Exhibit (46c) 01-13-2021 General Packet.pdf

24F-H051-REL · Department of Real Estate - H/C · 2024-06-21

Village at Rio Paseo Condominium Association www.villageatriopaseo.org

AAM Customer Service | 800.354.0257 AAM Afterhours Emergency | 866.553.8290

BOARD OF DIRECTORS MEETING: OPEN SESSION January 13, 2021 at 5:30 PM Zoom

Board of Directors Meetings are scheduled for the Board to conduct Association business and this is accomplished through a process of discussion, deliberation, and decision-making. Homeowner questions, comments, concerns and opinions are important to the Board and the homeowners in attendance should have an opportunity to be heard in this process. In order to ensure that all comments are heard, the Board has the authority to place reasonable time restrictions on those wanting to be heard, per ARS 33-1804 / 33-1248. The Board may not act on items brought forth in the Homeowner Forum but can set them for a future agenda item. Please know that prior to the Board taking a formal action on an item under discussion, the homeowners will have an opportunity to give their opinion.

OPEN SESSION AGENDA

1. Call to Order/Verification of Board Quorum

 Guest Speaker – Fred – The Pigeon Guy

2. Review & Approval of Previous Meeting Minutes

3. Financial Review November 2020

New Business 4. Landscape Proposals/Ryan -ABC Scapes a. #1000202 Removal/Replacement Trees b. #1000203 Replacement Plants c. Backflow Repair – $1,570.42 d. #1000214 Drywell rip rap - $2,612.58

5. Gate Repairs – Budget is: $650/mo. a. Signature (Current Vendor) - $2,263.14 b. Gate Guys - $2,003.57 c. Genesis Builders - $1,980.41

6. Insurance Opinion a. Bare Wall Policy & Water Resolution – LeAnn Brum – Mahoney Group

Old Business 7. Reserve Study Proposal – Budget $3,000 a. Association Reserves – (Recommended) $2,230 b. Reserve Advisors - $3,950 c. Advanced Reserve Solutions (ARS) - $1,400 - $3,000

Message from Fire Marshall regarding streets

8. Parking Striping Proposal – Unbudgeted/Common Expense a. TSS Enterprises - $3,621.70 b. ACR - $3,900.00 c. Cactus Asphalt - $750 (Does not include sign/posts as others do)

9. Parking Enforcement a. Board Discussion

Next Meeting Dates: 3rd Wednesday of Month  February 17, 2021  March 17, 2021*  April 21, 2021  May 19, 2021  June 23, 2021* 4th

Homeowner Questions – Review Survey Results

Adjournment

There was an Executive Session Meeting prior to the Open Session Meeting as per Arizona Revised Statutes to address the following topics:

ARS Section 33-1804 / 33-1248 (A)(2) Sections -Delinquency Report, Legal Opinion

Village at Rio Paseo Balance Sheet Period 11/30/2020

Operating Reserve Total

Assets Operating Account 11000 Operating Checking 94,580.88 94,580.88

Total Operating Account 94,580.88 94,580.88

Reserve Account 11500 Reserve Fund Savings 53,558.62 53,558.62 11501 Reserve Fund Savings ICS 281,484.15 281,484.15

Total Reserve Account 335,042.77 335,042.77

Asset 11025 Utility Deposits 400.00 400.00

Total Asset 400.00 400.00

Total Assets 94,980.88 335,042.77 430,023.65

Liabilities & Equity Liability 22000 Prepaid Assessments 20,826.48 20,826.48

Total Liability 20,826.48 20,826.48

Equity 35101 Members' Equity-Prior Years 31,518.86 31,518.86 35201 Reserve Members' Equity-Prior Years 280,327.93 280,327.93 Current Year Surplus/(Deficit) 42,635.54 54,714.84 97,350.38

Total Equity 74,154.40 335,042.77 409,197.17

Total Liabilities & Equity 94,980.88 335,042.77 430,023.65

12/10/2020 2:45:47 PM

Village at Rio Paseo Budget Comparison Statement Posted 11/1/2020 To 11/30/2020 11:59:00 PM

Current Month Year to Date Annual Actual Budget Variance Actual Budget Variance Budget

Income Assessment Revenue 40005 Assessments 36,959.43 27,977.00 8,982.43 348,375.59 269,312.64 79,062.95 297,843.64 40024 Subsidy 0.00 0.00 0.00 10,701.52 27,190.77 (16,489.25) 27,190.77 40025 Assessments - Builder 36.93 69.25 (32.32) 19,943.34 3,393.25 16,550.09 3,531.75

TOTAL Assessment Revenue 36,996.36 28,046.25 8,950.11 379,020.45 299,896.66 79,123.79 328,566.16

Other Operating Income 41001 HOA Transfer Fees 0.00 0.00 0.00 1,000.00 0.00 1,000.00 0.00 41015 Working Capital Fees 0.00 1,662.00 (1,662.00) 43,656.20 21,373.92 22,282.28 23,035.92 41025 Reserve Fund Fees 0.00 1,662.00 (1,662.00) 43,894.52 21,373.92 22,520.60 23,035.92 42001 Late Fee 27.70 0.00 27.70 943.64 0.00 943.64 0.00 42005 CC&R Violation 0.00 0.00 0.00 50.00 0.00 50.00 0.00 42024 Developer Reimbursements 0.00 0.00 0.00 1,101.71 0.00 1,101.71 0.00 42045 FOB / Gate / Key Income 270.00 0.00 270.00 670.00 0.00 670.00 0.00 49001 Transfers to Reserve Fund (7,945.00) (6,283.00) (1,662.00) (43,500.48) (66,021.08) 22,520.60 (72,304.08) 49002 Transfer of Reserve Fund Fees 0.00 (1,662.00) 1,662.00 (43,894.52) (21,373.92) (22,520.60) (23,035.92)

TOTAL Other Operating Income (7,647.30) (4,621.00) (3,026.30) 3,921.07 (44,647.16) 48,568.23 (49,268.16)

TOTAL Income 29,349.06 23,425.25 5,923.81 382,941.52 255,249.50 127,692.02 279,298.00

Expense Contracted Services 55002 Trash Collection Contract 1,870.31 1,400.00 (470.31) 15,064.12 13,700.00 (1,364.12) 14,800.00 55003 Cable Contract 194.77 180.00 (14.77) 2,142.40 1,980.00 (162.40) 2,160.00

12/10/2020 2:44:21 PM

Village at Rio Paseo Budget Comparison Statement Posted 11/1/2020 To 11/30/2020 11:59:00 PM

Current Month Year to Date Annual Actual Budget Variance Actual Budget Variance Budget

55014 Gate Maintenance Contract 0.00 0.00 0.00 750.00 1,000.00 250.00 1,000.00 55016 Fire Monitoring Contract 558.02 962.00 403.98 8,800.35 9,152.00 351.65 10,140.00 55022 Janitorial Contract 590.00 395.00 (195.00) 5,365.00 4,345.00 (1,020.00) 4,740.00 55025 Landscape Contract 0.00 2,900.00 2,900.00 26,349.00 29,792.00 3,443.00 32,726.00 55026 Tot Lot Maintenance Contract 0.00 0.00 0.00 80.00 220.00 140.00 220.00 55028 Gate Programming 0.00 35.00 35.00 245.00 385.00 140.00 420.00 55032 Pool & Spa Maintenance Contract 560.00 778.00 218.00 5,110.46 9,926.00 4,815.54 10,704.00 55033 Security & Fire Inspection 0.00 0.00 0.00 686.75 1,360.00 673.25 1,360.00 55035 Management Contract 1,296.00 1,098.00 (198.00) 12,930.25 12,078.00 (852.25) 13,176.00 55072 Fitness Equipment Maintenance Contract 0.00 0.00 0.00 810.00 700.00 (110.00) 700.00 55115 Exterminating Contract 395.00 145.00 (250.00) 1,825.00 1,595.00 (230.00) 1,740.00

TOTAL Contracted Services 5,464.10 7,893.00 2,428.90 80,158.33 86,233.00 6,074.67 93,886.00

General & Administrative 51035 Postage & Copies 367.65 260.00 (107.65) 5,409.65 2,176.00 (3,233.65) 2,372.00 51046 Gate/Key Expense 0.00 0.00 0.00 3,522.96 700.00 (2,822.96) 700.00 51065 Insurance (13,224.03) 0.00 13,224.03 25,085.41 19,500.00 (5,585.41) 19,500.00 51125 Meeting & Community 75.00 0.00 (75.00) 200.00 175.00 (25.00) 175.00 51155 Legal Fees - General 0.00 0.00 0.00 607.50 500.00 (107.50) 500.00 51156 Legal Fees - Collections 0.00 0.00 0.00 15.00 400.00 385.00 400.00 51165 Taxes, Licenses & Fees 0.00 0.00 0.00 210.00 210.00 0.00 210.00 51167 Income Taxes - State 0.00 0.00 0.00 50.00 50.00 0.00 50.00 51170 Permits/Inspections 0.00 0.00 0.00 495.00 495.00 0.00 495.00 51175 Bank Charges 0.00 0.00 0.00 10.00 10.00 0.00 10.00

12/10/2020 2:44:21 PM

Village at Rio Paseo Budget Comparison Statement Posted 11/1/2020 To 11/30/2020 11:59:00 PM

