DEPRECIATION REPORT - The Classico Condominium · The purpose of a depreciation report is to help...

A Division of Niemi LaPorte & Dowle Appraisals Ltd.

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DEPRECIATION REPORT BCS 460—“Classico”

1328 - 1386 West Pender Street, 638 Broughton Street Vancouver, BC

2019

Specializing in Depreciation Reports

http://www.manitoba.reserveadvisors.ca/

NLD CONSULTING of 238 RESERVE FUND ADVISORS

October 16, 2019

The Owners, BCS 460—“Classico” c/o Korecki Real Estate Services Inc. 130 - 3751 Jacombs Road, Richmond, BC V6V 2R4 Dear Sir/Madam: Depreciation Report - BCS 460—“Classico” 1328 - 1386 West Pender St, 638 Broughton St, Vancouver, BC This depreciation report lists and describes the major reserve fund items. It provides current and future reserve expenditure estimates and recommends reserve fund actions. The depreciation report has been completed to the legislated requirements of the BC Strata Property Act as amended to date. This depreciation report is a complex document and should be reviewed in detail.

We recommend that a Reserve Fund plan be adopted with Reserve Fund contributions adjusted to $150,000 for the Strata (Joint) section, $160,000 for the Residential section, and $6,000 for the Commercial section in the year Sep 2020–Aug 2021, and further increased as per the recommendations in section 5.2, as well as consideration for the one-time crf transfers described on page 16. The rationale for these recommendations are that the funding models as recommended balance the risk of special levies with the necessity to increase crf contributions over time to limit this risk. Further details may be found in Appendix J. The legislation does not require the strata owners to follow any specific funding recommendation within this report. The Strata owners can choose their own funding plan, provided it meets the minimum legislated requirements. This recommended Reserve Fund Plan was created in consultation with the condominium representative(s) and does not necessarily reflect the consultant’s opinion as to the best course of action; the recommended plan outlines a funding path that is actionable and leads to improved outcomes for current and future owners.

NLD Consulting – Reserve Fund Advisors would be pleased to provide you with depreciation report updating services as required. The strata must waive the requirement to obtain a new report or obtain another report within three years as per Section 94 (2) (b) of the BC Strata Property Act and Section 6.2 (7) (a) of the BC Strata Property Regulation. We appreciate the opportunity to perform this report for you. If you have any questions, please do not hesitate to contact the undersigned.

Respectfully submitted, Michael LaPorte, CRP, PRA, AACI, P.App., RI NLD Consulting – Reserve Fund Advisors

http://www.reserveadvisors.ca/


File R-4270 BCS 460—“Classico” 2019


Copyright © 2019 NLD Consulting – Reserve Fund Advisors

All rights reserved. No part of this report shall be reproduced or used in any form by any means, graphic, electronic or mechanical, including photocopying, recording, typing or information storage and retrieval, without the written permission of the author, which must be done in conformity with PIPA (Personal Information Protection Act) and the Privacy Policy. For further information on the Act, contact the office of the Information & Privacy Commissioner for BC.

Notwithstanding the foregoing, the client herein has permission to reproduce the report in whole or in part for the legitimate purposes of providing information to the strata council, unit owners and others, who have an interest in the project.

No electronic copy should be relied upon unless digitally signed by the Author, with a valid certificate and no modifications after the certificate was applied.

If an electronic digitally signed copy is required for 3rd party use in conjunction with a Form B Information Certificate, the user is cautioned to request this copy directly from the author, in order to ensure the Depreciation Report is complete, current, and authentic.




TABLE OF CONTENTS

Executive Summary of Facts and Conclusions .............................................................................. 5 Certification..................................................................................................................................... 7 1. Report Overview ..................................................................................................................... 8

1.1. Purpose of the Report ....................................................................................................... 8 1.2. Methodology...................................................................................................................... 9

2. Property Information ........................................................................................................................... 10 2.1. Property Description Summary ....................................................................................... 10 2.2. Building Plans ................................................................................................................... 11 2.3. Property Data ................................................................................................................... 13 2.4. Sections ............................................................................................................................ 13 2.5. Development End of Life ................................................................................................. 13 2.6. Bylaws and Governing Documents Review ..................................................................... 14 2.7. Previous Depreciation Reports ........................................................................................ 15 2.8. Historical Financial Analysis ............................................................................................. 16

3. Component Details ................................................................................................................. 23 3.1. Component Descriptions ................................................................................................. 23 3.2. Life Cycle Analysis ............................................................................................................ 23 3.3. Current Cost Estimates .................................................................................................... 24

4. Economic Forecasting ............................................................................................................. 26 5. Funding Models ...................................................................................................................... 27

5.1. Benchmark Analysis ......................................................................................................... 27 5.2. 30-Year Reserve Fund Projection .................................................................................... 34 5.3. Cash Flow Analysis ........................................................................................................... 53 5.4. Deficiency Analysis........................................................................................................... 60

6. Recommendations ................................................................................................................. 63 Appendix A—Qualifications .......................................................................................................... 64 Appendix B—Assumptions and Limiting Conditions .................................................................... 68 Appendix C—Strata Property Act & Regulation Excerpt .............................................................. 72 Appendix D—Sections ................................................................................................................... 76 Appendix E—Reserve Component Descriptions and Analyses..................................................... 78 Appendix F—Construction Cost Inflation ................................................................................... 176 Appendix G—Interest Rates........................................................................................................ 181 Appendix H—Consumer Price Index (CPI) Inflation .................................................................... 187 Appendix I—Funding Future Components ................................................................................. 191 Appendix J—Alternate Funding Models ..................................................................................... 198 Appendix K—Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) ......... 226 Appendix L—Glossary ................................................................................................................. 230




Deficiency/Contribution Quotient Sep 2019–Aug 2020

DCQ = 23.9Strata (Joint) section 1.0Residential section 0.8Commercial section See Section 5.4 for details

Executive Summary of Facts and Conclusions This executive summary has been prepared as a quick reference of pertinent information and conclusions of this Depreciation Report. It is provided for convenience only. Readers are advised to refer to the full text of this report for complete information.

Client The Owners, BCS 460—“Classico” c/o Korecki Real Estate Services Inc. 130 - 3751 Jacombs Road Richmond, BC, V6V 2R4

Date of Study October 16, 2019 (Inspection Date: April 24, 2019)

Property BCS 460—“Classico” 1328 - 1386 West Pender Street, 638 Broughton Street Vancouver, BC, V6E 4T1 Constructed in 2003

FORECASTED RATES—see section 4 CPI Inflation 1.7% Cost Inflation 3.0% Interest Rate 2.7%

CURRENT FISCAL YEAR INFORMATION Current Fiscal Year Sep 2019–Aug 2020 Opening Balance $256,829—Strata (Joint); $1,289,375—Residential section; $81,084—Commercial section Reserve Contributions $103,218—Strata (Joint); $140,806—Residential section; $4,480—Commercial section Ideal Balance* $2,882,701 Funding Adequacy The annual contributions are adequate if increased per our recommendations. Reserve Expenditures See Section 5.2

Current YearSep 2019– Sep 2020– Sep 2021– Sep 2022–Aug 2020 Aug 2021 Aug 2022 Aug 2023

Contingency Reserve Fund Contributions 103,218$ 150,000$ 200,880$ 236,496$ Average Monthly Contribution per Owner‡ 41$ 59$ 79$ 93$

Three Year Plan—Strata (Joint)Recommendations†



Three Year Plan—ResidentialRecommendations†




* Caution: The ideal balance of the reserve fund is the amount recommended for each year of the reserve fund study to pay for major repairs and replacements. It is based on estimates of when the work will be needed. If there is not enough money in the reserve fund to pay for major repairs and replacements, the unit owners may have to pay for those costs through a special assessment. When comparing the actual balance with the ideal balance, be aware that some work may be done earlier or later than expected, or may be paid for from an account other than the reserve fund. When this happens, the comparison may no longer show whether the amount of money in the reserve fund is adequate. † The strata council is not legally required to follow the recommended plan. These recommendations come from the Adequate Funding Model in Section 5. For other models please refer to Appendix J. ‡ Defined as Reserve Fund Contributions divided by 12, divided by the number of strata units. The amount that any given owner will pay to the Reserve Fund depends on their relative unit entitlement.



Three Year Plan—CommercialRecommendations†




Certification I certify to the best of my knowledge and belief that:

• The statements of fact contained in this report are true and correct; • The reported analyses, opinions, and conclusions are limited only by the reported

assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions;

• I have no present interest in the issue that is the subject of this report, and no personal interest with respect to the parties involved;

• I have no bias with respect to the issue that is the subject matter of this report or to the parties involved with this assignment;

• My compensation is not contingent on an action or an event resulting from the analyses, opinions, or conclusions in, or the use of, this report.

• I have the knowledge and experience to complete the assignment competently, and hereby certify that I am a qualified person empowered to conduct reserve fund studies;

• As of the date of this report I have fulfilled the requirements of the Appraisal Institute of Canada Continuing Professional Development Program for members. I am a member in good standing with the Appraisal Institute of Canada and carry current errors and omission insurance through Trisura Guarantee Insurance Company.

• I have personally inspected the property described within, and I have personally examined the building plans and/or documents as identified herein. To the best of my knowledge and belief, the information and data used herein are true and correct.

• I have not been provided significant professional assistance in the completion of this report.

• The Depreciation Report was prepared in conformity with the requirements of the Strata Property Act as amended to date, as well as the Reserve Fund Study Standards, published by the Real Estate Institute of Canada, and the Consulting Standard of the Appraisal Institute of Canada.

• I am a current member in good standing of the Real Estate Institute of Canada, holding the Certified Reserve Planner designation. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Canadian Uniform Standards of Professional Appraisal Practice.

______________________________________________

Michael LaPorte, CRP, PRA, AACI, P.App., RI October 16, 2019 Qualifications listed in Appendix A




1. Report Overview

1.1 Purpose of the Report

Description This depreciation report is a study of the existing development components that have shared responsibility and which will require replacement or major repairs less often than once per year. It is a financial document that estimates expenditures from the Reserve Fund in the long term and recommends funding actions.

This report is subject to the assumptions and limiting conditions described in Appendix B.

Purpose The purpose of a depreciation report is to help current owners determine how much money to save in their reserve fund. The report forecasts a 30-year period but the purpose of this report is specifically to provide information to help current owners determine reserve contributions for the next three years. This report also satisfies the requirements of the BC Strata Property Amendment Act, 2009, Part 6 Division 1 as amended to date (Appendix C).

Disclaimer This report should not be considered a detailed review of the roof, building envelope, or any other specific component; nor does it contain exhaustive property maintenance instructions. The replacement dates and component costs are predictions of what will happen, rather than specific recommendations. We are not recommending when to repair or replace each component or how much it will cost; we are recommending reserve funding actions based on our forecasts of what reserve expenditures the strata council will make.

We rely heavily on information provided to us by those for whom we are working, sometimes including strata council members, other property owners, property managers, contractors, and on-site staff. We assume no responsibility for the accuracy of the information they provide to us. As this report is intended to be a budgeting tool for the strata, we sometimes defer to their interpretation of financial statements, component costs and lifespans (within reason), and specific bylaw interpretations. We include a notice to the reader where these interpretations could cause confusion or misunderstanding.

The information contained in this report is not intended to be an independent review of the facts applicable to this property. This is a collaborative document between the report provider and those who live in and work on behalf of the property.




1.2 Methodology

This is a summary of the work we have done for this report. For more details, please refer to the full report, including appendices.

Property Information (Section 2) The subject property was visually inspected on April 24, 2019. The consultant reviewed building plans, financial documents, AGM minutes, governing documents, and consulted with the client to identify undocumented repair work, learn about latent defects that are causing problems, assess risk tolerance, and determine the client’s short-term intentions regarding reserve fund work.

Component Details (Section 3) The consultant counted, estimated, or measured quantities for all the reserve components, determined their lifespans and effective ages, and forecasted a schedule of major repair and replacement work. The consultant estimated the current cost to repair or replace each component.

Economic Forecasting (Section 4) An appropriate construction inflation rate was calculated and applied to the current component costs to create a reserve fund budget for 30 years. An achievable interest rate was calculated, applying it to the current balance and future contributions. Finally, a Consumer Price Index (CPI) inflation rate was calculated to aid in recommending fair contributions.

Funding Models (Section 5) The consultant created an equitable payment schedule such that each owner pays their share towards each component’s next replacement, called a Benchmark Analysis. This is a hypothetical scenario because it assumes that there is no reserve fund deficiency. Then the consultant created three funding models (two of them in Appendix J) based on how much money the reserve fund currently has, and compared it to the benchmark to assess fund performance and risk.




2. Property Information

2.1 Property Description Summary

BCS 460—“Classico” 1328 - 1386 West Pender Street, 638 Broughton Street Vancouver, BC, V6E 4T1

This development is located on the south side of West Pender Street, between Broughton Street to the west, and Jervis Street/Melville Street to the east. It was constructed in 2003 and registered as a strata corporation on August 6, 2003. The property consists of one thirty-seven-storey mixed-use high-rise apartment building with three floors of parkade below, as well as a low rise commercial/residential area. Levels 1 through 3 comprises 11 commercial strata lots and 5 three storey residential town homes, with floors 3 through 38 upper containing the remaining 5 town homes and 191 apartment style residential strata lots, for a total of 212 units.

The overall construction, materials, and workmanship are of good quality. The project is assumed to have been constructed in accordance with applicable building codes, fire codes, city by-laws, and construction practices in existence at that time. The property is assumed to comply with all laws, bylaws, and code requirements.

Korecki Real Estate Services Inc., a firm experienced in residential and commercial property management, manages the property.

The property was inspected for the purposes of preparing this report on April 24, 2019, by Michael LaPorte, CRP, PRA, AACI, P.App., RI. The inspection included a visual on-site inspection of the reserve components, where practical, as per the requirements of the Act.




2.2 Building Plans

The following plans were examined in the performance of the depreciation report:

Architectural Plan Howard Bingham Architects

Strata Plan Bennett & Associates

The architectural plans and strata plan were used for quantifying the components and other improvements. There were complete architectural drawings (electronic documents) for the development and the available drawings were in good condition. Some quantities were estimated on site or measured off the plans and are considered estimates.




Building Plans Example




2.3 Property Data

The following data have been calculated using dimensions taken from the available plans, and observed during the inspection of the buildings and improvements. The estimates below are for reference purposes only.

Site Area 40,413 square feet

Building Coverage 21,000 square feet

Building Height thirty-seven storeys

Gross Floor Area 258,000 square feet

Occupancy 212 units

Parking 276 stalls

2.4 Sections

The subject strata corporation has been organized into legally-distinct sections, including 3 governing bodies: the strata corporation (joint strata), the commercial section, and the residential section. Therefore, three sets of funding models have been created, pertaining to the entire strata corporation as well as each section. For more information about sections please see Appendix D.

2.5 Development End of Life

A development can reach the end of its economic life long before it physically deteriorates to an unusable condition. The end of its economic life occurs when the property’s redevelopment value exceeds its existing value.

No repairs or replacements should be made or accounted for after the end of the development’s economic life. Therefore, the strata’s reserve fund contributions will decrease until the contributions become zero by the end of the development’s life.

An End of Life date more than 50 years away does not often make a significant difference to the 30 year projections. Even an End of Life date in 30 years, though it drastically changes the 30 year projections, tends to make no significant difference to our recommendation for the annual contributions in the next three years, which are the purpose of this report.




In determining whether to set an End of Life date for the subject property, the consultant has relied upon standard age/life averages, CHOA information bulletins, and personal experience in building analysis. When appropriate, the strata council and management have been consulted to determine whether it is helpful to set an End of Life date.

End of Life date: no date set

2.6 Bylaws and Governing Documents Review

The consultant has reviewed the bylaws and governing documents as amended to date. The review has found them to be typical with the following important notes:

Repair and Maintenance

The bylaws are typical in terms of which items are the strata corporation’s responsibilities to repair and maintain, as well as each section. The bylaws are the basis for determining which items to consider as reserve components.

The subject bylaws describe the responsibilities of the owners and of the strata corporation with regards to funding reserve components under Part S.5 – Repair and Maintenance of property by Strata Corporation, for each section under Part S.4 – Repair and Maintenance of Property by Separate Sections, and for the owners under Part R.3 – Repairs and Maintenance of Property by Owner. The reserve components are described further in Appendix E.

Excerpts of the applicable bylaw parts noted above are below:




The non-reserve components (items not accounted for in this report) forming part of the common and/or limited common property, as per the bylaws and our discussions with the property’s representatives, are as follows:

• None noted

For further details, please refer to the original governing document(s) as amended to date.

2.7 Previous Depreciation Reports

There were no previous depreciation reports provided for review.




2.8 Historical Financial Analysis

The consultant has examined financial statements for the strata corporation for its operations from Sep 2016–Aug 2019. The property management company at the time, Korecki Real Estate Services Inc., prepared the most recent budgets.

Information available indicates that the balance in the reserve funds as of September 1, 2019 was $256,829 for the Strata (Joint) section, $1,289,375 for the Residential section, and $81,084 for the Commercial section. Note: these balances differ slightly from the bank statements which reportedly show the following:

CONTINGENCY RESERVE FUND (based on the banks statements) Strata Corporation (Joint) 291,987 (Includes 40,319 prepaid insurance) Residential 1,302,846 Commercial 79,627 CRF total 1,674,460

Predicted CRF Transfers from Residential and Commercial Section to Joint Strata Section:

The depreciation report considers the intention of the strata corporation and section owners to “rebalance” the crf contributions between the joint strata crf account and the section strata accounts. The section owners reportedly unanimously agreed to proportionate contributions from the section owners at a ratio of 90% residential section contribution, and 10% commercial section contribution.

On the above basis, a predicted one-time transfer of $500,000 into the joint strata crf account has been included in the funding models, with the predicted timing occurring in fiscal year September 2020 – August 2021. This would represent a $450,000 transfer from the residential section crf account, and a $50,000 transfer from the commercial section crf account.

The strata corporation has budgeted regular contributions of $103,218 for this fiscal year, which is approximately an average of $41 for the Strata (Joint) section, $58 for the Residential section, and $34 for the Commercial section per unit per month. Please note that the average monthly contribution is calculated based on the number of strata lots; actual fees and levies will be based on relative unit entitlement.

We recommend that separate General Ledger codes are used for each component to facilitate the reserve fund update process. We also recommend that all reserve expenditures be taken from reserve accounts.




Reserve Fund Financial History

HISTORICAL ANALYSISClassico—Strata (Joint)

Sep 2016– Sep 2017– Sep 2018– Sep 2019–Aug 2017 Aug 2018 Aug 2019 Aug 2020

Opening Balance 189,736$ 175,411$ 152,186$ 256,829$

RESERVE FUND INCOME

Reserve Fund Contributions 44,957 44,957 103,218 103,218 Loan DrawsSpecial AssessmentTransfer From OperatingOther IncomeInterest Income 1,149 1,575 1,425 2,471

Total Cash Resources 235,842 221,943 256,829 362,519

RESERVE FUND EXPENDITURES

Building - Structural and Architectural1 Substructure and Underground Garage/Parkade - Strata 2 Wall Assemblies - Metal Siding - Strata 3 Wall Assemblies - Concrete Siding - Strata 4 Window Wall Assemblies - High Rise - Strata 5 Window Assemblies - Low Rise - Strata 6 Commercial Storefront - Strata 7 Townhouse Garage Door Assemblies - Metal - Strata 8 Common Door Assemblies - Wood - Residential Section 9 Common Door Assemblies - Metal - Strata

10 Common Door Assemblies - Metal - Commercial Section 11 Common Door Assemblies - Metal - Residential Section 12 Common Door Assemblies - Metal and Glass - Strata 13 Common Door Assemblies - Metal and Glass - Residential Section 14 Common Door Assemblies - Sliding Glass - Strata 15 Caulking and Weather-Stripping / Maint & Repair - Strata 16 Expansion Joint Caulking / Maint & Repair - Strata 17 Balcony Floor Construction - Concrete - Strata 18 Terraces - Strata 19 Balcony Rail ings - Strata 20 Roof Assembly - High-Rise - EPDM Membrane - Strata 21 Roof Assembly - Commercial/Townhouse - EPDM Membrane - Strata 22 Roof Access Hatch - Commercial/Townhouse - Strata 23 Metal Fireplace Chimney/Vent - Strata 24 Skylights - Strata 25 Canopy Repair - Metal/Glass - Strata

Building - Finishes and Decoration26 Exterior Building Painting - Strata 27 Balcony Floor Finish - Strata 28 Parkade Floor Coating - Strata 29 Underground Garage Markings - Strata 30 Garage Insulation - Strata 31 Security Gates - Strata 32 Parkade Lighting - Strata 33 Interior Common Corridor Painting - Strata 34 Interior Common Corridor Painting - Commercial Section 35 Interior Common Corridor Painting - Residential Section 36 Interior Common Corridor Wallpaper - Residential Section 37 Interior Stairwell Painting - Commercial Section 38 Interior Stairwell Painting - Residential Section 39 Interior Common Area Flooring - Carpet - Residential Section 40 Interior Common Area Flooring - Commercial Section 41 Interior Common Area Flooring - Tile - Residential Section 42 Interior Common Area Lighting - Strata 43 Interior Common Area Lighting - Commercial Section 44 Interior Common Area Lighting - Residential Section




44 Interior Common Area Lighting - Residential Section 45 Lobby Renovation - Residential Section 46 Elevator Cab Renovation - Commercial Section 47 Elevator Cab Renovation - Residential Section

Building - Mechanical Systems48 Sump Pumps / Drains and Controls - Strata 49 Domestic Cold Water Supply - Commercial Section 50 Domestic Hot and Cold Water Supply - Residential Section 51 Sprinkler System - Strata 52 Heating System - Boiler - Residential Section 53 Heating System - Electric Baseboard - Strata 54 Heating System - Hot Water Storage Tanks - Residential Section 55 Make-up Air Handling Unit - Commercial Section 56 Make-up Air Handling Unit - Residential Section 57 Special and Exhaust Equipment - Residential Section 58 Garbage Handling System - Residential Section 59 Elevator Modernization - Traction - Residential Section 60 Elevator Modernization - Hydraulic - Commercial Section

Building - Electrical Systems61 Electrical Distribution System and Fixtures - Strata 62 Entry System - Intercom - Commercial Section 63 Entry System - Intercom - Residential Section 64 Security / Surveil lance System - Strata 65 Fire Alarm System - Strata 66 Gas Detectors - Strata 67 Emergency Generator - Strata

Building - Amenities68 Amenity Rooms - Residential Section 69 Exercise Room - Residential Section 70 Exercise Equipment - Residential Section 71 Pool - Mechanical - Residential Section 72 Pool - Structure - Residential Section 73 Pool - Furnishings - Residential Section 74 Indoor Pool Room - Residential Section 75 Hot Tub - Mechanical - Residential Section 76 Hot Tub - Structure - Residential Section 77 Sauna/Steam Room - Mechanical - Residential Section 78 Sauna/Steam Room - Structure - Residential Section 79 Common Area Washrooms / Changerooms - Res identia l Section 80 Common Area Washrooms / Changerooms - Commercia l Section 81 Storage Lockers - Residential Section 82 Mailboxes - Residential Section

Common Site Improvements83 Site Services - Sewer and Water - Strata 84 Concrete Paving and Curbs - Strata 85 Pavers - Strata 86 Concrete Patio - Residential Section 87 Exterior Landscaping - Strata 88 Exterior Landscaping - Residential Section 89 Ponds / Water Feature - Residential Section 90 Retaining Walls - Concrete - Strata 91 Rooftop Planters - Strata 92 Common Exterior Rail ings - Metal - Strata 93 Exterior Lighting - Strata 94 Depreciation Report - Strata 9,713

MiscellaneousNon-Specific Reserve Fund Draws 60,431 69,757

Total Expenditures 60,431 69,757 - 9,713

Closing Balance 175,411 152,186 256,829 352,806




HISTORICAL ANALYSISClassico—Residential


Opening Balance 923,155$ 1,165,308$ 1,137,355$ 1,289,375$

RESERVE FUND INCOME

Reserve Fund Contributions 231,868 186,671 140,646 140,806 Loan DrawsSpecial AssessmentTransfer From OperatingOther Income (230,000) Interest Income 22,906 21,718 11,374 12,894

Total Cash Resources 1,177,930 1,143,697 1,289,375 1,443,074




Building - Finishes and Decoration26 Exterior Building Painting - Strata 27 Balcony Floor Finish - Strata 28 Parkade Floor Coating - Strata 29 Underground Garage Markings - Strata 30 Garage Insulation - Strata 31 Security Gates - Strata 32 Parkade Lighting - Strata 33 Interior Common Corridor Painting - Strata 34 Interior Common Corridor Painting - Commercial Section 35 Interior Common Corridor Painting - Residential Section 36 Interior Common Corridor Wallpaper - Residential Section








Common Site Improvements83 Site Services - Sewer and Water - Strata 84 Concrete Paving and Curbs - Strata 85 Pavers - Strata 86 Concrete Patio - Residential Section 87 Exterior Landscaping - Strata 88 Exterior Landscaping - Residential Section 89 Ponds / Water Feature - Residential Section 90 Retaining Walls - Concrete - Strata 91 Rooftop Planters - Strata 92 Common Exterior Rail ings - Metal - Strata 93 Exterior Lighting - Strata 94 Depreciation Report - Strata -

MiscellaneousNon-Specific Reserve Fund Draws 12,622 6,342

Total Expenditures 12,622 6,342 - -

Closing Balance 1,165,308 1,137,355 1,289,375 1,443,074




HISTORICAL ANALYSISClassico—Commercial


Opening Balance 58,813$ 68,170$ 75,847$ 81,084$

RESERVE FUND INCOME

Reserve Fund Contributions 9,749 9,749 4,479 4,480 Loan DrawsSpecial AssessmentTransfer From OperatingOther IncomeInterest Income 512 732 758 811

Total Cash Resources 69,074 78,651 81,084 86,375




Building - Finishes and Decoration26 Exterior Building Painting - Strata 27 Balcony Floor Finish - Strata 28 Parkade Floor Coating - Strata 29 Underground Garage Markings - Strata 30 Garage Insulation - Strata 31 Security Gates - Strata 32 Parkade Lighting - Strata 33 Interior Common Corridor Painting - Strata 34 Interior Common Corridor Painting - Commercial Section 35 Interior Common Corridor Painting - Residential Section 36 Interior Common Corridor Wallpaper - Residential Section 37 Interior Stairwell Painting - Commercial Section 38 Interior Stairwell Painting - Residential Section 39 Interior Common Area Flooring - Carpet - Residential Section 40 Interior Common Area Flooring - Commercial Section 41 Interior Common Area Flooring - Tile - Residential Section 42 Interior Common Area Lighting - Strata 43 Interior Common Area Lighting - Commercial Section 44 Interior Common Area Lighting - Residential Section








Common Site Improvements83 Site Services - Sewer and Water - Strata 84 Concrete Paving and Curbs - Strata 85 Pavers - Strata 86 Concrete Patio - Residential Section 87 Exterior Landscaping - Strata 88 Exterior Landscaping - Residential Section 89 Ponds / Water Feature - Residential Section 90 Retaining Walls - Concrete - Strata 91 Rooftop Planters - Strata 92 Common Exterior Rail ings - Metal - Strata 93 Exterior Lighting - Strata 94 Depreciation Report - Strata -

MiscellaneousNon-Specific Reserve Fund Draws 904 2,804

Total Expenditures 904 2,804 - -

Closing Balance 68,170 75,847 81,084 86,375




3. Component Details

3.1 Component Descriptions

This report includes each existing building and site component that has shared responsibility and which will require replacement or major repairs less often than once per year.

Component Descriptions may be found in Appendix E. Each component analysis typically includes the following information:

• Pictures • Component Description • Condition Analysis • Reserve Fund Expenditure History • Life Cycle Analysis • Potential Deterioration • Funding Analysis (including Current Repair or Replacement Costs) • Suggested Maintenance

3.2 Life Cycle Analysis

Each component’s next replacement date occurs at the end of its Remaining Life, which is defined as the difference between its Effective Age and its Lifespan. Subsequent replacements are made assuming the component lasts its full lifespan again.

The Effective Age is a subjective, observed age for each reserve component. It differs from the component’s actual age when it is performing better or worse than expected. The Effective Age is subject to change due to numerous factors, and will not necessarily increase proportional to its actual age. It is chosen considering the following factors:

• Actual age of component • Observed performance compared to expectations • Reported Problems • Maintenance history • Repair and replacement history • Client’s replacement intentions • Functional Obsolescence • Coordination and practicality of replacement scheduling




The Lifespan is an average life expectancy for each reserve component. It is chosen considering the following factors:

• Type of Component • Material • Utilization • Workmanship • Quality • Manufacturer’s recommendation • CMHC Capital Replacement Planning Manual: Life Expectancy Guidelines • Contractors’ experience • Functional Obsolescence • Required Standards • Environmental Factors • Regular Maintenance • Preventive Maintenance • Observed Condition • Client’s Risk Tolerance

3.3 Current Cost Estimates

The cost to replace any component is variable. It depends on the scope of work, the quality of construction, the construction market, personal contacts, risk-tolerance, and many other factors. While we must choose an exact cost for our funding models, we recognize that the actual cost you pay can differ greatly from that amount depending on how those factors are addressed.

Cost estimates are typically calculated using the current year RSMeans Commercial Renovation Cost Data, modified as to time, location and quality of construction. They are based on our investigation, observation, analysis, and extensive experience performing depreciation reports. All costs are strictly estimates and should be regarded as a prediction rather than a recommendation.

Here is how some of the major factors in estimating the Repair and Replacement Costs are addressed:

Scope of Work Cost estimates are based on a like-for-like replacement (when possible), including demolition and disposal of the existing component, major repair or replacement of the component (labour,




materials, and equipment), special construction requirements, safety installations, limited access, reuse of salvageable materials, clean-up costs, contingencies, and contractor profit and overhead.

Quality of construction Cost estimates are based on quality materials as required under current building code regulations, using contractors' prices, union labour, and current construction techniques. When possible and desirable, the replacement quality is matched to the original quality of construction.

Replacement Cost Factors The costs of repairs and replacements of many reserve components are higher than original building costs. When constructing a new building, contractors have considerable latitude in planning their work and can utilize economies of scale to keep costs within construction budgets. In contrast, repair work must frequently be performed in an expedient manner with removal costs, additional safety precautions, and care for existing occupants.

Tax All cost estimates include Goods and Services Tax (GST) and Provincial Sales Tax (PST). Given that the proportion of costs which would be PST-exempt is uncertain, these costs are charged conservatively at 12%. This is a risk-averse method to estimating the embedded tax, given the long-term nature of this report.

Contingency All cost estimates include an individual contingency allowance to reflect uncertainties in the final costing and timing of work. This number typically varies from 5% to 25% depending on the overall expense of the component, the potential for latent defects, and the potential for additional costs.

Budget Provisions It is frequently infeasible to forecast the scope of repairs or replacements of various reserve components, particularly major components such as the foundation and substructure, domestic water plumbing, and electrical systems. A percentage of the total cost is budgeted for components that we do not expect to require a complete replacement in a single year, called a Budget Percentage. This percentage reflects cost on the balance of probabilities (average), which can differ from the most likely cost given several scenarios (mode).




4. Economic Forecasting

This depreciation report relies heavily on our long-term economic predictions of inflation and interest rates. While actual economic conditions will certainly be different than our forecasts, we are confident that our estimates are reasonable and valuable.

Inflation and interest rates may vary year-to-year and must be periodically reviewed to ensure their relevance and accuracy. We conduct our economic analysis based on long-term conditions to eliminate short-term volatility.

Construction Costs Construction costs increase over time at a different rate than standard Consumer Price Index (CPI) inflation. We have modified all our estimated costs by applying a construction inflation rate in line with their replacement dates.

We use a construction inflation rate of 3.0%. Please see Appendix F for a detailed explanation of our construction inflation analysis.

Interest Rates Interest earned on money in the reserve fund can significantly lower reserve contributions. We have applied interest each year to the closing balances in our funding models.

We use a rising interest rate, starting at 1.0% and increasing over 6 years to a long-term rate of 2.7%. Please see Appendix G for a detailed explanation of our interest rate analysis.

CPI Inflation Every year owners save money to replace components that have not yet failed. The amount they contribute towards any given component should stay the same year-to-year in terms of purchasing power. We increase these contributions by a localized CPI inflation rate which measures how much less one dollar is worth each year.

We use a localized CPI inflation rate of 1.7%. Please see Appendix H for a detailed explanation of our CPI inflation analysis.




5. Funding Models

5.1 Benchmark Analysis

The Benchmark Analysis shows how much money should be in the reserve fund as of the beginning of this fiscal year, and how much should be contributed this year. These hypothetical numbers are generated by equitably dividing the cost to replace a component over its lifespan, taking inflation and interest into account. For a detailed explanation of how this is calculated, please refer to Appendix I.

The Benchmark Analysis is used to evaluate the reserve fund’s performance and recommend equitable funding plans.

Please note the following definitions associated with the table on the next page.

Current Replacement Cost The cost to repair or replace each component today, after the Budget Percentage has been applied.

Future Replacement Cost The cost to repair or replace each component when it needs to be replaced.

Current Reserve Fund Requirement The amount that should be in the reserve account(s) for each component given its lifespan.

Current Required Contribution The amount that would equitably be contributed this year for each component if the reserve fund balance matches the Current Reserve Fund Requirement

Contribution Weight The proportion of each component’s Current Required Contribution to the total Current Required Contributions.




Benchmark Analysis

Construction Inflation 3.00%

Current Interest Rate 1.00%

Inflation (CPI) 1.70%

R-4270 Expected Observed Current Future Current CurrentClassico—Strata (Joint) Lifespan Condition Replacement Replacement Reserve Fund RequiredAs of Sep 2019 (Years) (Years) Cost Costs Requirements Contribution

Building - Structural and Architectural1 Substructure and Underground Garage/Parkade - Strata 2003/2016 5 3 2% 44,229$ 46,922$ 26,953$ 9,506$ 4%2 Wall Assemblies - Metal Siding - Strata 2003 50 15 50% 210,617$ 592,647$ 82,297$ 6,605$ 3%3 Wall Assemblies - Concrete Siding - Strata 2003 40 15 15% 68,869$ 144,196$ 31,222$ 2,506$ 1%4 Window Wall Assemblies - High Rise - Strata 2003 40 15 20% 1,505,787$ 3,152,784$ 682,660$ 54,787$ 22%5 Window Assemblies - Low Rise - Strata 2003 40 15 50% 240,819$ 504,222$ 109,177$ 8,762$ 4%6 Commercial Storefront - Strata 2003 40 15 100% 160,883$ 336,854$ 72,938$ 5,854$ 2%7 Townhouse Garage Door Assemblies - Metal - Strata 2003 40 15 100% 11,758$ 24,618$ 5,331$ 428$ 0%8 Common Door Assemblies - Wood - Residential Section 2003 30 16 25% -$ -$ -$ -$ 0%9 Common Door Assemblies - Metal - Strata 2003 30 16 20% 4,596$ 6,952$ 2,727$ 207$ 0%

10 Common Door Assemblies - Metal - Commercial Section 2003 30 16 20% -$ -$ -$ -$ 0%11 Common Door Assemblies - Metal - Residential Section 2003 30 16 20% -$ -$ -$ -$ 0%12 Common Door Assemblies - Metal and Glass - Strata 2003 30 16 50% 20,260$ 30,645$ 12,023$ 914$ 0%13 Common Door Assemblies - Metal and Glass - Residential Sectio 2003 30 0 20% -$ -$ -$ -$ 0%14 Common Door Assemblies - Sliding Glass - Strata 2003 35 16 50% 224,104$ 392,968$ 118,376$ 8,997$ 4%15 Caulking and Weather-Stripping / Maint & Repair - Strata 2003 12 6 33% 82,500$ 98,509$ 43,210$ 7,881$ 3%16 Expansion Joint Caulking / Maint & Repair - Strata 2003 16 8 50% 12,500$ 15,835$ 6,648$ 929$ 0%17 Balcony Floor Construction - Concrete - Strata 2016 24 3 50% 93,559$ 174,046$ 13,748$ 4,849$ 2%18 Terraces - Strata 2003 30 15 25% 157,300$ 245,068$ 88,187$ 7,077$ 3%19 Balcony Rail ings - Strata 2003 25 15 25% 162,138$ 217,900$ 105,017$ 8,428$ 3%20 Roof Assembly - High-Rise - EPDM Membrane - Strata 2003 18 15 100% 210,000$ 229,473$ 179,078$ 14,372$ 6%21 Roof Assembly - Commercial/Townhouse - EPDM Membrane - Strata 2003 18 15 100% 390,000$ 426,164$ 332,573$ 26,691$ 11%22 Roof Access Hatch - Commercial/Townhouse - Strata 2003 36 15 100% 2,126$ 3,956$ 1,039$ 83$ 0%23 Metal Fireplace Chimney/Vent - Strata 2003 20 15 50% 100,714$ 116,755$ 78,488$ 6,299$ 3%24 Skylights - Strata 2003 36 15 100% 7,330$ 13,637$ 3,583$ 288$ 0%25 Canopy Repair - Metal/Glass - Strata 2003 5 2 10% 8,423$ 9,204$ 3,449$ 1,804$ 1%

Building - Finishes and Decoration26 Exterior Building Painting - Strata 2018 18 1 100% 63,805$ 105,460$ 4,043$ 4,180$ 2%27 Balcony Floor Finish - Strata 2016 15 3 100% 121,644$ 173,435$ 26,696$ 9,415$ 4%28 Parkade Floor Coating - Strata 2003 20 15 50% 86,591$ 100,383$ 67,482$ 5,416$ 2%29 Underground Garage Markings - Strata 2003 18 9 100% 7,821$ 10,204$ 4,191$ 526$ 0%30 Garage Insulation - Strata 2003 50 16 50% 39,102$ 106,822$ 16,173$ 1,229$ 1%31 Security Gates - Strata 2003 22 15 100% 26,536$ 32,636$ 19,090$ 1,532$ 1%32 Parkade Lighting - Strata 2017 20 2 100% 30,000$ 51,073$ 3,447$ 1,803$ 1%33 Interior Common Corridor Painting - Strata 2003 16 8 100% 3,432$ 4,347$ 1,825$ 255$ 0%34 Interior Common Corridor Painting - Commercial Section 2003 16 8 100% -$ -$ -$ -$ 0%35 Interior Common Corridor Painting - Residential Section 2003 16 8 100% -$ -$ -$ -$ 0%36 Interior Common Corridor Wallpaper - Residential Section 2003 15 5 50% -$ -$ -$ -$ 0%37 Interior Stairwell Painting - Commercial Section 2003 22 11 100% -$ -$ -$ -$ 0%38 Interior Stairwell Painting - Residential Section 2003 22 11 50% -$ -$ -$ -$ 0%39 Interior Common Area Flooring - Carpet - Residential Section 2003 18 9 67% -$ -$ -$ -$ 0%40 Interior Common Area Flooring - Commercial Section 2003 20 10 33% -$ -$ -$ -$ 0%41 Interior Common Area Flooring - Tile - Residential Section 2015 25 4 50% -$ -$ -$ -$ 0%42 Interior Common Area Lighting - Strata 2003 20 16 33% 7,248$ 8,158$ 5,979$ 454$ 0%43 Interior Common Area Lighting - Commercial Section 2015 20 4 33% -$ -$ -$ -$ 0%44 Interior Common Area Lighting - Residential Section 2003 20 10 33% -$ -$ -$ -$ 0%45 Lobby Renovation - Residential Section 2018 15 1 33% -$ -$ -$ -$ 0%46 Elevator Cab Renovation - Commercial Section 2003 22 16 50% -$ -$ -$ -$ 0%47 Elevator Cab Renovation - Residential Section 2018 22 8 50% -$ -$ -$ -$ 0%

BENCHMARK ANALYSIS

Year of Acquisition

Budget Percentage

Contribution Weight




47 Elevator Cab Renovation - Residential Section 2018 22 8 50% -$ -$ -$ -$ 0%

Building - Mechanical Systems48 Sump Pumps / Drains and Controls - Strata 2016 15 3 50% 3,418$ 4,874$ 750$ 265$ 0%49 Domestic Cold Water Supply - Commercial Section 2003 25 16 10% -$ -$ -$ -$ 0%50 Domestic Hot and Cold Water Supply - Residential Section 2003 5 2 6% -$ -$ -$ -$ 0%51 Sprinkler System - Strata 2003 30 16 10% 236,293$ 357,415$ 140,222$ 10,658$ 4%52 Heating System - Boiler - Residential Section 2008/2014 20 5 50% -$ -$ -$ -$ 0%53 Heating System - Electric Baseboard - Strata 2003 40 16 50% 3,066$ 6,233$ 1,472$ 112$ 0%54 Heating System - Hot Water Storage Tanks - Residential Section 2008/2014 18 5 100% -$ -$ -$ -$ 0%55 Make-up Air Handling Unit - Commercial Section 2003 20 16 33% -$ -$ -$ -$ 0%56 Make-up Air Handling Unit - Residential Section 2003 20 16 33% -$ -$ -$ -$ 0%57 Special and Exhaust Equipment - Residential Section 2003 18 16 50% -$ -$ -$ -$ 0%58 Garbage Handling System - Residential Section 2003 20 16 33% -$ -$ -$ -$ 0%59 Elevator Modernization - Traction - Residential Section 2003 30 16 40% -$ -$ -$ -$ 0%60 Elevator Modernization - Hydraulic - Commercial Section 2003 25 16 40% -$ -$ -$ -$ 0%

Building - Electrical Systems61 Electrical Distribution System and Fixtures - Strata 2003 35 16 5% 46,834$ 82,123$ 24,738$ 1,880$ 1%62 Entry System - Intercom - Commercial Section 2010 18 9 50% -$ -$ -$ -$ 0%63 Entry System - Intercom - Residential Section 2003 18 15 33% -$ -$ -$ -$ 0%64 Security / Surveil lance System - Strata 2003 8 4 50% 11,309$ 12,728$ 5,833$ 1,560$ 1%65 Fire Alarm System - Strata 2003 15 12 25% 37,500$ 40,977$ 30,701$ 2,986$ 1%66 Gas Detectors - Strata 2003 8 4 33% 8,086$ 9,101$ 4,170$ 1,116$ 0%67 Emergency Generator - Strata 2003 35 16 25% 48,835$ 85,632$ 25,795$ 1,961$ 1%

