DEPRECIATION REPORT

M OUNTAINWOOD
8686 & 8688 C ENTAURUS C IRCLE , 9146-9155 S ATURNA
D RIVE AND 9126-9138 C APELLA D RIVE
B URNABY , BC

PREPARED FOR: The Owners, Strata Plan NW962

c/o Tribe Management Inc.
419 – 1155 West Pender Street
Vancouver, BC

DATE: SEPTEMBER 20, 2021

JRS PROJECT: VR15256F

PREPARED BY: Daniel Shim, B.ASc., EIT

Engineer

REVIEWED BY: Wesley Narciso, M.Eng., P.Eng., CRP, PRA

Senior Project Engineer | Division Manager

B U I L D I N G EXCELLENCE
VANCOUVER CALGARY WWW.JRSENGINEERING.COM
300 – 4595 Canada Way 115 - 1925 18 th Avenue NE
Burnaby, BC, V5G 1J9 Calgary, AB, T2E 7T8
tel: (604) 320.1999 tel: (403) 452.3377
PREFACE
The purpose of this Depreciation Report is to assist the owners in the asset
management of their property with respect to the major building systems and
components. JRS has reviewed pertinent building documents, communicated with
building representatives, and performed a visual site review, all of which is
summarized in this report.
The provisions of this Depreciation Report, including Reserve Planner qualifications,
insurance requirements and site review and reporting methods, address all the
requirements of the current Strata Property Act (Section 94) and its associated
Regulation – BC Reg43/2000 (Part 6). These methods are also consistent with nation-
wide standards and guidelines provided by the Real Estate Institute of Canada (REIC).
In accordance with Strata Property Regulation requirements, JRS Engineering Ltd.
confirms that it and its employees, directors and affiliates are unaware of any
conflicting relationship with the strata corporation. This Depreciation Report is being
provided independently, with no other purpose than to provide the strata corporation
with an objective report in accordance with the Engineering Services Agreement
executed on August 3, 2021.

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TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY ....................................................................... 1
2.0 TERMS OF REFERENCE........................................................................ 4
2.1 GENERAL LIMITATIONS.................................................................................. 4
2.2 REPORT ORGANIZATION .............................................................................. 4
2.3 BUILDING DESCRIPTION ................................................................................ 5
2.4 DOCUMENTS REVIEWED ............................................................................... 6
2.5 SITE VISITS .................................................................................................... 7
3.0 INTRODUCTION.................................................................................. 7
3.1 BACKGROUND .............................................................................................. 7
3.2 METHODOLOGY ........................................................................................... 8
3.3 UPDATING .................................................................................................... 8
4.0 TECHNICAL INVENTORY .................................................................... 9
4.1 BUILDING ENVELOPE AND STRUCTURE .......................................................... 9
4.2 MECHANICAL ............................................................................................. 11
4.3 ELECTRICAL ................................................................................................. 11
4.4 SPECIALTY .................................................................................................. 12
4.5 SITE SERVICES ............................................................................................ 12
5.0 FINANCIAL ANALYSIS ...................................................................... 12
5.1 RESERVE FUND: HISTORICAL DATA ............................................................ 12
5.2 RESERVE FUND: LIFE CYCLE RENEWAL COSTS .......................................... 12
5.3 RESERVE FUND: 30-YEAR COST PROJECTION .......................................... 14
5.4 FUNDING MODELS..................................................................................... 15
5.5 SUMMARY OF RESULTS AND ADEQUACY OF RESERVE FUND ..................... 16
5.6 CONSIDERATIONS ...................................................................................... 17
6.0 RECOMMENDATIONS ....................................................................... 17
7.0 CLOSURE........................................................................................... 19

APPENDICES
APPENDIX A TECHNICAL INVENTORY - COMPONENT DESCRIPTIONS
APPENDIX B LIFE CYCLE RENEWAL COSTS (BENCHMARK ANALYSIS)
APPENDIX C FUNDING MODELS & COST PROJECTIONS
APPENDIX D CASH FLOW TABLE
APPENDIX E RESERVE PLANNING TEAM
APPENDIX F GLOSSARY OF TERMS

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1.0 EXECUTIVE SUMMARY
JRS Engineering Ltd. (JRS) was retained by The Owners, Strata Plan NW962
to complete a Depreciation Report on Mountainwood, located at 8686 &
8688 Centaurus Circle, 9146-9155 Saturna Drive and 9126-9138 Capella
Drive, Burnaby, BC. The purpose of this report is to assist in allocating the
anticipated reserve fund expenditures associated with the major systems and
components of the building. This executive summary should be read with the
rest of the report in its entirety to recognize the full context.
Since JRS has created hundreds of Depreciation Reports to date, we have
compiled some useful information for the benefit of our clients to illustrate how
your property compares to others of similar type, size and age. The table
below compares other townhouse properties containing 134-430 units built
around the same era as your property.
Table 1 – Comparative Summary of CRF Finances to Similar Projects:
#
Year # of Operating Annual CRF Total $ of SL in Inflation Adjusted Monthly Contribution
Property CRF Balance SL
Built Units Budget Contribution 30-yrs Total $ Strata Fee $ /ARFA
s*
1 1976 134 Unknown $ 646,806 $ 133,938 5 $ 7,534,853 $ 9,544,926 Unknown 26%
2 1990 178 $ 532,184 $ 284,603 $ 104,500 10 $ 15,590,841 $ 19,750,011 $ 249 14%
3 1984 143 $ 672,658 $ 432,955 $ 67,200 16 $ 12,273,499 $ 15,547,701 $ 392 14%
4 1965 167 $ 772,884 $ 221,685 $ 20,000 15 $ 10,705,291 $ 13,166,158 $ 386 4%
5 1977 430 $ 1,634,481 $ 1,016,749 $ 61,285 2 $ 1,411,457 $ 1,787,991 $ 317 58%
6 1974 411 $ 2,017,681 $ 1,155,502 $ 317,534 8 $ 11,308,675 $ 13,109,854 $ 1,604 26%
Your
1978 282 $ 1,528,618 $ 441,131 $ 633,000 3 $ 27,912,341 $ 27,912,341 $ 447 29%
Property
* Number of estimated special levies/assessments based on their baseline 30-year cost projection/funding
model

The operating budget and annual CRF contributions for Mountainwood is

relatively high; however, it is worth mentioning that Mountainwood is
considerably larger than 4 of the other properties. Due to the age of the
buildings and substantial size of the property, the cumulative cost of special
levies (SL) is highest which means significant renewal costs are expected in the
30-year outlook, more specifically in the very short term. Lastly, the
“Contribution” divided by the “ARFA” (Annual Reserve Fund Assessment)
percentage, which is one of the best metrics in indicating how a strata
property’s CRF finances are doing, second highest at 29%. The goal for every
property should be to get between 30% to 50%. The ARFA is the theoretical
annual contribution to the CRF that is required to ensure no asset related
special levies occur within the 30-year outlook. The Contribution/ARFA ratio
associates how much the owners contribute, relative to how much is needed,
and is therefore the single best value or factor in determining how “good” or
“bad” a strata corporation’s CRF finances are.
Based on significant expenditures estimated in the next 4 years, it would be
prudent for the strata corporation to increase its Contingency Reserve Fund
(CRF) contributions. The strata corporation’s current annual CRF contribution is
approximately $633,000. We recommend you increase your CRF
contributions per the Graduated Hybrid model presented in Appendix D.

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 After the building envelope and piping projects are complete, the CRF
contributions can be reduced.
While JRS recommends prudent and practical increases in the strata
corporation’s annual CRF contributions, we understand that ideal contribution
increases may not occur. At the very least, this report should be used as
supplemental information and an education tool for current owners and
potential buyers to save for possible upcoming special levies.
In the short term, the strata council should perform the following high priority
items:
 Hire a professional engineer with a specialty in building science to
conduct a building envelope condition assessment (BECA) for the parkade,
exterior walls, fenestration assemblies, balconies assemblies, breezeways
and roofs (mainly Items 1, 3, 5, 7, 9, 12, 14, 16, 17 and 20). Based on
the findings, plan for a major building envelope renewal project in the
upcoming years.
 Hire a professional mechanical engineer to conduct a condition assessment
on the domestic water piping prior to the major renewal (Item 27).
Over the next three years (before or on the next Depreciation Report
update), the strata council should also consider the following:
 Hire a professional mechanical engineer to conduct a condition assessment
of the mechanical systems in the pool building (Item 29 to 31).
 Cleaning and maintenance of the electrical room components in the
townhouse buildings (Item 32).
 Hire a professional electrical engineer to review the power distribution
and conduct repairs to the interior wiring (Item 33).
 Hire a fire protection professional to review the fire alarm system and
perform replacement as needed (Item 34).
 Replacement of the residential mailboxes during building envelope
renewal (Item 39).
 Renewal of the softscaping and hardscaping during the building envelope
renewal project (Items 40 and 41).
 Flushing/scoping of the underground drainage lines (Item 42).
 Renewal of wooden fencing at ground-floor patios (Item 44).
 Repairs for the pathway bridges along the walkway next to the office
building (Item 45).

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 The following is a summary of the most pertinent financial values within a 30-
year outlook:

Table 2 – Summary of Pertinent CRF Financial Information:

ITEM COST
Current Replacement Costs $ 33,928,701
Future Replacement Costs $ 42,838,905
Current Reserve Fund Requirements $ 27,177,789
Future Reserve Fund Requirements $ 15,571,612
Current Annual Reserve Fund Contributions $ 633,000
Theoretical Fully Funded Annual Reserve Fund Contributions $ 2,172,474
Target Annual Reserve Fund Contributions (90%) $ 1,955,227

Our financial analysis includes three funding models: Baseline, Theoretical

Fully Funded, and a Graduated Hybrid.
The Baseline model consists of current contribution levels or the statutory
minimum, whichever is higher. In this case, it is the former as the annual
contribution amount is $633,000. This would lead to 3 potential special levies
within the 30-year outlook with a significant cumulative cost of $27,912,341.
The Theoretical Fully Funded model creates a fully funded CRF that
theoretically should not require any special levies (physical asset based)
within a 30-year outlook. However, this theoretical model would require the
owners to increase their current contributions significantly, which would be
financially challenging for many and impractical to try to pass at a general
meeting.
The Graduated Hybrid model is a funding strategy that JRS recommends,
which will allow the strata corporation to gradually increase their
contributions to 90% of a fully funded contribution level by 2025, then
implementing inflationary increases – slightly reducing the cumulative cost of
special levies in the 30-year outlook to $24,802,145. Contribution level is
lowered to 40% of a fully funded contribution in 2026, then implementing
inflationary increases.
It is incumbent on the owners to decide what funding strategy works best for
them and to tailor their own, customized financial plan. The Cash Flow Table
for the recommended Graduated Hybrid Funding model is included in
Appendix D for your review.

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2.0 TERMS OF REFERENCE
As the information of all Depreciation Reports is comprehensive and
subjective, a draft report was issued on September 16th, 2021 in order to
obtain feedback and commentary on any chronological mistakes and
reporting errors. We have acknowledged all comments and made all
appropriate revisions that we feel prudent and technically justifiable. It is
important to understand that these reports are intended to be dynamic,
“work-in-progress documents”, which should be continually updated to be
practical documents.

2.1 GENERAL LIMITATIONS

JRS assumes that this is the first Depreciation Report provided by JRS for this
property (requiring a site visit and a full compilation of asset inventory). We
also assume that the building systems were built and completed with no known
deficiencies in design and that construction procedures performed were in
general conformance with the documents provided by the owners and
property manager, unless otherwise noted.
The drawings, diagrams and photographs presented in this report are
included for illustration purposes. No legal survey, soil analysis, detailed
investigations, quantity survey compilations, nor exhaustive physical
examinations, representative sampling or intrusive tests were performed,
which would be required to discover any hidden conditions within the
property.
JRS’ technical area of expertise is within the building envelope. Items such as
mechanical, electrical, conveyance and site service systems have been
reviewed in a general nature for the purposes of budgeting and can be
reviewed in a more detailed fashion should the owners wish to do so.
Accordingly, we have identified any items that require a more comprehensive
review by appropriate professionals.
Replacement costs are subjective. They are based on a combination of
company experience, building documents and historical construction data. It
must be appreciated that reserve fund budgeting and projections are not an
exact science. At best, they are prudent provisions for typical life cycle
renewal costs, if and when they arise. Reserve fund requirements are subject
to change and must be reviewed and revised periodically.
JRS Engineering maintains errors and omission insurance (Professional Liability
Insurance) through our Certificate of Insurance, which is renewed on an annual
basis.

2.2 REPORT ORGANIZATION

Section 1.0 presents an executive summary of the depreciation report.
Section 2.0 presents our terms of reference outlining general limitations of the
report, how this report is organized, a general building description, all
relevant building documents reviewed, and when the site visit(s) were
performed.

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 Section 3.0 presents an introduction to the report. This includes a brief
background to Depreciation Reports, methodology used to create one, a
general description of all reserve systems and components, as well as a short
note on updating the report.
Section 4.0 presents a technical inventory of each building system consisting
of a general description and history relating specifically to this property.
Section 5.0 presents a financial analysis of each building system consisting of
historical data, life cycle renewal costs, and at least three funding models with
30-year cost projections (as required by the Strata Property Regulation). A
summary and opinion of adequacy of the CRF, with considerations is also
included.
Section 6.0 presents our recommendations to the owners.
Section 7.0 presents our report closure and limitations.
Included as part of this report are the following appendices:
Appendix A – Technical Inventory - Component Descriptions
Appendix B – Replacement Costs (Benchmark Analysis)
Appendix C – Funding Models and Cost Projections
Appendix D – Cash Flow Table
Appendix E – Reserve Planning Team
Appendix F – Glossary of Terms

2.3 BUILDING DESCRIPTION

Mountainwood consists of nine, three-storey wood-frame buildings with
above-grade parkades that were constructed circa 1978, consisting of 26
townhomes and a total of 282 units.
The complex has significant amounts of landscaping which includes several tall
trees, shrubs, grass and paved driveways/parking lots. Landscaping is
generally located along the streets (Centaurus Circle, Saturna Drive and
Capella Drive) and not immediately close to all townhouse buildings. In
addition, there are no tall buildings adjacent to this complex. To the northeast
side of the property, there are low-rise residential buildings of similar size to
Mountainwood. Along the south side of the property there is Simon Fraser Hills
Park and Stoney Creek Community School. Therefore, the townhouse buildings
are generally exposed to the elements.
Prior remediation work includes low-slope roof replacement at townhouse
buildings, wood and stucco cladding replacement at select areas, targeted
balcony replacement, and replacement of most ground-floor breezeways.
Shared common areas at Mountainwood include an office building, a
swimming pool and a recreation building as on-site amenities.

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 A general description and site plan of the property are summarized below:
Table 3 – Basic Property Information:
DESCRIPTION
Construction Date 1978
Applicable Building Code National Building Code 1970
Number of Buildings 11
Number of Storeys 3
Number of Units 282

Figure 1 – Site Plan of Mountainwood taken from Google Maps

2.4 DOCUMENTS REVIEWED

The following documents were provided for our review as resources for this
Depreciation Report:
Plans/Drawings and Technical Documents
 Architectural – Beinhaker/Irwin Associates; September 1975
 Structural – Sayers Engineering Ltd.; December 1975
 Depreciation Report – Absolute Building Science Strata Engineering Inc.;
July 2015
Non-Technical and Financial Documents
 AGM Minutes from 2019-2021
 SGM Minutes from 2019 and 2021
 Approved Operating Budget and Fees 2020-2021
 Financial Statements April 2021
 Miscellaneous contracts and proposals which includes roofing, concrete
repairs, crawlspace maintenance, deck and siding replacement).

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 In addition, we interviewed and communicated with David Locke (Property
Manager) as supplementation to the building history and supporting
documents.

2.5 SITE VISITS

Daniel Shim, B.ASc., EIT, and Wesley Narciso, M.Eng., P.Eng., CRP, PRA, of JRS
visited Mountainwood on August 11, 2021. Access to the common areas,
electrical and mechanical room in the recreation building was provided by
Joanna Sleeman (Office Administrator). Access to the interior and unit balcony
was provide for units 103-9150 Saturna Drive and 302-9152 Saturna Drive.
The weather was sunny with an average temperature of 23˚C.
Estimators from Dura Seal Ltd. also visited Mountainwood in August 2021 to
assist with costing for the building envelope components.

3.0 INTRODUCTION

3.1 BACKGROUND
The terms Contingency Reserve Fund Study and Depreciation Report have been
used interchangeably. The former is typically used across Canada and the
latter is the terminology used in the Strata Property Act of BC. Therefore,
Depreciation Report will be used for reporting purposes. It should be noted
that a Depreciation Report is not a technical report, but more of a financial
report that contains technical descriptions and predictions intended to assist
the owners with the prudent fiscal management of their CRF.
A Depreciation Report is a financial plan that consists of the identification,
description, quantification and analysis of reserve components, and then
provides cost estimate and life cycle analysis, projecting future repair or
replacement costs and estimating the necessary reserve fund requirements. It
also takes into consideration inflationary trends, interest assumptions, and
appropriate funding models.
Depreciation Reports are a basis for prudent financial planning for capital
expenditures, intended to assist owners and property managers with informed
decision making on CRF matters such as investment, management, and
budgeting. In essence, it provides a guide for the owners to save sufficient
funds to cover the costs of future repairs and replacements of major building
systems and components, as well as to help ensure that current and future
owners are assessed for CRF contributions fairly and equitably.
Per the Strata Property Regulation, we are required to state our relationship
with the Strata Corporation. JRS staff who created this Depreciation Report
simply serve as independent parties and do not have conflicting relationships
with the Strata Corporation or Property Management Company.

