Community Meeting Summary May 14, 2013: Performance Audit, Reserve Fund Study, and Budget Overview

1. O.C.S.C.C. No. 903 Information Session – May 14, 2013

2. AGENDA • Introduction – Board of Directors • Performance Audit • Reserve Fund Study • 2013-2014 Budget • Updates from the Board • Reminders for Residents • Upcoming Events

3. Board Members • Marty van Gaal (3 year term), President • Paul Gallagher (2 year term), Director • Krista Nonnenmacher–Biddiscombe (1 year term), Secretary Property Manager • Stefania Parnanzone, Taggart Realty Management Concierge • Samra Mehmedagic

4. Performance Audit • The Condominium Act, 1998, requires that the Board of Directors commission a Performance Audit (PA) to determine if there are any deficiencies in the construction of the common elements. • The Board issued a contract to Morrison Hershfield (MH)to execute the PA • This must be completed in time to submit a claim to Tarion Warranty Corporation. • 1yr Warranty - By May 31, 2013 • 2 yr Warranty – water penetration and major items • 7 yr Warranty – structural defects

5. Performance Audit • Report will be issued to Tarion and a copy to Urban Capital • Urban Capital has 18 months to repair from the date the PA is filed with Tarion • Priority 1 – health and safety • Priority 2 – deterioration of the building • Priority 3 - minor in nature • Priority 4 – aesthetic in nature • Priority 5 – deviated from contract drawings

6. Performance Audit • Report captures 174 deficiencies • Priority 1 – 21 • Priority 2 – 37 • Priority 3 – 61 • Priority 4 – 53 • Priority 5 – 2 • MH indicated – PA is Middle Level in comparison of other buildings

7. Reserve Fund Study • The Condominium Act, 1998, requires all condominium corporations to establish a reserve fund (RF) study within the year following registration (June 1, 2012), and periodic reviews of the RF every three (3) years afterwards. • The Board issued a contract to Morrison Hershfield (MH)to execute the RFS

8. Reserve Fund Study • The Condominium Act, 1998, requires all condominium corporations to establish a reserve fund (RF) study within the year following registration, and periodic reviews of the RF every three (3) years afterwards. • The purpose of a RFS: • 30 year forecast of future major repairs or replacement of common elements of the building; • To lower risk of unexpected repairs; and; • To ensure that proper funds will be available for those repairs when the time comes.

9. Reserve Fund Study • Objective • Setup a schedule for the anticipated repair and replacement of common element items • Set up a special account for major repair items and replacement of common elements and assets of the Corporation • To determine the annual contribution necessary to maintain an adequate balance for the 30 year period of this study, and • Satisfy the legislation regarding the Condominium Act, 1998 and related regulations • Small Capital Expenditures (under $2,500) will be covered by the Operating Budget

10. Reserve Fund Study • Present Annual Contribution to the Reserve Fund - $112, 406 (15% of the Operating Budget) • Assumption – Inflation (2%), Interest Rate (3%) • MH Recommendation • The current annual contribution of $112,406 is increased to $294,504 (162%) for fiscal year 2014 and then increased by inflation only for fiscal year 2015 onwards • If such funding is not achieved, future condominium owners can expect the need for additional special assessments to address major renewal activities • The Board takes all responsibility and liability (personally for each Board member) for the financial plan which they create for the reserve fund

11. Reserve Fund Study • Comparison of Recent Year 1 RFS conducted by MH

12. June 1, 2013 to May 31, 2014 Budget

13. June 1, 2013 to May 31, 2014 Budget

14. June 1, 2013 to May 31, 2014 Budget

15. 2013-2014 Budget - Summary • 24.55% overall increase in Condo Fees • 47cents per square foot • 3.94% increase to operating budget • Legal • General repairs and maintenance • Contingency • 162% increase to Reserve Fund contributions • Recommended by Morrison Hershfield • Required, per Condo Act, 1998 • 38% of Operating Budget (previously 15%)

16. Updates from the Board • Natural Gas BBQ • Sensors in gym/ amenity room • Additional bicycle parking • Improved Security • Landscaping • Virtucar • Car Wash Stations • AV equipment • Fitness Room - Power • Communications Committee • Julie Ouellette (chair) • Tracy Dransfield • JP Mirenzi • Blaine Walsh • Chris Sisto • Other volunteers

17. Reminders for Residents • Balconies & Terraces: • Permitted: Plants (form is available), seasonal furniture. • Not Permitted: screen doors, bikes, storage of non-patio items, dead plants, laundry drying, etc. • Warnings and Fines will be issued • Noise & Disturbances: • All residents are entitled to quiet enjoyment of their unit. • Report disturbances to building staff. • Report to Ottawa By-Law (3-1-1) and PM, if no staff onsite. • Keep detailed log of disturbance.

18. Reminders for Residents (cont’d) • Smoking: • Not permitted in any common area, including 2nd level courtyard. • Please do not throw cigarette butts in the plants and from balconies. • Damage & Theft: • Residents are responsible for the actions of their guests. • Theft of condo assets costs everyone. • Report suspicious activity to building staff or PM.

19. Upcoming Events • Garage Cleaning: June 2, 2013 • Please ensure your stall is empty • $50.00 fine for non-compliance • Window Cleaning: Beginning June 24, 2013 • Will take approximately 3 weeks, weather permitting • Formal notice to follow • Annual General Meeting: Date TBA • Within 6 months after end of fiscal year (June 1) • Guaranteed annual opportunity for owners to participate in condo governance