RESERVE FUND STUDY REPORT

Transcription

1 RESERVE FUND STUDY REPORT Prepared for AKINSDE GARDENS CONDOMINIUM CORPORATION 37 AKINS DRIVE, ST. BERT, BERTA CONDOMINIUM PLAN No OCTOBER Avenue, Edmonton, AB T5M 3X "First At Making Buildings Last".Since 1986 F INA L

2 NOTICE TO READER All contents are protected by Copyright 1998 by Wade Engineering Ltd. and may not be reproduced without the express written permission of Wade Engineering Ltd. Cost/Life Data, Cost/Life Analysis, Present Course, and Reasonable & Sufficient, spreadsheets are Copyright and protected by law. Financial decisions based on assumptions or findings in this Report must consider the issuance date of this Report, the Scope of Work, Parameters and Variables as defined in this Report. FIN

3 TABLE OF CONTENTS PROJECT SUMMARY... 1 FINANCI SUMMARY... 2 SUMMARY OF RECOMMENDATIONS... 3 INTRODUCTION... 5 SCOPE OF WORK... 5 PARAMETERS... 6 VARIABLES... 7 COMPONENT DESCRIPTION AND GENER CONDITIONS Building Envelope Common Property Components Roofing... 8 Attics...10 Eavestroughs & Downspouts...11 Fascia...12 Soffit...13 Exterior Wall Cladding...1 Windows & Patio Doors...16 Exterior Unit Accessories...18 Window Wells...19 Doors...20 Exterior Common Property Components Asphalt Surface...21 Curbs...22 Entrance Steps Front...23 Entrance Landings...2 Entrance Steps Rear...25 Fencing...26 Fire Hydrants...27 Landscaping...28 Light Standards...29 Property Signage...30 Walkways...31 Garage Floors & Carports...32 AREAS OF CONCERN...33 FINANCI ANYSIS...3 QUIFICATIONS...37 STUDY PERSONNEL...38 REFERENCE SOURCES...39 FINANCI SPREADSHEETS Cost Life Data...0 Cost Life Analysis...1 Present Course...2 Reasonable & Sufficient...3 Ten Year Replacement Schedule (Years 1 to 10)... Ten Year Replacement Schedule (Years 11 to 20)...5 FIN

4 PROJECT SUMMARY Project Name: Akinsdale Gardens Project Address: 37 Akins Drive, St. Albert, Alberta Condominium Plan Number: Style of Buildings: Townhouse Number of Units: 83 Units Number of Buildings: 26 Residential Buildings, 27 Carports Age of Buildings: 38 Years Wade Engineering Ltd. was commissioned to conduct a Reserve Fund Study for Akinsdale Gardens Condominium Corporation (Condominium Plan No ). This development is located on 37 Akins Drive, in the City of St. Albert. This is a townhouse style development with 83 residential units located within 26 buildings. Each unit features an exclusive use rear yard area and either a front attached single garage or a sheltered carport. Twenty seven (27) carports are located throughout the property for units without attached garages. An asphalt driving and parking area is located throughout the property. The grounds are landscaped with grass and mature trees. The quantities and conditions of the common components were determined through site investigations conducted in September 201. The component description, overall condition, conditions noted, pertinent history and specific maintenance or replacement recommendations have been summarized in chart form, beginning with the roof, and working down and out from the building. Safety Concerns and Anomalies are summarized in a similar fashion. AKINSDE GARDENS FIN1 201

5 FINANCI SUMMARY Current Replacement Cost: Annual Replacement Cost: Recommended Safety Margin: $3,008, $119, $120, Opening Fund Balance: Current Annual Reserve Contribution: $250, $110, Recommended Annual Contribution: One Time Only Expenses: $11,15.00 $599, The expected life and replacement costs of components were estimated using technical resource literature, and information from contractors and industry professionals. Financial spreadsheets were developed, taking into account interest earned on Reserve Fund investments and inflation of replacement cost estimates. At Akinsdale Gardens Condominium Corporation, the total cost of the common property components to be replaced or restored by the Reserve Fund, in today s dollars is $3,008, The Annual Replacement Cost (or the annual rate of deterioration of these components expressed in dollars) is $119, per year. A minimum fund balance or Safety Margin is recommended to offset unpredictable expenses, such as random sewer collapses. The Safety Margin for this development has been set at $120, which is based on the Annual Replacement Cost for this development. The Reasonable & Sufficient spreadsheet recommends an Annual Contribution of $11,15.00 (approximately $11.60/unit monthly) increased annually by 3%. This option maintains a balance in the Reserve Fund sufficient to cover the scheduled expenses, with the closing balance falling only slightly below the Safety Margin occasionally. AKINSDE GARDENS FIN2

