McCuaig & Associates-CRF Study (Oct 2011)

7/29/2019 McCuaig & Associates-CRF Study (Oct 2011)

1/57

CONTINGENCY RESERVE FUND

STUDY

VR 1047 - CHELSEA TERRACE1040 PACIFIC STREET, VANCOUVER, BRITISH COLUMBIA


2/57

TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................................... i

1.0 INTRODUCTION............................................................................................................... 1

2.0 METHODOLOGY.............................................................................................................. 3

2.1 HOW THIS CRF STUDY WAS CONDUCTED...................................................................... 3

2.2 MATERIAL LIFE EXPECTANCIES AND ASSOCIATED PRICING................................ 5

3.0 BUILDING COMPONENTS............................................................................................. 8

3.1 BUILDING ENVELOPE............................................................................................................. 83.2 GENERAL SITE ISSUES.......................................................................................................... 13

3.3 STRUCTURAL SYSTEMS ....................................................................................................... 14

3.4 MECHANICAL SYSTEMS ...................................................................................................... 17

3.5 SAFETY SYSTEMS................................................................................................................... 19

3.6 ELECTRICAL ............................................................................................................................ 20

4.0 FINANCIAL ANALYSIS................................................................................................. 21

4.1 BASE SCENARIO...................................................................................................................... 21

4.2 PROPOSED SCENARIOS 1 THROUGH 4 ............................................................................ 22

4.3 COMMENTS ON THE FOUR SCENARIOS......................................................................... 25

10.0 FINAL REMARKS......................................................................................................... 27

LIST OF APPENDICES


3/57

EXECUTIVE SUMMARY

McCuaig & Associates Engineering Ltd. (MAE) was retained by Strata Corporation VR 1047 to

undertake a review of the major construction components at Chelsea Terrace, with the intent to

provide a Contingency Reserve Fund Study, henceforth referred to as a CRF. The building is

located at 1040 Pacific Street in Vancouver, British Columbia.

A CRF study provides forecasted costs for the maintenance and renewal of all significant

existing building components of the building. In addition to this, the CRF presents a financial

study as to how the Strata will have to budget for these expenditures over the next 25 years.

Maintenance costs are the expected ongoing requirements to keep components operating as

intended. Renewal costs are those costs required when the components must be replaced, even if

adequate regular on-going maintenance has been carried out. Renewal costs are not intended to

provide upgrades to any building components unless the present requirements (codes or

technology) dictate that an upgrade is necessary. Otherwise all estimates for renewals assumes

replacing like for like.

Recommendations have been developed based on our assumption that the building should

provide approximately 50 more years of service life. The design service life of the building was

not indicated on any of the documentation reviewed by MAE. Industry standards, however,

consider a 50 to 100 year service life to be a reasonable expectation for a building of this type.

Overall, Chelsea Terrace is in good condition for a building of its age. The buildings equipment

and grounds have been maintained at standards that would be considered above average for a


4/57

solutions for the Strata to prepare for future expenditures. Some scenarios will likely be more

agreeable than others regarding collection of funds from the strata members.

Two basic assumptions made for this study include:

Inflation rate of 2 percent; Existing maintenance fees are approximately 30 percent below industry average for

comparable Stratas.

Scenario 1 proposes a modest and constant strata fee increase of 2 percent, which we have

assumed to equal inflation. This model produces numerous special assessments for The Strata

over a 25 year period, which in not desirable and may not be feasible.

Scenario 2 proposes a 5 percent increase in strata fees for 5 years and 2 percent thereafter. This

model slowly addresses the below average strata fees at Chelsea Terrace but does not reach the

30 percent increase until the 6th year. In addition to this, there are eight special assessments in

this model totaling 2.7 million dollars, which is still undesirable.

Scenario 3 proposes a 20 percent initial increase, 10 percent for the following 3 years, and 2.5

percent thereafter. This scenario fully addresses the below average strata fees in the second

year and also significantly reduces the number of special assessments and there total value.

There are four proposed special assessments in this model with a total value of 1.0 million

dollars. This proposal is balanced between strata fee increases and special assessment and is

our recommended strategy for the Strata.

Scenario 4 proposes an initial 25 percent increase to the fees with 10 percent annual increases for


5/57

1.0 INTRODUCTIONMAE was retained by Strata Corporation VR 1047 to conduct a Contingency Reserve Fund

Study at Chelsea Terrace, located at 1040 Pacific Street in Vancouver, BC.

Chelsea Terrace was constructed in a high-density residential neighborhood on a sloping lot.

The development is surrounded by mid and high-rise residential buildings and is approximately

one block north of the ocean. The building consists of 112 strata units, one amenities room, a

common laundry room, and an underground parking facility.

The building is nine stories high with parking on the first floor and a portion of the second floor.

Residential units start on the second floor and extend to the top floor. All units have access to

either private patios or balconies off their suites. Each unit is heated with individual electric

baseboard heating systems.

The building structure is constructed from cast-in-place concrete and steel supports. Concretewas used to build the structural support walls and the suspended slabs in the parking areas. The

above grade floors are supported by steel joists with a concrete topping. Concrete forms a large

portion of the exterior cladding of the building. At some locations, however, the exterior walls

are comprised of infill sections made from light-gauge steel stud framing with exterior sheathing

and stucco as the exterior cladding.

The windows and sliding doors in the building have double-glazing and date back to the original

construction.


6/57

involve a comprehensive review of all surface or components. Areas reviewed at Chelsea

Terrace included:

Building Envelope (roofs, exterior wall cladding, sealant, windows and doors, balconies,roof decks, plaza decks, exterior paint, and parking garage); General Site Issues (landscaping, exterior concrete ramps & stairs, and carpets/finishes in

common areas);

Structural System; Mechanical System (plumbing, drainage, and HVAC systems); Electrical System (fuse/breaker panels, switch/subpanels, and security lighting); Fire Safety System (fire notification systems, sprinkler system, and fire separation); and Elevator System.


7/57

2.0 METHODOLOGY

2.1 HOW THIS CRF STUDY WAS CONDUCTED

2.1.1. The Construction Drawings and relevant documents obtained from the City of Vancouverwere reviewed in order to become familiar with the project. The drawings that were

reviewed and are relevant to this report are described below:

Table 1 List of Construction Drawings

Consultant Document

Drawing

Drawings

Provided

Latest Issue

Date

Purpose of Issue

HaleArchitects

Architectural A1 to A24 December,1979

Proposal toMunicipality

Read JonesChristoffersenLtd.

Structural S8 and S9(other structuraldrawings were

not available)

November,1979

Issued for BuildingPermit

N/A Mechanical M1 to M10 N/A Issued for BuildingPermit

N/A Plumbing P1 to P10 N/A Issued for BuildingPermit

R. J. Wong &AssociatesLtd.

Electrical E1 and E2 N/A Issued for BuildingPermit

N/A Sprinkler SP1 to SP3 N/A Issued for BuildingPermit

It should be noted that all drawings were received in a compressed (smaller size) format


8/57

A copy of Common Area Carpet Cleaning Service invoice dated June 3, 2011 byCarpetex.

A copy of Annual Fire & Safety Inspection Deficiencies Quote dated August 17,2011 by Voltech Fire Protection.

A copy of Roof Replacement Contract dated July 31, 1997 by IGB Contracting Ltd. The Strata Corporations operating budget and financial statement provided by the

Property Management Company.

2.1.2. A Visual non-invasive review of a representative sample of building envelopecomponents was conducted. This includes reviews of various roofs, exterior face of

walls, balconies, plaza decks, and window assemblies.

2.1.3. A Visual non-invasive review of exposed structural components was completed. Thepurpose of this review was to evaluate the condition of the exposed structural

components that must provide acceptable service levels for the remaining life of thebuilding.

2.1.4. A Visual non-invasive review of general site conditions including; landscaping, exteriorramps & stairs and carpets/finishes of common areas.

2.1.5. A Visual non-invasive review of a representative sample of the buildings mechanical,electrical, fire safety and elevator systems.

2 1 6 An interview with the building manager Nick Dotsev to identify and discuss any areas


9/57

2.2 MATERIAL LIFE EXPECTANCIES AND ASSOCIATED PRICING

When developing a report of this type it is necessary to define the service life of the various

building components. The estimated service life of a component or material is determined

based on several variables including: quality of materials, quality of installation, historicalperformance, exposure conditions, manufacturers recommendations, and maintenance, servicing

or upkeep of the item.

It should be understood the design service lives discussed within this report are not a finite life.

In some cases the actual service life of a product or component could be shorter or longer than

the expected service life. Considering the host of variable that influence service life, it maybetter be described as a service life range.

Table 2 shows examples of building components with their Expected Service Life, a Range of

Expected Service Life and Factors Affecting Service Life.

Table 2 Expected Service Lives of Various Building Components

Item

Expected

Service Life

Range of

Expected

Service Life Factors Affecting Service Life

Roof membranes 20 years 17-25 years Type and quality of membraneQuality of installationSlope and drainage of the roofExposure to elements (wind, precipitation,

pollution, UV, etc.)Regular maintenance

Plaza deck

membranes

20 years 15-25 years Type and quality of membraneQuality of installation


10/57

Item

Expected

Service Life

Range of

Expected

Service Life Factors Affecting Service Life

Metal roofing 40 years 30-50 years Type and gauge of metal roofingQuality of protection coatingQuality of installation (i.e. Exposed vs. hidden

fastener systems, etc.)

Exposure to elements (winds, precipitation,pollution, UV, etc.)

Regular maintenanceExterior wall

sealant (caulking)

10 years 8-12 years Type and quality of sealantQuality of installationExposure to elements (wind, precipitation,

pollution, UV, etc.)

Regular maintenanceWindows and patio

doors

25 years 15-30 years Quality of windows and glazingQuality of installationMaterial of the window frame (metal, wood,

vinyl, etc.)

Type of glazing (single glazed, double glazed,Low E coating, etc.)

Type of operators (casement, awing, slider,etc.)

Exposure to elements (wind, precipitation,pollution, UV, etc.)

Regular maintenance

Opinions of probable costs allocated to maintenance or renewal items should not be consideredset costs. These values are established based on current market conditions and product

availability. The cost of construction materials and labour are influenced by many variables.


11/57

Given the volatility of construction prices, MAE assumes no responsibility for the future

accuracy of our projected estimated costs. Moreover, our opinion of remaining service life is

not guarantee that the components will not fail earlier than projected.

This study should be viewed as a dynamic process that necessitates regular review and updating

for both projected remaining service life and related costs. Items that are to be undertaken in

several years should be reviewed closer to the date of the work.

