SAMPLE REPORT. January 1, 201#

Transcription

1 January 1, 201# The Strata Council of Townhouse Village, BCS#### c/o Mr. John Smith, Strata Management Company XYZ 1234 Someplace Street City BC V0V 1A1 Dear Strata Council: The enclosed Depreciation Report has been prepared to provide pertinent information about the property at Townhouse Village, BCS####, 1234 Townhouse Drive, City, BC. This report is not technically exhaustive. The entire study must be read in its entirety to understand the findings contained within. Sampling information in the study may put it out of context. We recommend the study be updated every three years to keep it current. The study will not be released to anyone without your permission. We would appreciate your feedback about our services. Please take a few moments to complete the enclosed questionnaire and return it now by fax, to Thank you for giving us the opportunity to be of service. Should you have any questions regarding this study, please do not hesitate to call us. Sincerely, Henry Khuu, B.Sc.(Mech.), RHI.

2 CLIENT QUESTIONNAIRE Please help us! We truly appreciate your feedback both good and bad. Please take a few minutes to complete this questionnaire. Use additional pages if needed. Return by fax to Thank you! 1. Where did you hear about us? 2. Do you know of any organizations that may benefit from our service? 3. Please rate the following on a scale of: 1 (poor) to 5 (excellent) Overall satisfaction with service: Response time: Engineer s communication skills: Usefulness of information provided: Value of service vs. fee: Ease of extracting information from report: Likelihood of using our services again: Was there anything about our service that you especially liked? 5. Was there anything about our service that you did not like? 6. Are there additional products or services that would be beneficial?! Precise building measurements with report! Report delivered as hard copy with accompanying CD ROM version! Other! Building improvement design, specification writing and project management services! Property management services! Referrals of qualified contractors Name: John Smith Company: Strata Management Company XYZ Telephone: Address Inspected: Townhouse Village, BCS####, 1234 Townhouse Drive, City! I would be happy to serve as a reference to other who inquire about your service.

3 Townhouse Village, BCS#### DEPRECIATION 1234 Townhouse Drive City, BC January 1, 201# FINAL SUBMITTED DATE: January 1, 201# Coast Meridian Road, City, BC V3C 6G5 Metro Vancouver: Abbotsford & East:

4 Table of Contents 1.0 SUMMARY: INTRODUCTION: COMPONENT DESCRIPTION: BUILDING OCCUPANT SURVEYS: CAPITAL RENEWAL PROJECTIONS: SCHEDULE OF RENEWALS: RESERVE FUND CASH FLOW PROJECTIO4NS: DATA ANALYSIS: CLOSING COMMENTS: APPENDIX A PHOTOGRAPHS APPENDIX B CAPITAL RENEWAL PROJECTIONS APPENDIX C SCHEDULE OF RENEWALS APPENDIX D RESERVE FUND CASH FLOW PROJECTION AT RECOMMENDED CONTRIBUTION LEVEL SCENARIO 1 APPENDIX E RESERVE FUND CASH FLOW PROJECTION AT RECOMMENDED CONTRIBUTION LEVEL SCENARIO 2 APPENDIX F RESERVE FUND CASH FLOW PROJECTION AT RECOMMENDED CONTRIBUTION LEVEL SCENARIO 3 APPENDIX G RESERVE FUND CASH FLOW PROJECTION AT PRESENT CONTRIBUTION LEVEL APPENDIX H MAINTENANCE SCHEDULE STATEMENTS OF QUALIFICATIONS GLOSSARY CDW Engineering Table of Contents

5 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# January 1, 201# DEPRECIATION Property: 1234 Townhouse Drive, City, BC 1.0 SUMMARY: The present annual contribution of $35,000 is not considered adequate. Based on the given average rate of return of 1 percent for the reserve fund investment and an annual inflation rate of 2 percent, annual contributions starting at $135,000 to the reserve fund should be adequate. The contributions must be indexed to annual inflation. The annual contribution will need to be increased annually by the inflation rate plus 3 percent from Years 2014 to 2023 and by the inflation rate thereafter. The general condition of the property appears to be satisfactory. The general maintenance of the property appears to be adequate. Improvements that could extend the life expectancy of the common components include the following: " Repair gutter joints. " Repair and re-paint wood fences. " Improve exhaust duct fan connections at the attic roof vents. " Improve loose cladding and trim 2.0 INTRODUCTION: 2.1 Authorization and Scope: As per the request of Mr. John Smith of Strata Management Company XYZ and in accordance with our Proposal dated January 1, 201#, a Depreciation Report was prepared for Townhouse Village, 1234 Townhouse Drive, City, British Columbia. This report complies with The Strata Property Act, [SBC 1998] CHAPTER 43. This study is intended for the exclusive use of our client. Use of the information obtained within this study by another party is not intended and, therefore, we accept no responsibility for such use. The Depreciation Report is not technically exhaustive. While some comments on building construction may be made with respect to life expectancies, this study is not a technical evaluation of the property. Before any major repairs or replacements are undertaken, we recommend that a detailed condition survey be performed and a plan of action developed. The site inspection was carried out on January 1, 201#, with access to six units in order to sample attics, window assembly and balcony details. Our inspection was limited to components that were readily visible and not obstructed by storage, vegetation, etc. CDW Engineering Page 1

