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CONTINGENCY RESERVE FUND

STUDY



VR 1047 - CHELSEA TERRACE
1040 PACIFIC STREET, VANCOUVER, BRITISH COLUMBIA









Presented to:
Strata Corporation VR 1047

Prepared by:
McCuaig & Associates Engineering Ltd.
File Number: 20110209
Date: October 27, 2011


TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................................................................................... i
1.0 INTRODUCTION............................................................................................................... 1
2.0 METHODOLOGY.............................................................................................................. 3
2.1 HOW THIS CRF STUDY WAS CONDUCTED...................................................................... 3
2.2 MATERIAL LIFE EXPECTANCIES AND ASSOCIATED PRICING................................ 5
3.0 BUILDING COMPONENTS............................................................................................. 8
3.1 BUILDING ENVELOPE............................................................................................................. 8
3.2 GENERAL SITE ISSUES.......................................................................................................... 13
3.3 STRUCTURAL SYSTEMS....................................................................................................... 14
3.4 MECHANICAL SYSTEMS ...................................................................................................... 17
3.5 SAFETY SYSTEMS................................................................................................................... 19
3.6 ELECTRICAL............................................................................................................................ 20
4.0 FINANCIAL ANALYSIS................................................................................................. 21
4.1 BASE SCENARIO...................................................................................................................... 21
4.2 PROPOSED SCENARIOS 1 THROUGH 4 ............................................................................ 22
4.3 COMMENTS ON THE FOUR SCENARIOS ......................................................................... 25
10.0 FINAL REMARKS......................................................................................................... 27


LIST OF APPENDICES

Appendix A Base Scenario - Maintenance and Renewals Table and Financial Table, Chart and
Graph
Appendix B Proposed Maintenance and Renewals Table and Financial Table for the Four
Proposed Scenarios
Appendix C Scenario 1 - Financial Analysis Table and Graph
Appendix D Scenario 2 - Financial Analysis Table and Graph
Appendix E Scenario 3 - Financial Analysis Table and Graph
Appendix F Scenario 4 - Financial Analysis Table and Graph


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page i 10/27/2011
EXECUTIVE SUMMARY

McCuaig & Associates Engineering Ltd. (MAE) was retained by Strata Corporation VR 1047 to
undertake a review of the major construction components at Chelsea Terrace, with the intent to
provide a Contingency Reserve Fund Study, henceforth referred to as a CRF. The building is
located at 1040 Pacific Street in Vancouver, British Columbia.

A CRF study provides forecasted costs for the maintenance and renewal of all significant
existing building components of the building. In addition to this, the CRF presents a financial
study as to how the Strata will have to budget for these expenditures over the next 25 years.

Maintenance costs are the expected ongoing requirements to keep components operating as
intended. Renewal costs are those costs required when the components must be replaced, even if
adequate regular on-going maintenance has been carried out. Renewal costs are not intended to
provide “upgrades” to any building components unless the present requirements (codes or
technology) dictate that an upgrade is necessary. Otherwise all estimates for renewals assumes
replacing “like for like.”

Recommendations have been developed based on our assumption that the building should
provide approximately 50 more years of service life. The design service life of the building was
not indicated on any of the documentation reviewed by MAE. Industry standards, however,
consider a 50 to 100 year service life to be a reasonable expectation for a building of this type.

Overall, Chelsea Terrace is in good condition for a building of its age. The buildings equipment
and grounds have been maintained at standards that would be considered above average for a
building of this type. This has allowed most components to remain serviceable throughout their
expected life. At this time, however, there are some components that have reached the end of a
reasonable life and require replacement.

Issues that are most significant involve replacement of various membranes at the roofs,
balconies, and decks in the near future. Depending on the scope of work and membrane location,
the expected costs are in the range of $45,000 to $275,000.

Several components will require renewal over the next 25 years. Our opinions of probable cost
projections are shown in Section 3.0 of this report. The opinions of probable cost in this report
should be considered to be Order of Magnitude costs. Where applicable, we have allowed for
taxes and consulting fees.

The final result of this study produced four proposed scenarios that provide financially viable


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
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solutions for the Strata to prepare for future expenditures. Some scenarios will likely be more
agreeable than others regarding collection of funds from the strata members.

Two basic assumptions made for this study include:
• Inflation rate of 2 percent;
• Existing maintenance fees are approximately 30 percent below industry average for
comparable Stratas.

Scenario 1 proposes a modest and constant strata fee increase of 2 percent, which we have
assumed to equal inflation. This model produces numerous special assessments for The Strata
over a 25 year period, which in not desirable and may not be feasible.

Scenario 2 proposes a 5 percent increase in strata fees for 5 years and 2 percent thereafter. This
model slowly addresses the below average strata fees at Chelsea Terrace but does not reach the
30 percent increase until the 6
th
year. In addition to this, there are eight special assessments in
this model totaling 2.7 million dollars, which is still undesirable.

Scenario 3 proposes a 20 percent initial increase, 10 percent for the following 3 years, and 2.5
percent thereafter. This scenario fully addresses the below average strata fees in the second
year and also significantly reduces the number of special assessments and there total value.
There are four proposed special assessments in this model with a total value of 1.0 million
dollars. This proposal is balanced between strata fee increases and special assessment and is
our recommended strategy for the Strata.

Scenario 4 proposes an initial 25 percent increase to the fees with 10 percent annual increases for
the following 6 years. No increases are forecasted for the remaining years. This model
addresses the below average strata fees within 2 years and also eliminates the need for special
assessments throughout the 25-year study period at the cost of high strata fees. Although this
option is financially feasible it may be undesirable to focus all fundraising on increased monthly
fees.



Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 1 10/27/2011
1.0 INTRODUCTION

MAE was retained by Strata Corporation VR 1047 to conduct a Contingency Reserve Fund
Study at Chelsea Terrace, located at 1040 Pacific Street in Vancouver, BC.

Chelsea Terrace was constructed in a high-density residential neighborhood on a sloping lot.
The development is surrounded by mid and high-rise residential buildings and is approximately
one block north of the ocean. The building consists of 112 strata units, one amenities room, a
common laundry room, and an underground parking facility.

The building is nine stories high with parking on the first floor and a portion of the second floor.
Residential units start on the second floor and extend to the top floor. All units have access to
either private patios or balconies off their suites. Each unit is heated with individual electric
baseboard heating systems.

The building structure is constructed from cast-in-place concrete and steel supports. Concrete
was used to build the structural support walls and the suspended slabs in the parking areas. The
above grade floors are supported by steel joists with a concrete topping. Concrete forms a large
portion of the exterior cladding of the building. At some locations, however, the exterior walls
are comprised of infill sections made from light-gauge steel stud framing with exterior sheathing
and stucco as the exterior cladding.

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

The majority of the roofs at Chelsea Terrace are low-slope roofs, commonly referred to as “flat
roofs.” Roofing material is typically a 2-ply modified bituminous sheet membrane with internal
drains. Pitched metal roofing with external gutters and rainwater leaders exists at some location
on the building.

For the purpose of this study, we have assumed that the remaining design service life of the
building is approximately 50 more years, which we consider to be reasonable for a residential
building of this type. The building’s design service life has not been verified on any of the
documentation that was made available to MAE.

To prepare a CRF Study the current condition of major components must be assessed. A
representative sample of typical conditions is required, however, a review of this type does


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
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involve a comprehensive review of all surface or components. Areas reviewed at Chelsea
Terrace included:

• Building Envelope (roofs, exterior wall cladding, sealant, windows and doors, balconies,
roof decks, plaza decks, exterior paint, and parking garage);
• General Site Issues (landscaping, exterior concrete ramps & stairs, and carpets/finishes in
common areas);
• Structural System;
• Mechanical System (plumbing, drainage, and HVAC systems);
• Electrical System (fuse/breaker panels, switch/subpanels, and security lighting);
• Fire Safety System (fire notification systems, sprinkler system, and fire separation); and
• Elevator System.




Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 3 10/27/2011
2.0 METHODOLOGY

2.1 HOW THIS CRF STUDY WAS CONDUCTED
2.1.1. The Construction Drawings and relevant documents obtained from the City of Vancouver
were reviewed in order to become familiar with the project. The drawings that were
reviewed and are relevant to this report are described below:

Table 1 – List of Construction Drawings
Consultant Document
Drawing
Drawings
Provided
Latest Issue
Date
Purpose of Issue
Hale
Architects
Architectural A1 to A24 December,
1979
Proposal to
Municipality
Read Jones
Christoffersen
Ltd.
Structural S8 and S9
(other structural
drawings were
not available)
November,
1979
Issued for Building
Permit
N/A Mechanical M1 to M10 N/A Issued for Building
Permit
N/A Plumbing P1 to P10 N/A Issued for Building
Permit
R. J. Wong &
Associates
Ltd.
Electrical E1 and E2 N/A Issued for Building
Permit
N/A Sprinkler SP1 to SP3 N/A Issued for Building
Permit

It should be noted that all drawings were received in a compressed (smaller size) format
and, due to their age, were difficult to read. The structural drawings were incomplete and
difficult to read, thus only minimal information pertaining to the building’s structural
systems was available. The architectural and plumbing drawings provided enough
information to become familiar with the building’s general layout. The Construction
Drawings are also referenced to provide orientation for the project and to develop
preliminary budgets for repairs or remedial work.

Other documents that have been provided for our review also include:

• A copy of Domestic Water Pipe Replacement invoice dated June 20, 2003 by
Cambridge Plumbing Systems Ltd.
• A copy of Exterior Window Wash invoice dated Nov 2, 2010 by Ace Window
Cleaners Ltd.


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
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• A copy of Common Area Carpet Cleaning Service invoice dated June 3, 2011 by
Carpetex.
• A copy of Annual Fire & Safety Inspection Deficiencies Quote dated August 17,
2011 by Voltech Fire Protection.
• A copy of Roof Replacement Contract dated July 31, 1997 by IGB Contracting Ltd.

• The Strata Corporation’s operating budget and financial statement provided by the
Property Management Company.

2.1.2. A Visual non-invasive review of a representative sample of building envelope
components was conducted. This includes reviews of various roofs, exterior face of
walls, balconies, plaza decks, and window assemblies.

2.1.3. A Visual non-invasive review of exposed structural components was completed. The
purpose of this review was to evaluate the condition of the exposed structural
components that must provide acceptable service levels for the remaining life of the
building.

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

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

2.1.6. An interview with the building manager, Nick Dotsev, to identify and discuss any areas
of concern.

2.1.7. A CRF Study was completed with the following:

• A description of the building systems along with their history and existing conditions
• Recommendations for all anticipated expenditures for the Strata to maintain the
building for the next 25 years ($5,000 and above)
• Itemized forecasted annual budgets for the next 25 years including ongoing
maintenance works and capital costs for replacement items





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1040 Pacific Street, Vancouver, British Columbia
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2.2 MATERIAL LIFE EXPECTANCIES AND ASSOCIATED PRICING
When developing a report of this type it is necessary to define the service life of the various
building components. The estimated service life of a component or material is determined
based on several variables including: quality of materials, quality of installation, historical
performance, exposure conditions, manufacturer’s recommendations, and maintenance, servicing
or upkeep of the item.

It should be understood the design service lives discussed within this report are not a finite life.
In some cases the actual service life of a product or component could be shorter or longer than
the expected service life. Considering the host of variable that influence service life, it may
better be described as a service life range.

Table 2 shows examples of building components with their Expected Service Life, a Range of
Expected Service Life and Factors Affecting Service Life.

Table 2 – Expected Service Lives of Various Building Components
Item
Expected
Service Life
Range of
Expected
Service Life Factors Affecting Service Life
Roof membranes 20 years 17-25 years • Type and quality of membrane
• Quality of installation
• Slope and drainage of the roof
• Exposure to elements (wind, precipitation,
pollution, UV, etc.)
• Regular maintenance
Plaza deck
membranes
20 years 15-25 years • Type and quality of membrane
• Quality of installation
• Type of overburden placed over of the
membrane (soil with shallow rooted plants,
soil with deep rooted plants, concrete topping,
concrete pavers on drainage medium, etc.)
• Slope and drainage of the plaza surface
• Exposure to elements (wind, precipitation,
pollution, UV, etc.)
• Regular maintenance including the ability to
clean out the drains
Balcony
waterproofing
20 years 12-25 years • Type and quality of membrane
• Quality of installation
• Exposed vs. protected membranes i.e.
concrete topping or concrete pavers on
drainage medium
• Slope and drainage of balcony
• Exposure to elements (wind, precipitation,
pollution, UV, etc.)
• Regular maintenance


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
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Item
Expected
Service Life
Range of
Expected
Service Life Factors Affecting Service Life
Metal roofing 40 years 30-50 years • Type and gauge of metal roofing
• Quality of protection coating
• Quality of installation (i.e. Exposed vs. hidden
fastener systems, etc.)
• Exposure to elements (winds, precipitation,
pollution, UV, etc.)
• Regular maintenance
Exterior wall
sealant (caulking)
10 years 8-12 years • Type and quality of sealant
• Quality of installation
• Exposure to elements (wind, precipitation,
pollution, UV, etc.)
• Regular maintenance
Windows and patio
doors
25 years 15-30 years • Quality of windows and glazing
• Quality of installation
• Material of the window frame (metal, wood,
vinyl, etc.)
• Type of glazing (single glazed, double glazed,
Low E coating, etc.)
• Type of operators (casement, awing, slider,
etc.)
• Exposure to elements (wind, precipitation,
pollution, UV, etc.)
• Regular maintenance


Opinions of probable costs allocated to maintenance or renewal items should not be considered
set costs. These values are established based on current market conditions and product
availability. The cost of construction materials and labour are influenced by many variables.
Where applicable, our opinions of probable costs allow for consulting fees, taxes, and inflation.

