Depreciation Report

Depreciation Report
Prepared For:
BCS 2429 The Point

610 Victoria Street
New Westminster, BC, V3M 0A5
2013
Depreciation Report
May 17th, 2013
BCS 2429 The Point

Baywest Management Corp.
13468 77th Avenue
Surrey, BC, V3W 6Y3
Depreciation Report
BCS 2429 The Point
610 Victoria Street, New Westminster, BC, V3M 0A5
Pursuant to your request for a Depreciation Report (Reserve Fund Study) for the within described
condominium project, we have prepared, and submit to you, this report.
The Introduction and Executive Summary describe the reserve fund concepts and major reserve fund
items, and outline the key conclusions of the report. This document provides current and future
replacement reserve estimates, and recommends reserve fund actions. The Depreciation Report is a
complex document and should be reviewed in detail and within the context of this report.
We recommend that a reserve fund plan and strategy be adopted and implemented, and that reserve
fund contributions of $60,000 in 2013 be increased to $ 68,100 per annum in 2014, and further
increased as per the cash flow table each subsequent year. As outlined in this report, the current
reserve fund and proposed contributions/special assessments will ensure reserve funds are adequate
to cover potential expenditures required to repair or replace common elements and assets of the
corporation when needed.
Maintenance Operations Program would be pleased to provide you with a three year update,
including site review, as per legislated requirements. We appreciate the opportunity to perform this
Depreciation Report for you. If you have any questions, please do not hesitate to contact the
undersigned.
Respectfully submitted,
Maintenance Operations Program
Markus Rissiek, Certified Reserves Planner
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Depreciation Report
Table of Contents
Table of Contents _______________________________________________________________________ 3
Table of Figures_________________________________________________________________________ 5
Introduction ___________________________________________________________________________ 6
Certification ____________________________________________________________________________________8
This Report Is Subject to the Following Limiting Conditions_______________________________________________9
Executive Summary _____________________________________________________________________________11
Cash Flow Table _______________________________________________________________________ 13
Report Overview________________________________________________________________________________14
Reserve Expenditures & Forecasting ________________________________________________________________15
Purpose of Depreciation Report __________________________________________________________ 17
Strata Property Act _____________________________________________________________________ 18
In This Manual ________________________________________________________________________ 21
Legislated Requirements: _________________________________________________________________________21
Additional Information ___________________________________________________________________________21
Methodology _________________________________________________________________________ 22
Depreciation Report _____________________________________________________________________________22
Certified Reserve Fund Planning Standards __________________________________________________________22
General Conditions and Assumptions _______________________________________________________________23
Depreciation Report Projection Factors _____________________________________________________________23
Means Historical Cost Index _______________________________________________________________________24
Property Information ____________________________________________________________________________27
Building Plans __________________________________________________________________________________27
Site Plan ______________________________________________________________________________________28
Basic Construction Components ___________________________________________________________________29
Reserve Component Analysis and Estimated Costs ___________________________________________ 31
Current Cost Estimates ___________________________________________________________________________32
Reserve Component Descriptions and Analyses _______________________________________________________35
Reserve Components ___________________________________________________________________ 36
Building - Structural and Architectural ______________________________________________________________36
Building Finishes and Decoration _________________________________________________________________66
Building Mechanical Systems ____________________________________________________________________81
Building - Electrical Systems ______________________________________________________________________95
Site Improvements ____________________________________________________________________________ 101
Reserve Fund Component Estimates ______________________________________________________ 108
REIC Benchmark Analysis _______________________________________________________________________ 108
Schedule A Benchmark Analysis ________________________________________________________________ 108
Schedule A - Benchmark Analysis ________________________________________________________ 109
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Summary of Reserve Fund Estimates _____________________________________________________________ 110
Analysis of Reserve Fund Operations _____________________________________________________________ 111
Corporations Financial Statements _______________________________________________________________ 111
Exceptions ___________________________________________________________________________________ 111
Schedule B - Statement of Historical Reserve Fund Operations _________________________________ 112
Benchmark Deficiency Analysis __________________________________________________________ 113
Adequacy of Depreciation Report ________________________________________________________________ 114
Reserve Fund Management 30 Year Projections ___________________________________________ 115
Schedule C 30 Year Projected Cash Flow and Deficiency Analysis _____________________________________ 115
Schedule C - 30 Year Reserve Fund Cash Flow Projection and Deficiency Analysis __________________ 116
Future Reserve Fund Management _______________________________________________________ 117
Maintenance Guidelines and Forms ______________________________________________________ 119
Your Stratas Maintenance Plan__________________________________________________________________ 120
Maintenance Inspection Sheet __________________________________________________________________ 122
Individual Owner Maintenance Review Guidelines __________________________________________________ 123
Owner Survey ________________________________________________________________________________ 124
How to Use Your Maintenance Schedule __________________________________________________________ 125
Maintenance Schedule _________________________________________________________________________ 126
Addenda Section _____________________________________________________________________________ 130
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Table of Figures
Cash Flow Table _____________________________________________________________________________________13
Depreciation Report Overview Table _____________________________________________________________________14
Underground Parkade with Cold-Applied Elastomeric Surface Membrane _______________________________________37
Overhead Door Hoist at The Point _______________________________________________________________________40
Aluminum Framed Window-Wall System _________________________________________________________________42
Brick Masonry at The Point ____________________________________________________________________________44
Aluminum Framed Storefront Wall and Door System ________________________________________________________46
Penthouse Eyebrow Protected by a Cold-Applied Elastomeric Waterproofing Membrane ___________________________48
Face-Mounted Aluminum Railing with Tempered Glass Inserts ________________________________________________50
Metal Awning with Glazed Canopy ______________________________________________________________________52
Double-Glazed Aluminum Framed Casement Style Windows _________________________________________________54
Aluminum Framed Sliding Glass Doors at Juliet Balconies ____________________________________________________56
Steel Security Door with Wired Glass Vision Lite ____________________________________________________________58
Polyurethane Caulking at Awning to Masonry Transition ____________________________________________________60
Painted (Elastomeric) Concrete Wall at The Point __________________________________________________________63
2-Ply SBS Roofing System with River Rock Ballast ___________________________________________________________65
Common Area Hallway Finishes, Baseboards, and Carpeting _________________________________________________67
Tower Entryway Tile Flooring at The Point ________________________________________________________________69
Suite Entryway Door at The Point _______________________________________________________________________71
Tower Lobby at The Point _____________________________________________________________________________73
Exercise Room at The Point ____________________________________________________________________________76
Media/Games Room Flooring, Pool Table, and Furniture ____________________________________________________78
Pool Area at The Point ________________________________________________________________________________80
Traction Elevator Hoist at The Point _____________________________________________________________________82
Primary Air Handling Unit at The Point ___________________________________________________________________86
Emergency Generator ________________________________________________________________________________88
Common Area Commercial Grade Hot Water Heater ________________________________________________________90
Working Sump Pit at The Point _________________________________________________________________________92
Sprinkler System Mechanicals at The Point ________________________________________________________________94
Access Control System Interface with Security Camera ______________________________________________________97
Common Area Baseboard Heater at The Point ___________________________________________________________ 100
Concrete Walkway and Seating at The Point ____________________________________________________________ 102
Exterior Light Post and Wall-Mounted Fixtures __________________________________________________________ 106
Schedule A Benchmark Analysis _____________________________________________________________________ 109
Schedule C - 30 Year Reserve Fund Cash Flow Projection and Deficiency Analysis _______________________________ 116
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Depreciation Report
Introduction
The common area components of every multi-unit building will require replacement and
repair over time, and the easiest way to approach these major tasks is with a progressive
strategy. A Depreciation Report creates that strategy by comprehensively studying the
common area components of a building, pricing their replacement, and establishing a
plan to obtain the funds necessary. A good plan will be tailored to the needs of each
strata, and may include special assessments, fee increases over time, or loans, depending
on what the Strata Council feels is the best approach for their owners.
By following the recommendations of a proactive Depreciation Report, a strata can expect

to realize substantial savings on the costs of their major repairs and replacements. Savings
come as a result of ongoing accrued interest on funds designated in the Depreciation
Report.
Maintenance Operations Programs Depreciation Reports follow the Functional Reserve

Fund Study model, which combines the cash flow and component methods of Reserve
Funding to create a comprehensive, easy-to-understand report. A few key concepts must
be explained in order to properly view this report, however.
Reserve Fund Study: Although Depreciation Report is the term used in B.C.s
legislation, it is interchangeable with the term Reserve Fund Study.
Adequacy: In Depreciation Reports, the term adequate refers to a report that provides
for all major replacements and repairs, never has a negative starting or ending balance,
and does not include any unplanned special assessments. There is no legislated
requirement for adequacy in B.C., but many Provinces, including Ontario, require
Depreciation Reports to be adequate.
Full Funding: A Depreciation Report which is Fully Funded is arranged in such a

way that not only are there no unplanned special assessments or negative balances
(adequate), but each owner in the building will carry an equal and proportional share
of the costs of maintaining the common area components. This is achieved by reaching
a point where the annual assessment (amount paid into the Contingency Reserve
Fund) remains constant year to year.
Benchmark Analysis: In a Functional Reserve Fund Study (Depreciation Report), the

benchmark analysis is essentially a baseline for the ideal level of funding. Assuming a
certain level of initial funding, a strata can use the annual reserve fund assessment
level from the benchmark to achieve full funding. Understanding the benchmark
analysis, however, requires clarification on several more terms, as follows:
Current Replacement Cost: Is the price to replace or repair a major component

right now.
Future Replacement Cost: Is the price to replace or repair a component when it

will need to be replaced, including inflation over the number of remaining
years in the components life span.
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Depreciation Report
Current Reserve Fund Requirements: A ratio of how much funding should
already be in place, in order to reach full funding at the annual reserve fund
assessment level listed.
Future Reserve Fund Accumulation: Is the Current Reserve Fund Requirements

plus compounded interest over the remaining life span of the component.
Future Reserve Fund Requirements: Are the Future Replacement Costs minus
the Future Reserve Fund Accumulation.
Annual Reserve Fund Assessment: Is the amount of money required annually to

conduct the needed replacements, assuming a fully funded model, and based
upon a reverse calculation from the previous figures.
Reserve Fund Asset Allocation: Defines the component costs as a percentage of

the total.
Three Funding Models: By legislation, the Depreciation Report is required to contain

at least three cash-flow funding models, to allow Strata Councils to manage their funds
in a way most accurately aligned with their goals. These models may contain special
levies, as well as loans, but will typically finance the majority of the replacements by
adjusting the levels of the annual contributions to the Contingency Reserve Fund. Since
adequacy is not required by B.C.s legislation, these models do not necessarily need to
be adequate or fully funded. A typical Functional Reserve Fund Study (Depreciation
Report) will be produced with a single funding model selected by the Strata Council,
with at least two additional models included in the addenda, should the goals of the
strata change over time.
By following the recommendations in this report, the Strata Corporation will be able to
effectively manage their expenditures on major replacements and repairs, utilizing a
funding model most suited to their goals.
Remember, major maintenance, repair items, and operating costs consume the bulk of
expenditures over a buildings life span, so be sure to make adequate Depreciation Report
funding a priority.
***Homeowner Protection Office Steering Committee. "Maintenance Matters." Homeowner Protection Office.
BC Housing, 2009. Web. December, 2009. <http://www.hpo.bc.ca/files/download/MMR/MM7.pdf>.
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Depreciation Report
Certification
We hereby certify that we are prescribed persons empowered to conduct Depreciation
Reports, as stipulated in B.C. Regulation 43/2000 under the British Columbia Strata
Property Amendment Act, 2009, and that Markus Rissiek, BA, CRP, has personally
inspected the within described property, and that he personally examined the building
plans and/or documents as identified herein. To the best of our knowledge and belief, the
information and data used herein are true and correct.
We have no interest, present or prospective, in the property or its management. Neither

the employment to prepare this Depreciation Report nor the compensation is contingent
on the amount of the reserve fund estimates reported. Moreover, we are solely
responsible for the reserve fund estimates reported herein.
This Depreciation Report was prepared in conformity with the Depreciation Report
Standards published by the Real Estate Institute of Canada, and it complies with the
British Columbia Strata Property Amendment Act, 2009, and Regulation 43-2000.
Maintenance Operations Program presently holds Errors and Omissions Insurance in the
amount of $2,000,000.00 from Trisura Guarantee Insurance Company. Markus Rissiek,
this reports preparer, is a Certified Reserves Planner, and has 6 years of experience as a
technical writer working on multi-family housing in B.C.
________________________________________
Markus Rissiek
Certified Reserves Planner
May 17th, 2013
2013 8
Depreciation Report
This Report Is Subject to the Following Limiting Conditions

The legal and survey descriptions of the property as stated herein are those which are
available at the time of production. These documents are assumed to be correct. All buildings
and improvements are deemed to have been constructed and finished in accordance with the
architectural, mechanical, and electrical plans and specifications, as well as any other available
technical specifications.
Sketches, drawings, diagrams, and photographs presented in this report, if any, are included
for the sole purpose of illustration. No legal survey, soil tests, engineering investigations,
detailed quantity survey compilations, nor exhaustive physical examinations have been made.
Accordingly, no responsibility is assumed concerning these matters, or other technical and
engineering techniques which would be required to discover any inherent or hidden condition
of the property. In addition, Maintenance Operations Program is not responsible for work
performed, or conclusions reached, that are based upon information or services provided by
the Client, or any third party not operating under the direct supervision of Maintenance
Operations Program.
In order to arrive at supportable replacement cost estimates, it was found necessary to utilize
both documented data, and information derived from industry experience and consultation. A
concerted effort has been put forth to verify the accuracy of the information contained herein.
Accordingly, the information is believed to be reliable and correct, and it has been gathered to
standard professional procedures, but no guarantee as to the accuracy of the data is implied.
The distribution of cost and other estimates in this report apply only under the programme of
utilization as identified in this report. The estimates herein must not be used in conjunction
with any other appraisal or Depreciation Report, and may be invalid if so used. The client to
whom this report is addressed may use it in deliberations affecting the subject property only,
and in so doing, the report must not be abstracted; it must be used in its entirety.
Possession of this report or any copy thereof does not carry with it the right of publication, nor
may it be used for any purpose by anyone but the applicant without the written consent of the
author, and in any event, only with the proper qualifications.
The agreed compensation for services rendered in preparing this report does not include fees
for consultations and/or arbitrations, if any. Should personal appearances be required in
connection with this report, additional fees will be negotiated.
The total amount of claims the Client may have against Maintenance Operations Program,
and its employees, under this engagement, including but not limited to claims for negligence,
negligent misrepresentation, and breach of Contract, shall be strictly limited to the amount of
any professional liability insurance available at the time such claims are made. No claims may
be brought more than 2 years after the services are rendered.
The Client expressly agrees that Maintenance Operations Programs employees, principals,
and partners shall have no personal liability to the Client in respect of a claim, whether in
contract, tort, and/or any other cause of action in law. Accordingly, the client expressly
agrees that it will bring no proceedings and take no action in any court of law against any of
the consultants employees, principals, or partners in their personal capacity.
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Depreciation Report
Copyright 2013 by Maintenance Operations Program
All rights reserved. No part of this report shall be reproduced or used in any form by any
means, graphic, electronic, or mechanical, including photocopying, recording, typing or
information storage and retrieval, without the written permission of the author.
Notwithstanding the foregoing, the applicant herein has permission to reproduce the
report in whole or in part for the legitimate purposes of providing information to the
board of directors, unit owners, and others who have an interest in the project.
Specifically, the applicant has permission to provide insurance appraisal and Depreciation
Report information in disclosure documents, such as a Form B.
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Depreciation Report
Executive Summary
This executive summary has been prepared as a quick reference of pertinent facts and
estimates of this Depreciation Report, and is provided for convenience only. Readers are
advised to refer to the full text of this Depreciation Report for detailed information.
Applicant: Robert Douglas