6 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# The units that were sampled during the inspection are as follows: " Unit 2 " Unit 13 " Unit 17 " Unit 30 " Unit 48 " Unit 50. The following defined terms are used to describe the condition of the components and systems reviewed: # Satisfactory Performing its intended function; no major defects noted. # Serviceable Performing its intended function, but has visible defects or is aging. It will require minor to moderate repairs. # Fair Barely performing its intended function. Has visible defects or is aging and will require moderate to major repairs in the short term. # Poor Not properly performing its intended function. At or beyond its useful life. Component requires major repair or replacement. Only the items specifically addressed in this study were examined. No comment is offered on building code and building bylaw compliance, or on environmental concerns. 2.2 Property Description: The subject property consists of 16 blocks of three-storey, multi-family residential buildings, and totaling 71 townhouse units. There are two entrances into the property located at the northeast and southeast sides. The buildings are approximately eight years old and of wood-frame construction. The exterior walls have vinyl and artificial stone cladding. There are sloped asphalt shingle roofs. There is a vehicle attached garage for each of the townhouse units. There are visitors parking stalls located at various locations along the roadway in the complex. There are concrete patios, wood-frame balconies and privacy fences at the townhouse complex. The Strata Plans indicated that the complex was completed in four separate phases. For the purpose of this report, Skeena Street runs along the east perimeter of the complex. A more detail description of the building components is provided in Section 3.0 of this study. CDW Engineering Page 2

7 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# 2.3 Document Review: As part of the Depreciation Report, a request to review all building plans, specifications, warranties and records, as well as the corporation declaration and by-laws, was made. The following was available for our review: Strata Plan: " Strata Plan " Corporation Bylaws " Financial Sheets " Townhouse Village Owner-Occupant Questionnaire Strata BCS1135 Phase 1 dated January 28, Strata BCS1135 Phase 2 dated April 14, Strata BCS1135 Phase 3 dated July 11, Strata BCS1135 Phase 4 dated November 2, The Strata Plans provided approximate sizes for each of the townhouse blocks Corporation Bylaws: Strata Plan LMS4302, Madison Gardens (1234 Townhouse Drive, City, British Columbia) Standard Bylaws and Amendments April 26, These bylaws lay out the general corporation structure and provide no salient information for the purposes of this study Financial Statements: Owners Strata Plan BCS1135 Townhouse Village Operating Budget dated March 1, 2012 February 28, 201#. Strata Management Company XYZ Income Statement - Townhouse Village For the 8 months ending October 31, Strata Management Company XYZ Balance Sheet - Townhouse Village For the 8 months ending October 31, General Ledger Detail Summary from March 2012 October These statements were taken into consideration but did not provide any significant addition information Townhouse Village Questionnaire: Townhouse Village Owner-Occupant Questionnaire dated November 2, These comments were taken into consideration during the site inspection. The questionnaires did not provide any significant addition information. CDW Engineering Page 3

8 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# 3.0 COMPONENT DESCRIPTION: ROOF In this section, the components included in this study are listed, along with a description and recommendations for eventual major repair or replacement. On-site conditions that may have an effect on life expectancy or performance are also noted, where applicable. Improvements to these conditions will help to extend the life expectancy of the components. A1 Asphalt Shingle Replacement The sloped roofs are covered with a single layer of asphalt shingles. The roof vents for the complex are conventional metal and soffit vents. The asphalt shingle installations are approximately eight years old. This type of system has an average life expectancy of 20 years. The lifespan of any sloped roof covering is strongly dependent on the quality of the original material, roof slope and orientation, maintenance level, and weather severity. No major deficiencies were noted at the sloped roof areas. The overall asphalt roof shingle system condition is satisfactory. The maintenance has been good based upon visual inspection. The study allows for the eventual replacement of the asphalt shingle roofs in two separate phases. It is considered at that time that the existing shingles will be removed before adding another layer. There are access hatches to attics within the buildings, located at each of the townhouse units. The roof framing consists of wood roof trusses and oriented strand board sheathing. Roof vents are located at the roof peaks and at the soffit area. Sample inspection of the attics revealed minor discolouration on the underside of the roof towards the exhaust duct connections. It appears that the exhaust duct connections at the roof vents are less than ideal. This should be improved as required. The remaining attics should be further evaluated for proper duct and roof vent connection in the attics. Blown-in fibreglass insulation was noted in the attics, valued at approximately R-40. Sample inspections of the attics revealed no major deficiencies to the insulation. The insulation was generally well distributed and covered the ceiling truss members here. A2 Metal Chimney Vent Replacement - Roof Level There are metal chimneys for the domestic water heaters, and furnaces at the townhouse units. No major deficiencies were noted at these areas. The overall metal chimney condition is satisfactory. Maintenance has been good. The study allows for the ongoing replacement of the metal chimneys. CDW Engineering Page 4

