RESERVE STUDY WITH SITE VISIT...Feb 18, 2011 · RESERVE STUDY WITH SITE VISIT TWIN CREEKS HOA,...
Transcript of RESERVE STUDY WITH SITE VISIT...Feb 18, 2011 · RESERVE STUDY WITH SITE VISIT TWIN CREEKS HOA,...
© 2018,Onsite Engineering, An MJS Consultants, LLC Company
RESERVE STUDY WITH SITE VISIT
TWIN CREEKS HOA, 1260 LYNCHBURG ROAD, WINCHESTER, TN 37398
Site-Visit Survey performed
October 2, 2018
DRAFT - submitted
November 9, 2018
Prepared For:
TWIN CREEKS HOA
C/O Jeffrey Kinney
TWIN CREEKS PROPERTIES, LLC
Prepared By:
Onsite Engineering170 East Main St., Suite D129
Hendersonville, TN 37075
615-264-0505
Project Number:
13313
Reserve Specialist:
Andrew D Hart, Reserve Specialist
© 2018,Onsite Engineering, An MJS Consultants, LLC Company
TABLE OF CONTENTS
INTRODUCTION 3
EXECUTIVE SUMMARY 3
PURPOSE & SCOPE 4
REFERENCES 6
PROPERTY DESCRIPTION 8
OBSERVATIONS AND COMMENTS SUMMARY 22
RESERVE FUND ANALYSIS 23
LIMITATIONS 26
CONCLUSION 28
APPENDIX
RESERVE FUND PROJECTIONS 29
PROJECT PHOTOGRAPHS 30
PROFESSIONAL QUALIFICATIONS 46
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1260 Lynchburg Road, Winchester, TN
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INTRODUCTION
Twin Creeks HOA, through Twin Creeks Properties, LLC, authorized Onsite Engineering to conduct a
Building Evaluation and Reserve Fund Study for Twin Creeks HOA, located at 1260 Lynchburg Road,
Winchester, TN 37398.
Studies of this nature are important to ensure that a community has sufficient funds for long-term,
periodic capital expenditure requirements. Anticipating large expenditures over an extended period of
time through a structured analysis and scheduling process assists the Association in meeting financial
requirements without:
increasing the service fees above permitted maximums,
borrowing the funds,
or levying special financial assessments to the owners.
Typically, a community association has two broad cash requirements: the general operating requirements
and the capital replacement reserves. In this report, we will focus on those items falling under the capital
replacement reserve criteria. We have projected a capital repair and replacement reserve for thirty (30)
years. The first ten years are the most reliable.
This report is structured to analyze components of the community for which the Association is responsible
and to assess a useful expected life and useful remaining life of those components. The anticipated
scheduled repair or replacement of the component and the anticipated expense for the activity are then
analyzed in conjunction with the current capital reserves funding program for the community. Funding
program recommendations are made with the objective of limiting substantial cash excesses while
minimizing financial burdens that can result from significant cash inadequacies.
This report is intended to be used as a tool to determine reserve fund allocation requirements for the
community, to manage future Association obligations, and to inform the community of future financial
needs in general. The report that follows has been prepared from the perspective of what an owner of
this property would benefit from knowing. Some items, beyond those of immediate concern, may be
discussed. Therefore, the report should be read in its entirety in order to fully understand all of the
information that has been obtained.
EXECUTIVE SUMMARY
The following is a summary of the issues discussed in this Reserve Study. A detailed discussion of each
topic is provided in each of the noted sections of the report.
Based upon the information provided to us, and our own estimates of costs and useful lives of capital
assets, the existing Reserve Fund with the current annual contribution rate is projected to be insufficient
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1260 Lynchburg Road, Winchester, TN
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to fund the reasonably expected capital expenditures over the 30-year life of this study. In addition, there
are significant expenditures projected to occur after the end of the 30-year study period. Therefore,
because these are not covered under the current reserve fund projections, updates to the reserve study
will be required so that reserves can be accrued for future capital expenditures.
Therefore, a study such as this should be updated from time to time, usually on a three to five-year cycle,
in order to reflect the most accurate needs and obligations of the community.
This report has been prepared in strict confidence with you as our client. No reproduction or re-use will
be undertaken with any third party other than your management company Twin Creeks Properties, LLC
without your express written consent or oral consent.
We have included two alternatives to your current funding program and recommend that the board adopt
an alternative that best reflects the objectives of the community. They are outlined in narrative form in
the RESERVE FUND ANALYSIS Section and on Page 1 of the RESERVE FUND PROJECTIONS (Financial
Projections) in the Appendices.
PURPOSE & SCOPE
PURPOSE
The purpose of this study is to perform a reserve fund analysis and to determine a capital needs
projection. It is intended to be used as a tool for Twin Creeks HOA to determine the allocation
requirements for the reserve fund to meet future anticipated capital expenditures for the community.
This report forecasts obligations for the community thirty years into the future. It should be noted that
events might occur that could have an effect on the underlying component or system useful life
assumptions used in this study. Likewise, inevitable market fluctuations can have an impact on component
or system replacement and repair costs.
We recommend that this report be reviewed and updated periodically. The property conditions should
also be evaluated periodically as part of that review. Also, additional concerns which may have developed
during this time period can be identified and, if planned for early enough, may be coordinated into
current funding budgets with the least impact on the individual homeowners. The National professional
association for CPAs (AICPA) recommends that this type of study be updated every three to five years.
SCOPE
This study has been performed according to the scope as generally defined by Twin Creeks Properties,
LLC, Onsite Engineering, and the standards of the Community Associations Institute. The findings and
recommendations are based on interviews with the community's management personnel, a review of
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available documents, and an investigation of the buildings and site.
The guidelines used to determine which physical components within the community are to be included in
the component inventory are based on the following general criteria:
The component must be a common element, or otherwise noted to be the responsibility of the
Association to replace.
The component has an established estimated useful life (EUL). Organizations such as RSMeans, Fannie
Mae, National Association of Home Builders (NAHB) and Whitestone have established EULs for various
building and property components.
The component is visible such that a remaining useful life (RUL) can be projected. The component
must have an estimated remaining useful life of thirty years or less. As the site ages, additional
components may need to be added.
The cost of replacement should be high enough to make it financially unsound to fund it from the
operating budget or is funded through a maintenance contract. We have established a minimum
reserve component cost of $1,000 for this study.
Components, such as painting, which are considered deferred maintenance, are most appropriately
funded from the Operating Budget instead of Reserves. We have done so unless the painting cost is a
significant portion of the budget or we were requested to do so.
This study estimates the funding levels required for maintaining the long-term viability of the property.
Our approach involves:
1. Examining association-managed equipment, buildings and site facilities.
2. Predicting their remaining service life (RUL) and approximating how frequently they will require repair
or replacement (EUL).
3. Estimating current repair or replacement costs for each capital item.
4. Using data developed in Steps 1, 2 and 3 to project Capital Reserve balances for Years 1 through 30.
The statements in this report are opinions about the present condition of the subject community. They
are based on visual evidence available during a diligent investigation of all reasonably accessible areas
falling under the responsibility of the Association. We did not remove any surface materials, perform any
destructive testing, or move any furnishings. This study is not an exhaustive technical evaluation. Such an
evaluation would entail a significantly larger scope than this effort. For additional limitations, see the
LIMITATIONS SECTION.
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As the preparer of this reserve study, Onsite Engineering certifies that we do not have any vested
interests, financial interests, or other interests that would cause a conflict of interest in the preparation of
this study.
REFERENCES
SOURCES OF INFORMATION
The following people were interviewed during our study:
Jeffrey Kinney - Twin Creeks Properties, LLC
The following documents were made available to us and reviewed:
Description Source
Twin Creeks HOA Budget Developer
Property Map & Conceptual Drawings Developer
STANDARDS OF REFERENCE
For your reference, the following definitions may be helpful:
Excellent: Component or system is in "as new" condition, requiring no rehabilitation and should perform
in accordance with expected performance.
Good: Component or system is sound and performing its function, although it may show signs of normal
wear and tear. Some minor rehabilitation work may be required.
Fair: Component or system falls into one or more of the following categories: a) Evidence of previous
repairs not in compliance with commonly accepted practice, b) Workmanship not in compliance with
commonly accepted standards, c) Component or system is obsolete, d) Component or system
approaching end of expected performance. Repair or replacement is required to prevent further
deterioration or to prolong expected life.
