Depreciation Report High Street Strata Corporation BCS 3569 · Asal Souri of MH is a building science consultant experienced in the design, construction and assessment of wood framed

Morrison Hershfield | Suite 310, 4321 Still Creek Drive, Burnaby, BC V5C 6S7, Canada | Tel 604 454 0402 Fax 604 454 0403 | morrisonhershfield.com

FINAL

Depreciation Report

High Street Strata Corporation BCS 3569

2940 & 2950 King George Blvd, Surrey, BC

Presented to:

The Owners of BCS 3569 c/o Don Wong, Strata Manager FirstService Residential 600 – 777 Hornby Street Vancouver, BC V6Z 1S4

Report No. 5130949.00 M:\PROJ\5130949\00\BCS 3569-HIGH STREET-DEPRECIATION

REPORT.DOCX

February 20, 2014

TABLE OF CONTENTS

1. INTRODUCTION ................................................................................................................ 1

2. PHYSICAL ASSESSMENT ................................................................................................ 3

3. FINANCIAL ANALYSIS ..................................................................................................... 4

4. CLOSURE.......................................................................................................................... 6

APPENDIX A: Building Data Sheet

APPENDIX B: Completed Start Up Questionnaire

APPENDIX C: Condition Assessment

APPENDIX D: Capital Plan and Funding Scenarios

APPENDIX E: General Depreciation Report Information

APPENDIX F: Photographs

APPENDIX G: Elevators

Depreciation Report Strata Corporation BCS 3569 – High Street

1

1. INTRODUCTION

As per our Proposal dated January 04, 2013 and your Authorization Form, completed by Don Wong, Property Manager dated July 22, 2013, this letter report and attachments comprise your Depreciation Report.

To the best of our knowledge, this document was prepared in general compliance with Section 6.2 (Depreciation Report) of the Strata Property Regulation B.C. Reg. 43/2000 with Amendments July 1, 2000 and December 13, 2011. This report is subject to the limitations identified in Appendix E.

PROJECT TEAM AND QUALIFICATIONS

As per section 6.2 of the Act, clause 1d, the report must provide the name of the person from whom the depreciation report was obtained and a description of:

i) their qualifications

ii) the error and omission insurance, if any, carried by that person, and

iii) the relationship between that person and the strata corporation

i) Morrison Hershfield Limited (MH) prepared this report. MH is a prominent, privately held, multi-disciplinary engineering and management firm. Our mandate is to provide services and solutions that will assist our clients in achieving their objectives in a cost effective, efficient, professional and friendly manner. The firm was established in 1946 and has a broad range of engineering, architectural and specialist skills that are used to serve clients in the public and private sectors.

� Asal Souri of MH is a building science consultant experienced in the design, construction and assessment of wood framed low-rise construction. Ms. Souri addressed the building and site elements and drafted these sections of the report;

� Tom Miller P.Eng. of MH is a senior mechanical engineer with experience in building systems design, telecommunications design and inspections, building condition/reserve fund assessments and custom design work. Mr. Miller reviewed the mechanical systems of the report;

� Alex Rubin of MH is an electrical designer with over 20 years of experience in design, review and assessment of electrical systems. Mr. Rubin addressed the electrical systems and drafted these sections of the report;

� Jacquelyn White, P.Eng. is a Principal of MH and project manager in facility assessment with over ten years of experience in the design, review and assessment of buildings. Ms. White has been performing depreciation report/reserve fund studies since the late 1990’s while working in Ontario. Ms. White reviewed the report.

� Patrick Ho, P.Eng. of KJA Consultants is a mechanical engineer with experience in the construction, modernization and review of elevator systems. Mr. Ho prepared the elevator section of the report.


2

ii) We confirm that we carry professional liability insurance in the amount of $2,000,000 per claim.

iii) Morrison Hershfield is not associated with Strata Corporation beyond being retained to perform professional services. We are not aware of any conflicts of interest.

MH submitted a draft report on November 25, 2013. The draft was accepted with no change. We received authorization to finalize the report on February 13, 2014 from Ian Osman of FirstService Residential.


3

2. PHYSICAL ASSESSMENT

This study is based on a review of relevant documents provided by BCS 3569, and a visual review of the common elements as described in the Building Data Sheet (Appendix A). The following documents were reviewed:

• Architectural Drawings prepared by Rositch Hemphill and Associates, dated January 11, 2010

• Mechanical Drawings prepared by Dec Design, dated February 2007.

• Maintenance Manual prepared by Morrison Hershfield date August 13, 2010.

• Financial Information

The visual reviews were completed on August 27, 2013 by Jacquelyn White, Asal Souri, Tom Miller, and Alex Rubin from MH and Patrick Ho from KJA. We were accompanied by Maureen McKenzie, Building manager who provided access to all areas of the facility including suites 301, 409, 202, 209, 403, 309, P1& P2. We accessed the main roof of both buildings and roof deck patios at suites listed; no other terrace or lower roofs were accessed directly.

Current condition and recommendations by component are included in the attached Tables (Appendix C). The component inventory excludes capital expenses less than $6,000. As identified in the startup questionnaire (Appendix B), these smaller items will be covered out of the operating budget. Following accounting standards, we identify a fiscal year by the year in which it ends. For example, the 2013/2014 fiscal year is referred to throughout as 2014. To maintain consistency in calculations, a component’s year of acquisition is also shown as the fiscal year rather than the calendar year.

In summary, we recommend planning for the following renewal projects and studies:

Short Term (within two years) Middle Term (within six years)

Projects Projects

• None • Replacing balconies membrane

Studies Studies

• None • Update Depreciation Report

• 10-year Structure Warranty Review

We note that prior to any major expenditures, a comprehensive review of the assembly scheduled for replacement should be undertaken to refine timing and budget.

We would be pleased to provide a proposal to perform any of the additional investigations identified. We also provide full engineering design, tender, construction management and contract administration services for major repair or replacement projects required at your site, and welcome the opportunity to provide Engineering services to assist you with these undertakings.


4

3. FINANCIAL ANALYSIS

The Strata Corporation’s annual contributions to the Reserve Fund Account should be established by the Council. Three possible funding Scenarios are summarized below and detailed in Appendix D. These were provided for council to review.

Scenario 1

2014 2015 2016 2017

Annual Reserve Contribution* $24,870 $25,367 $25,875 $26,392

% Increase n/a 2.0% 2.0% 2.0%

Average Increase per Unit n/a $5.65 $5.77 $5.88

Average Annual Contribution per Unit $282.61 $288.27 $294.03 $299.91

Scenario 2

2014 2015 2016 2017


% Increase n/a 10.0% 10.0% 10.0%



Scenario 3

2014 2015 2016 2017


% Increase n/a 25.0% 25.0% 25.0%



This Scenario shows contribution increases due to inflation only. Projects are fully funded by Other

Contributions. The Reserve Fund Balance remains positive over the next thirty years, with a minimum

balance of approximately $71,721 in fiscal year 2029. For details, please see the 30 Year Reserve Fund

Cash Flow Table for Scenario 1.

This Scenario is based on the last approved funding plan.

This Scenario shows contribution increases of 10% per year, including inflation, for 29 years. Other

contributions are included as required. The Reserve Fund Balance remains positive over the next thirty

years, with a minimum balance of approximately $72,525 in fiscal year 2024. For details, please see the

30 Year Reserve Fund Cash Flow Table for Scenario 2.

This Scenario shows contribution increases of 25% per year, including inflation, for first 5 years, followed

by increases due to inflation only thereafter. Other contributions are included as required.The Reserve

Fund Balance remains positive over the next thirty years, with a minimum balance of approximately

$75,197 in fiscal year 2039. For details, please see the 30 Year Reserve Fund Cash Flow Table for

Scenario 3.


5

* Annual Reserve Contribution refers to the amount contributed each year to the reserve fund from the monthly common expenses.

We noted that there are major expenses in 2044 & 2049. The funding in scenario 2 shows a significant balance at the end of the study (2043) but as the condition assessment shows; many of the major expenses are in 30 years, which is just outside the shown capital plan horizon.

Scenario 1 shows a forecast based on the last approved funding plan; however, if the strata make no increases other than inflation, significant special assessments (other contributions) will be required.

Scenario 2 shows 10% increasing contribution each year to reduce the amounts of special assessments.

Scenario 3 shows more aggressive contribution increases for the first 5 years followed by inflation increase only thereafter to further reduce the need for special assessments.


APPENDIX A: Building Data Sheet


BUILDING DATA SHEET

Strata Name: BCS 3569, High Street

Address: 2940 & 2950 King George Blvd, Surrey, BC

Units: 88 Stories: 4 Constructed: circa 2009

Recreation

Facilities:

Amenity Room, Gym, Common bathrooms

Garage: 2-level underground

Other Details: Ground floor commercial units excluded from this study.

Common Elements:

• Structural systems

• Parking garage

• Exterior walls, all components up to the back-side of the interior gypsum wall board

• Windows, to the interior unfinished surface

• Roofing systems

• Building common areas (lobbies, corridors, service rooms)

• Recreational facilities listed above

• Mechanical systems (components that serve more than one unit)

• Electrical systems (components that serve more than one unit)

• Elevators (2)

• Common area landscaping


APPENDIX B: Completed Start Up Questionnaire


APPENDIX C: Condition Assessment

page 1 of 6

Depreciation Report - Condition Assessment Priority Ratings: 1: Immediate, items that require immediate repair or replacement because of either a code deficiency or a safety concern.

High Street- 2940 — 2950 King George Highway, Surrey, B.C. 2: Deferred Maintenance, required to restore functionality.

FINAL - February , 2014 3: Renewal, items that will require future repair or replacement to maintain functionality (life cycle replacement).

4: Discretionary, items where the timing and scope of work of the renewal is at the owner's discretion.

1 STRUCTURE SYSTEMS

2 A1010 Standard Foundations-concrete

Parking The foundation walls are poured in place concrete. The structural framing of the parking garage consists of reinforced concrete slabs, reinforced concrete shearwalls, foundation walls and columns. Photo #SS01. Sign of efflorescence was observed at a few locations on the soffit above stall #R102 & #R103 but in general they are in good condition. Photo #SS01.

Good 2009 An allowance is recommended to conduct periodic concrete repairs to the suspended slabs (including through-slab, top surface and soffit repairs), as well as isolated repairs to the column bases, perimeter walls and ramps.

Repair Allowance

2 5 5 5 1 N $5,000

3 B1010 Superstructure

Wood Framing The above grade structure of the complex is wood framed except for the commercial sections. No issues have been reported or noted; however, no exploratory openings were made to assess the condition of the framing.

Not Reviewed 2009 The wood framing is expected to last the life of the building. No capital expenditures anticipated.

Not Applicable 5 N


Concrete Structure The commercial units are constructed of concrete walls and suspended concrete slab at the roof level which is used as the roof deck patios for residents above. No issues have been reported or noted.

Not Reviewed 2009 The Concrete structure is expected to last the life of the building. No capital expenditures anticipated.

Not Applicable 5 N


Guardrails with Glass Panels

Aluminum guardrails with glass panels are installed side-mounted on the balconies at both buildings. In addition aluminum framed privacy screens with glazing panels are provided between adjacent balconies. Photos #SS02 & #SS03.

Good 2009 Replace at end of expected service life. Renewal 3 5 35 30 1 Y $67,000


Picket Railings Aluminum picket railings are installed at the perimeter of the roof deck patios over the commercial sections, including the ground level patios of corner units at both buildings as well as the north perimeter of the property. Photos #SS04 & #SS05.

Good 2009 Replace at end of expected service life. Those on podium are included in cost of podium membrane replacement.

Renewal 3 5 35 30 1 Y $43,000

7 PARKING GARAGE

8 A1030 Slab on Grade

Parkade P1 & P2 P2 parking is located below commercial section except for a small part constructed under P1 parking level; therefore, P2 and the majority of the P1 parkades are slabs on grade. Slabs on grade are poured concrete over poly vapour barrier and compacted granular fill. They in good condition with some localized cracking. Photo #PG01.

Good 2009 The slab on grade is expected to last the life of the complex with regular maintenance. No anticipated capital expenditures.