Current Month Year to Date Annual Actual Budget Variance Actual Budget Variance Budget

51195 CPA Services 0.00 0.00 0.00 675.00 795.00 120.00 795.00 51205 Reserve Study 0.00 0.00 0.00 0.00 3,000.00 3,000.00 3,000.00

TOTAL General & Administrative (12,781.38) 260.00 13,041.38 36,280.52 28,011.00 (8,269.52) 28,207.00

Repairs & Maintenance 53005 Common Area Maintenance 668.54 250.00 (418.54) 11,511.91 3,250.00 (8,261.91) 3,500.00 53027 Janitorial Supplies 0.00 45.00 45.00 220.00 495.00 275.00 540.00 53035 Electrical & Lighting Maintenance 0.00 150.00 150.00 1,282.09 1,650.00 367.91 1,800.00 53048 Fire Monitoring Repairs 0.00 0.00 0.00 1,717.08 1,100.00 (617.08) 1,100.00 53055 Pest Control 0.00 0.00 0.00 834.00 700.00 (134.00) 700.00 53075 Key & Lock Repairs 0.00 0.00 0.00 (9.36) 0.00 9.36 0.00 53108 Roof Repair 0.00 0.00 0.00 975.00 850.00 (125.00) 850.00 53205 Pool / Spa Repairs & Maintenance 37.91 0.00 (37.91) 1,980.07 2,300.00 319.93 2,300.00 53215 Pool / Spa Supplies & Chemicals 350.91 280.00 (70.91) 3,372.15 3,080.00 (292.15) 3,360.00 53305 Landscape - Other 75.00 300.00 225.00 1,214.27 5,870.00 4,655.73 6,170.00 53316 Irrigation Repair 470.50 100.00 (370.50) 4,209.22 1,400.00 (2,809.22) 1,500.00 53325 Plant & Tree Replacement 0.00 0.00 0.00 789.33 1,000.00 210.67 1,000.00 53331 Pre/Post Emergent 0.00 0.00 0.00 2,747.26 900.00 (1,847.26) 900.00 53335 Winter Overseeding 0.00 0.00 0.00 2,164.34 900.00 (1,264.34) 900.00 53345 Tree Pruning 0.00 0.00 0.00 5,722.00 6,200.00 478.00 6,200.00 53358 Turf Aeration 0.00 0.00 0.00 0.00 600.00 600.00 600.00 53370 Drywell Maintenance 0.00 0.00 0.00 5,425.00 0.00 (5,425.00) 0.00 53405 Gate Maintenance & Repairs 0.00 0.00 0.00 7,059.07 1,250.00 (5,809.07) 1,250.00 53507 Rec Center Equipment Repairs 0.00 0.00 0.00 635.00 800.00 165.00 800.00

12/10/2020 2:44:21 PM

Village at Rio Paseo Budget Comparison Statement Posted 11/1/2020 To 11/30/2020 11:59:00 PM

Current Month Year to Date Annual Actual Budget Variance Actual Budget Variance Budget

53515 Backflow Inspection 0.00 0.00 0.00 0.00 400.00 400.00 400.00

TOTAL Repairs & Maintenance 1,602.86 1,125.00 (477.86) 51,848.43 32,745.00 (19,103.43) 33,870.00

Utilities 52005 Electricity 3,626.87 1,700.00 (1,926.87) 40,257.39 18,700.00 (21,557.39) 20,400.00 52007 Electricity - Streets 616.90 700.00 83.10 5,531.82 7,700.00 2,168.18 8,400.00 52026 Water - Landscape 2,154.85 1,500.00 (654.85) 16,661.10 17,160.00 498.90 18,560.00 52028 Water & Sewer - Residential 6,366.69 5,000.00 (1,366.69) 94,184.42 55,050.00 (39,134.42) 60,050.00 52045 Gas 153.66 200.00 46.34 1,705.38 2,325.00 619.62 2,525.00 52055 Telephone 1,180.50 1,150.00 (30.50) 13,678.59 12,250.00 (1,428.59) 13,400.00

TOTAL Utilities 14,099.47 10,250.00 (3,849.47) 172,018.70 113,185.00 (58,833.70) 123,335.00

TOTAL Expense 8,385.05 19,528.00 11,142.95 340,305.98 260,174.00 (80,131.98) 279,298.00

Current Year Surplus / (Deficit) 20,964.01 3,897.25 17,066.76 42,635.54 (4,924.50) 47,560.04 0.00

12/10/2020 2:44:21 PM

Village at Rio Paseo Budget Comparison Statement Posted 11/1/2020 To 11/30/2020 11:59:00 PM

Current Month Year to Date Annual Actual Budget Variance Actual Budget Variance Budget

Income Reserve Income 85001 Reserve Interest 40.85 43.06 (2.21) 714.92 421.08 293.84 465.13 89001 Transfers from Operating Fund 7,945.00 6,283.00 1,662.00 44,396.77 66,021.08 (21,624.31) 72,304.08 89002 Transfers of Reserve Fund Fees 0.00 1,662.00 (1,662.00) 42,998.23 21,373.92 21,624.31 23,035.92

TOTAL Reserve Income 7,985.85 7,988.06 (2.21) 88,109.92 87,816.08 293.84 95,805.13

TOTAL Income 7,985.85 7,988.06 (2.21) 88,109.92 87,816.08 293.84 95,805.13

Expense Reserve Expense 91013 Landscape Improvement 0.00 0.00 0.00 16,992.34 0.00 (16,992.34) 0.00 91023 Tot Lot Maintenance 0.00 0.00 0.00 1,089.20 0.00 (1,089.20) 0.00 91046 Tot Lot Turf 0.00 0.00 0.00 1,734.58 0.00 (1,734.58) 0.00 91074 Pool - Replaster & Tile 0.00 0.00 0.00 13,578.96 21,725.00 8,146.04 21,725.00

TOTAL Reserve Expense 0.00 0.00 0.00 33,395.08 21,725.00 (11,670.08) 21,725.00

TOTAL Expense 0.00 0.00 0.00 33,395.08 21,725.00 (11,670.08) 21,725.00

Current Year Surplus / (Deficit) 7,985.85 7,988.06 (2.21) 54,714.84 66,091.08 (11,376.24) 74,080.13

12/10/2020 2:44:21 PM

___________________ HOMEOWNERS ASSOCIATION

BOARD OF DIRECTORS RESOLUTION REGARDING DAMAGE TO LOTS, INSURANCE DEDUCTIBLES, AND WATER LEAK PREVENTION

WHEREAS, _________________ Association (“Association”) is governed by a Declaration of Covenants, Conditions and Restrictions ________________, recorded at recording number ______________, Official Records of ______________ County, Arizona, and all amendments thereto (“Declaration”). The Declaration applies to the real property as described in the Plat recorded in Book __________ of Maps, Page __________of the Official Records of _____________ County, Arizona;

WHEREAS, all Lots within the Association are governed by the Declaration;

WHEREAS, Sections _________ and ____________ of the Declaration allow the Association, through the Board of Directors, to adopt and enforce reasonable rules and regulations governing all parts of the Project, including the Lots.

WHEREAS, Sections _____ and _______ of the Declaration provide that the Association is responsible for the maintenance, repair and replacement of the Common Elements.

WHEREAS, Section __________ of the Declaration provides that Lot Owners are responsible for the maintenance, repair and replacement of their own Lots except as provided by the Association. The Association, according to Section ______ and Section _________, is responsible for the maintenance, repair and replacement of the roofs of the Buildings on the Lots, the painting of the exterior of the Buildings and Party Fences, repair and replacement of exterior trim and fences, the repair and maintenance of exterior lighting attached or mounted to Buildings used to illuminate the Common Elements, and the maintenance of landscaping in the Landscaped Areas on the Lots.

WHEREAS, in the event of partial or complete destruction of or damage to a Lot, it is each Owner’s responsibility, at his sole cost and expense, to repair his Lot, according to Section _________ of the Declaration, and it is the Owner’s responsibility to carry adequate fire, hazard and casualty insurance covering the Lot and personal property, according to Sections ______ and ____.

WHEREAS, Section ______ of the Declaration provides that Lot Owners are responsible for damage caused to Common Elements by the Owner or the Owner’s, tenants, guests, licensees or invitees.

WHEREAS, Sections _______ and _______ of the Declaration obligate the Association to carry hazard insurance on the Common Elements and permit the Association to obtain other insurance, which can include hazard insurance on the Buildings and Lots.

WHEREAS, the Declaration has no express language on the responsibility for payment of deductibles for work incurred based on a claim on the Association’s insurance policy, if there is coverage and the work is on the Buildings or Lots and the Board wishes to clarify its current practice under the Declaration.

NOW, THEREFORE, based on the power authorized to the Board of Directors and the responsibilities of the Owners, the Board of Directors hereby adopts the following resolution and makes the provisions below part of the Association’s rules and regulations, concerning damage and destruction of Lots, i.e. damage from hazards, perils, sudden losses, fire, acts of nature (e.g. hail, tornado), etc. that are not normal “wear and tear”, hereafter “damage”:

RULES COVERING THE COSTS OF DAMAGE IF LESS THAN THE INSURANCE DEDUCTIBLE

1. If damage occurs solely to a Lot and the amount of such damage is less than the Association’s insurance deductible, the owner of the Lot shall be responsible for the cost for repair, replacement or restoration thereof. This also applies to those portions of the Lot to which the Association provides routine maintenance (e.g. roofs), but the Association Board reserves the right to determine that the Association will make repairs to such portions of the Lot.

