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

2. Year in Review Performance AuditPerformance Audit Reserve Fund StudyReserve Fund Study 2013-2014 Budget Summary2013-2014 Budget Summary What ElseWhat Else General RemindersGeneral Reminders 2

3. 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 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 Must be completed in time to submit a claim to Tarion Warranty Corporation.Must be completed in time to submit a claim to Tarion Warranty Corporation. –1yr Warranty - By May 31, 2013 (COMPLETED) –2 yr Warranty – water penetration and major items –7 yr Warranty – structural defects 3

4. Performance Audit Urban Capital has 18 months to repair from the date the PA is filed with TarionUrban Capital has 18 months to repair from the 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 4

5. Performance Audit Report captured 174 deficienciesReport captured 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 buildingsMH indicated – PA is Middle Level in comparison of other buildings To DateTo Date –Approximately 50% of the deficiencies have been addressed and closed –Meet with Doran/Urban Capital on a regular basis to review –Expect to address most if not all items by May 31, 2014 –No major items of concern –Working with Urban Capital on approach to address the reliability concerns of the Gladstone Garage Door 5

6. 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 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: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. 6

7. Reserve Fund Study The Board issued a contract to Morrison Hershfield (MH)to execute the RFS The Board issued a contract to Morrison Hershfield (MH)to execute the RFS MH RecommendationMH Recommendation -Assumptions – Inflation of 2%, Interest of 3% -The original 1 st year (2012-2013) annual contribution of $112,406 (15% of the Operating Budget) be increased to $294,504 (162%) for fiscal year 2013-2014 and then increased by inflation for fiscal year 2014-2015 and 2015- 2016 Benefits Benefits – If such funding is not achieved, future condominium owners can expect the need for increased condo fees and/or special assessments to address major renewal activities – Healthy Reserve Fund is attractive to new investors 7

8. Reserve Fund Study Comparison of Recent Year 1 RFS conducted by MH % Increase Building 1180% Building 2453% Building 3220% Building 4138% Building 5402% Building 6475% Building 7552% Building 8 - Central 162% Building 9170% Building 10309% Building 11233% 8

9. Reserve Fund Study ObjectiveObjective a)Setup a schedule for the anticipated repair and replacement of common element items b)Set up a special account for major repair items and replacement of common elements and assets of the Corporation c)To determine the annual contribution necessary to maintain an adequate balance for the 30 year period of this study, and d)Satisfy the legislation regarding the Condominium Act, 1998 and related regulations e)Update every 3 years (paper followed by full inspection) Small Capital Expenditures (under $2,500) will be covered by the Operating BudgetSmall Capital Expenditures (under $2,500) will be covered by the Operating Budget 9

10. 30 Year Reserve Fund Cash Flow 10 Year Ending In May 30 Opening Balance Annual Contribution* Percent Increase over Previous Year Other Contribution Estimated Future Inflated Expenditures Projected Interest Earned Closing Balance 2013 112,406 143,630 256,036 2014256,036294,504162.0% 12,099562,638 2015562,638300,3942.0% 21,385884,417 2016884,417306,4022.0% 6,36731,0331,215,485 20171,215,485312,5302.0% 40,05040,5521,528,516 20181,528,516318,7802.0% 50,6371,897,934 20191,897,934325,1562.0% 70,94860,7512,212,892 20202,212,892331,6592.0% 71,3622,615,913 20212,615,913338,2922.0% 4,68783,4813,033,000 20223,033,000345,0582.0% 69,31595,1263,403,869 20233,403,869351,9592.0% 107,3953,863,224 20243,863,224358,9982.0% 289,706116,9364,049,452 20254,049,452366,1782.0% 12,682126,7864,529,734 20264,529,734373,5022.0% 5,174141,4175,039,478 20275,039,478380,9722.0% 935,510142,8664,627,806 20284,627,806388,5912.0% 161,504142,2404,997,134 20294,997,134396,3632.0% 155,8595,549,357 20305,549,357404,2912.0% 172,5456,126,192 20316,126,192412,3762.0% 19,995189,6716,708,245 20326,708,245420,6242.0% 793,962195,6476,530,554 20336,530,554429,0362.0% 153,053200,0567,006,594 20347,006,594437,6172.0% 1,332,271196,7786,308,718 20356,308,718446,3692.0% 97,397194,4966,852,187 20366,852,187455,2972.0% 567,684203,8806,943,680 20376,943,680464,4032.0% 4,075,780154,1403,486,442 20383,486,442473,6912.0% 1,368,26591,1752,683,042 20392,683,042483,1652.0% 878,54574,5612,362,223 20402,362,223492,8282.0% 3,41478,2082,929,845 20412,929,845502,6842.0% 6,96495,3313,520,896 20423,520,896512,7382.0% 3,599,63759,323493,321

11. Reserve Fund – Investment Plan Investment RulesInvestment Rules – No Risk – All investments must be 100% guaranteed (federal or provincial) – Government (Federal or Provincial) – Investment Funds – Banks ($100,000 CDIC insured) - GICs Current InvestmentsCurrent Investments - $95,000, 18 month (2.05%) – Home Trust GIC - $95,000, 24 month (1.73%) – Dundee Wealth Bank GIC - $95,000, 24 month (1.95%) – Equity Financial Trust GIC - $95,000, 36 month (2.01%) – Manulife GIC Future Investments - $95,000 GICs (every 4 months)Future Investments - $95,000 GICs (every 4 months) 11

