O.C.S.C.C. No. 903 President’s Report Annual General Meeting – January 22, 2014 1.

O.C.S.C.C. No. 903President’s Report

Annual General Meeting – January 22, 20141

Year in ReviewYear in Review

• Performance AuditPerformance Audit• Reserve Fund StudyReserve Fund Study• 2013-2014 Budget Summary2013-2014 Budget Summary• What ElseWhat Else• General RemindersGeneral Reminders

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Performance AuditPerformance Audit

• The Condominium Act, 1998, requires that The Condominium Act, 1998, requires that the Board of Directors commission a the Board of Directors commission a Performance Audit (PA) to determine if there Performance Audit (PA) to determine if there are any deficiencies in the construction of the are any deficiencies in the construction of the common elements. common elements.

– The Board issued a contract to Morrison Hershfield The Board issued a contract to Morrison Hershfield (MH)to execute the PA(MH)to execute the PA

• Must be completed in time to submit a claim Must be completed in time to submit a claim to Tarion Warranty Corporation.to Tarion Warranty Corporation.

– 1yr Warranty - By May 31, 2013 (COMPLETED)1yr Warranty - By May 31, 2013 (COMPLETED)– 2 yr Warranty – water penetration and major items2 yr Warranty – water penetration and major items– 7 yr Warranty – structural defects7 yr Warranty – structural defects

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• Urban Capital has 18 months to repair from Urban Capital has 18 months to repair from the date the PA is filed with Tarionthe date the PA is filed with Tarion

• Priority 1 – health and safetyPriority 1 – health and safety• Priority 2 – deterioration of the buildingPriority 2 – deterioration of the building• Priority 3 - minor in naturePriority 3 - minor in nature• Priority 4 – aesthetic in naturePriority 4 – aesthetic in nature• Priority 5 – deviated from contract drawingsPriority 5 – deviated from contract drawings

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• Report captured 174 deficienciesReport captured 174 deficiencies– Priority 1 – 21Priority 1 – 21– Priority 2 – 37Priority 2 – 37– Priority 3 – 61Priority 3 – 61– Priority 4 – 53Priority 4 – 53– Priority 5 – 2 Priority 5 – 2

• MH indicated – PA is Middle Level in MH indicated – PA is Middle Level in comparison of other buildingscomparison of other buildings

• To DateTo Date– Approximately 50% of the deficiencies have been addressed and closedApproximately 50% of the deficiencies have been addressed and closed– Meet with Doran/Urban Capital on a regular basis to reviewMeet with Doran/Urban Capital on a regular basis to review– Expect to address most if not all items by May 31, 2014Expect to address most if not all items by May 31, 2014– No major items of concernNo major items of concern– Working with Urban Capital on approach to address the reliability Working with Urban Capital on approach to address the reliability

concerns of the Gladstone Garage Door concerns of the Gladstone Garage Door 5

Reserve Fund StudyReserve Fund Study

•The Condominium Act, 1998, requires all The Condominium Act, 1998, requires all condominium corporations to establish a condominium corporations to establish a reserve fund (RF) study within the year reserve fund (RF) study within the year following registration, and periodic reviews following registration, and periodic reviews of the RF every three (3) years afterwards.of the RF every three (3) years afterwards.•The purpose of a RFS:The purpose of a RFS:

– 30 year forecast of future major repairs or 30 year forecast of future major repairs or replacement of common elements of the replacement of common elements of the building; building; – To lower risk of unexpected repairs; and;To lower risk of unexpected repairs; and;– To ensure that proper funds will be available To ensure that proper funds will be available for those repairs when the time comes.for those repairs when the time comes. 6


• The Board issued a contract to Morrison The Board issued a contract to Morrison Hershfield (MH)to execute the RFSHershfield (MH)to execute the RFS•MH RecommendationMH Recommendation

- Assumptions – Inflation of 2%, Interest of 3%Assumptions – Inflation of 2%, Interest of 3%- The original 1The original 1stst year (2012-2013) annual contribution of year (2012-2013) annual contribution of

