1. O.C.S.C.C. No. 903 President’s Report - A Year in Review Annual General Meeting – November 18, 2014 1

2. A Year in Review IntroductionsIntroductions Performance Audit UpdatePerformance Audit Update Reserve Fund Study UpdateReserve Fund Study Update Financial SummaryFinancial Summary Items of InterestItems of Interest General RemindersGeneral Reminders How Can You Get More InvolvedHow Can You Get More Involved 2

3. Board Members Marty van Gaal (3 year term ending Fall 2015), PresidentMarty van Gaal (3 year term ending Fall 2015), President Paul Gallagher (2 year term ending Fall 2014), DirectorPaul Gallagher (2 year term ending Fall 2014), Director Krista Nonnenmacher–Biddiscombe (3 year term ending Fall 2016), SecretaryKrista Nonnenmacher–Biddiscombe (3 year term ending Fall 2016), Secretary Property Manager Stefania Parnanzone, Taggart Realty ManagementStefania Parnanzone, Taggart Realty ManagementConcierge TBDTBD Financial Auditor Annette JensenAnnette JensenLawyer Jim DavidsonJim Davidson 3

4. Performance Audit Update 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. 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 Update Report captured 174 deficienciesReport captured 174 deficiencies –Priority 1 – 21 –Priority 2 – 37 –Priority 3 – 61 –Priority 4 – 53 –Priority 5 – 2 To DateTo Date –115+ deficiencies have been addressed and closed –35 deficiencies are awaiting contractor inspection (elevator and mechanical) –Meetings with Urban Capital to review and address remaining open items 5

6. Reserve Fund Study Update 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 Update 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) a)Paper – spring 2016 for input into the 2016-2017 budget (paid for out of the Reserve Fund) b)Full – spring 2019 7

8. Reserve Fund Study Recommendation from Initial Report (Spring 2013)Recommendation from Initial Report (Spring 2013) -Assumptions – Inflation of 2%, Interest of 3% -2012-2013, contribution of $112,406 (15% of the Operating Budget) be increased to $294,504 (162%) for fiscal year June 1, 2013- May 31, 2014 -Increase by inflation for fiscal years 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 8

9. Reserve Fund – Investment Plan Investment RulesInvestment Rules – All investments must be 100% guaranteed (federal or provincial) – Government (Federal or Provincial) – Investment Funds – Banks ($100,000 CDIC insured) - GICs Current Investments ($665,000 plus earned interest)Current Investments ($665,000 plus earned interest) Fiscal Years 2012-2014 - $95,000, 18 month (2.05%) – Home Trust GIC ( start - Dec 2013) - $95,000, 24 month (1.73%) – Dundee Wealth Bank GIC (start - Dec 2013) - $95,000, 24 month (1.95%) – Equity Financial Trust GIC (start - Dec 2013) -$95,000, 36 month (2.01%) – Manulife GIC (start - Dec 2013) -$95,000, 36 month (1.95%) – Home Equity (start - Feb 2014) Fiscal Year 2014-2015 -$95,000, 24 month (2.15%) – MCAN Mortgage (start - Jun 2014) -$95,000, 36 month (2.05 %) – Equitable Bank (start - Nov 2014) Future Investments - $95,000 GICs (every 4 months)Future Investments - $95,000 GICs (every 4 months) 9

10. Financial - Summary 2013-2014 Year End 2013-2014 Year End – Operating Cash Surplus - $154, 588 – Reserve Fund - $557,906 (Reported stated $414,699, did not include $143,630 in one-time payments) 2014-2015 Budget 2014-2015 Budget –2% overall increase in Condo Fees 2% increase in Operating Budget 2% increase in Operating Budget – Increase to accommodate the maintenance of the building system (no longer covered by warranties) – Utilities and Contingency (increases in costs, usage and unknowns) – Contingency for unforeseen expenses (remainder used for next years budget) 2% increase in Reserve Fund 2% increase in Reserve Fund –48.02 cents per square foot per month –Reserve Fund represents 27.4% of the overall budget 10

