J. Roger Myers MYERES, WIDDERS, GIBSON KATHERINE E. STONE

Montel Widders JONES & SCHNEIDER, L.L.P

Keltay Lee Gibson ATTORNEYS AT LAW

Deniel Jones 6425 Everglades Street

Roy Schneider Post Office Box 7205

Peter D. Leminon VENTURACALIFORNIA 93005

(803) 944 - 8220

William P. Raymond Jr. (926) 850 - 6177

Scott Ahunter E-mail:

Erika Penook

Steven P. Lee

William Q. Short

March 1, 2005

Board of Directors

Surfside III Condominium Owners' Association, Inc.

Attn: Ms. Irene Winter

600 Sunfish Way

Port Hueneme, CA93041

Re: Preliminary Analysis Report

Dear Board of Directors:

The purpose of this preliminary analysis report is to provide you with some background,

analysis and repair recommendation with regard to the majority of your common area components.

The components addressed in this report include:

1. Wood Trim & Misc 10. Townhome Flat Roofs

2. T1- 11 Siding 11. Townhome Wood Framed Chimney Chases

3. Stucco 12. Common Area Concrete Walkways

4. Stairs 13. Common Area Walkway Lighting

5. Rear Balcony Posts/Columns 14. Common Area Playground Structures

6. Wrought Iron Railings 15. Structural Issues

7. Utility Room Doors 16. Clubhouse

8. Utility Closet/Boiler Room Roofs 17. Common Area Drainage

9. Composition Shingle Roofs 18. Miscellaneous Issues

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 2

Background, The Project is comprised of 258 condominium units contained within 8 three

story buildings constructed with wood framing covered with a combination of stucco and T1-11

siding. The condominium roofs are sloped and covered with composition shingles.

The Project also consists of 51 townhome units contained in eight 2-story buildings

constructed with wood framing covered with T1 - 11 siding and stucco. The garage roofs are flat

and living spaces roofs are sloped with composition asphalt shingles.

1. Wood Trim & Fascia. Many areas throughout the condominium townhome buildings contain

cupped, split, rotted or otherwise deteriorated. 2. Woodand balcony rim joists. Several

areas throughout the Project were noted to have been replaced with new materials. However, the

new materials are smaller than the existing wood was not backed primed and caulking was not

provided at wood/stucco structures.

Repair/Recommendations

Remove and replace all deteriorated wood fascia and trim with composite lumber

New trim shall be fastened with hot dipped galvanized or stainless steel fasteners.

All wood trims/stucco junctures shall be provided with baker rod (foam rope) and

filled with a high quality polyurethane sealant (sealant).

Composite wood, when used shall be primed and painting in accordance with

manufacture's painting instructions.

______

Composite lumber is approximately 30% more than the cost of conventional redwood or Douglas fir. The

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 3

Balcony deck and walkways rim joints shall be replaced with #2 douglas fir.

Douglas fir shall be backed primed on all six sides prior to installation

All fasteners shall be hot dipped galvanized or stainless steel screws.

2. T1 - 11 Siding. Certain areas throughout the Project, including the condo and townhome

buildings are sided with T1 - 11. Much of that siding buckle is otherwise deteriorated.

Repairs/Recommendations.

Survey entire Project and refasten as necessary

Fasteners shall be hot dipped galvanized with stainless steel screw

Nails shall be off sufficient length to penetrate framing a minimum of 1 1/2"

3. Stucco. Seven stucco all throughout the Project including condo and townhome

buildings contain creasing, spalling and/or stained areas.

Repairs/Recommendations. Where stucco is stained it is imperative that the cause

be identified and repaired prior to stucco restoration work. Those repairs typically require adding

and/or altering flashing as necessary to direct rain runoff away from the stucco.

Powerwash stained areas²

²When washing stucco, start at the bottom and saturate the stucco working to the top, once saturated rinse from the top down.

advantage of comprise lumber is that it dose not require back priming and has approximately a lifetime l

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 4

Apply fog coating³, as necessary, to all stained areas blending with surrounding

stucco color as close as practical.

Spalling Stucco Repairs.

Clean and remove all loose spalling stucco and recolor coat as necessary to match

existing color and texture as close as practical

Color coat repaired areas as discussed above.

Stucco Crack Repairs.

Clean cracks with a stiff brush.

Apply a bead of high quality polyurethane saturated caulking into cracks.

Remove excess surface creating with a stuff brush.

Fog coat other rough area necessary to match existing as close as practical.

4. Stairs. Coat buildings were constructed with flights or stairs with intermediate landings

connecting one floor to the other. The stair stringers and landing framing are constructed of wood,

many of which contain significant faults and deterioration. I observed several flights of stairs where

significant repairs have been performed many of the repaired areas are deficient. However many

others are in need of repairs and/or replacement.

Repairs/Recommendations. On those stair flights where significant dry rot is present

with the stringer and landing areas it is recommended that,

³Fog coating is the application of a fine mist of stucco mixture (cementitious paint) over stained areas.