Should our services be requires, MAE is available to assist the Strata in obtaining quotations for

future maintenance or renewals work.


12/57

3.0 BUILDING COMPONENTS

3.1 BUILDING ENVELOPE

Descriptions of the various building envelope assemblies that are the subject of this report are

provided in this section. The descriptions provided in this report are based on the Construction

Drawings, our experience with similar buildings, and our visual reviews. There has been no

attempt to verify the presence of all the components described herein. For a detailed description

of building envelope components and their performance, refer to Building Envelope Condition

Assessment (BECA) report dated September 30, 2011 prepared by MAE.

Several components are nearing the end of their reasonably expected lifespan and such will need

replacement in the near future.

Envelope Items included in this section are as following:

Roofs; Exterior Wall Cladding; Sealants; Windows and Doors; Balconies, Roof Decks, and Plaza Decks; Parking Garage.

3.1.1 Roofs

There are two types of roofs on the site: low-slope roofs protected with 2-ply SBS membranes


13/57

over the spa room on the northeast corner of the building. Refer to Photo 2. These roofs should

be replaced as soon as possible with new rainwater drain system where required, and the

expected cost is approximately $45,000.

Photo 1 Main roof above ninth level. Photo 2 Lower tier roofs over the spa room

(concrete topping) and racket ball court.

The existing metal roofs appear to be in fair condition with no reported leaks. MAE is aware that

one of the pitched roofs has been replaced in the past two years. A visual review for any

damages to the panels, openings at standing seams, rust on paint finish and debris in perimeter

gutters on a regular basis will ensure the longevity of the metal roofing system.

It is our recommendation that The Strata should adopt a comprehensive roof maintenance

program for all roofing systems at Chelsea Terrace. A qualified roofing tradesman should review

the roofs annually and any required maintenance should be performed during the review. The

expected cost to implement this recommendation is $2 000 per year


14/57

the overall building including windows, doors, exterior cladding, guardrails, decks, and

balconies.

It is our knowledge that exterior paint had been applied to the exterior walls approximately fiveyears ago. Exterior paint and water repellent coatings help to protect the substrate surfaces from

the exterior elements and premature deterioration while providing an aesthetic appearance.

Properly applied exterior paint and water repellent coatings should last ten to fifteen years

depending on various factors such as the condition of substrate, type of paint, thickness applied

and exposure. The Strata should allow a budget of $120,000 within next five years to repaint and

recoat the exterior cladding and expect to re-apply every ten to fifteen years.

3.1.3 Sealants

An integral design element in a face sealed cladding system is the sealed joints at the material

interfaces. Sealing of the interfaces is a primary defense against thermal movements and

moisture ingress. A standard sealant application should be expected to last approximately seven

to ten years depending on the quality, application, exposure and joint movement.

The existing sealant at Chelsea Terrace has reached the end of its service life. Sealant loses its

flexibility and adhesion to the substrate as it ages. The exterior sealant should be removed and

replaced at all exterior locations including all window/door interfaces, cladding interfaces, and

flashing details within the next two years. The budget required for this is $50,000. The Strata

should expect to replace sealant every ten years.

3.1.4 Windows and Doors

The original windows and patio doors installed at Chelsea Terrace are metal frame, non-

h ll b k d bl l d h bl i d i f lid d i d


15/57

is our recommendation to investigate the skylights on the south elevation at the time of window

upgrade.

3.1.5 Balconies, Roof Decks, and Plaza Decks

a) Balconies

The balcony membranes at Chelsea Terrace have reached the end of their service life, assuming

an age of 30 years. The upper balconies, exposed to direct precipitation and sunlight, are

considered to be high-risk and therefore these membranes should be replaced as soon as possible.

Refer to Photo 3. The existing membranes at upper balconies and balconies at Suites 608 and

813 should be removed and replaced with a new SBS system including concrete pavers overtop.The exterior wall of balcony at Suite 813 also requires structural repairs due to the corroded steel

members. An estimated total cost of membrane replacement work is $55,000 and MAE

recommends this work take place as soon as possible.

The existing drainage system for the balconies directs water to balcony below. This system is

considered undesirable due to a high risk of water ingress problems. Refer to Photo 4. MAE

recommends that a new rainwater collection system be installed that does not drain water ontoother balconies. The new rainwater collection system will have to be implemented as soon as

feasible and the expected cost is $40,000.


16/57

deck membranes and, if warranted, replace them while other roof work is being completed. A

budget of $20,000 should be allocated to implement this recommendation.

c) Plaza Decks

The current plaza deck membranes at Chelsea Terrace appear to be nearing the end of their life

spans. Although no leaks were reported, MAE observed deterioration in membranes and signs of

repairs against the exterior walls during the review. Refer to Photos 5 and 6.

The Strata should replace the membranes and expect to allocate $225,000 for this work. In order

to minimize financial overload, The Strata may consider replacing the membranes over three

phases at approximately $75,000 per phase. It is recommended to commence this work within

three years and continue the remaining two phases one year apart.

Photo 5 Plaza deck membrane is delaminating

from the exterior wall.

Photo 6 Plaza deck drain exposed beneath paver.

The membrane is deteriorated and is no longer


17/57

prevent further concrete decay along with a textured no-slip surface. The application of traffic

coating will require a budget of $75,000.

Structural issues related to parkade walls and slabs are further discussed in Section 3.3 Structural Systems.

3.2 GENERAL SITE ISSUES

General site issues relate to the following items:

Landscaping; Exterior Concrete Walkway and Stairs; Carpets/Finishes in Common Areas.

3.2.1 Landscaping

A visual review of landscaping and drainage issues around the building was conducted. In

general, the shrubs and plants on all elevations have been well maintained. However, the trees onnorth elevation have grown outwards and now are touching the cladding of the building. Refer to

Photo 7. Trees that are too close to buildings restrict drying and may result in foundation cracks

and uplifts due to extending tree roots. Leaves of deciduous trees can clog gutters and drains.

We recommend the existing trees close to the north elevation be trimmed. The Strata should

allocate $5,000 annually for landscape related work.


18/57

3.2.2 Exterior Concrete Ramps & Stairs

The surfaces of the exterior concrete ramps and stairs at Chelsea Terrace appear to be worn down

due to prolonged exposure to exterior weather conditions and pedestrian traffic. Refer to Photo 8.

The worn down concrete surfaces might pose a slip hazard in the event of precipitation and icyweather. In addition, as concrete deteriorates over time, cracks develop and create a passageway

for water ingress that would further damage the concrete slabs. The Strata should consider

applying a traffic coating with a textured no-slip surface that is similar to what was installed on

the exterior of the parking garage entrance ramp at a cost of $5,000.

3.2.3 Carpets & Finishes in Common Areas

The carpets and finishes in the common areas of

Chelsea Terrace appear to be in fair condition. It

is our understanding that the carpets have been

replaced within last two to three years and The

Strata has carried out regular maintenance, such

as vacuuming and annual cleaning. The interior

walls were painted approximately two years ago

and are in good shape, except for few dents and

scratches observed on some hallway walls. Refer

to Photo 9. With a regular touch-up of damaged

areas, the paint should last for another ten years.

The Strata should expect to spend $1,200 for

continued annual maintenance and $50,000 oncarpet replacement and re-painting of the walls

in common areas every ten years.

Photo 9 Scratches and dents on interior wall

finish at main entry corridor.


19/57

3.3.1 Outdoor Retaining Walls

The outdoor retaining walls appear to have provided reasonable performance to date. Vertical

cracks were observed at several isolated locations. Dried efflorescence was observed at

approximately half of the vertical cracks. The efflorescence suggests that water has passedthrough the wall; however, since there was no evidence of delaminated concrete or corroded

rebar, we are of the opinion that the presence of the efflorescence is an aesthetic issue only.

Furthermore, we are of the opinion that, due to the orientation and thin width of the cracks, they

are not a cause for concern.

We did note one area on the south side of Level 2

where the bottom of the retaining wall was

inconsistent refer to Photo 10. It appears that this

section of wall was pinned back to the soil

sometime after its original construction. It appears

that the wall has provided acceptable performance

since the remedial work was completed.

The Strata should inspect the retaining walls

annually. Reviews should record excessive

movement, widening or propagation of additional

cracks, and evidence of delaminating concrete or

corroding steel. Should any of the aforementioned

occur, review by a professional should be

arranged.3.3.2 Parkade Walls

Photo 10 Inconsistent bottom of the retaining

wall.


20/57

3.3.3 Parkade Slabs

There are two types of slab within the parkade at Chelsea Terrace:

Slabs on grade that provide the traffic surface for Level 1 and the north half of Level 2. Suspended slabs that provide the traffic surface for the south half of Level 2 and for the

entire ceiling over Level 2 (the floor of Level 3).

a) Slabs on Grade

Except as noted below, the slabs on grade appear to have provided satisfactory performance to

date and there is no indication that, for the most part, maintenance or remedial work will be

required in the future.

The supporting soil beneath one area on the Level 2 slab appears to have heaved. The heaving

soil has caused the slab to crack refer to Photo 11. The difference in elevation of each side of

the crack may cause a tripping hazard. If the strata is concerned about this and structural

drawings cannot be obtained, The Strata should consult a professional to investigate thebuildings foundation system.


21/57

that, at most locations, the danger of partial structural collapse is minimal, given the observed

conditions at the time of our review.

Note that the exposed rebar at the underside of the access ramps appears to be main steel, thus

the structural degradation at the ramps is more serious than at other slab locations. For this

reason, it is recommended that steps be implemented to either repair the ramps or install

temporary structural support as soon as possible. The structural issue relating to the parkade

ramp is beyond the scope of this report and it will be dealt with independently.

3.4 MECHANICAL SYSTEMS

Some mechanical components have been recently upgraded. The expected life of these, however,

is such that even some of the new components will likely need replacement within 20 years.

These replacement costs have been considered in this study.

Mechanical components included in this review are as following:

Boiler; Heating; Domestic Water Pipes; Domestic Water Mains; Drainage Pipes; Elevators; DHW tanks; Valves/Pumps;


22/57

3.4.3 Domestic Water Pipes

The domestic water pipes in the building were replaced in 2003. The expected life of these pipes

is in the range of 20 years and as such, they should be replaced, approximately, in the year 2023.

The cost of this replacement would be in the range of $300,000.

3.4.4 Domestic Water Main

The domestic water main supply to the building is via an underground service pipe. This was not

replaced as part of the recent re-piping. Water mains have a reasonably long life, and the water

main at Chelsea Terrace will require replacement within the next 15 to 20 years at a cost of

$40,000.

