Pierpointe at Freemason Harbour the Funding Percentage is 36.5
z Allocation of the Beginning Balance. The Beginning Balance is divided among the 202 Projected Replacements
in the Replacement Reserve Inventory. The Current Funding Objective for each Projected Replacement is
multiplied by the Funding Percentage and these funds are then "locked" into the account of each item.
If we relate this calculation back to our fence example, it means that the Association has not accumulated $800
in Reserves (the Funding Objective), but rather at 36.5 percent funded, there is $292 in the account for the fence.
z Annual Funding. The Recommended Annual Funding of Replacement Reserves is then calculated for each
Projected Replacement. The funds allocated to the account of the Projected Replacement are subtracted from the
Replacement Cost. The result is then divided by the number of years until replacement, and the result is
the annual funding for each of the Projected Replacements. The sum of these is $267,558, the Component Method
Recommended Annual Funding of Replacement Reserves in the Study Year (2011).
In our fence example, the $292 in the account is subtracted from the $1,000 Total Replacement Cost and divided
by the 2 years that remain before replacement, resulting in an annual deposit of $354. Next year, the deposit
remains $354, but in the third year, the fence is replaced and the annual funding adjusts to $100.
z Adjustment to the Component Method for interest and inflation. The calculations in the Replacement Reserve
Analysis do not account for interest earned on Replacement Reserves, the effects of inflation of the cost of
Projected Replacements, or a constant annual increase in Annual Funding of Replacement Reserves.
Table #2. Component Method Data - Years 1 through 30
Year
Beginning balance
Recommended annual funding
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
$444,318
$267,558
$250,500
$223,808
$214,004
$213,230
$213,380
$206,222
$197,810
$190,126
$187,384
Expenditures
Year end balance
Cumulative Receipts
$31,295
$680,581
$31,295
$711,876
$103,845
$827,236
$135,140
$962,375
$64,611
$986,432
$199,751
$1,186,183
$6,790
$1,193,647
$206,541
$1,400,187
$25,030
$1,381,846
$231,571
$1,613,417
$114,847
$1,480,378
$346,418
$1,826,796
$176,372
$1,510,229
$522,790
$2,033,018
$209,415
$1,498,624
$732,205
$2,230,829
$94,825
$1,593,924
$827,030
$2,420,955
$1,781,309
$827,030
$2,608,339
Year
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
$187,384
$181,868
$176,477
$173,932
$173,932
$173,845
$173,644
$168,592
$168,467
$168,458
Expenditures
Year end balance
Cumulative Receipts
$236,792
$1,731,901
$1,063,822
$2,795,723
$280,911
$1,632,858
$1,344,733
$2,977,591
$208,182
$1,601,154
$1,552,915
$3,154,069
$2,000
$1,773,086
$1,554,915
$3,328,001
$18,164
$1,928,855
$1,573,078
$3,501,933
$30,970
$2,071,730
$1,604,048
$3,675,778
$436,873
$1,808,501
$2,040,921
$3,849,422
$39,960
$1,937,133
$2,080,881
$4,018,014
$5,654
$2,099,946
$2,086,535
$4,186,481
$2,268,404
$2,086,535
$4,354,939
Year
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
$168,458
$166,382
$165,084
$163,810
$163,810
$163,804
$163,739
$163,581
$163,581
$163,581
Expenditures
Year end balance
Cumulative Receipts
$421,114
$2,015,747
$2,507,649
$4,523,397
$424,854
$1,757,276
$2,932,503
$4,689,779
$453,573
$1,468,787
$3,386,076
$4,854,863
$1,200
$1,631,397
$3,387,276
$5,018,673
$17,454
$1,777,753
$3,404,730
$5,182,483
$50,084
$1,891,473
$3,454,814
$5,346,287
$78,855
$1,976,357
$3,533,669
$5,510,027
$7,860
$2,132,078
$3,541,529
$5,673,607
$25,030
$2,270,629
$3,566,559
$5,837,188
$292,287
$2,141,923
$3,858,846
$6,000,769
December 8, 2010
1068105PIERPOIN11
CURRENT FUNDING
z
CURRENT ANNUAL FUNDING OF REPLACEMENT RESERVES
(as reported by the Association).
$135,000
$156.25 Per unit (average), reported current monthly funding of Replacement Reserves
General. Our evaluation of the Current Association Funding assumes that the Association will continue to fund
Replacement Reserves at the current level of $135,000 per year in each of the 30 years of the Study Period.
Our evaluation is based upon this Replacement Reserve Funding Level, a $444,318 Beginning Balance, the
Projected Annual Replacement Expenditures shown in Graph #1 and listed in the Replacement Reserve Inventory,
and any interest, inflation rate, or constant annual increase in annual contribution adjustments discussed below.
z Evaluation. Our calculations have determined that Current Annual Funding of Replacement Reserves, as reported
by the Association, is adequate to fund Projected Replacements throughout the 30-year Study Period.
z Adjustment to the Current Association Funding for interest and inflation. The Calculations in the Replacement
Reserve Analysis do not account for interest earned on Replacement Reserves, the effects of inflation of the
cost of Projected Replacements, or a constant annual increase in Annual Funding of Replacement Reserves.
z Comparison of Current Association Funding and Average Annual Expenditure. The average annual expenditure for
Projected Replacements listed in the Reserve Inventory over the 30-year Study Period is $128,628 (see Graph #1).
Current Association annual funding of Replacement Reserves is $135,000, or approximately 105 percent of
the Average Annual Expenditure.
Graph #5. Current Association Funding - Cumulative Receipts and Expenditures Graph
$5,000,000
Current Funding - Cumulative Receipts
Current Funding - Year End Balance
Projected Replacements - Cumulative
Expenditures
$4,494,318
$4,000,000
$3,858,846
$3,000,000
$2,000,000
$1,000,000
$635,472
2040
2038
2039
2037
2036
2035
2034
2033
2031
2032
2030
2028
2029
2027
2026
2025
2024
2023
2021
2022
2020
2018
2019
2017
2016
2015
2014
2013
2011
2012
$0
December 8, 2010
1068105PIERPOIN11
CURRENT FUNDING (cont'd)
Table #3. Current Funding Data - Years 1 through 30
Year
Beginning balance
Annual deposit
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
$444,318
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
Expenditures
Year end balance
Cumulative Receipts
$31,295
$548,023
$31,295
$579,318
$103,845
$579,178
$135,140
$714,318
$64,611
$649,567
$199,751
$849,318
$6,790
$777,777
$206,541
$984,318
$25,030
$887,747
$231,571
$1,119,318
$114,847
$907,900
$346,418
$1,254,318
$176,372
$866,528
$522,790
$1,389,318
$209,415
$792,113
$732,205
$1,524,318
$94,825
$832,288
$827,030
$1,659,318
$967,288
$827,030
$1,794,318
Year
Annual deposit
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
Expenditures
Year end balance
Cumulative receipts
$236,792
$865,496
$1,063,822
$1,929,318
$280,911
$719,585
$1,344,733
$2,064,318
$208,182
$646,403
$1,552,915
$2,199,318
$2,000
$779,403
$1,554,915
$2,334,318
$18,164
$896,240
$1,573,078
$2,469,318
$30,970
$1,000,270
$1,604,048
$2,604,318
$436,873
$698,397
$2,040,921
$2,739,318
$39,960
$793,437
$2,080,881
$2,874,318
$5,654
$922,783
$2,086,535
$3,009,318
$1,057,783
$2,086,535
$3,144,318
Year
Annual deposit
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
$135,000
Expenditures
Year end balance
Cumulative Receipts
$421,114
$771,669
$2,507,649
$3,279,318
$424,854
$481,815
$2,932,503
$3,414,318
$453,573
$163,242
$3,386,076
$3,549,318
$1,200
$297,042
$3,387,276
$3,684,318
$17,454
$414,588
$3,404,730
$3,819,318
$50,084
$499,504
$3,454,814
$3,954,318
$78,855
$555,649
$3,533,669
$4,089,318
$7,860
$682,789
$3,541,529
$4,224,318
$25,030
$792,759
$3,566,559
$4,359,318
$292,287
$635,472
$3,858,846
$4,494,318
COMMENTS ON THE REPLACEMENT RESERVE ANALYSIS
z This Replacement Reserve Study has been developed in compliance with the Community Associations Institute,
National Reserve Study Standards, for a Level One Study - Full Service.
z Pierpointe at Freemason Harbour has 72 units. The type of property is a condominium association.
z Our calculations assume that Replacement Reserves are not subject to tax.
z The study uses the adopted 2011 budget for reserves contributions as provided by the Manager.
Replacement Reserve Inventory - Page B1
December 8, 2010
1068105PIERPOIN11
REPLACEMENT RESERVE INVENTORY
GENERAL INFORMATION
Pierpointe at Freemason Harbour - Replacement Reserve Inventory identifies 256 items. Two types of items are
identified, Projected Replacements and Excluded Items:
z PROJECTED REPLACEMENTS. 202 of the items are Projected Replacements and the periodic
replacements of these items are scheduled for funding from Replacement Reserves. The Projected Replacements
have an estimated one-time replacement cost of $3,687,387. Replacements totaling $3,858,846 are scheduled
in the Replacement Reserve Inventory over the 30-year Study Period.
Projected Replacements are the replacement of commonly owned physical assets that require periodic
replacement and whose replacement is to be funded from Replacement Reserves.
z EXCLUDED ITEMS. 54 of the items are Excluded Items, and expenditures for these items are NOT
scheduled for funding from Replacement Reserves. The accuracy of the calculations made in the Replacement
Reserve Analysis is dependent on expenditures NOT being made for Excluded Items. The Excluded Items
are listed in the Replacement Reserve Inventory to identify specific items and categories of items that
are not to be funded from Replacement Reserves. There are multiple categories of items that are typically
excluded from funding by Replacement Reserves, including but not limited to:
Tax Code. The United States Tax Code grants very favorable tax status to Replacement Reserves, conditioned
on expenditures being made within certain guidelines. These guidelines typically exclude maintenance
activities, partial replacements, repairs, capital improvements, and one-time only replacements.
Value. Items with a replacement cost of less that $1,000 are typically excluded from funding from
Replacement Reserves. This exclusion is made to accurately reflect how Replacement Reserves are
administered. If the Association has selected an alternative level, it will be noted in the Replacement Reserve
Inventory - General Comments on Page B2.
Long-lived Items. Items that when properly maintained, can be assumed to have a life equal to the property
as a whole, are typically excluded from the Replacement Reserve Inventory.
Unit improvements. Items located on property owned by a single unit and where the items serve a single
unit are generally assumed to be the responsibility of that unit, not the Association.
Other non-common improvements. Items owned by the local government, public and private utility companies,
the United States Postal Service, Master Associations, state and local highway authorities, etc., may be
installed on property that is owned by the Association. These types of items are generally not the
responsibility of the Association and are excluded from the Replacement Reserve Inventory.
The rationale for the exclusion of an item from funding by Replacement Reserves is discussed in more detail in
the 'Comments' section of it's page of the Replacement Reserve Inventory.
z CATEGORIES. The 256 items included in the Pierpointe at Freemason Harbour Replacement Reserve Inventory
are divided into 19 major categories. Each category is printed on a separate page, Pages B3 to B20.
z LEVEL OF SERVICE. This Replacement Reserve Inventory has been developed in compliance with the standards
established for a Level One Study - Full Service, as defined by the National Reserve Study
Standards, established in 1998 by Community Associations Institute, which states:
A Level I - Full Service Reserve Study includes the computation of complete component inventory
information regarding commonly owned components provided by the property manager, quantities
derived from field measurements and/or quantity takeoffs from to-scale engineering drawings that
may be made available. The condition of all components is ascertained from a visual inspection
of each component by the analyst. The life expectancy and the value of the components are
provided based on these observations and the funding status and funding plan are then derived
from analysis of this data.
December 8, 2010
1068105PIERPOIN11
REPLACEMENT RESERVE INVENTORY - GENERAL INFORMATION (cont'd)
z INVENTORY DATA. Each of the 202 Projected Replacements listed in the Replacement Reserve Inventory
includes the following data:
Item Number. The Item Number is assigned sequentially and is intended for identification purposes only.
Item Description. We have named each item included in the Inventory. Where the name of the item
and the category are not sufficient to specifically identify the item, we have included additional
information in the Comments section at the bottom of the page.
Units. We have used standard abbreviations to identify the number of units including SF-square feet, FT-feet,
SY-square yard, LS-lump sum, EA-each, and PR-pair. Nonstandard abbreviations are noted in the
Comments section on the page on which the abbreviation is used.
Number of Units. The methods used to develop the quantities are discussed in "Level of Service" above.
Unit Replacement Cost. We use three sources to develop the unit cost data shown in the Inventory; actual
replacement cost data provided by the client, industry standard estimating manuals, and a cost database
that we have developed based upon our detailed interviews with contractors and service providers who are
specialists in their respective lines of work. In addition, trends in the Producers Price Index (PPI), labor
rates, and transportation costs are monitored and considered. This cost database is reviewed and
updated regularly by Miller Dodson and biannually by an independent professional cost estimating firm.
Normal Economic Life (Yrs). The number of years that a new and properly installed item should be
expected to remain in service.
Economic Life Remaining (Yrs). The estimated number of years before an item will need to be
replaced. In "normal" conditions, this could be calculated by subtracting the age of the item from the
Normal Economic Life of the item, but only rarely do physical assets age "normally". Some items
may have longer or shorter lives depending on many factors such as environment, initial quality of the
item, maintenance, etc.
Total Replacement Cost. This is calculated by multiplying the Unit Replacement Cost by the Number of Units.
Each of the 54 Excluded Items includes the Item Description, Units, and Number of Units. Many of the
Excluded Items are listed as a 'Lump Sum' with a quantity of 1. For the Excluded Items, this indicates that
all of the items identified by the 'Item Description' are excluded from funding by Replacement Reserves.
z REVIEW OF EXPENDITURES. All expenditures from Replacement Reserves should be made only after
consultation with an accounting professional.
z PARTIAL FUNDING. Items may have been included in the Replacement Reserve Inventory at less than
100 percent of their full quantity and/or replacement cost. This is done on items that will never be replaced
in their entirety, but which may require periodic replacements over an extended period of time. The assumptions
that provide the basis for any partial funding are noted on in the Comments section.
REPLACEMENT RESERVE INVENTORY - GENERAL COMMENTS
z PLEASE NOTE: For inventory items with a Remaining Economic Life greater than 40 years, the replacement
projections fall outside this study's limits and are not included in the annual calculations. However, tracking these
items over time will bring them within the 40 year window and they will be included in the future.
December 8, 2010
1068105PIERPOIN11
SITE COMPONENT
ITEM
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
sf
sf
37,319
37,319
$0.20
$1.40
6
18
2
8
2
Concrete curb & gutter (20%)
Concrete curb (20%)
Concrete curb (20%)
Concrete curb (20%)
ft
ft
ft
ft
ft
ft
138
138
138
292
292
292
$34.00
$34.00
$34.00
$30.00
$30.00
$30.00
54
54
54
54
54
54
8
26
44
8
26
44
2
Concrete sidewalk (6%)
sf
sf
sf
sf
sf
sf
sf
sf
sf
sf
43
43
43
43
43
43
43
43
43
43
$9.35
$9.35
$9.35
$9.35
$9.35
$9.35
$9.35
$9.35
$9.35
$9.35
60
60
60
60
60
60
60
60
60
60
6
12
18
24
30
36
42
48
54
60
2
Quarry tile at entrances (partial)
sf
sf
80
80
$15.00
$15.00
10
10
5
20
2
ITEM
DESCRIPTION
UNIT
Asphalt pavement, seal coat
Asphalt pavement, overlay
SITE COMPONENT - Replacement Costs - Subtotal
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
$7,464
$52,247
$4,699
$4,699
$4,699
$8,766
$8,766
$8,766
$404
$404
$404
$404
$404
$404
$404
$404
$404
$404
$1,200
$1,200
$106,544
SITE COMPONENT
COMMENTS
z We have assumed that the Association will replace the asphalt pavement by the installation of a 2 inch thick overlay. The
pavement will need to be milled prior to the installation of the overlay. Milling and the cost of minor repairs (5 to 10
percent of the total area) to the base materials and bearing soils beneath the pavement are included in the cost shown
above.
z A small portion of exposed aggregate concrete walkway appears to have been replaced recently.
December 8, 2010
1068105PIERPOIN11
SITE COMPONENT (cont.)
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ea
ea
2
2
$1,260.00
$280.00
24
12
14
2
2
Actuator, drop arm, entry gate
Gate barrier
Keypad entry system
Entry gate reurbishing
ea
ea
ea
ls
2
2
1
1
$2,000.00
$2,300.00
$750.00
$1,200.00
8
16
8
4
4
6
4
none
2
Bulkhead, sheetpile (Bldg 1), refurbish
Bulkhead, sheetpile (Bldg 1), replace
sf
lf
1,080
270
$18.75
$310.00
10
40
1
11
2
Bulkhead, (Bldg 2 & 3), refurbish
Bulkhead, (Bldg 2 & 3), replace
sf
sf
2,272
568
$18.75
$365.00
10
40
1
31
2
30
31
Sink hole, backfill & cap
ls
1
$14,000.00
4
4
2
$14,000
32
Concrete pile, refurbishing
Concrete pile cap (partial)
ls
ls
1
1
$330,000.00
$35,000.00
25
15
16
10
2
$330,000
$35,000
ITEM
#
21
22
23
24
25
26
27
28
29
33
ITEM
DESCRIPTION
UNIT
Light pole, site
Light, site, pole mounted
SITE COMPONENT (cont.) - Replacement Costs - Subtotal
REPLACEMENT
COST ($)
$2,520
$560
2
$4,000
$4,600
$750
$1,200
2
2
2
2
2
2
$20,250
$83,700
$42,600
$207,320
$746,500
COMMENTS
z Bulkhead refurbishing is for exposed faces above mean low water and includes blasting, coating, partial concrete caps
and partial deadmans to be replaced. Quantity is estimated from length of wall on drawings and an average exposed face
of 4-feet. The values are highly speculative due to the complex nature of the site constraints but are comparable to a
project at a nearby property with similar scope of work.
z Bulkhead replacement assumes all mobilization, and working from the water side at portions were access is restricted by
buildings proximity to waters edge. The price should be confirmed after an inspection and design by a professional
engineer with marine structure experience. The values are highly speculative due to the complex nature of the site
constraints but are comparable to a project at a nearby property with similar scope of work.
z Concrete pile price should be confirmed after study & design by a professional engineer.
z Sink hole price is based on Manager's recent reported replacements for 3 sink holes x 2 for increases.