$112,406 (15% of the Operating Budget) be increased to $112,406 (15% of the Operating Budget) be increased to $294,504 (162%) for fiscal year 2013-2014 and then $294,504 (162%) for fiscal year 2013-2014 and then increased by inflation for fiscal year 2014-2015 and 2015-increased by inflation for fiscal year 2014-2015 and 2015-20162016

• BenefitsBenefits– If such funding is not achieved, future condominium If such funding is not achieved, future condominium

owners can expect the need for increased condo fees owners can expect the need for increased condo fees and/or special assessments to address major renewal and/or special assessments to address major renewal activitiesactivities

– Healthy Reserve Fund is attractive to new investorsHealthy Reserve Fund is attractive to new investors 7


• Comparison of Recent Year 1 RFS conducted by MH

% Increase

Building 1 180%Building 2 453%Building 3 220%Building 4 138%Building 5 402%Building 6 475%Building 7 552%Building 8 - Central

162%

Building 9 170%Building 10 309%Building 11 233%

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•ObjectiveObjectivea)a) Setup a schedule for the anticipated repair and Setup a schedule for the anticipated repair and

replacement of common element itemsreplacement of common element itemsb)b) Set up a special account for major repair items and Set up a special account for major repair items and

replacement of common elements and assets of the replacement of common elements and assets of the CorporationCorporation

c)c) To determine the annual contribution necessary to To determine the annual contribution necessary to maintain an adequate balance for the 30 year period of maintain an adequate balance for the 30 year period of this study, andthis study, and

d)d) Satisfy the legislation regarding the Condominium Act, Satisfy the legislation regarding the Condominium Act, 1998 and related regulations1998 and related regulations

e)e) Update every 3 years (paper followed by full Update every 3 years (paper followed by full inspection)inspection)

•Small Capital Expenditures (under $2,500) will be Small Capital Expenditures (under $2,500) will be covered by the Operating Budgetcovered by the Operating Budget 9

30 Year Reserve Fund Cash Flow

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Year Ending In May 30

Opening Balance

Annual Contribution*

Percent Increase over

Previous Year

Other ContributionEstimated Future

Inflated Expenditures

Projected Interest Earned

Closing Balance

2013 112,406 143,630 256,036 2014 256,036 294,504 162.0% 12,099 562,638 2015 562,638 300,394 2.0% 21,385 884,417 2016 884,417 306,402 2.0% 6,367 31,033 1,215,485 2017 1,215,485 312,530 2.0% 40,050 40,552 1,528,516 2018 1,528,516 318,780 2.0% 50,637 1,897,934 2019 1,897,934 325,156 2.0% 70,948 60,751 2,212,892 2020 2,212,892 331,659 2.0% 71,362 2,615,913 2021 2,615,913 338,292 2.0% 4,687 83,481 3,033,000 2022 3,033,000 345,058 2.0% 69,315 95,126 3,403,869 2023 3,403,869 351,959 2.0% 107,395 3,863,224 2024 3,863,224 358,998 2.0% 289,706 116,936 4,049,452 2025 4,049,452 366,178 2.0% 12,682 126,786 4,529,734 2026 4,529,734 373,502 2.0% 5,174 141,417 5,039,478 2027 5,039,478 380,972 2.0% 935,510 142,866 4,627,806 2028 4,627,806 388,591 2.0% 161,504 142,240 4,997,134 2029 4,997,134 396,363 2.0% 155,859 5,549,357 2030 5,549,357 404,291 2.0% 172,545 6,126,192 2031 6,126,192 412,376 2.0% 19,995 189,671 6,708,245 2032 6,708,245 420,624 2.0% 793,962 195,647 6,530,554 2033 6,530,554 429,036 2.0% 153,053 200,056 7,006,594 2034 7,006,594 437,617 2.0% 1,332,271 196,778 6,308,718 2035 6,308,718 446,369 2.0% 97,397 194,496 6,852,187 2036 6,852,187 455,297 2.0% 567,684 203,880 6,943,680 2037 6,943,680 464,403 2.0% 4,075,780 154,140 3,486,442 2038 3,486,442 473,691 2.0% 1,368,265 91,175 2,683,042 2039 2,683,042 483,165 2.0% 878,545 74,561 2,362,223 2040 2,362,223 492,828 2.0% 3,414 78,208 2,929,845 2041 2,929,845 502,684 2.0% 6,964 95,331 3,520,896 2042 3,520,896 512,738 2.0% 3,599,637 59,323 493,321

