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RepUcEMENT RESTNVE REPORT FY 2017

PnesroN AT Pnnx Wesr

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Cornmunity Management by:

Golo CnowN Mlr.tlern erur, lruc.


Ms. Beverly Harne

2850 Ashley Phosphate Road, Suite B


North Charleston, South Carolina 29418
843.7il.4A27
beverly.ha rne@gold-crown.com
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Consultant:
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tJ) 929 West Street, Suite 310
(3 Annapolis, MD 21401
410.268.0479
'-:r' 800.850.283s

www.mdareserves.com
Section A

ReplecEMENT Resenve RePonr Replacement Reserve AnalYsis

Executive Summary - Al
PRrsroN AT Pnnx Wrsr Geileral lnformation - A2
Cunent Funding - A3
Cash Flow Method Funding - 44
MouNr PtrASRNt, SourH CnRoltln lnflation Adjusted Funding - A5
Comments - A6

Section B

Replacement Reserve lnventory

Replacement Reserve lnventory


General information - 81
Replacement Reserve lnventory
Comments - 82
Schedule of Projected Replacements
and Exclusions - 83

Section C

Projected Annual Replacements

Projected Annual Replacements


General lnformation - C1
Calendar of
Description. Preston at Park West is a condominium association Projecled Annual Replacements - C2
located in Mount Pleasant, South Carolina. Constructed beginning
around 2008 and completed around 2013, the community consists of 20
buildings containing 100 units. The buildings are of two types and have
combinations of from three to six units in each. The survey examined
the common elements of the property, including:

. Concrete driveways, sidewalks, and lead walks. Section D


. Retaining walls, privacy fencing, signage, and entry monument.
. Building exteriors including roofing and siding. Condition Assessment
Level of Service. This study has been performed as a Level 1 Full
Service Reserve Study as defined under the National Reserve Study
Standards that have been adopted by the Community Associations
lnstitute. As such, a complete inventory of components was established
for the commonly owned elements of this facility based on information
provided by the Community Manager or by quantities that were
developed from field measurement or takeoffs from to-scale drawings as Appendix
performed by the Analyst. The condition of each inventory component
was established by the Analyst, based on a visual inspection or review of Accounting Summary - CF1
provided historical data with a major repair or replacement cost for each Component Method - CM'l
also set. The included fund status and funding plan have been derived Overview, Standard Terms, and Definitions
from analysis of this inventory.
Video Answers to Frequently Asked Questions
To aid in the understanding of this report and its concepts and practices, on our web site, we have
developed videos addressing frequently asked topics. ln addition, there are posted links covering a
variety of subjects under the resources page of our web site at mdareserves.com.

Purpose. The purpose of this Replacement Reserve Study is to provide Preston at Park West
(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.

r lnventory of ltems Owned by the Association. Section B lists the Projected Replacements of the
commonly owned items that require periodic replacement using funding from Replacement Reserves.
The Replacement Reserve lnventory also provides information about excluded items, which are items
whose replacements are not scheduled for funding from Replacement Reserves.

. Condition of ltems Owned by the Association. Section B includes our estimates of the normal
economic life and the remaining economic life for the projected replacements. Section C provides a
year-by-year listing of the projected replacements. Section D 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.

r Financial PIan. The Association has a fiduciary responsibility to protect the appearance, value, and
safety of the propedy and it is therefore essential the Association have a financial plan that provides
funding for the projected replacements. ln conformance with American lnstitute 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 the Cash Flow Method. Section A, Replacement Reserve Analysis
includes graphic and tabular presentations of the Association's current funding and the recommended
funding based on the Cash Flow Method. An Executive Summary of these calculations is provided
on Page ,A1. The alternative Component Method of funding is provided in the Appendix.

Basis. The data contained in this Replacement Reserve Study is based upon the following:

r The Request for Proposal submitted and executed by the Association.

r Miller- Dodson performed a visual evaluation on May 24,2016 to determine a remaining useful life
and replacement cost for the commonly owned elements of this facility.

. This study contains additional recommendations to address inflation for the Cash Flow Method only.
For this recommendation, Miller - Dodson uses the Producers Price lndex (PPl), which gauges
inflation in manufacturing and construction. Please see page A5 for further details.

To-Scale Drawings. Site and building plans were not used in the development of this study. We
recommend the Association assemble and maintain a library of site and buildlng plans of the entire
facility. Record drawings should be scanned into an electronic format for safe storage and ease of
distribution. Upon request for a nominal fee, Miller - Dodson can provide scanning services.

Current Funding. This reserve study has been prepared for Fiscal Year 2017 covering the period from
January 1 , 2017 to December 31 , 201 7. The Replacement Reserves on deposlt as of January 1 , 2017
are projected to be $294,907.00. The planned contribution for the fiscal year is 953,000.00. The balance
and contribution figures have been supplied by the managing 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
the Community Manager, Ms. Beverly Harne who provided very helpful insight into the current operations
of the property.
Analyst's Gredentials. Mr. Gary D. Freeman, AlA, CCS, NCARB holds a Bachelor's Degree in
Architeeture from Mississippi State University. Mr. Freeman is a registered Architect in the states of
South Carolina and Mississippi. He has over 30 years of experience as a practicing architect with a
strong focus in the last 15 years in the area of forensics in buildings and assessments. He is President of
Gary Freeman Architect lnc. and a reserve specialist for Miller - Dodson Associates.

Respectfully submitted,

millerdod^:"pn i l**" (oaulbo'!


I

Gary D. Freeman, AlA, CCS, NCARB RS


Reserve Specialist
Mitler + Dodson Associates, lnc. Replacement Reserve Analysis 'Page Al
Preston at Park West May 24,2816
161 56802PRESTON 1 7

EXECUTIVE SUMMARY
The Preston at Park West Replacement Reserve Analysis uses the Cash Flow Method (CFM) to
calculate Replacement Reserve funding for the periodic replacement of the 54 Projected Replacements
identified in the Replacement Reserve lnventory.

$85,721 |
RECOMMENDED REPLACEMENT RESERVE FUNDING FOR THE STUDY YEAR, 2017
571.43 Per unit (average), minimum monthly funding of Replacement Reserves

We recommend the Association adopt a Replacement Reserve Funding Plan based on the annual funding
recommendation above. lnflation adjusted funding for subsequent years is shown on Page A5.
Preston at Park West reports a Starting Balance of $294,907 and Annual Funding totaling $53,000.
Current funding is inadequate to fund the $3,632,763 of Projected Replacements scheduled in the Replacement
Reserve lnventory over the 4}-year Study Period. See Page A3 for a more detailed evaluation.

Reserve Funding and

Cash Flil Method - Cumdauve Reipts Prcjeded Replacaffits - Cumdative 3,723,763


i} Expslditres
Curent FundirE - Cumulaivo Reipts
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2,414,907

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The Current Funding Objective as calculated by the Component Method (Fully Funded) is $256,679 making the reserve
account 114.9o/o funded. see the Appendix for more information on this method.
Miller + Dodson Associates, lnc. EqpEc"ment Re"ew" Analys
Preston at Park W€st May 24,2O16
151 56802PRESTON1 7

REPLACEMENT RESERVE ANALYSIS - GENERAL INFORMATION


The Preston at Park West Replacement Reserve Analysis calculations of recommended funding of
Replacement Reserves by the Cash Flow Method and the evaluation of the Current Funding are based upon the
same Study Year, Study Period, Beginning Balance, Replacement Reserve lnventory and Level of Service.

