Final Report. Capital Plan Building Condition and Energy Assessments Khyber Building 1588 Barrington Street Halifax, Nova Scotia

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1 Capital Management Engineering Limited EMPOWERING OUR CLIENTS WITH KNOWLEDGE 5531 Cornwallis Street, Halifax, NS, Canada B3K 1B3 Phone: Fax: Final Report Capital Plan Building Condition and Energy Assessments Khyber Building 1588 Barrington Street Halifax, Nova Scotia January 2013 Project Number Prepared for: Prepared by: Mr. Lou Dursi Building Coordinator Planning and Infrastructure Facility Development PO Box 1749 Halifax, NS B3J 3A5 Capital Management Engineering Limited 5531 Cornwallis Street Halifax, NS, B3K 1B3 (902)

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3 Introduction & Background Khyber Building Building Condition & Energy Assessment Table of Contents INTRODUCTION... 3 PURPOSE... 3 METHODOLOGY Project Approach Expected Outcomes General Methodology Building Condition Assessment (BCA) Energy Assessment Supporting Documents... 8 BUILDING CONDITION ASSESSMENT & CAPITAL PLAN Salient Property Information Site Work (Category 1) Architecture, Exterior (Category 2) Roofing (Category 3) Structure (Category 4) Architecture, Interior (Category 5) Mechanical Systems (Category 6) Plumbing Heating, Ventilation and Air Conditioning Vertical Conveyance Electrical System (Category 7) Life Safety (Category 8) Specialty Systems (Category 9) Opinion of Probable Costs ACCESSIBILITY AND DESIGN CONSIDERATIONS Accessibility and Code Compliance Code Compliance ENERGY ASSESSMENT Historical Energy Consumption and Demand Historic Water Consumption Baseline Assumptions Energy and Demand Saving Measures Building Roof Insulation Programmable Thermostats Upgrading Light Fixtures Energy Efficiency Project Costs, Savings and Payback Discussion of Finding Other Observations Water Conservation Equipment Management OPINION OF PROBABLE COSTS AND FCI Capital Plan Capital Plan Recommendations Energy Audit Recommendations (ECM) Facility Condition Index (FCI) Definition Anticipated FCI graph LIMITATIONS Page 1

4 Khyber Building Building Condition & Energy Assessment Introduction & Background 9 CLOSURE APPENDIX A CAPITAL PLAN... A APPENDIX B PHOTO LOG... B APPENDIX C HRM BUILDING FORMS... C APPENDIX D AERIAL & ELEVATION PHOTOS... D APPENDIX E FLOOR PLANS... E Page

5 Introduction & Background Khyber Building Building Condition & Energy Assessment 1 Introduction Capital Management Engineering Limited (CMEL) was retained by Mr. Lou Dursi, Coordinator Buildings, Planning and Infrastructure Department of Halifax Regional Municipality (HRM), to complete a building condition assessment (BCA), twentyfive year capital plan and an energy assessment for the property know as the Khyber Building located at 1588 Barrington Street, Halifax, Nova Scotia. 2 Purpose owns, operates and maintains Khyber Building. HRM has initiated a comprehensive review of the condition and utilization of Khyber Building in support of the Municipality`s long term asset management plan. The condition assessment, long range capital plan and energy assessment are intended to provide support to the long term asset management of the property known as Khyber Building. 3 Methodology 3.1 Project Approach The project was broken down into the following phases: Phase I Data Collection & Site Assessment To start the assessments, background information was collected on the facility. The information included, when available, floor plan drawings, up to three years of past energy consumption records, list of recent capital expenditures, and current facility design requirements. Following the collection of background data, a site assessment was scheduled and completed. The site assessment was carried out to determine the makeup of the building(s), including type of construction, identification of major systems including: architectural and structural, roof construction and covering, interior finishes, mechanical and electrical and, specialty systems. The systems and their respective components were visually assessed with respect to their rate of wear and observed condition to support the determination of their remaining useful life. During the site assessment, additional information was gathered from the site contact and site personnel, where possible, to further support the determination of the system and component conditions. Phase II Capital Plan Calculations Following site visits the building was modelled using industry data to provide an anticipated replacement schedule for the constituent major components over the next twentyfive years with the objective of maintaining the current 2013 Page 3

6 Khyber Building Building Condition & Energy Assessment Introduction & Background level of operations over the evaluation period. The remaining useful life of the major components was calculated by determining the year of installation, the expected useful life and providing adjustments where necessary based on the site observations. In conjunction with the determination of the expected date for renewal of the major components, a corresponding cost estimate was developed. Estimates were based on the client s historical records, preferred client rates, local contractor pricing, and/or industry pricing guides such as R.S.Means estimating guides. Phase III Energy Assessment & Modelling CMEL was provided with historical energy consumption data to support the energy assessment and modelling. A computer model of the building was developed using the information gathered from the site assessment. The modelling was completed using RETScreen (an industry accepted energy modelling tool developed by Natural Resources Canada). The baseline model was compared to the historical data to provide a level of confidence in the model. Upon successful completion of the baseline model, various energy efficiency measures were developed by substituting and/or adding various systems/components or implementing operational parameters that impact the energy usage while maintaining the current functionality of the building. Reporting and the EECPT The last phase of the project consisted of developing recommendations from the various calculations and modelling. In addition to the report, the findings were populated into the Energy Efficient Capital Planning Tool (EECPT) which provides an effective means of managing the basic capital planning data and incorporates the analysis of energy efficiency projects into the overall capital and budgeting plan. The EECPT also provides HRM with a tool to capture the recapitalization information on a going forward basis to support future capital investment and asset management strategies for the facility. 3.2 Expected Outcomes The objective of the capital planning component of the Project was to produce a capital plan that identified the current building condition and anticipated capital investment requirement to sustain the facility over the next twentyfive years. The capital plan is based on using as like as kind component replacement. As a result, the capital plan for the facility will continue to be a respective baseline for comparative analysis of potential component refurbishments or substitutions. The objective of the energy assessment component of the project was to identify specific alterations to the facility that would result in energy savings. The alterations are typically the result of component substitution, adding alternate technologies or changing building operations procedures while maintaining the same overall building use and objective. In some cases, where alternate technologies may produce a significant operational savings Page

7 Introduction & Background Khyber Building Building Condition & Energy Assessment but not necessarily an energy reduction, the alternate technologies were identified but not labelled as energy saving measures. 3.3 General Methodology The analysis for the building(s) consisted of the following: Interviews with the CoordinatorBuildings, as well as with the onsite building managers and maintenance staff as made available; Review of available building drawings and equipment specifications; Onsite assessments that each included a building walkthrough, data collection, collection of operating schedules and observation of building, equipment and component conditions; Review of energy consumption and billing data; Identification of building component and equipment replacement requirements, estimated costs and schedule; Identification of potential operational procedure changes and feasible capital reinvestment initiatives to improve energy efficiency; Population of the EECPT with building condition and energy efficiency measures data to produce a 25 year Capital Plan. Responses to a review of a draft report by HRM. 3.4 Building Condition Assessment (BCA) The BCA carried out by Capital Management Engineering Limited on the property is based on the ASTM Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process (ASTM E ) and consisted of the following: Interviews with building managers and maintenance staff and review of existing documentation including drawings, specifications and previous reports when available; A site visit to visually review the types and conditions of the building systems and elements; 2013 Page 5

8 Khyber Building Building Condition & Energy Assessment Introduction & Background The identification of actions, with costs in present value dollars, to remediate health and safety issues, to mitigate code violations 1 and to repair major defects in materials or systems that may significantly affect the value of the building or continued operation of the site during the evaluation period; Recommendations, with cost estimates, for further investigations if required and an Opinion of Probable Costs for work that may be required as a result of these investigations; and, The preparation of a report, presented herein. ASTM E defines a Physical Deficiency as a conspicuous defect or significant deferred maintenance of a Site s material systems, components or equipment as observed during the site assessor s walkthrough site visit. Included within this definition are material systems, components or equipment that are approaching, have reached, or have exceeded their typical Expected Useful Life (EUL) or whose Remaining Useful Life (RUL) should not be relied upon in view of actual or effective age, abuse, excessive wear and tear, exposure to the elements, lack of proper or routine maintenance, etc.. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimis conditions that generally do not constitute a material physical deficiency of the Site. 2 The assessment of the Site was based on a visual assessment of the visible and accessible components of the property, buildings and related structures. The site components, building exterior, roof membrane(s) and interior finishes of the onsite buildings and related structures were visually reviewed to check their condition and to identify if any obvious physical deficiencies were present. The review did not include an intrusive investigation of wall assemblies, ceiling cavities or any other enclosed spaces. No physical tests were conducted and no samples of building materials were collected to confirm or support the findings presented unless otherwise noted in this report. Recommendations and estimates for additional testing or investigations may be presented as part of the report when, in the assessor s opinion, a condition may exist that would substantially alter the findings and cannot be adequately assessed by nonintrusive visual means. The review of the mechanical and electrical systems at the property included discussions with the site contact(s). A visual review of the mechanical and electrical systems was conducted to determine the type of systems present, age and aesthetic condition. No physical tests were conducted on the mechanical and electrical operating systems. 1 A code compliance is beyond the scope of this project; however specific codes may be referenced during the discussion as a reference standard. 2 ASTM E Section Page

9 Introduction & Background Khyber Building Building Condition & Energy Assessment A detailed evaluation of the property development s compliance with national and provincial building codes and/or fire codes is not part of the scope of this assessment. However, applicable codes may be used as a reference in determining appropriate recommendations. It is assumed that the existing building was reviewed and approved by local authorities at the time of construction. The estimated costs outlined in this report are based on the conditions observed during the site assessment and the documents provided. Estimated costs are based on a combination of past experience, known contractor pricing and estimating guides such as R.S. Means. The opinions of cost are intended for global budgeting purposes only. Actual costs for work recommended can only be determined after preparation of tender documents and/or soliciting quotations from qualified contractors. Costs associated with site and scheduling restrictions, and impacts to ongoing operations have not been taken into account in determining probable costs. The replacement, repair or maintenance recommendations in this report should be confirmed with a more detailed site investigation and project evaluation prior to implementation. For the purpose of this report the following temporal units have been applied: Immediate year 0 to one; Short term years one to five; Long term years six to ten; and Extended term years eleven to twentyfive. 3.5 Energy Assessment The energy assessment commenced with an analysis of at least one full year of past energy usage data for the station. All energy sources were taken into account including, but not limited to, electricity, fuel oil, propane, natural gas, and solar, where applicable. An energy usage profile was developed to determine the usage by season and compared to benchmark data. The initial analysis was followed by a site assessment to catalogue the energy consuming items associated with the facility and its operation. During the site assessment, interviews with the site contact were conducted to establish the general operating conditions to support an accurate modelling of the facility over a twelve month period. A baseline computer model was developed to create an energy profile and total energy consumption data which were compared to the known historical data. The model was refined until the variance was within acceptable limits. Typically a variance of 15% or less is sufficient to have confidence in the model. Once the model was deemed acceptable, various energy efficiency measures (EEM) were modelled to determine the impact on the energy usage and evaluate the potential operational savings that would result. The cost to implement each of the EEM was estimated, using the same methodology as utilized in developing the capital plan costing. The simple pay back was calculated and an opinion offered with respect to the recommended EEM for the facility. The data was entered into the EECPT to establish the relationship between the potential EEM and the current recapitalization schedule, 2013 Page 7

10 Khyber Building Building Condition & Energy Assessment Introduction & Background thus providing additional value by allowing HRM to concurrently incorporate EEM with a scheduled replacement event. 3.6 Supporting Documents HRM has supplied the following documents to support the assessments. A copy (when available) of the floor plans have been included and appended to the report. In addition, HRM has supplied an estimated replacement value for the building (Report Name: Property Book Values, Working Copy October 1, 2012) which has been used to calculate the Facility Condition Index (FCI). Supporting Document Type Date Issued Issuing Party 2012 Reno Proposal Drawing 7/4/1905 HRM Asbestos Report Report 11/9/2012 SLR Consulting Construction Tender Windows Estimate of Replacement Cost Feasibility Package submitted to HRM Report 11/19/2008 HRM Report 2/1/2009 Altus Group Report 6/21/2010 Unknown Feasibility Study Report Unknown TCI Management Consultants Fire Schematics Drawing Unknown HRM Floor Plans Drawing 12/20/2012 HRM Historical Electrical Consumption Historical Electrical Consumption Energy Data 11/30/2012 HRM Energy Data 12/18/2012 NSPI Historical Oil Consumption Energy Data 12/20/2012 HRM Information 1996 Drawing 6/18/1905 HRM Information 2010 Drawing 7/2/1905 HRM Memos To Council Report Unknown HRM Grants Committee Quote: Drywall Ceiling and Interior Wall (5/8 Fire Guard) Quote: Fabricate and Install Wainscot Cap Rail (Front Hall) Quote: Newel Post Stabilization/Repair Quote: Remove Front Stage/Remove Bar/Delete Store Room Report 8/22/2012 HRM Report 8/22/2012 HRM Report 8/22/2012 HRM Report 8/22/2012 HRM Replacement cost estimate Report 2/1/2009 Altus Group Water Usage Energy Data 1/9/2013 HRM Window Replacement Costs Report 12/21/2011 HRM Page