December 8, 2010
1068105PIERPOIN11
ITEM
#
34
35
36
37
38
39
40
41
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ea
lf
lf
1
70
70
$4,400.00
$54.00
$43.00
35
10
10
25
10
10
2
Domestic water lateral (partial)
Sanitary lateral (partial)
ls
ls
1
1
$3,600.00
$2,700.00
10
10
10
10
2
Storm water, curb inlet (25%)
Storm water, drop inlet (50%)
Storm water, 18" RCP (25%)
ea
ea
lf
1
1
41
$4,750.00
$4,100.00
$39.00
30
30
10
20
20
20
2
ITEM
DESCRIPTION
UNIT
3" water meter
Domestic water main (10%)
Sanitary main (10%)
SITE COMPONENT (cont.) - Replacement Costs - Subtotal
REPLACEMENT
COST ($)
2
2
2
2
2
$4,400
$3,780
$3,010
$3,600
$2,700
$4,750
$4,100
$1,609
$27,949
COMMENTS
z Comprehensive drawings detailing the components of the systems listed above were not available for our review. We
have included the estimated cost of the systems based upon our experience with other similar communities. We have
assumed that 10 percent of the system(s) will require replacement. In the future, this assumption and the estimated costs
should be adjusted based upon actual experience at the community.
December 8, 2010
1068105PIERPOIN11
BUILDING EXTERIOR (Building 1)
ITEM
#
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
ITEM
DESCRIPTION
UNIT
Roofing, shingle asphalt/fiberglass
Roofing, single ply membrane
Gutter & downspout, 6" aluminum
Roof flashing, metal
PVC Fascia Trim
EIFS dormers, chimneys & cupola, replace
EIFS dormers, chimneys & cupola, refurbish
Exhaust vent wall caps
Louvers, garage intake, 4'x6'
Louvers, garage exhaust fans
Brick veneer, repoint (10%)
Replace steel lintels (partial)
Sill pans for sliding doors
Balcony decking
Balcony structural framing
Balcony railings, refurbish
Balcony railings, replace
French railings, refurbish
French railings, replace
Balcony column, structural upgrades
Storefront entrances
Garage doors
Exterior doors
Garage door operators
sf
ls
ft
ls
ls
ls
ls
ea
ea
ea
sf
ls
lf
sf
sf
lf
lf
lf
lf
ls
ls
ea
ea
ea
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
11,871
1
494
1
1
1
1
73
2
2
2,223
1
312
3,870
3,870
537
537
128
128
1
1
2
4
2
$5.90
$14,000.00
$8.50
$3,900.00
$18,000.00
$15,600.00
$3,500.00
$77.00
$720.00
$600.00
$8.75
$4,000.00
$17.90
$16.77
$24.00
$3.05
$38.50
$4.15
$4.15
$16,000.00
$4,800.00
$1,655.00
$915.00
$950.00
30
20
30
30
20
30
10
20
30
30
20
20
30
15
30
15
30
15
30
30
30
15
25
10
10
10
20
20
10
20
none
10
20
20
10
10
none
5
20
5
20
5
20
30
20
none
15
5
BUILDING EXTERIOR (Building 1) - Replacement Costs - Subtotal
COMMENTS
z Garage door replacement is based on a quote to the Manager and is planned for 2011.
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
$70,042
$14,000
$4,199
$3,900
$18,000
$15,600
$3,500
$5,621
$1,440
$1,200
$19,451
$4,000
$5,585
$64,900
$92,880
$1,636
$20,655
$531
$531
$16,000
$4,800
$3,310
$3,660
$1,900
$377,341
December 8, 2010
1068105PIERPOIN11
ITEM
#
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
ITEM
DESCRIPTION
UNIT
Roof flashing , metal
PVC Fascia
EIFS dormers & chimneys, replace
EIFS dormers & chimneys, refurbish
Balcony decking
Garage doors
Exterior doors
sf
ls
ft
ls
ls
ls
ls
ea
ea
ea
sf
ls
lf
sf
sf
lf
lf
lf
lf
ls
ls
ea
ea
ea
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
11,871
1
494
1
1
1
1
73
2
2
2,223
1
312
3,870
3,870
537
537
128
128
1
1
2
4
2
$4.80
$14,000.00
$8.50
$3,600.00
$18,000.00
$15,600.00
$3,500.00
$77.00
$720.00
$600.00
$8.75
$4,000.00
$17.90
$16.77
$24.00
$3.05
$38.50
$4.15
$4.15
$16,000.00
$4,800.00
$1,655.00
$915.00
$950.00
30
20
30
30
20
30
10
20
30
30
20
20
30
15
30
15
30
15
30
30
30
15
25
10
16
11
21
21
11
21
1
11
21
21
11
11
1
6
21
6
21
6
21
30
21
1
16
6
COMMENTS
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
$56,983
$14,000
$4,199
$3,600
$18,000
$15,600
$3,500
$5,621
$1,440
$1,200
$19,451
$4,000
$5,585
$64,900
$92,880
$1,636
$20,655
$531
$531
$16,000
$4,800
$3,310
$3,660
$1,900
$363,983
December 8, 2010
1068105PIERPOIN11
ITEM
#
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
ITEM
DESCRIPTION
UNIT
Roofing, standing seam metal
PVC Fascia
EIFS dormers, chimneys & cupola, replace
EIFS dormers, chimneys & cupola, refurbish
Balcony decking
Garage doors
Exterior doors
sf
ls
ft
ls
ls
ls
ls
ea
ea
ea
sf
ls
lf
sf
sf
lf
lf
lf
lf
ls
ls
ea
ea
ea
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
19,631
1
813
1
1
1
1
83
4
4
3,659
1
412
4,734
4,734
572
572
192
192
1
2
4
8
4
$14.65
$21,000.00
$8.50
$5,800.00
$26,000.00
$15,600.00
$3,500.00
$77.00
$720.00
$600.00
$8.75
$8,800.00
$17.90
$16.77
$24.00
$3.05
$38.50
$4.15
$4.15
$24,000.00
$4,800.00
$1,655.00
$915.00
$950.00
30
20
30
30
20
30
10
20
30
30
20
20
30
15
30
15
30
15
30
30
30
15
25
10
29
12
22
22
12
22
2
12
22
22
12
12
2
7
22
7
22
7
22
30
22
2
17
7
COMMENTS
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
$287,587
$21,000
$6,911
$5,800
$26,000
$15,600
$3,500
$6,353
$2,880
$2,400
$32,012
$8,800
$7,375
$79,389
$113,616
$1,743
$22,003
$797
$797
$24,000
$9,600
$6,620
$7,320
$3,800
$695,901
December 8, 2010
1068105PIERPOIN11
BUILDING EXTERIOR (Miscellaneous)
ITEM
#
114
115
116
117
118
119
120
121
122
123
124
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
sf
sf
sf
sf
sf
sf
3,870
3,870
5,805
1,482
1,482
2,519
$4.19
$4.19
$4.19
$6.48
$6.48
$6.48
15
15
15
20
20
20
6
7
7
10
11
12
2
Awning, fabric (Building 3)
Awning, frame (Building 3)
ls
ls
1
1
$2,700.00
$1,900.00
7
14
1
8
2
Joint Sealants,exterior (Building 1)
Joint Sealants, exterior (Building 2)
ls
ls
ls
1
1
1
$17,700.00
$17,700.00
$25,400.00
10
10
10
none
1
2
2
ITEM
DESCRIPTION
UNIT
Balcony Soffits (Bldg 1)
Roof eave soffits (Bldg 1)
BUILDING EXTERIOR (Miscellaneous) - Replacement Costs - Subtotal
COMMENTS
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
$16,215
$16,215
$24,323
$9,603
$9,603
$16,326
$2,700
$1,900
$17,700
$17,700
$25,400
$157,686
December 8, 2010
1068105PIERPOIN11
BUILDING INTERIOR (Building 1)
ITEM
#
125
126
127
128
ITEM
DESCRIPTION
UNIT
Flooring, interior carpet (Flr 2-4)
Flooring, porcelain tile (1st Floor)
sf
sf
Lobby furnishings (partial)
Mailboxes, aluminum gang boxes
ls
ea
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
1,200
770
$4.25
$18.44
10
30
1
20
2
1
20
$6,500.00
$82.00
20
35
10
25
2
BUILDING INTERIOR (Building 1) - Replacement Costs - Subtotal
COMMENTS
REPLACEMENT
COST ($)
2
2
$5,100
$14,199
$6,500
$1,640
$27,439
December 8, 2010
1068105PIERPOIN11
ITEM
#
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
sf
sf
sf
300
600
770
$18.44
$4.25
$18.44
30
10
30
21
2
21
2
ls
ea
1
20
$6,500.00
$82.00
20
35
10
25
2
Corridor wall coverings (Flr 2-4)
sf
2,700
$3.15
15
6
2
ITEM
DESCRIPTION
UNIT
Flooring, porcelain tile (Flr 4)
Flooring, interior carpet (Flr 2 & 3)
133
134
129
130
131
132
COMMENTS
REPLACEMENT
COST ($)
2
2
2
$5,532
$2,550
$14,199
$6,500
$1,640
$8,505
$38,926
December 8, 2010
1068105PIERPOIN11
ITEM
#
ITEM
DESCRIPTION
UNIT
Flooring, marble tile (Flrs 2-4)
sf
sf
sf
139
ls
ea
140
sf
135
136
137
138
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
915
1,530
770
$25.65
$4.25
$18.44
40
10
30
32
2
22
2
1
32
$6,500.00
$82.00
20
35
10
25
2
1,440
$3.15
15
7
2
COMMENTS
REPLACEMENT
COST ($)
2
2
2
$23,470
$6,503
$14,199
$6,500
$2,624
$4,536
$57,831
December 8, 2010
1068105PIERPOIN11
BUILDING SYSTEM (Building 1)
ITEM
#
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
ITEM
DESCRIPTION
UNIT
Elevator cab & door, passenger
Elevator, hydraulic psngr, controls
Elevator, hydraulic psngr, piston
Domestic water pumps
Pump controller
Plumbing risers, partial
Pressure tanks
Backflow preventer, domestic
Backflow preventer, fire
Fire pump & jockey pump
Fire pump controllers
Heat pump, 2.5 ton
Air handler
Exhaust fans, garage, 5,100 cfm
Exhaust fans, garage, motors
Unit heaters, ground floor (20%)
Interior lighting, garage (partial)
Interior lighting, interiors (partial)
Exterior lighting, balconies
Exterior lighting, entrances
Backup generator
Switchgear
Intercom system (partial)
Fire alarm control panel
ea
ea
ea
ea
ea
unit
ls
ea
ea
ls
ls
ea
ea
ea
ea
ea
ls
ls
ea
ea
ls
ls
ls
ls
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
1
1
1
2
1
20
1
1
1
1
1
1
1
2
2
2
1
1
20
4
1
1
1
1
$7,900.00
$29,500.00
$14,800.00
$1,300.00
$1,450.00
$8,800.00
$1,600.00
$3,900.00
$4,300.00
$7,700.00
$3,300.00
$1,985.00
$1,250.00
$1,490.00
$770.00
$840.00
$2,000.00
$1,200.00
$156.00
$540.00
$39,000.00
$3,600.00
$3,100.00
$12,000.00
15
15
30
20
20
40
40
30
30
30
30
20
20
24
12
10
8
16
15
15
30
30
15
25
5
5
20
10
10
30
30
20
20
20
20
10
10
14
2
15
4
6
5
5
20
20
1
15
BUILDING SYSTEM (Building 1) - Replacement Costs - Subtotal
COMMENTS
z The fire pump serves all three buildings.
z The backup generator serves all three buildings.
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
$7,900
$29,500
$14,800
$2,600
$1,450
$176,000
$1,600
$3,900
$4,300
$7,700
$3,300
$1,985
$1,250
$2,980
$1,540
$1,680
$2,000
$1,200
$3,120
$2,160
$39,000
$3,600
$3,100
$12,000
$328,665
December 8, 2010
1068105PIERPOIN11
ITEM
#
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ea
ea
ea
1
1
1
$7,900.00
$60,200.00
$30,100.00
15
15
20
6
6
11
2
Pump controllers
Pressure tanks
Backflow preventer
ea
ea
unit
ls
ea
2
1
20
1
1
$1,300.00
$1,450.00
$8,800.00
$1,600.00
$3,900.00
20
20
40
40
30
11
11
31
31
21
2
Heat pump, 2.5 ton
Air handler
ea
ea
ea
ea
ea
1
1
2
2
2
$1,985.00
$1,250.00
$1,490.00
$770.00
$840.00
20
20
24
12
10
11
11
15
3
16
2
ls
ls
ea
ea
1
1
20
4
$2,000.00
$1,200.00
$156.00
$540.00
8
16
15
15
5
7
6
6
2
ls
ls
1
1
$3,100.00
$12,000.00
15
25
2
16
2
ITEM
DESCRIPTION
UNIT
Elevator, traction psngr, controls
Elevator, traction psngr, mechanical
COMMENTS
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
$7,900
$60,200
$30,100
$2,600
$1,450
$176,000
$1,600
$3,900
$1,985
$1,250
$2,980
$1,540
$1,680
$2,000
$1,200
$3,120
$2,160
$3,100
$12,000
$316,765
December 8, 2010
1068105PIERPOIN11
ITEM
#
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ea
ea
ea
1
1
1
$7,900.00
$60,200.00
$30,100.00
15
15
20
7
7
12
2
Pump controllers
Pressure tanks
Backflow preventer
ea
ea
unit
ls
ea
2
1
32
1
1
$1,300.00
$1,450.00
$8,800.00
$3,200.00
$3,900.00
20
20
40
40
30
12
12
32
32
22
2
Heat pump, 2.5 ton
Air handler
ea
ea
ea
ea
ea
1
1
4
4
3
$1,985.00
$1,250.00
$1,490.00
$770.00
$840.00
20
20
24
12
10
12
12
16
4
17
2
ls
ls
ea
ea
1
1
32
8
$3,100.00
$1,850.00
$156.00
$540.00
8
16
15
15
6
8
7
7
2
ls
ls
1
1
$5,250.00
$16,600.00
15
25
3
17
2
ITEM
DESCRIPTION
UNIT
COMMENTS
REPLACEMENT
COST ($)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
$7,900
$60,200
$30,100
$2,600
$1,450
$281,600
$3,200
$3,900
$1,985
$1,250
$5,960
$3,080
$2,520
$3,100
$1,850
$4,992
$4,320
$5,250
$16,600
$441,857
December 8, 2010
1068105PIERPOIN11
VALUATION EXCLUSIONS
EXCLUDED ITEMS
ITEM
#
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ITEM
DESCRIPTION
UNIT
REPLACEMENT
COST ($)
Site lighting fixtures, right of way
Property identification signage
Miscellaneous signage
Bulletin boards
Bollard/access control devices
Stairway handrails
ls
ls
ls
ls
ls
ls
1
1
1
1
1
1
3
Fire extinguisher cabinet
Sprinkler head
Emergency lighting, exit light, etc.
Signage
Interior doors, unless noted otherwise
ls
ls
ls
ls
ls
1
1
1
1
1
3
Electric heaters, unless noted otherwise
ls
1
3
EXCLUDED
Carbon monoxide detectors
Garage storage unit doors
ls
ls
1
1
3
EXCLUDED
EXCLUDED
Janitor sinks
Inst hot water heaters for janitor
ls
ls
1
1
3
3
3
3
3
3
3
3
3
3
3
3
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
VALUATION EXCLUSIONS
COMMENTS
z Valuation Exclusions. For ease of administration of the Replacement Reserves and to reflect accurately how
Replacement Reserves are administered, items with a dollar value less than $1,000.00 have not been scheduled for
funding from Replacement Reserves. Examples of items excluded from funding by Replacement Reserves by this
standard are listed above.
z The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.
December 8, 2010
1068105PIERPOIN11
LONG-LIFE EXCLUSIONS
EXCLUDED ITEMS
ITEM
#
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ITEM
DESCRIPTION
UNIT
REPLACEMENT
COST ($)
Exterior brick veneer
Stairways
ls
ls
1
1
3
Building foundation(s)
Concrete floor slabs (interior)
Wall, floor, & roof structure
ls
ls
ls
1
1
1
3
Common element electrical services
Electrical wiring
Fire protection system, UNO
ls
ls
ls
1
1
1
3
3
3
3
3
3
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
LONG-LIFE EXCLUSIONS
COMMENTS
z Long Life Exclusions. Components that when properly maintained, can be assumed to have a life equal to the property as
a whole, are normally excluded from the Replacement Reserve Inventory. Examples of items excluded from funding by
Replacement Reserves by this standard are listed above.
z Exterior masonry is generally assumed to have an unlimited economic life but periodic repointing is required and we have
included this for funding in the Replacement Reserve Inventory.