6 SUMMARY OF RECOMMENDATIONS The most important maintenance consideration for Condominium Boards is ensuring that safety concerns are dealt with in a timely fashion. It is also important to keep water out of the interstitial components of the building and to protect components from the damaging effects of the sun and inclement weather. Recommendations are summarized below and listed in order of the report. The funds for the suggestions or recommendations that follow may not be accrued in this Study, unless specifically identified on the Cost/Life Data spreadsheet. It is incumbent on the Board to ensure that ownerinstalled objects have been properly and securely installed, and do not violate any of the current Building, Fire or Safety Codes. As well, it is the Board s responsibility to ensure that unit owners repair or replace these components in a timely fashion. Specific Recommendations: Roofing (Report Pg. 8, Spreadsheets Lines 1 to 3): Replace 3tab organic asphalt shingles on carports as scheduled in If ice damming is a concern, further review should be completed to determine if the ventilation is adequate. Attics (Report Pg. 10): If ice damming is a concern, further review should be completed to determine if the ventilation is adequate. Eavestroughs & Downspouts (Report Pg. 11, Spreadsheets Lines & 5): Clean eavestroughs. Exterior Wall Cladding (Report Pg. 1, Spreadsheets Lines 10 to 1): Repair sections of parging and sealant where necessary. Windows & Patio Doors (Report Pg. 16, Spreadsheets Lines 15 to 18): Seal gaps between basement window frames and adjacent components. Asphalt Surface (Report Pg. 21, Spreadsheets Line 25): Repair asphalt surface as scheduled in Curbs (Report Pg. 22, Spreadsheets Lines 26 & 27): Replace deteriorated curbs. Entrance Steps Front (Report Pg. 23, Spreadsheets Lines 28 & 29): Add soil underneath steps where landscaping has settled. Entrance Landings (Report Pg. 2, Spreadsheets Line 30): Add soil underneath landings where landscaping has settled. Entrance Steps Rear (Report Pg. 25, Spreadsheets Line 31): Add soil underneath steps where landscaping has settled. Fire Hydrants (Report Pg. 27, Spreadsheets Lines 3 & 35): Paint fire hydrants. Landscaping (Report Pg. 28, Spreadsheets Line 36 & 119 to 123): Regrade landscaping to create positive slope away from the buildings (scheduled over the next 5 years). Trim branches regularly. AKINSDE GARDENS FIN3

7 Specific Recommendations Continued: Garage Floor Slabs & Carports (Report Pg. 32, Spreadsheets Lines 112 to 118): Continue with scheduled replacement of garage floor slabs. Repair concrete piles in conjunction with replacement of the asphalt. Areas of Concern (Report Pg. 33): A portion of a downspout is missing allowing water to drain in close proximity to the building foundation and should be repaired to direct drainage away from the building. A downspout is in the upright position and should be placed horizontally to direct water away from the building foundation. A section of a downspout is crushed and inhibits water drainage away from the building and should be replaced. A section of fascia is missing exposing the underlying wood to the elements and should be replaced. AKINSDE GARDENS FIN