11 Building Condition Assessment Khyber Building Building Condition & Energy Assessment 4 Building Condition Assessment & Capital Plan 4.1 Salient Property Information Property Name Street Address City, Province Primary Use Number of Buildings on Site Foundation Superstructure Cladding Khyber Building 1588 Barrington Street Halifax, Nova Scotia Office One Stone and granite Bearing masonry brick exterior walls, wood framed floors and roof. Structural Steel supports have been added Masonry and decorative sandstone Roof Membrane BUR (low sloped roof) and slate (Mansard roof) Reported Year Built 1888 Building Area Evaluation Period Site Assessment Conducted By 10,223 ft 2 Including basement 25 Years Scott MacLeod and Robert Naugler on December 19, 2012 The Khyber Building is located at 1588 Barrington Street in Halifax, Nova Scotia. The property is bordered by Barrington Street to the east and neighbouring connected commercial buildings in all other directions. The Khyber building is the only building located on the property and it is used as office and gallery space. There is no vehicle access to the property. Pedestrian access is from municipal concrete sidewalks bordering Barrington Street. The building was reported to have been originally constructed in 1888 by the Church of England and is currently identified as a heritage building. The building is a three storey building with a partial basement. Exterior wall consists of bearing masonry with sandstone accents with glazing consisting of wood framed single glazed windows. The main entrance fronts onto Barrington Street and consists of two exterior and two interior wood doors with glazing and glazed transoms. A secondary entrance/exit door is located on the partial south elevation and consists of a metal door with glazing in a metal frame. Roofing for the building consists of a conventional Built Up Roof (BUR) membrane with a perimeter slate mansard roof. Heating for the building is provided by two oil fired hot water boilers that supply hot water heating to radiators located throughout the building. The building has been designated as a Heritage Building by HRM. As a result the estimated replacement cost as well as the individual component replacement costs may be significantly higher than typical recapitalization costs. The higher costs are a result of 2013 Page 9

12 Khyber Building Building Condition & Energy Assessment Building Condition Assessment the premiums associated with matching like kind and quality which is typical for recapitalization Heritage buildings. Due to the materials and required workmanship to replicate this quality additional costs are often incurred. It should also be noted, although beyond the scope of this report, that redevelopment and or component substitutions are often restricted in buildings with Heritage designations. Mr. Scott MacLeod and Mr. Robert Naugler of CMEL conducted the site visit on December 19, CMEL was accompanied by Mr. Ross Russell from the community centre during the site visit. All areas of the building were accessible during the site visit with the exception of the low sloped roof. Selected photographs of the site are appended to the report. 4.2 Site Work (Category 1) Description Pedestrian access to the property is from municipal sidewalks from Barrington Street. There is no vehicle access to the property. There is no landscaping associated with the property as the building appears to extend to the property lines in all directions. Site lighting consists of two building mounted light fixtures bracketing the main entrance. Observations/Comments The municipal sidewalks are assumed to be the responsibility of the municipality and beyond the scope of this report. The building mounted lighting appeared to be in good condition and should have a remaining useful life of ten to fifteen years. The estimated cost and timing of the replacement have been included in the probable cost table. Probable Cost Estimate Item Building Mounted Lighting Action Replacement of building mounted lighting at end of remaining useful life Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence $1, $3, Architecture, Exterior (Category 2) Description The building is connected / abuts the adjacent buildings on the north, west and the majority of the south elevations. The east elevation consists of bearing masonry brick with extensive architectural sandstone accents around the main entrance and glazing units. The partial south elevation consists of bearing masonry brick with limited sandstone accents in Page

13 Building Condition Assessment Khyber Building Building Condition & Energy Assessment comparison to the east elevation. Glazing consists of wood framed single glazed architectural windows on the east and partially on the south elevation. The main entrance doors are located on the east elevation and consist of exterior and interior double wood doors with glazing and transoms. A secondary entrance/exit door is located on the partial south elevation and consists of a metal door with glazing in a metal frame. Observations/Comments The bearing masonry exterior walls appeared to be in fair to poor condition with evidence of deteriorated bricks and mortar joints noted throughout the east and partial south elevations. Some evidence of past repointing/repairs was noted on the partial south elevation. It was reported that localized repointing was completed within the past five years on the south elevation although no repointing/repairs were completed on the east elevation at that time. Typically bearing masonry walls can have an almost indefinite expected useful life assuming ongoing repairs and maintenance including repointing and localized replacement of deteriorated bricks completed at regular intervals. The extensive sandstone accents varied in overall condition with some areas of spalling noted at window sills and varying degrees of deterioration of the sandstone architectural accents above the windows on the east elevation. Based on the observed condition it is recommended that a detailed assessment of the current condition of the masonry and sandstone be completed to determine the current condition and cost estimates for repairs and restoration to maintain the exterior walls. It is expected that any repair and restoration costs will be significantly higher than typically expected as a result of the construction, age and heritage status of the building. For the purposes of the capital plan an allowance for a detailed study as well as a lump sum budget cost estimate for repairs/restoration as reported by HRM staff and pending the results of the study have been included in year one of the evaluation period. The single glazed architectural windows appeared to be in fair to good condition on the main and second floors and it was reported that repairs/refurbishment of the windows in these areas had been completed within the past two to three years. The glazing units on the third floor appeared to be in fair to poor condition with the majority of the units inoperable at the time of the site visit. Based on the observed condition it is expected that the glazing units on the main and second floor will not require additional refurbishment until the extended term of the evaluation period. It is recommended that the glazing units on the third floor be refurbished in the short term of the evaluation period. In addition it has been assumed that maintenance, localized repairs and painting at approximately five to seven year intervals during the evaluation period will be completed as part of maintenance activities. The estimated cost and timing of the refurbishments have been included in the probable cost table. The main entrance doors, door hardware and transoms appeared to be in fair condition. Neither the exterior or interior doors are provided with automatic openers. Typically well maintained wood entranceways have an expected useful life of forty or more years with occasional hardware replacement completed as part of regular maintenance budgets. Based on the observed condition it is not expected that the doors will require replacement during the evaluation period although repairs/ refurbishment are expected 2013 Page 11

14 Khyber Building Building Condition & Energy Assessment Building Condition Assessment to be required to maintain their operation. For the purposes of the capital plan an allowance for refurbishment has been included in the capital plan. The secondary entrance/exit door appeared to be in fair condition with no significant damage or corrosion noted during the site visit. Typically metal exterior doors have and expected useful life of twentyfive years. Based on the observed condition it is expected that cyclical replacement will be required during the evaluation period. The estimated cost and timing of the replacement has been included in the probable cost table. Probable Cost Estimate Item Exterior Envelope Detailed Study Exterior Brick and Sandstone Glazing Third Floor Glazing Main and Second Floor Main Entrance Doors Secondary Entrance/Exit Door Action Allowance for detailed study of condition of exterior bearing masonry and architectural sandstone accents to determine repair/restoration procedures and cost estimates Allowance for repairs/restoration pending on results of detailed study Refurbishment allowance for third floor windows Cyclical refurbishment allowance based on window refurbishment completed in 2009 Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence $7, $7, $230, $230, $30, $30, $74, $74,000 Refurbishment allowance $5, $5,000 End of remaining useful life replacement $1, $1, Roofing (Category 3) Description Roofing for the building reportedly consists of a conventional low sloped modified bitumen roof membrane and a perimeter mansard roof clad with slate shingles. Drainage for the low sloped membrane is assumed to consist of roof drains and internal rainwater leaders. Drainage for the mansard roof is provided by eavestroughs and downspouts that are connected to the municipal storm water collection system. A rectangular skylight is located in the low sloped roof above the main stairwell and a second skylight is located in one of the tenant spaces. Observations/Comments The low sloped roof was not accessible during the site visit. In the interior of the building, ceilings were observed for signs of active or past water ingress. It was reported that the roof was in fair to poor condition, nearing the end of its remaining useful life and roofing repairs were recently completed to address areas of active water ingress. Evidence of past water ingress was noted on the third floor of the building although did not appear to be a result of active water ingress although this could not be Page

15 Building Condition Assessment Khyber Building Building Condition & Energy Assessment confirmed during the site visit. Typically modified bitumen membranes have an expected useful life of twenty years. Based on the reported condition it is expected that the membrane will require replacement in the short term of the evaluation period. In addition repairs and or localized replacements are also typically required after approximately fifteen years of service in order for the membrane to reach its expected useful life. For the purposes of the capital plan an allowance for replacement and repairs have been included in the probable cost table. The skylights were reported to have areas of recent water leaks and there was evidence of recent drywall repairs. Typically skylights have an expected useful life of twenty to thirty years. The age of the main skylight was not reported but appears to have been installed within the past five years with the secondary skylight assumed to be fifteen to twenty years in age. Based on the observed condition replacement of the skylights is not expected to be required during the current evaluation period although repairs are expected to be required. Repairs are expected to be completed in conjunction with replacement of the roof membrane. No costs have been included in the probable cost table. The slate clad mansard roof appeared to be in fair to good condition with no missing or damage shingles reported or observed during the site visit. Typically slate roofing has an expected useful life in excess of one hundred years with occasional replacement of damaged slate shingles. Based on the observed condition it is not expected that significant replacement will be required during the evaluation period. It is recommended that the roof and shingles be regularly inspected and repairs completed as part of maintenance budgets. No costs have been included in the probable cost table. The eavestroughs and downspouts appeared to be in poor condition with evidence of damaged eavestroughs. Typically eavestroughs and downspouts have an expected useful life of twentyfive or more years. Based on the observed condition it is expected that replacement will be required in the short term of the evaluation period. The estimated cost has been included in the probable cost table. Probable Cost Estimate Item Modified Bitumen Membrane Replace Modified Bitumen Membrane Repair Eavestroughs and Downspouts Action Replacement of asphalt shingled roofing Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence ,600 $12.00 $31,200 Allowance for repairs $8, $8,500 Replacement expected to be required $2, $2, Structure (Category 4) Description The building appears to be founded on a combination of granite and stone / mortar foundation walls that support the load bearing masonry exterior walls of the building. The 2013 Page 13

16 Khyber Building Building Condition & Energy Assessment Building Condition Assessment partial basement floor appeared to be a combination of concrete slab on grade, masonry brick and masonry brick with a concrete topping in some areas. The main, second and third floors as well as the roof are assumed to be wood framed and supported by the exterior walls. During the site visit evidence of structural steel beams and columns were observed in the basement and third floor and are assumed to be the result of past structural repairs to the building. Observations/Comments The stone foundation walls appeared to have areas of past water ingress although no evidence of active water ingress was observed. There were no obvious signs of structural distress or failure of the visible portions of the foundation walls. The basement floors varied in condition from poor with regards to the exposed brick floors to fair for the concrete slab and concrete topped areas. The wood framed floors appeared to be generally stable although there were some signs of sloping and uneven floors noted during the site visit. The structural steel additions appeared to be in good condition and the timing of their installation was not reported during the site visit. In the absence of a past structural report and based on the building age, past structural repairs and observed condition it is recommended that the current condition of the structural components be confirmed by completing a detailed structural assessment of the building. It is expected that the assessment will include recommendations for additional structural reinforcing to maintain the structural systems during the evaluation period complete with cost estimates if found to be required. The estimated cost of the assessment has been included in the probable cost table. For the purposes of the capital plan and pending results of the structural assessment an allowance for structural repairs has also been included in the probable cost table. Probable Cost Estimate Item Structural Components Assessment Structural Components Action Allowance for structural assessment of current condition and if required provide recommendations for additional repairs Allowance for structural repairs pending completion of structural assessment Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence $10, $10, ,098 $17.25 $191, Architecture, Interior (Category 5) Description Interior floor finishes consist of a combination of hardwood flooring, sheet linoleum, rubber tile and exposed concrete. The majority of the walls generally consist of painted lath and plaster walls with some areas of wood wainscoting. Minor areas of painted drywall were also observed. Ceilings appeared to consist of painted lath and plaster with some areas of textured ceilings and painted drywall. Painted wood baseboards and extensive plaster mouldings are located throughout the building. Interior doors are solid core wood doors. Page

17 Building Condition Assessment Khyber Building Building Condition & Energy Assessment Observations/Comments The interior finishes generally appeared to be in poor to very poor condition throughout the building with the majority of finishes having exceeded their expected useful life and are at the point of individual component failure. The wood flooring is scratched and damaged in the majority of areas. The sheet linoleum appeared to be forty or more years in age and has exceeded its useful life. The rubber floor tiles have damaged surface finishes. Based on the observed condition it is expected that the majority of the flooring throughout the building will require replacement in the short term of the evaluation period. The painted lath and plaster walls generally appeared to be in very poor condition with significant areas of the plaster walls noted to have come loose from the supporting lath. Additional areas of cracking, water damage and general deterioration were also noted during the site visit. The plaster moldings were damaged and or missing in numerous areas throughout the building. Similarly the painted plaster ceilings appeared to be in poor condition with evidence of water damage, cracking and deterioration. The limited painted drywall walls and ceilings appeared to be in fair condition with only minor areas of damage noted. The majority of the interior doors appeared to be at the end of the remaining useful life and in fair to poor condition. The majority of the interior finishes and doors throughout the building are in or near a failed state and will require replacement or extensive refurbishment. It was reported that a portion of the building has been tested for hazardous materials with some positive results for lead based paint and asbestos. It is recommended that before any replacement of the interior finishes that possible hazardous materials be identified and remediation completed. Increased expenditures as a result of remediation requirements associated with the removal of hazardous materials could significantly increase the overall cost for replacement of the interior finishes. For the purposes of the capital plan an estimated budgetary allowance for replacement and or extensive refurbishment of the interior finishes has been included in the probable cost table. The allowance is based on a per square foot cost since the majority of the interior finishes will require refurbishment / replacement. Probable Cost Estimate Item Interior Finishes Action Budgetary allowance for replacement and or extensive refurbishment of the interior finishes Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence ,098 $ $1,183, Page 15