Building - Amenities68 Amenity Rooms - Residential Section 2003/2012 25 7 33% -$ -$ -$ -$ 0%69 Exercise Room - Residential Section 2003 20 10 25% -$ -$ -$ -$ 0%70 Exercise Equipment - Residential Section 2003/2013 4 2 10% -$ -$ -$ -$ 0%71 Pool - Mechanical - Residential Section 2003/2013 10 5 100% -$ -$ -$ -$ 0%72 Pool - Structure - Residential Section 2008 12 6 25% -$ -$ -$ -$ 0%73 Pool - Furnishings - Residential Section 2003 10 5 100% -$ -$ -$ -$ 0%74 Indoor Pool Room - Residential Section 2003 20 10 33% -$ -$ -$ -$ 0%75 Hot Tub - Mechanical - Residential Section 2003/2013 18 6 100% -$ -$ -$ -$ 0%76 Hot Tub - Structure - Residential Section 2008 12 6 50% -$ -$ -$ -$ 0%77 Sauna/Steam Room - Mechanical - Residential Section 2003 18 9 50% -$ -$ -$ -$ 0%78 Sauna/Steam Room - Structure - Residential Section 2003 20 10 33% -$ -$ -$ -$ 0%79 Common Area Washrooms / Changerooms - Res identia l Section 2003/2013 22 6 25% -$ -$ -$ -$ 0%80 Common Area Washrooms / Changerooms - Commercia l Section 2003 22 15 20% -$ -$ -$ -$ 0%81 Storage Lockers - Residential Section 2003 30 16 5% -$ -$ -$ -$ 0%82 Mailboxes - Residential Section 2003 40 16 50% -$ -$ -$ -$ 0%

Common Site Improvements83 Site Services - Sewer and Water - Strata 2003 10 5 50% 5,136$ 5,955$ 2,670$ 578$ 0%84 Concrete Paving and Curbs - Strata 2003 35 16 10% 108,431$ 190,134$ 57,275$ 4,353$ 2%85 Pavers - Strata 2003 20 16 20% 51,566$ 58,038$ 42,537$ 3,233$ 1%86 Concrete Patio - Residential Section 2003 35 16 25% -$ -$ -$ -$ 0%87 Exterior Landscaping - Strata 2015 15 4 20% 13,178$ 18,241$ 3,826$ 1,024$ 0%88 Exterior Landscaping - Residential Section 2003 15 4 20% -$ -$ -$ -$ 0%89 Ponds / Water Feature - Residential Section 2003 16 13 50% -$ -$ -$ -$ 0%90 Retaining Walls - Concrete - Strata 2003 40 16 33% 27,093$ 55,074$ 13,001$ 988$ 0%91 Rooftop Planters - Strata 2003 20 16 50% 67,500$ 75,972$ 55,681$ 4,232$ 2%92 Common Exterior Rail ings - Metal - Strata 2003 30 16 25% 24,214$ 36,627$ 14,369$ 1,092$ 0%93 Exterior Lighting - Strata 2003 20 16 33% 50,010$ 56,287$ 41,254$ 3,136$ 1%94 Depreciation Report - Strata 2019 3 3 100% 9,713$ 9,713$ 9,713$ 3,552$ 1%

TOTAL RESERVES 4,856,872$ 8,480,994$ 2,621,657$ 244,802$ 100%







R-4270 Expected Observed Current Future Current CurrentClassico—Residential Lifespan Condition Replacement Replacement Reserve Fund RequiredAs of Sep 2019 (Years) (Years) Cost Costs Requirements Contribution

Building - Structural and Architectural1 Substructure and Underground Garage/Parkade - Strata 2003/2016 5 3 2% -$ -$ -$ -$ 0%2 Wall Assemblies - Metal Siding - Strata 2003 50 15 50% -$ -$ -$ -$ 0%3 Wall Assemblies - Concrete Siding - Strata 2003 40 15 15% -$ -$ -$ -$ 0%4 Window Wall Assemblies - High Rise - Strata 2003 40 15 20% -$ -$ -$ -$ 0%5 Window Assemblies - Low Rise - Strata 2003 40 15 50% -$ -$ -$ -$ 0%6 Commercial Storefront - Strata 2003 40 15 100% -$ -$ -$ -$ 0%7 Townhouse Garage Door Assemblies - Metal - Strata 2003 40 15 100% -$ -$ -$ -$ 0%8 Common Door Assemblies - Wood - Residential Section 2003 30 16 25% 41,232$ 62,367$ 24,468$ 1,860$ 1%9 Common Door Assemblies - Metal - Strata 2003 30 16 20% -$ -$ -$ -$ 0%

10 Common Door Assemblies - Metal - Commercial Section 2003 30 16 20% -$ -$ -$ -$ 0%11 Common Door Assemblies - Metal - Residential Section 2003 30 16 20% 20,858$ 31,550$ 12,378$ 941$ 1%12 Common Door Assemblies - Metal and Glass - Strata 2003 30 16 50% -$ -$ -$ -$ 0%13 Common Door Assemblies - Metal and Glass - Residential Sectio 2003 30 0 20% 11,889$ 28,858$ -$ 510$ 0%14 Common Door Assemblies - Sliding Glass - Strata 2003 35 16 50% -$ -$ -$ -$ 0%15 Caulking and Weather-Stripping / Maint & Repair - Strata 2003 12 6 33% -$ -$ -$ -$ 0%16 Expansion Joint Caulking / Maint & Repair - Strata 2003 16 8 50% -$ -$ -$ -$ 0%17 Balcony Floor Construction - Concrete - Strata 2016 24 3 50% -$ -$ -$ -$ 0%18 Terraces - Strata 2003 30 15 25% -$ -$ -$ -$ 0%19 Balcony Rail ings - Strata 2003 25 15 25% -$ -$ -$ -$ 0%20 Roof Assembly - High-Rise - EPDM Membrane - Strata 2003 18 15 100% -$ -$ -$ -$ 0%21 Roof Assembly - Commercial/Townhouse - EPDM Membrane - Strata 2003 18 15 100% -$ -$ -$ -$ 0%22 Roof Access Hatch - Commercial/Townhouse - Strata 2003 36 15 100% -$ -$ -$ -$ 0%23 Metal Fireplace Chimney/Vent - Strata 2003 20 15 50% -$ -$ -$ -$ 0%24 Skylights - Strata 2003 36 15 100% -$ -$ -$ -$ 0%25 Canopy Repair - Metal/Glass - Strata 2003 5 2 10% -$ -$ -$ -$ 0%

Building - Finishes and Decoration26 Exterior Building Painting - Strata 2018 18 1 100% -$ -$ -$ -$ 0%27 Balcony Floor Finish - Strata 2016 15 3 100% -$ -$ -$ -$ 0%28 Parkade Floor Coating - Strata 2003 20 15 50% -$ -$ -$ -$ 0%29 Underground Garage Markings - Strata 2003 18 9 100% -$ -$ -$ -$ 0%30 Garage Insulation - Strata 2003 50 16 50% -$ -$ -$ -$ 0%31 Security Gates - Strata 2003 22 15 100% -$ -$ -$ -$ 0%32 Parkade Lighting - Strata 2017 20 2 100% -$ -$ -$ -$ 0%33 Interior Common Corridor Painting - Strata 2003 16 8 100% -$ -$ -$ -$ 0%34 Interior Common Corridor Painting - Commercial Section 2003 16 8 100% -$ -$ -$ -$ 0%35 Interior Common Corridor Painting - Residential Section 2003 16 8 100% 22,273$ 28,215$ 11,845$ 1,656$ 1%36 Interior Common Corridor Wallpaper - Residential Section 2003 15 5 50% 54,654$ 73,451$ 19,682$ 4,260$ 2%37 Interior Stairwell Painting - Commercial Section 2003 22 11 100% -$ -$ -$ -$ 0%38 Interior Stairwell Painting - Residential Section 2003 22 11 50% 10,388$ 14,379$ 5,652$ 593$ 0%39 Interior Common Area Flooring - Carpet - Residential Section 2003 18 9 67% 204,984$ 267,458$ 109,848$ 13,800$ 8%40 Interior Common Area Flooring - Commercial Section 2003 20 10 33% -$ -$ -$ -$ 0%41 Interior Common Area Flooring - Tile - Residential Section 2015 25 4 50% 44,349$ 82,502$ 8,340$ 2,231$ 1%42 Interior Common Area Lighting - Strata 2003 20 16 33% -$ -$ -$ -$ 0%43 Interior Common Area Lighting - Commercial Section 2015 20 4 33% -$ -$ -$ -$ 0%44 Interior Common Area Lighting - Residential Section 2003 20 10 33% 38,143$ 51,261$ 20,596$ 2,354$ 1%45 Lobby Renovation - Residential Section 2018 15 1 33% 22,754$ 34,418$ 1,691$ 1,748$ 1%46 Elevator Cab Renovation - Commercial Section 2003 22 16 50% -$ -$ -$ -$ 0%47 Elevator Cab Renovation - Residential Section 2018 22 8 50% 22,018$ 33,304$ 8,917$ 1,247$ 1%

BENCHMARK ANALYSIS

Year of Acquisition

Budget Percentage

Contribution Weight




47 Elevator Cab Renovation - Residential Section 2018 22 8 50% 22,018$ 33,304$ 8,917$ 1,247$ 1%

Building - Mechanical Systems48 Sump Pumps / Drains and Controls - Strata 2016 15 3 50% -$ -$ -$ -$ 0%49 Domestic Cold Water Supply - Commercial Section 2003 25 16 10% -$ -$ -$ -$ 0%50 Domestic Hot and Cold Water Supply - Residential Section 2003 5 2 6% 208,100$ 227,396$ 85,206$ 44,564$ 26%51 Sprinkler System - Strata 2003 30 16 10% -$ -$ -$ -$ 0%52 Heating System - Boiler - Residential Section 2008/2014 20 5 50% 130,715$ 203,650$ 36,685$ 7,940$ 5%53 Heating System - Electric Baseboard - Strata 2003 40 16 50% -$ -$ -$ -$ 0%54 Heating System - Hot Water Storage Tanks - Residential Section 2008/2014 18 5 100% 23,235$ 34,122$ 7,135$ 1,544$ 1%55 Make-up Air Handling Unit - Commercial Section 2003 20 16 33% -$ -$ -$ -$ 0%56 Make-up Air Handling Unit - Residential Section 2003 20 16 33% 59,567$ 67,043$ 49,137$ 3,735$ 2%57 Special and Exhaust Equipment - Residential Section 2003 18 16 50% 6,132$ 6,505$ 5,535$ 421$ 0%58 Garbage Handling System - Residential Section 2003 20 16 33% 10,200$ 11,481$ 8,414$ 640$ 0%59 Elevator Modernization - Traction - Residential Section 2003 30 16 40% 1,449,070$ 2,191,849$ 859,914$ 65,358$ 38%60 Elevator Modernization - Hydraulic - Commercial Section 2003 25 16 40% -$ -$ -$ -$ 0%

Building - Electrical Systems61 Electrical Distribution System and Fixtures - Strata 2003 35 16 5% -$ -$ -$ -$ 0%62 Entry System - Intercom - Commercial Section 2010 18 9 50% -$ -$ -$ -$ 0%63 Entry System - Intercom - Residential Section 2003 18 15 33% 54,945$ 60,040$ 46,854$ 3,760$ 2%64 Security / Surveil lance System - Strata 2003 8 4 50% -$ -$ -$ -$ 0%65 Fire Alarm System - Strata 2003 15 12 25% -$ -$ -$ -$ 0%66 Gas Detectors - Strata 2003 8 4 33% -$ -$ -$ -$ 0%67 Emergency Generator - Strata 2003 35 16 25% -$ -$ -$ -$ 0%

Building - Amenities68 Amenity Rooms - Residential Section 2003/2012 25 7 33% 47,405$ 80,704$ 15,242$ 2,409$ 1%69 Exercise Room - Residential Section 2003 20 10 25% 8,080$ 10,859$ 4,363$ 499$ 0%70 Exercise Equipment - Residential Section 2003/2013 4 2 10% 4,417$ 4,686$ 2,243$ 1,173$ 1%71 Pool - Mechanical - Residential Section 2003/2013 10 5 100% 8,656$ 10,035$ 4,499$ 974$ 1%72 Pool - Structure - Residential Section 2008 12 6 25% 28,746$ 34,324$ 15,056$ 2,746$ 2%73 Pool - Furnishings - Residential Section 2003 10 5 100% 2,286$ 2,650$ 1,188$ 257$ 0%74 Indoor Pool Room - Residential Section 2003 20 10 33% 9,009$ 12,108$ 4,865$ 556$ 0%75 Hot Tub - Mechanical - Residential Section 2003/2013 18 6 100% 6,401$ 9,126$ 2,341$ 427$ 0%76 Hot Tub - Structure - Residential Section 2008 12 6 50% 8,501$ 10,151$ 4,453$ 812$ 0%77 Sauna/Steam Room - Mechanical - Residential Section 2003 18 9 50% 5,883$ 7,675$ 3,152$ 396$ 0%78 Sauna/Steam Room - Structure - Residential Section 2003 20 10 33% 2,125$ 2,856$ 1,147$ 131$ 0%79 Common Area Washrooms / Changerooms - Res identia l Section 2003/2013 22 6 25% 9,472$ 15,199$ 2,922$ 533$ 0%80 Common Area Washrooms / Changerooms - Commercia l Section 2003 22 15 20% -$ -$ -$ -$ 0%81 Storage Lockers - Residential Section 2003 30 16 5% 5,837$ 8,829$ 3,464$ 263$ 0%82 Mailboxes - Residential Section 2003 40 16 50% 7,631$ 15,511$ 3,662$ 278$ 0%

Common Site Improvements83 Site Services - Sewer and Water - Strata 2003 10 5 50% -$ -$ -$ -$ 0%84 Concrete Paving and Curbs - Strata 2003 35 16 10% -$ -$ -$ -$ 0%85 Pavers - Strata 2003 20 16 20% -$ -$ -$ -$ 0%86 Concrete Patio - Residential Section 2003 35 16 25% 15,877$ 27,840$ 8,386$ 637$ 0%87 Exterior Landscaping - Strata 2015 15 4 20% -$ -$ -$ -$ 0%88 Exterior Landscaping - Residential Section 2003 15 4 20% 7,494$ 10,373$ 2,176$ 582$ 0%89 Ponds / Water Feature - Residential Section 2003 16 13 50% 14,546$ 15,895$ 12,095$ 1,097$ 1%90 Retaining Walls - Concrete - Strata 2003 40 16 33% -$ -$ -$ -$ 0%91 Rooftop Planters - Strata 2003 20 16 50% -$ -$ -$ -$ 0%92 Common Exterior Rail ings - Metal - Strata 2003 30 16 25% -$ -$ -$ -$ 0%93 Exterior Lighting - Strata 2003 20 16 33% -$ -$ -$ -$ 0%94 Depreciation Report - Strata 2019 3 3 100% -$ -$ -$ -$ 0%

TOTAL RESERVES 2,627,873$ 3,788,670$ 1,413,550$ 172,932$ 100%







R-4270 Expected Observed Current Future Current CurrentClassico—Commercial Lifespan Condition Replacement Replacement Reserve Fund RequiredAs of Sep 2019 (Years) (Years) Cost Costs Requirements Contribution

Building - Structural and Architectural1 Substructure and Underground Garage/Parkade - Strata 2003/2016 5 3 2% -$ -$ -$ -$ 0%2 Wall Assemblies - Metal Siding - Strata 2003 50 15 50% -$ -$ -$ -$ 0%3 Wall Assemblies - Concrete Siding - Strata 2003 40 15 15% -$ -$ -$ -$ 0%4 Window Wall Assemblies - High Rise - Strata 2003 40 15 20% -$ -$ -$ -$ 0%5 Window Assemblies - Low Rise - Strata 2003 40 15 50% -$ -$ -$ -$ 0%6 Commercial Storefront - Strata 2003 40 15 100% -$ -$ -$ -$ 0%7 Townhouse Garage Door Assemblies - Metal - Strata 2003 40 15 100% -$ -$ -$ -$ 0%8 Common Door Assemblies - Wood - Residential Section 2003 30 16 25% -$ -$ -$ -$ 0%9 Common Door Assemblies - Metal - Strata 2003 30 16 20% -$ -$ -$ -$ 0%

10 Common Door Assemblies - Metal - Commercial Section 2003 30 16 20% 3,005$ 4,545$ 1,783$ 136$ 2%11 Common Door Assemblies - Metal - Residential Section 2003 30 16 20% -$ -$ -$ -$ 0%12 Common Door Assemblies - Metal and Glass - Strata 2003 30 16 50% -$ -$ -$ -$ 0%13 Common Door Assemblies - Metal and Glass - Residential Sectio 2003 30 0 20% -$ -$ -$ -$ 0%14 Common Door Assemblies - Sliding Glass - Strata 2003 35 16 50% -$ -$ -$ -$ 0%15 Caulking and Weather-Stripping / Maint & Repair - Strata 2003 12 6 33% -$ -$ -$ -$ 0%16 Expansion Joint Caulking / Maint & Repair - Strata 2003 16 8 50% -$ -$ -$ -$ 0%17 Balcony Floor Construction - Concrete - Strata 2016 24 3 50% -$ -$ -$ -$ 0%18 Terraces - Strata 2003 30 15 25% -$ -$ -$ -$ 0%19 Balcony Rail ings - Strata 2003 25 15 25% -$ -$ -$ -$ 0%20 Roof Assembly - High-Rise - EPDM Membrane - Strata 2003 18 15 100% -$ -$ -$ -$ 0%21 Roof Assembly - Commercial/Townhouse - EPDM Membrane - Strata 2003 18 15 100% -$ -$ -$ -$ 0%22 Roof Access Hatch - Commercial/Townhouse - Strata 2003 36 15 100% -$ -$ -$ -$ 0%23 Metal Fireplace Chimney/Vent - Strata 2003 20 15 50% -$ -$ -$ -$ 0%24 Skylights - Strata 2003 36 15 100% -$ -$ -$ -$ 0%25 Canopy Repair - Metal/Glass - Strata 2003 5 2 10% -$ -$ -$ -$ 0%

Building - Finishes and Decoration26 Exterior Building Painting - Strata 2018 18 1 100% -$ -$ -$ -$ 0%27 Balcony Floor Finish - Strata 2016 15 3 100% -$ -$ -$ -$ 0%28 Parkade Floor Coating - Strata 2003 20 15 50% -$ -$ -$ -$ 0%29 Underground Garage Markings - Strata 2003 18 9 100% -$ -$ -$ -$ 0%30 Garage Insulation - Strata 2003 50 16 50% -$ -$ -$ -$ 0%31 Security Gates - Strata 2003 22 15 100% -$ -$ -$ -$ 0%32 Parkade Lighting - Strata 2017 20 2 100% -$ -$ -$ -$ 0%33 Interior Common Corridor Painting - Strata 2003 16 8 100% -$ -$ -$ -$ 0%34 Interior Common Corridor Painting - Commercial Section 2003 16 8 100% 6,375$ 8,076$ 3,390$ 474$ 7%35 Interior Common Corridor Painting - Residential Section 2003 16 8 100% -$ -$ -$ -$ 0%36 Interior Common Corridor Wallpaper - Residential Section 2003 15 5 50% -$ -$ -$ -$ 0%37 Interior Stairwell Painting - Commercial Section 2003 22 11 100% 1,012$ 1,401$ 551$ 58$ 1%38 Interior Stairwell Painting - Residential Section 2003 22 11 50% -$ -$ -$ -$ 0%39 Interior Common Area Flooring - Carpet - Residential Section 2003 18 9 67% -$ -$ -$ -$ 0%40 Interior Common Area Flooring - Commercial Section 2003 20 10 33% 8,153$ 10,956$ 4,402$ 503$ 7%41 Interior Common Area Flooring - Tile - Residential Section 2015 25 4 50% -$ -$ -$ -$ 0%42 Interior Common Area Lighting - Strata 2003 20 16 33% -$ -$ -$ -$ 0%43 Interior Common Area Lighting - Commercial Section 2015 20 4 33% 2,912$ 4,673$ 659$ 176$ 3%44 Interior Common Area Lighting - Residential Section 2003 20 10 33% -$ -$ -$ -$ 0%45 Lobby Renovation - Residential Section 2018 15 1 33% -$ -$ -$ -$ 0%46 Elevator Cab Renovation - Commercial Section 2003 22 16 50% 4,454$ 5,318$ 3,391$ 258$ 4%47 Elevator Cab Renovation - Residential Section 2018 22 8 50% -$ -$ -$ -$ 0%

BENCHMARK ANALYSIS

Year of Acquisition

Budget Percentage

Contribution Weight




47 Elevator Cab Renovation - Residential Section 2018 22 8 50% -$ -$ -$ -$ 0%

Building - Mechanical Systems48 Sump Pumps / Drains and Controls - Strata 2016 15 3 50% -$ -$ -$ -$ 0%49 Domestic Cold Water Supply - Commercial Section 2003 25 16 10% 15,738$ 20,534$ 10,790$ 820$ 12%50 Domestic Hot and Cold Water Supply - Residential Section 2003 5 2 6% -$ -$ -$ -$ 0%51 Sprinkler System - Strata 2003 30 16 10% -$ -$ -$ -$ 0%52 Heating System - Boiler - Residential Section 2008/2014 20 5 50% -$ -$ -$ -$ 0%53 Heating System - Electric Baseboard - Strata 2003 40 16 50% -$ -$ -$ -$ 0%54 Heating System - Hot Water Storage Tanks - Residential Section 2008/2014 18 5 100% -$ -$ -$ -$ 0%55 Make-up Air Handling Unit - Commercial Section 2003 20 16 33% 22,989$ 25,875$ 18,964$ 1,441$ 21%56 Make-up Air Handling Unit - Residential Section 2003 20 16 33% -$ -$ -$ -$ 0%57 Special and Exhaust Equipment - Residential Section 2003 18 16 50% -$ -$ -$ -$ 0%58 Garbage Handling System - Residential Section 2003 20 16 33% -$ -$ -$ -$ 0%59 Elevator Modernization - Traction - Residential Section 2003 30 16 40% -$ -$ -$ -$ 0%60 Elevator Modernization - Hydraulic - Commercial Section 2003 25 16 40% 45,345$ 59,165$ 31,088$ 2,363$ 34%

Building - Electrical Systems61 Electrical Distribution System and Fixtures - Strata 2003 35 16 5% -$ -$ -$ -$ 0%62 Entry System - Intercom - Commercial Section 2010 18 9 50% 4,488$ 5,856$ 2,405$ 302$ 4%63 Entry System - Intercom - Residential Section 2003 18 15 33% -$ -$ -$ -$ 0%64 Security / Surveil lance System - Strata 2003 8 4 50% -$ -$ -$ -$ 0%65 Fire Alarm System - Strata 2003 15 12 25% -$ -$ -$ -$ 0%66 Gas Detectors - Strata 2003 8 4 33% -$ -$ -$ -$ 0%67 Emergency Generator - Strata 2003 35 16 25% -$ -$ -$ -$ 0%

Building - Amenities68 Amenity Rooms - Residential Section 2003/2012 25 7 33% -$ -$ -$ -$ 0%69 Exercise Room - Residential Section 2003 20 10 25% -$ -$ -$ -$ 0%70 Exercise Equipment - Residential Section 2003/2013 4 2 10% -$ -$ -$ -$ 0%71 Pool - Mechanical - Residential Section 2003/2013 10 5 100% -$ -$ -$ -$ 0%72 Pool - Structure - Residential Section 2008 12 6 25% -$ -$ -$ -$ 0%73 Pool - Furnishings - Residential Section 2003 10 5 100% -$ -$ -$ -$ 0%74 Indoor Pool Room - Residential Section 2003 20 10 33% -$ -$ -$ -$ 0%75 Hot Tub - Mechanical - Residential Section 2003/2013 18 6 100% -$ -$ -$ -$ 0%76 Hot Tub - Structure - Residential Section 2008 12 6 50% -$ -$ -$ -$ 0%77 Sauna/Steam Room - Mechanical - Residential Section 2003 18 9 50% -$ -$ -$ -$ 0%78 Sauna/Steam Room - Structure - Residential Section 2003 20 10 33% -$ -$ -$ -$ 0%79 Common Area Washrooms / Changerooms - Res identia l Section 2003/2013 22 6 25% -$ -$ -$ -$ 0%80 Common Area Washrooms / Changerooms - Commercia l Section 2003 22 15 20% 7,575$ 9,316$ 5,449$ 437$ 6%81 Storage Lockers - Residential Section 2003 30 16 5% -$ -$ -$ -$ 0%82 Mailboxes - Residential Section 2003 40 16 50% -$ -$ -$ -$ 0%

Common Site Improvements83 Site Services - Sewer and Water - Strata 2003 10 5 50% -$ -$ -$ -$ 0%84 Concrete Paving and Curbs - Strata 2003 35 16 10% -$ -$ -$ -$ 0%85 Pavers - Strata 2003 20 16 20% -$ -$ -$ -$ 0%86 Concrete Patio - Residential Section 2003 35 16 25% -$ -$ -$ -$ 0%87 Exterior Landscaping - Strata 2015 15 4 20% -$ -$ -$ -$ 0%88 Exterior Landscaping - Residential Section 2003 15 4 20% -$ -$ -$ -$ 0%89 Ponds / Water Feature - Residential Section 2003 16 13 50% -$ -$ -$ -$ 0%90 Retaining Walls - Concrete - Strata 2003 40 16 33% -$ -$ -$ -$ 0%91 Rooftop Planters - Strata 2003 20 16 50% -$ -$ -$ -$ 0%92 Common Exterior Rail ings - Metal - Strata 2003 30 16 25% -$ -$ -$ -$ 0%93 Exterior Lighting - Strata 2003 20 16 33% -$ -$ -$ -$ 0%94 Depreciation Report - Strata 2019 3 3 100% -$ -$ -$ -$ 0%

TOTAL RESERVES 122,045$ 155,714$ 82,873$ 6,968$ 100%




5.2 30-Year Reserve Fund Projection

The 30-Year Reserve Fund Projection recommends a funding plan and shows forecasted cash flows in detail. It contains an abridged Benchmark Analysis for each year, comparing it to the recommended plan to analyze deficiency of the fund. Please note the following definitions.

Minimum Balance The lowest allowable Closing Balance for each year, increasing with CPI inflation. A Special Assessment is triggered when the fund would otherwise fall below the Minimum Balance.

Opening Balance The reserve fund position at the beginning of each fiscal year. This includes any monetary resources marked for reserve purposes and may include multiple accounts, including accounts that are inaccessible due to investing strategies.

Recommended Annual Contribution The total recommended annual reserve fund contribution each year, excluding interest.

Special Assessment The amount required each year to maintain the reserve fund’s Minimum Balance. A Special Assessment is a one-time, unique contribution to the reserve fund.

Interest Income Expected interest from all reserve fund investments, assuming that all expenditures of the given year occur before any interest is earned.

Closing Balance The reserve fund position at the end of each fiscal year, carried forward to the next year.

Benchmark Annual Contribution The amount contributed each year in a benchmark scenario. The first year’s Benchmark Annual Contribution will match the Benchmark Analysis’ Current Required Contribution.

Benchmark Closing Balance The Current Reserve Fund Requirement (see Benchmark Analysis) for the following year’s abridged Benchmark Analysis.

Reserve Fund Deficiency The difference between the Closing Balance and the Benchmark Closing Balance.

Deficiency/Contribution Quotient (DCQ) A stable measure of reserve fund performance. See section 5.4 for details.




30-Year Reserve Fund Projection—Adequate Funding Model—Strata (Joint)

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - ADEQUATE FUNDING - Strata (Joint) Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) 50,000.00$

Study Year: 2019 Inflation (CPI) 1.70% R-4270Construction: 2003 Fisca l Year End Aug 31Number of Years in Study: 30

Sep 2019- Sep 2020- Sep 2021- Sep 2022- Sep 2023- Sep 2024- Sep 2025- Sep 2026- Sep 2027- Sep 2028- Sep 2029- Sep 2030- Sep 2031- Sep 2032- Sep 2033- Sep 2034-Aug 2020 Aug 2021 Aug 2022 Aug 2023 Aug 2024 Aug 2025 Aug 2026 Aug 2027 Aug 2028 Aug 2029 Aug 2030 Aug 2031 Aug 2032 Aug 2033 Aug 2034 Aug 2035

256,800 352,800 1,007,300 1,176,300 704,900 746,700 796,900 975,000 1,191,100 1,480,400 1,795,900 1,930,100 2,283,800 2,386,500 2,781,300 2,768,3000.00% 45.32% 33.92% 17.73% 6.45% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%

103,200 150,000 200,900 236,500 251,800 260,600 269,700 279,100 288,900 299,000 309,500 320,300 331,500 343,100 355,100 367,600

500,0001.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%2,500 4,500 15,000 8,500 10,300 12,700 18,500 24,000 31,300 39,400 42,600 51,600 54,000 64,100 63,400 67,500

362,500 1,007,300 1,223,300 1,421,300 967,000 1,020,000 1,085,100 1,278,100 1,511,300 1,818,800 2,148,000 2,302,000 2,669,300 2,793,700 3,199,900 3,203,300

9,700 0 46,900 716,400 220,300 223,100 110,100 87,000 30,900 22,900 217,900 18,200 282,900 12,400 431,600 268,200

352,800 1,007,300 1,176,300 704,900 746,700 796,900 975,000 1,191,100 1,480,400 1,795,900 1,930,100 2,283,800 2,386,500 2,781,300 2,768,300 2,935,100

244,800 244,500 243,600 249,800 244,400 243,000 239,800 245,000 249,600 254,100 261,400 266,100 274,300 279,100 289,800 298,3002,882,700 3,164,200 3,409,100 2,986,200 3,068,100 3,156,100 3,368,100 3,614,600 3,930,100 4,266,800 4,419,600 4,786,300 4,899,300 5,298,100 5,287,600 5,453,200

(2,529,900) (2,156,800) (2,232,800) (2,281,300) (2,321,400) (2,359,300) (2,393,100) (2,423,500) (2,449,700) (2,470,900) (2,489,500) (2,502,500) (2,512,900) (2,516,700) (2,519,300) (2,518,100)

23.9 14.0 10.3 9.3 8.9 8.6 8.3 8.0 7.6 7.3 7.1 6.7 6.5 6.2 6.0 5.8

Idea l Clos ing Ba lance

Reserve Fund Deficiency

Deficiency/Contribution Quotient (DCQ)

Total Expenditures

Closing Balance

Idea l Annual ContributionDEFICIENCY ANALYSIS

Interest RateInterest Income

Total Cash Resources

Loan DrawsSpecia l AssessmentTransfer From OperatingOther Income

Recommended Annual ContributionRecommended Annual Contribution IncreaseOPENING BALANCE




30-Year Reserve Fund Projection—Adequate Funding Model—Strata (Joint)

RESERVE FUND PROJECTION - 30 YEAR - ADEQUATE FUNDING - Strata (Joint) (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30

Sep 2035- Sep 2036- Sep 2037- Sep 2038- Sep 2039- Sep 2040- Sep 2041- Sep 2042- Sep 2043- Sep 2044- Sep 2045- Sep 2046- Sep 2047- Sep 2048- Sep 2049-Aug 2036 Aug 2037 Aug 2038 Aug 2039 Aug 2040 Aug 2041 Aug 2042 Aug 2043 Aug 2044 Aug 2045 Aug 2046 Aug 2047 Aug 2048 Aug 2049 Aug 2050

2,935,100 3,394,800 3,696,800 3,910,200 3,666,400 4,166,000 3,368,600 3,840,200 4,410,800 4,546,200 499,100 1,020,000 1,176,800 1,718,000 2,295,2003.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50% 3.50%

380,400 393,700 407,500 421,800 436,500 451,800 467,600 484,000 500,900 518,500 536,600 555,400 574,900 595,000 615,800

2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%79,200 86,800 92,100 85,300 98,000 76,700 88,700 103,200 106,400 0 12,700 16,300 30,100 44,700 55,900

3,394,800 3,875,400 4,196,400 4,417,300 4,201,000 4,694,500 3,924,900 4,427,400 5,018,100 5,064,700 1,048,400 1,591,800 1,781,700 2,357,700 2,966,900

0 178,600 286,200 750,900 35,000 1,325,900 84,700 16,600 471,900 4,565,600 28,400 415,000 63,600 62,500 223,800

3,394,800 3,696,800 3,910,200 3,666,400 4,166,000 3,368,600 3,840,200 4,410,800 4,546,200 499,100 1,020,000 1,176,800 1,718,000 2,295,200 2,743,100

303,400 310,900 320,000 335,700 341,900 365,400 372,700 379,300 392,100 461,600 469,900 483,300 492,400 501,600 513,1005,903,800 6,190,800 6,383,900 6,120,900 6,592,100 5,773,800 6,215,400 6,745,400 6,835,000 2,792,300 3,308,400 3,454,800 3,975,100 4,519,900 4,925,100

(2,509,000) (2,494,000) (2,473,800) (2,454,500) (2,426,100) (2,405,200) (2,375,200) (2,334,600) (2,288,700) (2,293,200) (2,288,300) (2,278,100) (2,257,100) (2,224,700) (2,182,000)

5.5 5.2 5.0 4.8 4.5 4.6 4.3 4.0 3.8 4.4 4.2 4.0 3.7 3.5 3.2




Total Expenditures

Closing Balance




Recommended Annual Contribution IncreaseRecommended Annual ContributionLoan DrawsSpecia l AssessmentTransfer From OperatingOther Income

OPENING BALANCE




30-Year Reserve Fund Projection—Component Costs—Strata (Joint)

ADEQUATE FUNDINGSep 2019- Sep 2020- Sep 2021- Sep 2022- Sep 2023- Sep 2024- Sep 2025- Sep 2026- Sep 2027- Sep 2028- Sep 2029- Sep 2030- Sep 2031- Sep 2032- Sep 2033- Sep 2034-Aug 2020 Aug 2021 Aug 2022 Aug 2023 Aug 2024 Aug 2025 Aug 2026 Aug 2027 Aug 2028 Aug 2029 Aug 2030 Aug 2031 Aug 2032 Aug 2033 Aug 2034 Aug 2035

1 Substructure and Underground Garage/Parkade - Strata 5 3 44,200 100% 46,900 54,400 63,1002 Wal l Assembl ies - Meta l Siding - Strata 50 15 210,600 100%3 Wal l Assembl ies - Concrete Siding - Strata 40 15 68,900 100%4 Window Wal l Assembl ies - High Rise - Strata 40 15 1,505,800 100%5 Window Assembl ies - Low Rise - Strata 40 15 240,800 100%6 Commercia l Storefront - Strata 40 15 160,900 100%7 Townhouse Garage Door Assembl ies - Meta l - Strata 40 15 11,800 100%8 Common Door Assembl ies - Wood - Res identia l Section 30 16 0 0% 09 Common Door Assembl ies - Meta l - Strata 30 16 4,600 100% 7,000

10 Common Door Assembl ies - Meta l - Commercia l Section 30 16 0 0% 011 Common Door Assembl ies - Meta l - Res identia l Section 30 16 0 0% 012 Common Door Assembl ies - Meta l and Glass - Strata 30 16 20,300 100% 30,60013 Common Door Assembl ies - Meta l and Glass - Res identia l Sectio 30 0 0 0%14 Common Door Assembl ies - Sl iding Glass - Strata 35 16 224,100 100%15 Caulking and Weather-Stripping / Maint & Repair - Strata 12 6 82,500 100% 98,50016 Expans ion Joint Caulking / Maint & Repair - Strata 16 8 12,500 100% 15,80017 Balcony Floor Construction - Concrete - Strata 24 3 93,600 100%18 Terraces - Strata 30 15 157,300 100% 245,10019 Balcony Ra i l ings - Strata 25 15 162,100 100% 217,90020 Roof Assembly - High-Rise - EPDM Membrane - Strata 18 15 210,000 100% 229,50021 Roof Assembly - Commercia l/Townhouse - EPDM Membrane - Str 18 15 390,000 100% 426,20022 Roof Access Hatch - Commercia l/Townhouse - Strata 36 15 2,100 100%23 Metal Fi replace Chimney/Vent - Strata 20 15 100,700 100% 116,80024 Skyl ights - Strata 36 15 7,300 100%25 Canopy Repair - Meta l/Glass - Strata 5 2 8,400 100% 9,200 10,700 12,40026 Exterior Bui lding Pa inting - Strata 18 1 63,800 100%27 Balcony Floor Finish - Strata 15 3 121,600 100% 173,40028 Parkade Floor Coating - Strata 20 15 86,600 100% 100,40029 Underground Garage Markings - Strata 18 9 7,800 100% 10,20030 Garage Insulation - Strata 50 16 39,100 100%31 Securi ty Gates - Strata 22 15 26,500 100% 32,60032 Parkade Lighting - Strata 20 2 30,000 100%33 Interior Common Corridor Pa inting - Strata 16 8 3,400 100% 4,30034 Interior Common Corridor Pa inting - Commercia l Section 16 8 0 0% 035 Interior Common Corridor Pa inting - Res identia l Section 16 8 0 0% 036 Interior Common Corridor Wal lpaper - Res identia l Section 15 5 0 0% 037 Interior Sta i rwel l Pa inting - Commercia l Section 22 11 0 0% 038 Interior Sta i rwel l Pa inting - Res identia l Section 22 11 0 0% 039 Interior Common Area Flooring - Carpet - Res identia l Section 18 9 0 0% 040 Interior Common Area Flooring - Commercia l Section 20 10 0 0% 041 Interior Common Area Flooring - Ti le - Res identia l Section 25 4 0 0%42 Interior Common Area Lighting - Strata 20 16 7,200 100% 8,20043 Interior Common Area Lighting - Commercia l Section 20 4 0 0%44 Interior Common Area Lighting - Res identia l Section 20 10 0 0% 045 Lobby Renovation - Res identia l Section 15 1 0 0% 046 Elevator Cab Renovation - Commercia l Section 22 16 0 0% 047 Elevator Cab Renovation - Res identia l Section 22 8 0 0% 0

RESERVE COMPONENTS

Expected Lifespan (years)

Observed Condition (years)

Current Replacement

Cost

Strata (Joint) Section

Responsibility





47 Elevator Cab Renovation - Res identia l Section 22 8 0 0% 048 Sump Pumps / Dra ins and Controls - Strata 15 3 3,400 100% 4,90049 Domestic Cold Water Supply - Commercia l Section 25 16 0 0% 050 Domestic Hot and Cold Water Supply - Res identia l Section 5 2 0 0% 0 0 051 Sprinkler System - Strata 30 16 236,300 100% 357,40052 Heating System - Boi ler - Res identia l Section 20 5 0 0% 053 Heating System - Electric Baseboard - Strata 40 16 3,100 100%54 Heating System - Hot Water Storage Tanks - Res identia l Section 18 5 0 0% 055 Make-up Air Handl ing Unit - Commercia l Section 20 16 0 0% 056 Make-up Air Handl ing Unit - Res identia l Section 20 16 0 0% 057 Specia l and Exhaust Equipment - Res identia l Section 18 16 0 0% 058 Garbage Handl ing System - Res identia l Section 20 16 0 0% 059 Elevator Modernization - Traction - Res identia l Section 30 16 0 0% 060 Elevator Modernization - Hydraul ic - Commercia l Section 25 16 0 0% 061 Electrica l Dis tribution System and Fixtures - Strata 35 16 46,800 100%62 Entry System - Intercom - Commercia l Section 18 9 0 0% 063 Entry System - Intercom - Res identia l Section 18 15 0 0% 064 Securi ty / Survei l lance System - Strata 8 4 11,300 100% 12,700 16,10065 Fi re Alarm System - Strata 15 12 37,500 100% 41,00066 Gas Detectors - Strata 8 4 8,100 100% 9,100 11,50067 Emergency Generator - Strata 35 16 48,800 100%68 Amenity Rooms - Res identia l Section 25 7 0 0%69 Exercise Room - Res identia l Section 20 10 0 0% 070 Exercise Equipment - Res identia l Section 4 2 0 0% 0 0 0 071 Pool - Mechanica l - Res identia l Section 10 5 0 0% 0 072 Pool - Structure - Res identia l Section 12 6 0 0% 073 Pool - Furnishings - Res identia l Section 10 5 0 0% 0 074 Indoor Pool Room - Res identia l Section 20 10 0 0% 075 Hot Tub - Mechanica l - Res identia l Section 18 6 0 0% 076 Hot Tub - Structure - Res identia l Section 12 6 0 0% 077 Sauna/Steam Room - Mechanica l - Res identia l Section 18 9 0 0% 078 Sauna/Steam Room - Structure - Res identia l Section 20 10 0 0% 079 Common Area Washrooms / Changerooms - Res identia l Section 22 6 0 0%80 Common Area Washrooms / Changerooms - Commercia l Section 22 15 0 0% 081 Storage Lockers - Res identia l Section 30 16 0 0% 082 Mai lboxes - Res identia l Section 40 16 0 0%83 Si te Services - Sewer and Water - Strata 10 5 5,100 100% 6,000 8,00084 Concrete Paving and Curbs - Strata 35 16 108,400 100%85 Pavers - Strata 20 16 51,600 100% 58,00086 Concrete Patio - Res identia l Section 35 16 0 0%87 Exterior Landscaping - Strata 15 4 13,200 100% 18,20088 Exterior Landscaping - Res identia l Section 15 4 0 0% 089 Ponds / Water Feature - Res identia l Section 16 13 0 0% 090 Reta ining Wal ls - Concrete - Strata 40 16 27,100 100%91 Rooftop Planters - Strata 20 16 67,500 100% 76,00092 Common Exterior Ra i l ings - Meta l - Strata 30 16 24,200 100% 36,60093 Exterior Lighting - Strata 20 16 50,000 100% 56,30094 Depreciation Report - Strata 3 3 9,700 100% 9,700 10,600 11,600 12,700 13,800 15,100

9,700 0 46,900 716,400 220,300 223,100 110,100 87,000 30,900 22,900 217,900 18,200 282,900 12,400 431,600 268,200Total Expenditures

Loan Repayment





ADEQUATE FUNDING PROJECTED FUTURE EXPENDITURES (CONTINUED)Sep 2035- Sep 2036- Sep 2037- Sep 2038- Sep 2039- Sep 2040- Sep 2041- Sep 2042- Sep 2043- Sep 2044- Sep 2045- Sep 2046- Sep 2047- Sep 2048- Sep 2049-Aug 2036 Aug 2037 Aug 2038 Aug 2039 Aug 2040 Aug 2041 Aug 2042 Aug 2043 Aug 2044 Aug 2045 Aug 2046 Aug 2047 Aug 2048 Aug 2049 Aug 2050

1 Substructure and Underground Garage/Parkade - Strata 5 3 44200 100% 73,100 84,700 98,2002 Wal l Assembl ies - Meta l Siding - Strata 50 15 210600 100%3 Wal l Assembl ies - Concrete Siding - Strata 40 15 68900 100% 144,2004 Window Wal l Assembl ies - High Rise - Strata 40 15 1505800 100% 3,152,8005 Window Assembl ies - Low Rise - Strata 40 15 240800 100% 504,2006 Commercia l Storefront - Strata 40 15 160900 100% 336,9007 Townhouse Garage Door Assembl ies - Meta l - Strata 40 15 11800 100% 24,6008 Common Door Assembl ies - Wood - Res identia l Section 30 16 0 0%9 Common Door Assembl ies - Meta l - Strata 30 16 4600 100%

