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JEFF SAMDAL & ASSOCIATES, INC. | WOODINVILLE, WA | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
PROFESSIONAL RESERVE STUDY
Seavue Condominiums130 - 5th Avenue South, Edmonds, WA 98020
For:
Seavue Homeowners Association c/o Jay Grant
Board President (202) 351-9399
Prepared By:
Jeff Samdal, PE, RS, PRA jeff@samdalassoc.com
(206) 412-4305
Date Prepared:
November 25, 2018
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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TABLE OF CONTENTS
TABLE OF CONTENTS .................................................................................................................2
1.0 EXECUTIVE SUMMARY .......................................................................................................4
1.1 Disclosures Required by State of WA RCW 64.90.550 ........................................................4
1.2 General Description of Property ............................................................................................4
1.3 Immediate Necessary Capital Expenditures ..........................................................................4
Table 1.3: Summary of Immediate Necessary Capital Expenditures ..................................... 4 1.4 Current Status of Capital Reserve Fund ................................................................................5
Table 1.4: Current Status of the Reserve Fund ....................................................................... 5 1.5 Recommendations and Assumptions for Future Reserve Contributions ...............................6
Table 1.5: Recommendations and Assumptions for Future Reserve Contributions ............... 6 2.0 RESERVE STUDY BACKGROUND ......................................................................................7
2.1 Purpose of This Level 1 Reserve Study .................................................................................7
2.2 Washington State RCW 64.90.550 ........................................................................................7
2.3 Scope and Methodology ........................................................................................................8
2.4 Sources of Information ..........................................................................................................9
2.5 Definitions .............................................................................................................................9
2.6 Frequently Asked Questions About Reserve Studies ..........................................................10
3.0 PHYSICAL ANALYSIS .........................................................................................................12
3.1 Component Assessment and Valuation ...............................................................................12
Table 3.1A: Component Assessment and Valuation ............................................................ 13 Table 3.1B: Table of Categorized Expenses over the Duration of the Study ....................... 15 Figure 3.1B: Pie Chart of Categorized Expenses over the Duration of the Study ................ 15
3.2 Site .......................................................................................................................................16
3.3 Structure ...............................................................................................................................20
3.4 Roofing ................................................................................................................................21
3.5 Exterior ................................................................................................................................23
3.6 Electrical Systems ................................................................................................................26
3.7 Plumbing Systems ................................................................................................................26
3.8 HVAC Systems ....................................................................................................................27
3.9 Elevators ..............................................................................................................................27
3.10 Fire Detection and Suppression .........................................................................................29
3.11 Common Interior Finishes .................................................................................................30
3.12 Miscellaneous Mechanical .................................................................................................32
3.13 Amenities ...........................................................................................................................32
3.20 Summary of Annual Anticipated Expenses .......................................................................33
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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4.0 FINANCIAL ANALYSIS .......................................................................................................40
4.1 Current Financial Information and Current Funding Plan ...................................................40
4.2 Recommended Reserve Funding Plan .................................................................................40
4.3 Other Required Funding Plan Options .................................................................................42
4.4 Assumptions for Future Interest Rate and Inflation .............................................................43
4.5 Annual Fund Balances; Annual Funding Table and Figures ...............................................43
Figure 4.5A-1 Comparison of Funding Plans – Reserve Fund Balances Through 2048 ...... 50 Figure 4.5A-2 Comparison of Funding Plans – Reserve Fund Balances Through 2028 ...... 50 Figure 4.5B Comparison of Funding Plans -- Association Contributions to Reserve Fund by Year ....................................................................................................................................... 51 Figure 4.5C Comparison of Funding Plans – Percentage of Full Funding by Year ............. 51
4.6 Other Common Funding Methods .......................................................................................52
5.0 LIMITATIONS ........................................................................................................................53
APPENDIX ....................................................................................................................................54
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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1.0 EXECUTIVE SUMMARY 1.1 DISCLOSURES REQUIRED BY STATE OF WA RCW 64.90.550 The undersigned makes the following disclosures required by RCW 64.90.550 to establish that this Reserve Study meets all
requirements of the Washington Uniform Common Interest Ownership Act, Chapter 64.90 RCW:
a. This Reserve Study was prepared with the assistance of a reserve study professional and that professional was
independent;
b. This Reserve Study includes all information required by RCW 64.90.550 Reserve Study – Contents; and
c. This reserve study should be reviewed carefully. It may not include all common and limited common element
components that will require major maintenance, repair, or replacement in future years, and may not include
regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to
include a component in a reserve study, or to provide contributions to a reserve account for a component, may,
under some circumstances, require the association to (1) defer major maintenance, repair, or replacement, (2)
increase future reserve contributions, (3) borrow funds to pay for major maintenance, repair, or replacement, or
(4) impose special assessments for the cost of major maintenance, repair, or replacement.
1.2 GENERAL DESCRIPTION OF PROPERTY The subject property is approximately 0.75 acres and is located on the west side of 5th Avenue South in downtown Edmonds.
There is one 3‐story building containing 18 residential units. According to Snohomish County Records, the property was
constructed in 1979. The property slopes down to the west and consists of an asphalt parking lot and mature landscaping outside
of the building itself. Adjacent to the property there are other condominiums and apartment buildings.
The roofs of this building are flat and are surfaced with single‐ply 60‐mil PVC. The exterior of this building is clad with a
combination of stucco and fiber‐cement lap siding, with a small amount of rock veneer at the main east entrance. The windows
of this building are primarily aluminum frame windows that are primarily original. The decks are solid membrane decks that are
surfaced with elastomeric deck coating.
Like all properties, this property will require capital maintenance. We have itemized areas of capital maintenance that we
anticipate over the next thirty (30) years along with estimated costs and estimated schedule of repair/replacement.
1.3 IMMEDIATE NECESSARY CAPITAL EXPENDITURES Table 1.3 below shows the items that are in need of action immediately or within the near future. This is a summary; all tasks
are explained in greater detail in Section 3.0 Physical Analysis.
Table 1.3: Summary of Immediate Necessary Capital Expenditures
Component Cost Urgency Section
Several scopes of work occurring in 2018/2019
listed in Table 3.1A
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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1.4 CURRENT STATUS OF CAPITAL RESERVE FUND Table 1.4 below shows the current status of the Capital Reserve Fund and how it relates to Full Funding. The current Reserve
Fund data was provided to us by Jay Grant.
Table 1.4: Current Status of the Reserve Fund
Current Reserve Balance $77,747 as of October 31, 2018
Current Annual Reserve Fund Contribution $39,130
Average Per Unit Per Month $181.16
Planned Special Assessment(s) N/A
Balance Required for Full Funding $197,570
Current Percentage of Full Funding 39.4%
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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1.5 RECOMMENDATIONS AND ASSUMPTIONS FOR FUTURE RESERVE CONTRIBUTIONS The following table is a summary of our assumptions and several options that we have provided for funding contributions to the
Reserve Fund. This is only a summary table; for a detailed view of our recommended funding plans, please see section 4 of this
report.
Table 1.5: Recommendations and Assumptions for Future Reserve Contributions
Assumed Average Future Inflation Rate over 30 Years 3%
Assumed Average Future Interest Rate over 30 Years 3%
Option 1 – Immediate Full Funding
Immediate Special Assessment Required IF the Association is to be
Fully Funded Immediately $119,823
Average Initial Special Assessment per Unit $6,657
Annual Reserve Fund Contribution Required for the Reserve Fund
to remain Fully Funded $40,742
Average Contribution per Unit per Month $188.62
Option 2 – Path to Full Funding in 5 Years
Annual Reserve Fund Contribution Required for the Reserve Fund
to be Fully Funded in 5 years
$66,144 of which $25,402 will be
“make‐up” funding
Average Contribution per Unit per Month $306.22
Option 3 ‐ Path to Full Funding in 10 Years – RECOMMENDED PLAN BY JEFF SAMDAL & ASSOCIATES
Annual Reserve Fund Contribution Required for the Reserve Fund
to be Fully Funded in 10 years
$54,380 of which $13,638 will be
“make‐up” funding
Average Contribution per Unit per Month $251.76
Option 4 ‐ Path to Full Funding in 30 Years*
Annual Reserve Fund Contribution Required for the Reserve Fund
to be Fully Funded in 30 years
$46,677 of which $5,935 will be
“make‐up” funding
Average Contribution per Unit per Month $216.10
Option 5 – Baseline Funding*
Annual Reserve Fund Contribution Required for Baseline Funding
(Keeping the Reserve Fund above Zero over the 30 Year Period) $38,978
Average Contribution per Unit per Month $180.45
*These funding levels are required by WA State RCW 64.90.550. They are “bare minimum” funding plans and therefore carry a
higher level of risk. Because of this, they are not recommended by Jeff Samdal & Associates.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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2.0 RESERVE STUDY BACKGROUND 2.1 PURPOSE OF THIS LEVEL 1 RESERVE STUDY The primary purpose of this Level 1 Reserve Study is to provide the Association with a planning and budgeting tool to adequately
maintain the property 30 years into the future without unexpected special assessments. This study is intended to provide the
Association with an understanding of their property and to bring to light necessary immediate expenditures and reasonably
anticipated future capital expenses that should be addressed.
Associations have a responsibility to their members to adequately maintain their properties and our Reserve Studies provide our
clients with the tools to implement capital maintenance. When small issues and maintenance items are addressed prior to
becoming larger problems, there is typically a significant overall savings for a property owner. Properly maintained properties
maintain higher property values than those with an abundance of deferred maintenance.
An additional benefit of this Reserve Study is that it is one of the qualifications required for Associations to obtain FHA approval
(which is very helpful in selling or refinancing individual units). Many other sources of funding are also beginning to require them
as well.
2.2 WASHINGTON STATE RCW 64.90.550 As of July 1, 2018, WA State RCW 64.90.550 defined a Reserve Study in WA State as the following:
(1) Any reserve study is supplemental to the association's operating and maintenance budget.