Reserve Fund – Investment PlanReserve Fund – Investment Plan

•Investment RulesInvestment Rules– No RiskNo Risk– All investments must be 100% guaranteed (federal or All investments must be 100% guaranteed (federal or provincial)provincial)– Government (Federal or Provincial) – Investment FundsGovernment (Federal or Provincial) – Investment Funds– Banks ($100,000 CDIC insured) - GICsBanks ($100,000 CDIC insured) - GICs

•Current InvestmentsCurrent Investments- $95,000, 18 month (2.05%) – Home Trust GIC- $95,000, 18 month (2.05%) – Home Trust GIC

- $95,000, 24 month (1.73%) – Dundee Wealth Bank GIC- $95,000, 24 month (1.73%) – Dundee Wealth Bank GIC

- $95,000, 24 month (1.95%) – Equity Financial Trust GIC- $95,000, 24 month (1.95%) – Equity Financial Trust GIC

- $95,000, 36 month (2.01%) – Manulife GIC- $95,000, 36 month (2.01%) – Manulife GIC

•Future Investments - $95,000 GICsFuture Investments - $95,000 GICs (every 4 months) (every 4 months)

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2013-2014 Budget - Summary2013-2014 Budget - Summary

• 24.55% overall increase in Condo Fees24.55% overall increase in Condo Fees• 47cents per square foot47cents per square foot

• 3.94% increase to operating budget3.94% increase to operating budget• LegalLegal• General repairs and maintenanceGeneral repairs and maintenance• Contingency Contingency

• 162% increase to Reserve Fund 162% increase to Reserve Fund contributionscontributions

• Recommended by Morrison HershfieldRecommended by Morrison Hershfield• Required, per Condo Act, 1998Required, per Condo Act, 1998• 38% of Operating Budget (previously 15%)38% of Operating Budget (previously 15%)

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A Year In Review (continued)A Year In Review (continued)

•20+ Board Meetings and 1000’s of 20+ Board Meetings and 1000’s of emails emails • Amenity Room BookingAmenity Room Booking• Bylaws and Rules (e.g. bikes, Bylaws and Rules (e.g. bikes, wreaths, balcony plants, pet wreaths, balcony plants, pet business on balcony)business on balcony)•RF Investment PlanRF Investment Plan• EnerCareEnerCare

–Errors (missing units, incorrect meter Errors (missing units, incorrect meter readings - $50,000+ errorreadings - $50,000+ error–Early Contract Cancellation - $726 per Early Contract Cancellation - $726 per unitunit

• Information Sessions (Nov 20 and Information Sessions (Nov 20 and May 14)May 14)• Audited Financial StatementAudited Financial Statement• Shared Services Agreement Shared Services Agreement (electricity, garage door, water, (electricity, garage door, water, gas)gas)

• Replace BBQ (Natural Gas)Replace BBQ (Natural Gas)• Additional Bike RacksAdditional Bike Racks• Improved Security – cameras Improved Security – cameras

and weekend guardand weekend guard• Landscaping UpgradesLandscaping Upgrades• Car Wash StationsCar Wash Stations• Garage Doors – Upgraded Garage Doors – Upgraded

SpringsSprings• Fitness Room – Power UpgradesFitness Room – Power Upgrades• Electricity – Regulated Price Electricity – Regulated Price

Plan from Wholesale RatePlan from Wholesale Rate• Leed Silver Leed Silver • Heating Ventilation and Air Heating Ventilation and Air

Conditioning (HVAC)Conditioning (HVAC)• Heat Recovery Ventilator (HRV)Heat Recovery Ventilator (HRV)