10 Common Door Assembl ies - Meta l - Commercia l Section 30 16 0 0%11 Common Door Assembl ies - Meta l - Res identia l Section 30 16 0 0%12 Common Door Assembl ies - Meta l and Glass - Strata 30 16 20300 100%13 Common Door Assembl ies - Meta l and Glass - Res identia l Sectio 30 0 0 0% 014 Common Door Assembl ies - Sl iding Glass - Strata 35 16 224100 100% 393,00015 Caulking and Weather-Stripping / Maint & Repair - Strata 12 6 82500 100% 140,500 200,20016 Expans ion Joint Caulking / Maint & Repair - Strata 16 8 12500 100% 25,40017 Balcony Floor Construction - Concrete - Strata 24 3 93600 100% 174,00018 Terraces - Strata 30 15 157300 100%19 Balcony Ra i l ings - Strata 25 15 162100 100%20 Roof Assembly - High-Rise - EPDM Membrane - Strata 18 15 210000 100% 390,70021 Roof Assembly - Commercia l/Townhouse - EPDM Membrane - Str 18 15 390000 100% 725,50022 Roof Access Hatch - Commercia l/Townhouse - Strata 36 15 2100 100% 4,00023 Metal Fi replace Chimney/Vent - Strata 20 15 100700 100% 210,90024 Skyl ights - Strata 36 15 7300 100% 13,60025 Canopy Repair - Meta l/Glass - Strata 5 2 8400 100% 14,300 16,600 19,30026 Exterior Bui lding Pa inting - Strata 18 1 63800 100% 105,50027 Balcony Floor Finish - Strata 15 3 121600 100% 270,20028 Parkade Floor Coating - Strata 20 15 86600 100% 181,30029 Underground Garage Markings - Strata 18 9 7800 100% 17,40030 Garage Insulation - Strata 50 16 39100 100%31 Securi ty Gates - Strata 22 15 26500 100% 62,50032 Parkade Lighting - Strata 20 2 30000 100% 51,10033 Interior Common Corridor Pa inting - Strata 16 8 3400 100% 7,00034 Interior Common Corridor Pa inting - Commercia l Section 16 8 0 0% 035 Interior Common Corridor Pa inting - Res identia l Section 16 8 0 0% 036 Interior Common Corridor Wal lpaper - Res identia l Section 15 5 0 0% 037 Interior Sta i rwel l Pa inting - Commercia l Section 22 11 0 0%38 Interior Sta i rwel l Pa inting - Res identia l Section 22 11 0 0%39 Interior Common Area Flooring - Carpet - Res identia l Section 18 9 0 0% 040 Interior Common Area Flooring - Commercia l Section 20 10 0 0% 041 Interior Common Area Flooring - Ti le - Res identia l Section 25 4 0 0% 042 Interior Common Area Lighting - Strata 20 16 7200 100% 14,70043 Interior Common Area Lighting - Commercia l Section 20 4 0 0% 044 Interior Common Area Lighting - Res identia l Section 20 10 0 0% 045 Lobby Renovation - Res identia l Section 15 1 0 0% 046 Elevator Cab Renovation - Commercia l Section 22 16 0 0% 047 Elevator Cab Renovation - Res identia l Section 22 8 0 0%

Strata (Joint) Section

ResponsibilityRESERVE COMPONENTS



Current Replacement

Cost





47 Elevator Cab Renovation - Res identia l Section 22 8 0 0%48 Sump Pumps / Dra ins and Controls - Strata 15 3 3400 100% 7,60049 Domestic Cold Water Supply - Commercia l Section 25 16 0 0%50 Domestic Hot and Cold Water Supply - Res identia l Section 5 2 0 0% 0 0 051 Sprinkler System - Strata 30 16 236300 100%52 Heating System - Boi ler - Res identia l Section 20 5 0 0%53 Heating System - Electric Baseboard - Strata 40 16 3100 100% 6,20054 Heating System - Hot Water Storage Tanks - Res identia l Section 18 5 0 0%55 Make-up Air Handl ing Unit - Commercia l Section 20 16 0 0% 056 Make-up Air Handl ing Unit - Res identia l Section 20 16 0 0% 057 Specia l and Exhaust Equipment - Res identia l Section 18 16 0 0% 058 Garbage Handl ing System - Res identia l Section 20 16 0 0% 059 Elevator Modernization - Traction - Res identia l Section 30 16 0 0%60 Elevator Modernization - Hydraul ic - Commercia l Section 25 16 0 0%61 Electrica l Dis tribution System and Fixtures - Strata 35 16 46800 100% 82,10062 Entry System - Intercom - Commercia l Section 18 9 0 0% 063 Entry System - Intercom - Res identia l Section 18 15 0 0% 064 Securi ty / Survei l lance System - Strata 8 4 11300 100% 20,400 25,90065 Fi re Alarm System - Strata 15 12 37500 100% 63,80066 Gas Detectors - Strata 8 4 8100 100% 14,600 18,50067 Emergency Generator - Strata 35 16 48800 100% 85,60068 Amenity Rooms - Res identia l Section 25 7 0 0% 069 Exercise Room - Res identia l Section 20 10 0 0% 070 Exercise Equipment - Res identia l Section 4 2 0 0% 0 0 0 071 Pool - Mechanica l - Res identia l Section 10 5 0 0% 072 Pool - Structure - Res identia l Section 12 6 0 0% 0 073 Pool - Furnishings - Res identia l Section 10 5 0 0% 074 Indoor Pool Room - Res identia l Section 20 10 0 0% 075 Hot Tub - Mechanica l - Res identia l Section 18 6 0 0% 076 Hot Tub - Structure - Res identia l Section 12 6 0 0% 0 077 Sauna/Steam Room - Mechanica l - Res identia l Section 18 9 0 0% 078 Sauna/Steam Room - Structure - Res identia l Section 20 10 0 0% 079 Common Area Washrooms / Changerooms - Res identia l Section 22 6 0 0% 080 Common Area Washrooms / Changerooms - Commercia l Section 22 15 0 0% 081 Storage Lockers - Res identia l Section 30 16 0 0%82 Mai lboxes - Res identia l Section 40 16 0 0% 083 Si te Services - Sewer and Water - Strata 10 5 5100 100% 10,80084 Concrete Paving and Curbs - Strata 35 16 108400 100% 190,10085 Pavers - Strata 20 16 51600 100% 104,80086 Concrete Patio - Res identia l Section 35 16 0 0% 087 Exterior Landscaping - Strata 15 4 13200 100% 28,40088 Exterior Landscaping - Res identia l Section 15 4 0 0% 089 Ponds / Water Feature - Res identia l Section 16 13 0 0% 090 Reta ining Wal ls - Concrete - Strata 40 16 27100 100% 55,10091 Rooftop Planters - Strata 20 16 67500 100% 137,20092 Common Exterior Ra i l ings - Meta l - Strata 30 16 24200 100%93 Exterior Lighting - Strata 20 16 50000 100% 101,70094 Depreciation Report - Strata 3 3 9700 100% 16,500 18,100 19,700 21,600 23,600

0 178,600 286,200 750,900 35,000 1,325,900 84,700 16,600 471,900 4,565,600 28,400 415,000 63,600 62,500 223,800Total Expenditures

Loan Repayment




30-Year Reserve Fund Projection—Adequate Funding Model—Residential

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - ADEQUATE FUNDING - Residential Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) 50,000.00$



1,289,400 1,443,100 1,171,600 1,343,800 1,230,300 1,352,400 1,554,000 1,732,600 1,973,200 1,926,900 1,903,000 2,007,100 2,256,200 2,535,200 2,489,600 366,3000.11% 13.63% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%

140,800 160,000 165,200 170,600 176,100 181,800 187,700 193,800 200,100 206,700 213,400 220,300 227,500 234,900 242,500 250,400

(450,000)1.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%

12,900 18,500 18,200 19,200 24,600 32,400 40,600 46,800 45,400 44,600 47,200 53,500 60,700 59,300 3,300 3,900

1,443,100 1,171,600 1,355,000 1,533,600 1,431,000 1,566,600 1,782,300 1,973,200 2,218,700 2,178,200 2,163,600 2,280,900 2,544,300 2,829,300 2,735,300 620,600

0 0 11,200 303,300 78,500 12,700 49,700 0 291,800 275,100 156,500 24,800 9,100 339,700 2,369,000 220,700

1,443,100 1,171,600 1,343,800 1,230,300 1,352,400 1,554,000 1,732,600 1,973,200 1,926,900 1,903,000 2,007,100 2,256,200 2,535,200 2,489,600 366,300 399,900

172,900 174,100 174,500 177,600 175,300 173,200 171,000 173,900 180,700 187,400 192,700 196,300 199,800 207,600 243,300 250,4001,600,600 1,795,300 1,986,400 1,889,300 2,024,200 2,233,300 2,413,500 2,652,600 2,605,200 2,580,500 2,682,200 2,925,500 3,194,900 3,139,900 1,035,000 1,086,700

(157,500) (623,700) (642,600) (659,000) (671,800) (679,400) (681,000) (679,400) (678,300) (677,400) (675,100) (669,300) (659,700) (650,300) (668,700) (686,800)

1.0 3.5 3.5 3.5 3.3 3.2 3.0 2.8 2.8 2.7 2.6 2.4 2.3 2.2 2.7 2.7




Total Expenditures

Closing Balance









RESERVE FUND PROJECTION - 30 YEAR - ADEQUATE FUNDING - Residential (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


399,900 653,600 938,200 719,500 968,700 1,277,300 1,425,400 1,768,400 1,717,700 1,889,900 2,144,600 2,532,000 2,486,900 2,444,500 2,847,2003.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25%

258,500 266,900 275,600 284,500 293,800 303,300 313,200 323,400 333,900 344,700 355,900 367,500 379,400 391,800 404,500

2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%10,400 17,600 11,700 18,000 25,900 29,500 38,300 36,700 40,900 47,300 57,200 55,700 54,300 64,600 69,200

668,800 938,200 1,225,400 1,022,000 1,288,300 1,610,100 1,776,800 2,128,400 2,092,500 2,281,900 2,557,700 2,955,200 2,920,600 2,900,800 3,320,900

15,200 0 505,900 53,300 11,100 184,700 8,500 410,700 202,600 137,300 25,700 468,400 476,100 53,600 284,700

653,600 938,200 719,500 968,700 1,277,300 1,425,400 1,768,400 1,717,700 1,889,900 2,144,600 2,532,000 2,486,900 2,444,500 2,847,200 3,036,100

254,900 259,200 270,300 275,600 280,400 287,700 292,700 303,000 310,900 318,000 323,700 335,500 347,400 354,000 363,9001,355,300 1,651,200 1,446,500 1,706,300 2,021,500 2,174,000 2,516,700 2,465,900 2,635,300 2,883,400 3,258,600 3,201,000 3,145,900 3,529,800 3,696,500

(701,700) (713,000) (727,000) (737,600) (744,200) (748,600) (748,300) (748,200) (745,400) (738,800) (726,600) (714,200) (701,400) (682,600) (660,400)

2.6 2.5 2.5 2.4 2.3 2.2 2.1 2.1 2.0 1.9 1.8 1.7 1.6 1.5 1.4




Total Expenditures

Closing Balance





OPENING BALANCE

30-Year Reserve Fund Projection—Adequate Funding Model—Residential




30-Year Reserve Fund Projection—Component Costs—Residential


1 Substructure and Underground Garage/Parkade - Strata 5 3 0 0% 0 0 02 Wal l Assembl ies - Meta l Siding - Strata 50 15 0 0%3 Wal l Assembl ies - Concrete Siding - Strata 40 15 0 0%4 Window Wal l Assembl ies - High Rise - Strata 40 15 0 0%5 Window Assembl ies - Low Rise - Strata 40 15 0 0%6 Commercia l Storefront - Strata 40 15 0 0%7 Townhouse Garage Door Assembl ies - Meta l - Strata 40 15 0 0%8 Common Door Assembl ies - Wood - Res identia l Section 30 16 41,200 100% 62,4009 Common Door Assembl ies - Meta l - Strata 30 16 0 0% 0

10 Common Door Assembl ies - Meta l - Commercia l Section 30 16 0 0% 011 Common Door Assembl ies - Meta l - Res identia l Section 30 16 20,900 100% 31,60012 Common Door Assembl ies - Meta l and Glass - Strata 30 16 0 0% 013 Common Door Assembl ies - Meta l and Glass - Res identia l Sectio 30 0 11,900 100%14 Common Door Assembl ies - Sl iding Glass - Strata 35 16 0 0%15 Caulking and Weather-Stripping / Maint & Repair - Strata 12 6 0 0% 016 Expans ion Joint Caulking / Maint & Repair - Strata 16 8 0 0% 017 Balcony Floor Construction - Concrete - Strata 24 3 0 0%18 Terraces - Strata 30 15 0 0% 019 Balcony Ra i l ings - Strata 25 15 0 0% 020 Roof Assembly - High-Rise - EPDM Membrane - Strata 18 15 0 0% 021 Roof Assembly - Commercia l/Townhouse - EPDM Membrane - Str 18 15 0 0% 022 Roof Access Hatch - Commercia l/Townhouse - Strata 36 15 0 0%23 Metal Fi replace Chimney/Vent - Strata 20 15 0 0% 024 Skyl ights - Strata 36 15 0 0%25 Canopy Repair - Meta l/Glass - Strata 5 2 0 0% 0 0 026 Exterior Bui lding Pa inting - Strata 18 1 0 0%27 Balcony Floor Finish - Strata 15 3 0 0% 028 Parkade Floor Coating - Strata 20 15 0 0% 029 Underground Garage Markings - Strata 18 9 0 0% 030 Garage Insulation - Strata 50 16 0 0%31 Securi ty Gates - Strata 22 15 0 0% 032 Parkade Lighting - Strata 20 2 0 0%33 Interior Common Corridor Pa inting - Strata 16 8 0 0% 034 Interior Common Corridor Pa inting - Commercia l Section 16 8 0 0% 035 Interior Common Corridor Pa inting - Res identia l Section 16 8 22,300 100% 28,20036 Interior Common Corridor Wal lpaper - Res identia l Section 15 5 54,700 100% 73,50037 Interior Sta i rwel l Pa inting - Commercia l Section 22 11 0 0% 038 Interior Sta i rwel l Pa inting - Res identia l Section 22 11 10,400 100% 14,40039 Interior Common Area Flooring - Carpet - Res identia l Section 18 9 205,000 100% 267,50040 Interior Common Area Flooring - Commercia l Section 20 10 0 0% 041 Interior Common Area Flooring - Ti le - Res identia l Section 25 4 44,300 100%42 Interior Common Area Lighting - Strata 20 16 0 0% 043 Interior Common Area Lighting - Commercia l Section 20 4 0 0%44 Interior Common Area Lighting - Res identia l Section 20 10 38,100 100% 51,30045 Lobby Renovation - Res identia l Section 15 1 22,800 100% 34,40046 Elevator Cab Renovation - Commercia l Section 22 16 0 0% 047 Elevator Cab Renovation - Res identia l Section 22 8 22,000 100% 33,300

RESERVE COMPONENTS



Current Replacement

Cost

Residential Section

Responsibility





47 Elevator Cab Renovation - Res identia l Section 22 8 22,000 100% 33,30048 Sump Pumps / Dra ins and Controls - Strata 15 3 0 0% 049 Domestic Cold Water Supply - Commercia l Section 25 16 0 0% 050 Domestic Hot and Cold Water Supply - Res identia l Section 5 2 208,100 100% 227,400 263,600 305,60051 Sprinkler System - Strata 30 16 0 0% 052 Heating System - Boi ler - Res identia l Section 20 5 130,700 100% 203,60053 Heating System - Electric Baseboard - Strata 40 16 0 0%54 Heating System - Hot Water Storage Tanks - Res identia l Section 18 5 23,200 100% 34,10055 Make-up Air Handl ing Unit - Commercia l Section 20 16 0 0% 056 Make-up Air Handl ing Unit - Res identia l Section 20 16 59,600 100% 67,00057 Specia l and Exhaust Equipment - Res identia l Section 18 16 6,100 100% 6,50058 Garbage Handl ing System - Res identia l Section 20 16 10,200 100% 11,50059 Elevator Modernization - Traction - Res identia l Section 30 16 1,449,100 100% 2,191,80060 Elevator Modernization - Hydraul ic - Commercia l Section 25 16 0 0% 061 Electrica l Dis tribution System and Fixtures - Strata 35 16 0 0%62 Entry System - Intercom - Commercia l Section 18 9 0 0% 063 Entry System - Intercom - Res identia l Section 18 15 54,900 100% 60,00064 Securi ty / Survei l lance System - Strata 8 4 0 0% 0 065 Fi re Alarm System - Strata 15 12 0 0% 066 Gas Detectors - Strata 8 4 0 0% 0 067 Emergency Generator - Strata 35 16 0 0%68 Amenity Rooms - Res identia l Section 25 7 47,400 100%69 Exercise Room - Res identia l Section 20 10 8,100 100% 10,90070 Exercise Equipment - Res identia l Section 4 2 4,400 100% 4,700 5,300 5,900 6,70071 Pool - Mechanica l - Res identia l Section 10 5 8,700 100% 10,000 13,50072 Pool - Structure - Res identia l Section 12 6 28,700 100% 34,30073 Pool - Furnishings - Res identia l Section 10 5 2,300 100% 2,700 3,60074 Indoor Pool Room - Res identia l Section 20 10 9,000 100% 12,10075 Hot Tub - Mechanica l - Res identia l Section 18 6 6,400 100% 9,10076 Hot Tub - Structure - Res identia l Section 12 6 8,500 100% 10,20077 Sauna/Steam Room - Mechanica l - Res identia l Section 18 9 5,900 100% 7,70078 Sauna/Steam Room - Structure - Res identia l Section 20 10 2,100 100% 2,90079 Common Area Washrooms / Changerooms - Res identia l Section 22 6 9,500 100%80 Common Area Washrooms / Changerooms - Commercia l Section 22 15 0 0% 081 Storage Lockers - Res identia l Section 30 16 5,800 100% 8,80082 Mai lboxes - Res identia l Section 40 16 7,600 100%83 Si te Services - Sewer and Water - Strata 10 5 0 0% 0 084 Concrete Paving and Curbs - Strata 35 16 0 0%85 Pavers - Strata 20 16 0 0% 086 Concrete Patio - Res identia l Section 35 16 15,900 100%87 Exterior Landscaping - Strata 15 4 0 0% 088 Exterior Landscaping - Res identia l Section 15 4 7,500 100% 10,40089 Ponds / Water Feature - Res identia l Section 16 13 14,500 100% 15,90090 Reta ining Wal ls - Concrete - Strata 40 16 0 0%91 Rooftop Planters - Strata 20 16 0 0% 092 Common Exterior Ra i l ings - Meta l - Strata 30 16 0 0% 093 Exterior Lighting - Strata 20 16 0 0% 094 Depreciation Report - Strata 3 3 0 0% 0 0 0 0 0 0

0 0 11,200 303,300 78,500 12,700 49,700 0 291,800 275,100 156,500 24,800 9,100 339,700 2,369,000 220,700Total Expenditures

Loan Repayment






1 Substructure and Underground Garage/Parkade - Strata 5 3 0 0% 0 0 02 Wal l Assembl ies - Meta l Siding - Strata 50 15 0 0%3 Wal l Assembl ies - Concrete Siding - Strata 40 15 0 0% 04 Window Wal l Assembl ies - High Rise - Strata 40 15 0 0% 05 Window Assembl ies - Low Rise - Strata 40 15 0 0% 06 Commercia l Storefront - Strata 40 15 0 0% 07 Townhouse Garage Door Assembl ies - Meta l - Strata 40 15 0 0% 08 Common Door Assembl ies - Wood - Res identia l Section 30 16 41200 100%9 Common Door Assembl ies - Meta l - Strata 30 16 0 0%

10 Common Door Assembl ies - Meta l - Commercia l Section 30 16 0 0%11 Common Door Assembl ies - Meta l - Res identia l Section 30 16 20900 100%12 Common Door Assembl ies - Meta l and Glass - Strata 30 16 0 0%13 Common Door Assembl ies - Meta l and Glass - Res identia l Sectio 30 0 11900 100% 28,90014 Common Door Assembl ies - Sl iding Glass - Strata 35 16 0 0% 015 Caulking and Weather-Stripping / Maint & Repair - Strata 12 6 0 0% 0 016 Expans ion Joint Caulking / Maint & Repair - Strata 16 8 0 0% 017 Balcony Floor Construction - Concrete - Strata 24 3 0 0% 018 Terraces - Strata 30 15 0 0%19 Balcony Ra i l ings - Strata 25 15 0 0%20 Roof Assembly - High-Rise - EPDM Membrane - Strata 18 15 0 0% 021 Roof Assembly - Commercia l/Townhouse - EPDM Membrane - Str 18 15 0 0% 022 Roof Access Hatch - Commercia l/Townhouse - Strata 36 15 0 0% 023 Metal Fi replace Chimney/Vent - Strata 20 15 0 0% 024 Skyl ights - Strata 36 15 0 0% 025 Canopy Repair - Meta l/Glass - Strata 5 2 0 0% 0 0 026 Exterior Bui lding Pa inting - Strata 18 1 0 0% 027 Balcony Floor Finish - Strata 15 3 0 0% 028 Parkade Floor Coating - Strata 20 15 0 0% 029 Underground Garage Markings - Strata 18 9 0 0% 030 Garage Insulation - Strata 50 16 0 0%31 Securi ty Gates - Strata 22 15 0 0% 032 Parkade Lighting - Strata 20 2 0 0% 033 Interior Common Corridor Pa inting - Strata 16 8 0 0% 034 Interior Common Corridor Pa inting - Commercia l Section 16 8 0 0% 035 Interior Common Corridor Pa inting - Res identia l Section 16 8 22300 100% 45,30036 Interior Common Corridor Wal lpaper - Res identia l Section 15 5 54700 100% 114,40037 Interior Sta i rwel l Pa inting - Commercia l Section 22 11 0 0%38 Interior Sta i rwel l Pa inting - Res identia l Section 22 11 10400 100%39 Interior Common Area Flooring - Carpet - Res identia l Section 18 9 205000 100% 455,30040 Interior Common Area Flooring - Commercia l Section 20 10 0 0% 041 Interior Common Area Flooring - Ti le - Res identia l Section 25 4 44300 100% 82,50042 Interior Common Area Lighting - Strata 20 16 0 0% 043 Interior Common Area Lighting - Commercia l Section 20 4 0 0% 044 Interior Common Area Lighting - Res identia l Section 20 10 38100 100% 92,60045 Lobby Renovation - Res identia l Section 15 1 22800 100% 53,60046 Elevator Cab Renovation - Commercia l Section 22 16 0 0% 047 Elevator Cab Renovation - Res identia l Section 22 8 22000 100%

Residential Section

ResponsibilityRESERVE COMPONENTS



Current Replacement

Cost





47 Elevator Cab Renovation - Res identia l Section 22 8 22000 100%48 Sump Pumps / Dra ins and Controls - Strata 15 3 0 0% 049 Domestic Cold Water Supply - Commercia l Section 25 16 0 0%50 Domestic Hot and Cold Water Supply - Res identia l Section 5 2 208100 100% 354,300 410,700 476,10051 Sprinkler System - Strata 30 16 0 0%52 Heating System - Boi ler - Res identia l Section 20 5 130700 100%53 Heating System - Electric Baseboard - Strata 40 16 0 0% 054 Heating System - Hot Water Storage Tanks - Res identia l Section 18 5 23200 100%55 Make-up Air Handl ing Unit - Commercia l Section 20 16 0 0% 056 Make-up Air Handl ing Unit - Res identia l Section 20 16 59600 100% 121,10057 Specia l and Exhaust Equipment - Res identia l Section 18 16 6100 100% 11,10058 Garbage Handl ing System - Res identia l Section 20 16 10200 100% 20,70059 Elevator Modernization - Traction - Res identia l Section 30 16 1449100 100%60 Elevator Modernization - Hydraul ic - Commercia l Section 25 16 0 0%61 Electrica l Dis tribution System and Fixtures - Strata 35 16 0 0% 062 Entry System - Intercom - Commercia l Section 18 9 0 0% 063 Entry System - Intercom - Res identia l Section 18 15 54900 100% 102,20064 Securi ty / Survei l lance System - Strata 8 4 0 0% 0 065 Fi re Alarm System - Strata 15 12 0 0% 066 Gas Detectors - Strata 8 4 0 0% 0 067 Emergency Generator - Strata 35 16 0 0% 068 Amenity Rooms - Res identia l Section 25 7 47400 100% 80,70069 Exercise Room - Res identia l Section 20 10 8100 100% 19,60070 Exercise Equipment - Res identia l Section 4 2 4400 100% 7,500 8,500 9,500 10,70071 Pool - Mechanica l - Res identia l Section 10 5 8700 100% 18,10072 Pool - Structure - Res identia l Section 12 6 28700 100% 48,900 69,80073 Pool - Furnishings - Res identia l Section 10 5 2300 100% 4,80074 Indoor Pool Room - Res identia l Section 20 10 9000 100% 21,90075 Hot Tub - Mechanica l - Res identia l Section 18 6 6400 100% 15,50076 Hot Tub - Structure - Res identia l Section 12 6 8500 100% 14,500 20,60077 Sauna/Steam Room - Mechanica l - Res identia l Section 18 9 5900 100% 13,10078 Sauna/Steam Room - Structure - Res identia l Section 20 10 2100 100% 5,20079 Common Area Washrooms / Changerooms - Res identia l Section 22 6 9500 100% 15,20080 Common Area Washrooms / Changerooms - Commercia l Section 22 15 0 0% 081 Storage Lockers - Res identia l Section 30 16 5800 100%82 Mai lboxes - Res identia l Section 40 16 7600 100% 15,50083 Si te Services - Sewer and Water - Strata 10 5 0 0% 084 Concrete Paving and Curbs - Strata 35 16 0 0% 085 Pavers - Strata 20 16 0 0% 086 Concrete Patio - Res identia l Section 35 16 15900 100% 27,80087 Exterior Landscaping - Strata 15 4 0 0% 088 Exterior Landscaping - Res identia l Section 15 4 7500 100% 16,20089 Ponds / Water Feature - Res identia l Section 16 13 14500 100% 25,50090 Reta ining Wal ls - Concrete - Strata 40 16 0 0% 091 Rooftop Planters - Strata 20 16 0 0% 092 Common Exterior Ra i l ings - Meta l - Strata 30 16 0 0%93 Exterior Lighting - Strata 20 16 0 0% 094 Depreciation Report - Strata 3 3 0 0% 0 0 0 0 0

15,200 0 505,900 53,300 11,100 184,700 8,500 410,700 202,600 137,300 25,700 468,400 476,100 53,600 284,700Total Expenditures

Loan Repayment




30-Year Reserve Fund Projection—Adequate Funding Model—Commercial

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - ADEQUATE FUNDING - Commercial Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) -$



81,100 86,400 43,500 50,800 59,100 41,800 50,800 55,000 55,500 57,400 0 0 8,100 18,100 28,600 35,0000.02% 33.93% 11.00% 9.91% 7.21% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%4,500 6,000 6,700 7,300 7,800 8,100 8,300 8,500 8,700 9,000 9,200 9,500 9,800 10,000 10,300 10,600

19,100 1,700

(50,000)1.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%800 1,100 700 900 700 1,000 1,200 1,200 1,300 0 0 0 200 500 600 900

86,400 43,500 50,800 59,100 67,600 50,800 60,400 64,800 65,500 85,600 11,000 9,500 18,100 28,600 39,500 46,500

0 0 0 0 25,900 0 5,300 9,300 8,100 85,600 11,000 1,400 0 0 4,500 0

86,400 43,500 50,800 59,100 41,800 50,800 55,000 55,500 57,400 0 0 8,100 18,100 28,600 35,000 46,500

7,000 6,900 6,900 6,800 7,000 6,700 6,600 6,800 7,000 8,300 8,600 8,800 8,900 9,100 9,300 9,40090,700 98,800 107,200 115,900 98,800 107,800 111,900 112,100 113,900 37,400 35,800 44,100 54,200 64,700 71,100 82,500

(4,300) (55,300) (56,400) (56,800) (57,000) (57,000) (56,800) (56,700) (56,500) (37,400) (35,800) (36,000) (36,200) (36,200) (36,100) (36,000)

0.8 7.8 7.7 6.9 6.7 6.3 6.0 5.8 5.6 4.2 3.9 3.8 3.6 3.4 3.3 3.1





Ideal Clos ing Ba lance



Total Expenditures

Closing Balance





30-Year Reserve Fund Projection—Adequate Funding Model—Commercial

RESERVE FUND PROJECTION - 30 YEAR - ADEQUATE FUNDING - Commercial (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


46,500 53,800 66,400 79,700 93,600 108,300 123,600 139,800 156,700 113,100 130,000 147,800 156,200 165,000 166,6002.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%

10,900 11,200 11,500 11,800 12,100 12,400 12,800 13,100 13,500 13,900 14,300 14,600 15,000 15,500 15,900

2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%1,100 1,500 1,800 2,200 2,500 2,900 3,300 3,800 2,600 3,100 3,500 3,700 3,900 4,000 4,000

58,500 66,400 79,700 93,600 108,300 123,600 139,800 156,700 172,800 130,000 147,800 166,200 175,200 184,400 186,400

4,700 0 0 0 0 0 0 0 59,700 0 0 10,000 10,200 17,900 19,800

53,800 66,400 79,700 93,600 108,300 123,600 139,800 156,700 113,100 130,000 147,800 156,200 165,000 166,600 166,700

9,700 9,800 10,000 10,200 10,300 10,500 10,700 10,900 11,900 12,100 12,300 12,600 13,000 13,400 13,90089,600 101,800 114,500 127,800 141,600 155,900 170,800 186,300 141,900 157,800 174,300 181,400 188,800 189,000 187,600

(35,700) (35,400) (34,900) (34,200) (33,300) (32,300) (31,100) (29,600) (28,800) (27,700) (26,500) (25,200) (23,800) (22,400) (21,000)

3.0 2.8 2.6 2.5 2.3 2.1 1.9 1.8 1.8 1.6 1.5 1.4 1.3 1.2 1.1

OPENING BALANCE




Ideal Clos ing Ba lance



Total Expenditures

Closing Balance





30-Year Reserve Fund Projection—Component Costs—Commercial


1 Substructure and Underground Garage/Parkade - Strata 5 3 0 0% 0 0 02 Wal l Assembl ies - Meta l Siding - Strata 50 15 0 0%3 Wal l Assembl ies - Concrete Siding - Strata 40 15 0 0%4 Window Wal l Assembl ies - High Rise - Strata 40 15 0 0%5 Window Assembl ies - Low Rise - Strata 40 15 0 0%6 Commercia l Storefront - Strata 40 15 0 0%7 Townhouse Garage Door Assembl ies - Meta l - Strata 40 15 0 0%8 Common Door Assembl ies - Wood - Res identia l Section 30 16 0 0% 09 Common Door Assembl ies - Meta l - Strata 30 16 0 0% 0

10 Common Door Assembl ies - Meta l - Commercia l Section 30 16 3,000 100% 4,50011 Common Door Assembl ies - Meta l - Res identia l Section 30 16 0 0% 012 Common Door Assembl ies - Meta l and Glass - Strata 30 16 0 0% 013 Common Door Assembl ies - Meta l and Glass - Res identia l Sectio 30 0 0 0%14 Common Door Assembl ies - Sl iding Glass - Strata 35 16 0 0%15 Caulking and Weather-Stripping / Maint & Repair - Strata 12 6 0 0% 016 Expans ion Joint Caulking / Maint & Repair - Strata 16 8 0 0% 017 Balcony Floor Construction - Concrete - Strata 24 3 0 0%18 Terraces - Strata 30 15 0 0% 019 Balcony Ra i l ings - Strata 25 15 0 0% 020 Roof Assembly - High-Rise - EPDM Membrane - Strata 18 15 0 0% 021 Roof Assembly - Commercia l/Townhouse - EPDM Membrane - Str 18 15 0 0% 022 Roof Access Hatch - Commercia l/Townhouse - Strata 36 15 0 0%23 Metal Fi replace Chimney/Vent - Strata 20 15 0 0% 024 Skyl ights - Strata 36 15 0 0%25 Canopy Repair - Meta l/Glass - Strata 5 2 0 0% 0 0 026 Exterior Bui lding Pa inting - Strata 18 1 0 0%27 Balcony Floor Finish - Strata 15 3 0 0% 028 Parkade Floor Coating - Strata 20 15 0 0% 029 Underground Garage Markings - Strata 18 9 0 0% 030 Garage Insulation - Strata 50 16 0 0%31 Securi ty Gates - Strata 22 15 0 0% 032 Parkade Lighting - Strata 20 2 0 0%33 Interior Common Corridor Pa inting - Strata 16 8 0 0% 034 Interior Common Corridor Pa inting - Commercia l Section 16 8 6,400 100% 8,10035 Interior Common Corridor Pa inting - Res identia l Section 16 8 0 0% 036 Interior Common Corridor Wal lpaper - Res identia l Section 15 5 0 0% 037 Interior Sta i rwel l Pa inting - Commercia l Section 22 11 1,000 100% 1,40038 Interior Sta i rwel l Pa inting - Res identia l Section 22 11 0 0% 039 Interior Common Area Flooring - Carpet - Res identia l Section 18 9 0 0% 040 Interior Common Area Flooring - Commercia l Section 20 10 8,200 100% 11,00041 Interior Common Area Flooring - Ti le - Res identia l Section 25 4 0 0%42 Interior Common Area Lighting - Strata 20 16 0 0% 043 Interior Common Area Lighting - Commercia l Section 20 4 2,900 100%44 Interior Common Area Lighting - Res identia l Section 20 10 0 0% 045 Lobby Renovation - Res identia l Section 15 1 0 0% 046 Elevator Cab Renovation - Commercia l Section 22 16 4,500 100% 5,30047 Elevator Cab Renovation - Res identia l Section 22 8 0 0% 0

RESERVE COMPONENTS



Current Replacement

Cost

Commercial Section

Responsibility





47 Elevator Cab Renovation - Res identia l Section 22 8 0 0% 048 Sump Pumps / Dra ins and Controls - Strata 15 3 0 0% 049 Domestic Cold Water Supply - Commercia l Section 25 16 15,700 100% 20,50050 Domestic Hot and Cold Water Supply - Res identia l Section 5 2 0 0% 0 0 051 Sprinkler System - Strata 30 16 0 0% 052 Heating System - Boi ler - Res identia l Section 20 5 0 0% 053 Heating System - Electric Baseboard - Strata 40 16 0 0%54 Heating System - Hot Water Storage Tanks - Res identia l Section 18 5 0 0% 055 Make-up Air Handl ing Unit - Commercia l Section 20 16 23,000 100% 25,90056 Make-up Air Handl ing Unit - Res identia l Section 20 16 0 0% 057 Specia l and Exhaust Equipment - Res identia l Section 18 16 0 0% 058 Garbage Handl ing System - Res identia l Section 20 16 0 0% 059 Elevator Modernization - Traction - Res identia l Section 30 16 0 0% 060 Elevator Modernization - Hydraul ic - Commercia l Section 25 16 45,300 100% 59,20061 Electrica l Dis tribution System and Fixtures - Strata 35 16 0 0%62 Entry System - Intercom - Commercia l Section 18 9 4,500 100% 5,90063 Entry System - Intercom - Res identia l Section 18 15 0 0% 064 Securi ty / Survei l lance System - Strata 8 4 0 0% 0 065 Fi re Alarm System - Strata 15 12 0 0% 066 Gas Detectors - Strata 8 4 0 0% 0 067 Emergency Generator - Strata 35 16 0 0%68 Amenity Rooms - Res identia l Section 25 7 0 0%69 Exercise Room - Res identia l Section 20 10 0 0% 070 Exercise Equipment - Res identia l Section 4 2 0 0% 0 0 0 071 Pool - Mechanica l - Res identia l Section 10 5 0 0% 0 072 Pool - Structure - Res identia l Section 12 6 0 0% 073 Pool - Furnishings - Res identia l Section 10 5 0 0% 0 074 Indoor Pool Room - Res identia l Section 20 10 0 0% 075 Hot Tub - Mechanica l - Res identia l Section 18 6 0 0% 076 Hot Tub - Structure - Res identia l Section 12 6 0 0% 077 Sauna/Steam Room - Mechanica l - Res identia l Section 18 9 0 0% 078 Sauna/Steam Room - Structure - Res identia l Section 20 10 0 0% 079 Common Area Washrooms / Changerooms - Res identia l Section 22 6 0 0%80 Common Area Washrooms / Changerooms - Commercia l Section 22 15 7,600 100% 9,30081 Storage Lockers - Res identia l Section 30 16 0 0% 082 Mai lboxes - Res identia l Section 40 16 0 0%83 Si te Services - Sewer and Water - Strata 10 5 0 0% 0 084 Concrete Paving and Curbs - Strata 35 16 0 0%85 Pavers - Strata 20 16 0 0% 086 Concrete Patio - Res identia l Section 35 16 0 0%87 Exterior Landscaping - Strata 15 4 0 0% 088 Exterior Landscaping - Res identia l Section 15 4 0 0% 089 Ponds / Water Feature - Res identia l Section 16 13 0 0% 090 Reta ining Wal ls - Concrete - Strata 40 16 0 0%91 Rooftop Planters - Strata 20 16 0 0% 092 Common Exterior Ra i l ings - Meta l - Strata 30 16 0 0% 093 Exterior Lighting - Strata 20 16 0 0% 094 Depreciation Report - Strata 3 3 0 0% 0 0 0 0 0 0

0 0 0 0 25,900 0 5,300 9,300 8,100 85,600 11,000 1,400 0 0 4,500 0

Loan Repayment

Total Expenditures






1 Substructure and Underground Garage/Parkade - Strata 5 3 0 0% 0 0 02 Wal l Assembl ies - Meta l Siding - Strata 50 15 0 0%3 Wal l Assembl ies - Concrete Siding - Strata 40 15 0 0% 04 Window Wal l Assembl ies - High Rise - Strata 40 15 0 0% 05 Window Assembl ies - Low Rise - Strata 40 15 0 0% 06 Commercia l Storefront - Strata 40 15 0 0% 07 Townhouse Garage Door Assembl ies - Meta l - Strata 40 15 0 0% 08 Common Door Assembl ies - Wood - Res identia l Section 30 16 0 0%9 Common Door Assembl ies - Meta l - Strata 30 16 0 0%

10 Common Door Assembl ies - Meta l - Commercia l Section 30 16 3000 100%11 Common Door Assembl ies - Meta l - Res identia l Section 30 16 0 0%12 Common Door Assembl ies - Meta l and Glass - Strata 30 16 0 0%13 Common Door Assembl ies - Meta l and Glass - Res identia l Sectio 30 0 0 0% 014 Common Door Assembl ies - Sl iding Glass - Strata 35 16 0 0% 015 Caulking and Weather-Stripping / Maint & Repair - Strata 12 6 0 0% 0 016 Expans ion Joint Caulking / Maint & Repair - Strata 16 8 0 0% 017 Balcony Floor Construction - Concrete - Strata 24 3 0 0% 018 Terraces - Strata 30 15 0 0%19 Balcony Ra i l ings - Strata 25 15 0 0%20 Roof Assembly - High-Rise - EPDM Membrane - Strata 18 15 0 0% 021 Roof Assembly - Commercia l/Townhouse - EPDM Membrane - Str 18 15 0 0% 022 Roof Access Hatch - Commercia l/Townhouse - Strata 36 15 0 0% 023 Metal Fi replace Chimney/Vent - Strata 20 15 0 0% 024 Skyl ights - Strata 36 15 0 0% 025 Canopy Repair - Meta l/Glass - Strata 5 2 0 0% 0 0 026 Exterior Bui lding Pa inting - Strata 18 1 0 0% 027 Balcony Floor Finish - Strata 15 3 0 0% 028 Parkade Floor Coating - Strata 20 15 0 0% 029 Underground Garage Markings - Strata 18 9 0 0% 030 Garage Insulation - Strata 50 16 0 0%31 Securi ty Gates - Strata 22 15 0 0% 032 Parkade Lighting - Strata 20 2 0 0% 033 Interior Common Corridor Pa inting - Strata 16 8 0 0% 034 Interior Common Corridor Pa inting - Commercia l Section 16 8 6400 100% 13,00035 Interior Common Corridor Pa inting - Res identia l Section 16 8 0 0% 036 Interior Common Corridor Wal lpaper - Res identia l Section 15 5 0 0% 037 Interior Sta i rwel l Pa inting - Commercia l Section 22 11 1000 100%38 Interior Sta i rwel l Pa inting - Res identia l Section 22 11 0 0%39 Interior Common Area Flooring - Carpet - Res identia l Section 18 9 0 0% 040 Interior Common Area Flooring - Commercia l Section 20 10 8200 100% 19,80041 Interior Common Area Flooring - Ti le - Res identia l Section 25 4 0 0% 042 Interior Common Area Lighting - Strata 20 16 0 0% 043 Interior Common Area Lighting - Commercia l Section 20 4 2900 100% 4,70044 Interior Common Area Lighting - Res identia l Section 20 10 0 0% 045 Lobby Renovation - Res identia l Section 15 1 0 0% 046 Elevator Cab Renovation - Commercia l Section 22 16 4500 100% 10,20047 Elevator Cab Renovation - Res identia l Section 22 8 0 0%

RESERVE COMPONENTS



Current Replacement

Cost

Commercial Section

Responsibility





47 Elevator Cab Renovation - Res identia l Section 22 8 0 0%48 Sump Pumps / Dra ins and Controls - Strata 15 3 0 0% 049 Domestic Cold Water Supply - Commercia l Section 25 16 15700 100%50 Domestic Hot and Cold Water Supply - Res identia l Section 5 2 0 0% 0 0 051 Sprinkler System - Strata 30 16 0 0%52 Heating System - Boi ler - Res identia l Section 20 5 0 0%53 Heating System - Electric Baseboard - Strata 40 16 0 0% 054 Heating System - Hot Water Storage Tanks - Res identia l Section 18 5 0 0%55 Make-up Air Handl ing Unit - Commercia l Section 20 16 23000 100% 46,70056 Make-up Air Handl ing Unit - Res identia l Section 20 16 0 0% 057 Specia l and Exhaust Equipment - Res identia l Section 18 16 0 0% 058 Garbage Handl ing System - Res identia l Section 20 16 0 0% 059 Elevator Modernization - Traction - Res identia l Section 30 16 0 0%60 Elevator Modernization - Hydraul ic - Commercia l Section 25 16 45300 100%61 Electrica l Dis tribution System and Fixtures - Strata 35 16 0 0% 062 Entry System - Intercom - Commercia l Section 18 9 4500 100% 10,00063 Entry System - Intercom - Res identia l Section 18 15 0 0% 064 Securi ty / Survei l lance System - Strata 8 4 0 0% 0 065 Fi re Alarm System - Strata 15 12 0 0% 066 Gas Detectors - Strata 8 4 0 0% 0 067 Emergency Generator - Strata 35 16 0 0% 068 Amenity Rooms - Res identia l Section 25 7 0 0% 069 Exercise Room - Res identia l Section 20 10 0 0% 070 Exercise Equipment - Res identia l Section 4 2 0 0% 0 0 0 071 Pool - Mechanica l - Res identia l Section 10 5 0 0% 072 Pool - Structure - Res identia l Section 12 6 0 0% 0 073 Pool - Furnishings - Res identia l Section 10 5 0 0% 074 Indoor Pool Room - Res identia l Section 20 10 0 0% 075 Hot Tub - Mechanica l - Res identia l Section 18 6 0 0% 076 Hot Tub - Structure - Res identia l Section 12 6 0 0% 0 077 Sauna/Steam Room - Mechanica l - Res identia l Section 18 9 0 0% 078 Sauna/Steam Room - Structure - Res identia l Section 20 10 0 0% 079 Common Area Washrooms / Changerooms - Res identia l Section 22 6 0 0% 080 Common Area Washrooms / Changerooms - Commercia l Section 22 15 7600 100% 17,90081 Storage Lockers - Res identia l Section 30 16 0 0%82 Mai lboxes - Res identia l Section 40 16 0 0% 083 Si te Services - Sewer and Water - Strata 10 5 0 0% 084 Concrete Paving and Curbs - Strata 35 16 0 0% 085 Pavers - Strata 20 16 0 0% 086 Concrete Patio - Res identia l Section 35 16 0 0% 087 Exterior Landscaping - Strata 15 4 0 0% 088 Exterior Landscaping - Res identia l Section 15 4 0 0% 089 Ponds / Water Feature - Res identia l Section 16 13 0 0% 090 Reta ining Wal ls - Concrete - Strata 40 16 0 0% 091 Rooftop Planters - Strata 20 16 0 0% 092 Common Exterior Ra i l ings - Meta l - Strata 30 16 0 0%93 Exterior Lighting - Strata 20 16 0 0% 094 Depreciation Report - Strata 3 3 0 0% 0 0 0 0 0

4,700 0 0 0 0 0 0 0 59,700 0 0 10,000 10,200 17,900 19,800

Loan Repayment

Total Expenditures




5.3 Cash Flow Analysis

The following two pages include Cash Flow Table summaries of the recommendations of the 30-Year Reserve Fund Projection, including graphs serving as visual representations. The first page is a nominal (actual dollar) summary, and the second page is a real dollar (adjusted for CPI inflation) summary.