9 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# A3 Aluminum Gutter and Downspout Replacement A4 EXTERIOR A5 The buildings are equipped with prefinished aluminum gutters and downspouts. The downspouts discharge water below grade. It was noted that the gutters at some locations are leaking at the joints. As part of the ongoing maintenance program, the following issues should be addressed on a regular basis: " Cleaning gutters and valleys of organic debris. " Repairing loose downspouts. " Sealing gutter joints. " Improving gutter slope as necessary. The study allows for the eventual replacement of the gutters and downspouts in two separate phases. Fascia Board Replacement There are wood fascia boards located throughout the buildings. The fascia boards are attached to the buildings at the gable ends, roof peaks and the upper and lower roofs, allowing for gutter attachment. The fascia boards are showing some minor paint deterioration at several locations at the complex due to weathering. The study allows for the replacement of the fascia boards. This typically would be done concurrent with shingle and gutter and downspout replacement. Window Replacement The windows throughout are vinyl-framed, double-glazed units with a ½-inch air space between the glass sections. The operable windows are single hung and horizontal slider types. All of the windows that were sampled operate properly with no major deficiencies noted. The study allows for the eventual replacement of the windows in four separate phases. The budget is for window assembly replacement, not just the glazing sections. Replacement always assumes using current technologies, but not necessarily improvements to the existing. For example, if current technology is for double-glazed windows, then that is what would be installed. This is not considered an improvement in that this is considered to be a standard practice. The caulking around the doors and windows is covered elsewhere in this study. CDW Engineering Page 5

10 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# A6 Slider Door Replacement The balcony and patio doors at the residential units consist of vinyl-framed, double-glazed sliding door units. No major deficiencies were noted at these areas. The sliding doors are in satisfactory condition. All doors that were sampled operated properly. The study allows for the eventual replacement of the sliding doors with similar units in four separate phases. The caulking around the doors and windows is covered elsewhere in this study. A7 A8 A9 French Door Replacement The rear wood deck entrances to the townhouse units at Skeena Street side consist of centered double-glazed, solid metal core double-door units. No major deficiencies were noted. The study allows for the eventual replacement of the doors with similar units. The caulking around the doors and windows is covered elsewhere in this study. Entrance Door Replacement - Unit Entrance The entrance door into each residential unit consists of a metal-insulated door unit and standard deadbolt and hardware. These doors are currently in satisfactory condition. All doors that were sampled operated properly. The weather stripping and trim is showing various signs of deterioration depending on the owner s load and care and weather exposure. These areas should be improved as part of the ongoing maintenance program. The study allows for the eventual replacement of these entrance doors. The caulking around the doors and windows is covered elsewhere in this study. Service Door Replacement - Electrical Room The service door into each electrical meter room consists of a standard metal door with standard hardware. These doors are in satisfactory condition. It was noted that some of the more exposed doors are showing signs of minor corrosion and paint deterioration at the wood trims due to weathering over the years. These areas should be improved as part of the ongoing maintenance program. The study allows for the eventual replacement of these doors. A10 Balcony Membrane Replacement The balconies at the townhouse units are covered by a vinyl waterproofing membrane. No major deficiencies were noted at the sampled areas. While regular maintenance programs for the balcony components are necessary, these should all be inspected periodically for any signs of material damage, while the metal railings should be checked for proper attachment to the structure. The study allows for the ongoing replacement of the vinyl membranes and railings. CDW Engineering Page 6

11 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# A11 Railing Replacement There are custom fabricated powder coated hand railings and guardrails located at the balcony areas, window wells and wood staircases and porches throughout the complex. No major deficiencies were noted. The study allows an amount for the eventual replacement of the aluminum railings. A12 Exterior Cladding Replacement An examination of the buildings exposure level is an important factor in the assessment of the performance of the buildings components. Building design with low exposure can expect to perform sufficiently, but may fail in highly exposed locations. Factors that may influence the buildings exposure level include: A13 " Presence or limited overhang protections at the roof level, and their projection length. " The building height and configuration. " The orientation of the building according to the wind-driven rain. " The surrounding topography, vegetation or other buildings. The buildings configuration consists of sloped roofs with overhangs of approximately one to two feet being provided beyond the exterior walls. The vinyl and artificial stone cladding in conjunction with the windows is the primary assembly throughout the buildings, which is installed on backup wood framing. In the majority of cases, the vinyl and artificial stone cladding appears to be in satisfactory condition with no major deficiencies noted. We recommend regular and diligent maintenance to achieve long term performance of the building envelope. There is some loose or missing artificial stone noted at the bottom of the front entry door threshold area at several locations at the complex; i.e.) Unit 33 and 38. These areas should be repaired as required, and as part of the ongoing maintenance program. The study allows for the eventual replacement of exterior cladding in four separate phases. The cost for the professional fee has also been included in the report. The caulking at the exterior cladding is covered elsewhere in this study. Exterior Exhaust Vent Replacement - Wall Mounted There are wall-mounted exhaust vents for the gas fireplaces at the townhouse units. No major deficiencies were noted at these areas. The study allows for the replacement of the wall-mounted exhaust vents for the gas fireplaces. A14 Wood Trim Repair The exteriors of the buildings at the complex consist of vinyl siding, artificial stone, wood trim around the windows and the horizontal wood band. Most of the wood trim, horizontal band and paint were found to be in good condition. Some trim were noted to be loose at several locations; i.e.) Unit 1. These areas should be repaired as part of the ongoing maintenance program. The study allows for the ongoing replacement of the wood trim and horizontal band. CDW Engineering Page 7

