Community Reserve Solutions 8000 Jarvis Avenue, Entry 2 Newark, California (510) (510) FAX

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1 Community Reserve Solutions 8000 Jarvis Avenue, Entry 2 Newark, California (510) (510) FAX Board of Directors Watergate Community Association 8 Captain Drive Emeryville, California Attention: Subject: Board of Directors Reserve Fund and Component Study Watergate Community Association 3 YEAR UPDATE FOR FISCAL YEAR 2017/2018 To whom it may concern, In accordance with our proposal, Community Reserve Solutions. has performed a Reserve Fund and \ Component Study for your community in accordance with the requirements of the Davis-Stirling Act and the guidelines of the Association of Professional Reserve Analysts (APRA). This study consisted of a visual inspection of the commonly held components that the community is responsible for maintaining, repairing or replacing. The visual inspection determined the commonly held components, their year of installation, the expected life, estimated useful life (assuming the materials used were properly manufactured and installed) and the estimated useful life. The components were then quantified using calibrated measuring devices either in the field or from association provided construction documentation. The observations and conclusions presented are based upon our visual inspection and component qualification of the commonly held components and upon information provided by your community and/or it's representatives. It has been a pleasure serving you and we look forward to working with you again in the future. Sincerely, John E. Ceragioli Director of Community Solutions Community Reserve Solutions 8000 Jarvis Avenue, Entry 2 Newark, California (510) (510) FAX johnc@massingham.com FINAL FOR PUBLICATION 3 1 5/1/2017

2 CAPITAL COMPONENT RESERVE STUDY FOR: Watergate Community Association 3 YEAR UPDATE FOR FISCAL YEAR 2017/2018 Community Reserve Solutions 8000 Jarvis Avenue, Entry 2 Newark, California (510) FINAL FOR PUBLICATION 3 2 5/1/2017

3 LEGAL REQUIREMENTS 1. Identify the current cash reserve balance. 2. Identify the major components to be included in the study. 3. Establish the reasonable expected life of each component. 4. Establish the remaining life of each component. 5. Project the estimated total cost of each component replacement. 6. Project the year in which the component replacement should statistically occur. 7. Prepare a Statement of Methodology. 8. Prepare the Davis-Stirling Act Section 5570 disclosure statement. SCOPE OF STUDY Watergate Community Association 2017/2018 Statement of Methodology, Conditions, Assumptions and Definitions The time frame covered by this analysis is from 2017/2018 thru 2047/2048 These are the beginning and ending points for all calculations included in this study. STATEMENT OF RESERVE STUDY METHODODOLOGY To determine the annual reserve fund contribution a cash flow (and a straight-line) funding calculation has performed. The premise of replacement cost projections are to insure positive cash flow balances in the communities reserve accounts. This will allow the Board of Directors (and the community) to fulfill its responsibility for maintaining the common are components while forecasting positive balances in the reserve fund accounts. Positive cash balances should be maintained by the community without relying on Special Assessment, HOA loans or overly excessive monthly assessments. The inflation rate used is based upon specific construction industry indexes. The communities current rate of return on their reserve fund account(s) is used for this study but may not exceed the rediscount rate as published by the Federal Reserve Bank of San Francisco at the time of study completion by more than 2%. This information has been provided to communities Board of Directors for approval prior to finalization of this report. The components listed in this analysis were identified by quantity and type. Upon completion of the component list and the reserve fund analysis was presented to the communities Board of Directors for their approval. The following sources were consulted, where possible, to make our determinations. Original construction plans and specifications. Original contractors, maintenance staff and vendors. Current contractors, maintenance staff and vendors. Community maintenance staff. Community management. Independent subcontractors. In house quantity surveyor. FINAL FOR PUBLICATION 3 3 5/1/2017

4 LIMITATIONS AND ASSUMPTIONS TO THIS STUDY This reserve fund study was undertaken by Community Reserve Solutions in compliance with California Civil Code Sections 5300, 5570 and 5500 and in compliance with the standards established by the Association of Professional Reserve Analysts (APRA). See for more information. Components that meet the following criteria have been included in this report. 1. The component maintenance is the responsibility of the association. 2. The component has a reasonable determinable statistically expected life. 3. The component has an expected life of greater than 1 year. 4. The component replacement is not covered within the communities annual operating budget. 5. The expected remaining life of the component is less than 30 years. Components with remaining lives of greater than 30 years may be included in the study for the association's information. These components will not be factored into the funding plan. Component useful life and remaining life projections are based on industry standards, manufacturer information, date of installation and maintenance information provided by the community, it's management and/or staff. As a result of construction methodology, design, maintenance or any specific local conditions, component expected life and remaining life may vary from the statistical norm. Repair and/or replacement schedules and the resulting assessment schedules are derived by combining the resources described above and reliance on these schedules is at the Board of Directors discretion. Community Reserve Solutions makes no guarantees as to the actual performance of the component. Each component condition, life expectancy and replacement cost evaluation was based on visual inspection only. Inspection was limited to areas accessible to the inspectors on the day of inspection and no disassembly of components or demolition was involved. Where components were not available, assumptions were made based on available component statistical information. Community Reserve Solutions makes no guarantee, either specific or implied, as to the actual performance of any component. The costs for component replacement included in this report were based on current published construction guides, local knowledge and actual contractor estimates. Reliance on the costs included in this report is at the discretion of the communities Board of Directors and/or it's management. Community Reserve Solutions makes no guarantees that projected costs will represent actual job costs at the time of component replacement. Based on future factors which can not be predicted and the annual disclosure requirements of the Davis-Stirling Act Section 5570, we would recommend this association update their reserve fund study on an annual basis. ABBREVIATIONS PUPM = Per Unit Per Month L.S. = L.F. = S.F. = S.Y. = EA. = Lump Sum Lineal Feet Square Feet Square Yard Each FINAL FOR PUBLICATION 3 4 5/1/2017