20',t7 |
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 1,2A17 .

4o Years I SrUOy PER]OD


The Replacement Reserve Analysis evaluates the funding of Replacement Reserves over a 40-year Study Period.
STARTING BALANCE
The Association reports Replacement Reserves on Deposit totaling $294,907 at the start of the Study Year.
Levet one I t-Evel oF sERVlcE
The Replacement Reserve lnventory has been developed in compliance with the National Reserve Study
Standards for a Level One Study, as defined by the Community Associations lnstitute (CAl).
$3.632,763 I REPIACEMENT RESERVE INVENTORY - PROJECTED REPLACEMENTS
The Preston at Park West Replacement Reserve Jnventory identifies 54 items that will require periodic
replacement, that are to be funded from Replacement Reserves. We estimate the cost of these replacements will
be $3,632,763 over the 4l-year Study Period. The Projected Replacements are divided into 12 major categories
starting on Page 83. Pages B1-B2 provide detailed informatlon on the Replacement Reserve lnventory.
#2 - Annual Expenditures for Proiected Replacements Graph i
This graph shows annual expendiiures br Projected Replac€ments over the 4Gyear Study Period. The red line shows rhe average annual expenditure
of $90,81 9. Section C provides a year by year Calender ot these expenditures.

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Miller + Dodson Associates, lnc. Rep I ac emqqt Req etry 94ry1ry9;l ! s!S-
MaY 24,28'16
-Preston at Pii[ West 1 61 55802PRESTON 1 7

UPDATING
UPDATING OF THE FUNDING PLAN
comparison
The Association has a responsibility to review the Funding Plan annually. The review should include a
and evaluation of actual reserve funding with recommended levels shown on Page 44 and A5. The Proiected
Replacements listed on Page C2 should be compared with any replacements accomplished and funded from
Replacement Reserves. Discrepancies should be evaluated and if necessary, the Reserve Study should be updated
or a new study commissioned. We recommend annual increases in replacement reserve funding to account for the
impact of inflation. lnflation Adjusted Funding is dlscussed on Page A5.
UPDATING OF THE REPLACEMENT RESERVE STUDY
At a minimum, the Replacement Reserve Study should be professionally updated every three to five years or after
completion of a major replacement project. Updating should also be considered if during the annual review of the
Funding plan, discrepancies are noted between projected and actual reserve funding or replacement costs. Updating
may also be necessary if there is a meaningful discrepancy between the actual inflation rate and the inflation rate
used for the lnflation Adjusted Funding of Replacement Reserves on Page A5.
ANNUAL EXPENDITURES AND CURRENT FUNDING
The annual expenditures that comprise the $3,632,763 of Projected Expenditures over the 40-year Study Period and
the impact of the Association continuing to fund Replacement Reserves at the current level are detailed in Table 3.

Year
Shting Balance
Proiected Replacdeots
Annual Deposil ss3.000
End of Yea. Belance *71.v2
(8S7.5551
Cumulalive Expenditures
Cumulalive Receipts s771.907
Year
P.ojected Replacements
Annual Oeposit
End of Year Balance
Cumulative Exp€nditures
Cmulative R€ceipts
Year
Projected Replacehents
Annual Deposii
End ot Ycaa Balance
Cumulative Erp€ndi0res
Cmulalive Receipls
Year
Projected Replacemenls
Annual Deposit
End of Year Balance
Cumulative Exp€ndaturcs
Cumulative R&eipts

EVALUATION OF CURRENT FUNDING


The evaluation of Current Funding (Starting Balance of $294,907 & annual funding of $53,000), is done in today's
dollars with no adjustments for inflation or interest earned on Repiacement Reserves. The evaluation assumes
Replacement Reserves will only be used for the 54 Projected Replacements identified in the Replacement Reserve
lnventory and that the Association will continue Annual Funding of $53,000 throughout the 40-year Study Period.
Annual Funding of $53,000 is approximately 62 percent of the $85,721 recommended Annual Funding calculated
by the Cash Flow Method for 2017, the Study Year.
Evaluation of the 54 Projected Replacements calculates an average annual expenditure over the next 40 years
of $90,819. Annual funding of $53,000 is 58 percent of the average annual expenditure.
Our calculations identify funding shortfalls in 4 years of the Study Period with the initial shortfall in 2053. The
largest shortfall, $-1 ,217,856, occurs in 0. All shortfalls can be seen and evaluated in Table 3 above.
ln summary, Current Fundlng as reported by the Association and shown above, does not provide adequate funding for
the $3,632,763 of Projected Replacements scheduled in the Replacement Reserve lnventory overthe Study Period.
Miller + Dodson Associates, lnc. Reserve
Preston at Park West
161 56802PRESTON17

CASH FLOW METHOD FUNDING


$85,721 |
RECOMMENDED REPLACEMENT RESERVE FUNDTNG FOR 2017
571.43 Per unit (average), minimum monthly funding of Replacement Reserves
Recommended Replacement Reserve Funding has been calculated uslng the Cash Flow Method (also called
the Stra'ght Line or Threshold Method). This method calculates a constant annual funding between peaks in
cumulative expenditures, while maintaining a Minimum Balance (threshold) in the Peak Years.
a Peak Years. The First Peak Year occurs in 2056 with Replacement Reserves on Deposit dropping to the
Reserves on Deposit dropping to the Minimum Balance after the completion of $3,632,763 of Projected Replacement
Recommended annual funding of $85,721 remains constant throughout the entire 40-year Study Period.
a Minimum Balance. The calculations assume a Minimum Balance of $91,000 in Replacement Reserves. This
is approx. 12 months of average expenditures based on the $90,8'1 9, 4O-year average annual expenditure
. Cash Flow Method Study Period. Cash Flow Method calculates funding for $3,632,763 of expenditures
over the 4Q-year Study Period. lt does not include funding for any projects beyond 2056 and in 2056, the end of
year balance will always be the Minimum Balance.