December 8, 2010
1068105PIERPOIN11
UNIT IMPROVEMENTS EXCLUSIONS
EXCLUDED ITEMS
ITEM
#
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ITEM
DESCRIPTION
UNIT
REPLACEMENT
COST ($)
Domestic water pipes serving one unit
Sanitary sewers serving one unit
Electrical wiring serving one unit
Cable TV service serving one unit
Telephone service serving one unit
Gas service serving one unit
ls
ls
ls
ls
ls
ls
1
1
1
1
1
1
3
Unit windows
Unit sliding doors
Unit entry doors
Unit balcony tile (where added)
ls
ls
ls
ls
1
1
1
1
3
Unit interior
Unit HVAC system
ls
ls
1
1
3
3
3
3
3
3
3
3
3
3
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
UNIT IMPROVEMENTS EXCLUSIONS
COMMENTS
z Unit improvement Exclusions. We understand that the elements of the project that relate to a single unit are the
responsibility of that unit owner. Examples of items excluded from funding by Replacement Reserves by this standard are
listed above.
December 8, 2010
1068105PIERPOIN11
UTILITY EXCLUSIONS
EXCLUDED ITEMS
ITEM
#
ITEM
DESCRIPTION
UNIT
Primary electric feeds
Electric transformers
Cable TV systems and structures
Telephone cables and structures
Site lighting, along the waterfront
Gas mains and meters
ls
ls
ls
ls
ls
ls
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
1
1
1
1
1
1
REPLACEMENT
COST ($)
3
3
3
3
3
3
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
UTILITY EXCLUSIONS
COMMENTS
z Utility Exclusions. Many improvements owned by utility companies are on property owned by the Association. We have
assumed that repair, maintenance, and replacements of these components will be done at the expense of the appropriate
utility company. Examples of items excluded from funding Replacement Reserves by this standard are listed above.
December 8, 2010
1068105PIERPOIN11
MAINTENANCE AND REPAIR EXCLUSIONS
EXCLUDED ITEMS
ITEM
#
NUMBER
OF UNITS
UNIT
REPLACEMENT
COST ($)
NORMAL
ECONOMIC
LIFE (YRS)
REMAINING
ECONOMIC
LIFE (YRS)
ITEM
DESCRIPTION
UNIT
REPLACEMENT
COST ($)
Cleaning of asphalt pavement
Crack sealing of asphalt pavement
Painting of curbs
Striping of parking spaces
Numbering of parking spaces
ls
ls
ls
ls
ls
1
1
1
1
1
3
Landscaping and site grading
ls
1
3
EXCLUDED
Exterior painting
Interior painting
ls
ls
1
1
3
EXCLUDED
EXCLUDED
Janitorial service
Repair services
Partial replacements
Capital improvements
ls
ls
ls
ls
1
1
1
1
3
3
3
3
3
3
3
3
3
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
EXCLUDED
MAINTENANCE AND REPAIR EXCLUSIONS
COMMENTS
z Maintenance activities, one-time-only repairs, and capital improvements. These activities are NOT appropriately funded
from Replacement Reserves. The inclusion of such component in the Replacement Reserve Inventory could jeopardize
the special tax status of ALL Replacement Reserves, exposing the Association to significant tax liabilities. We
recommend that the Board of Directors discuss these exclusions and Revenue Ruling 75-370 with a Certified Public
Accountant.
z Examples of items excluded from funding by Replacement Reserves by this standard are listed above.
Projected Annual Replacements - Page C1
December 8, 2010
1068105PIERPOIN11
PROJECTED ANNUAL REPLACEMENTS
GENERAL INFORMATION
CALENDAR OF ANNUAL REPLACEMENTS. The 202 Projected Replacements in the Pierpointe at Freemason Harbou
Replacement Reserve Inventory whose replacement is scheduled to be funded from Replacement Reserves are
broken down on a year-by-year basis, beginning on Page C2.
REPLACEMENT RESERVE ANALYSIS AND INVENTORY
POLICIES, PROCEDURES, AND ADMINISTRATION
z REVISIONS. Revisions will be made to the Replacement Reserve Analysis and Replacement Reserve Inventory
in accordance with the written instructions of the Board of Directors. No additional charge is incurred for the
first revision, if requested in writing within three months of the date of the Replacement Reserve Study. It is our
policy to provide revisions in electronic (Adobe PDF) format only.
z TAX CODE. The United States Tax Code grants favorable tax status to a common interest development (CID)
meeting certain guidelines for their Replacement Reserve. If a CID files their taxes as a 'Corporation' on
Form 1020 (IRC Section 277), these guidelines typically require maintenance activities, partial replacements,
minor replacements, capital improvements, and one-time only replacements to be excluded from Reserves.
A CID cannot commingle planning for maintenance activities with capital replacement activities in the Reserves
(Revenue Ruling 75-370). Funds for maintenance activities and capital replacements activities must be held in
separate accounts. If a CID files taxes as an "Exempt Homeowners Association" using Form 1020H (IRC
Section 528), the CID does not have to segregate these activities. However, because the CID may elect to
change their method of filing from year to year within the Study Period, we advise using the more restrictive
approach. We further recommend that the CID consult with their Accountant and consider creating separate
and independent accounts and reserves for large maintenance items, such as painting.
z CONFLICT OF INTEREST. Neither Miller - Dodson Associates nor the Reserve Analyst has any prior or existing
relationship with this Association which would represent a real or perceived conflict of interest.
z RELIANCE ON DATA PROVIDED BY THE CLIENT. Information provided by an official representative of the
Association regarding financial, physical conditions, quality, or historical issues is deemed reliable.
z INTENT. This Replacement Reserve Study is a reflection of the information provided by the Association and the
visual evaluations of the Analyst. It has been prepared for the sole use of the Association and is not for the
purpose of performing an audit, quality/forensic analyses, or background checks of historical records.
z PREVIOUS REPLACEMENTS. Information provided to Miller - Dodson Associates regarding prior replacements
is considered to be accurate and reliable. Our visual evaluation is not a project audit or quality inspection.
z UPDATING. In the first two or possibly three years after the completion of a Level One Replacement Reserve
Study, we recommend the Association review and revise the Replacement Reserve Analysis and Inventory
annually to take into account replacements which have occurred and known changes in replacement costs.
This can frequently be handled as a Level Two or Level Three Study (as defined by the Community Associations
Institute), unless the Association has completed major replacement projects. A full analysis (Level One)
based on a comprehensive visual evaluation of the site should be accomplished every three to five years or
after each major replacement project.
z EXPERIENCE WITH FUTURE REPLACEMENTS. The Calendar of Annual Projected Replacements, lists
replacements we have projected to occur over the next thirty years, begins on Page C2. Actual experience in
replacing the items may differ significantly from the cost estimates and time frames shown because of conditions
beyond our control. These differences may be caused by maintenance practices, inflation, variations in pricing
and market conditions, future technological developments, regulatory actions, acts of God, and luck. Some
items may function normally during our visual evaluation and then fail without notice.
z REVIEW OF THE REPLACEMENT RESERVE STUDY. For this study to be effective, it should be reviewed by
the Pierpointe at Freemason Harbour Board of Directors, those responsible for the management of the items
included in the Replacement Reserve Inventory, and the accounting professionals employed by the Association.
December 8, 2010
1068105PIERPOIN11
PROJECTED REPLACEMENTS - YEARS 1 TO 3
Item
26
48
54
63
122
2011
EIFS dormers, chimneys & c
Garage doors
Joint Sealants,exterior (Build
Total Scheduled Replacements
$
$1,200
$3,500
$5,585
$3,310
$17,700
$31,295
Item
27
29
72
78
87
120
123
125
163
2012
Bulkhead, sheetpile (Bldg 1)
Bulkhead, (Bldg 2 & 3), refur
EIFS dormers & chimneys, r
Garage doors
Joint Sealants, exterior (Buil
Flooring, interior carpet (Flr 2
$
$20,250
$42,600
$3,500
$5,585
$3,310
$2,700
$17,700
$5,100
$3,100
$103,845
Item
1
22
96
102
111
124
130
136
155
182
2013
Garage doors
Exhaust fans, garage, motor
$
$7,464
$560
$3,500
$7,375
$6,620
$25,400
$2,550
$6,503
$1,540
$3,100
$64,611
December 8, 2010
1068105PIERPOIN11
Item
2014
176 Exhaust fans, garage, motor
201 Intercom system (partial)
$
$1,540
$5,250
$6,790
Item
23
25
26
31
157
195
2015
Actuator, drop arm, entry ga
Keypad entry system
Interior lighting, garage (part
$
$4,000
$750
$1,200
$14,000
$2,000
$3,080
$25,030
Item
19
55
57
59
65
141
142
159
160
178
2016
Quarry tile at entrances (par
Balcony decking
Elevator cab & door, passen
Elevator, hydraulic psngr, co
$
$1,200
$64,900
$1,636
$531
$1,900
$7,900
$29,500
$3,120
$2,160
$2,000
$114,847
December 8, 2010
1068105PIERPOIN11
Item
9
24
79
81
83
89
114
134
158
165
166
180
181
197
2017
Gate barrier
Balcony decking
Corridor wall coverings (Flr 2
Interior lighting, interiors (pa
Elevator, traction psngr, con
$
$404
$4,600
$64,900
$1,636
$531
$1,900
$16,215
$8,505
$1,200
$7,900
$60,200
$3,120
$2,160
$3,100
$176,372
Item
103
105
107
113
115
116
140
179
184
185
199
200
2018
Balcony decking
$
$79,389
$1,743
$797
$3,800
$16,215
$24,323
$4,536
$1,200
$7,900
$60,200
$4,992
$4,320
$209,415
Item
1
2
3
6
26
31
120
121
198
2019
Concrete curb & gutter (20%
Concrete curb (20%)
$
$7,464
$52,247
$4,699
$8,766
$1,200
$14,000
$2,700
$1,900
$1,850
$94,825
December 8, 2010
1068105PIERPOIN11
Item
2020
No Scheduled Replacements
$
Item
33
35
36
37
38
42
43
46
48
49
52
53
117
122
127
132
138
144
145
152
153
2021
Sanitary main (10%)
Domestic water lateral (parti
Roofing, shingle asphalt/fibe
Roofing, single ply membran
PVC Fascia Trim
Pump controller
Heat pump, 2.5 ton
Air handler
$
$35,000
$3,780
$3,010
$3,600
$2,700
$70,042
$14,000
$18,000
$3,500
$5,621
$19,451
$4,000
$9,603
$17,700
$6,500
$6,500
$6,500
$2,600
$1,450
$1,985
$1,250
$236,792
Item
27
28
29
67
70
72
73
76
77
118
123
125
167
168
169
173
174
2022
PVC Fascia
Elevator, traction psngr, mec
Pump controllers
Heat pump, 2.5 ton
Air handler
$
$20,250
$83,700
$42,600
$14,000
$18,000
$3,500
$5,621
$19,451
$4,000
$9,603
$17,700
$5,100
$30,100
$2,600
$1,450
$1,985
$1,250
$280,911
December 8, 2010
1068105PIERPOIN11
Item
10
23
25
26
31
91
94
96
97
100
101
119
124
130
136
157
186
187
188
192
193
2023
Keypad entry system
PVC Fascia
Elevator, traction psngr, mec
Pump controllers
Heat pump, 2.5 ton
Air handler
$
$404
$4,000
$750
$1,200
$14,000
$21,000
$26,000
$3,500
$6,353
$32,012
$8,800
$16,326
$25,400
$2,550
$6,503
$2,000
$30,100
$2,600
$1,450
$1,985
$1,250
Item
2024
178 Interior lighting, garage (part
$
$2,000
$208,182
$2,000
Item
1
21
22
154
155
197
2025
Light pole, site
Exhaust fans, garage, 5,100
$
$7,464
$2,520
$560
$2,980
$1,540
$3,100
$18,164
December 8, 2010
1068105PIERPOIN11
Item
19
63
64
65
120
156
164
175
176
2026
Garage doors
Exterior doors
Unit heaters, ground floor (2
$
$1,200
$3,310
$3,660
$1,900
$2,700
$1,680
$12,000
$2,980
$1,540
$30,970
Item
26
31
32
66
87
88
89
163
177
183
194
195
2027
Roofing, shingle asphalt/fibe
Garage doors
Exterior doors
$
$1,200
$14,000
$330,000
$56,983
$3,310
$3,660
$1,900
$3,100
$1,680
$12,000
$5,960
$3,080
$436,873
Item
111
112
113
182
196
202
2028
Garage doors
Exterior doors
$
$6,620
$7,320
$3,800
$3,100
$2,520
$16,600
$39,960
December 8, 2010
1068105PIERPOIN11
Item
2029
11 Concrete sidewalk (6%)
201 Intercom system (partial)
$
$404
$5,250
$5,654
Item
2030
No Scheduled Replacements
$
Item
1
20
23
25
26
31
35
36
37
38
39
40
41
44
45
47
48
50
51
55
56
57
58
59
60
62
122
126
141
142
143
148
149
150
151
157
159
160
161
162
2031
Keypad entry system
Sanitary main (10%)
Domestic water lateral (parti
Storm water, curb inlet (25%
Storm water, drop inlet (50%
Storm water, 18" RCP (25%
Gutter & downspout, 6" alum
Louvers, garage intake, 4'x6
Louvers, garage exhaust fan
Balcony decking
Flooring, porcelain tile (1st F
Elevator, hydraulic psngr, co
Elevator, hydraulic psngr, pis
Backflow preventer, domesti
Backup generator
Switchgear
$
$7,464
$1,200
$4,000
$750
$1,200
$14,000
$3,780
$3,010
$3,600
$2,700
$4,750
$4,100
$1,609
$4,199
$3,900
$15,600
$3,500
$1,440
$1,200
$64,900
$92,880
$1,636
$20,655
$531
$531
$4,800
$17,700
$14,199
$7,900
$29,500
$14,800
$3,900
$4,300
$7,700
$3,300
$2,000
$3,120
$2,160
$39,000
$3,600
$421,114
December 8, 2010
1068105PIERPOIN11
Item
27
29
68
69
71
72
74
75
79
80
81
82
83
84
86
114
123
125
129
131
134
165
166
172
178
180
181
2032
Balcony decking
Flooring, porcelain tile (Flr 4
Backflow preventer
$
$20,250
$42,600
$4,199
$3,600
$15,600
$3,500
$1,440
$1,200
$64,900
$92,880
$1,636
$20,655
$531
$531
$4,800
$16,215
$17,700
$5,100
$5,532
$14,199
$8,505
$7,900
$60,200
$3,900
$2,000
$3,120
$2,160
$424,854
Item
24
92
93
95
96
98
99
103
104
105
106
107
108
110
115
116
120
121
124
130
136
137
140
158
184
185
191
197
199
200
2033
Gate barrier
Balcony decking
Backflow preventer
$
$4,600
$6,911
$5,800
$15,600
$3,500
$2,880
$2,400
$79,389
$113,616
$1,743
$22,003
$797
$797
$9,600
$16,215
$24,323
$2,700
$1,900
$25,400
$2,550
$6,503
$14,199
$4,536
$1,200
$7,900
$60,200
$3,900
$3,100
$4,992
$4,320
$453,573
Item
2034
179 Interior lighting, interiors (pa
$
$1,200
$1,200
December 8, 2010
1068105PIERPOIN11
Item
12
26
31
198
2035
$
$404
$1,200
$14,000
$1,850
$17,454
Item
19
33
34
65
128
133
139
156
2036
3" water meter
Mailboxes, aluminum gang b
$
$1,200
$35,000
$4,400
$1,900
$1,640
$1,640
$2,624
$1,680
$50,084
Item
1
2
4
7
22
89
155
177
2037
Concrete curb & gutter (20%
Concrete curb (20%)
$
$7,464
$52,247
$4,699
$8,766
$560
$1,900
$1,540
$1,680
$78,855
December 8, 2010
1068105PIERPOIN11
Item
2038
113 Garage door operators
176 Exhaust fans, garage, motor
196 Unit heaters, ground floor (2
$
$3,800
$1,540
$2,520
$7,860
Item
23
25
26
31
157
195
2039
Keypad entry system
$
$4,000
$750
$1,200
$14,000
$2,000
$3,080
Item
2040
90 Roofing, standing seam met
120 Awning, fabric (Building 3)
178 Interior lighting, garage (part
$
$287,587
$2,700
$2,000
$25,030
$292,287
Miller - Dodson Associates, Inc.
Condition Assessment - Page D1
Pierpointe at Fremason Harbor
December 8, 2010
CONDITION ASSESSMENT
General Comments. Miller - Dodson Associates conducted a Reserve Study at Pierpointe in December
2010. Pierpointe is in fair condition for a condominium community constructed in 2000-2002. A review of
the Replacement Reserve Inventory will show that we are anticipating most of the components achieving
their normal economic lives.
The following comments pertain to the larger, more significant components in the Replacement Reserve
Inventory and to those items that are unique or deserving of attention because of their condition or the
manner in which they have been treated in the Replacement Reserve Analysis or Inventory.
SITE IMPROVEMENTS
Asphalt Pavement. The site includes asphalt pavement for vehicle access and parking. In general, the
asphalt pavement is in fair condition with multiple areas of defects. The Association maintains an
inventory of 37,319 square feet of asphalt pavement, including the street and parking areas.