5 DEFINITIONS Estimated Useful Life - This represents the total number of years a major component, when new, is expected to serve its intended purpose. This information is based on actual conditions in the field. Estimated Remaining Life - This represents the total number of years a major component should continue to serve its intended purpose prior to replacement. Total Component Replacement Cost - This is the total cost, in today's dollars, estimated to replace a major component. Costs shown indicates replacing the existing component with one of like kind and quality. Costs include the removal expenses of existing components, construction management (if deemed appropriate), etc. Unscheduled Expenses - We have included an annual "contingency fund" of 5% above each years total expenses (or $100 minimum), whichever is greater, for each of the 30 years contained within this study. Projected year Beginning Reserve Fund Balance - This calculation is based on forecasting to the communities year ending date the reserve fund account balance. It takes the balance at any date then adds any remaining reserve fund deposits, adds interest earned on account and subtracts any reserve expenditures before the communities year end. Beginning Year of Study - This denotes the year of the Proforma Budget that the reserve fund study was performed to accompany. The beginning date of the study is the first day of the communities fiscal year. Requested Minimum Balance - This denotes the minimum balance a Board of Directors has elected that their reserve fund accounts not fall below. Net Current Reserve Fund Interest Rate - This denotes the actual, earned average interest rate on all reserve accounts less applicable taxation rates (if any). The Davis-Stirling Act Section 5570 requires that the interest rate not be greater than 2% above the rediscount rate published by the Federal Reserve Bank of San Francisco at the time of reserve study preparation. Rate of Inflation- This denotes the assumed (either actual or historical) rate of inflation on the construction trades only. This does not represent the rate of inflation as published by the federal government for the entire United States. Straight-Line Funding Requirement - by it's estimated useful life. This is calculated by dividing each components total cost Reserve Fund Cash Flown Projections - This is calculated by modeling 30 years projected expenditures, determining each years beginning and ending reserve account balances and then determining a funding level that provides a positive year ending balance (or a balance that is greater than the communities requested minimum balance). Section 5570 Calculated Percent Funded - This calculates how much money should have been set aside at the time of the study based on each component straight-line funding requirements. It multiplies the used life (expected life less remaining life) by then annual straight-line funding requirement for each component. Then each component calculation is added and compared to the actual calendar year beginning balance in the reserve study. The resultant percentage is the Calculated Percent Funded by Community Reserve Solutions FINAL FOR PUBLICATION 3 5 5/1/2017

6 Watergate Community Association 2017/2018 Projected Fund Balances CONTACT INFORMATION CONTACT: COMMUNITY NAME: ADDRESS: CITY, STATE & ZIP: Board of Directors Watergate Community Association 8 Captain Drive Emeryville, California RESERVE STUDY INFORMATION THIS YEARS TYPE OF STUDY: Three Year Inspection Update FISCAL YEAR OF LAST INSPECTION: 2017 PERFORMED BY: Community Reserve Solutions FISCAL YEAR OF NEXT INSPECTION 2020 As required by the Davis-Stirling Act of 1997 COMMUNITY INFORMATION BEGINNING YEAR OF STUDY: 2017 NUMB. OF RESID. BUILDINGS: 6 YEAR FACILITY CONSTRUCTED: NUMB. OF NON-RESID. BUILDINGS: 1 NUMBER OF UNITS IN PROJECT: 1249 ASSOC. YEAR ENDING DATE: 06/30/17 NUMBER OF ASSOC. OWNED UNITS: 0 RESERVE STUDY PREPARER: CURRENT COMMUNITY MANAGER: Community Reserve Solutions 8000 Jarvis Avenue, Entry 2 Newark, California (510) John Ceragioli Watergate Community Association 8 Captain Drive Emeryville, California (510) Tim Sutherland RESERVE ACCOUNT INFORMATION NOTES PROJECTED YEAR BEGIN. RESERVE FUND BALANCE $5,500, PUPM = Per Unit Per Month REQUESTED MINIMUM BALANCE: $0 2. The projected beginning year balance CURRENT TOTAL ANNUAL ASSESSMENT: $6,975,271 is calculated using current financial CURRENT AVERAGE PUPM ASSESSMENT: $ records, current reserve deposits and CURRENT YEAR TOTAL OPERATING BUDGET $4,959,274 expected reserve expenditures before CURRENT ANNUAL RESERVE CONTRIBUTION: $2,015, the association's year end. CURRENT MONTHLY RESERVE CONTRIBUTION: $168, The average PUPM to reserves is CURRENT AVG. PUPM RESERVE CONTRIBUTION: $ calculated by dividing the total CURRENT YEAR TOTAL SPECIAL ASSESSMENT: $0 assessments by the number of units. CURRENT YEAR TOTAL REVENUE - OTHER SOURCES $0 4. The net interest rate is the actual CALCULATED 30 YEAR AVERAGE INTEREST RATE: 1.50% earned interest rate minus applicable CURRENT RATE OF INFLATION: 2.50% taxes. UNSCHEDULED EXPENSE RATE: 5.00% 2013 by Community Reserve Solutions FINAL FOR PUBLICATION 3 6 5/1/2017