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Cagh Flow Method - Cumlalive Receipls
_*
Cash Flow Meihod - Yoar End Balane Cumulative
EExpenditures PeakYear
_o-
s3,723,763

$3,000,000

s1.000,000

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YEr
tl.nhg Bdam
Projeded Replacements
Annual Deposii s85,721
End of Year Balance 51,022,126
Cumulativ€ Erpenditure9 s129,695
Cumulative Receipts s1,r52,121
Year
Proieded Replacements
Annual Deposit s85,721 $85,721 s85,721 s85,721
Ed of Year Balance 31.106278 sl,189.800 $1 268,293 s1.254,533
Cmuldiw Erpenditures
Cmulative Receipts
Yeat
Proiecled Replacemenb
Annual Deposil s85,721 s85,721
End of Year Balance s1,464,01 0 $1,535,281
Cumul*ive Expenditures
Cumulalive Receipts
year
Projected Replacements
Annual Deposit E€5.721 $65,721 ws.721l s8s,72i sas,721 585,721
End of Year Balance s1,691.440 s1,777.162 s1.862.s83i sr,048,604 $r,81 1,361 st,r74,610
Cumulalive ExFnditures (s1,346,55 (s1
Cumulative Rece,pts s3.037.992 s3.123.713
R e p Ia c e m! nt nggglyg 3!g! yl,=e-eq e_&_5_
Miller + Dodson Associates, lnc. May 24,2016
Presion at Park West 161 568B2PRESTON17

INFLATION ADJUSTED FUNDING


for inflation. At
The Cash Flow Method calculations on Page 44 have been done in today's dollars with no adjustment
forecasting is effective at demonstrating the power of compounding,
Miller + Dodson, we belive that long-term inflation
for Replacement Reserves. we have developed this proprietary model to
not at calculating appropriate funding levels
estimate the short-term impact of inflation on Replacement Reserve funding.

$85,7211ZO|Z - cAsH FLOW METHOD RECOMMENDED FUNDING


The 2017 Study Year calculations have been made using current replacement costs
(see Page 82), modified by the Analyst for any proiect specific conditions

$90,035 | ZOtA - INFLATION ADJUSTED FUNDING


A new analysis calculates 2018 funding based on three assumptions;
o Replacement Reserves on Deposit totaling $352,691 on January 1, 2018.
. All 2017 Projected Replacements listed on Page C2 accomplished at a cost to
Replacement Reserves less than $27,938.
. Construction Cost lnflation of 4.50 percent in 2417.
The $90,035 inflation adjusted funding in 2018 is a 5.03 percent Increase over the
non-inflation adjusted 2018 funding of $85,721.

$94,5751 2A19 - INFLATION ADJUSTED FUNDING


A new analysis calculates 2019 funding based on three assumptions;
. Replacement Reserves on Deposit totaling $442,726 on January 1' 2019.
. No Expenditures from Replacement Reserves in 2018.

. Construction Cost lnflation ol 4.5A percent in 2018.


The $94,575 inflation adjusted funding in 2019 is a 10.33 percent increase over the
non-inflation adjusted 2019 funding ol $85,721.

$99,633 | ZOZA - !NFLATION ADJUSTED FUNDING


A new analysis calculates 2020 funding based on three assumptions;
. Replacement Reserves on Deposit totaling $537,300 on January 1,2020.
. No Expenditures from Replacement Reserves in 2019. 2017 2018 2019 2020

. Construction Cost lnflation of 4.50 percent in 2019. fl cash Flow


M€thod
E tnnaton
Adjusled
The $99,633 inflation adjusted funding in 2020 is a 16.23 percent increase over the Fundhg Funding

non-inflation adjusted funding of $85,721.


YEAR FIVE & BEYOND
The inflation adjusted funding calculations outlined above are not intended to be a substitute for periodic evaluation
of common elements by an experienced Reserve Analyst. lndustry Standards, lender requirements, and many state
and local statutes reguire a Replacement Reserve Study be professionally updated every 3 to 5 years.
INFLATION ADJUSTMENT
Prior to approving a budget based upon the 2018, 2019 and 2020 inflation adjusted funding calculations above,
the 4.50 percent base rate of inflation used in our calculations should be compared to rates published by the Bureau
of Labor Statistics. lf there is a significant discrepancy (over 1 percent), contact Miller Dodson + Associates prior to
using the lnflation Adjusted Funding.
INTEREST ON RESERVES
The recommended funding calculations do not account for interest earned on Replacement Reserves.
ln 2017, based on a 1 .00 percent interest rate, we estimate the Association may earn $3,238 on an average balance
of $323,799, $3,977 on an average balance of $397,708 in 2018, and $4,900 on $490,013 in 2019. The
Association may elect to attribute 100 percent of the earned interest to Reserves, resulting in a reduction in the 2017
funding from $85,721 to $82,483 (a 3.78 percent reduction), $90,035 to $86,058 in 2018 (a 4.42 percent
reduction), and $94,575 to $89,674 in 2019 (a 5.18 percent reduction).
Miller + Dodson Assoeiatcs, lnc. Replacement Reserve Analysis - Page A6
Preston at Park West May 24,2A16
161 56802PRESTON17

REPLACEMENT RESERVE STUDY - SUPPLEMENTAL COMMENTS


. Preston at Park West has 100 units, The type of property is a homeowners association.

e The Cash Flow Method calculates the minimum annual funding necessary to prevent Replacement Reserves from
dropping below the Minimum Balance. Failure to fund at least the recommended levels may result in funding not
being available for the Projected Replacements listed in the Replacement Reserve lnventory.
a The accuracy of the Replacement Reserve Analysis is dependent upon expenditures from Replacement Reserves
being made ONLY for the 54 Projected Replacements speciflcally listed in the Replacement Reserve lnventory.
The inclusioniexclusion of items from the Replacement Reserve lnventory is discussed on Page B't
.
Miller + Dodson Associates, lne. ReplacemenlRqq9--1p-lltryllqry-:-lxg-e-B-f
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REPLACEMENT RESERVE INVENTORY
GENERAL INFORMATION
Preston at Park West - Replacement Reserve lnventory identifies 110 items. Two types of items are
identified, Projected Replacements and Excluded ltems:

o PROJECTED REPLACEMENTS. 54 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 $2,817,826. Replacements totaling $3,632,763 are scheduled
in the Replacement Reserve lnventory over the 4}'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.
. EXCLUDED ITEMS. 56 of the items are Excluded ltems, and expenditures for these items are NOT
scheduled for tunding from Replacement Reserves. The accuracy of the calculations made in the Replacement
Reserve Analysis is dependent on expenditures NOT being made for Excluded ltems. The Excluded ltems
are listed in the Replacement Reserve lnventory 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, minor repairs and capital improvements.
Value. ltems with a replacement cost of less that $1,000 and/or a normal economic life of less than 3 years
are typically excluded from funding from Replacement Reserves. This exclusion should reflect Association
policy on the administration of Replacement Reserves. lf the Association has selected an altemative level,
it will be noted in the Replacement Reserue lnventory - General Comments on Page 82.
Long-lived ltems. ltems 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 lnventory.
Unit improvements. ltems 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.
Oiher non-common improvements. ltems 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 lnventory.
The rationale for the exclusion of an item from funding by Replacement Reserves is discussed in more detail in
the'Comments' sections of the Section B - Replacement Reserve lnventory.
I CATEGORIES. The 1'10 items included in the Preston at Park West Replacement Reserve lnventory
are divided into 12 major categories. Each category is printed on a separate page, Pages 83 to 813.
. LEVEL OF SERVICE. This Replacernent Reserve lnventory 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 lnstitute, which states:

A Level I - Full Seruice Reserue Study includes the computation of complete component inventory
infarmation regarding commonly owned components provided by the Association, quantities
deived from field measurements and/or quantity takeoffs from to-seale engineeing drawings that
may be made available. The condition of all componenfs is asceftained from a visual inspection
of each component by the analyst. The remaining economic life and the value of the components
are provided based on these obseruations and the funding slatus and funding plan are then
derived from analysis of this data.
Miller + Dodson Associates, lnc. Reserve lnventory - Page 82
Preston at Park West May 24,2016
1 61 56802PRESTON 1 7

REPLACEMENT RESERVE INVENTORY - GENERAL INFORMATION (cont'd)

. INVENTORY DATA. Each of the 54 Projected Replacements listed in the Replacement Reserve lnventory
includes the following data:
Item Number. The ltem Number is assigned sequentially and is intended for identification purposes only.
Item Description. We have identified each item included in the lnventory. Additional information may be
included in the Comments section at the bottom of each page of the lnventory.
Units. We have used standard abbreviations to identify the number of units including SF-square feet,
LF-lineal feet, SY-squareyard, LS-lump sum, EA-each, and PR-pair. Non-standard abbreviations are
noted in the Comments section at the bottom of the page.
Number of Units. The methods used to develop the quantities are discussed in "Level of Service" above.
Unit Replacement Cost. We use four sources to develop the unit cost data shown in the lnventory; actual
replacement cost data provided by the client, information provided by local contractors and suppliers,
industry standard estimating manuals, and a cost database we have developed based upon our detailed
interviews with contractors and service providers who are specialists in their respective lines of work.
Normal Economic Life (Yrs). The number of years that a new and properly installed item should be
expected to remain in service.
Remaining Economic Life (Yrs). The estimated number of years before an item will need to be
replaced. ln "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 56 Excluded ltems includes the ltem Description, Units, and Number of Units. Many of the
Excluded ltems are listed as a 'Lump Sum' with a quantity of 1. For the Excluded ltems, this indicates that
all of the items identified by the 'ltem Description' are excluded from funding by Replacement Reserves.

. REVIEW OF EXPENDITURES. This Replacement Reserve Study should be reviewed by an accounting


professional representing the Association prior to implementation.

. PARTIAL FUNDING. ltems may have been included in the Replacement Reserve lnventory 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 ihe basis for any partial funding are noted in the Comments section.

. REMAINING ECONOMIC LIFE GREATER THAN 40 YEARS. The calculations do not include funding for initial
replacements beyond 40 years. These replacements are included in this Study for tracking and evaluation. They
should be included for funding in future Studies, when they enter the 4A-year window.
Miller + Dodson Associates, lnc. _ Replacemelt_Bese@
May 21,2A16
Preston at Park West 161 56802PRESTON17

SITE COMPONENTS
PROJECTED REPLACEMENTS
UMT NORMAL R:UAtt{stc
IEM ITEM NUMBER RfPIACEIGNI ECG{OMIC Ecoa{olllC REPI-ACATENT
* DESCRIPTION t-[,ST Of UNITS cosT(s) UFE(fRs) LrE flRs) cost {l)

1 Concrete driveway (6%) sf 4,680 $11.20 6 6 $52,416


z Concrete flatwork (6%) sf 1,265 $9.10 6 6 $1 1 ,512

3 Wood PTL decking sf 11,880 $11.25 15 12 $133,650


4 Wood PTL railing ft 1,782 $28.50 15 12 $50,787

Retaining wall, PTL ^a


SI 750 $37.25 20 none $27,938

6 Fence, 6'vinyl solid face ft 310 $30.90 40 37 $9,579


7 Sign & post, street ea 10 $285.00 2A 17 $2,850

8 Mailbox, cluster ea 7 $1,500.00 35 30 $10,500


e Postal shelter, PTL sf 160 $35.00 40 35 $s,600
'ro Postal shelter, metal roof sf 160 $12.00 40 35 $1,920

11 Pergola, PTL-wood sf 400 $27.50 25 20 $1 1,000


12 Storm water pond dredging cy 395 $65.00 20 19 $25,675
13 Storm water pond fountain ea I $1,200.00 10 5 $1,200
14 Stormwatermanagement ls 1 $1,500.00 10 7 $1,500

.15 Entry Monument 1 $1,000.00 15 15 $1,000

SITE COMPONENTS - Replacement Costs - Subtotal $347,126

SITE GOMPONENTS
GOMT,IENTS

a 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 percenl of the system(s) will require replacement. ln the future, this assumption and the estimated costs
should be adjusted based upon actual experience at the community.

I
Miller + Dodson Associates, lnc. iqqry" Uyqtory.-:!399 El
Preston at Park West ---EeEE"ery$ MaY 24,2016
161 56802PRESTON1 7

BUtLDIttIG B$ERIORS
PROJECTED REPLACEHET{TS ItoRnAL : EEirAg{s€
UN{I
rEM ITEM
NUT'BER REPIACCIEI.fT &O{{$idc Ecollo$e fiEPLAEE}iiENI

* DESCRIPTION lJ$tT oF $llls eosf {6) uFEtYRs) tlFEiteg) Cosr{9}

16 Roofing, asphalt shingles sf 10,100 $4.00 20 19 $40,400


17 Roofing, asphalt shingles sf 10,100 $4.00 20 18 $40,400
18 Roofing, asphalt shingles sf 10,100 $4.00 20 17 $40,400
1e Roofing, asphalt shingles sf 10,100 $4.00 20 16 $40,400

20 Roofing, steel standing seam ^t


5t 2,150 $13.00 40 38 $27,950
21 Roofing, steel standing Seam sf 2,154 $13.00 4A 37 $27,S50
22 Roofing, steel standing seam sf 2,150 $13.oCI 4A 36 $27,9s0
23 Roofing, steel standing seam ef 2,150 $13.00 4A 35 $27,9s0

24 Chimney cap, metal ea 20 $195.00 20 19 $s,900


2i Chimney cap, metal 2A $195.00 20 18 $3,900
26 Chimney cap, metal ea 2A $195.00 20 17 $3,e00
27 Chimney cap, metal ea 20 $195.00 20 16 $3,900

28 Siding & trim, fiber cement sf 36,790 $10.50 4A Jt, $386,2Ss


2s Siding & trim, fiber cement af 36,790 $10.50 40 $386,295
ao Siding & trim, fber cement Sf 36,790 $10.s0 4U 36
2A
$386,295
s1 Siding & trim, fiber cement sf 36,790 $10.s0 4A $386,295

32 Masonry veneer (10% rePointing) sf 7,160 $10.00 30 29 $71,600

BUILDING EXTERIORS - Replacement Costs - Subtotal $1,905,780

four-year period due to the amount of these


Miller + Dodson Associates, lnc. ___ _ Replacement Resgrue llventory:':11q, ej-,1
May 24,2O16
Preston at Pa* West 161 558o2PRESTONl 7

BUILDING EXTERIORS - cont'd


PROJECTED REPLACEMEITTS
UMT NORMAL REMA]NING

ITSM ITEI'I NtiiEER REPIACETENT ECONO| tC ECONOMIC REPIACEMENT


DESCFNPTO}T UNTT oF trdTs cosT{5} LIFE f/RS) LIFE (YRS) cosl (5)