18 Khyber Building Building Condition & Energy Assessment Building Condition Assessment 4.7 Mechanical Systems (Category 6) Plumbing Description Domestic water and sanitary was reported to be provided by the municipality. Domestic water and sanitary systems supply washrooms on the main floor and kitchen/bar areas on the upper floors of the building. Within the building, copper domestic water lines supply the washrooms and wastewater piping is assumed to be cast iron piping connected to the municipal system. Domestic hot water is provided by a thirty gallon (estimated) electric hot water tank manufactured by Giant. Observations/Comments The age and condition of the domestic water and sanitary piping within the building was not reported during the site visit although the majority of the exposed piping appeared to be thirty or more years in age. In some of the tenant spaces plumbing fixtures have been installed as required for the tenant use. In the former Khyber Club tenant space it was noted that a sink had been removed and the drainage piping not capped off potentially allowing sewer gas into the building. It is recommended that the piping be capped off as an immediate repair. The estimated cost of the repair has been included in the probable cost table. Typically the domestic and sanitary piping will have an expected useful life in excess of forty years. Based on the estimated age and observed condition of the systems it is anticipated that repairs and or a partial replacement will be required during the evaluation period. For the purposes of the capital plan an allowance to address repairs and replacements has been included in the probable cost table. The plumbing fixtures, partitions and finishes in the washrooms appeared to be aged and in poor condition. The persons with disabilities washroom was nonfunctional at the time of the site visit. Typically water closets, urinals and sinks have an expected useful life of thirty to thirtyfive years. Based on the observed condition and the estimated remaining useful life it is expected that a complete replacement of the washroom fixtures and finishes will be required. For the purposes of the capital plan an allowance for replacement of the fixtures, partitions and finishes has been included in the probable cost table. The electric domestic hot water tank appeared to be in good condition and is estimated to be approximately five years in age. Electric hot water tanks have an expected useful life of ten to fifteen years. Based on the observed condition and estimated remaining useful life, cyclical replacement is expected to be required during the evaluation period. The estimated cost and timing of the replacement have been included in the probable cost table Heating, Ventilation and Air Conditioning Description Heating for the building is provided by two Kerr Comet oil fired hot water boilers with Riello 40 burners located in the basement mechanical room. The boilers supply hot Page

19 Building Condition Assessment Khyber Building Building Condition & Energy Assessment water heating to perimeter baseboard radiators throughout the building. Heating control is provided by thermostats. Fuel oil storage for the boilers is provided two, 909 litre interior single walled metal fuel oil storage tanks manufactured in The tanks are located in the basement of the building near the mechanical room. The tanks are not provided with containment. The building is not provided with air conditioning. The building is not provided significant with mechanical ventilation. The building would not have been heated by hot water baseboard heating originally. Fire places were noted in some of the rooms complete with cast iron finishes. It is assumed that these fireplaces were used to heat the building using coal and or wood. The fire places typically were made of brick and mortar and had individual flues inside a brick and mortar chimney. Observations/Comments The Kerr Comet oil fired boilers appeared to be in good condition and are estimated to have been installed within the past five to ten years. Well maintained boilers will typically have an expected useful life of twentyfive to thirty years with occasional repairs and replacement of components. Based on the observed condition and estimated remaining useful life, replacement is not expected to be required until near the end of the evaluation period. The estimated cost and timing of the replacement have been included in the probable cost table. The condition of the perimeter baseboard radiators was not reported during the site visit but appeared to be in fair condition and estimated to be twenty to thirty years in age. Typically baseboard radiators and associated supply and return piping have an expected useful life of forty or more years. Based on the observed condition and estimated remaining useful life, it is expected that a partial replacement of the radiators as well as piping repairs will be required during the evaluation period. It is expected that any replacement will be completed on an as required basis as part of maintenance budgets. No costs have been included in the probable cost table. The fuel oil tanks were manufactured in 1999 and have an expected useful life of fifteen years although can vary depending on insurance requirements. Based on the observed condition and estimated remaining useful life it is expected that the tanks will require replacement in the short term with additional cyclical replacements expected during the evaluation period. The estimated cost and timing of the replacement has been included in the probable cost table Vertical Conveyance Description The building is not provided with vertical conveyance. Observations/Comments None 2013 Page 17

20 Khyber Building Building Condition & Energy Assessment Building Condition Assessment Probable Cost Estimate Item Domestic Water Piping Action Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence Allowance for repairs $6, $6,000 Sanitary Piping Allowance for repairs $8, $8,500 Washrooms Men's and Women's Accessible Washroom Kerr Comet Boilers Fuel Oil Tanks Plumbing Piping Domestic Hot Water Tank Allowance for replacement of fixtures, partitions and finishes Allowance to reinstate washroom to operation Replacement at end of remaining useful life Cyclical end of life replacement during the evaluation period Immediate repair allowance to inspect and repair drainage piping as required Allowance for cyclical replacement $25, $50, $5, $5, $7, $15, $1, $3, $1, $1, $1, $1, Electrical System (Category 7) Description The site is supplied with power underground from the local power utility. The building is equipped with one main disconnect rated at 200A 240V manufactured by Square D. Lighting in the building consists of a combination incandescent and fluorescent tube fixtures. The building is not provided with emergency power. Observations/Comments The main switch gear and secondary panels appeared to be in fair condition with some of the secondary panels in the electrical room appearing to have been replaced within the past ten to fifteen years. The age of the main breaker was not reported but appeared to be approximately thirty years in age. The expected useful life of main breaker and secondary panels is approximately forty years. Based on the observed condition and estimated remaining useful life it is expected that an upgrade of the electrical system will be required in the long term of the evaluation period. For the purposes of the capital plan an allowance for electrical component replacement has been included in the probable cost table. The age and condition of the branch wiring was not reported during the site visit but it appears that some new wiring has been installed within the past five to ten years. Typically branch wiring will have an expected useful life of forty or more years. Based on the expected useful life and estimated age it is expected that at least a partial replacement will be required during the evaluation period. The estimated cost and timing of the replacement have been included in the probable cost table. Page

21 Building Condition Assessment Khyber Building Building Condition & Energy Assessment The light fixtures throughout the building appeared to vary in condition and age. Typically light fixtures will have an expected useful life of approximately twenty years. Based on the observed condition and estimated remaining useful life a lighting replacement/upgrade is expected to be required in the short term of the evaluation period. The estimated cost and timing of the replacement have been included in the probable cost table. Probable Cost Estimate Item Main and Secondary Panels Action Allowance for replacement of main breaker and secondary panels as required Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence $3, $3,500 Branch Wiring Allowance for replacement $15, $15,000 Lighting Allowance for replacement ,223 $2.25 $23, Life Safety (Category 8) Description The building is provided with Mircom FA300 series fire alarm panel that monitors the sprinkler system, smoke / heat detectors and pull stations throughout the building. Emergency lighting is provided by battery backup wall mounted lighting and illuminated exit signage strategically placed throughout the building. There are a number of fire extinguishers mounted throughout the building. The building is provided with a sprinkler system covering all areas of the building. Observations/Comments The fire alarm panel appeared to be in fair condition and has an expected useful life of twenty to twentyfive years. Based on the observed condition and estimated remaining useful life it is expected that replacement will be required during long term of the evaluation period. The estimated cost and timing have been included in the probable cost table. The exit lighting and emergency lighting appear to be in good condition and was reported to be functional. The expected useful life of this equipment is typically twenty years. Based on the observed condition and estimated remaining useful life it is expected that a replacement will be required in the extended term of the evaluation period. The estimated cost and timing of the replacement have been included in the probable cost table. The fire extinguishers were observed to have been recently inspected and appeared to be in good condition. Other than yearly inspections and occasional replacements as part of maintenance budgets no significant capital renewal costs are expected to be required. No costs have been included in the probable cost table Page 19

22 Khyber Building Building Condition & Energy Assessment Building Condition Assessment The sprinkler system was estimated to have been installed in the building within the past forty years and generally appeared to be in fair condition. Some sections of replaced/additional piping was noted during the site visit. Typically sprinkler piping has an expected useful life of forty years. Based on the observed condition and estimated remaining useful life it is expected that at least a partial replacement of the piping and or sprinkler heads will be required during the evaluation period. For the purposes of the capital plan an allowance for a complete replacement has been included in the probable cost table. Probable Cost Estimate Item Fire Alarm Panel Exit and Emergency Lighting Fire Extinguishers Sprinkler System Action Year of Install Expected Useful Life Anticipated Year of First Expenditure Quantity Unit Cost Cost per Occurrence End of life replacement $5, $5,000 Allowance for replacement at end of remaining useful life Replacement as part of maintenance budgets Allowance for replacement at end of remaining useful life ,098 $1.05 $11, ,098 $3.50 $38, Specialty Systems (Category 9) Description No Specialty Equipment observed. Observations/Comments None Opinion of Probable Costs Priority Repair Recommendations Priority repair costs are for deficiencies observed during the property condition assessment and energy review that require immediate action to prevent further deterioration to the element or to prevent possible injury due to unsafe conditions and/or code violations. No priority repair costs were identified during the site visit. Major Component Repair and Replacement Project Costs Probable costs for the major component replacements identified during the site assessment and energy audit were estimated. Major component replacements can be defined as components: That are the responsibility of the Property Owner; For which major repair or replacement costs are anticipated to be incurred during its useful life; and For which costs of repair or replacement will not be covered as part of the annual operating expenses. Page

23 Building Condition Assessment Khyber Building Building Condition & Energy Assessment Major component replacements and energy efficiency projects, and information for developing their estimated costs, are based on observations made during the site assessment on December 19, Quantities and areas are based on field observations, site interviews and/or client supplied drawings and equipment specifications. More precise quantity surveying or site measurements were beyond the scope of this assessment. Replacement and repair costs, and implementation of energy efficiency measures, are approximate and based on industry standards or CMEL experience. It is recommended that quotations from qualified contractors be obtained by HRM before any specific project is undertaken. HRM may also wish to seek advice on potential incentive programs that might assist in such replacements, particularly as they relate to energy efficiency upgrades. Similarly, some of the identified projects may be undertaken without specific building or other permits. However, investigation of such needs, including detailed studies and engineering, was beyond the scope of this project and remains the responsibility of HRM. Our opinion on the probable costs to remedy observed physical deficiencies, replace items that will exceed their expected useful life over the immediate term (year 0 to 1), short term (15 years), long term (610 years), and extended term (1125 years) are summarized in the Cash Flow Report in Appendix A Page 21

24 Khyber Building Building Condition & Energy Assessment Design Review 5 Accessibility and Design Considerations 5.1 Accessibility and Code Compliance Description The building is not considered to be barrier free. The main and secondary entrances are not provided with ramps and the doors are not with automatic door openers. Washrooms are not barrier free. 5.2 Code Compliance Enquiries were made with HRM and the site contact to determine if there was any outstanding code compliance related issues or concerns associated with the building. HRM and the site contact reported that they were ongoing structural concerns with the building. The site contact was not aware of any outstanding code compliance violations at the time of the site visit. Page

25 Energy Assessment Khyber Building Building Condition & Energy Assessment 6 Energy Assessment An energy assessment was completed for the Khyber Building (the facility). Spreadsheets developed by CMEL were used to analyze historic electricity consumption. RETScreen 4, a widely accepted building energy modelling tool, also developed by NRCan, was used to analyze the building envelope, the heating and ventilation systems, the lighting and equipment. Climatological data from the Halifax International Airport was used. 6.1 Historical Energy Consumption and Demand The Facility relies on electricity and oil to meet its energy needs. Historical electricity and oil consumption data were provided by the. Electrical data was provided from January, 2009 to November, The consumption patterns for electricity were analyzed from 2009 to It appears from this data that electricity consumption for this facility has increased substantially from 2010 to 2011 and the pattern indicates that electrical consumption in 2012 will likely be consistent with Oil data was provided from January 2010 to December Oil consumption appears to have decreased from 2010 to 2011 and was fairly consistent from 2011 to Some inconsistencies were noted from month to month however this is considered a result of varying delivery schedules. A review of the past three years of energy data, broken down by type of energy, ie electricity and oil, showed that 2012 oil was the most suitable year to model. The electrical data for the three years was compared on a month by month basis and 2011 was felt to be the most representative year. Electricity is supplied by Nova Scotia Power and is charged at the General Tariff Rate Code 4. Electricity charged under rate code 4 is charged a base monthly fee and also a usage fee. The Facility is provided with oil purchased from Wilson Fuel. As with most commodities, fuel prices vary from month to month and year to year. For the purposes of the analysis an average price per liter was used. For the baseline analysis, energy costs were averaged over the twelve month period between January 1 st, 2011 and December 31 st, The following is a breakdown of the past energy consumption by energy source: The electricity service for the facility which is subject to General Tariff Rate Code 4 is summarized below: 2013 Page 23

26 Khyber Building Building Condition & Energy Assessment Energy Assessment Electrical Consumption Year Electricity Electricity Electricity Electricity Month kwh kwh kwh kwh January February March April May June July August September October November December Total Electrical Consumption 2011(kWh) kwh kwh From the data provided this facility consumed 24,518 kwh (88.19 GJ) of electricity in Electricity costs were $3, inclusive of taxes and miscellaneous service charges or an average of $0.156 per kilowatt hour. The electricity consumed by the facility under rate code 4 was purchased from Nova Scotia Power. The cost of energy and electricity demand is as follows: Page

27 Energy Assessment Khyber Building Building Condition & Energy Assessment Service charge/month $10.83 Energy Charge $ /Kwh Demand Charge Not Applicable Oil consumption is summarized as follows: Year Oil Oil Oil Oil Month Litres Litres Litres Litres January 1, , February 1, , March 1, , April , May , June Fuel Oil Consumption July August September October November 1, December 1, Total 11, , , Oil Consumption 2012(Litres) 2000 Litres Litres 0 The facility consumed 10,186 L ( GJ) of oil in Fuel oil costs were $8, inclusive of taxes and delivery fees for an average of $0.8728/liter Page 25