11. Other Items of Interest Last AGM – held January 22, 2014 (delay due to finalizing closing costs - EnerCare)Last AGM – held January 22, 2014 (delay due to finalizing closing costs - EnerCare) Information Session – held May 13, 2014Information Session – held May 13, 2014 Installation of ‘entrance restriction bars’ at ground level at the McLeod garage doorInstallation of ‘entrance restriction bars’ at ground level at the McLeod garage door Operating Fund - GIC investment (cashable and 90 day GICs)Operating Fund - GIC investment (cashable and 90 day GICs) Installation of Exterior Fencing – to control dog owners and save plantsInstallation of Exterior Fencing – to control dog owners and save plants Proposed By-Law AmendmentsProposed By-Law Amendments – Insurance Deductibles – Modifications to Common Elements – Screen Doors, hooks in storage lockers, security ring in parking spots – Proxies Landscaping (watering, and weeding) – $$ volunteers (courtyard and exterior)Landscaping (watering, and weeding) – $$ volunteers (courtyard and exterior) Gladstone Garage Door – Upgraded SpringsGladstone Garage Door – Upgraded Springs LEED Gold Certification - June 2014LEED Gold Certification - June 2014 Painting of door frames by a volunteer – saving $$$ for all ownersPainting of door frames by a volunteer – saving $$$ for all owners No Pet signs to be installed in courtyard and landscaping beds outside buildingNo Pet signs to be installed in courtyard and landscaping beds outside building No Smoking signs in courtyard and outside building entrancesNo Smoking signs in courtyard and outside building entrances 11

12. Other Items of Interest (continued) Provided to your UnitProvided to your Unit –Domestic Hot and Cold Water –Conditioned Glycol Loop for HVAC (cooling and heating) Town Hall (March 12, 2014) – Bicycles in lobbies and elevatorsTown Hall (March 12, 2014) – Bicycles in lobbies and elevators Amenity RoomAmenity Room –due to user abuse – lockable AV Rack –Booking for 8 or more people Cornerstones and LEED PlaquesCornerstones and LEED Plaques ConciergeConcierge –Searching for Replacement –Updated Job Description Installation of Notice BoardsInstallation of Notice Boards Replacement of Courtyard PlantsReplacement of Courtyard Plants Development of www.central1condo.comDevelopment of www.central1condo.com www.central1condo.com 12 Common Elements and Exclusive Use Common Elements (Balcony, Parking, Locker)Common Elements and Exclusive Use Common Elements (Balcony, Parking, Locker) Gladstone Garage Door – 50/50 between Condo Corporation and CommercialGladstone Garage Door – 50/50 between Condo Corporation and Commercial Upcoming Changes to McLeod Garage Door (100% Condo Corporation) – to reduce operational cost by reducing usage to Residents OnlyUpcoming Changes to McLeod Garage Door (100% Condo Corporation) – to reduce operational cost by reducing usage to Residents Only –Remote Control Exit Only (removal of sensor) –Eliminate Through Traffic –Paid/Visitor Parking – Exit Gladstone Only –Residents – Exit Gladstone or McLeod –Reduce Opening Height –Installation of Heavy Duty Springs

13. Other Items of Interest (continued) ContractsContracts o Snow Removal o Garage Door Maintenance o Fitness Room Maintenance o Elevator Maintenance o Generator and Fire Alarm Testing o General Cleaning (5 days per week) o General Maintenance (end of Doran 1 year warranty) o Carpet Cleaning (2 nd Floor – 4 times, others – 2 times o Property Management o Window Cleaning (annual) o Garage Floor Cleaning (twice per year) o Weekend Security Guard (Friday to Sunday – 7:30pm to 2:30pm) 13