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3.2 METHODOLOGY
There are generally four main components in the Depreciation Report
production process:
1) Background Review
JRS reviews the pertinent technical, financial and legal records related to
the building for the purposes of writing a Depreciation Report. We also
communicate with building representatives in order to confirm CRF
financial information, previous capital expenditures, system replacements,
maintenance strategies, and upcoming renewals. This gives us a deeper
understanding of the financial situation, building maintenance and the
overall context of the asset management history.
2) Site Visit
JRS visits the property to visually review all the major building systems
and components, which can include making notes and sketches, as well as
taking site measurements and photographs. Intrusive/destructive
investigation or inspection by specialized professionals does not typically
take place, as Depreciation Reports are meant to provide a general
overview of component conditions.
3) Technical Inventory
JRS compiles an inventory of items that summarizes descriptions of all the
major systems and components into a practical list of reserve items. To
keep the list simple and easy to use, in some cases we have grouped
together items that have minor renewal costs as well as similar
maintenance and replacement dates. For example, roof components such
as insulation, rock ballast, vents, and eave flashings are not reserved
separately; instead, they are grouped together, as they will likely be
replaced at the same time. Replacement dates are estimated based on
typical service life and effective ages.
4) Financial Analysis
JRS’ financial analysis is consistent with those outlined and recommended
by the REIC. It uses the Cash Flow Funding method, which presents
estimated current and future replacement costs for the CRF as a whole, as
well as an accumulated CRF balance, using assumed inflation and interest
rates. Units and dimensions are taken either directly from site, drawings,
archived data on various governmental websites, or a combination of all
of these sources. We provide at least three funding models to assist the
owners with their CRF contribution strategy. Unit rates and allowances are
based on similar completed projects, contractor quotes and other costing
manuals/data.

3.3 UPDATING
Per the Strata Property Regulation - Part 6.2(7)(a), unless a 3/4 exemption
vote is passed, strata corporations require a new or updated Depreciation
Report every 3 years.

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 Furthermore, it is important that the strata council review the Depreciation
Report annually to confirm accumulated CRF balance and contributions,
document all expenditures and ensure that deterioration of certain building
systems/components has not accelerated.
Continually updating your Depreciation Report will not only mitigate
insufficient reserve funds for major repairs/renewals, but it will also enhance
the value and durability of the property.

4.0 TECHNICAL INVENTORY

The technical inventory and reserve component descriptions below are
property specific and based on building documents, visual review and
communication with building representatives.
This technical inventory is categorized in the Uniformat sections listed below
and summarized in component description boxes consisting of location,
installation date, typical service life, effective age, remaining service life,
planned renewal date, general description and condition as well as short term
action. These reserve component description boxes are located in
Appendix A. These generally provide information on what is included in the
cost estimation of the physical assets.
An overall general description and system history are presented for each of
the major building systems below.

4.1 BUILDING ENVELOPE AND STRUCTURE

Major building envelope components consist of roofs, windows/skylights,
doors, wall cladding, balconies and breezeways, as well as associated
waterproofing, membranes, metal flashings, sealants and paint coatings.
Mountainwood has three types of roof systems: a low slope SBS roof and
steep slope roofs with either cedar shakes or asphalt shingles. According to
the information provided, the low slope roofs on the townhouse buildings were
renewed in different phases starting in 2014. At some of the renewed areas,
the cedar shakes on the steep slope roofs have been replaced with asphalt
shingles, while other areas have the original cedar shakes. Multiple
contractors were used during the roof renewal projects including Mac Roofing
& Siding Inc., Coast Mountain Roof, and Mack Kirk Roofing & Sheet Metal Ltd.
The window assemblies consist of aluminum framed punched windows with
single-glazed insulating glass units (IGUs). The windows are from original
construction.
The balcony doors consist of aluminum framed sliding doors with single-
glazed IGUs. The doors are from original construction.
The cladding consists of cedar and stucco cladding. The wall assemblies are
mostly from original construction. According to the information provided,
targeted cladding renewals have been completed at multiple wall areas and
unit balconies starting in 2019.

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 Balcony membranes are also included in this section. The ground-floor
balconies are waterproofed with a liquid applied traffic membrane on
plywood sheathing. The second and third floor balconies appear to have
wood plank decking with an underlying SBS waterproofing membrane on
plywood sheathing. Parapet walls surround the perimeter of unit balconies
and do not have balcony guardrails installed.
Breezeways consist of either concrete pavers or concrete topping with an
underlying waterproofing membrane on the suspended slab. Renewed
breezeways were identified with concrete paver finish and PMMA
waterproofing as per the design drawings. JRS was previously involved in the
breezeway and eyebrow waterproofing projects at Buildings
9126/9128/9130/9132 Capella Drive and 9146/9148/9150 Saturna
Drive. JRS understands that other breezeways appear to have been renewed
at other locations as observed on site.
We have also included allowances for exposed structural elements, which
may require targeted renewals prior to the end of the building lifespan.
This includes structural components and wood framing members that are not
included in the building enclosure, which may require renewal prior to the end
of the building lifespan, such as the parkade slab and walls.
JRS was involved in prior concrete repair projects at the parkade suspended
slabs in Buildings 9126/9128/9130/9132 Capella Drive and
9146/9148/9150 Saturna Drive. JRS understands targeted repairs have
been completed at other parkade slab areas since JRS’ last involvement at
this property.
Sealant and paint renewals are subjective and can vary from property to
property. As a standard approach, we typically recommend significant
sealant renewal and painting projects to occur concurrently within 7 to 10-
year cycles. However, sections of sealant should be replaced upon failure
(e.g. cracks, crazing, de-bonding, etc.), especially in critical locations. Some
properties may have to perform annual maintenance or pursue a targeted
sealant renewals program more frequently (every 2 to 5 years) than shown in
our cost projections.
In general, building envelope renewals will eventually be required in the
short-term considering that multiple building envelope components at
Mountainwood have either reached or surpassed its service life. Typical
service lives range from 25 to 35 years for many building envelope
components. Targeted renewals for some components have been conducted
and are ongoing at Mountainwood; however, given the age of the property,
it may be beneficial and more efficient to consider a larger or full-scale
renewal project in the upcoming years. In the funding models shown in
Appendix C, building envelope renewals are projected for 2023 to 2025
occurring as a multi-phase project. The renewal dates of building envelope
components may be revisited and adjusted based on the findings from a
building envelope condition assessment (BECA).

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4.2 MECHANICAL
The mechanical systems for this complex generally consist of plumbing (i.e.
water pipe distribution, natural gas pool heaters, and hot water tanks) and
fire protection components.
The domestic water piping and sprinkler piping are assumed to be from
original construction.
The hot water tank in the pool building was replaced in 2014.
Costs to renew domestic water piping should be viewed with caution.
Numerous factors such as hazardous materials (e.g. asbestos in the drywall),
BC Building Code changes, material costs/upgrades as well as complicated
plumbing designs and high end interior furnishings can significantly affect the
estimated cost of this asset. It should also be noted that while pipe
replacement is common, there are other types of options available to the
owners (e.g. internal coatings, altering water chemistry). JRS does not
officially endorse any particular approach, as every property consists of
varying factors that need to be considered (e.g. age of pipes, location of
building, type of material, thickness of pipe, frequency of failures, type of
failures). Regardless, we would be happy to discuss either of these options
and provide general direction as needed.
Property wide renewals on sprinkler heads, standpipes, cabinet hoses are not
typically included in these reports (as recommended by the REIC) due to the
unpredictability of hidden conditions, soft costs and BC Fire Code
changes/updates. Any safety deficiencies would also be caught during
periodic inspections and corrected accordingly. Furthermore, complete and
comprehensive fire detection system replacement has not been included in this
report as this varies widely with different brands, models and parts and some
manufacturers discontinue production of certain parts that support the current
system. As the fire panels/detection systems become obsolete, a certified fire
protection professional should be engaged to assess the system and make
more detailed recommendations.

4.3 ELECTRICAL
The electrical reserve components include electrical distribution devices (i.e.
incoming services, various distribution panels, wiring etc.) and fire panels.
The electrical section of any Depreciation Report should be viewed with
caution. Many electrical systems and components generally serve the life of
the building without having to be replaced (e.g. electrical panels,
transformers, incoming underground service lines, etc.). Renewal dates are
difficult to predict, depending on use, maintenance and review. Major
electrical system renewals are rare but can be expensive. Furthermore, it is
not always clear whose responsibility certain electrical items belong to (e.g.
distribution transformer, electrical wiring).
Electrical room/vault maintenance and review should be performed on a
periodic basis. As a point of reference, infrared review and dust/debris
removal should be performed every 3 years on high rise buildings in
Vancouver - this is specifically required for “dual radial” vaults.

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4.4 SPECIALTY
This section includes the office building, swimming pool, recreation building,
playgrounds and mailboxes at townhouse buildings. Reserve costs for the
office and recreation buildings include allowances for interior finishes,
furniture and equipment. Reserve costs for the swimming pool and
playgrounds include allowances for targeted repairs. Reserve costs for
mailboxes include for replacement during the building envelope renewal
project.

4.5 SITE SERVICES

The site services include softscaping, hardscaping, site services (utilities lines),
exterior lighting, fencing, pathway bridges and a channeled creek.

5.0 FINANCIAL ANALYSIS

5.1 RESERVE FUND: HISTORICAL DATA

Based on the documents reviewed in the past two years and our
communications with the property manager, we have summarized pertinent
CRF transactions and balances in the table below:
Table 4 – CRF Historical Information:
DESCRIPTION 2019-2020 (18 months) 2020-2021
Annual Operating Budget $ 1,941,143 $1,528,618
CRF Balance n/a $441,130
Approved CRF contributions $805,372 $633,000
Past interest accrued on CRF n/a $378*
n/a: not available.
* Extrapolated interest accrued amount

5.2 RESERVE FUND: LIFE CYCLE RENEWAL COSTS

The Life Cycle Renewal Cost table (Benchmark Analysis), included in Appendix
B, is a tabulated summary of expected renewal years, costs and reserve fund
parameters. Per the visual condition assessment of all the major building
systems and components, future replacement dates are predicted (assuming
reasonable and ongoing maintenance). This assumes that ongoing and
reasonable maintenance is being performed unless otherwise noted or
reported by property representatives. Based on these dates, as well as the
assumed interest and inflation rates, the current and future CRF requirements
are determined and allocated.
The order-of-magnitude renewal costs are developed based on general
designs, makes and models, as well as estimated areas, assumed quantities
and unit rates. While these costs may not be required on the specified dates,
some or all of these allowances can be spent before or after these dates as
needed. This is especially true for aggregate subjective assets like electrical,
landscaping and miscellaneous mechanical equipment.

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 These costs may not consist of all contractor mobilization and front-end costs,
overhead and profit, as well as a detailed schedule of values, which would
require the review of drawings, details, specifications and material schedules.
Contingencies, consulting, project management and general contractor fees
have also not been included. JRS does not guarantee the accuracy of these
costs, and shall incur no liability where actual construction costs are exceeded.
The following pie chart illustrates the percentage that each of the major
building systems represent relative to each other. The entire pie represents the
reproduction value of the building reserve components and the wedges refer
to the respective building systems, based on the “Reserve Fund Assessment
Allocation” column in the benchmark analysis of Appendix B.

Distribution of Reproduction Value

5%
1%
<1% BUILDING ENVELOPE AND
9% STRUCTURE

MECHANICAL

ELECTRICAL

SPECIALTY

SITE SERVICES
85%

Figure 2 – Pie Distribution of Assets

It should also be noted that a Power Smart Product Incentive Program exists
with BC Hydro. The program is intended to provide incentives for simple
retrofits with energy efficient products to certain BC Hydro business customers.
Refer to the BC Hydro Product Acceptance Criteria catalogue to determine
acceptable technical and product requirements (i.e. lighting, HVAC and
refrigeration) for the shared common assets of your property in order to
potentially offset required renewal costs.

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5.3 RESERVE FUND: 30-YEAR COST PROJECTION
The Cost Projection Sheets located in Appendix C consist of the estimated
replacement costs of all the reserve fund components at anticipated renewal
dates for the next 30 years (per the Strata Property Regulation). It should be
noted that JRS does not purport that the actions/expenditures at the listed
renewal dates must or will occur, but that we recommend the strata
corporation strive to have sufficient funds for these actions/renewals that
should or are highly likely to take place at or around these dates.
Interest Rate
Although the Regulation requires a reserve fund plan to be projected over 30
years, the interest rate is weighted more towards recent and short-term
economic conditions because of their volatility over time. This is the rate of
return applied to your CRF investment. We have assumed an annual interest
rate of 0.1%, taken from historical data of interest earned on your CRF in
2011. This should be revised at the next Depreciation Report update.
Significant consideration should be made towards an investment strategy that
allows all or some of your CRF funds to grow at higher rates of return. Refer
to Part 6.11 in the Strata Property Regulation to confirm what types of
investment vehicles are permitted.
Inflation Rate
This is the growth rate applied to all future renewal costs. A common fallacy
is that this rate should be tied to the CPI (Consumer Price Index). The CPI is
based on a fixed basket of commodities - consumer goods and services such
as milk and eggs, which are largely unrelated to construction costs. Since this
fixed basket contains goods and services of unchanging or equivalent
quantity and quality, the CPI reflects only price fluctuations and excludes
labour costs, which is a significant portion of remediation/renewal projects.
The CPI includes approximately 600 commodities categorized in 168 basic
commodity classes, which is simply too broad to use for future
construction/renewal cost estimating. Furthermore, volatile items such as oil
and gas are also excluded from CPI, which can greatly affect construction
costs.
We have derived an inflation rate from changes in actual construction price
indices obtained from Statistics Canada relating to all trades in the
Vancouver-area construction market. The estimated inflation rate takes into
consideration construction indices going back to 1981 (as far back as
Statistics Canada has records).
The inflation rate used in this Depreciation Report is 3.0%. Although this is
somewhat similar to the current CPI, a distinction in the process of reaching this
value must be understood.
Interest and inflation rates are significant factors when projecting future
replacement costs and CRF requirements. Slight variations in either parameter
can have dramatic effects on future values, including the annual CRF
contributions or any special levies, which are usually the most relevant
concerns for the majority of owners.

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5.4 FUNDING MODELS
To assist the owners with funding strategies, the Strata Property Regulation
(Part 6.2.4) requires that at least 3 funding models be provided. Essentially,
these are possible funding strategies for the owners to contribute to their CRF.
Our funding models are “cash flow” and “cash funded” to allow pragmatic
and user-friendly recommendations.
It is important to note that there are many possibly funding strategies that a
Reserve Planner can recommend. JRS has included the following three
different cash flow funding models, which essentially consists of a low end,
high end and a combination of the two:
Baseline
This model maintains the status quo (how the CRF is currently being
funded) or the statutory minimum (10% of operating budget), whichever is
higher. Annual increases are only governed by inflation and therefore
future loans or special levies are likely to occur. This is the most “hands
off” funding strategy, consisting of a more reactive approach.
Theoretical Fully Funded
This model immediately implements a contribution level that will
eventually achieve a 100% fully funded accumulated reserve fund
balance. This contribution strategy should theoretically never require loans
or special levies and can be perceived as a hypothetical model, which is
typically not practical for the strata corporation to execute.
Graduated Hybrid
This model is a combination of the Baseline and Fully Funded models,
starting at current contribution levels and ramping up to a 90% fully
funded contribution level in 2025, and decreasing to a 40% fully funded
contribution level in 2026 after the major renewals are complete. Special
levies may still occur but at smaller amounts. This funding strategy allows
a more targeted funding plan, allowing for a more balanced and pro-
active approach.

It is widely accepted that strata fees in BC are generally low and that most
CRFs are under-funded. This is likely the driving force for Depreciation Report
legislation, which has been mandated in many other provinces some time ago.
Therefore, your Baseline model, as well as the statutory minimum, is not
sufficient in most cases. The Fully Funded model is ideal, but impractical for
most strata corporations—at least when trying to attain a fully funded level
within a short period of time. Achieving at least a 50% fully funded CRF
contribution level as soon as practical, should be the goal of every strata
corporation. History in other provinces and with strata corporations who have
already updated their Depreciation Reports, have shown that this is feasible.
JRS has provided a Graduated Hybrid funding model that we believe is
achievable and pragmatic. These models allow the owners to ramp up
towards a 90% fully funded CRF contribution level within 4 years.

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 The Baseline, Theoretical Fully Funded and Graduated Hybrid funding models
are presented in Appendix C. A graph is included with each funding model
cost projection sheet to summarize and visually aid the reader in
comprehending the CRF contributions, balance, and requirements. The varying
input parameter in each funding model is the annual contribution amount to
the CRF.

5.5 SUMMARY OF RESULTS AND ADEQUACY OF RESERVE FUND

The Baseline and Fully Funded models indicate an unacceptable frequency of
special levies and an immediately onerous level of annual CRF contributions,
respectively.
The Graduated Hybrid funding model will steadily increase contribution levels
over 4 years to reach 90% of the fully funded CRF contribution level. This
funding model reduces the cumulative amount of required special levies from
$27,912,341 to $24,802,145. The number of potential special levies in both
models are the same at 3, which occurs from 2023 to 2025. Although this has
minimal effect on the significant renewals estimated in the near future, by
proactively funding the CRF, the Strata Council will have increased flexibility
around scheduled and unexpected renewal projects.
Based on the 2020-2021 financial statements, there is a budgeted
contribution of $633,000 made to the CRF. In the Graduated Hybrid Model,
the annual contributions allow the owners to achieve 90% of the fully funded
contribution levels by increasing their annual CRF from $633,000 to
$1,955,227 until 2025. This is an annual increase to the CRF of
approximately $330,557 per year. The subsequent increase is to proactively
fund the CRF for renewal projects potentially in 2023 to 2025. The
contribution levels are decreased to a 40% contribution level in 2026 after
major renewals are completed. These increases can be revised during the 3-
year Depreciation Report updates based on a number of factors: actual CRF
contributions, interest rates, and inflation factors. There are multiple financial
strategies that the owners can employ. However, because large projects are
required n the near future, one option could be to raise one special levy, with
a phased collection schedule, to address all the work (e.g. building envelope)
to avoid multiple years of significant CRF contributions.
The owners do not have to decide on either of the models – they should
choose what financial plan or contribution level works for them.
It is essential to remember that our financial models and recommended
funding strategies are for the strata corporation’s contributions to their CRF,
not strata fees. CRF contributions are only a fraction of the overall budget,
which is funded almost entirely by the strata fees. For example, if an owner is
paying $300/month in strata fees and 10% of their strata fees go to the
CRF, a recommended CRF contribution increase of 50% a year, results in an
extra $15 a month. Moreover, increasing CRF contributions does not need to
be entirely borne out of raising strata fees. Other methods of offsetting
increased strata fees include cutting costs and increasing revenue generating
activities (e.g. laundry services, vending machines, etc.).