7 Watergate Community Association 2017/2018 Component Description/Estimated Replacement Costs Please Note that year new refers to this association's fiscal year. IE, 2017 refers to 2017/2018 fiscal year. Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost ASPHALT - Anchor Drive 1.01 Asphalt Sealing/Striping S.F. $0.22 $ Asphalt Repairs L.S. $10, $10, ASPHALT - Admiral Drive 2.01 Asphalt Sealing/Striping S.F. $0.22 $6, Asphalt Repairs L.S. $10, $10, Speed Bumps EA. $ $1, ASPHALT - Commodore Drive 3.01 Asphalt Sealing/Striping S.F. $0.22 $8, Asphalt Repairs L.S. $15, $15, Speed Bumps EA. $ $1, ASPHALT - Captain Drive 4.01 Asphalt Sealing/Striping S.F. $0.22 $9, Asphalt Repairs L.S. $15, $15, Speed Bumps EA. $ $2, ASPHALT - Ensign Drive 5.01 Asphalt Sealing/Striping S.F. $0.22 $6, Asphalt Repairs L.S. $5, $5, SANITARY SEWER RENOVATION PROJECT 6.01 Anchor Drive L.S. $321, $321, Admiral Drive L.S. $865, $865, Commodore Drive L.S. $1,666, $1,666, Captain Drive L.S. $1,161, $1,161, Ensign Drive L.S. $609, $609, Powell Street (Building B) L.S. $167, $167, Powell Street (Building D) L.S. $187, $187, ASPHALT - PARKING GARAGES ONLY 7.01 Asphalt Sealing/Striping S.F. $0.22 $125, Asphalt Repair Allowance L.S. $120, $120, CONCRETE 8.01 Sidewalk Replace. Allow. - Ongoing L.S. $5, $5, Step Replacement Allowance L.S. $1, $1, Curb Replacement Allowance L.S. $1, $1, Pipe Bollards EA. $ $ Parking Bumpers - Roads EA. $45.00 $6, Pool Deck - Clipper Club & Spa L.S. $125, $125, Pool Deck - Anchor Club S.F. $50.00 $114, Pool Deck - Building B S.F. $25.00 $74, Pool Deck - Building D S.F. $25.00 $74, Brick Paving Repair Allowance L.S. $1, $1, PARKING GARAGES 9.01 Entry Door Replacement Allowance L.S. $3, $3, Trash Room Doors (Pairs) EA. $2, $34, Overhead Doors EA. $4, $18, Convex Mirror Replacement Allow L.S. $2, $2, Pipe Rehanging Allowance L.S. $2, $2, CLIPPER CLUB EXTERIOR Composition Shingle Roofing S.F. $5.25 $58,800 FINAL FOR PUBLICATION 3 7 5/1/2017

8 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost Gutters L.F. $8.00 $3, Downspouts L.F. $8.00 $1, Aluminum Entry Doors EA. $3, $7, Entry Doors EA. $1, $12, Ext. Waterproofing/Siding Repairs L.S. $40, $40, Wood Deck/Rail/Stair Rep. Allow L.S. $4, $4, Clipper Club Access Improvement L.S. $300, $300, ANCHOR CLUB/CLIPPER CLUB AND OFFICE INTERIORS Carpeting - Anchor Club S.Y. $50.00 $1, Carpeting - Clipper Club Gym S.Y. $50.00 $32, Carpeting - Clipper Club Lounge L.S. $4, $4, Carpeting - Offices/Stairs S.Y. $50.00 $7, Carpeting - Offices S.Y. $50.00 $7, Carpeting - Classroom F S.Y. $50.00 $1, Lockers EA. $ $30, Clipper Club Moveable Walls L.F. $ $5, Clipper Club Window Blinds L.S. $11, $11, Clipper Club Heat Exchangers L.S. $4, $4, Wood Benches L.F. $30.00 $ Sauna Heaters EA. $1, $3, Sauna Controllers EA. $1, $4, Steam Generators/Controls EA. $5, $10, Doors - Solid EA. $ $23, Doors - Glass EA. $1, $2, Mats - Clipper Club L.S. $12, $12, Anchor Club Gas Meter Room Rep's L.S. $12, $12, SWIMMING POOL - CLIPPER CLUB Replastering (C/C Pool rebuild) S.Y. $ $139, Coping L.F. $40.00 $9, Tile L.F. $40.00 $13, Seal Coping/Walk Joint L.F. $7.50 $1, Heater EA. $32, $32, Heater - Repairs L.S. $7, $7, Filter EA. $5, $10, Filter Pump EA. $3, $3, Pool Cover L.S. $2, $2, Pool Cover L.S. $5, $5, Pool Cover Spool EA. $ $1, SPA - CLIPPER CLUB Replastering S.Y. $ $13, Coping L.F. $40.00 $2, Tile L.F. $40.00 $4, Seal Coping/Walk Joint L.F. $30.24 $1, Heater EA. $5, $5, Filter EA. $4, $4, Filter Pump EA. $1, $1, Jet Pump EA. $1, $1, SWIMMING POOL - ANCHOR CLUB Replastering S.Y. $ $40, Coping L.F. $40.00 $10, Tile L.F. $40.00 $11, Seal Coping/Walk Joint L.F. $7.50 $1,875 FINAL FOR PUBLICATION 3 8 5/1/2017