The Nominal Table shows the actual dollar amounts that are forecasted and recommended. This is useful for planning and setting reserve fund contributions. The strata corporation should follow the Nominal Cash Flow Table for setting reserve fund contributions.

The Real Dollar Table shows dollar amounts adjusted for inflation. This is useful for understanding the expenditures and contributions in terms of purchasing power. This table is not intended to be followed when setting reserve fund contributions: it is for illustration purposes only.

Please note the following definition.

Average Monthly Contribution per Strata Unit Each year’s recommended contribution divided by twelve and divided by the total number of strata units. This represents an approximate monthly contribution, although actual contributions will vary depending on unit entitlement.




Nominal Cash Flow Table and Graph—Adequate Funding Model—Strata (Joint)

R-4270

2020 256,829 103,218 0.00% 41 - 2,471 9,713 352,806 2021 352,806 150,000 45.32% 59 - 4,528 - 1,007,334 2022 1,007,334 200,880 33.92% 79 - 15,046 46,922 1,176,338 2023 1,176,338 236,496 17.73% 93 - 8,508 716,430 704,912 2024 704,912 251,760 6.45% 99 - 10,339 220,284 746,727 2025 746,727 260,572 3.50% 102 - 12,654 223,092 796,861 2026 796,861 269,692 3.50% 106 - 18,542 110,107 974,988 2027 974,988 279,131 3.50% 110 - 23,975 87,031 1,191,062 2028 1,191,062 288,900 3.50% 114 - 31,326 30,852 1,480,436 2029 1,480,436 299,012 3.50% 118 - 39,354 22,877 1,795,926 2030 1,795,926 309,477 3.50% 122 - 42,607 217,900 1,930,110 2031 1,930,110 320,309 3.50% 126 - 51,620 18,241 2,283,798 2032 2,283,798 331,520 3.50% 130 - 54,025 282,868 2,386,475 2033 2,386,475 343,123 3.50% 135 - 64,101 12,369 2,781,330 2034 2,781,330 355,132 3.50% 140 - 63,442 431,638 2,768,266 2035 2,768,266 367,562 3.50% 144 - 67,502 268,202 2,935,127 2036 2,935,127 380,427 3.50% 150 - 79,248 - 3,394,802 2037 3,394,802 393,742 3.50% 155 - 86,838 178,563 3,696,819 2038 3,696,819 407,523 3.50% 160 - 92,086 286,239 3,910,188 2039 3,910,188 421,786 3.50% 166 - 85,302 750,857 3,666,419 2040 3,666,419 436,548 3.50% 172 - 98,048 35,029 4,165,986 2041 4,165,986 451,828 3.50% 178 - 76,683 1,325,884 3,368,613 2042 3,368,613 467,641 3.50% 184 - 88,664 84,747 3,840,172 2043 3,840,172 484,009 3.50% 190 - 103,236 16,623 4,410,793 2044 4,410,793 500,949 3.50% 197 - 106,351 471,868 4,546,225 2045 4,546,225 518,482 3.50% 204 - - 4,565,604 499,104 2046 499,104 536,629 3.50% 211 - 12,708 28,419 1,020,023 2047 1,020,023 555,411 3.50% 218 - 16,336 414,989 1,176,781 2048 1,176,781 574,851 3.50% 226 - 30,055 63,645 1,718,041 2049 1,718,041 594,971 3.50% 234 - 44,699 62,534 2,295,177 2050 2,295,177 615,795 3.50% 242 - 55,927 223,824 2,743,074

Estimated Future

Expenditures

Closing Balance

Percentage Increase in

Annual Contribution

Estimated Interest Earned

Year EndOpening Balance

Annual Contribution

Special Assessments

Average Monthly

Contribution per Unit

Nominal Cash Flow Table—Adequate Funding - Strata (Joint)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Year End:

Adequate Funding ScheduleSpecialAssessment

ExpendituresFrom Reserve

Closing Balance

RecommendedContribution

Reserve FundDeficiency

Fully FundedContribution

Fully FundedClosing Balance




Real Dollar Cash Flow Table and Graph—Adequate Funding Model—Strata (Joint)

R-4270

2020 256,829 103,218 0.00% 41 - 2,471 9,713 352,806 2021 346,909 147,493 42.89% 58 - 4,452 - 990,495 2022 973,938 194,220 31.68% 76 - 14,548 45,367 1,137,340 2023 1,118,328 224,833 15.76% 88 - 8,089 681,100 670,150 2024 658,948 235,344 4.67% 93 - 9,665 205,920 698,036 2025 686,368 239,509 1.77% 94 - 11,632 205,060 732,449 2026 720,206 243,748 1.77% 96 - 16,759 99,515 881,198 2027 866,468 248,062 1.77% 98 - 21,306 77,345 1,058,492 2028 1,040,799 252,453 1.77% 99 - 27,374 26,960 1,293,666 2029 1,272,041 256,921 1.77% 101 - 33,814 19,656 1,543,120 2030 1,517,326 261,468 1.77% 103 - 35,997 184,097 1,630,694 2031 1,603,436 266,096 1.77% 105 - 42,884 15,154 1,897,262 2032 1,865,548 270,806 1.77% 106 - 44,131 231,064 1,949,420 2033 1,916,834 275,599 1.77% 108 - 51,486 9,935 2,233,984 2034 2,196,641 280,477 1.77% 110 - 50,105 340,900 2,186,323 2035 2,149,777 285,441 1.77% 112 - 52,420 208,280 2,279,359 2036 2,241,257 290,493 1.77% 114 - 60,514 - 2,592,264 2037 2,548,932 295,634 1.77% 116 - 65,201 134,071 2,775,697 2038 2,729,299 300,867 1.77% 118 - 67,985 211,326 2,886,825 2039 2,838,570 306,192 1.77% 120 - 61,924 545,079 2,661,608 2040 2,617,117 311,611 1.77% 122 - 69,987 25,004 2,973,711 2041 2,924,003 317,127 1.77% 125 - 53,822 930,605 2,364,346 2042 2,324,824 322,739 1.77% 127 - 61,191 58,487 2,650,267 2043 2,605,966 328,452 1.77% 129 - 70,057 11,281 2,993,194 2044 2,943,160 334,265 1.77% 131 - 70,964 314,860 3,033,529 2045 2,982,821 340,181 1.77% 134 - - 2,995,535 327,467 2046 321,993 346,202 1.77% 136 - 8,199 18,335 658,059 2047 647,059 352,330 1.77% 138 - 10,363 263,252 746,500 2048 734,022 358,565 1.77% 141 - 18,747 39,699 1,071,635 2049 1,053,722 364,912 1.77% 143 - 27,415 38,354 1,407,695 2050 1,384,164 371,370 1.77% 146 - 33,728 134,983 1,654,280


Annual Contribution


Annual Contribution

Special Assessments

Average Monthly



Estimated Future

Expenditures

Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Adequate Funding - Strata (Joint)

Closing Balance

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Year End:

Adequate Funding Schedule (in Real Dollars)SpecialAssessment


Closing Balance








Nominal Cash Flow Table and Graph—Adequate Funding Model—Residential

R-4270

2020 1,289,375 140,806 0.11% 58 - 12,894 - 1,443,074 2021 1,443,074 160,000 13.63% 66 - 18,519 - 1,171,594 2022 1,171,594 165,200 3.25% 68 - 18,180 11,191 1,343,783 2023 1,343,783 170,569 3.25% 71 - 19,248 303,331 1,230,269 2024 1,230,269 176,112 3.25% 73 - 24,571 78,523 1,352,428 2025 1,352,428 181,836 3.25% 75 - 32,377 12,685 1,553,956 2026 1,553,956 187,746 3.25% 78 - 40,614 49,748 1,732,567 2027 1,732,567 193,848 3.25% 80 - 46,779 - 1,973,194 2028 1,973,194 200,148 3.25% 83 - 45,397 291,830 1,926,909 2029 1,926,909 206,652 3.25% 86 - 44,598 275,133 1,903,026 2030 1,903,026 213,369 3.25% 88 - 47,157 156,471 2,007,081 2031 2,007,081 220,303 3.25% 91 - 53,523 24,752 2,256,155 2032 2,256,155 227,463 3.25% 94 - 60,670 9,126 2,535,161 2033 2,535,161 234,855 3.25% 97 - 59,277 339,724 2,489,570 2034 2,489,570 242,488 3.25% 101 - 3,255 2,368,999 366,315 2035 366,315 250,369 3.25% 104 - 3,932 220,698 399,918 2036 399,918 258,506 3.25% 107 - 10,387 15,199 653,612 2037 653,612 266,908 3.25% 111 - 17,648 - 938,167 2038 938,167 275,582 3.25% 114 - 11,671 505,909 719,511 2039 719,511 284,539 3.25% 118 - 17,986 53,347 968,690 2040 968,690 293,786 3.25% 122 - 25,856 11,075 1,277,256 2041 1,277,256 303,334 3.25% 126 - 29,499 184,715 1,425,374 2042 1,425,374 313,192 3.25% 130 - 38,257 8,463 1,768,360 2043 1,768,360 323,371 3.25% 134 - 36,657 410,703 1,717,684 2044 1,717,684 333,881 3.25% 138 - 40,907 202,610 1,889,862 2045 1,889,862 344,732 3.25% 143 - 47,318 137,345 2,144,567 2046 2,144,567 355,936 3.25% 148 - 57,210 25,686 2,532,027 2047 2,532,027 367,504 3.25% 152 - 55,718 468,396 2,486,852 2048 2,486,852 379,447 3.25% 157 - 54,290 476,118 2,444,472 2049 2,444,472 391,779 3.25% 162 - 64,553 53,622 2,847,182 2050 2,847,182 404,512 3.25% 168 - 69,186 284,745 3,036,135

Estimated Future

Expenditures

Closing Balance


Annual Contribution



Annual Contribution

Special Assessments

Average Monthly


Nominal Cash Flow Table—Adequate Funding - Residential

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Year End:



Closing Balance








Real Dollar Cash Flow Table and Graph—Adequate Funding Model—Residential

R-4270

2020 1,289,375 140,806 0.11% 58 - 12,894 - 1,443,074 2021 1,418,952 157,325 11.73% 65 - 18,210 - 1,152,010 2022 1,132,753 159,723 1.52% 66 - 17,577 10,820 1,299,233 2023 1,277,515 162,158 1.52% 67 - 18,299 288,373 1,169,599 2024 1,150,048 164,629 1.52% 68 - 22,968 73,403 1,264,243 2025 1,243,110 167,138 1.52% 69 - 29,760 11,660 1,428,348 2026 1,404,472 169,685 1.52% 70 - 36,707 44,963 1,565,901 2027 1,539,726 172,272 1.52% 71 - 41,573 - 1,753,570 2028 1,724,258 174,897 1.52% 73 - 39,670 255,013 1,683,812 2029 1,655,665 177,563 1.52% 74 - 38,320 236,404 1,635,144 2030 1,607,812 180,269 1.52% 75 - 39,842 132,198 1,695,724 2031 1,667,379 183,016 1.52% 76 - 44,464 20,563 1,874,297 2032 1,842,967 185,806 1.52% 77 - 49,559 7,455 2,070,876 2033 2,036,260 188,638 1.52% 78 - 47,612 272,869 1,999,640 2034 1,966,215 191,513 1.52% 79 - 2,571 1,870,990 289,308 2035 284,472 194,431 1.52% 81 - 3,053 171,389 310,568 2036 305,376 197,395 1.52% 82 - 7,932 11,606 499,097 2037 490,754 200,403 1.52% 83 - 13,250 - 704,408 2038 692,633 203,458 1.52% 84 - 8,616 373,504 531,203 2039 522,323 206,558 1.52% 86 - 13,057 38,727 703,212 2040 691,458 209,707 1.52% 87 - 18,456 7,905 911,715 2041 896,475 212,903 1.52% 88 - 20,704 129,647 1,000,435 2042 983,712 216,148 1.52% 90 - 26,403 5,841 1,220,421 2043 1,200,021 219,442 1.52% 91 - 24,875 278,706 1,165,632 2044 1,146,147 222,786 1.52% 92 - 27,296 135,194 1,261,035 2045 1,239,956 226,182 1.52% 94 - 31,046 90,113 1,407,070 2046 1,383,550 229,629 1.52% 95 - 36,908 16,571 1,633,516 2047 1,606,211 233,129 1.52% 97 - 35,345 297,131 1,577,554 2048 1,551,184 236,682 1.52% 98 - 33,863 296,980 1,524,749 2049 1,499,262 240,289 1.52% 100 - 39,592 32,888 1,746,255 2050 1,717,065 243,951 1.52% 101 - 41,724 171,723 1,831,017


Annual Contribution


Annual Contribution

Special Assessments

Average Monthly



Estimated Future

Expenditures

Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Adequate Funding - Residential

Closing Balance

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Year End:



Closing Balance








Nominal Cash Flow Table and Graph—Adequate Funding Model—Commercial

R-4270

2020 81,084 4,480 0.02% 34 - 811 - 86,375 2021 86,375 6,000 33.93% 45 - 1,108 - 43,484 2022 43,484 6,660 11.00% 50 - 681 - 50,825 2023 50,825 7,320 9.91% 55 - 940 - 59,085 2024 59,085 7,848 7.21% 59 - 708 25,875 41,767 2025 41,767 8,064 2.75% 61 - 1,009 - 50,840 2026 50,840 8,286 2.75% 63 - 1,229 5,318 55,037 2027 55,037 8,513 2.75% 64 - 1,234 9,316 55,469 2028 55,469 8,748 2.75% 66 - 1,280 8,076 57,420 2029 57,420 8,988 2.75% 68 19,147 - 85,555 - 2030 - 9,235 2.75% 70 1,721 - 10,956 - 2031 - 9,489 2.75% 72 - - 1,401 8,088 2032 8,088 9,750 2.75% 74 - 218 - 18,057 2033 18,057 10,018 2.75% 76 - 488 - 28,563 2034 28,563 10,294 2.75% 78 - 648 4,545 34,960 2035 34,960 10,577 2.75% 80 - 944 - 46,481 2036 46,481 10,868 2.75% 82 - 1,129 4,673 53,805 2037 53,805 11,167 2.75% 85 - 1,453 - 66,424 2038 66,424 11,474 2.75% 87 - 1,793 - 79,691 2039 79,691 11,789 2.75% 89 - 2,152 - 93,632 2040 93,632 12,113 2.75% 92 - 2,528 - 108,274 2041 108,274 12,447 2.75% 94 - 2,923 - 123,644 2042 123,644 12,789 2.75% 97 - 3,338 - 139,771 2043 139,771 13,141 2.75% 100 - 3,774 - 156,685 2044 156,685 13,502 2.75% 102 - 2,619 59,692 113,114 2045 113,114 13,873 2.75% 105 - 3,054 - 130,041 2046 130,041 14,255 2.75% 108 - 3,511 - 147,807 2047 147,807 14,647 2.75% 111 - 3,722 9,969 156,207 2048 156,207 15,050 2.75% 114 - 3,942 10,189 165,009 2049 165,009 15,463 2.75% 117 - 3,973 17,850 166,596 2050 166,596 15,889 2.75% 120 - 3,964 19,788 166,660

Average Monthly


Nominal Cash Flow Table—Adequate Funding - Commercial

Estimated Future

Expenditures

Closing Balance


Annual Contribution



Annual Contribution

Special Assessments

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Year End:



Closing Balance








Real Dollar Cash Flow Table and Graph—Adequate Funding Model—Commercial

R-4270

2020 81,084 4,480 0.02% 34 - 811 - 86,375 2021 84,931 5,900 31.69% 45 - 1,090 - 42,757 2022 42,042 6,439 9.14% 49 - 659 - 49,140 2023 48,318 6,959 8.07% 53 - 894 - 56,171 2024 55,232 7,336 5.42% 56 - 662 24,188 39,043 2025 38,391 7,412 1.03% 56 - 928 - 46,730 2026 45,949 7,489 1.03% 57 - 1,111 4,806 49,742 2027 48,911 7,566 1.03% 57 - 1,097 8,279 49,295 2028 48,471 7,644 1.03% 58 - 1,118 7,057 50,176 2029 49,337 7,723 1.03% 59 16,451 - 73,512 - 2030 - 7,803 1.03% 59 1,454 - 9,257 - 2031 - 7,883 1.03% 60 - - 1,164 6,719 2032 6,607 7,965 1.03% 60 - 178 - 14,750 2033 14,504 8,047 1.03% 61 - 392 - 22,942 2034 22,558 8,130 1.03% 62 - 512 3,590 27,611 2035 27,149 8,214 1.03% 62 - 733 - 36,096 2036 35,493 8,299 1.03% 63 - 862 3,568 41,085 2037 40,398 8,384 1.03% 64 - 1,091 - 49,874 2038 49,040 8,471 1.03% 64 - 1,324 - 58,835 2039 57,851 8,558 1.03% 65 - 1,562 - 67,972 2040 66,835 8,647 1.03% 66 - 1,805 - 77,287 2041 75,995 8,736 1.03% 66 - 2,052 - 86,783 2042 85,332 8,826 1.03% 67 - 2,304 - 96,462 2043 94,850 8,917 1.03% 68 - 2,561 - 106,328 2044 104,550 9,009 1.03% 68 - 1,747 39,830 75,477 2045 74,215 9,102 1.03% 69 - 2,004 - 85,321 2046 83,895 9,196 1.03% 70 - 2,265 - 95,357 2047 93,763 9,291 1.03% 70 - 2,361 6,324 99,091 2048 97,435 9,387 1.03% 71 - 2,459 6,356 102,925 2049 101,205 9,484 1.03% 72 - 2,437 10,948 102,178 2050 100,470 9,582 1.03% 73 - 2,390 11,934 100,509


Estimated Future

Expenditures

Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Adequate Funding - Commercial

Closing BalanceYear End

Opening Balance

Annual Contribution


Annual Contribution

Special Assessments

Average Monthly


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Year End:



Closing Balance








5.4 Deficiency Analysis

The Deficiency Analysis focuses on the current fiscal year. It is a comparison between the actual reserve fund balance and the Benchmark Analysis, a hypothetical Fully Funded scenario.

The Benchmark Analysis indicates how much money would be in the reserve fund if the strata corporation had contributed an equitable amount each year, leaving the strata on pace to fully fund each component. Thus, the deficiency is the amount of money the strata corporation will raise before the end of the building’s economic life.

It is important to realize that most strata corporations in British Columbia will show a benchmark deficiency in their funding to varying degrees. This is typical of reserve fund balances. The deficiency can be resolved through special assessments, higher contributions than the equitable benchmark contributions would require, and/or by achieving longer performance out of the components for less money. The contributions for each component go into one fund, so the strata corporation can often maintain a deficiency without special assessments by borrowing savings from some components to pay for others.

Please note the following definitions associated with the table on the next page:

Current Budgeted Reserve Fund Contribution The approved annual contribution to the reserve fund.

Special Assessment An estimation of the amount collected and to be collected on top of the Current Budgeted Reserve Fund Contribution, as a one-time fee.

Estimated Reserve Fund Expenditures Costs incurred and expected to be incurred on reserve fund components.

Estimated Reserve Fund Deficiency The difference between the reserve fund’s closing balance and the Benchmark’s Closing Balance

Deficiency/Contribution Quotient A stable measure of reserve fund performance. See the next page for details.





The DCQ is a funding score for a given year. It is a stable measurement of the relative size of your contributions compared to your reserve fund deficiency. A strata corporation that is prioritizing reserve fund contributions will have a decreasing DCQ even though their deficiency may be increasing. A strata corporation with no deficiency has a DCQ of zero.

This formula is simply a given year’s closing balance Deficiency including Outstanding Loan Balance, if any (D), divided by the same year’s contributions, including interest (C), or D/C. Using this formula, the subject strata corporation has a DCQ as follows:

Opening Balance 256,829$ Current Budgeted Reserve Fund Contribution 103,218$ Loan Draws -$ Special Assessments -$ Transfer From Operating -$ Other Income -$ Interest Income 2,471$ Less: Estimated Reserve Fund Expenditures 9,713-$ Projected Closing Balance 352,806$

Less: Ideal Closing Balance 2,882,701-$ Estimated Reserve Fund Deficiency 2,529,895$ Outstanding Loan Balance -$ Deficiency / Contribution Quotient 23.9

For the period Sep 2019–Aug 2020

Estimated Reserve Fund Deficiency 2,529,895$ Outstanding Loan Balance -$ Current Budgeted Reserve Fund Contribution 103,218$ Interest Income 2,471$

Deficiency / Contribution Quotient 23.9

For the period Sep 2019–Aug 2020

DCQ = (2,529,895)/(103,218+2,471)




Here is a rough guide to discerning what this DCQ means for your reserve fund.

DCQ greater than 40 Indicative of a strata corporation that has not prioritized reserve fund contributions—though it is still possible that they proactively maintain their building through different funding methods.

DCQ between 15 and 40 Normal for strata corporations that have begun to prioritize their reserve fund within the last handful of years. It is also normal for corporations that haven’t had much time to accumulate a deficiency.

DCQ between 0 and 15 Relatively stable and unlikely to need emergency funding, though it is still possible to incur a special assessment with a low DCQ.

DCQ equals 0 The reserve is fully funded. This is also the development’s position at the exact beginning and end of its economic life.

DCQ less than 0 The reserve fund is overfunded and, while very stable, should move towards a DCQ of zero to place greater emphasis on the equity of reserve contributions year-to-year.

The DCQ is not affected by location, time, or building type, and is useful for comparing buildings with themselves over time and with other buildings. However, most reserve consultants use differing methodology, assumptions, and algorithms when developing their funding plans, particularly when calculating deficiency. Thus, the DCQ should only be used to compare different strata corporations when their depreciation report has been conducted by the same firm using the same methodology.




6. Recommendations

NLD Consulting – Reserve Fund Advisors’ recommendations, set out below and detailed in this report, will assist the corporation to achieve and maintain an adequate reserve fund.

1. The strata corporation is under no obligation to follow the recommendations in this report.

2. The strata corporation should prepare and implement a long-term reserve fund strategy.

3. Major repairs and replacements should be recorded in, and funded from, a reserve fund account. Reserve expenditures should be recorded in the general ledger using individual ledger codes for each component.

4. The reserve fund contribution should be increased to $150,000 for the Strata (Joint) section, $160,000 for the Residential section, and $6,000 for the Commercial section per annum in the year Sep 2020–Aug 2021, and thereafter by the recommendations in section 5.2 each subsequent year, as well as consider the one-time crf transfers described on page 16.

5. The reserve fund should be fully invested in guaranteed long-term securities per the strata property act, at the maximum available rate.

6. The strata corporation should make such expenditures as necessary to maintain the property in optimum condition.

7. The strata corporation should review this report every year to ensure that the underlying assumptions are still valid and that the estimates remain current.

8. The strata corporation should update the depreciation report at least every three years, as per the regulations of the strata property act, unless future regulation requires an alternate schedule of updates.


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix A—Qualifications

Appendix A—Qualifications



Michael LaPorte, CRP, PRA, AACI, P.App., RI NLD Consulting – Reserve Fund Advisors

Education Langara College

Realty Appraisal Program Certificate 1989 Real Estate Sales and Marketing 1992

Appraisal Institute of Canada Residential Demonstration Report – attained CRA Designation 1995 Expert Witness Seminar 2005

University of British Columbia, Faculty of Commerce – Real Estate Division Commercial Demonstration Report – attained AACI Designation 2002

Real Estate Institute of Canada Certified Reserve Planner Program 2011 Ethics and Business Practice Curriculum 2011

Awards, Designations and Certificates REIC Pursuit of Excellence Award – REIC Finance Member of the Year 2018 RI – Real Estate Institute of British Columbia 2016 PRA - Professional Reserve Analyst - Association of Professional Reserve Analysts 2015 CRP - Certified Reserve Planner – Real Estate Institute of Canada 2011 AACI – Accredited Appraiser of the Canadian Institute – AIC 2002 P.App. – Professional Appraiser – Appraisal Institute of Canada 2002 CRA – Canadian Residential Appraiser – Appraisal Institute of Canada 1995

Professional Experience Royal LePage – Residential Appraisal Division 1989

Real Estate Consulting and Appraisal of residential properties

Campbell & Pound (1988) Ltd. 1989 – 1995 Real Estate Consulting and Appraisal of residential properties

Niemi LaPorte & Dowle Appraisals Ltd. 1995 – Present Real Estate Consulting and Appraisal of residential and IC&I properties Management of Staff Development of Business

Niemi LaPorte & Dowle - Whistler Appraisal Group Ltd. 1999 – Present Real Estate Consulting and Appraisal of residential and IC&I properties Management of Staff & Development of Business



Niemi LaPorte & Dowle Appraisals – Fraser Valley 2007 – Present Real Estate Consulting and Appraisal of residential and IC&I properties Management of Staff Development of Business

Niemi LaPorte & Dowle Appraisals - Victoria 2011 – Present

Real Estate Consulting and Appraisal of residential and IC&I properties Management of Staff Development of Business

NLD Consulting – Reserve Advisors 2010 – Present

Depreciation Report and Reserve Fund Studies/Consulting Management of Staff Development of Business

Memberships Real Estate Institute of British Columbia 2016 – Present Association of Professional Reserve Analysts 2015 – Present Professional Association of Managing Agents 2010 – Present Condominium Home Owners Association 2010 – Present Strata Property Agents of BC 2010 – Present Real Estate Institute of Canada 2010 – Present Mortgage Investment Brokers Association of BC. 2008 – Present Mortgage Brokers Association of BC. 1998 – Present Appraisal Institute of Canada 1989 – Present

Court Experience Supreme Court of British Columbia



Depreciation Report/Reserve Fund Study Clients 24/7 Strata Management Ascent Management Real Estate Corp. AWM Alliance Real Estate Group Ltd. Bayside Property Services Ltd. Baywest Management Corp. BC Housing Bradshaw Strata Management Ltd. Brydges Property Management C & C Property Group Ltd. Citybase Management Ltd. Colyvan Pacific Real Estate Management Services Ltd. Crossroads Management Ltd. Dodwell Realty and Strata Management Ltd. Dorset Realty Group Canada Ltd. Fairfax Management FirstService Residential Globe Property Management Homelife Peninsula Property Management Hutton Condominium Services Ltd. I.J.M. Properties Ltd. Imperial Properties Corp. iStrata Property Leonis Management & Consultants Ltd. Maple Leaf 1st Realty Ltd. Martello Property Services Inc. Northwest Strata Management Ocean Bay Management Ltd. Pacific Quorum Properties Inc. Pacifica First Management Ltd. Paragon Realty Corp. Peterson Group Polygon Ltd. Profile Properties Ltd. R. Jang & Associates Ltd. Rancho Management Services (BC) Ltd. Re/Max Property Management Services Richmond Caring House (Non-profit) Self-Managed Condominiums/Stratas Stevenson Management Services Ltd. The Wynford Group Trilogy Management Services Ltd. Winnipeg Rentals Inc.

WRM Strata Management & Real Estate Services Ltd.


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix B—Assumptions and Limiting Conditions

Appendix B—Assumptions and Limiting Conditions



The legal and survey descriptions of the property as stated herein are those which are recorded by the Registrar of the requisite Land Titles Office and are assumed to be correct. Further, the strata bylaws and architectural plan provided must be assumed to be correct and complete, as must any financial statements, AGM and/or SGM minutes, and budgets.

The architectural, structural, mechanical, electrical and other plans and specifications of the building or buildings and improvements were provided in whole or in part (as available) for this study. Furthermore, all buildings and improvements are deemed to have been constructed and finished in accordance with such plans and specifications, unless otherwise noted.

Sketches, drawings, diagrams, photographs, if any, presented in this report are included for the sole purpose of illustration. No legal survey, soil tests, engineering investigations, detailed quantity survey compilations, nor exhaustive physical examinations have been made. Accordingly, no responsibility is assumed concerning these matters or other technical and engineering techniques, which would be required to discover any inherent or hidden condition of the property.

The reserve components were assessed visually. No intrusive or destructive testing, specialized imaging, or aerial inspections of elevated areas has been undertaken. The consultant(s) accept no liability for conditions not visible at the time of the building and site review. If further investigation of specific components is required by the client, the services of an expert specializing in the particular building system/component is recommended.

Measurements and quantities are taken either on-site during inspection as approximations or directly from plans where available. Where electronic plans/drawings are made available, quantity take-offs are completed using Planswift professional plan management software. The consultant(s) accept no liability for the use of dimensions taken from the above sources for the purposes of quantifying reserve components.

In order to arrive at supportable replacement cost estimates, it was found necessary to utilize both documented and other cost data. Current cost estimates are primarily based on the current year RSMeans Commercial Renovation Cost Data. This data is modified using percentage factors to reflect perceived local and site specific conditions and may also include a contingency factor based on the overall confidence in the costs relative to the specific component. Applicable taxes are included in these costs. The intent of these cost estimates is to generate a realistic planning guideline, and it is likely that actual costs will vary from this number based on several factors. These include the supply/demand of contractors at the time replacements occur as well as the potential for changes in construction methods and materials over time.

Reserve fund estimates are subjective, and they are based on an understanding of the life cycle of reserve components and our experience gained from observing buildings, with projections



made over a 30-year period. It must be appreciated that reserve fund budgeting and projections are not exact sciences. They are, at best, prudent provisions for all possible contingencies, if and when they arise. Reserve fund requirements are subject to change and must be reviewed and modified over time, at least every three years.

A concerted effort has been put forth to verify the accuracy of the information contained herein. Accordingly, the information is believed to be reliable and correct, and it has been gathered to standard professional procedures, but no guarantee as to the accuracy of the data is implied.

The consultant is not qualified to design specific repair, replacement or maintenance plans. Recommendations regarding repairs, replacements and maintenance are general in nature and are intended to provide guidance for long-range financial planning only. In all cases of major repairs or replacements, qualified design professionals should be retained to provide a specific design. In all cases, the maintenance directions provided by the manufacturer or installer of any specific component should be followed.

The estimates herein must not be extracted or used in conjunction with any other depreciation report and may be invalid if so used. Additionally, the BC Strata Property Act requires the strata to include a copy of the depreciation report, where applicable. The user is cautioned to request any copies of this report directly from the author to ensure the report is complete, current, and authentic. Electronic copies should include a digital signature of the author.

NLD Consulting uses NotariusTM Digital Signatures which are ISO 27001:2005 certified. No responsibility is accepted where a claim arises from a copy of this report which has either been distributed by a 3rd party, or is not originally or digitally signed.

The client to whom this report is addressed may use it in deliberations affecting the subject strata corporation only, and in so doing, the report must not be abstracted; it must be used in its entirety. Possession of this report or any copy thereof does not carry with it the right of publication nor may it be used for any purpose by anyone but the client without the written consent of the author, and in any event, only with the proper qualifications.

The consultant(s) are not liable for the failure of any sale to close, nor for any owner(s) failure to obtain financing, mortgage insurance, nor structure/contents insurance as a result of information contained in this report. The consultant(s) have no authority to compel any action on the part of the Strata Corporation and can accept no responsibility for the corporation’s actions or failures to act.

All personal information supplied for the purposes of preparation of this report will remain within our organization and will not be shared with any external entity unless prior permission is given. Your personal information will not be sold, distributed or published in any manner whatsoever.



NLD Consulting – Reserve Fund Advisors takes privacy very seriously. We collect personal information to better serve our customers, for security reasons, and to provide customers and potential customers with information about our services. We would like to have a lifelong relationship of good service with our customers, and for that reason we may retain personal information provided for as long as necessary to provide our services and respect our obligations to governmental agencies and other third parties. The information will remain confidential to NLD Consulting, to businesses working for us, and to any organization that acquires part or all of our business, provided that they agree to comply with our privacy policy. By accepting our report, you are agreeing to maintain the confidentiality and privacy of any personal information contained herein and to comply in all material respects with the contents of our Privacy Policy.

The Personal Information Protection Act (PIPA) of British Columbia sets out requirements for how organizations may collect, use, disclose and secure personal information. The preparation of each report and/or retention of records is subject to the requirements of PIPA. Written authorization in advance must be requested to reproduce or use the report in any form by and means, graphic, electronic or mechanical, including photocopying, recording, typing or information storage and retrieval, which must be done in conformity with PIPA and the Privacy Policy. For further information on the Act, contact the office of the Information & Privacy Commissioner for British Columbia, or access the Act through the website: http://www.oipc.bc.ca/

The consultant(s) maintain a reasonable level of insurance relative to industry standards to cover errors and omissions with per-claim and per-year limits. The consultant(s) liability related to this report is limited to the maximum per-claim value available at the time a potential claim is made.

The agreed compensation for services rendered in preparing this report does not include fees for consultations and/or arbitrations, if any. Should personal appearances be required in connection with this report, additional fees will have to be negotiated. Unless otherwise noted, all estimates are expressed in Canadian currency.


http://www.oipc.bc.ca/

NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix C—Strata Property Act & Regulation Excerpt

Appendix C—Strata Property Act & Regulation Excerpt



Strata Property Act [SBC 1998] Chapter 43, Part 6, Division 1, Section 94: Depreciation Report

(1) In this section, “qualified person” has the meaning set out in the regulations. (2) Subject to subsection (3), a strata corporation must obtain from a qualified person, on or

before the following dates, a depreciation report estimating the repair and replacement cost for major items in the strata corporation and the expected life of those items:

(a) For the first time, (i) December 14, 2013, in the case of a strata corporation that existed on

December 14, 2011, or (ii) the prescribed date, in all other cases;

(b) if the strata corporation has, before or after the coming into force of this section, obtained a depreciation report that complies with the requirements of this section, the date that is the prescribed period after the date on which that report was obtained;

(c) if the strata corporation has, under subsection (3) (a), waived the requirement under this subsection to obtain a depreciation report, the date that is the prescribed period after the date on which the resolution waiving the requirement was passed.

(3) A strata corporation need not comply with the requirement under subsection (2) to obtain a depreciation report on or before a certain date if

(a) The strata corporation, by a resolution passed by a 3/4 vote at an annual or special general meeting within the prescribed period, waives that requirement, or

(b) The strata corporation is a member of a prescribed class of strata corporations. (4) A depreciation report referred to in subsection (2) must contain the information set out

in the regulations.

Strata Property Regulation [amended up to B.C. Reg. 68/2014, July 16, 2014] Part 6.2: Depreciation Report

(1) For the purposes of section 94 of the Act, a depreciation report must include all of the following:

(a) a physical component inventory and evaluation that complies with subsection (2); (b) a summary of repairs and maintenance work for common expenses respecting the

items listed in subsection (2) (b) that usually occur less often than once a year or that do not usually occur;

(c) a financial forecasting section that complies with subsection (3); (d) the name of the person from whom the depreciation report was obtained and a

description of (i) that person’s qualifications,



(ii) the error and omission insurance, if any, carried by that person, and (iii) the relationship between that person and the strata corporation;

(e) the date of the report; (f) any other information or analysis that the strata corporation or the person

providing the depreciation report considers appropriate. (2) For the purposes of subsection (1) (a) and (b) of this section, the physical component

inventory and evaluation must (a) be based on an on-site visual inspection of the site and, where practicable, of the

items listed in paragraph (b) conducted by the person preparing the depreciation report,

(b) include a description and estimated service life over 30 years of those items that comprise the common property, the common assets and those parts of a strata lot or limited common property, or both, that the strata corporation is responsible to maintain or repair under the Act, the strata corporation’s bylaws or an agreement with an owner, including, but not limited to, the following items:

(i) the building's structure; (ii) the building's exterior, including roofs, roof decks, doors, windows and

skylights; (iii) the building's systems, including the electrical, heating, plumbing, fire

protection and security systems; (iv) common amenities and facilities; (v) parking facilities and roadways; (vi) utilities, including water and sewage; (vii) landscaping, including paths, sidewalks, fencing and irrigation; (viii) interior finishes, including floor covering and furnishings; (ix) green building components; (x) balconies and patios, and

(c) identify common property and limited common property that the strata lot owner, and not the strata corporation, is responsible to maintain and repair.

(3) For the purposes of subsection (1) (c), the financial forecasting section must include (a) the anticipated maintenance, repair and replacement costs for common expenses

that usually occur less often than once a year or that do not usually occur, projected over 30 years, beginning with the current or previous fiscal year of the strata corporation, of the items listed in subsection (2) (b),

(b) a description of the factors and assumptions, including interest rates and rates of inflation, used to calculate the costs referred to in paragraph (a),

(c) a description of how the contingency reserve fund is currently being funded,



(d) the current balance of the contingency reserve fund minus any expenditures that have been approved but not yet taken from the fund, and

(e) at least 3 cash-flow funding models for the contingency reserve fund relating to the maintenance, repair and replacement over 30 years, beginning with the current or previous fiscal year of the strata corporation, of the items listed in subsection (2) (b).

(4) For the purposes of subsection (3) (e), the cash flow funding models may include any one or more of the following:

(a) balances of, contributions to and withdrawals from the contingency reserve fund; (b) special levies; (c) borrowings.

(5) If a strata corporation contributes to the contingency reserve fund based on a depreciation report, the contributions in respect of an item become part of the contingency reserve fund and may be spent for any purpose permitted under section 96 of the Act.

(6) For the purposes of section 94 (1) of the Act, "qualified person" means any person who has the knowledge and expertise to understand the individual components, scope and complexity of the strata corporation’s common property, common assets and those parts of a strata lot or limited common property, or both, that the strata corporation is responsible to maintain or repair under the Act, the strata corporation's bylaws or an agreement with an owner and to prepare a depreciation report that complies with subsections (1) to (4).

(7) The following periods are prescribed: (a) for the purposes of section 94 (2) (b) of the Act, 3 years; (b) for the purposes of section 94 (2) (c) of the Act, 18 months; (c) for the purposes of section 94 (3) (a) of the Act, the one year period immediately

preceding the date on or before which the depreciation report is required to be obtained.

A strata corporation is prescribed for the purposes of section 94 (3) (b) of the Act if and for so long as there are fewer than 5 strata lots in the strata plan.


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix D—Sections

Appendix D—Sections


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix D—Sections

Sections In some jurisdictions, strata corporations can be split into legally-distinct sections with each section representing the interests of its respective members. A section operates independent of other sections in matters that relate solely to the section. Each section can elect a council while the strata council administers functions which relate to the operations of the strata corporation as a whole.

Only specific and distinct types of lots can form sections, such as residential and non-residential lots comprising a single corporation, or non-residential strata lots of a single corporation that are used for significantly different purposes. Residential strata lots may only divide into apartments, townhouses, and detached houses.

If a strata corporation is operating under several sections, this report prepares a unique forecast and budget for each section, as well as one for any combination of sections that have shared responsibility for the components described within this report. This helps each section budget independently of the others as they see fit. If the strata corporation could benefit from operating under separate sections we will make that clear, but we will prepare our report in conjunction with their current practices so that it is more practical to implement.

With respect to matters relating solely to one section, the section is a corporation and has the same powers as the strata corporation to:

• Establish its own operating fund and reserve fund for common expenses of the section, including expenses relating to limited common property designated for the exclusive use of all the lots in that section.

• Prepare a section budget and require section owners to pay fees and special levies for expenditures authorized by the section.

• Enter contracts in the name of the section. • Sue or arbitrate in the name of the section. • Acquire and dispose of land and other property in the name of or on behalf of the

section. • Enforce bylaws, regulations, and rules.

Separate sections within a strata corporation may establish their own operating fund and reserve fund for common expenses that relate exclusively to that section.