2. If damage occurs to more than one Lot that is less than the Association’s insurance deductible, each respective Lot Owner shall be responsible for full payment of the cost of the repair, replacement or restoration thereof.

3. If damage occurs solely to the Common Elements that is less than the Association’s insurance deductible, the Association shall be responsible for the costs of repair, replacement or restoration thereof, unless the damage was caused by the negligence or willful misconduct of an Owner

or the Owners guests, tenants, licensees or invitees for which the Owner shall be held responsible.

4. Each Owner should be aware of the amount of the Association’s insurance deductible so that the Owner carries proper insurance coverage to meet any gaps in insurance coverage. Each Owner is ultimately responsible for adequately insuring his or her own Lot, whether the Association insures or not.

RULES RELATING TO PAYMENT OF INSURANCE DEDUCTIBLES

1. In the event that partial or complete damage covered by the Association’s insurance policy is caused by the negligence or willful act of a Lot Owner, the Owner’s residents, family, guests, tenants or invitees, or from other known or unknown causes without any negligence being attributable, such Lot Owner shall be liable for the full amount of any deductible on the Association’s insurance policy, even if the Association causes contractors to be paid in order to facilitate adjusting the claim. The Association may ask for payment in advance from the Owner, or may ask for reimbursement and will sue if necessary to recover such funds.

2. In the event that more than one Lot is involved in any insured loss, and the cause of the damage cannot be attributable to any one Lot or Owner, if there is a single deductible it will be proportionately distributed among all Lots that have experienced the loss.

4. In the event that the cause of the insured loss is directly attributable to a failure in operation of a portion of the Common Elements, the Association shall pay the deductible.

RULES REGARDING INSURANCE CLAIM PROCEDURES

1. Lot Owners must file all claims with the Association’s managing agent, not with the Association’s insurance agent. The managing agent will not refer the claim to the Association’s insurance agent until the Lot Owner provides proof that the claim exceeds the applicable insurance deductible.

2. The Association shall adjust the claims and disburse insurance proceeds.

3. Owners are responsible for making claims against their own policies.

GUIDELINES RELATING TO MAINTAINING LOTS TO HELP PREVENT WATER LEAKS AND DAMAGE AND INSURANCE CLAIMS

1. Each Owner should install steel-braided toilet tank fill hoses with steel connectors and ball valve shutoffs at the wall.

2. Each Owner should install steel-braided washer hoses to replace plain rubber hoses.

3. Each Owner should install copper, steel-braided, or nylon mesh tubing on ice maker refrigerators to replace plain plastic tubing.

4. Each Owner should install steel-braided hoses with steel connectors and ball valve shutoffs at the wall connecting any and all bathroom or kitchen sink(s) to its water supply.

5. Each Owner should install copper or steel-braided hoses with steel connectors on any and all dishwasher water connections.

6. Each Owner should install copper or steel-braided hoses with steel connectors on any and all water heater connections.

7. If an Owner leaves a Lot vacant for more than seven (7) days, the Owner should shut off the water off to the residence. If an Owner leaves a Lot vacant for more than two (2) weeks, the Owner should have a person perform weekly inspections of the to ensure that no water leaks or other damage has occurred.

8. Each Owner shall provide the Association with an emergency contact person with appropriate contact information, including telephone number.

COMPLIANCE WITH THIS RESOLUTION

Each Owner is required to follow the Rules and Guidelines stated above. Failure to do so may result in the Owner forfeiting any claims against the Association and being held responsible for any costs or expenses incurred.

A majority of the Board of Directors adopted the above Resolution on this ____ day of ________________, 20____.

____________________________ ASSOCIATION

By: ____________________________ Its: President

Archived: Monday, January 11, 2021 10:09:17 AM Subject: FW: Reserve Study Companies Sensitivity: Normal

From: Ann Salas Sent: Tuesday, December 15, 2020 11:16 AM To: Joanna Homer Subject: RE: Reserve Study Companies

Joanna,

We’ve tried multiple vendors over the years and Association Reserves is the one we trust and use. You have to be careful with a homeowner board. If you reach out for quotes from another vendor and they’re lower in price, it’s still not advisable to use them and you have to convince the board why you’re choosing to go with Association Reserves.

We used RDA/ARS for years but we found too many errors/missing components and studies are too low. If we just need an update for a simple community and they did the original study, we might use them for an update. Every situation with older studies is different.

We tried Criterium but they aren’t as skilled in HOA’s as we need them to be. It was a lot of work on our part to make sure the study was done correctly.

We tried Capital and that was a fiasco.

I know we’re tried others like Father/Daughter but there were problems with all of them.

Ann Salas, CAASP Sr. Budget Analyst AAM, LLC

(480) 422-7089 (direct number) (602) 781-1093 (cell number) (602) 957-9191 (main line)

(602) 870-8238 (direct fax) [email redacted]

AssociatedAsset.com

From: Joanna Homer Sent: Tuesday, December 15, 2020 10:43 AM To: Ann Salas <[email redacted]> Subject: FW: Reserve Study Companies

Hi Ann,

I have a community that just turned over (Village at Rio Paseo) and they are looking for 2 other Reserve Study quotes other than Association Reserves. Wendy thought you could help me find a two other contacts I am not aware of.

Thank you!

Joanna Homer

Community Manager AAM, LLC

(602) 906-4902 (direct line) (602) 957-9191 (main line)

(602) 647-3034 (after hours emergency)

(623) 742-6170 (fax line)

[email redacted]

November 2, 2020 Proposal #40816-0

Villages at Rio Paseo c/o Joanna Homer AAM, LLC

Subject: Reserve Study Proposal for 144 units in Goodyear, AZ Dear Joanna, Thank you for requesting a Reserve Study proposal from Association Reserves. It would be our privilege to serve as your Reserves planning partner! We recognize that you have a choice of Reserve Study providers and want to make sure you understand the many benefits of working with our company. To that end, we have prepared this proposal document which clearly defines the process and scope of work of our Reserve Studies, provides background about our firm and key employees, and even includes answers to many Frequently Asked Questions. We have also enclosed the Standard Terms and Conditions which sets forth the terms of the services that Association Reserves-Arizona, LLC (“Association Reserves”, “us”, “our” or “we”) will provide to Villages at Rio Paseo (“Client”, “you” or “your”). When you’re ready for the next step, simply follow the instructions listed in the last section, “Schedule, Terms and Fees.” Our office will then contact you regarding the next steps in the process, such as scheduling the site inspection, obtaining required background information, etc. Please don’t hesitate to contact us if you have any questions or concerns, or would like any additional information. We hope to hear from you soon!

Sincerely,

DJ Vlaming, RS President Arizona Regional Office

Introduction to Reserve Studies What’s a Reserve Study?

A Reserve Study is best described as a document used by community associations (or any other type of common interest real estate development) to help plan financially for major repair, replacement, or restoration projects over a long period of time. Our studies cover a thirty year period, beginning with the current or upcoming fiscal year. Read on to learn more about the scope of work and other details related to the process of conducting a Reserve Study!

Are Reserve Studies really that important?

Absolutely. It’s fairly easy to plan and prepare for recurring costs like management fees, insurance premiums, landscaping contracts, and utilities, but what about the projects and expenses that DON’T happen every year? That’s our specialty...identifying and forecasting those projects that are certain to occur, but are often overlooked or underestimated. There’s no question that setting aside Reserve funds over a long period of time is the simplest, most cost-effective, and most responsible way to plan for major projects.

The work will need to be done; it’s up to the association to plan accordingly. Without adequate Reserves, associations will have to make a tough decision: will you take out costly loans, push for recurring special assessments, or worst, accept a drop in home values due to deteriorating conditions and deferred maintenance? A current, reliable Reserve Study is the first step toward long-term financial strength for every association. Without one, association homeowners will be misinformed, underprepared, and left exposed to serious financial consequences. A current, reliable Reserve Study is a hallmark of well-managed associations, and an important part of a homeowner board’s fiduciary duty to act in the best interest of their association members.

What components are included in a Reserve Study? The National Reserve Study Standards specify the following definition of a Reserve Component:

· Must be the association’s responsibility.

· Must have a limited Useful Life (UL)

· Must have a predictable Remaining Useful Life (RUL)

· Must be above a certain “threshold cost”

We typically recommend funding for projects such as: roof replacement, painting/waterproofing, pavement sealing and resurfacing, elevator modernization, balcony and deck sealing and restoration, major mechanical systems (HVAC, fire alarm, hot water, etc.), major pool and spa expenses, interior/amenity area remodeling, and many more. The bottom line is that every property is different, and will require a thorough inspection to determine what belongs in your study.

State requirements vary on what types of projects should be addressed through Reserves (and therefore included in a Reserve Study). Our studies will always meet and usually exceed these requirements, ensuring that our clients are acting in accordance with legal requirements and sound fiduciary responsibility.