3.4.5 Drainage Pipes

Given the materials, usage, and pressures involved, drainage pipes (sanitary and rain water) do

not require wholesale replacement as with domestic pipes. Ongoing maintenance, however, is

necessary, and we estimate an annual cost of $2,000 for this.

3.4.6 Elevators

The existing elevators are original equipment. It includes two cabs and uses mechanical relays

for operation. These relays have been maintained but will likely require wholesale replacement

within 20 years. Motors, ropes, and related equipment are also quite robust but will likely require

some form of overhaul within the next 20 years. Expected cost of the major work would be in the

range of $100,000. Annual service costs are in the range of $8,000.

3.4.7 Domestic Hot Water Tanks


23/57

3.5 SAFETY SYSTEMS

The safety systems in this building generally meet the requirements at the time it was built,

however they are likely below what would be required for a new residential building today.

It is our understanding that there are no outstanding orders from the Fire Marshals Office,

although there was a list of fire alarm repairs in the process of being carried out at the time of our

review.

During our review, the condition of the fire hoses in the hose cabinets seemed questionable, and

the ceiling installation around some of the fire gongs may interfere with their proper function.

We recommend that these items be reviewed by a qualified fire safety technician.

The Fire Marshals Office has a large degree of discretion as to what they can order and it is

difficult to predict what orders may be made in the future. It is reasonable, however, to assume

that the Strata would voluntarily undertake reasonable upgrades to life safety equipment to

mitigate the possibility of a preventable injury or loss of life, especially if so requested by the

Fire Marshalls Office. Given this, it is our opinion that it is not unreasonable to expect the Stratato upgrade some systems in the next 20 years (such as in-suite sprinklers), but there is no

requirement for this work at present.

The following areas are to be considered:

Smoke/Heat detectors; Alarm Panel Upgrade; Sprinklers;


24/57

3.5.3 Sprinklers

As stated above, it is unlikely that sprinklers will be mandated in the near future, but it is

possible that these could either be mandated or installed voluntarily within 20 years. The cost of

this work would be in the range of $300,000.

3.5.4 Fire Alarm Annual Reviews

Annual reviews of fire safety equipment are required by the City of Vancouver. This work will

cost in the range of $7,000 annually.

3.6 ELECTRICAL

Electrical components are in generally good condition and require little or no maintenance or

upgrades. The following areas are of note:

Switches/ Subpanels; Emergency Generator.

3.6.1 Switches/ Subpanels

The age of these is adequate to expect that replacement and repair would likely not be necessary

within the next 20 years.

3.6.2 Emergency Generator

The existing emergency generator provides adequate power for emergency lighting and (MAEassumes) the fire alarm. Monthly testing and required maintenance of the generator is

recommended, and this requires and annual cost of $7,000.


25/57

4.0 FINANCIAL ANALYSIS

Based on our review of Chelsea Terrace and our experience with similar buildings, we haveprepared a table of fixed annual revenue and expenses along with a financial forecast table of the

annual maintenance and renewals expenditures for the next 25 years. These tables will be

considered our base scenario and can be found in Appendix A.

When completing a reserve fund study the objective is to have the closing balance of this fund

remain positive at the end of each fiscal year. Over and above a positive balance, we consider it

reasonable for a Strata of this size to maintain a balance of $100,000 for any unforeseeable

emergency repairs.

The Property Manager provided MAE with The Stratas operating budget for 2011 and the

financial statements as of September 30th, 2011. The following information was gathered and

used as the basis of the financial analysis:

Contingency Reserve Fund General $136,612.90

Contingency Reserve Fund Elevator $ 57, 218.93

Total Contingency Reserve Fund $195,831.83

Present Annual Contribution to the CRF General $ 19,943.00

Present Annual Contribution to the CRF Elevator $ 14,908.88


26/57

one-time lump sum contributions to the CRF made by the owners to cover the costs of a

maintenance or renewal expenses.

The result of the above study confirms that there will be insufficient funds in the CRF to be able

to meet the anticipated maintenance and expenditures for the 25-year period. In fact, the CRF

balance falls into the negative amounts by year 2014 and continues to decline, refer to the graph

in Appendix A. In 10 years time the CRF balance is negative 1.8 million dollars and at the end

the 25-year study the balance is negative 6.0 million dollars.

The results of this base model show the inevitable shortcomings of the current CRF

contributions. This base model is taken as a literal translation from the above noted

maintenance and renewal issues discussed in Items 3.0 and should not be considered a proposed

option. This model shows a worst-case scenario for the Strata. The following Scenarios 1, 2,

3 and 4 apply analytical methods on increasing strata revenue along with a more practical

maintenance and renewals schedule, which allow for spreading out the inevitable maintenance

items into more feasible timelines.

4.2 PROPOSED SCENARIOS 1 THROUGH 4

For the proposed scenarios, a more reasonable approach is taken with the renewals schedule.

As the maintenance and renewals schedule is a dynamic document, we have the ability to adjust

such high cost items that all fall within a single scheduled year. This is true for year 5 (2016)

where the base model has approximately 1 million dollars on maintenance and renewals costs

including roof and window replacement. It is unlikely that a strata would perform such items in

the same year and now we can utilize the range of expected service life discussed in Item 2.2

above to make rational adjustments.


27/57

increase but has the highest number and value of special assessments. Scenarios 2 and 3

increase the strata fee contribution with a reduction in special assessments. Scenario 4

increases the strata fee to a level where no special assessments are required over the 25-year

term.

3.2.1 Scenario 1 2 percent Annual Increase in Strata Fees for the 25-Year Term

Scenario 1 has the smallest increase to the strata fees collected at Chelsea Terrace. We have

chosen a 2 percent fee increase to account for inflation, which is assumed to be 2 percent for the

duration of the study. The result this model creates is the need for multiple special assessments

throughout the 25-year period. Refer to Appendix C for the financial data in chart and

graphical form. A sample forecasted single unit strata fee is shown below using $175/month as

an assumed starting point.

Year Strata Fee

0 $175

1 $179

2 $182

3 $186

4 $189

5 $193

10 $213

By the 3rd year of the study the first special assessment is required. The value of this

assessment is $300,000. The second assessment comes in year 5 and is for $400,000. In total,

ten assessments are required over the study period ranging from $300,000 to $600,000. In this

case, annual revenue from the Strata is approximately 10.1 million dollars while the ten special

assessments total approximately 4 million for the 25-year term.


28/57

By the 3rd year of the study the first special assessment is required. The value of this

assessment is $300,000. The second assessment comes in year 5 and if for $400,000. In total,

eight assessments are required over the study period ranging from $200,000 to $400,000. In this

case, annual revenue from the Strata is approximately 11.4 million dollars while the ten special

assessments total approximately 2.7 million for the 25-year term.

4.2.3 Scenario 3 20 percent Initial Fee Increase, 5 percent Increase for 3 years and 2.5

percent Thereafter

Scenario 3 proposes an initial 20 percent increase to the strata fees. This initial increase helps

the strata fees at Chelsea Terrace to be in line with current market values for similar properties.

The following 3 years will have an increase of 5 percent per year with the remainder of the years

having a 2.5 percent annual increase, which is slightly above the assumed inflation rate of 2

percent. A sample forecasted single unit strata fee is shown below using $175/month as an

assumed starting point.

Year Strata Fee

0 $175

1 $210

2 $231

3 $254

4 $280

5 $286

10 $324

This model requires four special assessments during the study period with the first being in year3 for $300,000. The assessments range from $200,000 to $300,000. MAE believes the

number of assessment and the amount of each assessment to be reasonable given the forecasted


29/57

schedule at the 10, 15, and 20 year intervals. A sample forecasted single unit strata fee is shown

below using $175/month as an assumed starting point.

Year Strata Fee0 $175

1 $219

2 $241

3 $265

4 $291

5 $320

10 $352

As stated above, scenario four has been configured to eliminate the need for any special

assessments, according to the model, for the entire 25-year term. The strategy is to increase the

strata fees substantially for the first 6 years to accommodate all the forecasted maintenance and

renewal expenses. As this is a model, there is no guarantee that a special assessment will not be

required in the study period but one is not expected.

In this case, annual revenue from the Strata is approximately 14.3 million dollars and the special

assessments total is $0 for the 25-year term. Refer to Appendix F for the financial data in chart

and graphical form.

4.3 COMMENTS ON THE FOUR SCENARIOSIt is our opinion that the current strata fees at Chelsea Terrace are below average for the area.

MAE conducted a brief study of comparable buildings in the area and the results were other


30/57

Scenario 2 proposes a 5 percent increase in strata fees for 5 years and 2 percent thereafter. This

model slowly addresses the below average strata fees at Chelsea Terrace but does not bring reach

the 30 percent increase until the 6th year. In addition, there are eight special assessments in this

model totaling 2.7 million dollars, which may be undesirable.

Scenario 3 proposes a 20 percent initial increase, 10 percent for the following 3 years, and 2.5

percent thereafter. This scenario fully addresses the below average strata fees in the second

year and also significantly reduces the number of special assessments and there total value.

There are four proposed special assessments in this model with a total value of 1.0 million

dollars. This proposal is balanced between strata fee increases and special assessment. This is

the recommended strategy for the Strata.

Scenario 4 proposes an initial 25 percent increase to the fees with 10 percent annul increases for

the following 6 years. No increases are forecasted for the remaining years. This model

addresses the below average strata fees within 2 years and eliminates the need for special

assessments throughout the 25-year study period. Although this option is financially feasible it

may be undesirable to focus all fundraising on increased monthly fees.

The CRF study uses a financial model that has countless viable solutions. MAE has attempted

to provide sample solutions representing various options. The actual Strata Corporations

annual contributions to the CRF account must be established by the Strata Council and their

members. We suggest the Strata also consider conferring with their solicitor and/or accountant

to confirm this meets the requirements of the Strata.

MAE is available to go over the dynamic financial models with the council and/or property

manager.


31/57

5.0 FINAL REMARKS

It should be noted that reviews that are described in this report were limited to the areas andassemblies that are specifically noted in the report. Except where specifically noted, no testing or

dismantling of any assemblies was performed and reviews were made on a random basis with no

attempt to review or inspect every element or portion of the buildings. Our comments are not a

guarantee or warranty of any aspect of the condition of the buildings whatsoever.

This report was prepared by McCuaig & Associates Engineering Limited (MAE) for the account

of Strata Corporation VR 1047. MAE accepts no responsibility for damages, if any, suffered by

any third party as a result of decisions made or actions based on this report.