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 It is important to note that this Depreciation Report, nor should any
Depreciation Report, purport to be used verbatim or used to pressure the
strata corporation into mandating higher CRF contributions or strata fees. Our
financial analysis and funding strategies are meant to simply provide
information and encourage a balanced approach in saving for eventual
renewals that may occur at or around the time stated in the funding models,
which should be continually reviewed and updated. Therefore, this report
should not be perceived as having to spend exactly the amounts at the
specified times. It should be used as guidance for the strata council to manage
its CRF and create its own detailed, customized financial plan.
Each model safeguards against negative CRF balances. However, it is
incumbent on the owners to ensure that at least the statutory minimum outlined
in Part 6.1 of the Strata Property Regulation are maintained, which is widely
known to be a bare minimum that almost never achieves a reasonably long
term funded CRF.

5.6 CONSIDERATIONS
It is often practical and economical to undertake the repair or replacement of
property assets at the same time or immediately consecutive to one another.
Although resulting in higher immediate capital costs, there will be potentially
less disturbance to unit occupants than performing work at separate times,
which may be a significant consideration. The owners should evaluate the
relative weight they ascribe to some of the issues noted above prior to
undertaking any major capital expenditures or updating the Depreciation
Report, so that this information can be incorporated accordingly.
The intent of this Depreciation Report is to mitigate unfair levels of
contribution and encourage the strata corporation as a whole or as
individuals to save for eventual renewals/replacements to the property,
starting at the soonest applicable fiscal year.
Costs and input data should also be reviewed and updated regularly to
ensure a higher level of accuracy. Review of the financial parameters should
be performed by the strata council annually and through Depreciation Report
updates, which include site visits by a Reserve Planner every 3 years, per the
Strata Property Regulation.

6.0 RECOMMENDATIONS
JRS recommends the strata council implement the Graduated Hybrid model or
something similar to eventually reach a 90% fully funded contribution level to
the CRF by 2025 or sooner. The strata council should compare it with the
other funding strategies, tailor it to the ownership demographics and decide
which would be the most appropriate and acceptable for the general
ownership to include in the annual budget.
In the short term, the strata council should perform the following:
 Hire a professional engineer with a specialty in building science to
conduct a building envelope condition assessment (BECA) for the parkade,

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 exterior walls, fenestration assemblies, balconies assemblies, breezeways
and roofs (mainly Items 1, 3, 5, 7, 9, 12, 14, 16, 17 and 20). Based on
the findings, plan for a major building envelope renewal project in the
upcoming years.
 Hire a professional mechanical engineer to conduct a condition assessment
on the domestic water piping prior to the major renewal (Item 27).
Over the next three years (before the next Depreciation Report update), the
strata council should also consider the following:
 Hire a professional mechanical engineer to conduct a condition assessment
of the mechanical systems in the pool building (Item 29 to 31).
 Cleaning and maintenance of the electrical room components in the
townhouse buildings (Item 32).
 Hire a professional electrical engineer to review the power distribution
and conduct repairs to the interior wiring (Item 33).
 Hire a fire protection professional to review the fire alarm system and
perform replacement as needed (Item 34).
 Replacement of the residential mailboxes during building envelope
renewal (Item 39).
 Renewal of the softscaping and hardscaping during the building envelope
renewal project (Items 40 and 41).
 Flushing/scoping of the underground drainage lines (Item 42).
 Renewal of wooden fencing at ground-floor patios (Item 44).
 Repairs for the pathway bridges along the walkway next to the office
building (Item 45).
JRS further submits the following general recommendations:
1. Perform more detailed, intrusive investigations targeting the higher
expense systems (e.g. building envelope, piping, etc.) in order to
fine tune the service life predictions and replacement costs.
2. Prior to any major renewals, the strata council should hire a
consultant to prepare drawings and specifications and tender out
the work to multiple contractors before raising funds or requesting
any special levies.
3. Major repairs and replacements should be recorded in, and funded
from, a separate contingency reserve fund account. Keep in mind
that multiple “sub-CRF-accounts” for specific assets (e.g. roofing,
windows, piping, etc.) are not required and should be used with
caution.
4. The strata council should create a committee or appoint a strata
council member to oversee the overall management and
documentation of the CRF.
5. The CRF should be invested with a strategy that will allow for
multiple transactions and achieve a higher rate of return than the
current interest rate.

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7.0 CLOSURE
This report was prepared by JRS for The Owners, Strata Plan NW962. Any
use that a third party makes of this report, or any reliance or decisions made
based on it, are the sole responsibility of such third parties.
The findings herein are based on a visual review of surface conditions.
Deficiencies that may exist, but were not recorded in this report, were not
apparent given the level of study undertaken.
This assessment is in part based on information provided by others. Unless
specifically noted, we have assumed this information to be correct and have
relied upon it in reaching our conclusions and recommendations.
Component conditions and renewal costs identified are for the purpose of
general financial planning. This report is not intended to substitute the need
for in-depth condition assessment of components by professionals using testing
and other means.
The replacement costs in this report apply only within the confines and
objectives of this review. The costs herein must not be used in conjunction with
any other appraisal or Depreciation Report and may be invalid if so used.
The strata corporation may use this report in deliberations affecting the
subject property only, and in so doing, the report must not be abstracted; it
must be used in its entirety.
The material in this report reflects the best judgement of JRS in light of the
information available at the time of preparation.

Please contact the undersigned if you should require any additional information.

Prepared by:

JRS ENGINEERING LTD.

Per: Reviewed by:

Daniel Shim, B.ASc., EIT Wesley Narciso, M.Eng., P.Eng., CRP, PRA
Engineer Senior Project Engineer | Division Manager

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 Appendix A

Technical Inventory – Component Descriptions

 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 1 OF 25

BUILDING ENVELOPE AND STRUCTURE

Parkade Structure (areas not repaired)

1
Location: Below buildings
Year Installed: 1978

Typical Service Life (yrs): 50

Building Envelope and Structure

Effective Age (yrs): 48

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: This building component consists of the soffit, vertical walls and pavement of areas from original construction.
Condition: In general, the concrete structure is in poor condition. Sections of concrete spalling and exposed rebar were
observed at several areas. Excessive staining and signs of water ingress were observed on the concrete walls at Building
9129/9131/9133’s parkade parking stall 367 and Building 9151/9153/9155 parking stall 118.
Short-Term Action Required: Engage in a building envelope or structural engineer for repairs.
Comments: The structural capacity of the slab and walls is expected to last the lifetime of the building. The costs associated
with this reserve component are a rough estimate as to when the Owners can expect the need for concrete repairs to address
delamination, spalling, water intrusion, and wear. Reserve costs account for renewals to a small percentage of the exposed
concrete surfaces.

Parkade Structure (previously repaired)

2
Location: Below buildings
Year Installed: 2016
Building Envelope and Structure

Typical Service Life (yrs): 50

Effective Age (yrs): 32

Remaining Service Life (yrs): 18

Planned Renewal Date: 2039

Description: This building component consists of the soffit, vertical walls and pavement.
Condition: According to the information provided, targeted concrete repairs have been conducted at about half of the
buildings. The general condition at these buildings appears to be in reasonable condition.
Comments: The structural capacity of the slab and walls is expected to last the lifetime of the building. The costs associated
with this reserve component are a rough estimate as to when the Owners can expect the need for concrete repairs to address
delamination, spalling, water intrusion, and wear. Reserve costs account for renewals to a small percentage of the exposed
concrete surfaces. An allowance has been included for targeted repairs.

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Balcony Membrane – SBS (original)

3
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 20

Effective Age (yrs): 18

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The second and third floor balconies typically consist of plank decking with an underlying SBS membrane from
original construction.
Condition: The buildings have ongoing balcony membrane replacement on an as-needed basis. JRS understands the majority
of units have membranes that date back to original construction.
Short-Term Action Required: A building envelope condition assessment (BECA) is recommended at unit balconies.
Comments: The remaining balcony membranes from original construction should be considered for full replacement as it is at
the end of its expected service life. Reserve costs include renewal of the balcony membranes.

Balcony Membrane – SBS (renewed)

4
Location: Building exteriors
Year Installed: 2019
Building Envelope and Structure

Typical Service Life (yrs): 20

Effective Age (yrs): 2

Remaining Service Life (yrs): 18

Planned Renewal Date: 2039

Description: The second and third floor balconies typically consist of plank decking with an underlying SBS membrane.
Condition: The renewed balcony membranes appear to be in serviceable condition.
Comments: Reserve costs include renewal of the balcony membranes and an allowance for a condition assessment, as part
of a BECA, 3 years prior to the renewal date.

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Balcony Membrane – Paint Coating (original)

5
Location: Building exteriors
Year Installed: 1978

Typical Service Life (yrs): 20

Building Envelope and Structure

Effective Age (yrs): 18

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The ground-floor balconies consist of painted coating on the suspended slab from original construction.
Condition: The paint coating appeared to be in varying conditions. The buildings have ongoing balcony membrane
replacement on an as-needed basis. JRS understands the majority of units have membranes that date back to original
construction.
Short-Term Action Required: A building envelope condition assessment (BECA) is recommended at unit balconies as this
component has surpassed its service life.
Comments: The remaining balcony membranes from original construction should be considered for full replacement as it is at
the end of its expected service life. Reserve costs include renewal of the balcony membranes. Reserve costs include renewal
of the balcony membranes with a liquid applied polyurethane traffic membrane.

Balcony Membrane – Traffic Coating (renewed)

6
Location: Building exteriors
Year Installed: 2019
Building Envelope and Structure

Typical Service Life (yrs): 20

Effective Age (yrs): 2

Remaining Service Life (yrs): 18

Planned Renewal Date: 2039

Description: The ground-floor balconies consist of a liquid applied polyurethane traffic membrane on the balcony slabs.
Condition: The renewed balcony membranes appear to be in serviceable condition.
Comments: Reserve costs include renewal of the balcony membranes and a condition assessment 3 years prior to the
renewal date, as part of the BECA review for balconies and roofs.

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Ground-Floor Breezeways (original)

7
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 40

Effective Age (yrs): 38

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The original breezeways include pavement on the ground floor, waterproofing membrane and wood columns
as the structural component.
Condition: The pavement appears to be in fair condition. Cracks were observed on multiple wood columns supporting the
breezeways.
Short-Term Action Required: A building envelope condition assessment (BECA) is recommended at the breezeways.
Comments: Reserve costs include renewal of the breezeway assembly and targeted repairs for the wood columns.

Ground-Floor Breezeways (renewed)

8
Location: Building exteriors
Year Installed: 2016
Building Envelope and Structure

Typical Service Life (yrs): 40

Effective Age (yrs): 5

Remaining Service Life (yrs): 35

Planned Renewal Date: 2056

Description: The renewed breezeways generally have pavers and a PMMA waterproofing membrane on the ground-floor
level. The wood columns are from original construction.
Condition: The breezeway assembly appears to be in serviceable condition. Cracks were observed on multiple wood
columns supporting the breezeways.
Comments: Reserve costs include renewal of the breezeway assembly and targeted repairs for the wood columns.

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Second and Third Floor Breezeways

9
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 50

Effective Age (yrs): 48

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: On the second and third floors, the breezeways have a concrete topping with an underlying waterproofing
membrane and supported by wood columns and framing.
Condition: The second and third floor breezeways are generally in serviceable condition.
Short-Term Action Required: A building envelope condition assessment (BECA) is recommended at the breezeways.
Comments: Reserve costs include targeted repairs of the breezeway assemblies and recommended for early renewal during
the building envelope renewal project to save on contractor mobilization costs.

Guardrails and Handrails

10
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 30

Effective Age (yrs): 28

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: This component includes the guardrails at breezeways and handrails at various locations in the complex.
Condition: The guardrails and handrails are generally in reasonable condition.
Comments: Reserve costs include replacement of guardrails at breezeways and targeted repairs for the handrails.

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Exterior Staircases
11
Location: Near unit entrances
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 30

Effective Age (yrs): 28

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The exterior staircases include timber stringers with concrete topping at stair landings.
Condition: The staircases generally appear to be in satisfactory condition, but near the end of its typical service life.
Comments: Reserve costs include replacement of the staircase components and recommended to be completed in conjunction
with the cladding removal.

Exterior Walls – Wood (original)

12
Location: Building exteriors
Year Installed: 1978

Typical Service Life (yrs): 35

Building Envelope and Structure

Effective Age (yrs): 33

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The exterior cladding at townhouse buildings, office and recreation buildings consists of wood from original
construction.
Condition: The wood siding is generally in satisfactory condition. A small percentage of cladding renewals have been
completed at targeted areas due to a water leak.
Short-Term Action Required: A building envelope condition assessment (BECA) is recommended for the wood siding which is
past its service life.
Comments: Maintenance such as power washing and painting, should be undertaken routinely as part of a building envelope
maintenance plan. Costs includes an allowance for a building envelope condition assessment 3 years before the scheduled
large-scale renewal. The costs of this item are based on the total square footage of the wood siding from original construction.

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Exterior Walls – Wood (renewed)

13
Location: Building exteriors
Year Installed: 2019
Building Envelope and Structure

Typical Service Life (yrs): 35

Effective Age (yrs): 2

Remaining Service Life (yrs): 33

Planned Renewal Date: 2054

Description: The exterior cladding consists of wood that has been renewed at targeted areas on townhouse buildings.
Condition: The renewed wood siding appears to be in reasonable condition. A small percentage of cladding renewals have
been completed at targeted areas due to a water leak.
Comments: Maintenance such as power washing and painting, should be undertaken routinely as part of a building
envelope maintenance plan. The costs of this item are based on the total square footage of the wood siding that was
renewed in recent years.

Exterior Walls – Stucco (original)

14
Location: Building exteriors
Year Installed: 1978

Typical Service Life (yrs): 40

Building Envelope and Structure

Effective Age (yrs): 38

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The exterior cladding consists of stucco at townhouse buildings from original construction.
Condition: The stucco cladding is in fair condition with staining observed in multiple locations. A small percentage of cladding
renewals have been completed at targeted areas due to a water leak.
Short-Term Action Required: A building envelope condition assessment (BECA) is recommended for the stucco cladding.
Comments: Maintenance such as repairing cracks, should be undertaken routinely as part of a building envelope
maintenance plan. Costs includes an allowance for a building envelope condition assessment 3 years before the scheduled
large-scale renewal. The costs of this item are based on the total square footage of the stucco cladding from original
construction.

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Exterior Walls – Stucco (renewed)

15
Location:
Year Installed: 2019
Building Envelope and Structure

Typical Service Life (yrs): 40

Effective Age (yrs): 2

Remaining Service Life (yrs): 38

Planned Renewal Date: 2059

Description: The exterior cladding consists of stucco that has been renewed at targeted areas on townhouse buildings.
Condition: The renewed stucco cladding is in reasonable condition. A small percentage of cladding renewals have been
completed at targeted areas due to a water leak.
Comments: Maintenance such as repairing cracks, should be undertaken routinely as part of a building envelope
maintenance plan. The costs of this item are based on the total square footage of the stucco cladding that was renewed in
recent years.

Window Assemblies
16
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 35

Effective Age (yrs): 33

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The windows are aluminum framed single-glazed assemblies.

Condition: The windows appear to be in serviceable condition but have passed its expected service life.
Short-Term Action Required: The windows should be reviewed as part of the building envelope condition assessment (BECA).
Comments: All windows are from original construction. Reserve costs include replacement of the windows and an allowance
for targeted renewals at the 15-year mark.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 9 OF 25

Sliding Doors
17
Location: Unit balconies/patios
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 35

Effective Age (yrs): 33

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The sliding doors are aluminum framed single-glazed assemblies.

Condition: The sliding doors appear to be in serviceable condition but have passed its expected service life.
Short-Term Action Required: The sliding doors should be reviewed as part of the building envelope condition assessment
(BECA).
Comments: Reserve costs include replacement of the sliding doors and an allowance for targeted renewals at the 15-year
mark.

Unit Entrance Doors

18
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 35

Effective Age (yrs): 33

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The unit entrance doors are solid core wood doors and are located on the exterior of the building.
Condition: The unit entrance doors are in serviceable condition.
Short-Term Action Required: The unit entrance doors should be reviewed as part of the building envelope condition
assessment (BECA).
Comments: Reserve costs include replacement of the unit entrance doors.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 10 OF 25

Service Doors
19
Location: Parkade and building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 50

Effective Age (yrs): 48

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The service doors are metal doors located at the parkade level and exterior of the building.
Condition: The service doors are in reasonable condition.
Comments: Service doors can last for the entire life of the building, provided that they are well maintained. As such,
replacement costs have only been applied to a small percentage of the doors. Service door replacements can occur during
the building envelope renewal project to save on contractor mobilization costs and to facilitate concrete demolition and
repair work.

Sealant
20
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 10

Effective Age (yrs): 8

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: Sealant provides a moisture barrier at windows, doors, and other exterior penetrations.
Condition: The sealant generally appears to have passed its service life.
Short-Term Action Required: Sealant should be reviewed as part of the building envelope condition assessment (BECA).
Comments: Sealant should be inspected and monitored for potential issues such as drying, cracking, and deterioration.
Sealant renewals should be done as part of the building envelope renewal project and through regular maintenance
thereafter.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 11 OF 25

Paint Coating
21
Location: Building exteriors
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 10

Effective Age (yrs): 8

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: This component consists of paint coating of the wood siding.

Condition: Paint peeling was observed at several locations throughout the complex.
Comments: Paint renewals should be done as part of the building envelope renewal project. Paint renewals can then be
approached as a full-scale renewal or phased approach thereafter.

Low Slope Roof – Townhouse Buildings

22
Location: Roofs
Year Installed: 2014
Building Envelope and Structure

Typical Service Life (yrs): 25

Effective Age (yrs): 7

Remaining Service Life (yrs): 18

Planned Renewal Date: 2039

Description: The low slope roof assembly is protected by a SBS membrane at the townhouse buildings.
Condition: The membrane generally appears to be in reasonable condition. According to the information provided, roof
replacements has been completed at the townhouse buildings in multiple phases dating originally back to 2014.
Comments: Reserve costs include renewal of the low slope roofs and an allowance for assessment and targeted repairs 3
years prior to renewal.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 12 OF 25

Low Slope Roof – Office and Pool Buildings

23
Location: Roofs
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 25

Effective Age (yrs): 23

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The low slope roof assembly is protected by a SBS membrane at the office and pool buildings.
Condition: The membrane appears to be in fair condition. According to the information provided, multiple patch repairs been
completed on these roofs.
Short-Term Action Required: These roofs should be reviewed as part of the building envelope condition assessment (BECA).
Comments: Reserve costs include renewal of the low slope roofs.