8 INTRODUCTION This Reserve Fund Study Report is a comprehensive document, designed to provide an overall assessment of the common property and the Reserve Fund requirements of the Corporation. In order for a Study of this magnitude to be feasible, it is prudent to establish realistic parameters for a scope of work that will result in a product that meets the needs of the Corporation, at a reasonable cost. If the Provider were expected to inspect all components of common property, the costs to the purchaser would be prohibitive. SCOPE OF WORK The Study began with a review of the condominium plan, bylaws and other pertinent documents and consultation with the Property Manager, to determine the common property components to be replaced or refurbished with monies from the Reserve Fund. These components were measured and/or counted during visits to the site (quantity survey). This data is used to calculate the current replacement cost (G.S.T. inclusive) for each component, with the same or similar product. A cursory inspection, noting the general condition of the various components, was conducted in conjunction with the quantity survey. The conditions noted, and the inspector s experience, combined with technical resource material referencing life cycles of building components, were used in forecasting the remaining functional lives of the various components. A random inspection of the attic was also conducted. This inspection provided an opportunity to assess potential performance deficiencies in ancillary spaces. Inspection was conducted of the interior surface of a sample of doors and windows. During the course of site inspections, safety concerns such as Building/Fire Code or condominium bylaw violations, and/or other anomalies if noted, are reported. AKINSDE GARDENS FIN5

9 PARAMETERS No money is accrued in this Study for annual inspections and repairs, as they are considered to be part of ongoing operating costs. However, in the interest of achieving the maximum effective life of all components, specific maintenance recommendations may be included. Furthermore, no monies are included for the catchup of deferred maintenance. The report reflects the condition by penalizing the life of the item. Replacement costs of components expected to last the life of the development, such as: attic insulation, structural building components, concrete foundation, etc., are not included, since their expected lives are considered to be synonymous with that of the development. Periodic and/or random repairs or upgrades to these types of components may be necessary in the future. Attempts to predict the uncertainty of the unknown for inclusion in this report would result in unreliable cost estimates. Components located below grade, such as sewer systems and/or components concealed from view such as electrical, are not reviewed or considered within this Study. A Safety Margin, determined by the Study Provider, is incorporated in all funding scenarios to help offset unpredictable expenses that may arise. While the sewer system is not considered in the financial forecast in this Study, routine flushing of the system is recommended. The required frequency of flushing depends on various factors such as the location of development, the length of the system, the drainage incline and the consistency of the contents flowing through it. Consultation with an appropriate professional will help to identify a schedule for flushing the system and the associated costs. Other components specifically excluded are those considered the responsibility of the unit owner. The inspections conducted in performance of this Study are cursory and are not to be considered a technical audit. Data generated by this report is not intended for third party use. Wade Engineering Ltd. accepts no responsibility for damages, if any, suffered by a third party, as a result of actions taken, or decisions made, on the basis of this Report. Should our work in preparing this report uncover conditions that are deemed beyond this Study s scope, recommendations for further investigation will be included. Please note that any additional investigations and the related repair costs are not included in the financial forecasts of this report. AKINSDE GARDENS FIN6

10 VARIABLES The estimate of life expectancies and replacement costs is not an exact science. However, every attempt is made to anticipate and compensate for the variables encountered in this Study. Market prices fluctuate as a result of supply and demand characteristics; lower prices at the beginning of the season when contractors are looking for work, higher at the end of the season when contractors are over booked. Some components will experience accelerated deterioration in the latter part of their functional life. These, and other such phenomena, can cause significant variations between the original life and cost estimates, and those actually realized. Life cycles and replacement costs have been estimated as accurately as possible. Deterioration of components occurs at different rates, therefore it is prudent to replace or repair portions of some components as they deteriorate, limiting the potential for damage to adjacent components, and/or limiting the Corporation s exposure to liability. For example: Roofs may require maintenance/repair program to realize their expected life. Not all walkways will deteriorate in the last year of their expected lives. Curbs are more susceptible to damage from external forces. In these cases, an allowance may be identified in the financial spreadsheets allocating either; a portion of the replacement costs on a short but perpetual cycle, or phased replacement of major components. Also note that deficiencies may be hidden; or they may be present but not located in areas where random inspections are conducted. It is assumed that the level of future preventive maintenance will be consistent with the standards currently employed. A more aggressive preventive maintenance program may allow various components to achieve a longer functional life, while deferral of maintenance may shorten its life. Although inflation and interest rates are difficult to predict, their impact on future pricing and potential earnings cannot be ignored. The spreadsheets for Funding Scenarios, as well as the Ten Year Replacement Plan, incorporate interest and inflation where applicable. While considerable effort has been made to present realistic projections, periodic updates of the Study are required to ensure it remains a practical approximation. AKINSDE GARDENS FIN7