9 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost Heater EA. $24, $24, Filter EA. $2, $2, Filter Pump EA. $1, $1, Pool Covers L.S. $5, $5, SPA - ANCHOR CLUB Rebuild Spa L.S. $45, $45, Heater EA. $4, $4, Filter EA. $4, $4, Filter Pump EA. $1, $1, Jet Pump EA. $1, $1, SWIMMING POOL - BUILDING B Replastering S.Y. $ $54, Coping L.F. $40.00 $5, Tile L.F. $40.00 $6, Seal Coping/Walk Joint L.F $7.50 $1, Heater EA. $8, $8, Filter EA. $3, $3, Filter Pump EA. $1, $1, SWIMMING POOL - BUILDING D Replastering S.Y. $ $54, Coping L.F. $40.00 $5, Tile L.F. $40.00 $6, Seal Coping/Walk Joint L.F $7.50 $1, Heater EA. $8, $8, Filter EA. $2, $2, Filter Pump EA. $1, $1, TENNIS COURTS Repave Courts S.F. $3.50 $94, Resurface (Sports Court) Courts S.F. $2.23 $60, Nets EA. $ $2, Windscreen Repl. Allowance L.S. $ $ Post Tensioned Slab Repairs L.S. $54, $54, TENNIS COURT PRO SHOP Built Up Roofing S.F. $10.00 $7, Downspouts L.F. $8.00 $ Entry Doors EA. $1, $3, Ext. Waterproofing/Siding Repairs L.S. $2, $2, Awning S.F. $20.00 $2, SIGNAGE Monument Sign (4 such) L.S. $34, $34, Building Signs L.S. $135, $135, Clipper Club Signage L.S. $11, $11, Miscellaneous Signage L.S. $6, $6, Anchor CI Signage-90's Misc L.S. $6, $6, THE BOARDWALK Mast EA. $12, $12, Wood/Plexiglass Wall L.F. $ $10, Benches L.F. $35.00 $2, Iron Entry Gates EA. $2, $5, Walk/Structural Repairs L.S. $5, $5, Replace Railings L.F. $60.00 $202, FENCING FINAL FOR PUBLICATION 3 9 5/1/2017

10 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost Iron/Masonry at Property Lines L.F. $ $237, Iron at Pools (Anchor, B & D) L.F. $ $250, Iron at Pools (Clipper) L.F. $75.00 $67, Iron at Pond L.F. $75.00 $28, Iron at Garage L.F. $75.00 $28, Iron Anchor Pool L.S. $5, $5, Iron Railings at Entry Lobbies L.F. $75.00 $33, Cyclone at Tennis Courts L.F. $30.00 $24, Wood Fence Repair Allowance L.S. $1, $1, ELECTRICAL Street Lights and Poles L.S. $50, $50, Street Lights and Poles L.S. $50, $50, Street Lights and Poles L.S. $25, $25, Street Lights and Poles L.S. $25, $25, Street Lights and Poles L.S. $25, $25, Street Lights - Wiring/Controllers EA. $ $12, Landscape Lights EA. $ $4, Yard Lights EA. $ $2, Boardwalk Lights L.S. $7, $7, Clipper Club Interior L.S. $25, $25, Clipper Club Exterior L.S. $30, $30, Anchor Club Interior L.S. $6, $6, Security Office L.S. $1, $1, Office Interior Lights L.S. $1, $1, Tennis Court Lights EA. $ $17, Tennis Court Light Poles EA. $1, $15, Tennis Court Light Timers EA. $2, $5, Stair Lights EA. $ $31, Tennis Pro Shop Exterior Lights EA. $ $ Electric Vehicle Charging Stations L.S. $11, $11, Security Camera - EV Charge. Station L.S. $1, $1, Resid. Bldg Int. Light Repl. Allow L.S. $2, $2, LANDSCAPE, IRRIGATION AND SITEWORK Time Clocks L.S. $8, $8, Time Clocks L.S. $8, $8, Control Valve Replacement Allow L.S. $2, $2, Piping Replacement L.S. $3, $3, " Backflow Preventer - 1 Comm EA. $5, $5, " Backflow Preventer - C. Club EA. $2, $2, " Air Gap Device - Bldg. F EA. $1, $1, " Air Gap Device - Courtyard L.S. $21, $21, Lagoon Liner L.S. $225, $225, Lagoon Fountain Pump EA. $4, $4, Lagoon Aerator EA. $2, $2, Fountain Light Repairs L.S. $2, $2, Tree, Turf and Planting Ongoing L.S. $20, $20, Tree, Turf and Planting (Sewer) L.S. $100, $100, Tree, Turf and Planting (Sewer) L.S. $130, $130, Tree, Turf and Planting (Sewer) L.S. $230, $230, Tree, Turf and Planting (Sewer) L.S. $461, $461, BUILDING WATER SUPPLY SYSTEM " Backflow - Building A Water EA. $12, $12,500 FINAL FOR PUBLICATION /1/2017