Baywest Management Corp.
13468 77th Avenue
Surrey, BC, V3W 6Y3
Date of Study: May 17th / 2012
Property: BCS 2429 The Point

610 Victoria Street
Reserve Fund Items
Architectural Components: 16 Reserve Components

Finishes Components: 8 Reserve Components
Mechanical and Electrical Components: 11 Reserve Components
Site Improvements: 4 Reserve Components
Reserve Fund Consultants: 1 Reserve Components
Inflation Factor 2.50% Interest Rate 1.25%
Year Opening Recommended Special Estimated Estimated Percentage Increase Closing

ending Balance Annual Assessment Inflation Interest in Recommended Balance
31-Dec Contribution Adjusted Earned Annual Contributions
Expenditures 1.25%
2013 224,587 60,000 80,203 2,807 n/a 207,191

2014 207,191 68,100 - 2,590 13.50% 277,881
2015 277,881 77,294 3,769 3,474 13.50% 354,879
2016 354,879 87,728 - 4,436 13.50% 447,043
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Depreciation Report
Significant Reserve Fund Estimates:
Current Replacement Costs $ 6,575,780

Future Replacement Costs $ 11,514,987
Current Reserve Fund Requirements $ 1,402,647
Future Reserve Fund Accumulation $ 1,790,350
Future Reserve Fund Requirements $ 9,724,638
Annual Reserve Fund Contributions $ 409,582
*****
Current Replacement Cost: Is the price to replace or repair a major component right now.
Future Replacement Cost: Is the price to replace or repair a component when it will need
to be replaced, including inflation over the number of remaining years in the components
life span.
Current Reserve Fund Requirements: A ratio of how much funding should already be in
place, in order to reach full funding at the annual reserve fund assessment level listed.
Future Reserve Fund Accumulation: Is the Current Reserve Fund Requirements plus
compounded interest over the remaining life span of the component.
Future Reserve Fund Requirements: Are the Future Replacement Costs minus the Future
Reserve Fund Accumulation.
Annual Reserve Fund Assessment: Is the amount of money required annually to conduct
the needed replacements, assuming a fully funded model, and based upon a reverse
calculation from the previous figures.
Reserve Fund Asset Allocation: Defines the component costs as a percentage of the total.
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Depreciation Report
Cash Flow Table

Maintenance Operations Program has prepared the following Cash Flow Table, which projects minimum annual funding requirements proposed to meet estimated Reserve Fund expenditures.
Year Opening Recommended Special Estimated Estimated Percentage Increase Closing

ending Balance Annual Assessment Inflation Interest in Recommended Balance
31-Dec Contribution Adjusted Earned Annual Contributions
Expenditures 1.25%
2013 224,587 60,000 80,203 2,807 n/a 207,191

2014 207,191 68,100 - 2,590 13.50% 277,881
2015 277,881 77,294 3,769 3,474 13.50% 354,879
2016 354,879 87,728 - 4,436 13.50% 447,043
2017 447,043 99,571 - 5,588 13.50% 552,203
2018 552,203 113,014 369,868 6,903 13.50% 302,251
2019 302,251 128,270 8,142 3,778 13.50% 426,157
2020 426,157 145,587 - 5,327 13.50% 577,071
2021 577,071 165,241 4,371 7,213 13.50% 745,155
2022 745,155 187,549 4,133 9,314 13.50% 937,885
2023 937,885 212,868 - 11,724 13.50% 1,162,476
2024 1,162,476 241,605 109,941 14,531 13.50% 1,308,671
2025 1,308,671 274,222 152,822 16,358 13.50% 1,446,429
2026 1,446,429 311,241 263,000 18,080 13.50% 1,512,751
2027 1,512,751 353,259 1,190,710 18,909 13.50% 694,209
2028 694,209 400,949 420,101 8,678 13.50% 683,735
2029 683,735 455,077 173,906 8,547 13.50% 973,453
2030 973,453 516,513 984,104 12,168 13.50% 518,030
2031 518,030 586,242 1,053,318 6,475 13.50% 57,429
2032 57,429 665,384 681,826 718 13.50% 41,705
2033 41,705 755,211 36,916 521 13.50% 760,522
2034 760,522 857,165 - 9,507 13.50% 1,627,193
2035 1,627,193 857,165 1,286,744 20,340 0.00% 1,217,954
2036 1,217,954 857,165 25,177 15,224 0.00% 2,065,166
2037 2,065,166 857,165 - 25,815 0.00% 2,948,146
Cash Flow Table
2038 2,948,146 857,165 6,136 36,852 0.00% 3,836,027
2039 3,836,027 857,165 6,817 47,950 0.00% 4,734,325
2040 4,734,325 857,165 237,185 59,179 0.00% 5,413,484
2041 5,413,484 857,165 - 67,669 0.00% 6,338,318
2042 6,338,318 857,165 5,864,222 79,229 0.00% 1,410,490
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Report Overview
Depreciation Report Overview Table
The green bars represent the recommended annual contributions for the strata corporation as a whole. These will be divided between the owners based on unit entitlement, and broken down monthly.
The gradual rise in fees will allow the strata corporation to stay ahead of expenditures, and ideally avoid most special assessments.
Though included here as a graph item, The Points selected funding model does not include any special assessments.
The blue line represents the expenditures that are expected over the 30 year span of the Depreciation Report.
2013
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Reserve Expenditures & Forecasting
The above chart represents annual expenditures toward reserve items in the coming 10
years. Since the complex is relatively new, the only significant upcoming expenditures are
for Exterior Finishes and Caulking in 2018. The first year of substantial expenditures is 2027,
where replacements are expected for the Balcony Waterproofing, Balcony Doors, and Security
Doors.
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Recommendations
Based on present financial conditions and the buildings age, the contingency reserve
fund for BCS 2429 The Point, is moderately deficient against the benchmark analysis.
Any deficiencies should be eliminated over time in order to meet adequacy, and ensure
proper funds are in place for major repairs and replacements.
Maintenance Operations Program recommendations, set out below and detailed in this
report, will assist the corporation in achieving and maintaining an adequate reserve fund.
In our opinion, if adhered to, the current reserve fund balance, recommended annual
contributions, and earned investment income will adequately fund immediate and future
reserve fund expenditures.
1. The corporation should prepare and implement a long-term reserve fund

strategy.
2. Major repairs and replacements should continue to be recorded in, and funded
from, a contingency reserve fund account.
3. The contingency reserve fund contribution of $ 60,000 per annum in 2013 should
be increased to $ 68,100 per annum in 2014 and thereafter by the amounts
detailed in the cash flow table, each subsequent year.
4. The reserve fund should be fully invested in guaranteed securities, yielding at

least 1.25% per annum.
5. The corporation should make such expenditures as necessary to maintain the

property in optimum condition. This includes making repairs and replacements
outside of the life span estimates included in this report.
6. The reserve fund should be reviewed by the strata council every year to ensure
that the underlying assumptions are still valid and that the estimates remain
current. Changes should be catalogued and provided to the Depreciation Report
Planner prior to the legislated 3-year update.
7. The corporation should update the Depreciation Report every three (3) years in
accordance with the provisions of Section 94 of the British Columbia Strata
Property Act, amended 2009, Regulation 43/2000.
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Purpose of Depreciation Report

This Depreciation Report is a financial document. The purpose of a Depreciation Report is
to provide cost estimates for various reserve components that are subject to major repairs
and/or replacements over the lifetime of the property, and to estimate the funding
required for such major repairs and replacements in accordance with the provisions of
Section 94 of the British Columbia Strata Property Act, amended 2009, Regulation
43/2000. The figures included in this report should not be considered quotes; they are
prudent estimates of future costs, which may change based on a wide variety of factors
over time. This report is required to be updated once every 3 years, at minimum, based on
the above legislation.
This Depreciation Report applies as of:
May 17th/2013
Markus Rissiek, Certified Reserve Planner
2013 17
Depreciation Report
Strata Property Act
Depreciation report
6.2 (1) For the purposes of section 94 of the Act, a depreciation report must include all of
the following:
(a) a physical component inventory and evaluation that complies with

subsection (2);
(b) a summary of repairs and maintenance work for common expenses

respecting the items listed in subsection (2) (b) that usually occur less often than
once a year or that do not usually occur;
(c) a financial forecasting section that complies with subsection (3);
(d) the name of the person from whom the depreciation report was obtained
and a description of
(i) that persons qualifications,
(ii) the error and omission insurance, if any, carried by that person, and
(iii) the relationship between that person and the strata corporation;
(e) the date of the report;
(f) any other information or analysis that the strata corporation or the person
providing the depreciation report considers appropriate.
(2) For the purposes of subsection (1) (a) and (b) of this section, the physical component
inventory and evaluation must
(a) be based on an on-site visual inspection of the site and, where practicable, of
the items listed in paragraph (b) conducted by the person preparing the
depreciation report,
(b) include a description and estimated service life over 30 years of those items
that comprise the common property, the common assets and those parts of a
strata lot or limited common property, or both, that the strata corporation is
responsible to maintain or repair under the Act, the strata corporations bylaws
or an agreement with an owner, including, but not limited to, the following
items:
(i) the building's structure;
(ii) the building's exterior, including roofs, roof decks, doors, windows
and skylights;
(iii) the building's systems, including the electrical, heating, plumbing,

fire protection and security systems;
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Depreciation Report
(iv) common amenities and facilities;
(v) parking facilities and roadways;
(vi) utilities, including water and sewage;
(vii) landscaping, including paths, sidewalks, fencing and irrigation;
(viii) interior finishes, including floor covering and furnishings;
(ix) green building components;
(x) balconies and patios, and
(c) identify common property and limited common property that the strata lot
owner, and not the strata corporation, is responsible to maintain and repair.
(3) For the purposes of subsection (1) (c), the financial forecasting section must include
(a) the anticipated maintenance, repair and replacement costs for common
expenses that usually occur less often than once a year or that do not usually
occur, projected over 30 years, beginning with the current or previous fiscal
year of the strata corporation, of the items listed in subsection (2) (b),
(b) a description of the factors and assumptions, including interest rates and
rates of inflation, used to calculate the costs referred to in paragraph (a),
(c) a description of how the contingency reserve fund is currently being funded,
(d) the current balance of the contingency reserve fund minus any expenditures
that have been approved but not yet taken from the fund, and
(e) at least 3 cash-flow funding models for the contingency reserve fund
relating to the maintenance, repair and replacement over 30 years, beginning
with the current or previous fiscal year of the strata corporation, of the items
listed in subsection (2) (b).
(4) For the purposes of subsection (3) (e), the cash-flow funding models may include any
one or more of the following:
(a) balances of, contributions to and withdrawals from the contingency reserve
fund;
(b) special levies;
(c) borrowings.
(5) If a strata corporation contributes to the contingency reserve fund based on a

depreciation report, the contributions in respect of an item become part of the contingency
reserve fund and may be spent for any purpose permitted under section 96 of the Act.
(6) For the purposes of section 94 (1) of the Act, "qualified person" means any person
who has the knowledge and expertise to understand the individual components, scope
and complexity of the strata corporations common property, common assets and those
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Depreciation Report
parts of a strata lot or limited common property, or both, that the strata corporation is
responsible to maintain or repair under the Act, the strata corporation's bylaws or an
agreement with an owner and to prepare a depreciation report that complies with
subsections (1) to (4).
(7) The following periods are prescribed:
(a) for the purposes of section 94 (2) (b) of the Act, 3 years;
(b) for the purposes of section 94 (2) (c) of the Act, 18 months;
(c) for the purposes of section 94 (3) (a) of the Act, the one year period
immediately preceding the date on or before which the depreciation report is
required to be obtained.
(8) A strata corporation is prescribed for the purposes of section 94 (3) (b) of the Act if
and for so long as there are fewer than 5 strata lots in the strata plan.
[en. B.C. Reg. 238/2011, Sch. 1, s. 2.]
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Depreciation Report
In This Manual
Maintenance Operations Program is committed to meeting and surpassing the B.C.
Governments requirements for Depreciation Reports. To follow is a quick guide to
finding each of the legislated requirements of a Depreciation Report within this
document.
Legislated Requirements:
Strata Property Act B.C. Reg. 43/2000
6.2 (1)(a,b) & 6.2(2)(a,b): Reserve Components section, pages 36-107
6.2(1)(c) & 6.2(3)(a,c,d): Schedule C 30 Year Reserve Fund Cash Flow Projection and
Deficiency Analysis section, page 116
6.2(1)(d,e,f): Certification section, page 8
6.2(2)(c) & 6.2(6): Exceptions section, page 111
6.2(3)(b): Depreciation Report Projection Factors section, page 23
6.2(3)(e): Addenda section, page 130
Additional Information
Executive Summary: This section provides a quick and simple overview of the findings of
the Depreciation Report, including the Cash Flow Table, which summarizes the financial
conclusions of the report. Charts and graphs further illuminate the data, illustrating the
major components, yearly expenditures, and the forecast for the next 10 years.
Methodology: The methodology section explains the contents of the report, and includes a
detailed analysis of how the figures for inflation and interest are obtained.
Benchmark Analysis: The benchmark analysis is a tool which assesses the ideal funding
level for your complex, and measures your funding levels against the ideal figure (fully-
funded). A fully-funded strata will never require special assessments or loans, and pays
equal amounts each year, preventing owners from paying for mistakes made by owners
before them. This section includes historical data, where available, to create the most
complete picture of the stratas financial needs.
Maintenance Guidelines and Forms: This section includes review guidelines and
reporting forms, suggestions on maintenance practices, and a Maintenance Schedule for
tasks that occur annually or more frequently. This schedule fills in the gaps in
expenditures, as the Depreciation Report only covers repair and maintenance tasks that
take place less often than annually.
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Depreciation Report
Methodology
Depreciation Report
A Depreciation Report is a financial document, which provides the basis for funding
major repairs and replacements of the common elements and assets of the corporation.
This Depreciation Report comprises the following elements:
1. it identifies the reserve components and assesses their quality, normal life span,
and present condition;
2. it estimates the remaining serviceable years for each of the reserve components,
and proposes a time schedule for repairs and/or replacements;
3. it provides current replacement cost estimates, including the cost of removing

worn-out items and special safety provisions;
4. it projects the future value of current replacement costs at an appropriate and

compounded inflation rate;
5. it projects the future value of current reserve funds compounded at a long term
interest rate;
6. it calculates current reserve fund contributions required and to be invested in

interest bearing securities in order to fund future reserve fund expenditures.
The Depreciation Report is a practical guide to assist the Strata Council in planning
budgets and maintenance programs.
Certified Reserve Fund Planning Standards

