Professional Documents
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(3 Annapolis, MD 21401
410.268.0479
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www.mdareserves.com
Section A
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
Section C
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 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,
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.
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
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 .
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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
_e_
Cagh Flow Method - Cumlalive Receipls
_*
Cash Flow Meihod - Yoar End Balane Cumulative
EExpenditures PeakYear
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s3,723,763
$3,000,000
s1.000,000
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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
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
. 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.
. 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)
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
'
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 $4,250
{.hflT !€Et AL
RErrAt{SE
ldffr*r REFI.A@,Elfr ECollOUtO ECOI'IsliC REPIACEI!,ENr
co6'r(s
uilr? oFLr{TS cosT(s urE$aRs) UFE$RS)
ea 12 $850.00 25 23 $10,200
24,2016
Preston at Park West
VALUATION EXCLUSIONS
EXCLUDED ITEMS
UNIT NORMAL REMAINING
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 $1,000.00 have not been scheduled for
funding from Replacement Reserves. Examples of items excluded from funding by Replacement Reserves by this
standard are listed above.
a The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.
Miller + Dodson Associates, lnc. Replacement Reserve lnventory-PageB8
MaY24,2o16
-pffi 161 56802PRESTON17
LONG.LIFE EXCLUSIONS
EXCLUDED ITEMS
UNIT NORMAL REMAINING
IIEM ITEM NUMBER REPIACEIUENI ECONOMIC ECONOMTC REPLACEMENT
# oEscRlPTtol{ UI'IT OF UNII6 cosT (t) LIFE (YRS) LIFE (YRS) cosr ($)
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
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 ($) LIFE (vRS) LIFE (YRS) cosr t$)
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
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
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 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
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:
. 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,?
2O2O . YEAR 4
. YEAR 5 ltem 2022-YEAR6 $
13 Storm water pond fountain $ l ,200
1 Concrete drivewaY (60lo) $52,416 14 Stormwater management $1,500 54 Fire protectio8 & alarm syst( $3,000
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
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
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
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
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
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.
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.
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The standards we use for recommending replacement are as follows:
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
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.
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