Scope of Work Our Reserve Studies are prepared in accordance with National Reserve Study Standards, established in 1998 by the Community Associations Institute. Per these standards, a Reserve Study engagement generally consists of the following:

1. Component Inventory & Condition Assessment

The component inventory is “the task of selecting and quantifying Reserve Components. This task can be accomplished through on- site visual observations, review of association design and organizational documents, a review of established association precedents, and discussion with appropriate association representative(s) of the association or cooperative.” The condition assessment is “the task of evaluating the current condition of the component based on observed or reported characteristics.” As part of our inspection, we review any available building documents including site plans, building plans, fire alarm inspection records, equipment schedules and any other data that may be informative regarding component details, project history or expectations for upcoming work. We then photograph, measure and inspect all areas or components to be included. A Reserve Study site inspection is visual in nature and does not incorporate any destructive or other testing. The inspection is not intended to identify code or construction defects, nor is it intended to be the foundation for anything other than budgeting and planning purposes.

NOTE: For Update, With Site Visit (Level 2) Reserve Studies, the component inventory is for verification purposes only, using previously- established component quantities from a prior Reserve Study. However, the condition assessment is re- established based on current conditions. For Update, No Site Visit (Level 3) Reserve Studies, there is no physical inspection of the property. We review the component inventory and condition assessments from the most recent Level 1 or Level 2 study, then proceed with the Life and Valuation Estimates and Financial Analysis.

2. Life & Valuation Estimates

This process is usually much more time consuming than the actual site inspection, and represents the bulk of the overall Reserve Study process. Our Reserve Specialist® begins by organizing and interpreting the raw data he or she gathered during the site inspection, reviewing all measurements, notes and photographs for key details and insights. Next, we establish the component list structure, and determine the life and cost estimates for each Reserve component. Our standard procedure is to use any historical information provided to us by the client (such as when certain projects were done, and what they cost), and to review any bids or estimates for upcoming work. We review our findings with your current vendors for their insights, and also check their input against information we’ve gathered working with other comparable properties in your area. We constantly consult our own internal databases, comprised of data collected from over 40,000 Reserve Studies. As a supplement, we also make use of professional construction estimating software programs, guidebooks, publications and manufacturer’s publications to supplement our knowledge base. The end result is a complete, thorough set of estimates that are accurate, current, property-specific, and generated by a qualified, independent third party.

3. Financial Analysis, Report Preparation & Delivery

Once the component list is established and we’ve reviewed your current annual budget and Reserve fund balance(s), we will make a determination of relative current Reserve fund strength and create a recommended funding plan covering the next 30 fiscal years, including a schedule of projected annual income and expenses.

Why should we choose Association Reserves? Association Reserves was established in 1986 as a professional engineering consulting firm serving community associations throughout the United States and abroad. To date, our firm has completed over 40,000 Reserve Studies for properties of all types, including condominium and homeowners associations, community development districts, timeshare and resort properties, commercial facilities, worship facilities, and more. Over the years, our firm has been instrumental in defining and advocating the National Reserve Study Standards endorsed by the Community Associations Institute (CAI).

Each Reserve Study we provide is conducted with special consideration for the unique characteristics of the client property, especially age, regional weather patterns, local pricing factors, and input from the Board of Directors. Our time-tested approach involves thorough research of all key factors, especially project history, projected useful life and cost data, and aesthetic standards in the local area. Our staff members earn and maintain the Reserve Specialist® credential administered by the Community Associations Institute (CAI), the international authority on all aspects of community association living.

We don’t take a one-size-fits-all approach to our work, because we know that every association is different, and we take the time and care to ensure our results will help you to make wise decisions regarding the long-term care of your physical and financial assets. From our first phone call to final delivery of your study, we hold ourselves to the highest standards of professionalism. We pride ourselves on delivering a first-rate product, because we know you’re putting your trust in our hands.

Qualifications and Key Staff Members All of our project staff members have college degrees and many come from construction, engineering, architecture and related backgrounds. All project management staff members are trained specifically in the field of preparing Reserve Studies. As of 2019, over 20 staff members have earned the prestigious Reserve Specialist credential, more than any other firm in the country.

Robert M. Nordlund, PE, RS is the founder, owner and CEO of Association Reserves. Robert is a Professional Engineer, Reserve Specialist, and former board president of his own homeowners association. In addition, he is a past Chairman of CAI's Reserve Professionals Committee, past Chairman of the Association of Professional Reserve Analysts, past President of CAI’s Greater Los Angeles Chapter, and a frequent speaker in industry-sponsored seminars and presentations throughout the United States. He obtained his Bachelor’s degree from the University of Washington in Mechanical Engineering and is a member of the prestigious engineering honors society Tau Beta Pi.

D.J. Vlaming, RS is the President of our Arizona regional office. He has completed over 2,000 Reserve Studies for many property types including residential developments, schools, commercial developments, country clubs, international timeshare resorts and more. For his expertise, DJ earned the Community Association Institute’s (CAI) Reserve Specialist (RS) designation and has the distinction of being RS #61. DJ is an active member of multiple CAI chapters and the Arizona Association of Community Managers (AACM). He has also been an instructor on the subject of Reserves for training courses offered by both of these organizations. DJ graduated in 1996 from California State University, Northridge with a Bachelor of Science degree in Business Administration. He has been responsible for the growing Arizona client base since 1997. From this office, he serves Arizona and New Mexico clients full-time. DJ has also expanded his reach into Mexico, and he has prepared Reserve Studies for large timeshare resorts and residential developments in Rocky Point, Cabo San Lucas, Cancun, and Puerto Vallarta.

Will Shafer, RS is the Senior Project Manager in our Arizona regional office. He has completed over 500 Reserve Studies for many property types including residential developments, commercial developments, country clubs, international timeshare resorts and more. For his expertise, Will earned the Community Association Institute’s (CAI) Reserve Specialist (RS) designation and has the distinction of being RS #187. He has been an instructor on the subject of Reserves for training courses offered by the Arizona Association of Community Managers (AACM). Will graduated from Arizona State University with a Bachelor of Science degree in Business Administration and joined the Association Reserves family in 2007. He has a strong background in customer service and problem solving.

What can I expect to see in my Reserve Study? Simple, concise summary of recommendations, with a clear, organized listing of Reserve components.

Large, color-coded charts and tables to illustrate long- term implications

Here’s a sample of our Inventory Appendix pages. We devote a half-page summary to every single component included in your Reserve Study.

Deliverables From the founding of our company, our focus has been on creating a useful, reliable document that can be picked up and understood by any Board member, resident or property manager. Upon completion of the Reserve Study, the Association will receive the following:

• Electronic Copy: A digital PDF copy of the entire Reserve Study document is posted to a password-protected location on our website, where association representatives can view and download the entire study and Executive Summary section.

• Complimentary Revision: we will revise the study one-time at no charge to the client within 60 days of report delivery, in the event that there is a material error or discrepancy identified within the study.

• Meeting Attendance: Following completion of the Reserve Study, our staff may be available to attend meetings at the Client property. Due to our volume of requests, meeting attendance requests must be made in advance and are subject to staff availability. Attendance fees will be billed based on actual meeting time plus “door to door” travel time for our staff at a rate of $150.00/hour, with a one hour minimum. For properties located greater than 200 miles from our Chandler, AZ office, additional travel costs for flight, hotel, rental car and per-diem allowances may apply. If interested in meeting attendance, please contact us directly for more specific options and costs for your property.

Standard Terms and Conditions The following terms and conditions, the attached “Schedule & Fees”, and the attached “Deliverables” (collectively, “Agreement”) set forth the terms of the services that Association Reserves-Arizona, LLC (“Association Reserves”, “us”, “our” or “we”) will provide to Villages at Rio Paseo (“Client”, “you” or “your”). By accepting this Agreement, Client hereby agrees to all of the terms and conditions set forth below.

1. Professional Services D.J. Vlaming, RS is the President of Association Reserves-Arizona, LLC and is a credentialed Reserve Specialist (#61). All work done by Association Reserves-Arizona, LLC is performed under his Responsible Charge and is performed in accordance with National Reserve Study Standards (NRSS). Association Reserves will provide oversight and assume responsibility for all work performed. Association Reserves’ services may be performed by Association Reserves employees or contractors working for Association Reserves.

The scope of work for this Agreement includes visual inspection of accessible areas and components, and does not include any destructive or other means of testing. We do not inspect or investigate for construction defects, hazardous materials, or latent issues such as plumbing or electrical problems, or problems with sub-surface drainage system components. Information provided to us about historical or upcoming projects, including information provided by the Client’s vendors and suppliers, will be considered reliable. Any on-site inspection should not be considered a project audit or quality inspection. Our opinions of component useful life, remaining useful life, and cost estimates assume proper original installation/construction, adherence to recommended preventive maintenance guidelines and best practices, a stable economic environment, and do not consider the frequency or severity of natural disasters. Our opinions of component useful life, remaining useful life and current and future cost estimates are not a warranty or guarantee of the actual costs and timing of any component repairs or replacements. The actual or projected total reserve account balance(s) presented in the Reserve Study will be based upon information provided and such information is not audited by Association Reserves. Because the physical condition of the Client’s components, the Client’s reserve balance, the economic environment, and the legislative environment are subject to change, the Reserve Study is limited by such outside influences and changes. Accordingly, Association Reserves expects that after the completion of the Reserve Study, a number of adjustments may be necessary to the cost and timing of our expense projections and the funding necessary to prepare for those estimated expenses. Because Association Reserves has no control over future events or outside influences, we do not expect that all the events anticipate for purposes of the Reserve Study will occur exactly as planned.