12 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# A15 Exterior Caulking Renewal Caulking has been used around all doors, windows, vents and trim at the exterior walls. The caulking at some of the cladding assemblies is showing minor deterioration, depending on the exposure level. The study allows for the ongoing replacement of the caulking. A16 Trim Paint Renewal SITE WORK A17 A18 A19 The exterior of the buildings consists of vinyl siding, windows, doors and wood trim. The weather stripping and trim is showing minor paint deterioration depending on the owner s load and care and weather exposure. The study allows for the ongoing renewal of the exterior paint at the residential units window and door trim, and horizontal trim bands. Concrete Sidewalk and Driveway Repair Contingency There are concrete sidewalks, curbs and stamped concrete driveway aprons located at the front of the townhouse units. No major deficiencies were noted at these areas. Complete replacement of the concrete sidewalks and driveways will not likely be necessary within the timeframe considered by this study. However, a contingency amount for repairs to the concrete sidewalks and driveways has been allowed for. Concrete Patio Repair Contingency There are concrete patios located at the rear side of the townhouse units. No major deficiencies were noted at this area. Complete replacement of the concrete patios will not likely be necessary within the timeframe of this report. However, a contingency amount for repairs to the concrete patios has been allowed for. Garage Vehicle Door Replacement Each of the townhouse units consists of a vehicle attached garage structure with an interior man door. The garage structures each have a wood overhead door powered by a ½- horsepower overhead opener. The majority of the vehicle doors are in satisfactory condition. Minor paint deterioration and some minor impact damage were noted at a number of doors. There are approximately 47 doublewide vehicle doors and 24 singlewide vehicle doors. The study allows for the eventual replacement of the vehicle doors in four separate phases. CDW Engineering Page 8

13 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# A20 Wood Privacy Fence Replacement - Rear Yard There are combination three- and six-foot high, wood privacy fences separating the backyards of the townhouse units. It appears the fences extend out approximately 24 feet from the back walls of the buildings, towards the perimeter fencing. They include wood gates to allow for access to the adjacent yards. Minor damage, paint failure, and poor mechanism were noted at these areas. These areas should be repaired and repainted in the short term, and as part of the ongoing maintenance program. The study allows for the eventual replacement of these wood privacy fences in four separate phases. A21 A22 A23 A24 Wood Fence Replacement Perimeter There are six-foot high wood fences located at the north, west and south sides of the complex. These fences are primarily used as privacy barriers for adjacent properties. No major deficiencies were noted at these areas. The study allows for the eventual replacement of the wood fences. Wood Staircase and Porch Replacement There are wood staircases for access to the front entrance porch noted at some of the townhouse end units, and also at the rear deck entrances to units located on the Skeena Street side. No major deficiencies were noted at this area. The study allows for the replacement of the wood stairs and porch areas. Wood Column Replacement There are wood columns that provide structural support for the upper balcony and entry porch structures above. The majority of these columns are in satisfactory condition. The wood column condition is strongly dependant on the location, orientation, exposure level, weathering and maintenance. The study allows contingency amount for ongoing replacement of the wood columns. Retaining Wall Repair Contingency There are concrete block retaining walls located at the east side of the property, at adjacent townhouse units and also at the visitors parking stalls. No major deficiencies were noted at these areas. The complete replacement of the concrete block retaining walls will not likely be necessary within the timeframe of this study. However, a contingency amount for repairs to the concrete block retaining walls has been allowed for. CDW Engineering Page 9

14 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# A25 Asphalt Pavement Replacement The roadway and the visitors parking areas located throughout the property are covered with asphalt paving. The asphalt paving displays no major deficiencies. The study allows for the eventual replacement of the asphalt pavement. It is assumed at the time that the existing asphalt will be removed first. A26 Landscaping Contingency There are various landscaping components at the property, including signs, plants, etc. Most of these components will require ongoing maintenance repair. The study allows a contingency amount for ongoing maintenance and replacement of various components. ELECTRICAL COMPONENTS E1 E2 E3 Pole-mounted Light Fixture Replacement There are two-foot pole-mounted light fixtures located at various areas of the complex. No major deficiencies were noted. The study allows for the eventual replacement of the pole-mounted light fixtures. Building Exterior Light Replacement The exterior walls at the front garages, patios and balconies include exterior light fixtures. The light fixtures consist of a pre-finished metal body with a glass fixture portion. No significant deficiencies were noted with the fixtures. The study allows for the eventual replacement of these light fixtures with similar quality units. Electrical Meter Base and Sub Service Disconnect Replacement - Meter Room There are electrical meter bases with electrical disconnect switches for each of the townhouse units located in the electrical meter rooms. No major deficiencies were noted at these areas. The study allows for the eventual replacement of this equipment. MECHANICAL SS1 Site Services Rehabilitation There are various site services at the property, including water service pipes, sewers, telephone wires, and cable TV wires etc. Most of these services are not visible. The study allows for a contingency amount for major repairs to these components. CDW Engineering Page 10

15 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# ENGINEERING Eng1 Depreciation Report Update Based on a Site Visit: As updates to the Depreciation Report are now required every three years, an allowance has been made for this expense. The cost of this work can be paid for from the reserve fund. 4.0 BUILDING OCCUPANT SURVEYS: As part of the Depreciation Report, questionnaires were delivered to the condominium corporation for distribution to the residents. The purpose of the questionnaire was to gather information about known problems with the common element components of the building. During our site visit, there may not be problems detectable because of certain environmental or weather conditions. These comments were taken into consideration during the site inspection. The questionnaires gathered did not provide any significant addition information. 5.0 CAPITAL RENEWAL PROJECTIONS: Appendix B contains the capital renewal projections for the property. This chart lists the common element components, the remaining life expectancy and replacement cost of the components, and provides a starting point for calculating what the annual contributions should be. It should be noted that the calculations in this table do not contemplate interest or inflation. The following explains each of the terms in the Capital Renewal Projections chart: Term Report Reference Number Item Description Definition This relates to the report reference for the description of the item. This indicates the component being replaced or rehabilitated Year of Acquisition Present Age Quantity This is the year that the component was acquired. This year is based on known information or is estimated where no information was available. This is the present age of the system or component. This is the quantity or number of components noted from our site survey or document review. CDW Engineering Page 11