Section 94 of the British Columbia Strata Property Act, amended 2009, Regulation 43/2000
requires that a reserve fund consist of a physical analysis and a financial analysis.
REIC has established Reserve Fund Planning Standards that exceed the regulatory
requirements, and are now recognized and emulated across Canada. These standards,
presented throughout this report, consist of investigations, analyses, and calculations that
provide realistic and supportable reserve fund estimates.
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Depreciation Report
General Conditions and Assumptions

Reserve fund estimates are subjective, and they are based on an understanding of the life
cycle of building components, and our experience related to construction practices in the
province of British Columbia. It must be appreciated that reserve fund budgeting and
projections are not exact sciences. They are, at best, prudent provisions for all possible
contingencies, if, as, and when they arise. Reserve fund requirements are subject to
change and must be reviewed and modified over time, not less than once every three
years.
Depreciation Report Projection Factors

Section 94 of the British Columbia Strata Property Act, amended 2012, Regulation
43/2000, requires that the financial analysis include the following:
The anticipated maintenance, repair, and replacement costs for common expenses
that usually occur less often than once a year or that do not usually occur,
projected over 30 years, beginning with the current or previous fiscal year of the
strata corporation, of the items listed in subsection (2)(b)
A description of the factors and assumptions, including interest rates and rates of
inflation, used to calculate the costs referred to in paragraph (a).
This report provides an objective basis for any estimates of inflation factors and interest
rates. Inflation factors and interest rates must be derived from an economic analysis of the
marketplace.
The estimated inflation factor and the selected interest rate are powerful factors in
projecting reserve fund contributions and requirements. They can vary dramatically over
time, and must be periodically reviewed to ensure their relevance and accuracy.
Although the Regulations require a Depreciation Report to be projected over a period of

at least 30 consecutive years, a long-term horizon in every respect, reserve fund projection
factors can only be based on short-term economic conditions because of their volatility
over time.
The reserve fund projection factors must be periodically reviewed and adjusted in
accordance with changing economic conditions as part of the reserve fund updating
process, as mandated by the regulations.
Inflation Factors
Inflation measurement in reserve fund projections must be based on construction indices,
rather than the widely quoted Consumer Price Index (CPI), which measures the cost of a
basket of consumer goods, not construction costs.
The most widely recognized construction cost services providing periodic cost indices are
R.S. Means and Marshall & Swift / Boeckh.
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Depreciation Report
Means Historical Cost Index

The Means Historical Index, used to calculate annual construction inflation rates, is based
on the computed value, as of 2012, for an average North American construction rate of
inflation. The following are selected average rates over various time periods:
20 years from 1992 to 2012 3.36%

15 years from 1997 to 2012 3.58%
10 years from 2002 to 2012 4.04%
5 years from 2007 to 2012 2.97%
These numbers indicate that the trend of construction inflation rates over the past 20 years
has been fluid, but the year over year inflation rate seems to have peaked between 2004
and 2008, and levelled off since. The most recent Means Historical Cost Index data
indicates a 1.54% inflation increase between 2012 and initial data for 2013.
While useful as an overall indication of construction inflation trends in North America,

these rates are too broadly based, and as such, they do not accurately reflect the
inflationary impact on local construction costs.
Marshall & Swift / Boeckh (MSB) Time-Location Multiplier

MSB publishes its Time-Location Multipliers quarterly for principal Canadian cities
(markets). These multipliers are computer-compiled by combining currently researched
wage rates and material prices with weighted schedules that specify how much of each
basic cost is in the models.
Each building has its own unique combination of basic costs. MSB uses 83 basic types of
costs necessary to build workable weighted schedules, comprising 19 building trades and
64 material types. The following are the percentage changes for MSBs Building Cost
Indexes relevant to BC (Western) for the previous 5 years, for both typical B.C. wood-
frame construction (D), and highrise construction (B):
Marshall & Swift / Boeckh Index

MSB Wood-Frame (Western Region)
2008 2009 2010 2011 2012
1.93% 2.85% -2.95% 4.57% 2.28%
Average over past 5 years: 1.74%
MSB Highrise (Western Region)

2008 2009 2010 2011 2012
3.25% 7.77% -6.41% 3.42% 3.40%
Average over previous 5 years: 2.29%
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Depreciation Report
Judging by recent construction cost trends, it may be difficult to forecast inflation rates in
the coming years. A rate of 2-2.5% annually is probably fairly accurate given Marshall &
Swift/Boecks historical rates, and the slightly higher inflation value for highrise
construction.
We have adopted the RS Means / Marshall & Swift median rate of 2.50% for annual
inflation in calculating the future replacement costs hereinafter, to allow for potential
volatility. This figure should be updated regularly.
Interest Rates
Investment income can be a significant and increasing source of revenue for contingency
reserve funds, therefore, it is imperative that contingency reserve funds are continuously
and prudently invested. Prudent investment also includes a careful reading of the Strata
Property Act (B.C. Reg. 43/2000, amended March 2012, entitled Permitted investments for
investment of money from contingency reserve fund), which is included in the Addenda
section at the end of this document for reference. This document outlines what
investments are permitted for a strata corporations contingency reserve fund.
Reserve fund investments must be directly or indirectly guaranteed by governments.
Bank deposits and various investment instruments are insured by the Canada Deposit
Insurance Corporation up to a maximum of $100,000, covering principal and interest.
The ability of condominium corporations to earn the highest rate of interest available in
the marketplace, given the restricted conditions of investments, depends on the expertise
of financial management and the amount of available funds for investment. The balance
of the reserve fund, primarily, will dictate investment options and their corresponding
interest rates. Investment opportunities are widely advertised, ranging from bank
deposits, term deposits, and guaranteed investment certificates (GICs), to money market
instruments and government bonds.
The following are some basic investment returns achievable for corporations, given
present market conditions (May 17th/2013), low-risk, and local institutions.
TD Canada Trust:
3 Year Premium Rate Cashable GIC 1.70%
High-Interest Savings Account 1.10%
Royal Bank:
RBC High Interest eSavings Account 1.20%
Five Year Redeemable GIC 1.825%
*** The investment returns listed above should be verified by the institution prior to budgeting, as rates can change rapidly and
without notice. The listings above should not be considered an endorsement by Maintenance Operations Program.
Prudent reserve fund investment requires that investments are reasonably matched with
anticipated reserve fund expenditures, ensuring reserve fund liquidity. Therefore, funds
should be invested in a laddered portfolio, which ensures that reserve funds are available
when needed.
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Depreciation Report
Some management firms use their purchasing power by directing business to a
particular financial institution to negotiate favourable interest rates for all their clients.
This approach may benefit the smaller corporations and is an important consideration
when selecting an appropriate interest rate.
The benchmark calculations and the reserve fund projections are based on the assumption
that reserve fund contributions are constantly and continuously invested.
For the purposes of this Depreciation Report, a 1.25% interest rate will be used, based
upon the corporations present interest rate.
* The above outline is for reference only. Strata investment decisions should be based upon a
thorough examination of the Strata Property Act, as well as consultation with a recognized
professional in the field.
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Depreciation Report
Property Information
Property Description:
BCS 2429 The Point
610 Victoria Street
The Point is a 22 storey concrete-framed condominium complex located in Burnaby, BC,

and constructed in 2007. The building consists of a single tower and low-rise section over
a large underground Parkade structure, including residential, commercial, and live-work
units. The overall construction, materials, and workmanship are of standard
condominium quality.
Baywest Management Corp. manages the property. The firm has a great deal of
experience in managing properties in the lower mainland, and the firms representative,
Robert Douglas, has been managing residential properties for many years.
Building Plans
The following plans were examined in the performance of the Depreciation Report:
Project Name: BCS 2429 The Point
Architectural Plans Available
Mechanical Plans Available
Electrical Plans Available
Structural Plans Available
Strata Plan Available
Original architectural documentation was available, and is deemed to be of good quality.

Most quantities are deemed to be accurate, but some were estimated or measured on site,
and are considered estimates. The building and site improvements were inspected in
person and in detail by this reports preparer. Various construction details, equipment
installations, and improvements have been noted for consideration in the cost estimates
herein.
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Depreciation Report
Site Plan
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Depreciation Report
Basic Construction Components

Construction was completed in 2007, and the complex was built in accordance with
applicable building codes, fire codes, city by-laws, and construction practices in existence
at that time. The quality of construction, materials, and workmanship, is considered to be
average for the complex as a whole.
Excavation and Foundations

Condominium includes a four-level underground parkade structure, damp-proofing,
reinforced concrete foundations and footings, drainage system, and SBS waterproofing
membranes over suspended slab outside of the building footprint.
Exterior Walls
The exterior walls consist of painted (elastomeric) concrete, aluminum framed double-
glazed window wall systems, brick masonry, and aluminum framed and glazed
storefront systems.
Roof and Drainage Construction

The flat roofing is composed of a 2-ply SBS waterproofing membrane system, including
integral drainage, cap flashing, and overflow scuppers. This system includes roof decks,
which are protected by concrete pavers over spacers. The 2-ply SBS roofing which is not
anticipated to have extensive pedestrian traffic is protected by a river rock ballast system.
Interior Construction
Drywall ceilings and walls, painted, with wood baseboards. Stairwells are painted
concrete. Flooring is predominantly carpet in corridors, with some ceramic tile at the
entryways.
Mechanical
Dry sprinkler system (fire) covering the underground Parkade; central HVAC system;
sanitary exhaust fans, and common area electric baseboard heating. Parkade is
mechanically vented (automatic), with blower units for storage and mechanical spaces.
Hot water is produced by hot water heaters located in each suite.
Conveying Systems
Two traction elevators service the complexs vertical conveying needs, alongside several
concrete stairwells.
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Depreciation Report
Electrical
Incoming metered service with main disconnects and distribution panel for each floor;
wiring and fixtures for light and power; telephone/cable wiring; house panels. Incoming
utilities are underground.
Amenities
Heated pool, hot tub, and sauna, including washrooms/change rooms. Exercise room and
media/games room. Landscaped central courtyard area.
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Depreciation Report
Reserve Component Analysis and Estimated Costs
Property Inspection
The property was inspected for the purposes of preparing this report on July 17th, 2012, by
Markus Rissiek.
Depreciation Reports
No previous depreciation reports were available for review.
Component Classification
Reserve Fund Components are conveniently classified in terms of component types,
common element facilities, and site improvements. The component inventory consists of
the reserve components, described and analyzed hereinafter, and shown in Schedules
A, B, and C.
There are 40 reserve components, comprising 16 building and architectural components, 8

building finishes components, 11 mechanical and electrical components, 4 site
improvement components, and 1 reserve consultant component.
Life Span Analysis

Each reserve component has been analyzed in terms of life cycle condition and expected
remaining useful life. The life span analysis considers the following factors:
Type of Component
Utilization
Material
Workmanship
Quality
Exposure to Weather Conditions
Functional Obsolescence
Environmental Factors
Regular Maintenance
Preventive Maintenance
Observed Condition
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Depreciation Report
The critical aspect in a Life Span Analysis is the observed condition of each reserve
component, which is based on:
Actual age of the component
Maintenance of the component
Observed deficiencies of the component
Repair and replacement experience
Probability of hidden conditions
The Life Span Analysis culminates in component life span estimates, as follows:
Normal Life Span

Each reserve component is analyzed in terms of component type, quality of construction,
statistical records, and normal life experience.
Observed Condition Analysis

This is the critical analysis of a reserve component, and consists of determining the
effective age of the reserve component within its normal life cycle based on the observed
condition of the reserve component. The validity of this analysis depends on the
experience of the reserve fund planner or analyst, as this is a subjective estimate rather
than an objective assessment.
Remaining Life Span

Given a normal life span estimate and a sound estimate of the effective age, the remaining
life span of a reserve component is determined by subtracting the observed condition
estimate from the normal life span estimate. This does not mean that reserve expenditures
should only be made at the end of the remaining life. Reserve expenditures should and
must be made during the remaining life span to maintain building components and
facilities in good condition.
A life span analysis is a subjective, or empirical, assessment of the life cycle status of a
reserve component, and as such, it is only as good as the considered opinion of the
reserve fund planner. Furthermore, the life span of a reserve component is subject to
change due to numerous factors.
Current Cost Estimates

Reserve Fund component assessments and current cost estimates are based on our
investigation, observation, analyses, and our extensive experience in performing
Depreciation Reports.
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Depreciation Report
Cost data have been calculated using construction cost services, including Marshall &
Swift/Boeckh Commercial Building Valuation System, the Means Repair & Remodelling
Cost Data, and the Hanscomb's Yardstick for Costing, modified as to time, location and
quality of construction. We also verified some estimates by seeking quotations from
contractors, fabricators, and suppliers. Moreover, we have used our own computer
programs and extensive cost compilations and databases.
All costs are strictly estimates, and are subject to confirmation at the time competitive bids
are obtained from contractors specializing in the repair or replacement work required.
The following factors have been considered in calculating the Repair and Replacement
Cost Estimates:
Quality of construction
Replacement cost estimates are based on the assumption of using quality materials, as
specified or built, or in the case of older developments, as required under current building
code regulations, at contractors' prices, using union labour and current construction
techniques, and including contractors' overhead and profit.
The costs of repairs and/or replacements of many reserve components are invariably
higher than original building costs when contractors have considerable latitude in
planning their work and can utilize economies of scale to keep costs within construction
budgets. In contrast, repair work must frequently be performed in an expedient manner
with proper safety precautions and within certain constraints.
Cost estimates take into account such additional costs as special construction, safety
installations, limited access, noise abatements, and the convenience of the occupants.
Demolition and Disposal Costs

The estimates herein include provisions for demolition and disposal costs including
dumping fees. These costs have been rising in recent years. Particularly, dumping of
certain materials has become problematic and very costly. It appears that certain codes
and environmental regulations will become more stringent in future years, all of which
will further increase disposal costs.
Goods and Services Tax

The Goods and Services Tax ("GST") applies to all repairs and replacements, including
disposal costs. Therefore, these costs are included in the reserve fund estimates
hereinafter.
Contingency Reserves
It is frequently impossible to forecast the incidence of repairs or replacements of various
reserve components, particularly, major components such as: road pavement, sewer, and
2013 33
Depreciation Report
water systems. Therefore, reserve estimates are of a contingency nature, and as such, they
are subject to changing conditions and repair experience over time.
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Depreciation Report
Reserve Component Descriptions and Analyses