Steep Slope Roof – Cedar Shakes

24
Location: Roofs at townhouse buildings
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 25

Effective Age (yrs): 23

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: The steep slope roofs consist of cedar shakes from original construction.
Condition: The cedar shakes generally appear to be in fair condition.
Short-Term Action Required: These roofs should be reviewed as part of the building envelope condition assessment (BECA).
Comments: Reserve costs include renewal of the cedar shake roofs. In previous roofing renewal projects, some of the cedar
shake roofs have been replaced with asphalt shingles.

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Steep Slope Roof – Asphalt Shingles

25
Location: Roofs at townhouse buildings
Year Installed: 2014
Building Envelope and Structure

Typical Service Life (yrs): 25

Effective Age (yrs): 7

Remaining Service Life (yrs): 18

Planned Renewal Date: 2039

Description: Steep slope roofs at select buildings have been replaced with asphalt shingles.
Condition: The asphalt shingles appear to be in reasonable condition.
Comments: Reserve costs include renewal of the asphalt shingled roofs and an allowance for targeted repairs 3 years prior
to renewal.

Gutters and Downspouts

26
Location: Roof perimeter
Year Installed: 1978
Building Envelope and Structure

Typical Service Life (yrs): 15

Effective Age (yrs): 13

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: Aluminum gutters and downspouts typically collect water from the roof and direct it to the perimeter drainage
system.
Condition: The gutters and downspouts appear to be functioning as designed.
Comments: The gutters and downspouts should be inspected and cleaned regularly. Reserve costs include a replacement of
gutters and downspout that is conducted during the building envelope renewal project to save on contractor mobilization
costs.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 14 OF 25

MECHANICAL

Domestic Water Piping

27
Location: Throughout buildings
Year Installed: 1978

Typical Service Life (yrs): 40

Effective Age (yrs): 38

Remaining Service Life (yrs): 2

Mechanical

Planned Renewal Date: 2023

Description: This component includes domestic water distribution for residential units, office building and pool building.
Condition: The domestic water piping could not be reviewed during the site visit; however, no issues were reported by the
building owners’ representative.
Comments: Predicting when failure will occur is difficult as many variables must be considered including localized water
pressure, water quality, temperature, PEX/copper pipe material quality/condition, manufacturing/installation conditions, etc.
Reserve costs are based on costs incurred for this work. An allowance has been included 3 years prior to the anticipated
renewal date for an engineering review.

Sprinkler Piping
28
Location: Throughout buildings
Year Installed: 1978

Typical Service Life (yrs): 50

Effective Age (yrs): 46

Mechanical

Remaining Service Life (yrs): 4

Planned Renewal Date: 2025

Description: Sprinkler piping is located in the parkade at townhouse buildings.

Condition: The sprinkler piping appear to be in serviceable condition.
Comments: The fire suppression lines will likely last for a significant period of time. Costs associated with this asset will likely
consist of upgrading or repairing mechanical components such as: sprinkler heads, pumps, air compressors, etc. An allowance
has been included for targeted replacement of the parkade sprinkler pipes and renewal of a percentage of this asset.

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Pool Heaters
29
Location: Pool building’s mechanical room
Year Installed: 1978

Typical Service Life (yrs): 20

Effective Age (yrs): 16

Mechanical

Remaining Service Life (yrs): 4

Planned Renewal Date: 2025

Description: There are two Jandy Lite2 pool heaters servicing hot water for the pools.
Condition: The heaters appear to be in serviceable condition.
Comments: Reserve costs include renewal of the pool heaters and an allowance for engineering review of the pool heaters
and mechanical room components.

Pool Hot Water Storage Tank

30
Location: Pool building’s mechanical room
Year Installed: 2014

Typical Service Life (yrs): 15

Effective Age (yrs): 7

Mechanical

Remaining Service Life (yrs): 8

Planned Renewal Date: 2029

Description: This component consists of a hot water storage tank for the pool.
Condition: The storage tank is in serviceable condition.
Comments: Regular maintenance and inspection should be undertaken to ensure that the hot water tank is operating at full
efficiency. Storage tanks have a typical service life of around 10-15 years, varying based on frequency of use and
maintenance.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 16 OF 25

Miscellaneous Mechanical Room Components

31
Location: Pool building’s mechanical room
Year Installed: 1978

Typical Service Life (yrs): 20

Effective Age (yrs): 16

Remaining Service Life (yrs): 4

Mechanical

Planned Renewal Date: 2025

Description: The miscellaneous mechanical components include piping, valves, sand filters, and pumps in the mechanical
rooms.
Condition: These components appear to be functioning as intended.
Comments: Regular inspection, testing, and maintenance with a mechanical contractor are recommended. It is also important
to note that the installation of new equipment may provide further energy cost savings, which may be more cost effective in
the long term. Reserve costs include a full-scale renewal of the equipment, as well as an allowance for engineering review of
miscellaneous components and pool heaters. For the purposes of costing, a lump sum amount has been included; however, the
mechanical equipment will break down at various intervals and the Owners may expect repairs in staggered amounts.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 17 OF 25

ELECTRICAL

Service Distribution
32
Location: Throughout parkades
Year Installed: 1978

Typical Service Life (yrs): 50

Effective Age (yrs): 43

Remaining Service Life (yrs): 7

Electrical

Planned Renewal Date: 2028

Description: This component includes electrical distribution equipment (i.e. disconnect switches, panels, etc.) and the incoming
underground electrical service cable. This component is maintained by Lonsdale Electric Ltd.
Condition: The electrical distribution equipment appears to be in serviceable condition.
Comments: Reserve costs include an allowance for targeted renewal of the service distribution components. Additional
allowances have been included for regular maintenance and cleaning of the electrical rooms every 5 years.

Power Distribution
33
Location: Throughout buildings
Year Installed: 1978

Typical Service Life (yrs): 40

Effective Age (yrs): 38

Remaining Service Life (yrs): 2

Electrical

Planned Renewal Date: 2023

Description: This component includes interior wiring and lighting.

Condition: The power distribution appears to be in serviceable condition.
Comments: The interior wiring is designed to last the lifetime of the building. As such, reserve costs for the interior wiring are
for renewals to a percentage of the interior wiring. An allowance is also included for engineering review of the power
distribution system.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 18 OF 25

Fire Alarm System

34
Location: Parkades
Year Installed: 1991

Typical Service Life (yrs): 20

Effective Age (yrs): 18

Remaining Service Life (yrs): 2

Electrical

Planned Renewal Date: 2023

Description: This component includes the fire alarm panels located at the parkade level in each building. The fire alarm
panels are inspected by A-1 Fire Supplies Ltd.
Condition: The fire alarm system appears to be functioning as intended.
Comments: The fire alarm systems need to be inspected regularly to ensure that they function as intended. Reserve costs
include renewal of the fire alarm panels and a percentage of the emergency lighting, as well as an allowance for review by
a fire protection professional.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 19 OF 25

SPECIALTY

Office Building - Interiors

35
Location: Office building interiors
Year Installed: 1978

Typical Service Life (yrs): 20

Effective Age (yrs): 16

Remaining Service Life (yrs): 4

Specialty

Planned Renewal Date: 2025

Description: This component includes the interior finishes, kitchen, appliances and furniture in the office building.
Condition: The office building is generally in serviceable condition.
Comments: These items are primarily replaced for aesthetic reasons and appliance failures. As such, the anticipated renewal
dates could be postponed at the Owner’s discretion.

Recreation Building - Interiors

36
Location: Recreation/pool building interiors
Year Installed: 1978

Typical Service Life (yrs): 20

Effective Age (yrs): 16

Remaining Service Life (yrs): 4

Specialty

Planned Renewal Date: 2025

Description: This component includes the interior finishes, fitness gym equipment, washrooms and sauna in the recreation
building.
Condition: The recreation building is generally in serviceable condition.
Comments: These items are primarily replaced for aesthetic reasons or repairs to the gym equipment and sauna. As such,
the anticipated renewal dates could be postponed at the Owner’s discretion.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 20 OF 25

Swimming Pool
37
Location: Exterior
Year Installed: 1978

Typical Service Life (yrs): 15

Effective Age (yrs): 11

Remaining Service Life (yrs): 4

Specialty

Planned Renewal Date: 2025

Description: This component includes the outdoor swimming pools in front of the recreation/pool building. The pool is
maintained by Imperial Paddock Pools Ltd.
Condition: The pools appear to be in serviceable condition.
Comments: Reserve costs include an allowance for targeted repairs for the swimming pools.

Playgrounds
38
Location: Exterior
Year Installed: 1978

Typical Service Life (yrs): 20

Effective Age (yrs): 16

Remaining Service Life (yrs): 4

Specialty

Planned Renewal Date: 2025

Description: There are two small playgrounds in the complex located at the west of 9129 Capella Drive and east of 9150
Saturna Drive.
Condition: The playgrounds are in reasonable condition.
Comments: Reserve costs include an allowance for targeted repairs to the playgrounds.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 21 OF 25

Mailboxes
39
Location: Exterior
Year Installed: 1978

Typical Service Life (yrs): 30

Effective Age (yrs): 28

Remaining Service Life (yrs): 2

Specialty

Planned Renewal Date: 2023

Description: Mailboxes are installed on the ground floor of each townhouse building.
Condition: The mailboxes are in serviceable condition.
Comments: Reserve costs include a renewal of all mailboxes. Due to the aesthetic nature of this asset, its renewal date is
subjective and at the discretion of the Owners.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 22 OF 25

SITE SERVICES

Softscaping
40
Location: Exteriors
Year Installed: 1978

Typical Service Life (yrs): 50

Effective Age (yrs): 48

Site Services

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: Softscaping includes grass, small bushes, tall trees, and shrubs located throughout the complex.
Condition: The softscaping appears to be in fair condition.
Comments: Renewal dates are aligned with the major building envelope renewal project to facilitate necessary softscaping
work during the project. Reserve costs are based on the total area of softscaping, complexity of vegetation, and frequency
of large trees and bushes. An allowance is also included for targeted renewals every 5 years.

Hardscaping
41
Location: Exteriors
Year Installed: 1978

Typical Service Life (yrs): 50

Effective Age (yrs): 48

Site Services

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: Hardscaping includes all paved areas, retaining walls, concrete stairs and walkways throughout the complex.
Condition: The hardscaping appears to be in fair condition with several potholes observed on the pavement.
Comments: Renewal dates are aligned with the major building envelope renewal project to facilitate necessary hardscaping
work during the project. Reserve costs include targeted renewals to the hardscaping throughout the complex. An allowance is
also included for targeted renewals every 5 years.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 23 OF 25

Underground Water Supply and Drainage

42
Location: Under buildings
Year Installed: 1978

Typical Service Life (yrs): 50

Effective Age (yrs): 43

Site Services

Remaining Service Life (yrs): 7

Planned Renewal Date: 2028

Description: This item includes underground water supply pipes from the City main line to the main building.
Condition: The piping could not be visually inspected; however, there were no reported problems.
Comments: Reserve costs consist of an allowance to replace a percentage of the underground piping systems. Additional
allowances have been included to flush the drainage system every 5 years.

Outdoor Lighting
43
Building exteriors and throughout
Location:
property
Year Installed: 1978

Typical Service Life (yrs): 30

Effective Age (yrs): 28

Site Services

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: This component includes exterior lighting and lamp posts located throughout the property.
Condition: The exterior lighting appears to be in serviceable condition.
Comments: Reserve costs include exterior lighting replacements throughout the complex during the building envelope
renewal project. It is at the Owners’ discretion whether to replace all of the exterior lighting during cladding renewal or
replace on an as-needed basis.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 24 OF 25

Fencing
44
Location: Unit patios
Year Installed: 1978

Typical Service Life (yrs): 30

Effective Age (yrs): 28

Site Services

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: Wood fences are located at the perimeter of ground-floor unit patios.
Condition: The wood fencing is in reasonable condition. It appears fencing has been replaced at some units.
Comments: Reserve costs include renewal of the fencing that are from original construction. This work can be coordinated in
conjunction with the building envelope renewal or could be postponed at the Owners’ discretion.

Pathway Bridges
45
Location: Exterior walkway
Year Installed: 1978

Typical Service Life (yrs): 30

Effective Age (yrs): 28

Site Services

Remaining Service Life (yrs): 2

Planned Renewal Date: 2023

Description: There are wood-framed pathway bridges located between Buildings 9149 and 9151.
Condition: The pathway bridges are generally in fair condition with minor soft spots on the walking surface.
Comments: Reserve costs include for targeted repairs to the pathway bridge components.

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 JRS ENGINEERING LTD. APPENDIX A – COMPONENT DESCRIPTIONS PAGE 25 OF 25

Channeled Creek
46
Location: Exterior
Year Installed: 1978

Typical Service Life (yrs): 40

Effective Age (yrs): 33

Site Services

Remaining Service Life (yrs): 7

Planned Renewal Date: 2028

Description: There is a channeled creek located at the east end of the pathway bridges near the office building.
Condition: The channeled creek is in reasonable condition.
Comments: Reserve costs include targeted repairs to the hardscaping along the creek.

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 Appendix B

Lifecycle Renewal Costs (Benchmark Analysis)

 APPENDIX B LIFE CYCLE RENEWAL COSTS
Mountainwood Inflation Factor 3.0%
LIFE CYCLE RENEWAL COSTS Interest Rate 0.10% (Benchmark Analysis)
CURRENT FUTURE CURRENT FUTURE RESERVE FUTURE ANNUAL RESERVE FUND
RESERVE COMPONENTS YEAR TYPICAL EFFECTIVE REMAINING RENEWAL REPLACEMENT REPLACEMENT RESERVE FUND FUND RESERVE FUND RESERVE FUND ASSESSMENT
BENCHMARK ANALYSIS INSTALLED LIFE (Yrs) AGE (Yrs) LIFE (Yrs) YEAR COST COST REQUIREMENT ACCUMULATION REQUIREMENT ASSESSMENT ALLOCATION
BUILDING ENVELOPE AND STRUCTURE DEFINITIONS
1 Parkade Structure (areas not repaired) 1978 50 48 2 2023 2,693,840 2,857,895 2,586,086 2,591,261 266,634 133,250 6.13%
2 Parkade Structure (previously repaired) 2016 50 32 18 2039 1,160,920 1,976,389 742,989 756,477 1,219,912 67,199 3.09% RESERVE COMPONENTS: Individual components within the major
3 Balcony Membrane - SBS (original) 1978 20 18 2 2023 980,000 1,039,682 882,000 883,765 155,917 77,920 3.59% building systems. Note that some of these components were
4 Balcony Membrane - SBS (renewed) 2019 20 2 18 2039 420,000 715,022 42,000 42,762 672,259 37,031 1.70% separated due to differences in installation dates. There may also
5 Balcony Membrane - Paint Coating (original) 1978 20 18 2 2023 528,000 560,155 475,200 476,151 84,004 41,981 1.93% be multiple renewals and smaller repairs included in the 30-year
6 Balcony Membrane - Traffic Coating (renewed) 2019 20 2 18 2039 158,400 269,665 15,840 16,128 253,538 13,966 0.64% outlook. Minor components with insignificant renewal costs have
7 Ground-Floor Breezeways (original) 1978 40 38 2 2023 510,250 541,324 484,738 485,707 55,617 27,794 1.28% either been combined with an allowance or not included in order
8 Ground-Floor Breezeways (renewed) 2016 40 5 35 2056 1,472,800 4,144,257 184,100 190,654 3,953,602 111,051 5.11% to simplify financial analysis.
9 Second and Third Floor Breezeways 1978 50 48 2 2023 140,400 148,950 134,784 135,054 13,897 6,945 0.32%
10 Guardrails and Handrails 1978 30 28 2 2023 106,080 112,540 99,008 99,206 13,334 6,664 0.31% YEAR INSTALLED: Year the component was installed, which
11 Exterior Staircases 1978 30 28 2 2023 422,144 447,853 394,001 394,789 53,063 26,518 1.22% includes original construction or replacement. JRS assumes that
12 Exterior Walls - Wood (original) 1978 35 33 2 2023 6,580,350 6,981,093 6,204,330 6,216,745 764,348 381,983 17.58% all previously replaced components were new when installed,
13 Exterior Walls - Wood (renewed) 2019 35 2 33 2054 306,830 813,816 17,533 18,121 795,695 23,728 1.09% unless stated otherwise.
14 Exterior Walls - Stucco (original) 1978 40 38 2 2023 3,133,730 3,324,574 2,977,044 2,983,001 341,574 170,701 7.86%
15 Exterior Walls - Stucco (renewed) 2019 40 2 38 2059 348,190 1,070,609 17,410 18,083 1,052,525 27,189 1.25%
EXPECTED LIFE: Expected service life based on historical data
and industry standards.
16 Window Assemblies 1978 35 33 2 2023 2,417,500 2,564,726 2,279,357 2,283,918 280,808 140,334 6.46%
17 Sliding Doors 1978 35 33 2 2023 849,000 900,704 800,486 802,087 98,617 49,284 2.27%
EFFECTIVE AGE: Assessed age of component. The default is the
18 Unit Entrance Doors 1978 35 33 2 2023 580,000 615,322 546,857 547,951 67,371 33,668 1.55% chronological age, but may be adjusted based on condition,
19 Service Doors 1978 50 48 2 2023 100,500 106,620 96,480 96,673 9,947 4,971 0.23% location (exposure to weather and traffic), installation,
20 Sealant 1978 10 8 2 2023 302,300 320,710 241,840 242,324 78,386 39,173 1.80% maintenance, brand, model, etc.
21 Paint Coating 1978 10 8 2 2023 1,151,560 1,221,690 921,248 923,091 298,599 149,225 6.87%
22 Low Slope Roof - Townhouse Buildings 2014 25 7 18 2039 2,895,810 4,929,923 810,827 825,546 4,104,376 226,089 10.41% REMAINING LIFE: Effective Age subtracted from Expected Life.
23 Low Slope Roof - Office and Pool Buildings 1978 25 23 2 2023 85,230 90,421 78,412 78,569 11,852 5,923 0.27%
24 Steep Slope Roof - Cedar Shakes 1978 25 23 2 2023 97,520 103,459 89,718 89,898 13,561 6,777 0.31% RENEWAL YEAR: Sum of current year and Remaining Life.
25 Steep Slope Roof - Asphalt Shingles 2014 25 7 18 2039 66,250 112,786 18,550 18,887 93,899 5,172 0.24%
26 Gutters and Downspouts 1978 15 13 2 2023 165,760 175,855 143,659 143,946 31,909 15,946 0.73% CURRENT REPLACEMENT COST: Cost to replace now, calculated
MECHANICAL as a product of Unit Measure and Unit Cost.
27 Domestic Water Piping 1978 40 38 2 2023 3,408,000 3,615,547 3,237,600 3,244,078 371,469 185,642 8.55%
FUTURE REPLACEMENT COST: Cost to replace at expected date
28 Sprinkler Piping 1978 50 46 4 2025 41,490 46,697 38,171 38,324 8,374 2,090 0.10%
(including compounded inflation).
29 Pool Heaters 1978 20 16 4 2025 28,000 31,514 22,400 22,490 9,025 2,253 0.10%
30 Pool Hot Water Storage Tank 2014 15 7 8 2029 9,000 11,401 4,200 4,234 7,167 893 0.04% CURRENT RESERVE FUND REQUIREMENT: Amount needed in CRF
31 Miscellaneous Mechanical Room Components 1978 20 16 4 2025 12,000 13,506 9,600 9,638 3,868 965 0.04% now. What PRAs refer to as the FFB (Fully Funded Balance).
ELECTRICAL
32 Service Distribution 1978 50 43 7 2028 60,250 74,100 51,815 52,179 21,921 3,122 0.14% FUTURE RESERVE FUND ACCUMULATION: Amount of funds the
33 Power Distribution 1978 40 38 2 2023 148,310 157,342 140,895 141,176 16,166 8,079 0.37% Strata should have for this item if it met the current CRF
34 Fire Alarm System 1991 20 18 2 2023 59,400 63,017 53,460 53,567 9,450 4,723 0.22% requirements, given the CRF account’s interest rate.
SPECIALTY
35 Office Building - Interiors 1978 20 16 4 2025 16,650 18,740 13,320 13,373 5,366 1,340 -- FUTURE RESERVE FUND REQUIREMENT: What the Strata’s deficit
36 Recreation Building - Interiors 1978 20 16 4 2025 34,890 39,269 27,912 28,024 11,245 2,807 -- or surplus will be when it is time to replace.
37 Swimming Pool 1978 15 11 4 2025 29,067 32,715 21,316 21,401 11,314 2,824 0.13%
38 Playgrounds 1978 20 16 4 2025 10,000 11,255 8,000 8,032 3,223 805 0.04% ANNUAL RESERVE FUND ASSESSMENT: This is derived from the
39 Mailboxes 1978 30 28 2 2023 25,380 26,926 23,688 23,735 3,190 1,594 0.07% standard "Future Value of an Annuity" formula. Essentially, this
SITE SERVICES tells the Strata how much it needs to contribute each year to
40 Softscaping 1978 50 48 2 2023 1,288,620 1,367,097 1,237,075 1,239,551 127,546 63,741 2.93% make sure this item is fully funded (i.e. no special levies,
41 Hardscaping 1978 50 48 2 2023 570,680 605,434 547,853 548,949 56,485 28,229 1.30% assessments or loans).
42 Underground Water Supply and Drainage 1978 50 43 7 2028 176,700 217,319 151,962 153,029 64,290 9,157 0.42%
RESERVE FUND ASSESSMENT ALLOCATION: Allocated percentage
43 Outdoor Lighting 1978 30 28 2 2023 167,680 177,892 156,501 156,814 21,077 10,533 0.48%
of entire CRF.
44 Fencing 1978 30 28 2 2023 110,880 117,633 103,488 103,695 13,938 6,965 0.32%
45 Pathway Bridges 1978 30 28 2 2023 30,000 31,827 28,000 28,056 3,771 1,885 0.09%
46 Channeled Creek 1978 40 33 7 2028 19,440 23,909 16,038 16,151 7,758 1,105 --
RESERVE FUND PLANNING
Certified Reserve Fund Consultant 2021 3 0 3 2024 8,900 9,725 - - 9,725 3,239 0.15%
TOTAL RESERVES 33,928,701 42,838,905 27,177,789 27,267,293 15,571,612 2,172,474 100%