11 COMPONENT DESCRIPTION AND GENER CONDITIONS During the course of conducting this Reserve Fund Study, a cursory site inspection was carried out on a sample of visible common property components. ROOFING BUILDING ENVELOPE COMMON PROPERTY COMPONENTS ROOFING TYPE OF COMPONENT(S): OVERL CONDITION: Good to Poor Fiberglass laminated & 3tab organic shingles CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Laminate Shingles Buildings $217, Laminate Shingles Carports $13, Tab Organic Shingles Carports $1,20 25 N/A 2 1 COMPONENT DESCRIPTION: The roofs have a :12 slope. Fiberglass laminate asphalt shingles were recently installed on the buildings and some carports. Some carports have 3tab organic asphalt shingles that are scheduled for replacement in Selfadhered membrane eave protection and metal drip edge flashing is installed on the roofs of the buildings. CONDITIONS NOTED: Eave and rake flashings are installed around the perimeter of the roof deck. Water diversion is achieved with step flashings located at separation walls and directs water into the eavestroughs. Sealant is applied through penetration fasteners. There may be an inadequate amount of roof vents to allow proper air flow in the attic spaces. Fiberglass laminate asphalt shingle roof overview AKINSDE GARDENS Selfadhered membrane eave protection with metal drip edge FIN8

12 ROOFING CONTINUED Flashings at separation walls divert water into eavestroughs Lower roof overhang 3tab organic asphalt shingle overview with curling and deteriorated shingles Sealant applied to exposed fasteners at roof penetrations SPECIFIC RECOMMENDATIONS: Replace 3tab organic asphalt shingles on carports as scheduled in If ice damming is a concern, further review should be completed to determine if the ventilation is adequate. GOOD PRACTICE GUIDELINES: Schedule regular maintenance to address deferred maintenance. Review roofing system annually by a roofing professional or tradesperson to ensure all assemblies are intact and performing adequately. Regular roof inspections for identification of minor deficiencies will allow for timely repair. AKINSDE GARDENS FIN9

13 ATTICS ATTICS Type: Horizontal Overall Condition: Fair COMPONENT DESCRIPTION: The attic spaces for the peaked roofs are horizontal with blown in place insulation above the ceiling drywall and vapour retarder. Ventilation is achieved with a combination of perforated soffit and roof vents. CONDITIONS NOTED: The insulation appears to be well placed. At the locations inspected the level of blowninplace cellulose insulation was approximately 8" to 9" deep. This provides a thermal insulation value of approximately R28 to R32 (Alberta Building Code requirement of R3). It is not thought that additional insulation is required. Minimal daylight was visible at the eaves. This suggests that the soffits may be partially blocked resulting in restricted attic ventilation. Fiberglass insulation is placed on top of the attic hatch doors. Overview of attic spaces Level of blown in place insulation Fiberglass insulation installed on top of attic hatch SPECIFIC RECOMMENDATIONS: If ice damming is a concern, further review should be completed to determine if the ventilation is adequate. GOOD PRACTICE GUIDELINES: Keep attic clean and free of debris or storage by unit Owners. Keep residents out of the attic space. Maintain good ventilation characteristics at eaves and roof. AKINSDE GARDENS FIN10

14 EAVESTROUGHS & DOWNSPOUTS EAVESTROUGHS & DOWNSPOUTS CURRENT REPLACEMENT COST: TYPE OF COMPONENT(S): OVERL CONDITION: Good Prefinished metal EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Buildings $6, Carports $1, COMPONENT DESCRIPTION: Prefinished metal eavestroughs and downspouts are installed on the eaves of the roofs of the buildings and the carports to manage drainage. Eavestroughs and downspouts have been recently replaced. CONDITIONS NOTED: Downspouts are installed to drain water from upper eavestroughs to lower eavestroughs. Downspouts drain directly onto the landscaping any may erode the soil at these locations over time. Downspout drainage is restricted by vegetative debris in the eavestroughs at some locations. Numerous trees in area are contributing to eavestrough debris. Eavestroughs Eavestrough on carport Downspout Downspouts from upper roofs draining directly into lower eavestroughs AKINSDE GARDENS FIN11