2. Cooperation and Information In connection with our work, Client agrees to cooperate with us and to promptly provide, to the extent reasonably possible, all relevant information as requested. Client agrees to notify us immediately in writing if Client learns that any information provided to us is inaccurate or incomplete in any material respect. Client also agrees to continuously advise us of any material developments or facts that occur or come to its attention which might reasonably be considered to affect our work.

3. Professional Fees Our fees and expenses are in no way contingent upon the results of our analysis, the content or conclusions in our report, the consummation of an event or transaction, or your acceptance or rejection of our opinions, reports or conclusions. Any invoice remaining unpaid for 30 days shall bear interest at the rate of 15% per annum from the date of the invoice until paid in full. We reserve the right to defer rendering further services until payment is received on past due invoices. We may suspend all work if an invoice is past due. In any event, all fees incurred to date must be paid prior to our issuance of our final report.

4. Limitation on Warranties Association Reserves warrants that it will perform services under the Agreement in good faith, with qualified personnel in a competent and workmanlike manner in accordance with applicable industry standards. Association Reserves disclaims all other warranties, either express or implied, including, without limitation, warranties of merchantability and fitness for a particular purpose. Association Reserves does not warrant or predict results or final developments in this matter.

5. Undue Influence / Right to Withdraw Association Reserves reserves the sole right to decide the methodology to be employed as well as the extent of review, research and other preparation to perform such analyses. If the Client or their agents attempt to influence our work, directly

or indirectly, or if we are instructed to limit work or employ methods with which we disagree, we have the absolute right to terminate work performed pursuant to this Agreement. Upon withdrawal, we will have no further obligation to perform work or to provide work product and shall be entitled to immediately receive payment for our services.

6. Confidentiality Except as required in the performance of our services and work under this Agreement, we agree to keep confidential all information provided to us by you unless such information (a) is already known to us before disclosure by you, (b) is subsequently disclosed to us by a third party not known by us to be violating a duty of confidentiality to you, (c) becomes publicly available through no fault of ours or (d) is required by law, court order or regulatory authority or agency to be disclosed. We may also disclose information to our officers, members, employees, agents, contractors and advisors for purposes of providing our services. This Agreement may be disclosed to any court in connection with any attempt by us to enforce the terms of this Agreement, including seeking payment for services rendered to Client. Client gives Association Reserves the right to discuss this matter with attorneys, accountants, representatives, and other agents for the Client. This extends to other parties that we may designate as well as other individuals designated by Association Reserves including any colleagues of Association Reserves from whom professional information or services are sought.

7. Association Reserves’ Reliance In performing our work, we will be relying on the accuracy, reliability, and completeness of the information Client or its agents provide, including contracts, financial, and non-financial information. We will attempt to obtain and compile the data used in this engagement from reliable sources, but cannot guaranty the accuracy or completeness of third party information. In accordance with National Reserve Study Standards, information provided by Client or its agents regarding financial details, component physical details and/or quantities, or historical issues/conditions will be deemed reliable for use in preparing the Reserve Study, and is not intended to be used for the purpose of performing any type of audit, quality/forensic analysis, or background checks of historical records. For “Full” Reserve Study levels of service, we attempt to establish measurements and component quantities within 5% accuracy through a combination of on-site measurements and observations, review of any available building plans or drawings, and/or any other reliable means. For “Update, With Site Visit” and “Update, No Site Visit” Reserve Study levels of service, the Client is considered to have deemed previously developed component quantities as accurate and reliable, including quantities that may have been established by other individuals or firms.

8. Client’s Reliance Our engagement is not intended to and cannot be relied upon to disclose errors, irregularities, or illegal acts, including fraud or defalcations that may exist. Client understands that we will not audit, review, compile any financial statements, forecasts or other information, and we will not express an opinion or any form of assurance on them.

9. Limitations on Use of Our Work Any documents and work product (regardless of form) generated by Association Reserves pursuant to this engagement are the sole and exclusive property of Association Reserves. Such documents and work product are not intended for general circulation or publication, nor are they to be reproduced, copied, quoted or used for any other purpose without prior written permission from Association Reserves in each specific instance.

10. Document/Evidence Retention It is not our practice to retain working papers, notes, or data files that have been updated or superseded. If you wish us to follow a different retention practice, please indicate your specific request(s) in writing when returning a copy of this Agreement. The working papers and other materials created by us during this engagement are our property. Association Reserves shall have no duty to retain any copies of documents provided to us for more than 90 days after the termination of this Agreement, or 90 days after the date the final Reserve Study is submitted to you, whichever is earlier. At the Client’s expense, we will return original materials and documents supplied to us by the Client if a written request to do so is received by Association Reserves within the 90 days after the termination of this Agreement, or 90 days after the date the final Reserve Study is submitted to you, whichever is earlier.

11. Termination Our engagement is terminable at any time upon written notice by you or by Association Reserves. Additionally, we will refuse to perform any requested act that we deem a violation of law, public policy, or our professional ethical standards, and may, as a result withdraw from the engagement without penalty. If we withdraw from this engagement, or the Client terminates our services for any reason or for no reason, the Client shall immediately pay Association Reserves for all services performed, and all expenses incurred by Association Reserves. If we are unable to complete the engagement for any reason caused by the Client, the Client shall immediately pay Association Reserves for all services performed, and all expenses incurred by

Association Reserves.

12. Limitation on Damages; Contribution and Limitation on Actions (a) Association Reserves will not be liable to the Client for any actions, damages, claims, liabilities, costs, expenses or losses in any way arising out of or relating to the services performed under the Agreement for an aggregate amount in excess of the fees paid or owing to Association Reserves for services rendered by Association Reserves under the Agreement. In no event, will Association Reserves be liable to the Client for consequential, special, indirect, incidental, punitive or exemplary damages, costs, expenses, or losses (including, without limitation, lost profits and opportunity costs). The provisions of this Section will apply regardless of the form of action, damage, claim, liability, cost, expense, or loss, whether in contract, statute, tort or otherwise. (b) In circumstances where all or any portion of the foregoing provisions of this Section are finally judicially determined to be unavailable, Association Reserves’ aggregate liability for any actions, damages, claims, liabilities, costs, expenses or losses arising out of or relating to the services performed under the Agreement will not exceed an amount that is proportional to the relative fault that Association Reserves’ conduct bears to all other conduct giving rise to such actions, damages, claims, liabilities, costs, expenses or losses. (c) No action, regardless of form, arising out of or relating to this Agreement, may be brought by the Client against Association Reserves more than one year after the cause of action has accrued. (d) To the fullest extent of the law, Client shall indemnify, defend and hold harmless Association Reserves, its officers, employees, agents, representatives, affiliates, consultants, and contractors from and against any and all losses, costs, penalties, fines, damages, claims, actions, expenses (including attorney’s fees) or liabilities arising out of, resulting from, or in connection with the services contemplated by this Agreement. (e) You agree to pay our attorneys’ fees and costs incurred in the event we have to retain an attorney and/or initiate litigation to collect any unpaid balance for our services. (f) In the event that Association Reserves is requested pursuant to subpoena, or other legal process, to provide testimony or produce its documents relating to this engagement in judicial or administrative proceedings to which Association Reserves is not a party, Client shall reimburse us at standard billing rates for our professional time and expenses, including reasonable and necessary attorney’s fees and costs incurred by Association Reserves responding, resisting, and/or complying with such request(s). We reserve the right to engage our own counsel to respond, resist, and/or comply with such request(s), and Client shall reimburse Association Reserves for such attorney’s fees and costs incurred by Association Reserves responding, resisting, and/or complying with such request(s).

13. Force Majeure. Association Reserves will not be liable for any delays resulting from circumstances or causes beyond its reasonable control, including, without limitation, fire or other casualty, act of God, strike or labor dispute, war or other violence, or any law, order or requirement of any governmental agency or authority.

14. Governing law. The laws of the State of Arizona shall govern the construction, interpretation and enforcement of this Agreement. You agree that venue and jurisdiction for any suit arising under this Agreement shall be exclusively in the state courts located in Maricopa County, Arizona, to the exclusion of all other courts, federal or otherwise.

15. Waiver of Jury Trial. EXCEPT AS PROHIBITED BY LAW, NO PARTY TO THIS AGREEMENT, SHALL SEEK A JURY TRIAL IN ANY LAWSUIT, PROCEEDING OR COUNTERCLAIM BASED UPON, OR ARISING OUT OF THIS AGREEMENT, THE SERVICES PROVIDED HEREUNDER, THE FINANCIAL OBLIGATIONS ARISING HEREUNDER OR THE RELATIONSHIP BETWEEN ANY OF THE PARTIES TO THIS AGREEMENT.

16. Non-Waiver. There is to be no change or waiver of any provisions of this Agreement unless the change is in writing and signed by all parties to this Agreement.