28 Khyber Building Building Condition & Energy Assessment Energy Assessment 6.2 Historic Water Consumption Water is supplied and metered by Halifax Regional Water Commission, mainly to supply the janitorial functions, kitchen areas and lavatories. Water consumption records were supplied by HRM and are summarized as follows; From the data provided water consumption appears to be inconsistent. It is assumed that the increased water consumption in 2010 and 2012 is as a result of an increase in use of the facility. HRM purchases its water from the Regional Water Commission who provide infrastructure for its delivery. Any water savings thus save HRM both energy (delivery, heating) and direct costs. Domestic hot water is provided by a Giant, electric hot water heater. 6.3 Baseline Assumptions Water Consumption Year Water Water Water Water Quarter m 3 m 3 m 3 m Total The facility operates as a centre for the arts and gallery and contains offices, viewing galleries, washrooms and storage spaces on three floors and a partial basement level. It was reported that the facility mainly operates from 9:00am to 5:00pm seven days per week. Heating is controlled through wall mounted thermostats. Lights are controlled with wall mounted switches. The building is heated by hot water baseboards, supplied with hot water from two Kerr Comet, high efficiency, oil fired boilers. The boilers were reported to have been installed within the last 10 years. There are no supplemental heating sources such as solar panels or heat recovery providing preheating of the domestic hot water. There was no cooling equipment observed at the time of the site visit. No mechanical ventilation was observed during the site visit. It is assumed that ventilation is by natural air infiltration through opening doors, exhaust fan openings and air infiltration through door and window openings. It was observed and reported that the majority of the lighting is T8 fluorescent fixtures with electronic ballasts and screw in compact fluorescent lighting. There are some Page

29 Energy Assessment Khyber Building Building Condition & Energy Assessment incandescent and halogen task lighting. Exterior lighting is limited to two metal halide fixtures. Emergency lighting is reported to be LED fixtures. A baseline energy model was developed using the foregoing information, observations during the site visit, and additional information supplied by the occupants of the building. In addition to the above the following assumption(s) were made to complete the baseline model, the assumptions included: Natural ventilation rates were assumed for air leakage around windows and doors and washroom vents. In our model we have assumed that the building s envelope has moderate or medium air infiltration, the doors have moderate or medium air infiltration, and the windows having high or leaky air infiltration. It was further assumed that the modified bitumen roofs are insulated to an R value of 20 and that the walls are insulated to an R value of 9. (Mainly brick masonry and wood stud with lath and plaster interior walls) The baseline model was compared to the known historical data. A variance of less than 4% was achieved which was within the industry standard of 15 % modelling variance typically accepted for this level of energy assessments. Once this balance was achieved, the model was considered suitable as a comparative baseline for quantifying various energy efficiency measures (EEM). EEM were identified by modelling component or system changes and or incorporation of alternate technologies that would result in a change in energy consumption for the facility. 6.4 Energy and Demand Saving Measures The building s heating and cooling system is controlled by wall mounted controls. Temperatures were generally set at 21 C throughout the building during the site visit. It is recognized that the building has heritage designation and as a result the likelihood of changing out windows and doors is minimal as the current windows and doors form part of the character of the facility. After using RETScreen 4 to model a number of options, the following potential energy conservation measures (EEM) were further considered and modelled for potential energy related cost savings: 1. Upgrade roof insulation; 2. Install programmable thermostats; 3. Upgrading incandescent and halogen lighting; 4. Upgrading exterior metal halide lighting to LED; 5. Upgrading Exit lighting to LED; 6. Installing programmable thermostats. The results of the analyses of these measures are discussed further as follows, first addressing those initiatives that are viable EEM and followed by a number of other 2013 Page 27

30 Khyber Building Building Condition & Energy Assessment Energy Assessment observations with respect to other initiatives that may be considered but would have longer payback periods Building Roof Insulation It was assumed that the roof is insulated to an R value of 20; however, there was no opportunity to confirm this information at the time of the site visit. We have considered, in the model, upgrading the roof insulation to R40. This EEM was calculated as an upgrade to existing rigid insulation if and when the roof is replaced. Installing insulation was modelled at a cost of $14,200, total energy savings are expected to be 27GJ for a cost savings of $613, resulting in a simple payback of 23.2 years. Savings SummaryBuilding Insulation Estimated Energy Description Savings (GJ) Roof Insulation Energy Type Estimated Cost Estimated Annual Savings Simple Payback (yrs) Not Recommended, payback period exceeds expected life of the equipment / component(s) Programmable Thermostats It was noted during the site assessment that the building is fitted with manually controlled thermostats which can be adjusted by any occupant of the building. Programmable thermostats would allow the facility to decrease the temperature of the building when it is not in use. Installing programmable thermostats in the building with a 3 degree setback at a cost of $1,000 was considered and modelled for an energy cost savings of over $1,330 and a simple payback of 0.75 years. Savings SummaryThermostats Estimated Estimated Simple Energy Energy Estimated Description Annual Payback Savings Type Cost Savings (yrs) (GJ) Thermostats 59 Oil $1000 $1, Page

31 Energy Assessment Khyber Building Building Condition & Energy Assessment Upgrading Light Fixtures The building currently has approximately thirteen 75 watt incandescent light fixtures which can be fitted with 23 watt compact fluorescent bulbs which has the potential of saving $165 at a cost of $ to produce a simple payback of 0.8 years. There are approximately sixteen 50 watt halogen fixtures in the building that can be fitted with 11 watt LED bulbs and has the potential of saving $ per year. At a cost of $50 per bulb the simple payback would be 5.2 years. In addition, the exterior lighting is two 150 watt metal halide wall packs that can be replaced with 20 watt LED fixtures at a cost of approximately $ with the potential of saving $64.00 per year. The simple payback would be 11.7 years. Considering that the lighting is assumed to be on eight hours per day and that the estimated life of LED bulbs is anywhere between twenty and fifty thousand hours these two EEM become feasible. It should be noted that as LED bulbs are a relatively new technology that the expected useful life is estimated. Savings SummaryThermostats Description Estimated Estimated Simple Energy Energy Estimated Annual Payback Savings Type Cost Savings (yrs) (GJ) Incandescent to CFL 1 Electricity $130 $ Bulbs Halogen to LED 1 Electricity $800 $ Bulbs Metal Halide to LED Bulbs 1 Electricity $750 $ Energy Efficiency Project Costs, Savings and Payback The following table summarizes the energy saving projects recommended for the Center. EEM Summary Description Estimated Energy Savings (GJ) Energy Type Estimated Cost Estimated Annual Savings Simple Payback (yrs) Thermostats 59 Oil $1000 $1, Incandescent to CFL 1 Electricity $130 $ Bulbs Halogen to LED 1 Electricity $800 $ Bulbs Metal Halide to LED Bulbs 1 Electricity $750 $ Page 29

32 Khyber Building Building Condition & Energy Assessment Energy Assessment The implementation of all of the above energy efficiency initiatives will cost HRM approximately $2,680 and produce a combined estimated annual energy savings of 62 GJ and $1,172 at 2012 energy prices. These cost estimates are budget level costs only and assume that HRM would be hiring contractors to carry out the work. It should be noted that the simple sum of the energy savings isn t always equal to the total savings when all the EEM are added together. Due to the interaction of systems on each other, energy savings results of combined EEM are often less than the simple sum of the individual EEM Discussion of Finding The facility currently has an energy utilization index (EUI) of 0.50 GJ/m 2 (equivalent gigajoules of annual energy consumption per square meter of conditioned space). This is below average for comparable buildings. Implementation of the recommended EEM has the potential to reduce building energy consumption by as much as 62 gigajoules for a EUI of 0.44 GJ/m 2, which is below average for similar buildings 3. These analyses are carried out assuming that the building s utilization will continue at the current level. Savings are based on the 2011 NS Power electricity rates, and the 2011 average annual fuel oil cost per liter. Additional savings and reduced paybacks will be realized as and when energy prices increase, and/or as building utilization increases, and/or as some of the following miscellaneous potential initiatives are undertaken. 6.6 Other Observations The energy assessment process identified a number of more minor energy conservation items that can be addressed through normal maintenance activities. These include a regular check and repair of the weather stripping and caulking around all doors and windows, ensuring that all water pipes (hot and cold) are insulated, and ensuring that all plugs and light switches on exterior walls are fitted with insulated gaskets. These, as well as better management of water consumption and plug loads discussed below, had too long a simple payback and are not considered feasible. It was reported that natural gas is available in the area. HRM may want to investigate the possibility of replacing the oil fired boilers with natural gas fired high efficiency boilers. There is the potential of saving on fuel costs. 3 Information provided by Energy Smart Data for New Brunswick Buildings Energy Utilization Index Page

33 Energy Assessment Khyber Building Building Condition & Energy Assessment Water Conservation Reducing hot water consumption can be accomplished by possibly using cooler water for some applications, and by maintaining flow restricting aerators on all sink taps. Reducing water consumption reduces the water bill for the facility, as well as the energy (water delivery) and water production costs for HRM. As the plumbing fixtures are replaced, HRM should plan to replace them with low flow types and consider installing waterless urinals Equipment Management The facility contains typical office and general building equipment including computers, printers, copiers, facsimile machines, refrigerators, coffee makers and other miscellaneous smaller equipment. It is recognized that in many instances, it is not possible or desirable to schedule the operation of such equipment with a view to solely minimizing electricity consumption or demand. However, it may be possible to reduce both energy consumption and demand even operating in these demanding situations, to further reduce costs to HRM. Staff should be engaged to identify potential savings through scheduling of equipment use, retirement of redundant equipment, and replacement of inefficient models. Over time, equipment should be replaced with Energy Star rated units, and it should also be sized to closely meet the precise needs of the users. It is recommended that the inventory of energy consuming equipment be reviewed with a view to removing unused equipment from the building, replacing little used equipment (copiers, for example) with fewer and more energy efficient models to reduce standby power consumption, and replacing older, inefficient equipment with more efficient models as and when replacement is required. It is noted that all of this equipment has an effect on the heating and cooling of the building. Energy savings from reducing equipment energy consumption (as with the lighting) usually produces less net energy saving than might often be anticipated Page 31

34 Khyber Building Building Condition & Energy Assessment Findings & Recommendations 7 Opinion of Probable Costs and FCI 7.1 Capital Plan Probable costs are for the major component replacement identified in the Capital Plan and Probable Cost Estimate and can be defined as: Components that are the responsibility of the Property Owner, For which major repair or replacement costs are anticipated to be incurred during the evaluation period, and For which costs of repair or replacement will not be covered as part of the annual maintenance budgets. The estimated costs are based on observations made during the day of the site assessment on December 19, Quantities and areas are based on field observations and or site interviews. Quantity surveying or site measurements were beyond the scope of this assessment. Replacement and repair costs are approximate and based on industry standards. It is recommended that quotations from qualified contractors be obtained before any specific item identified for replacement is repaired or replaced. The probable costs have been entered into the EECPT which provides a list of major components by system. The EECPT also provides a probable cost table identifying the anticipated cost by year and calculates the corresponding Facility Condition index, (FCI). The EECPT takes into consideration the hard costs as well as incorporates soft costs on an annual basis. The EECPT also incorporates the energy assessment findings and incorporates those EEM which are recommended and compares the traditional as like as kind component replacement building condition with the incorporation of EEM over the evaluation term. The basic EECPT input and output sheets are presented in Appendix A. The populated version of this base Capital Plan has been provided, along with additional instruction and advice, to HRM separately. It forms the main product of this project and is supported by this document which discusses the facilities condition at a specific time. 7.2 Capital Plan Recommendations The assessment of the Khyber Building property and building were completed on December 19, At the time of the assessment the site appeared to be in poor overall condition and the building appeared to be poorly maintained. It is recommended that exterior envelope, roofing, interior finishes, washrooms and the mechanical and electrical systems be monitored and replaced as indicated in the capital plan. Page

35 Findings & Recommendations Khyber Building Building Condition & Energy Assessment 7.3 Energy Audit Recommendations (ECM) The following table summarizes the energy saving projects recommended for the Center. EEM Summary Description Estimated Energy Savings (GJ) Energy Type Estimated Cost Estimated Annual Savings Simple Payback (yrs) Thermostats 59 Oil $1000 $1, Incandescent to CFL 1 Electricity $130 $ Bulbs Halogen to LED 1 Electricity $800 $ Bulbs Metal Halide to LED Bulbs 1 Electricity $750 $ The implementation of all of the above energy efficiency initiatives will cost HRM approximately $2,680 and produce a combined estimated annual energy savings of 62 GJ and $1,172 at 2012 energy prices. These cost estimates are budget level costs only and assume that HRM would be hiring contractors to carry out the work. It should be noted that the simple sum of the energy savings isn t always equal to the total savings when all the EEM are added together. Due to the interaction of systems on each other, energy savings results of combined EEM are often less than the simple sum of the individual EEM. 7.4 Facility Condition Index (FCI) Definition The Facility Condition Index (FCI) is a metric often used for benchmarking in the real estate industry. It is used to assess the current and projected condition of a building asset. By definition, the FCI is defined as the ratio of the Accumulated Deferred Maintenance (ADM) costs to the Current Building Replacement Value (CRV). The FCI can be defined in terms of the following equation: Facility Condition Index (FCI) = Accumulated Deferred Maintenance (ADM) Current Building Replacement Value (CRV) Building condition is often defined in terms of the FCI. Generally accepted industry standards for FCI s are as follows: FCI Remark 05% excellent to good condition 510% good to fair condition >10% fair to poor condition 2013 Page 33

36 Khyber Building Building Condition & Energy Assessment Findings & Recommendations Overall the lower the FCI the better the condition of the building and the lower the risk that an unexpected recapitalization issue will arise which could result in a specific building shutdown or restricted operation. As an FCI increases, the building is in increasingly poor condition as the backlog of poorly operating or inoperable components in need of replacement rises. An increasing FCI, or backlog of deferred maintenance, impacts not only the capital requirement but leads to increased operation costs especially through emergency maintenance costs. 7.5 Anticipated FCI graph The EECPT has the ability to project an FCI for a given building taking into account the anticipated probable costs by year over the evaluation period and offsetting the requirement by a proposed funding allowance. Multiple funding streams can be modelled. Typically a target FCI would be determined and the funding requirement calculated to meet the preferred FCI value. The EECPT also graphs the outcomes of incorporating energy efficiency projects and overlays the finding on the FCI graph to allow for easy comparison of the two recapitalization strategies. Incorporating energy efficiencies allows HRM to potentially reinvest the operation savings gained from energy efficiency measures back into capital projects to better the building s condition without increasing the overall cost of ownership. In the event that more than one energy efficiency project is recommended, each individual project has been entered into the EECPT. The individual savings for each EEM has been identified however the percentage to apply to future capital projects has been discounted to avoid overstating the net effect of combined savings. The discount percentage is based on the net combined savings in comparison to the sum total savings. Page