11 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost " Backflow - Building B Water EA. $12, $12, " Backflow - Building C Water EA. $12, $12, " Backflow - Building D Water EA. $12, $12, " Backflow - Building E Water EA. $12, $12, " Backflow - Building F Water EA. $15, $15, " Backflow - Building A Sprinkler EA. $5, $5, " Backflow - Building B Sprinkler EA. $5, $5, " Backflow - Building C Sprinkler EA. $5, $5, " Backflow - Building D Sprinkler EA. $5, $5, " Backflow - Building E Sprinkler EA. $5, $5, " Backflow - Building F Sprinkler EA. $5, $5, Gallon Hot Water Tank EA. $9, $19, Gallon Hot Water Tank EA. $9, $19, Gallon Hot Water Tank EA. $9, $9, Gallon Hot Water Tank EA. $6, $6, Storage Tank - Clipper Club EA. $9, $19, Hp Recirculating Pumps EA. $ $1, Hp Circulating Pumps EA. $ $3, Hp Recirculating Pumps EA. $ $3, Hp Circulating Pumps EA. $ $4, Hp Recirculating Pumps EA. $ $4, Hp Circulating Pumps EA. $ $ Boilers - Building A EA. $17, $17, Boilers - Building B EA. $17, $17, Boilers - Building C EA. $17, $17, Boilers - Building D EA. $17, $17, Boilers - Building E EA. $17, $17, Boilers - Building F EA. $17, $17, Boiler - Clipper Club EA. $17, $17, Gas Control Valve L.S. $3, $3, Gas Control Valve L.S. $3, $3, GENERATORS, ELEVATORS AND SUMP PUMPS Generator - Building A EA. $65, $65, Transfer Switch - Building A EA. $11, $11, Generator - Building B EA. $65, $65, Transfer Switch - Building B EA. $11, $11, Generator - Building C EA. $65, $65, Transfer Switch - Building C EA. $11, $11, Generator - Building D EA. $65, $65, Transfer Switch - Building D EA. $11, $11, Generator - Building E EA. $65, $65, Transfer Switch - Building E EA. $11, $11, Generator - Building F EA. $65, $65, Transfer Switch - Building F EA. $11, $11, Elevator Jacks EA. $88, $704, Elevator Jacks EA. $88, $176, Elevator Jacks EA. $88, $88, Elevator Jacks EA. $88, $88, Elevator Jacks EA. $88, $88, Elevator Jacks EA. $88, $88, Elevator Jacks EA. $88, $88, Elevator Jacks EA. $88, $176,000 FINAL FOR PUBLICATION /1/2017

12 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost Elevator Jacks EA. $88, $176, Elevator Jacks EA. $88, $264, Elevator Jacks EA. $88, $352, Elevator Annual Repair/Maint. Allow L.S. $60, $60, Elevator Pit Sump Pumps L.S. $1, $1, Elevator Pit Sump Pumps L.S. $10, $10, Miscellaneous Pickup Pumps L.S. $2, $2, Elevator Phone Systems L.S. $1, $1, Miscellaneous Lobby Furniture L.S. $4, $4, BUILDING LIFE SAFETY & SPRINKLER SYSTEMS Fire Alarm Main & Sub Panels L.S. $80, $80, Smoke Detectors L.S. $235, $235, Heat Detectors L.S. $175, $175, Pull Stations L.S. $7, $7, Water Flow Switches L.S. $5, $5, Speakers L.S. $345, $345, Output Modules L.S. $13, $13, FA Amplifiers L.S. $7, $7, FA Batteries L.S. $4, $4, Fire Alarm Annual Testing L.S. $23, $23, LAAFS - Phase L.S. $750, $750, LAAFS - Phase L.S. $2,732, $2,732, LAAFS - Phase L.S. $2,143, $2,143, LAAFS - Phase 3 (ADT Balance) L.S. $71, $71, Sprinkler System 5 Year Certification L.S. $12, $12, Sprinkler Ann. Cert. (Trash Rooms) L.S. $10, $10, Sprinkler 5 Year Test (All) L.S. $40, $40, Fire Hydrants L.S. $2, $2, Fire Hydrant Supply Lines L.S. $8, $8, Fire Hydrant Supply Lines L.S. $11, $11, Fire Hydrant Supply Lines L.S. $10, $10, HALLWAY SMOKE DOORS Replacement/Repair Allowance L.S. $10, $10, HALLWAY OVERHEAD SMOKE DOORS Replacement/Repair Allowance L.S. $20, $20, RESIDENTIAL BUILDING INTERIORS Outgoing Letter Boxes EA. $ $3, Mail Boxes EA. $ $177, Mail Boxes - Parking Garage Lobbies EA. $ $30, Directory Panels EA. $ $5, Intercom Panel - 6 Admiral EA. $4, $4, Intercom Panel - 8 Admiral EA. $4, $4, Intercom Panel - 7 Commodore EA. $4, $4, Intercom Panel - 9 Commodore EA. $4, $4, Intercom Panel - 2 Admiral EA. $4, $4, Intercom Panel - 4 Admiral EA. $4, $4, Intercom Panel - 3 Commodore EA. $4, $4, Intercom Panel - 5 Commodore EA. $4, $4, Intercom Panel - 7 Captain EA. $4, $4, Intercom Panel - 6 Commodore EA. $4, $4, Intercom Panel - 8 Commodore EA. $4, $4, Intercom Panel - 1 Captain EA. $4, $4,500 FINAL FOR PUBLICATION /1/2017