MAE has reviewed and assessed the contingency reserve fund requirements of the Strata

Coporation in accordance with MAEs proposal. It should be noted again that a CRF study is a

dynamic document that will change over time as maintenance and renewals are performed along

with fluctuations in market conditions and inflation. As such, regular review and updates to thisCRF study are necessary to re-assess the needs of the Strata.

We would be pleased to meet with The Strata to review this report and answer questions that

may exist. We trust this meets your requirements at this time, and should you have any questions

or concerns, please contact our office.

McCUAIG & ASSOCIATES ENGINEERING LTD.

Prepared by: Reviewed by:


32/57

APPENDIX A

BASE SCENARIO MAINTENANCE AND RENEWALS TABLE

AND FINANCIAL TABLE

Base Scenario of Annual Revenue and Expenses with 2% Inflation: Chelsea Terrace - 1040 Pacific Street, Vancouver, BC


33/57

October 2011 Page 1 of 3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

ITEM / ACTIVITY

REVENUE

Strata Fee

$267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735

Laundry Income

$17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000

Move In/Out Fee

$ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0 $ 1, 75 0

Parking Income

$29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880

Fobs/Keys/Remotes

$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500

Prior Years Surplus

$27,077

(E) TOTAL REVENUE $343,942 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865

(F) ACTUAL TOTAL

EXPENSES$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Administrative Expenses$77,000 $78,540 $80,111 $81,713 $83,347 $85,014 $86,715 $88,449 $90,218 $92,022 $93,863 $95,740 $97,655 $99,608 $101,600 $103,632 $105,704 $107,819 $109,975 $112,174 $114,418 $116,706 $119,040 $121,421 $123,850

Employee Expenses$32,424 $33,073 $33,734 $34,409 $35,097 $35,799 $36,515 $37,245 $37,990 $38,750 $39,525 $40,315 $41,122 $41,944 $42,783 $43,639 $44,511 $45,402 $46,310 $47,236 $48,181 $49,144 $50,127 $51,130 $52,152

Utilities$72,850 $74,307 $75,793 $77,309 $78,855 $80,432 $82,041 $83,682 $85,355 $87,062 $88,804 $90,580 $92,391 $94,239 $96,124 $98,047 $100,007 $102,008 $104,048 $106,129 $108,251 $110,416 $112,625 $114,877 $117,175

General Repair &

Maintenance $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,947 $46,866 $47,804 $48,760 $49,735 $50,730 $51,744 $52,779 $53,835 $54,911 $56,010 $57,130 $58,272 $59,438 $60,627 $61,839 $63,076 $64,337

Window Cleaning &

Maintenance $8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561 $9,752 $9,947 $10,146 $10,349 $10,556 $10,767 $10,982 $11,202 $11,426 $11,654 $11,888 $12,125 $12,368 $12,615 $12,867

Power Washing$ 3, 50 0 $ 3, 57 0 $ 3, 64 1 $ 3, 71 4 $ 3, 78 9 $ 3, 86 4 $ 3, 94 2 $ 4, 02 0 $ 4, 10 1 $ 4, 18 3 $ 4, 26 6 $ 4, 35 2 $ 4, 43 9 $ 4, 52 8 $ 4, 61 8 $ 4, 711 $ 4, 80 5 $ 4, 90 1 $ 4, 99 9 $ 5, 09 9 $ 5, 20 1 $ 5, 30 5 $ 5, 411 $ 5, 51 9 $ 5, 63 0

Landscaping Maintenance $ 5, 20 0 $ 5, 30 4 $ 5, 41 0 $ 5, 51 8 $ 5, 62 9 $ 5, 74 1 $ 5, 85 6 $ 5, 97 3 $ 6, 09 3 $ 6, 21 4 $ 6, 33 9 $ 6, 46 6 $ 6, 59 5 $ 6, 72 7 $ 6, 86 1 $ 6, 99 9 $ 7, 13 8 $ 7, 28 1 $ 7, 42 7 $ 7, 57 5 $ 7, 72 7 $ 7, 88 1 $ 8, 03 9 $ 8, 20 0 $ 8, 36 4

Irrigation

$750 $765 $780 $796 $812 $828 $845 $862 $879 $896 $914 $933 $951 $970 $990 $1,009 $1,030 $1,050 $1,071 $1,093 $1,114 $1,137 $1,159 $1,183 $1,206

NOTESEXISTING FIXED ANNUAL REVENUE & EXPENSES

Caretaker Wage

Electricity, Gas, Water &Sewer

an enance cos ncu escleaning and replacing failedunits. Expect maintenancecost to decrease oncewindows are u raded.

EXPENSES

Statutory Review of Books,Additional Services, BankCharges, Insurance, Office

Supplies, Telephone, & Misc.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

ITEM / ACTIVITYNOTES

EXISTING FIXED ANNUAL REVENUE & EXPENSES


34/57



Parking Lot Cleaning

$ 1, 00 0 $ 1, 02 0 $ 1, 04 0 $ 1, 06 1 $ 1, 08 2 $ 1, 10 4 $ 1, 12 6 $ 1, 14 9 $ 1, 17 2 $ 1, 19 5 $ 1, 21 9 $ 1, 24 3 $ 1, 26 8 $ 1, 29 4 $ 1, 31 9 $ 1, 34 6 $ 1, 37 3 $ 1, 40 0 $ 1, 42 8 $ 1, 45 7 $ 1, 48 6 $ 1, 51 6 $ 1, 54 6 $ 1, 57 7 $ 1, 60 8

Carpet Cleaning$ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Mechanical Repairs &

Maintenance $ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Plumbing Repairs &Maintenance $ 5, 00 0 $ 5, 10 0 $ 5, 20 2 $ 5, 30 6 $ 5, 41 2 $ 5, 52 0 $ 5, 63 1 $ 5, 74 3 $ 5, 85 8 $ 5, 97 5 $ 6, 09 5 $ 6, 21 7 $ 6, 34 1 $ 6, 46 8 $ 6, 59 7 $ 6, 72 9 $ 6, 86 4 $ 7, 00 1 $ 7, 14 1 $ 7, 28 4 $ 7, 43 0 $ 7, 57 8 $ 7, 73 0 $ 7, 88 4 $ 8, 04 2

Pool/Spa Chemicals &Maintenance $ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Elevator Inspection, Repair,

Maintenance & License $10,550 $10,761 $10,976 $11,196 $11,420 $11,648 $11,881 $12,119 $12,361 $12,608 $12,860 $13,118 $13,380 $13,648 $13,921 $14,199 $14,483 $14,773 $15,068 $15,369 $15,677 $15,990 $16,310 $16,636 $16,969

Fire Protection & Alarm

Monitoring $ 3, 96 5 $ 4, 04 4 $ 4, 12 5 $ 4, 20 8 $ 4, 29 2 $ 4, 37 8 $ 4, 46 5 $ 4, 55 5 $ 4, 64 6 $ 4, 73 9 $ 4, 83 3 $ 4, 93 0 $ 5, 02 9 $ 5, 12 9 $ 5, 23 2 $ 5, 33 6 $ 5, 44 3 $ 5, 55 2 $ 5, 66 3 $ 5, 77 6 $ 5, 89 2 $ 6, 01 0 $ 6, 13 0 $ 6, 25 2 $ 6, 37 7

Emergency GeneratorMonitoring $ 1, 20 0 $ 1, 22 4 $ 1, 24 8 $ 1, 27 3 $ 1, 29 9 $ 1, 32 5 $ 1, 35 1 $ 1, 37 8 $ 1, 40 6 $ 1, 43 4 $ 1, 46 3 $ 1, 49 2 $ 1, 52 2 $ 1, 55 2 $ 1, 58 3 $ 1, 61 5 $ 1, 64 7 $ 1, 68 0 $ 1, 71 4 $ 1, 74 8 $ 1, 78 3 $ 1, 81 9 $ 1, 85 5 $ 1, 89 2 $ 1, 93 0

Enterphone$ 97 5 $ 99 5 $ 1, 01 4 $ 1, 03 5 $ 1, 05 5 $ 1, 07 6 $ 1, 09 8 $ 1, 12 0 $ 1, 14 2 $ 1, 16 5 $ 1, 18 9 $ 1, 21 2 $ 1, 23 7 $ 1, 26 1 $ 1, 28 6 $ 1, 31 2 $ 1, 33 8 $ 1, 36 5 $ 1, 39 3 $ 1, 42 0 $ 1, 44 9 $ 1, 47 8 $ 1, 50 7 $ 1, 53 7 $ 1, 56 8

Security$ 1, 50 0 $ 1, 53 0 $ 1, 56 1 $ 1, 59 2 $ 1, 62 4 $ 1, 65 6 $ 1, 68 9 $ 1, 72 3 $ 1, 75 7 $ 1, 79 3 $ 1, 82 8 $ 1, 86 5 $ 1, 90 2 $ 1, 94 0 $ 1, 97 9 $ 2, 01 9 $ 2, 05 9 $ 2, 10 0 $ 2, 14 2 $ 2, 18 5 $ 2, 22 9 $ 2, 27 3 $ 2, 31 9 $ 2, 36 5 $ 2, 41 3

Lighting$500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 $634 $647 $660 $673 $686 $700 $714 $728 $743 $758 $773 $788 $804

Locks/Keys$ 1, 75 0 $ 1, 78 5 $ 1, 82 1 $ 1, 85 7 $ 1, 89 4 $ 1, 93 2 $ 1, 97 1 $ 2, 01 0 $ 2, 05 0 $ 2, 09 1 $ 2, 13 3 $ 2, 17 6 $ 2, 21 9 $ 2, 26 4 $ 2, 30 9 $ 2, 35 5 $ 2, 40 2 $ 2, 45 0 $ 2, 49 9 $ 2, 54 9 $ 2, 60 0 $ 2, 65 2 $ 2, 70 5 $ 2, 76 0 $ 2, 81 5

Pest Control$ 3, 50 0 $ 3, 57 0 $ 3, 64 1 $ 3, 71 4 $ 3, 78 9 $ 3, 86 4 $ 3, 94 2 $ 4, 02 0 $ 4, 10 1 $ 4, 18 3 $ 4, 26 6 $ 4, 35 2 $ 4, 43 9 $ 4, 52 8 $ 4, 61 8 $ 4, 711 $ 4, 80 5 $ 4, 90 1 $ 4, 99 9 $ 5, 09 9 $ 5, 20 1 $ 5, 30 5 $ 5, 411 $ 5, 51 9 $ 5, 63 0