12. 2013-2014 Budget - Summary 24.55% overall increase in Condo Fees24.55% overall increase in Condo Fees 47cents per square foot 47cents per square foot 3.94% increase to operating budget3.94% increase to operating budget LegalLegal General repairs and maintenanceGeneral repairs and maintenance ContingencyContingency 162% increase to Reserve Fund contributions 162% increase to Reserve Fund contributions 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%) 12

13. A Year In Review (continued) 20+ Board Meetings and 1000’s of emails20+ Board Meetings and 1000’s of emails Amenity Room Booking Amenity Room Booking Bylaws and Rules (e.g. bikes, wreaths, balcony plants, pet business on balcony) Bylaws and Rules (e.g. bikes, wreaths, balcony plants, pet business on balcony) RF Investment PlanRF Investment Plan EnerCare EnerCare –Errors (missing units, incorrect meter readings - $50,000+ error –Early Contract Cancellation - $726 per unit Information Sessions (Nov 20 and May 14) Information Sessions (Nov 20 and May 14) Audited Financial Statement Audited Financial Statement Shared Services Agreement (electricity, garage door, water, gas) Shared Services Agreement (electricity, garage door, water, gas) Replace BBQ (Natural Gas)Replace BBQ (Natural Gas) Additional Bike RacksAdditional Bike Racks Improved Security – cameras and weekend guardImproved Security – cameras and weekend guard Landscaping UpgradesLandscaping Upgrades Car Wash StationsCar Wash Stations Garage Doors – Upgraded SpringsGarage Doors – Upgraded Springs Fitness Room – Power UpgradesFitness Room – Power Upgrades Electricity – Regulated Price Plan from Wholesale RateElectricity – Regulated Price Plan from Wholesale Rate Leed SilverLeed Silver Heating Ventilation and Air Conditioning (HVAC)Heating Ventilation and Air Conditioning (HVAC) Heat Recovery Ventilator (HRV)Heat Recovery Ventilator (HRV) 13

14. A Year In Review (continued) Garbage – new pull cart $3k per month savings for winching fees, chute blockage (monitoring by weekend security)Garbage – new pull cart $3k per month savings for winching fees, chute blockage (monitoring by weekend security) Fire Extinguisher Thefts Fire Extinguisher Thefts Glued door bolts on emergency stairwell Glued door bolts on emergency stairwell ContractsContracts Snow Removal Garage Door Maintenance Fitness Room Maintenance Elevator Maintenance Cleaning (General and Carpets) Property Management Window Cleaning (annual) Garage Floor Cleaning (2) Winter Carpets Directory Board in Lobbies SplitDirectory Board in Lobbies Split Modifications to Amenity Room – Light Sensors, AV Equipment and ControlsModifications to Amenity Room – Light Sensors, AV Equipment and Controls AV Equipment Theft – improved security AV Equipment Theft – improved security Pilot Web SitePilot Web Site VirtuCarVirtuCar Common Elements and Exclusive Use Common ElementsCommon Elements and Exclusive Use Common Elements 14

15. Reminders for Residents Balconies & Terraces:Balconies & Terraces: –Permitted: Plants (completed form), seasonal furniture. –Not Permitted: items on railings, bikes, non-patio items (e.g. tires, picnic coolers, sports equipment, boxes), dead plants, laundry drying, etc. –Warnings and Administration Costs will be issued Noise & Disturbances: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. 15

16. Reminders for Residents (cont’d) Smoking:Smoking: –Not permitted in any common area, including 2 nd level courtyard –Please do not throw cigarette butts in the plants and from balconies –Respect your neighbours Control Your Pets:Control Your Pets: – not allowed in Courtyard – ‘no business on exterior landscaping beds’ Damage & Theft:Damage & Theft: –Residents are responsible for the actions of their guests –Theft and damage of condo assets costs everyone –Report suspicious activity to building staff or PM 16

17. Backup Slide 17

18. Board 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), SecretaryKrista Nonnenmacher–Biddiscombe (1 year term), Secretary Property Manager Stefania Parnanzone, Taggart Realty ManagementStefania Parnanzone, Taggart Realty ManagementConcierge Samra MehmedagicSamra Mehmedagic 18

19. June 1, 2013 to May 31, 2014 Budget CategoriesNotesYear 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 Management Taggart Realty Management $ 97,225.20 $ 87,787.44 InsuranceAviva $ 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 WaterCity of Ottawa $ 65,000.00 $ 66,000.00 GasEnbridge $ 106,589.00 $ 75,000.00 Utilities Contigency $ - $ 20,000.00 Telephones/Wireless/CableBell/ Rogers $ 3,000.00 $ - Generator FuelPetro-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 StudyMorrison Hershfield $ 6,000.00 $ - Performance AuditMorrison Hershfield $ 10,000.00 $ - General ConsultingTBD $ - $ 3,000.00 19

20. June 1, 2013 to May 31, 2014 Budget 20

21. June 1, 2013 to May 31, 2014 Budget 21