(2) A reserve study must include:
(a) A reserve component list, including any reserve component, the replacement cost of which exceeds one
percent of the annual budget of the association, excluding contributions to the reserves for that reserve
component. If one of these reserve components is not included in the reserve study, the study must explain
the basis for its exclusion. The study must also include quantities and estimates for the useful life of each
reserve component, the remaining useful life of each reserve component, and current major replacement
costs for each reserve component;
(b) The date of the study and a disclosure as to whether the study meets the requirements of this section;
(c) The following level of reserve study performed:
(i) Level I: Full reserve study funding analysis and plan;
(ii) Level II: Update with visual site inspection; or
(iii) Level III: Update with no visual site inspection;
(d) The association's reserve account balance;
(e) The percentage of the fully funded balance to which the reserve account
is funded;
(f) Special assessments already implemented or planned;
(g) Interest and inflation assumptions;
(h) Current reserve account contribution rates for a full funding plan and a baseline funding plan;
(i) A recommended reserve account contribution rate for a full funding plan to achieve one hundred percent
fully funded reserves by the end of the thirty‐year study period, a recommended reserve account
contribution rate for a baseline funding plan to maintain the reserve account balance above zero
throughout the thirty‐year study period without special assessments, and a reserve account contribution
rate recommended by the reserve study professional;
(j) A projected reserve account balance for thirty years based on each funding plan presented in the reserve
study;
This reserve study meets the qualifications of WA State RCW 64.90.550
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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(k) A disclosure on whether the reserve study was prepared with the assistance of a reserve study
professional, and whether the reserve study professional was independent; and
(l) A statement of the amount of any current deficit or surplus in reserve funding expressed on a dollars per
unit basis. The amount is calculated by subtracting the association's reserve account balance as of the date
of the study from the fully funded balance, and then multiplying the result by the fraction or percentage of
the common expenses of the association allocable to each unit; except that if the fraction or percentage of
the common expenses of the association allocable vary by unit, the association must calculate any current
deficit or surplus in a manner that reflects the variation.
(3) A reserve study must also include the following disclosure:
"This reserve study should be reviewed carefully. It may not include all common and limited common element
components that will require major maintenance, repair, or replacement in future years, and may not include regular
contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a
component in a reserve study, or to provide contributions to a reserve account for a component, may, under some
circumstances, require the association to (1) defer major maintenance, repair, or replacement, (2) increase future
reserve contributions, (3) borrow funds to pay for major maintenance, repair, or replacement, or (4) impose special
assessments for the cost of major maintenance, repair, or replacement."
2.3 SCOPE AND METHODOLOGY This Level 1 Reserve Study has been prepared based on Community Associations Institute (CAI) standards and our proposal to
the Association dated September 6, 2018, which was based on our correspondence with Jay Grant.
Information Gathering Our initial task was to gather information regarding the property such as financials, drawings, maintenance records, and historical
background. This Reserve Study is a reflection of the information provided to us.
Physical Analysis Following the initial correspondence regarding the property, we performed an inspection of the property on October 26, 2018 so
that we may provide an opinion of the current condition of the common building components. This is also the basis for our opinion
of the anticipated capital needs that the Association will be responsible for over the next 30 years. This was a visual inspection
and no invasive or destructive testing was performed. This visual inspection focused on the typical features of a building and
surrounding property such as structure, drainage, roof, exterior, electrical, plumbing, HVAC systems, and interior finishes. This
inspection was limited to accessible and visible areas.
The physical analysis included the following tasks:
1. Identification of Anticipated Capital Expenses: We consider anticipated capital expenses to be major expenses that
can be reasonably predicted. Anticipated capital expenses are not considered routine maintenance such as routine
landscaping or touch‐up paint; routine maintenance should be taken care of through an operating budget. Nor do we
consider anticipated capital needs to be expenditures that result from an accident or an unpredictable event, such as
flood damage or earthquake damage; these items should be paid for by insurance.
The general criteria that we used to define an anticipated capital expense that warranted inclusion on our Itemized
capital expenses is the following:
The component must be a common component that is the responsibility of the Association.
Repair or replacement of the component is significant and not budgeted for in the operating budget.
The component repair or replacement occurs within the period of this study.
2. Estimated Replacement Schedule: Our opinions of the various life expectancy estimates that we prepared are based
on a combination of the following:
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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National Association of Home Builders (NAHB) averages
Building Owners and Managers (BOMA) averages
Product vendors and suppliers
Our company database
3. Estimated Replacement Cost: Our opinions of the various costs for repair or replacement are based on a combination
of the following:
R.S. Means
Product vendors and suppliers
Our company database
4. Financial Analysis: We performed an analysis on the financial needs and current status at the property. The financial
analysis provides the following:
Forecasts the anticipated Capital Reserves necessary at the property over the next 30 years.
Projects future Capital Reserve balances and determines the appropriate funding levels necessary.
Reviews the current funding plan and current financial position.
Provides our recommended annual contribution to the Reserve Fund to maintain Full Funding.
2.4 SOURCES OF INFORMATION The following people provided us information for this study:
Jay Grant, Board President
The following documents were viewed as part of this study
Internal Reserve Fund Spreadsheet, prepared by Jay Grant, dated September 18, 2018
The physical inspection of the property occurred on the following date:
October 26, 2018
2.5 DEFINITIONS Assumed Inflation ‐ Our assumed inflation rate is our best guess of the long term average of the inflation rate over the next thirty
years; it is not based on the current Consumer Price Index (CPI). Our number is much closer to the historical average of the CPI
over the previous 25 years.
Capital Reserves Balance ‐ Actual or projected funds as of a particular point in time that the Association has identified for use to
defray the future repair or replacement of those major components which the Association is obligated to maintain. Also known
as reserves, reserve accounts, cash reserves.
Component ‐ An individual line item in the Reserve Study developed or updated in the physical analysis. These elements form
the building blocks of the Reserve Study. Components typically are: 1) Association responsibility, 2) with limited useful life
expectancies, 3) predictable remaining useful life expectancies, 4) above a minimum threshold cost, and 5) as required by local
codes.
Component Inventory ‐ The task of selecting and quantifying reserve components. This task is accomplished through onsite visual
observations, review of Association design and organizational documents, and a review of established Association precedents.
Deficit ‐ An actual (or projected) reserve balance less than the fully funded balance. The opposite would be a surplus.
Effective Age ‐ The difference between useful life and remaining useful life. Not always equivalent to chronological age, since
some components age irregularly. Used primarily in computation.
Financial Analysis ‐ The portion of a Reserve Study where current status of the reserves (measured as cash or percent funded)
and a recommended reserve contribution rate (reserve funding plan) are derived. The financial analysis is one of the two parts
of a Reserve Study.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Fully Funded ‐ 100% funded. When the actual (or projected) reserve balance is equal to the fully funded balance.
Fully Funded Balance (FFB) ‐ Total accrued depreciation. An indicator against which actual (or projected) reserve balance can be
compared. In essence, it is the reserve balance that is proportional to the current Repair/replacement cost and the fraction of
life “used up”. This number is calculated for each component, them summed together for an Association total.
Percent Funded ‐ The ratio, at a particular point of time (typically the beginning of the fiscal year), of the actual (or projected)
reserve balance to the fully funded balance, expressed as a percentage.
Special Assessment ‐ An assessment levied on the members of an Association in addition to regular assessments. Special
assessments are often regulated by governing documents or local statutes.
2.6 FREQUENTLY ASKED QUESTIONS ABOUT RESERVE STUDIES
What is a reserve study? Reserve studies are comprehensive reports that are used as budget planning tools that will assess the current financial health of
the reserve fund as well as create a plan for future funding to offset anticipated major future common area expenditures.
According to Community Association Institute's Best Practices, Reserve Studies/Management: “There are two components of a
reserve study—a physical analysis and a financial analysis. During the physical analysis, a reserve provider evaluates information
regarding the physical status and repair/replacement cost of the association’s major common area components. To do so, the
provider conducts a component inventory, a condition assessment, and life and valuation estimates. A financial analysis assesses
only the association’s reserve balance or fund status (measured in cash or as percent funded) to determine a recommendation
for an appropriate reserve contribution rate (funding plan)."
What are the different types of reserve studies? Reserve studies fit into one of three categories: Full; Update with Site Visit; and Update with No Site Visit. They are frequently
called Level 1, Level 2, and Level 3 respectively (as defined by Washington State RCW 64.90.550).
Level 1: A full reserve study – the reserve provider conducts a component inventory, a condition assessment (based
upon on‐site visual observations), and life and valuation estimates to determine both a fund status and a funding plan.
They typically extend 30‐years. A full reserve study must be in place before a Level 2 or Level 3 can take place.
Level 2: An update with site visit (on‐site review) ‐‐ the reserve study provider conducts a component inventory
(verification only, not quantification), a condition assessment (based on on‐site visual observations), and life and
valuation estimates to determine both a fund status and a funding plan. A Level 2 update is performed every third year,
with the first one scheduled 3 years after the Level 1 was completed.
Level 3: An update with no site visit (off‐site review) ‐‐ the reserve study provider conducts life and valuation estimates
to determine a fund status and a funding plan. A Level 3 update is performed annually, except in years when a Level 1
or Level 2 has been conducted.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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When should associations obtain reserve studies? Most association experts would agree that an initial full 30‐year reserve study should be conducted sooner rather than later if
one is not already in place. They are typically updated annually after that to account for things such as inflation and any
adjustments in funding levels, budgets, repairs or replacements.
If you follow Washington State RCW 64.90.555 (which we recommend), your reserve study schedule would look like this:
Year 1: Level 1 full 30‐year study
Years 2, 3: Level 3 annual updates
Year 4: Level 2 update with site visit
Years 5, 6: Level 3 annual updates
Year 7: Level 2 update with site visit
The cycle of Level 2 and Level 3 updates continues indefinitely. A Level 1 full study is not necessary after year 1.
What are the benefits of a Reserve Study? Benefits of reserve studies, in short, include improved property maintenance (and therefore value) as well as complying with the
law. In more detail:
Complying with Washington State law
View the rules regarding Reserve Studies and Reserve Accounts here:
http://app.leg.wa.gov/RCW/default.aspx?cite=64.90 ‐ Sections 535, 540, 545, 550, 555, and 560
Fulfilling lender requirements (such as FHA)
Many lenders are requiring up‐to‐date reserve studies that indicate adequate financial health before they lend. Having
a reserve study in place that shows a healthy funding plan before a homeowner finds a buyer could save significant
time in the closing process.
Help maintain the property's value and appearance
A reserve study helps maintain the property's value and the property owner's investment. By identifying and budgeting
for future repairs or replacement (anticipated capital expenditures), the property's common elements continue to look
attractive and well‐kept, adding to the community's overall quality of life. Many features, when properly maintained,
can also benefit from an extended lifespan resulting in overall cost savings to the owners. Well maintained properties
almost always have higher resale values than those that have been neglected.
Establishing sound financial planning and budget direction
A comprehensive reserve study lays out a schedule of anticipated major repairs or replacements to common property
elements and applies cost estimates to them. It typically spans a 30‐year period, and will serve as a financial planning
tool for the association to use when determining homeowners dues and contributions to the reserve fund.