Not Applicable 5 N

9 B1010 Suspended Slabs

Traffic Coating (P1) A small section of P1 parkade level located above P2 level has a liquid-applied elastomeric polyurethane waterproofing membrane and is in good condition.

Good 2009 Replace the traffic coating at end of expected service life.

Renewal 3 5 20 15 1 Y $28,000

10 B1014 Ramps Architectural drawings indicate the ramp to the parkade is comprised of 4" concrete topping with reinforcement over drainage mat and waterproofing membrane provided on the concrete slab.

Good 2009 Replace ramp and membrane at end of service life.

Renewal 3 5 30 25 1 Y $27,000

11 B1015 Exterior Stairs and Fire Escapes

There are two exterior stairwells connecting the parking levels to the courtyard above on the south side of the property. Also there are four escape stairwells located inside both buildings connecting each floor to the exterior space. They have aluminum handrails and guardrails. Photo #PG02.

Good 2009 Stairs likely to last the life of complex. Handrails and guardrails may require replacement.

Renewal 3 5 40 35 1 Y $13,000

12 C3000 Interior Finishes

Walls & Columns The walls and columns are painted excluding the soffits. Photo #PG01. Good 2009 Repaint the walls and columns when required. Renewal 3 5 15 10 1 Y $24,000

13 B2034 Man Doors Exterior Fire Doors Six pedestrian exit doors provide egress to the exterior of the parking garages and courtyard. The doors inside the buildings are hollow metal units with safety glass in pressed steel frames. Exterior doors are flush hollow metal doors. Service room doors, including mechanical, electrical and locker rooms, are solid steel door with safety glass. Photos #PG03 & #PG04.

Good 2009 Likely last the life of the complex. No capital replacements anticipated.

Renewal 3 5 N

14 B2034 Overhead Door-Metal

Security Gate/ Parking Entrances

There is a steel grated overhead door located between residential and visitors parking for commercial. Photo #PG05.

Good 2009 Replacement including the operating system as well as the door itself.

Renewal 3 5 20 15 1 Y $8,000

Row

Recommended

Budget

in 2014 Dollars

Condition

Estimated

Remaining

Life

Description & History

Actual or

Estimated

Year of

Acquisition

Age in

2014Type

Typical

Life Cycle

Include

Y/N

COMPONENT

ID Location / Type Recommendation Priority

Years Over

Which Project

is Phased

LIFECYCLE DATARECOMMENDATIONCONDITION ASSESSMENT

This report should be reviewed in conjunction with the Objectives, Terms of Reference, Limitations, and Methodology described in the main body of the report.

M:\PROJ\5130949\00\BCS 3569 high Street Master Table- Draft, 2/17/2014

page 2 of 6





Row

Recommended

Budget

in 2014 Dollars

Condition

Estimated

Remaining

Life


Actual or

Estimated

Year of

Acquisition

Age in

2014Type

Typical

Life Cycle

Include

Y/N

COMPONENT


Years Over

Which Project

is Phased


15 BUILDING ENVELOPE

16 2009 Replace Hardie cladding at the end of expected service life.

Renewal 3 5 40 35 1 Y $465,000

17 2009 Repaint Hardie cladding when required. Renewal 3 5 15 10 1 Y $50,000

18 B2010 Exterior Wall Construction- Masonry

Brick Cladding 2009 The brick masonry is expected to last the life of the building; however, localized repairing damaged bricks, repointing mortar is required.

Repair Allowance

3 5 25 20 1 Y $40,000

19 2009 Re-seal the brick cladding as required. Renewal 3 5 10 5 1 Y $12,000

20 B2010 Exterior Wall Construction- Concrete

Concrete Walls Exposed concrete walls are constructed at the main entries of both buildings and are coated with an elastomeric paint. Photo #BE03.

Good 2009 Repaint the exterior concrete walls when required.

Renewal 3 5 10 5 1 N $4,000

21 B2011 Exterior Wall Construction- Liquid Coating

Eyebrows Eyebrows are constructed on both buildings. They are covered by a urethane traffic coating on 3/4" ext. grade plywood over 2x6 framing; however, at the perimeter edge a metal flashing is installed over the

waterproofing membrane and then 12" waterproofing membrane is

provided over the flashing. Photo #BE04.

Good 2009 The traffic membrane has a lifespan of 12 to 15 years, after which it should be recoated including all associated work such as flashing replacement and joint sealing.

Renewal 3 5 15 10 1 Y $18,000

22 B2010 Exterior Wall Construction- Sealants

Windows, Doors Sealants are provided between different cladding materials (brick to Hardie and concrete) and around the window and door frames.

Good 2009 Replace sealants at end of expected service life. Cost is included in respected components replacement.

Renewal 3 5 N

23 B2011 Exterior Wall Construction- Flashings

Sheet metal flashing is used at the roof and eyebrow perimeters and at the exterior walls between the floors to direct water away from the building envelope assemblies.

Good 2009 Replace flashings at the same time as associated assembly replacement. The cost has been included in the respected components.

Renewal 3 5 N

24 2009 An allowance is recommended to replace failed IGU's, repair hardware of windows and slider doors after 10 years including slider units too. (Typically under warranty for first 10 years.)

Repair Allowance

3 5 2 7 1 Y $10,000

25 2009 Replace at end of service life. Renewal 3 5 40 30 2 Y $649,000

26 B2030 Exterior Doors- Storefront

Entrance The main entrance of each building has an aluminum storefront assembly with double glazed IGU's. Photo #BE03.

Good 2009 Replace at end of service life. Repair cost is included in window repair allowance.

Renewal 3 5 40 35 1 Y $8,000

27 B2030 Exterior Doors

Sliding Doors Access to some of the balconies and roof deck patios are provided through double glazed sliding units in vinyl frames. Photo #BE06.


28 B2030 Exterior Doors

Balconies/ Roof decks & patios

Access to some balconies and roof deck patios are provided through solid core wood swing doors with glazing. Photo #BE07.

Good 2009 Replace at end of expected service life. Repair cost is included in window repair allowance.

Renewal 3 5 35 30 2 Y $43,000

29 B3010 Soffit Cornice According to the drawings primus coated "Fibre-Crown" Styrofoam cornices are installed at the roof overhangs and below eyebrows. Photo #BE08.

Good 2009 Recoat the cornices ideally in conjunction with repainting Hardie walls.

Renewal 3 5 15 10 1 Y $24,000

30 B3010 Soffit Vinyl Perforated vinyl soffit panels are installed on the underside of balconies. Photo #BE09.


31 ROOFING SYSTEMS

32 B3010 Roof Coverings

Flat Roof The roof system of both buildings are low-rise "flat" roof consist of 2-ply torch on modified membrane on exterior fir-wood sheathing over roof joists including fiberglass batt insulation covered by poly vapour barrier and finished by GWBs. Photo #RS01.

Good 2009 Replacement at end of service life includes all associated work such as flashing replacement and joint sealing.

Renewal 3 5 25 20 1 Y $573,000

The windows used throughout the complex are thermally broken double glazed units in vinyl frames (Starline 6000 & 7100 Series) with combination of fixed units, casement and sliding operables. Photo #BE05.

Vinyl WindowsB2020 Exterior Windows

Good

Hardie-board horizontal lap siding or Hardie-Panel vertical siding w/painted Hardie battens are the main cladding on the third and forth floors in this complex. The Hardie-board cladding is installed with 1/2" vertical wood strapping and continuous moisture barrier over 1/2" exterior fir-ply sheathing. Photo #BE01.

B2010 Exterior Wall Construction-Metal

Hardie Panel, Lapped Siding

Good

Drained cavity brick cladding is used mainly on the first and second floors at the complex. According to the architectural drawings the full exterior assembly includes; brick with sealer, air space, 2 layers building papers applied to the exterior fir-ply sheathing. Photo #BE02.

Good



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Row

Recommended

Budget

in 2014 Dollars

Condition

Estimated

Remaining

Life


Actual or

Estimated

Year of

Acquisition

Age in

2014Type

Typical

Life Cycle

Include

Y/N

COMPONENT


Years Over

Which Project

is Phased


33 B3010 Roof Coverings- PMR

Roof Deck Patios There are roof deck patios (over living space) located on the north side of both buildings over commercial sections. They are comprised of roofing membrane over suspended concrete slabs covered by drainage matt and rigid insulation and concrete pavers as top traffic surfaces. Photo #RS02. Overburden includes plantings, grass and pavers on walkways and patios.

Good 2009 Replacement at end of expected service life includes all associated work such as flashing replacement and joint sealing. Total cost includes removal and replacement of all overburden such as planter boxes and concrete blocks retaining walls. Assume reuse of insulation and pavers.

Renewal 3 5 30 25 1 Y $227,000

34 B3010 Roof Coverings- Liquid Urethane

Balconies The term balcony refers to exterior spaces that are elevated above grade, but are not constructed over habitable space. The balconies are protected with liquid urethane pedestrian deck membrane. Photo #RS03.

Good 2009 Replace membrane at end of service life. Cost includes surface preparation and over coating.

Renewal 3 5 10 5 1 Y $61,000

35 B3010 Roof Covering

Podium Podium membrane is covered by landscaping at backyard, walkways and ground level patios; therefore, the condition of the membrane was not reviewed. Podium is comprised of hot rubberized asphalt waterproofing membrane over suspended concrete slab covered by drainage mat, drainage rocks, filer fabric and top soil/concrete pavers as top surface. Photo #RS04.

Not Reviewed 2009 Replace waterproofing membrane at end of expected service life. Cost includes removal and replacement of all overburden.

Renewal 3 5 40 35 1 Y $1,866,000

36 INTERIOR FINISHES

37 C1020 Interior Doors- Wood

Suites Entries Suite entry doors are solid wood units in wood frames . Photo #IF01. Good 2009 Phased replacement as required. Contingency 4 5 35 30 10 Y $56,000


Corridors Finishes The corridors have painted walls and ceilings. Photo #IF02. Good 2009 Renew the finishes every 10 years. Renewal 4 5 10 5 2 Y $78,000


Corridors Finishes The corridors have carpeted floorings except for a small area adjacent to the amenity room and gym covered by ceramic tiles. Photo #IF02.

Good 2009 Replace carpets at end of expected service life. Renewal 4 5 15 10 2 Y $45,000


Lobby Both main lobby entries have ceramic tiled flooring with decorative wood paneling walls and painted ceilings. They include some furniture and wall decorations. Photo #IF03.

Good 2009 An allowance to renew finishes as needed. Contingency 4 5 15 10 1 Y $21,000


Gym The gym has rubber flooring, painted gypsum walls and painted ceiling with mirrors installed on the walls. Equipment includes several universal gyms and cardio machines, a TV set and a small water fountain. Photos #IF04.

Good 2009 An allowance to renew equipment and finishes as needed.

Contingency 4 5 5 2 1 Y $5,000


Amenity Room The amenity room has carpet flooring, painted gypsum walls and painted ceiling. The room includes a full kitchen, some furniture and a TV set. The kitchen includes cabinetry with a sink, a small fridge, a microwave and a dish washer with ceramic tiles flooring. Photos #IF05 & #IF06.

Good 2009 An allowance to renew equipment and finishes when required.

Contingency 4 5 10 5 1 Y $5,000


Common Bathroom There are two common bathrooms at this complex. Each has a lavatory and a toilet. Photos #IF07.

Good 2009 An allowance to renew finishes when required. Contingency 4 5 15 10 2 N $3,000

44 SITE FEATURES

45 G2040 Site Development- Walkway and Sidewalk Paving

Walkways/ Courtyard

Concrete pavers are installed at all common walkways on the courtyard as well as the roof deck patios. Photo #SF01.

Good 2009 No capital expenses anticipated. Walkways on podium will be replaced in conjunction with podium membrane replacement.

Renewal 3 5 N

46 G2040 Site Development

Concrete Unit Entrance Steps

Concrete unit entrance steps are provided at the main entry of the complex. Photo #SF02.

Good 2009 Expected to last the life of the complex with regular maintenance.

Renewal 3 5 N


Wood Fences Wood fence panels are installed partially around the ground level patios for privacy. Photos #SF03.