Our opinions of probable costs are based on normal engineering practice using “square foot” or
unit cost and/or our own experience with similar projects. The costs provided constitute an
“order of magnitude” value to assist the Strata with planning for predicted future expenses.

Please also note that it is difficult to provide an accurate opinion of cost estimate without some
preliminary design and a clearly defined scope of work. The actual cost of the work cannot be
known until an accurate scope of work is prepared, material quantities have been reliably
estimated, project drawings and specifications have been produced, contractors have bid on the
project, and the extent of any hidden damage is known.



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1040 Pacific Street, Vancouver, British Columbia
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Given the volatility of construction prices, MAE assumes no responsibility for the future
accuracy of our projected estimated costs. Moreover, our opinion of remaining service life is
not guarantee that the components will not fail earlier than projected.

This study should be viewed as a dynamic process that necessitates regular review and updating
for both projected remaining service life and related costs. Items that are to be undertaken in
several years should be reviewed closer to the date of the work.

Should our services be requires, MAE is available to assist the Strata in obtaining quotations for
future maintenance or renewals work.






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1040 Pacific Street, Vancouver, British Columbia
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3.0 BUILDING COMPONENTS

3.1 BUILDING ENVELOPE
Descriptions of the various building envelope assemblies that are the subject of this report are
provided in this section. The descriptions provided in this report are based on the Construction
Drawings, our experience with similar buildings, and our visual reviews. There has been no
attempt to verify the presence of all the components described herein. For a detailed description
of building envelope components and their performance, refer to Building Envelope Condition
Assessment (BECA) report dated September 30, 2011 prepared by MAE.

Several components are nearing the end of their reasonably expected lifespan and such will need
replacement in the near future.

Envelope Items included in this section are as following:
• Roofs;
• Exterior Wall Cladding;
• Sealants;
• Windows and Doors;
• Balconies, Roof Decks, and Plaza Decks;
• Parking Garage.

3.1.1 Roofs
There are two types of roofs on the site: low-slope roofs protected with 2-ply SBS membranes
and three pitched metal roofs on the east and northeast sections of the building.

A good quality SBS roof membrane that has been properly installed can be expected to provide
approximately 20 years of reliable service. Metal roofing, with regular maintenance, can easily
last for 50 years depending on the type, quality of workmanship and exposure.

The main roofs are approximately 14 years old and they are generally in good condition for their
age with no apparent leaks reported. Refer to Photo 1. Regular maintenance and cleaning will
ensure they reach their expected service life. We estimate the main roofs to be replaced within
next 5 years and a budget of $275,000 is reasonable.

The lower tier roofs, including the smaller roofs projecting from the building, appear to be in
poorer condition and may be reaching the end of their service lives. Roof leaks were reported


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
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over the spa room on the northeast corner of the building. Refer to Photo 2. These roofs should
be replaced as soon as possible with new rainwater drain system where required, and the
expected cost is approximately $45,000.


Photo 1 – Main roof above ninth level. Photo 2 – Lower tier roofs over the spa room
(concrete topping) and racket ball court.

The existing metal roofs appear to be in fair condition with no reported leaks. MAE is aware that
one of the pitched roofs has been replaced in the past two years. A visual review for any
damages to the panels, openings at standing seams, rust on paint finish and debris in perimeter
gutters on a regular basis will ensure the longevity of the metal roofing system.

It is our recommendation that The Strata should adopt a comprehensive roof maintenance
program for all roofing systems at Chelsea Terrace. A qualified roofing tradesman should review
the roofs annually and any required maintenance should be performed during the review. The
expected cost to implement this recommendation is $2,000 per year.

3.1.2 Exterior Wall Cladding
There are two types of above grade wall types at Chelsea Terrace: stucco on steel stud framing
and mass concrete walls. The stucco walls assemblies can be described as face-sealed
assemblies. Historically, face sealed wall assemblies have not performed well in our climate. On
the other hand, mass concrete walls are generally considered to be robust, especially if they are
properly coated.

The existing stucco at Chelsea Terrace is generally in good condition with minimal visual cracks.
The exterior concrete walls also appear to be in relatively good condition. Staining is present in
some areas and should be cleaned with a low-pressure wash using mild detergent and a soft
bristled brush. The Strata is recommended to set aside a budget of $5,000 for annual cleaning of


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 10 10/27/2011
the overall building including windows, doors, exterior cladding, guardrails, decks, and
balconies.

It is our knowledge that exterior paint had been applied to the exterior walls approximately five
years ago. Exterior paint and water repellent coatings help to protect the substrate surfaces from
the exterior elements and premature deterioration while providing an aesthetic appearance.
Properly applied exterior paint and water repellent coatings should last ten to fifteen years
depending on various factors such as the condition of substrate, type of paint, thickness applied
and exposure. The Strata should allow a budget of $120,000 within next five years to repaint and
recoat the exterior cladding and expect to re-apply every ten to fifteen years.

3.1.3 Sealants
An integral design element in a face sealed cladding system is the sealed joints at the material
interfaces. Sealing of the interfaces is a primary defense against thermal movements and
moisture ingress. A standard sealant application should be expected to last approximately seven
to ten years depending on the quality, application, exposure and joint movement.

The existing sealant at Chelsea Terrace has reached the end of its service life. Sealant loses its
flexibility and adhesion to the substrate as it ages. The exterior sealant should be removed and
replaced at all exterior locations including all window/door interfaces, cladding interfaces, and
flashing details within the next two years. The budget required for this is $50,000. The Strata
should expect to replace sealant every ten years.

3.1.4 Windows and Doors
The original windows and patio doors installed at Chelsea Terrace are metal frame, non-
thermally broken, double-glazed. The operable windows consist of slider and awning types and
the patio doors are sliding doors.

The windows at Chelsea Terrace appear to have reached the end of their service life. The thermal
performance of these windows is most likely inadequate. The failures at mitre joints or seals are
likely to develop in the windows, and will consequently allow incidental water penetration.
Failed sealed glazing units and condensation and mildew growth on window frames were noted
at the time of our review. The Strata should allot $4,000 for annual cleaning of the windows and
any necessary replacement or repair costs.

Upgrading to new energy efficient windows with proper head and sill flashings would eliminate
potential leak issues, condensation, and provide energy savings and resident comfort. If The
Strata wishes to replace the windows, a budget of approximately $400,000 should be assigned. It


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
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is our recommendation to investigate the skylights on the south elevation at the time of window
upgrade.

3.1.5 Balconies, Roof Decks, and Plaza Decks
a) Balconies
The balcony membranes at Chelsea Terrace have reached the end of their service life, assuming
an age of 30 years. The upper balconies, exposed to direct precipitation and sunlight, are
considered to be high-risk and therefore these membranes should be replaced as soon as possible.
Refer to Photo 3. The existing membranes at upper balconies and balconies at Suites 608 and
813 should be removed and replaced with a new SBS system including concrete pavers overtop.
The exterior wall of balcony at Suite 813 also requires structural repairs due to the corroded steel
members. An estimated total cost of membrane replacement work is $55,000 and MAE
recommends this work take place as soon as possible.

The existing drainage system for the balconies directs water to balcony below. This system is
considered undesirable due to a high risk of water ingress problems. Refer to Photo 4. MAE
recommends that a new rainwater collection system be installed that does not drain water onto
other balconies. The new rainwater collection system will have to be implemented as soon as
feasible and the expected cost is $40,000.



Photo 3 – High exposure balcony of Suite 813.
Water has been entering the suite from this
balcony area for some time.
Photo 4 – Balcony drainpipe (on right) from
balcony above discharging onto lower balcony.

b) Roof Decks
MAE was not able to review the condition of the roof deck membranes at Chelsea Terrace since
decking covers them. However, there were no signs of recent repair work or reported leaks at the
time of our investigation. The roof decks typically have high exposure with little or no overhang
protection. Therefore, it is recommended that The Strata review the age and condition of the roof


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 12 10/27/2011
deck membranes and, if warranted, replace them while other roof work is being completed. A
budget of $20,000 should be allocated to implement this recommendation.

c) Plaza Decks
The current plaza deck membranes at Chelsea Terrace appear to be nearing the end of their life
spans. Although no leaks were reported, MAE observed deterioration in membranes and signs of
repairs against the exterior walls during the review. Refer to Photos 5 and 6.

The Strata should replace the membranes and expect to allocate $225,000 for this work. In order
to minimize financial overload, The Strata may consider replacing the membranes over three
phases at approximately $75,000 per phase. It is recommended to commence this work within
three years and continue the remaining two phases one year apart.


Photo 5 – Plaza deck membrane is delaminating
from the exterior wall.
Photo 6 – Plaza deck drain exposed beneath paver.
The membrane is deteriorated and is no longer
sealed to the drain housing, creating a point of
water ingress. Also, the drain is clogged with
debris.

3.1.6 Parkade
The parkade appears to be performing satisfactorily in general; however, the evidence of epoxy
injections indicates that water ingress through the parkade structure has been an ongoing issue at
Chelsea Terrace. It is recommended to monitor the existing epoxy injection locations and take a
necessary action when additional leakages are detected.

To help prevent future water ingress through the parkade suspended slabs, The Strata may wish
to consider applying a traffic coating. This coating would be similar to what was installed on the
exterior of the entrance ramp. This application would provide a waterproof coating to help


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
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prevent further concrete decay along with a textured no-slip surface. The application of traffic
coating will require a budget of $75,000.

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

3.2 GENERAL SITE ISSUES
General site issues relate to the following items:
• Landscaping;
• Exterior Concrete Walkway and Stairs;
• Carpets/Finishes in Common Areas.

3.2.1 Landscaping
A visual review of landscaping and drainage issues around the building was conducted. In
general, the shrubs and plants on all elevations have been well maintained. However, the trees on
north elevation have grown outwards and now are touching the cladding of the building. Refer to
Photo 7. Trees that are too close to buildings restrict drying and may result in foundation cracks
and uplifts due to extending tree roots. Leaves of deciduous trees can clog gutters and drains.
We recommend the existing trees close to the north elevation be trimmed. The Strata should
allocate $5,000 annually for landscape related work.




Photo 7 – Trees on north elevation that are in
general proximity to the face of the building.
Photo 8 – Exterior concrete ramp and stairs on
north elevation.



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1040 Pacific Street, Vancouver, British Columbia
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3.2.2 Exterior Concrete Ramps & Stairs
The surfaces of the exterior concrete ramps and stairs at Chelsea Terrace appear to be worn down
due to prolonged exposure to exterior weather conditions and pedestrian traffic. Refer to Photo 8.
The worn down concrete surfaces might pose a slip hazard in the event of precipitation and icy
weather. In addition, as concrete deteriorates over time, cracks develop and create a passageway
for water ingress that would further damage the concrete slabs. The Strata should consider
applying a traffic coating with a textured no-slip surface that is similar to what was installed on
the exterior of the parking garage entrance ramp at a cost of $5,000.

3.2.3 Carpets & Finishes in Common Areas
The carpets and finishes in the common areas of
Chelsea Terrace appear to be in fair condition. It
is our understanding that the carpets have been
replaced within last two to three years and The
Strata has carried out regular maintenance, such
as vacuuming and annual cleaning. The interior
walls were painted approximately two years ago
and are in good shape, except for few dents and
scratches observed on some hallway walls. Refer
to Photo 9. With a regular touch-up of damaged
areas, the paint should last for another ten years.
The Strata should expect to spend $1,200 for
continued annual maintenance and $50,000 on
carpet replacement and re-painting of the walls
in common areas every ten years.

3.3 STRUCTURAL SYSTEMS
The following descriptions of the structural systems that apply to this project were developed
from our limited review of the structural drawings, our site work, and our experience with
similar projects. Note that due to the non-invasive nature of this investigation there was no
attempt to confirm the existence of hidden components.

The majority of the structural components that support this building have been constructed from
concrete. The structural components that were inspected included:
• Outdoor Retaining Walls;
• Parkade Walls;
• Parkade Slabs.

Photo 9 – Scratches and dents on interior wall
finish at main entry corridor.


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1040 Pacific Street, Vancouver, British Columbia
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3.3.1 Outdoor Retaining Walls
The outdoor retaining walls appear to have provided reasonable performance to date. Vertical
cracks were observed at several isolated locations. Dried efflorescence was observed at
approximately half of the vertical cracks. The efflorescence suggests that water has passed
through the wall; however, since there was no evidence of delaminated concrete or corroded
rebar, we are of the opinion that the presence of the efflorescence is an aesthetic issue only.
Furthermore, we are of the opinion that, due to the orientation and thin width of the cracks, they
are not a cause for concern.