The following lists each reserve fund component and provides the following information:
Description
Reserve Fund Expenditure History
Potential Deterioration
Condition and Life Span Analysis
Unit Quantities
Current Repair or Replacement Costs
Deficiency Analysis
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Depreciation Report
Reserve Components
Building - Structural and Architectural
Substructure & Parkade
Physical Description: This component is an allowance designed to cover the ongoing
upkeep of the four level parking structure and foundation. This includes: crack repair for
the floors, walls, and ceilings, epoxy injections for minor leaks, columns, expansion joints,
and repair items for the electrical, garbage, generator, and storage rooms. The mechanical
systems themselves, however, are included later in this report, under Building
Mechanical Systems. The replacement of the suspended slab waterproofing is not included
here, but should be considered of critical importance should persistent parkade leakage or
membrane damage become apparent. An allowance for spot repairs to this membrane is
included here, but consider a full replacement if any significant issues are noted with the
suspended slab membrane, or at the direction of a professional in the field.
Financial Analysis: No major expenditures were reported with regard to the parkade
area. This component should be considered an allowance for potential issues, and not a
replacement value.
Potential Deterioration: Sources of potential deterioration include vehicular impact,

moisture ingress, seismic shifting and settling, freeze-thaw cycles, cracking, and hydraulic
pressure.
Condition Analysis: The parking structure appears to be in good overall condition,

though some deficiencies have been noted (see below).
Life Cycle Analysis: Date of Acquisition: 2007
Normal Life Span: 36 Years
Effective Age: 6 Years
Remaining Life Span: 30 Years
Unit Quantity and Cost Estimates: Unit Quantity: 1 Allowance
Unit Cost Estimate: $419,189
Current Repair/
Replacement Cost Estimate: $419,189
Estimated Year of Major

Repair/Replacement: 2042
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Depreciation Report
Deficiency Analysis: The condition of the parkade structure is generally very good, but
several active and inactive leaks have been noted (Apex Building Sciences, June 2012).
Monitor for signs of further deterioration and repair as needed.
Underground Parkade with Cold-Applied Elastomeric Surface Membrane
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Depreciation Report
Superstructure
Physical Description: This component is an allowance designed to cover the ongoing
upkeep of the complexs superstructure, consisting of the reinforced concrete walls and
floors, as well as the cantilevered concrete balconies. This includes minor crack repair and
patching, as well as reapplication of relevant waterproofing to repaired areas. Structural
issues should be directed by a professional in the field, and are not included here.
Financial Analysis: No significant expenditures have been reported regarding the

buildings superstructure. This component should be considered an allowance designed
to cover incidental costs, and is not a replacement value.
Potential Deterioration: Sources of potential deterioration include physical damage,

moisture ingress, seismic shifting and settling, freeze-thaw cycles, spalling, and cracking.
Condition Analysis: The superstructure appears to be in fairly good condition, but

hairline cracks have been noted in a number of locations. The superstructure should be
regularly monitored for signs of worsening conditions.
Current Repair/

Deficiency Analysis: Numerous issues have been noted with regard to the
Superstructure, including hairline cracking in multiple locations, and voids in the
concrete, which in some cases are interrupting the function of associated waterproofing
membranes (Apex Building Sciences, June 2012). Monitor for signs of further deterioration
and repair as needed.
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Depreciation Report
Garage Doors
Physical Description: This component includes the horizontally operable underground
Parkade gate, motor, and hoist systems.
Financial Analysis: No major replacements or repairs were noted for the overhead garage
doors. This component includes a full replacement of each door, including its hoist and
motor.
Potential Deterioration: Sources of potential deterioration include vehicular damage,

electrical failure, and wear and tear to moving mechanical parts.
Condition Analysis: The garage door and hoist systems appear to be in good condition
overall, with no significant defects or issues. Maintenance is believed to be performed by
Ideal Door.
Unit Quantity and Cost Estimates: Unit Quantity: 4 Doors
Current Repair/

Deficiency Analysis: No major deficiencies were observed.
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Depreciation Report
Overhead Door Hoist at The Point
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Depreciation Report
Exterior Walls (Window-Wall)

Physical Description: This component covers the double-glazed aluminum framed
window wall system located at various areas throughout the building envelope.
Financial Analysis: No major expenditures have been reported for the window wall
system. This component is designed to prepare the strata corporation for the replacement
of the window wall system. Though the typical life span of this system (40 years) puts its
replacement outside of the scope of this study, the substantial nature of the expenditure
makes preparing for it vital. Though no replacement is expected within 30 years, this
component includes the majority of a total replacement cost, to make transitioning to a
replacement value (for coming legislated updates) easier. There is also some industry
debate regarding the expected life span of a window wall system, making preparedness
essential.

freeze-thaw cycles, moisture damage, vegetation growth, glass breakage, and seismic
shifting.
Condition Analysis: The window wall cladding system appears to be in good overall
condition, though some issues have been noted with hardware operability and
weatherstripping.
Unit Quantity and Cost Estimates: Unit Quantity: 31,113 sq. ft.
Unit Cost Estimate: $46.66/sq. ft.
Current Repair/
Replacement Cost Estimate: $1,451,764

Deficiency Analysis: Some minor issues have been noted with regard to operability of
windows and air infiltration (Apex Building Sciences, June 2012).
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Depreciation Report
Aluminum
Framed
Window-Wall
System
2013 42
Depreciation Report
Exterior Walls (Masonry Repair)

Physical Description: This component includes the exterior brick masonry cladding. Re-
pointing and repair of the masonry, which is located at the lower levels of the complex, is
included here. No full replacement is included, as the masonry itself is expected to last the
life of the building.
Financial Analysis: No major expenditures have been noted with regard to the brick
masonry. This component includes re-pointing and repair of the masonry only, and is not
a replacement item.

freeze-thaw cycles, moisture damage, and vegetation growth.
Condition Analysis: The masonry appears to be in good overall condition, though some
staining and efflorescence has been noted.
Unit Quantity and Cost Estimates: Unit Quantity: 2,423 sq.ft.
Unit Cost Estimate: $21.34/sq.ft.
Current Repair/

Deficiency Analysis: Some efflorescence and staining of the masonry has been noted
(Apex Building Sciences, June 2012), though condition overall appears to be very good.
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Depreciation Report
Brick
Masonry at
The Point
2013 44
Depreciation Report
Exterior Walls (Storefront Wall and Door System)

Physical Description: This component covers the aluminum framed storefront window
and door system, located across the majority of the lower two levels of the complex.
Financial Analysis: No major expenditures were noted for the storefront cladding system.
This component includes a full replacement of the storefront system, including glazing,
framing, and doors. This component is priced in the same way as the Window Wall
system, to allow for the allotment of funds beyond the 30 year scope of the study (See
Exterior Walls: Window Wall earlier in this report).

freeze-thaw cycles, moisture damage, vegetation growth, glass breakage, and seismic
shifting.
Condition Analysis: The storefront system appears to be in excellent condition, with no

major issues noted.
Current Repair/

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Depreciation Report
Aluminum Framed Storefront Wall and Door System
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Depreciation Report
Balcony Waterproofing (Including Eyebrows)

Physical Description: This component covers the cold-applied elastomeric waterproofing
membrane system at all balconies, as well as exposed concrete eyebrows.
Financial Analysis: No major expenditures have been reported for the balcony and
eyebrow waterproofing. This component includes a full replacement of these
waterproofing systems.

water ponding, UV related deterioration, and vegetation damage. The membrane can also
become compromised if the substrate shifts significantly, causing it to stretch beyond its
capacity and crack or tear.
Condition Analysis: The condition of the balconies appears to be very good, with only
minor deficiencies noted.
Unit Quantity and Cost Estimates: Unit Quantity: 23,468 sq.ft.
Unit Cost Estimate: $11.99/sq.ft.
Current Repair/

Deficiency Analysis: Some sloping issues have been noted, and the waterproofing may
be compromised in some areas where voids in the concrete prevented proper application
of the membrane (Apex Building Sciences, June 2012). Assuming these deficiencies are
repaired, the balcony and eyebrow waterproofing appears to be in very good condition.
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Depreciation Report
Penthouse Eyebrow Protected by a Cold-Applied Elastomeric Waterproofing Membrane
2013 48
Depreciation Report
Balcony Railings
Physical Description: This component includes the powder-coated aluminum railings
throughout the complex, including both picket style railings and railings with tempered
glass inserts.
Financial Analysis: No significant expenditures have been reported for the exterior
railings. This component includes a full replacement for all exterior railings, as well as an
incidental allowance for failed fasteners, damage, and premature failures.

freeze-thaw cycles, degradation of the welds and seams, and breakdown of the fasteners
(nuts, bolts, and washers).
Condition Analysis: The railings appear to be in very good overall condition, with no
major issues noted.
Unit Quantity and Cost Estimates: Unit Quantity: 4,779 li.ft.
Unit Cost Estimate: $136.21/li.ft.
Current Repair/

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Depreciation Report
Face-Mounted Aluminum Railing with Tempered Glass Inserts
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Depreciation Report
Exterior Awnings
Physical Description: This component includes the metal awnings sheltering the
sidewalks around The Point, including the canopy glazing.
Financial Analysis: No major expenditures were reported for the exterior awnings. The
awning system is expected to outlast the scope of this report, therefore no full
replacement is included here. This component includes periodic high-pressure washing
(roughly once every 10 years), and an allowance for incidental glass failure. Refinishing of
the metal framework is also included in this report, under the Exterior Finishes component.
The awnings should also be periodically assessed for structural integrity by a professional
in the field.
Potential Deterioration: Sources of potential deterioration include freeze-thaw cycles,

degradation of the welds, seismic shifting, glazing damage, and finish failure.
Condition Analysis: The awnings appear to be in good overall condition, with no major
issues noted.
Current Repair/

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Depreciation Report
Metal Awning with Glazed Canopy
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Depreciation Report
Windows
Physical Description: This component includes all exterior double-glazed aluminum
framed windows throughout the building envelope, excluding the window wall and
storefront systems.
Financial Analysis: No major expenditures have been reported for the exterior windows.
This component includes a full replacement of all exterior windows, including frames,
glazing, and accessories.
Potential Deterioration: Potential sources of deterioration include sealant breakdown,

physical damage, glass breakage, UV damage (seal), moisture, and mould and mildew
growth.
Condition Analysis: The windows appear to be in good overall condition, with some
minor issues relating to operability and drafts.
Unit Quantity and Cost Estimates: Unit Quantity: 283 Windows
Unit Cost Estimate: $1,098.90/unit
Current Repair/

Deficiency Analysis: Some issues were reported with regard to operability and drafts
(Apex Building Sciences, June 2012). There are also extensive weatherstripping issues,
potentially contributing to or causing drafts, which will be addressed separately in the
Weatherstripping component later in this report.
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Depreciation Report
Double-Glazed Aluminum Framed Casement Style Windows
2013 54
Depreciation Report
Balcony Doors (Swing and Sliding)

Physical Description: This component includes both the swing and sliding style balcony
doors, both of which are aluminum framed with double-glazing.
Financial Analysis: No major expenditures were reported for the Balcony Doors. This
component includes a full replacement for all swing and sliding style balcony doors,
including glazing and accessories.
Potential Deterioration: Potential sources of deterioration include sealant breakdown,

physical damage, freeze-thaw cycles, glass breakage, UV damage (seal), moisture, and
mould and mildew growth. The hardware (locksets, hinges, etc.) will experience wear and
tear at a more rapid rate than the other door components. Monitor and maintain the
hardware on a regular basis.
Condition Analysis: The doors appear to be in very good overall condition, with no
significant issues to note.
Current Repair/

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Depreciation Report
Aluminum Framed Sliding Glass Doors at Juliet Balconies
2013 56
Depreciation Report
Security Doors
Physical Description: This component includes the exterior metal security doors, some of
which include wired glass vision lites.
Financial Analysis: No major expenditures have been recorded for the security doors.
The value included here is for the full replacement of the exterior security doors and
associated hardware.
Potential Deterioration: Potential sources of deterioration include physical damage,

freeze-thaw cycles, UV damage, moisture, and mould and mildew growth. The hardware
(locksets, hinges, etc.) will experience wear and tear at a more rapid rate than the other
door components. Monitor and maintain the hardware on a regular basis.
Condition Analysis: The security doors appear to be in good condition overall, with no
major deficiencies reported.
Current Repair/

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Depreciation Report
Steel Security Door

with Wired Glass
Vision Lite
2013 58
Depreciation Report
Caulking
Physical Description: This component includes the polyurethane joint sealant (caulking)
throughout the building envelope.
Financial Analysis: No major expenditures have been noted for the caulking. This
component includes both replacements and ongoing spot repairs for the caulking

prolonged moisture exposure, UV damage, debonding due to substrate failure, and seal
failure.
Condition Analysis: The condition of the caulking is generally good, with a few issues
noted.
Current Repair/

Repair/Replacement: 2018, 2029, 2040
Deficiency Analysis: Some debonding has been noted, and some locations requiring
caulking have not had it applied (Apex Building Sciences, June 2012). Deficiencies should
be remedied as soon as possible, and caulking repairs should be made on an ongoing
basis, as necessary.
2013 59
Depreciation Report
Polyurethane Caulking at Awning to Masonry Transition
2013 60
Depreciation Report
Weatherstripping
Physical Description: This component includes all weatherstripping throughout the
building envelope.
Financial Analysis: No major expenditures have been noted for the weatherstripping at
The Point. This component provides for a full replacement of all weatherstripping

prolonged moisture exposure, adhesive failure, and general wear and tear.
Condition Analysis: The condition of the weatherstripping at The Point appears to be

very poor. Systemic issues have been noted, and replacement is suggested in the very
near future.
Current Repair/

Deficiency Analysis: Widespread issues have been noted with the weatherstripping at
The Point (Apex Building Sciences, June 2012). Weatherstripping is noted to be loose,
missing, or falling off in a significant portion of applied locations. Replacement is
recommended immediately.
2013 61
Depreciation Report
Exterior Finishes
Physical Description: This component includes exterior finishing tasks for the exterior
metal surfaces (security doors, awnings, light posts, etc.), exposed concrete including
balcony undersides (elastomeric paint), and all exterior wood products (benches, etc.).
Financial Analysis: No major expenditures have been recorded for the exterior finishes at
The Point. Though these finishing tasks are listed as a single expenditure, which may help
the strata save money in set-up costs, they can just as easily be separated for a
replacement date more in line with each individual components failure rate, though
moderate adjustments will be required for additional setup costs. The strata council
should make an informed decision on refinishing tasks as they become necessary,
whether aesthetic or for protective purposes. This component also includes touch-ups to
areas of damage or premature failure.
Potential Deterioration: Sources of potential deterioration include physical damage, UV

exposure, freeze-thaw cycles, long-term moisture exposure, and vegetation growth.
Condition Analysis: The exterior finishes are generally in fairly good condition, with
some issues noted.
Current Repair/

Deficiency Analysis: Some incidences of chipping and staining were noted, and extensive
peeling has been noted as well, particularly to areas exposed to persistent moisture (Apex
Building Sciences, June 2012). Touch-up damaged finishes as required.
2013 62
Depreciation Report
Painted (Elastomeric) Concrete Wall at The Point
2013 63
Depreciation Report
Flat Roofing, Roof Decks, and Accessories

Physical Description: This component covers the flat roofing, roof decks, drainage, and
associated flashings. The flat roofing is protected by a 2-ply SBS waterproofing membrane
system, which is further protected by river rock ballast at the flat roof, and concrete
pavers over spacers at the roof decks.
Financial Analysis: No major expenditures have been reported for the roofing system at
The Point. This component includes a full replacement of all flat roofing systems,
including filter fabric, insulation, cap flashing, and associated accessories.
Potential Deterioration: Sources of potential deterioration include physical damage, UV

damage, loss of granule adhesion, prolonged water ponding, and vegetation growth of
any kind. There are also a variety of problems linked to substrate issues, including
cracking, tenting, and blistering. These may be caused by shifts in, or damage to, the
substrate, but can also be caused by air or water between the substrate and the membrane.
Condition Analysis: The roofing membrane condition, where visible, appears to be good,
though some vegetation growth, nesting birds, and drain blockages have been noted.
Current Repair/