Garbage Collection &

Recycling $12,950 $13,209 $13,473 $13,743 $14,017 $14,298 $14,584 $14,875 $15,173 $15,476 $15,786 $16,102 $16,424 $16,752 $17,087 $17,429 $17,778 $18,133 $18,496 $18,866 $19,243 $19,628 $20,020 $20,421 $20,829

Snow Removal$ 2, 50 0 $ 2, 55 0 $ 2, 60 1 $ 2, 65 3 $ 2, 70 6 $ 2, 76 0 $ 2, 81 5 $ 2, 87 2 $ 2, 92 9 $ 2, 98 8 $ 3, 04 7 $ 3, 10 8 $ 3, 17 1 $ 3, 23 4 $ 3, 29 9 $ 3, 36 5 $ 3, 43 2 $ 3, 50 1 $ 3, 57 1 $ 3, 64 2 $ 3, 71 5 $ 3, 78 9 $ 3, 86 5 $ 3, 94 2 $ 4, 02 1

Supplies$ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Elevator Upgrades$ 5, 00 0 $ 5, 10 0 $ 5, 20 2 $ 5, 30 6 $ 5, 41 2 $ 5, 52 0 $ 5, 63 1 $ 5, 74 3 $ 5, 85 8 $ 5, 97 5 $ 6, 09 5 $ 6, 21 7 $ 6, 34 1 $ 6, 46 8 $ 6, 59 7 $ 6, 72 9 $ 6, 86 4 $ 7, 00 1 $ 7, 14 1 $ 7, 28 4 $ 7, 43 0 $ 7, 57 8 $ 7, 73 0 $ 7, 88 4 $ 8, 04 2

Garage Door$ 3, 00 0 $ 3, 06 0 $ 3, 12 1 $ 3, 18 4 $ 3, 24 7 $ 3, 31 2 $ 3, 37 8 $ 3, 44 6 $ 3, 51 5 $ 3, 58 5 $ 3, 65 7 $ 3, 73 0 $ 3, 80 5 $ 3, 88 1 $ 3, 95 8 $ 4, 03 8 $ 4, 11 8 $ 4, 20 1 $ 4, 28 5 $ 4, 37 0 $ 4, 45 8 $ 4, 54 7 $ 4, 63 8 $ 4, 73 1 $ 4, 82 5

We understand that this workis being carried out monthly bythe building manager.

Contract

Wholesale replacementrequired within 20 years.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036




35/57


Ground Improvement$ 1, 50 0 $ 1, 53 0 $ 1, 56 1 $ 1, 59 2 $ 1, 62 4 $ 1, 65 6 $ 1, 68 9 $ 1, 72 3 $ 1, 75 7 $ 1, 79 3 $ 1, 82 8 $ 1, 86 5 $ 1, 90 2 $ 1, 94 0 $ 1, 97 9 $ 2, 01 9 $ 2, 05 9 $ 2, 10 0 $ 2, 14 2 $ 2, 18 5 $ 2, 22 9 $ 2, 27 3 $ 2, 31 9 $ 2, 36 5 $ 2, 41 3

Mechanical$ 4, 50 0 $ 4, 59 0 $ 4, 68 2 $ 4, 77 5 $ 4, 87 1 $ 4, 96 8 $ 5, 06 8 $ 5, 16 9 $ 5, 27 2 $ 5, 37 8 $ 5, 48 5 $ 5, 59 5 $ 5, 70 7 $ 5, 82 1 $ 5, 93 8 $ 6, 05 6 $ 6, 17 8 $ 6, 30 1 $ 6, 42 7 $ 6, 55 6 $ 6, 68 7 $ 6, 82 0 $ 6, 95 7 $ 7, 09 6 $ 7, 23 8

Fire Equipment$ 2, 25 0 $ 2, 29 5 $ 2, 34 1 $ 2, 38 8 $ 2, 43 5 $ 2, 48 4 $ 2, 53 4 $ 2, 58 5 $ 2, 63 6 $ 2, 68 9 $ 2, 74 3 $ 2, 79 8 $ 2, 85 4 $ 2, 911 $ 2, 96 9 $ 3, 02 8 $ 3, 08 9 $ 3, 15 1 $ 3, 21 4 $ 3, 27 8 $ 3, 34 3 $ 3, 41 0 $ 3, 47 8 $ 3, 54 8 $ 3, 61 9

(G) TOTAL EXPENSES $309,364 $315,551 $321,863 $328,300 $334,866 $341,563 $348,394 $355,362 $362,469 $369,719 $377,113 $384,655 $392,349 $400,196 $408,199 $416,363 $424,691 $433,185 $441,848 $450,685 $459,699 $468,893 $478,271 $487,836 $497,593

(H) ACTUAL TOTALEXPENSES

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Base Scenario of Yearly Maintenance / Renewals Expenditures for:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Chelsea Terrace - 1040 Pacific Street, Vancouver, BC


36/57


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

ITEM / ACTIVITY

$2,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $3,630 $3,740 $3,860 $3,980 $4,100 $4,230

SBS Roofing MembraneReplacement of Main Roofs $275,000

SBS Roofing MembraneReplacement of Lower Tier

Roofs

$45,000

Exterior Wall SealantReplacement $50,000 $70,000 $95,000

Windows / DoorsReplacement

$400,000

Balcony MembraneReplacement $55,000 $12,240 $12,490 $12,74 0 $13,000 $13,2 60 $13,530 $13,810 $1 4,090 $14,380 $14,670 $ 14,970 $15,270 $15,580 $15,90 0 $16,220 $1 6,550 $16,890 $17,230 $ 17,580 $17,940 $18,300 $18,67 0 $19,050 $1 9,440

New Rain Water CollectionSystem $40,000

Roof Deck Condition Review$2,000

Plaza Deck MembraneReplacement $ 75 ,0 00 $ 75 ,0 00 $ 75 ,0 00

$135,000 $180,000 $120,000

$5,000 $5,100 $5,210 $5,320 $5,430 $5,540 $5,660 $5,780 $5,900 $6,020 $6,150 $6,280 $6,410 $6,540 $6,680 $6,820 $6,960 $7,100 $7,250 $7,400 $7,550 $7,710 $7,870 $8,030 $8,200

$85,000 $150,000

$65,000 $85,000

Professional BuildingEnvelope Review $13,000 $15,000 $18,000 $20,000 $25,000

(A) Total Cost for BldgExterior & General Site

Issues per year

$1 07,000 $19,400 $271,830 $95,26 0 $918,700 $21,1 40 $21,610 $22,090 $2 2,570 $103,060 $23,560 $ 24,080 $94,600 $25,130 $223,69 0 $26,250 $2 6,820 $27,400 $28,000 $1 33,610 $29,230 $29,870 $275,52 0 $31,180 $17 6,870

(B) Actual Amount Spent for

Bldg Exterior & General SiteIssues

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Roofing Maintenance(Misc. maintenance and repairs

to membranes, drains andflashing)

Exterior Painting andWaterproofing Sealer

(Exterior Cladding)

NOTES

Old sealant must be removedto facilitate proper applicationof new sealant.

Review should be carried outby an RCABC approvedcontractor.

Roofing Maintenance shouldbe carried out by an RCABCapproved contractor

To replace with 2-ply SBSroofing membrane.


New rain water collectionsystem to collect water anddirect down to the ground.

Upper balcony membranes tobe replaced as soon aspossible. The rest of themembranes to be replaced asneeded on an annual basis.

RECOMMENDED ANNUAL MAINTENANCE/RENEWALS EXPENSES

Replace existing membranewith SBS membrane in threephases.

Exterior cladding to be paintedand sealed every 10 years.

Waterproofing of concreteslabs to be done every 20years.

Waterproofing ConcreteParkade Ramp, Pedestrian

Ramp and Stairs

Carpet Replacement &Interior Painting of Common

Areas

*Numbers in bold representwholesale replacement costs.

Carpet to be cleaned annually.Replacement of carpet andrepainting interior walls tooccur every 10 years.

Intermediate review may benecessary based on findings.

Annual Cleaning(Windows, Doors, ExteriorCladding, Glass Canopies,

Guardrails, Decks, & Patios)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036




37/57


Boiler Service &Replacement $20,000 $2,060 $2,110 $2,160 $2,210 $2,260 $2,310 $2,360 $2,410 $2,460 $2,510 $2,570 $2,630 $2,690 $2,750 $2,810 $2,870 $2,930 $2,990 $3,050 $3,120 $3,190 $3,260 $3,330 $3,400

Domestic Pipes Replacement$400,000

Water Mains Replacement$60,000

Drainage Pipes Maintenance$2,000 $2,040 $2,090 $2,140 $2,190 $2,240 $2,290 $2,340 $2,390 $2,440 $2,490 $2,540 $2,600 $2,660 $2,720 $2,780 $2,840 $2,900 $2,960 $3,020 $3,090 $3,160 $3,230 $3,300 $3,370

Elevator Replacement$175,000

DHW Tanks Replacement$20,000

Valves / PumpsRepair & Replacement $1,000 $1,020 $1,050 $1,080 $1,110 $1,140 $1,170 $1,200 $1,230 $1,260 $1,290 $1,320 $1,350 $1,380 $1,410 $1,440 $1,470 $1,500 $1,530 $1,570 $1,610 $1,650 $1,690 $1,730 $1,770

Alarm Panel Upgrade$85,000

Sprinklers$500,000

(C ) Total Cost forMech/Safety/Elec Systems

per year

$23,000 $5,120 $5,250 $5,380 $5,510 $5,640 $5,770 $5,900 $6,030 $6,160 $6,290 $426,430 $6,580 $6,730 $66,880 $7,030 $92,180 $7,330 $182,480 $7,640 $7,820 $508,000 $8,180 $8,360 $8,540

(D) Actual Amount Spent onMech/Safety/Elec Systems

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

PROJECTED TOTAL(A + C) per year

$ 13 0, 00 0 $ 24 ,5 20 $ 27 7, 08 0 $ 10 0,6 40 $ 92 4, 21 0 $ 26 ,7 80 $ 27 ,3 80 $ 27 ,9 90 $ 28 ,6 00 $ 10 9,2 20 $ 29 ,8 50 $ 45 0, 51 0 $ 10 1,1 80 $ 31 ,8 60 $ 29 0,5 70 $ 33 ,2 80 $ 11 9,0 00 $ 34 ,7 30 $ 21 0, 48 0 $ 14 1, 25 0 $ 37 ,0 50 $ 53 7, 87 0 $ 28 3, 70 0 $ 39 ,5 40 $ 18 5, 41 0ACTUAL TOTAL(B + D) per year

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

The preceding tables should be taken as an initial guideline only. Actual expenditure amounts should be input into the empty row provided below each item. The spreadsheet has been formatted in such a way that input data will be tallied for each year.