17. Miscellaneous. (a) Communications. Association Reserves may communicate with the Client by electronic mail or otherwise transmit documents in electronic form during the course of this engagement. The Client accepts the inherent risks of these forms of communication, including the security risks of interception of or unauthorized access to such communications, the risks of corruption of such communications and the risks of viruses or other harmful devices. (b) A facsimile or electronic copy hereof shall be considered binding and legally sufficient for all purposes. The terms of

this Agreement are subject to change if not executed and returned to us within 180 days of the date of this Agreement. (c) Independent Contractor. It is understood and agreed that each of the parties hereto is an independent contractor and that neither party is or will be considered an agent, distributor or representative of the other. Neither party will act or represent itself, directly or by implication, as an agent of the other or in any manner assume or create any obligation on behalf of, or in the name of, the other. (d) Entire Agreement. This Agreement constitutes the entire agreement between Association Reserves and the Client with respect to this engagement and supersedes all other oral and written representations, understandings or agreements concerning the subject matter hereof. (e) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.

Schedule, Terms & Fees Proposal Date: November 2, 2020 Association Name: Villages at Rio Paseo Proposal Number #40816-0

Level of Service: Update, With Site Visit (Level 2) Reserve Study* *In order to proceed with this option, the client must provide a complete copy of the component list from the most recent Reserve Study along with the signed proposal and the required 50% deposit. This list must include all relevant components and their respective quantities, such as square feet of asphalt, square feet of roofing, number of HVAC systems, etc. This requirement is waived if the prior study was prepared by Association Reserves.

Description: An Update, With Site Visit Reserve Study is advisable when the client has at least one prior Reserve Study and is electing to have a new site inspection conducted in order to update the component data and financial analysis. This level of service is defined by National Reserve Study Standards as an engagement during which the following five Reserve Study tasks are performed: Component Inventory (verification, not quantification), Condition Assessment (based upon on-site visual observations), Life and Valuation Estimates, Fund Status and Funding Plan.

Schedule: Project fee is based on a 15-week turnaround timeframe. Timeline starts upon receipt of your 50% deposit and other requested documents.

Payment Terms: Payment is required in two installments: 50% of the fee will be invoiced upon acceptance of this proposal. The remaining 50% balance will be invoiced following initial delivery of the Reserve Study. Consulting services (i.e., custom analysis, meeting attendance, revisions, etc.) outside the scope of this Reserve Study agreement will be billed on an hourly basis, inclusive of out-of-pocket costs incurred related to such consulting services, and are due upon receipt of invoice. Fee: Update, With Site Visit (Level 2) Reserve Study: $2,230.00 (Price is valid for 90 days)

Proposal acceptance: By signing below, the person signing this agreement on behalf of Client represents and warrants that he/she has the authority to do so, and agrees to the Standard Terms and Conditions attached hereto. Signed proposals can be emailed to [email redacted] or faxed to (480) 634-4616.

Approved, Accepted, and Agreed to on behalf of Villages at Rio Paseo: Print Name: Title:

_________________________________ _________________________ Signature: Date:

_________________________________ _________________________

18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

January 8, 2021

Ms. Joanna Homer, Community Manager c/o Associated Asset Management The Village at Rio Paseo Condominium Association 1600 W. Broadway Road, Suite 200 Tempe, AZ 85282

Dear Ms. Homer:

Thank you for the opportunity to present The Village at Rio Paseo Condominium Association with a reserve study proposal. At Reserve Advisors, we are dedicated to providing peace of mind to boards, homeowners and their families by delivering a custom-comprehensive reserve study.

Our easy-to-use reserve study system provides a more effective way to manage your property. You will receive…

• A concise Executive Summary and 5-Year Outlook Table to communicate near-term expenditures and funding recommendations to homeowners. • Property-specific recommendations that prioritize the most effective use of reserve funds for you. • Spreadsheets with formulas to easily evaluate what-if replacement schedules and reserve contributions. • Free Support - Our team of multi-disciplined engineers are dedicated to making your experience of using the reserve study exceptional with ongoing assistance.

The following pages provide insight and the distinct reasons why communities rely on Reserve Advisors for their reserve study needs. Please sign and return the Confirmation of Services page to get started. Sincerely,

Stephanie Mueller PE, RS Arizona Account Manager [email redacted] See our report overview

P.S. Conveniently located in Phoenix, our engineers are always available to discuss your reserve study before, during and after it is complete.

(800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

Reserve Study Benefits

For Boards • Fulfills fiduciary responsibility with expert advice • Supports board decisions on replacement projects • Saves hours in budget meetings for replacements • Excel spreadsheets with formulas provide ability to create what-if scenarios for budgeting purposes

For Homeowners • Ensures fair reserve contributions • More consistent household budgeting • Reduces long-term homeowner cost of maintaining the common property • Curb appeal increases demand for homes

Distinct Reasons Communities Choose Reserve Advisors

Easy to use Reports that provide valuable insight to current and future owners. An executive summary promoting management’s ability to communicate near-term expenditures, funding recommendations and other high level information to various stakeholders.

Dedication and Commitment to You with an exceptional experience during and after the study. We listen to you and create a custom reserve study with your objectives in mind. Our staff of multi- disciplined engineers is dedicated to ensuring your satisfaction. We’re always available with free support after the study is complete.

Comprehensive Reports solve problems before they escalate. We include: • Thorough condition assessments that prioritize your near-term projects • Best practices and technical illustrations to better understand project scope and compare contractor bids

Knowledge of Local Replacement Costs is the basis for adequate, not excessive, reserve budgets.

Multi-disciplined Engineers – With more than 30 engineers, we match our expertise with your community rather than a “one size fits all” engineer.

Unbiased Recommendations – Your best interest is our only goal. We don’t provide design or project management services, nor do we profit from your capital projects.

Unmatched Local Experience – We know the local costs and conditions that affect your community.

Download our report overview

Page 2 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

Using Your Reserve Advisors Study Has Never Been Easier

We listened and responded to our clients with three tools to quickly access and use your custom- comprehensive reserve study.

The Report – Comprehensive and Customized to Your Community • One-Click to read online • Executive Summary communicates key findings and recommendations at a glance • Flip through your report copy which includes panoramic 11” x 17” spreadsheets • Helps board planning with a prioritized capital project schedule

The Numbers – Always Quick and Easy • One-Click to open your Expenditures & Funding Plan spreadsheets • Print your spreadsheets on any printer in panoramic multi-page format

Easy Planning – Your reserve study includes: 1. Excel™ spreadsheets with formulas for what-if scenarios 2. ForeSite™ a cloud-based software solution a. Store your photos and project documents b. Record comments and costs of your actual capital projects c. Optionally, subscribe to ForeSite™ Plus for multiple users to collaborate online, creating unlimited replacement and funding scenarios d. Full support with Webinars and Tutorials

ForeSite™ brings everything together as individual board members can collaborate, comment, make changes and plan for the future in one place from anywhere.

Page 3 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

Meet Our Founders

Founded by John Poehlmann and Theodore Salgado in 1991, Reserve Advisors has provided tens of thousands of comprehensive reserve studies for communities across America and abroad.

Collectively, John and Ted have lived in and served community associations for decades. They’ve served on CAI’s (Community Associations Institute) national Board of Trustees and as a past President of APRA (the Association of Professional Reserve Analysts), respectively. Both were instrumental in establishing CAI’s National Standards for Reserve Study providers.

Our Commitment to You

We deliver. In all we do, we go the extra mile for you. Our core values are integrity, customer service, professionalism, accountability and technical quality. Our employees are hard-working individuals who value their client relationships and put great effort and dedication into providing the highest level of satisfaction to our clients.

As we have since 1991, Reserve Advisors will continue to use our values, people and services to provide reserve studies that help secure the financial health of communities and peace of mind to their homeowners.

Stephanie Mueller PE, RS Arizona Account Manager

Page 4 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

The Village at Rio Paseo Condominium Association comprises 144 units within 48 buildings in Goodyear. The specific property to be included in your custom-comprehensive reserve study includes:

Exterior Building Elements Site Components • Sloped Roofs including Roofing Assembly • Pool including Fence, Deck, Mechanicals • Exterior Wall Finishes & Furniture • Basketball Court Clubhouse Elements • Playground • Roofs including Assembly • Streets & Curbs • Exterior Wall Finishes • Parking Areas • Plumbing, Mechanical and HVAC • Post or Pole Lights Systems • Sidewalks • Walking Paths • Irrigation System • Landscaping • Perimeter Walls • Fences • Mailboxes • Monuments • Signage

The Village at Rio Paseo Condominium Association Reference Photograph:

Page 5 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

Page 6 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

Page 7 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

Confirmation of Services for The Village at Rio Paseo Condominium Association

____ Full Reserve Study for an investment of $3,950 (includes all expenses) ____ Report (See our report overview) • Electronic PDF Report with 30-year Reserve Expenditure and Funding Plan tables for printing in 8 ½” x 11” panoramic multi-page format on any printer • Excel® spreadsheet of Reserve Expenditures and Funding Plan with formulas for “what-if” alternative scenarios ____ Support • We listen and respond to your questions and suggestions to create a custom report • Meeting with our engineer on the day of our visual property inspection • Unlimited video/teleconference support with our engineer during and after report delivery ____ ForeSite™ Basic – Access your reserve study and Excel spreadsheets online, store photos and project documents, record comments and project costs. Also receive a free 60-day trial to ForeSite Plus.