Poor: Component or system has either failed or cannot be relied upon to continue performing its original
function as a result of having exceeded its expected performance, excessive deferred maintenance, or
state of disrepair. Present condition could contribute to or cause the deterioration of other adjoining
elements or systems. Repair or replacement is required.
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Adequate: A component or system is of a capacity that is defined as enough for what is required,
sufficient, suitable, and/or conforms to standard construction practices.
All ratings are determined by comparison to other buildings of similar age and construction type.
All directions (left, right, rear, etc.), when used, are taken from the viewpoint of an observer standing in
front of a building(s) and facing it. Some comments may refer to left-hand or right-hand when facing a
specific object.
Repair/Replacement Reserves - Non-annual maintenance items that will require significant expenditure
over the life of the buildings. Included are items that will reach the end of their estimated useful life
during the course of this forecast, or, in the opinion of the investigator, will require attention during that
time.
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PROPERTY DESCRIPTION
GENERAL
Property Description: This property consists of a gated community with a combination of single-family
and townhome-style residences which are currently under development. Upon completion, there will be
approximately 400 homes.
Year Built: Construction on this property began in 2016 and is anticipated to be complete by 2020.
SITE
PROPERTY ACCESS
Description: The main entrance to this property is located on Twin Creeks Drive north of Lynchburg Road.
Based on a conversation with the Developer, we understand that once construction on this property is
complete, there will be a total of four main entrances and one golf cart entrance to the property. Two of
the main entrances will be located north of Lynchburg Road and the other two main entrances will be
located south of Lynchburg Road. The golf cart entrance will be located on Twin Creeks Drive near the
marina.
Observations and Comments: No significant problems were observed.
ENTRANCE MONUMENTS, BUILDINGS, AND GATES
Description: This property is currently identified by two concrete block entrance monuments with stone
veneer exteriors located at the main entrance to the property on Twin Creeks Drive.
Access to the property is provided by controlled entrance and exit gates. There are steel swinging gates at
the entrance to and exit of the property. The gates are provided with hydraulic operators controlled by a
keypad access system. There is a small guard house at the entrance to the property. The guard house is
provided with a stone veneer and painted exterior with a sheet metal roof covering. The guard house is
also provided with an exterior door and vinyl windows.
Based on a conversation with the Developer, we understand that there are plans to construct similar
entrance monuments, guard houses, and gate systems installed at the other three main entrances to the
property as well as at the golf cart entrance.
We have split up the repair and replacement of the entrance monuments, buildings, and gates into two
separate phases as defined below:
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1260 Lynchburg Road, Winchester, TN
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Phase 1: The first phase of entrance monuments, buildings, and gates includes the existing components
located at the main entrance to the property on Twin Creeks Drive that were constructed in and around
2008.
Phase 2: The first phase of entrance monuments, buildings, and gates includes the future components
located at the golf cart entrance and three future main entrances to the property. The Developer
anticipated that the construction of the future entrance monuments, buildings, and gates will be
completed by 2020.
We have included the following projections in the financials for this study:
Entrance Monuments, Buildings, & Gates Component Year
Entrance Monuments & Buildings - Allowance 2024 (5-year cycle)
Entrance Gates (Phase 1) - Replace 2039
Entrance Gates (Phase 2) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
Entrance Gate Keypad Access System (Phase 1) -
Replace
2024
Entrance Gate Keypad Access Systems (Phase 2) -
Replace 2034
Entrance Gate Operators (Phase 1) - Replace 2024
Entrance Gate Operators (Phase 2) - Replace 2034
LANDSCAPING
Description: Landscaping around this property primarily consists of trees, bushes and groundcover
surrounding the main entrance monument and townhome-style buildings.
There are ground-mounted landscape lights installed around the entrance monuments and gates at the
main entrance to the property on Twin Creeks Drive. We anticipate that similar landscape lighting will be
installed at the future entrances to the property.
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Observations and Comments: No significant problems were observed. Maintenance of the landscaping is
considered an operations and maintenance budget item.
We have included an allowance toward the repair and replacement of the landscape lighting on a 5-year
cycle beginning in 2024.
STORM DRAINAGE
Description: Surface drainage throughout the common grass-covered areas and asphalt-paved roads is
directed toward grated drains which connect to an underground storm water system. The underground
storm water system ultimately discharges surface drainage into one of the five retention ponds on the
property.
There are currently three existing retention ponds on the property. One retention pond is located just
past the main entrance to the property on Twin Creeks Drive and the other two retention ponds are
located near the existing townhome-style units on Anderton Drive. The two future retention ponds will be
located near the two future swimming pool areas.
The retention pond located near the main entrance to the property on Twin Creeks Drive is provided with
a fountain aerator.
Observations and Comments: No significant problems were observed.
We have included an allowance toward the maintenance of the retention ponds and fountain aerators on
a 5-year cycle beginning in 2024.
EARTHWORK/GRADING/EROSION CONTROL
Description: There are four railroad-tie retaining walls located behind the townhome-style units located
on Anderton Drive.
Observations and Comments: No significant problems were observed.
We have included a line item for the replacement of the railroad-tie retaining walls anticipated in 2042.
ASPHALT PAVING
Description: Based on information provided by the Developer, we understand that there will be
approximately 20,137 linear feet of asphalt-paved roads on this property upon completion of
construction. This translates to approximately 50,000 square yards of asphalt paving.
Observations and Comments: The final wearing course of asphalt pavement has not been placed on the
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majority of roads on the property. At the time of our site visit, the roads on the south side of Lynchburg
had not been paved.
We recommend crack repair and patching of all the asphalt pavement every three-to-five years. This
extends the life of the pavement and benefits the homeowners by maintaining the aesthetic appearance
of the grounds and perceived value of the property.
We have included an allowance toward patching and crack sealing of all the asphalt pavement on a 5-year
cycle beginning in 2024, with a 1.5-inch paving overlay project anticipated in 2039.
CONCRETE CURBS
Description: There will be concrete curbs installed along the perimeters of the roadways throughout the
property.
Observations and Comments: We observed signs of cracking and deterioration of the concrete curb near
the main entrance to the property on Twin Creeks Drive. Refer to the following photo.
Concrete curbs have an estimated useful life of over 50 years. Because they are generally not replaced all
at once, but are replaced as sections fail, we have included an allowance for the repair of 2% of the
concrete curbs on a 5-year cycle beginning in 2024.
CONCRETE SIDEWALKS
Description: Based on information provided by the Developer, we understand that the HOA is only
responsible for maintaining the sidewalks located in front of the townhome-style units on the property.
The sidewalks located in front of the single-family homes are to be maintained by the individual
homeowners.
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1260 Lynchburg Road, Winchester, TN
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Observations and Comments: No significant problems were observed.
Concrete sidewalks have an estimated useful life of over 50 years. Because they are generally not
replaced all at once, but are replaced as sections fail, we have included an allowance for the repair of 5%
of the townhome concrete sidewalks on a 5-year cycle beginning in 2024.
PROPERTY SIGNAGE
Description: There are combination stop/street signs installed at the street intersections on the property.
Upon completion of construction on this property, we estimate that there will be approximately 60
combination stop/street signs.
Observations and Comments: No significant problems were observed.
We have included the following projections in the financials for this study:
Property Signage Component Year
Street Signs - Replace 2044
Sign Posts - Paint 2024 (5-year cycle)
Sign Posts - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
POLE-MOUNTED LIGHTS
Description: Pole-mounted lights provide area lighting throughout the roads on this property. Based on
information provided by the Developer, there will be approximately 201 pole-mounted lights on the
property upon completion of construction.
Observations and Comments: No significant problems were observed.
We have included the following projections in the financials for this study:
Pole-Mounted Lights Component Year
Pole-Mounted Light Fixtures - Replace 2044
Light Poles - Paint 2024 (5-year cycle)
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Pole-Mounted Lights Component Year
Light Poles - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
FENCING
Description: There is wood perimeter fencing installed along the south perimeter of the property along
Lynchburg Road. Upon completion of construction on this property, the Developer estimates that there
will be a total of 4,333 linear feet of perimeter fencing.
Observations and Comments: The existing fencing near the main entrance to the property on Twin
Creeks Drive showed signs of deteriorated paint as well as damage to the fence posts that was likely
caused by high-powered weed trimmers. Refer to the following photos.
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1260 Lynchburg Road, Winchester, TN
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During our site visit, additional perimeter fencing was being installed along the north perimeter of the
property near the marina. Refer to the following photo.
We have included a line item for painting the perimeter fencing on a 5-year cycle beginning in 2024 with
the replacement of the perimeter fencing anticipated in 2039.