Good 2009 Replace fencing at end of expected service life. Renewal 3 5 20 15 1 N $3,000


Concrete Retaining Walls

Allan block retaining walls are constructed for holding the landscaping provided at the courtyard and also at the roof deck patios located above the commercial sections. Photos # SF01 & #SF04.

Good 2009 The concrete retaining walls are expected to last the life of the building. An allowance to address localized repairs is recommended.

Renewal 3 5 5 15 1 N $3,000



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Row

Recommended

Budget

in 2014 Dollars

Condition

Estimated

Remaining

Life


Actual or

Estimated

Year of

Acquisition

Age in

2014Type

Typical

Life Cycle

Include

Y/N

COMPONENT


Years Over

Which Project

is Phased



Aluminum Trellis An aluminum trellis with concrete columns covered by vertical wood panels is installed in the middle of the courtyard. Photo #SF05.

Good 2009 Replace ideally in conjunction with podium membrane replacement.

Renewal 3 5 35 35 1 Y $10,000


Glazed Canopy An aluminum framed glazed canopy is installed above the main entry of each building. Photo #SF06.

Good 2009 Replace at end of service life. Renewal 3 5 35 30 1 Y $10,000


Fabric Awning There is an aluminum framed fabric awning provided above the entry door of the handicap lift. Photo #SF07.

Good 2009 Replace at end of service life. Renewal 3 5 20 15 1 N $1,000

5253 D2020 Domestic

Water DistributionWater Entry Room Domestic Piping

Buildings A and B are provided with an 8" dia. fire service main and a 6" dia. domestic water main. Both enter the parking level P2 at the SE end. Equipment includes a 4" water meter (photo #MS02), a 4" PRV with a 1 1/2" low flow PRV in parallel (photo #MS01) and a 1 1/2" double check BFP on the irrigation water supply line.

Good 2009 The steel fire piping will likely last 40+ years; after which a small allowance for repairs and future anti-corrosion coatings is recommended.

Renewal 3 5 40 35 1 Y $9,000

54 D2020 - Domestic Water Distribution - Pipes and Fittings

DCW and DHW piping in the suites

DCW and DHW are distributed to the suites in Bldgs. A & B via copper mains that run up to Level 2 ceiling along the full length of A and B. PEX risers run from these mains into the suites to each fixture.

Good 2009 The copper mains and the PEX piping have been sized to the velocities stated in the current Vancouver plumbing bylaw, and no significant leaks have been reported to date. Life expectancy is estimated at 35+ years.

Renewal 3 5 35 30 1 Y $659,000

55 D202003 - Domestic Water Distribution: DHW Storage

DHW Plant - P1 Mech. Room

Buildings A & B are supplied DHW from a common plant located in P1. Each building has a dedicated HW boiler, Laars model VW600 (600 mbh gas input) with a 1 hp circulation pump and 2 - 120 gal. glass lined steel storage tanks, all original from 2009. Photos #MS03 and #MS04.

Good 2009 The laars copper fin boilers and the storage tanks have an average life expectancy of 15-20 years.

Renewal 3 5 20 15 1 Y $35,000

56 D202003 - Domestic Water Distribution: Recirculation Pumps


A DHW recirculation circuit is provided, and has a bronze inline recirculation pump located in the parkade mechanical room.

Good 2009 Inline centrifugal pumps have a typical lifespan of 20 to 25 years. Recirculation pumps require regular maintenance

Renewal 3 5 20 16 1 Y $3,000

57 D2040 - Sanitary Drainage

Sanitary Drain Piping

Cast iron piping with mechanical joints. Generally in good condition. Good 2009 Cast Iron pipes can last anywhere from 50 to 80 years. Expect replacement of individual compression fittings, at a cost below the threshold of this report, as they age.

Renewal 3 5 N


Parking P2 Sanitary Drain Lift Station

Meyers MW-50 Sanitary duplex automatic package lift station 2 pumps @ 0.4 hp. located at the north-west corner of the parkade.

Good 2009 These pumps are assumed to be original. Submersible pumps have a typical lifespan of 10 to15 years.

Renewal 3 5 15 10 1 N $2,000

59 D2040 - Rain Water Drainage

Storm Piping Cast iron piping with mechanical joints. Generally in good condition. Good 2009 Cast Iron pipes can last anywhere from 50 to 80 years. Expect replacement of individual compression fittings, at a cost below the threshold of this report, as they age.

Renewal 3 5 N


Parking P2 Storm Lift Station

Meyers/SRM-4 (Storm) duplex automatic package lift station @ 1.0 hp. located at the north-west corner of the parkade.

Good 2009 The storm lift pumps are assumed to be original. Submersible pumps have a typical lifespan of 10 to15 years.

Renewal 3 5 15 10 1 N $3,000

61 D3040 Distribution Systems

Parkade Fans Parkade ventilation for level P1 is provided by three 8,500 cfm propeller exhaust fans located in the SW corner of P1. These fans are controlled by both the DDC system to maintain temperature, and by a CO sensor. Ventilation for level P2 is provided by two 10,000 cfm tube axial exhaust fans, controlled by a CO sensor system. Photo #MS05

Good 2009 Axial and propeller fans in parkades have a typical service life of 25 years. Price is for a complete overhaul.

Renewal 3 5 25 20 1 Y $10,000

62 D3080 Other HVAC Equipment

CO Sensors Parkade is equipped with a gas sensor system with multiple sensors connected a central controller. The system controls the supply and exhaust fans to provide ventilation to the parkade when needed. See photo #MS07

Good 2009 CO sensors have a typical lifespan of 15 years and they require testing and re-calibration annually.

Renewal 3 5 15 10 1 N $3,000

63 D3070 Systems Testing and Balancing

CO Sensor Testing Testing of operation and calibration of CO sensors. Good 2009 CO sensor and fan testing and calibration is recommended yearly as part of regular maintenance.

Study 2 5 2 0 1 N $2,000

MECHANICAL SYSTEMS



page 5 of 6





Row

Recommended

Budget

in 2014 Dollars

Condition

Estimated

Remaining

Life


Actual or

Estimated

Year of

Acquisition

Age in

2014Type

Typical

Life Cycle

Include

Y/N

COMPONENT


Years Over

Which Project

is Phased


64 D305006 - Terminal and Package Units: Corridor Makeup Air Unit

Corridor Makeup Air Units

Building corridor pressurization and fresh air supply for each building is provided by an Engineered Air DJ20 indirect gas fired makeup air unit, one for each building. Each supplies 3200 CFM with 162 mbh gas heat input. The units are located on the roof. See photo #MS06.

Good 2009 Gas fired makeup air units located outdoors typically last 15-20 years. The first component to need replacing will likely be the burner/heat exchanger. The fan will probably require only an overhaul.

Renewal 3 5 20 15 1 Y $35,000

65 D3050 - Terminal and Package Units

Parkade - DX Cooling fan coil & Condenser

The main electrical room has a 6 ton capacity split-type DX cooling system. The evaporator fan is run continuously and the condenser cycles to maintain the room temperature at set point. See photo #MS08

Good 2009 Split DX system in a continuous application typically has a 15-20 year life span.

Renewal 3 5 15 10 1 Y $15,000


Parkade / Ventilation Fans

Approximately 20 in-line cabinet fans w/ fractional hp motors serve several rooms requiring exhaust ventilation. These include garbage room, elevator room, bicycle room, storage, TV cable room, elevator machine rooms, sub-electrical room.

Good 2009 Small cabinet fans have a typical life span of 12-15 years when run continuously.

Renewal 3 5 15 10 1 Y $13,000

67 D4010 Sprinklers Suppression System/ Throughout Building

Each unit contains a wet sprinkler system with plastic piping that is connected between suites at the ground level.

Good 2009 The plastic piping used in this system has a 10 year warranty and an expected lifespan of 20-25 years.

Renewal 3 5 25 20 1 Y $445,000

68 D4010 Sprinklers Suppression System /Throughout Building

Typical suite contains approximately 15 stainless steel sprinkler heads. Good 2009 Since the sprinkler heads are stainless steel, they have a longer life expectancy than the system piping, which is plastic, and would not need to be replaced along with the piping.

Renewal 3 5 35 30 1 Y $70,000

69 D4010 Sprinklers Sprinkler Valves & Trim

Sprinkler system valves and control trim, including two dry alarm valves, alarm flow switches, test assemblies and related equipment, all in good condition (photo #MS09) There is also a 6" dia. double check backflow preventer on the sprinkler main (photo #MS10).

Good 2009 These typically need to be overhauled every 20 years.

Renewal 3 5 20 15 4 Y $12,000

70 D3040 Air Distribution Systems

Dryer, Bathroom, Fresh Air Vents

Each unit has a dryer exhaust booster fan with time delay controller (typical example photo #MS11) Each bathroom has a ceiling exhaust fan.

Good 2009 These vents provide direction for the exhaust for the units and can become stained and worn over time. This can be included as part of an annual maintenance budget.

Renewal 4 5 20 15 1 N $1,000

71 ELECTRICAL SYSTEMS

72 D5010 - Electrical Service and Distribution

BC Hydro Service BC Hydro provides power to the building dedicated 1200kVA, 12.5kV - 600V step down transformer.

Good 2009 Maintenance, service and replacement by BC Hydro. No capital expenses anticipated.

Renewal 4 5 N


Complex Switch Gear

1200A, 600V, 3-phase, 4-wire main building switch gear, located in the main electrical room, is housing 1200A main breaker, 2x400A breakers for residential metering centers, 1x250A breaker for house loads and 2x400A breakers for the retail loads. Photo #ES01. Expenses are to be shared between commercial and residential part of the strata.

Good 2009 Replace switchgear and breakers. With proper maintenance may survive age of the buildings. Regular cleaning (every 5 years) and infrared scanning is recommended.

Renewal 4 5 30 25 1 Y $42,000


House Distribution/ Buildings A & B

House distribution system consists of 225kVA 600V-120/208V step down transformer, 800A, 120/208V, 3-phase, 4-wire house panel located in the main electrical room and miscellaneous panels located throughout the building.

Good 2009 Replace transformer and panels when required. With proper maintenance may survive age of the buildings. Regular cleaning (every 5 years) and infrared scanning is recommended.

Renewal 4 5 30 25 1 Y $32,000


Residential Distribution/ Buildings A & B

Residential distribution for buildings "A & B" are identical and consists of 300kVA 600V-120/208V step down transformer and 800A, 3-pole, disconnect switch.

Good 2009 Replace transformer and disconnect switch. With proper maintenance may survive age of the buildings. Regular cleaning (every 5 years) and infrared scanning is recommended.

Renewal 4 5 30 25 2 Y $32,000


Metering Centers Metering combo (el. meter + breaker) dedicated for each unit. Metering combos are combined into metering centers. Photo #ES02.

Good 2009 Replace metering combos (excluding electrical meters) when required.

Renewal 3 5 30 25 1 Y $19,000


Residential Load Centers

120/240V, 125A, 32 CCT load center. Good 2009 Replace load centers inside each apartment unit. Renewal 4 5 30 25 1 Y $47,000



page 6 of 6





Row

Recommended

Budget

in 2014 Dollars

Condition

Estimated

Remaining

Life


Actual or

Estimated

Year of

Acquisition

Age in

2014Type

Typical

Life Cycle

Include

Y/N

COMPONENT


Years Over

Which Project

is Phased


78 D5020 - Lighting and Branch Wiring

Lighting System / Buildings A & B

Majority of the lighting system consists of CFL (compact fluorescent light), halogen and fluorescent T8 fixtures.

Good 2009 Replace lighting fixtures at the end of the service life. Lighting technology changes and new type of energy efficient lighting appears on market. LED type lighting is becoming more and more affordable every year. We recommend performing of energy study before replacement.

Renewal 4 5 20 15 1 Y $32,000

79 D5030 - Communications and Security

Security System / Buildings A & B

Three cameras are installed throughout the complex with monitoring/recording equipment in the communication room.

Good 2009 Condition of equipment is good and may require periodic maintenance. As with most electronic equipment, its lifespan can be estimated to be approximately 15 years, as advances in technology will make the system obsolete and it will become difficult to source replacement parts.