'
33 Door, solid steel at sprinkler closet ea 5 $8s0.00 25 23 $4,250
34 Door, solid steel at sprinkler closet ea 5 $850.00 25 22 $4,250
35 Door, solid steel at sprinkler closet ea 5 $850.00 )R 21 $4,250
36 Door, solid steel at sprinkler closet ea 5 $850.00 25 20 $4,250

3? Column, fiberglass at entries ea 76 $750.00 45 40 $57,000


3e Column, fiberglass at entries ea 76 $7s0.00 45 39 $57,000
3e Column, fiberglass at entries Ed 76 $750.00 45 38 $57,000
40 Column, fiberglass at entries oa 76 $750.00 45 37 $57,000

41 Wood PTL railing ft 4s0 $28.50 15 12 $12,825


42 Wood PTL railing ft 450 $28.50 '15 11 $12,825
43 Wood PTL railing ft 450 $28.50 15 10 $12,825
44 Wood PTL railing ft 450 $28.50 15 I $12,825

45 Wood PTL decking sf 2,970 $6.50 15 12 $19,305


46 Wood PTL decking sf 2,970 $6.50 15 1'l $19,305
47 Wood PTL decking sf 2,974 $6.s0 15 10 $19,305
4s Wood PTL decking sf 2,974 $6.50 15 I $19,305

4e Deck structure PTL sf 2,970 $15.00 45 40 $44,550


50 Deck structure PTL sf 2,970 $1s.00 45 39 $44,550
51 Deck structure PTL sf 2,970 $15.00 4s 38 $44,550
52 Deck structure PTL sf 2,970 $15.00 45 37 $44,550
BUILDING EXTERIORS - cont'd - Replacement Costs - Subtotal $551,720

BUILDING EXTERIORS - cont'd


COMMENTS
Reserve
Miller + Dodson Associates, lnc.
'161 56802PRESTON17

{.hflT !€Et AL
RErrAt{SE
ldffr*r REFI.A@,Elfr ECollOUtO ECOI'IsliC REPIACEI!,ENr
co6'r(s
uilr? oFLr{TS cosT(s urE$aRs) UFE$RS)

ea 12 $850.00 25 23 $10,200

Fire protection & alarm system (allow.) $3,000.00 10 $3,000

BUILDING EXTERIORS - cont'd - Replacemeni Costs - Subtotal $13.200

BUILDING EXTERIORS - cont'd


COMMENTS
!epl3r9tn91! r"r eryq nygllory.MaYl1gg,Bf
-
Miller + Dodson Associates, lnc.
1

24,2016
Preston at Park West

VALUATION EXCLUSIONS
EXCLUDED ITEMS
UNIT NORMAL REMAINING

ITEM NUMBER Ecoa{oillc Ecot{o$c


REpr-ACErEltt RERACEI'ENI
TTEM
t ifrT OF UNITS COSTT$ LJFE(YR9 LFE(YRS) cosr (t)
* DESCRIPTION

Site lighting fixtures ls 1 EXCLUOED i

ls EXCLUDED
Miscellaneous signage 1

ls 1 EXCLUDED
Sprinkler head
lnterior doors ls 1 EXCLUDED
Window unit IS 1 EXCLUDED

a 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.

a The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.
Miller + Dodson Associates, lnc. Replacement Reserve lnventory-PageB8
MaY24,2o16
-pffi 161 56802PRESTON17

LONG.LIFE EXCLUSIONS
EXCLUDED ITEMS
UNIT NORMAL REMAINING
IIEM ITEM NUMBER REPIACEIUENI ECONOMIC ECONOMTC REPLACEMENT
# oEscRlPTtol{ UI'IT OF UNII6 cosT (t) LIFE (YRS) LIFE (YRS) cosr ($)

Miscellaneous culverts ls EXCLUDED


Building foundation(s) ls EXCLUDED
Concrete floor slabs (interior) ls EXCLUDED
Wall, floor, & roof structure ls EXCLUDED
Common element electrical services ls EXCLUDED
Electrical wiring ls EXCLUDED
Water piping at common facilities ls EXCLUDED
Waste piping at common facllities ls EXCLUDED
Gas services at common facilities ls EXCLUDED

LONG.LIFE EXCLUSIONS
COMMENTS

a 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 lnventory. Examples of items excluded from funding by
Replacement Reserves by this standard are listed above.

a 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 lnventory.

a The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.
Miller + Dodson Associates, lnc. Replacement Reserve lnventory - Page 89
Preston at Park West May 24,2A16
1 61 56802PRESTON 1 7

UNIT IMPROVEMENTS EXCLUSIOHS


EXCLUOED ]TETIS
UNIT NORII/IAL REMAINING

ITETI ITEM NUMBER REFIACEMENT Eool{Otrrlc ECONOMTC REPLACEMENT


* DESCRIPTION II{IT OF UNIIS cosr($) LIFEO'RS) L|FE (YRS) cosT (J)

Domestic water pipes serving one unit IS 1 EXCLUDED


Sanitary sewers serving one unit IS 1 EXCLUDED
Electrical wiring serving one unit ls 1 EXCLUDED
Cable TV service serving one unit Is 1 EXCLUDED
Telephone service serving one unit ls I EXCLUDED
Gas service serving one unit ls 1 EXCLUDED
Curb & gutter on an individual lot ls 1 EXCLUDED
Unit windows ls I EXCLUDED
Unit doors ls 1 EXCLUDED
Unit skylights ls 1 EXCLUDED
Unit patio and screened porch ls 1 EXCLUDED
Unit interior ls 1 EXCLUDED
Unit HVAC system ls 1 EXCLUDED

UNIT IMPROVEMENTS EXCLUSIONS


COMMENTS

a Unit improvement Exclustons. We understand that the elements of the project that relate to a single unit are the
responsibilityofthatunitowner. ExamplesofitemsexcludedfromfundrngbyReplacementReservesbythisstandardare
listed above.

a The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.
Miller + Dodson Associates, lnc. Replacement Reserve lnventory - Page 810
Preston at Park West MaY 24,2Q16
1 61 55802PRESTONl 7

UTILITY EXCLUSIONS
EXCLUDED TTEMS
UNIT NORMAL REMAINING
ITEM IEM NUMEER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT
# DESCRIPTION UNII OF IJNITS cosT ($) LIFE (vRS) LIFE (YRS) cosr t$)

Primary electric feeds ls 1 EXCLUDED


,|
Electric transformers IS EXCLUDED
Cable TV systems and siructures ls 1 EXCLUDED
Telephone cables and structures lc 1 EXCLUDED
Site lighting IS 1 EXCLUDED
Gas mains and meters ls 1 EXCLUDED
Water mains and meters IS 1 EXCLUDED
Sanitary sewers ls 1 EXCLUDED

a 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,

a The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive
Miller + Dodson Associates, lnc. Replacement Reserve lnventory ' Page 811
Preston at Park West May 24,2015
161 56802PRESTON17