Deficiency Analysis: Bi-level drain blockages have been reported (Apex Building
Sciences, June 2012), and there appear to be nests and vegetation growth amongst the
river rock ballast in some areas.
2013 64
Depreciation Report
2-Ply SBS Roofing System with River Rock Ballast
2013 65
Depreciation Report
Building Finishes and Decoration
Interior Decorating and Painting

Physical Description: This component includes the painted interior hallway walls,
baseboards, and trim. The interior door frames, baseboards, and trim, are included for
repainting purposes, but not replacement.
Financial Analysis: No major expenditures have been reported for the interior decorating
and painting. This component includes prep work and repainting for the interior walls
and stairwells, as well as painting of the door frames, baseboards, and trim. The
refinishings and replacements included in this expenditure are grouped together to take
advantage of economy of scale. Each component, however, can be individually
remediated as necessary using these funds, at such a time as deemed necessary by the
strata council, with minor adjustments for additional setup costs.
Potential Deterioration: Potential deterioration comes primarily in the form of occupant

damage and incidental wear.
Condition Analysis: The interior painting and decorating generally appear to be

performing well.
Current Repair/

Deficiency Analysis: Some minor water damage and staining was noted (Apex Building
Sciences, June 2012).
2013 66
Depreciation Report
Common Area Hallway Finishes, Baseboards, and Carpeting
2013 67
Depreciation Report
Carpeting and Tile

Physical Description: This component includes the interior common area carpeting and
tile.
Financial Analysis: No major expenditures have been reported for the common area
flooring. The removal and replacement of the carpeting and tile systems has been
included here, as well as commercial grade sponge rubber carpet padding for the
common area hallways.
Potential Deterioration: Sources of potential deterioration come primarily from general

wear and tear, and sources of physical damage. Staining, discolouration, and water
damage are all typical issues for common area carpeting, while common area tile damage
usually comes from physical damage to the tiles themselves, or gradual breakdown of the
grout through moisture exposure.
Condition Analysis: The interior common area carpeting, as well as tile, appears to be
well maintained and performing well.
Current Repair/

2013 68
Depreciation Report
Tower Entryway Tile Flooring at The Point
2013 69
Depreciation Report
Suite Doors & Interior Fire Doors (Repair)

Physical Description: This component includes all interior suite doors and interior fire
doors.
Financial Analysis: No major repairs or replacements have been reported for the suite
doors and interior fire doors. This component does not include a full replacement. The
allowance listed here is for general touch-up and repair, as well as proportional
replacements of locksets and hardware which are damaged or prematurely break down,
based on a conservative failure rate estimate. Changing fire codes may require updates to
egress doors, which should be considered independently of the expenditure listed here.
Repair and refinishing is meant to take place as needed, and the 30 year remaining life
span estimate is designed simply to stretch the expenditure over the duration of the
report, not restrict the strata councils decisions on repair.
Potential Deterioration: Sources of potential deterioration come primarily from physical

damage and general wear. Hinges, locksets, and other hardware should be periodically
maintained, and are subject to the same potential deterioration as the doors.
Condition Analysis: The interior suite doors and fire doors appear to be in good overall
condition, with no major issues noted.
Current Repair/

Repair/Replacement:
2042 (When Needed)
2013 70
Depreciation Report
Suite Entryway Door at The Point
2013 71
Depreciation Report
Lobby Renovation
Physical Description: This component covers the lobby elements not covered elsewhere
in this Depreciation Report, specifically the furniture, decorative plants, and
miscellaneous expenditures.
Financial Analysis: No major replacements or repairs have been noted for the common
area lobby. This component includes a furniture and decoration allowance, as well as a
general contingency value. Interior painting, flooring, baseboards, fire equipment, and
doors are all included in other entries in this Depreciation Report.

damage and general wear.
Condition Analysis: The lobby appears to be well maintained, and in good condition.
Current Repair/

2013 72
Depreciation Report
Tower Lobby at The Point
2013 73
Depreciation Report
Elevator Cab Renovation (2)

Physical Description: This component includes the interior of the elevator cabs (2), not to
be confused with the Elevator Modernization component, which covers primarily the
mechanical elements of the elevator.
Financial Analysis: No major expenditures have been noted for the elevator cabs at The
Point. This component includes ceiling and flooring replacement, as well as an allowance
for incidental costs such as minor physical damage and graffiti removal.
Potential Deterioration: Sources of potential deterioration include, primarily, occupant

(physical) damage, and general wear and tear.
Condition Analysis: The elevator cabs appear to be in good condition, with no major
issues observed.
Unit Quantity and Cost Estimates: Unit Quantity: 2 Cabs
Current Repair/

2013 74
Depreciation Report
Exercise Room
Physical Description: This component covers the exercise room, including mirrors,
equipment provision, and upkeep.
Financial Analysis: No major expenditures have been reported for the exercise room.
This component covers basic maintenance items, repair, and upkeep. A full equipment
replacement is not included here, and upgrades or modernizations should be priced for
separately.

damage and gradual wear and tear.
Condition Analysis: The condition of the exercise room appears to be very good. No
major issues have been reported.
Current Repair/

2013 75
Depreciation Report
Exercise Room at The Point
2013 76
Depreciation Report
Media/Games Room
Physical Description: This component covers the media/games room at The Point,
including pool table, furniture, decoration, fixtures, and washroom.
Financial Analysis: No major expenditures have been reported for the media/games
room. This component includes minor repairs and replacement items for the pool table,
furniture, and decorations. The remaining fixtures (fridge, sink, washroom fixtures) are
included for basic maintenance purposes only.

Condition Analysis: The condition of the media/games room appears to be very good,
and no major issues have been reported.
Current Repair/

2013 77
Depreciation Report
Media/Games Room Flooring, Pool Table, and Furniture
2013 78
Depreciation Report
Pool Area Renovation

Physical Description: This component covers the pool area, including
change/washrooms, sinks, showers, toilets, sauna facilities and equipment, and the pool
and hot-tub equipment.
Financial Analysis: A recent expenditure was noted for the upkeep of the pool area
equipment. This component includes the full replacement of the sauna equipment, as well
as a repair allowance for the pool/hot-tub equipment, plumbing fixtures, furniture, and
sauna woodwork. No replacement value is allotted for the tile work, though a
proportional value is included for isolated damage or premature breakdown.

Condition Analysis: The pool area appears to be well maintained and in good overall
condition.
Life Cycle Analysis: Date of Acquisition: 2007/2012
Current Repair/

2013 79
Depreciation Report
Pool Area at The Point
2013 80
Depreciation Report
Building Mechanical Systems
Elevator Modernization (Traction)

Physical Description: This is a modernization component for the two traction elevator
systems. A modernization is essentially an overhaul of existing systems, designed to bring
them up to date, and prevent unexpected outages and down-time. Though no structural
components of the system are replaced, the major mechanical systems are either
overhauled or replaced, at the discretion of the mechanical contractor.
Financial Analysis: No major replacements or overhauls have been reported for to the
elevating systems. This component includes a full modernization, but no allotment for
structural components.
Potential Deterioration: Potential deterioration for the elevator system comes primarily
from mechanical and electrical failures as the unit ages. A solid professional maintenance
regimen, however, will not only prolong the service life of the elevator system, but
prevent inconvenient breakdowns.
Condition Analysis: The elevating devices at The Point appear to be in good condition,
with a solid professional maintenance regime undertaken. The maintenance contractor is
ThyssenKrupp Elevator.
Unit Quantity and Cost Estimates: Unit Quantity: 2 Elevators
Current Repair/

2013 81
Depreciation Report
Traction Elevator Hoist at The Point
2013 82
Depreciation Report
Plumbing System
Physical Description: Included here is an allowance for the ongoing upkeep of the
plumbing system at The Point. This component is concerned primarily with the upkeep of
the piping itself, including risers, branch piping, and circulation pumps.
Financial Analysis: The funds allotted here are designated for ongoing repairs to the
system, as pinhole leaks and minor failures occur over time. This includes repairs to
drywall, as well as finishes damaged as a result of failures. This option was chosen based
upon a business as usual policy generally undertaken by most strata corporations.
Other options include a full replacement of the piping system, which typically takes the
form of a PEX (flexible plastic) or rigid plastic (PVC, CPVC, or ABS) piping system, but
may also consist of a replacement in kind. A water treatment system may also be effective
in the management of pinhole leaks, and an epoxy coating for the inside of the piping can
prolong the life of the system. Should the strata council choose a different strategy on
plumbing upkeep, an adjustment should be made to this report to reflect the change in
course. Though the expenditure is included at year 20 of this report, this component is an
allowance designed to cover costs over time. The selection of a near term date is simply
designed to amass the needed funds sooner, rather than later, in preparation for
unanticipated failures.
Potential Deterioration: Sources of potential deterioration include water impurities

(which break down piping over time), and wear on joints and seals. Less frequently,
piping and systems can be damaged due to seismic shifting, or failures can occur due to
faulty products or installation. A professional maintenance regimen is vital to the ongoing
performance of the plumbing system.
Condition Analysis: The plumbing system, where visually examinable, appears to be

performing well.
Current Repair/

2013 83
Depreciation Report
HVAC Systems
Physical Description: This component covers the primary air handling unit and
supporting fan system, heat pumps servicing the commercial units**, as well as the
parkade exhaust systems, including blowers, CO2 sensors, and ventilation fans for the
service and storage rooms. Necessary accessories are included for all systems.
Financial Analysis: This is an allowance designed to include repair and replacement

items for the HVAC System. Although replacement values are included, this component
is classified as an allowance in order to permit the mechanical contractor to make
informed ongoing suggestions regarding the current state of each HVAC component.
These funds should be utilized as they are needed at the discretion of the maintenance
contractor and strata council, and should remain in the contingency reserve fund until
needed.
Potential Deterioration: Sources of potential deterioration primarily include moisture

damage and mechanical wear and tear. Lack of maintenance may also contribute to
premature breakdowns.
Condition Analysis: No major issues have been reported. The HVAC systems are
professionally maintained by Gordon Latham Ltd. (Lathams).
Current Repair/

Deficiency Analysis: No major deficiencies were reported or observed. Continue to

monitor the HVAC systems regularly with the support of a professional mechanical
maintenance firm.
**Commercial heat pumps are included here, and are one of the only components at The
Point exclusive to the commercial units. Strata sections were not represented in this report
due to the small scale of exclusive use components. Additionally, no differentiation was
requested. Should the corporation require a separation of these components, it can be
accommodated, but will influence the final data negligibly.
2013 84
Depreciation Report
2013 85
Depreciation Report
Primary Air Handling Unit at The Point
2013 86
Depreciation Report
Emergency Generator
Physical Description: This component covers the Emergency Generator, including
batteries, fuel storage, ventilation, and associated accessories.
Financial Analysis: No major expenditures have been noted for the emergency generator.
A full replacement of the major systems is included here, excluding structural elements.
Potential Deterioration: Sources of potential deterioration include moisture damage,

electrical breakdown, depleted batteries, and mechanical wear and tear. Lack of
maintenance may also contribute to premature breakdowns.
Condition Analysis: No significant emergency generator issues have been reported, and
ongoing maintenance is being undertaken by Simson-Maxwell. Replacement or repair
should be undertaken at the direction of the mechanical professional responsible for this
system.
Unit Quantity and Cost Estimates: Unit Quantity: 1 Unit
Current Repair/

2013 87
Depreciation Report
Emergency Generator
2013 88
Depreciation Report
Domestic Hot Water

Physical Description: This component covers the domestic hot water system independent
of the hot water tanks for individual units, which are internal to the strata lot, and thus
excluded from the common elements. This includes the hot water heater system that
manages the exercise room, pool area, and media/games room.
Financial Analysis: No major expenditures were reported for the common area domestic
hot water system. This item is included as an allowance for the ongoing repair and
replacement of the mechanical components of the common area domestic hot water
system. Repairs and replacements should be undertaken as needed, with consultation
from a professional mechanical firm in the field.
Potential Deterioration: Sources of potential deterioration include moisture damage,

electrical breakdown, and mechanical wear and tear. Lack of maintenance may also
contribute to premature breakdowns.
Condition Analysis: The common area domestic hot water system appears to be in fair
condition.
Current Repair/

Repair/Replacement: 2019, 2032
2013 89
Depreciation Report
Common Area Commercial Grade Hot Water Heater
2013 90
Depreciation Report
Sump Pump System

Physical Description: This component covers the simplex and duplex sump pump
systems at The Point.
Financial Analysis: No major expenditures or repairs were noted for the sump pump
system. This component includes the full replacement of the sump system.
Potential Deterioration: Sources of potential deterioration primarily include mechanical

wear and tear.
Condition Analysis: The sump pump systems were submerged during on-site review,
but appeared to be functioning as intended.
Unit Quantity and Cost Estimates: Unit Quantity: 1 System
Current Repair/

Repair/Replacement: 2022, 2038
2013 91
Depreciation Report
Working Sump Pit at The Point
2013 92
Depreciation Report
Sprinkler System
Physical Description: This component is a maintenance and repair allowance for the
sprinkler systems, and does not include a full replacement cost. The sprinkler systems at
The Point protect the four levels of underground parkade, as well as associated service
and storage rooms.
Financial Analysis: No major expenditures have been reported for the sprinkler systems.
The expenditure listed here is an allowance for periodic replacements of deficient
components. The expenditure listed in 2031 does not indicate repairs or replacements, but
is designed to ensure needed funds are ready when necessary. Major repairs and
replacements should be made with the professional input of a qualified fire system
professional.
Potential Deterioration: Sprinkler system deterioration typically comes in the form of

corrosion, or gradual failures of the mechanical components due to wear and tear.
Condition Analysis: The sprinkler system appears to be well maintained, and is currently
monitored by Mircom Engineered Systems. This system should continue to be regularly
monitored by a qualified fire systems professional.
Unit Quantity and Cost Estimates: Unit Quantity: 2 Systems
Current Repair/

2013 93
Depreciation Report
Sprinkler System Mechanicals at The Point
2013 94
Depreciation Report
Building - Electrical Systems
Electrical Distribution
Physical Description: This component is included as an ongoing maintenance and repair
allowance for the electrical system, and does not include a full replacement.
Financial Analysis: No major expenditures have been reported for the electrical system.
Potential Deterioration: Sources of potential deterioration include overloading, heat

build-up from power-outages or single-phasing, as well as simple mechanical failures
from loose connectors or wiring.
Condition Analysis: No major issues have been reported concerning the electrical system.
Regular maintenance should be conducted by a qualified electrical contractor.
Current Repair/