Benchmark Analysis Page 1 of 1

 JRS ENGINEERING LTD. APPENDIX B REPLACEMENT COSTS (BENCHMARK ANALYSIS)

CONSIDERATIONS & LIMITATIONS

The service life and estimated age of a specific reserve component is highly subjective. It should not be used for the exact
timing of replacements, but as a relative timing to be used to assist in developing a financial plan. The exact timing of
replacements will be influenced by several factors that are difficult to quantify. These factors include but are not limited to
the following:
 Design appropriateness of reserve component
 Installation of reserve component
 Frequency and intensity of maintenance
 Frequency of use and misuse
 Exposure to traffic and weather
 Brand, quality, and model of reserve components
 Unplanned events such as earthquakes, floods and fires

It should be noted that economies of scale may be achieved if multiple projects are bundled together into larger projects,
thus sharing front-end and mobilization costs.

The estimated costs should be considered as “order-of-magnitude” and used to allocate funds to undertake the work, not
for accounting purposes. Actual costs will vary based on a variety of factors, which include but are not limited to the
following:
 labour and materials market conditions
 time of the year
 contractor availability
 site-specific conditions
 environment concerns
 design specifications
 functional obsolescence
 project delivery method
 tendering process
 code upgrades
 required emergency repairs discovered during construction
 occupancy use and facility operations

More accurate estimates can only be determined once the project objectives are specified and the work tendered. Project-
related costs, such as consulting services, contingency allowances, front-end costs, all overhead and profit, have not been
included.

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 Appendix C

Funding Models & Cost Projections

 JRS ENGINEERING LTD. APPENDIX C FUNDING MODELS & COST PROJECTIONS

OPTION 1 (BASELINE)

This model shows annual contributions (increasing with inflation) consistent with status quo (current contributions) or the
statutory requirement of 10% of operating budget, whichever is higher. In this case, it is the former as the annual
contribution amount is $633,000. As seen below, multiple special levies will be required. From 2021 to 2051 (the end of
the 30-year outlook), special levies will theoretically be required in 3 out of 30 years but at a cumulative cost of
$27,912,341.

30 Year Cost Projection

(Option 1 - Baseline)
$50,000,000

$45,000,000

$40,000,000

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Reserve Fund Contributions Special Assessment
Opening Balance Reserve Requirements

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 APPENDIX C 30-YEAR COST PROJECTION
Option 1 (Baseline)

Mountainwood YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
SAMPLE 30-YEAR PROJECTION 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051
OPENING BALANCE (CRF) 441,131 1,039,572 1,666,602 0 0 0 733,820 1,481,489 1,946,154 2,738,564 3,558,324 4,412,582 5,275,214 4,098,240 5,031,920 5,994,421 6,763,009 7,767,551 8,258,095 1,331,308 2,391,640 3,537,300 4,691,504 117,042 1,348,677 2,421,474 3,749,257 5,100,129 6,093,464 7,547,816 9,047,070
Reserve Fund Contributions 3.00% 633,000 651,990 671,550 691,696 712,447 733,820 755,835 778,510 801,865 825,921 850,699 876,220 902,507 929,582 957,469 986,193 1,015,779 1,046,253 1,077,640 1,109,969 1,143,268 1,177,566 1,212,893 1,249,280 1,286,759 1,325,361 1,365,122 1,406,076 1,448,258 1,491,706 1,536,457
Special Assessment 0 0 7,993,187 9,721,704 10,197,450 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Reserve Fund Interest Income 0.10% 441 1,040 1,667 0 0 0 734 1,481 1,946 2,739 3,558 4,413 5,275 4,098 5,032 5,994 6,763 7,768 8,258 1,331 2,392 3,537 4,692 117 1,349 2,421 3,749 5,100 6,093 7,548 9,047
TOTAL CASH RESOURCES 1,074,572 1,692,602 10,333,005 10,413,400 10,909,897 733,820 1,490,389 2,261,481 2,749,965 3,567,224 4,412,582 5,293,214 6,182,996 5,031,920 5,994,421 6,986,609 7,785,551 8,821,571 9,343,993 2,442,609 3,537,300 4,718,404 5,909,089 1,366,439 2,636,784 3,749,257 5,118,129 6,511,305 7,547,816 9,047,070 10,592,574

RESERVE FUND EXPENDITURES

BUILDING ENVELOPE AND STRUCTURE
1 Parkade Structure (areas not repaired) 2,586,086 -- -- 1,028,900 1,059,800 1,091,500 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
2 Parkade Structure (previously repaired) 742,989 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 180,900 -- -- 1,976,389 -- -- -- -- -- -- -- -- -- -- -- --
3 Balcony Membrane - SBS (original) 882,000 -- -- 374,300 385,600 397,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,877,781 -- -- -- -- -- -- -- --
4 Balcony Membrane - SBS (renewed) 42,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 715,022 -- -- -- -- -- -- -- -- -- -- -- --
5 Balcony Membrane - Paint Coating (original) 475,200 -- -- 201,700 207,800 214,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,011,703 -- -- -- -- -- -- -- --
6 Balcony Membrane - Traffic Coating (renewed) 15,840 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 269,665 -- -- -- -- -- -- -- -- -- -- -- --
7 Ground-Floor Breezeways (original) 484,738 -- -- 194,900 200,800 206,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
8 Ground-Floor Breezeways (renewed) 184,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
9 Second and Third Floor Breezeways 134,784 -- -- 53,700 55,300 56,900 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
10 Guardrails and Handrails 99,008 -- -- 40,600 41,800 43,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
11 Exterior Staircases 394,001 -- -- 161,300 166,100 171,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
12 Exterior Walls - Wood (original) 6,204,330 35,000 -- 2,513,200 2,588,600 2,666,300 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
13 Exterior Walls - Wood (renewed) 17,533 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
14 Exterior Walls - Stucco (original) 2,977,044 -- -- 1,196,900 1,232,800 1,269,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
15 Exterior Walls - Stucco (renewed) 17,410 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
16 Window Assemblies 2,279,357 -- -- 923,400 951,100 979,600 -- -- -- -- -- -- -- -- -- -- -- -- 212,000 -- -- -- -- -- -- -- -- -- -- -- -- --
17 Sliding Doors 800,486 -- -- 324,300 334,000 344,100 -- -- -- -- -- -- -- -- -- -- -- -- 74,500 -- -- -- -- -- -- -- -- -- -- -- -- --
18 Unit Entrance Doors 546,857 -- -- 221,600 228,200 235,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
19 Service Doors 96,480 -- -- 38,400 39,600 40,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
20 Sealant 241,840 -- -- 115,500 119,000 122,500 -- -- -- -- -- -- -- 431,008 -- -- -- -- -- -- -- -- -- 579,238 -- -- -- -- -- -- -- --
21 Paint Coating 921,248 -- -- 439,900 453,100 466,600 -- -- -- -- -- -- -- 1,641,849 -- -- -- -- -- -- -- -- -- 2,206,508 -- -- -- -- -- -- -- --
22 Low Slope Roof - Townhouse Buildings 810,827 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 23,400 -- -- 4,929,923 -- -- -- -- -- -- -- -- -- -- -- --
23 Low Slope Roof - Office and Pool Buildings 78,412 -- -- 90,421 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 189,320 -- -- --
24 Steep Slope Roof - Cedar Shakes 89,718 -- -- 103,459 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 216,620 -- -- --
25 Steep Slope Roof - Asphalt Shingles 18,550 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 10,400 -- -- 112,786 -- -- -- -- -- -- -- -- -- -- -- --
26 Gutters and Downspouts 143,659 -- -- 63,400 65,300 67,200 -- -- -- -- -- -- -- -- -- -- -- -- 273,976 -- -- -- -- -- -- -- -- -- -- -- -- --
MECHANICAL
27 Domestic Water Piping 3,237,600 -- 10,000 1,301,600 1,340,700 1,380,900 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
28 Sprinkler Piping 38,171 -- -- -- -- 46,697 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
29 Pool Heaters 22,400 -- 6,000 -- -- 31,514 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 56,918 -- -- -- -- -- --
30 Pool Hot Water Storage Tank 4,200 -- -- -- -- -- -- -- -- 11,401 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 17,762 -- -- -- -- -- -- --
31 Miscellaneous Mechanical Room Components 9,600 -- -- -- -- 13,506 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 24,394 -- -- -- -- -- --
ELECTRICAL
32 Service Distribution 51,815 -- -- 3,000 -- -- -- -- 74,100 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- --
33 Power Distribution 140,895 -- 5,000 56,700 58,400 60,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
34 Fire Alarm System 53,460 -- 5,000 22,700 23,400 24,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 113,817 -- -- -- -- -- -- -- --
SPECIALTY
35 Office Building - Interiors 13,320 -- -- -- -- 18,740 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 33,846 -- -- -- -- -- --
36 Recreation Building - Interiors 27,912 -- -- -- -- 39,269 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 70,924 -- -- -- -- -- --
37 Swimming Pool 21,316 -- -- -- -- 32,715 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 50,969 -- -- -- -- -- -- -- -- -- -- --
38 Playgrounds 8,000 -- -- -- -- 11,255 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 20,328 -- -- -- -- -- --
39 Mailboxes 23,688 -- -- 26,926 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
SITE SERVICES
40 Softscaping 1,237,075 -- -- 492,200 507,000 522,200 -- -- -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- --
41 Hardscaping 547,853 -- -- 218,000 224,500 231,300 -- -- -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- --
42 Underground Water Supply and Drainage 151,962 -- -- 8,000 -- -- -- -- 217,319 -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- --
43 Outdoor Lighting 156,501 -- -- 64,100 66,000 68,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
44 Fencing 103,488 -- -- 42,400 43,700 45,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
45 Pathway Bridges 28,000 -- -- 11,500 11,900 12,200 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
46 Channeled Creek 16,038 -- -- -- -- -- -- -- 23,909 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
RESERVE FUND PLANNING
Certified Reserve Fund Consultant - -- -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900
TOTAL EXPENDITURES 35,000 26,000 10,333,005 10,413,400 10,909,897 0 8,900 315,327 11,401 8,900 0 18,000 2,084,757 0 0 223,600 18,000 563,476 8,012,685 50,969 0 26,900 5,792,047 17,762 215,310 0 18,000 417,841 0 0 8,900
CLOSING BALANCE 1,039,572 1,666,602 0 0 0 733,820 1,481,489 1,946,154 2,738,564 3,558,324 4,412,582 5,275,214 4,098,240 5,031,920 5,994,421 6,763,009 7,767,551 8,258,095 1,331,308 2,391,640 3,537,300 4,691,504 117,042 1,348,677 2,421,474 3,749,257 5,100,129 6,093,464 7,547,816 9,047,070 10,583,674
RESERVE REQUIREMENTS 27,177,789 27,142,789 29,316,406 21,185,192 12,965,451 4,240,994 6,417,710 8,587,702 10,453,437 12,624,963 14,801,163 16,988,438 19,159,901 19,266,779 21,458,520 23,652,453 25,624,980 27,805,079 29,441,882 23,631,114 25,776,250 27,974,501 30,148,050 26,558,625 28,739,896 30,725,801 32,929,001 35,116,404 36,906,154 39,115,535 41,327,125 43,532,026
ACCUMULATED RESERVE FUND BALANCE -26,103,217 -27,649,804 -21,185,192 -12,965,451 -4,240,994 -5,683,889 -7,106,212 -8,507,283 -9,886,399 -11,242,838 -12,575,857 -13,884,687 -15,168,539 -16,426,600 -17,658,032 -18,861,971 -20,037,528 -21,183,787 -22,299,805 -23,384,610 -24,437,201 -25,456,546 -26,441,583 -27,391,219 -28,304,326 -29,179,743 -30,016,275 -30,812,690 -31,567,719 -32,280,055 -32,948,352

Option 1 (Baseline) Projections Page 1 of 1

 JRS ENGINEERING LTD. APPENDIX C FUNDING MODELS & COST PROJECTIONS

OPTION 2 (THEORETICAL FULLY FUNDED)

This model shows annual contributions (increasing with inflation) that would allow for a sufficient and fully funded CRF that
should theoretically not require special levies during the 30-year outlook. This contribution level is immediate and based on
the objective of achieving a positive value in the accumulated CRF balance after 30 years.

Fully funded contributions are usually much higher than the amount the Owners are actually contributing to the CRF.
Therefore, it is usually impractical and difficult to achieve this immediately.