Photo 1 - View of the asphalt parking
and drive aisle
Photo 2 - Asphalt is in fair condition but
shows no evidence of having been seal
coated
The defects noted include the following:
•
Open Cracks. There are multiple locations where open cracks are allowing water to penetrate to
the asphalt base and the bearing soils beneath the pavement. This water will erode the base
accelerating the deterioration of the asphalt pavement. If the cracks have allowed the
deterioration of the base materials and the bearing soil, the damaged areas should be removed
and replaced. All other cracks should be cleaned and filled.
•
Alligatoring. There are multiple locations where the asphalt has developed a pattern of cracking
known as alligatoring. Alligatoring is the result of an unstable base under the asphalt. Shifting in
the base causes the asphalt to crack and shift, forming the cracks that resemble the skin of an
alligator. Once these cracks extend through the asphalt, they will allow water to penetrate to the
base, accelerating the rate of deterioration. The only solution is to remove the defective asphalt
and compact the base before new asphalt is installed.
•
Potholes. There are a number of locations where potholes have formed as the result of the
failure of the underlying base material or the surface material. Repair will require removal of the
asphalt and base material, installation and compaction of new base material, and resurfacing with
asphalt.
•
Depressions. There are areas where the asphalt surface is depressed due to deformation in the
surface or underlying layers. These depressions may continue to grow with exposure to traffic.
December 8, 2010
Water ponding was noted in several of these areas. Repair will require removal of the asphalt
and base material, installation and compaction of new base material, and resurfacing with
asphalt.
Photo 3 - There are several large cracks
that run parallel to the length of the
waterfront
Photo 4 - Some cracking is beginning to
develop into alligatoring
As a rule of thumb, asphalt should be overlayed when approximately five percent of the surface area has
become cracked or has failed. The normal service life of asphalt pavement is typically 18 to 20 years.
In order to maintain the condition of the pavement throughout the community and to ensure the longest
life of the asphalt, we recommend a systematic and comprehensive maintenance program that includes:
•
Crack Sealing. All cracks should be sealed with an appropriate sealing compound to prevent
water infiltration through the asphalt compound into the base. This repair should be done
annually. This is an entirely different process from the seal coating discussed below. Crack
sealing is normally considered a maintenance activity and is not funded from Reserves. Areas of
extensive cracking or deterioration that cannot be made watertight by crack sealing should be cut
out and patched.
•
Cleaning. Long-term exposure to oil or gas breaks down asphalt. Because this asphalt pavement
is generally not used for long term parking, it is unlikely that frequent cleaning will be necessary.
When necessary, spill areas should be cleaned, or if deterioration has penetrated the asphalt,
patched. This is a maintenance activity, and we have assumed that it will not be funded from
Reserves.
•
Seal Coating. The asphalt should be seal coated every three to five years. For this maintenance
activity to be effective in extending the life of the asphalt, the crack sealing and cleaning of the
asphalt as discussed above should be completed first.
Pricing used in the study is based on a recent contract for a two-inch overlay and reflects the current local
market.
Asphalt Seal Coat. The asphalt pavement does not appear to have been seal coated within the past five
years. As the asphalt surface oxidizes, some of the binders in the asphalt evaporate, resulting in a gray
appearance to the asphalt. As a result of this process, the asphalt loses some of its flexibility, resulting in
cracking and splitting. We recommend following a crack filling and recoating cycle of five years for
asphalt surfaces.
Concrete Flatwork. The concrete flatwork includes the building lead walks only. The Association
maintains a very small inventory of concrete flatwork. The overall condition of the concrete flatwork is
good.
Photo 5 - Typical entrance walk is
exposed aggregate concrete
December 8, 2010
Photo 6 - A recent concrete walk repair
The standards we used for recommending replacement are as follows:
1.
2.
3.
4.
5.
Trip hazard, 0.5 inch height difference.
Severe cracking.
Severe spalling
Uneven riser heights on steps.
Steps with risers in excess of 8.25 inches.
Because it is highly unlikely that all of the community’s concrete components will fail and require
replacement in the period of the study, we have programmed funds for the replacement of 60% of the
inventory and spread those funds over a 60 year timeframe to reflect the incremental nature of this work.
This approach assumes a failure rate of 1% per year.
Curb and Gutter. The Association maintains an inventory of 690 feet of concrete curb and gutter. All
components have been well maintained and are in excellent condition. Any problems noted are in the
form of minor cracks, spalling or settlement that can be repaired by continued periodic replacement of
broken sections.
Photo 7 - Typical curb & gutter
Photo 8 - Typical concrete curb only
Because it is highly unlikely that all of the community’s concrete curb and gutter sections will fail and
require replacement in the period of the study, we have programmed funds for the replacement of 60
percent of the inventory and spread those funds over a 60-year timeframe to reflect the incremental
nature of this work. This approach assumes a failure rate of one percent per year.
Photo 9 - Very few significant cracks
were observed
December 8, 2010
Photo 10 - This section of C&G has not
soil backfilled against and may be prone
to damage from vehicles
Storm Water System. We have included the catch basins and underground piping portions of the storm
water system in the Reserve Analysis. Our estimates for the replacement costs for the storm water
system are based on the partial drawings that were provided to us and our inspection of the visible
components of the system.
Photo 11 - Drop inlet for storm water
Photo 12 - Typical curb inlet for storm
water
Curb Inlets. The storm water system includes a number of curb inlets that are designed to collect storm
water from the drive aisles and parking areas and direct it into the storm water system.
While curb inlets are long life items, soil movement can result in displacement of the structure. Openings
between the inlets and the surrounding pavement and other surfaces can result in erosion and settlement
of the pavement surrounding the curb inlet. This movement results in additional settlement and erosion.
Uncorrected, the entire curb inlet will require replacement or rebuilding.
Not all curb inlets will require rebuilding or replacement at the same time. Therefore we have included
funding in the Reserve Analysis for repairs on a periodic basis.
December 8, 2010
Water Mains. The Association is responsible for the
replacement of the 3” main water meter and the water mains
located under the roadway within the community. No
engineering drawings were available to accurately determine
distances, sizes of lines, and materials used for underground
components of the system. Accordingly, we have provided
an estimate of the approximate replacement cost based on
our experience with other communities of similar size and on
our inspection of the visible components while on site.
Inspection of the underground lines and structures is beyond
the scope of work of this study.
Photo 13 - The water main valves for
each building are located in the
pavement
Sanitary Sewer Mains. The Association is responsible for the replacement of the sanitary sewer mains
located under the roadway within the community. No engineering drawings were available to accurately
determine distances, sizes of lines, and materials used for underground components of the system.
Accordingly, we have provided an estimate of the approximate replacement cost based on our experience
with other communities of similar size and on our inspection of the visible components while on site.
Inspection of the underground lines and structures is beyond the scope of work of this study.
Irrigation System. There are no drawings available to accurately estimate the value of the system. The
Manager reports that the Association is considering a widespread replacement of this system but no
definite schedule or scope of work is available at this time. Accordingly, we have excluded an estimate of
the approximate replacement cost. The estimate excludes replacement of the irrigation system controls
also.
Irrigation systems should be carefully monitored to eliminate repeated saturation and erosion of soils near
foundations and retaining walls.
Site Lighting. The Association is responsible for the
operation of only two pole mounted lights between the
buildings. The lighting system was not on at the time of our
site visit. We understand that the lighting system is in good
operating condition. Other site lighting around the perimeter
of the property is within the City’s rights of way and is
excluded.
Photo 14 - The two pole mounted lights
are in good condition
December 8, 2010
Bulkhead and Building Piles. The property was developed
on a pre-existing pier along the Elizabeth River. This pier
included steel sheet pile and concrete pile cap bulkheads for
portions of the perimeter. This bulkhead and pile foundation
system is subject to tidal energies and wind fetch. The
original age and design of the system components are
unknown and display a wide range of conditions and
deterioration. The Association has contacted the City of
Norfolk Engineer and has retained a professional structural
engineering consultant to advise the Board on the need for
maintenance, repairs and replacement of these components.
Photo 15 - View of the piles under
Building 2
Photo 16 - View of the deteriorated
concrete pile cap and piles
Photo 17 - View of sheet pile bulkhead
and concrete cap
We have included several budget allowance line items for funding in the Reserve Analysis for the periodic
replacement of portions of this bulkhead and piling.
Entrance Gates. The community is served by a single
entrance with a pair of drop arm gates to control ingress and
egress. The gates were not fully functioning at the time of
the site visit and the Manager reports that some operation
concerns are to be addressed in the near future but the
exact maintenance or repair requirements are not known at
this time. We have assumed the near term action is a
maintenance activity and that the components will be able to
reach their remaining economic life.
Photo 18 - View of entry gates
December 8, 2010
BUILDING EXTERIORS
General. The community is comprised of three midrise
buildings with similar construction (expect as noted below).
Buildings 1 and 2 are very similar with overall size and
configuration being basically the same. Building 3 is a larger
building and has some unique characteristics note found on
Buildings 1 & 2 but the overall use of materials are in
general the same. The inventory reflects the fact that the
buildings are all of different ages and rather than use an
average age for replacement of components the inventory is
structure around each respective building and takes into
account both differences in age and subtle differences in the
use of materials.
Photo 19 - Partial view of Building 1
Photo 20 - End elevation of Building 3
Photo 21 - Partial view of Building 2
The mid-rise nature of the buildings and the absence of ground access on the entire water side of the
buildings require more difficult access to perform exterior envelope work which is reflected in some of the
unit prices used in the inventory. The ability to combine work (i.e. joint sealants and brick tuckpointing)
for performance at the same time allows for more efficient pricing of mobilization and equipment costs
and should be considered when obtaining this work in the future.
Asphalt Shingle Roofing. Buildings 1 and 2 have a shingle roof for the main roof areas. The asphalt
shingle roofs are in fair condition for approximately 10 year old roofs on a very exposed site subject to
winds. We have estimated the remaining useful life of the roofs based on the conditions seen at the site
as well as the age of the roofs. We have assumed that when the roofs eventually will require
replacement, the Buildings 1 and 2 roofs will be replaced with 30-year shingle roofs. We have assumed
that the gutters and downspouts will be replaced when the roofs are replaced.
December 8, 2010
Photo 22 - Asphalt shingle roof on
Building 2 (some shingles have been
replaced)
Roofing unit prices reflect the height of the building and the
exposed edge at the water front which requires additional
worker safety requirements and will increase the time to
perform the work as well as the challenge to prevent roof
debris from falling into the waterway.
Photo 23 - View of shingles on Building
1 (granule wear is noted on some areas)
Metal Roofing. Building 3 has recently had its shingle roof replaced with a standing seam metal roof due
to chronic leaks and failures of the original roof. The roof is new and understood to be in good condition
with no obvious signs of disrepair or failure. However, we noted that numerous areas of the metal roof
display damage from the roof nail heads of the previous shingle roof that were not thoroughly removed or
driven flush prior to installation of the metal roof panels. This condition is not visible from the ground, but
the deformation of the panels will shorten the life of the factory applied finish. A thorough inspection by
the roof panel manufacturer should be performed to confirm if the condition will reduce or void the
warranty due to installation.
Photo 24 - Building 3 has just had a
SSMR installed to replace the shingle
roof
Photo 25 - View of the SSMR on
Building 3
December 8, 2010
We have estimated the remaining useful life of the metal roof
based on the conditions seen at the site as well as the age
of the roof, and assume the issue described above does not
void the warranty or reduce the life of the panels. We have
assumed that when the Building 3 roof eventually will require
replacement, the roof will be replaced with a similar metal
roof. We have assumed that the gutters and downspouts
will be replaced when the roof is replaced. We recommend
the periodic inspection of the roof by a professional roofing
consultant to detect early signs of failure.
Photo 26 - Numerous dimples in the
roofing are visible from the nails
underneath
Single-Ply Roofing. The single ply membrane roof used at the flat portion of each building roof is in fair
condition. There is a relatively small area of membrane roofing on each building. The condition is fair.
These roofs receive moderate traffic for the maintenance and repair of roof mounted equipment or repairs
to the main roofs.
Photo 27 - Membrane roofing is in fair
overall condition
Single-ply roofs can often fail at the seams in the panels and
around vents and other roof details. Because the rubber
oxidizes over time, the resealing of failed seams and joints
has historically proven to be difficult, in that the oxidation
inhibits the rebonding of the failed seams. Accordingly, we
have included the replacement of the roof with a 20-year
Photo 28 - Difficult access and the need
membrane roof, and estimated the remaining life of the
to move equipment impacts the
existing roofs at 10 - 12 years. We have estimated the
replacement costs
remaining useful life of the roofs based on the conditions
seen at the site as well as the age of the roofs. Because of the nature and age of the existing roof, we
recommend the periodic inspection of the roof by a professional roofing consultant to detect early signs of
failure.
Photo 29 - Sharp foreign objects expose
the membrane to tears & punctures
December 8, 2010
Photo 30 - Sharp foreign objects
expose the membrane to tears &
punctures
The defects we noted include the following:
•
Membrane Deterioration. The surface of the roof membrane is beginning to display early
evidence of deterioration. This deterioration is a result of exposure to heat, the sun’s ultraviolet
light, and pollutants in the air. It is an indication that the membrane is approaching the end of its
service life.
•
Damaged Flashings. We noted several areas where the flashing or penetration flashings are
damaged. Flashings are used to provide watertight junctions between the roofing membrane and
walls, parapets, and equipment penetrations. They are a high stress point in roofs as they serve
as transition points between materials with different rates of thermal expansion. We noted
flashing problems that included improper installation, inadequate coverage, splits, separation,
wrinkles, corrosion, loose fasteners, and open gaps. Failed flashings allow water direct access to
the roof insulation, and therefore should be repaired as soon as possible.
•
Physical Damage. There are several areas where there is potentially physical damage to the
roof’s surface from foreign objects remaining on the roof from repairs or maintenance to
equipment and other roofing. Physical damage to a roof often results in a puncture or tear in the
roof membrane, allowing water to enter. Typical causes include foot traffic, items dropped on the
roof, vandalism, wind, and hail. Punctures, tears, and other damage must be repaired to prevent
water entry into the roof's insulation. If the physical damage is limited to areas surrounding roofmounted equipment, roof walkway pads should be installed to prevent further damage in the
future.
•
Ponded Water. A small percent of the roof area was covered with ponded water (frozen at the
time of the site visit). Ponding occurs when the roof does not fully drain within 48 hours of a
rainfall. It is an indication that the roof lacks adequate slope or roof drains, or that roof drains
may not be properly placed. Ponded water can damage roofing materials by chemically altering
their composition. The weight of the water can also cause physical damage to the roof by
collapsing the roof's insulation. Check nearby roof drains to ensure their proper operation.
Additional drains may be required to correct ponding.
•
Roof Penetrations. We noted some roof penetrations that are in questionable or obviously poor
condition. Wherever mechanical equipment, vents, or piping penetrates the roof surface, the risk
for developing leaks increases. Typical problems included loss of pitch pocket sealant, damaged
flashings, traffic wear, physical damage to the roof surface, and erosion of the roof surface. Any
opening or damage around roof penetrations must be repaired as quickly as possible to limit
damage. Consider installing roof walkway pads for rooftop-mounted equipment to limit damage
to the roof's membrane.
•
December 8, 2010
Debris. There is a significant amount of debris on the roof, including, maintenance materials,
sheet metal and piping with sharp edges. Leaves and trash can easily block roof drains, causing
water to pond on the roof surface. Other debris poses a puncture risk to the roof’s membrane.
We understand that roof top equipment was being replaced at the time of the visit on some buildings and
assume some of the debris would be removed when the work was completed, however, this needs to be
verified by the Owner to ensure no remaining foreign materials remain that would damage the roof.
Brickwork and Lintels. The brickwork on the buildings is in good overall condition. Brick is usually
considered to be a life of structure item and therefore excluded from reserve funding. Because weather
and other conditions result in the slow deterioration of the mortar in the brick joints, we have included
funding in the Reserve Analysis for tuckpointing.
Photo 31 - Pointing and joint sealants
should be performed at the same time
Photo 32 - Corroded lintels and broken
brick
Tuckpointing is the process of raking and cutting out damaged sections of mortar and replacing them with
new mortar. When mortar joints become damaged, they allow water to gain access to the brick joints.
Repeated freeze-thaw cycles gradually increase the damage to the mortar joints, allowing even more
moisture into the brick joints. If allowed to progress sufficiently, the brick surfaces can spall or entire
bricks can be loosened.
Periodic tuckpointing limits the damage done by moisture penetration, maximizing the life of both the
mortar and the bricks. For the Reserve Analysis, we have assumed that five percent of the brick will
require tuckpointing every ten years once the brickwork is approximately 30 to 35 years old.
Some cracked and broken brick was observed and is believed to be attributed to the infiltration of water at
doors or windows or at the intersection of balconies with exterior walls, or by structural movement of the
building that is not accommodated by appropriate sized and spaced expansion and control joints. These
conditions should be examined more thoroughly by a professional engineer or architect that specializes in
forensic analysis and investigation for a properly document assessment, conclusions and
recommendations.
The exterior door and window openings are constructed with galvanized steel lintels, but the garage door
openings are not. These lintels are displaying signs of corrosion and are expected to be corroding within
the wall assembly overtime and therefore will require replacement as needed in the future.
Exterior Joint Sealants. These building have extensive exterior joint sealants. These sealants provide
a vital role in maintaining the envelope in a water tight condition. Exterior sealants deteriorate within 7 10 years depending on the conditions present, the quality of the sealant used and the quality of
workmanship to install them. Sealants need to be thoroughly replaced when they begin to show
deterioration and not after they have failed.
December 8, 2010
Shrinkage, crazing, loss of cross section, separation from adjacent surfaces and substrates are all
indications that the sealants are near the end of their economic life.