Reducing the need for special assessments
An association that has properly implemented their reserve study will strategically collect fees over time from
homeowners (via monthly dues) rather than need large sums of cash unexpectedly (special assessments). Therefore,
the need for special assessments should be minimalized because expenses have already been planned for and the funds
exist when needed.
Fulfilling the board of directors' fiduciary responsibility
Board members of community associations have a fiduciary responsibility to their members. Directors are legally bound
to use sound business judgment in guiding the association and cannot ignore major capital expenditures or eliminate
them from the budget.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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3.0 PHYSICAL ANALYSIS 3.1 COMPONENT ASSESSMENT AND VALUATION The component assessment and valuation of the itemized capital expenses on this property was done by providing our opinion
of Useful Life, Remaining Useful Life, and Repair or Replacement Costs for the Reserve components. Table 3.1A lists this
component inventory, and is based on the information that we were provided and on onsite visual observations.
The remainder of “Section 3.0 Physical Analysis” details each of the items in Table 3.1A using narratives and photos. They are
meant to be read together.
Table 3.1B is a summary of expenses, grouped according to their expense category. Chart 3.1B is a pie chart illustrating the same.
Table 3.1A Key: Quantity ‐ The total quantity of each component.
Units ‐ SF = Square Feet SY = Square Yards LF = Lineal Feet
EA = Each LS = Lump Sum SQ = Roofing Square (10 ft X 10 ft)
Cost/Unit ‐ The cost of a component. The unit cost is multiplied by the component’s quantity to obtain the total
estimated replacement cost for the component.
Remaining Life – An opinion of the probable remaining life, in years, that a reserve component can be expected to
continue to serve its intended function. Replacements anticipated to occur in the initial or base year have “zero”
Remaining Life.
Useful Life ‐ Total Useful Life or Depreciable Life. An opinion of the total probable life, in years, that a reserve
component can be expected to serve its intended function in its present condition.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Table 3.1A: Component Assessment and Valuation
Note: All numbers provided are the engineer's opinion of probable life and cost in 2018 dollars. Exact numbers may vary.
Quantity Units Cost/UnitRemaining Life (Years)
Useful Life (Years)
Total CostCost per
Unit
Avg. Cost per Unit per Year
3.2 SITE
Asphalt overlay - phase 1 of 2 1 LS $41,000 0 30 $41,000 $2,278 $75.93
Asphalt overlay - phase 2 of 2 1 LS $25,000 1 30 $25,000 $1,389 $46.30
Asphalt repairs prior to resealing and overlay
381 SF $8.50 5 5 $3,239 $180 $35.98
Asphalt seal coating and restriping 12,700 SF $0.32 5 5 $4,064 $226 $45.16
Entry bridge - repair/replace 1 LS $3,700 18 20 $3,700 $206 $10.28
Fencing project at the southwest side of the property
1 LS $2,800 1 N/A $2,800 $156 N/A
Northeast drainage project - remaining cost to be paid
1 LS $18,000 1 N/A $18,000 $1,000 N/A
3.3 STRUCTURE
3.4 ROOFING
Resurface flat roofs with 60-mil PVC 120 SQ $1,500 30 30 $180,000 $10,000 $333.33
Replace skylights 9 EA $750 15 15 $6,750 $375 $25.00
Paint metal roofs with electrostatic coating
1 LS $12,000 9 10 $12,000 $667 $66.67
Replace chimney caps 6 EA $1,600 15 20 $9,600 $533 $26.67
3.5 EXTERIOR
Spot siding repair allotment prior to each painting cycle
1 LS $10,000 5 7 $10,000 $556 $79.37
Clean, caulk, and paint the exteriors of the stucco on the building and garage
11,700 SF $3.85 5 7 $45,045 $2,503 $357.50
Clean, caulk, and paint the exteriors of the James Hardie on the building and garage
11,500 SF $3.85 18 20 $44,275 $2,460 $122.99
Replace the front entrance door 1 EA $4,500 23 25 $4,500 $250 $10.00
Replace the auxiliary entrance doors to the buildings
3 EA $4,500 5 25 $13,500 $750 $30.00
Replace wood garage doors 11 EA $1,850 5 25 $20,350 $1,131 $45.22
Replace metal garage doors 5 EA $1,850 23 25 $9,250 $514 $20.56
Periodic unit common door/window replacement
4 EA $5,000 4 4 $20,000 $1,111 $277.78
Component
No structural expenditures budgeted
Complete replacement of the siding, stucco, and windows is not anticipated within the next 30 years
Individual decks are maintained by each individual homeowner
All landscaping expenses are paid for via the general operating budget
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Quantity Units Cost/UnitRemaining Life (Years)
Useful Life (Years)
Total CostCost per
Unit
Avg. Cost per Unit per Year
3.6 ELECTRICAL SYSTEMS
Replace the interior light fixtures 1 LS $5,000 28 30 $5,000 $278 $9.26
Replace the exterior building-mounted light fixtures
1 LS $1,500 18 20 $1,500 $83 $4.17
Replace the parking lot yard lights 1 LS $3,500 0 20 $3,500 $194 $9.72
Miscellaneous electrical systems expenditures
18 UNIT $150 5 5 $2,700 $150 $30.00
3.7 PLUMBING SYSTEMS
Miscellaneous plumbing systems expenditures
18 UNIT $300 5 5 $5,400 $300 $60.00
3.8 HVAC SYSTEMS
3.9 ELEVATORS
Elevator cab interior renovations 1 LS $6,000 20 30 $6,000 $333 $11.11
Elevator hoist and track - major maintenance
1 LS $45,000 20 30 $45,000 $2,500 $83.33
Elevator HPU and controls - major maintenance
1 LS $35,000 20 30 $35,000 $1,944 $64.81
Elevator door operator packages 1 LS $30,000 20 30 $30,000 $1,667 $55.56
3.10 FIRE DETECTION & SUPPRESSION
Replace the fire alarm control panel 1 EA $2,800 19 20 $2,800 $156 $7.78
3.11 COMMON INTERIOR FINISHES
Repaint common areas 6,800 SF $2.80 4 8 $19,040 $1,058 $132.22
Recarpet common areas 530 SY $45 12 16 $23,850 $1,325 $82.81
Remodel recreation room 1 LS $2,400 18 20 $2,400 $133 $6.67
Remodel recreation room bathroom 1 LS $2,000 18 20 $2,000 $111 $5.56
Replace common furnishings 1 LS $1,200 18 20 $1,200 $67 $3.33
3.12 MISCELLANEOUS MECHANICAL
Replace secured access control panel 1 EA $3,000 18 20 $3,000 $167 $8.33
Replace mailbox bank 1 LS $2,500 28 30 $2,500 $139 $4.63
Replace sump pump 1 EA $1,200 7 7 $1,200 $67 $9.52
3.13 AMENITIES
Average Cost Per Unit Per Year $2,198
No amenities not mentioned in other areas of this table
Component
We understand that all other anticipated elevator costs are covered under the maintenance contract with Schindler
There are no significant common HVAC systems on this property
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Table 3.1B: Table of Categorized Expenses over the Duration of the Study
Figure 3.1B: Pie Chart of Categorized Expenses over the Duration of the Study
CategoryTotal Expenditure over
30 YearsPercentage
Site $269,851 12.4%
Structure $0 0.0%
Roofing $543,742 24.9%
Exterior $812,432 37.3%
Electrical Systems $39,488 1.8%
Plumbing Systems $56,097 2.6%
HVAC Systems $0 0.0%
Elevators $209,509 9.6%
Fire Detection & Suppresion $4,910 0.2%
Common Interior Finishes $224,632 10.3%
Miscellaneous Mechanical $19,096 0.9%
Amenities $0 0.0%
TOTAL $2,179,757
Site
Roofing
Exterior
Electrical Systems Plumbing Systems
Elevators
Fire Detection & Suppresion
Common Interior Finishes
Miscellaneous Mechanical
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3.2 SITE
The address of this property is 1130 ‐ 5th Avenue South, Edmonds, WA 98020.
Aerial image of property (courtesy of Google Earth)
General Description of Site
The subject property is approximately 0.75 acres and is located on the west side of 5th Avenue South in downtown Edmonds.
There is one 3‐story building containing 18 residential units. According to Snohomish County Records, the property was
constructed in 1979. The property slopes down to the west and consists of an asphalt parking lot and mature landscaping outside
of the building itself. Adjacent to the property there are other condominiums and apartment buildings
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Asphalt
There is a parking lot on the north and west sides of the building that wraps around the south side of the building. The west side
of the parking was resurfaced in 2018 as Phase 1 of 2; however, this has yet to be paid for. We understand that Phase 2 will be
done in 2019.
In addition to asphalt repairs, starting in 2023, this asphalt should be emulsion seal coated every 5 years following any repairs
that are necessary. Following emulsion seal coating, the asphalt and curbing should be painted with any appropriate fire lane
markings that are recommended.
Storm System
Periodic cleanout and miscellaneous maintenance of the storm drains should be expected. However, we have assumed that
storm drain cleanout will be an operational expense.
Landscaping
Generally, landscaping is maintained via the operating budget. We understand that all landscaping expenses are paid for via the
general operating budget.
West Area of Parking Lot that was Recently Re‐Paved East Side of Parking Lot to be Re‐Paved in 2019
South Parking Lot that was Recently Re‐Paved East Side of Parking Lot to be Re‐Paved in 2019
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Fencing
There is chain link fencing on portions of the south side of the building and all of the north side of the property. We understand
that the Board will be adding additional fencing along the southwest side of the building as part of a special project. Once the
forthcoming project is completed, this chain link fencing should have a lifespan beyond the 30‐year duration of this study.
South Chain Link Fence North Chain Link Fence
Entry Bridge
There is an entry bridge that was constructed in 2016. We assume that this entry bridge will have a lifespan of 20 years.
Entry Bridge
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Retaining Walls
There is a rock wall at the south side of the property as well as a new concrete block retaining wall that was constructed in 2018.
It is possible that some repairs will be made, but it is unlikely. Therefore, no funding has been allotted for these retaining walls.
Rock Wall Rock Wall
Concrete Block Retaining Wall
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Northeast Drainage Project
We understand that the Board plans on commencing a drainage project at the northeast corner of the building in 2019. We
understand that this project is partially paid for already, with approximately $18,000 remaining to be paid. This will be a one‐
time expense.
East Side of Building in Need of Drainage Mitigation
3.3 STRUCTURE The foundation of this building was only partially visible and no structural drawings were available for our review. The foundation
of this building consists of concrete foundation walls and interior concrete piers. None of the footings were visible during our
inspection. The superstructure of this building is likely constructed from wood framing.
