Link to most recent Resefrve Study in PDF format: https://drive.google.com/file/d/1yzUjkYO6rGroa5tIRCWBTSPba9mPjtIY/view?usp=sharing
Reserves summary by NotebookLM
This report summarizes the key findings and implications of our most recent reserve study, dated May 25, 2024. Understanding our reserve fund status and future capital needs is a core fiduciary responsibility of the Board, as outlined in the Declaration which mandates suitable provision for reserves for maintenance, repair, and replacement of Common and Limited Common Elements.
I. Purpose and Scope of the Reserve Study
The primary purpose of this Level 3 Reserve Study is to serve as a planning and budgeting tool for the next 30 years, aiming to adequately maintain our property and avoid unexpected special assessments. It helps us understand our property's needs, address immediate and anticipated future capital expenses, maintain higher property values, and meet qualifications for FHA approval and other funding sources.
This particular study is a Level 3 update, meaning it was an off-site analysis based solely on information provided by our property manager, Lynda Kocir, on May 24, 2024. It did not include a new visual site inspection of the property. Washington State RCW 64.90.555 recommends a cycle of Level 2 updates (with site visits) and Level 3 updates (off-site) to ensure comprehensive long-term planning.
II. Current Financial Status of Reserves (as of April 30, 2024)
As of April 30, 2024, our reserve fund stands as follows:
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Current Reserve Fund Balance: $312,661.
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Required Balance for "Full Funding": $537,534.
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Percentage Funded: 58.2%. This indicates we are currently underfunded relative to the "full funding" target.
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Our current annual contribution to the reserve fund is $74,631, which averages $207.31 per unit per month. This is assumed to increase by 3% annually for inflation. The study indicates that the current funding plan, when projected, falls below zero in several years, meaning it is insufficient for anticipated repairs.
III. Proposed Funding Options
The Reserve Study presents several funding options to address our long-term capital needs. These options vary in their approach to achieving full funding and their impact on monthly contributions:
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Option One: This option suggests an average immediate contribution of $7,496 per unit, followed by $176.09 per unit per month, increasing at 3% annually thereafter.
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Option Two: This accelerated option aims for full funding by the end of 2029. It requires average contributions of $308.51 per unit per month initially, increasing at 3% annually to $336.56 by 2029. Once fully funded, the monthly contribution would decrease to $210.26 per unit in 2030.
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Option Three (Full Funding Within Ten Years): This option addresses the current deficiency of $224,873 over the next ten years. Starting in 2025 through 2034, the Association would need to contribute $88,987 annually, which includes $25,594 for making up the deficit and $63,393 for capital maintenance funds (increasing annually with inflation). This equates to an average of $247.19 per unit per month in the initial year.
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Option Four: This option proposes an average contribution of $207.03 per unit per month, increasing at 3% annually through 2054 to $458.36.
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Option Five: This option presents the lowest initial average contribution of $170.46 per unit per month, with a 3% annual increase thereafter.
IV. Related Board Discussions and Capital Projects
The reserve study directly informs our budget and future projects. Recent discussions and ongoing projects that impact our reserves include:
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EV Charging Infrastructure: A significant investment of $38,381.67 for garage infrastructure was previously approved by members via special assessment. The second phase, including the installation of 14 Level 1 EV outlets by Zorko Electric, is underway. The total cost for Zorko's work and a new Seattle City Light (SCL) meter is approximately $32,151. There was discussion about funding the project using reserve funds and how to manage repayments or special assessments from owners who choose to install chargers.
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Rooftop Deck Amenities: The Board has discussed proposals from the Roof Deck Committee for additional furniture and shade, to be considered for the 2025 budget, which would draw from or impact reserve allocations.
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Deck & Column Repair: We recently had a deck repair project with an invoice of $5,013.92 transferred from reserves in December 2023. Additionally, bids were sought for trim repairs to three columns on Unit 24's deck, with one bid around $1500. These are types of capital expenditures that reserves are intended to cover.
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Fire Safety System: While the fire alarm system was confirmed compliant in May 2025 after testing, there were prior deficiencies related to fire alarm and sprinkler systems requiring repairs and scheduling, and new licensing requirements for shaft pressurization tests now refer to HVAC contractors, indicating ongoing costs for safety systems.
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Garage Door: The Board has received a suggestion to consider a quieter and faster operating garage door for future replacement, noting its potential benefit for residents on the second floor impacted by noise. This is a component that would be part of future reserve planning.
V. Next Steps for the Board
Given this comprehensive reserve study, the Board should:
1.
Review the Funding Options: Discuss the pros and cons of Option One, Option Two, Option Three, Option Four, and Option Five, considering the impact on monthly dues and the long-term financial health of the Association.
2.
Align with Budgeting: Ensure the chosen funding plan is integrated into upcoming budget discussions, particularly for the 2025 budget, which recently had a 5.4% dues increase, partly due to insurance.
3.
Prioritize Capital Projects: Continue to evaluate and prioritize projects like the EV charging infrastructure and rooftop amenities within the context of the reserve study's recommendations and the financial capacity.
4.
Consider Future Updates: As per RCW 64.90.555, plan for the next Level 2 update with a visual site inspection in the recommended cycle to ensure the accuracy of component assessments.