37 Projected Facility Condition Index of Khyber Building Thursday, January 31, % $0 $0 60% $ 50% $ FCI 40% 30% $1 20% $1 10% $1 0% Year Target FCI Building FCI Building Eff FCI Capital Funding $1

38 Khyber Building Building Condition & Energy Assessment Findings and Recommendations 2013 Page 36

39 Conclusion Khyber Building Building Condition & Energy Assessment 8 Limitations This report may not be relied upon by any other person or entity without the expressed written consent of Capital Management Engineering Limited and Halifax Regional Municipality. Any other parties that rely or make decisions based on this report do so solely at their own risk. Capital Management Engineering makes no warranties, whether written or oral, statutory, expressed or implied, in connection with the services provided, including, without limitation, any warranty of fitness for any particular purpose or use with respect to the property or building components and systems. Capital Management Engineering s cumulative liability for all claims relating to this report or the services provided shall not exceed the total amount of all fees actually paid for this report. The opinions of cost are intended for global budgeting purposes only. Actual costs for recommended work can only be determined after preparation of tender documents, detailing the site restrictions, effects and or restrictions on ongoing operations of the building and requirements associated with the construction schedule. The recommendations made in this report are based on the visual observations made by the assessor during the site assessment and are limited to the areas of the site and building that were observed and accessible during the assessment. Concealed, inaccessible and unobserved areas may be in a different condition than what is reported herein. During the site assessment the assessor will attempt to verify any additional information provided by the site contact. However, in many cases the information will be relied upon and presented without field verification. 9 Closure Capital Management Engineering Limited is pleased to present this report and the accompanying electronic version of the base capital plan to HRM. The findings presented suggest a strategic long term view to managing municipal assets and will provide HRM with the tools to support the development and definition of a strategy for the constituents of HRM and Khyber Building Khyber Building Final 2013 Page 37

40 Appendix A Khyber Building Building Condition & Energy Assessment Appendix A Capital Plan 2013 Page A

41 General Building Information Worksheet Building Name Khyber Building Civic Address 1588 Barrington Street Municipality, City Halifax Primary Use / Building Type Office Primary Units Square Foot Building Area Square Foot 10,223 Replacement Cost per Square Foot $ 334 Building Replacement Cost $ 3,418,757 Year of Construction or Major Renovation 1888 Start Year 2013 Current Year 2013 Target FCI 10% Soft Costs (%) 0% Interest Rate 3.50% Inflation Rate 2.50% Asset Definition Columns 1 Site Work (Category 1) 2 Architecture, Exterior (Category 2) 3 Roof (Category 3) 4 Structure (Category 4) 5 Architecture, Interior (Category 5) 6 Mechanical (Category 6) 7 Electrical (Category 7) 8 Life Safety / Fire Suppression (Category 8) 9 Specialty Systems (Category 9)

42 Projected Facility Condition Index of Khyber Building Thursday, January 31, % $0 $0 60% $ 50% $ FCI 40% 30% $1 20% $1 10% $1 0% Year Target FCI Building FCI Building Eff FCI Capital Funding $1

43 Cash Flow Summary for Khyber Building Thursday, January 31, 2013 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 Funding $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Year

44 Khyber Building Project Output Sheet for Period from 2013 to 2018 Component Structural Components Interior Finishes Structural Components Assessment Plumbing Piping Exterior Envelope Detailed Study Exterior Brick and Sandstone Recapitalization Detail Allowance for structural repairs pending completion of structural assessment Budgetary allowance for replacement and or extensive refurbishment of the interior finishes Allowance for structural assessment of current condition and if required provide recommendations for additional repairs Immediate repair allowance to inspect and repair drainage piping as required Allowance for detailed study of condition of exterior bearing masonry and architectural sandstone accents to determine repair/restoration procedures and cost estimates Allowance for repairs/restoration pending on results of detailed study Year of Replacement Expected Useful Life (EUL) Current Age Life Safety O&M Impact Decision Parameters Impact to Business Utility Vision Total Total Cost Yes Yes Yes High Yes 5 $ 191, Yes Yes Yes High Yes 5 $ 1,183, Yes Yes No High Yes 4 $ 10, Yes No Yes High Yes 4 $ 1, No Yes Yes High Yes 4 $ 7, No Yes Yes High Yes 4 $ 230,000 Glazing Third Floor Refurbishment allowance for third floor windows No Yes Yes High Yes 4 $ 30,000 Modified Bitumen Membrane Replace Replacement of asphalt shingled roofing No Yes Yes High No 3 $ 31,200 Washrooms Men's and Women's Allowance for replacement of fixtures, partitions and finishes No Yes Yes High No 3 $ 50,000 Accessible Washroom Allowance to reinstate washroom to operation No Yes Yes High No 3 $ 5,000 Eavestroughs and Downspouts Replacement expected to be required No Yes No Normal Yes 2 $ 2,500 Fuel Oil Tanks Cyclical end of life replacement during the evaluation period No No Yes Normal Yes 2 $ 3,000 Thermostats as per recommendations from Energy Audit NA No Yes NA High NA 2 $ 1,000 Incandescent to CFL Bulbs as per recommendations from Energy Audit NA No Yes NA High NA 2 $ 130 Halogen to LED Bulbs as per recommendations from Energy Audit NA No Yes NA High NA 2 $ 800 Metal Halide to LED Bulbs as per recommendations from Energy Audit NA No Yes NA High NA 2 $ 750 Main and Secondary Panels Allowance for replacement of main breaker and secondary panels as required No No Yes Normal No 1 $ 3,500 Branch Wiring Allowance for replacement No No Yes Normal No 1 $ 15,000 Lighting Allowance for replacement No No Yes Normal No 1 $ 23,002

45 Khyber Building Energy Audit Worksheet Project Year to Complete Energy Project Expected Useful Life (EUL) Capital Plan Item Cost of Project Payback Years Savings Realized Per Year Based on Project Completion % to Apply to Capital Projects Going forward Total $ Available Per Year Year Funding from Savings Becomes Available Thermostats $ 1, $ 1, % $ 1, Incandescent to CFL Bulbs $ $ % $ Halogen to LED Bulbs $ $ % $ Metal Halide to LED Bulbs $ $ % $

46 Building Component Summary Worksheet Khyber Building Site Work (Category 1) Component Building Mounted Lighting Recapitalization Detail Replacement of building mounted lighting at end of remaining useful life Year of Installation or Repair Expected Useful Life (EUL) Current Age Theoretical Remaining Useful Life (RUL) Useful Life Corrected For Observations Year of Replacement Life Safety O&M Impact Decision Parameters Impact to Business Utility Vision Total Type of event (Cyclic/Single) Unit Quantity Unit Cost Total Cost No No No Normal Yes 1 Cyclical Ea 2 $ 1,500 $ 3,000 Architecture, Exterior (Category 2) Exterior Envelope Detailed Study Exterior Brick and Sandstone Allowance for detailed study of condition of exterior bearing masonry and architectural sandstone accents to determine repair/restoration procedures and cost estimates Allowance for repairs/restoration pending on results of detailed study No Yes Yes High Yes 4 Single LS 1 $ 7,500 $ 7, No Yes Yes High Yes 4 Cyclical LS 1 $ 230,000 $ 230,000 Glazing Third Floor Refurbishment allowance for third floor windows No Yes Yes High Yes 4 Cyclical LS 1 $ 30,000 $ 30,000 Glazing Main and Second Floor Cyclical refurbishment allowance based on window refurbishment completed in No Yes Yes High Yes 4 Cyclical LS 1 $ 74,000 $ 74,000 Main Entrance Doors Refurbishment allowance No Yes Yes Normal Yes 3 Single Ea 1 $ 5,000 $ 5,000 Secondary Entrance/Exit Door End of remaining useful life replacement No Yes No Normal Yes 2 Cyclical Ea 1 $ 1,450 $ 1,450 Roof (Category 3) Modified Bitumen Membrane Replace Modified Bitumen Membrane Repair Replacement of asphalt shingled roofing No Yes Yes High No 3 Cyclical ft² 2,600 $ $ 31,200 Allowance for repairs No Yes Yes Normal No 2 Cyclical LS 1 $ 8,500 $ 8,500 Eavestroughs and Downspouts Replacement expected to be required No Yes No Normal Yes 2 Cyclical LS 1 $ 2,500 $ 2,500 Structure (Category 4) Structural Components Assessment Structural Components Allowance for structural assessment of current condition and if required provide recommendations for additional repairs Allowance for structural repairs pending completion of structural assessment Yes Yes No High Yes 4 Cyclical LS 1 $ 10,000 $ 10, Yes Yes Yes High Yes 5 Cyclical ft² 11,098 $ $ 191,441 Architecture, Interior (Category 5) Interior Finishes Budgetary allowance for replacement and or extensive refurbishment of the interior finishes Yes Yes Yes High Yes 5 Cyclical ft² 11,098 $ $ 1,183,713

47 Building Component Summary Worksheet Khyber Building Component Mechanical (Category 6) Recapitalization Detail Year of Installation or Repair Expected Useful Life (EUL) Current Age Theoretical Remaining Useful Life (RUL) Useful Life Corrected For Observations Year of Replacement Life Safety O&M Impact Decision Parameters Impact to Business Utility Vision Total Type of event (Cyclic/Single) Unit Quantity Unit Cost Total Cost Domestic Water Piping Allowance for repairs No Yes Yes Normal No 2 Cyclical LS 1 $ 6,000 $ 6,000 Sanitary Piping Allowance for repairs No Yes Yes Normal No 2 Cyclical LS 1 $ 8,500 $ 8,500 Washrooms Men's and Women's Allowance for replacement of fixtures, partitions and finishes No Yes Yes High No 3 Cyclical Ea 2 $ 25,000 $ 50,000 Accessible Washroom Allowance to reinstate washroom to operation No Yes Yes High No 3 Cyclical Ea 1 $ 5,000 $ 5,000 Kerr Comet Boilers Replacement at end of remaining useful life No Yes Yes High No 3 Cyclical Ea 2 $ 7,500 $ 15,000 Fuel Oil Tanks Cyclical end of life replacement during the evaluation period No No Yes Normal Yes 2 Cyclical Ea 2 $ 1,500 $ 3,000 Plumbing Piping Immediate repair allowance to inspect and repair drainage piping as required Yes No Yes High Yes 4 Cyclical LS 1 $ 1,250 $ 1,250 Domestic Hot Water Tank Allowance for cyclical replacement No No Yes Normal Yes 2 Cyclical Ea 1 $ 1,500 $ 1,500 Electrical (Category 7) Main and Secondary Panels Allowance for replacement of main breaker and secondary panels as required No No Yes Normal No 1 Cyclical LS 1 $ 3,500 $ 3,500 Branch Wiring Allowance for replacement No No Yes Normal No 1 Cyclical LS 1 $ 15,000 $ 15,000 Lighting Allowance for replacement No No Yes Normal No 1 Cyclical ft² 10,223 $ 2.25 $ 23,002 Life Safety / Fire Suppression (Category 8) Fire Alarm Panel End of life replacement Yes No Yes High Yes 4 Cyclical Ea 1 $ 5,000 $ 5,000 Exit and Emergency Lighting Allowance for replacement at end of remaining useful life Yes No Yes High Yes 4 Cyclical ft² 11,098 $ $ 11,653 Fire Extinguishers Replacement as part of maintenance budgets Yes No Yes High Yes 4 Cyclical Ea $ Sprinkler System Allowance for replacement at end of remaining useful life Yes No Yes High Yes 4 Cyclical ft² 11,098 $ 3.50 $ 38,843 Specialty Systems (Category 9) Energy Capital Replacements Thermostats as per recommendations from Energy Audit NA 20 NA NA NA 2013 No Yes NA High NA 2 Cyclical LS 1 $ 1, $ 1,000 Incandescent to CFL Bulbs as per recommendations from Energy Audit NA 20 NA NA NA 2013 No Yes NA High NA 2 Cyclical LS 1 $ $ 130 Halogen to LED Bulbs as per recommendations from Energy Audit NA 20 NA NA NA 2013 No Yes NA High NA 2 Cyclical LS 1 $ $ 800 Metal Halide to LED Bulbs as per recommendations from Energy Audit NA 20 NA NA NA 2013 No Yes NA High NA 2 Cyclical LS 1 $ $ 750