Renewal 4 5 15 10 1 Y $6,000



Security enter panels are located at the main entrances of both buildings and at parkade level. Photos #ES03 & #ES04. Additionally secure areas entrances are controlled by FOBs.

Good 2009 Condition of enter panels is good and may require periodic maintenance. As with most electronic equipment, its lifespan can be estimated to be approximately 15 years, as advances in technology will make the system obsolete and it will become difficult to source replacement parts.

Renewal 4 5 15 10 1 Y $27,000


Telephone and TV Cable

Located in the communication room. Good 2009 Maintenance and replacement of the equipment by service provider. No capital expenses anticipated.

Renewal 4 5 N

82 D5040 - Other Electrical Systems

Fire Alarm Systems / Buildings A & B

Edwards fire alarm panel located in the electrical room and annunciator panels are in the lobby of each building. Photos #E05 & #E06. Expenses are to be shared between commercial and residential part of the strata.

Good 2009 Condition of fire alarm panel is good and may require periodic maintenance. As with most electronic equipment, its lifespan can be estimated to be approximately 15 years, as advances in technology will make the system obsolete and it will become difficult to source replacement parts.

Renewal 4 5 15 10 1 Y $27,000

83 ELEVATORS

84 D1010- Passenger Elevators

Code and Vandalism

Elevators are currently to code but code requirements are onerous and change regularly.

2009 Budget for code changes and general repairs for vandalism is recommended every 5 years.

Contingency 2 5 5 1 1 Y $11,000


Barrier-free Access /Car-2

The elevator Car-2 does not meet barrier-free access requirements. To conform following upgrade need to be provided: Tactile plates with floor designation on both jambs of each hall entrance, mounted at barrier-free access heights.

Not Applicable N/A While not mandatory to modify existing elevators, barrier-free upgrades are recommended.

Upgrade 4 N/A 99 2 1 N $1,000


New Cab Finishes The existing cab finishes are in average condition and show littleto no signs of wear.

Good 2009 It is recommended the cab upgrades be performed in the next 20 years mainly for aesthetic reasons.

Renewal 4 N/A 30 20 1 N $42,000


Handicap Lift Replacement

The handicap platform lift appears to be in acceptable condition, although the unit is presently not operational. Should the Owner choose to retain the unit for its intended purpose it is expected to remain operational and reliable for an approximate lifetime of 20 years, depending on use.

Good 2009 Due to the specialized nature of the platform lift, the entire unit would be replaced rather than modernized or upgraded.

Renewal 4 5 20 15 1 Y $84,000

88 OTHER PROFESSIONAL SERVICES

89 Depreciation Report Updates

Legislation requires updates every 3 years. Not Applicable 2014 Upgrade depreciation report. Study Not Applicable 0 3 3 1 Y $8,000

90 Miscellaneous Engineering Reviews

Periodic reviews of the building envelope and mechanical systems are prudent.

Not Applicable N/A Recommended at least a year prior to any major renewal and prior to the end of warranty terms. (10 year)

Study Not Applicable N/A 5 5 1 Y $6,000




APPENDIX D: Capital Plan and Funding Scenarios

page 1 of 5

Depreciation Report - Capital Plan

High Street- 2940 — 2950 King George Highway, Surrey, B.C.

FINAL - February , 2014

CAPITAL PLAN / RESERVE FUND EXPENDITURE FORECAST

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

$9,525 $11,000 $5,000 $8,000 $0 $123,000 $58,000 $15,000 $0 $18,000 $253,500 $43,500 $13,000 $10,000 $0 $366,000 $56,000 $18,000 $11,000 $10,000 $1,074,000 $29,000 $5,000 $10,000 $8,000 $790,500 $88,500 $23,000 $0 $10,000

1 STRUCTURE SYSTEMS2 A1010 Standard

Foundations-concrete

Parking An allowance is recommended to conduct periodic concrete repairs to the suspended slabs (including through-slab, top surface and soffit repairs), as well as isolated repairs to the column bases, perimeter walls and ramps.


Wood Framing The wood framing is expected to last the life of the building. No capital expenditures anticipated.


Concrete Structure The Concrete structure is expected to last the life of the building. No capital expenditures anticipated.


Guardrails with Glass Panels

Replace at end of expected service life.


Picket Railings Replace at end of expected service life. Those on podium are included in cost of podium membrane replacement.

7 PARKING GARAGE8 A1030 Slab on Grade Parkade P1 & P2 The slab on grade is expected to last the life of

the complex with regular maintenance. No anticipated capital expenditures.

9 B1010 Suspended Slabs

Traffic Coating (P1) Replace the traffic coating at end of expected service life.

$28,000

10 B1014 Ramps Replace ramp and membrane at end of service life.

$27,000

11 B1015 Exterior Stairs and Fire Escapes

Stairs likely to last the life of complex. Handrails and guardrails may require replacement.


Walls & Columns Repaint the walls and columns when required. $24,000 $24,000

13 B2034 Man Doors Exterior Fire Doors Likely last the life of the complex. No capital replacements anticipated.

14 B2034 Overhead Door-Metal

Security Gate/ Parking Entrances

Replacement including the operating system as well as the door itself.

$8,000

15 BUILDING ENVELOPE16 Replace Hardie cladding at the end of expected

service life.

17 Repaint Hardie cladding when required. $50,000 $50,000

18 B2010 Exterior Wall Construction- Masonry

Brick Cladding The brick masonry is expected to last the life of the building; however, localized repairing damaged bricks, repointing mortar is required.

$40,000

19 Re-seal the brick cladding as required. $12,000 $12,000 $12,000

20 B2010 Exterior Wall Construction- Concrete

Concrete Walls Repaint the exterior concrete walls when required.

21 B2011 Exterior Wall Construction- Liquid Coating

Eyebrows The traffic membrane has a lifespan of 12 to 15 years, after which it should be recoated including all associated work such as flashing replacement and joint sealing.

$18,000 $18,000

Row

B2010 Exterior Wall Construction-Metal

Hardie Panel, Lapped Siding

COMPONENT

ID Location / Type Recommendation

RECOMMENDATION



page 2 of 5





2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

$9,525 $11,000 $5,000 $8,000 $0 $123,000 $58,000 $15,000 $0 $18,000 $253,500 $43,500 $13,000 $10,000 $0 $366,000 $56,000 $18,000 $11,000 $10,000 $1,074,000 $29,000 $5,000 $10,000 $8,000 $790,500 $88,500 $23,000 $0 $10,000Row

COMPONENT


RECOMMENDATION

22 B2010 Exterior Wall Construction- Sealants

Windows, Doors Replace sealants at end of expected service life. Cost is included in respected components replacement.

23 B2011 Exterior Wall Construction- Flashings

Replace flashings at the same time as associated assembly replacement. The cost has been included in the respected components.

24 An allowance is recommended to replace failed IGU's, repair hardware of windows and slider doors after 10 years including slider units too. (Typically under warranty for first 10 years.)

$10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

25 Replace at end of service life.

26 B2030 Exterior Doors- Storefront

Entrance Replace at end of service life. Repair cost is included in window repair allowance.

27 B2030 Exterior Doors Sliding Doors Replace at end of expected service life.

28 B2030 Exterior Doors Balconies/ Roof decks & patios

Replace at end of expected service life. Repair cost is included in window repair allowance.

29 B3010 Soffit Cornice Recoat the cornices ideally in conjunction with repainting Hardie walls.

$24,000 $24,000

30 B3010 Soffit Vinyl Replace at end of expected service life.

31 ROOFING SYSTEMS32 B3010 Roof

Coverings Flat Roof Replacement at end of service life includes all

associated work such as flashing replacement and joint sealing.

$573,000

33 B3010 Roof Coverings- PMR

Roof Deck Patios Replacement at end of expected service life includes all associated work such as flashing replacement and joint sealing. Total cost includes removal and replacement of all overburden such as planter boxes and concrete blocks retaining walls. Assume reuse of insulation and pavers.

$227,000

34 B3010 Roof Coverings- Liquid Urethane

Balconies Replace membrane at end of service life. Cost includes surface preparation and over coating.

$61,000 $61,000 $61,000

35 B3010 Roof Covering Podium Replace waterproofing membrane at end of expected service life. Cost includes removal and replacement of all overburden.

36 INTERIOR FINISHES37 C1020 Interior Doors-

WoodSuites Entries Phased replacement as required.


Corridors Finishes Renew the finishes every 10 years. $39,000 $39,000 $39,000 $39,000 $39,000 $39,000


Corridors Finishes Replace carpets at end of expected service life. $22,500 $22,500 $22,500 $22,500


Lobby An allowance to renew finishes as needed. $21,000 $21,000


Gym An allowance to renew equipment and finishes as needed.

$5,000 $5,000 $5,000 $5,000 $5,000 $5,000


Amenity Room An allowance to renew equipment and finishes when required.

$5,000 $5,000 $5,000


Common Bathroom An allowance to renew finishes when required.

Vinyl WindowsB2020 Exterior Windows



page 3 of 5





2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

$9,525 $11,000 $5,000 $8,000 $0 $123,000 $58,000 $15,000 $0 $18,000 $253,500 $43,500 $13,000 $10,000 $0 $366,000 $56,000 $18,000 $11,000 $10,000 $1,074,000 $29,000 $5,000 $10,000 $8,000 $790,500 $88,500 $23,000 $0 $10,000Row

COMPONENT


RECOMMENDATION

44 SITE FEATURES45 G2040 Site

Development- Walkway and Sidewalk Paving

Walkways/ Courtyard

No capital expenses anticipated. Walkways on podium will be replaced in conjunction with podium membrane replacement.


Concrete Unit Entrance Steps

Expected to last the life of the complex with regular maintenance.


Wood Fences Replace fencing at end of expected service life.


Concrete Retaining Walls

The concrete retaining walls are expected to last the life of the building. An allowance to address localized repairs is recommended.


Aluminum Trellis Replace ideally in conjunction with podium membrane replacement.


Glazed Canopy Replace at end of service life.


Fabric Awning Replace at end of service life.

5253 D2020 Domestic

Water DistributionWater Entry Room Domestic Piping

The steel fire piping will likely last 40+ years; after which a small allowance for repairs and future anti-corrosion coatings is recommended.

54 D2020 - Domestic Water Distribution - Pipes and Fittings

DCW and DHW piping in the suites

The copper mains and the PEX piping have been sized to the velocities stated in the current Vancouver plumbing bylaw, and no significant leaks have been reported to date. Life expectancy is estimated at 35+ years.

55 D202003 - Domestic Water Distribution: DHW Storage


The laars copper fin boilers and the storage tanks have an average life expectancy of 15-20 years.

$35,000

56 D202003 - Domestic Water Distribution: Recirculation Pumps


Inline centrifugal pumps have a typical lifespan of 20 to 25 years. Recirculation pumps require regular maintenance

$3,000


Sanitary Drain Piping

Cast Iron pipes can last anywhere from 50 to 80 years. Expect replacement of individual compression fittings, at a cost below the threshold of this report, as they age.


Parking P2 Sanitary Drain Lift Station

These pumps are assumed to be original. Submersible pumps have a typical lifespan of 10 to15 years.


Storm Piping Cast Iron pipes can last anywhere from 50 to 80 years. Expect replacement of individual compression fittings, at a cost below the threshold of this report, as they age.


Parking P2 Storm Lift Station

The storm lift pumps are assumed to be original. Submersible pumps have a typical lifespan of 10 to15 years.

61 D3040 Distribution Systems

Parkade Fans Axial and propeller fans in parkades have a typical service life of 25 years. Price is for a complete overhaul.

$10,000

62 D3080 Other HVAC Equipment

CO Sensors CO sensors have a typical lifespan of 15 years and they require testing and re-calibration annually.

63 D3070 Systems Testing and Balancing

CO Sensor Testing CO sensor and fan testing and calibration is recommended yearly as part of regular maintenance.

64 D305006 - Terminal and Package Units: Corridor Makeup Air Unit

Corridor Makeup Air Units

Gas fired makeup air units located outdoors typically last 15-20 years. The first component to need replacing will likely be the burner/heat exchanger. The fan will probably require only an overhaul.