16 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Term Units Typical Life Estimated Life Remaining Definition These are the corresponding units for the quantities noted from the site survey or from the document review. This is the typical life expectancy of the component. This is the estimated remaining life of the component, based on the on-site conditions. Present Cost of Replacement Construction Contingency Allowance 6.0 SCHEDULE OF RENEWALS: This is the present replacement cost, or cost for major rehabilitation, of the item. This is the amount or percentage, included in the project budget to cover unpredictable changes in the work or items of work. The chart in Appendix C shows a projection of what the expenditures are anticipated to be each year, over the next 30 years, for major repairs and replacements of the common element components. These figures are provided in present dollar values. These figures include a 15 percent increase for professional fees for replacement projects likely to require professional designers or project management. 7.0 RESERVE FUND CASH FLOW PROJECTIO4NS: The charts in Appendices D, E, F and G show the reserve fund balance over the next 30 years. These values incorporate an assumed annual inflation rate and the given interest rate for the Reserve Fund investment. The following was given by the condominium corporation: " Present reserve fund balance $116,740 (As of October 31, 2012) " Average reserve fund rate of return 1% " The assumed annual inflation rate was taken as 2% Appendices D, E and F show three acceptable cash flow scenarios over the next 30 years. To illustrate the current situation, Appendix G shows the reserve fund cash flow over the next 30 years at the present contribution level. These cash flows consider the effect of interest and inflation. CDW Engineering Page 12

17 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# The following provides an explanation for each of the terms in the cash flow projections: Term Opening Balance Annual Contribution Definition This is the amount of money in the reserve fund at the beginning of the year. This amount was given as $116,740. This is the annual contribution to the reserve fund. The contribution amounts are increased annually by the inflation rate. Increase over previous year Catch-up Amount Total Contributions Interest Income Renewal Costs Closing Balance The value here shows what the increase in the annual contribution is over the previous year. This is the amount of additional funds required to overcome any shortfall in the fund. These amounts are based on the capital renewal projections. This is the sum of the annual contribution and the catch-up amount. In years without an expenditure, this is the interest generated by the opening balance for the entire year, plus interest generated by the annual contribution. In years where there is an expenditure, the interest is calculated based on the expenditure occurring at the half-way point in the year. The interest income is calculated based on the given rate of return. These two columns show the expenditures required, as per the capital renewal projections. These figures are given in 201# dollars and in inflated dollars, to the year of expenditure. This is the balance of the fund at the end of the year. The closing balance equals the total contribution, plus the interest income, less any renewal costs in that year. CDW Engineering Page 13

18 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# 8.0 DATA ANALYSIS: The goal of the study is to ensure there are sufficient funds available for major repairs and replacements. However, since the study covers a finite time period, it is equally important to know what the balance should approximately be at the end of the study period. A balance that is too low at the end of the study period could penalize future owners, as insufficient funds may have been accumulated by the present owners. To have too high a balance at the end of the study period would penalize the present owners. To ensure the closing balance at the end of the study period is appropriate, the cash flow was projected to 60 years in the future. The Reserve Fund balance was verified not to fall below 20 percent of any expenditure in a given year and not to fall below an absolute minimum of $10,000. The fund was also verified not to become excessive at any of the recommended contribution scenarios. Thus, starting total annual contributions of $135,000 or $11,250 per month (with the annual contribution increased annually by the inflation rate plus 3 percent from Years 2014 to 2023 and by the inflation rate thereafter) should prove sufficient to meet both criteria. This cash flow is illustrated in Appendix D. The cash flow scenarios in Appendices E and F use different methods of increasing the contribution levels to provide equally acceptable funding results. Annual contributions of $35,000 result in a deficit in the Year This is illustrated in the cash flow in Appendix G. The inflation rate used in the study was taken as a previous five year average from that published by Statistics Canada. The interest rate used in the study was taken as a five year average from the current Strata reserve fund investment. CDW Engineering Page 14

19 Townhouse Village, BCS1135 Report ##### 1234 Townhouse Drive, City, BC January 1, 201# 9.0 CLOSING COMMENTS: The information contained in this study is time-sensitive. We recommend this study be updated every three years. Please contact our office in three years for an update. Please find photographs documenting the common components in Appendix A. Please find the Maintenance Schedule in Appendix H. We trust this information is of value. Should you have any questions, please feel free to contact me directly. Sincerely, Henry Khuu, B.Sc.(Mech.), RHI Reviewed by, Richard Weldon, P.Eng. LEED AP CDW Engineering Page 15

20 APPENDIX A PHOTOGRAPHS Townhouse Village, BCS#### Strata Management Company XYZ 1234 Townhouse Drive City, BC

21 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 1. Front view of a typical townhouse block. Photo 3. Typical rear view of a townhouse block. Photo 2. Typical view of a townhouse end unit. Photo 4. East elevation of a townhouse block located at the Skeena Street side. CDW Engineering Page 1

22 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 5. A rear view of the townhouse block located at the centre of the complex. Photo 7. Typical view of the window assembly area. Note the loose wood trim. Photo 6. Typical view of a window well and guard rail at the property. Photo 8. Typical view of the vinyl membrane and guard rail at a balcony area. CDW Engineering Page 2