Exterior Insulation Finish System (EIFS). The buildings use a limited quantity of EIFS as a cladding for
the roof level chimney and dormer elements on all three buildings and the cupola structures on Buildings
1 and 3.
Photo 33 - View of EIFS clad false
chimney
Photo 34 - EIFS is used on the Building
1 and 3 cupolas
Exterior Wall Insulation and Finish System (EIFS), often
incorrectly called synthetic stucco, is a lightweight, synthetic
wall cladding system constructed from plastic foam
insulation and several thin synthetic coatings.
There are two types of EIFS systems. One type, called
“barrier”, assumes that the surface is waterproof and
therefore has no provision for releasing wind-driven water
that permeates the surface. The second type, called “watermanaged”, allows for water penetration by implementing a
drainage system within the wall that drains any water that
enters or condenses behind the surface coat. The industry
is no longer installing the barrier systems because of a
history of failures, and instead installs the water-managed
system.
Photo 35 - EIFS is used for sidewalls of
the dormers
The EIFS was visually inspected. No major defects were noted. EIFS systems have historically
experienced problems resulting from faulty installation and inappropriate design details that trap moisture
behind the weather barrier. These conditions have caused leaks and structural damage at other
locations. Improper detailing can also cause surface cracking. These defects can only be found by close
inspection from scaffolding and by removal of small sections of the material to test if moisture is present.
This activity is beyond the scope of this study. We recommend periodic inspection of the building by a
professional certified and equipped to conduct this type of inspection.
The property has a water managed EIFS system. Even though the water managed system provides a
higher level of protection than the barrier system, it must be properly maintained in order to prevent water
penetration and the resulting damage. Recommended maintenance practices include the following:
•
All EIFS surfaces should be inspected once every year for physical damage.
•
Once each year, inspect all openings around wall penetrations, including those around windows,
doors, electrical outlets, and any piping for proper sealing.
•
December 8, 2010
Once every ten years, apply a silicone based color coat to counter the slow deterioration of the
EFIS surface caused by ultraviolet light.
We recommend that the Purchaser contact EIMA (EIFS industry manufacturers association) to determine
inspection requirements and establish an annual inspection program. EIMA may be reached at the
following:
EIMA
3000 Corporate Center Drive, Suite 270
Morrow, GA 30260
Tel:
1-800-294-3462 or 1-770-968-7945
www.eifsfats.com
Alternatively, the Purchaser may contact the manufacturer of Drivit or similar products to gain a better
understanding of the EIFS system and standard inspection and maintenance procedures.
Trim and Soffits. The roof eaves are provided with a solid PVC trim material and perforated vinyl soffits.
These materials are typically capable of providing a 30+year economic life. However, site observations
indicate that the fasteners used on some location do no appear to be stainless steel and are corroding. It
is believed the fasteners will fail before the trim and soffit materials are depleted of economic life. As the
buildings age these components will begin to fail during high wind events and will require partial
replacement which will be very expensive due to the difficult access and equipment required to perform
the work.
Photo 36 - Typical fascia trim
Photo 37 - Trim is fastened with ferrous
nails that are corroding
Exterior Vents and Louvers. The exterior vent
penetrations through the brick walls are typically in fair to
good overall condition for the age of the property. These
vents are not considered to be suitable for the high wind
exposure for the location of the community. Additionally, it
was reported by the Manager that many of the vents have
been determined to have improper or no positive connection
between the duct and the vent at the exterior wall cavity
leading to occurrences of moisture and condensation within
the wall assembly.
Metal louvers are provided at the garage level for exhaust
fans and air intakes.
Photo 38 - Typical garage louver for air
intakes
Photo 39 - Some roof level vents are in
poor condition
December 8, 2010
Photo 40 - Through wall vents are
reported to lack proper installation at
ducts in the wall assembly
Metal Exterior Doors. The exterior doors are of metal
construction. These doors are approximately 8-10 years old
depending on the building and are in fair to poor condition.
Metal doors and their frames are prone to damage from
corrosion. To limit damage, doors and frames should be
painted every five to six years. One of the doors has begun
to corrode at the bottom and is planned for replacement in
the near future.
The Association should consider replacement doors and
frames that are solid fiberglass extrusions to avoid the
corrosions issues in the future.
The Manager has indicated that fiberglass door is being
provided for replacement.
Photo 41 - Heavily corroded metal doors
are to be replaced
Storefront Entrances. The main entrance to each building is provided with a vestibule that includes a
storefront entry door system. These doors are typically in good condition and are partially protected from
either a concrete balcony above (Buildings 1 and 2) or an awning (Building 3). These are expected to
meet their full economic life potential of 35 years +/-. The entrance access controls are in good overall
condition.
Photo 42 - View of Building 3 entrance
doors and awnings
December 8, 2010
Photo 43 - View of typical access control
panel/intercom
Sliding Door and Window Sill Pans. The condo docs
indicate that the sill pans and flashings for exterior doors and
windows of units is the Association’s responsibility. The sill
pans and flashings have recently been suspected of being
sources of moisture infiltration and are the subject of a
pending investigation to determine the extent of the
condition and the need for potential replacement.
Base upon our own visual observations on site, we have
identified significant cracking of brick joints were sill pans
and through wall flashings are believed to be installed. We
have included the cost of partial sill pan and flashing
replacement in the inventory and recommended that the
outcome of the investigation (by others) be used to establish
a replacement program for these critical wall assembly
features.
Photo 44 - Cracks beneath the threshold
of sliding doors are suspected to be
related to improperly installed
throughwall flashing and sill pans
The cost of the work shall require scaffold and lift and should
be coordinated with other similar work (joint sealants and brick repointing) as appropriate to save costs if
possible. The cost of the investigation by a professional design firm with forensic
architectural/engineering experience is excluded.
December 8, 2010
Balcony Columns, Decking and Soffits. Balcony columns
were reported by the Manager to have required partial
replacement (2 were replaced and 14 repaired) recently, due
to moisture related deterioration. There have also been
concerns raised as to the effect that ledger installation and
sliding door sill flashing is having on the structure of the
balconies. The balconies will require both decking and soffit
replacements when the structure is replaced. Additionally,
interval replacement of the decking will be more frequent
that the structure under normal circumstances.
Balcony Railings. The balcony railings are in fair to good
condition. The railings typically will require full replacement
in the future to coincide with replacement of the
deck/balcony structures. Interim refurbishing is also
anticipated to address corroded fasteners, and coating
failures to ensure the railings can meet their full economic
life potential.
Photo 45 - View of typical balconies
Photo 46 - Building 3 balconies
Photo 47 - Typical balconette railings
BUILDING INTERIORS
Parking Garage. The Association is responsible for the operation of the concrete ground floor parking
garage.
Photo 48 - Typical garage overhead
door
December 8, 2010
Photo 49 - Typical garage interior view
Listed below are the major components of the parking garage:
•
Overhead Doors. The buildings have a total of eight electrically-operated overhead doors. All
doors are in good operating condition. The doors display minor deterioration from normal wear
and tear and weather deterioration.
•
Lighting System. The parking garage uses ceiling mounted T8 fluorescent HID light fixtures for
lighting. The light output from the existing system is adequate for the area. Ballasts are wearing
out and the Association is replacing lights as needed.
•
Garage Ventilation Fans. Each parking garage has supply and exhaust fans. We have assumed
a service life of 20 years for these fans. The exhaust fans are operated by the CO2 detection
system and the air intakes are thermostatically controlled.
•
Garage Heaters. There are small ceiling mounted heating units that serve the parking garage
areas. The heaters were operating at the time of the site visit. The heaters are in good operating
condition and only provide sufficient heat to prevent freezing of plumbing and fire sprinkler piping
within the garage spaces.
Photo 50 - Thermostatically controlled
air intake
Photo 51 - Typical garage unit heater
Garage Concrete Slabs. The garage area concrete slabs are excluded as a long lived component.
However, it was observed that the slabs display several large cracks. Given the reported concerns with
the property bulkhead, building pile foundations and the occurrence of sink holes within the property
limits, the potential exists that the garage slabs may experience failures requiring partial replacement in
December 8, 2010
the future. This cannot be predicted and would require the investigation and opinion of a professional
structural engineer to determine appropriate replacement and costs at such time as these failures occur.
Floor Finishes. The common area floor finishes vary from building to building an even from floor to floor
in certain buildings. The quantities and conditions are based on the site visit and include the carpeting,
porcelain tile and stone tile flooring in the main entrance lobbies and in each corridor. Flooring normal life
and remaining life are based on the conditions and the level of usage for the property, and replacement
values are based on replacement in kind with comparable materials and quality.
Photo 53 - Ceramic tile flooring at
corridor
Photo 52 - Marble tile flooring in Building
3
Photo 54 - Porcelain tile flooring at first
floor lobby
Photo 55 - Corridor carpeting
Wall Coverings. The corridors in various buildings have different finishes. No wall coverings are used in
the corridors of Building 1 and different types of wall covering are used at different floors in Buildings 2
and 3.
Photo 56 - Wall coverings vary
throughout each building and corridor
December 8, 2010
Photo 57 - Typical view of lobby
furnishings & décor
Décor and Furnishings. The buildings common areas are decorated and furnished with a multitude of
seating, tables and accessories to include lamps, mirrors and oriental rugs. Décor is typically replaced
more frequently than the normal economic life potential due to changes in taste. Therefore we have
programmed a modest amount for the replacement of these items based on the quality and quantity
present.
Mailboxes.
Each building is provided with anodized
aluminum cluster mailboxes in the main lobby. These are all
in good condition and should provide a normal life of 35-40
years.
Photo 58 - Typical mail boxes
PLUMBING, MECHANICAL & ELECTRICAL
Domestic Water Booster Pumps and Pressure Tanks. Each building is provided with a backflow
preventer. The common water for each building is designed to maintain adequate water pressure in the
buildings by use of a pair booster pumps with their controller and a single pressure tank per building.
When it comes time to replace or upgrade the system, we recommend that the Association consider
installing a booster pump system that uses variable frequency drives to control the operating speed of the
December 8, 2010
pumps and match their output to the needs of the building. These systems provide better pressure
control while reducing energy requirements.
Photo 59 - Typical backflow preventer
for domestic water
Photo 60 - Typical pressure tank,
booster pumps and controller for
domestic water
Common Domestic Water Piping. As mid-rise buildings, these facilities are designed with common
plumbing risers for domestic water and sanitary sewer lines. Copper water supply piping is believed to
have been used throughout the buildings. As a result of changes in water chemistry that have been
brought on by federal clean water legislation, copper piping can develop pin hole leaks which will lead to
high maintenance costs and a significantly shorter normal service life. For further information about the
problem and research that is being conducted, go to www.wssc.dst.md.us, click on the dropdown box
labeled “Customers”, and click on the listing for “Pin Hole Leaks”.
As a result of this problem, the piping will have to be replaced at some point in time. As a less expensive
alternative to the extremely costly work of re-piping a building, systems have been developed to clean
and to line the interior surfaces of water lines with an epoxy coating that is warranted to last 25 years.
This alternative is still very expensive (approximately $5,000 per unit), but it is still significantly less
expensive than re-piping. For additional information, go to www.fixmypipes.com. Assuming that the
chemical deterioration from the water content is inevitable, we have included funding for this work in the
reserve study. In estimating the amount to be reserved, we have assumed that the cost of lines serving a
single unit will be paid by unit owners and that the cost of funding risers will be paid from reserves.
Please note that the timeframe for repiping a building can vary widely, and the estimation of the remaining
economic life is highly speculative. Given the age of these buildings, the Association should be aware of
the various technologies available for pipe replacement and pipe lining. Please, see the following web
sites for general information on this topic:
www.curaflo.com/index.cfm?fuseaction=pages.showpage&pageid=60 and www.fixmypipes.com.
December 8, 2010
Heat Pumps. There are single heat pumps that serve each
building with an air handler on the ground floor to support
the ground floor lobby and each floor’s corridors. We have
included two items in the Reserve Analysis for the heat
pumps; the heat pump system and the system’s
compressor. For the system, we have assumed a service
life of 30 years. For the system’s compressor, we have
assumed a service life of 15 years.
Photo 61 - Typical heat pump air handler
Elevators. Building one is provided with a single hydraulic
passenger elevator with four stops. Both Buildings 2 and 3
are provided with a single electric traction passenger
elevator with four stops. The elevators were all found to be
in good operating condition and equipment displayed current
inspection and service call data.
The estimated cost of replacing the major components of the
building elevators has been developed utilizing R.S. Means
Construction Cost Data. These costs are included to reflect
the obsolescence that occurs with elevator systems. Even
though the systems may be functioning well at this time,
parts for most mechanical control systems are becoming
increasingly hard to find. Parts availability becomes a major
consideration that forces a replacement decision. When this
work is ultimately accomplished, the elevators will have to be
brought into compliance with the latest safety code
requirements. This work typically entails upgrading door
operating mechanisms, replacing elevator call systems, and
installation of emergency phones. A prudent amount has
been included in anticipation of these problems.
Photo 62 - View of elevator cab finishes
December 8, 2010
Photo 63 - Elevator equipment is in good
condition and under service contract
Photo 64 - Typical elevator doors in
corridor
Electrical Switchgear. The electrical switchgear includes the secondary distribution equipment,
disconnects, relays, fuses, and circuit breakers for the facility. The electrical switchgear dates to the
original construction of the building. Electrical switchgear has a rated service life of 50 years or more.
Electrical switchgear requires ongoing maintenance for proper operation and reliability.
The overall condition of the switchgear is good. As the switchgear continues to age, obtaining
replacement parts can be expected to become more difficult. When parts no longer are available or when
the condition of the switchgear deteriorates sufficiently, the Association will have to replace or upgrade
the existing equipment. Therefore we have included partial funding in the Reserve Analysis for future
upgrading the equipment.
Photo 65 - Electrical equipment is in
good condition
Photo 66 - Generator is in good
condition
Emergency Generator. The building is served by a backup generator that is located outside adjacent to
Building 1. The generator is approximately 10 years old and is in good condition. The Manger could not
confirm the size and the cabinet on the generator was locked so the data could not be obtained from the
equipment itself. We have assumed a size and capacity for the generator based on the number of
buildings being served. The generator supplies power to the building’s emergency lighting, stairwell
December 8, 2010
lighting, heating system, HVAC system pumps, elevator elevators, sump pumps and the fire pump. The
estimated cost of replacing the generator has been developed utilizing R.S. Means Construction Cost
Data.
Interior Lighting. Common area lighting in addition to the garage lighting mentioned above includes the
wall sconces used for general lighting in the corridors as well as lighting in stairways and miscellaneous
rooms (i.e. storage, mechanical and electrical closets, fire and plumbing rooms and trash rooms).
Photo 67 - Decorative wall sconces
Photo 68 - Styles vary
Lighting is generally replaced as needed. However, the use of decorative scones will result in surplus
fixtures being used up and the availability of replacement lights to match existing will be obsolete. When
this occurs the entire lighting on a floor or in a building is typically replaced to ensure consistent
aesthetics throughout.
Exterior Lighting. The buildings include exterior lights at
each balcony as well as large decorative lights at the ground
floor adjacent to garage entrances. These large fixtures are
not identical on each building. For aesthetic reasons the
replacement of fixtures should be performed all at one time
once the availability of parts is not longer reliable.
Photo 69 - Exterior lights vary in style
and condition
Fire Suppression. The wet pipe sprinkler fire suppression for all three buildings is supplied by a main
fire pump within Building 1. The backflow preventer, pump, jockey pump, pump controllers, valves and
piping are all in good condition and bear current inspection tickets.
December 8, 2010
Photo 71 - Fire pump controller
Photo 70 - View of fire pump
Fire Alarm & Detection Systems. Each building is
provided with a fire alarm control panel and devices for
detection and alarm including strobes and audible alarms,
illuminated exit signage and egress lighting. These
components are all in good condition and typically will only
be replaced as need until the entire system becomes
obsolete from changes in the technology and the applicable
codes.
Photo 72 - Typical fire alarm indicator
panel
Photo 73 - Typical exit signage and
alarm strobe
Photo 74 - Typical egress light
December 8, 2010
This Condition Assessment is based upon our visual survey of the property. The sole purpose of the
visual survey was an evaluation of the common elements of the property to ascertain the remaining useful
life and the replacement costs of these common elements. Our evaluation assumed that all components
met building code requirements in force at the time of construction. Our visual survey was conducted
with care by experienced persons, but no warranty or guarantee is expressed or implied.
End of Condition Assessment
Cash Flow Method Accounting Summary - Page CF-1
December 8, 2010
1068105PIERPOIN11
CASH FLOW METHOD ACCOUNTING SUMMARY
This Pierpointe at Freemason Harbour - Cash Flow Method Accounting Summary is an attachment to the
Pierpointe at Freemason Harbour - Replacement Reserve Study dated December 8, 2010 and is for use by
accounting and reserve professionals experienced in Association funding and accounting principles.
This Summary consists of four reports, the 2011, 2012, and 2013 Cash Flow Method Category Funding
Reports (3) and a Three-Year Replacement Funding Report.
z CASH FLOW METHOD CATEGORY FUNDING REPORT, 2011, 2012, and 2013. Each of the 202 Projected
Replacements listed in the Pierpointe at Freemason Harbour Replacement Reserve Inventory has been
assigned to one of 13 categories. The following information is summarized by category in each report:
Normal Economic Life and Remaining Economic Life of the Projected Replacements.
Cost of all Scheduled Replacements in each category.
Replacement Reserves on Deposit allocated to the category at the beginning and end
of the report period.
Cost of Projected Replacements in the report period.