Based on the visual evidence, there are no anticipated capital expenditures associated with the structure of this building during
the next 30 years.
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3.4 ROOFING The roofs of the building and the the garage are flat and are surfaced with single‐ply 60‐mil PVC. These roofs were resurfaced in
2018 under our direction and carry a 20‐year warranty; though they have a typical lifespan of approximately 30 years. This roof
resurfacing included replacement of all fixed vents and flashings and these elements should have a corresponding 30 year
lifespan.
As part of the roof resurfacing project, sloped polyisocyanurate foam was installed below this roof surface so that the drainage
slope complies with IBC standards.
There are also 9 skylights on this roof that were replaced in 2018. We have budgeted for replacement of the skylights every 15
years; however, this may occur earlier if the seals fail.
There are also standing seam metal roofs on this building. We have budgeted for these metal roofs to be cleaned and
electrostatically painted every 10 years.
There are 6 chimneys containing 18 flues with flue caps on this roof. We have assumed that the chimney caps will have a total
lifespan of 20 years. We understand that the flues are the responsibility of the individual homeowners to maintain.
Roof of Building Roof of Building
Typical Roof Turbines Typical Skylights
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Typical Chimney Typical Internal Drain
Garage Roof
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3.5 EXTERIOR The exterior of this building is clad with a combination of stucco and fiber‐cement lap siding, with a small amount of rock veneer
at the main east entrance. The windows of this building are primarily aluminum frame windows that are primarily original. The
decks are solid membrane decks that are surfaced with elastomeric deck coating.
Spot Siding and Trim Replacement
We understand that the fiber‐cement siding on this building was installed in 2016. Typically, this siding and the building envelope
assembly is assumed to be a nominal 50‐year product and assembly. Therefore, the fiber‐cement siding is a very durable material
and should have a lifespan beyond the duration of this study. There will be a small amount of replacement necessary for cracked
pieces of fiber‐cement siding and trim periodically; however, this will be minor. Rather than budget for total replacement of this
siding and trim, we have included a spot siding and trim replacement line item on the same schedule as caulking and painting.
Clearly, the siding and trim replacement should occur prior to re‐caulking and re‐painting.
Stucco
There is stucco on the exterior of this building. Overall, this cladding looks like it is in good condition; however, the stucco should
be periodically inspected for visible defects. These types of inspections are typically paid for via the operating budget.
Exterior Re‐Painting and Re‐Caulking
New stucco does not require painting; however, it appears that this stucco has had some type of acrylic sealant in the past;
therefore, we have assumed that the entire building will be cleaned and painted at the same time to maximize mobilization
costs; however, clearly different products should be used for the siding and the stucco. The Board has scheduled painting of the
stucco every 7 years and painting of the James Hardie siding every 20 years.
Solid Membrane Decks
The solid membrane decks on this property are coated with elastomeric coating. We understand that maintenance of each
individual deck is the responsibility of each individual owner.
Windows and Sliding Glass Doors
The majority of the windows on this property are the original aluminum‐frame windows. We do not recommend replacing the
individual windows without corresponding siding/stucco replacement, which should not be necessary within the 30‐year duration
of this study.
We understand that periodic replacement of the failed window panes is the responsibility of individual homeowners.
We have budgeted for replacement of 4 sliding glass doors every 4 years.
Pedestrian Doors and Garage Doors
There is a main entrance door at the east side of the building, as well as 3 auxiliary entrances at the north, south, and east sides
of the building. We have assumed that all doors will be replaced every 25 years.
There are 16 single‐car garage doors on this building. The 5 garage doors on the west side of the building have been replaced
with new metal garage doors, while the other 11 garage doors are constructed of wood. The metal garage doors are much lighter
weight; ultimately all doors will need to be replaced (likely with metal). For budgeting purposes, we have assumed that the wood
garage doors will be replaced in 5 years and all of the garage doors will have a total lifespan of 25 years.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Front or East Side of Building South Side of Building
Garage Doors at the South Side of the Building Decks at the South Side of the Building
Rear or East Side of the Building North Side of the Building
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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Garage Doors at the North Side of the Building Typical Decks
Typical Deck Typical Deck Surface
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3.6 ELECTRICAL SYSTEMS The electrical systems on this property should be relatively low maintenance over the duration of this study. However, we have
budgeted for a small miscellaneous electrical allotment for funding associated with the general electrical systems on this
property. This allotment is $30 per unit per year for the miscellaneous electrical systems.
The interior and exterior electrical fixtures are both relatively new. The interior light fixtures should have a total lifespan of 30
years, while the exterior building mounted light fixtures should have total lifespan of 20 years.
While we were on site, the parking lot yard lights were in the process of being moved and replaced. We understand that this
project has not been paid for. These parking lot yard lights should also have a lifespan of 20 years.
Meter Bank Typical Exterior Light
Typical Common Interior Light
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3.7 PLUMBING SYSTEMS The plumbing system at this building should be relatively low maintenance. However, we have budgeted for periodic
expenditures with the plumbing system for miscellaneous expenses that tend to occur periodically. We have budgeted for $60
per unit per year for miscellaneous plumbing systems.
We understand individual water heaters provide hot water to each individual unit. These water heaters are not the responsibility
of the Homeowners Association.
3.8 HVAC SYSTEMS There are no significant common HVAC systems on this property.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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3.9 ELEVATORS The property is served by one Dover hydraulic elevator. The elevator is currently under contract with Schindler. The majority of
the maintenance items on this elevator will be covered under the service contract with Schindler as long as the various
components of this elevator are not considered “obsolete.” While we cannot determine precisely when this obsolescence will
happen, we estimate that this will occur next in approximately 20 years.
The elevator HPU, controls, and hoist/track system will require periodic maintenance and replacement of parts during the
duration of this study. This maintenance is often expensive and some of these expenses should be considered capital
expenditures. Typically, the elevator cabs are renovated every 20 to 30 years and we have planned for this renovation with
reserve funding. We have also budgeted for upgrade of the control systems, replacement of the door operator packages, and
for overhauls of the operators on a 30 year schedule.
Dover Hydraulic Power Unit for Elevator Schindler Maintenance Log
Interior of Elevator
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3.10 FIRE DETECTION AND SUPPRESSION This building has a central fire alarm system. The fire alarm system includes smoke and heat detectors, pull stations, audio‐video
annunciators (combination strobe and speaker), links to the fire sprinkler flow meters, and links to the elevator controls. Manual
pull stations are located at all exits, stairwell doors, and critical points within the building. Annunciator units are located in all
occupied spaces, rooms, corridors, and in the elevator. We have assumed that this system will be updated every 20 years.
There is not a fire suppression system in this building.
Fire Alarm Control Panel
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3.11 COMMON INTERIOR FINISHES The common areas of the interior will have to be maintained periodically. This includes the entrance lobby, the hallways, the
stairwells, and a recreation room. Our estimates for repainting and re‐carpeting assume that each task will be done throughout
the common areas in the building at the same time. The costs to repaint and re‐carpet each area independently will increase the
overall cost.
We understand that the front entrance lobby was renovated with new tile, and the interior of the common hallways and stairwells
were painted and re‐carpeted in 2014. We have assumed that interior painting will be done every 8 years. We have also budgeted
for replacement of the carpet every 16 years to coincide with painting. We have also assumed that the front entrance tile will
have a lifespan beyond the 30‐year duration of this study.
There is a recreation room with a bathroom. The Board already had a future budget for renovation of these areas including for
replacement of the common furnishings, which we have used in this study.
The interiors of each individual residential unit are the responsibility of each individual owner. Therefore, no reserve funding has
been allocated to these areas.
Entrance Lobby Floor 1 Hallway
Floor 2 Hallway One of Two Main Stairwells
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Basement Entrance Lobby Basement Hallway
Basement Stairwell Recreation Room
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3.12 MISCELLANEOUS MECHANICAL
Controlled Access System
There is a controlled access system with an intercom panel at the main entrance to this building that we understand was installed
in 2016. We have budgeted for replacement of the controlled access system intercom panel every 20 years.
Controlled Access Panel
Mailbox Bank
There is a mailbox bank at the east entrance to this building that we understand was installed in 2016. We have assumed that
this mailbox bank will have a total lifespan of 30 years.
Mailbox Bank
Sump Pump
We understand that there is a sump pump in the east crawlspace. We have assumed that this sump pump will have a typical
lifespan of 7 years.
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
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3.13 AMENITIES There are no amenities on this property that are not accounted for in other sections of this report.
3.20 SUMMARY OF ANNUAL ANTICIPATED EXPENSES Using the conclusions described throughout “Section 3.0 Physical Analysis”, the following Table 3.20 lists the annual anticipated
capital expenses for each reserve item in the year that we believe is most probable. All of these anticipated expenses already
have inflation factored into them at the assumed level that is listed in “Section 4.3 Assumptions for Future Interest Rate and
Inflation”.