MAILBOXES
Description: There are two pedestal-mounted mailbox cluster units that serve the townhome-style units
on Anderton Drive. Based on information provided by the Developer, we understand that there will be
two more pedestal-mounted mailbox cluster units installed at the final phase of townhomes that will be
constructed by 2020.
Observations and Comments: No significant problems were observed.
We have included a line item for the replacement of the mailboxes anticipated in 2044.
GAZEBO
Description: There is a wood-framed gazebo with a sheet metal roof covering located near the retention
pond just past the main entrance to the property on Twin Creeks Drive.
Observations and Comments: No significant problems were observed.
We have included a line item for the replacement of the gazebo anticipated in 2044.
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1260 Lynchburg Road, Winchester, TN
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TOWNHOME BUILDING EXTERIORS
PHASES
Description: The construction of the townhome-style buildings is split up into three separate phases. Each
phase is defined below:
Phase 1 Townhomes: The first phase of townhomes includes one building with a total of 7 residential
units consisting of Units 9 through 37 on Anderton Drive. These townhomes were constructed in and
around 2008.
Phase 2 Townhomes: The second phase of townhomes includes seven buildings with a total of 23
residential units consisting of Units 44 through 160 on Anderton Drive. These townhomes were
constructed in and around 2017.
Phase 3 Townhomes: The third phase of townhomes will be constructed in 2019/2020. This third phase
will include nine buildings with a total of 31 residential units consisting of Units 326 through 359 on Island
Way.
STRUCTURE
Description: The basic construction of the townhome-style buildings consists of wood-framed walls,
ceilings, and roofs built on concrete slabs on grade. No drawings were reviewed and our understanding of
the building structures is based upon visual evaluation only.
Observations and Comments: No significant problems were observed.
We have included an allowance toward general structural repairs on a 5-year cycle beginning in 2024.
ROOFING
Description: The roof coverings on the Phase 1 buildings consists of sheet metal. The roof coverings on
the Phase 2 and 3 buildings consists of architectural-grade asphalt shingles. The roofs are sloped and
provided with aluminum gutters and downspouts for drainage. Sheet metal roof coverings generally have
an anticipated useful life of 25-35 years and architectural-grade asphalt shingle roof coverings generally
have an anticipated useful life of 20-25 years. Maintenance and repair must be performed within the
guidelines of the warranty.
Observations and Comments: No significant problems were observed.
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1260 Lynchburg Road, Winchester, TN
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We have included the following projections in the financials for this study:
Roofing Component Year
Sheet Metal Roof Coverings (Phase 1) - Replace 2039
Asphalt Shingle Roof Coverings (Phase 2) - Replace 2039
Asphalt Shingle Roof Coverings (Phase 3) - Replace 2041
Aluminum Gutters & Downspouts (Phase 1) - Replace 2039
Aluminum Gutters & Downspouts (Phase 2) - Replace 2047
Aluminum Gutters & Downspouts (Phase 3) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
EXTERIOR
Description: The exteriors of the townhome-style buildings consist of a combination of stone veneer and
painted cement fiberboard siding with aluminum trim and vinyl soffit.
Observations and Comments: No significant problems were observed.
We have included the following projections in the financials for this study:
Exterior Component Year
Stone Veneer - Repair Allowance 2022 (5-year cycle)
Building Exteriors (Phase 1) - Paint & Seal 2021 (7-year cycle)
Building Exteriors (Phase 2) - Paint & Seal 2024 (7-year cycle)
Building Exteriors (Phase 3) - Paint & Seal 2026 (7-year cycle)
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1260 Lynchburg Road, Winchester, TN
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Exterior Component Year
Cement Fiberboard Siding (Phase 1) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
Cement Fiberboard Siding (Phase 2) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
Cement Fiberboard Siding (Phase 3) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
Soffit & Trim (Phase 1) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
Soffit & Trim (Phase 2) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
Soffit & Trim (Phase 3) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
PRIVACY FENCING
Description: The Phase 1 townhome-style units are provided with vinyl privacy fencing and the Phase 2
and 3 townhome-style units are provided with stained wood privacy fencing.
Observations and Comments: Some of the Phase 1 vinyl privacy fencing showed signs of damage likely
caused by high-powered weed trimmers. Refer to the following photo.
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1260 Lynchburg Road, Winchester, TN
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We have included the following projections in the financials for this study:
Privacy Fencing Component Year
Vinyl Privacy Fencing (Phase 1) - Replace 2039
Wood Privacy Fencing (Phase 2) - Stain 2022 (5-year cycle)
Wood Privacy Fencing (Phase 3) - Stain 2024 (5-year cycle)
Wood Privacy Fencing (Phase 2) - Replace 2037
Wood Privacy Fencing (Phase 3) - Replace 2039
CONCRETE DRIVEWAYS, PATIOS, PORCHES, AND WALKS
Description: Each townhome-style unit is provided with a concrete driveway, concrete patio, and
concrete porch or walkway.
Observations and Comments: No significant problems were observed.
Concrete patios, porches, and driveways have estimated useful lives of over 50 years. Because they are
generally not replaced all at once, but are replaced as sections fail, we have included an allowance for the
repair of 5% of the townhome concrete patios, porches, and driveways on a 5-year cycle beginning in
2022.
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1260 Lynchburg Road, Winchester, TN
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MECHANICAL
UTILITIES
Description: This property is served by the municipal water and sewer system. The utilities for each unit
are individually metered.
Observations and Comments: No significant problems were observed.
ELECTRICAL
Description: Electrical service to the buildings consists of 120/240 volt systems. The main electric service
cable comes to the buildings underground. No excavation on or near the property should be done unless
the electric utility has been consulted. We observed 200 Amp breakers for the units at the meter banks.
The main electrical switches and power meters are located at a combined meter bank at each building.
Our investigation of the electrical system is limited to the visible components in the common areas of the
buildings, the entrance cable, meter box, service panels, common area outlets and switches, and the
visible portions of the wiring. The covers of the service panels were not removed to investigate the
conditions in them.
A larger portion of the electrical system is hidden behind walls and ceilings, and, obviously, all the
conditions relating to these unseen areas cannot be known. While some components of the system are
readily discernible, not all conditions that can lead to the interruption of electrical service, or that are
hazardous can be identified.
Observations and Comments: No significant problems were observed.
We have included the following projections in the financials for this study:
Electrical Component Year
Electrical Repairs - Allowance 2024 (5-year cycle)
Electric Meter Panels (Phase 1) - Replace 2039
Electric Meter Panels (Phase 2) - Replace 2047
Electric Meter Panels (Phase 3) - Replace This line item has been included as a
means to identify future projections which
are past the 30-year term of this study.
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1260 Lynchburg Road, Winchester, TN
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AMENITIES
RENTAL CLUBHOUSE AND SWIMMING POOL
Description: Based on information provided by the Developer, we understand that the Clubhouse and
swimming pool area near the main entrance to the property on Twin Creeks Drive is owned by Twin
Creeks Properties, LLC. We understand that the Twin Creeks HOA currently rents this Clubhouse and
swimming pool each month. The Twin Creeks HOA may choose to purchase the Clubhouse and swimming
pool in the future, but the Twin Creeks HOA is not reserving for these amenities at this time.
Observations and Comments: No significant problems were observed.
FUTURE SWIMMING POOLS AND BUILDINGS
Description: Based on information provided by the Developer, we understand that there are plans to
install two HOA-owned swimming pools on this property. Each swimming pool will be provided with a
cabana building with bathrooms. Additionally, an event barn will be constructed at one of the swimming
pool sites.
Observations and Comments: The Developer provided projected reserve fund allowances for the two
future swimming pool areas which have been included in the financial projections for this study.
Conceptual renderings of each swimming pool area can be seen below.
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1260 Lynchburg Road, Winchester, TN
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We have included the following projections in the financials for this study:
Swimming Pool Component Year
Swimming Pool & Buildings (Event Barn) - Allowance 2020 (1-year cycle)
Swimming Pool & Buildings (Campfire Court) - Allowance 2020 (1-year cycle)
Swimming Pool Furniture (Event Barn) - Allowance 2020 (1-year cycle)
Swimming Pool Furniture (Campfire Court) - Allowance 2020 (1-year cycle)
OTHER
UPDATES
Description: An estimate for the update of the Reserve Study has been included in the financial
projections.
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OBSERVATIONS AND COMMENTS SUMMARY
Following is a summary of the Observation and Comments grouped according to their report Section(s):
We observed signs of cracking and deterioration of the concrete curb near the main entrance to the
property on Twin Creeks Drive.