DHW tanks to be replacedevery 20 years.

Dependent on condition, maynot be necessary.


The Renewals Budget information provides an estimated service life and replacement cost for exterior materials and systems. The expected service life time frames are based on available manufacturers literature, warranties, and theoretical or historical industry standards. All systems and components aresubject to a wide variety of factors that affect their life expectancy including: weather exposure, quality of installation, quality of manufacture, and the quality of the ongoing maintenance program. As a result of these factors, systems and components demonstrate variations in their predicted service life, whilesome may out live the predicted life, others may not.

Estimates for future materials and labour costs are also subject to wide variations based on inflation, materials availability, and ultimately, final design decisions. While the preceding caveats must be taken in to consideration, planning for the in evitable replacement of materials is important, and should not beignored. The expected service life of products should be updated periodically based on ongoing maintenance reviews.

* Numbers in bold represent

wholesale replacement costs.

Dollar values are calculated using an assumed inflation rate of 2% per year for the 25 ye ar period.

Wholesale replacement

required within 20 years.

Boiler to be serviced annuallyand replaced every 20 years.

Domestic pipes were replacedin 2003 and to be replacedevery 20 years.

Water main pipes to beereplaced every 20 years.

BASE SCENARIO


38/57

$195,617

2%

1%

[ b - c ] [b - c - d + f] [a + g + h]

2012 $195,617 $316,865 $309,364 $130,000 $7,501 $0 -$122,499 $1,956 $75,074

2013 $75,074 $316,865 $315,551 $24,520 $1,313 $0 -$23,207 $751 $52,618

2014 $52,618 $316,865 $321,863 $277,080 -$4,998 $0 -$282,078 $526 -$228,934

2015 -$228,934 $316,865 $328,300 $100,640 -$11,435 $0 -$112,075 $0 -$341,009

2016 -$341,009 $316,865 $334,866 $924,210 -$18,001 $0 -$942,211 $0 -$1,283,220

2017 -$1,283,220 $316,865 $341,563 $26,780 -$24,698 $0 -$51,478 $0 -$1,334,698

2018 -$1,334,698 $316,865 $348,394 $27,380 -$31,530 $0 -$58,910 $0 -$1,393,607

2019 -$1,393,607 $316,865 $355,362 $27,990 -$38,497 $0 -$66,487 $0 -$1,460,095

2020 -$1,460,095 $316,865 $362,469 $28,600 -$45,605 $0 -$74,205 $0 -$1,534,300

2021 -$1,534,300 $316,865 $369,719 $109,220 -$52,854 $0 -$162,074 $0 -$1,696,374

2022 -$1,696,374 $316,865 $377,113 $29,850 -$60,248 $0 -$90,098 $0 -$1,786,472

2023 -$1,786,472 $316,865 $384,655 $450,510 -$67,791 $0 -$518,301 $0 -$2,304,773

2024 -$2,304,773 $316,865 $392,349 $101,180 -$75,484 $0 -$176,664 $0 -$2,481,437

2025 -$2,481,437 $316,865 $400,196 $31,860 -$83,331 $0 -$115,191 $0 -$2,596,6272026 -$2,596,627 $316,865 $408,199 $290,570 -$91,335 $0 -$381,905 $0 -$2,978,532

2027 -$2,978,532 $316,865 $416,363 $33,280 -$99,499 $0 -$132,779 $0 -$3,111,311

2028 -$3,111,311 $316,865 $424,691 $119,000 -$107,826 $0 -$226,826 $0 -$3,338,137

2029 -$3,338,137 $316,865 $433,185 $34,730 -$116,320 $0 -$151,050 $0 -$3,489,186

2030 -$3,489,186 $316,865 $441,848 $210,480 -$124,983 $0 -$335,463 $0 -$3,824,650

2031 -$3,824,650 $316,865 $450,685 $141,250 -$133,820 $0 -$275,070 $0 -$4,099,720

2032 -$4,099,720 $316,865 $459,699 $37,050 -$142,834 $0 -$179,884 $0 -$4,279,604

2033 -$4,279,604 $316,865 $468,893 $537,870 -$152,028 $0 -$689,898 $0 -$4,969,503

2034 -$4,969,503 $316,865 $478,271 $283,700 -$161,406 $0 -$445,106 $0 -$5,414,608

2035 -$5,414,608 $316,865 $487,836 $39,540 -$170,971 $0 -$210,511 $0 -$5,625,120

2036 -$5,625,120 $316,865 $497,593 $185,410 -$180,728 $0 -$366,138 $0 -$5,991,258

Year

BASE SCENARIO

(f)

Special

Assessment

(h)

Interest

Earned

(i)

Year End

Asset

(a)

Opening

Balance

(CRF for Bldg

+ Elevator)

(b)

Annual

Revenue

(Assumes no

increase)

(c )

Current

Annual

Expenses

(Assumes

annual

increase of

inflation)

(d)

Major

Expenses

Expected

(e)

Annual CRF

Contribution

(Assumes

annual

increase of

inflation)

(g)

Surplus/

Deficit

0% increase in strata fees

Total Asset as of Sept 30, 2011

Inflation

Interest Rate


39/57

!"#$%&

!"#$'&

!"#$(&

!"#$)&

!"#$#&

!"#$*&

!"*$+&

!"*$,&

!"*$-&

!"*$.&

!"*$%&

!"*$'&

!"*$(&

!"*$)&

!"*$#&

"*$*&

"*$#&

"*$)&

"*$(&

"*$'&

"*$%&

"*$.&

"*$-&

"*$,&

"*$+&

"#$*&

"#$#&

"#$)&

"#$(&

"#$'&

"#$%&

)*#)& )*#(& )*#'& )*#%& )*#.& )*#-& )*#,& )*#+& )*)*& )*)#& )*))& )*)(& )*)'& )*)%& )*).& )*)-& )*),& )*)+& )*(*& )*(#& )*()& )*((& )*('& )*(%& )*(.&

!"#$&!'(

)*+,,+"-.

/+01%&2134.%

53#1%671-34+"%3$%!81,#13%/144371%9%:14"%;-7413#1%+-%6$43$3%


40/57

APPENDIX B

PROPOSED MAINTENANCE AND RENEWALS TABLE AND

FINANCIAL TABLE FOR THE FOUR PROPOSED SCENARIOS

Yearly Forecasted Revenues and Expenses Assuming 2% Inflation for:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25



41/57


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

ITEM / ACTIVITY

REVENUE

Strata Fee$267,735 $273,089 $278,551 $284,122 $289,805 $295,601 $301,513 $307,543 $313,694 $319,968 $326,367 $332,895 $339,552 $346,344 $353,270 $360,336 $367,543 $374,893 $382,391 $390,039 $397,840 $405,797 $413,913 $422,191 $430,635

Laundry Income$17,000 $17,340 $17,687 $18,041 $18,401 $18,769 $19,145 $19,528 $19,918 $20,317 $20,723 $21,137 $21,560 $21,991 $22,431 $22,880 $23,337 $23,804 $24,280 $24,766 $25,261 $25,766 $26,282 $26,807 $27,343

Move In/Out Fee$ 1, 75 0 $ 1, 78 5 $ 1, 82 1 $ 1, 85 7 $ 1, 89 4 $ 1, 93 2 $ 1, 97 1 $ 2, 01 0 $ 2, 05 0 $ 2, 09 1 $ 2, 13 3 $ 2, 17 6 $ 2, 21 9 $ 2, 26 4 $ 2, 30 9 $ 2, 35 5 $ 2, 40 2 $ 2, 45 0 $ 2, 49 9 $ 2, 54 9 $ 2, 60 0 $ 2, 65 2 $ 2, 70 5 $ 2, 76 0 $ 2, 81 5

Parking Income$29,880 $30,478 $31,087 $31,709 $32,343 $32,990 $33,650 $34,323 $35,009 $35,709 $36,424 $37,152 $37,895 $38,653 $39,426 $40,215 $41,019 $41,839 $42,676 $43,530 $44,400 $45,288 $46,194 $47,118 $48,060

Fobs/Keys/Remotes$500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 $634 $647 $660 $673 $686 $700 $714 $728 $743 $758 $773 $788 $804

Prior Year's Surplus$27,077

(E) TOTAL REVENUE $343,942 $323,202 $329,666 $336,259 $342,985 $349,844 $356,841 $363,978 $371,258 $378,683 $386,256 $393,982 $401,861 $409,898 $418,096 $426,458 $434,987 $443,687 $452,561 $461,612 $470,844 $480,261 $489,867 $499,664 $509,657

(F) ACTUAL TOTALREVENUE

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Administrative Expenses$77,000 $78,540 $80,111 $81,713 $83,347 $85,014 $86,715 $88,449 $90,218 $92,022 $93,863 $95,740 $97,655 $99,608 $101,600 $103,632 $105,704 $107,819 $109,975 $112,174 $114,418 $116,706 $119,040 $121,421 $123,850

Employee Expenses$32,424 $33,073 $33,734 $34,409 $35,097 $35,799 $36,515 $37,245 $37,990 $38,750 $39,525 $40,315 $41,122 $41,944 $42,783 $43,639 $44,511 $45,402 $46,310 $47,236 $48,181 $49,144 $50,127 $51,130 $52,152

Utilities$72,850 $74,307 $75,793 $77,309 $78,855 $80,432 $82,041 $83,682 $85,355 $87,062 $88,804 $90,580 $92,391 $94,239 $96,124 $98,047 $100,007 $102,008 $104,048 $106,129 $108,251 $110,416 $112,625 $114,877 $117,175

General Repair &Maintenance $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,947 $46,866 $47,804 $48,760 $49,735 $50,730 $51,744 $52,779 $53,835 $54,911 $56,010 $57,130 $58,272 $59,438 $60,627 $61,839 $63,076 $64,337

Window Cleaning &Maintenance $8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561 $9,752 $9,947 $10,146 $10,349 $10,556 $10,767 $10,982 $11,202 $11,426 $11,654 $11,888 $12,125 $12,368 $12,615 $12,867

Power Washing$ 3, 50 0 $ 3, 57 0 $ 3, 64 1 $ 3, 71 4 $ 3, 78 9 $ 3, 86 4 $ 3, 94 2 $ 4, 02 0 $ 4, 10 1 $ 4, 18 3 $ 4, 26 6 $ 4, 35 2 $ 4, 43 9 $ 4, 52 8 $ 4, 61 8 $ 4, 711 $ 4, 80 5 $ 4, 90 1 $ 4, 99 9 $ 5, 09 9 $ 5, 20 1 $ 5, 30 5 $ 5, 411 $ 5, 51 9 $ 5, 63 0

Landscaping Maintenance $ 5, 20 0 $ 5, 30 4 $ 5, 41 0 $ 5, 51 8 $ 5, 62 9 $ 5, 74 1 $ 5, 85 6 $ 5, 97 3 $ 6, 09 3 $ 6, 21 4 $ 6, 33 9 $ 6, 46 6 $ 6, 59 5 $ 6, 72 7 $ 6, 86 1 $ 6, 99 9 $ 7, 13 8 $ 7, 28 1 $ 7, 42 7 $ 7, 57 5 $ 7, 72 7 $ 7, 88 1 $ 8, 03 9 $ 8, 20 0 $ 8, 36 4

Irrigation$750 $765 $780 $796 $812 $828 $845 $862 $879 $896 $914 $933 $951 $970 $990 $1,009 $1,030 $1,050 $1,071 $1,093 $1,114 $1,137 $1,159 $1,183 $1,206

EXPENSES

Statutory Review of Books,Additional Services, BankCharges, Insurance, OfficeSupplies, Telephone, & Misc.