$35,000

MECHANICAL SYSTEMS



page 4 of 5





2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

$9,525 $11,000 $5,000 $8,000 $0 $123,000 $58,000 $15,000 $0 $18,000 $253,500 $43,500 $13,000 $10,000 $0 $366,000 $56,000 $18,000 $11,000 $10,000 $1,074,000 $29,000 $5,000 $10,000 $8,000 $790,500 $88,500 $23,000 $0 $10,000Row

COMPONENT


RECOMMENDATION


Parkade - DX Cooling fan coil & Condenser

Split DX system in a continuous application typically has a 15-20 year life span.

$15,000 $15,000


Parkade / Ventilation Fans

Small cabinet fans have a typical life span of 12-15 years when run continuously.

$13,000 $13,000

67 D4010 Sprinklers Suppression System/ Throughout Building

The plastic piping used in this system has a 10 year warranty and an expected lifespan of 20-25 years.

$445,000

68 D4010 Sprinklers Suppression System /Throughout Building

Since the sprinkler heads are stainless steel, they have a longer life expectancy than the system piping, which is plastic, and would not need to be replaced along with the piping.

69 D4010 Sprinklers Sprinkler Valves & Trim

These typically need to be overhauled every 20 years.

$3,000 $3,000 $3,000 $3,000

70 D3040 Air Distribution Systems

Dryer, Bathroom, Fresh Air Vents

These vents provide direction for the exhaust for the units and can become stained and worn over time. This can be included as part of an annual maintenance budget.

71 ELECTRICAL SYSTEMS72 D5010 - Electrical

Service and Distribution

BC Hydro Service Maintenance, service and replacement by BC Hydro. No capital expenses anticipated.


Complex Switch Gear

Replace switchgear and breakers. With proper maintenance may survive age of the buildings. Regular cleaning (every 5 years) and infrared scanning is recommended.

$42,000


House Distribution/ Buildings A & B

Replace transformer and panels when required. With proper maintenance may survive age of the buildings. Regular cleaning (every 5 years) and infrared scanning is recommended.

$32,000


Residential Distribution/ Buildings A & B

Replace transformer and disconnect switch. With proper maintenance may survive age of the buildings. Regular cleaning (every 5 years) and infrared scanning is recommended.

$16,000 $16,000


Metering Centers Replace metering combos (excluding electrical meters) when required.

$19,000


Residential Load Centers

Replace load centers inside each apartment unit. $47,000

78 D5020 - Lighting and Branch Wiring

Lighting System / Buildings A & B

Replace lighting fixtures at the end of the service life. Lighting technology changes and new type of energy efficient lighting appears on market. LED type lighting is becoming more and more affordable every year. We recommend performing of energy study before replacement.

$32,000



Condition of equipment is good and may require periodic maintenance. As with most electronic equipment, its lifespan can be estimated to be approximately 15 years, as advances in technology will make the system obsolete and it will become difficult to source replacement parts.

$6,000 $6,000



Condition of enter panels is good and may require periodic maintenance. As with most electronic equipment, its lifespan can be estimated to be approximately 15 years, as advances in technology will make the system obsolete and it will become difficult to source replacement parts.

$27,000 $27,000


Telephone and TV Cable

Maintenance and replacement of the equipment by service provider. No capital expenses anticipated.



page 5 of 5





2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

$9,525 $11,000 $5,000 $8,000 $0 $123,000 $58,000 $15,000 $0 $18,000 $253,500 $43,500 $13,000 $10,000 $0 $366,000 $56,000 $18,000 $11,000 $10,000 $1,074,000 $29,000 $5,000 $10,000 $8,000 $790,500 $88,500 $23,000 $0 $10,000Row

COMPONENT


RECOMMENDATION

82 D5040 - Other Electrical Systems

Fire Alarm Systems / Buildings A & B

Condition of fire alarm panel is good and may require periodic maintenance. As with most electronic equipment, its lifespan can be estimated to be approximately 15 years, as advances in technology will make the system obsolete and it will become difficult to source replacement parts.

$27,000 $27,000

83 ELEVATORS84 D1010- Passenger

ElevatorsCode and Vandalism

Budget for code changes and general repairs for vandalism is recommended every 5 years.

$11,000 $11,000 $11,000 $11,000 $11,000 $11,000


Barrier-free Access /Car-2

While not mandatory to modify existing elevators, barrier-free upgrades are recommended.


New Cab Finishes It is recommended the cab upgrades be performed in the next 20 years mainly for aesthetic reasons.


Handicap Lift Replacement

Due to the specialized nature of the platform lift, the entire unit would be replaced rather than modernized or upgraded.

$84,000

88 OTHER PROFESSIONAL SERVICES

89 Depreciation Report Updates

Upgrade depreciation report. $9,525 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000

90 Miscellaneous Engineering Reviews

Recommended at least a year prior to any major renewal and prior to the end of warranty terms. (10 year)

$6,000 $6,000 $6,000 $6,000 $6,000



Depreciation Report


Assumed Interest Rate 2.0%

Assumed Inflation Rate 2.0%

Reserve Fund Balance at Start of 2014 Fiscal Year $103,707

Present Annual Contribution to the Reserve Fund $24,870

Minimum Reserve Fund Balance $71,721

Year Ending

In

Opening Balance

Annual CRF Contribution

*

Percent Increase over

Previous Year

Other Contribution

**

Estimated Future Inflated Expenditures

***

Projected Interest Earned

Closing Balance

Average Contribution Per

Unit

2014 $103,707 $24,870 $9,525 $2,228 $121,280 $283

2015 $121,280 $25,367 2.0% $11,220 $2,567 $137,994 $288

2016 $137,994 $25,875 2.0% $5,202 $2,967 $161,633 $294

2017 $161,633 $26,392 2.0% $8,490 $3,412 $182,948 $300

2018 $182,948 $26,920 2.0% $0 $3,928 $213,796 $306

2019 $213,796 $27,458 2.0% $135,802 $3,192 $108,645 $312

2020 $108,645 $28,008 2.0% $65,317 $1,800 $73,135 $318

2021 $73,135 $28,568 2.0% $17,230 $1,576 $86,049 $325

2022 $86,049 $29,139 2.0% $0 $2,012 $117,200 $331

2023 $117,200 $29,722 2.0% $21,512 $2,426 $127,837 $338

2024 $127,837 $30,316 2.0% $230,000 $309,015 $0 $79,138 $2,958

2025 $79,138 $30,923 2.0% $20,000 $54,087 $1,351 $77,325 $579

2026 $77,325 $31,541 2.0% $16,487 $1,697 $94,076 $358

2027 $94,076 $32,172 2.0% $12,936 $2,074 $115,386 $366

2028 $115,386 $32,815 2.0% $0 $2,636 $150,837 $373

2029 $150,837 $33,472 2.0% $380,000 $492,588 $0 $71,721 $4,699

2030 $71,721 $34,141 2.0% $45,000 $76,876 $1,007 $74,993 $899

2031 $74,993 $34,824 2.0% $25,204 $1,596 $86,209 $396

2032 $86,209 $35,520 2.0% $15,711 $1,922 $107,941 $404

2033 $107,941 $36,231 2.0% $14,568 $2,375 $131,979 $412

2034 $131,979 $36,956 2.0% $1,500,000 $1,595,908 $0 $73,027 $17,465

2035 $73,027 $37,695 2.0% $5,000 $43,954 $1,398 $73,166 $485

2036 $73,166 $38,449 2.0% $7,730 $1,770 $105,655 $437

2037 $105,655 $39,217 2.0% $15,769 $2,348 $131,451 $446

2038 $131,451 $40,002 2.0% $12,867 $2,900 $161,485 $455

2039 $161,485 $40,802 2.0% $1,200,000 $1,296,899 $0 $105,388 $14,100

2040 $105,388 $41,618 2.0% $80,000 $148,098 $1,043 $79,952 $1,382

2041 $79,952 $42,450 2.0% $39,258 $1,631 $84,774 $482

2042 $84,774 $43,299 2.0% $0 $2,128 $130,202 $492

2043 $130,202 $44,165 2.0% $17,758 $2,868 $159,477 $502

TOTALS $1,008,928 $3,460,000

*** Expenditures are presented as future dollars (based on 2% inflation), and are considered Class D estimates (+/-50%)

30 Year Reserve Fund Cash Flow Table

Scenario 1 - FINAL - February , 2014Current Contribution (Fully Funded by Other Contributions)

** Total Other Contributions refers to other contributed amounts including special assessments or surplus funds transferred from other sources (i.e. operating budget or contingency fund).

* The term "annual contribution" refers to the amount contributed each year to the reserve fund from the monthly expenses.