The existing fencing near the main entrance to the property on Twin Creeks Drive showed signs of
deteriorated paint as well as damage to the fence posts that was likely caused by high-powered weed
trimmers.
Some of the Phase 1 vinyl privacy fencing showed signs of damage likely caused by high-powered weed
trimmers.
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RESERVE FUND ANALYSIS
We have analyzed the projected capital expenditures and calculated a reserve cash flow need. The
following is a reserve fund financial analysis for non-annual items as discussed in the report. These
financial worksheets take into consideration a reasonable return on invested moneys and inflation.
Please review this thoroughly and let us know of any changes that may be desired. The intent of this
reserve fund financials is to help the Association develop a reserve fund to provide for anticipated repair
or replacements of various system components throughout the term of the study. Many different
variables, such as season, locale, and inflation, affect the final cost of any project. Consultation with a
competent contractor capable of performing this work will provide you with an actual estimate.
Lacking actual estimates from contractors bidding on the work, costs are developed through our own
experience and from published cost indexes such as Means Construction Cost Data. Useful life information
is obtained from published information provided by the Federal National Mortgage Association (FNMA),
other authoritative sources and our own experience. This information lists national averages for
component useful lives.
The capital items listed are those that are typically the responsibility of the association and are derived
from a list provided by the Developer. However, association by-laws vary, and therefore, which
components are the responsibility of the owner and which are the responsibility of the Association can
vary. You should confirm that the items listed should be financed by the reserve fund.
The Developer provided the following information for this study.
Reserve Fund Balance as of September 30, 2018 $0
Reserve Contributions to be collected until Study Effective Date $0
Projected Interest on Reserve Fund This year $0
Less Projected Reserve Expenditures $0
Projected Year-End Reserve Balance before the Effective Date $0
The Reserve Fund Projections (financials) in the Appendix provides the following:
An input sheet that defines all the criteria used for the financial alternatives, including the assumed
inflation rate and rate of return on deposited reserve funds.
A table that lists anticipated replacement and/or repair items complete with estimated remaining life
expectancies, projected costs of replacement and/or repair, a frequency in years of when these items
require replacement and/or repair, and a projection based on this frequency.
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 24
A table and graph that represent end-of-year balances versus capital expenditures based on your
current funding program and reserve balances, and alternatives to your current program. The
provided graphs illustrate what effects the funding methods will have over the presented life of the
study versus the anticipated capital expenditures. Care should be taken in analyzing the graphs due to
varying graphic scales that occur within each graph and between graphs.
This study is based upon a Cash Flow Method using a Threshold Funding goal. The Cash Flow Method
looks at reserve requirements each year and then calculates what the cash requirements will be each
year. Our funding goal is to maintain a positive balance in the reserve fund at or above the threshold
amount with an additional goal of achieving 60 percent funding throughout the study term.
We have defined the threshold or minimum allowed reserve balance as the average annual expenditure.
In addition, as an additional measure of Association reserve funding health, we have included information
about percent of Full Funding. The funding alternatives we have provided are based on maintaining a
minimum reserve balance above a threshold value using Cash Flow Method. They are also based on
keeping the percent funding as close to the goal as possible. By doing so, there is less of a possibility of a
special assessment.
To show these methods, we have included the percent funding values on the Alternative Funding Charts
as well as a target percent funding level line. This can be informative because there may be years when
even though the minimum cash flow requirements are met, future years would have a large projected
cash outlay, which would be shown by the percent funding measurement.
As a result, we do not expect or anticipate to rigidly meet a particular percent funding target. We do
expect and anticipate, however, to meet the Reserve threshold cash flow requirements throughout the
entire 30-year term of the study and to use the percent funding target as a reserve balance positioning
tool.
Note that based upon the information provided to us, and our own estimates of costs and useful lives
of capital assets, and taking inflation and return on investment into account, the current funding rate
will not be adequate to fund the reasonable, expected capital expenditures over the 30-year life of the
study.
The association should bear in mind that unanticipated expenditures can always arise and maintenance of
a significant reserve fund balance can be viewed as an important way to avoid special assessments.
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 25
We have included two alternatives to your current funding program and recommend that the board
adopt an alternative that best reflects the objectives of the community.
All funding alternatives are based on a starting balance of $0 beginning January 1, 2019. They are based
on the entire Association as a single unit.
We have used an inflation rate of 2.8% based on CPI over the last 30 years, and a rate of return on
investment of 1.0%.
We have used the projected average annual expenditure rate of $202,368 as our threshold for the reserve
fund account balance.
In summary, the funding alternatives are as follows:
2018 Funding Rate: $0 per year
Alternative 1: Beginning January 1, 2019, set the annual contribution to the reserves at $153,500 per
year. Every following year, beginning in 2020 through 2048, increase the annual contribution to the
reserves by $5,700 per year.
Alternative 2: Beginning January 1, 2019, set the annual contribution to the reserves at $153,500 per
year. Every following year, beginning in 2020 through 2048, increase the annual contribution to the
reserves by 3.0% per year.
These funding alternatives are projected to maintain a positive balance at or near the threshold while
targeting a 60% funding goal.
The Reserve Fund Projections in the Appendix lists estimated capital reserves from 2019 through 2048.
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 26
LIMITATIONS
The observations described in this study are valid on the date of the investigation and have been made
under the conditions noted in the report. We prepared this study for the exclusive use of Twin Creeks
HOA. Onsite Engineering does not intend any other individual or party to rely upon this study without our
express written consent. If another individual or party relies on this study, they shall indemnify and hold
Onsite Engineering harmless for any damages, losses, or expenses they may incur as a result of its use.
Information provided by the representatives of the association regarding financial, physical, quantity or
historical issues will be deemed reliable by Onsite Engineering. The reserve study will be a reflection of
the information provided to us and assembled for the association's use. An independent audit or
verification of the information provided to us is beyond the scope of this study. The purpose of this study
is not to perform an audit, quality/forensic analyses or to perform background checks of historical
records. This study relies on data provided to us by the client, the client’s representative, contractors
and/or management company. It also assumes that the property will be properly maintained in order to
obtain industry acceptable property component estimated useful lives.
All measurements or quantities are approximate. Any quantities are based upon field measurements
when plans of the buildings or site are not provided to us. Unless specifically described above, no
construction documents were reviewed, and no comments are made regarding conformance or non-
conformance to plans and specifications. No guarantee or warranty as to future life, performance, or
need for repair of any item inspected is intended or implied.
Please keep in mind that our review of this property focuses on the structural, mechanical and functional
conditions of the common areas. While some mention within this report may be made regarding life
safety issues, this report is not to be considered a life safety/code compliance review of this property.
Further, issues regarding handicap accessibility and other related issues adopted under the Americans
with Disabilities Act (ADA) or the Fair Housing Amendments Act are not included in this report, since this
was beyond the intended scope of services. Some comments about ADA or Fair Housing Act compliance
may be mentioned in the "General" section of this report.
This study is limited to the visual observations made during our inspection. We did not remove surface
materials, conduct any destructive or invasive testing, move furnishings or equipment, or undertake any
digging or excavation. Accordingly, we cannot comment on the condition of systems that we could not
see, such as buried structures and utilities, nor are we responsible for conditions that could not be seen or
were not within the scope of our services at the time of the investigation. We did not undertake to
completely assess the stability of the buildings or the underlying foundation soil since this effort would
require excavation and destructive testing. Likewise, this is not a seismic assessment.
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 27
We did not investigate the following areas:
Buried utilities or infrastructure
Concealed structural members or systems
Attic areas
All interior spaces
We do not render an opinion on uninvestigated portions of the community.
We did not perform any computations or other engineering analysis as part of this evaluation, nor did we
conduct a comprehensive code compliance investigation. This study is not to be considered a warranty of
condition, and no warranty is implied. The appendices are an integral part of this report and must be
included in any review.
In our Reserve Fund Analysis, we have provided estimated costs. These costs are based on our general
knowledge of building systems and the contracting and construction industry. When appropriate, we have
relied on standard sources, such as Means Building Construction Cost Data, Craftsman Construction Books
etc. to develop estimates. Any costs or other comments contained herein do not necessarily infer that
subcontracts, quotes or opinions of other professionals were solicited or obtained. However, for items
that we have developed costs (e.g.: structural repairs), no standard guide for developing such costs exists.
Actual costs can vary significantly, based on the availability of qualified contractors to do the work, as well
as many other variables. We cannot be responsible for the specific cost estimates provided.
