ican gran «ss Peralta Creek Tower Update w/ site Visi Review FINAL Publshee - November 05, 2014 Prepared for the 2045 Fiscal Year RESERVE STUDY Member Distribution Materials Section Report California: Homeowner Summary ‘Assessment and Reserve Funding Disclosure Summary Section 1M: 30 Year Reserve Funding Plan a Lows Code $5570] 3 (Cash Flow Method {c} 5 Professionally managed by Note Cammuniy Management (10) 865:3003, [chard Avelor & Associate (© Richard Avelr & Ascocots 20142015 Budget Worksheet ToT etal | Projected | Projecto Bis Dalar YTD |YearEding) Excess or Change Jncome Budget_Monthiy UnitiMonth| 990/18 _| Torte | (Showa) | Budget __Monthly_UalvMont_ 13.0 14 [asessman isi.200~ $1260 $300.00 [$113,400.00] $151 200 Go| S6saiF Si3.776 SAHOO] S1a.n12[ 9.393] lest sso $az_— $0.99] $378.00) $500 30 soo S309] $0] 00] [Pu @ Storage so $5 sist] $495.00) 36e0 30 360 $55 $138] 9] o.n0] ate & Mise. S750 $3 ___$18| $858.00) __ 750 30 si 53 149| $01 on [rota Income sizas0—$s0879) stiassio0| siss.i10 so] siszaz2sisgss $331.70] siau2| 9228 Vesper lnuies lass eevie sus sies7|—ssetres) sear] $30 sms sies7| $0] 008 arbagelRecyce sisw 33610] 1221302] sisaoe] —_si68) sisso — si6s0] $360 1973 water shag $240] si2osai) si9900] (s6s00] $19.50 $1528 sano] s7.p00| 56) Telephone seo $595] saursss] sano] (st 200] 3375 1500} 30.003 [Sap To T_T | | sea SBE Saat a78| Itontty Servicer Landscaping star sare sui | sasesco) —ssz00| srs | soon sass sna] (3192) 1095] [Alem Sewice ssin $3 «$1.01)—$zenoo) sane} $222 ss sks] GRID] a licwator Service $4100 $342. $8.13] 82.75230) $4,100, so] sito sss] $0| 005] foivoriat $6750 $729 $1936] séus000) ssso0| sas | sti2s0 sug sa2az} s2s00| 28.579 IManegement sisy sia 27s] si027#00) 13300 so] sigio0 —st.7s s2798) 400] 2020] sab aia Hi sae samo | “wasieso | sozee| —sizea| —R_RTe—_sosoa| Se] aR Repair & Supply Window Washing $2090 174 «$H.15]— sa.oson] —s2.9s] estos) sit] sto] oes Piumbing smo $5881.39] S100) $1500] soo siz] gso] 7148] leletia! sao $33, $070] siss.za]_— 200] $200) 3032] «240) 60.00% oes & Keys si $25 $00] siraaal_ site| Sia 3020| (200) 467%) Roof & Downspous $200 $17 S00 3000] $200 30 30.00] $200] -100.0%) [ener Main, sant sas 798] s2aeis) S400] sa) soot] (san) 12.96%) [atures Repair suo $7 soa) srrooo} $170] S150 soad| (20) -1500%) [Su Taa Doss | mes | ae | a 3s HB se [other Expenses insurance BRIO STE $13.19] $igs00 | ——as0] ODS] STa—Heo.Te | $1500 | — BOR [site Fe Taxes so sh S100} $10, 0 S10 si 0} coon Paccounani| 31275 $106 si27500] $1275 so] sizod—s108 ses | 1.966 sm) 358 szzso0) 350/350, sso saz «s200}) 28.575 sus at $2399) $520 $8 sas s0| 000% Ioaitngs & Copying $615. $86 sisi] 660] S15, Seo $58 is] 2228 jowerMise.omree $100 $8 soo} $100, 30 $67 36 3] 38.008] [Sab Tear TBI s8e| aes) aa | wa) ea _ Ses Bas aS |S] Sse Irescrves sno sion sus7| ssizteco] stoiso] sisi2| sss sara stoose| sono] 6248 [fowl Epenses 8151200 12.500 900.00] siosesar| siseara| (ssina) Stes sare ssxsoo| sina [953 orale Crook Tower Hemaowmrs Assocation ‘Budget Woreseet ear 1174/14yt a SATS Peralta Creek Toner California Homeowner Summary FINAL Prepared fr the 2035 Fscl Year November 05, 2014 This is a summary of the Reserve Study that has been performed for Peralta Creek Tower, (the "Association"). This study was done In compliance with Catifornia Civil Code Section 5300 and 5500 and is being provided to you, as a member of the Association, as required under these statutes. A full copy is available (through the Association) for review by members of the Association. ‘The intention of the Reserve Study Is to forecast the Association's ability to repair or replace major components as they wear out in future years. This is done utilizing the “Cash Flow Method," This is a method of developing a reserve funding plan where the contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Richard Avelar & Associates prepared this Update w/ Site Visit Review for the January 1, 2015 - December 31, 2015 fiscal year. Peralta Creek Tower is a Condominium