We did note one area on the south side of Level 2
where the bottom of the retaining wall was
inconsistent – refer to Photo 10. It appears that this
section of wall was pinned back to the soil
sometime after its original construction. It appears
that the wall has provided acceptable performance
since the remedial work was completed.

The Strata should inspect the retaining walls
annually. Reviews should record excessive
movement, widening or propagation of additional
cracks, and evidence of delaminating concrete or
corroding steel. Should any of the aforementioned
occur, review by a professional should be
arranged.

3.3.2 Parkade Walls
In general, the exterior parkade walls were in adequate condition at the time of our site visit.
Although isolated leaks and numerous vertical hairline cracks were observed, there was no
evidence of concrete de-lamination (except at some mortar patches, which we do not consider to
be cause for concern) or rebar corrosion. If the leaks remain isolated through a few vertical
cracks, structural deterioration would be minimized and the overall structural integrity of the
wall would not be compromised.

Nevertheless, The Strata should inspect existing epoxy injection sites annually. If the leakage
continues to occur through existing sites, The Strata should explore leakage mitigation strategies
with the assistance of a professional consultant.



Photo 10 – Inconsistent bottom of the retaining
wall.


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 16 10/27/2011
3.3.3 Parkade Slabs
There are two types of slab within the parkade at Chelsea Terrace:

• Slabs on grade that provide the traffic surface for Level 1 and the north half of Level 2.
• Suspended slabs that provide the traffic surface for the south half of Level 2 and for the
entire ceiling over Level 2 (the floor of Level 3).

a) Slabs on Grade
Except as noted below, the slabs on grade appear to have provided satisfactory performance to
date and there is no indication that, for the most part, maintenance or remedial work will be
required in the future.

The supporting soil beneath one area on the Level 2 slab appears to have heaved. The heaving
soil has caused the slab to crack – refer to Photo 11. The difference in elevation of each side of
the crack may cause a tripping hazard. If the strata is concerned about this and structural
drawings cannot be obtained, The Strata should consult a professional to investigate the
building’s foundation system.



Photo 11 – A crack in the slab due to the heaving
soil.
Photo 12 – Visible efflorescence, exposed and
corroded rebar at the underside of slab
South of parking stall 23.

b) Suspended Slabs
Corroded rebar and delaminating concrete and efflorescence were observed at the underside of
the Level 3 and Level 2 slabs at numerous isolated locations. Refer to Photo 12. The
observations suggest that the slab deterioration process is underway. Considering that the
majority of exposed and corroded steel appears to be crack control steel, we are of the opinion


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 17 10/27/2011
that, at most locations, the danger of partial structural collapse is minimal, given the observed
conditions at the time of our review.

Note that the exposed rebar at the underside of the access ramps appears to be main steel, thus
the structural degradation at the ramps is more serious than at other slab locations. For this
reason, it is recommended that steps be implemented to either repair the ramps or install
temporary structural support as soon as possible. The structural issue relating to the parkade
ramp is beyond the scope of this report and it will be dealt with independently.

3.4 MECHANICAL SYSTEMS
Some mechanical components have been recently upgraded. The expected life of these, however,
is such that even some of the new components will likely need replacement within 20 years.
These replacement costs have been considered in this study.

Mechanical components included in this review are as following:
• Boiler;
• Heating;
• Domestic Water Pipes;
• Domestic Water Mains;
• Drainage Pipes;
• Elevators;
• DHW tanks;
• Valves/Pumps;
• Jacuzzi Pool.

3.4.1 Boiler
The boiler at Chelsea Terrace is a Teledyne Laars gas fired domestic water heater. It appears to
have been installed at the time of the building’s construction. Annual cost for servicing this
boiler should be in the range of $2,000. The expected life of this type of boiler is approximately
25 years, and it can be replaced (like for like) for approximately $20,000. We have forecasted
replacement at years 2012 and 2`031.

3.4.2 Heating
Heating is achieved via baseboard electric units in each suite. These heaters are relatively robust
and need little to no maintenance. Barring any physical damage to these units, there should be
negligible cost over the next 20 years.


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 18 10/27/2011
3.4.3 Domestic Water Pipes
The domestic water pipes in the building were replaced in 2003. The expected life of these pipes
is in the range of 20 years and as such, they should be replaced, approximately, in the year 2023.
The cost of this replacement would be in the range of $300,000.

3.4.4 Domestic Water Main
The domestic water main supply to the building is via an underground service pipe. This was not
replaced as part of the recent re-piping. Water mains have a reasonably long life, and the water
main at Chelsea Terrace will require replacement within the next 15 to 20 years at a cost of
$40,000.

3.4.5 Drainage Pipes
Given the materials, usage, and pressures involved, drainage pipes (sanitary and rain water) do
not require wholesale replacement as with domestic pipes. Ongoing maintenance, however, is
necessary, and we estimate an annual cost of $2,000 for this.

3.4.6 Elevators
The existing elevators are original equipment. It includes two cabs and uses mechanical relays
for operation. These relays have been maintained but will likely require wholesale replacement
within 20 years. Motors, ropes, and related equipment are also quite robust but will likely require
some form of overhaul within the next 20 years. Expected cost of the major work would be in the
range of $100,000. Annual service costs are in the range of $8,000.

3.4.7 Domestic Hot Water Tanks
The domestic hot water heating systems uses three 120-gallon storage tanks that appear to have
been upgraded at the time of the pipe replacement. These have a limited life, and can be expected
to need replacement within 20 years at a cost of $20,000.

3.4.8 Valves and Pumps
An annual budget of $1,000 should be adequate for on-going repairs and replacement of valves
and pumps.

3.4.9 Jacuzzi Pool
The piping and equipment related to the pool generally need little or no maintenance, and can
last decades. The Jacuzzi pool maintenance includes the pool tiles, and related pumps and filter
equipment. We estimate that $2,000 per year be budgeted to allow for service and ongoing
replacement of equipment or items over time.


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 19 10/27/2011
3.5 SAFETY SYSTEMS
The safety systems in this building generally meet the requirements at the time it was built,
however they are likely below what would be required for a new residential building today.

It is our understanding that there are no outstanding orders from the Fire Marshal’s Office,
although there was a list of fire alarm repairs in the process of being carried out at the time of our
review.

During our review, the condition of the fire hoses in the hose cabinets seemed questionable, and
the ceiling installation around some of the fire gongs may interfere with their proper function.
We recommend that these items be reviewed by a qualified fire safety technician.

The Fire Marshal’s Office has a large degree of discretion as to what they can “order” and it is
difficult to predict what orders may be made in the future. It is reasonable, however, to assume
that the Strata would voluntarily undertake reasonable upgrades to life safety equipment to
mitigate the possibility of a preventable injury or loss of life, especially if so requested by the
Fire Marshall’s Office. Given this, it is our opinion that it is not unreasonable to expect the Strata
to upgrade some systems in the next 20 years (such as in-suite sprinklers), but there is no
requirement for this work at present.

The following areas are to be considered:
• Smoke/Heat detectors;
• Alarm Panel Upgrade;
• Sprinklers;
• Fire Alarm Annual Reviews.

3.5.1 Smoke/ Heat Detectors
The existing smoke and heat detectors seem adequate, although on-going maintenance would be
prudent. The cost of this would be minimal in the range of $500 annually.

3.5.2 Alarm Panel Upgrade
The existing alarm panel is functional at this time but may require upgrade or replacement within
the next 20 years. A more modern panel that would allow for monitoring of any new equipment
installed (as well as the connections required) would be in the range of $50,000.




Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 20 10/27/2011
3.5.3 Sprinklers
As stated above, it is unlikely that sprinklers will be mandated in the near future, but it is
possible that these could either be mandated or installed voluntarily within 20 years. The cost of
this work would be in the range of $300,000.

3.5.4 Fire Alarm Annual Reviews
Annual reviews of fire safety equipment are required by the City of Vancouver. This work will
cost in the range of $7,000 annually.

3.6 ELECTRICAL
Electrical components are in generally good condition and require little or no maintenance or
upgrades. The following areas are of note:
• Switches/ Subpanels;
• Emergency Generator.

3.6.1 Switches/ Subpanels
The age of these is adequate to expect that replacement and repair would likely not be necessary
within the next 20 years.

3.6.2 Emergency Generator
The existing emergency generator provides adequate power for emergency lighting and (MAE
assumes) the fire alarm. Monthly testing and required maintenance of the generator is
recommended, and this requires and annual cost of $7,000.

This unit appears to operate using natural gas supply and no on site fuel storage was noted.
Present codes would require on-site storage to provide for operation if the natural gas supply
were interrupted (such as during an earthquake).

This unit will likely require replacement within 10 years at a cost of $50,000.




Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 21 10/27/2011

4.0 FINANCIAL ANALYSIS

Based on our review of Chelsea Terrace and our experience with similar buildings, we have
prepared a table of fixed annual revenue and expenses along with a financial forecast table of the
annual maintenance and renewals expenditures for the next 25 years. These tables will be
considered our base scenario and can be found in Appendix A.

When completing a reserve fund study the objective is to have the closing balance of this fund
remain positive at the end of each fiscal year. Over and above a positive balance, we consider it
reasonable for a Strata of this size to maintain a balance of $100,000 for any unforeseeable
emergency repairs.

The Property Manager provided MAE with The Strata’s operating budget for 2011 and the
financial statements as of September 30th, 2011. The following information was gathered and
used as the basis of the financial analysis:

Contingency Reserve Fund – General $136,612.90

Contingency Reserve Fund – Elevator $ 57, 218.93

Total Contingency Reserve Fund $195,831.83


Present Annual Contribution to the CRF – General $ 19,943.00

Present Annual Contribution to the CRF – Elevator $ 14,908.88

Total Annual Contributions to the CRF $ 34,851.88

We have included the maintenance and renewal costs for the elevators within this study and have
therefore used the total numbers above for the CRF and contributions to the CRF for the
analysis. The Strata may wish to reconsider the current segregation of the CRF categories as a
result of this study.

4.1 BASE SCENARIO
The base scenario for Chelsea Terrace incorporates the financial information above (Total CRF
amount and Total CRF Contributions) with the base forecasted maintenance and renewals
expenditures. The assumption with the base scenario is that The Strata does not increase their
annual contributions to the CRF, inflation for expenditures is calculated at 2 percent per annum
and no “special assessments” take place during the 25-year period. Special assessments are


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 22 10/27/2011
one-time lump sum contributions to the CRF made by the owners to cover the costs of a
maintenance or renewal expenses.

The result of the above study confirms that there will be insufficient funds in the CRF to be able
to meet the anticipated maintenance and expenditures for the 25-year period. In fact, the CRF
balance falls into the negative amounts by year 2014 and continues to decline, refer to the graph
in Appendix A. In 10 years time the CRF balance is negative 1.8 million dollars and at the end
the 25-year study the balance is negative 6.0 million dollars.

The results of this base model show the inevitable shortcomings of the current CRF
contributions. This base model is taken as a literal translation from the above noted
maintenance and renewal issues discussed in Items 3.0 and should not be considered a proposed
option. This model shows a worst-case scenario for the Strata. The following Scenarios 1, 2,
3 and 4 apply analytical methods on increasing strata revenue along with a more practical
maintenance and renewals schedule, which allow for spreading out the inevitable maintenance
items into more feasible timelines.

4.2 PROPOSED SCENARIOS 1 THROUGH 4
For the proposed scenarios, a more reasonable approach is taken with the renewals schedule.
As the maintenance and renewals schedule is a dynamic document, we have the ability to adjust
such high cost items that all fall within a single scheduled year. This is true for year 5 (2016)
where the base model has approximately 1 million dollars on maintenance and renewals costs
including roof and window replacement. It is unlikely that a strata would perform such items in
the same year and now we can utilize the range of expected service life discussed in Item 2.2
above to make rational adjustments.

Also, from our experience with building rehabilitations, it is not uncommon for some high price
items to be completed in phases rather than in a single year. This strategy usually comes with a
higher overall cost but the owners have the ability of spreading the costs over several years.
We have made this adjust with the scheduled window replacement, domestic pipe replacement,
and the sprinkler replacement. Additionally, we have assumed a 20 percent increase in laundry
fees, parking fees, move in fees, and key fobs in years 2022 and 2032. Refer to Appendix B to
review the revised maintenance and renewals schedule used for scenarios 1 through 4.

The four scenarios presented below have two ways of generating addition funds to ensure a
positive balance in the CRF: increased monthly strata fees and special assessment fees. It is
apparent that the strata fees collected at Chelsea Terrace will not be sufficient to cover the
upcoming maintenance and renewals costs will be increased in all four scenarios. To
supplement the strata fee collection, special assessments are strategically arranged throughout the
25-year period to cover the shorts falls in the CRF balance. Scenario 1 has the lowest strata fee


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 23 10/27/2011
increase but has the highest number and value of special assessments. Scenarios 2 and 3
increase the strata fee contribution with a reduction in special assessments. Scenario 4
increases the strata fee to a level where no special assessments are required over the 25-year
term.