14. Reminders for Owners and Residents Balconies/Terraces, Parking Spots:Balconies/Terraces, Parking Spots: –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, Doggie Mats/Kitty Litter Pans, etc. –No storage (except bicycles) in Parking Spots –Warnings and Administration Costs will be issued Unit owner is responsible for all maintenance and repair in their units (e.g.)Unit owner is responsible for all maintenance and repair in their units (e.g.) –Replacement and/or cleaning of filters (HRV, HVAC, Dryer) –Issues with the HRV (Heat Recovery Ventilator) and HVAC (Heating, Ventilating and Air Conditioning) Systems –Items related to Interior Plumbing, Fixtures and Entry Doors 14

15. Reminders for Owners and Residents Noise & Disturbances:Noise & Disturbances: –All residents are entitled to quiet enjoyment of their unit. –Report disturbances to Concierge/Security Guard –Keep Log and Report to Ottawa By-Law (3-1-1) Smoking:Smoking: –Not permitted in any common area, including 2 nd level courtyard and stairwells –Do not throw cigarette butts from balconies – disposal receptacles 15

16. Reminders for Owners and Residents 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 AV System, Damage Walls, Pool Table Cover, Fire Exit Map, Fire Extinguishers, Glued Door BoltsAV System, Damage Walls, Pool Table Cover, Fire Exit Map, Fire Extinguishers, Glued Door Bolts –Report suspicious activity to building staff or PM 16

17. Reminders for Owners and Residents Communication with Property ManagerCommunication with Property Manager –Except for emergencies, ONLY the owner is to communicate with the Property Manager and Board –Renter – (except for emergencies) report issues/concerns to their LANDLORD ONLY –Owner is responsible for the actions of their tenant –Owners are responsible to inform their tenant of declarations, bylaws and rules (e.g. smoking, pets, no barbeques, bicycles, etc) –Problems in a unit (e.g. fire, water spill) that may/will impact other units are to be reported immediately (Concierge, Property Manager, After-Hour Emergency Line) –The Condo Corporations responsibility ends at a unit door. The owner is responsible for all items within their unit (e.g. replacing furnace filters, cleaning HVAC and dryer filters, maintaining and repairing their HVAC system, door handles/locks) –Owner can make a request to communicate with the Board 17

18. Reminders for Owners and Residents Communication with ConciergeCommunication with Concierge –Booking the Amenity Room –Booking the Elevator for Moving –Reporting possible Declaration, Bylaw and Rule infractions –Parcel pickup –Reporting Common Element Issues (e.g. Garbage Room/Chute, Amenity Room – AV system, Fitness Equipment, Garage Doors) –Up to Unit Door (Common Elements Only) Central1Condo.Com (still maturing)Central1Condo.Com (still maturing) –Booking forms (elevator, amenity room) –General Information (e.g. programming thermostat) –Declarations, Bylaws, Rules –Contact Information 18

19. How Can You Get More Involved Examples of possible volunteers (committee)Examples of possible volunteers (committee) –Landscaping (exterior and courtyard - maintain) –Web site administrator –Financial (monthly budget update, summarize, recommend options and note any discrepancies) –Communication – e.g. newsletter, social events –Common Element Operations and Improvements Recommend building improvements with cost estimates,Recommend building improvements with cost estimates, Recommend changes to polices/procedures, etc.Recommend changes to polices/procedures, etc. 19