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
3.2 SITE
Asphalt overlay - phase 1 of 2 $41,000
Asphalt overlay - phase 2 of 2 $25,750
Asphalt repairs prior to resealing and overlay $3,754 $4,352
Asphalt seal coating and restriping $4,711 $5,462
Entry bridge - repair/replace
Fencing project at the southwest side of the property $2,884
Northeast drainage project - remaining cost to be paid $18,540
3.3 STRUCTURE
No structural expenditures budgeted
3.4 ROOFING
Resurface flat roofs with 60-mil PVC
Replace skylights
Paint metal roofs with electrostatic coating $15,657
Replace chimney caps
3.5 EXTERIOR
Spot siding repair allotment prior to each painting cycle $11,593 $14,258
Clean, caulk, and paint the exteriors of the stucco on the building and garage
$52,220 $64,223
Clean, caulk, and paint the exteriors of the James Hardie on the building and garage
Replace the front entrance door
Replace the auxiliary entrance doors to the buildings $15,650
Replace wood garage doors $23,591
Replace metal garage doors
Periodic unit common door/window replacement $22,510 $25,335 $28,515
3.6 ELECTRICAL SYSTEMS
Replace the interior light fixtures
Miscellaneous electrical systems expenditures $3,130 $3,629
Action Required
TABLE 3.20: ANNUAL CAPITAL EXPENSES
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Action Required
TABLE 3.20: ANNUAL CAPITAL EXPENSES
3.7 PLUMBING SYSTEMS
Miscellaneous plumbing systems expenditures $6,260 $7,257
3.8 HVAC SYSTEMS
There are no significant common HVAC systems on this property
3.9 ELEVATORS
Elevator cab interior renovations
Elevator hoist and track - major maintenance
Elevator HPU and controls - major maintenance
Elevator door operator packages
3.10 FIRE DETECTION & SUPPRESSION
Replace the fire alarm control panel
3.11 COMMON INTERIOR FINISHES
Repaint common areas $21,430 $27,146
Recarpet common areas $34,004
Remodel recreation room
Remodel recreation room bathroom
Replace common furnishings
3.12 MISCELLANEOUS MECHANICAL
Replace secured access control panel
Replace mailbox bank
Replace sump pump $1,476
3.13 AMENITIES
No amenities not mentioned in other areas of this table
ANNUAL EXPENSES BY YEAR $41,000 $47,174 $0 $0 $43,940 $120,909 $0 $1,476 $25,335 $15,657 $20,700 $0 $168,147
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
3.2 SITE
Asphalt overlay - phase 1 of 2
Asphalt overlay - phase 2 of 2
Asphalt repairs prior to resealing and overlay
Asphalt seal coating and restriping
Entry bridge - repair/replace
Fencing project at the southwest side of the property
Northeast drainage project - remaining cost to be paid
3.3 STRUCTURE
No structural expenditures budgeted
3.4 ROOFING
Resurface flat roofs with 60-mil PVC
Replace skylights
Paint metal roofs with electrostatic coating
Replace chimney caps
3.5 EXTERIOR
Spot siding repair allotment prior to each painting cycle
Clean, caulk, and paint the exteriors of the stucco on the building and garageClean, caulk, and paint the exteriors of the James Hardie on the building and garage
Replace the front entrance door
Replace the auxiliary entrance doors to the buildings
Replace wood garage doors
Replace metal garage doors
Periodic unit common door/window replacement
3.6 ELECTRICAL SYSTEMS
Replace the interior light fixtures
Miscellaneous electrical systems expenditures
Action Required
TABLE 3.20: ANNUAL CAPITAL EXPENSES
2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
$5,045 $5,849 $6,781
$6,332 $7,340 $8,509
$6,299
$10,516
$21,042
$14,956
$17,535
$78,987
$75,375
$8,881
$18,256
$32,094 $36,122 $40,656
$4,207 $4,877 $5,653
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
Action Required
TABLE 3.20: ANNUAL CAPITAL EXPENSES
3.7 PLUMBING SYSTEMS
Miscellaneous plumbing systems expenditures
3.8 HVAC SYSTEMS
There are no significant common HVAC systems on this property
3.9 ELEVATORS
Elevator cab interior renovations
Elevator hoist and track - major maintenance
Elevator HPU and controls - major maintenance
Elevator door operator packages
3.10 FIRE DETECTION & SUPPRESSION
Replace the fire alarm control panel
3.11 COMMON INTERIOR FINISHES
Repaint common areas
Recarpet common areas
Remodel recreation room
Remodel recreation room bathroom
Replace common furnishings
3.12 MISCELLANEOUS MECHANICAL
Replace secured access control panel
Replace mailbox bank
Replace sump pump
3.13 AMENITIES
No amenities not mentioned in other areas of this table
ANNUAL EXPENSES BY YEAR
2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043
$8,413 $9,753 $11,306
$10,837
$81,275
$63,214
$54,183
$4,910
$34,388
$4,086
$3,405
$2,043
$5,107
$1,815 $2,232
$0 $1,815 $49,469 $32,094 $0 $96,315 $122,474 $307,838 $2,232 $0 $27,137 $40,656 $32,249
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
3.2 SITE
Asphalt overlay - phase 1 of 2
Asphalt overlay - phase 2 of 2
Asphalt repairs prior to resealing and overlay
Asphalt seal coating and restriping
Entry bridge - repair/replace
Fencing project at the southwest side of the property
Northeast drainage project - remaining cost to be paid
3.3 STRUCTURE
No structural expenditures budgeted
3.4 ROOFING
Resurface flat roofs with 60-mil PVC
Replace skylights
Paint metal roofs with electrostatic coating
Replace chimney caps
3.5 EXTERIOR
Spot siding repair allotment prior to each painting cycle
Clean, caulk, and paint the exteriors of the stucco on the building and garageClean, caulk, and paint the exteriors of the James Hardie on the building and garage
Replace the front entrance door
Replace the auxiliary entrance doors to the buildings
Replace wood garage doors
Replace metal garage doors
Periodic unit common door/window replacement
3.6 ELECTRICAL SYSTEMS
Replace the interior light fixtures
Miscellaneous electrical systems expenditures
Action Required
TABLE 3.20: ANNUAL CAPITAL EXPENSES
2044 2045 2046 2047 2048
$99,518
$7,861
$9,864
$436,907
$16,384
$28,279
$21,566
$97,144
$32,768
$49,395
$45,759
$11,440
$6,554
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
Action Required
TABLE 3.20: ANNUAL CAPITAL EXPENSES
3.7 PLUMBING SYSTEMS
Miscellaneous plumbing systems expenditures
3.8 HVAC SYSTEMS
There are no significant common HVAC systems on this property
3.9 ELEVATORS
Elevator cab interior renovations
Elevator hoist and track - major maintenance
Elevator HPU and controls - major maintenance
Elevator door operator packages
3.10 FIRE DETECTION & SUPPRESSION
Replace the fire alarm control panel
3.11 COMMON INTERIOR FINISHES
Repaint common areas
Recarpet common areas
Remodel recreation room
Remodel recreation room bathroom
Replace common furnishings
3.12 MISCELLANEOUS MECHANICAL
Replace secured access control panel
Replace mailbox bank
Replace sump pump
3.13 AMENITIES
No amenities not mentioned in other areas of this table
ANNUAL EXPENSES BY YEAR
2044 2045 2046 2047 2048
$13,107
$43,562
$54,567
$5,720
$2,746
$118,710 $0 $163,793 $28,279 $672,358
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 40 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
4.0 FINANCIAL ANALYSIS The financial analysis in this Reserve Study is a proprietary system that was developed by Jeff Samdal & Associates. We have
provided the funding method that we believe will most adequately fund the reserves of this Association.
4.1 CURRENT FINANCIAL INFORMATION AND CURRENT FUNDING PLAN The Association’s Reserve Fund balance was $77,747 as of October 31, 2018 (Balance provided by Jay Grant). According to our
calculations detailed in this report, the Reserve Fund balance required for “Full Funding” of this property at this time is $197,570.
Therefore, the property is 39.4% funded.
The current annual contribution to the reserve fund is $39,130, which averages $181.16 per unit
per month. For the purpose of comparison to our recommended funding plans, we have assumed
that the Association will increase their current reserve fund contribution by 3% annually to account
for inflation. This is shown in Table 4.5 “Reserve Fund Balance Sheet” (Section 4.5) and all
subsequent figures.
This funding contribution is not adequate to obtain “Full Funding” of this property.
4.2 RECOMMENDED RESERVE FUNDING PLAN Full Funding is the ideal position for any property and represents a strong financial position. We recommend that all properties
be Fully Funded, as Full Funding allows Associations to maintain their properties adequately and minimizes their risk of unplanned
special assessments.
Ideally, the Association should be Fully Funded immediately; however, we recognize that financial realities can sometimes make
this difficult. Therefore, we have provided three different plans to get the Association Fully Funded within three different time
frames: Immediately, Within Five Years, and Within Ten Years. It is to the Association’s benefit to be Fully Funded as soon as
possible.
Our funding recommendations are as follows:
Option One: Immediate Full Funding
If the Association desires to be Fully Funded immediately, then based on the anticipated
expenditures the Association will need to immediately contribute a total of $119,823 to
the Reserve Fund. This translates to an average of $6,657 per unit. Following this initial
contribution, the funding plan necessary to maintain a Fully Funded Capital Reserve Fund
for the duration of this study will be a total property contribution of $40,742 per year in
the initial year, which translates to $188.62 per unit per month. This annual contribution
will need to be increased 3% each subsequent year to maintain Full Funding and to
account for inflation.
For a detailed look at the annual funding contribution necessary per year, see Table 4.5
“Reserve Fund Balance Sheet” (Section 4.5).
‐OR‐
This property is currently
39.4% funded.
Option One
Average Immediate Contribution Per Unit:
$6,657
Avg. Contribution Thereafter Per Unit Per Month:
2019 $188.62
(with 3% annual increase thereafter)
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 41 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
Option Two: Full Funding Within Five Years
There is currently a “full funding” deficiency of $119,823. This option makes up this
deficiency over the next five years. Starting in 2019 for five years through 2023, the
Association will make up their Reserve Fund deficiency by contributing $66,144 annually
(which includes $25,402 in make‐up funds and $40,742 in capital maintenance funds that
will increase annually with inflation). This translates to an average of $306.22 per unit per
month in the initial year.
If this plan is followed, the Association will be Fully Funded by the start of 2024. From
this point on, the funding plan will be identical to funding plan listed above in the
“Immediate Full Funding” option to maintain Full Funding. This means that the
Association will reduce their Reserve Fund contribution to $47,231 in 2024, which
translates to $218.66 per unit per month. This 2024 annual contribution will need to be
increased 3% each subsequent year (to account for inflation) for the duration of this 30
year study to maintain Full Funding and to account for inflation.
For a detailed look at the annual funding contribution necessary per year, see Table 4.5
“Reserve Fund Balance Sheet” (Section 4.5).
‐OR‐
Option Three: Full Funding Within Ten Years – RECOMMENDED PLAN
There is currently a “full funding” deficiency of $119,823. This option makes up this
deficiency over the next ten years. Starting in 2019 for ten years through 2028, the
Association will make up their Reserve Fund deficiency by contributing $54,380 annually
(which includes $13,638 in make‐up funds and $40,742 in capital maintenance funds that
will increase annually with inflation). This translates to an average of $251.76 per unit
per month in the initial year.
If this plan is followed, the Association will be Fully Funded by the start of 2029. From
this point on, the funding plan will be identical to funding plan listed above in the
“Immediate Full Funding” option to maintain Full Funding. This means that the
Association will reduce their Reserve Fund contribution to $54,754 in 2029, which
translates to $253.49 per unit per month. This 2029 annual contribution will need to be
increased 3% each subsequent year for the duration of this 30 year study to maintain Full
Funding and to account for inflation.
For a detailed look at the annual funding contribution necessary per year, see Table 4.5
“Reserve Fund Balance Sheet” (Section 4.5).
Other funding options are also possible. Section 4.6 details other common funding methods as well. It is up to the Association to
decide which funding option is best for them.