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix E—Reserve Component Descriptions and Analyses

Appendix E—Reserve Component Descriptions and Analyses



Component Page Index

Substructure and Underground Garage/Parkade - Strata ............................................................ 82 Wall Assemblies - Metal Siding - Strata ........................................................................................ 83 Wall Assemblies - Concrete Siding - Strata ................................................................................... 84 Window Wall Assemblies - High Rise - Strata ............................................................................... 85 Window Assemblies - Low Rise - Strata ........................................................................................ 86 Commercial Storefront - Strata..................................................................................................... 87 Townhouse Garage Door Assemblies - Metal - Strata .................................................................. 88 Common Door Assemblies - Wood - Residential Section ............................................................. 89 Common Door Assemblies - Metal - Strata .................................................................................. 90 Common Door Assemblies - Metal - Commercial Section ............................................................ 91 Common Door Assemblies - Metal - Residential Section ............................................................. 92 Common Door Assemblies - Metal and Glass - Strata .................................................................. 93 Common Door Assemblies - Metal and Glass - Residential Section ............................................. 94 Common Door Assemblies - Sliding Glass - Strata ........................................................................ 95 Caulking and Weather-Stripping / Maint & Repair - Strata .......................................................... 96 Expansion Joint Caulking / Maint & Repair - Strata ...................................................................... 97 Balcony Floor Construction - Concrete - Strata ............................................................................ 98 Terraces - Strata ............................................................................................................................ 99 Balcony Railings - Strata .............................................................................................................. 100 Roof Assembly - High-Rise - EPDM Membrane - Strata.............................................................. 101 Roof Assembly - Commercial/Townhouse - EPDM Membrane - Strata ..................................... 102 Roof Access Hatch - Commercial/Townhouse - Strata ............................................................... 103 Metal Fireplace Chimney/Vent - Strata ...................................................................................... 104 Skylights - Strata .......................................................................................................................... 105 Canopy Repair - Metal/Glass - Strata.......................................................................................... 106 Exterior Building Painting - Strata ............................................................................................... 107 Balcony Floor Finish - Strata ....................................................................................................... 108 Parkade Floor Coating - Strata .................................................................................................... 109 Underground Garage Markings - Strata ..................................................................................... 110 Garage Insulation - Strata ........................................................................................................... 111 Security Gates - Strata ................................................................................................................ 112 Parkade Lighting - Strata ............................................................................................................. 113 Interior Common Corridor Painting - Strata ............................................................................... 114 Interior Common Corridor Painting - Commercial Section......................................................... 115 Interior Common Corridor Painting - Residential Section .......................................................... 116 Interior Common Corridor Wallpaper - Residential Section ...................................................... 117 Interior Stairwell Painting - Commercial Section ........................................................................ 118 Interior Stairwell Painting - Residential Section ......................................................................... 119 Interior Common Area Flooring - Carpet - Residential Section .................................................. 120



Interior Common Area Flooring - Commercial Section .............................................................. 121 Interior Common Area Flooring - Tile - Residential Section ....................................................... 122 Interior Common Area Lighting - Strata ..................................................................................... 123 Interior Common Area Lighting - Commercial Section ............................................................... 124 Interior Common Area Lighting - Residential Section ................................................................ 125 Lobby Renovation - Residential Section ..................................................................................... 126 Elevator Cab Renovation - Commercial Section ......................................................................... 127 Elevator Cab Renovation - Residential Section ........................................................................... 128 Sump Pumps / Drains and Controls - Strata ............................................................................... 129 Domestic Cold Water Supply - Commercial Section ................................................................... 130 Domestic Hot and Cold Water Supply - Residential Section ...................................................... 131 Sprinkler System - Strata ............................................................................................................. 132 Heating System - Boiler - Residential Section ............................................................................. 133 Heating System - Electric Baseboard - Strata ............................................................................. 134 Heating System - Hot Water Storage Tanks - Residential Section .............................................. 135 Make-up Air Handling Unit - Commercial Section ...................................................................... 136 Make-up Air Handling Unit - Residential Section ....................................................................... 137 Special and Exhaust Equipment - Residential Section ................................................................ 138 Garbage Handling System - Residential Section ......................................................................... 139 Elevator Modernization - Traction - Residential Section ............................................................ 140 Elevator Modernization - Hydraulic - Commercial Section ........................................................ 141 Electrical Distribution System and Fixtures - Strata ................................................................... 142 Entry System - Intercom - Commercial Section .......................................................................... 143 Entry System - Intercom - Residential Section ............................................................................ 144 Security / Surveillance System - Strata ....................................................................................... 145 Fire Alarm System - Strata .......................................................................................................... 146 Gas Detectors - Strata ................................................................................................................. 147 Emergency Generator - Strata .................................................................................................... 148 Amenity Rooms - Residential Section ......................................................................................... 149 Exercise Room - Residential Section ........................................................................................... 150 Exercise Equipment - Residential Section ................................................................................... 151 Pool - Mechanical - Residential Section ...................................................................................... 152 Pool - Structure - Residential Section ......................................................................................... 153 Pool - Furnishings - Residential Section ...................................................................................... 154 Indoor Pool Room - Residential Section ..................................................................................... 155 Hot Tub - Mechanical - Residential Section ................................................................................ 156 Hot Tub - Structure - Residential Section ................................................................................... 157 Sauna/Steam Room - Mechanical - Residential Section ............................................................. 158 Sauna/Steam Room - Structure - Residential Section ................................................................ 159 Common Area Washrooms / Changerooms - Residential Section ............................................. 160 Common Area Washrooms / Changerooms - Commercial Section ........................................... 161



Storage Lockers - Residential Section ......................................................................................... 162 Mailboxes - Residential Section .................................................................................................. 163 Site Services - Sewer and Water - Strata .................................................................................... 164 Concrete Paving and Curbs - Strata ............................................................................................ 165 Pavers - Strata ............................................................................................................................. 166 Concrete Patio - Residential Section ........................................................................................... 167 Exterior Landscaping - Strata ...................................................................................................... 168 Exterior Landscaping - Residential Section ................................................................................. 169 Ponds / Water Feature - Residential Section .............................................................................. 170 Retaining Walls - Concrete - Strata ............................................................................................. 171 Rooftop Planters - Strata ............................................................................................................ 172 Common Exterior Railings - Metal - Strata ................................................................................. 173 Exterior Lighting - Strata ............................................................................................................. 174 Depreciation Report - Strata ....................................................................................................... 175



Year of Acquisition

Dol lars SpentExpected Li fespanEffective AgeRemaining Li fespan

QuantityCurrent Job Cost

Component Description

This component includes all below-grade portions of the property: the foundation and parkade, including footings, basement floors, walls, ceilings, columns, membrane, and expansion joints. These are poured concrete or masonry block.

Condition Analysis

Based upon a partial visual-inspection, this component appears to be in average or better condition for its age. No major deficiencies were noted at the time of visual inspection.

Reserve History

2003/2016

Work Completed Unknown total scope of reserve funded work completed to date.

Unknown total reserve expenditures to date.

Component 1 Substructure and Underground Garage/Parkade - Strata

Suggested Maintenance

The life of this component may be prolonged by effective maintenance which include regular visual inspection of the walls, columns, and slab edges for signs of cracking. Regular application of waterproof membranes, Cathodic protection; Chloride extraction; Re-alkalisation and repair of cracks can extend the components life. Annual inspection for damage, spalling cracks, efflorescence or debris collection.

Funding Analysis

WorkProvided a crack is not structural, the wall can be injected with a sealant. Other repair options may include spot replacement of damaged concrete, patchwork, and resealing the exterior foundation wall.

BudgetA budget equal to 2% of the estimated cost of the component is provided for periodic major repairs every 5 years.

980 LF$44,228.57

Life Cycle Analysis

5 years (Budget Provision)3 years2 years

Potential Deterioration

Potential deterioration includes water and road salt penetration on the surface of the concrete. Salt corrosion and water penetration of reinforcing rebar and freeze-thaw cycles can spall concrete. Hydraulic pressure caused by poor drainage and settling could also cause concrete cracking. The membrane can be damaged by cracked concrete, wear and tear, and material breakdown due to age. Under ideal conditions, concrete has a life of 100+ years.



Year of Acquisition



A budget equal to 50% of the estimated cost of the component is provided for periodic major repairs every 50 years.

30,000 SF$210,616.93

Life Cycle Analysis



Metal siding is a long term product but prone to impact damage which makes it very unsightly. Metal is difficult for paint to adhere to so it is also affected by peeling or discolouration of the surfaces exposed to the sunlight. Connectors and metal fasteners are susceptible to corrosion and failure.


Metal siding comes in a variety of metals, styles, and colours. It is most often associated with modern, industrial, and retro buildings. Utilitarian buildings often use corrugated galvanized steel sheet siding or cladding, which often have a coloured vinyl finish. Corrugated aluminum cladding is also common where a more durable finish is required.

Condition Analysis


Reserve History

2003



Component 2 Wall Assemblies - Metal Siding - Strata

Funding Analysis

WorkRemoval of existing wall assembly. Appropriate safety precautions will be required.

Budget


The life of this component may be prolonged by regular cleaning and inspection of the screws and fasteners. Many of the areas of potential deterioration are readily identifiable on visual inspection. Bi-annual visual inspection should be undertaken. Attention should be given to areas of rust, warping and buckling or corrosion.



Year of Acquisition




Window walls are composed of vertical and horizontal metal framing members containing operable windows. These are non-bearing glass walls attached to the building's exterior structural frame. This component accounts for a partial replacement of the glass.

Condition Analysis


Reserve History

2003



Component 4 Window Wall Assemblies - High Rise - Strata


The life of this component may be prolonged by effective maintenance which could include applying new sealant regularly, and repairs as required. Seals should be inspected every 3-5 years. These have a typical lifespan of 15 years and should be inspected more regularly as they approach the end of this life.

Funding Analysis

WorkRemoving and replacing the damaged window. Flashing and seal materials for trim. All access considerations (crane & bosun chair) are accounted for in the following component.


65,000 SF$1,505,786.99

Life Cycle Analysis



Windows are susceptible to the environment and weathering. Leaks can develop due to impact damage, seal deterioration, and improperly installed flashing.



Year of Acquisition



Component 5 Window Assemblies - Low Rise - Strata

Funding Analysis

WorkRemoval and disposal of existing assembly, repairs or replacement as required to the framing substructure and installation of new units. Appropriate safety precautions will be required.


5,000 SF$240,819.27

Life Cycle Analysis



Windows are primarily susceptible to impact damage and tearing of screening material. Frames and sliders can deteriorate due to exposure to the elements and sunlight causing oxidation. Failure or deterioration of the seals can cause fogging and moisture on the inner panes of the window.


The window assemblies are the exterior aluminum-frame windows that are installed in the living areas as well as the common areas. These windows are typically replaced with double-pane aluminum units with fixed or sliding portions, although they can sometimes be replaced with vinyl-framed windows. Windows typically have a "Limited Lifetime Warranty".

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective maintenance which could include caulking, regular inspection for damaged or cracked units and repairs or re-sealing as required. Windows that open require lubrication and cleaning of tracks and hinges. Split, or buckled caulking should be stripped and replaced immediately.



Year of Acquisition



Life Cycle Analysis

40 years15 years25 years


Framing finish deteriorates due to exposure to the elements, such as wind, rain, snow, freeze-thaw cycles, and extreme temperature changes. Sealant and IGO replacement can become overly expensive and ineffective.


Commercial storefront is a non-structural exterior wall assembly. Glass window walls are composed of metal framing with insulated glass unit (IGU) panels. Window walls can be site assembled from components or pre-assembled and installed as units. Window walls are designed to shed water that penetrates the framing. This component includes an allowance for the failure of seals that results in fogging of IGUs, and the maintenance of sealant.

Condition Analysis


Reserve History

2003



Component 6 Commercial Storefront - Strata

Funding Analysis

WorkRemoval and disposal of existing assembly, repairs or replacement as required to the commercial storefront. This work will have to be done in a timely manner to limit inconvenience to businesses.

BudgetWe have allowed for a full replacement of this component every 40 years.

2,300 SF$160,883.40


The life of this component may be prolonged by effective maintenance which could include regular cleaning, regular inspection for water penetration and carrying out repairs as required. A visual inspection of the window and aluminum frame should be done every 3-5 years. Seals that are worn, cracked or separated should be replaced as soon as possible.



Year of Acquisition




Deterioration may occur from exposure to the sun and atmospheric chemicals. Physical impacts should be addressed when they occur.

Funding Analysis

WorkRemoval and disposal of existing assembly, repairs or replacement as required. Appropriate safety precautions will be required.


5 Doors$11,757.85


25 years

A visual inspection of the door, tracks/rollers and springs should be done annually. Lubrication of rollers, tracks and hinges should be done bi-annually. The life of this component may be prolonged by effective maintenance which could include regular inspection of the door and track assembly.

Component 7 Townhouse Garage Door Assemblies - Metal - Strata


Garage door assemblies account for the double-wide overhead metal doors, including weatherstripping but excluding garage door openers.

Condition Analysis


Reserve History

2003



Life Cycle Analysis

40 years15 years



Year of Acquisition



Life Cycle Analysis



Door hardware is subject to failure due to the constant usage in high traffic areas, such as busy corridors. Constant usage can lead to misalignment. Other common issues are holes or openings in the door assembly, improper gaps, and failure to latch.


This component includes the unit entry wood doors and all associated hardware.

Condition Analysis


Reserve History

2003



Component 8 Common Door Assemblies - Wood - Residential Section


The life of this component may be prolonged by effective maintenance and repairs as required. A visual inspection of the door should be conducted annually. Doors should be cleaned of any debris regularly. A light pressurized water or soft brush can be used.

Funding Analysis

WorkEntire door system can be replaced or door jams and hardware can be replaced as required.


191 Doors$41,232.20



Year of Acquisition



Work Completed Original to building construction.

We assume no reserve expenditures to date.

Life Cycle Analysis


Component 10 Common Door Assemblies - Metal - Commercial Section


This component consists of metal entry doors and lock assemblies including deadbolts as standard hardware. Metal doors can sometimes last the lifetime of a property, but we have included a budget provision for periodic repairs.

Condition Analysis

Based upon a partial visual-inspection, this component appears to be in average condition for its age. No major deficiencies were noted or reported at the time of the visual inspection.

Reserve History

2003


Metal doors are subject to wear and tear from excessive use and damage from excessive force. The hinges and latch mechanism are prone to damage from excessive force, breakage, and impact damage.

Funding Analysis

WorkEntire door system can be replaced, or door, jams, and hardware can be replaced as required.


17 Doors$3,005.04


Regular maintenance of lock assemblies and inspection and repair of door assemblies as required may extend the life of this component. Component should be visually inspected every 5-8 years. Maintenance should include lubrication of hinges. Closing devices should be checked for fluid leakage.



Year of Acquisition



Component 11 Common Door Assemblies - Metal - Residential Section


This component consists of residential section metal entry doors and lock assemblies including deadbolts as standard hardware. Metal doors can sometimes last the lifetime of a property, but we have included a budget provision for periodic repairs.

Condition Analysis


Reserve History

2003



Life Cycle Analysis



Metal doors are subject to wear and tear from excessive use and damage from excessive force. The hinges and latch mechanism are prone to damage from excessive force, breakage, and impact damage.

Funding Analysis

WorkEntire door system can be replaced, or door, jams, and hardware can be replaced as required.


118 Doors$20,858.48





Year of Acquisition



Life Cycle Analysis



Metal doors are subject to wear and tear from excessive use and damage from excessive force. The hinges and latch mechanism are prone to damage from excessive force, breakage, and impact damage. Glass seals can weaken and allow water ingress.

Reserve History

2003



Component 12 Common Door Assemblies - Metal and Glass - Strata

Funding Analysis

WorkEntire door system can be replaced, or door, jams, and hardware can be replaced as required. Glazing can be replaced separate from door.


9 Doors$20,260.19



This component consists of metal insulated doors with glass inserts and lock assemblies including deadbolts as standard hardware. Metal and glass doors can sometimes last the lifetime of a property, but we have included a budget provision for periodic repairs.

Condition Analysis





Year of Acquisition




22 Doors$11,889.01




This component consists of metal insulated doors with glass inserts and lock assemblies including deadbolts as standard hardware. Metal and glass doors can sometimes last the lifetime of a property, but we have included a budget provision for periodic repairs.

Condition Analysis

Based upon a partial visual-inspection, this component appears to be in average / good condition for its age. No major deficiencies were noted at the time of visual inspection.

Reserve History

2003



Life Cycle Analysis

30 years (Budget Provision) years30 years


Metal doors are subject to wear and tear from excessive use and damage from excessive force. The hinges and latch mechanism are prone to damage from excessive force, breakage, and impact damage. Glass seals can weaken and allow water ingress.

Funding Analysis

WorkEntire door system can be replaced, or door, jams, and hardware can be replaced as required. Glazing can be replaced separate from door.

Budget

Component 13 mmon Door Assemblies - Metal and Glass - Residential Section



Year of Acquisition




This component includes the sliding glass doors that lead to the balconies and patios. The door systems are single units consisting of two panel sections, one fixed and one mobile to slide open. These doors can be replaced one-at-a-time as required, but for the sake of this report we have budgeted a periodic large-scale replacement.

Condition Analysis


Reserve History

2003



Component 14 Common Door Assemblies - Sliding Glass - Strata


The life of this component may be prolonged by effective maintenance which could include new rollers and springs as well as seals, and repairs as required. Rollers and tracks should be lubricated every year. Debris should be removed from tracks.

Funding Analysis

WorkRemove and replace rollers or tracks; replace the glass if damaged. The entire assembly can be replaced at end-of-life. Care to ensure proper flashing and water diversion is required.


227 Doors$224,104.13

Life Cycle Analysis



The roller, tracks, hinges, and handles are just a few of the replaceable parts of a sliding glass door. The most common problem is rollers, which can deteriorate with age, usage, rust and collect dirt and material. Physical damage can occur from impacts or building shifting. Glass lites can suffer from impact damage and seals can fail, leading to moisture problems.



Year of Acquisition



Component 15 Caulking and Weather-Stripping / Maint & Repair - Strata

Funding Analysis

WorkRemoval of existing caulking, installation of new caulking. Appropriate safety precautions will be required, including safety harness and any required scaffolding.


1 Allowance$82,500.00

Life Cycle Analysis



Sealant can dry out and crack as a result of drying and thermal expansion/contraction. Caulking relies on flexibility to maintain seals between building materials and gradually succumbs to elements such as sunlight, rain, and temperature fluctuations. The caulking hardens and cracks allowing water penetration and heat loss.


This component consists of all building caulking. It is applied around windows, exterior doors, and some trim. Caulking is a flexible sealant designed to allow for the different expansion and contraction rates of the two materials it bridges.

Condition Analysis


Reserve History

2003




Regular upkeep of seals will prevent problems as a result of moisture infiltrating the building envelope and window assemblies and can extend the overall life of protected assemblies. Caulking should be visually inspected every year. Inspection should involve gentle prodding of the caulk (recommend using your finger) to determine consistency.



Year of Acquisition



Life Cycle Analysis



Sealants or gaskets can dry out and crack as a result of drying and thermal expansion / contraction. Caulking relies on flexibility to maintain seals between building materials and gradually succumbs to elements such as sunlight, rain, and temperature fluctuations. The caulking hardens and cracks allowing water penetration and heat loss.


Expansion joints are typically filled with either a sealant or a filler. A sealer is soft and able to accommodate the concrete slab's expansion and contraction. A filler is a rigid material that supports the edge of the joint.

Condition Analysis


Reserve History

2003



Component 16 Expansion Joint Caulking / Maint & Repair - Strata


Regular upkeep of seals will prevent problems as a result of moisture infiltrating the building envelope and window assemblies and can extend the overall life of protected assemblies. Caulking should be visually inspected every 3-5 years. Inspection should involve gentle prodding of the caulk (recommend using your finger) to determine consistency.

Funding Analysis

WorkRemoval of existing caulking, installation of new caulking. Appropriate safety precautions will be required including, safety harness and any require scaffolding.





Year of Acquisition




This component accounts for a small amount of repair work done to the concrete balcony structure. We have budgeted for minor concrete patching. Excluded from this report is any serious structural damage requiring cutting, rebar repair, reframing, and concrete pouring.

Condition Analysis


Reserve History

2016



Component 17 Balcony Floor Construction - Concrete - Strata


The life of this component may be prolonged by effective maintenance which could include regular inspection for moisture seepage and keeping the floor free from debris. Balcony flooring should be inspected every 3-5 years. Membrane connection points and seams should be given extra attention.

Funding Analysis

WorkRemoval and disposal of existing assembly, repairs or replacement as required. Appropriate safety precautions will be required.


16,646 SF$93,558.52

Life Cycle Analysis



Includes exposure to the elements which may cause water seepage leading to subsequent weakening of the membrane. Physical damage may occur from debris, moss and algae, and impact damage.



Year of Acquisition



Component 18 Terraces - Strata

Funding Analysis

WorkRemoval of pavers, replacing the insulation and membrane, then replacing the pavers with an allowance for breakage.


15,511 SF$157,299.60

Life Cycle Analysis



Includes exposure to the elements which may cause water seepage leading to subsequent weakening of the membrane. Physical damage may occur from debris, moss and algae, and impact damage.


The life of this component may be prolonged by effective maintenance which could include regular inspection for moisture seepage and keeping the floor free from debris.


Also known as Decks/Balconies over Occupied Space. This includes all the terraces on the exterior of the building, but does not include any balconies. The terraces are above enclosed spaces and often have planters on them.

Condition Analysis


Reserve History

2003





Year of Acquisition




Balcony railings are part of the safety system of the balcony, and they provide aesthetic value to the complex. The balcony railings are aluminum and include metal fasteners, posts and rails.

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective maintenance which could include regular inspection for corrosion, and loose fasteners/membrane. Railings should be inspected every 2-3 years.

Funding Analysis

Work

Metal can suffer fatigue due to shifts in the building, corrosion or rust from elements will undermine the safety of the fasteners and connection points. Glass is susceptible to impact damage. Seals can become worn and loose.

Component 19 Balcony Railings - Strata

Removal and disposal of existing assembly, repairs or replacement as required. Appropriate safety precautions will be required.


2,100 LF$162,137.82

Life Cycle Analysis





Year of Acquisition



3 years


Roofing systems are susceptible to weather. Due to the thinner surface, these roof systems can be easily punctured. They have a relatively shorter life span than other roofing material and can be susceptible to water retention and seam failure.

Funding Analysis

Work

Cut away and remove damaged or failed roofing material. Replace underlay or insulation material as required. Clean sub surface and apply new membrane. Care to maintain solid seam finish and appropriate flashing at connector points.


7,000 SF$210,000.00

Life Cycle Analysis

18 years15 years

Component 20 Roof Assembly - High-Rise - EPDM Membrane - Strata


The life of this component may be prolonged by effective maintenance which could include patching and repairs as required. Bi-annual visual inspection of roof. Care should be made to examine membrane connections. Attention to loose flashing. Patching of weathered membrane.


A roof system in which the principal roof covering is a single layer of flexible membrane often thermoset or thermoplastic. Thermoset membranes are compounded from synthetic rubber polymers, and the most commonly used polymers are EPDM, CSPE and Neoprene. Two of the most commonly-used thermoplastic single-ply membranes are PVC and TPO, both of them plastic-based materials.

Condition Analysis


Reserve History

2003





Year of Acquisition



Condition Analysis


Life Cycle Analysis



Roofing systems are susceptible to weather. Due to the thinner surface, these roof systems can be easily punctured. They have a relatively shorter life span than other roofing material and can be susceptible to water retention and seam failure.

Funding Analysis

Work

Reserve History

2003



Component 21 Roof Assembly - Commercial/Townhouse - EPDM Membrane - Strata


A roof system in which the principal roof covering is a single layer of flexible membrane often thermoset or thermoplastic. Thermoset membranes are compounded from synthetic rubber polymers, and the most commonly used polymers are EPDM, CSPE and Neoprene. Two of the most commonly-used thermoplastic single-ply membranes are PVC and TPO, both of them plastic-based materials.

Cut away and remove damaged or failed roofing material. Replace underlay or insulation material as required. Clean sub surface and apply new membrane. Care to maintain solid seam finish and appropriate flashing at connector points.


14,000 SF$390,000.00


The life of this component may be prolonged by effective maintenance which could include patching and repairs as required. Bi-annual visual inspection of roof. Care should be made to examine membrane connections. Attention to loose flashing. Patching of weathered membrane.



Year of Acquisition




Component 22 Roof Access Hatch - Commercial/Townhouse - Strata


Component should be inspected during each use to ensure the latches and safety mechanisms are functioning. Maintenance includes lubrication and tightening of any connectors or moving parts.

Funding Analysis

WorkSprings, hinges, levers and latches can be replaced. Gas assisted or hydraulic levers can be replaced.


1 Hatch$2,126.28

Life Cycle Analysis



Hinges and springs can wear or become corroded with exposure to elements. Seals or flashing can pull away from the box. Hydraulics or gas assist levers can leak and fail. Physical damage from wind or operator misuse can occur.


The component consists of a metal box frame with a lid or cover. These units are sealed and form part of the integral roofing system.

Condition Analysis


Reserve History

2003




Year of Acquisition



Component 23 Metal Fireplace Chimney/Vent - Strata

Funding Analysis

Work

Metal components can be replaced and single-wall flue connectors, if corroded on the bottom of horizontal sections, can be replaced with Type B or L flues which will maintain the flue gas temperature and minimize condensation. Removal and disposal of failed equipment or parts and replacement of such parts as required.



Life Cycle Analysis



Chimneys are exposed to weather, high and low temperatures, water and moisture, animals and insects, corrosive gases, installation failure, combustible products, flue gases, and sparks. Proper venting of flue gases is necessary for safe and efficient heating system operation.


Type B (550oF) metal vents are a pipe within a pipe with air space between the two walls. The inner wall is aluminum to resist corrosion and the outer wall is galvanized steel for strength. Type L (1000oF) metal vents use stainless steel for the inner pipe for higher temperatures. Type B are used for gas fired appliances.

Condition Analysis


Reserve History

2003




A periodic and careful chimney inspection is important. The life of this component may be prolonged by effective maintenance and repairs as required.



Year of Acquisition



Life Cycle Analysis



Skylights are susceptible to the environment and weathering. They can fail and develop leaks. Leaks are due to small cracks caused by an object hitting the skylight, or a deteriorating seal around the edges. Improperly installed flashing can contribute to skylight failure.


A skylight is defined as an overhead window forming part of the roof, allowing light into the interior of a structure. Skylights form part of the roof structure and can be constructed of aluminum and glass or plexi-glass. These are boxed with flashing and trim to secure to the roofing structure.

Condition Analysis


Reserve History

2003



Component 24 Skylights - Strata


The life of this component may be prolonged by effective maintenance which could include replacing flashing as required. Component should be inspected every 3-5 years and in conjunction with roof inspection. Removal of debris and review of flashing should be done.

Funding Analysis

WorkRemove old skylight system. Take care to pull back roofing flashing and material, install new skylight system and secure. Flashing and seal materials for trim, and reapply roofing finish.





Year of Acquisition




Metal canopies are coverings that are used to define spaces, accentuate an area, provide a focus, or create ceiling sculptures. It's a range of curved (concave and convex) and flat canopies which can be suspended from the building structure or fixed to a wall.

Condition Analysis


Reserve History

2003



Component 25 Canopy Repair - Metal/Glass - Strata


The life of this component may be prolonged by effective maintenance which could include new caulking and sealant at regular intervals and repairs as required. This component should be inspected annually. Moss/debris buildup should be removed. Metal support structure should be checked for corrosion and physical damage.

Funding Analysis

Work Repairs or replacement as required.


12 Canopies$8,422.86

Life Cycle Analysis



Affected by fading, impact damage, environmental effects, and poor installation. Elements may deteriorate the durability and paint resulting in peeling or discolouration.



Year of Acquisition



Component 26 Exterior Building Painting - Strata

Funding Analysis

WorkIncludes surface preparation, finish coats, and clean up. Additional special conditions may include scaffolding where required, safety precautions, and safeguarding the work area perimeter.



Life Cycle Analysis

18 years1 year17 years


Includes exposure to the elements, such as wind, rain, snow, freeze-thaw cycles, and extreme temperature changes. UV light may deteriorate the paint and cause fading. Physical damage may occur from debris, vandalism, and impact damage.


This reserve item considers the preparation and repainting of the exterior surfaces of the building. This includes pressuring washing the entire building and painting the wood trim and composite siding while excluding the vinyl and brick siding.

Condition Analysis


Reserve History

2018




The life of this component may be prolonged by effective maintenance which could include regular inspection for damage and subsequent touch-ups / repairs as required. Areas with hash weather exposure should be reviewed more regularly.



Year of Acquisition



Life Cycle Analysis



Includes exposure to the elements, such as wind, rain, snow, freeze-thaw cycles, and extreme temperature changes. UV light may deteriorate the chemical bonding agent, wearing the waterproof resistance down. Physical damage may occur from debris, vandalism, and impact damage. Membrane shrinkage can occur.


The balcony floors are finished with a protective waterproof membrane.

Condition Analysis


Reserve History

2016



Component 27 Balcony Floor Finish - Strata


The life of this component may be prolonged by effective maintenance which could include regular inspection for damage and subsequent spot repairs as required. Regular inspection of seams, wall junctions and flashing areas. Areas with hash weather exposure should be reviewed more regularly.

Funding Analysis

Work

Surface preparation, potentially including scraping and lifting of damaged or worn materials. Depending on the subsurface, sanding or replacement of material may be required. Additional special conditions may include scaffolding where required, safety precautions, and safeguarding the work area perimeter.





Year of Acquisition




This component is an Epoxy/Urethane coating applied to the concrete parkade flooring. These sealers are applied to protect the concrete from surface damage, corrosion and staining. The sealers reduce concrete absorption of salts, water and other minerals and chemicals.

Condition Analysis


Reserve History

2003



Component 28 Parkade Floor Coating - Strata


The material is very resistant to staining and damage. Regular inspection of the system to look for blistering, or staining, which could be indicative of subsurface issues. Light pressure washing and/or sweeping to clear debris should be part of regular scheduled maintenance.

Funding Analysis

Work

Removal can be difficult. Typical remedial work includes super heating the material, or use a chemical to dissolve the membrane. Additional work has been undertaken by using mechanical scrapers or sand blasters to remove materials.



Life Cycle Analysis



Epoxy/Urethane Systems are very hardy, but can suffer from blistering due to improper installation of de-bonding of chemical adhesion. Adhesion failure can occur. Physical damage is rare, however in heavily travelled areas or sections encountering extreme chemical presence can fail earlier.



Year of Acquisition



Component 29 Underground Garage Markings - Strata

Funding Analysis

WorkRemove existing lines, prep surfaces, check for moisture in concrete, prime, paint and seal.


276 Stalls$7,820.51

Life Cycle Analysis



Subject to wear and tear and impact damage, as well as exposure from weathering.


Includes painting of concrete and asphalt surfaces such as concrete blocks, asphalt speed bumps, painted lines on concrete or asphalt for reserved / visitor parking stalls, and concrete safety columns.

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective maintenance which could include power washing, regular stain removal and regular inspection for damage.



Year of Acquisition



Life Cycle Analysis



This material does not rot, however can be damaged physically.


This component accounts for the spray foam insulation found in select areas on the parkade ceiling.

Condition Analysis


Reserve History

2003



Component 30 Garage Insulation - Strata


The life of this component may be prolonged by regular inspections and repairs as required.

Funding Analysis

Work Scrape and remove, cleaning surface prior to re-applying.





Year of Acquisition




This component is a typical overhead door consisting of multiple panels hinged together that roll along a system of tracks guided by rollers. The security gate is used to control vehicle access to the parkade. The gate is operated electronically.

Condition Analysis


Reserve History

2003



Component 31 Security Gates - Strata


The life of this component may be prolonged by effective maintenance which could include new springs, rollers and tracks. The bearings, hinges, and rollers should be lubricated for proper and safe operation. The torsion springs should also be lubricated with a light coat of penetrating oil to reduce the friction between the coils, eliminate any noise, and increase the life of the springs. Repairs as required.

Funding Analysis

WorkIncludes disposal and replacement of the existing gate, hardware, and electronic system.


3 Gates$26,535.97

Life Cycle Analysis



The track and rolling mechanism is subject to wear and tear. Electronic failure of controls and access equipment. Mechanical failure of wheels or operator. Accidental collision or physical damage from shifts in building envelope. Exposure to the elements including corrosion.



Year of Acquisition



Component 32 Parkade Lighting - Strata

Funding Analysis

Work

Tubes can be replaced as needed. Ballasts will require a certified electrician de-energize the unit, remove and replace the unit. Conversion to LED lights requires modification or replacement of ballasts.



Life Cycle Analysis



The ballast system will typically last 50,000 hours in nominal temperature (+ 10° C). Ballasts are susceptible to power spikes or extreme temperatures. The tubes have a typical life of 8,000 hours. These are susceptible to impact damage, power surges and extreme temperatures. LED lights have a life of 40,000 and have similar deterioration issues.


Parkade lighting includes ceiling mounted fluorescent fixtures, exit lights, and emergency lighting systems. Component includes ballasts, electrical connection and light tubes.

Condition Analysis


Reserve History

2017




The component life can be extended by maintaining a constant temperature, reducing moisture and limiting on/off cycles.



Year of Acquisition




The life of this component may be prolonged by effective maintenance which could include cleaning and maintaining a controlled environment.


This component refers to the painting of the common corridors inside the building. This includes paint on walls and trim, and includes preparation and clean up. Two coats of interior latex paint is applied on common area walls. Interior wood trim is painted with semi-gloss paint. Excludes integrated construction and repair work.

Condition Analysis


Reserve History

2003



Component 33 Interior Common Corridor Painting - Strata

Funding Analysis

Work

Preparation of painted surface is required. Typically includes washing and light sanding. Two coats are applied on the surface. Masking of fixtures and painting of trim and doors. Clean up and maintaining a tidy work-space throughout the project.



Life Cycle Analysis



Interior paint can deteriorate from UV sources, physical damage or water/moisture ingress. Repainting can also be done for aesthetic reasons.



Year of Acquisition



Life Cycle Analysis




Funding Analysis

Work








Component 34 Interior Common Corridor Painting - Commercial Section



Condition Analysis


Reserve History

2003



Year of Acquisition




Component 35 Interior Common Corridor Painting - Residential Section



Condition Analysis


Reserve History

2003



Life Cycle Analysis




Funding Analysis

Work







Year of Acquisition



Funding Analysis

WorkPhysically remove the paper material, but steam heating, scrapping or removal of portions of the wall substructure. Wall surface must be prepared which requires removal of any remnants of bonding material.



10 years


Wallpaper has a longer lifespan than paint, however has the same potential deterioration. Adhesive material can lose its bond over time. Moisture can quicken the deterioration. Physical damage can occur causing tears, dirt build up or fading from UV light.


This component accounts for the common corridor wallpaper inside the building.

Condition Analysis


Reserve History

2003



Component 36 Interior Common Corridor Wallpaper - Residential Section


Light cleaning of build up material on a regular basis. Using a bonding agent to re-attach any material losing adhesion. Replacement of torn materials.

Life Cycle Analysis

15 years (Budget Provision)5 years



Year of Acquisition




The life of this component may be prolonged by effective maintenance which could include regular inspection for paint fading due to wear and tear and repainting as required.

Includes fading from wear and tear and vandalism. Contributing factors include physical damage and deterioration over time. Repainting can also be done for aesthetic reasons.

Reserve History

2003



Life Cycle Analysis




Funding Analysis

Work Repainting the stairwells as needed.


26,000 SF$1,011.96

Interior stairwell painting is comprised of painting the walls, ceilings, stair lines, and railings in the interior stairwells of the building.

Condition Analysis


Component 37 Interior Stairwell Painting - Commercial Section



Year of Acquisition



Component 38 Interior Stairwell Painting - Residential Section


Interior stairwell painting is comprised of painting the walls, ceilings, stair lines, and railings in the interior stairwells of the building.

Condition Analysis


Reserve History

2003



Life Cycle Analysis



Includes fading from wear and tear and vandalism. Contributing factors include physical damage and deterioration over time. Repainting can also be done for aesthetic reasons.

Funding Analysis

Work Repainting the stairwells as needed.


26,000 SF$10,387.78


The life of this component may be prolonged by effective maintenance which could include regular inspection for paint fading due to wear and tear and repainting as required.



Year of Acquisition



Component 39 Interior Common Area Flooring - Carpet - Residential Section

Funding Analysis

WorkReplacing the damaged area or replacement of the entire area depending on the scope of the deterioration.


24,987 SF$204,984.34


The life of this component may be prolonged by effective maintenance including carpet cleaning and repairs as required.


This component is the flooring finish in the enclosed hallway area inside the building. This area is subject to high traffic volume.

Condition Analysis


Reserve History

2003



Life Cycle Analysis



Due to high traffic volume, the carpet is subject to fading of colour and deterioration.



Year of Acquisition




Due to high traffic volume, the material used as flooring is subject to cracking, breakage, fading of colour, and deterioration.

Component 40 Interior Common Area Flooring - Commercial Section

Life Cycle Analysis



The life of this component may be prolonged by effective maintenance including carpet cleaning and repairs as required.

This component is the flooring finish in the enclosed hallway area inside the building. This area is subject to high traffic volume.

Condition Analysis

Based upon a partial visual-inspection, this component appears to be in average condition for its age. No major deficiencies were noted at the time of visual inspection.

Reserve History

2003




Funding Analysis

WorkReplacing the damaged area or replacement of the entire area depending on the scope of the deterioration.





Year of Acquisition



Life Cycle Analysis



The interior lighting is primarily susceptible to impact damage and vandalism. Over time the lighting may be changed due to redecorating of the common areas or functional obsolescence as replacement bulbs and parts become difficult to find and more efficient methods become available.

Funding Analysis

WorkRemoval and disposal of existing assembly, repairs or replacement as required to the drywall and installation of the new assembly.




The life of this component may be prolonged by effective maintenance which could include regular inspections and repairs as required.


Interior lighting fixtures include the incandescent, exit, and emergency lights. They include housings and ballasts. Bulbs are replaced as part of regular maintenance, as well as switches and sensors. This component includes all lighting in storage rooms, corridors and other common areas, but excludes amenity rooms, lobby, and parkade lighting.

Condition Analysis


Reserve History

Interior Common Area Lighting - Strata

2003



Component 42



Year of Acquisition






Life Cycle Analysis




Interior Common Area Lighting - Commercial Section

Funding Analysis

Work

Condition Analysis


Component 43

Reserve History

2015


Removal and disposal of existing assembly, repairs or replacement as required to the drywall and installation of the new assembly.







Year of Acquisition





2003


10 years



Funding Analysis

Work

Interior Common Area Lighting - Residential Section


Reserve History

Life Cycle Analysis

20 years (Budget Provision)10 years



Condition Analysis

Removal and disposal of existing assembly, repairs or replacement as required to the drywall and installation of the new assembly.




Component 44



Year of Acquisition




This component comprises all of the reserve items and materials of the common lobby area, including flooring, wall finish, fixtures, furnishings, and decorations.

Condition Analysis


Reserve History

2018



Component 45 Lobby Renovation - Residential Section

Funding Analysis

WorkIncludes renovations which can include re-painting, re-flooring, and replacement of fixtures and furnishings. Special conditions may include staged project completion due to access limitations.



Life Cycle Analysis

15 years (Budget Provision)1 year14 years


This component will typically experience wear and tear from owner and visitor use, which could include marking / damage to the wall surfaces including impact damage, damage to the flooring due to use, obsolescence of fixtures and furnishings due to diminished utility or dated design / aesthetics.


The life of this component may be prolonged by effective maintenance which could include regular inspection for damage and subsequent repairs as required.



Year of Acquisition



Component 46 Elevator Cab Renovation - Commercial Section

Funding Analysis

WorkRemoval and disposal of existing assembly and installation of the new assembly.


1 Cab$4,453.59



Unknown total scope of reserve funded work completed to date.

This component covers the repair and replacement of the interior of the elevator cabs, including the flooring, wall panels, ceiling panels, light fixtures, and railings. This component does not include safety features or mechanical/electrical components within the elevator enclosure.

Condition Analysis


Reserve History

2003

Work Completed


Life Cycle Analysis



The elevator cabs are most prone to impact damage caused by moving items in and out. Further damage is caused by wear and tear and vandalism.




Year of Acquisition




This component covers the repair and replacement of the interior of the elevator cabs, including the flooring, wall panels, ceiling panels, light fixtures, and railings. This component does not include safety features or mechanical/electrical components within the elevator enclosure.

Condition Analysis


Reserve History

2018


Component 47 Elevator Cab Renovation - Residential Section

8 years14 years


The elevator cabs are most prone to impact damage caused by moving items in and out. Further damage is caused by wear and tear and vandalism.

Funding Analysis

WorkRemoval and disposal of existing assembly and installation of the new assembly.


3 Cabs$22,017.96




Life Cycle Analysis

22 years (Budget Provision)



Year of Acquisition



Component 48 Sump Pumps / Drains and Controls - Strata

Funding Analysis

WorkRemove sump pump and replace as required. Sumps can be blown out and cleaned to extend life of pumps.


2 Pumps$3,418.31

Life Cycle Analysis



Gaskets and seals can fail after extended use. Motor assemblies can fail or become clogged.


Commercial/industrial sump pump systems are necessary for any commercial building with a basement. They pump accumulated water away from the building. We were not able to visually inspect the pump itself.

Condition Analysis


Reserve History

2016




The life of this component may be prolonged by effective maintenance and repairs as required.



Year of Acquisition



Life Cycle Analysis



Pinhole leaks at elbows. Contact between dissimilar metals can cause deleterious electrochemical reactions. Turbulence caused by improper bends and soldering can create leaks. Connections to fixtures can wear and break. Plastic resins can chemically change over time and become brittle. Vibration and stress can weaken joints. Valves can seize.


Supply system to provide water throughout the building via a main distribution system. Typically includes risers, branch lines, valves and backflow preventers. These services can last the life of the property, given adequate maintenance and no physical damages. This component also includes all of the sewage-removal plumbing inside the building, to which major repairs are sometimes necessary.

Condition Analysis


Reserve History

2003



Component 49 Domestic Cold Water Supply - Commercial Section


The life of this component may be prolonged by effective maintenance which could include replacing worn or corroded pipes as required. In some areas, maintaining a consistent and slightly basic water pH level can extend the life of a plumbing system.

Funding Analysis

WorkFull-scale replacement of plumbing systems is not typical, but may occur. There are various new pipe coating technologies that may prevent damage and even repair some existing damage.


1 System$15,737.61



Year of Acquisition



Component 50 Domestic Hot and Cold Water Supply - Residential Section


Supply system to provide water throughout the building via a main distribution system. Typically includes risers, branch lines, valves and backflow preventers. These services can last the life of the property, given adequate maintenance and no physical damages. This component also includes all of the sewage-removal plumbing inside the building, to which major repairs are sometimes necessary.

Condition Analysis

Based upon a partial visual-inspection, this component appears to be in average condition for its age, however undertaking significant repairs/replacements are a risk in the future. It is noted the residential section is considering options of either introducing a Hytec water treatment system (approx. cost $200,000 over first 5 years), or a repiping project which could be $1M to $2M. The recurring 5 year CRF budget presumes the water treatment option.

Reserve History

2003

Full-scale replacement of plumbing systems is not typical, but may occur. There are various new pipe coating technologies that may prevent damage and even repair some existing damage.

Budget

3 years


Pinhole leaks at elbows. Contact between dissimilar metals can cause deleterious electrochemical reactions. Turbulence caused by improper bends and soldering can create leaks. Connections to fixtures can wear and break. Plastic resins can chemically change over time and become brittle. Vibration and stress can weaken joints. Valves can seize.