3.2.1 Scenario 1 – 2 percent Annual Increase in Strata Fees for the 25-Year Term
Scenario 1 has the smallest increase to the strata fees collected at Chelsea Terrace. We have
chosen a 2 percent fee increase to account for inflation, which is assumed to be 2 percent for the
duration of the study. The result this model creates is the need for multiple special assessments
throughout the 25-year period. Refer to Appendix C for the financial data in chart and
graphical form. A sample forecasted single unit strata fee is shown below using $175/month as
an assumed starting point.
Year Strata Fee
0 $175
1 $179
2 $182
3 $186
4 $189
5 $193
10 $213

By the 3rd year of the study the first special assessment is required. The value of this
assessment is $300,000. The second assessment comes in year 5 and is for $400,000. In total,
ten assessments are required over the study period ranging from $300,000 to $600,000. In this
case, annual revenue from the Strata is approximately 10.1 million dollars while the ten special
assessments total approximately 4 million for the 25-year term.

4.2.2 Scenario 2 – 5 percent Annual Increase for the First 5 Years, 2 percent Thereafter
Scenario 2 to increase the strata linearly at 5 percent for the first five years and then reduces the
increase to 2 percent for the remainder of the study. This scenario requires fewer and smaller
special assessments than scenario 1. Refer to Appendix D for the financial data in chart and
graphical form. A sample forecasted single unit strata fee is shown below using $175/month as
an assumed starting point.

Year Strata Fee
0 $175
1 $184
2 $193
3 $203
4 $213
5 $223
10 $285


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 24 10/27/2011
By the 3rd year of the study the first special assessment is required. The value of this
assessment is $300,000. The second assessment comes in year 5 and if for $400,000. In total,
eight assessments are required over the study period ranging from $200,000 to $400,000. In this
case, annual revenue from the Strata is approximately 11.4 million dollars while the ten special
assessments total approximately 2.7 million for the 25-year term.

4.2.3 Scenario 3 – 20 percent Initial Fee Increase, 5 percent Increase for 3 years and 2.5
percent Thereafter
Scenario 3 proposes an initial 20 percent increase to the strata fees. This initial increase helps
the strata fees at Chelsea Terrace to be in line with current market values for similar properties.
The following 3 years will have an increase of 5 percent per year with the remainder of the years
having a 2.5 percent annual increase, which is slightly above the assumed inflation rate of 2
percent. A sample forecasted single unit strata fee is shown below using $175/month as an
assumed starting point.

Year Strata Fee
0 $175
1 $210
2 $231
3 $254
4 $280
5 $286
10 $324

This model requires four special assessments during the study period with the first being in year
3 for $300,000. The assessments range from $200,000 to $300,000. MAE believes the
number of assessment and the amount of each assessment to be reasonable given the forecasted
maintenance and renewals to be completed at Chelsea Terrace. Refer to Appendix E for the
financial data in chart and graphical form.

In this case, annual revenue from the Strata is approximately 13.2 million dollars while the four
special assessments total approximately 1.0 million for the 25-year term. The balance between
the strata fee increases and special assessments appears to be reached in this model.

4.2.4 Scenario 4 – 25 percent Initial Fee Increase, 10 percent Increase for 5 years and 0
percent Thereafter
Scenario 4 proposes to increase the strata fees in a manner that no special assessments are
required over the 25-year period. To achieve this, an initial 25 percent increase to the strata
fees is required and the following 5 years will have an increase of 5 percent per year. In this
model, the remaining years have no annual increase (0 percent annual increase), which works in
the model but the reality is the Strata should reevaluate the performance of the fee increase


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 25 10/27/2011
schedule at the 10, 15, and 20 year intervals. A sample forecasted single unit strata fee is shown
below using $175/month as an assumed starting point.

Year Strata Fee
0 $175
1 $219
2 $241
3 $265
4 $291
5 $320
10 $352


As stated above, scenario four has been configured to eliminate the need for any special
assessments, according to the model, for the entire 25-year term. The strategy is to increase the
strata fees substantially for the first 6 years to accommodate all the forecasted maintenance and
renewal expenses. As this is a model, there is no guarantee that a special assessment will not be
required in the study period but one is not expected.

In this case, annual revenue from the Strata is approximately 14.3 million dollars and the special
assessments total is $0 for the 25-year term. Refer to Appendix F for the financial data in chart
and graphical form.

4.3 COMMENTS ON THE FOUR SCENARIOS
It is our opinion that the current strata fees at Chelsea Terrace are below average for the area.
MAE conducted a brief study of comparable buildings in the area and the results were other
buildings were paying an average of roughly $0.44 per square foot of suite area. Chelsea
Terrace’s strata fees are approximately $0.34 per square foot of suite area. The fees at Chelsea
Terrace would have to be increased about 30% to meet the area average. Some of the models
discussed above address this issue.

The four proposed scenarios provide financially viable solutions for the Strata to prepare for
future expenditures. Some scenarios can be considered to be more agreeable than others
regarding collection of funds from the strata members.

Scenario 1 proposes a modest and constant strata fee increase of 2 percent, which we have
assumed to equal inflation. This model produces numerous special assessments for The Strata
over 25 year period, which in not desirable and my not be feasible. It is important to note that
the issue of the below average strata fees is not address in this scenario. We do not
recommend proceeding with this option.


Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 26 10/27/2011
Scenario 2 proposes a 5 percent increase in strata fees for 5 years and 2 percent thereafter. This
model slowly addresses the below average strata fees at Chelsea Terrace but does not bring reach
the 30 percent increase until the 6
th
year. In addition, there are eight special assessments in this
model totaling 2.7 million dollars, which may be undesirable.

Scenario 3 proposes a 20 percent initial increase, 10 percent for the following 3 years, and 2.5
percent thereafter. This scenario fully addresses the below average strata fees in the second
year and also significantly reduces the number of special assessments and there total value.
There are four proposed special assessments in this model with a total value of 1.0 million
dollars. This proposal is balanced between strata fee increases and special assessment. This is
the recommended strategy for the Strata.

Scenario 4 proposes an initial 25 percent increase to the fees with 10 percent annul increases for
the following 6 years. No increases are forecasted for the remaining years. This model
addresses the below average strata fees within 2 years and eliminates the need for special
assessments throughout the 25-year study period. Although this option is financially feasible it
may be undesirable to focus all fundraising on increased monthly fees.

The CRF study uses a financial model that has countless viable solutions. MAE has attempted
to provide sample solutions representing various options. The actual Strata Corporation’s
annual contributions to the CRF account must be established by the Strata Council and their
members. We suggest the Strata also consider conferring with their solicitor and/or accountant
to confirm this meets the requirements of the Strata.

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




Contingency Reserve Fund Study for Chelsea Terrace
1040 Pacific Street, Vancouver, British Columbia
Page 27 10/27/2011

5.0 FINAL REMARKS

It should be noted that reviews that are described in this report were limited to the areas and
assemblies that are specifically noted in the report. Except where specifically noted, no testing or
dismantling of any assemblies was performed and reviews were made on a random basis with no
attempt to review or inspect every element or portion of the buildings. Our comments are not a
guarantee or warranty of any aspect of the condition of the buildings whatsoever.

This report was prepared by McCuaig & Associates Engineering Limited (MAE) for the account
of Strata Corporation VR 1047. MAE accepts no responsibility for damages, if any, suffered by
any third party as a result of decisions made or actions based on this report.

MAE has reviewed and assessed the contingency reserve fund requirements of the Strata
Coporation in accordance with MAE’s proposal. It should be noted again that a CRF study is a
dynamic document that will change over time as maintenance and renewals are performed along
with fluctuations in market conditions and inflation. As such, regular review and updates to this
CRF study are necessary to re-assess the needs of the Strata.

We would be pleased to meet with The Strata to review this report and answer questions that
may exist. We trust this meets your requirements at this time, and should you have any questions
or concerns, please contact our office.

McCUAIG & ASSOCIATES ENGINEERING LTD.

Prepared by: Reviewed by:



Jordan Buckshaw, EIT Andrew Leonard, P. Eng

Ref. No. 20110209-C-RPT-CRF-01-FNL


APPENDIX A
BASE SCENARIO – MAINTENANCE AND RENEWALS TABLE
AND FINANCIAL TABLE
October 2011 Page 1 of 3
Base Scenario of Annual Revenue and Expenses with 2% Inflation:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
REVENUE
Strata Fee
$267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735 $267,735
Laundry Income
$17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000 $17,000
Move In/Out Fee
$1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750 $1,750
Parking Income
$29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880 $29,880
Fobs/Keys/Remotes
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Prior Years Surplus
$27,077
(E) TOTAL REVENUE $343,942 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865 $316,865
(F) ACTUAL TOTAL
EXPENSES
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Administrative Expenses
$77,000 $78,540 $80,111 $81,713 $83,347 $85,014 $86,715 $88,449 $90,218 $92,022 $93,863 $95,740 $97,655 $99,608 $101,600 $103,632 $105,704 $107,819 $109,975 $112,174 $114,418 $116,706 $119,040 $121,421 $123,850
Employee Expenses
$32,424 $33,073 $33,734 $34,409 $35,097 $35,799 $36,515 $37,245 $37,990 $38,750 $39,525 $40,315 $41,122 $41,944 $42,783 $43,639 $44,511 $45,402 $46,310 $47,236 $48,181 $49,144 $50,127 $51,130 $52,152
Utilities
$72,850 $74,307 $75,793 $77,309 $78,855 $80,432 $82,041 $83,682 $85,355 $87,062 $88,804 $90,580 $92,391 $94,239 $96,124 $98,047 $100,007 $102,008 $104,048 $106,129 $108,251 $110,416 $112,625 $114,877 $117,175
General Repair &
Maintenance $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,947 $46,866 $47,804 $48,760 $49,735 $50,730 $51,744 $52,779 $53,835 $54,911 $56,010 $57,130 $58,272 $59,438 $60,627 $61,839 $63,076 $64,337
Window Cleaning &
Maintenance $8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561 $9,752 $9,947 $10,146 $10,349 $10,556 $10,767 $10,982 $11,202 $11,426 $11,654 $11,888 $12,125 $12,368 $12,615 $12,867
Power Washing
$3,500 $3,570 $3,641 $3,714 $3,789 $3,864 $3,942 $4,020 $4,101 $4,183 $4,266 $4,352 $4,439 $4,528 $4,618 $4,711 $4,805 $4,901 $4,999 $5,099 $5,201 $5,305 $5,411 $5,519 $5,630
Landscaping Maintenance
$5,200 $5,304 $5,410 $5,518 $5,629 $5,741 $5,856 $5,973 $6,093 $6,214 $6,339 $6,466 $6,595 $6,727 $6,861 $6,999 $7,138 $7,281 $7,427 $7,575 $7,727 $7,881 $8,039 $8,200 $8,364
Irrigation
$750 $765 $780 $796 $812 $828 $845 $862 $879 $896 $914 $933 $951 $970 $990 $1,009 $1,030 $1,050 $1,071 $1,093 $1,114 $1,137 $1,159 $1,183 $1,206
Chelsea Terrace - 1040 Pacific Street, Vancouver, BC
NOTES
EXISTING FIXED ANNUAL REVENUE & EXPENSES
Caretaker Wage
Electricity, Gas, Water &
Sewer
Maintenance cost includes
cleaning and replacing failed
units. Expect maintenance
cost to decrease once
windows are upgraded.
EXPENSES
Statutory Review of Books,
Additional Services, Bank
Charges, Insurance, Office
Supplies, Telephone, & Misc.
October 2011 Page 2 of 3
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
NOTES
EXISTING FIXED ANNUAL REVENUE & EXPENSES
Parking Lot Cleaning
$1,000 $1,020 $1,040 $1,061 $1,082 $1,104 $1,126 $1,149 $1,172 $1,195 $1,219 $1,243 $1,268 $1,294 $1,319 $1,346 $1,373 $1,400 $1,428 $1,457 $1,486 $1,516 $1,546 $1,577 $1,608
Carpet Cleaning
$2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Mechanical Repairs &
Maintenance $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Plumbing Repairs &
Maintenance $5,000 $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217 $6,341 $6,468 $6,597 $6,729 $6,864 $7,001 $7,141 $7,284 $7,430 $7,578 $7,730 $7,884 $8,042
Pool/Spa Chemicals &
Maintenance $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Elevator Inspection, Repair,
Maintenance & License $10,550 $10,761 $10,976 $11,196 $11,420 $11,648 $11,881 $12,119 $12,361 $12,608 $12,860 $13,118 $13,380 $13,648 $13,921 $14,199 $14,483 $14,773 $15,068 $15,369 $15,677 $15,990 $16,310 $16,636 $16,969
Fire Protection & Alarm
Monitoring $3,965 $4,044 $4,125 $4,208 $4,292 $4,378 $4,465 $4,555 $4,646 $4,739 $4,833 $4,930 $5,029 $5,129 $5,232 $5,336 $5,443 $5,552 $5,663 $5,776 $5,892 $6,010 $6,130 $6,252 $6,377
Emergency Generator
Monitoring $1,200 $1,224 $1,248 $1,273 $1,299 $1,325 $1,351 $1,378 $1,406 $1,434 $1,463 $1,492 $1,522 $1,552 $1,583 $1,615 $1,647 $1,680 $1,714 $1,748 $1,783 $1,819 $1,855 $1,892 $1,930
Enterphone
$975 $995 $1,014 $1,035 $1,055 $1,076 $1,098 $1,120 $1,142 $1,165 $1,189 $1,212 $1,237 $1,261 $1,286 $1,312 $1,338 $1,365 $1,393 $1,420 $1,449 $1,478 $1,507 $1,537 $1,568
Security
$1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793 $1,828 $1,865 $1,902 $1,940 $1,979 $2,019 $2,059 $2,100 $2,142 $2,185 $2,229 $2,273 $2,319 $2,365 $2,413
Lighting
$500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 $634 $647 $660 $673 $686 $700 $714 $728 $743 $758 $773 $788 $804
Locks/Keys
$1,750 $1,785 $1,821 $1,857 $1,894 $1,932 $1,971 $2,010 $2,050 $2,091 $2,133 $2,176 $2,219 $2,264 $2,309 $2,355 $2,402 $2,450 $2,499 $2,549 $2,600 $2,652 $2,705 $2,760 $2,815
Pest Control
$3,500 $3,570 $3,641 $3,714 $3,789 $3,864 $3,942 $4,020 $4,101 $4,183 $4,266 $4,352 $4,439 $4,528 $4,618 $4,711 $4,805 $4,901 $4,999 $5,099 $5,201 $5,305 $5,411 $5,519 $5,630
Garbage Collection &
Recycling $12,950 $13,209 $13,473 $13,743 $14,017 $14,298 $14,584 $14,875 $15,173 $15,476 $15,786 $16,102 $16,424 $16,752 $17,087 $17,429 $17,778 $18,133 $18,496 $18,866 $19,243 $19,628 $20,020 $20,421 $20,829
Snow Removal
$2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108 $3,171 $3,234 $3,299 $3,365 $3,432 $3,501 $3,571 $3,642 $3,715 $3,789 $3,865 $3,942 $4,021
Supplies
$2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Elevator Upgrades
$5,000 $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217 $6,341 $6,468 $6,597 $6,729 $6,864 $7,001 $7,141 $7,284 $7,430 $7,578 $7,730 $7,884 $8,042
Garage Door
$3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446 $3,515 $3,585 $3,657 $3,730 $3,805 $3,881 $3,958 $4,038 $4,118 $4,201 $4,285 $4,370 $4,458 $4,547 $4,638 $4,731 $4,825
We understand that this work
is being carried out monthly by
the building manager.
Contract
Wholesale replacement
required within 20 years.
October 2011 Page 3 of 3
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2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
NOTES
EXISTING FIXED ANNUAL REVENUE & EXPENSES
Ground Improvement
$1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793 $1,828 $1,865 $1,902 $1,940 $1,979 $2,019 $2,059 $2,100 $2,142 $2,185 $2,229 $2,273 $2,319 $2,365 $2,413
Mechanical
$4,500 $4,590 $4,682 $4,775 $4,871 $4,968 $5,068 $5,169 $5,272 $5,378 $5,485 $5,595 $5,707 $5,821 $5,938 $6,056 $6,178 $6,301 $6,427 $6,556 $6,687 $6,820 $6,957 $7,096 $7,238
Fire Equipment
$2,250 $2,295 $2,341 $2,388 $2,435 $2,484 $2,534 $2,585 $2,636 $2,689 $2,743 $2,798 $2,854 $2,911 $2,969 $3,028 $3,089 $3,151 $3,214 $3,278 $3,343 $3,410 $3,478 $3,548 $3,619
(G) TOTAL EXPENSES $309,364 $315,551 $321,863 $328,300 $334,866 $341,563 $348,394 $355,362 $362,469 $369,719 $377,113 $384,655 $392,349 $400,196 $408,199 $416,363 $424,691 $433,185 $441,848 $450,685 $459,699 $468,893 $478,271 $487,836 $497,593
(H) ACTUAL TOTAL
EXPENSES
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
October 2011 Page 1 of 2
Base Scenario of Yearly Maintenance / Renewals Expenditures for:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
$2,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $3,630 $3,740 $3,860 $3,980 $4,100 $4,230
SBS Roofing Membrane
Replacement of Main Roofs $275,000
SBS Roofing Membrane
Replacement of Lower Tier
Roofs
$45,000
Exterior Wall Sealant
Replacement $50,000 $70,000 $95,000
Windows / Doors
Replacement
$400,000
Balcony Membrane
Replacement $55,000 $12,240 $12,490 $12,740 $13,000 $13,260 $13,530 $13,810 $14,090 $14,380 $14,670 $14,970 $15,270 $15,580 $15,900 $16,220 $16,550 $16,890 $17,230 $17,580 $17,940 $18,300 $18,670 $19,050 $19,440
New Rain Water Collection
System $40,000
Roof Deck Condition Review
$2,000
Plaza Deck Membrane
Replacement $75,000 $75,000 $75,000
$135,000 $180,000 $120,000
$5,000 $5,100 $5,210 $5,320 $5,430 $5,540 $5,660 $5,780 $5,900 $6,020 $6,150 $6,280 $6,410 $6,540 $6,680 $6,820 $6,960 $7,100 $7,250 $7,400 $7,550 $7,710 $7,870 $8,030 $8,200
$85,000 $150,000
$65,000 $85,000
Professional Building
Envelope Review $13,000 $15,000 $18,000 $20,000 $25,000
(A) Total Cost for Bldg
Exterior & General Site
Issues per year
$107,000 $19,400 $271,830 $95,260 $918,700 $21,140 $21,610 $22,090 $22,570 $103,060 $23,560 $24,080 $94,600 $25,130 $223,690 $26,250 $26,820 $27,400 $28,000 $133,610 $29,230 $29,870 $275,520 $31,180 $176,870
(B) Actual Amount Spent for
Bldg Exterior & General Site
Issues
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Roofing Maintenance
(Misc. maintenance and repairs
to membranes, drains and
flashing)
Chelsea Terrace - 1040 Pacific Street, Vancouver, BC
Exterior Painting and
Waterproofing Sealer
(Exterior Cladding)
NOTES
Old sealant must be removed
to facilitate proper application
of new sealant.
Review should be carried out
by an RCABC approved
contractor.
Roofing Maintenance should
be carried out by an RCABC
approved contractor
To replace with 2-ply SBS
roofing membrane.
To replace with 2-ply SBS
roofing membrane.
New rain water collection
system to collect water and
direct down to the ground.
Upper balcony membranes to
be replaced as soon as
possible. The rest of the
membranes to be replaced as
needed on an annual basis.
RECOMMENDED ANNUAL MAINTENANCE/RENEWALS EXPENSES
Replace existing membrane
with SBS membrane in three
phases.
Exterior cladding to be painted
and sealed every 10 years.
Waterproofing of concrete
slabs to be done every 20
years.
Waterproofing Concrete
Parkade Ramp, Pedestrian
Ramp and Stairs
Carpet Replacement &
Interior Painting of Common
Areas
*Numbers in bold represent
wholesale replacement costs.
Carpet to be cleaned annually.
Replacement of carpet and
repainting interior walls to
occur every 10 years.
Intermediate review may be
necessary based on findings.
Annual Cleaning
(Windows, Doors, Exterior
Cladding, Glass Canopies,
Guardrails, Decks, & Patios)
October 2011 Page 2 of 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
NOTES
RECOMMENDED ANNUAL MAINTENANCE/RENEWALS EXPENSES
Boiler Service &
Replacement $20,000 $2,060 $2,110 $2,160 $2,210 $2,260 $2,310 $2,360 $2,410 $2,460 $2,510 $2,570 $2,630 $2,690 $2,750 $2,810 $2,870 $2,930 $2,990 $3,050 $3,120 $3,190 $3,260 $3,330 $3,400
Domestic Pipes Replacement
$400,000
Water Mains Replacement
$60,000
Drainage Pipes Maintenance
$2,000 $2,040 $2,090 $2,140 $2,190 $2,240 $2,290 $2,340 $2,390 $2,440 $2,490 $2,540 $2,600 $2,660 $2,720 $2,780 $2,840 $2,900 $2,960 $3,020 $3,090 $3,160 $3,230 $3,300 $3,370
Elevator Replacement
$175,000
DHW Tanks Replacement
$20,000
Valves / Pumps
Repair & Replacement $1,000 $1,020 $1,050 $1,080 $1,110 $1,140 $1,170 $1,200 $1,230 $1,260 $1,290 $1,320 $1,350 $1,380 $1,410 $1,440 $1,470 $1,500 $1,530 $1,570 $1,610 $1,650 $1,690 $1,730 $1,770
Alarm Panel Upgrade
$85,000
Sprinklers
$500,000
(C ) Total Cost for
Mech/Safety/Elec Systems
per year
$23,000 $5,120 $5,250 $5,380 $5,510 $5,640 $5,770 $5,900 $6,030 $6,160 $6,290 $426,430 $6,580 $6,730 $66,880 $7,030 $92,180 $7,330 $182,480 $7,640 $7,820 $508,000 $8,180 $8,360 $8,540
(D) Actual Amount Spent on
Mech/Safety/Elec Systems
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
PROJECTED TOTAL
(A + C) per year
$130,000 $24,520 $277,080 $100,640 $924,210 $26,780 $27,380 $27,990 $28,600 $109,220 $29,850 $450,510 $101,180 $31,860 $290,570 $33,280 $119,000 $34,730 $210,480 $141,250 $37,050 $537,870 $283,700 $39,540 $185,410
ACTUAL TOTAL
(B + D) per year
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
The preceding tables should be taken as an initial guideline only. Actual expenditure amounts should be input into the empty row provided below each item. The spreadsheet has been formatted in such a way that input data will be tallied for each year.
DHW tanks to be replaced
every 20 years.
Dependent on condition, may
not be necessary.
Dependent on condition, may
not be necessary.
The Renewals Budget information provides an estimated service life and replacement cost for exterior materials and systems. The expected service life time frames are based on available manufacturers literature, warranties, and theoretical or historical industry standards. All systems and components are
subject to a wide variety of factors that affect their life expectancy including: weather exposure, quality of installation, quality of manufacture, and the quality of the ongoing maintenance program. As a result of these factors, systems and components demonstrate variations in their predicted service life, while
some may out live the predicted life, others may not.
Estimates for future materials and labour costs are also subject to wide variations based on inflation, materials availability, and ultimately, final design decisions. While the preceding caveats must be taken into consideration, planning for the inevitable replacement of materials is important, and should not be
ignored. The expected service life of products should be updated periodically based on ongoing maintenance reviews.
* Numbers in bold represent
wholesale replacement costs.
Dollar values are calculated using an assumed inflation rate of 2% per year for the 25 year period.
Wholesale replacement
required within 20 years.
Boiler to be serviced annually
and replaced every 20 years.
Domestic pipes were replaced
in 2003 and to be replaced
every 20 years.
Water main pipes to bee
replaced every 20 years.
$195,617
2%
1%
[ b - c ] [b - c - d + f] [a + g + h]
2012 $195,617 $316,865 $309,364 $130,000 $7,501 $0 -$122,499 $1,956 $75,074
2013 $75,074 $316,865 $315,551 $24,520 $1,313 $0 -$23,207 $751 $52,618
2014 $52,618 $316,865 $321,863 $277,080 -$4,998 $0 -$282,078 $526 -$228,934
2015 -$228,934 $316,865 $328,300 $100,640 -$11,435 $0 -$112,075 $0 -$341,009
2016 -$341,009 $316,865 $334,866 $924,210 -$18,001 $0 -$942,211 $0 -$1,283,220
2017 -$1,283,220 $316,865 $341,563 $26,780 -$24,698 $0 -$51,478 $0 -$1,334,698
2018 -$1,334,698 $316,865 $348,394 $27,380 -$31,530 $0 -$58,910 $0 -$1,393,607
2019 -$1,393,607 $316,865 $355,362 $27,990 -$38,497 $0 -$66,487 $0 -$1,460,095
2020 -$1,460,095 $316,865 $362,469 $28,600 -$45,605 $0 -$74,205 $0 -$1,534,300
2021 -$1,534,300 $316,865 $369,719 $109,220 -$52,854 $0 -$162,074 $0 -$1,696,374
2022 -$1,696,374 $316,865 $377,113 $29,850 -$60,248 $0 -$90,098 $0 -$1,786,472
2023 -$1,786,472 $316,865 $384,655 $450,510 -$67,791 $0 -$518,301 $0 -$2,304,773
2024 -$2,304,773 $316,865 $392,349 $101,180 -$75,484 $0 -$176,664 $0 -$2,481,437
2025 -$2,481,437 $316,865 $400,196 $31,860 -$83,331 $0 -$115,191 $0 -$2,596,627
2026 -$2,596,627 $316,865 $408,199 $290,570 -$91,335 $0 -$381,905 $0 -$2,978,532
2027 -$2,978,532 $316,865 $416,363 $33,280 -$99,499 $0 -$132,779 $0 -$3,111,311
2028 -$3,111,311 $316,865 $424,691 $119,000 -$107,826 $0 -$226,826 $0 -$3,338,137
2029 -$3,338,137 $316,865 $433,185 $34,730 -$116,320 $0 -$151,050 $0 -$3,489,186
2030 -$3,489,186 $316,865 $441,848 $210,480 -$124,983 $0 -$335,463 $0 -$3,824,650
2031 -$3,824,650 $316,865 $450,685 $141,250 -$133,820 $0 -$275,070 $0 -$4,099,720
2032 -$4,099,720 $316,865 $459,699 $37,050 -$142,834 $0 -$179,884 $0 -$4,279,604
2033 -$4,279,604 $316,865 $468,893 $537,870 -$152,028 $0 -$689,898 $0 -$4,969,503
2034 -$4,969,503 $316,865 $478,271 $283,700 -$161,406 $0 -$445,106 $0 -$5,414,608
2035 -$5,414,608 $316,865 $487,836 $39,540 -$170,971 $0 -$210,511 $0 -$5,625,120
2036 -$5,625,120 $316,865 $497,593 $185,410 -$180,728 $0 -$366,138 $0 -$5,991,258
Year
BASE SCENARIO
(f)
Special
Assessment
(h)
Interest
Earned
(i)
Year End
Asset
(a)
Opening
Balance
(CRF for Bldg
+ Elevator)
(b)
Annual
Revenue
(Assumes no
increase)
(c )
Current
Annual
Expenses
(Assumes
annual
increase of
inflation)
(d)
Major
Expenses
Expected
(e)
Annual CRF
Contribution
(Assumes
annual
increase of
inflation)
(g)
Surplus/
Deficit
0% increase in strata fees
Total Asset as of Sept 30, 2011
Inflation
Interest Rate
-$1.3
-$1.4
-$1.3
-$1.2
-$1.1
-$1.0
-$0.9
-$0.8
-$0.7
-$0.6
-$0.3
-$0.4
-$0.3
-$0.2
-$0.1
$0.0
$0.1
$0.2
$0.3
$0.4
$0.3
$0.6
$0.7
$0.8
$0.9
$1.0
$1.1
$1.2
$1.3
$1.4
$1.3
2012 2013 2014 2013 2016 2017 2018 2019 2020 2021 2022 2023 2024 2023 2026 2027 2028 2029 2030 2031 2032 2033 2034 2033 2036
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llxed Annual Lxpenses 8ecommended Annual 8ldg Lxpenses 8ecommended Annual Mech/SafeLy/Llec SysLems Lxpenses "Annual 8evenue" C8l