Option Two
Average Contributions Per Unit Per Month:
2019 $306.22
Increasing at 3% per year through:
2023 $329.90
At year end, full funding will be achieved. Then:
2024 $218.66
(with 3% annual increase thereafter)
Option Three
Average Contributions Per Unit Per Month:
2019 $251.76
Increasing at 3% per year through:
2028 $309.25
At year end, full funding will be achieved. Then:
2029 $253.49
(plus 3% annual increase thereafter)
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 42 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
4.3 OTHER REQUIRED FUNDING PLAN OPTIONS Per Washington State RCW 64.90.550, our Reserve Study is required to provide the following funding plans:
30‐Year Make up ‐ Funding Plan necessary for the Association Reserve Fund to reach a Full Funding Level in 30 years.
Baseline Funding ‐ Minimum level of funding required in order to maintain the Reserve Fund above zero while paying
for all components listed in Table 3.1 ‐ Component Assessment and Valuation Table.
Special Note: Because these are “bare minimum” funding options that increase an Association’s risk for special assessments (and
financial instability), we do not recommend either of these funding options. We recommend that the Association obtain a level of
Full Funding as soon as possible to ensure that the Association has the resources necessary to adequately maintain its collective
property and minimize the burden of special assessments.
These required options are as follows:
Option Four: Full Funding in 30 Years
There is currently a “full funding” deficiency of $119,823. This option makes up this
deficiency over the next thirty years. Starting in 2019 for thirty years through 2048, the
Association will make up their Reserve Fund deficiency by contributing $46,677 annually
(which includes $5,935 in make‐up funds and $40,742 in capital maintenance funds that
will increase annually with inflation). This translates to an average of $216.10 per unit per
month in the initial year.
If this plan is followed, the Association will be Fully Funded by the start of 2049.
For a detailed look at the annual funding contribution necessary per year, see Table 4.5
“Reserve Fund Balance Sheet” (Section 4.5).
‐OR‐
Option Five: Baseline Funding – Keeping Reserve Balance above Zero
The funding plan necessary to maintain the Reserve Fund above zero for the duration of
this study will be an annual contribution of $38,978 per year in the initial year, which
translates to $180.45 per unit per month. This annual contribution will need to be
increased 3% each subsequent year to maintain the Reserve Fund above zero and to
account for inflation.
For a detailed look at the annual funding contribution necessary per year, see Table 4.5
“Reserve Fund Balance Sheet” (Section 4.5).
Option Four
Average Contributions Per Unit Per Month:
2019 $216.10
Increasing at 3% per year through:
2048 $471.98
Option Five
Average Contributions Per Unit Per Month:
$180.45
(with 3% annual increase thereafter)
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 43 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
4.4 ASSUMPTIONS FOR FUTURE INTEREST RATE AND INFLATION For the purposes of this report, we have assumed that the inflation rate over the next 30 years will average 3%. This is based on
historical averages over the last 25 years and our conservative best guess for the future. This percentage can vary greatly just as
global economic conditions can vary, which is one reason why this Reserve Study should be updated annually per Washington
State RCW 64.90.550, which we provide complimentary over the next two years with this Reserve Study (see Appendix).
For the purpose of this study, we will assume that the Association manages their money in the Reserve Fund so that the average
interest rate return on its money will be equal to that of inflation. This is a conservative estimate given that since 1965, the
average yield between short term treasuries and inflation has been 1.04%, which means that these relatively conservative
investments have been able to outpace inflation over the long term (according to Crestmont Research,
www.crestmontresearch.com). Since we have assumed that the inflation rate over the duration of this study will average 3%, we
have conservatively also assumed that the Reserve Fund average interest rate will equal 3%. Again, this does not reflect current
averages but rather a best guess of the future assuming you have invested effectively.
A common strategy is to invest in multiple accounts. Funds that will be necessary in the shorter term must be kept in a relatively
liquid account. Funds that are not allotted for near future planned expenditures can be deposited into longer term investments
which frequently earn higher interest rates. Consult with a qualified financial advisor for the best solution for your Association.
4.5 ANNUAL FUND BALANCES; ANNUAL FUNDING TABLE AND FIGURES The table and figures shown in this section are intended to give the Association a clearer view of the likely future financial position
that the Association will be in, provided that the reserve funding plan is followed.
Table 4.5: “Reserve Fund Balance Sheet”. This table lists annual revenue, expenses, and year end reserve fund balances. All
Section 4.5 Figures are based on this data.
Figure 4.5A‐1: “Comparison of Funding Plans ‐‐ Reserve Fund Balances Through 2048”. This line graph depicts the funding
balances of the proposed funding options vs. the current. Note the current plan, in dotted red, falls below zero in several
places. This represents insufficient funding for repairs needed in these years.
Figure 4.5A‐2: “Comparison of Funding Plans ‐‐ Reserve Fund Balances Through 2028”. This line graph focuses on the next
ten years, comparing the proposed plans to get the Association to a Full Funding status.
Figure 4.5B: “Comparison of Funding Plans ‐‐ Association Contributions to Reserve Fund by Year”
Figure 4.5C: “Comparison of Funding Plans – Percentage of Full Funding by Year”
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
TABLE 4.5: RESERVE FUND BALANCE SHEET
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
CURRENT FUNDING PLAN
Beginning Reserve Balance 77,747 36,747 29,685 71,484 115,764 118,038 43,558 90,908 139,561 166,879 206,306 243,306
Planned Special Assessments
Regular Reserve Fund Contribution - 39,130 40,304 41,513 42,758 44,041 45,362 46,723 48,125 49,569 51,056 52,587
Annual Total Property Contribution to The Reserve Fund 39,130 40,304 41,513 42,758 44,041 45,362 46,723 48,125 49,569 51,056 52,587
Average Monthly Contribution to the Reserve Fund per Unit 181.16 186.59 192.19 197.96 203.89 210.01 216.31 222.80 229.48 236.37 243.46
Annual Capital Expenses 41,000 47,174 - - 43,940 120,909 - 1,476 25,335 15,657 20,700 -
Interest Income - 982 1,495 2,767 3,455 2,388 1,987 3,406 4,529 5,515 6,645 8,088
Ending Reserve Balance 36,747 29,685 71,484 115,764 118,038 43,558 90,908 139,561 166,879 206,306 243,306 303,982
Percentage of Full Funding 18.6% 19.4% 35.7% 46.3% 45.7% 23.0% 37.4% 46.8% 50.2% 54.4% 57.5% 61.8%
Yellow Highlighted Cells Represent Make-Up Funds
IMMEDIATE FULL FUNDING
Beginning Reserve Balance 77,747 36,747 152,942 200,124 250,000 258,089 189,652 243,281 298,460 332,557 379,027 423,345
Full Funding Annual Maintenance Funding - 40,742 41,964 43,223 44,520 45,856 47,231 48,648 50,108 51,611 53,159 54,754
Planned Special Assessments / Make up Funds 119,823
Annual Total Property Contribution to The Reserve Fund - 160,565 41,964 43,223 44,520 45,856 47,231 48,648 50,108 51,611 53,159 54,754
Average Monthly Contribution to the Reserve Fund per Unit 188.62 194.28 200.11 206.11 212.29 218.66 225.22 231.98 238.94 246.11 253.49
Annual Capital Expenses 41,000 47,174 - - 43,940 120,909 - 1,476 25,335 15,657 20,700 -
Interest Income - 2,803 5,218 6,652 7,509 6,617 6,398 8,006 9,325 10,516 11,858 13,522
Full Funding - Ending Reserve Balance 36,747 152,942 200,124 250,000 258,089 189,652 243,281 298,460 332,557 379,027 423,345 491,620
Percentage of Full Funding 18.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Yellow Highlighted Cells Represent Make-Up Funds
FULL FUNDING WITHIN 5 YEARS
Beginning Reserve Balance 77,747 36,747 57,104 127,194 200,665 233,057 189,652 243,281 298,460 332,557 379,027 423,344
Full Funding Annual Maintenance Funding - 40,742 41,964 43,223 44,520 45,856 47,231 48,648 50,108 51,611 53,159 54,754
Planned Special Assessments / Make up Funds 25,402 25,402 25,402 25,402 25,402
Annual Total Property Contribution to The Reserve Fund - 66,144 67,366 68,625 69,922 71,258 47,231 48,648 50,108 51,611 53,159 54,754
Average Monthly Contribution to the Reserve Fund per Unit 306.22 311.88 317.71 323.71 329.90 218.66 225.22 231.98 238.94 246.11 253.49
Annual Capital Expenses 41,000 47,174 - - 43,940 120,909 - 1,476 25,335 15,657 20,700 -
Interest Income - 1,387 2,724 4,845 6,410 6,247 6,398 8,006 9,325 10,516 11,858 13,522
Ending Reserve Balance 36,747 57,104 127,194 200,665 233,057 189,652 243,281 298,460 332,557 379,027 423,344 491,620
Percentage of Full Funding 18.6% 37.3% 63.6% 80.3% 90.3% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
TABLE 4.5: RESERVE FUND BALANCE SHEET
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
FULL FUNDING WITHIN 10 YEARS
Beginning Reserve Balance 77,747 36,747 45,164 102,955 163,758 183,102 126,258 191,828 259,305 306,070 365,588 423,344
Full Funding Annual Maintenance Funding - 40,742 41,964 43,223 44,520 45,856 47,231 48,648 50,108 51,611 53,159 54,754
Planned Special Assessments / Make up Funds 13,638 13,638 13,638 13,638 13,638 13,638 13,638 13,638 13,638 13,638
Annual Total Property Contribution to The Reserve Fund - 54,380 55,602 56,861 58,158 59,493 60,869 62,286 63,746 65,249 66,797 54,754
Average Monthly Contribution to the Reserve Fund per Unit 251.76 257.42 263.25 269.25 275.43 281.80 288.36 295.12 302.08 309.25 253.49
Annual Capital Expenses 41,000 47,174 - - 43,940 120,909 - 1,476 25,335 15,657 20,700 -
Interest Income - 1,211 2,189 3,942 5,126 4,572 4,701 6,667 8,355 9,926 11,659 13,522
Ending Reserve Balance 36,747 45,164 102,955 163,758 183,102 126,258 191,828 259,305 306,070 365,588 423,344 491,620
Percentage of Full Funding 18.6% 29.5% 51.4% 65.5% 70.9% 66.6% 78.9% 86.9% 92.0% 96.5% 100.0% 100.0%
Yellow Highlighted Cells Represent Make-Up Funds
FULL FUNDING WITHIN 30 YEARS