30 Year Cost Projection

(Option 2 - Theoretical Fully Funded)
$50,000,000

$45,000,000

$40,000,000

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
Reserve Fund Contributions Special Assessment
Opening Balance Reserve Requirements

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 APPENDIX C 30-YEAR COST PROJECTION

Option 2 (Theoretical Fully Funded)

Mountainwood YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
SAMPLE 30-YEAR PROJECTION 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051
OPENING BALANCE (CRF) 441,131 1,768,804 3,147,672 0 0 0 1,579,200 3,198,456 4,561,701 6,280,497 8,055,281 9,894,062 11,771,604 11,640,837 13,652,961 15,727,113 17,641,553 19,827,177 21,535,091 15,863,050 18,216,626 20,695,186 23,223,134 20,064,488 22,755,273 25,331,856 28,209,400 31,157,387 33,796,615 36,947,101 40,194,237
Reserve Fund Contributions 3.00% 1,362,232 1,403,099 7,182,185 10,413,400 10,909,897 1,579,200 1,626,576 1,675,374 1,725,635 1,777,404 1,830,726 1,885,648 1,942,217 2,000,484 2,060,498 2,122,313 2,185,983 2,251,562 2,319,109 2,388,682 2,460,343 2,534,153 2,610,178 2,688,483 2,769,138 2,852,212 2,937,778 3,025,911 3,116,689 3,210,189 3,306,495
Special Assessment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Reserve Fund Interest Income 0.10% 441 1,769 3,148 0 0 0 1,579 3,198 4,562 6,280 8,055 9,894 11,772 11,641 13,653 15,727 17,642 19,827 21,535 15,863 18,217 20,695 23,223 20,064 22,755 25,332 28,209 31,157 33,797 36,947 40,194
TOTAL CASH RESOURCES 1,803,804 3,173,672 10,333,005 10,413,400 10,909,897 1,579,200 3,207,356 4,877,028 6,291,898 8,064,181 9,894,062 11,789,604 13,725,593 13,652,961 15,727,113 17,865,153 19,845,177 22,098,567 23,875,735 18,267,595 20,695,186 23,250,034 25,856,535 22,773,036 25,547,166 28,209,400 31,175,387 34,214,456 36,947,101 40,194,237 43,540,926

RESERVE FUND EXPENDITURES

BUILDING ENVELOPE AND STRUCTURE
1 Parkade Structure (areas not repaired) 2,586,086 -- -- 1,028,900 1,059,800 1,091,500 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
2 Parkade Structure (previously repaired) 742,989 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 180,900 -- -- 1,976,389 -- -- -- -- -- -- -- -- -- -- -- --
3 Balcony Membrane - SBS (original) 882,000 -- -- 374,300 385,600 397,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,877,781 -- -- -- -- -- -- -- --
4 Balcony Membrane - SBS (renewed) 42,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 715,022 -- -- -- -- -- -- -- -- -- -- -- --
5 Balcony Membrane - Paint Coating (original) 475,200 -- -- 201,700 207,800 214,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,011,703 -- -- -- -- -- -- -- --
6 Balcony Membrane - Traffic Coating (renewed) 15,840 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 269,665 -- -- -- -- -- -- -- -- -- -- -- --
7 Ground-Floor Breezeways (original) 484,738 -- -- 194,900 200,800 206,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
8 Ground-Floor Breezeways (renewed) 184,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
9 Second and Third Floor Breezeways 134,784 -- -- 53,700 55,300 56,900 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
10 Guardrails and Handrails 99,008 -- -- 40,600 41,800 43,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
11 Exterior Staircases 394,001 -- -- 161,300 166,100 171,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
12 Exterior Walls - Wood (original) 6,204,330 35,000 -- 2,513,200 2,588,600 2,666,300 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
13 Exterior Walls - Wood (renewed) 17,533 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
14 Exterior Walls - Stucco (original) 2,977,044 -- -- 1,196,900 1,232,800 1,269,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
15 Exterior Walls - Stucco (renewed) 17,410 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
16 Window Assemblies 2,279,357 -- -- 923,400 951,100 979,600 -- -- -- -- -- -- -- -- -- -- -- -- 212,000 -- -- -- -- -- -- -- -- -- -- -- -- --
17 Sliding Doors 800,486 -- -- 324,300 334,000 344,100 -- -- -- -- -- -- -- -- -- -- -- -- 74,500 -- -- -- -- -- -- -- -- -- -- -- -- --
18 Unit Entrance Doors 546,857 -- -- 221,600 228,200 235,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
19 Service Doors 96,480 -- -- 38,400 39,600 40,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
20 Sealant 241,840 -- -- 115,500 119,000 122,500 -- -- -- -- -- -- -- 431,008 -- -- -- -- -- -- -- -- -- 579,238 -- -- -- -- -- -- -- --
21 Paint Coating 921,248 -- -- 439,900 453,100 466,600 -- -- -- -- -- -- -- 1,641,849 -- -- -- -- -- -- -- -- -- 2,206,508 -- -- -- -- -- -- -- --
22 Low Slope Roof - Townhouse Buildings 810,827 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 23,400 -- -- 4,929,923 -- -- -- -- -- -- -- -- -- -- -- --
23 Low Slope Roof - Office and Pool Buildings 78,412 -- -- 90,421 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 189,320 -- -- --
24 Steep Slope Roof - Cedar Shakes 89,718 -- -- 103,459 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 216,620 -- -- --
25 Steep Slope Roof - Asphalt Shingles 18,550 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 10,400 -- -- 112,786 -- -- -- -- -- -- -- -- -- -- -- --
26 Gutters and Downspouts 143,659 -- -- 63,400 65,300 67,200 -- -- -- -- -- -- -- -- -- -- -- -- 273,976 -- -- -- -- -- -- -- -- -- -- -- -- --
MECHANICAL
27 Domestic Water Piping 3,237,600 -- 10,000 1,301,600 1,340,700 1,380,900 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
28 Sprinkler Piping 38,171 -- -- -- -- 46,697 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
29 Pool Heaters 22,400 -- 6,000 -- -- 31,514 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 56,918 -- -- -- -- -- --
30 Pool Hot Water Storage Tank 4,200 -- -- -- -- -- -- -- -- 11,401 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 17,762 -- -- -- -- -- -- --
31 Miscellaneous Mechanical Room Components 9,600 -- -- -- -- 13,506 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 24,394 -- -- -- -- -- --
ELECTRICAL
32 Service Distribution 51,815 -- -- 3,000 -- -- -- -- 74,100 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- --
33 Power Distribution 140,895 -- 5,000 56,700 58,400 60,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
34 Fire Alarm System 53,460 -- 5,000 22,700 23,400 24,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 113,817 -- -- -- -- -- -- -- --
SPECIALTY
35 Office Building - Interiors 13,320 -- -- -- -- 18,740 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 33,846 -- -- -- -- -- --
36 Recreation Building - Interiors 27,912 -- -- -- -- 39,269 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 70,924 -- -- -- -- -- --
37 Swimming Pool 21,316 -- -- -- -- 32,715 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 50,969 -- -- -- -- -- -- -- -- -- -- --
38 Playgrounds 8,000 -- -- -- -- 11,255 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 20,328 -- -- -- -- -- --
39 Mailboxes 23,688 -- -- 26,926 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
SITE SERVICES
40 Softscaping 1,237,075 -- -- 492,200 507,000 522,200 -- -- -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- --
41 Hardscaping 547,853 -- -- 218,000 224,500 231,300 -- -- -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- --
42 Underground Water Supply and Drainage 151,962 -- -- 8,000 -- -- -- -- 217,319 -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- --
43 Outdoor Lighting 156,501 -- -- 64,100 66,000 68,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
44 Fencing 103,488 -- -- 42,400 43,700 45,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
45 Pathway Bridges 28,000 -- -- 11,500 11,900 12,200 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
46 Channeled Creek 16,038 -- -- -- -- -- -- -- 23,909 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
RESERVE FUND PLANNING
Certified Reserve Fund Consultant - -- -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900
TOTAL EXPENDITURES 35,000 26,000 10,333,005 10,413,400 10,909,897 0 8,900 315,327 11,401 8,900 0 18,000 2,084,757 0 0 223,600 18,000 563,476 8,012,685 50,969 0 26,900 5,792,047 17,762 215,310 0 18,000 417,841 0 0 8,900
CLOSING BALANCE 1,768,804 3,147,672 0 0 0 1,579,200 3,198,456 4,561,701 6,280,497 8,055,281 9,894,062 11,771,604 11,640,837 13,652,961 15,727,113 17,641,553 19,827,177 21,535,091 15,863,050 18,216,626 20,695,186 23,223,134 20,064,488 22,755,273 25,331,856 28,209,400 31,157,387 33,796,615 36,947,101 40,194,237 43,532,026
RESERVE REQUIREMENTS 27,177,789 27,142,789 29,316,406 21,185,192 12,965,451 4,240,994 6,417,710 8,587,702 10,453,437 12,624,963 14,801,163 16,988,438 19,159,901 19,266,779 21,458,520 23,652,453 25,624,980 27,805,079 29,441,882 23,631,114 25,776,250 27,974,501 30,148,050 26,558,625 28,739,896 30,725,801 32,929,001 35,116,404 36,906,154 39,115,535 41,327,125 43,532,026
ACCUMULATED RESERVE FUND BALANCE -25,373,985 -26,168,734 -21,185,192 -12,965,451 -4,240,994 -4,838,509 -5,389,246 -5,891,736 -6,344,467 -6,745,882 -7,094,376 -7,388,297 -7,625,942 -7,805,558 -7,925,340 -7,983,426 -7,977,902 -7,906,792 -7,768,064 -7,559,624 -7,279,315 -6,924,916 -6,494,137 -5,984,623 -5,393,944 -4,719,601 -3,959,017 -3,109,539 -2,168,434 -1,132,888 0

Option 2 (Theoretical Fully Funded) Projections Page 1 of 1

 JRS ENGINEERING LTD. APPENDIX C FUNDING MODELS & COST PROJECTIONS

OPTION 3 (GRADUATED HYBRID)

This model shows annual contributions that are gradually increased until 90% of the fully funded CRF contribution levels is
reached. These increases can be revised during the 3-year updates based on a number of factors: actual CRF contributions,
recent upgrades, anticipated short term expenditures, as well as current interest and inflation factors. This model generally
indicates that eventually (in 4 years) the CRF contribution level achieves 90% of the fully funded contribution level
($2,172,474) and is likely the most prudent option that the general Ownership would be willing to accept. The contribution
level is decreased in 2026 to 40% of the fully funded contribution level after major renewal projects are complete. The
owners can ultimately revise the percent of annual increases and time it takes to get to this value.

30 Year Cost Projection

(Option 3 - Graduated Hybrid)
$50,000,000

$45,000,000

$40,000,000

$35,000,000

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051

Reserve Fund Contributions Special Assessment

Opening Balance Reserve Requirements

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 APPENDIX C 30-YEAR COST PROJECTION
Option 3 (Graduated Hybrid)

Mountainwood YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
SAMPLE 30-YEAR PROJECTION 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 2051
OPENING BALANCE (CRF) 441,131 1,039,572 1,978,168 0 0 0 868,990 1,756,018 2,364,358 3,304,890 4,277,351 5,289,025 6,313,933 5,304,238 6,410,353 7,550,598 8,502,398 9,695,785 10,380,977 3,654,814 4,921,924 6,280,704 7,654,558 3,306,474 4,771,415 6,084,655 7,660,232 9,266,469 10,522,969 12,248,519 14,027,244
Reserve Fund Contributions 3.00% 633,000 963,557 1,294,113 1,624,670 1,955,227 868,990 895,059 921,911 949,569 978,056 1,007,397 1,037,619 1,068,748 1,100,810 1,133,835 1,167,850 1,202,885 1,238,972 1,276,141 1,314,425 1,353,858 1,394,473 1,436,308 1,479,397 1,523,779 1,569,492 1,616,577 1,665,074 1,715,026 1,766,477 1,819,472
Special Assessment 0 0 7,058,745 8,788,730 8,954,670 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Reserve Fund Interest Income 0.10% 441 1,040 1,978 0 0 0 869 1,756 2,364 3,305 4,277 5,289 6,314 5,304 6,410 7,551 8,502 9,696 10,381 3,655 4,922 6,281 7,655 3,306 4,771 6,085 7,660 9,266 10,523 12,249 14,027
TOTAL CASH RESOURCES 1,074,572 2,004,168 10,333,005 10,413,400 10,909,897 868,990 1,764,918 2,679,685 3,316,291 4,286,251 5,289,025 6,331,933 7,388,995 6,410,353 7,550,598 8,725,998 9,713,785 10,944,453 11,667,498 4,972,893 6,280,704 7,681,458 9,098,520 4,789,177 6,299,965 7,660,232 9,284,469 10,940,810 12,248,519 14,027,244 15,860,743

RESERVE FUND EXPENDITURES

BUILDING ENVELOPE AND STRUCTURE
1 Parkade Structure (areas not repaired) 2,586,086 -- -- 1,028,900 1,059,800 1,091,500 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
2 Parkade Structure (previously repaired) 742,989 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 180,900 -- -- 1,976,389 -- -- -- -- -- -- -- -- -- -- -- --
3 Balcony Membrane - SBS (original) 882,000 -- -- 374,300 385,600 397,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,877,781 -- -- -- -- -- -- -- --
4 Balcony Membrane - SBS (renewed) 42,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 715,022 -- -- -- -- -- -- -- -- -- -- -- --
5 Balcony Membrane - Paint Coating (original) 475,200 -- -- 201,700 207,800 214,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1,011,703 -- -- -- -- -- -- -- --
6 Balcony Membrane - Traffic Coating (renewed) 15,840 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 269,665 -- -- -- -- -- -- -- -- -- -- -- --
7 Ground-Floor Breezeways (original) 484,738 -- -- 194,900 200,800 206,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
8 Ground-Floor Breezeways (renewed) 184,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
9 Second and Third Floor Breezeways 134,784 -- -- 53,700 55,300 56,900 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
10 Guardrails and Handrails 99,008 -- -- 40,600 41,800 43,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
11 Exterior Staircases 394,001 -- -- 161,300 166,100 171,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
12 Exterior Walls - Wood (original) 6,204,330 35,000 -- 2,513,200 2,588,600 2,666,300 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
13 Exterior Walls - Wood (renewed) 17,533 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
14 Exterior Walls - Stucco (original) 2,977,044 -- -- 1,196,900 1,232,800 1,269,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
15 Exterior Walls - Stucco (renewed) 17,410 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
16 Window Assemblies 2,279,357 -- -- 923,400 951,100 979,600 -- -- -- -- -- -- -- -- -- -- -- -- 212,000 -- -- -- -- -- -- -- -- -- -- -- -- --
17 Sliding Doors 800,486 -- -- 324,300 334,000 344,100 -- -- -- -- -- -- -- -- -- -- -- -- 74,500 -- -- -- -- -- -- -- -- -- -- -- -- --
18 Unit Entrance Doors 546,857 -- -- 221,600 228,200 235,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
19 Service Doors 96,480 -- -- 38,400 39,600 40,800 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
20 Sealant 241,840 -- -- 115,500 119,000 122,500 -- -- -- -- -- -- -- 431,008 -- -- -- -- -- -- -- -- -- 579,238 -- -- -- -- -- -- -- --
21 Paint Coating 921,248 -- -- 439,900 453,100 466,600 -- -- -- -- -- -- -- 1,641,849 -- -- -- -- -- -- -- -- -- 2,206,508 -- -- -- -- -- -- -- --
22 Low Slope Roof - Townhouse Buildings 810,827 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 23,400 -- -- 4,929,923 -- -- -- -- -- -- -- -- -- -- -- --
23 Low Slope Roof - Office and Pool Buildings 78,412 -- -- 90,421 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 189,320 -- -- --
24 Steep Slope Roof - Cedar Shakes 89,718 -- -- 103,459 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 216,620 -- -- --
25 Steep Slope Roof - Asphalt Shingles 18,550 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 10,400 -- -- 112,786 -- -- -- -- -- -- -- -- -- -- -- --
26 Gutters and Downspouts 143,659 -- -- 63,400 65,300 67,200 -- -- -- -- -- -- -- -- -- -- -- -- 273,976 -- -- -- -- -- -- -- -- -- -- -- -- --
MECHANICAL
27 Domestic Water Piping 3,237,600 -- 10,000 1,301,600 1,340,700 1,380,900 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
28 Sprinkler Piping 38,171 -- -- -- -- 46,697 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
29 Pool Heaters 22,400 -- 6,000 -- -- 31,514 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 56,918 -- -- -- -- -- --
30 Pool Hot Water Storage Tank 4,200 -- -- -- -- -- -- -- -- 11,401 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 17,762 -- -- -- -- -- -- --
31 Miscellaneous Mechanical Room Components 9,600 -- -- -- -- 13,506 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 24,394 -- -- -- -- -- --
ELECTRICAL
32 Service Distribution 51,815 -- -- 3,000 -- -- -- -- 74,100 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- -- -- 3,000 -- -- --
33 Power Distribution 140,895 -- 5,000 56,700 58,400 60,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
34 Fire Alarm System 53,460 -- 5,000 22,700 23,400 24,100 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 113,817 -- -- -- -- -- -- -- --
SPECIALTY
35 Office Building - Interiors 13,320 -- -- -- -- 18,740 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 33,846 -- -- -- -- -- --
36 Recreation Building - Interiors 27,912 -- -- -- -- 39,269 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 70,924 -- -- -- -- -- --
37 Swimming Pool 21,316 -- -- -- -- 32,715 -- -- -- -- -- -- -- -- -- -- -- -- -- -- 50,969 -- -- -- -- -- -- -- -- -- -- --
38 Playgrounds 8,000 -- -- -- -- 11,255 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 20,328 -- -- -- -- -- --
39 Mailboxes 23,688 -- -- 26,926 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
SITE SERVICES
40 Softscaping 1,237,075 -- -- 492,200 507,000 522,200 -- -- -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- --
41 Hardscaping 547,853 -- -- 218,000 224,500 231,300 -- -- -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- -- 5,000 -- -- -- --
42 Underground Water Supply and Drainage 151,962 -- -- 8,000 -- -- -- -- 217,319 -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- -- 8,000 -- -- -- --
43 Outdoor Lighting 156,501 -- -- 64,100 66,000 68,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
44 Fencing 103,488 -- -- 42,400 43,700 45,000 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
45 Pathway Bridges 28,000 -- -- 11,500 11,900 12,200 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
46 Channeled Creek 16,038 -- -- -- -- -- -- -- 23,909 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --
RESERVE FUND PLANNING
Certified Reserve Fund Consultant - -- -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900 -- -- 8,900
TOTAL EXPENDITURES 35,000 26,000 10,333,005 10,413,400 10,909,897 0 8,900 315,327 11,401 8,900 0 18,000 2,084,757 0 0 223,600 18,000 563,476 8,012,685 50,969 0 26,900 5,792,047 17,762 215,310 0 18,000 417,841 0 0 8,900
CLOSING BALANCE 1,039,572 1,978,168 0 0 0 868,990 1,756,018 2,364,358 3,304,890 4,277,351 5,289,025 6,313,933 5,304,238 6,410,353 7,550,598 8,502,398 9,695,785 10,380,977 3,654,814 4,921,924 6,280,704 7,654,558 3,306,474 4,771,415 6,084,655 7,660,232 9,266,469 10,522,969 12,248,519 14,027,244 15,851,843
RESERVE REQUIREMENTS 27,177,789 27,142,789 29,316,406 21,185,192 12,965,451 4,240,994 6,417,710 8,587,702 10,453,437 12,624,963 14,801,163 16,988,438 19,159,901 19,266,779 21,458,520 23,652,453 25,624,980 27,805,079 29,441,882 23,631,114 25,776,250 27,974,501 30,148,050 26,558,625 28,739,896 30,725,801 32,929,001 35,116,404 36,906,154 39,115,535 41,327,125 43,532,026
ACCUMULATED RESERVE FUND BALANCE -26,103,217 -27,338,238 -21,185,192 -12,965,451 -4,240,994 -5,548,720 -6,831,684 -8,089,078 -9,320,073 -10,523,812 -11,699,413 -12,845,968 -13,962,540 -15,048,167 -16,101,855 -17,122,582 -18,109,294 -19,060,906 -19,976,300 -20,854,326 -21,693,797 -22,493,492 -23,252,152 -23,968,481 -24,641,145 -25,268,769 -25,849,935 -26,383,185 -26,867,016 -27,299,880 -27,680,183

Option 3 (Graduated Hybrid) Projections Page 1 of 1

 Appendix D

Cash Flow Table

 JRS ENGINEERING LTD. APPENDIX D CASH FLOW TABLE

RESERVE FUND – CASH FLOW TABLE

The Cash Flow Table presented below is for JRS’ recommended Graduated Hybrid Funding Model. It demonstrates estimated
cash flow over a 30-year period as the funding model is applied, including opening balance, of reserve fund contributions
and expenditures as major components are expected to be replaced.