Depreciation Report







Year Ending

In

Opening Balance


*


Previous Year

Other Contribution

**


***


Closing Balance


Unit

2014 $103,707 $24,870 $9,525 $2,228 $121,280 $283

2015 $121,280 $27,357 10.0% $11,220 $2,587 $140,004 $311

2016 $140,004 $30,093 10.0% $5,202 $3,049 $167,943 $342

2017 $167,943 $33,102 10.0% $8,490 $3,605 $196,161 $376

2018 $196,161 $36,412 10.0% $0 $4,287 $236,860 $414

2019 $236,860 $40,053 10.0% $135,802 $3,780 $144,891 $455

2020 $144,891 $44,059 10.0% $65,317 $2,685 $126,318 $501

2021 $126,318 $48,465 10.0% $17,230 $2,839 $160,391 $551

2022 $160,391 $53,311 10.0% $0 $3,741 $217,443 $606

2023 $217,443 $58,642 10.0% $21,512 $4,720 $259,293 $666

2024 $259,293 $64,506 10.0% $55,000 $309,015 $2,741 $72,525 $1,358

2025 $72,525 $70,957 10.0% $54,087 $1,619 $91,015 $806

2026 $91,015 $78,053 10.0% $16,487 $2,436 $155,016 $887

2027 $155,016 $85,858 10.0% $12,936 $3,830 $231,768 $976

2028 $231,768 $94,444 10.0% $0 $5,580 $331,791 $1,073

2029 $331,791 $103,888 10.0% $130,000 $492,588 $2,749 $75,841 $2,658

2030 $75,841 $114,277 10.0% $76,876 $1,891 $115,132 $1,299

2031 $115,132 $125,705 10.0% $25,204 $3,308 $218,940 $1,428

2032 $218,940 $138,275 10.0% $15,711 $5,604 $347,109 $1,571

2033 $347,109 $152,103 10.0% $14,568 $8,318 $492,961 $1,728

2034 $492,961 $167,313 10.0% $1,010,000 $1,595,908 $0 $74,367 $13,379

2035 $74,367 $184,044 10.0% $43,954 $2,888 $217,345 $2,091

2036 $217,345 $202,449 10.0% $7,730 $6,294 $418,358 $2,301

2037 $418,358 $222,694 10.0% $15,769 $10,436 $635,719 $2,531

2038 $635,719 $244,963 10.0% $12,867 $15,035 $882,849 $2,784

2039 $882,849 $269,459 10.0% $210,000 $1,296,899 $7,383 $72,792 $5,448

2040 $72,792 $296,405 10.0% $148,098 $2,939 $224,038 $3,368

2041 $224,038 $326,046 10.0% $39,258 $7,349 $518,174 $3,705

2042 $518,174 $358,650 10.0% $0 $13,950 $890,774 $4,076

2043 $890,774 $394,515 10.0% $17,758 $21,583 $1,289,114 $4,483

TOTALS $4,090,966 $1,405,000


Scenario 2 - FINAL - February , 2014

Gradual Contribution Increase + Other Contributions as Required




Depreciation Report







Year Ending

In

Opening Balance


*


Previous Year

Other Contribution

**


***


Closing Balance


Unit

2014 $103,707 $24,870 $9,525 $2,228 $121,280 $283

2015 $121,280 $31,088 25.0% $11,220 $2,624 $143,771 $353

2016 $143,771 $38,859 25.0% $5,202 $3,212 $180,641 $442

2017 $180,641 $48,574 25.0% $8,490 $4,014 $224,739 $552

2018 $224,739 $60,718 25.0% $0 $5,102 $290,559 $690

2019 $290,559 $75,897 25.0% $135,802 $5,212 $235,866 $862

2020 $235,866 $77,415 2.0% $65,317 $4,838 $252,802 $880

2021 $252,802 $78,963 2.0% $17,230 $5,673 $320,209 $897

2022 $320,209 $80,543 2.0% $0 $7,210 $407,961 $915

2023 $407,961 $82,154 2.0% $21,512 $8,766 $477,369 $934

2024 $477,369 $83,797 2.0% $309,015 $7,295 $259,445 $952

2025 $259,445 $85,473 2.0% $54,087 $5,503 $296,334 $971

2026 $296,334 $87,182 2.0% $16,487 $6,634 $373,662 $991

2027 $373,662 $88,926 2.0% $12,936 $8,233 $457,885 $1,011

2028 $457,885 $90,704 2.0% $0 $10,065 $558,654 $1,031

2029 $558,654 $92,518 2.0% $492,588 $7,172 $165,757 $1,051

2030 $165,757 $94,369 2.0% $76,876 $3,490 $186,740 $1,072

2031 $186,740 $96,256 2.0% $25,204 $4,445 $262,237 $1,094

2032 $262,237 $98,181 2.0% $15,711 $6,069 $350,777 $1,116

2033 $350,777 $100,145 2.0% $14,568 $7,871 $444,225 $1,138

2034 $444,225 $102,148 2.0% $1,130,000 $1,595,908 $0 $80,465 $14,002

2035 $80,465 $104,191 2.0% $43,954 $2,212 $142,913 $1,184

2036 $142,913 $106,274 2.0% $7,730 $3,844 $245,301 $1,208

2037 $245,301 $108,400 2.0% $15,769 $5,832 $343,764 $1,232

2038 $343,764 $110,568 2.0% $12,867 $7,852 $449,317 $1,256

2039 $449,317 $112,779 2.0% $810,000 $1,296,899 $0 $75,197 $10,486

2040 $75,197 $115,035 2.0% $35,000 $148,098 $1,173 $78,308 $1,705

2041 $78,308 $117,336 2.0% $39,258 $2,347 $158,732 $1,333

2042 $158,732 $119,682 2.0% $0 $4,371 $282,786 $1,360

2043 $282,786 $122,076 2.0% $17,758 $6,699 $393,802 $1,387

TOTALS $2,635,119 $1,975,000


Scenario 3 - FINAL - February , 2014Aggressive Contribution Increase + Other Contributions as Required




Depreciation Report


Current Fiscal Year 2014

From June 1, 2013 to May 31, 2014 Number of Units

88

Operating Budget $285,823

Minimum Balance $71,456 (25% of Operating)

Scenario 1

2014 2015 2016 2017


% Increase n/a 2.0% 2.0% 2.0%



Scenario 2

2014 2015 2016 2017


% Increase n/a 10.0% 10.0% 10.0%



Scenario 3

2014 2015 2016 2017


% Increase n/a 25.0% 25.0% 25.0%



Summary of Funding Scenarios


* Annual Reserve Contribution refers to the amount contributed each year to the reserve fund from the

monthly common expenses.

** Total Other Contributions refers to other contributed amounts including special assessments or surplus

funds transferred from other sources (i.e. operating budget or contingency fund).

This Scenario shows contribution increases due to inflation only. Projects are fully funded by Other

Contributions. The Reserve Fund Balance remains positive over the next thirty years, with a minimum balance

of approximately $71,721 in fiscal year 2029. For details, please see the 30 Year Reserve Fund Cash Flow

Table for Scenario 1.

This Scenario is based on the last approved funding plan.

This Scenario shows contribution increases of 10% per year, including inflation, for 29 years. Other

contributions are included as required. The Reserve Fund Balance remains positive over the next thirty years,

with a minimum balance of approximately $72,525 in fiscal year 2024. For details, please see the 30 Year

Reserve Fund Cash Flow Table for Scenario 2.

This Scenario shows contribution increases of 25% per year, including inflation, for the first 5 years, followed

by increases due to inflation only thereafter. Other contributions are included as required.The Reserve Fund

Balance remains positive over the next thirty years, with a minimum balance of approximately $75,197 in fiscal

year 2039. For details, please see the 30 Year Reserve Fund Cash Flow Table for Scenario 3.


APPENDIX E: General Depreciation Report Information


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DEPRECIATION REPORT GENERAL INFORMATION

Objectives

The objective of this study is to provide the Strata Council with sufficient information to enable you to:

a) Set up a schedule for the anticipated repair and replacement of common element items.

b) Set up a special account for major repair items and replacement of common elements and assets of the Corporation.

c) To determine the annual contributions necessary to maintain an adequate balance for the 30 year period of this study.

d) Satisfy the legislation regarding the Strata Property Act 1999 with Amendments July 1, 2000 and December 13, 2011 that requires a depreciation report be completed.

Limitations and Assumptions

This report is intended for the sole use of Strata Corporation BCS 3569, and must not be distributed or used by others without our knowledge (with the exception of disclosure to potential purchasers of BCS 3569). It is based on the documents and information provided to us and the findings at the time of our on-site investigation.

It is a basic assumption that any correspondence, material, data, evaluations and reports furnished by others are free of latent deficiencies or inaccuracies except for apparent variances discovered during the completion of this report.

Unless specifically noted in this report, no testing, verification of operation of systems, physical review of subsurface conditions or concealed systems and components, review of concealed elements, intrusive openings, opening of system components for internal inspection, detailed analysis or design calculations were conducted, nor were they within the scope of this review.

Some of the findings herein are based on a random sampling visual review of the surface conditions, discussions with the Strata Council and/or their designated representatives, and review of relevant documents. Observations were made only of those areas that were readily accessible during our review. Deficiencies existing but not recorded in this report were not apparent given the level of study undertaken. Components not included have not been reviewed, and if their conditions need to be known, further study will be required.

It is possible that unexpected conditions may be encountered at the building/facility that have not been explored within the scope of this report. Should such an event occur, MH should be notified in order that we may determine if modifications to our conclusions are necessary.

In issuing this report, MH does not assume any of the duties or liabilities of the designers, builders or owners of the subject property. Owners, prospective purchasers, tenants or others who use or rely on the contents of this report do so with the understanding as to the limitations of the documents reviewed and the general visual inspection undertaken, and


2

understand that MH cannot be held liable for damages they may suffer in respect to the purchase, ownership, or use of the subject property.

Professional judgment was exercised in gathering and analyzing the information obtained and in the formulation of the conclusions. Like all professional persons rendering advice, we do not act as insurers of the conclusions we reach, but we commit ourselves to care and competence in reaching those conclusions. No other warranties, either expressed or implied, are made.

Report Format

A description of the table contents and our approach to assigning ratings is described below:

COLUMN DESCRIPTION

Component ID The component number, as per the ASTM Uniformat II Classification for Building Elements (E1557-09)

Location / Type Where appropriate, we have provided a location or other modifier as needed to assist in identifying the specific component is provided. This may refer to an elevation, floor number, room, or material type.

Description & History A brief description of the component, deficiencies observed by MH (if any), and problems or previous repairs reported by site staff.

Condition Rating We have also provided an overall condition rating for each component, as follows:

Excellent Functioning as intended; as new condition.

Good Functioning as intended; limited (if any) deterioration observed.

Fair Function and operation exhibiting wear or minor deterioration, normal maintenance frequency.

Poor Function and operation failing; significant deterioration and distress observed; increased maintenance attention has been required.

NR Not Reviewed –applicable to concealed systems, such as buried services, or where access was not provided to MH to review a component

NA Not Applicable – applicable to Studies/Reports/Surveys.


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COLUMN DESCRIPTION

Year of Acquisition This is assigned based on available data from drawings or reports, readily accessible nameplate information on equipment, or interviews with site staff. Where the year is not known, MH provides an estimate based on observed condition. Year reflects the fiscal year in which the component was acquired, not necessarily the calendar year.

Recommendation Our recommended approach for reserve fund budgeting.

Type We have categorized the type of expense as follows:

Renewal Replace like with like (typically at end of service life), allowing for changing contemporary standards.

Repair For repairs, typically to extend the life of a component, restore functionality, or for partial replacements of isolated failures.

Contingency For repairs likely to be required where the timing and scope cannot be assessed without additional study; or where failure is unpredictable.

Study Further study is required to assign more accurate repair/replacement costs or timing for a Contingency item.

Upgrade Replace to a higher standard (more efficient, higher quality, etc). Our report may identify upgrades which we believe are worth exploring. In such cases, we have included 0% responsibility since we understand upgrades may not be funded out of the Reserve Fund, and the costs are not considered within the cash-flow.

New For new components added to the Depreciation Report, typically to reflect changing legislation.


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COLUMN DESCRIPTION

Priority A Priority Rating is provided to each Recommendation to assist you with budgeting of expenses, and to assess where deferral of an expense may be appropriate.

1. Immediate: items that require immediate repair or replacement because of either a code deficiency, legislative requirement or a safety concern

2. Restore Functionality: items that currently show signs of failure, requiring repair or replacement to restore functionality in the near future.

3. Future Renewal: items that will require future repair or replacement to maintain functionality (life cycle replacement). Most Reserve Fund Expenses will fall under this category.

4. Discretionary Renewal: items where the timing, scope of work and phasing is at the owner's discretion. This is typically limited to cosmetic issues.

Age in Current Fiscal Year The age at the time of the assessment. Where the exact age is unknown, MH provides an estimate based on observed condition.

Typical Lifecycle Standard lifespan, assuming normal maintenance, based on our experience and manufacturer’s recommendations. A piece of equipment may have a typical lifespan for complete replacement, as well as a typical lifespan for a recommended repair with a much shorter frequency.

A lifecycle of 99 shows a one-time project.

Remaining Life Expectancy

Remaining life of component and/or time to the next major repairs. Based on Age subtracted from Typical Lifespan, but confirmed and adjusted as needed depending on observed condition.

A negative value is used to show phased projects already partially complete.

Years Over Which Project is Phased

Normally projects are completed in one year. Larger projects may be phased over several consecutive years.

Percent Responsibility Our understanding of the Corporation’s responsibility for shared facilities.

Most common elements are budgeted for at 100%, but any exceptions are noted in this column.


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COLUMN DESCRIPTION

Recommended Budget This represents our opinion of probable cost, in current fiscal year dollars, including consulting services (design, tendering and construction review) and contingencies where we believe it is appropriate. The cost for these services can vary significantly depending on the size, scope and degree of complexity of the project. Applicable taxes are also included.

Opinions of probable cost are provided only as an indication of possible cost of remedial work. The repair or replacement costs are based on published construction cost data, recent bid prices on similar work, information provided by the owner, and our professional judgment. More precise opinions of probable cost would require more detailed investigation to define the scope of work.

The costs in this report are typically referred to as Class D estimates (±50%), defined by the Budget Guidelines for Consulting Engineering Services as: “A preliminary estimate which, due to little or no site information, indicates the approximate magnitude of cost of the proposed project, based on the client's broad requirements. This overall cost estimate may be derived from lump sum or unit costs for a similar project. It may be used in developing long term capital plans and for preliminary discussion of proposed capital projects.”

The opinions of probable cost we have presented can vary due to a number of reasons including changing market conditions, availability of newer materials and systems, and increased or decreased scope of work than we have identified.

All opinions of probable cost assume that regular annual maintenance and repairs will be performed to all elements at the facility.

We recommend that costs for consulting services, including design, tendering and construction review, be included in the reserve fund plan. The cost for these services can vary significantly depending on the size, scope and degree of complexity of the project. We have included a variable allowance for consulting fees and contingencies where we believe it is appropriate, and the 5 percent GST. All costs in the Condition Assessment and Capital Plan tables are identified in CURRENT FISCAL YEAR Canadian dollars.


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COLUMN DESCRIPTION

Capital Plan The tables show MH’s opinion of the probable cost to carry out the recommendations (in current fiscal year dollars) during the planning horizon. The repairs and replacements we have forecasted do not represent a fixed schedule for replacements; repairs or replacements may be required sooner or later than we have anticipated.