Recommended Replacement Reserve Funding allocated to the category during the
report period as calculated by the Cash Flow Method.
z THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $444,318
Beginning Balance (at the start of the Study Year) and the $464,312 of additional Replacement Reserve
Funding in 2011 through 2013 (as calculated in the Replacement Reserve Analysis) to each of the 202
Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made
using Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and discussed below.
The calculated data includes:
Identification and estimated cost of each Projected Replacement schedule in years 2011 through 2013.
Allocation of the $444,318 Beginning Balance to the Projected Replacements by Chronological Allocation.
Allocation of the $464,312 of additional Replacement Reserve Funding recommended in the
Replacement Reserve Analysis in years 2011 through 2013, by Chronological Allocation.
z CHRONOLOGICAL ALLOCATION. Chronological Allocation assigns Replacement Reserves to Projected
Replacements on a "first come, first serve" basis in keeping with the basic philosophy of the Cash Flow Method.
The Chronological Allocation methodology is outlined below.
The first step is the allocation of the $444,318 Beginning Balance to the Projected Replacements in the
Study Year. Remaining unallocated funds are next allocated to the Projected Replacements in subsequent
years in chronological order until the total of Projected Replacements in the next year is greater than the
unallocated funds. Projected Replacements in this year are partially funded with each replacement
receiving percentage funding. The percentage of funding is calculated by dividing the unallocated funds
by the total of Projected Replacements in the partially funded year.
At Pierpointe at Freemason Harbour the Beginning Balance funds 55.5% of Scheduled Replacements in
the Study Year through 2016 and provides partial funding(1%) of replacements scheduled in 2017.
The next step is the allocation of the $154,771 of 2011 Cash Flow Method Reserve Funding calculated
in the Replacement Reserve Analysis. These funds are first allocated to fund the partially funded"
Projected Replacements and then to subsequent years in chronological order as outlined above.
At Pierpointe at Freemason Harbour the Beginning Balance and the 2011 Replacement Reserve
Funding, funds replacements through 2017 and partial funds (36.4%) replacements in 2018.
Allocations of the 2012 and 2013 Reserve Funding are done using the same methodology.
The Three-Year Replacement Funding Report details component by component allocations made by
Chronological Allocation.
December 8, 2010
1068105PIERPOIN11
2011 - CASH FLOW METHOD CATEGORY FUNDING REPORT
Each of the 202 Projected Replacements included in the Pierpointe at Freemason Harbour Replacement Reserve
Inventory has been assigned to one of the 13 categories listed in TABLE CF-1 below. This calculated data is a
summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory.
The accuracy of this data is dependent upon many factors including the following critical financial data:
A Beginning Balance of $444,318 as of the first day of the Study Year, January 1, 2011.
Total reserve funding (including the Beginning Balance) of $599,089 in the Study Year.
No expenditures from Replacement Reserves other than those specifically listed in the
All Projected Replacements scheduled in the Replacement Reserve Inventory in 2011 being
accomplished in 2011 at a cost of $31,295.
If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates
to arrange for an update of the Replacement Reserve Study.
2011 - CASH FLOW METHOD CATEGORY FUNDING - TABLE CF-1
CATEGORY
NORMAL
ECONOMIC
LIFE
REMAINING
ECONOMIC
LIFE
ESTIMATED
REPLACEMENT
COST
2011
BEGINNING
BALANCE
2011
RESERVE
FUNDING
SITE COMPONENT
6 to 60 years
2 to 60 years
$106,544
$19,065
$8,880
4 to 40 years
0 to 31 years
$746,500
$99,245
$58,665
2011
PROJECTED
REPLACEMENTS
2011
END OF YEAR
BALANCE
$1,200
$159,110
$12,395
$107,709
$27,944
10 to 35 years 10 to 25 years
$27,949
$1,381
$1,795
10 to 30 years
0 to 30 years
$377,341
$62,025
$33,290
$3,176
10 to 30 years
1 to 30 years
$363,983
$49,642
$25,995
10 to 30 years
2 to 30 years
$695,901
$47,504
$37,212
7 to 30 years
0 to 12 years
$157,686
$34,159
$33,583
3 to 42 years
0 to 25 years
$27,439
$4,261
$2,960
3 to 42 years
0 to 25 years
$38,926
$5,443
$2,973
$8,416
3 to 42 years
0 to 32 years
$57,831
$6,449
$3,901
$10,350
8 to 40 years
1 to 30 years
$328,665
$37,383
$17,461
$54,844
8 to 40 years
2 to 31 years
$316,765
$36,493
$18,746
$55,239
8 to 40 years
3 to 32 years
$441,857
$41,269
$22,097
$63,366
$75,637
$84,716
$17,700
$85,442
$7,220
December 8, 2010
1068105PIERPOIN11
Replacement Reserves on Deposit totaling $567,794 on January 1, 2012.
Total reserve funding (including the Beginning Balance) of $753,860 in 2011 through 2012.
CATEGORY
NORMAL
ECONOMIC
LIFE
REMAINING
ECONOMIC
LIFE
ESTIMATED
REPLACEMENT
COST
2012
BEGINNING
BALANCE
2012
RESERVE
FUNDING
SITE COMPONENT
6 to 60 years
1 to 59 years
$106,544
$27,944
$8,880
4 to 40 years
0 to 30 years
$746,500
$159,110
$58,203
2012
PROJECTED
REPLACEMENTS
2012
END OF YEAR
BALANCE
$62,850
$280,162
$36,824
10 to 35 years
9 to 24 years
$27,949
$3,176
$1,795
$4,971
10 to 30 years
4 to 29 years
$377,341
$107,709
$26,171
$133,881
10 to 30 years
0 to 29 years
$363,983
$75,637
$25,995
10 to 30 years
1 to 29 years
$695,901
$84,716
$37,212
$12,395
$114,028
$121,928
7 to 30 years
0 to 11 years
$157,686
$85,442
$24,107
$20,400
3 to 42 years
0 to 24 years
$27,439
$7,220
$2,960
$5,100
$129,949
3 to 42 years
1 to 24 years
$38,926
$8,416
$2,973
3 to 42 years
1 to 31 years
$57,831
$10,350
$3,901
8 to 40 years
0 to 29 years
$328,665
$54,844
$17,461
8 to 40 years
1 to 30 years
$316,765
$55,239
$18,746
$73,984
8 to 40 years
2 to 31 years
$441,857
$63,366
$22,097
$85,463
$15,280
$11,388
$14,251
$3,100
$75,405
December 8, 2010
1068105PIERPOIN11
Total Replacement Reserve funding (including the Beginning Balance) of $908,630 in 2011 to 2013.
NORMAL
ECONOMIC
LIFE
REMAINING
ECONOMIC
LIFE
ESTIMATED
REPLACEMENT
COST
SITE COMPONENT
6 to 60 years
0 to 58 years
$106,544
4 to 40 years
0 to 29 years
$746,500
CATEGORY
2013
BEGINNING
BALANCE
2013
RESERVE
FUNDING
2013
PROJECTED
REPLACEMENTS
2013
END OF YEAR
BALANCE
$36,824
$8,880
$7,464
$53,167
$280,162
$42,229
$560
$322,951
10 to 35 years
8 to 23 years
$27,949
$4,971
$1,795
$6,766
10 to 30 years
3 to 28 years
$377,341
$133,881
$26,171
$160,052
10 to 30 years
4 to 29 years
$363,983
$114,028
$22,539
10 to 30 years
0 to 28 years
$695,901
$121,928
$37,212
$17,495
$176,635
7 to 30 years
0 to 10 years
$157,686
$129,949
$18,995
$25,400
$174,344
3 to 42 years
8 to 23 years
$27,439
$15,280
$1,663
3 to 42 years
0 to 23 years
$38,926
$11,388
$2,973
$2,550
$16,911
3 to 42 years
0 to 30 years
$57,831
$14,251
$3,901
$6,503
$24,654
$136,566
$16,943
8 to 40 years
0 to 28 years
$328,665
$75,405
$16,608
$1,540
$93,553
8 to 40 years
0 to 29 years
$316,765
$73,984
$18,746
$3,100
$95,830
8 to 40 years
1 to 30 years
$441,857
$85,463
$22,097
$107,560
December 8, 2010
1068105PIERPOIN11
CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT
TABLE 4 below details the allocation of the $444,318 Beginning Balance, as reported by the Association and the
$464,312 of Replacement Reserve Funding calculated by the Cash Flow Method in 2011 to 2013, to the 202
Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by
Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF-1.
The accuracy of the allocations is dependent upon many factors including the following critical financial data:
Total Replacement Reserve funding (including the Beginning Balance) of $908,630 in 2011 to 2013.
All Projected Replacements scheduled in the Replacement Reserve Inventory in 2011 to 2013 being
accomplished as scheduled in the Replacement Reserve Inventory at a cost of $199,751.
If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson
Associates, Inc., to arrange for an update of the Replacement Reserve Study.
CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF-4
Item
#
Description of
Projected
Replacement
Estimated
Replacement
Costs
Allocation
of Beginning
Balance
7,464
52,247
4,699
4,699
4,699
8,766
8,766
8,766
404
404
404
404
404
404
404
404
404
404
1,200
1,200
7,464
2011
2011
Reserve
Projected
Funding Replacements
2011
End of Year
Balance
2012
2012
Reserve
Projected
2012
End of Year
Balance
2013
2013
Reserve
Projected
2013
End of Year
Balance
SITE COMPONENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Concrete curb (20%)
Concrete curb (20%)
Concrete curb (20%)
224
7,464
180
1,704
11,931
1,073
9,168
11,931
1,073
5,759
40,315
3,626
2,002
2,002
6,764
(7,464)
7,464
52,247
4,699
8,766
404
404
404
1,200
1,200
1,200
1,200
560
4,000
2,553
750
2,400
20,250
560
4,000
4,600
750
1,200
20,250
560
4,000
4,600
750
1,474
926
4,000
4,600
750
2,400
17,197
10,803
28,000
12,061
12,061
1,303
1,037
1,241
930
1,303
1,037
1,241
930
21
22
23
24
25
26
27
28
29
30
31
32
33
Light pole, site
Gate barrier
Keypad entry system
2,520
560
4,000
4,600
750
1,200
20,250
83,700
42,600
207,320
14,000
330,000
35,000
2,047
(1,200)
42,600
42,600
14,000
14,000
274
(560)
(20,250)
(42,600)
3,197
34
35
36
37
38
39
3" water meter
Sanitary main (10%)
4,400
3,780
3,010
3,600
2,700
4,750
December 8, 2010
1068105PIERPOIN11
CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE 4 cont'd
Item
#
40
41
Description of
Projected
Replacement
Estimated
Replacement
Costs
Allocation
of Beginning
Balance
2011
2011
Reserve
Projected
2011
End of Year
Balance
2012
2012
Reserve
Projected
2012
End of Year
Balance
2013
2013
Reserve
Projected
2013
End of Year
Balance
4,100
1,609
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
PVC Fascia Trim
EIFS dormers, chimneys & cupola, rep
EIFS dormers, chimneys & cupola, refu
Balcony decking
Garage doors
Exterior doors
70,042
14,000
4,199
3,900
18,000
15,600
3,500
5,621
1,440
1,200
19,451
4,000
5,585
64,900
92,880
1,636
20,655
531
531
16,000
4,800
3,310
3,660
1,900
3,500
(3,500)
5,585
64,900
24,137
4,824
24,137
4,824
6,203
6,203
1,206
1,937
1,206
1,937
6,703
1,378
6,703
1,378
(5,585)
64,900
64,900
64,900
1,636
1,636
1,636
1,636
531
531
531
531
1,900
1,900
1,900
1,900
3,500
3,500
(3,500)
(5,585)
64,900
64,900
3,310
(3,310)
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
PVC Fascia
Balcony decking
Garage doors
Exterior doors
56,983
14,000
4,199
3,600
18,000
15,600
3,500
5,621
1,440
1,200
19,451
4,000
5,585
64,900
92,880
1,636
20,655
531
531
16,000
4,800
3,310
3,660
1,900
5,585
36,024
28,875
5,585
64,900
908
728
1,636
1,636
1,636
295
236
531
531
531
1,900
1,900
1,900
3,500
3,500
(3,500)
(7,375)
3,310
1,055
3,310
845
(3,310)
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
PVC Fascia
Balcony decking
287,587
21,000
6,911
5,800
26,000
15,600
3,500
6,353
2,880
2,400
32,012
8,800
7,375
79,389
113,616
1,743
22,003
3,500
7,375
28,925
7,375
28,925
50,464
7,375
79,389
635
635
1,108
1,743
79,389
1,743
December 8, 2010
1068105PIERPOIN11
Item
#
Description of
Projected
Replacement
107
108
109
110
111
112
113
Garage doors
Exterior doors
Estimated
Replacement
Costs
797
797
24,000
9,600
6,620
7,320
3,800
Allocation
of Beginning
Balance
2011
2011
Reserve
Projected
290
2011
End of Year
Balance
290
6,620
2012
2012
Reserve
Projected
506
2012
End of Year
Balance
2013
2013
Reserve
Projected
797
6,620
2013
End of Year
Balance
797
6,620
(6,620)
1,385
1,385
2,415
3,800
3,800
7,215
5,908
8,862
16,215
5,908
8,862
10,307
15,461
16,215
16,215
24,323
3,309
16,215
16,215
24,323
3,309
2,083
1,466
6,100
2,700
1,900
6,100
BUILDING EXTERIOR (Miscellaneo
114
115
116
117
118
119
120
121
122
123
124
16,215
16,215
24,323
9,603
9,603
16,326
2,700
1,900
17,700
17,700
25,400
9,001
2,700
2,700
17,700
17,700
25,400
617
434
(2,700)
617
434
(17,700)
17,700
25,400
(17,700)
5,100
(5,100)
25,400
(25,400)
125
126
127
128
5,100
14,199
6,500
1,640
5,100
2,240
2,240
129
130
131
132
133
134
5,532
2,550
14,199
6,500
1,640
8,505
2,550
2,550
2,550
(2,550)
2,240
4,721
3,784
8,505
8,505
6,503
6,503
2,240
8,505
135
136
137
138
139
140
23,470
6,503
14,199
6,500
2,624
4,536
6,503
(6,503)
2,240
1,653
1,653
2,883
2,240
4,536
4,536
7,900
29,500
7,900
29,500
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
Pump controller
Pressure tanks
Heat pump, 2.5 ton
Air handler
Backup generator
Switchgear
7,900
29,500
14,800
2,600
1,450
176,000
1,600
3,900
4,300
7,700
3,300
1,985
1,250
2,980
1,540
1,680
2,000
1,200
3,120
2,160
39,000
3,600
3,100
12,000
7,900
29,500
7,900
29,500
1,540
2,000
666
3,120
2,160
3,100
534
1,540
1,540
2,000
1,200
3,120
2,160
2,000
1,200
3,120
2,160
3,100
(3,100)
896
500
896
500
684
431
684
431
(1,540)
2,000
1,200
3,120
2,160
December 8, 2010
1068105PIERPOIN11
Item
#
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
Description of
Projected
Replacement
Pump controllers
Pressure tanks
Backflow preventer
Heat pump, 2.5 ton
Air handler
Estimated
Replacement
Costs
Allocation
of Beginning
Balance
7,900
60,200
30,100
2,600
1,450
176,000
1,600
3,900
1,985
1,250
2,980
1,540
1,680
2,000
1,200
3,120
2,160
3,100
12,000
4,385
33,416
2011
2011
Reserve
Projected
3,515
26,784
1,540
2,000
1,732
1,199
3,100
437
1,388
961
2011
End of Year
Balance
2012
2012
Reserve
Projected
2012
End of Year
Balance
2013
2013
Reserve
Projected
2013
End of Year
Balance
7,900
60,200
7,900
60,200
7,900
60,200
1,540
1,540
1,540
2,000
1,200
3,120
2,160
3,100
2,000
1,200
3,120
2,160
2,000
437
3,120
2,160
3,100
763
(3,100)
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
Pump controllers
Pressure tanks
Backflow preventer
Heat pump, 2.5 ton
Air handler
7,900
60,200
30,100
2,600
1,450
281,600
3,200
3,900
1,985
1,250
5,960
3,080
2,520
3,100
1,850
4,992
4,320
5,250
16,600
2,878
21,933
3,080
1,721
5,022
38,267
3,080
1,379
1,819
1,574
5,250
2,878
21,933
3,100
1,819
1,574
5,250
422
3,173
2,746
7,900
60,200
7,900
60,200
3,080
3,080
3,100
422
4,992
4,320
5,250
1,428
3,100
1,850
4,992
4,320
5,250
Component Method Accounting Summary - Page CM-1
December 8, 2010
1068105PIERPOIN11
COMPONENT METHOD ACCOUNTING SUMMARY
This Pierpointe at Freemason Harbour - Component Method Accounting Summary is an attachment to the
Pierpointe at Freemason Harbour - Replacement Reserve Study dated December 8, 2010 and is for use by
accounting and reserve professionals experienced in Association funding and accounting principals.
This Summary consists of four reports, the 2011, 2012, and 2013 Cash Flow Method Category Funding
Reports (3) and a Three-Year Replacement Funding Report.
z COMPONENT METHOD CATEGORY FUNDING REPORT, 2011, 2012, and 2013. Each of the 202 Projected
Replacements listed in the Pierpointe at Freemason Harbour Replacement Reserve Inventory has been
assigned to one of 13 categories. The following information is summarized by category in each report:
Normal Economic Life and Remaining Economic Life of the Projected Replacements.
Cost of all Scheduled Replacements in each category.
Replacement Reserves on Deposit allocated to the category at the beginning and end
of the report period.
Cost of Projected Replacements in the report period.