Funding Analysis

Work

2 years


1 System$208,099.93


The life of this component may be prolonged by effective maintenance which could include replacing worn or corroded pipes as required. In some areas, maintaining a consistent and slightly basic water pH level can extend the life of a plumbing system.



Life Cycle Analysis




Year of Acquisition



Component 51 Sprinkler System - Strata

Funding Analysis

WorkA fire sprinkler system needs to be maintained regularly to comply with numerous regulations. The system is inspected and tested for operational readiness, and parts failure.


1 System$236,293.22

Life Cycle Analysis



Fire sprinkler systems are composed of various components such as valves, pumps, and gauges. These components are susceptible to mechanical failure.


A fire sprinkler system is an active fire protection measure, consisting of a water supply system that provides adequate pressure and flow rate to a water distribution piping system, onto which fire sprinklers are connected.

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective maintenance.



Year of Acquisition



Life Cycle Analysis



Metal tubing and fasteners are subject to fatigue from the heating and cooling process. Water lines can corrode and rust. Burners can overheat and cause failure.


Commercial boilers are comprised of a steel housing with natural gas burners which heat tubes filled with liquid. This liquid circulates though radiators in the structure radiating heat. This boiler is connected to a hot water storage tank.

Condition Analysis


Reserve History

2008/2014



Component 52 Heating System - Boiler - Residential Section


Water feed hoses, and output lines should be inspected for damage, pinhole leaks or metal fatigue. Burner assemblies should be clear of debris and corrosion. Regular visual inspection and testing by certified gas fitter should be done annually.

Funding Analysis

WorkTypically parts are replaced as they wear out. Full replacement requires shut down of service, removal of component and installation of new device.


11 Boilers$130,715.08



Year of Acquisition




An electric baseboard converts electric current to heat by means of resistors that emit radiant energy.

Condition Analysis


Reserve History

2003



Component 53 Heating System - Electric Baseboard - Strata


Periodic visual inspection of the units is recommended. Physical damage should be assessed on an as-needed basis. Debris should be removed if accumulated. Units should be turned off during warmer months to extend their life.

Funding Analysis

Work Individual units can be removed and replaced by a licensed electrician.



Life Cycle Analysis



As the electric baseboard heaters are situated on the surface of a wall, the units are subject to physical damage. Heaters get their source from electrical power which is susceptible to spikes or shorts. Excessive moisture can cause the heaters to fail.



Year of Acquisition



Component 54 Heating System - Hot Water Storage Tanks - Residential Section


Annual inspection of the tank should be undertaken. Evidence of rust marks, water stains or drips are signs the tank may fail imminently.

Funding Analysis

WorkIndividual tanks can be removed and replaced. Repair of damaged tanks is atypical. Water and/or gas lines must be shut off, tank must be emptied and replaced.


6 Tanks$23,235.40

Life Cycle Analysis



Seams on the tank are susceptible to corrosion, rust and leakage.


This refers to a water tank that is used for storing hot water for domestic use. A heavily insulated tank can retain heat for days.

Condition Analysis


Reserve History

2008/2014





Year of Acquisition



Life Cycle Analysis



Heating elements can suffer from electrical failure, or corrosion. The cooling condenser can suffer failure of refrigerant. The filters can become plugged and cause the system to overheat and suffer failure.


An air handler, or air handling unit is used to regulate and circulate air as part of an HVAC system. The air handler is a large metal box containing a blower, heating and cooling elements, filter racks or chambers, sound attenuators, and dampers. Air handlers connect to a ductwork ventilation system that distributes the conditioned air through the building and returns it to the AHU.

Condition Analysis


Reserve History

2003



Component 55 Make-up Air Handling Unit - Commercial Section


Annual maintenance by a certified technician is recommended to extend the life of the component.

Funding Analysis

WorkMaintenance on the heating and cooling units. Fan mechanism can be replaced or maintained. Full replacement is not typical.


1 System$22,989.47



Year of Acquisition



Make-up Air Handling Unit - Residential Section


An air handler, or air handling unit is used to regulate and circulate air as part of an HVAC system. The air handler is a large metal box containing a blower, heating and cooling elements, filter racks or chambers, sound attenuators, and dampers. Air handlers connect to a ductwork ventilation system that distributes the conditioned air through the building and returns it to the AHU.

Condition Analysis


Reserve History

2003



Life Cycle Analysis



Heating elements can suffer from electrical failure, or corrosion. The cooling condenser can suffer failure of refrigerant. The filters can become plugged and cause the system to overheat and suffer failure.

Funding Analysis

Component 56

WorkMaintenance on the heating and cooling units. Fan mechanism can be replaced or maintained. Full replacement is not typical.


4 Systems$59,566.50


Annual maintenance by a certified technician is recommended to extend the life of the component.



Year of Acquisition



Component 57 Special and Exhaust Equipment - Residential Section

Funding Analysis

WorkRemoval and disposal of failed equipment or parts and replacement of such parts as required.


3 Systems$6,131.78

Life Cycle Analysis



Environmental elements, physical damage, wear and tear, metal fatigue or failure of equipment and parts.


Exhaust equipment provides ventilation for underground parkades. Includes a metal housing enclosing a fan and electrical junction.

Condition Analysis


Reserve History

2003




Regular review of the fan mechanism should be undertaken.



Year of Acquisition



Life Cycle Analysis



Equipment is susceptible to wear and tear on gears, hydraulic hoses, and moving parts. Electrical failure on control systems. Corrosion to metal and impact damage can cause breakdown of components.


Garbage Handling Systems include garbage compactors, recycling compactors, garbage bins and recycling bins. Compactors are typically electrically driven with a hydraulic system of pistons.

Condition Analysis


Reserve History

2003



Component 58 Garbage Handling System - Residential Section


The life of this component may be prolonged by effective maintenance which could include replacement of worn or physically damaged parts and replacement of hydraulic fluids.

Funding Analysis

WorkEntire components are typically replaced at end-of-life. Electrical failure can result in replacement of the component. Hydraulic pumps and hoses can be replaced on failure.


1 System$10,200.46



Year of Acquisition




This component accounts for periodic modernization of the elevator. Regular elevator inspections and maintenance work are excluded from this component; instead, this provides a budget for major repairs that occur when the current equipment has reached the end of its physical life or become obsolete. The type of work to be performed will depend in part on technological improvements over the life of the elevator.

Condition Analysis


Reserve History

2003



Component 59 Elevator Modernization - Traction - Residential Section

Funding Analysis

WorkConsulting with certified elevator repair technicians. Shutdown of the elevator(s) during modernization. Various work as deemed necessary by the elevator contractor.


3 Elevators$1,449,070.44

Life Cycle Analysis



Wear of equipment (door operators, cab controllers and motors). These components are susceptible to mechanical and electrical failures that will increase with frequency of use as the equipment ages. Typical failure includes mechanical breakdown of bearings, gears, valves, and door operators as well as electrical failure of relays, contractors, motor windings brushes, computer processors and buttons.


Maintenance routines and preventive maintenance are required.



Year of Acquisition



Component 60 Elevator Modernization - Hydraulic - Commercial Section

Consulting with certified elevator repair technicians. Shutdown of the elevator(s) during modernization. Various work as deemed necessary by the elevator contractor.


1 Elevator$45,345.22


Maintenance routines and preventive maintenance are required. Regular cleaning and removal of debris is recommended.


Hydraulic elevators use a hydraulic ram system comprising a tank, pump, valve, and a cylinder. Upward movement is created by the electric motor pumping oil into the cylinder causing the piston to lift the elevator cab. To descend, the valve releases the oil from the cylinder back into the oil tank.

Condition Analysis


Reserve History

2003



Life Cycle Analysis



Deterioration could include wear and tear of mechanical components including bearings, gears, valves, and pump. Electrical failures of relays, contactors, motor windings, and processors may occur over time. Leaks from hydraulic connections may also occur, as may door operator failures. Single-bottom cylinders built prior to 1977 risk failure due to cylinder corrosion or electrolytic action. Systems of this type will require retrofit or replacement (B44-2007 safety code).

Funding Analysis

Work



Year of Acquisition




The property's power is stepped down in a main electrical room through various breaker panels. The wiring consists of shielded cable and copper wire inside metal conduit. The electrical system can last the life of the property provided corrosion and exposure is limited, but we have allowed for periodic repairs.

Condition Analysis

Based upon a partial visual-inspection, this component appears to be in average or better condition for its age. No major deficiencies were noted at the time of visual inspection. Reported triennial cleaning/maintenance of the electrical vault.

Reserve History

2003



Component 61 Electrical Distribution System and Fixtures - Strata


The life of this component may be prolonged by effective maintenance which could include regular inspection and subsequent repairs as required. In large electrical vaults, the vault should be DE energized and blown out every 5 to 8 years.

Funding Analysis

Work Removal and replacement of components as required.


1 System$46,833.63

Life Cycle Analysis



Includes potential loosening of connections, component failure, degrading of wire. Collection of dust can result in premature failure.



Year of Acquisition



Component 62 Entry System - Intercom - Commercial Section

Removal of old system installation and setup of replacement system. Integration with connected components where required.


1 System$4,487.81

Life Cycle Analysis



This component can suffer electrical failure from wear and tear or exposure to elements. In addition, vandalism or physical damage can occur. Typically these units are replaced when they become functionally obsolete or when parts become unavailable or superior equipment becomes available. Exterior terminals will tend to have a shorter service life.


The entry phone system is located at the main entry point to the building. This system includes a terminal with alpha numeric display and a key pad. It is connected to the main entry door via a door release system.

Condition Analysis


Reserve History

2010




The life of this component may be prolonged by effective maintenance and adequate protection from the elements.

Funding Analysis

Work



Year of Acquisition



Component 63 Entry System - Intercom - Residential Section


The entry phone system is located at the main entry point to the building. This system includes a terminal with alpha numeric display and a key pad. It is connected to the main entry door via a door release system.

Condition Analysis


Reserve History

2003



Life Cycle Analysis



Funding Analysis

Work

15 years3 years


Removal of old system installation and setup of replacement system. Integration with connected components where required.


1 System$54,945.00


The life of this component may be prolonged by effective maintenance and adequate protection from the elements.



Year of Acquisition




Security systems vary in complexity and could feature master control panels, remote controls, perimeter sensors for doors and windows, motion sensors, passive infrared sensors, wireless devices, interior and exterior sirens, bells, electronic buzzers, strobe lights to provide audio and visual detection, and glass break sensors.

Condition Analysis


Reserve History

2003



Component 64 Security / Surveillance System - Strata


The life of this component may be prolonged by effective maintenance which includes regular inspection of the components for failure.

Funding Analysis

Work Replacement of the inoperative component.


1 System$11,309.09

Life Cycle Analysis






Year of Acquisition



Component 65 Fire Alarm System - Strata

Funding Analysis

WorkRepair and/or replacement of system after results of regular testing periods.


1 System$37,500.00

Life Cycle Analysis



Includes electrical failure, vandalism, and functional obsolescence.


An automatic fire alarm system is designed to detect fire by monitoring environmental changes associated with combustion. Automatic fire alarm systems are intended to notify the building occupants and emergency service responders in the event of a fire or other emergency. The system includes pull stations, annunciators, a fire panel, smoke detectors, fire hoses, and fire extinguishers.

Condition Analysis


Reserve History

2003




Periodic fire alarm testing is required.



Year of Acquisition



Life Cycle Analysis



The sensor can wear out, and lose its ability to sense the gas. The housing can be physically damaged. Electrical shorts can occur.


Gas detection systems include a wired sensor system mounted on the back side of parkade columns. The system samples the air for assigned gases in the atmosphere. The monitoring system is linked to the parkade ventilation system and turns it on if a gas is identified as being too concentrated.

Condition Analysis


Reserve History

2003



Component 66 Gas Detectors - Strata


Regular testing of the sensor should be undertaken. Visual inspection of the housing for damage. Any debris should be removed immediately.

Funding Analysis

WorkSensors can be replaced without the need to rehabilitate the entire mechanism.





Year of Acquisition




This component covers the major repair and/or replacement of the emergency generator, fuel tank, and battery. The generator services the emergency electrical needs of the building.

Condition Analysis


Reserve History

2003



Component 67 Emergency Generator - Strata


The life of this component may be prolonged by effective maintenance which could include regular inspections and repairs as required. The generator should be tested annually.

Funding Analysis

WorkRemoval and disposal of existing assembly, repairs or replacement as required and installation of the new assembly.


1 Generator$48,834.57

Life Cycle Analysis



Generators are most prone to mechanical damage caused by poor maintenance procedures and policies, including lack of testing / use. Further damage is caused by general wear and tear over time. Generally functional obsolescence can become a factor as the generator ages and replacement parts become unavailable.



Year of Acquisition



Component 68 Amenity Rooms - Residential Section


The life of this component may be prolonged by effective maintenance which could include regular inspection for damage and subsequent repairs as required. Regular cleaning can extend life.

Funding Analysis

WorkRemoval and disposal of old furnishings and fixtures, potentially re-painting, re-flooring, and replacement of fixtures and furnishings.



Life Cycle Analysis



This component will typically experience wear and tear from owner and visitor use, which could include marking / damage to the wall surfaces including impact damage, damage to the flooring due to use, obsolescence of fixtures and furnishings due to diminished utility or dated design / aesthetics.


This component comprises all of the reserve items and materials of the common amenity room, including flooring, wall finish, ceiling finish, fixtures, furnishings, and decorations.

Condition Analysis


Reserve History

2003/2012





Year of Acquisition



Life Cycle Analysis



Paint and flooring can be damaged as a result of wear and tear. Repainting is typically done for aesthetic reasons. The interior finish can deteriorate with physical damage.


This component encompasses the exercise room and the interior finish, not including the exercise equipment.

Condition Analysis


Reserve History

2003



Component 69 Exercise Room - Residential Section


The life of this component may be prolonged by effective maintenance which could include regular inspection for damage and subsequent repairs as required.

Funding Analysis

WorkRemoval and disposal of old furnishings and fixtures, potentially re-painting, re-flooring, and replacing fixtures.


750 SF$8,080.38



Year of Acquisition




This component includes the weight-lifting multi-station, bicycle trainer, treadmill, elliptical, stepper machine, squat rack, dumbbells, barbells, and bench. Exercise equipment has a short life span, and must be maintained regularly to extend the life span.

Condition Analysis


Reserve History

2003/2013



Component 70 Exercise Equipment - Residential Section


The life of this component may be prolonged by effective maintenance which could include regular cleaning and lubrication of moving parts.

Funding Analysis

WorkRemove and replace equipment as required. Bulk purchasing can result in favorable pricing.


8 Pieces$4,416.77

Life Cycle Analysis



Machinery and equipment can fail due to amount of use and lack of proper maintenance. Most exercise equipment is not well-maintained, resulting in shortened life spans. Misuse or unfamiliarity with equipment function can result in physical damage as well.



Year of Acquisition



Component 71 Pool - Mechanical - Residential Section

Funding Analysis

WorkRepair and replace at component failure. Full replacement is not always required. Chemical imbalance can quicken deterioration of pumps, filters and plumbing.


1 Pool$8,656.48

Life Cycle Analysis



Sand filters require replacement of sand every 7-10 years. The boiler can suffer from heating element failure or gas line leakage. Pumps can fail or become clogged.


These include a boiler used to heat the pool, sand filters, chlorinators or water treatment facilities. Pump systems to circulate the water. Depending on the size of the pool, multiple systems may be required.

Condition Analysis


Reserve History

2003/2013




Regular inspection and testing of chemicals can extend the life of the components.



Year of Acquisition



Life Cycle Analysis



Deterioration can include cracks and leaks due to seismic or hydraulic pressure, failure of pumps and equipment due to wear and tear, pinhole leaks in piping, and physical damage to vinyl pool-liner.


An in ground swimming pool may be gunite, poured concrete, or vinyl-lined. The construction, installation and durability of the pools vary. This component may include the chlorination and filtration system, pump, heating system, life-saving equipment, and ancillary equipment.

Condition Analysis


Reserve History

2008



Component 72 Pool - Structure - Residential Section


The life of this component may be prolonged by effective maintenance and repairs as required.

Funding Analysis

Work Repair and replace at component failure.


1 Pool$28,745.50



Year of Acquisition




The poolside furnishings typically include lounge chairs, tables, cushions and chairs. These are typically made from high density resin plastic or wood.

Condition Analysis


Reserve History

2003



Component 73 Pool - Furnishings - Residential Section


Regular annual inspection of furnishings should be undertaken to identify weaknesses or damage.

Funding Analysis

Work Broken, worn or damaged pieces should be replaced as needed.



Life Cycle Analysis



As these are sitting open in the elements, they are susceptible to UV light deterioration, weathering and physical damage.



Year of Acquisition



Component 74 Indoor Pool Room - Residential Section

Funding Analysis

Work Remove and replace as required. Re-paint walls.


2,150 SF$9,009.49

Life Cycle Analysis



This component will typically experience wear and tear and damage due to humidity and chemicals.


This component includes the finish and fixtures of the room, including interior paint, flooring, and ceiling finish.

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective continuous maintenance.



Year of Acquisition



Life Cycle Analysis



Mechanical and electrical failure, water treatment problems, humidity, and equipment wear and tear are the deteriorating factors to consider when reviewing this component. Leaks in plumbing system, wear to air circulation unit, and wear to heating and pumping system must be monitored on a regular basis.


This component includes ventilation equipment, dedicated boiler, pumping system, and chemical and filtration systems for the hot tub / spa.

Condition Analysis


Reserve History

2003/2013



Component 75 Hot Tub - Mechanical - Residential Section


The life of this component may be prolonged by effective continuous maintenance. Regular annual inspection is recommended.

Funding Analysis

WorkRemove and replace worn equipment and fixtures. Close hot tub/spa/sauna room during refurbishment.


1 Facility$6,400.97



Year of Acquisition




The Hot Tub is an in-ground resin enclosure housing a pump system and circulation tubes. The enclosure is fiberglass with insulation. In ground or built in hot tubs can be of gunite or concrete material with a liner.

Condition Analysis


Reserve History

2008



Component 76 Hot Tub - Structure - Residential Section


The enclosure should be cleaned and checked for physical damages regularly. Chemicals should be maintained daily to prevent increases in chemical breakdown of the resin.

Funding Analysis

Work Remove the hot tub structure and replace.


1 Facility$8,501.28

Life Cycle Analysis



The hot tub shell or enclosure is susceptible to chemical deterioration, physical damage and seismic movement.



Year of Acquisition



Component 77 Sauna/Steam Room - Mechanical - Residential Section

Funding Analysis

WorkIn most cases, the heating units or pumps can be replaced as a unit. Heating coils can be replaced in some units separately.


1 Facility$5,882.52

Life Cycle Analysis



Electrical failure can occur with power lines and heating elements can burn out over time. Pump system seals can fail. Both systems are susceptible to physical damage.


The sauna is heated by an electric fed coil with rock topping to hold the heat. The steam room gets it heat source from a Steam Generator, which converts a cold water supply to steam through an electrical charged heating element.

Condition Analysis


Reserve History

2003




Regular testing to determine the viability of the component should be undertaken annually.



Year of Acquisition



Life Cycle Analysis



These rooms are susceptible to physical damages from use. Additional chemical damage can occur from bodies, lotions or other fluids.


The sauna is a cedar-lined box with benches and a door. The steam room is a tiled room with benches and a door.

Condition Analysis


Reserve History

2003



Component 78 Sauna/Steam Room - Structure - Residential Section


Regular cleaning of surfaces will extent the life of this component. Annual inspection for damage should be undertaken.

Funding Analysis

WorkIn most cases, full replacement is not required. Replacing sauna boards or steam room tiles can be done on an as needed basis.


1 Facility$2,125.09



Year of Acquisition




This component considers the renovation of all bathrooms / change rooms located in the common areas of the building. This includes fixtures, hardware, paint and finishes, as well as flooring.

Condition Analysis


Reserve History

2003/2013



Component 79 Common Area Washrooms / Changerooms - Residential Section


The life of this component may be prolonged by periodic upkeep and updating. Annual inspection of the component should be done.

Funding Analysis

WorkRemoval and disposal of old fixtures and finishes, renovation and new installations.


520 SF$9,471.53

Life Cycle Analysis



Deterioration from wear and tear, abuse, or vandalism. Replacement due to modernization.



Year of Acquisition




Reserve History

2003



Life Cycle Analysis



Deterioration from wear and tear, abuse, or vandalism. Replacement due to modernization.

Funding Analysis

Component 80 ommon Area Washrooms / Changerooms - Commercial Section


This component considers the renovation of the bathrooms located in the Commercial Section areas of the building. This includes fixtures, hardware, paint and finishes, as well as flooring.

Condition Analysis

WorkRemoval and disposal of old fixtures and finishes, renovation and new installations.


SF$7,574.60


The life of this component may be prolonged by periodic upkeep and updating. Annual inspection of the component should be done.



Year of Acquisition



Component 81 Storage Lockers - Residential Section

Funding Analysis

WorkRepairs or replacement as required to the lockers, latches, hinges, and floor fasteners.


212 Lockers$5,836.99

Life Cycle Analysis



Includes wear and tear on latches / hinges / floor fasteners, impact damage, vandalism, wear and tear, moisture, and corrosion or rot if humidity is high.


The storage lockers are located in a common room off of the parkade. They are built of wood and wire mesh. This component includes gates, wire mesh to ceiling, hinges, floor fasteners, and latch / hardware.

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective maintenance which could include regular inspection for damaged lockers / latches / hinges / floor fasteners and repair / replace as required.



Year of Acquisition



Life Cycle Analysis



Exterior mailboxes suffer from exposure to environmental elements which may cause rusting and can affect the general quality of appearance over time. Physical damage may occur from debris, wear and tear, vandalism, and impact damage.


Mailboxes include metal boxes with locks / hardware and their associated structure.

Condition Analysis


Reserve History

2003



Component 82 Mailboxes - Residential Section


The life of this component may be prolonged by effective maintenance which could include regular maintenance of associated structure to protect the mailboxes from the elements, and repair/replace as required.

Funding Analysis

WorkRemoval and disposal of existing mailboxes and associated structure and repair/replace as required.


201 Mailboxes$7,630.56



Year of Acquisition




This component refers to sub-surface piping such as sewer system and drainage, and the domestic water supply system from roadway to building main. Storm sewer system includes storm sewer lines, catch basins, man holes, and connections to the individual units. Sanitary sewer system includes lines and service connections. Included in the budget is an allowance for video inspections of the sewer lines.

Condition Analysis


Reserve History

2003



Component 83 Site Services - Sewer and Water - Strata


The life of this component may be prolonged by effective maintenance which could include repairs as required. Regular flushing of system and/or scoping can determine whether there are blockages or breaks in the lines.

Funding Analysis

Work

Excavation and replacement of damaged component on an item by item basis. Will require shut down of building service for the duration. A video inspection is much cheaper, quicker, and will not require excavation.



Life Cycle Analysis



This component can be affected by erosion, freeze/thaw cycles, corrosion, and in some cases physical damage from excavation.



Year of Acquisition



Component 84 Concrete Paving and Curbs - Strata

Funding Analysis

WorkRemove and replace damaged concrete. May have to be done in stages to allow access to continue.



Life Cycle Analysis



The concrete is subject to physical damage from traffic. Additional damage from substrate erosion, freeze/thaw cycles and salt damage. The majority of concrete pavement failures are not caused by failure of the concrete slab but by problems with the materials beneath the slab.


This component is for concrete paving and curbing that is not allocated for in the Concrete Patio component, including driveways and concrete roadways but excluding sidewalks and patios. Concrete is a composite construction material composed primarily of aggregate, cement, and water. Concrete typically lasts the life of building but can need periodic maintenance or replacement.

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective maintenance which could include applying sealant at regular intervals, and repairs as required.



Year of Acquisition



Life Cycle Analysis



Settling, cracks, discolouration, and surface damage due to exposure to elements, such as wind, rain, snow, freeze-thaw cycles and extreme temperatures. Physical damage may occur from debris and impact.


The concrete pavers, often referred to as paving stones, are paving units made from concrete. They are available in a variety of sizes and shapes and can be laid in many patterns and designs. They will typically last the life of the property, however will require repointing or leveling work.

Condition Analysis


Reserve History

2003



Component 85 Pavers - Strata


The life of this component may be prolonged by effective maintenance which could include sealing the surface by acrylic based sealant, regular inspection for damaged pavers, and replacement as required.

Funding Analysis

WorkRemoval and disposal of existing assembly, preparation of sub-surface, and replacement of damaged pavers as required. Appropriate safety precautions. Equipment such as a compactor may be required.





Year of Acquisition




This reserve item considers the concrete walkways and patio slabs, excluding the concrete driveways and curbs. Concrete is a composite construction material composed primarily of aggregate, cement, and water.

Condition Analysis


Reserve History

2003



Component 86 Concrete Patio - Residential Section


The life of this component may be prolonged by effective maintenance which could include applying sealant at regular intervals, and repairs as required.

Funding Analysis

WorkRemove and replace damaged concrete. May have to be done in stages to allow access to continue.



Life Cycle Analysis



Damage from substrate erosion, freeze/thaw cycles and salt damage. The majority of concrete pavement failures are not caused by failure of the concrete slab but by problems with the materials beneath the slab. Impact damage, cracking, water fractures due to freezing.



Year of Acquisition




Component 87 Exterior Landscaping - Strata


The life of this component may be prolonged by effective maintenance, including regular landscaping. Pruning and application of herbicides or fertilizers can assist with extending life of the component.

Funding Analysis

WorkReplace/repair irrigation system, diseased or damaged trees, fix grading issues, or change landscaping for aesthetic purposes.



Life Cycle Analysis



Includes exposure to the elements, such as wind, rain, snow, freeze-thaw cycles, and extreme temperature/humidity changes. Some plants are subject to fungus and disease. Additional deterioration can be caused by lack of water and nutrients. Physical damage can occur to the plants.

Unknown total scope of reserve funded work completed to date.


Exterior landscaping includes grass, trees, shrubbery, associated gardens, irrigation system, and various plants. Landscape is a long lived item and naturally replenishes. It is assumed that changes to the component have to do with disease or changes in preference. This component accounts for major periodic repair work: it does not account for regular, ongoing maintenance.

Condition Analysis


Reserve History

2015

Work Completed



Year of Acquisition




Exterior landscaping includes grass, trees, shrubbery, associated gardens, irrigation system, and various plants. Landscape is a long lived item and naturally replenishes. It is assumed that changes to the component have to do with disease or changes in preference. This component accounts for major periodic repair work: it does not account for regular, ongoing maintenance.

Condition Analysis


Reserve History

2003



Component 88 Exterior Landscaping - Residential Section


Includes exposure to the elements, such as wind, rain, snow, freeze-thaw cycles, and extreme temperature/humidity changes. Some plants are subject to fungus and disease. Additional deterioration can be caused by lack of water and nutrients. Physical damage can occur to the plants.

Funding Analysis

Work

Life Cycle Analysis


Replace/repair irrigation system, diseased or damaged trees, fix grading issues, or change landscaping for aesthetic purposes.




The life of this component may be prolonged by effective maintenance, including regular landscaping. Pruning and application of herbicides or fertilizers can assist with extending life of the component.



Year of Acquisition




The pond / water feature is located within the common area of the site. It is constructed with a vinyl-lined material with re-circulating pumps and nozzles. The surrounding area is a mix of stones and water / terrestrial plants. We have reserved for minor crack repair and the membrane, pump, and filter.

Condition Analysis


Reserve History

2003



Component 89 Ponds / Water Feature - Residential Section


The life of this component may be prolonged by effective maintenance which could include regular inspections and repairs as required. Removal of debris build up, clogs and regular inspection of feed lines.

Funding Analysis

WorkRemoval and disposal of existing assembly, repairs or replacement as required and installation of the new assembly.



Life Cycle Analysis



Ponds / water features are susceptible to freezing and other weathering issues. Vinyl-lined material can deteriorate due to the exposure to UV. The pump and filter system are susceptible to wear and tear.



Year of Acquisition



Component 90 Retaining Walls - Concrete - Strata

Funding Analysis

WorkRemove and replace as needed. Retaining walls over four feet high must be approved by a qualified engineer.



Life Cycle Analysis



Retaining walls are susceptible to hydraulic pressures, seismic movement, and physical damage from impact. Additional damage from substrate erosion, freeze/thaw cycles and salt damage.


Includes concrete retaining walls for the complex.

Condition Analysis


Reserve History

2003




The life of this component may be prolonged by effective maintenance. Regular inspection for physical damage, concrete spalling, water seepage or wall movement should be made.



Year of Acquisition



(a description of past work that was done on the component)

(a breakdown of money spent, or "not disclosed")

Life Cycle Analysis



Retaining walls are susceptible to hydraulic pressures, seismic movement, and physical damage from impact. Additional damage from substrate erosion, freeze/thaw cycles and salt damage.

Funding Analysis

WorkRemove and replace as needed. Retaining walls over four feet high must be approved by a qualified engineer.




The life of this component may be prolonged by effective maintenance. Regular inspection for physical damage, concrete spalling, water seepage or wall movement should be made.

Component 91 Rooftop Planters - Strata


Includes concrete retaining walls for the complex.

Condition Analysis

Based upon a partial visual-inspection, this component appears to be in poor / average / good condition for its age. XXXX major deficiencies were noted at the time of visual inspection.

Reserve History

2003

Work Completed



Year of Acquisition



Life Cycle Analysis



Railings can suffer from various deterioration, due primarily to exposure to the elements. Water can cause the metal to rust and weaken, penetration into concrete will weaken fasteners. Impacts can break glazing and dent metals. Railings can be replaced for aesthetic reasons.


Railings are an integral part of the building safety structure. Typical construction includes a rail system with posts bolted to the floor and wall. Aluminum railings can last the life of the property, provided adequate measures are taken regarding maintenance. Average life span would be in the range of 50–60 years.

Condition Analysis


Reserve History

2003



Component 92 Common Exterior Railings - Metal - Strata


The life of this component may be prolonged by effective maintenance which could include painting and replacing worn fasteners or damaged railings as required.

Funding Analysis

WorkRemove and dispose of deficient material. Replace railing system with appropriate new components. Assure fasteners are secure and safety precautions are taken.





Year of Acquisition




This component considers all exterior lighting in the complex, including front entry, balcony, and lamp posts. The wiring system will typically outlive the fixtures. Fixtures are replaced due to breakage and upgraded for aesthetics or modernization.

Condition Analysis


Reserve History

2003



Component 93 Exterior Lighting - Strata


The life of this component may be prolonged by effective continuous maintenance.

Funding Analysis

Work Remove and replace the fixtures as required.



Life Cycle Analysis



Deterioration primarily results from exposure to elements, corrosion and physical damage. Lights can also be replaced for aesthetic reasons.



Year of Acquisition



Component 94 Depreciation Report - Strata


The report can be completed faster and more accurately by keeping good records and tracking how much money is spent on each separate reserve component during each year.

Funding Analysis

WorkAn inspection of the building with document review and component quantification, leading to an implementable Reserve Fund budget.


1 Report$9,712.50

Life Cycle Analysis



As this is an economic forecast for budgeting purposes, the property should commission a new report every 3 years or after a major and unexpected Reserve Fund event that leads to confusion as to how to proceed with funding the Contingency Reserve Fund.


This component covers the cost of this report and subsequent potential updates, increased each 3 years with construction inflation. Please note that the future costs of this component are not to be considered a quote but rather a statistical estimation of the cost with no prediction as to the provider of the report.

Condition Analysis

N/A

Reserve History

2019

Work Completed Initial Report

Initial report cost $9,250 + GST.


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix F—Construction Cost Inflation

Appendix F—Construction Cost Inflation



We use a Construction Cost Inflation rate to forecast future replacement costs for the subject property. This rate is developed using a blended rate from Statistics Canada and Marshall & Swift / Boeckh (MSB). The Statistics Canada data predicts a localized rate based on the building’s usage, while the MSB data predicts a localized rate based on the materials used to construct the building. We use the average of the two in our funding models.

Statistics Canada These data come from the Price Indexes of Apartment and Non-Residential Building Construction Table, a quarterly series measuring the changes in contractors’ selling prices for building construction. The indices relate to both general and trade contractors’ work and exclude the cost of land, land assembly, design, development, and real estate fees.

Data is published for the following building usages: Office, Warehouse, Shopping Centre, Light Factory, School, and Apartment. It is localized to several major cities in Canada.

We obtained data on the price indices of Apartment construction in Vancouver, BC from 1992 to 2016, which are the most applicable data currently available. Data prior to 1992 were not used due to the significant change in inflation policy in 1992, as outlined in Appendix H. Data after 2016 are not available. The following graph illustrates how the Construction Cost Index changed from year to year.

We computed an exponentially increasing index line using a mathematical technique known as Least Squares Regression on the indices since 1992. This minimizes the regression line’s total distance from each point, giving an exponential line-of-best-fit. This exponential trendline was forecasted 31 years into the future.

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% Change in Vancouver Apartment Construction Cost Indices



While the exponential trendline uses a constant rate of increase, we cannot simply use that rate as our expected annual rate of CPI increase, nor can we simply use the calculated indices as our projections. Doing so would place too much or too little emphasis, respectively, on the previous year’s index.

Instead, we calculated an average annual increase over the next 31 years based on last year’s CPI index and the forecasted index in 31 years. When the current year’s index is higher than expected, this skews the next 30 years’ indices slightly above the exponential trendline, and slightly below for the years after that. The reverse is true for years when the previous year’s index is lower than expected. This discrepancy is usually very minor, and the technique can often be more accurate, given that annual inflation rates are not independent of one another.

The average expected annual rate of Apartment Construction Cost Inflation in Vancouver, BC for the next 31 years is 3.21%.

This is based on a year-one increase of 9.71% with subsequent increases of 3.00%.

The following graph illustrates this forecast. The dotted green line represents the mathematical forecast, while the solid red line represents our adjusted forecast.

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Canadian Apartment Construction Cost Index Projection

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Marshall & Swift / Boeckh (MSB) These data come from quarterly Time-Location Multipliers for principal Canadian cities. These multipliers express how the construction costs of specific types of buildings have changed over time in specific cities.

Each building has its own unique combination of basic costs. MSB uses 83 basic types of costs necessary to build workable weighted schedules, comprising 19 building trades and 64 material types.

The subject property is classified as a Class B building. We obtained comparative cost multipliers for those buildings in Vancouver from 1992 to 2017, which are the most applicable data available. The following table describes Class B buildings.

The multipliers were converted to indices. The following graph illustrates how the indices changed from year to year.

The average expected annual rate of Construction Cost Inflation for Class B buildings in Vancouver, BC for the next 31 years is 2.72%.

This is based on the same method we used to forecast Statistics Canada data, with a year-one increase of 3.94% with subsequent increases of 2.68%.

Class Frame Floor Roof Walls

BReinforced concrete columns

and beams. Fire-resistant construction.

Concrete or concrete on steel deck, fireproofed.

Formed concrete, precast slabs, concrete

or gypsum on steel deck, fireproofed.

Nonbearing curtain walls, masonry, concrete, metal and glass panels, stone,

etc.

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Average Annual Construction Cost Increase (Winnipeg, Class C)

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Average Annual Construction Cost Increase (Vancouver, Class B)



The following graph illustrates this forecast. The dotted green line represents the mathematical forecast, while the solid red line represents our adjusted forecast.

Conclusion The following table summarizes our adjusted values for average annual construction cost increases for the next 31 years.

We have rounded this average to the nearest 0.1% to highlight the uncertainty in long-term economic forecasting. We have adopted a rate of 3.0% for annual construction inflation in calculating the future replacement costs.

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Actual and Forecasted Construction Cost Indices (Winnipeg, Class C)

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Exponential Trendline

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Actual and Forecasted Construction Cost Indices (Vancouver, Class B)

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Exponential Trendline

Data Source Calculated RateStatistics Canada 3.21%

MSB 2.72%Average 3.0%


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix G—Interest Rates

Appendix G—Interest Rates



We are not financial planners and cannot advise you how to best invest your money; it is strongly recommended that you consult an investment professional. Long-term economic forecasting is imprecise at best.

Reserve fund investments must be directly or indirectly guaranteed by governments; strata corporations must invest in qualified low-risk investments. They often invest in flexible Guaranteed Investment Certificates (GICs), so that is where we focus our study. Flexible GICs are GICs that allow the investor to withdraw some or all their funds before the maturity date at no penalty; they typically offer modest returns and maximum flexibility. We have conducted a historical study of a sample of cashable GICs with the goal of projecting their average expected return over the next 30 years.

Our goal is to forecast achievable annual interest rates that strata corporations can expect to earn on their investments over the next 30 years. The ideal method of determining a likely rate of return on a strata corporation’s investments is to review at least thirty years of performance of the corporation’s investments, provided that the investments have been prudently invested. In the likely absence of such data, the reserve fund planner must select a rate which can take into consideration factors such as management policies, historical investment returns, current market trends, and long-term expected rates.

We obtained historical Bank of Canada GIC interest rates with 1, 3, and 5 year terms since 1983. These GICs are presumably “fixed-rate,” meaning that you cannot withdraw your money until the end of the investment term, without the loss of the accrued interest.

We also obtained historical interest rates on three various one-year flexible GICs, where you can withdraw your money whenever you want and still earn interest up to that point. The flexible GICs that we use are listed below; they were selected from a much larger list of rates, as they were the only ones to have kept historical GIC rate data in an accessible manner.

• Coast Capital Savings (CCS) 1 year redeemable GIC o Redeemable any time with full accrued interest after 30 days o $1000 minimum investment o Data available from 1996 to 2017

• Royal Bank of Canada (RBC) 1 year cashable GIC o Redeemable anytime with full interest after 30 days o $1000 minimum investment o Data available from 1998 to 2017

• RBC 1 year redeemable GIC, interest paid semi-annually or annually o Reduced rate if redeemed before maturity o $1000 minimum investment o Data available from 1997 to 2017



We would ideally like to start our dataset from 1992 when predicting future interest rates. While data on the Bank of Canada’s fixed-rate GICs are available that far back, data on the flexible GICs are not. Both data sets were compared in order to assess how the Bank of Canada’s posted rates match personal banks’ flexible rates, and a predicted rate was generated for each rate in order to project an interest rate backwards in time to fill in the missing data.

The formula for each predicted rate is determined as follows. For all years with flexible GIC data, the spread above that year’s national inflation for the Bank of Canada’s 1, 3, and 5 year GICs are weighted such that the sum of their weights equals one. The sum of the weighted rates is added to a constant value. The weights and the constant value are determined such that the sum of the absolute values of the difference between this predicted spread above inflation and the flexible GIC’s spread above inflation is minimized. Note that while this predictive formula uses multi-year fixed-rate GIC rates, it is only predictive of the particular flexible one-year GIC that it is matching.

The following charts illustrate the strength of the predicted rate for each flexible GIC. The predicted rate uses the Bank of Canada’s 1, 3, and 5 year GIC rates to predict the spread of each flexible GIC rate above inflation; this predictive formula is later applied to the Bank of Canada’s posted rates since 1992 to fill in any missing data.

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Strength of the CCS Predicted RateCCS Rate minusinflationPredicted rate minusinflation

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The following graph illustrates each flexible GIC rate’s spread above inflation. Predictive data are used where there are no actual data. The chart also shows two forecasting rates: the Calculated Rate averages each rate’s average spread above inflation, and is the mathematical forecast of long-term flexible GIC rates; the Adjusted Rate is an arbitrary number chosen based on our analysis of the current market.

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These rates are very volatile. While any predicted rate will almost certainly be wrong from year to year, both our Calculated Rate and our Adjusted Rate have value. The Calculated Rate represents our best-guess at long-term flexible GIC rates; in other words, we find it as likely that the actual average flexible GIC rate over the next 30 years will be lower than the Calculated Rate as it will be higher. The Adjusted Rate is a subjective short-term rate that more closely represents our analysis of current interest rate trends and our expectations for strata corporations’ interest earnings. In our projections, we use the Adjusted Rate to calculate this year’s interest earned, and gradually increase that rate until it equals the Calculated Rate. This provides both a more accurate short-term and long-term forecast.

The following chart numerically illustrates our Calculated Rate. “pp” stands for percentage points.

We use spread above inflation rather than straight interest rates because there is not enough data available since 1992 to be confident that our rates accurately reflect a long-term business cycle. We are basing our prediction of the average national inflation rate for the next 30 years on the government’s target rather than on historical data.

The Calculated Rate is 0.71 percentage points above inflation. With average national inflation expected to average 2% per year, this represents a long-term predicted interest rate of 2.71%.

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Rates' % point spread above inflationCoast CapitalRoyal Bank1Royal Bank2Calculated RateAdjusted Rate

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Rates' % point spread above inflationCoast CapitalRoyal Bank1Royal Bank2Calculated RateAdjusted Rate

Avg Cashable GICs' Spread Above InflationCCS 0.95 pp

RBC Cash. 0.54 ppRBC Red. 0.64 ppAverage 0.71 pp



Our adjusted Rate is 1.00 percentage points below expected inflation, representing a predicted rate of 1.0%. It gradually moves to the Calculated Rate over a period of 6 years.

We have selected a conservative 2.7% interest rate in calculating the future investment performance of the strata corporation’s reserve fund. This rate has been rounded, and is intentionally nonspecific to highlight the uncertainty in long-term economic forecasting. It is conservative because it assumes that strata councils need extremely high levels of flexibility in their investments, and because it averages the rates from available banks rather than choosing the highest.

The entire balance of the reserve fund does not need to always be available. Therefore, it is likely that the interest rates the reserve fund planner can obtain will be higher than the one-year cashable GIC rates. Prudent reserve fund investing requires that investments are reasonably matched with anticipated reserve fund expenditures, ensuring reserve fund liquidity. Therefore, funds should be invested in a laddered portfolio, which ensures that reserve funds are available when needed.

Some management firms direct business to a particular financial institution to negotiate favourable interest rates for all their clients. This approach may benefit smaller corporations and is an important consideration when selecting an appropriate interest rate.

The benchmark calculations and the reserve fund projections assume that reserve fund contributions are constantly and continuously invested. However, all expenditures are assumed to occur at the beginning of the year, while reserve fund deposits are assumed to occur at the end of the year. This contributes to the conservative nature of the calculated interest rate.

NOTE: We suggest a review of both the Calculated and Adjusted Rates on every update.


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix H—Consumer Price Index (CPI) Inflation

Appendix H—Consumer Price Index (CPI) Inflation



We use a Consumer Price Index (CPI) Inflation rate to aid in recommending fair contributions. For a detailed explanation of its use in this report please refer to Appendix I.

We have selected data from Statistics Canada for Vancouver, which is the best region with available localized inflation data. Annual data are available from 1971 to 2016; however, inflation data collected prior to 1992 are likely poor predictors of future inflation. In 1991 the Government of Canada and the Bank of Canada set a goal to reduce national inflation from about 5% to 2% by 1995. Although national inflation climbed close to 7% in 1991, it dropped to 1.6% in 1992 because of government intervention. Since then, the goal has been to keep national inflation between 1% and 3% with an average of 2%. To reflect this important change in inflation policy, we have elected to limit our analysis to CPI data since 1992.

