Image Up Advertising & Design

| OHCC LIVING | SEPTEMBER 2023 | 9 Ad Hoc Lanai Construction Oversight Committee It can be used year-round. It is low maintenance and very durable. It can be augmented in the future to enhance its usefulness. 18. Why can't we just purchase a tent? A tent has much more limited use. A tent is incompatible as a permanent fixture in a community of million-dollar homes. 19. What is the budget for the project? e original budget estimate was $813,000 with a 10% contingency in addition. e Committee's revised budget, based on the surprise footings requirement, is $941,000 with a 10% contingency in addition. If you do the math, that means it could run just over a million dollars by the time it's done, which would be 10% over our original estimate including contingencies. So, in the case that we have new challenges other than the footings, we would still have an outstanding restored and enhanced facility consistent with the needs and the ambience of this community that is an excellent value. 20. Is this a reserve expenditure or a capital improvement? It is both. e cost of replacing the old structure with stucco pillars, wooden beams and fabric sunscreen covers, meeting today's building codes and without enhancements or enlargements, would come entirely from reserves. e cost of any upgrades that add new functionality or features or that enlarge the original structure are considered capital improvements. Accordingly, the Budget and Financial Advisory Committee reviewed an analysis of how to divvy up these estimated costs to determine the share of expense to each account. A similar preliminary analysis has been done with the Lanai Committee's revised budget. 21. Capital Improvements that exceed 5% of the current year's operating budget — not counting contributions to reserves or capital improvement funds — require a vote of the Members. Based on that analysis, this project is expected to consume between $357 and $393 thousand in Capital Improvement funds. e 5% limit is currently $403,000. 22. How much has been spent on the lanai project to date? For the last two fiscal years and the current year through the end of June: $28,000. is project will be a great amenity addition to our wonderful community. Our committee looks forward to completing it as quickly, and efficiently as possible.

• Cover