2013 95
Depreciation Report
Access Control and Security System

Physical Description: This component includes the full replacement of the enter phone
system, including door release, speaker, microphone, and directory, and system updates
for the security system, including security cameras, security computer monitoring
systems, and access control systems.
Financial Analysis: No major expenditures have been reported for the access control and
security system. This component is an allowance for ongoing repairs, replacements, and
updates
Potential Deterioration: The access control and security system is subject to general wear
and tear, physical damage, and electrical and mechanical breakdown over time.
Condition Analysis: The access control and security system appears to be performing
well, and shows no signs of damage or disrepair. Ensure regular maintenance is
conducted by a qualified professional in the field.
Current Repair/

2013 96
Depreciation Report
Access Control System Interface with Security Camera
2013 97
Depreciation Report
Life Safety System and Emergency Lighting

Physical Description: The life safety system, for the purposes of this component,
comprises the: emergency lighting (including battery units), portable fire extinguishers, 12
zone control panel, signal bells, magnetic door holders, pull stations, common area fire
and heat detectors, and system-linked fire and heat detectors. An allowance is included
for ongoing repairs and maintenance, as well as contingencies.
Financial Analysis: No major expenditures have been reported for the life safety systems.
The funds allotted here are designated as a repair and replacement allowance, and should
be utilized in cooperation with a qualified fire protection specialist.
Potential Deterioration: Sources of potential deterioration are varied, but include:

physical damage, mechanical or electrical failure, general wear and tear, dust build-up,
and expiry of time sensitive equipment. Future changes to fire codes may also cause
equipment to become outdated, requiring changes or updates, which may alter the scope
of this component.
Condition Analysis: The condition of the life safety systems appears to be quite good.
Ongoing maintenance and inspection of these systems is presently undertaken by Mircom
Engineered Systems, and professional monitoring should continue.
Current Repair/

2013 98
Depreciation Report
Common Area Baseboard Heating

Physical Description: This component includes the common area baseboard heaters,
which encompasses the units in the hallways, as well as those heating the common rooms.
Financial Analysis: No major expenditures have been reported for the common area
baseboard heaters. The provision here is for periodic repair and replacement of the
baseboard heaters, as required.
Potential Deterioration: Sources of potential deterioration come primarily in the form of

physical damage, as well as general wear and tear.
Condition Analysis: The common area baseboard heaters appear to be in good overall
condition.
Current Repair/

2013 99
Depreciation Report
Common Area Baseboard

Heater at The Point
2013 100
Depreciation Report
Site Improvements
Paving and Walkways

Physical Description: This component covers the concrete surfaces at The Point,
including walkways and drive aisles (roundabout), but excluding the underground
parkade.
Financial Analysis: No major expenditures have been reported for the paving and
walkways. The value included here is for crack repair over time, as well as the application
of a surface treatment (slurry seal) to prolong the life of the driving surfaces (excluding
walkways). Monitor the performance of the paving and walkways regularly, and consider
an adjustment to the figure listed here should degenerating conditions indicate a full
replacement may be necessary.
Potential Deterioration: The paved driving surfaces and walkways are susceptible to de-
icing salt corrosion, impact damage, and freeze-thaw cycles. Typically, however,
deterioration comes from shifting of the base under the paved surface, which may be
caused by large tree roots, seismic activity, or erosion.
Condition Analysis: The paved surfaces appear to be in good overall condition, with no
major issues apparent.
Current Repair/

2013 101
Depreciation Report
Concrete Walkway and Seating at The Point
2013 102
Depreciation Report
Site Services (Repair)

Physical Description: This component covers the underground services that branch from
the municipal service lines to the building. The electrical service, water supply, sanitary
sewer system, and storm drainage system are all included here. Replacements are not
included, but an allowance for repairs and unexpected expenditures is included, due to
the variable nature of the life of these components.
Financial Analysis: No major expenditures have been reported for the site services. This
component is an allowance designed to allow for potential failures, and should remain in
the contingency reserve fund past its expected life span if unused.
Potential Deterioration: Sources of potential deterioration include shifting and settling of

the surrounding soil, water penetration, and premature breakdown due to poor water
quality or foreign substances introduced to the piping.
Condition Analysis: No problems have been reported to date.
Current Repair/

2013 103
Depreciation Report
Irrigation System
Physical Description: This component includes the exterior irrigation system for the
landscaped grounds, and assumes a full replacement across the landscaped areas.
Financial Analysis: No major expenditures have been reported for the irrigation system
at The Point. This component designates a full replacement, which does not typically
include removal of the old irrigation system, but simply the installation of a new system.
Removal of the existing system, if desired by the strata council, will need to be funded
separately from this report, or requested during an update (once every three years, by
legislation).

damage, but can also include shifting soil, root damage, and general wear and tear.
Condition Analysis: The irrigation system appears to be in good condition, and no major
issues have been reported.
Current Repair/

2013 104
Depreciation Report
Exterior Lighting
Physical Description: This component includes the exterior lighting at The Point,
including light posts and wall-mounted exterior lights.
Financial Analysis: The figure listed here is for gradual replacements with failure or
damage, and does not include a full replacement or aesthetic replacements.

moisture damage, and electrical failure.
Condition Analysis: The exterior lighting appears to be in good condition overall.
Current Repair/

2013 105
Depreciation Report
Exterior Light Post and Wall-Mounted Fixtures
2013 106
Depreciation Report
Reserve Updates
Physical Description: This component covers updates to the Depreciation Report every 3
years.
Financial Analysis: The funds included for this component cover updates to the
Depreciation Report every 3 years, as per legislation. If a new Depreciation Report is
required, it will need to be budgeted for separately. The estimates included here do not
constitute a quote from Maintenance Operations Program, as pricing may fluctuate over
time.
Potential Deterioration: Not applicable.
Condition Analysis: Not applicable.
Current Repair/

Deficiency Analysis: Not applicable.
2013 107
Depreciation Report
Reserve Fund Component Estimates
REIC Benchmark Analysis

The REIC Benchmark Analysis shows the physical aspects of the various reserve
components, including the life cycle analysis and the cost estimates on a single
spreadsheet for convenient examination and easy reference. The cost estimates are
pursuant to prudent reserve fund practices, which provide for inflationary cost increases
over time and interest income from reserve fund investments.
The reserve fund estimates have been prepared without regard to the current financial
position of the corporation or the current reserve fund contributions by unit owners, and
as such, they represent the optimum reserve fund operation, which assumes that the
corporation has continuously assessed adequate reserve funding from the beginning.
This Benchmark Analysis is the foundation of the REIC Reserve Fund Planning System, as
it provides the basis for comparison to the actual reserve fund operation. The REIC
Benchmark Analysis provides the standard for reserve fund planning and property
maintenance, and as such, it is a valuable management and maintenance resource
document.
The foregoing program represents the practical application of reserve fund budget
planning and management. When applied, as outlined, the Depreciation Report will cover
anticipated reserve fund expenditures and any contingencies.
Schedule A Benchmark Analysis

The following Schedule of Reserve Fund Component Estimates shows detailed
computations for the various reserve items using the projection factors explained in
Section 2.4 of this Report:
Long-term inflation rate: 2.5%
Long-term interest rate: 1.25%
Due to rounding automatically executed by our accounting software, there may be minor
discrepancies in the data, which are not deemed statistically significant.
2013 108
Depreciation Report
Schedule A - Benchmark Analysis

RESERVE COMPONENTS Year of Reserve EXPECTED OBSERVED REMAINING Unit Unit Unit CURRENT FUTURE CURRENT FUTURE FUTURE ANNUAL RESERVE FUND
BENCHMARK ANALYSIS - BCS 2429 Acquisition Expenditures LIFESPAN CONDITION LIFE SPAN Quantity Measure Cost REPLACEMENT REPLACEMENT RESERVE FUND RESERVE FUND RESERVE FUND RESERVE FUND ASSESSMENT
Years Years Years COST COSTS REQUIREMENTS ACCUMULATION REQUIREMENTS ASSESSMENT ALLOCATION
Building - Structural & Architectural
1. Substructure and Parkade 2007 36 6 30 1 Allow ance 419,189.00 419,189 879,277 69,865 101,417 777,860 21,530 5.26%
2. Superstructure 2007 36 6 30 1 Allow ance 61,274.00 61,274 128,526 10,212 14,824 113,702 3,147 0.77%
3. Garage Doors 2007 20 6 14 4 Doors 18,644.00 74,576 105,374 22,373 26,623 78,751 5,182 1.27%
4. Exterior Walls (Window Wall) 2007 36 6 30 31,113 Square Feet 46.66 1,451,764 3,045,172 241,961 351,234 2,693,939 74,564 18.20%
5. Exterior Walls (Masonry Repair) 2007 19 6 13 2,423 Square Feet 21.34 51,695 71,262 16,325 19,186 52,076 3,714 0.91%
6. Exterior Walls (Storefront Wall and Door System) 2007 36 6 30 6,458 Square Feet 84.92 548,423 1,150,354 91,404 132,683 1,017,671 28,168 6.88%
7. Balcony Waterproofing (Including Eyebrow s) 2007 17 2 15 23,468 Square Feet 11.99 281,381 407,524 33,104 39,885 367,639 22,436 5.48%
8. Balcony Railings 2007 25 2 23 4,779 Linear Feet 136.21 650,948 1,148,669 52,076 69,298 1,079,371 40,797 9.96%
9. Exterior Aw nings 2007 36 6 30 2,562 Square Feet 14.37 36,824 77,240 6,137 8,909 68,331 1,891 0.46%
10. Window s 2007 24 6 18 283 Window s 1,098.90 310,989 485,036 77,747 97,229 387,808 19,346 4.72%
11. Balcony Doors (Sw ing & Sliding) 2007 21 6 15 232 Doors 1,623.16 376,573 545,390 107,592 129,630 415,760 25,372 6.19%
12. Security Doors 2007 21 6 15 47 Doors 2,465.74 115,890 167,843 33,111 39,893 127,950 7,808 1.91%
13. Caulking 2007 11 5 6 1 Allow ance 114,290.00 114,290 132,541 51,950 55,970 76,571 12,369 3.02%
14. Weatherstripping 2007 11 10 1 1 Allow ance 78,247.00 78,247 80,203 71,134 72,023 8,180 8,180 2.00%
15. Exterior Finishes 2007 12 6 6 69,789 Square Feet 2.88 201,146 233,268 100,573 108,356 124,912 20,177 4.93%
16. Flat Roofing, Roof Decks, and Accessories 2007 22 6 16 16,360 Square Feet 13.51 221,024 328,111 60,279 73,534 254,577 14,472 3.53%
Building - Finishes and Decoration

17. Interior Decorating & Painting 2007 20 6 14 59,872 Square Feet 1.53 91,766 129,663 27,530 32,759 96,903 6,377 1.56%
18. Carpeting and Tile 2007 22 3 19 14,016 Square Feet 13.37 187,380 299,555 25,552 32,354 267,201 12,547 3.06%
19. Suite Doors & Interior Fire Doors 2007 36 6 30 1 Allow ance 25,650.00 25,650 53,803 4,275 6,206 47,597 1,317 0.32%
20. Lobby Renovation 2007 18 5 13 1 Allow ance 4,704.00 4,704 6,485 1,307 1,536 4,948 353 0.09%
21. Elevator Cab Renovation 2007 20 6 14 2 Cabs 7,935.00 15,870 22,424 4,761 5,665 16,759 1,103 0.27%
22. Exercise Room 2007 17 3 14 1 Allow ance 3,920.00 3,920 5,539 692 823 4,715 310 0.08%
23. Media/Games Room Renovation 2007 36 6 30 1 Allow ance 4,144.00 4,144 8,692 691 1,003 7,689 213 0.05%
24. Pool Area Renovation 2012 16 1 15 1 Allow ance 44,800.00 44,800 64,884 2,800 3,374 61,510 3,754 0.92%
Building - Mechanical System s

25. Elevator Modernization (Traction) 2007 25 6 19 2 Elevators 207,200.00 414,400 662,481 99,456 125,932 536,548 25,194 6.15%
26. Plumbing System 2007 26 6 20 1 Allow ance 409,248.00 409,248 670,601 94,442 121,078 549,522 24,355 5.95%
27. HVAC Systems 2007 19 6 13 1 Allow ance 54,461.00 54,461 75,075 17,198 20,212 54,863 3,913 0.96%
28. Emergency Generator 2007 36 6 30 1 Unit 30,413.00 30,413 63,793 5,069 7,358 56,435 1,562 0.38%
29. Domestic Hot Water 2007 13 6 7 1 System 6,850.00 6,850 8,142 3,162 3,449 4,693 646 0.16%
30. Sump Pump System 2007 16 6 10 1 System 3,229.00 3,229 4,133 1,211 1,371 2,762 261 0.06%
31. Sprinkler System 2007 25 6 19 2 Systems 27,449.00 54,898 87,763 13,176 16,684 71,079 3,338 0.81%
Building - Electrical System s

32. Electrical Distribution 2007 24 6 18 1 System 77,259.00 77,259 120,498 19,315 24,155 96,343 4,806 1.17%
33. Access Control & Security System 2007 24 6 18 1 System 38,080.00 38,080 59,392 9,520 11,905 47,486 2,369 0.58%
34. Life Safety System & Emergency Lighting 2007 22 6 16 1 Allow ance 61,967.00 61,967 91,990 16,900 20,616 71,374 4,057 0.99%
35. Common Area Baseboard Heating 2007 27 6 21 1 Allow ance 18,479.00 18,479 31,037 4,106 5,330 25,707 1,078 0.26%
Site Im provem ents

36. Paving and Walkw ays 2007 30 6 24 1,145 Square Feet 9.10 10,420 18,846 2,084 2,808 16,038 577 0.14%
37. Site Services (Repair) 2007 36 6 30 1 Allow ance 13,400.00 13,400 28,107 2,233 3,241 24,866 688 0.17%
38. Irrigation System 2007 25 6 19 1,550 Square Feet 1.42 2,201 3,519 528 669 2,850 134 0.03%
39. Exterior Lighting 2007 34 6 28 1 Allow ance 4,511.00 4,511 9,006 796 1,127 7,879 237 0.06%
40. Reserve Updates 2007 3 0 3 1 Update 3,500.00 3,500 3,769 - 0 3,769 1,241 0.30%
TOTAL RESERVES - 6,575,780 11,514,987 1,402,647 1,790,350 9,724,638 409,582 100.00%
Schedule A Benchmark Analysis
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Summary of Reserve Fund Estimates

The Reserve Fund position and estimated requirements of BCS 2429 The Point, are as
follows:
Current Replacement Reserves or Costs

which are provisions for all major repairs
and replacements at current prices $ 6,575,780
Future Replacement Reserves or Costs

which are provisions for all major repair
and replacement costs in the future at the
end of the expected life span $ 11,514,987
Current Reserve Fund Requirements

which are reserve fund estimates based on
the notion of effective age, and should
have been contributed by unit owners $ 1,402,647
Future Reserve Fund Accumulations

which are the current reserve fund
requirements together with interest
compounded over the remaining life span $ 1,790,350
Future Reserve Fund Requirements

which are to be funded by unit owners'
payments to the reserve fund plus any
interest earned $ 9,724,638
Annual Reserve Fund Assessments

which are the annual reserve fund payments
to be made by unit owners $ 409,582
In accordance with these estimates, the corporation should have $ 1,402,647 in its reserve
fund at the end of its current fiscal year, and the assessed annual payments or
contributions to the reserve fund by unit owners should be $ 409,582 based on a fully
funded study using the findings of this benchmark analysis.
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Analysis of Reserve Fund Operations