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 28
CONCLUSION
We recommend that this report be reviewed and updated periodically. The property conditions should
also be evaluated periodically as part of that review. Regular periodic updates are intended to identify
additional concerns which may have developed and, if planned for early enough, may be coordinated into
current funding budgets with the least impact on the individual homeowners. An estimate for the update
of the Reserve Study has been included in the financial projections.
This report has been prepared in strict confidence with you as our client. No reproduction or reuse will be
undertaken with any third party without your express written or oral consent.
If you have any questions about this study or the reserve fund analysis, please feel free to contact us.
Thank-you for the opportunity to be of assistance to you.
Respectfully submitted,
Andrew D Hart, Reserve Specialist
Reviewed By:
Mark J. Smith, P.E., RS
Certified Building Inspection Engineer
FINANCIALS
Components List and CostsAge: 2 Effective Date: 1/1/2019
No. Units: 400 Fiscal Year Start: 1/1/2019
Report Date: 11/9/2018
1 SITE
2 Entrance Monuments & Buildings - Allowance 1 LS 21,300.00$ 21,300.00$ 5 5
3 Entrance Gates (Phase 1) - Replace 2 EA 5,000.00$ 10,000.00$ 30 20
4 Entrance Gates (Phase 2) - Replace 8 EA 5,000.00$ 40,000.00$ 30 30
5 Entrance Gate Keypad Access System (Phase 1) - Replace 1 EA 1,500.00$ 1,500.00$ 15 5
6 Entrance Gate Keypad Access Systems (Phase 2) - Replace 4 EA 1,500.00$ 6,000.00$ 15 15
7 Entrance Gate Operators (Phase 1) - Replace 2 EA 3,000.00$ 6,000.00$ 15 5
8 Entrance Gate Operators (Phase 2) - Replace 8 EA 3,000.00$ 24,000.00$ 15 15
9 Landscape Lighting - Allowance 1 LS 2,500.00$ 2,500.00$ 5 5
10 Retention Ponds & Aerators - Replace 1 LS 5,000.00$ 5,000.00$ 5 3
11 Railroad Tie Retaining Walls - Replace 1 LS 5,585.00$ 5,585.00$ 25 23
12 Asphalt Paving - Patch & Crack Seal 1 LS 30,000.00$ 30,000.00$ 5 5
13 Asphalt Paving - Overlay 50,000 SY 12.00$ 600,000.00$ 20 20
14 Concrete Curbing - Allowance 1 LS 12,085.00$ 12,085.00$ 5 5 2% of Curbs
15 Townhome Concrete Sidewalks - Allowance 1 LS 2,750.00$ 2,750.00$ 5 5 5% of Sidewalks
16 Street Signs - Replace 60 EA 250.00$ 15,000.00$ 25 25 Estimated
17 Sign Posts - Paint 60 EA 25.00$ 1,500.00$ 5 5 Estimated
18 Sign Posts - Replace 60 EA -$ 50 50 Estimated
19 Pole-Mounted Light Fixtures - Replace 201 EA 200.00$ 40,200.00$ 25 25 Developer Provided
20 Light Poles - Paint 201 EA 75.00$ 15,075.00$ 5 5
21 Light Poles - Replace 201 EA -$ 50 50
22 Perimeter Wood Fencing - Paint 4,333 LF 3.50$ 15,165.50$ 5 5
23 Perimeter Wood Fencing - Replace 4,333 LF 17.00$ 73,661.00$ 20 20
24 Pedestal-Mounted Mailbox Cluster Units - Replace 4 EA 2,000.00$ 8,000.00$ 25 25
25 Gazebo - Replace 1 EA 3,500.00$ 3,500.00$ 25 23
26 TOWNHOME EXTERIORS -$
27 Structural Repairs - Allowance 1 LS 5,000.00$ 5,000.00$ 5 5
28 Sheet Metal Roof Coverings (Phase 1) - Replace 7 EA 5,335.00$ 30 20 Developer Provided
29 Asphalt Shingle Roof Coverings (Phase 2) - Replace 23 EA 5,335.00$ 122,705.00$ 22 20 Developer Provided
30 Asphalt Shingle Roof Coverings (Phase 3) - Replace 31 EA 5,335.00$ 165,385.00$ 22 22 Developer Provided
31 Aluminum Gutters & Downspouts (Phase 1) - Replace 1 LS 5,230.00$ 5,230.00$ 30 20
32 Aluminum Gutters & Downspouts (Phase 2) - Replace 1 LS 20,722.50$ 20,722.50$ 30 28
33 Aluminum Gutters & Downspouts (Phase 3) - Replace 1 LS 27,930.00$ 27,930.00$ 30 30
34 Stone Veneer - Repair Allowance 1 LS 9,790.00$ 9,790.00$ 5 3
35 Building Exteriors (Phase 1) - Paint & Seal 1 LS 17,375.00$ 17,375.00$ 7 2
36 Building Exteriors (Phase 2) - Paint & Seal 1 LS 54,860.00$ 54,860.00$ 7 5
37 Building Exteriors (Phase 3) - Paint & Seal 1 LS 73,945.00$ 73,945.00$ 7 7
38 Cement Fiberboard Siding (Phase 1) - Replace 1 LS 50 40
39 Cement Fiberboard Siding (Phase 2) - Replace 1 LS -$ 50 48
40 Cement Fiberboard Siding (Phase 3) - Replace 1 LS -$ 50 50
Twin Creeks HOA1260 Lynchburg Road
Winchester, TN 37398
# Remaining
Useful Life
(RUL)
Comment / ReferenceComponent Qty U/M Unit Cost Reserve
Requirement
Estimated
Useful Life
(EUL)
Components List and Costs Page 1 ©2014 Onsite Engineering
FINANCIALS
Components List and Costs# Remaining
Useful Life
(RUL)
Comment / ReferenceComponent Qty U/M Unit Cost Reserve
Requirement
Estimated
Useful Life
(EUL)
41 Soffit & Trim (Phase 1) - Replace 1 LS -$ 50 40
42 Soffit & Trim (Phase 2) - Replace 1 LS -$ 50 48
43 Soffit & Trim (Phase 3) - Replace 1 LS -$ 50 50
44 Vinyl Privacy Fencing (Phase 1) - Replace 7 EA 2,350.00$ 16,450.00$ 30 20
45 Wood Privacy Fencing (Phase 2) - Stain 23 EA 125.00$ 2,875.00$ 5 3
46 Wood Privacy Fencing (Phase 3) - Stain 31 EA 125.00$ 3,875.00$ 5 5
47 Wood Privacy Fencing (Phase 2) - Replace 23 EA 400.00$ 9,200.00$ 20 18
48 Wood Privacy Fencing (Phase 3) - Replace 31 EA 400.00$ 20 20
49 Concrete Driveways, Patios, Porches, & Walks - Allowance 1 LS 9,495.00$ 9,495.00$ 5 3
50 MECHANICAL -$
51 Electrical Repairs - Allowance 1 LS 5,000.00$ 5,000.00$ 5 5
52 Electric Meter Panels (Phase 1) - Replace 1 LS 5,500.00$ 5,500.00$ 30 20
53 Electric Meter Panels (Phase 2) - Replace 1 LS 19,500.00$ 19,500.00$ 30 28
54 Electric Meter Panels (Phase 3) - Replace 1 LS 24,500.00$ 24,500.00$ 30 30
55 AMENITIES -$
56 Swimming Pool & Buildings (Event Barn) - Allowance 1 LS 20,209.00$ 20,209.00$ 1 1 Developer Provided
57 Swimming Pool & Buildings (Campfire Court) - Allowance 1 LS 14,859.00$ 14,859.00$ 1 1 Developer Provided
58 Swimming Pool Furniture (Event Barn) - Allowance 1 LS 2,400.00$ 1 1 Developer Provided
59 Swimming Pool Furniture (Campfire Court) - Allowance 1 LS 2,400.00$ 2,400.00$ 1 1 Developer Provided
60 OTHER -$
61 Reserve Study - Update 1 LS 4,600.00$ 4,600.00$ 4 3
Abbreviations: EA - Each, LF- Linear Feet, LS - Lump Sum, SF - Square Feet, SQ - Square, SY - Square Yard, U/M - Unit of Measure
Components List and Costs Page 2 ©2014 Onsite Engineering
Projected Reserve Expenses by Year
# Reserve Component 1 2 3 4 5 6 7 8 9 10
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
1 SITE
2 Entrance Monuments & Buildings - Allowance 24,454$
3 Entrance Gates (Phase 1) - Replace
4 Entrance Gates (Phase 2) - Replace
5 Entrance Gate Keypad Access System (Phase 1) - Replace 1,722$
6 Entrance Gate Keypad Access Systems (Phase 2) - Replace
7 Entrance Gate Operators (Phase 1) - Replace 6,888$
8 Entrance Gate Operators (Phase 2) - Replace
9 Landscape Lighting - Allowance 2,870$
10 Retention Ponds & Aerators - Replace 5,432$ 6,236$
11 Railroad Tie Retaining Walls - Replace
12 Asphalt Paving - Patch & Crack Seal 34,442$
13 Asphalt Paving - Overlay