The Component Condition Assessment and Capital Plan Expenditure Forecast Table in Appendices C and D show MH’s opinion of the probable cost to carry out the recommendations (in current fiscal year dollars) during the depreciation planning period. The repairs and replacements we have forecasted do not represent a fixed schedule for replacements; repairs or replacements may be required sooner or later than we have anticipated.

Review of the Tables reveals several contingencies that occur in a single year of the study period. Though these repairs and replacements will not all take place in one year, and may not be required at all, it is prudent to budget for such repairs since failure of some components is unpredictable.

Financial Terms, Assumptions and Calculations

Inflation

The Government of Canada and the Bank of Canada inflation-control policy is aimed at keeping inflations at agreed to target values. At present the target range is 1 to 3 per cent, with the Bank's monetary policy aimed at keeping inflation at the 2 per cent target midpoint. This policy has continued to be renewed since implementation in 1991, and currently extends to December 31, 2016.

The total annual estimated expenditures are shown in the Capital Plan in current fiscal year dollars. The expenditures shown in the Cash Flow Table are inflated annually by the inflation percentage show.

In the startup questionnaire, MH requested confirmation of the inflation rate to be used over the course of the study. This may not be the actual current inflation rate, but is a reasonable estimate to begin the long term planning.

Interest

In the startup questionnaire, MH requested confirmation of the interest rate to be used over the course of the study. This may not be the actual rate of interest on the Corporation’s current investments, but is a reasonable estimate to begin the long term planning.

The interest earned on the Reserve Fund for each year is based on a Mid-Year Interest Calculation in accordance with generally accepted accounting practice. Over the 30-year period, the calculated interest is lower than calculating Simple Interest, therefore it is a more conservative method for calculating interest.


7

With the Mid-Year Interest Calculation, the interest earned on the Reserve Fund is calculated at the middle of the fiscal year assuming that half the expenses have been taken out of the Reserve Fund and half the annual contribution has been deposited into the Reserve Fund. Therefore, Interest is calculated as follows:

)22

(ributionAnnualContExpenses

lanceStartingBateInterestRaInterest +−×=

Starting Balance

MH requested information regarding the Reserve Fund balance at the start of the current fiscal year in the startup questionnaire. Where appropriate documents are provided, we confirm the opening balance against the financial statements. We assume the Strata Council confirms the starting balance is correct to the best of their knowledge prior to authorizing us to finalize the report.

Contributions

MH requested information regarding the present annual contribution to the Reserve Fund in the startup questionnaire. Where appropriate documents are provided, we confirm the contribution amount against the most recent Notice of Future Funding provided to the Owners. We assume the Strata Council confirms the current annual contribution is correct to the best of their knowledge prior to authorizing us to finalize the report.

Future annual contributions are calculated based on the estimates of life expectancy and opinions of probable cost, Minimum Reserve Fund Balance, and the assumptions for inflation and interest. Sample annual contributions that would result in an adequate Reserve Fund are indicated in the attached Cash Flow Scenarios.

When large expenses are anticipated in the near future and the existing Reserve Fund Balance is relatively low, increases to the annual contribution may not be sufficient. Increasing the annual contribution to an amount that can accommodate the major expenses is typically not considered a suitable funding plan since the Reserve Fund Balance often becomes relatively high for the remainder of the study period. Excess funds in a Reserve Fund cannot be used for any other purpose except for the major repairs and replacements for which they have been budgeted.

In such cases, Other Contributions are considered in the Cash-Flow Plan. These contributions can be in the form of special assessments or surplus funds that the Council has indicated will be available from other sources (i.e. transferred from operating budgets or contingency funds).

Minimum Reserve Fund Balance

MH requests information regarding the desired minimum balance in the startup questionnaire. We assume the Strata Council confirms the minimum balance of the approved scenario is acceptable even if it contradicts original directions provided in the completed questionnaire.

As a guideline, we recommend a minimum balance of 25% of the operating budget, as per Section 6.1 (a)(ii). (See below)


8

Requirements Under the Act

Contributions

The Annual Reserve Contribution for the first year of this study was provided by the Strata. Future annual contributions are calculated based on the estimates of life expectancy and opinions of probable cost, Minimum Reserve Fund Balance, and the assumptions for inflation and interest.

Contributions may be limited by the Strata Act as provided by Section 6.1, which indicates that the amount of the annual contribution to the contingency reserve fund must be determined as follows:

(a) if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is less than 25% of the total annual budgeted for the contribution to the operating fund for the fiscal year that has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the lesser of:

i. 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year; and

ii. The amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted for the contribution to the operating fund for the current fiscal year.

(b) if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general meeting is equal to or greater than 25% of the total annual budgeted for the contribution to the operating fund for the fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the Act.

Timing of Studies

The Depreciation Report is a dynamic document that will change over time as repairs/replacements are carried out on the common elements and interest/inflation rates change. The repairs and replacements we have forecasted do not represent a fixed schedule for replacements; repairs or replacements may be required sooner or later than we have anticipated. Similarly, the opinions of probable cost we have presented can vary due to a number of reasons including changing market conditions, availability of newer materials and systems, and increased or decreased scope of work than we have identified. As such, regular updates are necessary to re-assess your needs.

The Corporation is required to complete an update with site Inspection within three years of this study.


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Glossary of Building Terms

The following is a list of terms and abbreviations which may have been used in the report produced for the noted project. All of the terms and abbreviations used are standard within the industry, but the glossary may be of some aid for those not familiar with construction terms.

Air Barrier: An assembly of one or more materials, including joints, that prevents the continuous passage of air, and whatever it contains, between different environments under a difference of pressure.

Ampere (A): The unit of measurement of electric current. The greater the amperage, the larger the size of the conductor required to carry the current.

Annunciator Panel: A lighted panel that provides information about the location of an activated fire alarm in a building, typically located near the main entrance of a building.

Backflow Preventer: A device used in plumbing systems to prevent potentially contaminated water from moving back into the clean water supply.

Bitumen: The term covering numerous mixtures of hydrocarbons such as those found in asphalt and mineral pitch.

Built-Up Roof: Waterproof membrane constructed of multiple felt layers mopped down with bitumen.

Caulking: Material with widely different chemical compositions used to make a seam or joint air-tight or watertight.

CCTV: Closed Circuit Television, a video camera system that transmits video images to specific monitors as opposed to broadcasting the signal over air waves. Typically used in security applications.

CFM Cubic feet per minute, the common unit of air flow measurement.

Cladding: Any material that covers an interior or exterior wall.

Control Joint: Also Movement Joint, a continuous joint in a structure or element, used to regulate the amount of cracking and separation resulting from relative movement.

Condenser: A device used to remove heat from refrigerating equipment by circulating hot refrigerant gas through coils in the unit and blowing outdoor air across the coils with a fan. Cooling the gas causes it to condense back into a liquid.

Cooling Tower: A device used to cool condenser water in a chiller by evaporation. Condenser water is sprayed into the top of the cooling tower. The droplets fall through the tower as air is blown upward through the tower, partly evaporating the droplets, which cools the remaining water. Water leaving the cooling tower is typically 10 degrees cooler than when it entered.

Delamination: A separation along a plane parallel to a surface.

Direct expansion: A refrigeration method in which an air cooling coil contains refrigerant rather than a secondary coolant glycol or brine.


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Drip Edge: A projection detailed to direct water run-off away from the wall or window face below.

Efflorescence: Deposits of salt, usually white, due to the migration of salt-laden (in solution) water through concrete or masonry units.

EPDM: Synthetic rubber membrane usually applied in single-ply applications.

Exhaust Air: Air mechanically removed from a building to reduce the concentration of moisture, cooking odours and other contaminants from the building.

Fan Coil Unit: A device consisting of a fan and water coil that can heat an area by circulating hot water through the coil and cool by circulating chilled water through the coil.

Fire Detector: A fire alarm system component which senses the presence of a possible fire through the presence of smoke particles or heat (i.e. smoke detector, heat detector).

Flashing: A thin waterproof sheet material, flexible or rigid, used to direct water out of, or away from, the structure.

Glazing: A generic term for the transparent, or sometimes translucent, material in a window or door. Often, but not always, glass.

Glazing Bead: A molding or stop around the inside of a frame to hold the glass in place.

Glazing Unit: That part of a window which includes more than one glazing layer sealed around the outside edge to prevent air or moisture from entering the airspace and eliminating dirt and condensation between glazings.

Heat Exchanger: A device used to heat a fluid or gas with another fluid or gas without the two streams coming in direct contact with each other and mixing. For example a radiator heats air using hot water. The air and water circulate through the heat exchanger (the radiator) but do are prevented from coming in contact with each other by the radiator.

Heat Pump: A mechanical device designed to provide both winter heating and summer cooling.

HID: High Intensity Discharge, a generic term for mercury, vapour, metal halide and high pressure sodium light fixtures. Light in these fixtures is produces by an electric arc between two electrodes.

House Panelboard: A panelboard which supplies power to common area loads

Hydronic Heating: A means of heating a space through the use of hot water circulated through heating coils or a radiator in the space

Initiating Device: A fire alarm system component which initiates a fire alarm (i.e. pull station).

Inverted Roof: Where the roof membrane is located below the insulation and ballast (also Protected Membrane Roof).

Joist: One of several parallel, horizontal and relatively closely spaced concrete, wood or steel members directly supporting a floor or roof slab or deck.

kVA: Kilo-Volt-Ampere, the unit used to measure apparent power. This is what is charged by the utility.


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kW: Kilowatt, the unit used to measure real power. This is power that is actually used by the customer.

Lintel: A horizontal structural support above an opening in a wall.

Makeup Air: Fresh, outdoor air that is mechanically introduced to a building to make up for the air removed from buildings by exhaust systems.

Panelboard: A component of an electrical distribution system which divides an electrical power feed into subsidiary circuits, while providing a protective fuse or circuit breaker for each circuit all contained in a common enclosure.

Refractory: A ceramic insulating material used in boilers and similar equipment because it can withstand very high temperatures.

Retaining Wall: A wall constructed to hold back earth, water or other backfill.

Riser: Pipes or ductwork used to transport water, effluent, air or service cables vertically through a multi-storey building for distribution of services.

Roof Structural Deck: An elevated platform consisting of a variety of materials such as wood planks or metal pans, often supported by structural joists, beams and columns made of steel or wood, all structurally designed to support loads such as a roofing system.

Scaling: A degradation of the surface of a concrete element, consisting of local flaking or peeling away of the near-to-surface sand and cement portion of hardened concrete or mortar.

Sealant: A flexible material used on the inside (or outside) of a building to seal gaps in the building envelope in order to prevent uncontrolled air infiltration and exfiltration.

Sealed Units: Two pieces (lites) of glass sealed around the perimeter, increasing the thermal resistance of the window.

Shear Wall: A wall that resists horizontal forces applied in the plane of the wall, usually due to wind or seismic effects (also Flexural Wall).

Signaling Device: A fire alarm system component which visually or audibly alarms (i.e. bell, strobe).

Slab-on-Grade: A concrete floor slab placed directly on compacted fill and deriving its support from this fill (also Slab-on-Ground).

Spall: A fragment of concrete or masonry detached from a larger mass by a blow, weather action, internal pressure, or efflorescence within the mass (sub flourescence).

Stucco: A finish consisting of cement plaster, used for coating exterior building surfaces.

Switchboard: A board or panel equipped with apparatus for controlling the operation of a system of electric circuits.

Terminal Board: An insulating base on which terminals for wires or cables have been mounted

Thermographic Scanning: Also known as infra-red scanning. A photograph that detects hot spots of electrical equipment or temperature differences at building surfaces.


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Tuckpointing: Also Repointing, the process of removing deteriorated mortar from the joints of masonry and replacing it with new mortar.

Uninterruptible Power Supply: A power electronic device primarily used as a back-up power source for computers and computer networks to ensure on-going operation in the event of a power failure. Sophisticated units also have power conditioning and power monitoring features.

Vapour Barrier: A material or combination of materials having a high resistance to water vapour diffusion, used to separate a high water vapour pressure environment from a low water vapour pressure environment.

Vent: An opening placed in a facing wall or window assembly to promote circulation of air within a cavity behind the facing, usually to encourage drying of the cavity and/or to moderate the pressure across the facing.