ESTIMATED
ESTIMATED % INCREASE IN
INTEREST
RECOMMENDED INFLATION- RECOMMENDED
EARNED
OPENING ANNUAL SPECIAL ADJUSTED ANNUAL CLOSING
YEAR BALANCE CONTRIBUTION ASSESSMENT EXPENDITURES 0.1% CONTRIBUTIONS BALANCE
2021 441,131 633,000 - 35,000 441 -- 1,039,572
2022 1,039,572 963,557 - 26,000 1,040 52.22% 1,978,168
2023 1,978,168 1,294,113 7,058,745 10,333,005 1,978 34.31% 0
2024 0 1,624,670 8,788,730 10,413,400 - 25.54% 0
2025 0 1,955,227 8,954,670 10,909,897 - 20.35% 0
2026 0 868,990 - - - -55.56% 868,990
2027 868,990 895,059 - 8,900 869 3.00% 1,756,018
2028 1,756,018 921,911 - 315,327 1,756 3.00% 2,364,358
2029 2,364,358 949,569 - 11,401 2,364 3.00% 3,304,890
2030 3,304,890 978,056 - 8,900 3,305 3.00% 4,277,351
2031 4,277,351 1,007,397 - - 4,277 3.00% 5,289,025
2032 5,289,025 1,037,619 - 18,000 5,289 3.00% 6,313,933
2033 6,313,933 1,068,748 - 2,084,757 6,314 3.00% 5,304,238
2034 5,304,238 1,100,810 - - 5,304 3.00% 6,410,353
2035 6,410,353 1,133,835 - - 6,410 3.00% 7,550,598
2036 7,550,598 1,167,850 - 223,600 7,551 3.00% 8,502,398
2037 8,502,398 1,202,885 - 18,000 8,502 3.00% 9,695,785
2038 9,695,785 1,238,972 - 563,476 9,696 3.00% 10,380,977
2039 10,380,977 1,276,141 - 8,012,685 10,381 3.00% 3,654,814
2040 3,654,814 1,314,425 - 50,969 3,655 3.00% 4,921,924
2041 4,921,924 1,353,858 - - 4,922 3.00% 6,280,704
2042 6,280,704 1,394,473 - 26,900 6,281 3.00% 7,654,558
2043 7,654,558 1,436,308 - 5,792,047 7,655 3.00% 3,306,474
2044 3,306,474 1,479,397 - 17,762 3,306 3.00% 4,771,415
2045 4,771,415 1,523,779 - 215,310 4,771 3.00% 6,084,655
2046 6,084,655 1,569,492 - - 6,085 3.00% 7,660,232
2047 7,660,232 1,616,577 - 18,000 7,660 3.00% 9,266,469
2048 9,266,469 1,665,074 - 417,841 9,266 3.00% 10,522,969
2049 10,522,969 1,715,026 - - 10,523 3.00% 12,248,519
2050 12,248,519 1,766,477 - - 12,249 3.00% 14,027,244
2051 14,027,244 1,819,472 - 8,900 14,027 3.00% 15,851,843

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 Appendix E

Reserve Fund Study Team

 APPENDIX E OUR TEAM

OUR RESERVE PLANNING TEAM

Wesley Narciso, M.Eng., P.Eng., CRP, PRA
Senior Project Engineer | Division Manager
Wesley is a Senior Building Science Specialist, division manager, and part owner at JRS
Engineering who has provided engineering consulting services in Canada and the US
for more than 20-years. With over a hundred testing and failure analysis reports his
unique expertise in materials testing, metallurgical engineering and corrosion has been
beneficial in assisting with structural assessments, fastener failure investigations and
domestic water pipe replacements.
Wesley has applied his building science experience to a broad spectrum of building types — wood-frame low-
rise and concrete high-rise residential buildings to steel-and-glass commercial, office and institutional buildings.
He has performed and reviewed over 400 hundred targeted and full-scale building/property assessments/
investigations, provided recommendations to a variety of clients with respect to their financial and asset
management and helped resolved multiple warranty claim disputes. Wesley has experience in research, design
and project management on a variety of west coast projects. He has provided legal support in Canada and the
US, as well as expert witness testimony in the Supreme Court of BC.
An active participant in the building science industry, Wesley takes part in professional committees and presents
to industry groups and associations. As part of SeaBEC, he helped plan their first Building Enclosure Symposium
in 2011. He was the first Professional Engineer in BC to become a Certified Reserve Planner and the only
Professional Engineer in North America to also be a Professional Reserve Analyst.
Wesley is an official Mentor with Engineers and Geoscientists BC and was awarded Mentor of The Year in
2012, the inaugural year of the award. He is also the recipient of Engineers and Geoscientists BC 2014 Young
Professional Award (President’s Award). A coveted President’s Award is the top honour for engineering in BC.

All reserve planners are engineers registered with the Engineers and Geoscientists of British Columbia

THE ONLY CONSULTING FIRM

THAT CURRENTLY OFFERS
ALL THREE FACETS OF
RESERVE PLANNING

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 APPENDIX E OUR TEAM

OUR RESERVE PLANNING TEAM

Boris Lin, M.Eng., EIT

Civil / Structural Engineer
Boris specializes in new construction, warranty reviews, depreciation reports,
maintenance manuals, and field testing. His expertise includes a broad range of skills
including proficiency in design, testing, coordinating projects and ensuring a high level of
construction quality control as an on-site field engineer.

Kelvin Chen, B.ASc, EIT

Civil / Structural Engineer
Kelvin has experience in new construction and existing buildings with also significant
experience in reserve planning, warranty reviews, and leak investigations. His broad
range of knowledge and hands-on experience includes roofing, overseeing construction
projects and conducting material testing.

Peggy Shen, B.ASc, EIT

Civil / Structural Engineer
Peggy specializes in depreciation reports, whole building and targeted condition
assessments, and leak investigations. Her broad range of expertise includes working with
a variety of existing buildings containing varying architectural styles and conditions,
meeting with clients to provide customer service, and financial analysis.

Jeffrey Leung, B.Sc. EIT

Engineer
Jeffrey specializes in Depreciation Reports, while also applying his knowledge and
experience on a variety of other project types at JRS. Jeffrey’s experience in building
condition assessments and rehabilitation projects on existing buildings makes him a
valuable member of the JRS Reserve Planning Team.

Daniel Shim, B.ASc, EIT

Engineer
Daniel’s portfolio includes building remediation projects, building envelope condition
assessments, and leak investigations. Daniel currently works in the Existing Buildings
division at JRS. His experience with building envelope condition assessments makes him
a valuable member of the JRS Reserve Fund Analyst Team, working closely with senior
peers and clients to ensure that building envelope goals are met.

STRATA PLAN NW962 – MOUNTAINWOOD DEPRECIATION REPORT JRS PROJECT: VR15256F

 Appendix F

Glossary of Terms
 JRS E NGINEERING A PPENDIX F P AGE 1 OF 7

GLOSSARY OF TERMS

ANNUNCIATOR PANEL: A central fire alarm display panel usually located in close proximity to the building
entrance. It is used to allow for easy identification of fire hazard areas by fire rescue personnel during an
emergency and is linked with fire sensor devices throughout the building. It is a requirement in many
Canadian bylaws and requires periodic testing, which can be performed in conjunction with other fire
protection equipment.
ASBESTOS: A natural fibrous mineral that has carcinogenic and other negative health properties. It was heavily used
in building construction in the early to mid twentieth century due to its strength, corrosion and fire resistant
properties. In the late 20th century, the carcinogenic effects of asbestos were better understood and it was
then banned from use in developed countries in the 1980s and 1990s. Typically, buildings built earlier than
1990 should have asbestos testing performed, if interior finishes are disturbed.
BACKFLOW PREVENTER VALVE: A mechanical piping component that is used to prevent backflow of fluid (fluid
flowing opposite to intended direction). Its use may be required by municipal regulations and can prevent
contaminants from entering potable water. The City of Vancouver requires this device for use in "larger
complexes" to prevent backflow into potable water from fire sprinkler systems, underground irrigation
systems, and commercial/residential boiler systems with and without antifreeze. NFPA 25 (Standard for the
Inspection, Testing, and Maintenance of Water-Based Fire Protection Systems) includes a specification for
testing of fire sprinkler system backflow. These devices require annual testing according to the Vancouver
Water Works Bylaw 4848.
BASELINE FUNDING: A CRF funding regime that typically represents how much the Strata Corporation is currently
contributing or whatever the statutory minimum is, whichever is higher. This usually describes a CRF growth
strategy that tries to keep contributions low or similar to current or minimum statutory requirements, usually
with minor annual adjustments due to inflation. This funding strategy will allow for minimal disturbance to
owners' annual Contingency Reserve Fund (CRF) contributions, but will likely lead to frequent special
assessments to fund larger future projects (dependant on the health of the current CRF balance).
BELOW-GRADE MEMBRANE: A waterproofing material that is applied to surfaces that are below grade, often
buried under a nominal amount of landscaping (“at-grade” waterproofing is often at a trafficable surface
or at close proximity to a trafficable surface). The material is designed to prevent water ingress into the
substrate (e.g. concrete wall) where hydrostatic pressure is expected. A common example of a below
grade membrane is 2-ply SBS (Styrene Butadiene Styrene) over an underground parkade roof.
BENCHMARK ANALYSIS: Backbone of the Depreciation Report's financial analysis. It consists of an asset inventory
along with information regarding installation dates, typical life expectancies, effective ages, remaining life,
projected future renewal dates, estimated current and future costs for renewal as well as other CRF related
financial information, including the annual reserve fund assessment values.
BOILER: A mechanical vessel designed for heating fluid (air or water) for the purpose of air or domestic water
distribution. A boiler is often used for heating the building, where, for example, the heated medium is
pumped to radiant heaters and its energy is dissipated to its surroundings.
BOOSTER PUMP: A mechanical device used to increase/maintain the pressure or flow rate of a fluid. Booster pumps
are not typically intended to be used independently but as an auxiliary unit to a usually larger and more
complex pumping device. Booster pumps are commonly used in mechanical sprinkler systems in buildings
and for domestic water use in highrise buildings.
BUILDING CONDITION ASSESSMENT: A technical review of all the physical assets of a property and often includes
associated costs of short term renewals. It is similar to a Depreciation Report, except technically more
detailed and without the cost projections and cash flow tables associated with long term capital asset
planning.
BUILDING ENVELOPE: The shell of the building that separates the interior environment from the exterior environment.
Its purpose is to protect the interior space from environmental and manmade elements. Parts of the building
envelope include windows, walls, roofs, and floors. Other noteworthy components can include attics,
parkades, garages, carports and balconies.
BUILDING ENVELOPE CONDITION ASSESSMENT: Unlike Depreciation Reports/Reserve Fund Studies or Building
Condition Assessments, this type of assessment focuses only on building envelope systems/components and at
a greater detail, often including interior and/or exterior exploratory openings, moisture probes and other
analytical methods/tools to diagnose the building envelope's condition in greater detail.
BYLAWS: Sets of rules, regulations or subsidiary laws imposed onto a community, group, or organization by
consensus or legislation and registered in the Land Title Office. All strata corporations should have a set of
bylaws to address specific concerns where the standard Strata Property Act and Regulation are not
sufficient. It should be noted that not all rules voted into the bylaws may be legal and should be reviewed
by legal professionals.
CANOPY: A physical overhanging component commonly installed over fenestrations such as windows and doors. It is
used to deflect precipitation and/or provide shading for users.

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CAPITAL RESERVE PLAN: A formalized plan/strategy that compiles all major assets of a property and projects what
major remedial actions may be required along with their costs. The term is used interchangeably with
Depreciation Report (used mainly in BC), Reserve Study and Reserve Fund Study and is used more often with
Housing Co-ops and commercial property.
CASH FLOW METHOD: A CRF contribution strategy or option where contributions are designed to offset the variable
annual expenditures from the CRF. The CRF is considered one large pool of money, where annual
contributions (or special levies) offset the scheduled CRF expenditures from the fund, regardless of what the
money is intended for on that particular year.
CASH FLOW TABLE: A summary table in a depreciation report or reserve fund study that summarizes the pertinent
and more practical financial values within a projected outlook (e.g. balances, recommended annual
contributions, possible special assessments, estimated expenditures, estimated interest earned).
CEDAR SHAKES: A thin tapered piece of cedar that is often used in an offset layered pattern such as roofing or
cladding. Shakes are similar in appearance to shingles, but have differences in application, surface, and
dimension. Compared to shingles, shakes are slightly thicker (1/2" to 3/4" at butt end) and have a more
irregular surface finish causing them to not lay as flat after installation. Because of this, roofing shakes
typically utilize felt paper between courses.
CEDAR SHINGLES: A thin tapered piece of cedar that is often used in an offset layered pattern such as roofing or
cladding. Shingles are similar in appearance to shakes, but have differences in application, surface, and
dimension. Compared to shakes, shingles are slightly thinner (3/8" to 1/2" at butt end) and have a more
precise surface finish. Shingles do not typically have felt interweaving.
CHILLER SYSTEM: A mechanical system that is used to removed heat. It uses either vapour-compression or absorption
refrigeration cycle processes to cool a fluid, which is then run through further equipment (e.g. heat
exchanger) to remove heat from a space or equipment.
CHLORINATOR: A mechanism used to treat a substrate, most commonly water, with chlorine or a chloride compound
for the purpose of disinfection.
CIRCUIT BREAKER: An electrical device that is composed of mechanical switches, which are designed to automatically
switch off in case of high current flow. The equipment is used for safety purposes and is usually required by
law.
CLADDING: The exterior material or component of a building (typically at walls) designed to provide a deflection
mechanism for weather precipitation and the first line of defence against the environment.
CONDOMINIUM BOARD: The condominium board is usually elected by, and made up of, individual condominium or
property owners. The board meets regularly to handle policy, finances, and make decisions about the
upkeep and repair of the common property. In BC, these are referred to as strata councils.
CONTINGENCY RESERVE FUND: A fund or financial account used to pay for asset repairs, rehabilitation work,
renovations and renewals that occur less often than once per year. The fund may be built up over time
through annual strata fees so that future common expenses can be paid for partially or fully from the fund.
CONVEYANCE: Part of the building that transports (vertically or horizontally) supplies and/or building occupants
from one point to another (e.g. elevators, escalators, wheelchair lifts).
COOLING TOWER: A type of mechanical equipment that rejects waste heat to the atmosphere by way of cooling
water. This type of heat rejection is "evaporative", where it allows a small portion of the water to evaporate
into a moving air stream and provide significant cooling to the rest of that water stream. Common
applications are found in air conditioning, manufacturing and electric power generation.
COST PROJECTION: For Depreciation Reports and Reserve Studies, the cost projections relate to the future costs of
asset renewals within a given timeframe.
CPI (CONSUMER PRICE INDEX): An indicator of changes in consumer prices experienced by Canadians. It is obtained
by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers. This
value should not be mistaken for the construction inflation rate and should not used for projecting future
asset renewal costs in a Depreciation Report or Reserve Study.
DECK: A deck is a low slope surface capable of supporting weight, similar to a floor, but typically constructed
outdoors, often elevated from the ground, and usually connected to a building. More specifically, the term
deck refers to a roof over living space and may be designed to be used in a fashion similar to a balcony.
DEPRECIATION REPORT UPDATES: An update to a previous Depreciation Report, typically performed by the same
company. This includes an update in interest and inflation values, history of CRF transactions and asset
renewals, another interview with building representatives and in most jurisdictions, a site visit. Currently,
strata corporations in BC are required to obtain depreciation report updates every three years unless voted
down by a 3/4 vote and require a site visit. The updates, if performed by the same company, are usually
much cheaper than the previous Depreciation Report.
DISCONNECT SWITCHES: A disconnect switch is a piece of mechanical equipment that has the capability to interrupt
power to an electrical circuit or to a group of electrical circuits. Disconnect switches are used in a wide