13 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost Intercom Panel - 3 Captain EA. $4, $4, Intercom Panel - 2 Commodore EA. $4, $4, Intercom Panel - 4 Commodore EA. $4, $4, Intercom Panel - 4 Captain EA. $4, $4, Intercom Panel - 6 Captain EA. $4, $4, Intercom Panel - 8 Captain EA. $4, $4, Intercom Panel - 3 Admiral EA. $4, $4, Intercom Panel - 5 Admiral EA. $4, $4, Intercom Panel - 2 Anchor EA. $4, $4, Intercom Panel - 4 Anchor EA. $4, $4, Lobby Entry Doors EA. $4, $88, Automatic Entry Door Equipment L.S. $25, $25, RESIDENTIAL BUILDING EXTERIORS Single Ply Roof - Building F L.S. $815, $815, Single Ply Roof - Buildings B & D L.S. $1,650, $1,650, Single Ply Roof - Building A L.S. $665, $665, Single Ply Roof - Building C L.S. $665, $665, Single Ply Roof - Building E L.S. $260, $260, Single Ply Roof - Building E L.S. $310, $310, Downspouts - Building A L.S. $15, $15, Downspouts - Building B L.S. $15, $15, Downspouts - Building C L.S. $5, $5, Downspouts - Building D L.S. $15, $15, Downspouts - Building E L.S. $5, $5, Downspouts - Building F L.S. $14, $14, Rooftop AHHU Units - Bldg. F L.S. $37, $37, Rooftop AHHU Units - Bldg. B L.S. $37, $37, Rooftop AHHU Units - Bldg. D L.S. $37, $37, Rooftop AHHU Units - Bldg. A L.S. $37, $37, Rooftop AHHU Units - Bldg. C L.S. $37, $37, Rooftop AHHU Units - Bldg. E L.S. $37, $37, Fascia Repl. Allow. Bldg. F/B L.S. $5, $5, Fascia Repl. Allow. Bldg. A/C L.S. $6, $6, Fascia Repl. Allow. Bldg. D/E L.S. $5, $5, Bldg. Stair/Court Rails - Repl. Allow L.F. $10, $10, Balcony Repair Allow - Bldg. F/B L.S. $10, $10, Balcony Repair Allow - Bldg. A/C L.S. $10, $10, Balcony Repair Allow - Bldg. D/E L.S. $10, $10, Dry Rot/Misc. Repairs - Ongoing L.S. $7, $7, RESIDENTIAL BUILDING COURTYARDS Cap Slab Repair Allowance L.S. $25, $25, Drain Line Repair Allowance L.S. $7, $7, Planter Membrane Repairs L.S. $2, $2, Tree Lights EA. $ $1, MAINTENANCE ALLOWANCES Trash Chute Door Replace. Allow L.S. $67, $67, Trash Chute Door Replace. Allow L.S. $5, $5, Trash Chute Door Replace. Allow L.S. $5, $5, Trash Chute Door Replace. Allow L.S. $5, $5, Trash Chute Door Replace. Allow L.S. $5, $5, Trash Chute Door Replace. Allow L.S. $5, $5, Post Tensioned Conc. Slab Repairs L.S. $10, $10,000 FINAL FOR PUBLICATION /1/2017

14 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost Energy Improvement Study L.S. $50, $50, Drywood Termite Treatments L.S. $2, $2, Rekey Bike Rooms L.S. $25, $25, Rekey Buildings L.S. $100, $100, Recreation Key Fob Access L.S. $225, $225, Penthouse Deck Replacement L.S. $9, $9, Roofing Inspection/Repair Allow L.S. $10, $10, PERSONAL PROPERTY Freestanding Benches EA. $ $1, Upgrade Computers L.S. $7, $7, Clipper Club PA System L.S. $5, $5, Clipper Club Furniture L.S. $1, $1, Clipper Club Furniture L.S. $65, $65, Clipper Club Kitchen Euipment L.S. $6, $6, Clipper Club Kitchen Euipment L.S. $1, $1, Exer. Equip. Rep. Allow. - Ongoing L.S. $10, $10, Exer. Equip. Rep. Allow. - Ongoing L.S. $10, $10, Exer. Equip. Rep. Allow. - Ongoing L.S. $5, $5, Exer. Equip. Rep. Allow. - Major L.S. $25, $25, Pool/Courtyard Furnishings L.S. $2, $2, Lounge/Laundry Furniture L.S. $5, $5, Office Renovations L.S. $10, $10, Communication Systems L.S. $25, $25, Radio System L.S. $8, $8, Phone System L.S. $20, $20, Work Cart Replacement Allowance L.S. $5, $5, Portable Pool Lift L.S. $6, $6, Street Sweeper L.S. $40, $40, INTERIOR IMAGE ENHANCEMENT Interior Redecorate - Profess. Fees L.S. $60, $60, Interior Redecorate - Profess. Fees L.S. $355, $355, Interior Redecorate - Profess. Fees L.S. $197, $197, Interior Renovation - Prototype L.S. $55, $55, Interior Redecorate - Profess. Fees L.S. $98, $98, Interior Redecorate - Profess. Fees L.S. $11, $11, Interior Redecorate - Profess. Fees L.S. $9, $9, Interior Redecorate - Profess. Fees L.S. $1, $1, Automatic Doors L.S. $13, $13, Automatic Doors L.S. $24, $24, Automatic Doors L.S. $24, $24, Automatic Doors L.S. $24, $24, Interior Finishes L.S. $558, $558, Interior Finishes L.S. $3,422, $3,422, Interior Finishes L.S. $1,857, $1,857, Interior Finishes L.S. $39, $39, Ongoing Carpet Replace. Allow L.S. $2, $2, EXTERIOR IMAGE ENHANCEMENT Security Camera System L.S. $200, $200, Security Camera System L.S. $17, $17, Security System Upgrades L.S. $210, $210, Exterior W'Proofing - Bldgs. F/B L.S. $992, $992, Exterior W'Proofing - Bldgs. A/C L.S. $1,317, $1,317,196 FINAL FOR PUBLICATION /1/2017