48 Khyber Building Cash Flow Analysis Output Sheet Component Site Work (Category 1) Recapitalization Detail Replacement of building mounted lighting at end of remaining Building Mounted Lighting useful life Site Work (Category 1) Summary Excluding Projects Replaced by Energy Efficiency Improvements Type of event (cyclic/single) Year of Installation or Repair Expected Useful Life (EUL) Useful Life Corrected For Observations Year of Replacement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Unit Cost Total Cost Cyclical $ 1,500 $ 3,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Site Work (Category 1) Summary $ $ $ $ $ $ $ $ $ $ Architecture, Exterior (Category 2) Exterior Envelope Detailed Study Allowance for detailed study of condition of exterior bearing masonry and architectural sandstone accents to determine repair/restoration procedures and cost estimates Single $ 7,500 $ 7,500 $ 7,500 $ $ $ $ $ $ $ $ $ Exterior Brick and Sandstone Allowance for repairs/restoration pending on results of detailed study Cyclical $ 230,000 $ 230,000 $ 230,000 $ $ $ $ $ $ $ $ $ Glazing Third Floor Refurbishment allowance for third floor windows Cyclical $ 30,000 $ 30,000 $ 30,000 $ $ $ $ $ $ $ $ $ Glazing Main and Second Floor Cyclical refurbishment allowance based on window refurbishment completed in 2009 Cyclical $ 74,000 $ 74,000 $ $ $ $ $ $ $ $ $ $ Main Entrance Doors Refurbishment allowance Single $ 5,000 $ 5,000 $ $ $ $ $ $ $ $ $ 5,000 $ Secondary Entrance/Exit Door End of remaining useful life replacement Cyclical $ 1,450 $ 1,450 $ $ $ $ $ $ $ $ 1,450 $ $ Architecture, Exterior (Category 2) Summary Excluding Projects Replaced by Energy Efficiency Improvements Architecture, Exterior (Category 2) Summary Roof (Category 3) $ 267,500 $ $ $ $ $ $ $ 1,450 $ 5,000 $ $ 267,500 $ $ $ $ $ $ $ 1,450 $ 5,000 $ Modified Bitumen Membrane Replace Replacement of asphalt shingled roofing Cyclical $ 12 $ 31,200 $ $ $ $ $ $ 31,200 $ $ $ $ Modified Bitumen Membrane Repair Allowance for repairs Cyclical $ 8,500 $ 8,500 $ $ $ $ $ $ $ $ $ $ Eavestroughs and Downspouts Replacement expected to be required Cyclical $ 2,500 $ 2,500 $ 2,500 $ $ $ $ $ $ $ $ $ Roof (Category 3) Summary Excluding Projects Replaced by Energy Efficiency Improvements $ 2,500 $ $ $ $ $ 31,200 $ $ $ $ Roof (Category 3) Summary $ 2,500 $ $ $ $ $ 31,200 $ $ $ $ Structure (Category 4) Structural Components Assessment Structural Components Structure (Category 4) Summary Excluding Projects Replaced by Energy Efficiency Improvements Allowance for structural assessment of current condition and if required provide recommendations for additional repairs Allowance for structural repairs pending completion of structural assessment Cyclical $ 10,000 $ 10,000 $ 10,000 $ $ $ $ $ $ $ $ $ Cyclical $ 17 $ 191,441 $ 191,441 $ $ $ $ $ $ $ $ $ $ 201,441 $ $ $ $ $ $ $ $ $ Structure (Category 4) Summary $ 201,441 $ $ $ $ $ $ $ $ $ Architecture, Interior (Category 5) Interior Finishes Architecture, Interior (Category 5) Summary Excluding Projects Replaced by Energy Efficiency Improvements Architecture, Interior (Category 5) Summary Budgetary allowance for replacement and or extensive refurbishment of the interior finishes Cyclical $ 107 ######## $ 1,183,713 $ $ $ $ $ $ $ $ $ $ 1,183,713 $ $ $ $ $ $ $ $ $ $ 1,183,713 $ $ $ $ $ $ $ $ $

49 Khyber Building Cash Flow Analysis Output Sheet Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Component Site Work (Category 1) Recapitalization Detail Replacement of building mounted lighting at end of remaining Building Mounted Lighting useful life Site Work (Category 1) Summary Excluding Projects Replaced by Energy Efficiency Improvements Site Work (Category 1) Summary Architecture, Exterior (Category 2) Type of event (cyclic/single) Year of Installation or Repair Expected Useful Life (EUL) Useful Life Corrected For Observations Year of Replacement Unit Cost Total Cost Cyclical $ 1,500 $ 3, $ $ $ $ $ $ $ 3,000 $ $ $ $ $ $ $ $ $ $ 3,000 $ $ $ $ $ $ $ $ $ $ 3,000 $ $ $ Exterior Envelope Detailed Study Allowance for detailed study of condition of exterior bearing masonry and architectural sandstone accents to determine repair/restoration procedures and cost estimates Single $ 7,500 $ 7,500 $ $ $ $ $ $ $ $ $ $ Exterior Brick and Sandstone Allowance for repairs/restoration pending on results of detailed study Cyclical $ 230,000 $ 230,000 Glazing Third Floor Refurbishment allowance for third floor windows Cyclical $ 30,000 $ 30,000 Glazing Main and Second Floor Cyclical refurbishment allowance based on window refurbishment completed in 2009 Cyclical $ 74,000 $ 74,000 Main Entrance Doors Refurbishment allowance Single $ 5,000 $ 5,000 Secondary Entrance/Exit Door End of remaining useful life replacement Cyclical $ 1,450 $ 1,450 Architecture, Exterior (Category 2) Summary Excluding Projects Replaced by Energy Efficiency Improvements Architecture, Exterior (Category 2) Summary Roof (Category 3) Modified Bitumen Membrane Replace Replacement of asphalt shingled roofing Cyclical $ 12 $ 31,200 Modified Bitumen Membrane Repair Allowance for repairs Cyclical $ 8,500 $ 8,500 Eavestroughs and Downspouts Replacement expected to be required Cyclical $ 2,500 $ 2,500 Roof (Category 3) Summary Excluding Projects Replaced by Energy Efficiency Improvements Roof (Category 3) Summary Structure (Category 4) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 74,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 74,000 $ $ $ $ $ $ $ $ $ $ 74,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Structural Components Assessment Structural Components Structure (Category 4) Summary Excluding Projects Replaced by Energy Efficiency Improvements Structure (Category 4) Summary Architecture, Interior (Category 5) Interior Finishes Architecture, Interior (Category 5) Summary Excluding Projects Replaced by Energy Efficiency Improvements Architecture, Interior (Category 5) Summary Allowance for structural assessment of current condition and if required provide recommendations for additional repairs Allowance for structural repairs pending completion of structural assessment Budgetary allowance for replacement and or extensive refurbishment of the interior finishes Cyclical $ 10,000 $ 10,000 Cyclical $ 17 $ 191,441 Cyclical $ 107 ######## $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

50 Khyber Building Cash Flow Analysis Output Sheet Year 21 Year 22 Year 23 Year 24 Year 25 Component Site Work (Category 1) Recapitalization Detail Replacement of building mounted lighting at end of remaining Building Mounted Lighting useful life Site Work (Category 1) Summary Excluding Projects Replaced by Energy Efficiency Improvements Site Work (Category 1) Summary Architecture, Exterior (Category 2) Type of event (cyclic/single) Year of Installation or Repair Expected Useful Life (EUL) Useful Life Corrected For Observations Year of Replacement Unit Cost Total Cost Cyclical $ 1,500 $ 3, $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Exterior Envelope Detailed Study Allowance for detailed study of condition of exterior bearing masonry and architectural sandstone accents to determine repair/restoration procedures and cost estimates Single $ 7,500 $ 7,500 $ $ $ $ $ Exterior Brick and Sandstone Allowance for repairs/restoration pending on results of detailed study Cyclical $ 230,000 $ 230,000 Glazing Third Floor Refurbishment allowance for third floor windows Cyclical $ 30,000 $ 30,000 Glazing Main and Second Floor Cyclical refurbishment allowance based on window refurbishment completed in 2009 Cyclical $ 74,000 $ 74,000 Main Entrance Doors Refurbishment allowance Single $ 5,000 $ 5,000 Secondary Entrance/Exit Door End of remaining useful life replacement Cyclical $ 1,450 $ 1,450 Architecture, Exterior (Category 2) Summary Excluding Projects Replaced by Energy Efficiency Improvements Architecture, Exterior (Category 2) Summary Roof (Category 3) Modified Bitumen Membrane Replace Replacement of asphalt shingled roofing Cyclical $ 12 $ 31,200 Modified Bitumen Membrane Repair Allowance for repairs Cyclical $ 8,500 $ 8,500 Eavestroughs and Downspouts Replacement expected to be required Cyclical $ 2,500 $ 2,500 Roof (Category 3) Summary Excluding Projects Replaced by Energy Efficiency Improvements Roof (Category 3) Summary Structure (Category 4) $ 230,000 $ $ $ $ $ 30,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 260,000 $ $ $ $ $ 260,000 $ $ $ $ $ $ $ $ $ $ 8,500 $ $ $ $ $ $ $ $ $ $ 8,500 $ $ $ $ $ 8,500 $ $ $ $ Structural Components Assessment Structural Components Structure (Category 4) Summary Excluding Projects Replaced by Energy Efficiency Improvements Structure (Category 4) Summary Architecture, Interior (Category 5) Interior Finishes Architecture, Interior (Category 5) Summary Excluding Projects Replaced by Energy Efficiency Improvements Architecture, Interior (Category 5) Summary Allowance for structural assessment of current condition and if required provide recommendations for additional repairs Allowance for structural repairs pending completion of structural assessment Budgetary allowance for replacement and or extensive refurbishment of the interior finishes Cyclical $ 10,000 $ 10,000 Cyclical $ 17 $ 191,441 Cyclical $ 107 ######## $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

51 Khyber Building Cash Flow Analysis Output Sheet Component Mechanical (Category 6) Recapitalization Detail Type of event (cyclic/single) Year of Installation or Repair Expected Useful Life (EUL) Useful Life Corrected For Observations Year of Replacement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Unit Cost Total Cost Domestic Water Piping Allowance for repairs Cyclical $ 6,000 $ 6,000 $ $ $ $ $ $ $ $ 6,000 $ $ Sanitary Piping Allowance for repairs Cyclical $ 8,500 $ 8,500 $ $ $ $ $ $ $ $ 8,500 $ $ Washrooms Men's and Women's Allowance for replacement of fixtures, partitions and finishes Cyclical $ 25,000 $ 50,000 $ 50,000 $ $ $ $ $ $ $ $ $ Accessible Washroom Allowance to reinstate washroom to operation Cyclical $ 5,000 $ 5,000 $ 5,000 $ $ $ $ $ $ $ $ $ Kerr Comet Boilers Replacement at end of remaining useful life Cyclical $ 7,500 $ 15,000 $ $ $ $ $ $ $ $ $ $ Fuel Oil Tanks Cyclical end of life replacement during the evaluation period Cyclical $ 1,500 $ 3,000 $ $ 3,000 $ $ $ $ $ $ $ $ Plumbing Piping Immediate repair allowance to inspect and repair drainage piping as required Cyclical $ 1,250 $ 1,250 $ 1,250 $ $ $ $ $ $ $ $ $ Domestic Hot Water Tank Allowance for cyclical replacement Cyclical $ 1,500 $ 1,500 $ $ $ $ $ $ $ $ $ $ Mechanical (Category 6) Summary Excluding Projects Replaced by Energy Efficiency Improvements $ 56,250 $ 3,000 $ $ $ $ $ $ 14,500 $ $ Mechanical (Category 6) Summary $ 56,250 $ 3,000 $ $ $ $ $ $ 14,500 $ $ Electrical (Category 7) Main and Secondary Panels Allowance for replacement of main breaker and secondary panels as required Cyclical $ 3,500 $ 3,500 $ $ $ $ $ 3,500 $ $ $ $ $ Branch Wiring Allowance for replacement Cyclical $ 15,000 $ 15,000 $ $ $ $ $ 15,000 $ $ $ $ $ Lighting Allowance for replacement Cyclical $ 2 $ 23,002 $ 23,002 $ $ $ $ $ $ $ $ $ Electrical (Category 7) Summary Excluding Projects Replaced by Energy Efficiency Improvements $ 23,002 $ $ $ $ 18,500 $ $ $ $ $ Electrical (Category 7) Summary $ 23,002 $ $ $ $ 18,500 $ $ $ $ $ Life Safety / Fire Suppression (Category 8) Fire Alarm Panel End of life replacement Cyclical $ 5,000 $ 5,000 $ $ $ $ $ $ $ $ $ $ 5,000 Exit and Emergency Lighting Allowance for replacement at end of remaining useful life Cyclical $ 1 $ 11,653 $ $ $ $ $ $ $ $ $ $ Fire Extinguishers Replacement as part of maintenance budgets Cyclical $ $ $ $ $ $ $ $ $ $ $ $ Sprinkler System Allowance for replacement at end of remaining useful life Cyclical $ 4 $ 38,843 $ $ $ $ $ $ $ $ 38,843 $ $ Life Safety / Fire Suppression (Category 8) Summary Excluding Projects Replaced by Energy Efficiency Improvements Life Safety / Fire Suppression (Category 8) Summary Energy Capital Replacements $ $ $ $ $ $ $ $ 38,843 $ $ 5,000 $ $ $ $ $ $ $ $ 38,843 $ $ 5,000 <<Thermostats>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 1,000 $ 1,000 $ 1,000 $ $ $ $ $ $ $ $ $ <<Incandescent to CFL Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 130 $ 130 $ 130 $ $ $ $ $ $ $ $ $ <<Halogen to LED Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 800 $ 800 $ 800 $ $ $ $ $ $ $ $ $ <<Metal Halide to LED Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 750 $ 750 $ 750 $ $ $ $ $ $ $ $ $ Energy Capital Replacements Summary Excluding Projects Replaced by Energy Efficiency Improvements $ $ $ $ $ $ $ $ $ $ Energy Capital Replacements Summary $ 2,680 $ $ $ $ $ $ $ $ $