APPENDIX B
PROPOSED MAINTENANCE AND RENEWALS TABLE AND
FINANCIAL TABLE FOR THE FOUR PROPOSED SCENARIOS
October 2011 Page 1 of 3
Yearly Forecasted Revenues and Expenses Assuming 2% Inflation for:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
REVENUE
Strata Fee
$267,735 $273,089 $278,551 $284,122 $289,805 $295,601 $301,513 $307,543 $313,694 $319,968 $326,367 $332,895 $339,552 $346,344 $353,270 $360,336 $367,543 $374,893 $382,391 $390,039 $397,840 $405,797 $413,913 $422,191 $430,635
Laundry Income
$17,000 $17,340 $17,687 $18,041 $18,401 $18,769 $19,145 $19,528 $19,918 $20,317 $20,723 $21,137 $21,560 $21,991 $22,431 $22,880 $23,337 $23,804 $24,280 $24,766 $25,261 $25,766 $26,282 $26,807 $27,343
Move In/Out Fee
$1,750 $1,785 $1,821 $1,857 $1,894 $1,932 $1,971 $2,010 $2,050 $2,091 $2,133 $2,176 $2,219 $2,264 $2,309 $2,355 $2,402 $2,450 $2,499 $2,549 $2,600 $2,652 $2,705 $2,760 $2,815
Parking Income
$29,880 $30,478 $31,087 $31,709 $32,343 $32,990 $33,650 $34,323 $35,009 $35,709 $36,424 $37,152 $37,895 $38,653 $39,426 $40,215 $41,019 $41,839 $42,676 $43,530 $44,400 $45,288 $46,194 $47,118 $48,060
Fobs/Keys/Remotes
$500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 $634 $647 $660 $673 $686 $700 $714 $728 $743 $758 $773 $788 $804
Prior Year's Surplus
$27,077
(E) TOTAL REVENUE $343,942 $323,202 $329,666 $336,259 $342,985 $349,844 $356,841 $363,978 $371,258 $378,683 $386,256 $393,982 $401,861 $409,898 $418,096 $426,458 $434,987 $443,687 $452,561 $461,612 $470,844 $480,261 $489,867 $499,664 $509,657
(F) ACTUAL TOTAL
REVENUE
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Administrative Expenses
$77,000 $78,540 $80,111 $81,713 $83,347 $85,014 $86,715 $88,449 $90,218 $92,022 $93,863 $95,740 $97,655 $99,608 $101,600 $103,632 $105,704 $107,819 $109,975 $112,174 $114,418 $116,706 $119,040 $121,421 $123,850
Employee Expenses
$32,424 $33,073 $33,734 $34,409 $35,097 $35,799 $36,515 $37,245 $37,990 $38,750 $39,525 $40,315 $41,122 $41,944 $42,783 $43,639 $44,511 $45,402 $46,310 $47,236 $48,181 $49,144 $50,127 $51,130 $52,152
Utilities
$72,850 $74,307 $75,793 $77,309 $78,855 $80,432 $82,041 $83,682 $85,355 $87,062 $88,804 $90,580 $92,391 $94,239 $96,124 $98,047 $100,007 $102,008 $104,048 $106,129 $108,251 $110,416 $112,625 $114,877 $117,175
General Repair &
Maintenance $40,000 $40,800 $41,616 $42,448 $43,297 $44,163 $45,046 $45,947 $46,866 $47,804 $48,760 $49,735 $50,730 $51,744 $52,779 $53,835 $54,911 $56,010 $57,130 $58,272 $59,438 $60,627 $61,839 $63,076 $64,337
Window Cleaning &
Maintenance $8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561 $9,752 $9,947 $10,146 $10,349 $10,556 $10,767 $10,982 $11,202 $11,426 $11,654 $11,888 $12,125 $12,368 $12,615 $12,867
Power Washing
$3,500 $3,570 $3,641 $3,714 $3,789 $3,864 $3,942 $4,020 $4,101 $4,183 $4,266 $4,352 $4,439 $4,528 $4,618 $4,711 $4,805 $4,901 $4,999 $5,099 $5,201 $5,305 $5,411 $5,519 $5,630
Landscaping Maintenance
$5,200 $5,304 $5,410 $5,518 $5,629 $5,741 $5,856 $5,973 $6,093 $6,214 $6,339 $6,466 $6,595 $6,727 $6,861 $6,999 $7,138 $7,281 $7,427 $7,575 $7,727 $7,881 $8,039 $8,200 $8,364
Irrigation
$750 $765 $780 $796 $812 $828 $845 $862 $879 $896 $914 $933 $951 $970 $990 $1,009 $1,030 $1,050 $1,071 $1,093 $1,114 $1,137 $1,159 $1,183 $1,206
EXPENSES
Statutory Review of Books,
Additional Services, Bank
Charges, Insurance, Office
Supplies, Telephone, & Misc.
Chelsea Terrace - 1040 Pacific Street, Vancouver, BC
NOTES
EXISTING FIXED ANNUAL REVENUE & EXPENSES
Caretaker Wage
Electricity, Gas, Water &
Sewer
Maintenance cost includes
cleaning and replacing failed
units. Expect maintenance
cost to decrease once
windows are upgraded.
October 2011 Page 2 of 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
NOTES
EXISTING FIXED ANNUAL REVENUE & EXPENSES
Parking Lot Cleaning
$1,000 $1,020 $1,040 $1,061 $1,082 $1,104 $1,126 $1,149 $1,172 $1,195 $1,219 $1,243 $1,268 $1,294 $1,319 $1,346 $1,373 $1,400 $1,428 $1,457 $1,486 $1,516 $1,546 $1,577 $1,608
Carpet Cleaning
$2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Mechanical Repairs &
Maintenance $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Plumbing Repairs &
Maintenance $5,000 $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217 $6,341 $6,468 $6,597 $6,729 $6,864 $7,001 $7,141 $7,284 $7,430 $7,578 $7,730 $7,884 $8,042
Pool/Spa Chemicals &
Maintenance $2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Elevator Inspection, Repair,
Maintenance & License $10,550 $10,761 $10,976 $11,196 $11,420 $11,648 $11,881 $12,119 $12,361 $12,608 $12,860 $13,118 $13,380 $13,648 $13,921 $14,199 $14,483 $14,773 $15,068 $15,369 $15,677 $15,990 $16,310 $16,636 $16,969
Fire Protection & Alarm
Monitoring $3,965 $4,044 $4,125 $4,208 $4,292 $4,378 $4,465 $4,555 $4,646 $4,739 $4,833 $4,930 $5,029 $5,129 $5,232 $5,336 $5,443 $5,552 $5,663 $5,776 $5,892 $6,010 $6,130 $6,252 $6,377
Emergency Generator
Monitoring $1,200 $1,224 $1,248 $1,273 $1,299 $1,325 $1,351 $1,378 $1,406 $1,434 $1,463 $1,492 $1,522 $1,552 $1,583 $1,615 $1,647 $1,680 $1,714 $1,748 $1,783 $1,819 $1,855 $1,892 $1,930
Enterphone
$975 $995 $1,014 $1,035 $1,055 $1,076 $1,098 $1,120 $1,142 $1,165 $1,189 $1,212 $1,237 $1,261 $1,286 $1,312 $1,338 $1,365 $1,393 $1,420 $1,449 $1,478 $1,507 $1,537 $1,568
Security
$1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793 $1,828 $1,865 $1,902 $1,940 $1,979 $2,019 $2,059 $2,100 $2,142 $2,185 $2,229 $2,273 $2,319 $2,365 $2,413
Lighting
$500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609 $622 $634 $647 $660 $673 $686 $700 $714 $728 $743 $758 $773 $788 $804
Locks/Keys
$1,750 $1,785 $1,821 $1,857 $1,894 $1,932 $1,971 $2,010 $2,050 $2,091 $2,133 $2,176 $2,219 $2,264 $2,309 $2,355 $2,402 $2,450 $2,499 $2,549 $2,600 $2,652 $2,705 $2,760 $2,815
Pest Control
$3,500 $3,570 $3,641 $3,714 $3,789 $3,864 $3,942 $4,020 $4,101 $4,183 $4,266 $4,352 $4,439 $4,528 $4,618 $4,711 $4,805 $4,901 $4,999 $5,099 $5,201 $5,305 $5,411 $5,519 $5,630
Garbage Collection &
Recycling $12,950 $13,209 $13,473 $13,743 $14,017 $14,298 $14,584 $14,875 $15,173 $15,476 $15,786 $16,102 $16,424 $16,752 $17,087 $17,429 $17,778 $18,133 $18,496 $18,866 $19,243 $19,628 $20,020 $20,421 $20,829
Snow Removal
$2,500 $2,550 $2,601 $2,653 $2,706 $2,760 $2,815 $2,872 $2,929 $2,988 $3,047 $3,108 $3,171 $3,234 $3,299 $3,365 $3,432 $3,501 $3,571 $3,642 $3,715 $3,789 $3,865 $3,942 $4,021
Supplies
$2,000 $2,040 $2,081 $2,122 $2,165 $2,208 $2,252 $2,297 $2,343 $2,390 $2,438 $2,487 $2,536 $2,587 $2,639 $2,692 $2,746 $2,800 $2,856 $2,914 $2,972 $3,031 $3,092 $3,154 $3,217
Elevator Upgrades
$5,000 $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 $5,975 $6,095 $6,217 $6,341 $6,468 $6,597 $6,729 $6,864 $7,001 $7,141 $7,284 $7,430 $7,578 $7,730 $7,884 $8,042
Garage Door
$3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446 $3,515 $3,585 $3,657 $3,730 $3,805 $3,881 $3,958 $4,038 $4,118 $4,201 $4,285 $4,370 $4,458 $4,547 $4,638 $4,731 $4,825
Wholesale replacement
required within 20 years.
Contract
We understand that this work
is being carried out monthly by
the building manager.
October 2011 Page 3 of 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
NOTES
EXISTING FIXED ANNUAL REVENUE & EXPENSES
Ground Improvement
$1,500 $1,530 $1,561 $1,592 $1,624 $1,656 $1,689 $1,723 $1,757 $1,793 $1,828 $1,865 $1,902 $1,940 $1,979 $2,019 $2,059 $2,100 $2,142 $2,185 $2,229 $2,273 $2,319 $2,365 $2,413
Mechanical
$4,500 $4,590 $4,682 $4,775 $4,871 $4,968 $5,068 $5,169 $5,272 $5,378 $5,485 $5,595 $5,707 $5,821 $5,938 $6,056 $6,178 $6,301 $6,427 $6,556 $6,687 $6,820 $6,957 $7,096 $7,238
Fire Equipment
$2,250 $2,295 $2,341 $2,388 $2,435 $2,484 $2,534 $2,585 $2,636 $2,689 $2,743 $2,798 $2,854 $2,911 $2,969 $3,028 $3,089 $3,151 $3,214 $3,278 $3,343 $3,410 $3,478 $3,548 $3,619
(G) TOTAL EXPENSES $309,364 $315,551 $321,863 $328,300 $334,866 $341,563 $348,394 $355,362 $362,469 $369,719 $377,113 $384,655 $392,349 $400,196 $408,199 $416,363 $424,691 $433,185 $441,848 $450,685 $459,699 $468,893 $478,271 $487,836 $497,593
(H) ACTUAL TOTAL
EXPENSES
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
October 2011 Page 1 of 2
Adjusted Yearly Maintenance / Renewals Expenditures for:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
$2,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $3,630 $3,740 $3,860 $3,980 $4,100 $4,230
SBS Roofing Membrane
Replacement of Main Roofs $300,000
SBS Roofing Membrane
Replacement of Lower Tier
Roofs
$45,000
Exterior Wall Sealant
Replacement $53,000 $70,000 $95,000
Windows / Doors
Replacement
$150,000 $150,000 $150,000
Balcony Membrane
Replacement $55,000 $12,360 $12,740 $13,130 $13,530 $13,940 $14,360 $14,800 $15,250 $15,710 $16,190 $16,680 $17,190 $17,710 $18,250 $18,800 $19,370 $19,960 $20,560 $21,180 $21,820 $22,480 $23,160 $23,860 $24,580
New Rain Water Collection
System $32,000
Roof Deck Condition Review
$2,000
Plaza Deck Membrane
Replacement $80,000 $82,000 $84,000
$135,000 $180,000 $120,000
$5,000 $5,150 $5,310 $5,470 $5,640 $5,810 $5,990 $6,170 $6,360 $6,560 $6,760 $6,970 $7,180 $7,400 $7,630 $7,860 $8,100 $8,350 $8,610 $8,870 $9,140 $9,420 $9,710 $10,010 $10,320
$85,000 $150,000
$65,000 $85,000
Professional Building
Envelope Review $13,000 $15,000 $18,000 $20,000 $25,000
(A) Total Cost for Bldg
Exterior & General Site
Issues per year
$107,000 $19,570 $272,180 $102,800 $253,440 $322,090 $22,770 $173,470 $174,190 $254,930 $25,690 $26,480 $97,290 $28,120 $226,990 $29,870 $30,780 $31,720 $32,690 $138,680 $34,700 $35,760 $281,850 $37,970 $184,130
(B) Actual Amount Spent for
Bldg Exterior & General Site
Issues
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Waterproofing of concrete
slabs to be done every 20
years.
Waterproofing Concrete
Parkade Ramp, Pedestrian
Ramp and Stairs
Carpet Replacement &
Interior Painting of Common
Areas
*Numbers in bold represent
wholesale replacement costs.
Carpet to be cleaned annually.
Replacement of carpet and
repainting interior walls to
occur every 10 years.
Intermediate review may be
necessary based on findings.
Annual Cleaning
(Windows, Doors, Exterior
Cladding, Glass Canopies,
Guardrails, Decks, & Patios)
Roofing Maintenance
(Misc. maintenance and repairs
to membranes, drains and
flashing)
Chelsea Terrace - 1040 Pacific Street, Vancouver, BC
Exterior Painting and
Waterproofing Sealer
(Exterior Cladding)
NOTES
Old sealant must be removed
to facilitate proper application
of new sealant.
Review should be carried out
by an RCABC approved
contractor.
Roofing Maintenance should
be carried out by an RCABC
approved contractor
To replace with 2-ply SBS
roofing membrane.
To replace with 2-ply SBS
roofing membrane.
New rain water collection
system to collect water and
direct down to the ground.
Upper balcony membranes to
be replaced as soon as
possible. The rest of the
membranes to be replaced as
needed on an annual basis.
RECOMMENDED ANNUAL MAINTENANCE/RENEWALS EXPENSES
Replace existing membrane
with SBS membrane in three
phases.
Exterior cladding to be painted
and sealed every 10 years.
October 2011 Page 2 of 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
ITEM / ACTIVITY
NOTES
RECOMMENDED ANNUAL MAINTENANCE/RENEWALS EXPENSES
Boiler Service &
Replacement $20,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $35,000 $3,740 $3,860 $3,980 $4,100 $4,230
Domestic Pipes Replacement
$200,000 $200,000
Water Mains Replacement
$60,000
Drainage Pipes Maintenance
$2,000 $2,060 $2,130 $2,200 $2,270 $2,340 $2,420 $2,500 $2,580 $2,660 $2,740 $2,830 $2,920 $3,010 $3,110 $3,210 $3,310 $3,410 $3,520 $3,630 $3,740 $3,860 $3,980 $4,100 $4,230
Elevator Replacement
$175,000
DHW Tanks Replacement
$20,000
Valves / Pumps
Repair & Replacement $1,000 $1,030 $1,070 $1,110 $1,150 $1,190 $1,230 $1,270 $1,310 $1,350 $1,400 $1,450 $1,500 $1,550 $1,600 $1,650 $1,700 $1,760 $1,820 $1,880 $1,940 $2,000 $2,060 $2,130 $2,200
Alarm Panel Upgrade
$85,000
Sprinklers
$250,000 $250,000
(C ) Total Cost for
Mech/Safety/Elec Systems
per year
$23,000 $5,150 $5,330 $5,510 $5,690 $5,870 $6,070 $6,270 $6,470 $6,670 $6,880 $227,110 $207,340 $7,570 $67,820 $8,070 $93,320 $8,580 $183,860 $40,510 $9,420 $259,720 $10,020 $260,330 $10,660
(D) Actual Amount Spent on
Mech/Safety/Elec Systems
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
PROJECTED TOTAL
(A + C) per year
$130,000 $24,720 $277,510 $108,310 $259,130 $327,960 $28,840 $179,740 $180,660 $261,600 $32,570 $253,590 $304,630 $35,690 $294,810 $37,940 $124,100 $40,300 $216,550 $179,190 $44,120 $295,480 $291,870 $298,300 $194,790
ACTUAL TOTAL
(B + D) per year
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Wholesale replacement
required within 20 years.
Boiler to be serviced annually
and replaced every 20 years.
Domestic pipes were replaced
in 2003 and to be replaced
every 20 years.
Water main pipes to bee
replaced every 20 years.
The preceding tables should be taken as an initial guideline only. Actual expenditure amounts should be input into the empty row provided below each item. The spreadsheet has been formatted in such a way that input data will be tallied for each year.
DHW tanks to be replaced
every 20 years.
Dependent on condition, may
not be necessary.
Dependent on condition, may
not be necessary.
The Renewals Budget information provides an estimated service life and replacement cost for exterior materials and systems. The expected service life time frames are based on available manufacturers literature, warranties, and theoretical or historical industry standards. All systems and components are
subject to a wide variety of factors that affect their life expectancy including: weather exposure, quality of installation, quality of manufacture, and the quality of the ongoing maintenance program. As a result of these factors, systems and components demonstrate variations in their predicted service life, while
some may out live the predicted life, others may not.
Estimates for future materials and labour costs are also subject to wide variations based on inflation, materials availability, and ultimately, final design decisions. While the preceding caveats must be taken into consideration, planning for the inevitable replacement of materials is important, and should not be
ignored. The expected service life of products should be updated periodically based on ongoing maintenance reviews.
* Numbers in bold represent
wholesale replacement costs.
Dollar values are calculated using an assumed inflation rate of 2% per year for the 25 year period.