NOTESEXISTING FIXED ANNUAL REVENUE & EXPENSES

Caretaker Wage

Electricity, Gas, Water &Sewer

an enance cos ncu escleaning and replacing failedunits. Expect maintenancecost to decrease oncewindows are upgraded.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036



ParkingLotCleaning


42/57


Parking Lot Cleaning$ 1, 00 0 $ 1, 02 0 $ 1, 04 0 $ 1, 06 1 $ 1, 08 2 $ 1, 10 4 $ 1, 12 6 $ 1, 14 9 $ 1, 17 2 $ 1, 19 5 $ 1, 21 9 $ 1, 24 3 $ 1, 26 8 $ 1, 29 4 $ 1, 31 9 $ 1, 34 6 $ 1, 37 3 $ 1, 40 0 $ 1, 42 8 $ 1, 45 7 $ 1, 48 6 $ 1, 51 6 $ 1, 54 6 $ 1, 57 7 $ 1, 60 8

Carpet Cleaning$ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Mechanical Repairs &Maintenance $ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Plumbing Repairs &Maintenance $ 5, 00 0 $ 5, 10 0 $ 5, 20 2 $ 5, 30 6 $ 5, 41 2 $ 5, 52 0 $ 5, 63 1 $ 5, 74 3 $ 5, 85 8 $ 5, 97 5 $ 6, 09 5 $ 6, 21 7 $ 6, 34 1 $ 6, 46 8 $ 6, 59 7 $ 6, 72 9 $ 6, 86 4 $ 7, 00 1 $ 7, 14 1 $ 7, 28 4 $ 7, 43 0 $ 7, 57 8 $ 7, 73 0 $ 7, 88 4 $ 8, 04 2

Pool/Spa Chemicals &Maintenance $ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Elevator Inspection, Repair,Maintenance & License $10,550 $10,761 $10,976 $11,196 $11,420 $11,648 $11,881 $12,119 $12,361 $12,608 $12,860 $13,118 $13,380 $13,648 $13,921 $14,199 $14,483 $14,773 $15,068 $15,369 $15,677 $15,990 $16,310 $16,636 $16,969

Fire Protection & AlarmMonitoring $ 3, 96 5 $ 4, 04 4 $ 4, 12 5 $ 4, 20 8 $ 4, 29 2 $ 4, 37 8 $ 4, 46 5 $ 4, 55 5 $ 4, 64 6 $ 4, 73 9 $ 4, 83 3 $ 4, 93 0 $ 5, 02 9 $ 5, 12 9 $ 5, 23 2 $ 5, 33 6 $ 5, 44 3 $ 5, 55 2 $ 5, 66 3 $ 5, 77 6 $ 5, 89 2 $ 6, 01 0 $ 6, 13 0 $ 6, 25 2 $ 6, 37 7

Emergency GeneratorMonitoring $ 1, 20 0 $ 1, 22 4 $ 1, 24 8 $ 1, 27 3 $ 1, 29 9 $ 1, 32 5 $ 1, 35 1 $ 1, 37 8 $ 1, 40 6 $ 1, 43 4 $ 1, 46 3 $ 1, 49 2 $ 1, 52 2 $ 1, 55 2 $ 1, 58 3 $ 1, 61 5 $ 1, 64 7 $ 1, 68 0 $ 1, 71 4 $ 1, 74 8 $ 1, 78 3 $ 1, 81 9 $ 1, 85 5 $ 1, 89 2 $ 1, 93 0

Enterphone$ 97 5 $ 99 5 $ 1, 01 4 $ 1, 03 5 $ 1, 05 5 $ 1, 07 6 $ 1, 09 8 $ 1, 12 0 $ 1, 14 2 $ 1, 16 5 $ 1, 18 9 $ 1, 21 2 $ 1, 23 7 $ 1, 26 1 $ 1, 28 6 $ 1, 31 2 $ 1, 33 8 $ 1, 36 5 $ 1, 39 3 $ 1, 42 0 $ 1, 44 9 $ 1, 47 8 $ 1, 50 7 $ 1, 53 7 $ 1, 56 8

Security$ 1, 50 0 $ 1, 53 0 $ 1, 56 1 $ 1, 59 2 $ 1, 62 4 $ 1, 65 6 $ 1, 68 9 $ 1, 72 3 $ 1, 75 7 $ 1, 79 3 $ 1, 82 8 $ 1, 86 5 $ 1, 90 2 $ 1, 94 0 $ 1, 97 9 $ 2, 01 9 $ 2, 05 9 $ 2, 10 0 $ 2, 14 2 $ 2, 18 5 $ 2, 22 9 $ 2, 27 3 $ 2, 31 9 $ 2, 36 5 $ 2, 41 3

Lighting$500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 $634 $647 $660 $673 $686 $700 $714 $728 $743 $758 $773 $788 $804

Locks/Keys$ 1, 75 0 $ 1, 78 5 $ 1, 82 1 $ 1, 85 7 $ 1, 89 4 $ 1, 93 2 $ 1, 97 1 $ 2, 01 0 $ 2, 05 0 $ 2, 09 1 $ 2, 13 3 $ 2, 17 6 $ 2, 21 9 $ 2, 26 4 $ 2, 30 9 $ 2, 35 5 $ 2, 40 2 $ 2, 45 0 $ 2, 49 9 $ 2, 54 9 $ 2, 60 0 $ 2, 65 2 $ 2, 70 5 $ 2, 76 0 $ 2, 81 5

Pest Control$ 3, 50 0 $ 3, 57 0 $ 3, 64 1 $ 3, 71 4 $ 3, 78 9 $ 3, 86 4 $ 3, 94 2 $ 4, 02 0 $ 4, 10 1 $ 4, 18 3 $ 4, 26 6 $ 4, 35 2 $ 4, 43 9 $ 4, 52 8 $ 4, 61 8 $ 4, 711 $ 4, 80 5 $ 4, 90 1 $ 4, 99 9 $ 5, 09 9 $ 5, 20 1 $ 5, 30 5 $ 5, 411 $ 5, 51 9 $ 5, 63 0

Garbage Collection &Recycling $12,950 $13,209 $13,473 $13,743 $14,017 $14,298 $14,584 $14,875 $15,173 $15,476 $15,786 $16,102 $16,424 $16,752 $17,087 $17,429 $17,778 $18,133 $18,496 $18,866 $19,243 $19,628 $20,020 $20,421 $20,829

Snow Removal$ 2, 50 0 $ 2, 55 0 $ 2, 60 1 $ 2, 65 3 $ 2, 70 6 $ 2, 76 0 $ 2, 81 5 $ 2, 87 2 $ 2, 92 9 $ 2, 98 8 $ 3, 04 7 $ 3, 10 8 $ 3, 17 1 $ 3, 23 4 $ 3, 29 9 $ 3, 36 5 $ 3, 43 2 $ 3, 50 1 $ 3, 57 1 $ 3, 64 2 $ 3, 71 5 $ 3, 78 9 $ 3, 86 5 $ 3, 94 2 $ 4, 02 1

Supplies$ 2, 00 0 $ 2, 04 0 $ 2, 08 1 $ 2, 12 2 $ 2, 16 5 $ 2, 20 8 $ 2, 25 2 $ 2, 29 7 $ 2, 34 3 $ 2, 39 0 $ 2, 43 8 $ 2, 48 7 $ 2, 53 6 $ 2, 58 7 $ 2, 63 9 $ 2, 69 2 $ 2, 74 6 $ 2, 80 0 $ 2, 85 6 $ 2, 91 4 $ 2, 97 2 $ 3, 03 1 $ 3, 09 2 $ 3, 15 4 $ 3, 21 7

Elevator Upgrades$ 5, 00 0 $ 5, 10 0 $ 5, 20 2 $ 5, 30 6 $ 5, 41 2 $ 5, 52 0 $ 5, 63 1 $ 5, 74 3 $ 5, 85 8 $ 5, 97 5 $ 6, 09 5 $ 6, 21 7 $ 6, 34 1 $ 6, 46 8 $ 6, 59 7 $ 6, 72 9 $ 6, 86 4 $ 7, 00 1 $ 7, 14 1 $ 7, 28 4 $ 7, 43 0 $ 7, 57 8 $ 7, 73 0 $ 7, 88 4 $ 8, 04 2

Garage Door$ 3, 00 0 $ 3, 06 0 $ 3, 12 1 $ 3, 18 4 $ 3, 24 7 $ 3, 31 2 $ 3, 37 8 $ 3, 44 6 $ 3, 51 5 $ 3, 58 5 $ 3, 65 7 $ 3, 73 0 $ 3, 80 5 $ 3, 88 1 $ 3, 95 8 $ 4, 03 8 $ 4, 11 8 $ 4, 20 1 $ 4, 28 5 $ 4, 37 0 $ 4, 45 8 $ 4, 54 7 $ 4, 63 8 $ 4, 73 1 $ 4, 82 5

Wholesale replacementrequired within 20 years.