The following graph illustrates how inflation in Vancouver has changed since 1971.

We computed an exponentially increasing index line using a mathematical technique known as Least Squares Regression on the CPI indices since 1992. This minimizes the regression line’s total distance from each point, giving an exponential line-of-best-fit. This exponential trendline was forecasted 31 years into the future. The following graph illustrates this line compared to the CPI indices.

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Annual Change in Winnipeg CPI

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While the exponential trendline uses a constant rate of increase, we cannot simply use that rate as our expected annual rate of CPI increase, nor can we simply use the calculated indices as our projections. Doing so would place too much or too little emphasis, respectively, on the previous year’s index.

Instead, we calculated an average annual increase over the next 31 years based on last year’s CPI index and the forecasted index in 31 years. When the current year’s index is higher than expected, this skews the next 30 years’ indices slightly above the exponential trendline, and slightly below for the years after that. The reverse is true for years when the previous year’s index is lower than expected. This discrepancy is usually very minor, and the technique can often be more accurate, given that annual inflation rates are not independent of one another.

The average expected annual rate of CPI increase in Vancouver, BC for the next 31 years is 1.7%.

This is based on a year-one increase of 2.59% with subsequent increases of 1.62%. The rate is rounded to highlight the imprecise nature of economic forecasting.

The following graph illustrates how our forecasted rate matches the exponential trendline. The dotted green line represents the mathematical forecast, while the solid red line represents our adjusted forecast.

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NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix I—Funding Future Components

Appendix I—Funding Future Components



Funding Principles An appropriate funding model requires a payment schedule that is both equitable and practical. Ideally, everyone would pay for each component as they use it: when you buy into a strata you would pay your share of the cost of the land and the non-reserve components, and then you would constantly pay small amounts towards reserve components every day as you enjoy their benefits. This would lower the price of the property both upon purchase and upon sale. While this is arguably the most equitable solution for owners, the developer is not going to accept a lower price, and it is obviously impractical to the point of impossible.

Another equitable solution is to pay for the current value of the reserve components while funding repairs and replacements as they occur: when you buy into a strata you pay your share of the cost of the land, non-reserve components, and all reserve components; when you sell you get a price that includes the new value of the components. Over time the components’ value decreases, although it increases every time you fund a new repair or replacement. This is, in its simplest form, what tends to occur without government legislation. It is also impractical because every time a component needs even the most minor repair or replacement it causes a special assessment.

We have conducted this report on the funding principal that current owners must save for future repairs and replacements because component expenditures must be reserved for before they occur. This means that even though buyers pay for the value of existing components while also saving for future components, they are returned the value of the future components as they use them or when they sell the property. When they buy they also purchase a portion of the reserve fund—the money in that fund will offset the cost of the current reserve components.

Owners do not save for component repairs or replacements that occur after a building’s End of Life date; this reduces the strata’s annual reserve fund contributions and eventually eliminates the reserve fund balance entirely. While owners are not compensated for the value of future components at the end of a building’s life, neither have they paid for those components. This funding model fosters equitable sale prices, incentivizes owners to properly maintain the property, and creates a stable payment schedule.

Given the level of uncertainty in economic forecasting, even fully-funded reserve funds are not perfectly equitable. Earlier owners bear too much of the cost when repairs are cheaper or later than expected and when interest rates or CPI inflation is higher than expected. Our benchmark model features rates, timelines, and costs that we feel distribute equal risk of overpaying to earlier owners and later owners.

At any given time, current owners should be saving towards each component’s next replacement rather than towards all its replacements during the life of the building, or worse, towards those expenditures that happen to fall in an arbitrary time period. This protects against price



fluctuations and, in the likely case where construction inflation differs from CPI inflation, ensures a more equitable payment schedule. Also, component quality tends to upgrade over time; it is not equitable for current owners to pay for higher quality future components that they will never use and never be compensated for when they sell.

Funding with No Reserve Fund Deficiency (Benchmark Model) Creating a funding plan for buildings with no existing deficiency is relatively straight-forward. We determine the average lifespan of each component, its observed age, and its estimated current replacement cost—how much it would cost to replace the component if it were done today. We create a replacement schedule, increasing the current replacement cost by the construction inflation rate every year to determine how much it will cost in future years to replace each component. To ensure that we have this amount in the Reserve Fund when we need it, we suggest saving an amount that, when increased each year by forecasted inflation and when combined with interest, exactly equals the estimated future cost of the replacement.

The graph below illustrates this with a hypothetical component that has an expected lifespan of seven years, an observed condition of zero years, and a Current Replacement Cost of $1,200. The Current Replacement Cost increases by construction inflation (3.0%) every year. The Future Replacement Cost is equal to the Current Replacement Cost every seven years, during the years of replacement. The Current RF Requirements is a running total of the Annual RF Contributions plus interest on the previous year’s Current RF Requirements. The Annual RF Contributions are determined such that they increase with inflation every year, and when saved over the life of the component and combined with interest exactly equal the replacement cost in the years that the component is replaced.

This graph is explained numerically in the table on the following page. Note that interest (2.7%) is calculated conservatively: annual contributions are assumed to occur at the end of the year,

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Year:

Single Component: Timing of Reserve Contributions

FutureReplacementCosts

CurrentReplacementCosts

Current RFRequirements

Annual RFContributions



earning no interest in the year that they are made, and all replacements are assumed to occur at the beginning of the year, eliminating interest income in replacement years.

The graph on the following page shows a closer look at the Annual RF Contributions. Note that each year’s payment increases by CPI’s inflation rate (1.7%), though there is a larger increase after each component replacement. Taken on average, the annual payments increase with

0 $1,200 $1,476 $0 $185.01 $0.00 $1851 $1,236 $1,476 $185 $188.15 $5.00 $3782 $1,273 $1,476 $378 $191.35 $10.21 $5803 $1,311 $1,476 $580 $194.60 $15.65 $7904 $1,351 $1,476 $790 $197.91 $21.33 $1,0095 $1,391 $1,476 $1,009 $201.28 $27.25 $1,2386 $1,433 $1,476 $1,238 $204.70 $33.42 $1,4767 $1,476 $1,476 $1,476 $227.53 $0.00 $2288 $1,520 $1,815 $228 $231.40 $6.14 $4659 $1,566 $1,815 $465 $235.34 $12.56 $71310 $1,613 $1,815 $713 $239.34 $19.25 $97211 $1,661 $1,815 $972 $243.41 $26.23 $1,24112 $1,711 $1,815 $1,241 $247.54 $33.51 $1,52213 $1,762 $1,815 $1,522 $251.75 $41.10 $1,81514 $1,815 $1,815 $1,815 $279.84 $0.00 $28015 $1,870 $2,232 $280 $284.60 $7.56 $57216 $1,926 $2,232 $572 $289.43 $15.44 $87717 $1,983 $2,232 $877 $294.35 $23.68 $1,19518 $2,043 $2,232 $1,195 $299.36 $32.26 $1,52719 $2,104 $2,232 $1,527 $304.45 $41.22 $1,87220 $2,167 $2,232 $1,872 $309.62 $50.55 $2,23221 $2,232 $2,232 $2,232 $344.17 $0.00 $34422 $2,299 $2,746 $344 $350.02 $9.29 $70323 $2,368 $2,746 $703 $355.97 $18.99 $1,07824 $2,439 $2,746 $1,078 $362.02 $29.12 $1,47025 $2,513 $2,746 $1,470 $368.17 $39.68 $1,87726 $2,588 $2,746 $1,877 $374.43 $50.69 $2,30327 $2,666 $2,746 $2,303 $380.80 $62.17 $2,74628 $2,746 $2,746 $2,746 $423.28 $0.00 $42329 $2,828 $3,377 $423 $430.48 $11.43 $86530 $2,913 $3,377 $865 $437.79 $23.36 $1,326

Closing Balance

YearCurrent

Replacement Costs

Future Replacement

Costs

Current RF Requirements (Opening Bal.)

Annual RF Contributions

Interest



construction inflation. Each year’s owners equitably save for the component’s next replacement cost in this model.

Adding the Annual RF Contributions from every component gives us the total amount that should be saved each year. Saving less than this amount causes or increases a reserve fund deficiency; saving more than this amount reduces an existing deficiency or causes a reserve fund surplus (ignoring extra or forgone interest).

The graph below illustrates how the summed total of all components’ Annual RF Contributions can change every year, using your building as an example. The payments change sporadically from year to year when construction inflation differs from total inflation, though the payments increase with construction inflation on average when the strata is saving for the replacement of all components in any given year. In a year where a component’s next replacement date is after the end of the building’s life, that component requires no funding and the total required annual contribution may be less than the previous year’s required contribution.

$175.00

$225.00

$275.00

$325.00

$375.00

$425.00

$475.00

Year:

Annual RF Contributions

Annual RFContributions



Funding an Existing Reserve Fund Deficiency When a strata corporation has historically under-contributed to their Reserve Fund, they are left with a Reserve Fund Deficiency that can sometimes be in the millions of dollars. This deficiency must always be funded by the end of the building’s economic life. Common ways to make up the deficiency include special assessments, reserve fund contributions that exceed regularly required amounts, above-average maintenance (which increases components’ lives), below-average quality standards, and shrewd contracting (which lowers replacement costs). This study focuses specifically on special assessments and reserve fund contributions; management practices will dictate the success of other deficiency-funding options.

Funding models must be both equitable and practical; equity refers to how much of the deficiency is funded in each future year, while practicality refers to the likelihood that the funding plan is followed. As mentioned earlier, the reserve fund deficiency only decreases in years where more money is contributed than what is required under a model with no deficiency, plus the additional interest that a fully funded model would have earned due to its higher closing balance. This can come from regular annual contributions, one-time transfers, and special assessments.

Our Minimum Funding Model (Appendix J) illustrates what will happen if the strata corporation makes no funding changes other than increasing the contributions by CPI inflation while meeting legislative requirements. Adequate Funding (Recommended model, Section 5) balances equity and practicality by providing a funding model with few or no special assessments, depending on the property’s upcoming expenditures. Full Funding (Appendix J) puts more emphasis on eliminating the existing reserve fund deficiency within 30 years while incurring no special assessments, if feasible, with less concern for the practicality of the funding model.

We take several factors into consideration when creating financial plans to fund a historical deficiency. While it may seem equitable to make next year’s contributions at least as high as they

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Total Annual RF Contributions


Trendline(ConstructionInflation)



would be under a no-deficiency model, this can often necessitate increasing the Reserve Fund Budget by a prohibitively large factor. Our models propose funding options that balance the need for large payment increases with the need for advanced notice about large payment increases. We also attempt to reduce the annual payments by spreading the deficiency’s repayment over as many years as possible, given the life of the building; however, this strategy can lead to a greater risk of special assessments. We balance the need for lower annual payments with the need for stable payment schedules.

We recommend updating this report either after a significant change to the component information and funding schedule or after three years, whichever comes first. We recommend following the Funding Model proposed in the body of this report for the next three years, provided there are no significant unexpected expenditures or contributions.


NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix J—Alternate Funding Models

Appendix J—Alternate Funding Models



Three Funding models are proposed in this report for the joint strata and each section, and have been named as follows: Minimum Funding, Adequate Funding, and Full Funding. Adequate Funding is our recommended model and can be found in Section 5 of this report; Minimum and Full Funding are in this appendix. Each model outlines a different way of funding the upcoming reserve expenditures.

The Minimum Funding Model follows the greater of either the minimum legislated requirements or the current funding contributions with increases following CPI inflation projections, and relies heavily on special assessments.

The Adequate Funding Model balances equity and practicality, but may still result in a risk of special assessments. It is developed in partnership with the strata’s representatives.

The Full Funding Model favours equitable payments in a risk-averse manner, with the goal of attaining eventual full funding and minimizing the risk of special assessments.

The following graph shows the annual payments of all three funding models (regular contributions and special assessments combined) over the 30 year projection period:

Ignoring interest, each funding model contributes the exact same amount over the life of the building. Due to foregone interest, however, the model that has the greatest deficiency for the longest time (the Minimum Funding Model) will pay the most by the end of the building’s life.

The following graph shows a running total of strata reserve contributions in nominal dollars. Note that although the Minimum Funding Model can show the lowest total expenditure in any given year, it will pay the most by the end of the building’s life due to foregone interest.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Year End:

Annual Reserve Fund Contributions

MinimumFunding Model

AdequateFunding Model

Full FundingModel

IdealContributions



Each of the funding model options address the requirement to fund future reserve component repairs/replacements, with the emphasis balanced between the following 3 factors:

1. The desire to provide ample notice to owners with regards to annual reserve fund contribution increases;

2. The desire to provide funding that avoids or eliminates the likelihood of future special assessments;

3. The desire to equitably balance the burden of future funding, including any accrued deficiency which must eventually be eliminated, between future owners in the short, medium, and long term.

The “Minimum Funding Model” follows minimum of 25% of the annual operating budget. Where the current funding exceeds these bare minimum requirements, this model will follow the current reserve funding contributions, increasing with CPI inflation. Minimum legislated funding has often been the approach adopted by many corporations in BC prior to the depreciation report requirements. Following this model places all the emphasis on factor 1 (desire for ample notice of contribution increases), with no consideration for factor 2 or 3 (desire to eliminate risk of special assessments and to work towards full funding). Further, this model typically has a very high risk of special assessments in the future—this is a common symptom of minimum funding.



Additionally, the increasing reserve fund deficiency will need to be paid back (typically through special assessments). It is important to remember that there can be no reserve fund deficiency by the end of building life, therefore steps towards reducing the deficiency should occur far in advance of end of life.

The “Adequate Funding Model” attempts to balance all 3 factors, giving consideration for adequate notice of significant contribution increases, limiting the risk of substantial special assessments where possible, and addressing the reserve fund deficiency in an equitable manner so as not to unfairly burden the near-term future owners with an inordinate share of the accrued deficiency repayment. Over time, as actual replacements occur sooner or later than proposed and costs are greater or less than proposed, the adequate funding model will need updating (at the legislated three-year intervals). As the intent of this model is to provide for adequate funds in any given year to meet the financial obligations of that particular year, this updated information will require the adequate funding contributions to be adjusted from time to time.

The “Full Funding Model” focuses primarily on factors 2 and 3, which minimizes the likelihood of special assessments and reaches full funding by the end of the 30-year projection, but usually does not address factor 1 (desire for ample notice of contribution increases) effectively. It can often recommend prohibitively-high fees. This funding model will typically see the most drastic short-term increases in annual reserve contributions to avoid significant special assessments and eliminate the built-up reserve fund deficiency over time. One drawback of this model is that it risks over-funding if the projections are found to overstate the actual replacement costs, if the actual replacement dates occur later than the proposed dates in the 30-year projection, or both. This can place an unfair financial burden on future owners in certain years, although this is only likely to become apparent once the projection period has run its course.

The following pages contain a 30-Year Reserve Fund Projection and both a nominal and real dollar Cash Flow Table for both the Minimum and the Full Funding Models. For a breakdown of expenditures by component, please refer to Section 5.2.




30-Year Reserve Fund Projection—Minimum Funding Model—Strata (Joint)

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - MINIMUM FUNDING - Strata (Joint) Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) -$



256,800 352,800 962,300 1,036,500 434,500 329,300 221,000 228,100 261,000 354,500 460,700 371,500 487,100 336,100 461,000 160,8000.00% 1.00% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70%

103,200 105,000 106,800 108,600 110,400 112,300 114,200 116,100 118,100 120,100 122,200 124,200 126,400 128,500 130,700 132,900

500,0001.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%2,500 4,500 14,300 5,900 4,600 2,600 3,000 3,800 6,200 9,000 6,600 9,500 5,500 8,700 800 0

362,500 962,300 1,083,400 1,151,000 549,500 444,100 338,200 348,100 385,400 483,600 589,400 505,300 619,000 473,300 592,500 293,700

9,700 0 46,900 716,400 220,300 223,100 110,100 87,000 30,900 22,900 217,900 18,200 282,900 12,400 431,600 268,200

352,800 962,300 1,036,500 434,500 329,300 221,000 228,100 261,000 354,500 460,700 371,500 487,100 336,100 461,000 160,800 25,500

244,800 244,500 243,600 249,800 244,400 243,000 239,800 245,000 249,600 254,100 261,400 266,100 274,300 279,100 289,800 298,3002,882,700 3,164,200 3,409,100 2,986,200 3,068,100 3,156,100 3,368,100 3,614,600 3,930,100 4,266,800 4,419,600 4,786,300 4,899,300 5,298,100 5,287,600 5,453,200

(2,529,900) (2,201,900) (2,372,600) (2,551,600) (2,738,800) (2,935,100) (3,139,900) (3,353,600) (3,575,600) (3,806,100) (4,048,100) (4,299,200) (4,563,200) (4,837,100) (5,126,700) (5,427,700)

23.9 20.1 19.6 22.3 23.8 25.6 26.8 28.0 28.8 29.5 31.4 32.1 34.6 35.2 39.0 40.8



Total Expenditures

Closing Balance

Idea l Clos ing Ba lanceIdeal Annual Contribution

DEFICIENCY ANALYSIS

OPENING BALANCERecommended Annual Contribution IncreaseRecommended Annual Contribution

Interest Income


Loan DrawsSpecia l Assessment

Interest Rate

Transfer From OperatingOther Income




30-Year Reserve Fund Projection—Minimum Funding Model—Strata (Joint)

RESERVE FUND PROJECTION - 30 YEAR - MINIMUM FUNDING - Strata (Joint) (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


25,500 161,400 120,300 0 0 109,600 0 64,800 201,600 0 0 131,600 0 101,800 208,7001.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70%

135,200 137,500 139,800 142,200 144,600 147,100 149,600 152,100 154,700 157,300 160,000 162,700 165,500 168,300 171,200

26,100 608,700 1,069,300 115,600 4,408,300 120,700

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%700 0 0 0 0 0 0 1,300 0 0 0 0 0 1,100 0

161,400 298,900 286,200 750,900 144,600 1,325,900 149,600 218,200 471,900 4,565,600 160,000 415,000 165,500 271,200 379,800

0 178,600 286,200 750,900 35,000 1,325,900 84,700 16,600 471,900 4,565,600 28,400 415,000 63,600 62,500 223,800

161,400 120,300 0 0 109,600 0 64,800 201,600 0 0 131,600 0 101,800 208,700 156,000

303,400 310,900 320,000 335,700 341,900 365,400 372,700 379,300 392,100 461,600 469,900 483,300 492,400 501,600 513,1005,903,800 6,190,800 6,383,900 6,120,900 6,592,100 5,773,800 6,215,400 6,745,400 6,835,000 2,792,300 3,308,400 3,454,800 3,975,100 4,519,900 4,925,100

(5,742,400) (6,070,500) (6,383,900) (6,120,900) (6,482,500) (5,773,800) (6,150,600) (6,543,800) (6,835,000) (2,792,300) (3,176,800) (3,454,800) (3,873,300) (4,311,200) (4,769,100)

42.3 44.2 45.7 43.0 44.8 39.3 41.1 42.7 44.2 17.7 19.9 21.2 23.4 25.5 27.9



Total Expenditures

Closing Balance


DEFICIENCY ANALYSIS


Interest Income



Interest Rate





30-Year Reserve Fund Projection—Minimum Funding Model—Residential

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - MINIMUM FUNDING - Residential Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) -$



1,289,400 1,443,100 1,154,800 1,307,200 1,170,500 1,265,900 1,436,700 1,580,200 1,781,300 1,690,800 1,617,800 1,667,400 1,856,500 2,069,600 1,951,900 00.11% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70%

140,800 143,200 145,600 148,100 150,600 153,200 155,800 158,400 161,100 163,900 166,700 169,500 172,400 175,300 178,300 181,300

238,800 39,400

(450,000)1.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%

12,900 18,500 17,900 18,600 23,300 30,300 37,400 42,700 40,200 38,200 39,500 44,400 49,900 46,700 0 0

1,443,100 1,154,800 1,318,300 1,473,800 1,344,400 1,449,400 1,629,900 1,781,300 1,982,600 1,892,900 1,823,900 1,881,300 2,078,800 2,291,700 2,369,000 220,700

0 0 11,200 303,300 78,500 12,700 49,700 0 291,800 275,100 156,500 24,800 9,100 339,700 2,369,000 220,700

1,443,100 1,154,800 1,307,200 1,170,500 1,265,900 1,436,700 1,580,200 1,781,300 1,690,800 1,617,800 1,667,400 1,856,500 2,069,600 1,951,900 0 0

172,900 174,100 174,500 177,600 175,300 173,200 171,000 173,900 180,700 187,400 192,700 196,300 199,800 207,600 243,300 250,4001,600,600 1,795,300 1,986,400 1,889,300 2,024,200 2,233,300 2,413,500 2,652,600 2,605,200 2,580,500 2,682,200 2,925,500 3,194,900 3,139,900 1,035,000 1,086,700

(157,500) (640,500) (679,200) (718,800) (758,300) (796,600) (833,400) (871,300) (914,400) (962,700) (1,014,700) (1,069,000) (1,125,200) (1,187,900) (1,035,000) (1,086,700)

1.0 4.0 4.2 4.3 4.4 4.3 4.3 4.3 4.5 4.8 4.9 5.0 5.1 5.4 5.8 6.0



Total Expenditures

Closing Balance


DEFICIENCY ANALYSIS


Interest Income



Interest Rate





30-Year Reserve Fund Projection—Minimum Funding Model—Residential

RESERVE FUND PROJECTION - 30 YEAR - MINIMUM FUNDING - Residential (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


0 169,200 361,300 46,100 186,700 377,700 398,800 604,900 406,900 420,800 505,700 711,300 471,400 221,000 401,5001.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70%

184,400 187,500 190,700 194,000 197,300 200,600 204,000 207,500 211,000 214,600 218,300 222,000 225,700 229,600 233,500

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%0 4,600 0 0 4,700 5,200 10,500 5,200 5,500 7,700 13,000 6,600 0 4,500 3,200

184,400 361,300 552,000 240,100 388,700 583,500 613,300 817,600 623,400 643,100 737,000 939,800 697,100 455,100 638,100

15,200 0 505,900 53,300 11,100 184,700 8,500 410,700 202,600 137,300 25,700 468,400 476,100 53,600 284,700

169,200 361,300 46,100 186,700 377,700 398,800 604,900 406,900 420,800 505,700 711,300 471,400 221,000 401,500 353,400

254,900 259,200 270,300 275,600 280,400 287,700 292,700 303,000 310,900 318,000 323,700 335,500 347,400 354,000 363,9001,355,300 1,651,200 1,446,500 1,706,300 2,021,500 2,174,000 2,516,700 2,465,900 2,635,300 2,883,400 3,258,600 3,201,000 3,145,900 3,529,800 3,696,500

(1,186,100) (1,289,900) (1,400,400) (1,519,600) (1,643,800) (1,775,300) (1,911,800) (2,059,000) (2,214,500) (2,377,600) (2,547,300) (2,729,600) (2,924,900) (3,128,300) (3,343,200)

6.4 6.7 7.3 7.8 8.1 8.6 8.9 9.7 10.2 10.7 11.0 11.9 13.0 13.4 14.1



Total Expenditures

Closing Balance


DEFICIENCY ANALYSIS


Interest Income



Interest Rate





30-Year Reserve Fund Projection—Minimum Funding Model—Commercial

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - MINIMUM FUNDING - Commercial Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) -$



81,100 86,400 42,000 47,300 52,900 32,400 38,100 38,600 35,100 32,900 0 0 4,000 9,600 15,400 16,8000.02% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70%4,500 4,600 4,600 4,700 4,800 4,900 5,000 5,000 5,100 5,200 5,300 5,400 5,500 5,600 5,700 5,800

47,400 5,700

(50,000)1.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%800 1,100 700 900 600 800 900 800 700 0 0 0 100 300 300 500

86,400 42,000 47,300 52,900 58,300 38,100 43,900 44,400 41,000 85,600 11,000 5,400 9,600 15,400 21,400 23,100

0 0 0 0 25,900 0 5,300 9,300 8,100 85,600 11,000 1,400 0 0 4,500 0

86,400 42,000 47,300 52,900 32,400 38,100 38,600 35,100 32,900 0 0 4,000 9,600 15,400 16,800 23,100

7,000 6,900 6,900 6,800 7,000 6,700 6,600 6,800 7,000 8,300 8,600 8,800 8,900 9,100 9,300 9,40090,700 98,800 107,200 115,900 98,800 107,800 111,900 112,100 113,900 37,400 35,800 44,100 54,200 64,700 71,100 82,500

(4,300) (56,700) (59,900) (63,000) (66,400) (69,800) (73,300) (77,000) (81,000) (37,400) (35,800) (40,100) (44,600) (49,300) (54,300) (59,400)

0.8 10.0 11.3 11.3 12.4 12.3 12.5 13.2 13.8 7.2 6.8 7.4 8.0 8.5 9.1 9.5


Interest Income



Interest Rate




Total Expenditures

Closing Balance


DEFICIENCY ANALYSIS




30-Year Reserve Fund Projection—Minimum Funding Model—Commercial

RESERVE FUND PROJECTION - 30 YEAR - MINIMUM FUNDING - Commercial (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


23,100 24,800 31,400 38,300 45,500 53,000 60,800 69,000 77,400 24,900 32,400 40,300 38,200 35,900 25,9001.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70% 1.70%5,900 6,000 6,100 6,200 6,300 6,400 6,500 6,600 6,700 6,800 6,900 7,100 7,200 7,300 7,400

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%500 700 800 1,000 1,200 1,400 1,600 1,900 500 700 900 800 800 500 200

29,400 31,400 38,300 45,500 53,000 60,800 69,000 77,400 84,600 32,400 40,300 48,100 46,100 43,700 33,400

4,700 0 0 0 0 0 0 0 59,700 0 0 10,000 10,200 17,900 19,800

24,800 31,400 38,300 45,500 53,000 60,800 69,000 77,400 24,900 32,400 40,300 38,200 35,900 25,900 13,700

9,700 9,800 10,000 10,200 10,300 10,500 10,700 10,900 11,900 12,100 12,300 12,600 13,000 13,400 13,90089,600 101,800 114,500 127,800 141,600 155,900 170,800 186,300 141,900 157,800 174,300 181,400 188,800 189,000 187,600

(64,800) (70,400) (76,200) (82,300) (88,600) (95,100) (101,900) (108,900) (117,000) (125,400) (134,100) (143,200) (152,900) (163,100) (174,000)

10.2 10.6 11.0 11.4 11.8 12.2 12.5 12.9 16.3 16.7 17.1 18.2 19.3 20.9 22.9


Interest Income



Interest Rate




Total Expenditures

Closing Balance


DEFICIENCY ANALYSIS




Nominal Cash Flow Table and Graph—Minimum Funding Model—Strata (Joint)

R-4270

2020 256,829 103,218 0.00% 41 - 2,471 9,713 352,806 2021 352,806 104,973 1.70% 41 - 4,528 - 962,306 2022 962,306 106,757 1.70% 42 - 14,341 46,922 1,036,483 2023 1,036,483 108,572 1.70% 43 - 5,921 716,430 434,545 2024 434,545 110,418 1.70% 43 - 4,571 220,284 329,250 2025 329,250 112,295 1.70% 44 - 2,565 223,092 221,018 2026 221,018 114,204 1.70% 45 - 2,995 110,107 228,110 2027 228,110 116,145 1.70% 46 - 3,809 87,031 261,033 2028 261,033 118,120 1.70% 46 - 6,215 30,852 354,516 2029 354,516 120,128 1.70% 47 - 8,954 22,877 460,722 2030 460,722 122,170 1.70% 48 - 6,556 217,900 371,549 2031 371,549 124,247 1.70% 49 - 9,539 18,241 487,094 2032 487,094 126,359 1.70% 50 - 5,514 282,868 336,099 2033 336,099 128,507 1.70% 51 - 8,741 12,369 460,978 2034 460,978 130,692 1.70% 51 - 792 431,638 160,823 2035 160,823 132,914 1.70% 52 - - 268,202 25,535 2036 25,535 135,173 1.70% 53 - 689 - 161,398 2037 161,398 137,471 1.70% 54 - - 178,563 120,306 2038 120,306 139,808 1.70% 55 26,125 - 286,239 - 2039 - 142,185 1.70% 56 608,672 - 750,857 - 2040 - 144,602 1.70% 57 - - 35,029 109,573 2041 109,573 147,060 1.70% 58 1,069,250 - 1,325,884 - 2042 - 149,560 1.70% 59 - - 84,747 64,814 2043 64,814 152,103 1.70% 60 - 1,301 16,623 201,595 2044 201,595 154,689 1.70% 61 115,585 - 471,868 - 2045 - 157,318 1.70% 62 4,408,285 - 4,565,604 - 2046 - 159,993 1.70% 63 - - 28,419 131,573 2047 131,573 162,713 1.70% 64 120,703 - 414,989 - 2048 - 165,479 1.70% 65 - - 63,645 101,834 2049 101,834 168,292 1.70% 66 - 1,061 62,534 208,653 2050 208,653 171,153 1.70% 67 - - 223,824 155,982

Closing Balance

Average Monthly



Annual Contribution



Annual Contribution

Special Assessments

Estimated Future

Expenditures

Nominal Cash Flow Table—Minimum Funding - Strata (Joint)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Year End:

Minimum Funding ScheduleSpecialAssessment


Closing Balance








Real Dollar Cash Flow Table and Graph—Minimum Funding Model—Strata (Joint)

R-4270

2020 256,829 103,218 0.00% 41 - 2,471 9,713 352,806 2021 346,909 103,218 0.00% 41 - 4,452 - 946,221 2022 930,404 103,218 0.00% 41 - 13,866 45,367 1,002,121 2023 985,370 103,218 0.00% 41 - 5,629 681,100 413,116 2024 406,211 103,218 0.00% 41 - 4,273 205,920 307,781 2025 302,636 103,218 0.00% 41 - 2,358 205,060 203,153 2026 199,757 103,218 0.00% 41 - 2,707 99,515 206,167 2027 202,721 103,218 0.00% 41 - 3,385 77,345 231,979 2028 228,102 103,218 0.00% 41 - 5,431 26,960 309,791 2029 304,612 103,218 0.00% 41 - 7,694 19,656 395,868 2030 389,251 103,218 0.00% 41 - 5,539 184,097 313,911 2031 308,663 103,218 0.00% 41 - 7,925 15,154 404,652 2032 397,888 103,218 0.00% 41 - 4,504 231,064 274,546 2033 269,957 103,218 0.00% 41 - 7,021 9,935 370,260 2034 364,071 103,218 0.00% 41 - 626 340,900 127,015 2035 124,892 103,218 0.00% 41 - - 208,280 19,830 2036 19,499 103,218 0.00% 41 - 526 - 123,243 2037 121,183 103,218 0.00% 41 - - 134,071 90,330 2038 88,820 103,218 0.00% 41 19,288 - 211,326 - 2039 - 103,218 0.00% 41 441,861 - 545,079 - 2040 - 103,218 0.00% 41 - - 25,004 78,214 2041 76,907 103,218 0.00% 41 750,481 - 930,605 - 2042 - 103,218 0.00% 41 - - 58,487 44,731 2043 43,983 103,218 0.00% 41 - 883 11,281 136,803 2044 134,517 103,218 0.00% 41 77,126 - 314,860 - 2045 - 103,218 0.00% 41 2,892,317 - 2,995,535 - 2046 - 103,218 0.00% 41 - - 18,335 84,883 2047 83,465 103,218 0.00% 41 76,569 - 263,252 - 2048 - 103,218 0.00% 41 - - 39,699 63,519 2049 62,458 103,218 0.00% 41 - 651 38,354 127,973 2050 125,833 103,218 0.00% 41 - - 134,983 94,069

Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Minimum Funding - Strata (Joint)


Year EndEstimated

Future Expenditures

Closing Balance

Opening Balance

Annual Contribution


Annual Contribution

Average Monthly


Special Assessments

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Year End:

Minimum Funding Schedule (in Real Dollars)SpecialAssessments


Closing Balance








Nominal Cash Flow Table and Graph—Minimum Funding Model—Residential

R-4270

2020 1,289,375 140,806 0.11% 58 - 12,894 - 1,443,074 2021 1,443,074 143,200 1.70% 59 - 18,519 - 1,154,794 2022 1,154,794 145,634 1.70% 60 - 17,916 11,191 1,307,153 2023 1,307,153 148,110 1.70% 61 - 18,571 303,331 1,170,502 2024 1,170,502 150,628 1.70% 62 - 23,296 78,523 1,265,902 2025 1,265,902 153,188 1.70% 64 - 30,286 12,685 1,436,692 2026 1,436,692 155,793 1.70% 65 - 37,447 49,748 1,580,183 2027 1,580,183 158,441 1.70% 66 - 42,665 - 1,781,289 2028 1,781,289 161,135 1.70% 67 - 40,215 291,830 1,690,809 2029 1,690,809 163,874 1.70% 68 - 38,223 275,133 1,617,773 2030 1,617,773 166,660 1.70% 69 - 39,455 156,471 1,667,417 2031 1,667,417 169,493 1.70% 70 - 44,352 24,752 1,856,510 2032 1,856,510 172,374 1.70% 71 - 49,879 9,126 2,069,638 2033 2,069,638 175,305 1.70% 73 - 46,708 339,724 1,951,927 2034 1,951,927 178,285 1.70% 74 238,787 - 2,368,999 - 2035 - 181,316 1.70% 75 39,382 - 220,698 - 2036 - 184,398 1.70% 76 - - 15,199 169,199 2037 169,199 187,533 1.70% 78 - 4,568 - 361,300 2038 361,300 190,721 1.70% 79 - - 505,909 46,112 2039 46,112 193,963 1.70% 80 - - 53,347 186,728 2040 186,728 197,261 1.70% 82 - 4,743 11,075 377,657 2041 377,657 200,614 1.70% 83 - 5,209 184,715 398,765 2042 398,765 204,024 1.70% 85 - 10,538 8,463 604,864 2043 604,864 207,493 1.70% 86 - 5,242 410,703 406,896 2044 406,896 211,020 1.70% 87 - 5,516 202,610 420,822 2045 420,822 214,608 1.70% 89 - 7,654 137,345 505,739 2046 505,739 218,256 1.70% 90 - 12,961 25,686 711,270 2047 711,270 221,966 1.70% 92 - 6,558 468,396 471,398 2048 471,398 225,740 1.70% 94 - - 476,118 221,020 2049 221,020 229,577 1.70% 95 - 4,520 53,622 401,495 2050 401,495 233,480 1.70% 97 - 3,152 284,745 353,382

Closing Balance

Average Monthly



Annual Contribution



Annual Contribution

Special Assessments

Estimated Future

Expenditures

Nominal Cash Flow Table—Minimum Funding - Residential

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Year End:



Closing Balance








Real Dollar Cash Flow Table and Graph—Minimum Funding Model—Residential

R-4270

2020 1,289,375 140,806 0.11% 58 - 12,894 - 1,443,074 2021 1,418,952 140,806 0.00% 58 - 18,210 - 1,135,490 2022 1,116,510 140,806 0.00% 58 - 17,322 10,820 1,263,818 2023 1,242,692 140,806 0.00% 58 - 17,655 288,373 1,112,780 2024 1,094,179 140,806 0.00% 58 - 21,777 73,403 1,183,359 2025 1,163,578 140,806 0.00% 58 - 27,838 11,660 1,320,562 2026 1,298,488 140,806 0.00% 58 - 33,845 44,963 1,428,176 2027 1,404,303 140,806 0.00% 58 - 37,916 - 1,583,025 2028 1,556,563 140,806 0.00% 58 - 35,142 255,013 1,477,499 2029 1,452,801 140,806 0.00% 58 - 32,843 236,404 1,390,046 2030 1,366,810 140,806 0.00% 58 - 33,335 132,198 1,408,753 2031 1,385,204 140,806 0.00% 58 - 36,845 20,563 1,542,293 2032 1,516,512 140,806 0.00% 58 - 40,745 7,455 1,690,608 2033 1,662,348 140,806 0.00% 58 - 37,516 272,869 1,567,802 2034 1,541,594 140,806 0.00% 58 188,590 - 1,870,990 - 2035 - 140,806 0.00% 58 30,583 - 171,389 - 2036 - 140,806 0.00% 58 - - 11,606 129,200 2037 127,040 140,806 0.00% 58 - 3,430 - 271,276 2038 266,742 140,806 0.00% 58 - - 373,504 34,044 2039 33,475 140,806 0.00% 58 - - 38,727 135,554 2040 133,288 140,806 0.00% 58 - 3,385 7,905 269,574 2041 265,068 140,806 0.00% 58 - 3,656 129,647 279,883 2042 275,205 140,806 0.00% 58 - 7,273 5,841 417,443 2043 410,465 140,806 0.00% 58 - 3,557 278,706 276,123 2044 271,507 140,806 0.00% 58 - 3,680 135,194 280,799 2045 276,106 140,806 0.00% 58 - 5,022 90,113 331,820 2046 326,273 140,806 0.00% 58 - 8,362 16,571 458,870 2047 451,200 140,806 0.00% 58 - 4,160 297,131 299,035 2048 294,036 140,806 0.00% 58 - - 296,980 137,862 2049 135,558 140,806 0.00% 58 - 2,772 32,888 246,248 2050 242,132 140,806 0.00% 58 - 1,901 171,723 213,116

Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Minimum Funding - Residential


Year EndEstimated

Future Expenditures

Closing Balance

Opening Balance

Annual Contribution


Annual Contribution

Average Monthly


Special Assessments

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Year End:



Closing Balance








Nominal Cash Flow Table and Graph—Minimum Funding Model—Commercial

R-4270

2020 81,084 4,480 0.02% 34 - 811 - 86,375 2021 86,375 4,556 1.70% 35 - 1,108 - 42,040 2022 42,040 4,634 1.70% 35 - 659 - 47,332 2023 47,332 4,712 1.70% 36 - 876 - 52,920 2024 52,920 4,792 1.70% 36 - 577 25,875 32,415 2025 32,415 4,874 1.70% 37 - 783 - 38,072 2026 38,072 4,957 1.70% 38 - 884 5,318 38,595 2027 38,595 5,041 1.70% 38 - 791 9,316 35,111 2028 35,111 5,127 1.70% 39 - 730 8,076 32,892 2029 32,892 5,214 1.70% 39 47,449 - 85,555 - 2030 - 5,303 1.70% 40 5,654 - 10,956 - 2031 - 5,393 1.70% 41 - - 1,401 3,992 2032 3,992 5,484 1.70% 42 - 108 - 9,584 2033 9,584 5,578 1.70% 42 - 259 - 15,421 2034 15,421 5,672 1.70% 43 - 294 4,545 16,841 2035 16,841 5,769 1.70% 44 - 455 - 23,065 2036 23,065 5,867 1.70% 44 - 497 4,673 24,756 2037 24,756 5,967 1.70% 45 - 668 - 31,391 2038 31,391 6,068 1.70% 46 - 848 - 38,307 2039 38,307 6,171 1.70% 47 - 1,034 - 45,512 2040 45,512 6,276 1.70% 48 - 1,229 - 53,017 2041 53,017 6,383 1.70% 48 - 1,431 - 60,832 2042 60,832 6,491 1.70% 49 - 1,642 - 68,966 2043 68,966 6,602 1.70% 50 - 1,862 - 77,429 2044 77,429 6,714 1.70% 51 - 479 59,692 24,930 2045 24,930 6,828 1.70% 52 - 673 - 32,431 2046 32,431 6,944 1.70% 53 - 876 - 40,251 2047 40,251 7,062 1.70% 54 - 818 9,969 38,162 2048 38,162 7,182 1.70% 54 - 755 10,189 35,910 2049 35,910 7,304 1.70% 55 - 488 17,850 25,852 2050 25,852 7,429 1.70% 56 - 164 19,788 13,656

Annual Contribution

Special Assessments

Estimated Future

Expenditures

Nominal Cash Flow Table—Minimum Funding - Commercial

Closing Balance

Average Monthly



Annual Contribution



0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Year End:



Closing Balance








Real Dollar Cash Flow Table and Graph—Minimum Funding Model—Commercial

R-4270

2020 81,084 4,480 0.02% 34 - 811 - 86,375 2021 84,931 4,480 0.00% 34 - 1,090 - 41,337 2022 40,646 4,480 0.00% 34 - 637 - 45,763 2023 44,998 4,480 0.00% 34 - 832 - 50,310 2024 49,469 4,480 0.00% 34 - 539 24,188 30,301 2025 29,794 4,480 0.00% 34 - 720 - 34,995 2026 34,410 4,480 0.00% 34 - 799 4,806 34,883 2027 34,299 4,480 0.00% 34 - 703 8,279 31,203 2028 30,682 4,480 0.00% 34 - 638 7,057 28,742 2029 28,262 4,480 0.00% 34 40,770 - 73,512 - 2030 - 4,480 0.00% 34 4,777 - 9,257 - 2031 - 4,480 0.00% 34 - - 1,164 3,316 2032 3,261 4,480 0.00% 34 - 88 - 7,829 2033 7,698 4,480 0.00% 34 - 208 - 12,386 2034 12,179 4,480 0.00% 34 - 232 3,590 13,301 2035 13,079 4,480 0.00% 34 - 353 - 17,912 2036 17,612 4,480 0.00% 34 - 379 3,568 18,904 2037 18,588 4,480 0.00% 34 - 502 - 23,569 2038 23,175 4,480 0.00% 34 - 626 - 28,281 2039 27,808 4,480 0.00% 34 - 751 - 33,039 2040 32,487 4,480 0.00% 34 - 877 - 37,844 2041 37,212 4,480 0.00% 34 - 1,005 - 42,696 2042 41,983 4,480 0.00% 34 - 1,134 - 47,596 2043 46,800 4,480 0.00% 34 - 1,264 - 52,544 2044 51,666 4,480 0.00% 34 - 320 39,830 16,635 2045 16,357 4,480 0.00% 34 - 442 - 21,279 2046 20,923 4,480 0.00% 34 - 565 - 25,968 2047 25,534 4,480 0.00% 34 - 519 6,324 24,209 2048 23,804 4,480 0.00% 34 - 471 6,356 22,399 2049 22,025 4,480 0.00% 34 - 299 10,948 15,856 2050 15,591 4,480 0.00% 34 - 99 11,934 8,236

Annual Contribution


Annual Contribution

Average Monthly


Special Assessments

Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Minimum Funding - Commercial


Year EndEstimated

Future Expenditures

Closing Balance

Opening Balance

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Year End:



Closing Balance








30-Year Reserve Fund Projection—Full Funding Model—Strata (Joint)

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - FULL FUNDING - Strata (Joint) Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) #########



256,800 352,800 1,032,300 1,226,700 781,200 847,500 927,800 1,142,500 1,401,800 1,741,700 2,115,700 2,316,900 2,747,100 2,936,400 3,429,000 3,525,5000.00% 69.54% 29.07% 15.77% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