\checkbox1\ One (1) Bound Report hard copy (no charge); Additional copies at $75 ea. – indicate quantity: \customtext1 {“label”:”Qty”}\

\checkbox1\ ForeSite™ Plus 3-year subscription empowers multiple users to create, share and collaborate with unlimited models and scenarios for $395 per year \checkbox1\

Meeting with the board to review reserve study recommendations (available upon request)

Sign and Send to Get Started: Mail $1,975 retainer to: Email: [email redacted] or Reserve Advisors, LLC Fax: (414) 272-3663 735 N. Water Street, Suite 175 Milwaukee, WI 53202

By: Signature: \signature1 {“size”:”medium”}\ Stephanie Mueller (Print Name): \fullname1 {“size”:”small”}\ Arizona Account Manager Title: \title1 {“size”:”small”}\ on January 8, 2021 Date: \date1 {“size”:”small”}\ For: Reserve Advisors, LLC For: The Village at Rio Paseo Condominium Ref. 202215 Association

You will receive your electronic report approximately four (4) weeks after our inspection, based on timely receipt of all necessary information from you. Authorization to inspection time varies depending on demand for our services. This proposal is valid for 45 days.

Payment Terms: Retainer payment is due upon authorization and prior to inspection. The balance is due net 30 days from the report shipment date. Following receipt of balance due, you may request one set of complimentary changes within six months of the report shipment. Optional services authorized will be billed in full upon contract execution. Any outstanding balance after 30 days is subject to an interest charge of 1.5% per month. This agreement is subject to our Professional Services Conditions. Page 8 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

PROFESSIONAL SERVICE CONDITIONS Our Services - Reserve Advisors, LLC (RA) performs its services as an independent contractor in accordance with our professional practice standards and its compensation is not contingent upon our conclusions. The purpose of our reserve study is to provide a budget planning tool that identifies the current status of the reserve fund, and an opinion recommending an annual funding plan to create reserves for anticipated future replacement expenditures of the property. Our inspection and analysis of the subject property is limited to visual observations, is noninvasive and is not meant to nor does it include investigation into statutory, regulatory or code compliance. RA inspects sloped roofs from the ground and inspects flat roofs where safe access (stairs or ladder permanently attached to the structure) is available. The report is based upon a “snapshot in time” at the moment of inspection. RA may note visible physical defects in our report. The inspection is made by employees generally familiar with real estate and building construction but in the absence of invasive testing RA cannot opine on, nor is RA responsible for, the structural integrity of the property including its conformity to specific governmental code requirements for fire, building, earthquake, and occupancy, or any physical defects that were not readily apparent during the inspection. RA is not responsible for conditions that have changed between the time of inspection and the issuance of the report. RA does not investigate, nor assume any responsibility for any existence or impact of any hazardous materials, such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes, environmental mold or other potentially hazardous materials or structural defects that are latent or hidden defects which may or may not be present on or within the property. RA does not make any soil analysis or geological study as part of its services; nor does RA investigate water, oil, gas, coal, or other subsurface mineral and use rights or such hidden conditions. RA assumes no responsibility for any such conditions. The Report contains opinions of estimated costs and remaining useful lives which are neither a guarantee of the actual costs of replacement nor a guarantee of remaining useful lives of any property element. RA assumes, without independent verification, the accuracy of all data provided to it. 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RA reserves the right to use property information to obtain estimates of replacement costs, useful life of property elements or otherwise as RA, in its sole discretion, deems appropriate. Payment Terms, Due Dates, and Interest Charges - Retainer payment is due upon authorization and prior to inspection. The balance is due net 30 days from the report shipment date. Any balance remaining 30 days after delivery of the Report shall accrue an interest charge of 1.5% per month. Any litigation necessary to collect an unpaid balance shall be venued in Milwaukee County Circuit Court for the State of Wisconsin.

Page 9 (800) 221-9882 Fax: (414) 272-3663 18444 N. 25th Avenue, Suite 420 Phoenix, AZ 85023

January 8, 2021

The Village at Rio Paseo Condominium Association c/o 1600 W. Broadway Road, Suite 200 Tempe, AZ 85282 RETAINER INVOICE #

2081372R

Amount Due Now:

$1,975 PROPERTY: The Village at Rio Paseo Condominium Association Goodyear, Arizona

Contract Number: 202215 RETAINER DUE: $1,975

Terms: Retainer Due Upon Receipt of Authorized Contract and Prior to Inspection

Mail retainer to:

Reserve Advisors, LLC OR CONTACT US FOR 735 N. Water Street, Suite 175 CREDIT CARD PAYMENT Milwaukee, WI 53202

Payment Terms: Retainer payment is due upon authorization and prior to inspection. The balance is due net 30 days from the report shipment date. Following receipt of balance due, you may request one set of complimentary changes within six months of the report shipment. Optional services authorized will be billed in full upon contract execution. Any outstanding balance after 30 days is subject to an interest charge of 1.5% per month. This agreement is subject to our Professional Services Conditions. Page 10 (800) 221-9882 Fax: (414) 272-3663 ASSOCIATED CONTRACTING RESOURCES 1600 W. Broadway Road, Suite 200 Tempe, AZ 85282 P: 602-906-4923 ROC # 284923 PROPOSAL

PROPOSAL SUBMITTED TO: 8240 DATE Village at Rio Paseo 12/21/2020 14870 W. Encanto Blvd. Goodyear AZ 85395 SCOPE OF WORK: AMOUNT

Repaint striping for all parking spaces throughout interior of community. Paint with high quality paint designed for this application. Includes handicapped spaces. $ 3,900.00

SUBTOTAL $ 3,900.00 TAX 1.00% $ 39.00 TOTAL $ 3,939.00 PAYMENT TERMS AND WARRANTY: Associated Contracting Resources warranties all material and labor furnished for a period of 2 years from work completion for work over $1,000 and 15 days for work under $1,000. Warranty becomes void is serviced by an alternative company. Warranty does not include vandalism, abuse, acts of nature, or other damage caused by guests, employees, contractors or vendors. Prices are good for 90 days / Payment net 30

Pictures Attached Addendum Attached

ACCEPTANCE OF PROPOSAL The above prices, specifications and conditions are Print Name satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. Signature

Date of Acceptance:

Archived: Wednesday, December 30, 2020 2:13:55 PM From: Michael Brune Sent: Wed, 16 Dec 2020 09:24:50 To: Joanna Homer Subject: RE: 14870 W Encanto Blvd - Village at Rio Paseo HOA Sensitivity: Normal

Joanna,

The streets within your community are considered fire apparatus access roads. This is a general term that is inclusive of terms such as fire lane, public street, private street, parking lot lane, and access roadway. A fire apparatus access road is required to provide access from a fire station to a facility or building.

This would mean that the streets and common drives in your community are considered fire apparatus access roads (fire lanes). As such, there are restrictions that are intended to maintain a minimum width requirement at all times. This means that where streets are twenty six (26) feet wide or less (clear width from face of curb to face of curb), parking is required to be restricted at all times on both sides of the road. It appears that the main loop street is twenty six (26) feet wide and the common drive access is twenty five (25) feet wide. This would require that parking restrictions be put in place to prohibit parking along the streets or in the common drives, on both sides, at all times. Parking would only be allowed in designated parking stalls, garages, or private driveway (if large enough).

If vehicle parking is an issue, since the streets in your community are considered private streets, enforcement falls upon the Home Owners Association. Should our office be called out for a complaint by a citizen or fire crew and we observe a violation, the Home Owners Association would be cited for the violation.

Hopefully I have provided you with the information that you need. If you have any questions, please feel free to contact me.

Thank you,

Michael Brune Fire Marshal Goodyear Fire Department City of Goodyear, Arizona

14455 W. Van Buren Suite E-102 Goodyear, AZ 85338

v 623-882-7303 m 623-866-2100 w goodyearaz.gov/fire e [email redacted]

From: Joanna Homer <[email redacted]> Date: December 15, 2020 at 18:35:53 MST To: DL-FD-PIOExternal <[email redacted]> Subject: 14870 W Encanto Blvd - Village at Rio Paseo HOA

\u-257 ? \u9888 ? This email arrived from an external source - Please exercise caution when opening any attachments or clicking on links

Hi there,

I manage the Village at Rio Paseo Community Association at 14870 W Encanto Blvd. Can you help me verify if the streets in this community are considered fire lanes?

Thank you,

To: AAM LLC Contact: Joanna Homer Address: Phoenix, AZ USA Phone: 602-288-2655

Fax: 602-821-2334

Project Name: Village At Rio Paseo Bid Number: CA223022009 Project Location: 14870 West Encanto Boulevard Goodyear, Goodyear, AZ Bid Date: 12/30/2020

Line # Item Description Estimated Quantity Unit Unit Price Total Price

STRIPING: Pavement Markings Will Be Repainted To The 1.00 LS $750.00 $750.00 Existing Layout With 2-Coats Of Permanent Traffic Marking Paint. Includes 8-ADA Stalls With ADA Stencils, ADA Pathways Yellow Hashed And 14 Perpendicular Stalls In White. Quoted Price Based On 1 Mobilization. Total Bid Price: $750.00

Notes: • Standard Terms and Conditions to follow. • All scheduling contingent upon mutual agreement of Owner and Cactus Asphalt. • Prices above based on completing each task in one mobilization. If an additional mobilization is required, charges may apply. • Quoted prices valid for 60 days unless otherwise noted. • Cactus is not responsible for notification, nor removal of vehicles and property from work areas. • Cactus will require this proposal with exclusions be included in any contractual agreement. • Unit prices above include all applicable state, county & local taxes for contracting. • In the event that quantities differ from above, billing will reflect agreed upon measured quantities. • EXCLUSIONS (Unless Otherwise Specified): Bonds, Permits, Plans, Engineering, Survey, Staking, Traffic Control, As-Builts, Testing, Inspection, Gradework, Landscape Areas, Weed Killer, Crack Routing, Crack-Sealing, Asphalt Patching, ABC or Landscape Materials, Vegetation Replacement, Preservative Seals, Prime Coat, Concrete Structures, Irrigation or Pipe Work, Utility Removal or Relocation, Drywells, Rip/Rap, Structural Backfill, New Signage, Parking Bumpers Removal or Replacement, Import, Export, Excavation, Subgrade Stabilization, Removal of Debris Generated by Other Trades, Erosion Control, Thickened Pavement Edge, Project Information Sign And Any Special Insurance Requirements.