15 EAVESTROUGHS & DOWNSPOUTS CONTINUED Downspout draining onto landscaping SPECIFIC RECOMMENDATIONS: Clean eavestroughs. Debris accumulation in eavestrough GOOD PRACTICE GUIDELINES: Eavestroughs should be properly sloped and securely fastened. All downspouts should have extensions or splashpads to direct drainage away from the building foundation. Eavestroughs should be cleaned of debris regularly to avoid water overflowing the trough and draining onto the building. FASCIA FASCIA TYPE OF COMPONENT(S): OVERL CONDITION: Good Prefinished metal CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Buildings $, Carports $13, COMPONENT DESCRIPTION: Wood fascia is installed on the edges of the roofs and clad with prefinished metal. Prefinished metal fascia on building Prefinished metal fascia on carport GOOD PRACTICE GUIDELINES: Inspect annually for loose or damaged sections and repair as necessary. SOFFIT AKINSDE GARDENS FIN12

16 SOFFIT TYPE OF COMPONENT(S): OVERL CONDITION: Good Perforated prefinished metal CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Buildings $58, Carports $1, COMPONENT DESCRIPTION: Perforated prefinished metal soffit is installed on the underside of the eaves of the buildings and carports. Soffit is also installed on cantilevered building overhangs. CONDITIONS NOTED: The soffits appear clean and are secured in place. Perforated soffit Soffit installed on building overhang Soffit on carport GOOD PRACTICE GUIDELINES: Inspect soffits annually for deficiencies and schedule appropriate investigations or repairs. AKINSDE GARDENS FIN13

17 EXTERIOR WL CLADDING EXTERIOR WL CLADDING CURRENT REPLACEMENT COST: Type: Overall Condition: Good Varies EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Vinyl Siding Buildings $82, Vinyl Siding Carports $1, Sealant Replacement $7, N/A 11 Sealant Repair $5,250 5 N/A 0 5 Parging Repair $, COMPONENT DESCRIPTION: Vinyl siding is installed on the exterior of the buildings and at gable ends of the carports and was installed in Sealant is applied around wall penetrations, windows and doors. Cementitious parging is installed on the bottom of the walls on rear and side elevations. CONDITIONS NOTED: Parging appears to have been painted. Parging has flaked off the wall at some locations. Localized sealant is starting to deteriorate. Vinyl siding on front elevation of building Vinyl siding on rear elevation of building Vinyl siding on carport Painted parging AKINSDE GARDENS FIN1

18 EXTERIOR WL CLADDING CONTINUED Sealed wall penetrations Sealant around window Flaked off parging SPECIFIC RECOMMENDATIONS: Repair sections of parging and sealant where necessary. GOOD PRACTICE GUIDELINES: Complete an annual inspection and identify deficiencies in cladding. Refasten loose siding. Manage drainage from building such that cladding is not exposed to repeated wetting by drainage from adjacent components. Repair parging where delamination of parging is an aesthetic concern. Large areas of wall exposed by settlement are best corrected by regrading. Sealant requires regular inspection and target repair as necessary. AKINSDE GARDENS FIN15

19 WINDOWS & PATIO DOORS WINDOWS & PATIO DOORS CURRENT REPLACEMENT COST: TYPE OF COMPONENT(S): PVC OVERL CONDITION: Good EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Windows $595, Windows Paint $39, Patio Doors Sliding $75, Patio Doors Hinged $23, COMPONENT DESCRIPTION: The windows consist of fixed and fixed/casement combination PVC windows. The patio doors on the units with attached garages are PVC horizontal sliders and the patio doors on the remaining units are insulated steel doors. Basement windows are PVC horizontal slider windows. CONDITIONS NOTED: Windows and doors were recently replaced. The basement windows do not meet the minimum bedroom emergency egress requirements. At a few locations inspected the casement window hardware was damaged. Light was visible under a basement window. Exterior view of fixed/casement window Interior view of fixed/casement window Interior view of fixed window Window sill AKINSDE GARDENS FIN16