103,200 175,000 225,900 261,500 274,600 288,300 302,700 317,900 333,700 350,400 368,000 386,300 405,700 425,900 447,200 469,600

500,0001.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%2,500 4,500 15,400 9,400 12,000 15,100 22,100 28,500 37,000 46,400 51,200 62,100 66,500 79,000 80,900 87,900

362,500 1,032,300 1,273,700 1,497,700 1,067,800 1,150,900 1,252,600 1,488,800 1,772,500 2,138,500 2,534,800 2,765,400 3,219,300 3,441,300 3,957,200 4,083,100

9,700 0 46,900 716,400 220,300 223,100 110,100 87,000 30,900 22,900 217,900 18,200 282,900 12,400 431,600 268,200

352,800 1,032,300 1,226,700 781,200 847,500 927,800 1,142,500 1,401,800 1,741,700 2,115,700 2,316,900 2,747,100 2,936,400 3,429,000 3,525,500 3,814,900

244,800 244,500 243,600 249,800 244,400 243,000 239,800 245,000 249,600 254,100 261,400 266,100 274,300 279,100 289,800 298,3002,882,700 3,164,200 3,409,100 2,986,200 3,068,100 3,156,100 3,368,100 3,614,600 3,930,100 4,266,800 4,419,600 4,786,300 4,899,300 5,298,100 5,287,600 5,453,200

(2,529,900) (2,131,800) (2,182,400) (2,205,000) (2,220,600) (2,228,400) (2,225,600) (2,212,800) (2,188,400) (2,151,200) (2,102,700) (2,039,200) (1,962,900) (1,869,100) (1,762,100) (1,638,300)

23.9 11.9 9.0 8.1 7.7 7.3 6.9 6.4 5.9 5.4 5.0 4.5 4.2 3.7 3.3 2.9




Total Expenditures

Closing Balance




Recommended Annual ContributionLoan DrawsSpecia l Assessment

OPENING BALANCERecommended Annual Contribution Increase





30-Year Reserve Fund Projection—Full Funding Model—Strata (Joint)

RESERVE FUND PROJECTION - 30 YEAR - FULL FUNDING - Strata (Joint) (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


3,814,900 4,411,000 4,864,400 5,245,400 5,186,700 5,890,200 5,316,800 6,034,100 6,745,400 6,835,000 2,792,300 3,308,400 3,454,800 3,975,100 4,519,9005.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% -14.43% -30.66% 17.75% 1.78% 2.87% 1.87% 1.87% 2.29%

493,100 517,700 543,600 570,800 599,400 629,300 660,800 565,400 392,100 461,600 469,900 483,300 492,400 501,600 513,100

2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%103,000 114,300 123,600 121,400 139,100 123,200 141,300 162,500 169,400 61,300 74,600 78,100 91,600 105,600 116,000

4,411,000 5,043,000 5,531,700 5,937,600 5,925,200 6,642,700 6,118,900 6,762,000 7,306,800 7,357,900 3,336,800 3,869,800 4,038,800 4,582,400 5,148,900

0 178,600 286,200 750,900 35,000 1,325,900 84,700 16,600 471,900 4,565,600 28,400 415,000 63,600 62,500 223,800

4,411,000 4,864,400 5,245,400 5,186,700 5,890,200 5,316,800 6,034,100 6,745,400 6,835,000 2,792,300 3,308,400 3,454,800 3,975,100 4,519,900 4,925,100

303,400 310,900 320,000 335,700 341,900 365,400 372,700 379,300 392,100 461,600 469,900 483,300 492,400 501,600 513,1005,903,800 6,190,800 6,383,900 6,120,900 6,592,100 5,773,800 6,215,400 6,745,400 6,835,000 2,792,300 3,308,400 3,454,800 3,975,100 4,519,900 4,925,100

(1,492,900) (1,326,400) (1,138,500) (934,200) (701,900) (457,000) (181,200) 0 0 0 0 0 0 0 0

2.5 2.1 1.7 1.3 1.0 0.6 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0




Total Expenditures

Closing Balance










30-Year Reserve Fund Projection—Full Funding Model—Residential

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - FULL FUNDING - Residential Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) 50,000.00$



1,289,400 1,443,100 1,171,600 1,345,000 1,234,000 1,360,100 1,567,100 1,753,000 2,002,800 1,967,700 1,957,300 2,077,100 2,344,600 2,644,900 2,623,600 527,9000.11% 13.63% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

140,800 160,000 166,400 173,100 180,000 187,200 194,700 202,500 210,500 219,000 227,700 236,800 246,300 256,200 266,400 277,100

(450,000)1.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%

12,900 18,500 18,200 19,300 24,600 32,600 41,000 47,300 46,200 45,700 48,600 55,400 63,100 62,200 6,900 8,300

1,443,100 1,171,600 1,356,200 1,537,300 1,438,600 1,579,800 1,802,800 2,002,800 2,259,600 2,232,400 2,233,600 2,369,400 2,654,000 2,963,300 2,896,900 813,200

0 0 11,200 303,300 78,500 12,700 49,700 0 291,800 275,100 156,500 24,800 9,100 339,700 2,369,000 220,700

1,443,100 1,171,600 1,345,000 1,234,000 1,360,100 1,567,100 1,753,000 2,002,800 1,967,700 1,957,300 2,077,100 2,344,600 2,644,900 2,623,600 527,900 592,500

172,900 174,100 174,500 177,600 175,300 173,200 171,000 173,900 180,700 187,400 192,700 196,300 199,800 207,600 243,300 250,4001,600,600 1,795,300 1,986,400 1,889,300 2,024,200 2,233,300 2,413,500 2,652,600 2,605,200 2,580,500 2,682,200 2,925,500 3,194,900 3,139,900 1,035,000 1,086,700

(157,500) (623,700) (641,400) (655,300) (664,100) (666,200) (660,500) (649,800) (637,500) (623,200) (605,000) (580,800) (550,000) (516,300) (507,200) (494,200)

1.0 3.5 3.5 3.4 3.2 3.0 2.8 2.6 2.5 2.4 2.2 2.0 1.8 1.6 1.9 1.7




Total Expenditures

Closing Balance










30-Year Reserve Fund Projection—Full Funding Model—Residential

RESERVE FUND PROJECTION - 30 YEAR - FULL FUNDING - Residential (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


592,500 881,100 1,204,500 1,029,100 1,326,300 1,687,800 1,894,200 2,301,300 2,320,800 2,569,800 2,883,400 3,258,600 3,201,000 3,145,900 3,529,8004.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% -2.30% -15.97% 3.63% 3.56% 1.90% 2.77%

288,200 299,700 311,700 324,100 337,100 350,600 364,600 379,200 394,400 385,300 323,700 335,500 347,400 354,000 363,900

2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%15,600 23,800 18,900 26,300 35,500 40,600 50,900 51,000 57,200 65,700 77,200 75,300 73,600 83,500 87,600

896,300 1,204,500 1,535,000 1,379,600 1,698,900 2,079,000 2,309,800 2,731,500 2,772,400 3,020,700 3,284,300 3,669,400 3,622,000 3,583,400 3,981,300

15,200 0 505,900 53,300 11,100 184,700 8,500 410,700 202,600 137,300 25,700 468,400 476,100 53,600 284,700

881,100 1,204,500 1,029,100 1,326,300 1,687,800 1,894,200 2,301,300 2,320,800 2,569,800 2,883,400 3,258,600 3,201,000 3,145,900 3,529,800 3,696,500

254,900 259,200 270,300 275,600 280,400 287,700 292,700 303,000 310,900 318,000 323,700 335,500 347,400 354,000 363,9001,355,300 1,651,200 1,446,500 1,706,300 2,021,500 2,174,000 2,516,700 2,465,900 2,635,300 2,883,400 3,258,600 3,201,000 3,145,900 3,529,800 3,696,500

(474,300) (446,600) (417,300) (380,100) (333,700) (279,800) (215,400) (145,100) (65,500) 0 0 0 0 0 0

1.6 1.4 1.3 1.1 0.9 0.7 0.5 0.3 0.1 0.0 0.0 0.0 0.0 0.0 0.0




Total Expenditures

Closing Balance










30-Year Reserve Fund Projection—Full Funding Model—Commercial

Construction Inflation 3.00%RESERVE FUND PROJECTION - 30 YEAR - FULL FUNDING - Commercial Defaul t Interest Rate 2.70% © NLD Consul ting Minimum Balance (2019) -$



81,100 86,400 45,500 54,900 65,200 50,000 61,300 67,900 70,900 75,500 1,200 1,800 12,300 24,900 38,200 47,4000.02% 78.57% 8.25% 7.62% 5.67% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%4,500 8,000 8,700 9,300 9,800 10,100 10,400 10,700 11,000 11,300 11,600 11,900 12,200 12,600 12,900 13,300

(50,000)1.00% 1.28% 1.57% 1.85% 2.13% 2.42% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%800 1,100 700 1,000 800 1,200 1,500 1,600 1,700 0 0 0 300 700 900 1,300

86,400 45,500 54,900 65,200 75,900 61,300 73,200 80,200 83,500 86,700 12,800 13,700 24,900 38,200 52,000 62,000

0 0 0 0 25,900 0 5,300 9,300 8,100 85,600 11,000 1,400 0 0 4,500 0

86,400 45,500 54,900 65,200 50,000 61,300 67,900 70,900 75,500 1,200 1,800 12,300 24,900 38,200 47,400 62,000

7,000 6,900 6,900 6,800 7,000 6,700 6,600 6,800 7,000 8,300 8,600 8,800 8,900 9,100 9,300 9,40090,700 98,800 107,200 115,900 98,800 107,800 111,900 112,100 113,900 37,400 35,800 44,100 54,200 64,700 71,100 82,500

(4,300) (53,300) (52,300) (50,700) (48,800) (46,500) (44,000) (41,300) (38,500) (36,300) (34,000) (31,800) (29,300) (26,600) (23,700) (20,500)

0.8 5.9 5.6 4.9 4.6 4.1 3.7 3.4 3.0 3.2 2.9 2.7 2.3 2.0 1.7 1.4




Total Expenditures

Closing Balance










30-Year Reserve Fund Projection—Full Funding Model—Commercial

RESERVE FUND PROJECTION - 30 YEAR - FULL FUNDING - Commercial (CONTINUED)Study Year: 2019Construction: 2003Number of Years in Study: 30


62,000 72,500 88,500 105,300 122,900 141,400 155,900 170,800 186,300 141,900 157,800 174,300 181,400 188,800 189,0002.75% 2.75% 2.75% 2.75% 2.75% -29.61% -0.06% 1.70% 9.03% 1.70% 1.70% 2.78% 2.79% 3.55% 3.67%

13,600 14,000 14,400 14,800 15,200 10,700 10,700 10,900 11,900 12,100 12,300 12,600 13,000 13,400 13,900

2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70% 2.70%1,500 2,000 2,400 2,800 3,300 3,800 4,200 4,600 3,400 3,800 4,300 4,400 4,600 4,600 4,600

77,200 88,500 105,300 122,900 141,400 155,900 170,800 186,300 201,600 157,800 174,300 191,400 199,000 206,800 207,400

4,700 0 0 0 0 0 0 0 59,700 0 0 10,000 10,200 17,900 19,800

72,500 88,500 105,300 122,900 141,400 155,900 170,800 186,300 141,900 157,800 174,300 181,400 188,800 189,000 187,600

9,700 9,800 10,000 10,200 10,300 10,500 10,700 10,900 11,900 12,100 12,300 12,600 13,000 13,400 13,90089,600 101,800 114,500 127,800 141,600 155,900 170,800 186,300 141,900 157,800 174,300 181,400 188,800 189,000 187,600

(17,100) (13,300) (9,300) (4,900) (200) 0 0 0 0 0 0 0 0 0 0

1.1 0.8 0.6 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0




Total Expenditures

Closing Balance










Nominal Cash Flow Table and Graph—Full Funding Model—Strata (Joint)

R-4270

2020 256,829 103,218 0.00% 41 - - 9,713 350,335 2021 352,806 175,000 69.54% 69 - 4,528 - 1,032,334 2022 1,032,334 225,880 29.07% 89 - 15,438 46,922 1,226,730 2023 1,226,730 261,496 15.77% 103 - 9,441 716,430 781,236 2024 781,236 274,571 5.00% 108 - 11,967 220,284 847,490 2025 847,490 288,299 5.00% 113 - 15,090 223,092 927,786 2026 927,786 302,714 5.00% 119 - 22,077 110,107 1,142,471 2027 1,142,471 317,850 5.00% 125 - 28,497 87,031 1,401,787 2028 1,401,787 333,743 5.00% 131 - 37,015 30,852 1,741,693 2029 1,741,693 350,430 5.00% 138 - 46,408 22,877 2,115,654 2030 2,115,654 367,951 5.00% 145 - 51,239 217,900 2,316,945 2031 2,316,945 386,349 5.00% 152 - 62,065 18,241 2,747,117 2032 2,747,117 405,666 5.00% 159 - 66,535 282,868 2,936,450 2033 2,936,450 425,949 5.00% 167 - 78,950 12,369 3,428,980 2034 3,428,980 447,247 5.00% 176 - 80,928 431,638 3,525,517 2035 3,525,517 469,609 5.00% 185 - 87,948 268,202 3,814,872 2036 3,814,872 493,090 5.00% 194 - 103,002 - 4,410,963 2037 4,410,963 517,744 5.00% 204 - 114,275 178,563 4,864,419 2038 4,864,419 543,631 5.00% 214 - 123,611 286,239 5,245,422 2039 5,245,422 570,813 5.00% 224 - 121,353 750,857 5,186,731 2040 5,186,731 599,354 5.00% 236 - 139,096 35,029 5,890,152 2041 5,890,152 629,321 5.00% 247 - 123,235 1,325,884 5,316,825 2042 5,316,825 660,787 5.00% 260 - 141,266 84,747 6,034,132 2043 6,034,132 565,412 -14.43% 222 - 162,473 16,623 6,745,393 2044 6,745,393 392,060 -30.66% 154 - 169,385 471,868 6,834,969 2045 6,834,969 461,645 17.75% 181 - 61,273 4,565,604 2,792,284 2046 2,792,284 469,871 1.78% 185 - 74,624 28,419 3,308,360 2047 3,308,360 483,344 2.87% 190 - 78,121 414,989 3,454,836 2048 3,454,836 492,396 1.87% 194 - 91,562 63,645 3,975,149 2049 3,975,149 501,606 1.87% 197 - 105,641 62,534 4,519,862 2050 4,519,862 513,087 2.29% 202 - 115,993 223,824 4,925,119


Annual Contribution

Special Assessments

Estimated Future

Expenditures

Closing Balance


Annual Contribution


Average Monthly


Nominal Cash Flow Table—Full Funding - Strata (Joint)

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Year End:

Full Funding ScheduleSpecialAssessment


Closing Balance








Real Dollar Cash Flow Table and Graph—Full Funding Model—Strata (Joint)

R-4270

2020 256,829 103,218 0.00% 41 - 2,471 9,713 352,806 2021 346,909 172,075 66.71% 68 - 4,452 - 1,015,077 2022 998,110 218,392 26.92% 86 - 14,926 45,367 1,186,061 2023 1,166,235 248,601 13.83% 98 - 8,975 681,100 742,710 2024 730,295 256,667 3.24% 101 - 11,187 205,920 792,229 2025 778,986 264,996 3.24% 104 - 13,870 205,060 852,792 2026 838,537 273,594 3.24% 108 - 19,954 99,515 1,032,570 2027 1,015,310 282,472 3.24% 111 - 25,325 77,345 1,245,763 2028 1,224,939 291,638 3.24% 115 - 32,345 26,960 1,521,962 2029 1,496,522 301,101 3.24% 118 - 39,875 19,656 1,817,842 2030 1,787,455 310,871 3.24% 122 - 43,291 184,097 1,957,520 2031 1,924,798 320,959 3.24% 126 - 51,560 15,154 2,282,163 2032 2,244,015 331,373 3.24% 130 - 54,350 231,064 2,398,674 2033 2,358,578 342,126 3.24% 134 - 63,413 9,935 2,754,182 2034 2,708,143 353,227 3.24% 139 - 63,916 340,900 2,784,386 2035 2,737,843 364,689 3.24% 143 - 68,298 208,280 2,962,550 2036 2,913,028 376,522 3.24% 148 - 78,652 - 3,368,202 2037 3,311,900 388,740 3.24% 153 - 85,801 134,071 3,652,370 2038 3,591,318 401,354 3.24% 158 - 91,260 211,326 3,872,606 2039 3,807,872 414,377 3.24% 163 - 88,095 545,079 3,765,266 2040 3,702,326 427,823 3.24% 168 - 99,288 25,004 4,204,433 2041 4,134,152 441,705 3.24% 174 - 86,496 930,605 3,731,748 2042 3,669,369 456,038 3.24% 179 - 97,494 58,487 4,164,413 2043 4,094,802 383,692 -15.86% 151 - 110,255 11,281 4,577,468 2044 4,500,952 261,607 -31.82% 103 - 113,024 314,860 4,560,723 2045 4,484,487 302,890 15.78% 119 - 40,202 2,995,535 1,832,043 2046 1,801,419 303,133 0.08% 119 - 48,143 18,335 2,134,361 2047 2,098,684 306,613 1.15% 121 - 49,557 263,252 2,191,602 2048 2,154,968 307,134 0.17% 121 - 57,112 39,699 2,479,515 2049 2,438,068 307,649 0.17% 121 - 64,792 38,354 2,772,155 2050 2,725,817 309,430 0.58% 122 - 69,953 134,983 2,970,217

Closing Balance

Average Monthly


Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Full Funding - Strata (Joint)


Annual Contribution


Annual Contribution

Special Assessments


Estimated Future

Expenditures

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Year End:

Full Funding Schedule (in Real Dollars)SpecialAssessment


Closing Balance








Nominal Cash Flow Table and Graph—Full Funding Model—Residential

R-4270

2020 1,289,375 140,806 0.11% 58 - - - 1,430,181 2021 1,443,074 160,000 13.63% 66 - 18,519 - 1,171,594 2022 1,171,594 166,400 4.00% 69 - 18,180 11,191 1,344,983 2023 1,344,983 173,056 4.00% 72 - 19,271 303,331 1,233,978 2024 1,233,978 179,978 4.00% 75 - 24,650 78,523 1,360,082 2025 1,360,082 187,177 4.00% 78 - 32,562 12,685 1,567,136 2026 1,567,136 194,664 4.00% 81 - 40,969 49,748 1,753,022 2027 1,753,022 202,451 4.00% 84 - 47,332 - 2,002,805 2028 2,002,805 210,549 4.00% 87 - 46,196 291,830 1,967,720 2029 1,967,720 218,971 4.00% 91 - 45,700 275,133 1,957,258 2030 1,957,258 227,730 4.00% 94 - 48,621 156,471 2,077,138 2031 2,077,138 236,839 4.00% 98 - 55,414 24,752 2,344,640 2032 2,344,640 246,313 4.00% 102 - 63,059 9,126 2,644,885 2033 2,644,885 256,165 4.00% 106 - 62,239 339,724 2,623,566 2034 2,623,566 266,412 4.00% 110 - 6,873 2,368,999 527,852 2035 527,852 277,068 4.00% 115 - 8,293 220,698 592,516 2036 592,516 288,151 4.00% 119 - 15,588 15,199 881,055 2037 881,055 299,677 4.00% 124 - 23,788 - 1,204,521 2038 1,204,521 311,664 4.00% 129 - 18,863 505,909 1,029,138 2039 1,029,138 324,131 4.00% 134 - 26,346 53,347 1,326,269 2040 1,326,269 337,096 4.00% 140 - 35,510 11,075 1,687,800 2041 1,687,800 350,580 4.00% 145 - 40,583 184,715 1,894,247 2042 1,894,247 364,603 4.00% 151 - 50,916 8,463 2,301,304 2043 2,301,304 379,187 4.00% 157 - 51,046 410,703 2,320,834 2044 2,320,834 394,354 4.00% 163 - 57,192 202,610 2,569,770 2045 2,569,770 385,279 -2.30% 160 - 65,675 137,345 2,883,380 2046 2,883,380 323,742 -15.97% 134 - 77,158 25,686 3,258,594 2047 3,258,594 335,493 3.63% 139 - 75,335 468,396 3,201,027 2048 3,201,027 347,423 3.56% 144 - 73,573 476,118 3,145,905 2049 3,145,905 354,041 1.90% 147 - 83,492 53,622 3,529,816 2050 3,529,816 363,857 2.77% 151 - 87,617 284,745 3,696,544


Annual Contribution

Special Assessments

Estimated Future

Expenditures

Closing Balance


Annual Contribution


Average Monthly


Nominal Cash Flow Table—Full Funding - Residential

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Year End:



Closing Balance








Real Dollar Cash Flow Table and Graph—Full Funding Model—Residential

R-4270

2020 1,289,375 140,806 0.11% 58 - 12,894 - 1,443,074 2021 1,418,952 157,325 11.73% 65 - 18,210 - 1,152,010 2022 1,132,753 160,883 2.26% 67 - 17,577 10,820 1,300,393 2023 1,278,656 164,522 2.26% 68 - 18,320 288,373 1,173,125 2024 1,153,516 168,243 2.26% 70 - 23,042 73,403 1,271,398 2025 1,250,145 172,048 2.26% 71 - 29,930 11,660 1,440,463 2026 1,416,384 175,939 2.26% 73 - 37,028 44,963 1,584,388 2027 1,557,904 179,917 2.26% 75 - 42,063 - 1,779,885 2028 1,750,133 183,986 2.26% 76 - 40,368 255,013 1,719,475 2029 1,690,732 188,147 2.26% 78 - 39,267 236,404 1,681,742 2030 1,653,631 192,402 2.26% 80 - 41,079 132,198 1,754,914 2031 1,725,579 196,754 2.26% 82 - 46,035 20,563 1,947,806 2032 1,915,247 201,203 2.26% 83 - 51,510 7,455 2,160,506 2033 2,124,391 205,754 2.26% 85 - 49,991 272,869 2,107,267 2034 2,072,042 210,407 2.26% 87 - 5,428 1,870,990 416,888 2035 409,919 215,165 2.26% 89 - 6,440 171,389 460,135 2036 452,444 220,031 2.26% 91 - 11,903 11,606 672,772 2037 661,526 225,008 2.26% 93 - 17,861 - 904,395 2038 889,277 230,096 2.26% 95 - 13,926 373,504 759,795 2039 747,095 235,300 2.26% 98 - 19,126 38,727 962,794 2040 946,700 240,621 2.26% 100 - 25,347 7,905 1,204,764 2041 1,184,625 246,063 2.26% 102 - 28,484 129,647 1,329,526 2042 1,307,301 251,628 2.26% 104 - 35,139 5,841 1,588,228 2043 1,561,680 257,319 2.26% 107 - 34,640 278,706 1,574,933 2044 1,548,607 263,138 2.26% 109 - 38,162 135,194 1,714,713 2045 1,686,050 252,785 -3.93% 105 - 43,090 90,113 1,891,812 2046 1,860,189 208,860 -17.38% 87 - 49,778 16,571 2,102,256 2047 2,067,115 212,823 1.90% 88 - 47,790 297,131 2,030,596 2048 1,996,653 216,706 1.82% 90 - 45,891 296,980 1,962,271 2049 1,929,470 217,143 0.20% 90 - 51,208 32,888 2,164,933 2050 2,128,744 219,433 1.05% 91 - 52,840 171,723 2,229,294

Closing Balance

Average Monthly


Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Full Funding - Residential


Annual Contribution


Annual Contribution

Special Assessments


Estimated Future

Expenditures

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Year End:



Closing Balance








Nominal Cash Flow Table and Graph—Full Funding Model—Commercial

R-4270

2020 81,084 4,480 0.02% 34 - - - 85,564 2021 86,375 8,000 78.57% 61 - 1,108 - 45,484 2022 45,484 8,660 8.25% 66 - 713 - 54,856 2023 54,856 9,320 7.62% 71 - 1,015 - 65,191 2024 65,191 9,848 5.67% 75 - 839 25,875 50,003 2025 50,003 10,119 2.75% 77 - 1,208 - 61,330 2026 61,330 10,397 2.75% 79 - 1,512 5,318 67,922 2027 67,922 10,683 2.75% 81 - 1,582 9,316 70,871 2028 70,871 10,977 2.75% 83 - 1,695 8,076 75,468 2029 75,468 11,279 2.75% 85 - - 85,555 1,192 2030 1,192 11,589 2.75% 88 - - 10,956 1,824 2031 1,824 11,908 2.75% 90 - 11 1,401 12,342 2032 12,342 12,235 2.75% 93 - 333 - 24,910 2033 24,910 12,571 2.75% 95 - 673 - 38,154 2034 38,154 12,917 2.75% 98 - 907 4,545 47,434 2035 47,434 13,272 2.75% 101 - 1,281 - 61,987 2036 61,987 13,637 2.75% 103 - 1,547 4,673 72,499 2037 72,499 14,012 2.75% 106 - 1,957 - 88,469 2038 88,469 14,398 2.75% 109 - 2,389 - 105,255 2039 105,255 14,794 2.75% 112 - 2,842 - 122,891 2040 122,891 15,200 2.75% 115 - 3,318 - 141,409 2041 141,409 10,699 -29.61% 81 - 3,818 - 155,926 2042 155,926 10,692 -0.06% 81 - 4,210 - 170,828 2043 170,828 10,874 1.70% 82 - 4,612 - 186,315 2044 186,315 11,856 9.03% 90 - 3,419 59,692 141,898 2045 141,898 12,058 1.70% 91 - 3,831 - 157,787 2046 157,787 12,263 1.70% 93 - 4,260 - 174,310 2047 174,310 12,604 2.78% 95 - 4,437 9,969 181,383 2048 181,383 12,955 2.79% 98 - 4,622 10,189 188,771 2049 188,771 13,415 3.55% 102 - 4,615 17,850 188,951 2050 188,951 13,908 3.67% 105 - 4,567 19,788 187,638

Average Monthly


Nominal Cash Flow Table—Full Funding - Commercial

Annual Contribution

Special Assessments

Estimated Future

Expenditures

Closing Balance


Annual Contribution



0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Year End:



Closing Balance








Real Dollar Cash Flow Table and Graph—Full Funding Model—Commercial

R-4270

2020 81,084 4,480 0.02% 34 - 811 - 86,375 2021 84,931 7,866 75.59% 60 - 1,090 - 44,723 2022 43,976 8,373 6.44% 63 - 689 - 53,038 2023 52,151 8,860 5.82% 67 - 965 - 61,976 2024 60,940 9,206 3.90% 70 - 784 24,188 46,742 2025 45,961 9,301 1.03% 70 - 1,111 - 56,373 2026 55,430 9,397 1.03% 71 - 1,367 4,806 61,388 2027 60,362 9,494 1.03% 72 - 1,406 8,279 62,983 2028 61,930 9,592 1.03% 73 - 1,482 7,057 65,947 2029 64,844 9,691 1.03% 73 - - 73,512 1,024 2030 1,007 9,791 1.03% 74 - - 9,257 1,541 2031 1,515 9,892 1.03% 75 - 9 1,164 10,253 2032 10,082 9,994 1.03% 76 - 272 - 20,348 2033 20,008 10,097 1.03% 76 - 540 - 30,646 2034 30,134 10,202 1.03% 77 - 717 3,590 37,462 2035 36,836 10,307 1.03% 78 - 995 - 48,138 2036 47,333 10,413 1.03% 79 - 1,182 3,568 55,360 2037 54,435 10,521 1.03% 80 - 1,470 - 66,425 2038 65,315 10,630 1.03% 81 - 1,764 - 77,708 2039 76,409 10,739 1.03% 81 - 2,063 - 89,212 2040 87,720 10,850 1.03% 82 - 2,368 - 100,939 2041 99,252 7,509 -30.79% 57 - 2,680 - 109,441 2042 107,611 7,379 -1.73% 56 - 2,906 - 117,896 2043 115,925 7,379 0.00% 56 - 3,130 - 126,434 2044 124,321 7,911 7.21% 60 - 2,281 39,830 94,683 2045 93,100 7,911 0.00% 60 - 2,514 - 103,525 2046 101,795 7,911 0.00% 60 - 2,748 - 112,455 2047 110,575 7,996 1.07% 61 - 2,815 6,324 115,062 2048 113,138 8,081 1.07% 61 - 2,883 6,356 117,747 2049 115,778 8,228 1.82% 62 - 2,830 10,948 115,889 2050 113,952 8,388 1.94% 64 - 2,754 11,934 113,160

Real Dollar Cash Flow Table (Adjusted for CPI Inflation)—Full Funding - Commercial


Annual Contribution


Annual Contribution

Special Assessments


Estimated Future

Expenditures

Closing Balance

Average Monthly


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Year End:



Closing Balance







NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix K—CUSPAP

Appendix K—Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP)




CUSPAP comprises six standards, each containing rules, comments, practice notes, and definitions. These Standards include an Ethics Standard, a Real Property Appraisal Standard, a Review Standard, a Consulting Standard, a Reserve Planning Standard, and a Machinery and Equipment Appraisal Standard. A Reserve Fund Study falls under the Reserve Planning Standard of the Appraisal Institute of Canada (AIC) CUSPAP rules.

More specifically, CUSPAP Section 12 - Reserve Fund Planning Rules deals with the procedures for the development and communication of a Reserve Fund Study and incorporates the minimum content necessary to produce a credible result.

In the Completion of the Reserve Fund Study the consultant must:

Identify the client and other intended users by name BCS 460—“Classico”, c/o Korecki Real Estate Services Inc.

Identify the intended use of the opinions and conclusions To enable the property owners to implement a long range reserve fund strategy.

Identify the purpose of the study To provide the property owners with a 30 year funding plan for the reserve fund.

Identify the characteristics of the property Refer to Section 2.

Identify the effective date of the study April 24, 2019

Identify the date of completion of the study October 16, 2019

Identify the legislation that applies to the assignment Section 6.2 BC Strata Property Regulation – Depreciation Report as amended to date.

Identify the scope of work and the extent of the data collection process The scope of work included an inspection of the subject building, particularly the common area components, which have been considered reserve components within this report. Research as to the actual/effective age of each component was undertaken, as well as an estimate as to the remaining life expectancy and quantity of each. Where available, relevant plans such as architectural, structural and/or mechanical, plumbing, electrical drawings have been reviewed, as well as the subject strata plan (if applicable). Current cost estimates are based on either costs obtained from costing manuals such as RS Means or Marshall & Swift, or discussions with industry professionals. Interest rates and inflation rates have been estimated using the methodology described in the related sections of this report. Further information on the scope of work is described through the report.




Identify all assumptions and limiting conditions See Appendix B.

Identify any hypothetical conditions (including proposed improvements) No hypothetical conditions are invoked, unless otherwise indicated.

Describe and analyze all relevant data to complete the reserve fund study This rule has been adhered to throughout the pertinent sections of the report.

Define and delineate the pertinent components the reserve fund study is to cover This rule has been adhered to throughout the pertinent sections of the report.

Provide a Benchmark Analysis See Section 5.1 of the report.

Provide a Cash Flow projection See Section 5.3 of the report.

Provide an opinion on the adequacy of the reserve fund contributions See Sections 5.4 of the report.

Provide a reserve fund model See Section 5.2 of the report.

Detail the reasoning that supports the analysis, opinions, and conclusions This rule has been adhered to throughout the pertinent sections of the report.

Report the final conclusions/recommendations Please refer to section 6 of the report.

Include a signed certification See signed certification, page 6.

Additionally, CUSPAP Section 13 - Reserve Fund Standard - Comments provides additional details in order to clarify, interpret, explain, and elaborate on the rules, and form an integral part of the Standards. Their action is compulsory.

The Practice Notes offer advice, examples and resolution; their application is not mandatory. The particular Practice Notes Section of CUSPAP related to Reserve Fund Studies states:

16.46.1 Since Reserve Fund Studies are completed to provide financial planning advice, the reserve fund planning service should:

16.46.1.i consider the stated policies defining those components to be covered by the study

16.46.1.ii and incorporate a comprehensive benchmark analysis including life cycle




analysis, current and future replacement costs and future reserve fund accumulations.

16.46.2 The Study should provide comments on any apparent deficiency in the reserve fund

account or in future reserve fund accumulation, along with a cash flow model covering an appropriate time frame.

16.49.2 Due to the number of technical issues, the reserve fund planner should consider

including a section of defined terms, as they are applied in the study. A definitions section in the report would aid the client and the intended user in understanding how the conclusions in the report were reached.

16.49.3 For example, many clients relying on the report may not be familiar with terms

common to Reserve Fund Studies such as: 16.49.3.i Future Reserve Requirement, 16.49.3.ii Future Reserve Fund Accumulation, 16.49.3.iii Remaining Life. 16.49.4 The terminology may also vary between provinces or be determined by legislation.

The definition of these terms could vary somewhat between one reserve planner and another.

16.50.1 Various models, which can affect the basis of calculation in the benchmark analysis

as well as the cash flow projections are available for the reserve fund planner’s consideration. Reasoning should be included in the report to understand the basis of calculations and how they relate to the recommendations.

Additionally, a signed certification must be included, and this certification must clearly specify which individual(s) did or did not make a personal inspection of the subject property. Additionally, the report must be signed or co-signed by an accredited member of the AIC holding the designation AACI, P. App., and/or a designated member of the AIC holding the designation CRA (see CUSPAP 5.5.3.i).



NLD CONSULTING of 238 RESERVE FUND ADVISORS Appendix L—Glossary

Appendix L—Glossary




Adequate Funding Model One of the three (or more) proprietary Funding Models included in a depreciation report conducted by NLD Consulting – Reserve Fund Advisors. Typically the recommended model, this is the funding strategy that endeavors to balance the needs of the strata by giving adequate notice of contribution increases, limiting the risk of special assessments, and addressing any reserve deficiency in an equitable manner.

Annual Contribution The amount of money that is contributed to the reserve fund in each fiscal year, excluding interest earned, transfers, and special assessments.

Benchmark Analysis A “moment-in-time” funding analysis based on a hypothetical fully funded reserve fund. It shows how much money should be in the reserve fund at that point in time, as well as how much should be contributed that year if the reserve fund were fully funded. The fully funded contributions under this analysis represent equitable annual contributions in nominal dollars.

Budget Percentage Also “Budget Allowance”, “Budget Amount”, or simply “Budget”. This is an arbitrary percentage applied to the total cost to replace or repair a component. Based on experience and research, NLD Consulting – Reserve Fund Advisors has chosen not to reserve for an entire replacement of some components. On a component to which a budget percentage has been applied, such as Domestic Water Supply, any given strata may find that they have no need for any repairs over the lifespan of their property. Other stratas may find that they need an entire replacement, while the rest may require a partial replacement. The budget percentage chosen reflects a prediction of the future that may in fact be very different than reality.

Certified Reserve Planner (CRP) The professional designation awarded by the Real Estate Institute of Canada (REIC), for the preparation of Reserve Fund Studies, including Depreciation Reports

Closing Balance The reserve fund position at the end of a fiscal year, carried forward to the next year as an Opening Balance.

Component A physical improvement to the development.




Condominium Act The legislation related to Condominium Corporations outside of BC, as amended to date. This act includes the definition of a Reserve Fund Study and related concepts.

Condominium Act Regulation Details the requirements laid out in the Condominium Act. Many sections of the Act must be read in conjunction with the Regulations to gain a full understanding of the legal requirements.

Construction Cost Inflation Inflation measured by changes in construction cost indexes. The inflation rate is localized and pertains to a specific building type.

Contingency Reserve Fund (CRF) Synonymous to Reserve Fund in this report. It is a concept defined by the legislation of the British Columbia Strata Property Act. It represents the financial assets of a strata corporation (or section as defined in the Act), held for the purposes of funding long term repairs and replacements of the common assets of the corporation that occur less often than once per year and are not included in the operating budget.

Contribution See Annual Contribution.

CPI Inflation Inflation measured by increases in the Consumer Price Index, which is a statistical representation of the change in purchasing power between two years.

Current Age Defined in the Manitoba Condominium Act under Definitions 1(1):

“current age”, in relation to an item or type of item, means the actual or estimated number of years between the date of the reserve fund study or latest update and the later of the following dates: (a) the installation date or the date of first use, as determined by the person conducting

the reserve fund study; (b) the date of renewal, refurbishment, or reconditioning by major repair or replacement.

Deficiency The difference between a given year’s Benchmark Closing Balance and its actual Closing Balance.




Deficiency/Contribution Quotient (DCQ) A stable measure of the health of a reserve fund. This formula is defined as the sum of a given year’s Deficiency and its Outstanding Loan Balance, if any (D), divided by the sum of the same year’s contributions and interest earned (C), or D/C.

Depreciation Report A Reserve Fund Study conducted to the BC legislated standards of the Strata Property Act. See Reserve Fund Study.

Effective Age A subjective, observed age for each Reserve Component. It may differ from the component’s actual or current age when it is performing better or worse than expected. Effective Age is used in our funding model recommendations.

End of Life The point in time where the Reserve Component(s) have collectively reached the point of physical failure, and/or the current improvements do not provide for maximum utility of the subject site as improved. This is the point where no further reserve fund savings are required, as no further reserve component replacements are anticipated to occur. At this point in time the building’s reserve fund Deficiency is necessarily zero.

Expenditure See Reserve Expenditure.

Full Funding Model A proprietary Funding Model used by NLD Consulting which focusses on minimizing the risk of special assessments, as well as being Fully Funded prior to the end of the 30-year projection period.

Fully Funded The reserve fund is Fully Funded when its Closing Balance equals the Benchmark Closing Balance, resulting in a Deficiency equal to zero. At this point the reserve fund contains an equitable amount of money saved towards each component, given their expected costs and estimated replacement years.

Functional Obsolescence A concept where the utility of a component is compromised due to outdated design and/or features, which cannot effectively be remedied.




Funding Model A 30-year forecast of money moving in and out of the reserve fund. This will include estimated costs and replacement dates for each component, as well as a recommended schedule of reserve fund Contributions to fund those expenditures.

Ideal Annual Contribution An annual contribution to the reserve fund in an amount prescribed by the benchmark

analysis each year. It is an equitable amount to save if the reserve fund has no deficiency.

Ideal Balance The pro-rated cost liability for the repair and replacement of the items or types of items in the condominium corporation’s component inventory in any year covered by the reserve fund study. We calculate this using the Benchmark Analysis. Ideal Balance is a concept defined by the Manitoba Condominium Act.

Ideal Closing Balance An equitable reserve fund balance prescribed by the Benchmark Analysis, such that there is enough money in the reserve fund given each component’s expected cost and date of replacement.

Interest Money earned on all reserve fund investments.

Lifespan The average life expectancy of a Reserve Component.

Minimum Balance A proprietary concept used by NLD Consulting. It is a funding model’s lowest allowable closing balance for each fiscal year, and it increases with CPI inflation. The Minimum Balance can never be a negative number. This concept is a form of Threshold Funding.

Minimum Funding Model A proprietary Funding Model used by NLD Consulting which recommends minimal reserve fund contributions.

Nominal Dollars An actual dollar amount that has not been adjusted for inflation. This is the actual amount that is spent, saved, or earned. All dollar amounts are assumed to be in nominal terms unless otherwise specified. This is in contrast to Real Dollars, which are adjusted for inflation.




Non-Reserve Component A component found on shared property that has been specifically excluded from the reserve fund, as per the bylaws or the Act, or in consultation with the strata corporation.

Opening Balance The reserve fund position at the beginning of each fiscal year, carried forward from the prior year end as a Closing Balance.

Operating Fund The fund a strata corporation contributes to, and draws expenditures from, related to the operating expenses of the corporation. This fund does not include contributions and expenditures related to reserve expenditures, which are funded separately—see Reserve Fund.

Qualified Person The definition for Qualified Person differs from province to province. For example:

BC—Described under Section 94(1) of the Strata Property Act as: “any person who has the knowledge and expertise to understand the individual components, scope and complexity of the strata corporation’s common property, common assets and those parts of a strata lot or limited common property, or both, that the strata corporation is responsible to maintain or repair under the Act, the strata corporation's bylaws or an agreement with an owner and to prepare a depreciation report that complies with subsections (1) to (4)”

MB—Described under Part 25 (1) of the Condominium Act as per below:

“Who may conduct a reserve fund study

25 (1) Subject to subsections (2) and (3), only the following persons may conduct a reserve fund study:

(a) a person who holds a valid registration under The Architects Act to practise as an architect in Manitoba;

(b) a person who holds a valid registration under The Engineering and Geoscientific Professions Act to practise as a professional engineer in Manitoba;

(c) a person who holds a valid certificate as a certified applied science technologist or certified engineering technologist under The Certified Applied Science Technologists Act;

(d) a member of the Appraisal Institute of Canada who holds a valid designation as an Accredited Appraiser Canadian Institute;

(e) a member of the Real Estate Institute of Canada who holds a valid designation as a Certified Reserve Planner.”




Real Dollars A dollar amount which is has been adjusted for inflation. It describes the actual buying power as it changes over time, relative to a reference/base year (typically the year in which the study was conducted). This is in contrast to a nominal dollar, which is expressed without regard for the effects of inflation.

Remaining Life The difference between Effective Age and Lifespan.

Reserve Component A physical element of a strata corporation which is to be included in the inventory of reserve components for analysis in a British Columbia legislated Depreciation Report.

Reserve Expenditure An amount removed from the reserve fund to pay for repairs or replacements to Reserve Components.

Reserve Fund This is a concept defined by legislation in some provinces. A Reserve Fund represents the financial assets of a strata corporation, held for the purposes of funding long term repairs and replacements of the common assets of the corporation that occur less often than once per year and are not included in the operating budget.

Reserve Fund Deficiency The difference between the Closing Balance and the Ideal Closing Balance as calculated by the Benchmark Analysis. This is an amount that will necessarily be paid in full at the end of the property’s economic life.

Reserve Fund Study A budget planning tool comprising a physical and financial analysis, which identifies long-term funding plans for repair and replacement of major common elements of a property. Ideally, this tool will aid the owners in a long-term funding plan.

Special Assessment/Levy A unique, non-regular contribution from owners towards their Reserve Fund. This type of contribution is most often employed when the reserve fund balance is not sufficient to undertake the project as required. Although Special Assessments may be employed as part of a long term funding strategy or due to an unexpected expenditure, they can also be indicative of a lack of long term strategy.




Strata Property Act

The legislation related to strata property in British Columbia, and as amended to date. This act includes the definition of a Depreciation Report and related concepts.

Strata Property Regulation Details the requirements laid out in the Strata Property Act. Many sections of the Act must be read in conjunction with the Regulations in order to have a full understanding of the legal requirements.

Threshold Funding A method of determining future Contributions. It ignores the Benchmark Analysis and focuses solely on keeping the reserve fund balance above a threshold amount. We often incorporate the element of a minimum allowable balance in our forecasts, but relying solely on Threshold Funding leads to inequitable contributions.



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