14 Concrete Curbing - Allowance 13,874$
15 Townhome Concrete Sidewalks - Allowance 3,157$
16 Street Signs - Replace
17 Sign Posts - Paint 1,722$
18 Sign Posts - Replace
19 Pole-Mounted Light Fixtures - Replace
20 Light Poles - Paint 17,307$
21 Light Poles - Replace
22 Perimeter Wood Fencing - Paint 17,411$
23 Perimeter Wood Fencing - Replace
24 Pedestal-Mounted Mailbox Cluster Units - Replace
25 Gazebo - Replace
26 TOWNHOME EXTERIORS
27 Structural Repairs - Allowance 5,740$
28 Sheet Metal Roof Coverings (Phase 1) - Replace
29 Asphalt Shingle Roof Coverings (Phase 2) - Replace
30 Asphalt Shingle Roof Coverings (Phase 3) - Replace
31 Aluminum Gutters & Downspouts (Phase 1) - Replace
32 Aluminum Gutters & Downspouts (Phase 2) - Replace
33 Aluminum Gutters & Downspouts (Phase 3) - Replace
34 Stone Veneer - Repair Allowance 10,636$ 12,210$
35 Building Exteriors (Phase 1) - Paint & Seal 18,362$ 22,277$
36 Building Exteriors (Phase 2) - Paint & Seal 62,983$
37 Building Exteriors (Phase 3) - Paint & Seal 89,714$
38 Cement Fiberboard Siding (Phase 1) - Replace
39 Cement Fiberboard Siding (Phase 2) - Replace
40 Cement Fiberboard Siding (Phase 3) - Replace
41 Soffit & Trim (Phase 1) - Replace
42 Soffit & Trim (Phase 2) - Replace
43 Soffit & Trim (Phase 3) - Replace
44 Vinyl Privacy Fencing (Phase 1) - Replace
45 Wood Privacy Fencing (Phase 2) - Stain 3,123$ 3,586$
46 Wood Privacy Fencing (Phase 3) - Stain 4,449$
47 Wood Privacy Fencing (Phase 2) - Replace
Twin Creeks HOA1260 Lynchburg Road
Winchester, TN 37398
Projected Reserve Expenses by Year, Page 3 ©2014 Onsite Engineering
Projected Reserve Expenses by Year
# Reserve Component 1 2 3 4 5 6 7 8 9 10
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Twin Creeks HOA1260 Lynchburg Road
Winchester, TN 37398
48 Wood Privacy Fencing (Phase 3) - Replace
49 Concrete Driveways, Patios, Porches, & Walks - Allowance 10,315$ 11,842$
50 MECHANICAL
51 Electrical Repairs - Allowance 5,740$
52 Electric Meter Panels (Phase 1) - Replace
53 Electric Meter Panels (Phase 2) - Replace
54 Electric Meter Panels (Phase 3) - Replace
55 AMENITIES
56 Swimming Pool & Buildings (Event Barn) - Allowance 20,775$ 21,357$ 21,955$ 22,569$ 23,201$ 23,851$ 24,519$ 25,205$ 25,911$
57 Swimming Pool & Buildings (Campfire Court) - Allowance 15,275$ 15,703$ 16,142$ 16,594$ 17,059$ 17,537$ 18,028$ 18,533$ 19,051$
58 Swimming Pool Furniture (Event Barn) - Allowance 2,467$ 2,536$ 2,607$ 2,680$ 2,755$ 2,833$ 2,912$ 2,993$ 3,077$
59 Swimming Pool Furniture (Campfire Court) - Allowance 2,467$ 2,536$ 2,607$ 2,680$ 2,755$ 2,833$ 2,912$ 2,993$ 3,077$
60 OTHER
61 Reserve Study - Update 4,997$ 5,581$
Inflated Total For Each Year -$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$
Projected Reserve Expenses by Year, Page 4 ©2014 Onsite Engineering
Projected Reserve Expenses by Year
# Reserve Component
1 SITE
2 Entrance Monuments & Buildings - Allowance
3 Entrance Gates (Phase 1) - Replace
4 Entrance Gates (Phase 2) - Replace
5 Entrance Gate Keypad Access System (Phase 1) - Replace
6 Entrance Gate Keypad Access Systems (Phase 2) - Replace
7 Entrance Gate Operators (Phase 1) - Replace
8 Entrance Gate Operators (Phase 2) - Replace
9 Landscape Lighting - Allowance
10 Retention Ponds & Aerators - Replace
11 Railroad Tie Retaining Walls - Replace
12 Asphalt Paving - Patch & Crack Seal
13 Asphalt Paving - Overlay
14 Concrete Curbing - Allowance
15 Townhome Concrete Sidewalks - Allowance
16 Street Signs - Replace
17 Sign Posts - Paint
18 Sign Posts - Replace
19 Pole-Mounted Light Fixtures - Replace
20 Light Poles - Paint
21 Light Poles - Replace
22 Perimeter Wood Fencing - Paint
23 Perimeter Wood Fencing - Replace
24 Pedestal-Mounted Mailbox Cluster Units - Replace
25 Gazebo - Replace
26 TOWNHOME EXTERIORS
27 Structural Repairs - Allowance
28 Sheet Metal Roof Coverings (Phase 1) - Replace
29 Asphalt Shingle Roof Coverings (Phase 2) - Replace
30 Asphalt Shingle Roof Coverings (Phase 3) - Replace
31 Aluminum Gutters & Downspouts (Phase 1) - Replace
32 Aluminum Gutters & Downspouts (Phase 2) - Replace
33 Aluminum Gutters & Downspouts (Phase 3) - Replace
34 Stone Veneer - Repair Allowance
35 Building Exteriors (Phase 1) - Paint & Seal
36 Building Exteriors (Phase 2) - Paint & Seal
37 Building Exteriors (Phase 3) - Paint & Seal
38 Cement Fiberboard Siding (Phase 1) - Replace
39 Cement Fiberboard Siding (Phase 2) - Replace
40 Cement Fiberboard Siding (Phase 3) - Replace
41 Soffit & Trim (Phase 1) - Replace
42 Soffit & Trim (Phase 2) - Replace
43 Soffit & Trim (Phase 3) - Replace
44 Vinyl Privacy Fencing (Phase 1) - Replace
45 Wood Privacy Fencing (Phase 2) - Stain
46 Wood Privacy Fencing (Phase 3) - Stain
47 Wood Privacy Fencing (Phase 2) - Replace
Twin Creeks HOA1260 Lynchburg Road
Winchester, TN 37398
11 12 13 14 15 16 17 18 19 20
2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
28,074$ 32,231$
9,079$
36,317$
3,295$ 3,783$
7,159$ 8,220$
39,541$ 45,396$
15,929$ 18,287$
3,625$ 4,161$
1,977$ 2,270$
19,870$ 22,812$
19,989$ 22,948$
6,590$ 7,566$
14,018$ 16,094$
27,028$
76,414$ 92,710$
108,846$
4,117$ 4,726$
5,107$ 5,864$
15,124$
Projected Reserve Expenses by Year, Page 5 ©2014 Onsite Engineering
Projected Reserve Expenses by Year
# Reserve Component
1 SITE
Twin Creeks HOA1260 Lynchburg Road
Winchester, TN 37398
48 Wood Privacy Fencing (Phase 3) - Replace
49 Concrete Driveways, Patios, Porches, & Walks - Allowance
50 MECHANICAL
51 Electrical Repairs - Allowance
52 Electric Meter Panels (Phase 1) - Replace
53 Electric Meter Panels (Phase 2) - Replace
54 Electric Meter Panels (Phase 3) - Replace
55 AMENITIES
56 Swimming Pool & Buildings (Event Barn) - Allowance
57 Swimming Pool & Buildings (Campfire Court) - Allowance
58 Swimming Pool Furniture (Event Barn) - Allowance
59 Swimming Pool Furniture (Campfire Court) - Allowance
60 OTHER
61 Reserve Study - Update
Inflated Total For Each Year
11 12 13 14 15 16 17 18 19 20
2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
13,596$ 15,609$
6,590$ 7,566$
26,636$ 27,382$ 28,149$ 28,937$ 29,747$ 30,580$ 31,437$ 32,317$ 33,222$ 34,152$
19,585$ 20,133$ 20,697$ 21,276$ 21,872$ 22,485$ 23,114$ 23,761$ 24,427$ 25,111$
3,163$ 3,252$ 3,343$ 3,437$ 3,533$ 3,632$ 3,733$ 3,838$ 3,945$ 4,056$
3,163$ 3,252$ 3,343$ 3,437$ 3,533$ 3,632$ 3,733$ 3,838$ 3,945$ 4,056$
6,233$ 6,961$ 7,774$
203,136$ 60,252$ 131,946$ 95,977$ 167,531$ 285,569$ 89,046$ 63,754$ 125,311$ 167,858$
Projected Reserve Expenses by Year, Page 6 ©2014 Onsite Engineering
Projected Reserve Expenses by Year
# Reserve Component
1 SITE
2 Entrance Monuments & Buildings - Allowance
3 Entrance Gates (Phase 1) - Replace
4 Entrance Gates (Phase 2) - Replace
