1. WEDGEWOOD COVE HOA STREET PAVING/RESURFACING PROJECT

2. ENGINEERING REPORT Pavement Assessment conducted by Keith & Associates on April 30th, 2013. The assessment analyzed the current condition of our streets. The existing pavement is over 25 years old and has been seal coated on three (3) separate occasions.

3. INSPECTION FINDINGS The existing pavement has a measure of scaring and considerable “alligator” cracks that are expected for a roadway of this age. Erosion of pavement surface adjacent to the sidewalk is occurring in many locations. Problems with asphalt pavement adjacent to a storm- water inlet. Proper correction of this pavement area will require a determination if there is a void in the drainage structure, repair of same if necessary.

4. PAVEMENT TESTING Six (6) pavement cores and one (1) auger boring were performed to determine the depth of the pavement structure and its general composition. Asphalt thickness ranged from between 7/8 inch and 1 7/8 inch thick. Testing on the sub-grade identified that it is more than adequate to support the pavement structure. Although there are some deficiencies in thickness and carbonate content, the composite structure of the roadway section is reasonable sound.

5. ASSESSMENT & CONCLUSIONS The existing asphalt surface has held up fairly well considering the age of the roadways. Asphalt is typically viewed to provide a 20 year service life before replacement. Our streets have gone 5 years beyond that. To salvage the rock base structure of the pavement section below the asphalt surface, it is important to mill and resurface the top asphalt layer.

6. RECOMMENDATIONS The rock base damage at the riser inlet should be restored and all erosion and pothole areas should be patched. The section of the sidewalk that has heaved by the adjacent tree should also be addressed as a potential liability to the HOA. Milling and resurfacing of the asphalt surface should be performed as soon as possible to protect the pavement base structure.

7. STORMS ARE COMING

8. PROJECT COSTS ENGINEERING FEES - PT 1 Inspection & Data Collection$840.00 Pavement Testing$1661.00 Analysis of Roadway$1860.00 Prep of Cost Estimate$1320.00 Report$2410.00 Total PT 1 Engineering Fees$8091.00

9. PROJECT COSTS ENGINEERING FEES - PT 2 Engineering Plans$5750.00 Permitting$2060.00 Bid Assistance$1600.00 Construction Administration$5050.00 Total PT 2 Engineering Fees$14460.00

10. PROJECT COSTS Construction Phase Construction Costs$138,957.00 Contingency 10%$16,150.00 Total Operations$155,107.00

11. PROJECT COSTS PROJECT TOTALS Engineering Fees - PT 1$8,091.00 Engineering Fees - PT 2$14,460.00 Construction Phase$155, 107.00 PROJECT TOTALS$177,658.00

12. PROJECT FUNDING AMOUNT OF $ NEEDED Total Project Cost$177,658.00 Reserve Funds Operating Funds Surplus Unfunded Project Costs $107,658.00

13. FUNDING OPTIONS OPTION 1: VOLUNTARILY INCREASE MONTHLY ASSESSMENT This option will require 2/3 approval vote of the membership (63 homeowners). With this option we would attempt to get a loan from a bank in order to pay the contractor as required. This option will allow for the “pain” of this amount of money to be spread out over the length of the loan (5 years for example). At 5 years this amount would increase monthly assessments by approximately $20.00 per month. This would make our monthly payment $55.00 for 5 years.

14. FUNDING OPTIONS OPTION 2: SPECIAL ASSESSMENT This option only requires Board of Director approval. This option would require that each homeowner pay approximately $1,145.00 as a special assessment. A loan may still be an option with a special assessment but we may be limited on how many installments we can accept.

15. BANK OPTION We currently bank with BB&T. They will provide a loan for 5 years maximum at a rate of 4.25%. The monthly debt payment would be approximately $1,994.00.

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