52 Khyber Building Cash Flow Analysis Output Sheet Component Mechanical (Category 6) Recapitalization Detail Type of event (cyclic/single) Year of Installation or Repair Expected Useful Life (EUL) Useful Life Corrected For Observations Year of Replacement Domestic Water Piping Allowance for repairs Cyclical $ 6,000 $ 6,000 Sanitary Piping Allowance for repairs Cyclical $ 8,500 $ 8,500 Washrooms Men's and Women's Allowance for replacement of fixtures, partitions and finishes Cyclical $ 25,000 $ 50,000 Accessible Washroom Allowance to reinstate washroom to operation Cyclical $ 5,000 $ 5,000 Kerr Comet Boilers Replacement at end of remaining useful life Cyclical $ 7,500 $ 15,000 Fuel Oil Tanks Cyclical end of life replacement during the evaluation period Cyclical $ 1,500 $ 3,000 Plumbing Piping Immediate repair allowance to inspect and repair drainage piping as required Unit Cost Total Cost Cyclical $ 1,250 $ 1,250 Domestic Hot Water Tank Allowance for cyclical replacement Cyclical $ 1,500 $ 1,500 Mechanical (Category 6) Summary Excluding Projects Replaced by Energy Efficiency Improvements Mechanical (Category 6) Summary Electrical (Category 7) Main and Secondary Panels Allowance for replacement of main breaker and secondary panels as required Cyclical $ 3,500 $ 3,500 Branch Wiring Allowance for replacement Cyclical $ 15,000 $ 15,000 Lighting Allowance for replacement Cyclical $ 2 $ 23,002 Electrical (Category 7) Summary Excluding Projects Replaced by Energy Efficiency Improvements Electrical (Category 7) Summary Life Safety / Fire Suppression (Category 8) Fire Alarm Panel End of life replacement Cyclical $ 5,000 $ 5,000 Exit and Emergency Lighting Allowance for replacement at end of remaining useful life Cyclical $ 1 $ 11,653 Fire Extinguishers Replacement as part of maintenance budgets Cyclical $ $ Sprinkler System Allowance for replacement at end of remaining useful life Cyclical $ 4 $ 38,843 Life Safety / Fire Suppression (Category 8) Summary Excluding Projects Replaced by Energy Efficiency Improvements Life Safety / Fire Suppression (Category 8) Summary Energy Capital Replacements <<Thermostats>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 1,000 $ 1,000 <<Incandescent to CFL Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 130 $ 130 <<Halogen to LED Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 800 $ 800 <<Metal Halide to LED Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 750 $ 750 Energy Capital Replacements Summary Excluding Projects Replaced by Energy Efficiency Improvements Energy Capital Replacements Summary Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 15,000 $ $ $ $ $ $ $ $ $ $ $ $ 3,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,500 $ $ $ $ $ $ $ $ $ $ 1,500 $ $ $ $ 15,000 $ $ 3,000 $ $ $ $ 1,500 $ $ $ $ 15,000 $ $ 3,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 11,653 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 11,653 $ $ $ $ $ $ $ $ $ $ 11,653 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

53 Khyber Building Cash Flow Analysis Output Sheet Component Mechanical (Category 6) Recapitalization Detail Type of event (cyclic/single) Year of Installation or Repair Expected Useful Life (EUL) Useful Life Corrected For Observations Year of Replacement Domestic Water Piping Allowance for repairs Cyclical $ 6,000 $ 6,000 Sanitary Piping Allowance for repairs Cyclical $ 8,500 $ 8,500 Washrooms Men's and Women's Allowance for replacement of fixtures, partitions and finishes Cyclical $ 25,000 $ 50,000 Accessible Washroom Allowance to reinstate washroom to operation Cyclical $ 5,000 $ 5,000 Kerr Comet Boilers Replacement at end of remaining useful life Cyclical $ 7,500 $ 15,000 Fuel Oil Tanks Cyclical end of life replacement during the evaluation period Cyclical $ 1,500 $ 3,000 Plumbing Piping Immediate repair allowance to inspect and repair drainage piping as required Unit Cost Total Cost Cyclical $ 1,250 $ 1,250 Domestic Hot Water Tank Allowance for cyclical replacement Cyclical $ 1,500 $ 1,500 Mechanical (Category 6) Summary Excluding Projects Replaced by Energy Efficiency Improvements Mechanical (Category 6) Summary Electrical (Category 7) Main and Secondary Panels Allowance for replacement of main breaker and secondary panels as required Cyclical $ 3,500 $ 3,500 Branch Wiring Allowance for replacement Cyclical $ 15,000 $ 15,000 Lighting Allowance for replacement Cyclical $ 2 $ 23,002 Electrical (Category 7) Summary Excluding Projects Replaced by Energy Efficiency Improvements Electrical (Category 7) Summary Life Safety / Fire Suppression (Category 8) Fire Alarm Panel End of life replacement Cyclical $ 5,000 $ 5,000 Exit and Emergency Lighting Allowance for replacement at end of remaining useful life Cyclical $ 1 $ 11,653 Fire Extinguishers Replacement as part of maintenance budgets Cyclical $ $ Sprinkler System Allowance for replacement at end of remaining useful life Cyclical $ 4 $ 38,843 Life Safety / Fire Suppression (Category 8) Summary Excluding Projects Replaced by Energy Efficiency Improvements Life Safety / Fire Suppression (Category 8) Summary Energy Capital Replacements <<Thermostats>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 1,000 $ 1,000 <<Incandescent to CFL Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 130 $ 130 <<Halogen to LED Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 800 $ 800 <<Metal Halide to LED Bulbs>> as per recommendations from Energy Audit Cyclical NA 20 NA 2013 $ 750 $ 750 Energy Capital Replacements Summary Excluding Projects Replaced by Energy Efficiency Improvements Energy Capital Replacements Summary Year 21 Year 22 Year 23 Year 24 Year $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 23,002 $ $ $ $ $ 23,002 $ $ $ $ $ 23,002 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,000 $ $ $ $ $ 130 $ $ $ $ $ 800 $ $ $ $ $ 750 $ $ $ $ $ $ $ $ $ $ 2,680 $ $ $ $

54 Khyber Building Cash Flow Summary Output Sheet Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Khyber Building Site Work (Category 1) $ $ $ $ $ $ $ $ $ $ Architecture, Exterior (Category 2) $ 267,500 $ $ $ $ $ $ $ 1,450 $ 5,000 $ Roof (Category 3) $ 2,500 $ $ $ $ $ 31,200 $ $ $ $ Structure (Category 4) $ 201,441 $ $ $ $ $ $ $ $ $ Architecture, Interior (Category 5) $ 1,183,713 $ $ $ $ $ $ $ $ $ Mechanical (Category 6) $ 56,250 $ 3,000 $ $ $ $ $ $ 14,500 $ $ Electrical (Category 7) $ 23,002 $ $ $ $ 18,500 $ $ $ $ $ Life Safety / Fire Suppression (Category 8) $ $ $ $ $ $ $ $ 38,843 $ $ 5,000 Specialty Systems (Category 9) $ $ $ $ $ $ $ $ $ $ TOTAL for Khyber Building $ 1,734,405 $ 3,000 $ $ $ 18,500 $ 31,200 $ $ 54,793 $ 5,000 $ 5,000 Facility Condition Calculation Output Sheet Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Khyber Building Balance Carried from Previous Year $ $ 1,734,405 $ 1,737,405 $ 1,737,405 $ 1,737,405 $ 1,755,905 $ 1,787,105 $ 1,787,105 $ 1,841,898 $ 1,846,898 Anticipated Annual Recap Requirement $ 1,734,405 $ 3,000 $ $ $ 18,500 $ 31,200 $ $ 54,793 $ 5,000 $ 5,000 Soft Costs $ $ $ $ $ $ $ $ $ $ Total Anticipated Requirements $ 1,734,405 $ 1,737,405 $ 1,737,405 $ 1,737,405 $ 1,755,905 $ 1,787,105 $ 1,787,105 $ 1,841,898 $ 1,846,898 $ 1,851,898 Capital Funding $ $ $ $ $ $ $ $ $ $ Operational Costs $ $ $ $ $ $ $ $ $ $ Maintenance Costs $ $ $ $ $ $ $ $ $ $ Loan Payments $ $ $ $ $ $ $ $ $ $ Building Replacement Value $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 Amount of Deferred Maintenance $ 1,734,405 $ 1,737,405 $ 1,737,405 $ 1,737,405 $ 1,755,905 $ 1,787,105 $ 1,787,105 $ 1,841,898 $ 1,846,898 $ 1,851,898 Annual Cost of Ownership $ $ $ $ $ $ $ $ $ $ FCI 50.73% 50.82% 50.82% 50.82% 51.36% 52.27% 52.27% 53.88% 54.02% 54.17%

55 Khyber Building Site Work (Category 1) Architecture, Exterior (Category 2) Roof (Category 3) Structure (Category 4) Architecture, Interior (Category 5) Mechanical (Category 6) Electrical (Category 7) Life Safety / Fire Suppression (Category 8) Specialty Systems (Category 9) TOTAL for Khyber Building Khyber Building Cash Flow Summary Output Sheet Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year $ $ $ $ $ $ $ 3,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 74,000 $ $ $ $ 260,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 8,500 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,500 $ $ $ $ 15,000 $ $ 3,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 23,002 $ $ $ $ $ $ $ 11,653 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,500 $ $ 11,653 $ $ 15,000 $ $ 80,000 $ $ $ $ 291,502 $ $ $ $ Khyber Building Balance Carried from Previous Year Anticipated Annual Recap Requirement Soft Costs Total Anticipated Requirements Capital Funding Operational Costs Maintenance Costs Loan Payments Building Replacement Value Amount of Deferred Maintenance Annual Cost of Ownership FCI Facility Condition Calculation Output Sheet Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year $ 1,851,898 $ 1,853,398 $ 1,853,398 $ 1,865,051 $ 1,865,051 $ 1,880,051 $ 1,880,051 $ 1,960,051 $ 1,960,051 $ 1,960,051 $ 1,960,051 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ 1,500 $ $ 11,653 $ $ 15,000 $ $ 80,000 $ $ $ $ 291,502 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,853,398 $ 1,853,398 $ 1,865,051 $ 1,865,051 $ 1,880,051 $ 1,880,051 $ 1,960,051 $ 1,960,051 $ 1,960,051 $ 1,960,051 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 1,853,398 $ 1,853,398 $ 1,865,051 $ 1,865,051 $ 1,880,051 $ 1,880,051 $ 1,960,051 $ 1,960,051 $ 1,960,051 $ 1,960,051 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ 2,251,553 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 54.21% 54.21% 54.55% 54.55% 54.99% 54.99% 57.33% 57.33% 57.33% 57.33% 65.86% 65.86% 65.86% 65.86% 65.86%

56 Khyber Building Cash Flow Summary Output Sheet Including Efficiency Projects Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Khyber Building Site Work (Category 1) $ $ $ $ $ $ $ $ $ $ Architecture, Exterior (Category 2) $ 267,500 $ $ $ $ $ $ $ 1,450 $ 5,000 $ Roof (Category 3) $ 2,500 $ $ $ $ $ 31,200 $ $ $ $ Structure (Category 4) $ 201,441 $ $ $ $ $ $ $ $ $ Architecture, Interior (Category 5) $ 1,183,713 $ $ $ $ $ $ $ $ $ Mechanical (Category 6) $ 56,250 $ 3,000 $ $ $ $ $ $ 14,500 $ $ Electrical (Category 7) $ 23,002 $ $ $ $ 18,500 $ $ $ $ $ Life Safety / Fire Suppression (Category 8) $ $ $ $ $ $ $ $ 38,843 $ $ 5,000 Specialty Systems (Category 9) $ $ $ $ $ $ $ $ $ $ Energy Capital Replacements $ 2,680 $ $ $ $ $ $ $ $ $ TOTAL for Khyber Building $ 1,737,085 $ 3,000 $ $ $ 18,500 $ 31,200 $ $ 54,793 $ 5,000 $ 5,000 Facility Condition Calculation Output Sheet Including Efficiency Projects Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Khyber Building Balance Carried from Previous Year $ $ 1,735,371 $ 1,736,657 $ 1,734,944 $ 1,733,230 $ 1,750,016 $ 1,779,502 $ 1,777,788 $ 1,830,868 $ 1,834,154 Anticipated Annual Recap Requirement $ 1,737,085 $ 3,000 $ $ $ 18,500 $ 31,200 $ $ 54,793 $ 5,000 $ 5,000 Soft Costs $ $ $ $ $ $ $ $ $ $ Total Anticipated Requirements $ 1,737,085 $ 1,738,371 $ 1,736,657 $ 1,734,944 $ 1,751,730 $ 1,781,216 $ 1,779,502 $ 1,832,581 $ 1,835,868 $ 1,839,154 Capital Funding $ $ $ $ $ $ $ $ $ $ Operations Cost $ $ $ $ $ $ $ $ $ $ Maintenance Cost $ $ $ $ $ $ $ $ $ $ Operational Savings $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 Loan Payments $ $ $ $ $ $ $ $ $ $ Building Replacement Value $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 Amount of Deferred Maintenance $ 1,735,371 $ 1,736,657 $ 1,734,944 $ 1,733,230 $ 1,750,016 $ 1,779,502 $ 1,777,788 $ 1,830,868 $ 1,834,154 $ 1,837,440 Annual Cost of Ownership $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) FCI 50.76% 50.80% 50.75% 50.70% 51.19% 52.05% 52.00% 53.55% 53.65% 53.75%