Contract

We understand that this workis being carried out monthly bythe building manager.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036



GroundImprovement


43/57


Ground Improvement$ 1, 50 0 $ 1, 53 0 $ 1, 56 1 $ 1, 59 2 $ 1, 62 4 $ 1, 65 6 $ 1, 68 9 $ 1, 72 3 $ 1, 75 7 $ 1, 79 3 $ 1, 82 8 $ 1, 86 5 $ 1, 90 2 $ 1, 94 0 $ 1, 97 9 $ 2, 01 9 $ 2, 05 9 $ 2, 10 0 $ 2, 14 2 $ 2, 18 5 $ 2, 22 9 $ 2, 27 3 $ 2, 31 9 $ 2, 36 5 $ 2, 41 3

Mechanical$ 4, 50 0 $ 4, 59 0 $ 4, 68 2 $ 4, 77 5 $ 4, 87 1 $ 4, 96 8 $ 5, 06 8 $ 5, 16 9 $ 5, 27 2 $ 5, 37 8 $ 5, 48 5 $ 5, 59 5 $ 5, 70 7 $ 5, 82 1 $ 5, 93 8 $ 6, 05 6 $ 6, 17 8 $ 6, 30 1 $ 6, 42 7 $ 6, 55 6 $ 6, 68 7 $ 6, 82 0 $ 6, 95 7 $ 7, 09 6 $ 7, 23 8

Fire Equipment$ 2, 25 0 $ 2, 29 5 $ 2, 34 1 $ 2, 38 8 $ 2, 43 5 $ 2, 48 4 $ 2, 53 4 $ 2, 58 5 $ 2, 63 6 $ 2, 68 9 $ 2, 74 3 $ 2, 79 8 $ 2, 85 4 $ 2, 911 $ 2, 96 9 $ 3, 02 8 $ 3, 08 9 $ 3, 15 1 $ 3, 21 4 $ 3, 27 8 $ 3, 34 3 $ 3, 41 0 $ 3, 47 8 $ 3, 54 8 $ 3, 61 9

(G) TOTAL EXPENSES $309,364 $315,551 $321,863 $328,300 $334,866 $341,563 $348,394 $355,362 $362,469 $369,719 $377,113 $384,655 $392,349 $400,196 $408,199 $416,363 $424,691 $433,185 $441,848 $450,685 $459,699 $468,893 $478,271 $487,836 $497,593

(H) ACTUAL TOTALEXPENSES

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Adjusted Yearly Maintenance / Renewals Expenditures for:

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036


NOTES


44/57


2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036ITEM / ACTIVITY

$2,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $3,630 $3,740 $3,860 $3,980 $4,100 $4,230

SBS Roofing MembraneReplacement of Main Roofs $300,000

SBS Roofing MembraneReplacement of Lower Tier

Roofs

$45,000

Exterior Wall SealantReplacement $53,000 $70,000 $95,000

Windows / Doors

Replacement $150,000 $150,000 $150,000

Balcony MembraneReplacement $55,000 $12,360 $12,740 $13,13 0 $13,530 $13,9 40 $14,360 $14,800 $1 5,250 $15,710 $16,190 $ 16,680 $17,190 $17,710 $18,25 0 $18,800 $1 9,370 $19,960 $20,560 $ 21,180 $21,820 $22,480 $23,16 0 $23,860 $2 4,580

New Rain Water CollectionSystem $32,000

Roof Deck Condition Review$2,000

Plaza Deck MembraneReplacement $ 80 ,0 00 $ 82 ,0 00 $ 84 ,0 00

$135,000 $180,000 $120,000

$5,000 $5,150 $5,310 $5,470 $5,640 $5,810 $5,990 $6,170 $6,360 $6,560 $6,760 $6,970 $7,180 $7,400 $7,630 $7,860 $8,100 $8,350 $8,610 $8,870 $9,140 $9,420 $9,710 $10,010 $10,320

$85,000 $150,000

$65,000 $85,000

Professional BuildingEnvelope Review $13,000 $15,000 $18,000 $20,000 $25,000

(A) Total Cost for BldgExterior & General Site

Issues per year$ 10 7,0 00 $ 19 ,5 70 $ 27 2, 18 0 $ 10 2,8 00 $ 25 3, 44 0 $ 32 2,0 90 $ 22 ,7 70 $ 17 3, 47 0 $ 17 4,1 90 $ 25 4, 93 0 $ 25 ,6 90 $ 26 ,4 80 $ 97 ,2 90 $ 28 ,1 20 $ 22 6,9 90 $ 29 ,8 70 $ 30 ,7 80 $ 31 ,7 20 $ 32 ,6 90 $ 13 8,6 80 $ 34 ,7 00 $ 35 ,7 60 $ 28 1,8 50 $ 37 ,9 70 $ 18 4,1 30

(B) Actual Amount Spent for

Bldg Exterior & General SiteIssues

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Waterproofing of concreteslabs to be done every 20years.

Waterproofing ConcreteParkade Ramp, Pedestrian

Ramp and Stairs

Carpet Replacement &Interior Painting of Common

Areas

*Numbers in bold representwholesale replacement costs.

Carpet to be cleaned annually.Replacement of carpet andrepainting interior walls tooccur every 10 years.

Intermediate review may benecessary based on findings.

Annual Cleaning(Windows, Doors, ExteriorCladding, Glass Canopies,

Guardrails, Decks, & Patios)

Roofing Maintenance(Misc. maintenance and repairs

to membranes, drains andflashing)

Exterior Painting andWaterproofing Sealer

(Exterior Cladding)

NOTES

Old sealant must be removedto facilitate proper applicationof new sealant.

Review should be carried outby an RCABC approvedcontractor.

Roofing Maintenance shouldbe carried out by an RCABCapproved contractor



New rain water collectionsystem to collect water anddirect down to the ground.

Upper balcony membranes tobe replaced as soon aspossible. The rest of themembranes to be replaced asneeded on an annual basis.


Replace existing membranewith SBS membrane in threephases.

Exterior cladding to be painted

and sealed every 10 years.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 252012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036



Boiler Service &$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $


45/57


Replacement $20,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $35,000 $3,740 $3,860 $3,980 $4,100 $4,230

Domestic Pipes Replacement$200,000 $200,000

Water Mains Replacement$60,000

Drainage Pipes Maintenance$2,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $3,630 $3,740 $3,860 $3,980 $4,100 $4,230

Elevator Replacement$175,000

DHW Tanks Replacement$20,000

Valves / PumpsRepair & Replacement $1,000 $1,030 $1,070 $1,110 $1,150 $1,190 $1,230 $1,270 $1,310 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 $1,760 $1,820 $1,880 $1,940 $2,000 $2,060 $2,130 $2,200

Alarm Panel Upgrade$85,000

Sprinklers$250,000 $250,000

(C ) Total Cost forMech/Safety/Elec Systems

per year

$23,000 $5,150 $5,330 $5,510 $5,690 $5,870 $6,070 $6,270 $6,470 $6,670 $6,880 $227,110 $207,340 $7,570 $67,820 $8,070 $93,320 $8,580 $183,860 $40,510 $9,420 $259,720 $10,020 $260,330 $10,660

(D) Actual Amount Spent onMech/Safety/Elec Systems

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

PROJECTED TOTAL(A + C) per year

$130, 000 $24 ,720 $277, 510 $108, 310 $259, 130 $327, 960 $28 ,840 $179, 740 $180, 660 $261, 600 $32 ,570 $253, 590 $304, 630 $35 ,690 $294, 810 $37 ,940 $124, 100 $40 ,300 $216, 550 $179, 190 $44 ,120 $295, 480 $291, 870 $298, 300 $194, 790ACTUAL TOTAL(B + D) per year

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Wholesale replacement

required within 20 years.

Boiler to be serviced annuallyand replaced every 20 years.

Domestic pipes were replacedin 2003 and to be replacedevery 20 years.

Water main pipes to beereplaced every 20 years.

The preceding tables should be taken as an initial guideline only. Actual expenditure amounts should be input into the empty row provided below each item. The spreadsheet has been formatted in such a way that input data will be tallied for each year.

DHW tanks to be replacedevery 20 years.



The Renewals Budget information provides an estimated service life and replacement cost for exterior materials and systems. The expected service life time frames are based on available manufacturers literature, warranties, and theoretical or historical industry standards. All systems and components aresubject to a wide variety of factors that affect their life expectancy including: weather exposure, quality of installation, quality of manufacture, and the quality of the ongoing maintenance program. As a result of these factors, systems and components demonstrate variations in their predicted service life, whilesome may out live the predicted life, others may not.

Estimates for future materials and labour costs are also subject to wide variations based on inflation, materials availability, and ultimately, final design decisions. While the preceding caveats must be taken in to consideration, planning for the in evitable replacement of materials is important, and should not beignored. The expected service life of products should be updated periodically based on ongoing maintenance reviews.

* Numbers in bold represent

wholesale replacement costs.

Dollar values are calculated using an assumed inflation rate of 2% per year for the 25 ye ar period.


46/57

APPENDIX C

SCENARIO 1 FINANCIAL ANALYSIS TABLE

AND GRAPH

SCENARIO 1


47/57

$195,617 Fee Increases: 2.0%

2%

1%

[ b - c ] [b - c - d + f] [a + g + h]

2012 $195,617 $322,219 $309,364 $130,000 $12,855 $0 -$117,145 $1,956 $80,428

2013 $80,428 $327,681 $315,551 $24,720 $12,130 $0 -$12,590 $804 $68,643

2014 $68,643 $333,252 $321,863 $277,510 $11,390 $300,000 $33,880 $686 $103,209

2015 $103,209 $338,935 $328,300 $108,310 $10,635 $0 -$97,675 $1,032 $6,566

2016 $6,566 $344,731 $334,866 $259,130 $9,865 $600,000 $350,735 $66 $357,367

2017 $357,367 $350,643 $341,563 $327,960 $9,080 $0 -$318,880 $3,574 $42,060

2018 $42,060 $356,673 $348,394 $28,840 $8,279 $0 -$20,561 $421 $21,919

2019 $21,919 $362,824 $355,362 $179,740 $7,462 $350,000 $177,722 $219 $199,860

2020 $199,860 $369,098 $362,469 $180,660 $6,628 $0 -$174,032 $1,999 $27,827

2021 $27,827 $375,497 $369,719 $261,600 $5,778 $300,000 $44,178 $278 $72,284

2022 $72,284 $391,851 $377,113 $32,570 $14,737 $0 -$17,833 $723 $55,174

2023 $55,174 $398,508 $384,655 $253,590 $13,853 $550,000 $310,263 $552 $365,989

2024 $365,9

Documents

McCuaig & Associates-CRF Study (Oct 2011)