5 Entrance Gate Keypad Access System (Phase 1) - Replace
6 Entrance Gate Keypad Access Systems (Phase 2) - Replace
7 Entrance Gate Operators (Phase 1) - Replace
8 Entrance Gate Operators (Phase 2) - Replace
9 Landscape Lighting - Allowance
10 Retention Ponds & Aerators - Replace
11 Railroad Tie Retaining Walls - Replace
12 Asphalt Paving - Patch & Crack Seal
13 Asphalt Paving - Overlay
14 Concrete Curbing - Allowance
15 Townhome Concrete Sidewalks - Allowance
16 Street Signs - Replace
17 Sign Posts - Paint
18 Sign Posts - Replace
19 Pole-Mounted Light Fixtures - Replace
20 Light Poles - Paint
21 Light Poles - Replace
22 Perimeter Wood Fencing - Paint
23 Perimeter Wood Fencing - Replace
24 Pedestal-Mounted Mailbox Cluster Units - Replace
25 Gazebo - Replace
26 TOWNHOME EXTERIORS
27 Structural Repairs - Allowance
28 Sheet Metal Roof Coverings (Phase 1) - Replace
29 Asphalt Shingle Roof Coverings (Phase 2) - Replace
30 Asphalt Shingle Roof Coverings (Phase 3) - Replace
31 Aluminum Gutters & Downspouts (Phase 1) - Replace
32 Aluminum Gutters & Downspouts (Phase 2) - Replace
33 Aluminum Gutters & Downspouts (Phase 3) - Replace
34 Stone Veneer - Repair Allowance
35 Building Exteriors (Phase 1) - Paint & Seal
36 Building Exteriors (Phase 2) - Paint & Seal
37 Building Exteriors (Phase 3) - Paint & Seal
38 Cement Fiberboard Siding (Phase 1) - Replace
39 Cement Fiberboard Siding (Phase 2) - Replace
40 Cement Fiberboard Siding (Phase 3) - Replace
41 Soffit & Trim (Phase 1) - Replace
42 Soffit & Trim (Phase 2) - Replace
43 Soffit & Trim (Phase 3) - Replace
44 Vinyl Privacy Fencing (Phase 1) - Replace
45 Wood Privacy Fencing (Phase 2) - Stain
46 Wood Privacy Fencing (Phase 3) - Stain
47 Wood Privacy Fencing (Phase 2) - Replace
Twin Creeks HOA1260 Lynchburg Road
Winchester, TN 37398
21 22 23 24 25 26 27 28 29 30
2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
37,003$ 42,482$
17,372$
2,606$
10,423$
4,343$ 4,986$
9,437$ 10,834$
10,541$
52,117$ 59,834$
1,042,350$
20,995$ 24,103$
4,777$ 5,485$
29,917$
2,606$ 2,992$
80,178$
26,189$ 30,067$
26,346$ 30,247$
127,968$
15,956$
6,606$
8,686$ 9,972$
64,878$
213,169$
303,630$
9,086$
44,900$
18,477$ 21,212$
32,792$
112,480$
132,058$ 160,220$
28,578$
5,426$ 6,229$
6,732$ 7,729$
Projected Reserve Expenses by Year, Page 7 ©2014 Onsite Engineering
Projected Reserve Expenses by Year
# Reserve Component
1 SITE
Twin Creeks HOA1260 Lynchburg Road
Winchester, TN 37398
48 Wood Privacy Fencing (Phase 3) - Replace
49 Concrete Driveways, Patios, Porches, & Walks - Allowance
50 MECHANICAL
51 Electrical Repairs - Allowance
52 Electric Meter Panels (Phase 1) - Replace
53 Electric Meter Panels (Phase 2) - Replace
54 Electric Meter Panels (Phase 3) - Replace
55 AMENITIES
56 Swimming Pool & Buildings (Event Barn) - Allowance
57 Swimming Pool & Buildings (Campfire Court) - Allowance
58 Swimming Pool Furniture (Event Barn) - Allowance
59 Swimming Pool Furniture (Campfire Court) - Allowance
60 OTHER
61 Reserve Study - Update
Inflated Total For Each Year
21 22 23 24 25 26 27 28 29 30
2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
21,542$
17,920$ 20,573$
8,686$ 9,972$
9,555$
42,251$
35,108$ 36,091$ 37,102$ 38,141$ 39,208$ 40,306$ 41,435$ 42,595$ 43,788$ 45,014$
25,814$ 26,537$ 27,280$ 28,043$ 28,829$ 29,636$ 30,466$ 31,319$ 32,196$ 33,097$
4,169$ 4,286$ 4,406$ 4,530$ 4,656$ 4,787$ 4,921$ 5,059$ 5,200$ 5,346$
4,169$ 4,286$ 4,406$ 4,530$ 4,656$ 4,787$ 4,921$ 5,059$ 5,200$ 5,346$
8,682$ 9,696$
1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$
Projected Reserve Expenses by Year, Page 8 ©2014 Onsite Engineering
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
-$ (40,984)$ (101,478)$ (179,293)$ (223,817)$ (472,348)$ (519,400)$ (663,065)$ (746,664)$ (820,058)$ (1,023,194)$ (1,083,446)$ (1,215,392)$ (1,311,369)$ (1,478,900)$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
-$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$ 203,136$ 60,252$ 131,946$ 95,977$ 167,531$
0% -12% -22% -32% -32% -73% -65% -78% -76% -73% -88% -81% -84% -82% -87%
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
(1,764,469)$ (1,853,514)$ (1,917,268)$ (2,042,580)$ (2,210,437)$ (4,025,706)$ (4,228,964)$ (4,605,788)$ (4,790,909)$ (4,868,259)$ (5,301,695)$ (5,495,917)$ (5,589,644)$ (5,982,248)$ (6,071,050)$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
285,569$ 89,046$ 63,754$ 125,311$ 167,858$ 1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$
-82% -87% -104% -98% -91% -89% -90% -418% -401% -468% -431% -359% -421% -390% -334%
Projected January/1/2019 Reserve Fund Balance: -$ Inflation: 2.80% Threshold: 202,368$
Present Total Annual Deposit to Reserves: -$ Return on Investment: 1.00% Funding Percent Target: 60%
RESERVE FUND ANALYSIS - EXISTING FUNDING RATE
Annual Deposits
Special Assessments
Actual Percent Funding
Ending Year Balance
Ending Year Balance
Special Assessments
Annual Deposits
Actual Percent Funding
Inflated Annual Expenditures
Inflated Annual Expenditures
$(7,000,000)
$(6,000,000)
$(5,000,000)
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
20
33
20
34
20
35
20
36
20
37
20
38
20
39
20
40
20
41
20
42
20
43
20
44
20
45
20
46
20
47
20
48
Do
lla
rs
Funding Years
RESERVE FUND ANALYSIS - EXISTING FUNDING RATE
Ending Year Balance $s at 60% Funding Target Threshold:
Financials Page 9 ©2014 Onsite Engineering
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
155,035$ 275,983$ 384,194$ 481,749$ 619,660$ 558,660$ 706,301$ 763,596$ 887,888$ 1,029,487$ 1,047,220$ 1,215,199$ 1,318,205$ 1,464,326$ 1,545,396$
153,500$ 159,200$ 164,900$ 170,600$ 176,300$ 182,000$ 187,700$ 193,400$ 199,100$ 204,800$ 210,500$ 216,200$ 221,900$ 227,600$ 233,300$
-$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$ 203,136$ 60,252$ 131,946$ 95,977$ 167,531$
66% 78% 83% 86% 88% 87% 89% 89% 90% 91% 91% 91% 91% 91% 91%
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
1,513,815$ 1,686,165$ 1,891,539$ 2,042,551$ 2,157,858$ 616,190$ 692,993$ 601,021$ 707,504$ 929,658$ 800,145$ 916,699$ 1,141,676$ 1,072,794$ 1,315,820$
239,000$ 244,700$ 250,400$ 256,100$ 261,800$ 267,500$ 273,200$ 278,900$ 284,600$ 290,300$ 296,000$ 301,700$ 307,400$ 313,100$ 318,800$
285,569$ 89,046$ 63,754$ 125,311$ 167,858$ 1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$
89% 89% 89% 89% 88% 64% 66% 61% 64% 69% 63% 65% 68% 65% 68%
Increase Period (Years) : 1
Projected January/1/2019 Reserve Fund Balance: -$ Number of Increases : 29 Threshold: 202,368$
First Year Contribution : 153,500$ Return on Investment: 1.00% Periodic Increase : $5,700 Funding Percent Target: 60%
RESERVE FUND ANALYSIS - ALTERNATIVE 1 - Escalating Funding at $5700 Every Year Through 2048