Beginning Reserve Balance 77,747 36,747 37,346 87,084 139,593 150,394 84,750 141,257 199,399 236,549 286,163 333,719
Full Funding Annual Maintenance Funding - 40,742 41,964 43,223 44,520 45,856 47,231 48,648 50,108 51,611 53,159 54,754
Planned Special Assessments / Make up Funds 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935
Annual Total Property Contribution to The Reserve Fund - 46,677 47,900 49,159 50,455 51,791 53,167 54,584 56,043 57,546 59,095 60,689
Average Monthly Contribution to the Reserve Fund per Unit 216.10 221.76 227.59 233.59 239.77 246.14 252.70 259.46 266.42 273.59 280.97
Annual Capital Expenses 41,000 47,174 - - 43,940 120,909 - 1,476 25,335 15,657 20,700 -
Interest Income - 1,095 1,839 3,350 4,286 3,475 3,340 5,034 6,443 7,725 9,161 10,922
Ending Reserve Balance 36,747 37,346 87,084 139,593 150,394 84,750 141,257 199,399 236,549 286,163 333,719 405,330
Percentage of Full Funding 18.6% 24.4% 43.5% 55.8% 58.3% 44.7% 58.1% 66.8% 71.1% 75.5% 78.8% 82.4%
Yellow Highlighted Cells Represent Make-Up Funds
BASELINE FUNDING
Beginning Reserve Balance 77,747 36,747 29,531 71,166 115,273 117,364 42,690 89,834 138,271 165,361 204,547 241,293
Full Funding Annual Maintenance Funding - 38,978 40,147 41,352 42,592 43,870 45,186 46,542 47,938 49,376 50,857 52,383
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund - 38,978 40,147 41,352 42,592 43,870 45,186 46,542 47,938 49,376 50,857 52,383
Average Monthly Contribution to the Reserve Fund per Unit 180.45 185.87 191.44 197.19 203.10 209.20 215.47 221.94 228.59 235.45 242.51
Annual Capital Expenses 41,000 47,174 - - 43,940 120,909 - 1,476 25,335 15,657 20,700 -
Interest Income - 979 1,488 2,755 3,438 2,365 1,958 3,371 4,487 5,467 6,589 8,025
Ending Reserve Balance 36,747 29,531 71,166 115,273 117,364 42,690 89,834 138,271 165,361 204,547 241,293 301,701
Percentage of Full Funding 18.6% 19.3% 35.6% 46.1% 45.5% 22.5% 36.9% 46.3% 49.7% 54.0% 57.0% 61.4%
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
TABLE 4.5: RESERVE FUND BALANCE SHEET
CURRENT FUNDING PLAN
Beginning Reserve Balance
Planned Special Assessments
Regular Reserve Fund Contribution
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
IMMEDIATE FULL FUNDING
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Full Funding - Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
FULL FUNDING WITHIN 5 YEARS
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
303,982 197,409 259,958 324,241 343,832 383,449 458,686 440,333 396,848 165,942 240,387 321,484
54,165 55,790 57,464 59,188 60,963 62,792 64,676 66,616 68,615 70,673 72,793 74,977
54,165 55,790 57,464 59,188 60,963 62,792 64,676 66,616 68,615 70,673 72,793 74,977
250.76 258.29 266.04 274.02 282.24 290.70 299.43 308.41 317.66 327.19 337.01 347.12
168,147 - 1,815 49,469 32,094 - 96,315 122,474 307,838 2,232 - 27,137
7,410 6,759 8,633 9,873 10,748 12,445 13,286 12,372 8,317 6,005 8,304 10,362
197,409 259,958 324,241 343,832 383,449 458,686 440,333 396,848 165,942 240,387 321,484 379,687
50.2% 56.1% 60.4% 60.9% 62.5% 65.7% 63.8% 60.4% 38.0% 46.0% 52.3% 55.4%
491,620 392,942 463,691 536,488 564,922 613,721 698,492 690,038 656,830 436,592 522,113 614,706
56,397 58,089 59,831 61,626 63,475 65,379 67,341 69,361 71,442 73,585 75,793 78,066
56,397 58,089 59,831 61,626 63,475 65,379 67,341 69,361 71,442 73,585 75,793 78,066
261.10 268.93 277.00 285.31 293.87 302.68 311.76 321.12 330.75 340.67 350.89 361.42
168,147 - 1,815 49,469 32,094 - 96,315 122,474 307,838 2,232 - 27,137
13,072 12,660 14,781 16,277 17,418 19,392 20,520 19,904 16,159 14,168 16,800 19,205
392,942 463,691 536,488 564,922 613,721 698,492 690,038 656,830 436,592 522,113 614,706 684,840
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
491,620 392,942 463,690 536,488 564,922 613,721 698,492 690,038 656,830 436,592 522,113 614,706
56,397 58,089 59,831 61,626 63,475 65,379 67,341 69,361 71,442 73,585 75,793 78,066
56,397 58,089 59,831 61,626 63,475 65,379 67,341 69,361 71,442 73,585 75,793 78,066
261.10 268.93 277.00 285.31 293.87 302.68 311.76 321.12 330.75 340.67 350.89 361.42
168,147 - 1,815 49,469 32,094 - 96,315 122,474 307,838 2,232 - 27,137
13,072 12,660 14,781 16,277 17,418 19,392 20,520 19,904 16,159 14,168 16,800 19,205
392,942 463,690 536,488 564,922 613,721 698,492 690,038 656,830 436,592 522,113 614,706 684,840
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
TABLE 4.5: RESERVE FUND BALANCE SHEET
FULL FUNDING WITHIN 10 YEARS
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
FULL FUNDING WITHIN 30 YEARS
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
BASELINE FUNDING
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041
491,620 392,942 463,690 536,487 564,921 613,721 698,492 690,038 656,829 436,592 522,113 614,705
56,397 58,089 59,831 61,626 63,475 65,379 67,341 69,361 71,442 73,585 75,793 78,066
56,397 58,089 59,831 61,626 63,475 65,379 67,341 69,361 71,442 73,585 75,793 78,066
261.10 268.93 277.00 285.31 293.87 302.68 311.76 321.12 330.75 340.67 350.89 361.42
168,147 - 1,815 49,469 32,094 - 96,315 122,474 307,838 2,232 - 27,137
13,072 12,660 14,781 16,277 17,418 19,392 20,520 19,904 16,159 14,168 16,800 19,205
392,942 463,690 536,487 564,921 613,721 698,492 690,038 656,829 436,592 522,113 614,705 684,840
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
405,330 310,087 384,374 460,816 493,004 545,670 634,425 630,072 601,089 385,204 475,207 572,417
56,397 58,089 59,831 61,626 63,475 65,379 67,341 69,361 71,442 73,585 75,793 78,066
5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935 5,935
62,332 64,024 65,767 67,561 69,410 71,315 73,276 75,296 77,377 79,520 81,728 84,002
288.57 296.41 304.47 312.78 321.34 330.16 339.24 348.59 358.23 368.15 378.37 388.90
168,147 - 1,815 49,469 32,094 - 96,315 122,474 307,838 2,232 - 27,137
10,573 10,263 12,491 14,096 15,350 17,440 18,687 18,195 14,576 12,715 15,482 18,025
310,087 384,374 460,816 493,004 545,670 634,425 630,072 601,089 385,204 475,207 572,417 647,307
78.9% 82.9% 85.9% 87.3% 88.9% 90.8% 91.3% 91.5% 88.2% 91.0% 93.1% 94.5%
301,701 194,847 257,099 321,069 340,331 379,603 454,478 435,743 391,858 160,531 234,536 315,170
53,955 55,573 57,241 58,958 60,726 62,548 64,425 66,357 68,348 70,399 72,511 74,686
53,955 55,573 57,241 58,958 60,726 62,548 64,425 66,357 68,348 70,399 72,511 74,686
249.79 257.28 265.00 272.95 281.14 289.58 298.26 307.21 316.43 325.92 335.70 345.77
168,147 - 1,815 49,469 32,094 - 96,315 122,474 307,838 2,232 - 27,137
7,338 6,679 8,544 9,774 10,639 12,326 13,156 12,231 8,163 5,838 8,124 10,168
194,847 257,099 321,069 340,331 379,603 454,478 435,743 391,858 160,531 234,536 315,170 372,887
49.6% 55.4% 59.8% 60.2% 61.9% 65.1% 63.1% 59.7% 36.8% 44.9% 51.3% 54.4%
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
TABLE 4.5: RESERVE FUND BALANCE SHEET
CURRENT FUNDING PLAN
Beginning Reserve Balance
Planned Special Assessments
Regular Reserve Fund Contribution
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
IMMEDIATE FULL FUNDING
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Full Funding - Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
FULL FUNDING WITHIN 5 YEARS
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
2042 2043 2044 2045 2046 2047 2048
379,687 428,196 489,045 466,385 566,030 504,984 582,300
77,226 79,543 81,930 84,387 86,919 89,527 92,212
77,226 79,543 81,930 84,387 86,919 89,527 92,212
357.53 368.26 379.30 390.68 402.40 414.48 426.91
40,656 32,249 118,710 - 163,793 28,279 672,358
11,939 13,555 14,120 15,257 15,828 16,068 8,767
428,196 489,045 466,385 566,030 504,984 582,300 10,921
57.4% 59.7% 57.6% 61.3% 57.6% 60.1% 2.6%
684,840 745,734 819,436 810,114 923,599 876,915 969,133
80,408 82,821 85,305 87,864 90,500 93,215 96,012
80,408 82,821 85,305 87,864 90,500 93,215 96,012
372.26 383.43 394.93 406.78 418.98 431.55 444.50
40,656 32,249 118,710 - 163,793 28,279 672,358
21,141 23,131 24,082 25,621 26,609 27,282 20,429
745,734 819,436 810,114 923,599 876,915 969,133 413,216
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
684,840 745,734 819,436 810,113 923,599 876,915 969,133
80,408 82,821 85,305 87,864 90,500 93,215 96,012
80,408 82,821 85,305 87,864 90,500 93,215 96,012
372.26 383.43 394.93 406.78 418.98 431.55 444.50
40,656 32,249 118,710 - 163,793 28,279 672,358
21,141 23,131 24,082 25,621 26,609 27,282 20,429
745,734 819,436 810,113 923,599 876,915 969,133 413,216
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
LEVEL 1 RESERVE STUDY FOR SEAVUE CONDOMINIUMS
TABLE 4.5: RESERVE FUND BALANCE SHEET
FULL FUNDING WITHIN 10 YEARS
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
FULL FUNDING WITHIN 30 YEARS
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
Yellow Highlighted Cells Represent Make-Up Funds
BASELINE FUNDING
Beginning Reserve Balance
Full Funding Annual Maintenance Funding
Planned Special Assessments / Make up Funds
Annual Total Property Contribution to The Reserve Fund
Average Monthly Contribution to the Reserve Fund per Unit
Annual Capital Expenses
Interest Income
Ending Reserve Balance
Percentage of Full Funding
2042 2043 2044 2045 2046 2047 2048
684,840 745,734 819,436 810,113 923,599 876,915 969,133
80,408 82,821 85,305 87,864 90,500 93,215 96,012
80,408 82,821 85,305 87,864 90,500 93,215 96,012
372.26 383.43 394.93 406.78 418.98 431.55 444.50
40,656 32,249 118,710 - 163,793 28,279 672,358
21,141 23,131 24,082 25,621 26,609 27,281 20,429
745,734 819,436 810,113 923,599 876,915 969,133 413,215
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
647,307 713,099 791,846 787,721 906,559 865,388 963,284
80,408 82,821 85,305 87,864 90,500 93,215 96,012
5,935 5,935 5,935 5,935 5,935 5,935 5,935
86,343 88,756 91,240 93,800 96,435 99,150 101,947
399.74 410.91 422.41 434.26 446.46 459.03 471.98
40,656 32,249 118,710 - 163,793 28,279 672,358
20,105 22,241 23,343 25,039 26,186 27,025 20,342
713,099 791,846 787,721 906,559 865,388 963,284 413,216
95.6% 96.6% 97.2% 98.2% 98.7% 99.4% 100.0%
372,887 420,889 481,205 457,986 557,046 495,388 572,063
76,926 79,234 81,611 84,060 86,581 89,179 91,854
76,926 79,234 81,611 84,060 86,581 89,179 91,854
356.14 366.83 377.83 389.16 400.84 412.87 425.25
40,656 32,249 118,710 - 163,793 28,279 672,358
11,731 13,331 13,880 15,000 15,553 15,775 8,454
420,889 481,205 457,986 557,046 495,388 572,063 14
56.4% 58.7% 56.5% 60.3% 56.5% 59.0% 0.0%
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 50 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