20 WINDOWS & PATIO DOORS CONTINUED Window head Damaged window hardware Basement window Light visible under basement window Sliding patio door Hinged patio door SPECIFIC RECOMMENDATIONS: Seal gaps between basement window frames and adjacent components. GOOD PRACTICE GUIDELINES: Regular maintenance of windows and patio doors includes periodic inspection for failed weather stripping, sealant and damaged or inoperable hardware. Service windows and patio doors at least every five (5) years. Sealant should be kept in good condition and replaced in a timely manner. Windows/Patio Doors with sealant in the sill to jamb joint should be monitored regularly as this joint is more prone to water entry. Head flashings should retain a positive drainage slope. Windows and window wells that do not meet emergency egress requirements should not be used as bedrooms. AKINSDE GARDENS FIN17

21 EXTERIOR UNIT ACCESSORIES EXTERIOR UNIT ACCESSORIES CURRENT REPLACEMENT COST: TYPE OF COMPONENT(S): OVERL CONDITION: Good Unit number, mailboxes, lighting EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Lighting $13, Accessories $17, COMPONENT DESCRIPTION: Unit numbers and mailboxes are installed at the front entrance of each unit. Exterior lights are installed at the front entrance and rear patio doors of each unit. Unit number, mailbox and lighting Unit lighting beside rear entrance GOOD PRACTICE GUIDELINES: Schedule regular maintenance. AKINSDE GARDENS FIN18

22 WINDOW WELLS WINDOW WELLS TYPE OF COMPONENT(S): Corrugated steel CURRENT REPLACEMENT COST: $13,230 EXPECTED LIFE: ACTU AGE: 0 6 OVERL CONDITION: Good EFFECTIVE AGE: REMAINING LIFE: 6 3 COMPONENT DESCRIPTION: Corrugated steel window wells are installed in front of some basement windows. Window well GOOD PRACTICE GUIDELINES: Window wells can collect snow and water, and often contribute to dampness in basements. The base of the window wells should consist of 6 to 8 of freedraining material, such as crushed stone, and must be at least 6 below the bottom of the window frame. Windows and window wells that do not meet emergency egress requirements should not be used as bedrooms. AKINSDE GARDENS FIN19

23 DOORS DOORS TYPE OF COMPONENT(S): OVERL CONDITION: Good Storefront CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Entrance w/ Sidelite $7, Entrance $25, Garage $66, COMPONENT DESCRIPTION: Insulated steel doors are located at the front entrance of each unit. Some entrance doors have a sidelite. Single insulated steel overhead doors are installed on the garages. Entrance door with side light Entrance door Single overhead garage door GOOD PRACTICE GUIDELINES: Regular maintenance of doors includes periodic inspection for failed weather stripping, sealant and damaged or inoperable hardware. Sealant must be kept in good condition and replaced in a timely fashion. Head flashings must retain a positive drainage slope. AKINSDE GARDENS FIN20

24 ASPHT SURFACE EXTERIOR COMMON PROPERTY COMPONENTS ASPHT SURFACE TYPE OF COMPONENT(S): OVERL CONDITION: Fair Asphalt surface CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: 25 N/A 15 $227,077 REMAINING LIFE: 10 COMPONENT DESCRIPTION: Asphalt parking and drive surfaces are located throughout the property. CONDITIONS NOTED: Cracks and alligatoring were noted at random locations; some cracks have been previously sealed. Localized sections and the area around the storm drain have been previously patch repaired. Asphalt surface Asphalt surface with patch repairs Patched area around storm drain SPECIFIC RECOMMENDATIONS: Repair cracks as scheduled in Cracking and alligatoring GOOD PRACTICE GUIDELINES: Seal cracks as they occur. Schedule regular maintenance including localized sealing of cracks and patch repairs to realize the asphalt s expected life. Application of an asphalt sealer in parking stalls can reduce the effects of stains on the surface. AKINSDE GARDENS FIN21