APPENDIX C
SCENARIO 1 – FINANCIAL ANALYSIS TABLE
AND GRAPH
$195,617 Fee Increases: 2.0%
2%
1%
[ b - c ] [b - c - d + f] [a + g + h]
2012 $195,617 $322,219 $309,364 $130,000 $12,855 $0 -$117,145 $1,956 $80,428
2013 $80,428 $327,681 $315,551 $24,720 $12,130 $0 -$12,590 $804 $68,643
2014 $68,643 $333,252 $321,863 $277,510 $11,390 $300,000 $33,880 $686 $103,209
2015 $103,209 $338,935 $328,300 $108,310 $10,635 $0 -$97,675 $1,032 $6,566
2016 $6,566 $344,731 $334,866 $259,130 $9,865 $600,000 $350,735 $66 $357,367
2017 $357,367 $350,643 $341,563 $327,960 $9,080 $0 -$318,880 $3,574 $42,060
2018 $42,060 $356,673 $348,394 $28,840 $8,279 $0 -$20,561 $421 $21,919
2019 $21,919 $362,824 $355,362 $179,740 $7,462 $350,000 $177,722 $219 $199,860
2020 $199,860 $369,098 $362,469 $180,660 $6,628 $0 -$174,032 $1,999 $27,827
2021 $27,827 $375,497 $369,719 $261,600 $5,778 $300,000 $44,178 $278 $72,284
2022 $72,284 $391,851 $377,113 $32,570 $14,737 $0 -$17,833 $723 $55,174
2023 $55,174 $398,508 $384,655 $253,590 $13,853 $550,000 $310,263 $552 $365,989
2024 $365,989 $405,300 $392,349 $304,630 $12,951 $0 -$291,679 $3,660 $77,970
2025 $77,970 $412,226 $400,196 $35,690 $12,031 $0 -$23,659 $780 $55,090
2026 $55,090 $419,292 $408,199 $294,810 $11,092 $300,000 $16,282 $551 $71,923
2027 $71,923 $426,499 $416,363 $37,940 $10,135 $0 -$27,805 $719 $44,838
2028 $44,838 $433,849 $424,691 $124,100 $9,159 $200,000 $85,059 $448 $130,345
2029 $130,345 $441,347 $433,185 $40,300 $8,163 $0 -$32,137 $1,303 $99,511
2030 $99,511 $448,995 $441,848 $216,550 $7,147 $350,000 $140,597 $995 $241,103
2031 $241,103 $456,796 $450,685 $179,190 $6,111 $0 -$173,079 $2,411 $70,434
2032 $70,434 $476,544 $459,699 $44,120 $16,845 $0 -$27,275 $704 $43,864
2033 $43,864 $484,660 $468,893 $295,480 $15,767 $550,000 $270,287 $439 $314,589
2034 $314,589 $492,938 $478,271 $291,870 $14,667 $0 -$277,203 $3,146 $40,532
2035 $40,532 $501,382 $487,836 $298,300 $13,546 $500,000 $215,246 $405 $256,183
2036 $256,183 $509,995 $497,593 $194,790 $12,402 $0 -$182,388 $2,562 $76,357
$10,181,734 $9,909,028 $4,422,400 $272,706 $4,000,000
Year
SCENARIO 1
(f)
Special
Assessment
(h)
Interest
Earned
(i)
Year End
Asset
(a)
Opening
Balance
(CRF for Bldg
+ Elevator)
(b)
Annual
Revenue
(Assumes
annual
increase of
2%)
(c )
Current
Annual
Expenses
(Assumes
annual
increase of
inflation)
(d)
Major
Expenses
Expected
(e)
Annual CRF
Contribution
(Assumes
annual
increase of
inflation)
(g)
Surplus/
Deficit
2% increase (inflation) per annum in strata fees and multiple special assessments
Total Asset as of Sept 30, 2011
Inflation
Interest Rate
-$0.2
-$0.1
$0.0
$0.1
$0.2
$0.3
$0.4
$0.3
$0.6
$0.7
$0.8
$0.9
$1.0
2012 2013 2014 2013 2016 2017 2018 2019 2020 2021 2022 2023 2024 2023 2026 2027 2028 2029 2030 2031 2032 2033 2034 2033 2036
!
"
#
$
%
&
!
'
(
%
)
%
*
+
,
,
+
"
-
.
%
/+01%&2134.%
561-34+"%7%8%9:%;11%<-6413#1%="4%9>%2134#%?,@#%*@,A?,1%'##1##01-$#%
llxed Annual Lxpenses 8ecommended Annual 8ldg Lxpenses 8ecommended Annual Mech/SafeLy/Llec SysLems Lxpenses "Annual 8evenue" C8l