with a total of 42 Units. ‘The Reserve Study is not an engineering report, and no destructive testing was performed, ‘The costs outlined in the study are for budgetary and planning purposes only, and actual bid costs would depend upon the defined scope of work at the time repairs are made. Also, any latent defects are excluded from this report. Funding Assessment Based on the 30 year cash flow projection, the Association's reserves are inadequately funded as the reserve fund ending balances may fail to remain positive throughout the replacement of all major components during the next 30 years. Additional reserve funding including some combination of increased contributions, special assessments and loans may be necessary to meet all reserve obligations. California statute imposes no reserve funding level requirements nor does it address funding level adequacy. verso 242014 1:86.46 AlchardAveor 8 Assalates 2014 1California Homeowner Summary FINAL Prepared forthe 2015 Racal Yeor 2o14 2015 Lune te current ay uty conerbatan eplacement — Usefel Remaining nde Fane ‘sad on Reserve Component Cost te tte alone Belonce Cash Flow Method 00106 - Mechanical 19,539 5-25 0-20 5,987 5,207 1,397 Equip. - Fire Satety/alarm System 01500 - Siding/Trim 4308 5-250 4,308 530 a8 (Repair/Replace) 02000 - Concrete (Partial 862 5502 5,197 7,103 4,569 Replacement) 02500 - 2,500 25-25 0-0 2,500 ° ° Landings/Stairs/Raitings 03000 - Painting/Caulking: 52.264 5-10 0-0 52,264 7,559 6.359 Exterior 93400 - Door 54275 25-25 0-22 34,736 132,267 2,404 Repair/Replacement 03500 - Painting: Interior «17,879 SSD 10,728 14,661 3,240 04500 - Decks/Balcor 60521 1010 7-7 18,156 24,814 6,203, 05000 - Roofing 316,590 3-45 (0-22 243,892 261,872 14,087 411000 - Gate Equipment / 33,238 15-25 0-23 12,123 20,526 4,782 Entry System 18000 - Landscaping 2602 1545 12-42 538 736 208 19000 - Fencing 4668 5250223 1,569 2a77 S61 (Repair/Replace) 20000 - Lighting 34034 15:20 3-46 12,753 35,037 2197 23500 - Elevator 321292 530013 295,184 14719 24000 - Common Area 53,306 10-35 24k 42,624 48,313 2371 Furnishings / Equipment 25000 - Flooring 59,567 1010 2-2 47,654 54,951 2,698 Totals $1,045,336 "$790,172 $801,573 $57,232 Estimated Ending Balance $57,628 $148,520 $213.56 Percent Funded 7.3% 18.5% (Unilmonth @ 42 verin S200 16a hans Alar Asoc 2018 2a 2 SIS Perak Creek Tower California Assessment and Reserve Funding Disclosure Summary 2015 FINAL November 5, 2014 eo «1) Te eguar assert er omersipiteretis © 3 AB? per momo the sl year Sonn any 32015 Hoe ane acenet ty 0 eo ype of oman re assessment ape os Ne en tena bandon ate este se. (2) _nesonsl velar o spec assessments that hav already Deon sched to be kngased o ina er Pecan they have been approved bythe board and/or members: ate “Amevatporonnwatio rst permentnerearevarsmarts | pag ot me attssret ance ee ‘ovaraie see nots rt eb re WA $0.00 WA Totat $0.00) Note: if assessments vary by the size or type of ownership Interest, the assessment applicable to this ‘nership interest may be found an page ofthe attached report. (3) Based upon the most recent reserve study and other information available to the board of Sirectors, will currently projected reserve account balances be sufficient at the end of each year to meet the association's abligation for repair and/or replacement of major components during the next 30 years? Yes, No_X Tis declosure has been prepared by Richard Aveler 8 Associates and has been reviewed and approved by Tre esstation’s board of crectors based upon the bese information avaliable tothe association atthe ume Grits preperation. ‘The accuracy of this Information over the next 30 years wil be dependent upon 2 ieipances wien are impossible to predict with specifiy, and will require future ation to adjust ‘Shscsaments over the period in accordance with the current projections and future developments, (4) _ Ifthe answer to (3) is no, what additional assessments or other contributions to reserves would benecessary to ensure that sufficient