Kuau Bayview Reserve Study 2013
The Association is required to maintain reserves large enough to pay for replacement of major assets at any time in the future. The initial & remaining life of each asset has been estimated, and updated replacement costs have been obtained from various fence companies and added to the table below.
At the moment our reserves are fully funded because we have 100% of the replacement cost of all assets, so it is not necessary to set aside specific amounts for these assets each month; however, we are reducing the maintenance fees in 2013, thereby reducing our income by $5520. We, therefore, have to reduce our expenses by operating efficiently and spending money wisely if we wish to be able to sustain the reduction without eating into the reserves. Our reserves should never drop below $60,000.
The proposed budget allows for a profit of $7000+ even with the fees at $240 per year. In early January each year, I recommend reclassifying all of the retained earnings to the Reserves account (Owner Equity).
|A||B||C||D = C/A||E = A-B x D|
|Association Common Assets||Initial Life in Years||Remaining Life||Replacement Cost in $||Reserve per Year in $||Required Reserves $|
|Retention Basin Fence||18||1||35,000|
|Hana Hwy Fence||18||1|
|Lae St Vinyl Fence||35|
|Sprinkler Heads||17||1||see below *|
- The Retention Basin fence has one double gate and is galvanized chain link (11 gauge core wire with an extruded green PVC finish bringing it to 9 gauge) to R19 (industrial) specifications.
- Basin dimensions are 216.57 E x 275.54 S x 263.37 W x 227.38 N = 982.86 linear feet encompassing 71,121 sqft
- Eric Brown of Accurate Fence Co estimated (Jan 2013) that it could cost $30,000 to $35,000 to remove and replace the entire fence, posts & all.
- Extruded chain link (comes in 50 ft rolls) is less than half the price of fusion-bonded, which is what most county job specs mandate. Industrial fence requires schedule 40 posts.
- Fusion-bonded chain link is 9 gauge (comes in 25 foot rolls) and lasts 4-6 years longer; there is also metal paint that can add 5 years to the life.
- I was told that the fence should last 15-20 years, or 25-30 years if you wait for it to fall down on its own.
- Proximity to the ocean shortens its life; vines on the fence protect it from salt spray.
- Besides maintaining the fence, in the event of a hurricane or flood, we may need to attend to the retention basin:
"...the Association shall periodically pump and clean the retention basin located at the intersection of Lae Street and Hana Highway to prevent overflows, remove silt therefrom, inspect and maintain the basin and keep it free of trash, large over-growth and other debris, at all times maintain clear inlet/outlet drainage to and from the basin, monitor the basin water level during large storms, and provide a method to control basin overflow."
— CC&Rs Section 3(a)
- Our liability insurance covers if someone gets hurt in the basin but not damage to the fence; we do not have flood insurance.
- The vinyl fence at the top of the Lae St Easement runs approximately 177 feet.
- The rock walls and the main irrigation pipes (buried deep) will probably never need to be replaced unless there is an earthquake, or someone digs in the easement and breaks them (which has happened several times in 2012).
- The surface pipes leading to the sprinkler heads may need the odd repair but PVC pipe is less than $5 per 20 ft length.
- Many of the sprinkler heads have been capped off in Zone 7. The retired heads can be used for future replacements. These will be stored in the HOA office at 15 S Laelua.
- There is a backflow prevention valve that apparently needs to be tested each year ($75), according to an old letter I recently found from Jeff Faulkner. I filed the info in the 'Water' file.
|Accurate Fence Co||Eric Brown||573-1335, 357-0846||$25/ft to remove & replace, $14/ft remove & replace fabric only, gate $70/ft|
|Valley Isle Fencing||Al Santos||877-6350||$20/ft plus 7-8/ft for removal|
|Island Security Fence||Darryl Reddell||893-0822||$48/ft to remove & replace|