APPENDIX D
SCENARIO 2 – FINANCIAL ANALYSIS TABLE
AND GRAPH
$195,617 Fee Increases: 5.0%
2% 2.0%
1%
[ b - c ] [b - c - d + f] [a + g + h]
2012 $195,617 $330,252 $309,364 $130,000 $20,887 $0 -$109,113 $1,956 $88,461
2013 $88,461 $344,308 $315,551 $24,720 $28,756 $0 $4,036 $885 $93,381
2014 $93,381 $359,066 $321,863 $277,510 $37,204 $300,000 $59,694 $934 $154,009
2015 $154,009 $374,563 $328,300 $108,310 $46,264 $0 -$62,046 $1,540 $93,503
2016 $93,503 $390,835 $334,866 $259,130 $55,969 $400,000 $196,839 $935 $291,277
2017 $291,277 $397,669 $341,563 $327,960 $56,106 $0 -$271,854 $2,913 $22,336
2018 $22,336 $404,640 $348,394 $28,840 $56,246 $0 $27,406 $223 $49,965
2019 $49,965 $411,750 $355,362 $179,740 $56,388 $400,000 $276,648 $500 $327,112
2020 $327,112 $419,002 $362,469 $180,660 $56,533 $0 -$124,127 $3,271 $206,256
2021 $206,256 $426,400 $369,719 $261,600 $56,681 $0 -$204,919 $2,063 $3,400
2022 $3,400 $443,771 $377,113 $32,570 $66,658 $0 $34,088 $34 $37,522
2023 $37,522 $446,555 $384,655 $253,590 $61,899 $400,000 $208,309 $375 $246,206
2024 $246,206 $454,405 $392,349 $304,630 $62,056 $0 -$242,574 $2,462 $6,095
2025 $6,095 $462,412 $400,196 $35,690 $62,217 $0 $26,527 $61 $32,682
2026 $32,682 $470,579 $408,199 $294,810 $62,380 $300,000 $67,570 $327 $100,579
2027 $100,579 $478,910 $416,363 $37,940 $62,547 $0 $24,607 $1,006 $126,191
2028 $126,191 $487,408 $424,691 $124,100 $62,717 $0 -$61,383 $1,262 $66,070
2029 $66,070 $496,075 $433,185 $40,300 $62,890 $0 $22,590 $661 $89,321
2030 $89,321 $504,915 $441,848 $216,550 $63,067 $300,000 $146,517 $893 $236,731
2031 $236,731 $513,933 $450,685 $179,190 $63,248 $0 -$115,942 $2,367 $123,157
2032 $123,157 $539,835 $459,699 $44,120 $80,136 $0 $36,016 $1,232 $160,404
2033 $160,404 $549,217 $468,893 $295,480 $80,324 $400,000 $184,844 $1,604 $346,852
2034 $346,852 $558,786 $478,271 $291,870 $80,515 $0 -$211,355 $3,469 $138,966
2035 $138,966 $568,547 $487,836 $298,300 $80,711 $200,000 -$17,589 $1,390 $122,766
2036 $122,766 $578,503 $497,593 $194,790 $80,910 $0 -$113,880 $1,228 $10,114
$11,412,336 $9,909,028 $4,422,400 $1,503,308 $2,700,000
(e)
Annual CRF
Contribution
(Increases as
per the
outlined
scenario)
(f)
Special
Assessment
(g)
Surplus/
Deficit
(h)
Interest
Earned
(i)
Year End
Asset
SCENARIO 2
5% fee increase per for the first 5 years & 2% thereafter, with special basements
Total Asset as of Sept 30, 2011
Inflation
Interest Rate
Year (a)
Opening
Balance
(CRF for Bldg
+ Elevator)
(b)
Annual
Revenue
(Increases as
stated above
for the
scenario)
(c )
Current
Annual
Expenses
(Assumes
annual
increase of
inflation)
(d)
Major
Expenses
Expected
-$0.2
-$0.1
$0.0
$0.1
$0.2
$0.3
$0.4
$0.3
$0.6
$0.7
$0.8
$0.9
$1.0
2012 2013 2014 2013 2016 2017 2018 2019 2020 2021 2022 2023 2024 2023 2026 2027 2028 2029 2030 2031 2032 2033 2034 2033 2036
!
"
#
$
%
&
!
'
(
%
)
%
*
+
,
,
+
"
-
.
%
/+01%&2134.%
561-34+"%7%8%9:%;11%<-6413#1%="4%9>4#%3-?%7:%/@1413A14B%C+$@%'##1##01-$#%
llxed Annual Lxpenses 8ecommended Annual 8ldg Lxpenses 8ecommended Annual Mech/SafeLy/Llec SysLems Lxpenses "Annual 8evenue" C8l



APPENDIX E
SCENARIO 3 – FINANCIAL ANALYSIS TABLE
AND GRAPH
Total Asset as of Sept 30, 2011 $195,617 Fee Increases: 20.0%
Inflation 2% 5.0%
Interest Rate 1% 2.5%
[ b - c ] [b - c - d + f] [a + g + h]
2012 $195,617 $370,412 $309,364 $130,000 $61,048 $0 -$68,952 $1,956 $128,621
2013 $128,621 $386,476 $315,551 $24,720 $70,924 $0 $46,204 $1,286 $176,111
2014 $176,111 $403,343 $321,863 $277,510 $81,481 $300,000 $103,971 $1,761 $281,843
2015 $281,843 $421,054 $328,300 $108,310 $92,754 $0 -$15,556 $2,818 $269,106
2016 $269,106 $430,352 $334,866 $259,130 $95,486 $0 -$163,644 $2,691 $108,153
2017 $108,153 $439,882 $341,563 $327,960 $98,319 $300,000 $70,359 $1,082 $179,594
2018 $179,594 $449,651 $348,394 $28,840 $101,257 $0 $72,417 $1,796 $253,806
2019 $253,806 $459,664 $355,362 $179,740 $104,302 $0 -$75,438 $2,538 $180,907
2020 $180,907 $469,928 $362,469 $180,660 $107,458 $0 -$73,202 $1,809 $109,514
2021 $109,514 $480,448 $369,719 $261,600 $110,729 $200,000 $49,129 $1,095 $159,738
2022 $159,738 $501,057 $377,113 $32,570 $123,943 $0 $91,373 $1,597 $252,708
2023 $252,708 $512,109 $384,655 $253,590 $127,454 $0 -$126,136 $2,527 $129,099
2024 $129,099 $523,438 $392,349 $304,630 $131,089 $200,000 $26,459 $1,291 $156,849
2025 $156,849 $535,050 $400,196 $35,690 $134,854 $0 $99,164 $1,568 $257,582
2026 $257,582 $546,952 $408,199 $294,810 $138,753 $0 -$156,057 $2,576 $104,101
2027 $104,101 $559,152 $416,363 $37,940 $142,789 $0 $104,849 $1,041 $209,990
2028 $209,990 $571,657 $424,691 $124,100 $146,966 $0 $22,866 $2,100 $234,956
2029 $234,956 $584,475 $433,185 $40,300 $151,290 $0 $110,990 $2,350 $348,296
2030 $348,296 $597,613 $441,848 $216,550 $155,764 $0 -$60,786 $3,483 $290,993
2031 $290,993 $611,079 $450,685 $179,190 $160,394 $0 -$18,796 $2,910 $275,107
2032 $275,107 $636,673 $459,699 $44,120 $176,974 $0 $132,854 $2,751 $410,712
2033 $410,712 $650,821 $468,893 $295,480 $181,928 $0 -$113,552 $4,107 $301,268
2034 $301,268 $665,323 $478,271 $291,870 $187,052 $0 -$104,818 $3,013 $199,463
2035 $199,463 $680,188 $487,836 $298,300 $192,351 $0 -$105,949 $1,995 $95,509
2036 $95,509 $695,424 $497,593 $194,790 $197,831 $0 $3,041 $955 $99,505
$13,182,220 $9,909,028 $4,422,400 $3,273,192 $1,000,000
SCENARIO 3
20% initial increase, 5% increase for 3 years, and 2.5% thereafter, 2 Assessments
Year (a)
Opening
Balance
(CRF for Bldg
+ Elevator)
(b)
Annual
Revenue
(Increases as
stated above
for the
scenario)
(c )
Current
Annual
Expenses
(Assumes
annual
increase of
inflation)
(d)
Major
Expenses
Expected
(e)
Annual CRF
Contribution
(Increases as
per the
outlined
scenario)
(f)
Special
Assessment
(g)
Surplus/
Deficit
(h)
Interest
Earned
(i)
Year End
Asset
-$0.2
-$0.1
$0.0
$0.1
$0.2
$0.3
$0.4
$0.3
$0.6
$0.7
$0.8
$0.9
$1.0
2012 2013 2014 2013 2016 2017 2018 2019 2020 2021 2022 2023 2024 2023 2026 2027 2028 2029 2030 2031 2032 2033 2034 2033 2036
C
o
s
t

(
C
A
N

5

M
|
|
|
|
o
n
)

1|me (¥ear)
Scenar|o 3 - 20¼ In|na| Iee Increase, S¼ Increase for 3 years and 2.S¼
1hereaher, w|th 4 Assessments
llxed Annual Lxpenses 8ecommended Annual 8ldg Lxpenses 8ecommended Annual Mech/SafeLy/Llec SysLems Lxpenses "Annual 8evenue" C8l



APPENDIX F
SCENARIO 4 – FINANCIAL ANALYSIS TABLE
AND GRAPH


Total Asset as of Sept 30, 2011 $195,617 Fee Increases: 25.0%
Inflation 2% 10.0%
Interest Rate 1% 0.0%
[ b - c ] [b - c - d + f] [a + g + h]
2012 $195,617 $383,799 $309,364 $130,000 $74,434 $0 -$55,566 $1,956 $142,007
2013 $142,007 $417,265 $315,551 $24,720 $101,714 $0 $76,994 $1,420 $220,421
2014 $220,421 $454,079 $321,863 $277,510 $132,216 $0 -$145,294 $2,204 $77,332
2015 $77,332 $494,574 $328,300 $108,310 $166,274 $0 $57,964 $773 $136,069
2016 $136,069 $539,118 $334,866 $259,130 $204,252 $0 -$54,878 $1,361 $82,552
2017 $82,552 $588,117 $341,563 $327,960 $246,554 $0 -$81,406 $826 $1,972
2018 $1,972 $588,117 $348,394 $28,840 $239,723 $0 $210,883 $20 $212,874
2019 $212,874 $588,117 $355,362 $179,740 $232,755 $0 $53,015 $2,129 $268,018
2020 $268,018 $588,117 $362,469 $180,660 $225,647 $0 $44,987 $2,680 $315,685
2021 $315,685 $588,117 $369,719 $261,600 $218,398 $0 -$43,202 $3,157 $275,640
2022 $275,640 $597,943 $377,113 $32,570 $220,830 $0 $188,260 $2,756 $466,656
2023 $466,656 $597,943 $384,655 $253,590 $213,287 $0 -$40,303 $4,667 $431,020
2024 $431,020 $597,943 $392,349 $304,630 $205,594 $0 -$99,036 $4,310 $336,295
2025 $336,295 $597,943 $400,196 $35,690 $197,747 $0 $162,057 $3,363 $501,715
2026 $501,715 $597,943 $408,199 $294,810 $189,743 $0 -$105,067 $5,017 $401,666
2027 $401,666 $597,943 $416,363 $37,940 $181,579 $0 $143,639 $4,017 $549,322
2028 $549,322 $597,943 $424,691 $124,100 $173,252 $0 $49,152 $5,493 $603,968
2029 $603,968 $597,943 $433,185 $40,300 $164,758 $0 $124,458 $6,040 $734,466
2030 $734,466 $597,943 $441,848 $216,550 $156,095 $0 -$60,455 $7,345 $681,355
2031 $681,355 $597,943 $450,685 $179,190 $147,258 $0 -$31,932 $6,814 $656,236
2032 $656,236 $609,734 $459,699 $44,120 $150,035 $0 $105,915 $6,562 $768,714
2033 $768,714 $609,734 $468,893 $295,480 $140,841 $0 -$154,639 $7,687 $621,762
2034 $621,762 $609,734 $478,271 $291,870 $131,463 $0 -$160,407 $6,218 $467,573
2035 $467,573 $609,734 $487,836 $298,300 $121,898 $0 -$176,402 $4,676 $295,847
2036 $295,847 $609,734 $497,593 $194,790 $112,141 $0 -$82,649 $2,958 $216,157
$14,257,520 $9,909,028 $4,422,400 $4,348,492 $0
(h)
Interest
Earned
(i)
Year End
Asset
SCENARIO 4
25% initial fee increase, 10% increases for 5 years, and 0% thereafter, no assessments
Year (a)
Opening
Balance
(CRF for
Bldg +
Elevator)
(b)
Annual
Revenue
(Increases as
stated above
for the
scenario)
(c )
Current
Annual
Expenses
(Assumes
annual
increase of
inflation)
(d)
Major
Expenses
Expected
(e)
Annual CRF
Contribution
(Increases as
per the
outlined
scenario)
(f)
Special
Assessment
(g)
Surplus/
Deficit
-$0.2
-$0.1
$0.0
$0.1
$0.2
$0.3
$0.4
$0.3
$0.6
$0.7
$0.8
$0.9
$1.0
2012 2013 2014 2013 2016 2017 2018 2019 2020 2021 2022 2023 2024 2023 2026 2027 2028 2029 2030 2031 2032 2033 2034 2033 2036
!
"
#
$
%
&
!
'
(
%
)
%
*
+
,
,
+
"
-
.
%
/+01%&2134.%
561-34+"%7%8%9:;%<-+=3,%<-6413#1>%?@;%<-6413#1%A"4%:%2134#>%>%3-B%@;%/C1413D14>%
("%'##1##01-$#%
llxed Annual Lxpenses 8ecommended Annual 8ldg Lxpenses 8ecommended Annual Mech/SafeLy/Llec SysLems Lxpenses "Annual 8evenue" C8l