Reviewing and analyzing the reserve fund operation of BCS 2429 The Point, we have
examined the budget for the Corporation and its operations.
The property management company, Baywest Management Corp., prepared the financial
statements, with the June 4th/2012 statement being the one used for the conclusions listed
here.
Corporations Financial Statements

Information available indicates that there will be a contribution from common expenses to
a contingency reserve fund of $60,000 in this fiscal year.
Exceptions
To the best of our knowledge, no limited common property or common property areas
have been designated for maintenance or repair by the unit owner rather than the Strata
Corporation. Should changes be made regarding maintenance or repair responsibilities,
the professional responsible for updating this report should be informed.
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Schedule B - Statement of Historical Reserve Fund Operations

*No historical reserve fund (depreciation report) records were available at the time of production.
**The Statement of Historical Reserve Fund Operations presented here is based on available data from Strata and Property Management sources. Maintenance Operations Program assumes no responsibility for the data contained herein, and reserves the right to
utilize this data at their discretion, based upon a variety of factors including: perceived accuracy, completeness of information, and how recently the available data was updated. Information pertaining to Historical Reserve Fund Operations will not be considered
unless pertinent documentation is available to verify said information.
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Benchmark Deficiency Analysis

The Benchmark Deficiency Analysis shows the difference between the actual reserve fund
balance and the current reserve fund requirement, as calculated in the Benchmark
Analysis.
The current reserve fund requirement is an estimate of a fully funded reserve fund, based
on the Benchmark calculation.
The Benchmark Deficiency Analysis is utilized by Maintenance Operations Program as a

guide for property managers and the strata council to ensure that the reserve fund is
neither under-funded nor over-funded.
The reserve fund of BCS 2429 The Point, is showing a moderate shortfall at the end of
the 2013 fiscal year, as shown below:
Opening Balance $ 224,587
Current Budgeted Reserve Fund

Contribution for the Year $ 60,000
Tax-Free Interest Income

To be Earned on the Reserve Fund $ 2,807
Less: Estimated Reserve Fund

Expenditures for Fiscal Year 2012 $ (80,203)
Projected Reserve Fund Balance

As of December 31st, 2013 $ 207,191
Estimated Reserve Fund

Requirements after Expenditures in 2013 $ 1,322,444
Estimated Reserve Fund Deficiency $ (1,115,253)
The deficiency should be eliminated over time, where possible.
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Adequacy of Depreciation Report

When referred to in a Depreciation report, adequacy refers to the ability of the strata to
pay for all major replacements and repairs without ever showing a Contingency Reserve
Fund balance of zero or less. Adequacy should be the goal of all Strata Corporations,
regardless of whether a Depreciation Report is used to achieve this goal.
To prevent a negative balance, Depreciation Report planners must leave a substantial

enough running balance to allow for any unexpected expenditures. Maintenance
Operations Program uses an industry standard value of $500 per door as a minimum
running balance. The Depreciation Report may dip below this minimum funding level,
especially in the first few years after implementing the report, but should reach a
sustainable level as rapidly as possible. This sustainable level should be above the
minimum running balance value in all but a few years, and may reach much higher levels
if the strata is attempting to reach full funding. The Strata Corporation should also be
aware that above and beyond the amounts set out in the Depreciation Report, there may
be other funds required to be accumulated within the Contingency Reserve Fund, such as
minimum balances required for insurance policies. This Depreciation Report is geared
specifically to capital expenditures, and does not include such accumulations unless
specified herein.
Adequacy should not be confused with full-funding, which refers to a sustainable long-
term plan which spreads the cost of replacements evenly over the owners for the
remaining life of the building. Adequacy should also not be confused with the Reserve
Fund Surplus line at the bottom of the 30 Year Cash Flow Projection and Deficiency
Analysis. This line is a measure of success against the Benchmark Analysis, which defines
the stratas requirements under a full-funding model. Being deficient on the reserve Fund
Surplus line does not mean a strata is inadequate, simply that they have not yet reached
full funding.
The adequacy of a Depreciation Report is not contingent upon full-funding, and is

reached simply by maintaining sufficient cash resources to fund all potential common
area repairs and replacements, including unforeseen events. In the case of unforeseen
events, monies from the Contingency Reserve Fund may be used, but adjustments should
be made to replace the funds as soon as possible.
In our opinion, the current reserve fund and proposed contributions for BCS 2429 The
Point, require adherence to the recommendations listed in this report to remain adequate
for future reserve fund expenditures.
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Reserve Fund Management 30 Year Projections
Schedule C 30 Year Projected Cash Flow and Deficiency Analysis

The Reserve Fund - Projected Cash Flow and Deficiency Analysis presents a 30 year
reserve fund projection showing cash positions, cash flows, and cash expenditures in a
form and detail which conforms to a financial statement presentation of reserve fund
operations.
Opening Cash Balance

This is the reserve fund position at the beginning of each and every fiscal year showing
the cash resources available, which consist of (1) bank deposits, (2) qualified investments,
and (3) accrued interest earned.
Cash Flows
These are the regular reserve fund contributions, special assessments, and interest income
based on 1.25% of the opening balance.
Opening Cash Funds

These represent the total cash resources available in any fiscal year and include the
current year's cash flow.
Cash Expenditures
These are annual expenditures listed in the categories established by the Depreciation
Report. Records or ledger accounts of these expenditure categories should be kept
showing reserve fund allocations and charges in a chronological order for control and
reference.
Closing Cash Fund

This is the reserve fund position at the end of each and every fiscal year, which is carried
forward to the next year.
Deficiency Analysis
The Reserve Deficiency has been projected by formula, taking into account the inflation
factor, interest rates, and reserve fund expenditures. Therefore, any reserve fund
expenditures will not affect the reserve fund deficiency because such expenditures will
also affect the reserve requirements.
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Schedule C - 30 Year Reserve Fund Cash Flow Projection and Deficiency Analysis
30 Year Projection 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 ending Decem ber 31 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042
OPENING BALANCE 224,587 207,191 277,881 354,879 447,043 552,203 302,251 426,157 577,071 745,155 937,885 1,162,476 1,308,671 1,446,429 1,512,751 694,209 683,735 973,453 518,030 57,429 41,705 760,522 1,627,193 1,217,954 2,065,166 2,948,146 3,836,027 4,734,325 5,413,484 6,338,318
Reserve Fund Contributions 2.50% 60,000 68,100 77,294 87,728 99,571 113,014 128,270 145,587 165,241 187,549 212,868 241,605 274,222 311,241 353,259 400,949 455,077 516,513 586,242 665,384 755,211 857,165 857,165 857,165 857,165 857,165 857,165 857,165 857,165 857,165
Special Assessment
Reserve Fund Interest Income 1.25% 2,807 2,590 3,474 4,436 5,588 6,903 3,778 5,327 7,213 9,314 11,724 14,531 16,358 18,080 18,909 8,678 8,547 12,168 6,475 718 521 9,507 20,340 15,224 25,815 36,852 47,950 59,179 67,669 79,229
Total Cash Resources 287,394 277,881 358,648 447,043 552,203 672,119 434,299 577,071 749,526 942,018 1,162,476 1,418,612 1,599,251 1,775,751 1,884,919 1,103,836 1,147,359 1,502,134 1,110,747 723,531 797,438 1,627,193 2,504,698 2,090,343 2,948,146 3,842,163 4,741,142 5,650,669 6,338,318 7,274,712
RESERVE FUND EXPENDITURES
1. Substructure and Parkade 69,865 879,277

2. Superstructure 10,212 128,526
3. Garage Doors 22,373 105,374
4. Exterior Walls (Window Wall) 241,961 3,045,172
5. Exterior Walls (Masonry Repair) 16,325 71,262
6. Exterior Walls (Storefront Wall and Door System) 91,404 1,150,354
7. Balcony Waterproofing (Including Eyebrow s) 33,104 407,524
8. Balcony Railings 52,076 1,148,669
9. Exterior Aw nings 6,137 77,240
10. Window s 77,747 485,036
11. Balcony Doors (Sw ing and Sliding) 107,592 545,390
12. Security Doors 33,111 167,843
13. Caulking 51,950 132,541 173,906 228,179
14. Weatherstripping 71,134 80,203 105,234 138,075
15. Exterior Finishes 100,573 233,268 313,719 421,917
16. Flat Roofing, Roof Decks, and Accessories 60,279 328,111
17. Interior Decorating & Painting 27,530 129,663
18. Carpeting and Tile 25,552 299,555
19. Suite Doors & Interior Fire Doors 4,275 53,803
20. Lobby Renovation 1,307 6,485
21. Elevator Cab Renovation 4,761 22,424
22. Exercise Room 692 5,539
23. Media/Games Room Renovation 691 8,692
24. Pool Area Renovation 2,800 64,884
25. Elevator Modernization (Traction) 99,456 662,481
26. Plumbing System 94,442 670,601
27. HVAC Systems 17,198 75,075
28. Emergency Generator 5,069 63,793
29. Domestic Hot Water 3,162 8,142 11,225
30. Sump Pump System 1,211 4,133 6,136
31. Sprinkler System 13,176 87,763
32. Electrical Distribution 19,315 120,498
33. Access Control & Security System 9,520 59,392
34. Life Safety System & Emergency Lighting 16,900 91,990
35. Common Area Baseboard Heating 4,106 31,037
36. Paving and Walkw ays 2,084 18,846
37. Site Services (Repair) 2,233 28,107
38. Irrigation System 528 3,519
39. Exterior Lighting 796 9,006
40. Reserve Updates - 3,769 4,059 4,371 4,707 5,069 5,459 5,879 6,331 6,817 7,341
TOTAL EXPENDITURES 80,203 0 3,769 0 0 369,868 8,142 0 4,371 4,133 0 109,941 152,822 263,000 1,190,710 420,101 173,906 984,104 1,053,318 681,826 36,916 0 1,286,744 25,177 0 6,136 6,817 237,185 0 5,864,222
CLOSING BALANCE 207,191 277,881 354,879 447,043 552,203 302,251 426,157 577,071 745,155 937,885 1,162,476 1,308,671 1,446,429 1,512,751 694,209 683,735 973,453 518,030 57,429 41,705 760,522 1,627,193 1,217,954 2,065,166 2,948,146 3,836,027 4,734,325 5,413,484 6,338,318 1,410,490
DEFICIENCY ANALYSIS
Reserve Requirem ents 1,402,647 1,322,444 1,748,557 2,176,227 2,613,011 3,055,256 3,133,161 3,573,765 4,028,019 4,483,580 4,945,074 5,416,470 5,783,817 6,112,874 6,335,867 5,633,938 5,693,843 6,000,692 5,501,178 4,926,207 4,715,541 5,147,151 5,621,072 4,814,174 5,258,756 5,734,072 6,209,194 6,689,574 6,945,591 7,441,993 2,080,378
Reserve Fund Surplus -1,115,253 -1,470,675 -1,821,347 -2,165,968 -2,503,053 -2,830,910 -3,147,608 -3,450,948 -3,738,426 -4,007,189 -4,253,993 -4,475,145 -4,666,445 -4,823,116 -4,939,728 -5,010,108 -5,027,239 -4,983,149 -4,868,778 -4,673,836 -4,386,629 -3,993,879 -3,596,220 -3,193,590 -2,785,927 -2,373,168 -1,955,249 -1,532,107 -1,103,675 -669,888
Schedule C - 30 Year Reserve Fund Cash Flow Projection and Deficiency Analysis
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Future Reserve Fund Management

This Depreciation Report has provided a set of guidelines to help the Strata Council
determine funding levels for their Contingency Reserve Fund. In no way should these
recommendations be considered the final word on the timing of major replacements and
repairs.
The Strata Council must make informed decisions regarding the state of the major
components at their building in real time. If it is deemed that a major repair or
replacement is needed immediately, it should, and can, be undertaken from funds
earmarked by the Depreciation Report for a different task. These funds can be returned to
the Contingency Reserve Fund at a later date, or the Depreciation Report can be modified
during the update, which takes place at least once every 3 years, as legislated. A needed
repair or replacement should never be postponed because the Depreciation Report does
not list the expenditure for several more years. These funds can also be used for
unexpected common area repairs or replacements, regardless of whether these expenses
are included within the Depreciation Report.
The proposed reserve fund expenditures in the 30 Year Cash Flow Projection are mere
guides in terms of timing, based on the remaining life span analysis. Reserve fund
expenditures should readily be varied to conform to actual management and maintenance
plans, and therefore, they should not be dogmatically interpreted.
The Strata Council is also not bound by the legislation to fund the Depreciation Report to
the full extent defined by the planner. Minimum funding levels are, however, defined in
the legislation (listed below).
Contributions to contingency reserve fund
6.1 For the purposes of section 93 of the Act, the amount of the annual contribution to the contingency reserve fund for a fiscal year,
other than the fiscal year following the first annual general meeting, must be determined as follows:
(a) if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general
meeting is less than 25% of the total amount budgeted for the contribution to the operating fund for the fiscal year that
has just ended, the annual contribution to the contingency reserve fund for the current fiscal year must be at least the
lesser of
(i) 10% of the total amount budgeted for the contribution to the operating fund for the current fiscal year,
and
(ii) the amount required to bring the contingency reserve fund to at least 25% of the total amount budgeted
for the contribution to the operating fund for the current fiscal year;
(b) if the amount of money in the contingency reserve fund at the end of any fiscal year after the first annual general
meeting is equal to or greater than 25% of the total amount budgeted for the contribution to the operating fund for the
fiscal year that has just ended, additional contributions to the contingency reserve fund may be made as part of the
annual budget approval process after consideration of the depreciation report, if any, obtained under section 94 of the
Act.
[en. B.C. Reg. 238/2011, Sch. 1, s. 2.]
It should be noted, however, that the Depreciation Report is now required to be included
with the Form B, as is the Strata Corporations current budget. As such, potential
purchasers will know the extent to which the strata has chosen to fund the Depreciation
Report, which may reflect in the sale of the property. Additionally, failure to fund the
Depreciation Report may open the Strata Council to legal liability.
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Recommendations
Based on present financial conditions and the buildings age, the contingency reserve
fund for BCS 2429 The Point, is moderately deficient against the benchmark analysis.
Any deficiencies should be eliminated over time in order to meet adequacy, and ensure
proper funds are in place for major repairs and replacements.
Maintenance Operations Program recommendations, set out below and detailed in this
report, will assist the corporation in achieving and maintaining an adequate reserve fund.
In our opinion, if adhered to, the current reserve fund balance, recommended annual
contributions, and earned investment income will adequately fund immediate and future
reserve fund expenditures.
1. The corporation should prepare and implement a long-term reserve fund

strategy.
2. Major repairs and replacements should continue to be recorded in, and funded
from, a contingency reserve fund account.
3. The contingency reserve fund contribution of $ 60,000 per annum in 2013 should
be increased to $ 68,100 per annum in 2014 and thereafter by the amounts
detailed in the cash flow table, each subsequent year.
4. The reserve fund should be fully invested in guaranteed securities, yielding at

least 1.25% per annum.
5. The corporation should make such expenditures as necessary to maintain the

property in optimum condition. This includes making repairs and replacements
outside of the life span estimates included in this report.
6. The reserve fund should be reviewed by the strata council every year to ensure
that the underlying assumptions are still valid and that the estimates remain
current. Changes should be catalogued and provided to the Depreciation Report
Planner prior to the legislated 3-year update.
7. The corporation should update the Depreciation Report every three (3) years in
accordance with the provisions of Section 94 of the British Columbia Strata
Property Act, amended 2009, Regulation 43/2000.
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Maintenance Guidelines and Forms