reserve funds will be available each year during the next 30 years that have not yet been approved by the board or the members Figeal years 2015 & 2016 $9,762 per ownership interest (total) (5) _ All major components are included in the reserve study and are Included in ts calculations. See next page §5300(b)(4), for any major component exclusions. {6) Based on the method of calculation in paragraph (4) of the subdivision (b) of section 5570, the ‘estimated amount required in the reserve fund at the end of the current fiscal year is $790,172, based in whale or in part on the last reserve study or update prepared by Richard Avelar & Associates as of June, 2014, The projected reserve fund cash balance at the end of the current fiscal year is 357.628 resulting in reserves beina 7.3% oercent funded at this date. ‘An alternate and generally accepted method of calculation has been utilized to determine future reserve Minanbution amounts. The reserve contribution for the next fiscal year has been determined using the Cash ‘Flow method of caleuation (see section Ill, Reserve Fund Balance Forecast). Tis ts @ method of Tevaloning 9 reserve funding pien where the contributions to the reserve fund are designated to offsot the Vonable annual expenditures from the reserve fund. Different reserve funding plans are tested against the “nticipated schedule of reserve expenses unt Uie desired funding goal is achieved. 1 fone Avatar & Associates 2014Clifornia Assessment and Reserve Funding Disclosure Summary 2035 (2) _ Based on the method of calculation in paragraph (4) of subdivision (b) of section 5570 of the Civil Code, the estimated amount required in the reserve fund at the end of each of the next five ‘budget years is presented in column (b) ‘Fully Funded Balance’ in the table immediately below; and the projected reserve fund cash balance in each of those years, taking into account only assessments already approved and other known revenues, is presented in column (c) ‘Reserve Ending Balanc leaving the reserve at percent funding as presented in column (d) "Percent Funded! in each of the respective years. Fiscal | Fully Funded | Reserve Percent Year Balance | Ending Balance | Funded — | (a) o | © @ | 2015 3601,573 $148,520 16.5% 2016 $711,909 $190,192 16.3% 2017 97,618 $22,493 4% [7 208 $384,960 $106,068 38.1% (P2018 $461,212 3165,408 35.9% If the reserve funding plan approved by the association is Implemented, the projected fund cash balance in each of those years will be the amounts presented in column (c) 'Reserve Ending Balance’ in the table immediately above, leaving the reserve at percent funding as presented in column (d) ‘Percent Funded! in each of the respective years. NOTE: The financial representations set forth in this summary are based on the best estimates of the preparer at that time. The estimates are subject to change. At the time this summary was prepared, the assumed long-term before-tax interest rate earned on reserve funds was 1.50% per year, and ‘the assumed long-term inflation rate to be applied to major component repair and replacement costs was 2.50% per year. Additional Disclosures {§5565(d) The current deficiency in reserve funding as of December 31, 2015 Is $15,549 per ownership interest (average). ‘This 1s calculated as the current estimate of the amount of cash reserves necessary as of the end of the {scal year for which the study is prepared, les, the amount of accumulated cash reserves actually (Projected to be) set aside to repatr, replace, restore, or maintain the major components. Deficiency = ‘Ownership Interest Quantity {§5300(b)(4) The current board of directors of the association has not deferred or determined to not undertake repairs or replacements over the next 30 years. NA NA §5300(b)(5) The board of directors as of the date of the study does anticipate the levy of a special assessment for the repair, replacement, or restoration of the major components. 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