Recommended Replacement Reserve Funding allocated to the category during the
report period as calculated by the Component Method.
z THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $444,318
Beginning Balance (at the start of the Study Year) and the $741,865 of additional Replacement Reserve
funding in 2011 through 2013 (as calculated in the Replacement Reserve Analysis) to each of the 202
Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made
using the Component Method as outlined in the Replacement Reserve Analysis.
The calculated data includes:
Identification and estimated cost of each Projected Replacement schedule in years 2011 through 2013.
Allocation of the $444,318 Beginning Balance to the Projected Replacements by the Component Method.
Allocation of the $741,865 of additional Replacement Reserve Funding recommended in the
Replacement Reserve Analysis in years 2011 through 2013, by the Component Method.
December 8, 2010
1068105PIERPOIN11
2011 - COMPONENT METHOD CATEGORY FUNDING REPORT
Inventory has been assigned to one of the 13 categories listed in TABLE CM-1 below. This calculated data is a summar
of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The
accuracy of this data is dependent upon many factors including the following critical financial data:
A Beginning Balance of $444,318 as of the first day of the Study Year, January 1, 2011.
Total reserve funding (including the Beginning Balance) of $711,876 in the Study Year.
2011 - COMPONENT METHOD CATEGORY FUNDING - TABLE CM-1
CATEGORY
NORMAL
ECONOMIC
LIFE
SITE COMPONENT
6 to 60 years
4 to 40 years
REMAINING
ECONOMIC
LIFE
ESTIMATED
REPLACEMENT
COST
2011
BEGINNING
BALANCE
2 to 60 years
$106,544
$19,065
$8,880
0 to 31 years
$746,500
$99,245
$58,665
2 to 60 years
2011
RESERVE
FUNDING
2011
PROJECTED
REPLACEMENTS
2011
END OF YEAR
BALANCE
$1,200
$156,710
$12,395
$82,920
$27,944
10 to 35 years 10 to 25 years
$27,949
$1,381
$1,795
10 to 30 years
0 to 30 years
$377,341
$62,025
$33,290
$3,176
10 to 30 years
1 to 30 years
$363,983
$49,642
$25,995
10 to 30 years
2 to 30 years
$695,901
$47,504
$37,212
7 to 30 years
0 to 12 years
$157,686
$34,159
$33,583
3 to 42 years
0 to 25 years
$27,439
$4,261
$2,960
3 to 42 years
0 to 25 years
$38,926
$5,443
$2,973
$8,416
3 to 42 years
0 to 32 years
$57,831
$6,449
$3,901
$10,350
8 to 40 years
1 to 30 years
$328,665
$37,383
$17,461
$54,844
8 to 40 years
2 to 31 years
$316,765
$36,493
$18,746
$55,239
8 to 40 years
3 to 32 years
$441,857
$41,269
$22,097
$63,366
$75,637
$84,716
$17,700
$50,042
$7,220
December 8, 2010
1068105PIERPOIN11
Inventory has been assigned to one of the 13 categories listed in TABLE CM-2 below. This calculated data is a
Total reserve funding (including the Beginning Balance) of $962,375 in 2011 through 2012.
CATEGORY
NORMAL
ECONOMIC
LIFE
REMAINING
ECONOMIC
LIFE
ESTIMATED
REPLACEMENT
COST
2012
BEGINNING
BALANCE
2012
RESERVE
FUNDING
SITE COMPONENT
6 to 60 years
1 to 59 years
$106,544
$27,944
$8,880
4 to 40 years
0 to 30 years
$746,500
$156,710
$58,203
2012
PROJECTED
REPLACEMENTS
2012
END OF YEAR
BALANCE
$62,850
$152,062
$36,824
10 to 35 years
9 to 24 years
$27,949
$3,176
$1,795
$4,971
10 to 30 years
4 to 29 years
$377,341
$82,920
$26,171
$109,091
10 to 30 years
0 to 29 years
$363,983
$75,637
$25,995
10 to 30 years
1 to 29 years
$695,901
$84,716
$37,212
$12,395
$89,238
$121,928
7 to 30 years
0 to 11 years
$157,686
$50,042
$24,107
$20,400
3 to 42 years
0 to 24 years
$27,439
$7,220
$2,960
$5,100
$53,749
3 to 42 years
1 to 24 years
$38,926
$8,416
$2,973
3 to 42 years
1 to 31 years
$57,831
$10,350
$3,901
8 to 40 years
0 to 29 years
$328,665
$54,844
$17,461
8 to 40 years
1 to 30 years
$316,765
$55,239
$18,746
$73,984
8 to 40 years
2 to 31 years
$441,857
$63,366
$22,097
$85,463
$5,080
$11,388
$14,251
$3,100
$69,205
December 8, 2010
1068105PIERPOIN11
Inventory has been assigned to one of the 13 categories listed in TABLE CM-3 below. This calculated data is a
Total Replacement Reserve funding (including the Beginning Balance) of $1,186,183 in 2011 to 2013.
NORMAL
ECONOMIC
LIFE
REMAINING
ECONOMIC
LIFE
ESTIMATED
REPLACEMENT
COST
SITE COMPONENT
6 to 60 years
0 to 58 years
$106,544
4 to 40 years
0 to 29 years
$746,500
CATEGORY
2013
BEGINNING
BALANCE
2013
RESERVE
FUNDING
2013
PROJECTED
REPLACEMENTS
2013
END OF YEAR
BALANCE
$36,824
$8,880
$7,464
$38,240
$152,062
$42,229
$560
$193,731
10 to 35 years
8 to 23 years
$27,949
$4,971
$1,795
$6,766
10 to 30 years
3 to 28 years
$377,341
$109,091
$26,171
$135,262
10 to 30 years
4 to 29 years
$363,983
$89,238
$22,539
10 to 30 years
0 to 28 years
$695,901
$121,928
$37,212
$17,495
$141,645
7 to 30 years
0 to 10 years
$157,686
$53,749
$18,995
$25,400
$47,344
3 to 42 years
8 to 23 years
$27,439
$5,080
$1,663
3 to 42 years
0 to 23 years
$38,926
$11,388
$2,973
$2,550
$11,811
3 to 42 years
0 to 30 years
$57,831
$14,251
$3,901
$6,503
$11,649
8 to 40 years
0 to 28 years
$328,665
$69,205
$16,608
$1,540
$84,273
8 to 40 years
0 to 29 years
$316,765
$73,984
$18,746
$3,100
8 to 40 years
1 to 30 years
$441,857
$85,463
$22,097
$111,777
$6,743
$89,630
$107,560
December 8, 2010
1068105PIERPOIN11
COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT
TABLE CM-4 below details the allocation of the $444,318 Beginning Balance, as reported by the Association and the
$741,865 of Replacement Reserve Funding calculated by the Cash Flow Method in 2011 to 2013, to the 202
Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by
Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF-1.
The accuracy of the allocations is dependent upon many factors including the following critical financial data:
Total Replacement Reserve funding (including the Beginning Balance) of $1,186,183 in 2011 to 2013.
All Projected Replacements scheduled in the Replacement Reserve Inventory in 2011 to 2013 being
accomplished as scheduled in the Replacement Reserve Inventory at a cost of $199,751.
If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson
Associates, Inc., to arrange for an update of the Replacement Reserve Study.
COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM-4
Item
#
Description of
Projected
Replacement
Estimated
Replacement
Costs
Allocation
of Beginning
Balance
7,464
52,247
4,699
4,699
4,699
8,766
8,766
8,766
404
404
404
404
404
404
404
404
404
404
1,200
1,200
1,361
9,525
1,428
857
286
2,663
1,598
533
130
115
101
86
71
56
42
27
12
2,520
560
4,000
4,600
750
1,200
20,250
83,700
42,600
207,320
14,000
330,000
35,000
345
153
547
943
103
438
5,907
21,362
12,426
15,118
4,400
3,780
3,010
3,600
2,700
4,750
413
2011
2011
Reserve
Projected
2011
End of Year
Balance
2012
2012
Reserve
Projected
2012
End of Year
Balance
2013
2013
Reserve
Projected
2013
End of Year
Balance
SITE COMPONENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Concrete curb (20%)
Concrete curb (20%)
Concrete curb (20%)
175
2,034
4,747
363
142
98
678
265
183
39
22
16
13
11
9
8
8
7
7
171
57
3,395
14,271
1,791
999
384
3,341
1,864
716
169
138
117
99
82
66
50
35
19
7
346
57
2,034
4,747
363
142
98
678
265
183
39
22
16
13
11
9
8
8
7
7
171
57
5,429
19,018
2,155
1,141
482
4,020
2,129
899
208
160
133
111
93
75
59
42
27
13
517
114
2,034
4,747
363
142
98
678
265
183
39
22
16
13
11
9
8
8
7
7
171
57
145
136
691
522
129
762
7,172
5,195
15,087
6,006
2,800
17,147
2,872
490
289
1,238
1,466
232
635
424
1,928
1,988
362
300
13,078
26,557
27,513
21,124
2,800
55,649
6,275
145
136
691
522
129
300
7,172
5,195
15,087
6,006
2,800
17,147
2,872
27,130
5,600
72,796
9,148
145
136
691
522
129
300
2,025
5,195
4,260
6,006
2,800
17,147
2,872
566
344
274
327
245
721
153
344
274
327
245
201
719
687
547
655
491
922
153
344
274
327
245
201
(7,464)
23,765
2,518
1,284
580
4,698
2,394
1,082
247
182
149
124
103
85
67
50
34
20
688
171
21
22
23
24
25
26
27
28
29
30
31
32
33
Light pole, site
Gate barrier
Keypad entry system
38,502
3,403
(1,200)
(20,250)
31,752
(42,600)
780
(560)
2,619
2,511
491
600
2,025
36,946
4,260
33,137
8,400
89,943
12,020
34
35
36
37
38
39
3" water meter
Sanitary main (10%)
520
153
344
274
327
245
201
873
1,031
821
982
736
1,124
December 8, 2010
1068105PIERPOIN11
COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM-4 cont'd
Item
#
40
41
Description of
Projected
Replacement
Estimated
Replacement
Costs
Allocation
of Beginning
Balance
2011
2011
Reserve
Projected
2011
End of Year
Balance
2012
2012
Reserve
Projected
2012
End of Year
Balance
2013
2013
Reserve
Projected
2013
End of Year
Balance
4,100
1,609
448
174
77
622
77
174
77
796
153
174
77
970
230
70,042
14,000
4,199
3,900
18,000
15,600
3,500
5,621
1,440
1,200
19,451
4,000
5,585
64,900
92,880
1,636
20,655
531
531
16,000
4,800
3,310
3,660
1,900
16,174
2,297
459
427
2,953
1,706
1,276
922
158
131
3,191
656
2,036
14,198
10,159
358
2,259
116
58
4,897
1,064
178
165
1,368
662
2,224
427
61
51
1,478
304
3,549
8,450
3,939
213
876
69
23
516
204
2,103
199
270
21,071
3,361
637
592
4,321
2,368
679
548
4,897
1,064
178
165
1,368
662
350
427
61
51
1,478
304
186
8,450
3,939
213
876
69
23
516
204
221
199
270
25,968
4,425
815
757
5,689
3,030
350
1,777
280
233
6,148
1,264
186
31,098
18,037
784
4,011
255
103
1,032
932
221
878
818
4,897
1,064
178
165
1,368
662
350
427
61
51
1,478
304
186
8,450
3,939
213
876
69
23
516
204
221
199
270
30,865
5,489
994
923
7,057
3,691
700
2,204
341
284
7,626
1,568
372
39,549
21,976
997
4,887
324
126
1,548
1,136
441
1,077
1,089
56,983
14,000
4,199
3,600
18,000
15,600
3,500
5,621
1,440
1,200
19,451
4,000
5,585
64,900
92,880
1,636
20,655
531
531
16,000
4,800
3,310
3,660
1,900
9,003
2,042
408
350
2,625
1,517
1,021
820
140
117
2,837
583
1,900
12,620
9,030
318
2,008
103
52
11,825
3,038
581
498
3,906
2,157
2,260
1,220
199
166
4,221
868
3,743
20,089
12,842
506
2,856
164
73
516
664
2,178
617
450
2,822
997
172
148
1,281
640
1,240
400
59
49
1,385
285
1,842
7,469
3,811
188
848
61
22
516
197
1,132
190
242
14,648
4,035
753
645
5,188
2,797
467
1,046
427
208
2,822
997
172
148
1,281
640
1,240
400
59
49
1,385
285
1,842
7,469
3,811
188
848
61
22
516
197
1,132
190
242
807
691
2,822
997
172
148
1,281
640
350
400
59
49
1,385
285
186
7,469
3,811
188
848
61
22
516
197
221
190
242
17,470
5,031
925
793
6,469
3,437
350
2,020
317
264
6,990
1,438
186
35,026
20,464
883
4,551
287
117
1,548
1,058
221
998
933
2,680
588
493
3,318
1,327
893
811
245
204
4,085
1,123
2,420
13,508
9,666
297
1,872
9,586
1,409
275
231
1,745
621
869
426
115
95
2,148
591
1,652
8,235
4,520
181
875
9,586
4,089
863
724
5,063
1,948
1,762
1,237
360
300
6,233
1,714
4,072
21,743
14,185
477
2,747
9,586
1,409
275
231
1,745
621
869
426
115
95
2,148
591
1,652
8,235
4,520
181
875
19,172
5,498
1,138
955
6,807
2,568
2,631
1,663
474
395
8,381
2,304
5,723
29,978
18,705
658
3,622
9,586
1,409
275
231
1,745
621
869
426
115
95
2,148
591
1,652
8,235
4,520
181
875
28,759
6,908
1,413
1,186
8,552
3,189
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
PVC Fascia Trim
Balcony decking
Garage doors
Exterior doors
525
1,207
480
277
(3,500)
1,349
219
182
4,670
960
(5,585)
22,648
14,098
571
3,135
185
81
516
729
(3,310)
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
PVC Fascia
Balcony decking
Garage doors
Exterior doors
(3,500)
1,620
258
215
5,606
1,153
(5,585)
27,557
16,653
695
3,703
226
95
1,032
861
(3,310)
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
PVC Fascia
Balcony decking
287,587
21,000
6,911
5,800
26,000
15,600
3,500
6,353
2,880
2,400
32,012
8,800
7,375
79,389
113,616
1,743
22,003
(3,500)
2,090
589
491
10,530
2,895
(7,375)
38,213
23,224
839
4,498
December 8, 2010
1068105PIERPOIN11
Item
#
Description of
Projected
Replacement
107
108
109
110
111
112
113
Garage doors
Exterior doors
Estimated
Replacement
Costs
Allocation
of Beginning
Balance
797
797
24,000
9,600
6,620
7,320
3,800
136
68
2011
2011
Reserve
Projected
2011
End of Year
Balance
2012
2012
Reserve
Projected
2012
End of Year
Balance
2013
2013
Reserve
Projected
817
1,931
747
277
83
32
774
382
1,563
365
440
218
99
774
1,199
3,494
1,112
717
83
32
774
382
1,563
365
440
301
131
1,548
1,580
5,057
1,478
1,158
83
32
774
382
1,563
365
440
16,215
16,215
24,323
9,603
9,603
16,326
2,700
1,900
17,700
17,700
25,400
3,153
2,759
4,138
1,576
1,401
2,083
703
247
6,453
5,163
6,483
1,866
1,682
2,523
730
684
1,096
998
184
11,247
6,269
6,306
5,019
4,441
6,662
2,305
2,084
3,179
1,702
431
6,885
6,123
9,185
3,035
2,768
4,274
11,431
12,788
1,866
1,682
2,523
730
684
1,096
998
184
1,770
6,269
6,306
19,094
1,866
1,682
2,523
730
684
1,096
386
184
1,770
1,770
6,306
5,100
14,199
6,500
1,640
1,488
1,553
1,066
154
1,806
602
494
57
3,294
2,155
1,560
211
1,806
602
494
57
2,757
2,054
268
510
602
494
57
5,532
2,550
14,199
6,500
1,640
8,505
538
651
1,381
1,066
154
1,654
227
633
583
494
57
979
765
1,284
1,963
1,560
211
2,633
227
633
583
494
57
979
992
1,917
2,546
2,054
268
3,611
227
633
583
494
57
979
23,470
6,503
14,199
6,500
2,624
4,536
1,497
1,660
1,208
1,066
246
772
666
1,614
565
494
91
471
2,163
3,274
1,773
1,560
337
1,242
666
1,614
565
494
91
471
2,829
4,888
2,338
2,054
429
1,713
666
1,614
565
494
91
471
7,900
29,500
14,800
2,600
1,450
176,000
1,600
3,900
4,300
7,700
3,300
1,985
1,250
2,980
1,540
1,680
2,000
1,200
3,120
2,160
39,000
3,600
3,100
12,000
1,728
6,453
1,619
427
238
14,438
131
427
470
842
361
326
205
407
421
1,029
3,841
628
198
110
5,212
47
165
182
327
140
151
95
172
373
105
345
136
406
281
1,654
153
1,060
652
2,757
10,295
2,246
624
348
19,650
179
592
653
1,169
501
477
300
579
794
105
619
382
1,089
754
5,920
546
2,040
2,227
1,029
3,841
628
198
110
5,212
47
165
182
327
140
151
95
172
373
105
345
136
406
281
1,654
153
1,060
652
3,785
14,136
2,874
822
458
24,862
226
757
835
1,495
641
627
395
750
1,167
210
964
519
1,495
1,035
7,574
699
1,029
3,841
628
198
110
5,212
47
165
182
327
140
151
95
172
373
105
345
136
406
281
1,654
153
207
652
2013
End of Year
Balance
384
163
2,323
1,962
(6,620)
1,843
1,598
BUILDING EXTERIOR (Miscellaneo
114
115
116
117
118
119
120
121
122
123
124
(17,700)
(2,700)
615
1,770
(17,700)
8,751
7,805
11,708
3,765
3,451
5,370
386
798
3,540
1,770
(25,400)
125
126
127
128
(5,100)
510
3,360
2,548
325
129
130
131
132
133
134
1,219
(2,550)
3,128
2,548
325
4,590
135
136
137
138
139
140
3,495
(6,503)
2,902
2,548
520
2,183
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
Pump controller
Pressure tanks
Heat pump, 2.5 ton
Air handler
Backup generator
Switchgear
273
246
683
473
4,266
394
980
1,575
(3,100)
2,878
4,814
17,977
3,502
1,019
568
30,073
273
923
1,017
1,822
781
778
490
922
(1,540)
315
1,309
655
1,901
1,316
9,228
852
207
3,530
December 8, 2010
1068105PIERPOIN11
Item
#
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
Description of
Projected
Replacement
Pump controllers
Pressure tanks
Backflow preventer
Heat pump, 2.5 ton
Air handler
Estimated
Replacement
Costs
Allocation
of Beginning
Balance
7,900
60,200
30,100
2,600
1,450
176,000
1,600
3,900
1,985
1,250
2,980
1,540
1,680
2,000
1,200
3,120
2,160
3,100
12,000
1,536
11,706
4,390
379
211
12,834
117
379
289
182
362
374
7,900
60,200
30,100
2,600
1,450
281,600
3,200
3,900
1,985
1,250
5,960
3,080
2,520
3,100
1,850
4,992
4,320
5,250
16,600
1,344
10,243
3,841
332
185
17,967
204
332
253
160
634
655
182
219
607
420
904
1,400
2011
2011
Reserve
Projected
2011
End of Year
Balance
2012
2012
Reserve
Projected
2012
End of Year
Balance
2013
2013
Reserve
Projected
909
6,928
2,143
185
103
5,099
46
160
141
89
164
291
99
303
123
359
249
732
624
2,445
18,634
6,532
564
315
17,933
163
539
431
271
526
666
99
485
341
966
669
1,636
2,024
909
6,928
2,143
185
103
5,099
46
160
141
89
164
291
99
303
123
359
249
732
624
3,354
25,561
8,675
749
418
23,032
209
699
572
360
689
957
198
788
464
1,325
917
2,368
2,647
909
6,928
2,143
185
103
5,099
46
160
141
89
164
291
99
303
123
359
249
732
624
819
6,245
2,020
174
97
7,989
91
155
133
84
313
485
140
423
173
518
448
962
828
2,164
16,487
5,861
506
282
25,956
295
487
387
243
947
1,140
140
564
468
1,367
1,183
2,365
2,523
819
6,245
2,020
174
97
7,989
91
155
133
84
313
485
140
423
173
518
448
962
828
2,983
22,732
7,881
681
380
33,945
386
642
520
327
1,260
1,625
280
987
641
1,885
1,631
3,327
3,351
819
6,245
2,020
174
97
7,989
91
155
133
84
313
485
140
423
173
518
448
962
828
2013
End of Year
Balance
4,264
32,489
10,817
934
521
28,131
256
859
713
449
853
1,249
296
1,091
587
1,684
1,166
(3,100)
3,271
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
Pump controllers
Pressure tanks
Backflow preventer
Heat pump, 2.5 ton
Air handler
141
295
849
735
1,404
1,695
3,803
28,977
9,901
855
477
41,934
477
797
653
411
1,574
2,110
420
1,409
813
2,403
2,079
4,288
4,179
Attachments - Page E1
Appendix
1.
