Home
      Reserve Studies
      Overview
                   
      Financial Analysis
      Physical Analysis
      Transition Studies
      Client Benefits
      Client Photos
      Our Credentials
      Request Proposal

    

  

  

  

 

 

 

 

 

 


                                               Reserve Study Physical Analysis

 

The physical plant report places each component in a grid for testing and proving, including inventory, replacement value, and remaining use life. Through the criteria exhibited below, the report includes the conclusions of constant funding and expense years. The reader will note the analysis within the text.

 

   Physical Plant Report

 Dining Operations I

 

 

 

 

 

 

Life Span

 

 

 

 

 

 

Original Life

Chronological Age

Effective Age

Use Life Years

kitchen

15/30

8

5

10/20+

dining hall furnishings

10

8

8+

<2

dining hall decor

5

1-5+

1-5+

0-4+

 

 

 

 

 

 

 

 

 

 

 

 

Summary

 

Deferred Maintenance:
Obsolescence:
Life Extension:
Alternatives:

Comments
Observations
Preventative
Maintenance
&
Suggestions:


















 

Intentional deferment is not observed.

Furnishings and décor are approaching economic obsolescence.  Dining room size may represent functional obsolescence. Continue regular inspections and services.  Exceptional use will require accelerated services throughout all components.

One of the main focal points of the site's functions includes its dining operations.  Residents are served 3 meals a day, with a choice of two seatings each meal. It should be noted that the dining room's size cannot accommodate all residents at one time. 

The kitchen is well appointed with quality equipment.  The chef reports that there are no limitations in the existing equipment. Sporadic services are expected to address normal maintenance failures, addressed as an operating expense.  The reserve rate recognizes the major equipment including stoves, ovens, automatic fire suppression hood, refrigerators and ice makers, and work stations.  Replacement expenses occur in the out years, addressed with an annual reserve rate of $3,500 each year.  Unexpected irreparable losses can be funded from the line item.

Dining hall furnishings are listed as a line item, apart from the other items of the house, due to the accelerated wear and tear the inventory receives. Current observations indicate that the end of useful life is approaching for many of the chairs. Wood components are failing, as are cushions.  The inventory includes 13 tables with 66 seats in the main dining hall, and 8 tables with 32 seats in the memory wing. The inventory value is estimated at $41,370.  Phased expenses are included for years 2, 7, 12, and 17 at $20,685 each phase. The annual reserve rate is $4,137 each year.  

Similar to the wear and tear of furnishings, the dining hall décor receives accelerated use.  Years 2, 7, 12, and 17 include additional expenses of $15,000 for carpet replacement, window dressing, and items of detail.  The annual reserve rate is $3,000 each year.

 

 

 

 

Property Photos

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Inventory & Cost Analysis

 

 

 

 

 

 

 

 

 

 

 

Quantity

 

Unit

Unit

Cost

Total

Cost

Use

Life

Constant segregated funding

Actual cash expense & year

kitchen

1

L/S

$70,000

$70,000

20+

$3,500 per year

$0.00

dining hall furnishings

1

L/S

$82,740

$82,740

2+

$4,137 per year

$20,685 yrs 2, 7, 12, 17

dining hall decor

1

L/S

$60,000

$60,000

2+

$3,000 per year

$15,000 yrs 2, 7, 12, 17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Call us toll-free:
1-800-970-4433


The Replacement Reserve Report 1983-2012 is a subsidiary of Black Dog Publishing, LLC