Component Analysis

Reserve Data Analysis

est. 1983

www.rdanorthwest.com

About Reserve Data Analysis

Since 1983 we have provided thousands of thorough and well thought out catered reserve studies and have offices through the US.

Component Analysis Topics

2

3

4

The Component Analysis is the foundation for the Reserve Study. 1

Determine what components to include in the study

Special considerations during the Component Analysis

Research and compile necessary data for components.

Component Analysis is the Foundation

Reserve Study

Funding Strategy

Financial Analysis

Component Analysis

All other sections of the Reserve Study are based on the Components Analysis which includes costs figures and a timeline of expenditures in the study.

Process - The Reserve Study

Step 1 Step 2 Step 4

Step 3

Component Analysis

Financial Analysis

Develop Financial Strategy

Completed Reserve

Study

Developing a reserve study report requires numerous important steps.

Choosing Components

Governing Documents

Statutory Requirements

National Reserve Study Standards

Historical

Components are chosen based on National Reserve Study Standards, a review of governing documents, how historically a community has treated them and statutory requirements.

Review Governing Documents

A review of the governing documents and maps are important steps in the reserve study process.

Questions may come up about the interpretation of the governing documents or map referneces.

If governing documents are not clear as to who maintains a component the historical treatment and the Boards interpretation of the governing documents is typically followed.

National Reserve Study Standards

Association Responsibilit

y

Limited Useful Life

Predictable Remaining

Life

Above Minimum

Cost

Does the component meets the four part test outlined in National Reserve Study Standards (CAI).

Washington State Statutes

WA State RCW 64.34.382 – Reserve Study - Contents

(a) A reserve component list, including roofing, painting, paving, decks, siding, plumbing, windows, and any other reserve component that would cost more than one percent of the annual budget for major maintenance, repair, or replacement. If one of these reserve components is not included in the reserve study, the study should provide commentary explaining the basis for its exclusion.

Comprehensive Site Inspection

Picture Inventory

• Many pictures taken• Deferred

maintenance items photos

Interview Representative

• Meet and interview representative

• Walk property with representative

Access Mechanical Areas

• Visual inspection of mechanical equipment an equipment rooms necessary

Measurements

• Itemized List• Fixtures Counted• Square Footage

Condition Assessment

• Visual Inspection• Condition Level• Remaining Useful

life

Locations

• Location in Community

• Different Phases Indicated when Applicable

Component Research

Back at the office research for current costs and historical records of

the components is completed.

Phone interviews of Vendors, Board Members

and others may be necessary.

Utilizing bids obtained, cost manuals, interviews and historical costs data to create to finished list.

Component Analysis

QuantifyUseful

LifeRemaining Useful Life

Current Replacement

Cost

Component List Fully

Developed

Special Considerations

• Phasing multiple components in the study – different condition levels (e.g. roofs are different ages on different building).

• Partial replacement or contingency – (e.g. concrete repair - 5% contingency every 3 years).

• Significant non-annual maintenance expenses to extend useful life of components may be a separate component. (e.g. mechanical equipment cleaning)

Refining the Component List

Some component repairs & replacement are covered by insurance. Fire, acts of nature, poor component installs, etc.

No need to be overly detailed. Similar components with similar useful life and costs can be bundled into one component. (e.g. pool furniture)

IRS & Accounting interpretations of components often should not be utilized. Usually these are for tax purposes and not long term budget planning.

Update the Reserve Study to update the component list – Some items that were once not included can be aged into the study. (e.g. plumbing failures in an older community).

Sample Component List

Timeline of Expenditures for Components Created

Recap – Component Analysis

• Review Community Documents

• Site Inspection

Visual Site Inspection

• Interview Boards members, vendors

• Research costs data and useful life's with costs manuals and prior interviews

Research in Office • Develop the comprehensive list

• Develop the timeline of expenses and repair / replacement schedule

• Confirm list with Client

Finalize Component Analysis

Do you haveany questions????Contact Us

Ph: 866-574-5115

www.rdanorthwest.com