The advantage of fog coating as opposed to painting is does not have any adverse effect on the porosity of stucco

and only is applied over the stained area.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 5

Treads shall be removed and saved to be reinstalled

New pressure treated stringers shall be cut to fit

New pressure treated landing framing shall be installed.

All stringer and landing wood materials, although pressure treated, shall be primed

and painting on all six surface prior to installation

All fasteners, including nails, lag bolts through bolting washers shall be hot

dipped galvanized or stainless steal.

Reinstall treads. Tread hangers and washing the predrilled with holes filled with

polyurethane sealant prior to the installation of fasteners.

Apply two top coast of acrylic latex exterior paint.

Caulk all wood to structure juncture with polyurethane sealant.

5. Rear Balcony Posts/Columns. My observation of rear balconies of the condo buildings

found support posts to contain significant rot deterioration primarily at the base of first floor

posts.

Repairs/Recommendations. The posts appear to be structurally functioning with no

indication of sudden failure. The problem appears to be occurring due to concrete contact at the

bottom of the posts. In all likelihood the post bottoms are not sealed nor are they pressure treated.

As a result, winter is wicking into the posts causing dry rot. In addition the water intrusion iscorroding

post fasteners.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 6

Temporarily support balconies where posts are going to be repaired.

Cut off approximately 2", plus or minus, at the base of the post

Install prefabricated metal stand-off * primed and painted prior to installation.

Seal all cut ends of post with a full penetrating water preservative.

Seal fastener holes with full penetrating water roofing.

Install hot tipped galvanized through bolting.

Remove temporary bracing at the completion of repairs.

6. Wrought Iron Railings. Common areas throughout the Project contain a significant

amounts of wrought iron railing including perimeter railing stairs and landing railings, balcony

entrance walkway railing and other miscellaneous railings. My observation of the railing found

them to be in varying dense of deterioration and slight spot rusting to complete corrosion of

bottom rails, spindless and posts.

Repairs/Recommendations. The diverse degree of deterioration it is recommended

that a thorough survey of the Project he performed, dividing it into areas as discussed above, at

which time the degree of corrosion could be quantified. It is recommended that a corrosive engineer

specializing in railing coatings, be consulted in order to recommend proper repairs and finishes to

those deteriorated railings.

* "Stand - offs" are U-shaped heavy steel plate basis measuring approximately 2" high and are used to raise

and support post bottoms.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 7

7. Utility Room Doors. Many of the utility closet door assemblies are deteriorated and in

need of replacement

Repairs/Recommendations.

Remove single and double door assemblies including jamb and related accessories.

Install new exterior door assemblies with full metal clad doors.

All new single and double doors incline and high louvered vents for utility

room ventillation.

Install new watertight thread.

Prime and paint new door assembles.

Caulk stucco/jamb molding structure with polyurethane sealant.

Boiler Room doors. The Utility Room Door repairs/recommendations,

8. Utility Closet/Boiler Room Roofs. The roofs are constructed with built up flat roofs

covered with gravel. My observations observed significant leakage within many of the utility and

boiler rooms. The rooms exist at the condo buildings with the roofs terminating at the outside edge

of the second floor entry walkways. The leaks appear to be occurring at the flat roof and walkway

face junctures.

Repairs/Recommendations

Remove gravel as necessary to expose entire length of roof/walkway edge.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 8

Fabricate and install new flashing as necessary to ensure a watertight condition at the

roof/balcony edge.

Re-roof as necessary.

(Please note that significant mold, dry rot and deteriorated drywall was observed in many

of the utility and boiler rooms.)

Remediation Repairs/Recommendations. Once the flat roof edge is repaired it will be

necessary to remediate and repair as necessary all deteriorated conditions with the utility and boiler

rooms.

9. Composition Shingle Roofs. The condo and townhome buildings were constructed with

sloped composition shingle roofs. The leak history of those buildings however it is

recommended that a qualified roofing contractor inspect each building and perform basic "tune-up"

repairs including, but not limited to replacing of missing shingles, replacing of deteriorated ridge

caps, sealing all plumbing pipes and filter roof penetrations. The work could be performed on

per building basis.

10. Flat Roofs. The townhome building were constructed with a combination of

composition shingle roofs and flat roofs (garages). It is my understanding that several of the flat

roofs are leaking and in need of repairs. My observations of one roof found problem areas to be

* Mold contaminated materials in the boiler and utility rooms should be removed by a qualified

remediation contractor in order to protect the health and safety of the workers.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 9

improperly flashed transitional areas at the roof/wall juncture and depressed areas around drains

resulting in significant ponding and leakage.

Repairs/Recommendations. Roofing contractor shall inspect and repair as necessary all

leaking garage flat roofs. Those repairs may include, but not limited to;

Filling in depressed and/or ponded areas

Altering roof drains to ensure positive drainage

Reflash as necessary roof/wall junctures

Flood coat (hop mop) as necessary

11. Townhome Wood Framed Chimney Chases. Certain model types were constructed

with chimney chases covered with wood and trim. My observations found much of the trim

to be deteriorated and in need of replacement.