COMMON INTEREST DEVELOPMENTS - AN OVERVIEW
Over the past 40 years, the responsibility for community facilities and infrastructure around many of our homes has shifted from
the local government to Community Associations. Thirty years ago, a typical new town house abutted a public street on the front
and a public alley on the rear. Open space was provided by a nearby public park and recreational facilities were purchased ala
carte from privately owned country clubs, swim clubs, tennis clubs, and gymnasiums. Today, 60% of all new residential
construction, i.e. townhouses, single family homes, condominiums, and cooperatives, is in Common Interest Developments
(CID). In a CID, a home owner is bound to a Community Association that owns, maintains, and is responsible for periodic
replacements of various components that may include the roads, curbs, sidewalks, playgrounds, street lights, recreational
facilities, and other community facilities and infrastructure.
The growth of Community Associations has been explosive. In 1965 there were only 500 Community Associations in the United
States. According to the U.S. Census, there were 130,000 Community Associations in 1990. Community Associations Institute
(CAI), a national trade association, estimates there were more than 200,000 Community Associations in the year 2000, and that
the number of Community Associations will continue to multiply.
The shift of responsibility for billions of dollars of community facilities and infrastructure from the local government and private
sector to Community Associations has generated new and unanticipated problems. Although Community Associations have
succeeded in solving many short term problems, many Associations have failed to properly plan for the tremendous expenses of
replacing community facilities and infrastructure components. When inadequate replacement reserve funding results in less than
timely replacements of failing components, home owners are exposed to the burden of special assessments, major increases in
Association fees, and a decline in property values.
2.
REPLACEMENT RESERVE STUDY
The purpose of a Replacement Reserve Study is to provide the Association with an inventory of the common community facilities
and infrastructure components that require periodic replacement, a general view of the condition of these components, and an
effective financial plan to fund projected periodic replacements. The Replacement Reserve Study consists of the following:
•
Replacement Reserve Study Introduction. The introduction provides a description of the property, reviews the
intent of the Replacement Reserve Study, and lists documents and site evaluations upon which the Replacement
Reserve Study is based.
•
Section A Replacement Reserve Analysis. Many components owned by the Association have a limited life and
require periodic replacement. Therefore it is essential the Association have a financial plan that provides funding
for the timely replacement of these components in order to protect the safety, appearance, and value of the
community. In conformance with American Institute of Certified Public Accountant guidelines, Section A
Replacement Reserve Analysis evaluates the current funding of Replacement Reserves as reported by the
Association and recommends annual funding of Replacement Reserves by two generally accepted accounting
methods; the Cash Flow Method and the Component Method. Section A Replacement Reserve Analysis includes
graphic and tabular presentations of these methods and current Association funding.
•
Section B Replacement Reserve Inventory. The Replacement Reserve Inventory lists the commonly-owned
components within the community that require periodic replacement using funding from Replacement Reserves.
The Replacement Reserve Inventory also provides information about components excluded from the Replacement
Reserve Inventory whose replacement is not scheduled for funding from Replacement Reserves.
Replacement Reserve Inventory includes estimates of the normal economic life and the remaining economic life
for those components whose replacement is scheduled for funding from Replacement Reserves.
•
Section C Projected Annual Replacements. The Calendar of Projected Annual Replacements provides a year-byyear listing of the Projected Replacements based on the data in the Replacement Reserve Inventory.
•
Section D Condition Assessment. Several of the items listed in the Replacement Reserve Inventory are discussed
in more detail. The Condition Assessment includes a narrative and photographs that document conditions at the
property observed during our visual evaluation.
•
Section E Attachments. The Appendix is provided as an attachment to the Replacement Reserve Study.
Additional attachments may include supplemental photographs to document conditions at the property and
additional information specific to the property cited in the Conditions Assessment (i.e. Consumer Product Safety
Commission, Handbook for Public Playground Safety, information on segmental retaining walls, manufacturer
recommendations for asphalt shingles or siding, etc).
Appendix
3.
METHODS OF ANALYSIS
The Replacement Reserve industry generally recognizes two different methods of accounting for Replacement Reserve Analysis.
Due to the difference in accounting methodologies, these methods lead to different calculated values for the Minimum Annual
Contribution to the Reserves. The results of both methods are presented in this report. The Association should obtain the advice
of its accounting professional as to which method is more appropriate for the Association. The two methods are:
•
Component Method. This method is a time tested mathematical model developed by HUD in the early 1980s. It
treats each item in the replacement schedule as an individual line item budget. Generally, the Minimum Annual
Contribution to Reserves is higher when calculated by the Component Method. The mathematical model for this
method works as follows:
First, the total Current Objective is calculated, which is the reserve amount that would have accumulated had all of
the items on the schedule been funded from initial construction at their current replacement costs. Next, the
Reserves Currently on Deposit (as reported by the Association) are distributed to the components in the schedule
in proportion to the Current Objective. The Minimum Annual Deposit for each component is equal to the Estimated
Replacement Cost, minus the Reserves on Hand, divided by the years of life remaining.
•
Cash Flow Method. The Cash Flow Method is sometimes referred to as the "Pooling Method." It calculates the
minimum constant annual contribution to reserves (Minimum Annual Deposit) required to meet projected
expenditures without allowing total reserves on hand to fall below the specified minimum level in any year. This
method usually results in a calculated requirement for annual contribution somewhat less than that arrived at by
the Component Method of analysis.
First, the Minimum Recommended Reserve Level to be Held on Account is determined based on the age,
condition, and replacement cost of the individual components. The mathematical model then allocates the
estimated replacement costs to the future years in which they are projected to occur. Based on these
expenditures, it then calculates the minimum constant yearly contribution (Minimum Annual Deposit) to the
reserves necessary to keep the reserve balance at the end of each year above the Minimum Recommended
Reserve Level to be Held on Account. The Cash Flow Analysis assumes that the Association will have authority to
use all of the reserves on hand for replacements as the need occurs. This method usually results in a Minimum
Annual Deposit which is less than that arrived at by the Component Method.
•
4.
Adjusted Cash Flow Analysis. This program has the ability to modify the Cash Flow Method to take into account
forecasted inflation and interest rates, thereby producing an Adjusted Cash Flow Analysis. Attempting to forecast
future inflation and interest rates and the impact of changing technology is highly tenuous. Therefore, in most
cases it is preferable to make a new schedule periodically rather than attempt to project far into the future. We will
provide more information on this type of analysis upon request.
REPLACEMENT RESERVE STUDY DATA
•
Identification of Reserve Components. The Reserve Analyst has only two methods of identifying Reserve
Components; 1) information provided by the Association and 2) observations made at the site. It is important that
the Reserve Analyst be provided with all available information detailing the components owned by the Association.
It is our policy to request such information prior to bidding on a project and to meet with the individuals responsible
for maintaining the community after acceptance of our proposal. After completion of the Study, the Study should
be reviewed by the Board of Directors, individuals responsible for maintaining the community, and the
Association’s accounting professionals. We are dependent upon the Association for correct information,
documentation, and drawings.
•
Unit Costs. Unit costs are developed using nationally published standards and estimating guides and are adjusted
by state or region. In some instances, recent data received in the course of our work is used to modify these
figures.
Contractor proposals or actual cost experience may be available as part of the Association records. This is useful
information which should be incorporated into your report. Please bring any such available data to our attention,
preferably before the report is commenced.
•
Replacement vs. Repair and Maintenance. A Replacement Reserve Study addresses the required funding for
Capital Replacement Expenditures. This should not be confused with operational costs or cost of repairs or
maintenance.
Appendix
5.
DEFINITIONS
Adjusted Cash Flow Analysis. Cash flow analysis adjusted to take into account annual cost increases due to inflation and
interest earned on invested reserves. In this method, the annual contribution is assumed to grow annually at the inflation rate.
Annual Deposit if Reserves Were Fully Funded. Shown on the Summary Sheet A1 in the Component Method summary, this
would be the amount of the Annual Deposit needed if the Reserves Currently on Deposit were equal to the Total Current
Objective.
Cash Flow Analysis. See Cash Flow Method, above.
Component Analysis. See Component Method, above.
Contingency. An allowance for unexpected requirements. Roughly the same as the Minimum Recommended Reserve Level to
be Held on Account used in the Cash Flow Method of analysis.
Critical Year. In the Cash Flow Method, a year in which the reserves on hand are projected to fall to the established minimum
level. See Minimum Recommended Reserve Level to be Held on Account.
Current Objective. This is the reserve amount that would have accumulated had the item been funded from initial construction at
its current replacement cost. It is equal to the estimated replacement cost divided by the estimated economic life, times the
number of years expended (the difference between the Estimated Economic Life and the Estimated Life Left). The Total Current
Objective can be thought of as the amount of reserves the Association should now have on hand based on the sum of all of the
Current Objectives.
Cyclic Replacement Item. A component item that typically begins to fail after an initial period (Estimated Initial Replacement), but
which will be replaced in increments over a number of years (the Estimated Replacement Cycle). The Reserve Analysis program
divides the number of years in the Estimated Replacement Cycle into five equal increments. It then allocates the Estimated
Replacement Cost equally over those five increments. (As distinguished from Normal Replacement Items, see below)
Estimated Economic Life. Used in the Normal Replacement Schedules. This represents the industry average number of years
that a new item should be expected to last until it has to be replaced. This figure is sometimes modified by climate, region, or
original construction conditions.
Estimated Economic Life Left. Used in the Normal Replacement Schedules. Number of years until the item is expected to need
replacement. Normally, this number would be considered to be the difference between the Estimated Economic Life and the age
of the item. However, this number must be modified to reflect maintenance practice, climate, original construction and quality, or
other conditions. For the purpose of this report, this number is determined by the Reserve Analyst based on the present condition
of the item relative to the actual age.
Estimated Initial Replacement. For a Cyclic Replacement Item (see above), the number of years until the replacement cycle is
expected to begin.
Estimated Replacement Cycle. For a Cyclic Replacement Item, the number of years over which the remainder of the
component's replacement occurs.
Minimum Annual Deposit. Shown on the Summary Sheet A1. The calculated requirement for annual contribution to reserves as
calculated by the Cash Flow Method (see above).
Minimum Deposit in the Study Year. Shown on the Summary Sheet A1. The calculated requirement for contribution to reserves
in the study year as calculated by the Component Method (see above).
Minimum Recommended Reserve Level to be Held on Account. Shown on the Summary Sheet A1, this number is used in the
Cash Flow Method only. This is the prescribed level below which the reserves will not be allowed to fall in any year. This amount
is determined based on the age, condition, and replacement cost of the individual components. This number is normally given as
a percentage of the total Estimated Replacement Cost of all reserve components.
Normal Replacement Item. A component of the property that, after an expected economic life, is replaced in its entirety. (As
distinguished from Cyclic Replacement Items, see above.)
Normal Replacement Schedules. The list of Normal Replacement Items by category or location. These items appear on pages
designated.
Number of Years of the Study. The number of years into the future for which expenditures are projected and reserve levels
calculated. This number should be large enough to include the projected replacement of every item on the schedule, at least
once. This study covers a 40-year period.
Appendix
One Time Deposit Required to Fully Fund Reserves. Shown on the Summary Sheet A1 in the Component Method summary, this
is the difference between the Total Current Objective and the Reserves Currently on Deposit.
Reserves Currently on Deposit. Shown on the Summary Sheet A1, this is the amount of accumulated reserves as reported by
the Association in the current year.
Reserves on Hand. Shown in the Cyclic Replacement and Normal Replacement Schedules, this is the amount of reserves
allocated to each component item in the Cyclic or Normal Replacement schedules. This figure is based on the ratio of Reserves
Currently on Deposit divided by the total Current Objective.
Replacement Reserve Study. An analysis of all of the components of the common property of the Association for which a need
for replacement should be anticipated within the economic life of the property as a whole. The analysis involves estimation for
each component of its estimated Replacement Cost, Estimated Economic Life, and Estimated Life Left. The objective of the
study is to calculate a recommended annual contribution to the Association's Replacement Reserve Fund.
Total Replacement Cost. Shown on the Summary Sheet A1, this is total of the Estimated Replacement Costs for all items on the
schedule if they were to be replaced once.
Unit Replacement Cost. Estimated replacement cost for a single unit of a given item on the schedule.
Unit (of Measure). Non-standard abbreviations are defined on the page of the Replacement Reserve Inventory where the item
appears. The following standard abbreviations are used in this report:
EA: each
6.
FT: feet
LS: lump sum
PR: pair
SF: square feet
SY: square yard
LIST OF RECOMMENDED REPAIRS - PROCEDURES
A List of Recommended Repairs is offered as a supplemental report to the Replacement Reserve Study (at an additional fee) to
assist the Association in understanding the financial implications of all items owned by the Association, not just the items
included for funding by Replacement Reserves listed in the Replacement Reserve Inventory. The following information relates to
the List of Recommended Repairs:
•
Repair costs. Cost range estimates given in the repair list assume that all work by a given trade will be done
together as a single project. If repairs are done piece-meal, the costs would be significantly higher. The costs of
any repairs to be funded out of the Reserve Fund should be subtracted from the Reserves Currently on Deposit
figure. The Board or Property Manager should coordinate this decision with the Reserve Analyst as part of the
revision process.
•
Completion of repairs. The Replacement Reserve Analysis assumes that all repairs cited in the Repair List will be
completed within a twelve-month period of time. Estimated Life Left in the Replacement Reserve Study has been
factored under this assumption. Any deletions or delays of the projects included in the List of Recommended
Repairs may result in major inaccuracies in the Replacement Reserve Analysis.
•
Safety issues. If safety issues have been cited, they should be given the highest priority and should be done
immediately upon receipt of this report. The Board must recognize that from a liability standpoint, they have been
made aware of the existence of these unsafe conditions, if any, once the report is delivered for their review.
•
Unit costs. Nationally published standards and standard estimating manuals have been used in the development
of this report. Contractor proposals or actual cost experience may be available as part of the Association records.
We will adjust our figures to conform to your experience if the material or information is disclosed to us and/or
made available for our use.

Page 1 Page 2 SPECIAL N OTICE Pursuant to Section 55

Transcription

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