23 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 9. Typical sliding glass door and patio area. Photo 11. Wood staircase at a townhouse end unit. Photo 10. Drainage at a rear yard. Photo 12. Typical double wide garage door. CDW Engineering Page 3

24 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 13. View of the impact damage to a garage door. Photo 15. Typical fences at the townhouse complex. Photo 14. Typical stamped concrete driveway apron. Photo 16. Retaining walls located on the Skeena street side. CDW Engineering Page 4

25 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 17. Masonry steps located at the Skeena street side. Photo 19. Playground area located at the centre of the complex. Photo 18. Wood staircase and porch located at the Skeena street side. Photo 20. Mailbox structure located at the northeast corner of the property. CDW Engineering Page 5

26 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 21. Typical view of the roadway at the complex. Photo 23. A typical view of the lower sloped asphalt shingle roofs. Photo 22. Typical view of the upper sloped asphalt shingle roofs. Photo 24. Typical view of the attic space. CDW Engineering Page 6

27 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 25. View of the wood truss and oriented strand board sheathing. Photo 27. Another view of a dryer duct and roof vent connection. Note the open connection with dryer lint built-up. Photo 26. View of the dryer duct and roof vent exhaust. Note the lack of a proper collar connection to the roof vent. Photo 28. Typical view of the electrical meter room. CDW Engineering Page 7

28 Townhouse Village, BCS#### Report ##### 1234 Townhouse Drive, City, BC January 1, 201# Photo 29. A typical distribution panel for the common areas. Photo 31. Close-up view of a timer switch for the bathroom exhaust fan in one of the townhouse units. Photo 30. A typical exterior light standard located at various areas of the property. CDW Engineering Page 8

29 APPENDIX B CAPITAL RENEWAL PROJECTIONS Townhouse Village, BCS#### Strata Management Company XYZ 1234 Townhouse Drive City, BC

30 Townhouse Village, BCS#### Appendix B: Capital Renewal Projections 01-Jan-1X Report Ref. # ARCHITECTURAL Item Description Year of Acquisition Roof A1a Asphalt Shingle Replacement - Phase sq ft $ 309,624 A1b Asphalt Shingle Replacement - Phase sq ft $ 309,624 A2 Metal Chimney Vent Replacement - Roof Level each $ 35,500 A3a Aluminum Gutter and Downspout Replacement - Phase linear ft $ 65,960 A3b Aluminum Gutter and Downspout Replacement - Phase linear ft $ 65,960 A4a Fascia Board Replacement - Gutter - Contingency (10%) linear ft $ 10,554 A4b Fascia Board Replacement - Gable End & Roof Peak - Phase linear ft $ 12,144 A4c Fascia Board Replacement - Gable End & Roof Peak - Phase linear ft $ 12,144 Exterior A5a Window Replacement - Phase sq ft $ 172,850 A5b Window Replacement - Phase sq ft $ 172,850 A5c Window Replacement - Phase sq ft $ 172,850 A5d Window Replacement - Phase sq ft $ 172,850 A6a Slider Door Replacement - Phase each $ 40,800 A6b Slider Door Replacement - Phase each $ 42,500 A6c Slider Door Replacement - Phase each $ 42,500 A6c Slider Door Replacement - Phase each $ 42,500 A7 French Door Replacement each $ 16,800 A8 Entrance Door Replacement - Unit Entrance each $ 49,700 A9 Service Door Replacement - Electrical Room each $ 4,500 A10 Balcony Membrane Replacement linear ft 15 7 $ 59,000 A11 Railing Replacement linear ft $ 38,560 A12a Exterior Cladding Replacement - Phase sq ft $ 272,400 A12b Exterior Cladding Replacement - Phase sq ft $ 272,400 A12c Exterior Cladding Replacement - Phase sq ft $ 272,400 A12d Exterior Cladding Replacement - Phase sq ft $ 272,400 A12e Exterior Envelope Repair - Contingency lump sum $ 50,000 A13 Exterior Vent Exhaust Replacement - Wall Mounted each $ 35,500 A14a Wood Trim Repair - Window and Door - Contingency linear ft 15 7 $ 25,000 A14b Wood Trim Repair - Horizontal Band - Contingency linear ft $ 10,000 A15 Exterior Caulking Renewal linear ft 15 7 $ 50,964 A16 Trim Paint Renewal linear ft 15 7 $ 36,372 Site Work A17 Concrete Sidewalk and Driveway Repair - Contingency sq ft $ 17,790 A18 Concrete Patio Repair - Contingency sq ft $ 7,080 A19a Garage Vehicle Door Replacement - Phase each $ 34,500 A19b Garage Vehicle Door Replacement - Phase each $ 9,000 A19c Garage Vehicle Door Replacement - Phase each $ 36,000 A19d Garage Vehicle Door Replacement - Phase each $ 9,000 A20 Wood Privacy Fence Replacement - Rear Yard linear ft $ 69,180 A21 Wood Fence Replacement - Perimeter linear ft $ 35,910 A22a Wood Staircase and Porch Replacement - Front Entry each $ 31,500 A22b Wood Staircase and Porch Replacement - Rear Entry each $ 30,000 A23 Wood Column Replacement each $ 80,000 A24 Retaining Wall Repair - Contingency sq ft $ 14,740 A25 Asphalt Pavement Replacement sq ft $ 83,538 A26 Landscaping Contingency set $ 10,000 ELECTRICAL E1 Pole-mounted Light Fixture Replacement each $ 3,500 E2 Building Exterior Light Replacement each $ 50,400 E3 Electrical Meter Base and Sub Service Disconnect Replacement - Meter Room each $ 38,000 MECHANICAL SS1 Site Services Rehabilitation each $ 20,000 ENGINEERING Eng1 Depreciation Report Preparation each 3 3 $ 3,443 Subtotal $ 3,421,163 Construction Contingency Allowance (10%) $ 342,116 TOTALS INCLUDING PROFESSIONAL FEES AND CONTINGENCY: $ 3,763,279 Note: These costs do not take into account routine maintenance and outstanding repair costs. All repairs/replacements to be covered 100% by the Reserve Fund Present Age Quantity Units Typical Life (Years) Est. Life Remaining (Years) Present Cost of Replacement CDW Engineering B-1