Repairs/Recommendations. Due to the varying degrees of deterioration it is recommended

that all wood trim be replaced with compression lumber or cementitious trim comparable in size to

existing.

Inspect and repair all observed dry rot prior to new trim installation.

fasten all new materials with hot dipped galvanized or stainless steel fasteners.

Prime and paint as necessary to match existing color as close as practical

Caulk all siding/trim junctures with polyurethane sealant.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 10

23. Common Area Concrete Walkways. Many of the concrete walkways throughout the

Project contain cracks. In addition larger concrete common areas are poorly drained which has

resulted in significant ponding and algae.

Repairs/Recommendations. In areas where cracked walkways have resulted in a trip and

fall * condition it is recommended that a concrete grinding specialist grind those areas as necessary

to ensure a smooth and uniform.

Cracked Concrete. In areas where concrete to be removed and replaced new concrete

shall be a minimum of 4" thick and divided into square shapes by using controlled

joints placed at a depth of 1/4 the thickness of the concrete. i.e., concrete section 4" thick shall

contain a control joint 1" deep.

Poorly Drained Concrete Area. Due to the possibility of a slip and fall conditions caused

by algae it is recommended that those areas containing a significant ponding and algae be removed

and placed in order to ensure proper drainage of those areas. New concrete to be installed as

discussed above.

13. Common Area Walkway Lighting. My observation found a significant number of common

area walkway lights to be damaged due to vandalism. In addition I observed several electrical junction

boxes with access plates secured with duck tape. One area was observed to have open wires covered

with an orange traffic cone.

* "Trim and Fall" conditions are undefined by any industry standards (authority). If you are concerned, grind it.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 11

Repairs/Recommendations. The electrical conditions are unsafe and should be repaired as

soon as possible. A licensed electrical contractor shall inspect and repair all unsafe electrical

conditions.

In order to prevent vandalism to common area lighting fixtures in the future a new and more

durable fixture should be designed and constructing accordingly.

15. Common Area Playground Structures. My observations of the main playground wood

trellis structure found significant dry rot deterioration many of the timbers. I also observed

exposed overhead wiring.

Repair Recommendation. Due to the fact that significant deterioration was observed on

many of the playground wood timbers caused by original poor design and choice of materials it is

recommended that the entire structure replace with pressure treated lumber, stainless steal or

corrosive resistant fasteners, and designed as is necessary to minimize future deterioration.

In addition, it is a recommended that a license electrical contractor remove all unsafe wiring

conditions.

15. Structural Issues. My observation at the corner of building 6 revealed, what appeared

to be significant distress and/or movement. Possible settlement/distress was also observed at

building 7. At the time of my observations the conditions did not appear to be in danger of

immediate collapse, however I recommend that a qualified structural engineer observe those

conditions as soon as possible in order to the significance, if any, of those conditions.

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 12

16. Clubhouse. My observations of the interior of the main club house revealed significant

water staining on many areas of the ceiling. It is my understanding that the clubhouse is constructed

with flat and sloped roofs and that leakage is occurring primarily around flat roof areas. I have

recently reviewed a roofing analysis report prepared by California Exterior. Their report discusses

significant problems with the roofs including; new roofing sheet blocking overflow drains,

improper "torching down" at the perimeter of the building scupper distort properly installed

and/or replaced, areas of the field membrane could easily be held up, improper flashing at the

roofs/stucco juncture and observed nail holes and other instant penetrations through parapet wall

stucco and other miscellaneous defective conditions.

As a result of the conditions observed by California Exterior: the clubhouse is continuously

leaking.

Repairs/Recommendations. Based on the observations reported in the California Exterior

report it will be necessary to perform a closer inspection of those roof/wall junctures which the report

notes are defective and likely contributing to the leakage below. It is recommended that a closer

inspection be performed of those areas in order that an appropriate scope of repair could be

recommended.

17. Common Area Drainage.

CondoBuilding Drainage. Many areas around the condo buildings were found to contain

areas that did not drain properly and as a result significant ponding was observed. Continuous

ponding areas adjacent to building can cause erosion to foundations, algae and mosquito

Board of Directors,

Surfside III Condominium Owners' Association, Inc.

March 1, 2005

Page 13

contamination. Other drainage problems were found to be caused by improperly and/or poorly

terminated down spouts and buried splash blocks.

In one instance water floods into the elevator pit causing damage to the elevator equipment.

Repairs/Recommendations. Complete survey shall be performed on each building

identifying all areas requiring drainage improvements, the remark may include, but not limited

to;

Removing buried splash blocks, regarding and reinstalling splash blocks to ensure

a positive slope away from building/patios.

Regard eroded areas adjacent to building foundations and rear patio slabs as

necessary to ensure a positive slope away from building.

All downspouts, shall connecting to underground liters terminating to daylight a

minimum of 10' away from building foundation lime.

Flooding Elevator. This area is unique and will require additional investigation after which

time specific repairs could be recommended.

TownhomeBuilding Drainage. It is my understanding that significant flooding occurs