MAINTENANCE AND REPAIR EXCLUSIONS


EXCLUDED ITEMS
UN'T TERMAL REMAINING
ITEM ITEM M"EER REPT.ACEME{T ECOI{A'|C ECONOMTC REPLACEITIE}'IT
* DEscRlPTlo" uN't of ulffii co$ (i) UFE{YRS) LIFE (YRS) cosT (3)

Cleaning of asphaltpavement ls 1 EXCLUDED


pavement
Crack sealing of asphalt ls
,l
EXCLUDED
Painting of curlcs ls 1 EXCLUDED
Landscaping and site grading ls 1 EXCLUDED

Exierior painting IS 1 EXCLUDED


lnterior painting ls 1 EXCLUDED

Janitorial service is 1 EXCLUDED


,|
Repair services ls EXCLUDED
Partial replacements IS 1 EXCLUDED
Capital improvements ls 1 EXCLUDED

MAINTENANCE AND REPAIR EXCLUSIONS


COMMENTS

a Maintenance activities, one{ime-only repairs, and capital improvements. These activities are NOT appropriately funded
from Replacement Reserves. The rnclusion of such component in the Replacement Reserve lnventory could jeopardize
the special tax status of ALL Replacement Reseryes, exposing the Association to significant tax liabilities. Wb
recpmmend that the Board of Directors discuss these exclusions and Revenue Ruling 75-370 with a Certified public
Accountant.
a Examples of items excluded from funding by Replacement Reserves by this standard are listed above.

a The list above exemplrfies exclusions by the cited standard(s) and is not intended to be comprehensive.
Mitler + Dodson Associates, tnc. Replacement Reserue lnventory'Page B12
ffi May24,2016
161 56802PftESTON17

GOVERNMENT EXCLUSIONS
EXCLUDED ITEMS
UNIT NORMAL REMAINING

ITEM ITEM $.TER REPLACEMEI'iT ECONOIJIIC ECONOMIC REPLACEMENT

r OESRIPTION u{tT oFlri{TEi COST6) UFE(YRS) LIFE(YRS) cosT (9)

Government. roadwaYs & Parking ls1 EXCLUDED


Government, sidewalks & curbs ls1 EXCLUDED
Government. lighting ls1 EXCLUDED
Government, stormwater mgmt. ls1 EXCLUDED
Government, Ponds ls1 EXCLUDED

GOVERNMENT EXCLUSIONS
COMMENTS

a Government Exclusions. We have assumed that some of ihe improvements insialled on property owned by the
Association will be maintained by the state, county, or local government. or other association or other responsible entity.
Examples of items excluded from funding by Replacement Reserves by this standard are listed above.

a Excluded right-of-ways, including LIST ROADS, and adjacent properties.

a The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.
Miller + Dodson Associates, lnc. R e pl_a c e F e-n llee g ryg Uyglo1y jli s e a1 _3
Preston at Park West l,llay 24,2416
161 56802PRESTONl 7

IRRIGATION SYSTEM EXCLUSIONS


EXCLUDED ITEMS
UNIT NOR},iAL REMAINING
ITEM ITEII MJIiEER REPLACEMENT ECONOM1C ECONOMIC REPI.ACEMENT
* DESRIPNON UNIT oF rr,{trs COST (S) LIFE CfTIS) LIFE (YRS} cosT (o

Subsurface irrigation pipe ls 1 EXCLUDED


Subsurface irrigation valve ls 1 EXCLUDED
Subsurface irrigation control wiring ls 1 EXCLUDED

lrrigation control system IS 1 EXCLUDED


lrrigation system electrical service ls 1 EXCLUDED
lrrigation system enclosures ls I EXCLUDED

IRRIGATION SYSTEM EXCLUSIONS


coilatENTrs

a lrigation System Exclusions. We have assumed that the maintenance, repair, and periodic replacement of the
components of the extensive inigation systems at the property will not be funded trom Replacement Reserves. These
systems should be inspected each spring when the systems are brought on line and each fall when they are winterized.
Repairs/replacements should be made in conjunction with these inspections.
lntentionallY Left Blank
Miller + Dodson Associates, lnc. Projected Annual Replacements - Page Cl
Freston ii Pirriwest MiY 24,2016
1 61 56802PRESTON 1:

PROJECTED ANNUAL REPLACEMENTS


GENERAL INFORMATION
CALENDAR OF ANNUAL REPLACEMENTS. The 54 Projected Replacements in the Preston at Park West
Replacement Reserve lnventory 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
e REVISIONS. Revisions will be made to the Replacement Reserve Analysis and Replacement Reserve lnventory
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. lt is our
policy to provide revisions in electronic (Adobe PDF) format only.

. TAX CODE. The United States Tax Code grants favorable tax status to a common interest development (ClD)
meeting certain guidelines for their Replacement Reserve. lf a CID files their taxes as a'Corporation' on
Form 1120 (lRC Section 277), these guidelines typically require maintenance activities, partial replacements,
mlnor replacements, capital improvements, and one-time only replacements to be excluded from Reserves.
A CID cannot co-mingle planning for maintenance activities with capital replacement activities in the Reserves
(Revenue Ruling 75-370). Funds for maintenance actlvities and capital replacements activities must be held in
separate accounts. lf a CID files taxes as an "Exempt Homeowners Association" using Form 1 120H (lRC
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.
o 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.
. RELIANCE ON DATA PROVIDED BY THE CLIENT. lnformation provided by an official representative of the
Association regarding financial, physical conditions, quality, or historical issues is deemed reliable.

a INTENT. This Replacement Reserve Study is a reflection of the information provided by the Association and the
visual evaluations of the Analyst. lt 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.

. PREVIOUS REPLACEMENTS lnformation 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.

. EXPERIENCE WITH FUTURE REPLACEMENTS. The Calendar of Annual Projected Reptacements, 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.

REVIEW OF THE REPLACEMENT RESERVE STUDY. For this study to be effective, it should be reviewed by
' the Preston at Park West Board of Directors, those responsible for the management of the items
included in the Replacement Reserve lnventory, and the accounting professionals employed by the Association.
Miller + Dodson Associates, lnc. JlEggllqAnnual Replacements '!:gS9Z
Preston aiFark wdt -- -- ,.Hri1?3J,?