31 APPENDIX C SCHEDULE OF RENEWALS Townhouse Village, BCS#### Strata Management Company XYZ 1234 Townhouse Drive City, BC

32 Townhouse Village, BCS#### Appendix C: Schedule of Renewals Years 1-10 (2013 Dollars) 25-Jan-1X Report Ref. # ARCHITECTURAL Item Description Roof A1a Asphalt Shingle Replacement - Phase 1 A1b Asphalt Shingle Replacement - Phase 2 A2 Metal Chimney Vent Replacement - Roof Level A3a Aluminum Gutter and Downspout Replacement - Phase 1 A3b Aluminum Gutter and Downspout Replacement - Phase 2 A4a Fascia Board Replacement - Gutter - Contingency (10%) A4b Fascia Board Replacement - Gable End & Roof Peak - Phase 1 A4c Fascia Board Replacement - Gable End & Roof Peak - Phase 2 Exterior A5a Window Replacement - Phase 1 A5b Window Replacement - Phase 2 A5c Window Replacement - Phase 3 A5d Window Replacement - Phase 4 A6a Slider Door Replacement - Phase 1 A6b Slider Door Replacement - Phase 2 A6c Slider Door Replacement - Phase 3 A6c Slider Door Replacement - Phase 4 A7 French Door Replacement A8 Entrance Door Replacement - Unit Entrance A9 Service Door Replacement - Electrical Room A10 Balcony Membrane Replacement A11 Railing Replacement A12a Exterior Cladding Replacement - Phase 1 A12b Exterior Cladding Replacement - Phase 2 A12c Exterior Cladding Replacement - Phase 3 A12d Exterior Cladding Replacement - Phase 4 A12e Exterior Envelope Repair - Contingency A13 Exterior Vent Exhaust Replacement - Wall Mounted A14a Wood Trim Repair - Window and Door - Contingency A14b Wood Trim Repair - Horizontal Band - Contingency A15 Exterior Caulking Renewal A16 Trim Paint Renewal Site Work A17 Concrete Sidewalk and Driveway Repair - Contingency A18 Concrete Patio Repair - Contingency A19a Garage Vehicle Door Replacement - Phase 1 A19b Garage Vehicle Door Replacement - Phase 2 A19c Garage Vehicle Door Replacement - Phase 3 A19d Garage Vehicle Door Replacement - Phase 4 A20 Wood Privacy Fence Replacement - Rear Yard A21 Wood Fence Replacement - Perimeter A22a Wood Staircase and Porch Replacement - Front Entry A22b Wood Staircase and Porch Replacement - Rear Entry A23 Wood Column Replacement A24 Retaining Wall Repair - Contingency A25 Asphalt Pavement Replacement A26 Landscaping Contingency ELECTRICAL E1 Pole-mounted Light Fixture Replacement E2 Building Exterior Light Replacement Years out Immed E3 Electrical Meter Base and Sub Service Disconnect Replacement - Meter Room MECHANICAL SS1 Site Services Rehabilitation ENGINEERING Eng1 Depreciation Report Preparation Subtotal Construction Contingency Allowance (10%) TOTALS INCLUDING PROFESSIONAL FEES AND CONTINGENCY: Note: $ - $ - $ - $ 3,787 $ - $ - $ 3,787 $ 188,470 $ - $ 3,787 $ 11,000 These costs do not take into account routine maintenance and outstanding repair costs. Also, these figures do not take into account the effects of inflation or interest. CDW Engineering C-1