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variety of settings, and are primarily employed as safety devices, which de-energize circuits so that people
can work on them safely.
DISTRIBUTION PANELS: A distribution panel is also known as a breaker panel. It consists of circuit breakers, fuses
and switches. The panel is connected to the main feeder lines and branch lines and are used to distribute
electricity within a building.
DOMESTIC WATER PIPE ASSESSMENT: This is a comprehensive assessment conducted on the potable water and
pipes to review the current condition of the domestic water distribution system. Information including, but are
not limited to, water quality, corrosion, leakage due to pitting, pipe breakage and serviceability, will be
documented such that informed decisions regarding repair, rehabilitation or replacement of the pipelines
can be made.
DUE DILIGENCE REPORT: These reports typically refer to technical reviews or condition assessments on buildings that
are being re-financed or changing possession. The interested party commissions the due diligence report
from building/construction professionals/consultants in order to ascertain any potential financial liabilities.
EAVE: The bottom horizontal edge of a roof that overhangs the face of a wall. The primary function of eaves is to
keep rain water off the windows and walls and to prevent the ingress of water at the junction where the
roof meets the wall. The eaves may also protect walkways around a building, prevent erosion of the
footings, and reduce splatter on the walls.
EFFECTIVE AGE: The age of a component or asset based on its condition. This is usually chronological by default (time
since installation), but may be younger or older, depending on the asset’s condition.
ELEVATOR MODERNIZATION: This typically refers to overhauling the elevator for most, if not all, of the mechanical
and electrical components, as well as the interior finishes, with the exception of the structural cab.
EMERGENCY GENERATOR: Equipment that uses fuel to produce emergency electricity when the electricity source
from the centralized electrical grid is cut off, interrupted, or reduced. Emergency generators are often
installed in buildings and are dormant when the building is obtaining electricity from the central grid.
EMERGENCY LIGHTING: A battery-packed or generator-sourced lighting device that switches on automatically when
a building experiences a power outage. Emergency lights are standard in new commercial and high
occupancy residential buildings.
ENTERPHONE: A standalone voice communication system for use within a building or small collection of buildings,
functioning independently of the public telephone network. Enterphones are generally mounted permanently
in buildings and can incorporate connections to public address loudspeaker systems, walkie-talkies,
telephones, and other intercom systems. Some intercom systems incorporate control of devices such as signal
lights and door latches.
EXPANSION TANK: A mechanical vessel that is typically filled with air and is used to regulate water pressure by
allowing the flow of expanding water into the tank and release pressure within the system. Expansion tanks
are typically installed as part of the water supply line to the water heater. When the water temperature
within the water heater rises, the water will expand due to its incompressibility.
FASCIA: Usually consists of long, straight boards (e.g. wood or fibre cement) that run along the lower edge of a roof
or balcony. Roof fascias are usually fixed directly to the trusses and act as backing for gutters.
FIRE PANELS: A control unit for a building's fire alarm system. The purpose of this panel is to monitor fires, alert
people to the location of a fire and supply power to fire detectors. There are two categories of fire alarm
panels: conventional and addressable. In conventional fire alarm panels, a series of circuits link all the fire
sensors to the central panel. The building is divided into zones, which devices are wired accordingly.
Addressable fire alarm panels have the system wired in one or more loops so that a fire can be pinpointed
to its exact location.
FLASHING: Usually refers to thin material (most often metal or polymeric) installed to deflect water away from a
structure, joint, fenestration, etc. It often plays a key role in the weather resistant barrier (WRB) system.
FOB ACCESS: A small security hardware device with built-in authentication, used to control, monitor and secure
access to certain areas. In buildings, key fobs can be used to access lobby doors, storage areas, fitness
rooms, pool rooms, etc. The FOB communicates via a reader pad with a central server for the building to
grant access to a particular area within customizable durations.
FULLY FUNDED OR FULL FUNDING: A funding option proposed in most depreciation reports that allow for all
projected expenses to be paid completely by the CRF with no projected special levies for the entire 30 year
scope of the report. This funding strategy is usually impractical and requires substantial increases to CRF
contributions and subsequently the strata fees. In other provinces where reserve planning has been legislated
for much longer (e.g. Alberta), fully funded models are reasonable and attainable goals.
FUNDING MODELS: Funding models utilize mathematical framework to establish appropriate funding strategies
towards the proper maintenance and asset renewal of a property. These models incorporate various
parameters such as inflation rates, interest rates, predicted special levies, as well as allowances for targeted
work and consulting. The purpose of proposing funding models is to quantify the level of unfunded liabilities
and empower the building owners with information to make informed financial decisions. The Strata
Property Regulation in BC requires that Depreciation Reports include at least 3 funding models.
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FUSE: A type of low resistance resistor that acts as a sacrificial device to provide over current protection of either the
load or source circuit. The primary component is a metal wire or strip that melts when too much current flows
through it, interrupting the circuit that it connects. Short circuits, overloading, mismatched loads, or device
failure are the prime reasons for excessive current.
GEAR TRACTION ELEVATOR: An elevator that is driven by an AC or DC electric motor using a worm-and-gear-type
reduction unit, which turns the hoisting sheave. While the lift rates are slower than in a typical gearless
elevator, the gear reduction offers the advantage of requiring a less powerful motor to turn the sheave.
GRADUATED HYBRID: A type of funding model that combines the Baseline and Fully Funded models to achieve a
balanced approach and gradual increase in CRF contributions. It starts with the current contribution levels
and eventually reaches a 50% to 75% fully funded contribution level (this target percentage can be
adjusted based on the financial condition of the property). Special levies may still occur but at smaller
quantities and less frequently than the baseline model. This funding strategy allows for a more customized
and pragmatic funding plan.
HEAT PUMP: A mechanical device that uses electrical energy to extract heat from an area of lower heat content and
transfer it to an area of higher heat content. A refrigerator is a common example of a heat pump device.
HEATING VENTILATION AIR CONDITIONING (HVAC): Refers to either a professional field, area of study, or type of
mechanical system/equipment. The HVAC of a building focuses on using mechanical systems and design to
maintain reasonable air quality and interior environmental comfort through heating, ventilation, and air
conditioning.
HOSE BIB: An outdoor water threaded faucet, protruding from a building, also known as a wall hydrant. In colder
climates, exterior house bibs should be installed in line with an interior wall (thermal barrier) such that it can
be recessed within the wall to provide freezing protection or protected with exterior grade foam insulation.
HOT WATER STORAGE TANKS: A mechanical vessel, such us an insulated tank, that is used for storing hot water for
domestic use. Hot water tanks may have a built-in gas or oil burner system, electric immersion heaters, or
may use an external heat exchanger to heat water from another energy source.
HOUSING CO-OP: A legal entity, usually a corporation, which owns real estate, consisting of one or more residential
buildings, where individual parties own a share instead of equity in the property. There are two types of
housing co-operatives: non-profit and for-profit. In BC, there are also government subsidized and non-
subsidized housing co-ops.
HYDRAULIC ELEVATOR: An elevator that is powered by a piston that travels inside a cylinder. An electric motor
pumps oil into the cylinder to move the piston, which then lifts the elevator cab. Electrical valves control the
release of the oil for a gentle decent. They do not use large overhead hoisting machinery the way gear
traction systems do.
INFLATION RATE: A sustained increase in the general price level of materials and/or services in an economy over a
period of time. Also defined as the percentage rate of change of a price index over time. For renewal
costs, a construction inflation rate is used, rather than the CPI.
INFRARED (IR): A type of electromagnetic radiation that has a wavelength greater than the red end of the visible
light spectrum. It is invisible to the human eye. All objects on earth emit infrared radiation as heat, which is
detectable by electronic sensors. IR cameras are used to assist with air leakage and discontinuities in thermal
insulation.
INSPECTION: Refers to a highly detailed and systematic review of a property with a well defined scope of work
and objective (e.g. roof, home). Most professional engineers do not provide "inspections," instead, provide
assessments, observations or technical reviews of buildings and/or targeted systems or equipment.
INTEREST RATE: Also known as the annual percentage rate of the principal, is an amount that is charged to
borrowers for the use of money from the lenders. It may be understood as the cost of borrowing money.
Rates can change by lenders, government policies as well as inflation.
IRRIGATION: The application of water to vegetation by means of pipes, sprinklers, ditches, or streams. It may refer
to as a mechanical system (often automated) installed on a property for the purpose of watering trees,
grass or plants.
LIFE CYCLE ANALYSIS (LCA): LCA is often applied to construction products, building assemblies, whole structures,
building portfolios and highways. It is often referred to as cradle-to-grave or cradle-to-cradle analysis and
is essential for making green decisions, whether in product manufacturing or in building design. It is life cycle
thinking applied to a product: what is involved to make a product and transport it to an installation site;
what inputs (e.g. raw materials) and outputs (e.g. products, waste) will occur related to making and using the
product over its expected life as well as what will happen to the product when it is no longer needed.
MAINTENANCE MANUAL: A report that acts as an information source, which includes building envelope assemblies,
warranties, and guides end users in the understanding a building. The manual should define the building
construction and its systems, along with the processes and procedures required for it to be maintained
efficiently and safely. The manual should also provide recommendations, requirements and checklists for the
proper maintenance and long term performance of the respective system or equipment.

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MAINTENANCE REVIEW: A report that consists of a site visit to a property and typically a review of the building
envelope systems and components, which comments on the effectiveness of current maintenance processes
and procedures, and offers recommendations for further maintenance actions.
MAJOR MAINTENANCE: Maintenance is casually defined in the Strata Property Act as actions performed more often
than once a year. Major maintenance consist of action items such as painting and sealant renewals, that are
likely to occur less frequently than once a year and if not performed, have potentially significant financial
and physical impact to the buildings.
MAKE UP AIR UNIT: A piece of equipment used to accept, filter and regulate airflow and distribute it throughout the
building as part of the HVAC system. Usually contains a blower, heating or cooling elements, and filter
racks.
MEMBRANE: A layer or multiple layers of material or a combination of materials that serve as a moisture barrier or
as an air and vapour barrier as well. An example would be a balcony or deck membrane (e.g. PVC or
polyurethane), which protects the substrate below from water ingress. Other common membranes consist of
asphalt, rubber, TPO and polyolefin.
MIXING VALVE: A mechanical device that blends hot and cold water together to ensure constant safe outlet
temperatures. The storage of water at a high temperature limits the possible breeding ground for bacteria,
and the use of a mixing valve allows for water to be stored at high enough temperatures and still be used
safely.
MOULD: A form of organic growth, such as fungi, that may grow on construction materials. Mould needs three things
to be created and sustain growth: food source, water and suitable temperature. It can be any colour and
can contribute to poor indoor air quality, adverse health effects, and material deterioration. It reproduces
by releasing small "spores" into the air that can lay dormant for long periods of time.
OBSOLESCENCE (TYPES: FUNCTIONAL, AESTHETIC, ECONOMIC): The state at which a piece of equipment, service,
or practice is no longer needed even though it may still be in good working order. Obsolescence frequently
occurs because a replacement has become available that has, in sum, more advantages than the
inconvenience related to repurchasing the replacement.
PARKADE VESTIBULE: A parkade vestibule is a lobby, entrance hall, or passage that serves to connect the parkade
space to the rest of the building interior.
PATIO: A ground level area intended for recreational use, commonly adjoining to a residence. Patios can be
paved (e.g. stone, concrete, brick, etc.) or built up from the ground (e.g. wood) and not typically suspended
or cantilevered from a building. Balconies are often suspended or cantilevered and roof decks are over
living space.
PAVER: A cementitious/masonry unit commonly used at patios, roof decks, or walkways to provide a walking/traffic
surface, a drainage pathway, and/or protection for underlying membranes/surfaces. Pavers are often
made from concrete, stone, or brick.
PERCENT FUNDED: The ratio, at a particular point of time (typically the beginning of the fiscal year), of the actual or
projected reserve fund balance to the accrued reserve fund balance, expressed as a percentage.
PRESSURE REDUCING VALVE (PRV): A mechanical device used in plumbing to provide a lower pressure fluid output
from a higher pressure fluid input, with the purpose of preventing damage that high pressure could cause to
lines and plumbing devices on the output side. In many municipalities, supply water pressure is higher than
what is recommended for domestic water lines (in some cases supply mains can exceed 200 psi). Many
plumbing codes require PRVs where supply pressures exceed 80 psi.
RAKE: The sloped edge of a roof at the ends or sides of a building. Rakes typically do not consist of an overhang,
but should as it greatly assists in water deflection, especially if window penetrations exist below.
REAL ESTATE INSTITUTE OF CANADA (REIC): An organization that provides education and designation programs for
real estate industry professionals in Canada.
RECIRCULATION PIPE: Recirculation pipes are used to circulate hot water continuously so that plumbing fixtures (e.g.
faucet) will better provide hot water on demand.
RESERVE FUND STUDY: Also known as a depreciation report, a report that reviews the current financial well-being of
a property as well as provides a visual assessment of the quantities and conditions of common assets of the
property, and estimates whether there are sufficient funds available for anticipated major repairs or
replacement of these common assets in the future. This report assists in long term financial planning; it strives
to examine all the systems and other physical aspects and gives a reasonable expectation as to when they
will need to be replaced or have non-routine repairs, and how much this will cost at that projected time in
the future. BC is one of the only jurisdictions in North America that uses the term "Depreciation Report."
ROCK BALLAST: Part of an assembly that consists of coarse aggregate (rocks or gravel) that is typically used to
protect or hold something in place and/or provide a drainage plane. Rock ballasts are used frequently on
built-up or inverted, low-slope roofing systems.
ROOFING CONTRACTORS ASSOCIATION OF BC (RCABC): An organization that includes professional roofing
contractors, manufacturers, and suppliers, and offers training, support, and leadership to its members.

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SAND FILTER: A device that uses sand as a natural filtration substance to purify water by removing suspended solids.
This type of filter is environmentally friendly and commonly used in swimming pools. Regular maintenance
(via backwashing or reversing the water flow through the filter) should be performed to maintain good
water filtration.
SBS MEMBRANE: A type of low-slope roofing membrane (styrene-butadiene-styrene) otherwise known as modified
bitumen, made from asphalt and a variety of rubber modifiers and solvents. Techniques or methods to install
SBS roofing membrane consist of heat applied, hot-mopped, mechanically fastened and cold-applied
adhesives.
SKYLIGHT: A type of fenestration installed in a roof or ceiling (typically at 45 degrees or smaller), fitted with safety
glass (i.e. tempered, laminated or wire reinforced) to allow for the transmission of daylight.
SOFFIT: A flat material installed under roof overhangs, or balcony joist spaces. It may be used for aesthetic
purposes but may also be useful in preventing unwanted animal habitation. Soffits are often perforated or
have vents installed to allow for venting of the enclosed space. Soffits can be made from a variety of
materials such as aluminum, vinyl, fiber cement, wood, steel, etc.
SPECIAL LEVY OR ASSESSMENT: An amount of money that owners are required to provide to their Strata
Corporation, in addition to their normal strata fees, to pay for essential items such as major maintenance,
emergency repairs, legal fees/costs, renewal and rehabilitation of common assets, when there is a shortfall
in available funds normally used for these types of expenses.
STANDPIPE: A standpipe is part of a series of pipes that transport water to hose valves located within the building. It
is designed to provide constant water flow for fire protection purposes and sometimes serves as a backup
system for buildings with sprinklers.
STATUTORY FUNDING: The minimum CRF funding level that is required to meet the statutory requirements for strata
corporations. In BC, the minimum statutory CRF contribution is 10% of the strata corporation's operating
budget, unless the CRF balance is at 25% of the operating budget. This is misleading as it indicates that
10% is sufficient when it typically is not.
STRATA CORPORATION: A legal entity created by the deposit of a strata plan in the Land Title Office. Its purpose
is to divide a building (or buildings) and/or a parcel of land into separate components individually owned
where common components are owned by all of the owners. The owners of the strata lots are the members
of the strata corporation. An elected strata council governs and maintains the strata corporation.
STRATA PLAN: A strata plan outlines the areas, boundaries and dimensions of the strata lots on a horizontal plane
by reference to survey makers and not by reference to the floors, walls or ceilings of a building. This
document is registered in the Land Title Office.
STRATA PROPERTY ACT: The Strata Property Act came into effect on July 1, 2000, (replacing the Condominium Act)
and provides a legal framework for all creations and operations of strata corporations in British Columbia.
It contains pertinent information affecting strata corporations. Owners and residents in all strata properties
must comply with the Strata Property Act, which requires every strata corporation to maintain property
insurance on the buildings on a strata plan and to maintain liability insurance. Under the Strata Property Act,
a strata corporation has a Schedule of Standard Bylaws, which governs the use, safety and condition of
common property and common assets.
STRATA PROPERTY REGULATION: Regulations are part of the Strata Property Act and are made by the Lieutenant
Governor in Council. Along with the Strata Property Act, the Regulations are the applicable and practical
component that allows for specific governance of a strata corporation's operation.
SUMP PUMP: A pump used to remove water that has accumulated in a water collection sump basin commonly found
in the lower sections of buildings. Sump pumps are especially used where the water table is above the
foundation of the home. They will divert the water away from a house to a location that can withstand and
deal with water flow such as a storm drain.
THEORETICAL FULLY FUNDED: This refers to the annual allocation of funds that is required so that the owners will
theoretically never require a special levy. In BC, where CRF balances and contributions (as well as strata
fees) are relatively lower than the rest of Canada, it is often an unrealistic target for the short term, but is
useful to reference when setting targets and financial goals.
THRESHOLD FUNDING: Threshold funding represents a reference funding level where the contingency reserve
contribution is set at a predetermined amount.
TRANSFORMER: An electrical device that converts electricity of one voltage into another. It does so by increasing or
reducing the voltage of an alternating current.
TRIM: Generally a strip of material used to help transition between different underlying substrates or cladding
components. Trims offer increased protection at vulnerable locations, facilitate construction, and/or provide
an aesthetic element to a building. Common areas for trim usage include around windows and doors, at
cladding inside/outside corners, floor lines, between different types of cladding, and at the base of walls.
Common trim materials include comb-faced spruce, fiber cement board, metal and polyvinyl sheets.

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UNIFORMAT: UniFormat is a North American based technical standard used for building asset life cycle and cost
analysis as well as building specifications. It has been adopted by ASTM (American Society for Testing and
Materials).
WARRANTY REVIEW: A warranty review is a technical report written for a building generally 12, 15, 24, 60 and
120 months following construction. This report often includes a questionnaire for owners, a site visit by
engineers for the purpose of reviewing the condition of various warrantable assets, and a professional
opinion on construction deficiencies that may be warrantable by the insurance company. This report is most
often commissioned by the owner(s) of the building. Types of warranty reviews will differ depending on
what is covered, given a certain timeframe, but it is important to understand that only the insurer (not the
engineer or contractor) can determine what a warrantable defect is. If there is disagreement, litigation can
ensue, which would be costly to the property owners and insurance company.

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300 - 4595 Canada Way 115 - 1925 18th Ave NE

Burnaby, BC V5J Calgary, AB, T2E 7T8
tel: 604.320.1999 tel: 403.452.3377
fax: 403.457.4707