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

2. AGENDA 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 2

3. 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 3

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 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.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 4

5. Performance Audit Report will be issued to Tarion and a copy to Urban CapitalReport 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 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 5

6. Performance Audit Report captures 174 deficienciesReport 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 buildingsMH indicated – PA is Middle Level in comparison of other buildings 6

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 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 7

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 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. 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 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. Reserve Fund Study Present Annual Contribution to the Reserve Fund - $112, 406 (15% of the Operating 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 $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 10

11. 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 8162% Building 9170% Building 10309% Building 11233% 11

12. June 1, 2013 to May 31, 2014 Budget CategoriesNotesYear 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 Management Taggart Realty Management $ 97,225.20 $ 87,787.44 fee for yrs 2 based on new proposal 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 ElectricityEnerCare Connections $ 87,750.00 $ 110,000.00 Based on current invoice, but still in dispute with EnerCare. WaterCity of Ottawa $ 65,000.00 $ 66,000.00 Current to February 2012 GasEnbridge $ 106,589.00 $ 75,000.00 Current to April 2, 2013 Utilities Contigency $ - $ 20,000.00 Telephones/Wireless/CableBell/ Rogers $ 3,000.00 $ - Complimentary services from FibreStream Generator FuelPetro-Canada $ - $ 1,600.00 Consulting $ 22,215.00 $ 19,500.00 LegalNelligan 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 $ - HST included Performance AuditMorrison Hershfield $ 10,000.00 $ - HST included General ConsultingTBD $ - $ 3,000.00 12

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

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

15. 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%) 15

16. Updates from the Board Natural Gas BBQNatural Gas BBQ Sensors in gym/ amenity roomSensors in gym/ amenity room Additional bicycle parkingAdditional bicycle parking Improved SecurityImproved Security LandscapingLandscaping VirtucarVirtucar Car Wash StationsCar Wash Stations AV equipmentAV equipment Fitness Room - PowerFitness Room - Power Communications CommitteeCommunications Committee –Julie Ouellette (chair) – Tracy Dransfield – JP Mirenzi – Blaine Walsh – Chris Sisto –Other volunteers 16

17. Reminders for Residents Balconies & Terraces: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: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. 17

18. 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. Damage & Theft: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. 18

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