2018 . YEAR 2 20,I9 . YEAR 3


Item 2017 - STUDY YEAR S

5 Retaining wall, PTL $27,938

No Scheduled No Scheduled Repl€cements


TotalscheduledReplacements $27,938

2O2O . YEAR 4
. YEAR 5 ltem 2022-YEAR6 $
13 Storm water pond fountain $ l ,200

No Scheduled Replacements Total Scheduled


No Scheduled RePlacements

Item 2023 - YEAR 7 $ item 2024-YEAR8 $ Item 2025 - YEAR 9 $

1 Concrete drivewaY (60lo) $52,416 14 Stormwater management $1,500 54 Fire protectio8 & alarm syst( $3,000

2 Concrete flatwork (6010) $1 1 ,512

Tolal Scheduled T6talScheduledReplacements $1.500 Total Scheduled

Item 2026 - YEAR 10 $ Item 2027 -YEARU $ Item 2028 ' YEAR 12 $

44 Wood PTL railing $12.825 43 Wood PTL railing $12,825 42 Wood PTL railing $12,825

48 Wood PTL decking $19,305 47 Wood PTL decking $19,305 46 Wood PTL deckins $'19,305

TotalscheduledReplacements $32'130 TotalscheduledReplacements s32,130 TotalScheduledReplacements $32,130

Item 2029.YEAR 13 S 2030 - YEAR 14 Item 2031 ' YEAR 15


1 Concrete driveway (60lo) $52'416
2 Concrete flatwork (6%) '1
$1 '512
3 Wood PTL decking $133,650
4 Wood PTL railing $50,787
4'l Wood PTL railing S12'825
45 Wood PTL decking $19,305

Total Scheduled Replacements $280,495 No Scheduled Replacements No Scheduled


Projected Annual Replacement!-- P?ge- 91
Miller + Dodson Associates, lnc' MaY 24,2016
Preston at Park West

- Fno.hc-rEo nepr-ACamrENTS-YE-ARS SiXreEnr ro rnrnw --- -l


16156S2PRESTON17

f*----
L----
="=-==---:
ttem ZoSZ - YEAR'16 $ 2033 - YEAR 17 $ Item -- 2034 - YEAR 18
$40,400 7 Sign & post, street $2,850
13 Storm water pond fountain $1 '200 '19 Roofing, asphalt shingles
$3,900 14 Stormwater management $1,500
15 Entry Monument $1,000 27 Chimney cap, metal
18 Roofing, asphalt shingles $40,400
26 Chimney cap, metal $3,900

Total Scheduled Total Scheduled RePlacements


Total Scheduled RePlacements

Item 2036 - YEAR 20 lEm 2037 - YEAR 21 S


itbm 2035 - YEAR 19 $ $

1 concreie driveway (6%) $52'416 12 slorm water pond dredging $25,675 5 Retaining wall, PTL $27'938

2 Concrete flatlvork (6%) $1 1 .512 16 Roofing, asphaltshingles $40'400 11 Pergola, PTL-wood $11'000

17 Roofing, asphaltshingles $40'400 24 Chimney cap, metal $3,900 36 Door, solid steel at sprinkler $4,250

25 Chimney cap, metal $3,900


54 Fire protection & alarm syst€ S3,000

TotalscheduledReplacemenls $111,228 Total Scheduled Replacements TotalScheduledReplacements 543,188

! Item 2040 - YEAR 24 $


Item 2038 - YEAR 22
35 Door, solid steel at sprinkler 94,250 U Door, solid steel at sprinkler $4,2 50 JJ Door, solid steel at sprinkler $4,2s0
53 Wood PTL steps s10,200

Total Scheduled Replacements $4,250 Total Scheduled TotalscheduledReplacemenls $14,450

Item
em - YEAR 25
2041 -YEAR 25 $ Item 2042 -YEAR 26 $ Item 2043 - YEAR 27 $
'1 Concrete driveway (6%) $52,416 13 Storm water pond fountain $1,200 42 Wood PTL rajling $12,825
2 Concrete flatwork (6%) $1 I ,512 43 Wood PTL railing $12,425 46 Wood PTL decking $19,305
44 Wood PTL railing $12,825 47 Wood PTL decking $19,305
48 Wood PTL decking $19,305

Total Scheduled Replacements TotalScheduledReplacements $33,330 TotalScheduledReplacements $32,130

Item 20i14 - YEAR 28 $ Item 2045 - YEAR 29 ! Item 20116 - YEAR 30 $


3 Wood PTL decking $133,650 54 Fire proteciion & alarm syst€ $3,000 32 Masonry veneer (10olo repoir $71,600
4 Wood PTL railing $50,787
14 Stormwater management $1,5o0
4'l Wood PTL railing 512,825
45 Wood PTL decking $19,305

Total Scheduled Tolal Scheduled TotalScheduledReplacements $71,600


Miller + Dodson Associates, lnc. Projeeted Annual Replaeements - Page C4
preston at Pa* West- na[ ZqtUA
161 55802PRESTON17

PROJECTED REPLACEMENTS . YEARS THIRW.ONE TO FORTY-FIVE


em 2047 -YEAR 31 $ Item 2048 - - YEAR 33
1 Concrete driveway (6%) $52,416
2 Concrele flatwork (6%) 511,512
I Meilbox, cluster $10,500
15 Enky Monument $1,000

TotalScheduledReplacements $75,428 No Scheduled No Scheduled

20s0 - YEAR 34 2051 - lEm 2052 - $


9 Postal shelter,PTL $5,600
10 roof
Postal shelter, metal $1,920
13 Storm water pondfountain $1,200
23 sear
Rooting, steel standing $27,950
JI cement
Siding & trim, fiber $386,295

No Scheduled No Scheduled Replacements TotalScheduledReplacements $422,965

:em 205:! - YEAR 37 $ Item 2054 - YEAR 38 $ Item 39


20s5 - YEAR $
1 Concrete driveway (6%) $52.416 6 Fence,6'vinyl solid face $9,579 17 shingles $40,400
Roofing. asphalt
2 Conciete flatwork (6%) $ 1 1 ,512 7 Sign & post, street S2,850 20 sear $27,950
Rmfing, steel standing
19 Roofing, asphalt shingles $40,400 14 Stormwatermanagement $1,500 25 Chimney cap, metal S3,900
22 Roofing, steel standing sear $27,950 18 Roofing, asphalt shingles $40,400 2A cement $386,295
Siding & trim, fiber
27 Chimncy cap, metal $3,900 21 Roofing, steel standing sear $27,950 39 entries $57,000
Column, fiberglass at
30 Siding & trim, fiber cement $366,295 26 Chimney cap, metal 63,900 51 Deck struciurePTL $44,550
29 Siding & trim, fiber cement E386,295 54 syst€ $3,000
Fire protection & alarm
40 Column, fiberglass atenfie! $57,000
52 Deck slructure PTL 544,550

Total Scheduled TotalScheduledReplacements $574,o24 Total Scheduled

tem 2066 -YEAR4{! $ llem 2057 (beyond Study Period) S Item 2o5a {beyond Siudy Period) S
12 Storm water pond dredging $25.675 5 Retaining wall, PTL 42 W'ood PTL raaling S12 825
16 Roofing, asphalt shingles S40,400 37 entrier
Column. fiberglass at S57 46 Wood PTL decking 519,305
24 Chimney cap, metal $3,900 43 Wood PTL railing 512,825
38 Column, fiberglass at entrie! $57,000 47 Wood PTL decking 519.305
44 Wood PTL railing 512,825 49 Deck structure PTL
48 Wood PTL decking S19,305
50 Deeksfucture PTL $.14,550

Total Scheduled Total Scheduled Total Scheduled

llem 2C61 (beyond Study


1 Concreie driveway (6o/c)
2 Concrete flatwork (670)
3 Wood PTL decking
4 Wood PTL railing s50.787
41 Wood PTL railing
45 Wood PTL deck,ng

Scheduled No Scheduled Replacements


Miller - Dodson Associates. lnc. Condition Assessment' P.age -Q1
t/Yest MaY 24' 2016
Preston at Park

CONDITION ASSESSMENT
General Comments. Miller - Dodson Associates conducted a Reserve Study at Preston at Park West in May
2016. Preston at Park West is in generally good condition for a community constructed beginning around
2008. A review of the Replacement Reserve lnventory will show that we are anticipating most of the
components achieving their normal economic llves.