This report provides a foundation for our discussions to ensure the Metropole Condominiums remain financially sound and well-maintained for years to come.
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ChatGPT: Here is a detailed analysis of the 2024 Level 3 Reserve Study for Metropole Condominiums, with an emphasis on what your building is reserving against, major future expenses, and key observations from the study. I also note some challenging areas that may require clarification or further documentation.
Total 30-Year Reserve Expenses: $3,085,093
Category
Amount
% of Total
Common Interior Finishes
$813,623
26.4%
Exterior
$915,366
29.7%
Roofing
$332,568
10.8%
Elevators
$242,185
7.9%
Miscellaneous Mechanical
$238,980
7.7%
HVAC Systems
$101,516
3.3%
Fire Detection & Suppression
$136,432
4.4%
Plumbing
$90,772
2.9%
Electrical Systems
$72,451
2.3%
Site (landscaping, concrete)
$141,200
4.6%
Structure / Amenities
$0
0%
Here are large or time-sensitive costs to highlight in your chatbot or reports:
Paint Exterior – $98,010 (next due in 2 years)
Brick Tuck-Pointing and Sealing – $22,374
Deck Coating Systems – ~$64K combined
Next cycle begins around 2026–2027 and repeats every 10 years or so
Repainting hallways/lobby – $63,418
Stairwells repainting and carpet – ~$50K combined
Recurring every 6–12 years, with costs compounding
Cab Renovations, Hoist/Track, HPU Controls, Door Operators – $135K+
ADA lift replacement – $16,000 (due in 2 years)
Cat 5 testing – $3,000 every 5 years
Full roof resurfacing – $85,000 (due in 2037)
Deck roof membrane (lower west) – $27,500 (due soon, 2-year life remaining)
Total roofing expense spikes every 13–25 years
Fire detection/control upgrades – $36,000 (due in 7 years)
Backflushing, sprinkler components – Recurring small costs
Garage exhaust and Reznor makeup air – ~$33K in 2 years
Sump pumps, parking door equipment, surveillance systems – Combined ~$130K over 30 years
No immediate necessary capital expenditures identified in 2024.
Inflation and interest assumptions are incorporated into the 30-year funding model.
Different funding strategies are modeled (full funding, baseline, etc.), but detail about current percent-funded level or actual cash balance wasn’t immediately visible—this may require deeper lookup or checking the full Section 4.
There are no structural component costs allocated. This may be justified (e.g., no major needs projected), but it’s surprising for a 30-year plan. Worth clarifying.
No expenses under “Amenities.” If your building adds features like EV chargers, rooftop upgrades, or shared amenities, these should be separately tracked in future updates.
HVAC split systems (likely condo-specific units) are not the HOA’s responsibility, which may explain relatively low HVAC costs. However, shared systems (garage exhaust, Reznor unit) are the HOA's burden.
Several spreadsheet tables are rendered sideways or use condensed visual formats that make year-by-year forecasts harder to extract in raw data form. These would need to be digitized for AI training.
Include Section 3.1A Component Table in your knowledge base – it lists each major system/component with replacement cost and life expectancy.
Highlight Top 5 Cost Drivers in your chatbot:
Paint Exterior
Interior Finishes
Elevators
Roof Resurfacing
Fire Safety Upgrades
Consider tagging components with urgency windows (e.g., 2-year outlook, 5-year, 10+).
Scan for cost spikes in Section 4’s funding projection—these drive special assessment risks.
Digitize sideways tables for better AI extraction and trend analysis.
ChatGPT
Long-Term Building Maintenance & Reserve Plan
As part of our responsibility to maintain the quality and safety of the Metropole Condominiums, the
Board uses an independent reserve study to plan for major building repairs and replacements over a
30-year horizon. This approach helps avoid unexpected special assessments by ensuring long-term
capital needs are identified and funded gradually through monthly dues.
Our most recent reserve study, conducted in 2024 by Samdal & Associates, identifies the following
major building systems and anticipated timelines for major expenditures.
Reserve Expense Overview
Category 30-Year Total ($) Major Expense Years
Exterior Maintenance $915,366 2026, 2027, 2036, 2046
Interior Common Areas $813,623 2026, 2030, 2038, 2048
Roofing $332,568 2026, 2037
Elevators $242,185 2031, 2046
Mechanical & HVAC $340,496 2026, 2042
Fire Safety Systems $136,432 2026, 2031, 2041
Electrical Systems $72,451 2026, 2036, 2046
Plumbing Systems $90,772 2026, 2036
Site (Landscaping & Concrete) $141,200 2024, 2034, 2044
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What’s Coming Soon (2024–2029)–
Exterior painting and deck coating
Brick veneer repairs
Lower west roof membrane replacement
Fire sprinkler flushing and system upgrades
Garage exhaust fan and make-up air unit replacement
Interior carpet and stairwell repainting
Elevator testing and ADA lift replacement
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About the Reserve Study
This overview is based on the 2024 Level 3 Reserve Study, which provides a year-by-year
schedule of estimated capital needs. The study helps guide Board financial planning and informs
our annual budgets and dues decisions.
For more detail, you can download the full Reserve Study PDF or view our Reserve Funding
Strategy.