Figure 4.5A‐1 Comparison of Funding Plans – Reserve Fund Balances Through 2048
Figure 4.5A‐2 Comparison of Funding Plans – Reserve Fund Balances Through 2028
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Reserve Balan
ce
Year
CURRENT FUNDING PLAN IMMEDIATE FULL FUNDING FULL FUNDING WITHIN 5 YEARS
FULL FUNDING WITHIN 10 YEARS FULL FUNDING WITHIN 30 YEARS BASELINE FUNDING
SEE FIGURE 4.5A‐2
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Reserve Balan
ce
Year
CURRENT FUNDING PLAN IMMEDIATE FULL FUNDING FULL FUNDING WITHIN 5 YEARS
FULL FUNDING WITHIN 10 YEARS FULL FUNDING WITHIN 30 YEARS BASELINE FUNDING
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 51 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
Figure 4.5B Comparison of Funding Plans ‐‐ Association Contributions to Reserve Fund by Year
Figure 4.5C Comparison of Funding Plans – Percentage of Full Funding by Year
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Contribution Amount
Year
CURRENT FUNDING PLAN IMMEDIATE FULL FUNDING FULL FUNDING WITHIN 5 YEARS
FULL FUNDING WITHIN 10 YEARS BASELINE FUNDING FULL FUNDING WITHIN 30 YEARS
NOTE: Immediate special assessment in year 2019 is included in the 2019 contribution
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048
Percentage
of Full Funding
Year
CURRENT FUNDING PLAN IMMEDIATE FULL FUNDING FULL FUNDING WITHIN 5 YEARS
FULL FUNDING WITHIN 10 YEARS FULL FUNDING WITHIN 30 YEARS BASELINE FUNDING
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 52 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
4.6 OTHER COMMON FUNDING METHODS
The following methods are methods that are sometimes implemented. We believe that many of these funding methods that
keep the reserve fund at less than “Fully Funded” represent a weaker position for the Association. As the Fully Funded percentage
decreases, the likelihood of unplanned special assessments increases.
Cash Flow Method
A method of calculating Reserve contributions where contributions to the Reserve fund are designed to offset the variable annual
expenditures from the Reserve fund. Different Reserve Funding Plans are tested against the anticipated schedule of Reserve
expenses until the desired Funding Goal is achieved.
Component Method
A method of calculating Reserve contributions where the total reserve contribution is based on the sum of contributions for
individual components.
Baseline Funding
Establishing a Reserve funding goal of keeping the Reserve cash balance above zero.
Full Funding
Setting a Reserve funding goal of attaining and maintaining the Reserve Fund at or near 100% funded. Recommended by Jeff
Samdal & Associates
Statutory Funding
Establishing a Reserve funding goal of setting aside the specific minimum amount of Reserves required by local statutes.
Threshold Funding
Establishing a Reserve funding goal of keeping the Reserve Balance above a specified dollar or Percent Funded amount.
Depending on the threshold this may be more or less conservative than “Fully Funded.”
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 53 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
5.0 LIMITATIONS This report has been prepared for the exclusive use of Seavue Homeowners Association and their property management
company. We do not intend for any other party to rely on this report for any reason without our expressed written consent. If
another individual or party relies on this study, they shall indemnify and hold Jeff Samdal & Associates harmless for any damages,
losses, or expenses they may incur as a result of its use.
The Level 1 Reserve Study is a reflection of the information provided to us. This report has been prepared for Seavue
Homeowners Association's use, not for the purpose of performing an audit, quality/forensic analyses, or background checks of
historical records. Our inspection report is not an exhaustive technical inspection of the property; we merely comment on the
items that we believe that our clients would benefit from knowing. During a typical inspection, no invasive inspection is
performed, no furnishings are moved, and no finishes are removed.
This report is a snap shot in time of the condition of the property at the time of inspection. The remaining life values that we list
are based on our opinion of the remaining useful life and are by no means a guarantee. Our opinions are based on what we
believe one could reasonably expect and are not based on worst case scenarios. These opinions are based upon our experience
with other buildings of similar age and construction type. Opinions will vary and you may encounter contractors and/or
consultants with differing opinions from ours. Ratings of various building components are most often determined by comparison
to other buildings of similar age and construction type. The quality of materials originally impacts our judgment of their current
state.
The life expectancy estimates that we prepare are based on National Association of Home Builders (NAHB) averages, Building
Owners and Managers (BOMA) averages, product defined expected life averages, and our own assessment of typical life
expectancy based on our experience with similar components in our area.
This report will tell you a great deal about the overall condition of this property. However, this report does not constitute a
warranty, an insurance policy, or a guarantee of any kind. Owning any property involves some risk and while we can give an
excellent overview of the property, we cannot inspect what we cannot see.
Our inspection and report do not include building code compliance or municipal regulatory compliance. Nor do they include
mold investigations, hazardous materials investigations, or indoor air quality analysis.
The purpose of this report is not intended to be a statement of insurability of this property as insurance companies have particular
standards for insurability of certain building types and certain building materials.
While we may comment that certain components have been recalled that we are aware of, we are not aware of all recalls. It is
beyond the scope of this inspection to determine all systems or components that are currently or will be part of any recall in the
future. You may wish to subscribe or contact the CPSC (Consumer Product Safety Commission) web site for recall information
regarding any system or component. If a problem is encountered on your property, we cannot be responsible for any corrective
action that you take, unless we have the opportunity to review the conditions, before repairs are made.
Please ensure that you have read and understand the entire proposal to perform this Level 1 Reserve Study that was signed prior
to our inspection. If you have any questions regarding this document, please contact us.
We appreciate the opportunity to be of assistance and we hope that we have provided you a clear understanding of your financial
situation and given you a better overall understanding of the your property. This report supersedes any opinion or discussion
that occurred during the inspection and should be considered our complete opinion of the condition of this property.
Please contact us if you have any questions regarding this report. We will be happy to be of assistance.
Sincerely,
Jeff Samdal, PE, RS, PRA
PROFESSIONAL RESERVE STUDY FOR SEAVUE CONDOMINIUMS DATED NOVEMBER 25, 2018
PAGE 54 OF 54 | JEFF SAMDAL & ASSOCIATES, INC. | WWW.SAMDALASSOC.COM | P: (206) 412-4305 | F: (425) 825-9090
APPENDIX Resume of Engineer Performing Study
Jeff Samdal, P.E., Principal Professional Qualifications and Experience
Areas of Expertise
Mr. Samdal is the owner of Jeff Samdal & Associates, Inc. (formerly Samdal Engineering), a corporation that specializes in building inspections, engineering, project management, and related services. He is a double-licensed Professional Engineer (Mechanical and Civil) in Washington State. He is also an accredited Building Inspection Engineer (BIE) and Reserve Specialist (RS). He has performed thousands of building inspections as well as numerous additional services such as building envelope investigations, construction management, and general consulting for property owners pertaining to building maintenance and long term budgeting. Mr. Samdal consistently earns repeat and referral business because of his attention to detail, practical approach, knowledge of the industry, and genuine appreciation for clients’ concerns for their real estate investments. Capabilities
Mr. Samdal is experienced at performing residential (single- and multi-family), commercial, and industrial inspections in Washington State and beyond. Mr. Samdal’s experience includes the following:
Property Condition Assessments (PCAs) Capital Needs Assessments (CNAs) Reserve Studies for Condominiums and Homeowner’s Association Building Envelope Studies Relevant Work History
Mr. Samdal has been owner and operator of Jeff Samdal & Associates / Samdal Engineering since 2005. Before concentrating on building inspections, Mr. Samdal worked for Washington Group International’s (WGI) Hydropower and Water Resources Group. While working for WGI, Mr. Samdal was involved in rebuilding and rehabilitating hydro facilities. He served as the on-site powerhouse and switchyard inspector during construction. His duties included design, drawing and specification preparation, cost estimating, scheduling, and construction management. Prior to working for WGI, Mr. Samdal worked for Duke Energy in a similar role. Education
BS in Mechanical Engineering, University of Washington Licenses and Certifications
Licensed Professional Engineer (PE), Mechanical Engineering, State of Washington, #40985 Licensed Professional Engineer (PE), Civil Engineering, State of Washington, #40985 Reserve Specialist (RS), Community Associations Institute (CAI), #173 Professional Reserve Analyst (PRA), Association of Professional Reserve Analysts Building Inspection Engineer (BIE), National Association of Building Inspection Engineers Structural Pest Inspector, State of Washington, #70763 Professional Affiliation American Society of Mechanical Engineers, 2002 – present Community Involvement Mr. Samdal is married with two kids and lives in Woodinville. He has volunteered as a Little League coach since 2009 starting with tee-ball and volunteers as a scout leader.
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