20. Backup Slide 20

21. June 1, 2014 to May 31, 2015 Budget 21 CategoriesNotes Year 2 (Budget) Year 2 (Year End Projection) Year 3 (Budget)Notes: Revenue -$ 1,073,377.50-$ 1,083,445.50-$ 1,208,478.47 Common Element Fees -$ 1,073,377.50 -$ 1,094,845.052.0% increase Miscellaneous Income $ - -$ 10,068.00-$ 8,000.00 Suprlus from Previous Year -$ 105,633.42 Administration $ 115,287.44 $ 114,475.00 $ 116,137.44 Management Taggart Realty Management $ 87,787.44 $ 87,780.00 $ 87,787.44Based on existing agreement InsuranceAviva $ 25,000.00 $ 25,295.00 $ 26,500.00 Office Expenses $ 2,000.00 $ 1,125.33 $ 1,500.00 Bank Charges $ 500.00 $ 274.67 $ 350.00 Utilities $ 272,600.00 $ 193,078.36 $ 270,398.03 ElectricityEnerCare Connections $ 110,000.00 $ 80,255.69 $ 96,306.83Based on Year 2 consumption WaterCity of Ottawa $ 66,000.00 $ 57,737.33 $ 69,284.80Based on Year 2 consumption GasEnbridge $ 75,000.00 $ 46,576.00 $ 65,206.40Based on Year 2 consumption Utilities Contigency $ 20,000.00 $ - $ 30,000.00 Telephones/Wireless/CableBell/ Rogers $ - $ 7,109.33 $ 8,000.00 Generator FuelPetro-Canada $ 1,600.00 $ 1,400.00 $ 1,600.00 Consulting $ 19,500.00 $ 12,452.00 $ 19,500.00 LegalNelligan O'Brien Payne $ 10,000.00 $ 4,952.00 $ 10,000.00 Audit (Financial)WPGCA $ 6,500.00 Reserve Fund Study $ - Removed from budget - included in RF Performance AuditMorrison Hershfield $ - $ 1,000.00 General ConsultingTBD $ 3,000.00 $ - $ 2,000.00

22. June 1, 2014 to May 31, 2015 Budget 22 Maintenance & Repairs $ 23,000.00 $ 12,502.00 $ 40,000.00 General Rep. & Main Enterphone, signs, doors etc. $ 18,000.00 $ 10,243.33 $ 25,000.00General repairs and improvements Building Supplies Fobs, mats, garbage cans etc $ 5,000.00 $ 2,258.67 $ 15,000.00Fobs, mats, garbage cans, paint, etc. Contracts $ 183,300.00 $ 179,587.56 $ 212,250.00 Elevator MaintenanceSchindler Elevator $ 25,000.00 $ 35,056.00 $ 35,000.00Monthly maintenance Life Safety Inspections & MonitoringActivox/ Pyron Fire $ 12,000.00 $ 8,835.00 $ 10,000.00 Inspections & maintenance, emergency monitoring Fitness Equipment MaintenanceExertech $ 1,200.00 $ 1,965.33 $ 2,000.00Quarterly maintenance, repairs Garage Overhead DoorsAl Parsons Electric $ 8,000.00 $ 8,593.33 $ 10,000.00Quarterly maintenance, repairs Garage CleaningVan's Pressure Wash $ 3,500.00 $ 2,802.00 $ 13,500.00Twice per year Compactor Lease/ MaintenanceCKS Leasing Solutions $ 20,000.00 $ 19,277.33 $ 25,000.00 Lease Payments (June 2018), maintenance, repairs Waste RemovalBFI/ WSI $ 10,000.00 $ 11,045.33 $ 12,000.00Extra pick-ups, contaminated bins General CleaningDodd's Janitorial $ 58,500.00 $ 55,624.00 $ 56,500.00Regular cleaning, special projects Carpet CleaningTBD $ 3,000.00 $ 4,000.00Professional full cleaning Generator InspectionsGal Power $ 5,500.00 $ 7,584.00 $ 7,000.00Monthly maintenance, annual inspection HVAC MaintenanceOptimum Mechanical $ 16,500.00 $ 9,860.00 $ 15,000.00 2 major, 2 mid-season, 4 regualr inspections, repairs LandscapingExcel Landscaping/ TBD $ 3,000.00 $ 2,497.33 $ 3,000.00Plants, etc Snow RemovalMarsten Equipment $ 2,500.00 $ 2,645.56 $ 2,750.00contract price, extra snowfall Water Treatment SystemAshland Corp. $ 6,600.00 $ 5,933.33 $ 7,000.00Monthly maintenance, repairs Window CleaningWindow Butler $ 8,000.00 $ 7,869.00 $ 9,500.00Once per year