Your Stratas Maintenance Plan
Maintenance Inspection Sheet
Individual Owner Maintenance Review Guidelines
Owner Survey
Using the Maintenance Schedule
Maintenance Schedule
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Your Stratas Maintenance Plan
Maintenance Program Scheduling

The components of your building are built and designed to last. Whether it be vinyl
siding or aluminum railings, each part of your unit is constructed with quality in mind.
That said, even the most rugged products require occasional checks to ensure they are
functioning properly. You can help your building effectively resist aging by examining its
parts on a regular basis; monthly, quarterly, bi-annually, and annually.
A complete review schedule should include each of the following:
Annual Professional Review: Whether by an engineering firm or other qualified

third party.
Strata Maintenance Review: A more informal review process conducted by a

property manager, maintenance person, or qualified strata representative. This
type of review should include common areas which must be inspected more
frequently than annually, but are not accessible to unit owners. Roof drains and
dryer vents are prime candidates for this type of review. The findings of these
reviews can be included on the enclosed form entitled Maintenance Inspection Sheet.
Owner Maintenance Review: Yet more informal, an owners review should

include common areas, as well as the interior and exterior of their own unit. Vent
(where accessible) and balcony drain cleaning should be included within the scope
of an owners review. These can be recorded on the Owner Survey form, which
should be distributed and collected by the designated Maintenance Coordinator.
Conditions:
The geographic location of your building will influence the frequency and type of typical
inspections. Driving rain, wind exposure, pollution, humidity, heat, and many others can
all have an impact on building envelope components. Owners should become familiar
with local conditions, and tailor a maintenance inspection and repair program to their
specific location. Seaside properties are particularly at risk, and should be treated
accordingly.
Maintenance Cleaning:
When coupled with a comprehensive system of checks, inspections, and repairs, regular
cleaning can be the hidden asset that will allow your building to most efficiently retain its
value. Clean components are easier to examine, and the cleaning itself will keep
environmental factors (dirt, pollutants, and trees) from damaging the buildings exterior.
Cleaning will also make the property look better, and may be a condition of some product
warranties.
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Performing Maintenance Review and Upkeep:

Performing detailed inspections, and repairing any deficiencies, can be difficult and time
consuming. Some tasks may be possible for strata members or other qualified employees,
but some maintenance will require qualified contractors or professionals. Each individual
involved in the upkeep process, however, has a valuable part to play in keeping a
property beautiful. If you are unable to fix, or even define a problem, make sure you
inform someone who can, to ensure that your concerns are addressed.
The Maintenance Coordinator

Electing a president, treasurer, and secretary are vital to a stratas formation, but an often
overlooked role may be the most important.
A Maintenance Coordinator is the individual charged with arranging, tracking, and

recording maintenance and repairs for the buildings exterior envelope and common
areas. Some of the related tasks include: organizing inspections, supervising and
arranging repairs, and general management of the stratas ongoing maintenance plan.
This individual could be a property manager, council member, appropriately skilled

owner, or combination thereof, who will report regularly to the strata council with their
findings.
This person will also distribute photocopies of the necessary forms found in the following
pages, namely:
The Individual Owner Maintenance Review Guidelines and Owner Survey,

which should be distributed annually.
The Maintenance & Inspection Guidelines sheet, which should be distributed to

all individuals who will be performing a Strata Maintenance Review at any time
during the year.
All forms should be collected and logged by the Maintenance Coordinator.
The Maintenance Coordinator May Be The Most

Important Individual In Your Strata
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Maintenance Inspection Sheet
Report By
Date
Report #
Component Notes
Roofing
Flashing
Sealants
Cladding
Paint/Stains/Finishes
Windows
Doors
Common Area
Components
Grounds/Landscaping,
Fences/Gates
Balconies and Decks
To be completed by a qualified maintenance representative. Mechanical, Electrical, and Safety Systems should be
regularly examined by a firm specializing in these services.
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Individual Owner Maintenance Review Guidelines

The owner oriented inspections listed below should not replace professional inspections,
nor should this form be considered a substitute for professional review guidelines. The
review frequencies stated are a minimum, and should be undertaken more often if
specific circumstances warrant.
Area Under Review Look For Frequency
Briefly check for physical damage or drainage back-up at balconies or

Drainage patios. Ensure drains are unblocked, keeping an eye out for ponding Monthly
or any standing water.
Check for bent, cracked, rusted, or otherwise damaged flashing. Semi-

Flashings
Flashing should direct moisture away from the building. Annually
Check for damage or obvious failure while cleaning windows and Semi-
Sealants
decks. Look for cracking, bulging, de-bonding, etc. Annually
Examine cladding for cracks or damage, paying particular attention Semi-

Cladding
to staining or efflorescence indicating moisture behind the cladding. Annually
Observe the condition of exterior paints, looking for blistering, Semi-

Paints and Stains
peeling, fading, or staining. Annually
Examine the condition of hardware and weep holes during

recommended cleanings. Remove dirt or debris from weep holes, and Semi-
Windows
clear window tracks. Check the sealants around window perimeters, Annually
and look for condensation or fogging between sealed window panes.
Check doors for hardware operation and seal integrity. Ineffective

Doors Annually
hardware or weatherstripping should be repaired or replaced.
Check balcony membranes for blistering, cracks, or any other

Balconies Quarterly
physical damage.
Exterior vents should be dusted/vacuumed monthly, and thoroughly

Vents Monthly
cleaned annually. Ensure vent covers are not dirty or blocked.
Check for organic growth too close to the building (keep at least 18
Landscaping of free space between the building and exterior plants). Clear organic Annually
debris from exterior as it appears.
Look for moisture or staining on the interior drywall, and be sure to

Interior Walls Monthly
note the weather conditions when this moisture appears.
Upon completion of the above reviews, owners should be sure to report any damage or failures to the Maintenance
Coordinator. Maintenance work should be performed through the strata, and should not be undertaken
independently, as existing warranties may be affected by improper modifications or repairs.
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Owner Survey
Date
Problem Locality
Unit #
Problem: Action Taken:
Report By: Strata Rep. Signature:
Reviewed By: Owner Signature:
Date of Review: Date of Completion:
To be distributed to each owner by the Maintenance Coordinator
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How to Use Your Maintenance Schedule

Any major maintenance or repair task which takes place less often than annually is
included within the Depreciation Reports scope (Strata Property Act B.C. Reg. 43/2000,
6.2(3)(b)). That being said, there are many substantial maintenance and repair tasks which
take place annually or more often. The Maintenance Schedule table that follows is
designed to allow the strata to effectively manage the maintenance and repair
expenditures which do not fall within the scope of the Depreciation Report.
Simply record annual costs for maintenance and repair schedules, and forecast future
requirements over the next several years. A new schedule will be provided when the
Depreciation Report is updated (once every three years), to allow for continued tracking.
Maintenance Operations Program has included a recommended frequency, but the strata
should record the actual performed frequency (planned frequency), as well as the cost, to
help create a budget for future years. Tasks that are not applicable can be flagged with an
N/A, or simply left blank. For maintenance or repairs that we have not included, blank
lines are available at the end of the table.
2013 125
Depreciation Report
Maintenance Schedule
Item Recommended Planned Unit Total Year 1 Year 2 Year 3
Frequency Frequency Cost Cost
Overview Inspections
Professional Condition and Maintenance Inspection Annually
Building Envelope Maintenance Walk-about Between
Professional
Inspections
Parking Garage / Storage Areas

Locks and Gates Inspection Annually
Overhead Door Maintenance Twice per Year
Parking Deck and Stairwell Clearing Monthly
Drain Cleaning Twice per Year
Wash the parking deck surface Twice per Year
(Spring and
Fall)
Wall and Floor Sealing Annually
Balconies/Decks
Balcony and Deck Surface and Drain Cleaning Twice per Year
Balcony and Deck Area Stain Removal Annually
Vegetation/Moss Removal Annually
Railing, walls, membrane, vents, soffit sealing Annually
Exterior Closure
Cladding Cleaning Annually
Vegetation Removal Annually
Window and Exterior Door Maintenance (weather Twice per Year
stripping, adjust rollers on sliding doors, adjust
windows and screen to ensure proper clearances,
locks, hinges, stops)
Exterior Window Washing Twice per Year
2013 126
Depreciation Report
Exterior Door Cleaning Monthly
Door and Window Frame Sealing Annually
Coating Maintenance on Fences Annually
Roofing
Gutter and Drain Cleaning Monthly
Skylight and other roof sealing Annually
Skylight Cleaning Annually
Chimney Inspection and Cleaning Annually, in the
spring
Interior Common Areas

Carpet Cleaning Twice per Year
Light Fixture Relamping Monthly
Photocell Timer Programming Annually,
before Winter
Mailbox and Intercom Inspection Annually
Common Area Amenity Inspection and Maintenance Twice per Year
(meeting rooms, fitness rooms, pools, etc.)
Building Systems / Mechanical

Sump Pump Maintenance and Inspection Annually
Dewatering Equipment Maintenance and Inspection Annually
HVAC Inspection and Maintenance Annually
Exhaust Fans Inspection Annually
Heat Pump Maintenance Twice Per Year
Furnace Filter Replacement Every 1-3
months
Gas Water Heater Maintenance Twice Per Year
CO2 Detector and Carbon Monoxide Leak Testing Twice per Year,
Fall and Winter
2013 127
Depreciation Report
Fire Safety System Winterization Annually
Fire Safety System Inspection and Testing Annually
Fire Extinguisher Replacement Annually
Emergency Generators Inspection and Testing Annually
Shut-off Valve Testing and Marking of Locations Annually before
winter
Electrical System Inspection and Testing Annually
Elevator Maintenance Service
Contract
Dryer Vent Inspection Annually
Gas Line Inspection (includes all gas appliances) Annually
Mechanical Room and Meter Maintenance Annually
Grounds
Light Fixture Relamping Monthly
Photocell Timer Programming Annually,
before Winter
Mailbox and Intercom Inspection Annually
Drain Clean-out Annually
Foundation Drainage System Clean-out Annually
Podium Area Drain Clearing Annually
Root Barrier and Membrane Inspection of the Annually
Podium Area (include exposure)
Ground and Soil Re-grading (away from fences and Annually
walls)
Irrigation Sprinkler Adjustment and Maintenance Annually
Walkway Cleaning Annually
Walkway Clearing (remove debris, snow) Monthly
Perimeter Foliage Clearing Annually
Irrigation System Winterization Annually,
before Winter
2013 128
Depreciation Report
Pest Report Annually
Catch Basin and Trench Drain Grate Adjustment and Annually before
Location Marking Winter
Garden Hose Removal, Drainage and Storage Annually before
Winter
Outdoor Hose-bib Shut-off Annually before
winter
Snow Removal Equipment Service Annually before
winter
Sealing as required Annually
Landscaping (Pruning, tree trimming, replacement) Annually
Lawn Services Weekly
Fence Maintenance Annually
Gate, Lock and Intercom Maintenance Monthly
Totals $ $ $ $
2013 129
Depreciation Report
Addenda Section
2013 130
Depreciation Report
Funding Models
To follow are 5 alternative funding models presented to the strata council, which were
rejected in favour of the funding model chosen for this Depreciation report. Though these
funding models can be used in the event that the strata council decides upon a different
course of action for their Depreciation Report funding, funding model changes should
coincide with an update to the report itself unless made very shortly after the report is
conducted.
2013

Depreciation Report

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Depreciation Report

BCS 2429 The Point

May 17th, 2013

BCS 2429 The Point

Maintenance Operations Program

Markus Rissiek, Certified Reserves Planner

By following the recommendations of a proactive Depreciation Report, a strata can expect

Maintenance Operations Programs Depreciation Reports follow the Functional Reserve

Full Funding: A Depreciation Report which is Fully Funded is arranged in such a

Benchmark Analysis: In a Functional Reserve Fund Study (Depreciation Report), the

Current Replacement Cost: Is the price to replace or repair a major component

Future Replacement Cost: Is the price to replace or repair a component when it

Future Reserve Fund Accumulation: Is the Current Reserve Fund Requirements

Annual Reserve Fund Assessment: Is the amount of money required annually to

Reserve Fund Asset Allocation: Defines the component costs as a percentage of

Three Funding Models: By legislation, the Depreciation Report is required to contain

We have no interest, present or prospective, in the property or its management. Neither

Certified Reserves Planner

May 17th, 2013

This Report Is Subject to the Following Limiting Conditions

Copyright 2013 by Maintenance Operations Program

Applicant: Robert Douglas

Date of Study: May 17th / 2012

Property: BCS 2429 The Point

Reserve Fund Items

Architectural Components: 16 Reserve Components

Inflation Factor 2.50% Interest Rate 1.25%

Year Opening Recommended Special Estimated Estimated Percentage Increase Closing

2013 224,587 60,000 80,203 2,807 n/a 207,191

Significant Reserve Fund Estimates:

Current Replacement Costs $ 6,575,780

Cash Flow Table

Year Opening Recommended Special Estimated Estimated Percentage Increase Closing

2013 224,587 60,000 80,203 2,807 n/a 207,191

Depreciation Report Overview Table

Reserve Expenditures & Forecasting

1. The corporation should prepare and implement a long-term reserve fund

4. The reserve fund should be fully invested in guaranteed securities, yielding at

5. The corporation should make such expenditures as necessary to maintain the

Purpose of Depreciation Report

This Depreciation Report applies as of:

Markus Rissiek, Certified Reserve Planner

Strata Property Act

(a) a physical component inventory and evaluation that complies with

(b) a summary of repairs and maintenance work for common expenses

(c) a financial forecasting section that complies with subsection (3);

(i) that persons qualifications,

(e) the date of the report;

(i) the building's structure;

(iii) the building's systems, including the electrical, heating, plumbing,

(v) parking facilities and roadways;

(vi) utilities, including water and sewage;

(vii) landscaping, including paths, sidewalks, fencing and irrigation;

(viii) interior finishes, including floor covering and furnishings;

(ix) green building components;

(x) balconies and patios, and

(b) special levies;

(5) If a strata corporation contributes to the contingency reserve fund based on a

(7) The following periods are prescribed:

[en. B.C. Reg. 238/2011, Sch. 1, s. 2.]

6.2 (1)(a,b) & 6.2(2)(a,b): Reserve Components section, pages 36-107

6.2(1)(d,e,f): Certification section, page 8

6.2(2)(c) & 6.2(6): Exceptions section, page 111

6.2(3)(b): Depreciation Report Projection Factors section, page 23