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

O.C.S.C.C. No. 903

Information Session – May 14, 20131

AGENDAAGENDA

• Introduction – Board of DirectorsIntroduction – Board of Directors• Performance AuditPerformance Audit• Reserve Fund StudyReserve Fund Study• 2013-2014 Budget2013-2014 Budget• Updates from the BoardUpdates from the Board• Reminders for ResidentsReminders for Residents• Upcoming EventsUpcoming Events

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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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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

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

– 1yr Warranty - By May 31, 2013 1yr Warranty - By May 31, 2013 – 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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• Report will be issued to Tarion and a copy Report will be issued to Tarion and a copy to Urban Capitalto Urban Capital

• 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 captures 174 deficienciesReport captures 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

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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 (June 1, 2012), and following registration (June 1, 2012), and periodic reviews of the RF every three (3) periodic reviews of the RF every three (3) years afterwards.years afterwards.– 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

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•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. 8


•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 Set up a special account for major repair items

and replacement of common elements and assets and replacement of common elements and assets of the Corporationof the Corporation

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

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

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

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• Present Annual Contribution to the Reserve Present Annual Contribution to the Reserve Fund - $112, 406 (15% of the Operating Fund - $112, 406 (15% of the Operating Budget)Budget)•Assumption – Inflation (2%), Interest Rate (3%)Assumption – Inflation (2%), Interest Rate (3%)•MH RecommendationMH Recommendation

–The current annual contribution of $112,406 is increased to The current annual contribution of $112,406 is increased to $294,504 (162%) for fiscal year 2014 and then increased by $294,504 (162%) for fiscal year 2014 and then increased by inflation only for fiscal year 2015 onwardsinflation only for fiscal year 2015 onwards–If such funding is not achieved, future condominium owners If such funding is not achieved, future condominium owners can expect the need for additional special assessments to can expect the need for additional special assessments to address major renewal activitiesaddress major renewal activities– The Board takes all responsibility and liability (personally for The Board takes all responsibility and liability (personally for each Board member) for the financial plan which they create for each Board member) for the financial plan which they create for the reserve fundthe reserve fund

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• 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 8 162%Building 9 170%Building 10 309%Building 11 233%

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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) 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

ManagementTaggart 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 2012

Gas Enbridge $ 106,589.00 $ 75,000.00 Current to April 2, 2013

Utilities 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

Reserve Fund Study Morrison Hershfield $ 6,000.00 $ - HST included

Performance Audit Morrison Hershfield $ 10,000.00 $ - HST included

General Consulting TBD $ - $ 3,000.00

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Maintenance & Repairs 6,890.00$ 23,000.00$

General Rep. & Main Enterphone, signs, doors etc. 5,300.00$ 18,000.00$

(YTD Includes $5000 insurance deductible from claim)

Building Supplies Fobs, mats, garbage cans etc1,590.00$ 5,000.00$ Contracts 156,500.00$ 183,300.00$

Elevator Maintenance Schindler Elevator 18,000.00$ 25,000.00$ Monthly maintenance

Life Safety Inspections & MonitoringActivox/ Pyron Fire 10,000.00$ 12,000.00$

Fire system inspections & maintenance, emergency monitoring

Fitness Equipment MaintenanceExertech -$ 1,200.00$ Quarterly maintenance

Garage Overhead DoorsAl Parsons Electric -$ 8,000.00$

Quarterly maintenance, repairs

Garage Cleaning Van's Pressure Wash -$ 3,500.00$ Twice per year

Garbage Chute Maintenance/ Cleaning Waste Solutions Group -$ 4,000.00$

Quarterly maintenance, repairs

Garbage Compactor LeaseCKS Leasing Solutions12,000.00$ 16,000.00$ $548.05/month

Garbage Removal (Extra pick-ups)BFI/ WSI -$ 10,000.00$ Extra pick-ups, contaminated bins

General Cleaning Dodd's Janitorial 79,500.00$ 58,500.00$ Regular cleaning, special projects

Carpet Cleaning -$ 3,000.00$ Professional full cleaning

Generator InspectionsTBD 5,000.00$ 5,500.00$

Monthly maintenance, annual inspection

HVAC Maintenance Optimum Mechanical 16,000.00$ 16,500.00$

2 major, 2 mid-season, 4 regualr inspections, repairs

Landscaping Excel Landscaping/ TBD3,000.00$ 3,000.00$ plants, etcSnow Removal Marsten Equipment 3,000.00$ 2,500.00$

Water Treatment SystemAshland Corp. -$ 6,600.00$

Monthly maintenance $548.05/month

Window Cleaning Window Butler 10,000.00$ 8,000.00$ Once per year

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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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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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Updates from the BoardUpdates from the Board

•Natural Gas BBQ Natural Gas BBQ •Sensors in gym/ Sensors in gym/ amenity roomamenity room•Additional bicycle Additional bicycle parking parking •Improved SecurityImproved Security•LandscapingLandscaping•VirtucarVirtucar•Car Wash StationsCar Wash Stations•AV equipmentAV equipment•Fitness Room - PowerFitness Room - Power

• Communications Communications CommitteeCommittee

–Julie Ouellette Julie Ouellette (chair)(chair)– Tracy DransfieldTracy Dransfield– JP MirenziJP Mirenzi– Blaine WalshBlaine Walsh– Chris SistoChris Sisto–Other volunteersOther volunteers

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Reminders for ResidentsReminders for Residents

• Balconies & Terraces:Balconies & Terraces:– Permitted: Plants (form is available), seasonal Permitted: Plants (form is available), seasonal

furniture.furniture.– Not Permitted: screen doors, bikes, storage of non-Not Permitted: screen doors, bikes, storage of non-

patio items, dead plants, laundry drying, etc.patio items, dead plants, laundry drying, etc.– Warnings and Fines will be issuedWarnings and Fines will be issued

• Noise & Disturbances:Noise & Disturbances:– All residents are entitled to quiet enjoyment of their All residents are entitled to quiet enjoyment of their

unit. 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. 17

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

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

22ndnd level courtyard. level courtyard.– Please do not throw cigarette butts in the plants Please do not throw cigarette butts in the plants

and from balconies.and from balconies.

• Damage & Theft:Damage & Theft:– Residents are responsible for the actions of Residents are responsible for the actions of

their guests.their guests.– Theft of condo assets costs Theft of condo assets costs everyoneeveryone..– Report suspicious activity to building staff or Report suspicious activity to building staff or

PM.PM.

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Upcoming EventsUpcoming Events

• Garage Cleaning: June 2, 2013Garage Cleaning: June 2, 2013– Please ensure your stall is emptyPlease ensure your stall is empty– $50.00 fine for non-compliance$50.00 fine for non-compliance

• Window Cleaning: Beginning June 24, 2013Window Cleaning: Beginning June 24, 2013– Will take approximately 3 weeks, weather Will take approximately 3 weeks, weather

permittingpermitting– Formal notice to followFormal notice to follow

• Annual General Meeting: Date TBAAnnual General Meeting: Date TBA– Within 6 months after end of fiscal year (June 1)Within 6 months after end of fiscal year (June 1)– Guaranteed annual opportunity for owners to Guaranteed annual opportunity for owners to

participate in condo governanceparticipate in condo governance19

Documents

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