23. June 1, 2014 to May 31, 2015 Budget 23 Other $ 131,823.28 $ 98,372.67 $ 127,000.00 General Contigency $ 30,000.00 $ - $ 25,000.00Insurance reserve, contingency Website $ 4,000.00 $ 550.00 $ 4,000.00To be finalized Green Building Cost Recovery Loan $ 97,823.28 $ 97,822.67 $ 98,000.00 Monthly payments on a $500,000 Loan - amortized over 6 years with fixed 5 years at 5.489% expiring on October 1, 2017. $95,043 remaining as of October 1, 2017. Staff $ 75,300.00 $ 72,840.00 $ 89,800.00 Building StaffConcierge Service $ 42,000.00 $ 40,668.00 $ 45,000.00 Salary, holiday coverage, after hour coverage, CPI Employee BenefitsBlue Cross $ 800.00 $ - $ 6,300.00Health, training, WSIB After-hours On-CallIhsan Ismail $ 7,500.00 $ 6,372.00 $ 7,500.0026 weeks (carrying and approx call outs) Weekend Security/ Mobile PatrolGarda $ 25,000.00 $ 25,800.00 $ 31,000.00Weekend Security/Mobile Patrol SUB-TOTAL $ 823,310.72 $ 683,307.58 $ 875,085.47 TOTAL (excluding Reserve Fund) $ 778,873.50 $ 683,307.58 $ 875,085.47 RESERVE FUND CONTRIBUTION $ 294,504.50 $ 300,394.59As per RFS contribution increase of 2% GRAND TOTAL $ 1,073,377.50 $ 977,812.08 $ 1,175,480.06 Year End Surplus/Deficit $ 44,437.22 $ 105,633.42 $ 32,998.41

24. 30 Year Reserve Fund Cash Flow 24 Year Ending In May 31 Opening Balance Annual Contribution* Percent Increase over Previous Year Other Contribution Estimated Future Inflated Expenditures Projected Interest Earned Closing Balance 2013 112,406 2014112,406294,504162.0% 7,790414,699 2015414,699300,3942.0% 16,947732,040 2016732,040306,4022.0% 6,36726,4621,058,536 20171,058,536312,5302.0% 40,05035,8431,366,859 20181,366,859318,7802.0% 45,7871,731,427 20191,731,427325,1562.0% 70,94855,7562,041,391 20202,041,391331,6592.0% 66,2172,439,266 20212,439,266338,2922.0% 4,68778,1822,851,054 20222,851,054345,0582.0% 69,31589,6683,216,464 20233,216,464351,9592.0% 101,7733,670,197 20243,670,197358,9982.0% 289,706111,1453,850,634 20253,850,634366,1782.0% 12,682120,8214,324,952 20264,324,952373,5022.0% 5,174135,2734,828,553 20274,828,553380,9722.0% 935,510136,5394,410,553 20284,410,553388,5912.0% 161,504135,7234,773,363 20294,773,363396,3632.0% 149,1465,318,873 20305,318,873404,2912.0% 165,6315,888,794 20315,888,794412,3762.0% 19,995182,5506,463,724 20326,463,724420,6242.0% 793,962188,3126,278,698 20336,278,698429,0362.0% 153,053192,5016,747,182 20346,747,182437,6172.0% 1,332,271188,9966,041,524 20356,041,524446,3692.0% 97,397186,4806,576,977 20366,576,977455,2972.0% 567,684195,6246,660,213 20376,660,213464,4032.0% 4,075,780145,6363,194,472 20383,194,472473,6912.0% 1,368,26582,4162,382,313 20392,382,313483,1652.0% 878,54565,5392,052,472 20402,052,472492,8282.0% 3,41468,9152,610,801 20412,610,801502,6842.0% 6,96485,7603,192,281 20423,192,281512,7382.0% 3,599,63749,465154,847

25. 30 Year Reserve Fund Cash Flow 25 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

26. EnerCare Issues EnerCareEnerCare – Errors (missing units, incorrect meter readings) – 10 year Contract – Jan 2009 – Early Contract Cancellation (May 2014) - $679 per unit 26