33 Townhouse Village, BCS#### Appendix C: Schedule of Renewals Years (2013 Dollars) 01-Jan-1X Report Ref. # ARCHITECTURAL Item Description Roof A1a Asphalt Shingle Replacement - Phase 1 A1b Asphalt Shingle Replacement - Phase 2 A2 Metal Chimney Vent Replacement - Roof Level A3a Aluminum Gutter and Downspout Replacement - Phase 1 A3b Aluminum Gutter and Downspout Replacement - Phase 2 A4a Fascia Board Replacement - Gutter - Contingency (10%) A4b Fascia Board Replacement - Gable End & Roof Peak - Phase 1 A4c Fascia Board Replacement - Gable End & Roof Peak - Phase 2 Exterior A5a Window Replacement - Phase 1 A5b Window Replacement - Phase 2 A5c Window Replacement - Phase 3 A5d Window Replacement - Phase 4 A6a Slider Door Replacement - Phase 1 A6b Slider Door Replacement - Phase 2 A6c Slider Door Replacement - Phase 3 A6c Slider Door Replacement - Phase 4 A7 French Door Replacement A8 Entrance Door Replacement - Unit Entrance A9 Service Door Replacement - Electrical Room A10 Balcony Membrane Replacement A11 Railing Replacement A12a Exterior Cladding Replacement - Phase 1 A12b Exterior Cladding Replacement - Phase 2 A12c Exterior Cladding Replacement - Phase 3 A12d Exterior Cladding Replacement - Phase 4 A12e Exterior Envelope Repair - Contingency A13 Exterior Vent Exhaust Replacement - Wall Mounted A14a Wood Trim Repair - Window and Door - Contingency A14b Wood Trim Repair - Horizontal Band - Contingency A15 Exterior Caulking Renewal A16 Trim Paint Renewal Site Work A17 Concrete Sidewalk and Driveway Repair - Contingency A18 Concrete Patio Repair - Contingency A19a Garage Vehicle Door Replacement - Phase 1 A19b Garage Vehicle Door Replacement - Phase 2 A19c Garage Vehicle Door Replacement - Phase 3 A19d Garage Vehicle Door Replacement - Phase 4 A20 Wood Privacy Fence Replacement - Rear Yard A21 Wood Fence Replacement - Perimeter A22a Wood Staircase and Porch Replacement - Front Entry A22b Wood Staircase and Porch Replacement - Rear Entry A23 Wood Column Replacement A24 Retaining Wall Repair - Contingency A25 Asphalt Pavement Replacement A26 Landscaping Contingency ELECTRICAL E1 Pole-mounted Light Fixture Replacement E2 Building Exterior Light Replacement Years out E3 Electrical Meter Base and Sub Service Disconnect Replacement - Meter Room MECHANICAL SS1 Site Services Rehabilitation ENGINEERING Eng1 Depreciation Report Preparation Subtotal Construction Contingency Allowance (10%) TOTALS INCLUDING PROFESSIONAL FEES AND CONTINGENCY: Note: $ - $ 484,918 $ 416,033 $ - $ 3,787 $ - $ 301,316 $ 147,293 $ - $ 247,343 These costs do not take into account routine maintenance and outstanding repair costs. Also, these figures do not take into account the effects of inflation or interest. CDW Engineering C-2

34 Townhouse Village, BCS#### Appendix C: Schedule of Renewals (2013 Dollars) Years Jan-1X Report Ref. # ARCHITECTURAL Item Description Roof A1a Asphalt Shingle Replacement - Phase 1 A1b Asphalt Shingle Replacement - Phase 2 A2 Metal Chimney Vent Replacement - Roof Level A3a Aluminum Gutter and Downspout Replacement - Phase 1 A3b Aluminum Gutter and Downspout Replacement - Phase 2 A4a Fascia Board Replacement - Gutter - Contingency (10%) A4b Fascia Board Replacement - Gable End & Roof Peak - Phase 1 A4c Fascia Board Replacement - Gable End & Roof Peak - Phase 2 Exterior A5a Window Replacement - Phase 1 A5b Window Replacement - Phase 2 A5c Window Replacement - Phase 3 A5d Window Replacement - Phase 4 A6a Slider Door Replacement - Phase 1 A6b Slider Door Replacement - Phase 2 A6c Slider Door Replacement - Phase 3 A6c Slider Door Replacement - Phase 4 A7 French Door Replacement A8 Entrance Door Replacement - Unit Entrance A9 Service Door Replacement - Electrical Room A10 Balcony Membrane Replacement A11 Railing Replacement A12a Exterior Cladding Replacement - Phase 1 A12b Exterior Cladding Replacement - Phase 2 A12c Exterior Cladding Replacement - Phase 3 A12d Exterior Cladding Replacement - Phase 4 A12e Exterior Envelope Repair - Contingency A13 Exterior Vent Exhaust Replacement - Wall Mounted A14a Wood Trim Repair - Window and Door - Contingency A14b Wood Trim Repair - Horizontal Band - Contingency A15 Exterior Caulking Renewal A16 Trim Paint Renewal Site Work A17 Concrete Sidewalk and Driveway Repair - Contingency A18 Concrete Patio Repair - Contingency A19a Garage Vehicle Door Replacement - Phase 1 A19b Garage Vehicle Door Replacement - Phase 2 A19c Garage Vehicle Door Replacement - Phase 3 A19d Garage Vehicle Door Replacement - Phase 4 A20 Wood Privacy Fence Replacement - Rear Yard A21 Wood Fence Replacement - Perimeter A22a Wood Staircase and Porch Replacement - Front Entry A22b Wood Staircase and Porch Replacement - Rear Entry A23 Wood Column Replacement A24 Retaining Wall Repair - Contingency A25 Asphalt Pavement Replacement A26 Landscaping Contingency ELECTRICAL E1 Pole-mounted Light Fixture Replacement E2 Building Exterior Light Replacement Years out E3 Electrical Meter Base and Sub Service Disconnect Replacement - Meter Room MECHANICAL SS1 Site Services Rehabilitation ENGINEERING Eng1 Depreciation Report Preparation Subtotal Construction Contingency Allowance (10%) TOTALS INCLUDING PROFESSIONAL FEES AND CONTINGENCY: Note: $ 152,782 $ 741,693 $ 63,663 $ 222,443 $ 107,525 $ 218,655 $ 25,039 $ - $ 344,586 $ 14,787 These costs do not take into account routine maintenance and outstanding repair costs. Also, these figures do not take into account the effects of inflation or interest. CDW Engineering C-3