ACCEPTED: CONFIRMED: The above prices, specifications and conditions are satisfactory Cactus Asphalt and hereby accepted.

Buyer:

Signature: Authorized Signature:

Date of Acceptance: Estimator: John Flores

12/30/2020 1:37:19 PM Page 1 of 1

Any parking concerns or ideas the board should consider?20 responses

Allow street parking

We do not have enough visitor parking. I don’t have an answer though

Please leave the guest parking for guests. Owners that do not have space for all of their cars need to find other options. Perhaps start a fee/permit system for those who need additional space, to rent the spaces between the buildings.

Parking signs and tickets

Continue to notify residents of need to clean up after your dogs, use the dumpsters in a way you would if you were paying for it from your pocket instead of putting large boxes etc., without breaking them down.

We should have a set of designated residents (volunteers) be the parking patrol instead of hiring a company. Taking different shifts, different nights. For example go around 7pm seeing what cars are parked and around 6am what cars are still there. Write it in a log that’s shareable and whoever is next can cross reference see if the same cars are in the same spots. After so many days issue warnings. If it continues towing. The log can keep track of other cars that keep parking and moving around.

Never any parking for guests as all of the spots are taken by residents. Street parking should be allowed in some areas to help as there aren't any additional places in the complex.

Some people who have the lofts are parking their work vehicle in their spot, have their garage full of items or gym and then park their personal vehicles in visitor parking. I suggest they rent a storage unit or dismantle their gym

There needs to be overflow parking. Residents will never stop parking in visitor spots. everyone gets two spots in their garage. unless you have a teenage kid who drives there really shouldnt be anyone parking in the community spots. however i dont see there being an issue for short term parking there also. if a vehical is in a spot so long that tires get flat, its covered in dust, basically isnt moved in weeks then yeah tow that thing.

People parking in the street, behind garages and in visitor parking. For God's sakes there's a blue Challenger that's been sitting by the front gate for months now and nothing's been done.

I have a 3 bedroom, I should be allowed one extra space.

put a defined process in place and follow through More guest parking.

I feel the board could benefit in having an open conversation with those units that have more than cars. Get their feedback knowing that we only have so many additional spaces. Maybe if they are part of the conversation ot would not be so contentious.

I’ve had two cars towed since April however we still aren’t getting it! I needed EMS and they had to park at the gate bc they couldn’t get through. Black vehicle as you pull through the gates has not moved in months but it’s still there! There’s a white Mercedes sport the feels they deserve two spots, and even with tie trucks coming through and leaving empty. Don’t feel our tow was fair since they were finishing construction, someone parked in our spot forcing us to park in front of our garage, then the same thing happened bc there was a moving truck blocking our driveway, couldn’t even pull up to our garage or even park on site so used dead space next to trash - not blocking traffic - not in front of like tow company told me! The blocks to stop cars are place d in front of our doors and I understand why - but they’re an eye sore. Can we at least use colored polyurethane garage coating so it’s more appealing? Maybe we wouldn’t look so much like apartment complexes.

hire a contractor to police and tow away, it is time to act now, any warnings have been ignored Should Create a Parking Permit Program for a monthly fee for people with more than two cars.

Any other general questions for the Board of Directors or Management?26 responses

I could not type after the pigeon question so here is my answer. I feel our pigeon problem is way beyond reflectors and spikes. The pigeons have been here a long time. Drastic measures need to be taken to get rid of them from all buildings! I don’t like the idea of poison though.

I am unfamiliar with the effectiveness of pigeon control methods. But, the association should engage in this. Use of my outdoor space is difficult due to the amount of pigeon droppings. If control efforts are left to individual owners, some would not participate, likely making any efforts unsuccessful.

When will the gym be re-opened?

While pest control is installing the pigeon control method, will there be a cleaning of the roofs of current pigeon feces and nests? Also, is the HOA or homeowner responsible for t he cleanings of exterior windows?

We need a parking permit system for the visitor parking. If someone is to park overnight they have to get a permit from one of the HOA board members. If a car is found overnight without a permit, it is towed. It keeps us from having to spend money paying a company to patrol the spots. In addition, the landscape needs to be addressed. Lots of tree and plants have died, which decreases property values. The landscape needs to transition to more drought tolerant plants to keep water usage low and keep the plants alive and healthy. We need to have an annual replanting plan for missing plants.

Are there minutes taken at the general session. How can they be accessed?

Its past time to start enforcing the CC&Rs. Everyone who buys a home is given a copy of these documents. If they choose to read them or not is the owners responsibility. Fines need to be issued to violators otherwise things will get worse as time goes on if there is no accountability. Some owners have more than 2 vehicles that they switch out of their garage and others have full gyms in their garage while park their vehicles in the guest parking, this is ridiculous! Another issue is people letting their dogs roam without leashes or supervision, allowing them to go up to people sniffing and licking them. As well as routinely and purposely walking their dogs in front of other peoples condo and allowing them to do their business instead of in their own front area. This is extremely Rude and unacceptable! If these problems continue I will move and just rent my property out to other people who don't give a damn about the community.

Keeping dumpster areas cleaned; people leaving bags on the ground near dumpster is absolutely gross. Maybe change pick up schedule?

This is an outside the home problem that I think the HOA is responsible for. We pay a lot for this kind of service. We have to get every building corrected at the same time and I believe this will pay off in the end. We have waited to long and now look at how big the pro blem is. I do not care what you use to get rid of them. I would also like to see more foliage around the pool. Compared to many others our is not very appealing. Now that the pool will be resurfaced let’s spend a little bit of money to do the rest of the pool area. I feel that we are putting in way to many handicap parking areas as all residents have 2 parking spots as it is. If we are required to put some in for visitors they need to be spread out and not all in one spot. It doesn’t make any sense to have them all in front of the pool/gym. If a resident needs one because they can’t park inside for any reason they should ask the board to approve an outside spot as close to their unit as possible. Thank you for all that you do I know it isn’t easy especially being the first Board of Directors. Keep up the good work and thank you for asking for our opinions. I

Please consider replanting the dyeing or removed trees and brush.

We have continuing landscaping issues. Irrigation valves need to be replaced. Sprinkler s have in the past run for hours. real problems are grass/landscaping over in the back of the community. and pigeons. great idea with the gate being shut i like that.

Need to look at getting tar put down on the roads, there's cracks that are starting to fo rm. It would be nice to maybe explore the idea of doing a community grill in the pool area. We already have a natural gas line going for the jacuzzi. Most apartment areas have community grills. Would also be nice to explore the idea of maybe getting rid of the grass and some of the smaller areas and replacing with artificial grass. people's dogs use the restroom in the grass area and it just kills the grass. Plus with the artificial grass would be one less issue the landscapers would have to deal with.

If dog owners would clean up after pets and if landscape could clean the parking lots better, lots of trash and leaf buildup.

I would like to hear more about the pigeon proposal made during a board meeting from the company that suggested cleaning up the nests and placing the shock strips on roof lines. To me it seems like the most sustainable plan.

Putting more spending into adding to the gym.

Can we get a driveway cleaner out to clean driveways, streets and curbs? (pidgin poop, dirty from construction, ((power washer)) and bc I just can’t keep up the cleaning of our driveway) Suggestion/solution: wire up the openings on the bldgs.

1. we need the names and contact information for the board members 2. can we install speed signs and or speed bumps 3. fines for residents not cleaning up after their dogs 4. we used to have slightly lower garbage bins that are easier to open for those that are shorter 5. Explain what HOA insurance will cover, will the fact that solar panels are installed void the insurance coverage for a leaky roof

The questions are too cut and dry. I do believe something needs to be done about the pigeons but there needs to be open discussion on a solution. Parking is an issue and since I use my garage as it should be when I have visitors they have a hard time finding parking because residence or renters are taking up all the “visitor” spaces. It seems people don’t care to let others use visitor parking. There are a few vehicles taking up spaces for permanent parking.

None

As to to the question about method of pigeon control, any method is fine as long as is not harmful to the pigeons.

The visitor parking issues need to be addressed

The gate on the west side at the entrance is often open for long periods. Also the exit gate (east side of the complex) doesn't always close completely. The opening is large enough for a person to walk through.

When will the Dodge Challenger be towed for be inoperable? The registration are expired as well.

We should take professional advice for pigeon control