57 Khyber Building Site Work (Category 1) Architecture, Exterior (Category 2) Roof (Category 3) Structure (Category 4) Architecture, Interior (Category 5) Mechanical (Category 6) Electrical (Category 7) Life Safety / Fire Suppression (Category 8) Specialty Systems (Category 9) Energy Capital Replacements TOTAL for Khyber Building Khyber Building Cash Flow Summary Output Sheet Including Efficiency Projects Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year $ $ $ $ $ $ $ 3,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 74,000 $ $ $ $ 260,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 8,500 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,500 $ $ $ $ 15,000 $ $ 3,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 23,002 $ $ $ $ $ $ $ 11,653 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,680 $ $ $ $ $ 1,500 $ $ 11,653 $ $ 15,000 $ $ 80,000 $ $ $ $ 294,182 $ $ $ $ Khyber Building Balance Carried from Previous Year Anticipated Annual Recap Requirement Soft Costs Total Anticipated Requirements Capital Funding Operations Cost Maintenance Cost Operational Savings Loan Payments Building Replacement Value Amount of Deferred Maintenance Annual Cost of Ownership FCI FacFacility Condition Calculation Output Sheet Including Efficiency Projects Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year $ 1,837,440 $ 1,837,226 $ 1,835,513 $ 1,845,452 $ 1,843,738 $ 1,857,024 $ 1,855,310 $ 1,933,597 $ 1,931,883 $ 1,930,169 $ 1,928,455 $ 2,220,923 $ 2,219,209 $ 2,217,496 $ 2,215,782 $ 1,500 $ $ 11,653 $ $ 15,000 $ $ 80,000 $ $ $ $ 294,182 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,838,940 $ 1,837,226 $ 1,847,165 $ 1,845,452 $ 1,858,738 $ 1,857,024 $ 1,935,310 $ 1,933,597 $ 1,931,883 $ 1,930,169 $ 2,222,637 $ 2,220,923 $ 2,219,209 $ 2,217,496 $ 2,215,782 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ 1,714 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 3,418,757 $ 1,837,226 $ 1,835,513 $ 1,845,452 $ 1,843,738 $ 1,857,024 $ 1,855,310 $ 1,933,597 $ 1,931,883 $ 1,930,169 $ 1,928,455 $ 2,220,923 $ 2,219,209 $ 2,217,496 $ 2,215,782 $ 2,214,068 $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) $ (1,714) 53.74% 53.69% 53.98% 53.93% 54.32% 54.27% 56.56% 56.51% 56.46% 56.41% 64.96% 64.91% 64.86% 64.81% 64.76%

58 Appendix B Khyber Building Building Condition & Energy Assessment Appendix B Photo Log 2013 Page B

59 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 1: Khyber Building (Heritage), Halifax, Nova Scotia. Partial Front (East) Elevation Photo 2: Partial South Elevation

60 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 3: Sample of Basement Flooring Photo 4: Sample of Hardwood Flooring

61 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 5: Sample of Windows Throughout Building Photo 6: Gallery on 2 nd Floor

62 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 7: Fireplace on Second Floor Photo 8: Skylight

63 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 9: Fuel Oil Tanks in Basement Photo 10: 2 Kerr Comet 270 Oil Fired Hot Water Boilers

64 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 11: Auxiliary Ceiling Mounted Electric Fan Coil Heating Unit (1 of 2) Photo 12: Giant Electric Hot Water Heater

65 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 13: Sample of Plumbing Fixtures Photo 14: Sample of Cast Iron Drainage Piping in Basement

66 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 15: Partial Electrical Service Switchgear Photo 16: Sample of Lighting in Main Level Front Entrance

67 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 17: Fire Suppression Sprinkler System Equipment in Basement Photo 18: Fire Suppression Sprinkler System

68 Khyber Building (Heritage) 1588 Barrington Street, Halifax, Nova Scotia Capital Management Engineering Limited Photo 19: Auxiliary (Emergency) Stairwell Photo 20: Samples of Exit Lighting, Fire Alarm Pull Station and Service Door

69 Appendix C Khyber Building Building Condition & Energy Assessment Appendix C HRM Building Forms 2013 Page C

70 568 BUILDING SITE CONDITION ASSESSMENT (PAGE 1) HRM Building ID: Khyber Building (Heritage) Building of Interest: Building Name Also Known As Khyber Institute for Contemporary Arts PID Civic # 1588 Street Barrington Street Community Halifax Postal Code Urban Suburban Rural Trees: # Hardwood 0 # Softwood 0 # Shrubs/Bushes 0 Good Okay Poor Good Okay Poor Good Okay Poor Flowers & Plantings: Approximate SqFt: 0 Condition: Good Okay Poor Landscaping: Description: None Condition: Good Okay Poor Parking Lot / Driveway: # Catch Basins Curb Material Deficiency Priority Notes Area (SqFt) Location Section None Deficiencies: 1. Heavily Patched 2. Aligatoring 3. Fissures 4. Bumps & Pot Holes 5. Broken / Missing Curbs # Parking Spots None Condition of Pavement Markings: Good Okay Poor Sidewalks: Section Location Area (SqFt) Material Deficiency Priority Notes east 500 concrete Barrington Street (Municipal owned) 1 2 3

71 BUILDING SITE CONDITION ASSESSMENT (PAGE 2) HRM Building ID: Lighting: # Poles # Lights 2 Notes 2 building mounted HID units Fencing: Section Length Type Notes 1 Wood Chain Link Other 2 Wood Chain Link Other 3 Wood Chain Link Other Sheds: Shed Size Material Notes Other Features: Skate Park Basketball Playground (Check Applicable) Playground Equipment: Play Structure Basic Equipment Estimated Value: Sports Field Bleachers Dugouts Pond River/Lake Swimming Pool Other concrete stairs to lower lev Other Other Site Exposures: North Side attached to adjoining building Distance Away 0' (Provide photos for each) South Side attached to adjoining building (Canopy) Distance Away 0' East Side Barrington Street Distance Away 14' West Side attached to adjoining building Distance Away 0' Notes & Observations: Assessed By: CMEL Date: 19 December

72 568 BUILDING GENERAL ASSESSMENT (PAGE 1) HRM Building ID: Building of Interest: Building Name Khyber Building (Heritage) Also Known As Khyber Institute for Contemporary Arts PID Civic # 1588 Street Barrington Street Community Halifax Postal Code Replacement Cost: Building Cost: $ Additional Fixed Improvement Cost: $ 3,418, Total Replacement Cost: $ Basic Characteristics: Year of Construction: 1888 (or) Estimated Age: # Floors Above Ground: 3 # Floors Below Ground: 1 Total # Floors: 4 Floor SqFt Notes studios and gallery 2918 gallery, offices and storage 2887 office, washrooms and cafe 1500 Partial basement Ground Level B1 B Total SqFt: # Elevators: 0 Are Certificates Up To Date? Yes No Notes: Heritage Property? Yes No Heritage #: Construction: Roof: (see Roofing Assessment Form) slab is grout parged brick Slab Pile Crawl Space TShaped Other Notes Foundation: Wood Concrete Cement Block Stone Other Notes Material: Notes Wood Metal Concrete Stone Other Interior Walls: Notes Fibreglass Plastic (polystyrene) Unknown Other Insulation: Notes brick Wood Metal Concrete Stone Other Exterior Walls: Notes Fibreglass Plastic (polystyrene) Unknown Other Insulation: Wood Metal Concrete Stone Other Notes Floors: Single Glazed Double Glazed Other Notes Windows:

73 BUILDING GENERAL ASSESSMENT (PAGE 2) HRM Building ID: Building Additions: Area Addition Location (SqFt) Date of Addition Description of Space Estimated Value of Additions: Occupancy: Ownership / Usage: % Correctional % Museum % Residential % Fire Station % Art Gallery 60 % Retail % Police Station % Bus Terminal % Offices % Library % Ferry Terminal % Manufacturing % % % 568 HRM Owned/HRM Occupied HRM Owned/Rented or Leased Rented or Leased 40 School % Maintenance Depot % Salt Dome % Community Centre % Recycling Facility % Storage % Event Centre % Composting Facility % Parking Structure % Recreation Facility % Waste Facility % Vacant % % % Yes No Notes Are there flammable liquids used on site? No Yes Is smoking permitted inside the building? Are there any sleeping quarters? Yes No Are they used? Yes No By whom? Before/After School Program Eldercare Daycare Does the building include: Bar Full Time Bar Occasional Arena Cistern (non P) City Well Protection: Water Supply: Are Automatic Sprinklers Present? Yes No Percentage of Building: Are Heat/Smoke Detectors Present? Yes No Wired Battery Percentage of Building: Are the Sprinkler/Heat/Smoke Alarms Monitored? Yes No By Whom? unknown Yes No Distance to Nearest Fire Station/Hall: 1 mile Is it a Volunteer Dept? Yes No Is there a Fire Hydrant(s) Within 250 feet of Building? Yes No Are Fire Extinguishers Present Throughout? Yes No How Many? Certificates Up To Date? Is there a Burglary Alarm? Yes No Monitored? Yes No By Whom? Wired Battery Burglary Alarm Is: Wired On Site Is there a Generator? Yes No Is the Generator: Are there Security Cameras? Yes No Monitored? Yes No By Whom? Is there a Watchman Service? Yes No Monitored? Yes No By Whom?

74 BUILDING GENERAL ASSESSMENT (PAGE 3) HRM Building ID: Underground Septic Storage Septic Field/Bed Municipal Service Notes Septic/Sewer: Yes No UST Info: Does the Property Operate Underground Storage Tanks (USTs)? Yes No Has the Property Operated USTs in the Past? Tank Size Is the Tank: Contents Age Material Active Inactive 1 2 Active Inactive 3 Active Inactive Are UST Inventory Records Maintained? Yes No Where are they Stored? Is Tank Upgrade/Testing Info Available? Yes No Where is it Stored? Do Tank Removal Reports Exist? Yes No Where are they Stored? Yes No Yes No Yes No Was Remediation ever Required at these Tanks? Have there been any Reports of Leaks or Spills? Any Leaks or Spills When the Tank was Removed? Yes No AST Info: Does the Property Operate Above Ground Storage Tanks (ASTs)? 568 exits front of building Yes No Has the Property Operated ASTs in the Past? Inside Outside Is the AST Located Inside or Outside the Building? Tank Size Is the Tank: Contents Age Material furnace oil metal Active Inactive 1 furnace oil metal 2 Active Inactive 3 Active Inactive 900 litres +/ 900 litres +/ Are AST Inventory Records Maintained? Yes No Where are they Stored? Is Tank Upgrade/Testing Info Available? Yes No Where is it Stored? Yes No Are there any Reported or Documented Records of Release, Spills or Remedial History? Are there any Signs of Spillage Related to the AST? Yes No Yes No Are ASTs Protected from Vehicular Impact? Notes & Observations: Assessed By: CMEL Date: 19 December 2012

75 568 BUILDING MECHANICAL EQUIPMENT ASSESSMENT (PAGE 1) HRM Building ID: Building of Interest: Building Name Khyber Building (Heritage) Also Known As Khyber Institute for Contemporary Arts PID Civic # 1588 Street Community Halifax Postal Code Natural Gas Geothermal Notes Furnace Oil Heavy Oil Propane Electric Energy Source: Other Heating Units: Unit HP Fuel Manufacturer Age Notes furnace oil Kerr model Comet 270 furnace oil Kerr model Comet % Building Served By: HW Radiators % Steam Radiators % Electric 10 % HW Baseboard Radiators 90 % InFloor Heat % Hot Air % Geothermal % % % Cooling Units: Unit Tons Manufacturer VFD Model Year DX CW Tower Window Units #: Ventilation Central, Exhaust, Kitchen Units: AHU# Manufacturer VFD Cooling? Heating? Model Year Pressure Heat Recovery Humidity

76 568 BUILDING MECHANICAL EQUIPMENT ASSESSMENT (PAGE 2) HRM Building ID: Exterior Grills/Louvers: # Condition Water: Domestic HW Tank 1: Age: Size: 60 gallon +/ Source of Heat: electric Domestic HW Tank 2: Age: Size: Source of Heat: Domestic HW Tank 3: Age: Size: Source of Heat: Domestic HW Tank 4: Age: Size: Source of Heat: Notes Number of Heat Pumps: Male Female Unisex Number of Washrooms: Toilets 5 Urinals 2 Waterless WC Showers Sinks 6 Kitchen: Are there Kitchen Facilities? Yes No Does it Contain a Fryer? Yes No Stove? Yes No Major Equipment: # Equipment Fuel Source # Equipment Fuel Source 11 fridge electric 1 12 single glass door cooler electric

77 BUILDING MECHANICAL EQUIPMENT ASSESSMENT (PAGE 3) HRM Building ID: Air Compressors: # Manufacturer Notes / Sprinkler Pumps: Number: HP: Sprinkler: Wet Dry Stand Pipes: Specialized Equipment (Fire Dept, Rink, Pool, Etc): Notes & Observations: Assessed By: CMEL Date: 19 December 2012

78 BUILDING ROOFING ASSESSMENT (PAGE 1) HRM Building ID: 568 Building of Interest: Building Name Khyber Building (Heritage) Also Known As Khyber Institute for Contemporary Arts PID Civic # 1588 Street Barrington Street Community Halifax Postal Code Access: Roof Access: Ladder Stairs Others hatch in 3rd floor ceiling Roof Sections: Section Slope SqFt Age Type Condition (Good/Okay/Poor) Repairs (None/Some/Many) Parapet Height Parapet Condition (Good/Okay/Poor) 1 G O P G O P 2 G O P G O P 3 G O P G O P 4 G O P G O P 5 G O P G O P 6 G O P G O P 7 G O P G O P 8 G O P G O P 9 G O P G O P 10 G O P G O P Penetrations & Accessories: Section Plumbing Vent Stacks HVAC Drains Curbs Electrical Scuppers Ladders Other Notes:

79 BUILDING ROOFING ASSESSMENT (PAGE 2) HRM Building ID: Deficiencies: Section SqFt Deficiencies Notes 1 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 2 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 3 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 4 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 5 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 6 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 7 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 8 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 9 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination 10 Shingles Missing Cracks Bad Flashing Bubbles/Blisters Delamination Skylights: Roof Roof Section Size Notes Section Size Notes 8'x8' +/ leaks (over main stairwell) 4'x8' +/ rear studio Gutters: Notes: located between 2nd and 3rd floors (steep mansard roof 3rd floor) Notes & Observations: Assessed By: CMEL Date: December

80 Appendix D Khyber Building Building Condition & Energy Assessment Appendix D Aerial & Elevation Photos 2013 Page D

81 2013 Khyber Building Aerial Photo. Provided by HRM Date: Dec. 19, 2012

82 2013 Khyber Building East Elevation Date: Dec. 19, 2012