Volt (V): A unit of potential energy equal to the potential difference between two points on a conductor carrying a current of 1 ampere.

VRLA Valve Regulated Lead-Acid, low maintenance batteries which use much less battery acid than traditional lead-acid batteries typically used in UPS applications.

Weather-strip A strip of material placed around an operating window or door to reduce air leaks.

Weephole: An opening placed in a wall or window assembly to permit the escape of liquid water from within the assembly. Weepholes can also act as vents.

Weeping Tiles: Drainage pipes placed at the base of foundation walls.

Window: A manufactured assembly of a frame, sash, glazing and necessary hardware, made to fit an opening in a wall.

• Window sill: horizontal member at the base of a window opening

• Window head: horizontal member at the top of a window opening

• Window jamb: either of the vertical members at the sides of a window opening

• Mullion: vertical member between glazed units

• Rail: horizontal member between glazed units

• Glazing: The glass portion of the window

• IGU: Insulated glazing unit. Double or triple panes of glass sealed together to provide insulation value. The still gas between the panes acts as the insulation.

• Condensation track: a channel at the interior sill level of the window intended to intercept small amounts of water condensing on the interior surface of the glass.


APPENDIX F: Photographs

High Street - Photos

Morrison Hershfield

1

SS01 SS02

SS03 SS04

SS05 PG01


Morrison Hershfield

2

PG02 PG03

PG04 PG05

BE01 BE02


Morrison Hershfield

3

BE03 BE04

BE05 BE06

BE07 BE08


Morrison Hershfield

4

BE09 RS01

RS02 RS03

RS04 IF01


Morrison Hershfield

5

IF02 IF03

IF04 IF05

IF06 IF07


Morrison Hershfield

6

SF01 SF02

SF03 SF04

SF05 SF06


Morrison Hershfield

7

SF07 MS01

MS02 MS03

MS04 MS05


Morrison Hershfield

8

MS06 MS07

MS08 MS09

MS10 ES01


Morrison Hershfield

9

ES02 ES03

ES04 ES05

ES06


APPENDIX G: Elevators

High Street 2940 & 2950 King George Blvd.

South Surrey, BC

Depreciation Study

218360 - V109282.docx Prepared by KJA Consultants Inc.

For Morrison Hershfield Limited Date of Inspection: August 27, 2013

KJA C o n s u l t a n t s I n c .

Table of Contents

1. INSPECTION SUMMARY ......................................................................................... 1

2. EQUIPMENT DESCRIPTION .................................................................................... 3

3. RECOMMENDED OR REQUIRED WORK ............................................................... 5

4. PHOTOS .................................................................................................................... 7


Depreciation Study page 1 High Street - 2940 & 2950 King George Blvd., South Surrey, BC

1. Inspection Summary On August 27, 2013, we performed a Depreciation Study of the vertical transportation equipment located at High Street (2940 & 2950 King George Blvd.) in South Surrey, BC. The purpose of the inspection was to review the condition of the major components and to provide recommendations for repairs, capital upgrades and potential modernization work. KJA did not inspect or test the safety features of the equipment and did not check the equipment for compliance with requirements of the regulating authorities. The elevating equipment inspected at High Street consists of two single machine room less (MRL) overhead gearless traction passenger elevators (one elevator located in each building) and a single handicap lift. The elevators were installed circa 2009 by KONE and are presently being maintained by KONE. The handicap lift was installed circa 2009 by Garaventa and is presently being maintained by Garaventa. We assume that the elevating devices are presently being maintained under the terms of a contractor prepared full service maintenance agreement. A typical contractor prepared agreement covers the replacement of major components in addition to the labour and materials necessary for ongoing repairs, adjustment and preventative maintenance work. Entrances and cab finishes are excluded. This contract may contain an obsolescence clause, which states that the contractor can forward costs for parts no longer available from usual sources to the Owner. While this wording is quite common (when the agreement is written by the contractor) the costs forwarded to the Owners can be unpredictable. We are assuming that repairs required due to accidents or “Acts of God” (flood, fires, etc) are covered by insurance. The maintenance logs located in the elevator controller closets indicate that the contractor is visiting the site on a monthly basis. Not all of the annual maintenance tasks as required by the B44.2-07 code have been signed as complete for 2013 and 2012. Tasks 4.2 (Testing of safeties) and 4.3 (Testing of governor) are not signed as complete. All overdue tasks should be addressed immediately. We were unable to access the pit for the handicap lift where the maintenance logs are stored. The rotating mechanical and electrical equipment in the hoistways and controller closets appears to be operating reasonably well with no vibrations or unusual noises noted. The overall cleanliness of the machine space is acceptable. The handicap lift was not operational during our inspection. The unit was several feet below the ground floor (upper) landing and unresponsive to the hall station buttons. Garaventa should be requested to correct the operation. While a complete maintenance inspection was not performed, we noted a number of maintenance related deficiencies that should be corrected by the maintenance providers as follows: [1/2] The in car phone operation should be checked. Pressing the “Help” button

would activate visual signals that indicate “call in progress” and “call received” but no dial tone or connection was made or heard. This is a safety concern.

[1/2] The arrival gongs are not operational;



[2] There is no audible alarm during nudging operation; [1] The floor passing tones are not functional; [1] Sections of the hoist rope appear to be rouging. The condition of the ropes should

be checked and replaced if necessary. Later in this report we have listed some other upgrades that may be considered or required over the next 30 years. Short of these items, we do not anticipate any immediate major problems that would require capital expenditures.



2. Equipment Description Elevators Number of elevators ............................................................................................... 2 Building designation ...................................................................................................... 1, 2 Installation number ........................................................................................ 25634, 25635 Usage ................................................................................................................. passenger Manufacturer ............................................................................................................. KONE Date installed ......................................................................................................circa 2009 Maintenance contractor ............................................................................................. KONE Capacity (lbs) .............................................................................................................. 2500 Floors served .......................................................................................... P2, P1, *G, 2 – 41 Contract speed (feet per minute) .................................................................................. 150 Governor tripping speed (feet per minute) ....................................................... 210 (KONE) Controller model ......................................................................................... KONE KCM831 Machine type ................................................................................................... KONE MX10 Motor type ................................................................................................. KONE 10 hp AC Drive method ............................................................................ traction (5 x 3/8” wire rope) Drive type ........................................................................................................ KONE VVVF Auxiliary brake........................................................................................ dual sheave brake Roping ratio ................................................................................................ 2:1, underslung Compensation ................................................................................................. not provided Door type................................................................................... single-speed side-opening Door operator ......................................................................................... KONE AMD linear Hall door interlock ............................................................................................ KONE AMD Door protection....................................................... infra-red multiple beam door detectors Door dimensions (w x h) ...................................................................................... 42” x 84” Cab dimensions (w x d x h) ....................................................................... 80” x 52” x 101”2 Car guide........................................................................................................ sliding shoes Counterweight guide ...................................................................................... sliding shoes Car operating panels ............................................................................................ main only Arrival signal..................................................................................................in car lanterns Car / Hall position indicator: ........................................................... digital / digital at floor G Communication ....................................................................................... hands free phone Firefighters' Emergency Operation ................................................ Phase I and II provided Emergency power ................................. Reynolds Powervator battery return unit provided Security .................................................................................. fob access readers provided Car door restrictor ................................................................................................. provided Hall door safety retainers ...................................................................................... provided

1 Elevators serve floor P2 through rear doors. 2 Height measurement is to the suspended ceiling. Height measurement to the car top is 105”.



Handicap Lift Number of elevators ............................................................................................... 1 Building designation ......................................................................................... handicap lift Installation number .................................................................................................... 25726 Usage ................................................................................................................. passenger Manufacturer ........................................................................................ Garaventa Genesis Date installed ......................................................................................................circa 2009 Maintenance contractor ...................................................................................... Garaventa Capacity (lbs) ................................................................................................................ 750 Floors served ............................................................................................... Street level, G Contract speed (feet per minute) .................................................................................... 50 Door dimensions ................................................................................................... 36” x 80” Cab dimensions ......................................................................... unable to access platform



3. Recommended or Required Work

The typical elevator “full maintenance” contract covers the replacement of major components in addition to the labour and materials necessary for ongoing repairs, adjustment and preventative maintenance work. Entrances, cab finishes and buried cylinders are normally excluded. As long as full maintenance is purchased the only additional costs to the Owner, during the first twenty to thirty years of use, should be for malicious damage and repairs to the elevator cabs and entrances. We are assuming that repairs required due to accidents or “Acts of God” (flood, fire, etc.) are covered by insurance. The costs noted are budget figures only, are based on the current market and are in present dollars. The actual costs may vary depending on the time of tendering, the actual detailed scope of work and market conditions. The figures listed below do not include work required by other trades in conjunction with the elevator work. A summary of potential required elevator upgrades and/or repairs outside of the scope of normal maintenance, as well as work that is recommended is as follows: Required Short Term Work (Years 1 - 5):

Code changes - Code requirements have become more onerous over the past decade and the interval between code changes has decreased. For that reason, we recommend budgeting funds at five year intervals to address code changes. Without being able to pinpoint these changes, it is reasonable to expect that they would require in the area of $3,000 per device every five years.

Vandalism - We recommend budgeting funds to repair vandalism - principally damage to exposed finishes and fixtures. No precise figure can be assigned since much depends on the location and environment but we suggest allowing a figure of $2,000 per unit every five years.

Required Mid Term Work (Years 6 - 15):

None Required Long Term Work (Years 16 - 30):

None Recommended Short Term Work (Years 1 - 5):

Barrier-free access upgrades: Car 2 - The elevating equipment does not meet barrier-free access requirements, as listed in the Safety Code for Elevators (B44 Appendix E). It should be noted that it is not currently mandatory to modify existing buildings to comply with barrier-free access requirements, although in some provincial jurisdictions (Ontario, for example) the building codes have incorporated



this requirement for new buildings. It is also probable that this requirement will be enforced for new buildings in other jurisdictions throughout Canada. To conform, the following would need to be provided:

Tactile plates with floor designation on both jambs of each hall entrance, mounted at barrier-free access heights (Car 2 only).

The cost of these upgrades would be in the area of $500 for elevator 2. This should be performed within the next two to three years.

Recommended Mid Term Work (Years 6 - 15):

None Recommended Long Term Work (Years 16 - 30):

New cab finishes - The existing cab finishes are in average condition and show little to no signs of wear. The cost to upgrade the cab finishes could range from $15,000 to $25,000, depending on the finishes selected. We recommend using a figure of $20,000. We suggest the cab upgrades be performed in the next 20 years mainly for aesthetic reasons. Handicap Lift Replacement - The handicap platform lift appears to be in acceptable condition, although the unit is presently not operational. Should the Owner choose to retain the unit for its intended purpose we would expect it to remain operational and reliable for an approximate lifetime of 20 years, depending on use. This type of device is often used, contrary to government regulations, for material transportation instead of the intended handicap use - this can substantially affect the life of the equipment. Due to the specialized nature of the platform lift, the entire unit would be replaced rather than modernized or upgraded. The estimated cost of the replacement would be in the range of $40,000 to $80,000.

Summary Table Description Car Years 1 to 5 Years 6 to 15 Years 16 to 30 Required Code changes All $9,000 $18,000 $27,000 Vandalism All $6,000 $12,000 $18,000 Recommended Barrier-free access upgrades

2 $500

New cab finishes 1,2 $40,000 Handicap Lift Replacement Lift $80,000



4. Photos

Figure 1 – Hoist Machine

Figure 2 – UPS Device for Emergency Power

Operation

Figure 3 – Elevator Controller Interface Device

Figure 4 – Elevator Controller



Figure 5 – Seismic Sensor in Hoistway

Figure 6 – Car Top

Figure 7 – Elevator Pit

Figure 8 – Hoist ropes for Car 2



Figure 9 – Elevator Car Panel

Figure 10 – Handicap Lift Platform

Figure 11 – Electrical Disconnect for Handicap lift

Documents

Depreciation Report High Street Strata Corporation BCS 3569 · Asal Souri of MH is a building science consultant experienced in the design, construction and assessment of wood framed