Ending Year Balance
Actual Percent Funding
Ending Year Balance
Inflated Annual Expenditures
Actual Percent Funding
Annual Deposits
Special Assessments
Annual Deposits
Special Assessments
Inflated Annual Expenditures
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
201
9
202
0
202
1
202
2
202
3
202
4
202
5
202
6
202
7
202
8
202
9
203
0
203
1
203
2
203
3
203
4
203
5
203
6
203
7
203
8
203
9
204
0
204
1
204
2
204
3
204
4
204
5
204
6
204
7
204
8
Do
llars
Funding Years
RESERVE FUND ANALYSIS - ALTERNATIVE 1 - Escalating Funding at $5700 Every Year Through 2048 Ending Year Balance $s at 60% Funding Target Threshold
Financials Page 10 ©2014 Onsite Engineering
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
155,035$ 274,877$ 381,004$ 475,632$ 609,912$ 544,723$ 687,767$ 740,217$ 859,578$ 996,331$ 1,009,482$ 1,173,326$ 1,272,837$ 1,416,303$ 1,495,764$
153,500$ 158,105$ 162,848$ 167,734$ 172,766$ 177,949$ 183,287$ 188,786$ 194,449$ 200,283$ 206,291$ 212,480$ 218,854$ 225,420$ 232,183$
-$ 40,984$ 60,493$ 77,815$ 44,524$ 248,531$ 47,053$ 143,665$ 83,599$ 73,394$ 203,136$ 60,252$ 131,946$ 95,977$ 167,531$
66% 77% 82% 85% 87% 84% 87% 87% 87% 88% 87% 88% 88% 88% 88%
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
1,463,836$ 1,637,324$ 1,845,555$ 2,001,383$ 2,123,716$ 591,542$ 680,577$ 603,854$ 728,895$ 973,215$ 869,786$ 1,016,666$ 1,276,547$ 1,247,491$ 1,535,626$
239,148$ 246,322$ 253,712$ 261,323$ 269,163$ 277,238$ 285,555$ 294,122$ 302,946$ 312,034$ 321,395$ 331,037$ 340,968$ 351,197$ 361,733$
285,569$ 89,046$ 63,754$ 125,311$ 167,858$ 1,815,269$ 203,258$ 376,824$ 185,122$ 77,350$ 433,436$ 194,222$ 93,726$ 392,604$ 88,802$
86% 87% 87% 87% 87% 61% 64% 61% 66% 72% 69% 72% 76% 76% 79%
Increase Period (Years) : 1
Projected January/1/2019 Reserve Fund Balance: -$ Number of Increases : 29 Threshold: 202,368$
First Year Contribution : 153,500$ Return on Investment: 1.00% Periodic Increase : 3.0% Funding Percent Target: 60%
RESERVE FUND ANALYSIS - ALTERNATIVE 2 - Escalating Funding at 3% Every Year Through 2048
Ending Year Balance
Annual Deposits
Special Assessments
Inflated Annual Expenditures
Percent Funding
Percent Funding
Ending Year Balance
Annual Deposits
Special Assessments
Inflated Annual Expenditures
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
201
9
202
0
202
1
202
2
202
3
202
4
202
5
202
6
202
7
202
8
202
9
203
0
203
1
203
2
203
3
203
4
203
5
203
6
203
7
203
8
203
9
204
0
204
1
204
2
204
3
204
4
204
5
204
6
204
7
204
8
Do
llars
Funding Years
RESERVE FUND ANALYSIS - ALTERNATIVE 2 - Escalating Funding at 3% Every Year Through 2048
Ending Year Balance $s at 60% Funding Target Threshold
Financials Page 11 ©2014 Onsite Engineering
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 31
No. Image
1
Typical stone veneer
entrance monument
2
Typical landscape lighting
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 32
3
Entrance gates and
guard house
4
Entrance gate keypad
access system
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 33
5
Typical entrance gate
6
Typical entrance gate
operator
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 34
7
Typical entrance guard
house
8
Typical retention pond
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 35
9
Typical retention pond
fountain aerator
10
Typical railroad-tie
retaining wall
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 36
11
Typical asphalt-paved
road with concrete
curbs and sidewalk
12
Typical property signage
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 37
13
Typical pole-mounted
light fixture
14
Typical pedestal-
mounted mailbox
cluster unit
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 38
15
Typical wood perimeter
fencing
16
Gazebo
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 39
17
Typical front view of
Phase 1 townhome-style
units
18
Typical side view of
Phase 1 townhome-style
unit
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 40
19
Typical rear view of
Phase 1 townhome-style
units with vinyl privacy
fencing
20
Typical front view of
Phase 2 townhome-style
units
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 41
21
Typical side view of
Phase 2 townhome-style
unit
22
Typical rear view of
Phase 2 townhome-style
units
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 42
23
Typical Phase 2 stained
wood privacy fencing
24
Typical electric meter
panel
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 43
25
Current construction of
single-family home
26
Future main entrance to
property
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 44
27
Future site of swimming
pool and event barn
28
Future construction of
property on south side
of Lynchburg Road
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 45
29
Rental Clubhouse near
main entrance to
property on Twin Creeks
Road
30
Rental swimming pool
near main entrance to
property on Twin Creeks
Road
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 47
ANDREW HART, EIT
ONSITE ENGINEERING
PROFESSIONAL ENGINEER REGISTRATIONS:
EIT Tennessee
EXPERIENCE
Engineering Technician, Onsite Engineering
Engineering Technician, Criterium-Smith Engineers
Construction Materials Technician, S&ME
Professional Intern, CEMEX
PROFESSIONAL:
Reserve Specialist (RS) Designation, By Community Associations Institute (CAI)
ACI Concrete Field Testing Technician - Grade 1
EDUCATION:
Middle Tennessee State University
BS Concrete Industry Management
Tennessee State University
BS Civil Engineering
Twin Creeks HOA
1260 Lynchburg Road, Winchester, TN
Page 48
MARK J. SMITH, P.E.
ONSITE ENGINEERING
PROFESSIONAL ENGINEER REGISTRATIONS:
Tennessee - No. 107733
Illinois - No. 62-043214
Kentucky No. 27136
EXPERIENCE
Owner, Onsite Engineering
Owner, Criterium-Smith Engineers
Director of Engineering, American Permanent Ware Company
Director of Engineering, Southbend A Middleby Company
Project Engineer, Anetsberger Brothers
Project Engineer, Underwriters Laboratories
PROFESSIONAL:
Board Certified Building Inspection Engineer (BCBIE), By the Building Inspection Engineers
Certification Institute.
Member, National Society of Professional Engineers (NSPE)
Professional Member, National Academy of Building Inspection Engineers (NABIE)
Board Member, National Academy of Building Inspection Engineers (NABIE)
Member of Community Associations Institute (CAI)
Reserve Specialist (RS) Designation, By Community Associations Institute (CAI)
LEED Accredited Professional
Passed National Home Inspection Exam (NHIE)
EDUCATION:
University of Illinois, Champaign-Urbana, Illinois
BS Mechanical Engineering
Wheaton College, Wheaton, Illinois
BA Liberal Arts Engineering