15 Code Component Year Expect. Component Unit of Unit Total Comp. # Description New Life Measure. Measure Cost Replace. Cost Exterior W'Proofing - Bldg. D/E L.S. $1,184, $1,184, Stucco Rep. Allow. - Bldg. F/B L.S. $100, $100, Stucco Rep. Allow. - Bldg. A/C L.S. $135, $135, Stucco Rep. Allow. - Bldg. D/E L.S. $130, $130, Exterior Lighting Upgrades L.S. $30, $30, Exterior Lighting Upgrades L.S. $30, $30, Exterior Lighting Upgrades L.S. $30, $30, STORM SEWERS Captain Drive L.S. $25, $25, Ensign Drive L.S. $25, $25, Commodore Drive L.S. $25, $25, Admiral Drive L.S. $25, $25, Anchor Drive L.S. $25, $25,000 TOTAL VALUE OF ALL COMPONENTS $36,977, by Community Reserve Solutions FINAL FOR PUBLICATION /1/2017

16 Watergate Community Association 2017/2018 Notes and Photographs GENERAL NOTE REGARDING LANDSCAPING AND WATER USEAGE The California State Assembly has passed, and the governor has signed into law, Assembly Bill 1881, The Model Water Efficint Landscape Ordinance (WELO) which requires all properties (of certain types) that have 2500 square feet (1000 square feet in San Francisco) of landscape area to reduce their water useage for irrigation by 10% by the year 2016, and by 20% by the year This will likely require that all complying properties submit plans and pull permits for irrigation system upgrades, to install smart controllers and to remodel/renovate their irrigation systems with more efficient types. We have assumed that the following will occur, within this reserve study. 1 Smart Controller(s) will be installed by Irrigation System plans and specifications will be submitted and permits pulled in Irrigation Distribution Systems will be remodelled/renovated in GENERAL NOTE REGARDING SOFT STORY CONSTRUCTION The California State Assembly has passed, and the governor has signed into law, Assembly Bill 304, relating to building standards regarding "soft-story" constuction. A soft-story building is one with carports (or garages) built below residential living units. This Act allows cities within the State of California to madate an upgrading of these structures to resist earthquake forces. Currently, few cities in California have mandated such construction upgrades. This study does not include the costs of such upgrades which may be substantial. Should this be required, it is likely that a Special Assessment wll be required. THE WATERGATE COMMUNITY ASSOCIATION IS CURRENTLY WORKING WITH THE EAST BAY MUNICIPAL UTILITIES DISTRICT (EBMUD) REGARDING WATER USAGE. THE EXPENDITURES SHOWN ABOVE MAY NOT APPLY TO YOUR ASSOCIATION. GENERAL NOTE REGARDING THE SEWER PROJECT THE WATERGATE COMMUNITY ASSOCIATION IS CURRENTLY WORKING WITH THE EAST BAY MUNICIPAL UTILITIES DISTRICT DISTRICT (EBMUD) REGARDING THE SEWER REPLACEMENT PROJECT. THE EXTENT OF THE PROJECT AND THE COSTS INVOLVED MAY CHANGE GIVEN THE DISTRICTS INPUT. FINAL FOR PUBLICATION /1/2017

17 6.00 SANITARY SEWER RENOVATION PROJECT ALL COMPONENTS The sanitary sewer replacement project is scheduled to begin during the 2017 project and run through the 2019 budget year. FINAL FOR PUBLICATION /1/2017

18 8.00 CONCRETE 8.01 SIDEWALK REPLACEMENT ALLOWANCE - ONGOING There are numerous trip and fall hazards on the property that should be rectified during the upcoming budget year. FINAL FOR PUBLICATION /1/2017

19 9.00 PARKING GARAGES 9.05 PIPE REHANGING ALLOWANCE There are a few pipes that require rehanging (or adjustment) in order to flow properly to the drain line. We would recommend that this be done as soon as possible. FINAL FOR PUBLICATION /1/2017

20 10.00 CLIPPER CLUB COMPOSITION SHINGLE ROOF The roofing on the Clipper Club did not fair well during the winter of 2016/2017 and repairs are necessary to the composition shingle roof. We would highly recommend the association have these repairs completed immediately. FINAL FOR PUBLICATION /1/2017

21 12.00 through POOLS AND SPAS , 14.04, 15.04, AND MASTIC JOINTS AT POOL DECK/COPING These joints have begun failing and should be redone in during the 2017/2018 budget year. FINAL FOR PUBLICATION /1/2017

22 22.00 FENCING WOOD FENCE REPAIR ALLOWANCE The wood fence at the property line, near Trader Vic's is in need of repairs. FINAL FOR PUBLICATION /1/2017

23 36.00 EXTERIOR IMAGE ENHANCEMENT EXTERIOR WATERPROOFING - ALL BUILDINGS The exterior water proofing is in failure mode. Rewaterproofing is scheduled for This photograph illustrates an are near a window where water has penetrated below the waterproofing surface. FINAL FOR PUBLICATION /1/2017

24 This photograph shows an area of the Post-tensioned slab that is in need of repairs and waterproofing by Community Reserve Solutions FINAL FOR PUBLICATION /1/2017