25 CURBS CURBS TYPE OF COMPONENT(S): OVERL CONDITION: Good to Fair to Poor Precast concrete CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Replaced $ N/A 3 22 Original $2, N/A 23 2 COMPONENT DESCRIPTION: Precast concrete curbs are installed in some parking stalls. CONDITIONS NOTED: Rebar is exposed on some precast concrete curbs. It appears that the curbs are replaced as they deteriorate. Replaced precast curb SPECIFIC RECOMMENDATIONS: Replace deteriorated curbs. Original precast curb with exposed rebar GOOD PRACTICE GUIDELINES: Schedule regular maintenance. AKINSDE GARDENS FIN22

26 ENTRANCE STEPS FRONT ENTRANCE STEPS FRONT TYPE OF COMPONENT(S): OVERL CONDITION: Good to Fair Concrete CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Entrance Steps $51, N/A 27 8 Concrete Slabs $15, N/A 5 30 COMPONENT DESCRIPTION: Concrete steps are located at the main entrances of each unit. Some concrete steps have a precast concrete slab installed over the original steps. CONDITIONS NOTED: Landscaping has settled below some steps creating gaps and uneven step heights at localized areas. Precast entrance steps Precast concrete slab over original steps Side view of precast concrete slab SPECIFIC RECOMMENDATIONS: Add soil underneath steps where landscaping has settled. GOOD PRACTICE GUIDELINES: Do not use salt for deicing, as it can cause spalling and premature deterioration of concrete components. An application of a penetrating sealer may reduce the effects of spalling and freeze / thaw damage. AKINSDE GARDENS FIN23

27 ENTRANCE LANDINGS ENTRANCE LANDINGS TYPE OF COMPONENT(S): Precast concrete CURRENT REPLACEMENT COST: $3,360 OVERL CONDITION: Good EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: 35 N/A 18 REMAINING LIFE: 17 COMPONENT DESCRIPTION: Precast concrete landings are installed at the rear entrance of the units without attached garages. CONDITIONS NOTED: Landscaping has settled below some landings. Concrete landing SPECIFIC RECOMMENDATIONS: Add soil below landings where landscaping has settled. GOOD PRACTICE GUIDELINES: Do not use salt for deicing, as it can cause spalling and premature deterioration of concrete components. An application of a penetrating sealer may reduce the effects from spalling and freeze / thaw damage. AKINSDE GARDENS FIN2

28 ENTRANCE STEPS REAR ENTRANCE STEPS REAR TYPE OF COMPONENT(S): Precast concrete CURRENT REPLACEMENT COST: $61,25 OVERL CONDITION: Fair EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: 35 N/A 2 REMAINING LIFE: 11 COMPONENT DESCRIPTION: Precast concrete steps are installed at the rear patio doors of the units with attached garages. CONDITIONS NOTED: Landscaping has settled below some steps, creating gaps and uneven step heights in localized areas. Rear entrance steps SPECIFIC RECOMMENDATIONS: Add soil below steps where landscaping has settled. GOOD PRACTICE GUIDELINES: Do not use salt for deicing, as it can cause spalling and premature deterioration of concrete components. An application of a penetrating sealer may reduce the effects from spalling and freeze / thaw damage. Do not install carpeting on steps, since carpets retain moisture and prevent the concrete from drying properly, which can cause accelerated deterioration of concrete components. AKINSDE GARDENS FIN25

29 FENCING FENCING TYPE OF COMPONENT(S): OVERL CONDITION: Good Wood CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Fencing $120, Stain $22, COMPONENT DESCRIPTION: Wood fencing encloses the rear yard space of every unit and has a stain finish. CONDITIONS NOTED: Maintenance repairs and staining was completed on the fencing in 201. Stained wood fencing GOOD PRACTICE GUIDELINES: A common area of concern on all fencing is the damage that occurs to the base of the wood fence posts by mechanical grass trimmers, which can result in premature rotting of the post. A galvanized steel guard installed at the base of new posts will help to eliminate this problem. Prior to installation of guards on existing fencing, cuts in the posts should be soaked with a wood preservative. Paint/stain wood fencing approximately every 7 years or as required to protect the wood from the elements. AKINSDE GARDENS FIN26