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A Year In Review (continued)A Year In Review (continued)

•Garbage – new pull cart $3k Garbage – new pull cart $3k per month savings for winching per month savings for winching fees, chute blockage fees, chute blockage (monitoring by weekend (monitoring by weekend security)security)• Fire Extinguisher TheftsFire Extinguisher Thefts• Glued door bolts on Glued door bolts on emergency stairwellemergency stairwell•ContractsContracts

Snow RemovalSnow RemovalGarage Door MaintenanceGarage Door MaintenanceFitness Room MaintenanceFitness Room MaintenanceElevator MaintenanceElevator MaintenanceCleaning (General and Carpets)Cleaning (General and Carpets)Property ManagementProperty ManagementWindow Cleaning (annual)Window Cleaning (annual)Garage Floor Cleaning (2)Garage Floor Cleaning (2)Winter CarpetsWinter Carpets

• Directory Board in Lobbies SplitDirectory Board in Lobbies Split• Modifications to Amenity Room Modifications to Amenity Room

– Light Sensors, AV Equipment – Light Sensors, AV Equipment and Controlsand Controls

• AV Equipment Theft – AV Equipment Theft – improved securityimproved security

• Pilot Web SitePilot Web Site• VirtuCar VirtuCar • Common Elements and Common Elements and

Exclusive Use Common Exclusive Use Common ElementsElements

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Reminders for ResidentsReminders for Residents

• Balconies & Terraces:Balconies & Terraces:– Permitted: Plants (completed form), seasonal furniture.Permitted: Plants (completed form), seasonal furniture.– Not Permitted: items on railings, bikes, non-patio items Not Permitted: items on railings, bikes, non-patio items

(e.g. tires, picnic coolers, sports equipment, boxes), dead (e.g. tires, picnic coolers, sports equipment, boxes), dead plants, laundry drying, etc.plants, laundry drying, etc.

– Warnings and Administration Costs will be issuedWarnings and Administration Costs will be issued

• Noise & Disturbances:Noise & Disturbances:– All residents are entitled to quiet enjoyment of their unit. All residents are entitled to quiet enjoyment of their unit. – Report disturbances to building staff.Report disturbances to building staff.– Report to Ottawa By-Law (3-1-1) and PM, if no staff Report to Ottawa By-Law (3-1-1) and PM, if no staff

onsite. onsite. – Keep detailed log of disturbance.Keep detailed log of disturbance.

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Reminders for Residents Reminders for Residents (cont’d)(cont’d)

• Smoking:Smoking:– Not permitted in any common area, including 2Not permitted in any common area, including 2ndnd level level

courtyardcourtyard– Please do not throw cigarette butts in the plants and from Please do not throw cigarette butts in the plants and from

balconiesbalconies– Respect your neighboursRespect your neighbours

• Control Your Pets: Control Your Pets: – – not allowed in Courtyardnot allowed in Courtyard

– ‘– ‘no business on exterior landscaping beds’no business on exterior landscaping beds’

• Damage & Theft:Damage & Theft:– Residents are responsible for the actions of their guestsResidents are responsible for the actions of their guests– Theft and damage of condo assets costs everyoneTheft and damage of condo assets costs everyone– Report suspicious activity to building staff or PMReport suspicious activity to building staff or PM

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Backup Slide

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Board MembersBoard Members• Marty van Gaal (3 year term), PresidentMarty van Gaal (3 year term), President

• Paul Gallagher (2 year term), DirectorPaul Gallagher (2 year term), Director• Krista Nonnenmacher–Biddiscombe (1 year term), Krista Nonnenmacher–Biddiscombe (1 year term),

SecretarySecretary

Property Manager Property Manager • Stefania Parnanzone, Taggart Realty ManagementStefania Parnanzone, Taggart Realty Management

ConciergeConcierge• Samra MehmedagicSamra Mehmedagic

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June 1, 2013 to May 31, 2014 June 1, 2013 to May 31, 2014 BudgetBudget