The following comments pertain to the larger, more significant components in the Replacement Reserve
lnventory 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 lnventory.

General Condition Statements.

Excellent. 100% to 90% of Normal Economic Life expected, with no appreciable wear or defects.

Good. 90% to 60% of Normal Economic Life expected, minor wear or cosmetic defects found. Normal
maintenance should be expected. lf performed properly, normal maintenance may increase the useful life of a
component. Otherwise, the component is wearing normally.

Fair. 607o to 30% of Normal Economic Life expected, moderate wear with defects found. Repair actions
should be taken to extend the life of the component or to correct repairable defects and distress. Othenryise,
the component is wearing normally.

Marginal. 30% to 11o/o al Normal Economic Life expected, with moderate to significant wear or distress
found. Repair actions are expected to be cost effective for localized issues, but normal wear and use are
evident. The component is reaching the end of the Normal Economic Life.

Paar. lAYo to Oo/o of Normal Economic Life expected, with signif;cant distress and wear. Left unattended,
additional damage to underlying structures is likely to occur. Further maintenance is unlikely to be cost
effective.

SITE COMPONENTS

Entry Monument and Signage. The Association maintains an entry monument off Park West Boulevard.
The monument is made of brick masonry and a synthetic material signage. lt is in good condition.

We recommend repointing and replacement of defective areas of the masonry as needed. Due to the size of
the sign and the limited amount of masonry, we have not included any funding for replacement of the masonry
element. We have modeled for replacement of the signage within the monument periodically. The Association
may want to consider applying a coat of Siloxane or other appropriate breathable sealant to mitigate water
Miller - Dodson Associates, lnc. Condition Assessment ' Page D2
Preston at Park West May 24,2016

penetration and further degradation of the masonry work. For additional information, please see the
appropriate links on our web site at http:i/mdareserves.com/resourQes/links/building-exterior.

ln addition to the monuments, the Association is responsible for the community's signage including stop,
speed, streel, and other major signs. Other small miscellaneous signs are not considered in this study and
should be replaced using other funds.

Concrete Work. The concrete work includes the community sidewalks, leadwalks, and driveways. All of the
concrete work appears to be in good condition.

7
\
rc \
The standards we use for recommending replacement are as follows:

. Trip hazard, Yz inch height difference.


. Severe cracking.
. Severe spalling and scale.
o Uneven riser heights on steps.
r Steps with risers in excess of 8% inches.

Because it is highly unlikely that all of the concrete components will fail and require replacement in the period
of the study, we have programmed funds for the replacement of these inventories and spread the funds over
an extended timeframe to reflect the incremental nature of this work.

The relevant links on our web site may provide useful information related to concrete terminology,
maintenance, and repair. Please see http:/lmdareserves.com/resourcesllinks/site-components.
Miller - Dodson Associates. lnc. Condition Assessment - Page D3
ffi MaY24'2016

Retaining Walls. The Association maintains a wood retaining wall behind one of the buildings. The retaining
wall is reported to be in poor condition. A study is underuuay to determine the exact repairs that will be
required. For this study, we have assumed that the entire wall will be rebuilt.

Retaining walls In general are designed to provide slope stabilization and soil retention by means of a
structural system. Typically, walls that are three feet high or more require some level of design.

Movement and displacement of any retaining wall is a sign of general settlement or failure. This typically is in
the form of leaning and bowing, and can involve the entire wall or localized sections of the wall. Typically,
these types of movements are gradual and may require the replacement of the wall. Movement of retaining
walls located near other buildings or structures may negatively affect the stability of the adjacent structure.
These conditions can become extremely costly if not properly identified, monitored, and addressed.

Wood retaining walls will experience rot and decay over time and partial replacement of defective wooden
members is ofien possible in the early stages of decay. Eventually however, these walls will require
replacement. Wood retaining walls can have a useful life of 25 to 35 years.

When and if it becomes necessary to replace these walls, we recommend the Association consider one of the
segmental block retaining wall systems. These systems are very low maintenance. lf over time the wall
experiences movement, sections of the walls can be re-stacked at a very small portion of the cost of a new
wall. Segmental block retaining walls can have a service life of 80 years or more. As a general source of
information about retaining walls, we offer several links from our website at
http://mdareserves. conr/resources/links/site-components.

Retaining wall replacement can be costly, and early planning on the part of the Association can help to reduce
the impact of this work on the community's budget in the future. We therefore recommend having a
Professional Engineer inspect the walls and develop preliminary replacement alternatives and
recommendations based on the site conditions, replacement costs, and recommended replacement wall types.
This information can then be incorporated into future updates to the Reserve Study.
Miller - Dodson Associates, lnc. Condition Assessment - Page D4
Freston at Park West MaY 24, 2016

Mailboxes. The cluster mailboxes located in the community


are in good condition. Mailboxes should be maintained to the
extent that rust does not develop on the structure or pedestal.
All mail slot doors remain intact and hinges and locks remain
operable.

Storm Water Pond. The community is served by a storm water pond.

Ponds wili accumulate silt and over time and lose the ability to store storm water at design levels, which could
result in overflows and minor local flooding. ln addltion, water quality can be negatively affected by increased
siltation and debris accumulation. Accordingly, ponds require periodic dredging.

Estimates of cost and the frequency of dredging ponds are a function of many variables, including the volume
of the pond, the siltation rate, the nature of the material being removed, the method of removal, and the haul
distance to a site that will accept the spoil material. Most of this information is unknown and must be assumed
for the purpose of reserve study planning. The sittation rate and cost of periodic dredging are speculative,
varying greatly depending on local conditions.

As a rule of thumb, dredging should be performed when approximately one-third of the volume of the pond has
been filled with silt. ln the absence of accurate information about the original depth of the pond and the local
siltation rate, we have assumed that it will be necessary to remove one cubic yard of material over a third of
the pond area every 20 years. We have assumed that the material being removed is free of heavy metals and
hydrocarbons, and that it wlll be accepted as fill at a local landfill. A more accurate prediction of cost and
cycles will require a hydrologic analysis and testing, which is beyond the scope of our study.

Because of ihe significant cost of this work, it is recommended that the Association underiake studies to refine
the assumptions of this study.

Based on our understanding, we recommend the following:

. Perlodically remove accumulated debris and vegetation growing in the ponds.


. SurveY the ponds to establish the current profile of the bottom. Afterfive years of operation, have the
pond re-surveyed to establish new depths to determine the local siltation rate. This will establish the
frequency required for periodic dredging.

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