25 Watergate Community Association 2017/2018 First Ten Years Reserve Expenditures Flow Chart Please Note that year new refers to this association's fiscal year. IE, 2017 refers to 2017/2018 fiscal year. Expect. Est. Total Cost Year Year Year Year Year Year Year Year Year Year Code Component Year Useful Remain. Component # Description New Life Life Replacement ASPHALT - Anchor Drive 1.01 Asphalt Sealing/Striping $ Asphalt Repairs $10, ASPHALT - Admiral Drive 2.01 Asphalt Sealing/Striping $6, Asphalt Repairs $10, Speed Bumps $1, ASPHALT - Commodore Drive 3.01 Asphalt Sealing/Striping $8, Asphalt Repairs $15, Speed Bumps $1, ASPHALT - Captain Drive 4.01 Asphalt Sealing/Striping $9, Asphalt Repairs $15, Speed Bumps $2, ASPHALT - Ensign Drive 5.01 Asphalt Sealing/Striping $6, Asphalt Repairs $5, SANITARY SEWER RENOVATION PROJECT 6.01 Anchor Drive $321, Admiral Drive $865, Commodore Drive $1,666, Captain Drive $1,161, Ensign Drive $609, Powell Street (Building B) $167, Powell Street (Building D) $187, ASPHALT - PARKING GARAGES ONLY 7.01 Asphalt Sealing/Striping $125, Asphalt Repair Allowance $120, CONCRETE 8.01 Sidewalk Replace. Allow. - Ongoing $5, Step Replacement Allowance $1, Curb Replacement Allowance $1, Pipe Bollards $750 FINAL FOR PUBLICATION /1/2017

26 Expect. Est. Total Cost Year Year Year Year Year Year Year Year Year Year Code Component Year Useful Remain. Component # Description New Life Life Replacement Parking Bumpers - Roads $6, Pool Deck - Clipper Club & Spa $125, Pool Deck - Anchor Club $114, Pool Deck - Building B $74, Pool Deck - Building D $74, Brick Paving Repair Allowance $1, PARKING GARAGES 9.01 Entry Door Replacement Allowance $3, Trash Room Doors (Pairs) $34, Overhead Doors $18, Convex Mirror Replacement Allow $2, Pipe Rehanging Allowance $2, CLIPPER CLUB EXTERIOR Composition Shingle Roofing $58, Gutters $3, Downspouts $1, Aluminum Entry Doors $7, Entry Doors $12, Ext. Waterproofing/Siding Repairs $40, Wood Deck/Rail/Stair Rep. Allow $4, Clipper Club Access Improvement $300, ANCHOR CLUB/CLIPPER CLUB AND OFFICE INTERIORS Carpeting - Anchor Club $1, Carpeting - Clipper Club Gym $32, Carpeting - Clipper Club Lounge $4, Carpeting - Offices/Stairs $7, Carpeting - Offices $7, Carpeting - Classroom F $1, Lockers $30, Clipper Club Moveable Walls $5, Clipper Club Window Blinds $11, Clipper Club Heat Exchangers $4, Wood Benches $ Sauna Heaters $3, Sauna Controllers $4, Steam Generators/Controls $10, Doors - Solid $23, Doors - Glass $2, FINAL FOR PUBLICATION /1/2017

27 Expect. Est. Total Cost Year Year Year Year Year Year Year Year Year Year Code Component Year Useful Remain. Component # Description New Life Life Replacement Mats - Clipper Club $12, Anchor Club Gas Meter Room Rep's $12, SWIMMING POOL - CLIPPER CLUB Replastering (C/C Pool rebuild) $139, Coping $9, Tile $13, Seal Coping/Walk Joint $1, Heater $32, Heater - Repairs $7, Filter $10, Filter Pump $3, Pool Cover $2, Pool Cover $5, Pool Cover Spool $1, SPA - CLIPPER CLUB Replastering $13, Coping $2, Tile $4, Seal Coping/Walk Joint $1, Heater $5, Filter $4, Filter Pump $1, Jet Pump $1, SWIMMING POOL - ANCHOR CLUB Replastering $40, Coping $10, Tile $11, Seal Coping/Walk Joint $1, Heater $24, Filter $2, Filter Pump $1, Pool Covers $5, SPA - ANCHOR CLUB Rebuild Spa $45, Heater $4, Filter $4, Filter Pump $1, Jet Pump $1, FINAL FOR PUBLICATION /1/2017

28 Expect. Est. Total Cost Year Year Year Year Year Year Year Year Year Year Code Component Year Useful Remain. Component # Description New Life Life Replacement SWIMMING POOL - BUILDING B Replastering $54, Coping $5, Tile $6, Seal Coping/Walk Joint $1, Heater $8, Filter $3, Filter Pump $1, SWIMMING POOL - BUILDING D Replastering $54, Coping $5, Tile $6, Seal Coping/Walk Joint $1, Heater $8, Filter $2, Filter Pump $1, TENNIS COURTS Repave Courts $94, Resurface (Sports Court) Courts $60, Nets $2, Windscreen Repl. Allowance $ Post Tensioned Slab Repairs $54, TENNIS COURT PRO SHOP Built Up Roofing $7, Downspouts $ Entry Doors $3, Ext. Waterproofing/Siding Repairs $2, Awning $2, SIGNAGE Monument Sign (4 such) $34, Building Signs $135, Clipper Club Signage $11, Miscellaneous Signage $6, Anchor CI Signage-90's Misc $6, THE BOARDWALK Mast $12, Wood/Plexiglass Wall $10, Benches $2,905 FINAL FOR PUBLICATION /1/2017