Categories Notes Year 1 (Budget) Year 2 (Budget)

Revenue $ 861,778.72 $ 1,073,377.50

Common Element Fees $ 861,778.72 $ 1,073,377.50

Administration $ 119,725.20 $ 115,287.44

ManagementTaggart Realty Management $ 97,225.20 $ 87,787.44

Insurance Aviva $ 20,000.00 $ 25,000.00 Office Expenses $ 2,500.00 $ 2,000.00 Bank Charges $ - $ 500.00 Utilities $ 262,339.00 $ 272,600.00

ElectricityEnerCare Connections $ 87,750.00 $ 110,000.00

Water City of Ottawa $ 65,000.00 $ 66,000.00

Gas Enbridge $ 106,589.00 $ 75,000.00 Utilities Contigency $ - $ 20,000.00

Telephones/Wireless/Cable Bell/ Rogers $ 3,000.00 $ - Generator Fuel Petro-Canada $ - $ 1,600.00 Consulting $ 22,215.00 $ 19,500.00

LegalNelligan O'Brien Payne $ 1,130.00 $ 10,000.00

Audit (Financial) WPGCA $ 5,085.00 $ 6,500.00

Reserve Fund Study Morrison Hershfield $ 6,000.00 $ -

Performance Audit Morrison Hershfield $ 10,000.00 $ - General Consulting TBD $ - $ 3,000.00

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BUDGET - OCSCC 903 June 1, 2013 to May 31, 2014

Categories Notes Year 1 (Budget) Year 2 (Budget) Notes:Revenue $ 861,778.72 $ 1,073,377.50 Common Element Fees $ 861,778.72 $ 1,073,377.50 Administration 119,725.20$ 115,287.44$

Management Taggart Realty Management 97,225.20$ 87,787.44$ fee for yrs 2 based on new proposal

Insurance Aviva 20,000.00$ 25,000.00$ Office Expenses 2,500.00$ 2,000.00$ Bank Charges -$ 500.00$ Utilities 262,339.00$ 272,600.00$

Electricity EnerCare Connections 87,750.00$ 110,000.00$

Based on current invoice, but still in dispute with EnerCare.

Water City of Ottawa 65,000.00$ 66,000.00$ Current to February 2012Gas Enbridge 106,589.00$ 75,000.00$ Current to April 2, 2013Utilities Contigency -$ 20,000.00$

Telephones/Wireless/Cable Bell/ Rogers 3,000.00$ -$ Complimentary services from FibreStream

Generator Fuel Petro-Canada -$ 1,600.00$ Consulting 22,215.00$ 19,500.00$ Legal Nelligan O'Brien Payne 1,130.00$ 10,000.00$ Audit (Financial) WPGCA 5,085.00$ 6,500.00$

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Other 101,703.60$ 131,823.28$

Other/Contigency 4,500.00$ 30,000.00$ Insurance reserve, contingency

Website -$ 4,000.00$ TBDGreen Building Cost Recovery Loan 97,203.60$ 97,823.28$ $8151.94/monthStaff 80,000.00$ 77,800.00$

Staff Salaries Samra Mehmedagic 80,000.00$ 42,000.00$

Salary, 3 weeks holiday coverage, 26 weeks of after hour coverage

Employee Health BenefitsBlue Cross -$ 800.00$ WSIB -$ 2,500.00$ After-hours On-Call Ihsan Ismail -$ 7,500.00$ 26 weeks (carrying Weekend Security/ Mobile PatrolTotal Security Management -$ 25,000.00$ 3 evenings per week SUB-TOTAL 749,372.80$ 823,310.72$ 2012-2013 Operating Fund Surplus 44,437.22$ TOTAL (excluding Reserve Fund) 749,372.80$ 778,873.50$ 3.94%RESERVE FUND CONTRIBUTION 112,405.92$ 294,504.00$ 162.00%GRAND TOTAL 861,778.72$ 1,073,377.50$ 24.55%

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O.C.S.C.C. No. 903 President’s Report Annual General Meeting – January 22, 2014 1.

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