30 FIRE HYDRANTS FIRE HYDRANTS TYPE OF COMPONENT(S): OVERL CONDITION: Fair Fire hydrants CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Fire Hydrants $10, Fire Hydrants Paint $ N/A 9 1 COMPONENT DESCRIPTION: Painted fire hydrants are systematically located throughout the property. CONDITIONS NOTED: The paint finish on the fire hydrants is deteriorating and minor corrosion is evident. Rusting fire hydrants SPECIFIC RECOMMENDATIONS: Paint fire hydrants. GOOD PRACTICE GUIDELINES: Paint fire hydrants approximately every 10 years or as required with a rust inhibitive paint. Fire department regulations require annual inspection of fire hydrants to ensure their integrity is maintained for use in the event of an emergency. AKINSDE GARDENS FIN27

31 LANDSCAPING LANDSCAPING TYPE OF COMPONENT(S): OVERL CONDITION: Fair Varies CURRENT REPLACEMENT COST: $5,250 $26,250 (2015) / $26,250 (2016) $26,250 (2017) / $26,250 (2018) $26,250 (2019) EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: 5 N/A 1 OneTime Only Cost (estimate only) over the next 5 years COMPONENT DESCRIPTION: The landscaping consists of grass, mulch beds, deciduous and coniferous trees and shrubs. CONDITIONS NOTED: Tree branches in close proximity to the buildings are sweeping the shingles. This may accelerate deterioration of the shingles over time and allow leaves to accumulate in the eavestroughs. Due to settlement of the landscaping the grade is sloped towards the building at some locations preventing proper drainage away from the building and may potentially result in water entry. Overview of landscaping Trees in close proximity to the building Landscaping sloped towards building Large mature trees SPECIFIC RECOMMENDATIONS: Regrade landscaping to create positive slope away from the buildings (scheduled over the next 5 years). Trim branches regularly. GOOD PRACTICE GUIDELINES: Landscaping will settle over time, and may leave the ground sloped towards the building foundations. Settling also leaves the potential for uneven walking surfaces and tripping hazards. Regrading as necessary will help limit the chances of water entry through the foundations, as well as the Corporation s exposure to liability. A regular tree pruning program would be beneficial. Proper aeration, fertilizing, weed control, cutting, and raking will maintain lawns, and they should not require wholesale replacement. Dead areas of grass should be replaced promptly. AKINSDE GARDENS FIN28

32 LIGHT STANDARDS LIGHT STANDARDS TYPE OF COMPONENT(S): OVERL CONDITION: Fair Site lighting fixtures CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: Light Standards $17, N/A 26 9 Paint $2, N/A 1 9 COMPONENT DESCRIPTION: Painted light standards are located throughout the property. Light standards GOOD PRACTICE GUIDELINES: Schedule regular maintenance. Weekly walk around and inspection at night to ensure all lighting and light sensors are working properly. AKINSDE GARDENS FIN29

33 PROPERTY SIGNAGE PROPERTY SIGNAGE TYPE OF COMPONENT(S): Property signage CURRENT REPLACEMENT COST: $2,520 OVERL CONDITION: Fair EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: REMAINING LIFE: 30 N/A COMPONENT DESCRIPTION: A sign is located at both entrance driveways of the property. Property signage GOOD PRACTICE GUIDELINES: Schedule regular maintenance. AKINSDE GARDENS FIN30

34 WKWAYS WKWAYS TYPE OF COMPONENT(S): OVERL CONDITION: Good to Fair Poured concrete CURRENT REPLACEMENT COST: EXPECTED LIFE: ACTU AGE: EFFECTIVE AGE: $29, N/A 26 9 $29, N/A 21 1 Concrete Original 25% $29, N/A Concrete Original 25% $29, N/A 11 2 Concrete Replaced $16, N/A 2 33 Pavers $5, N/A 20 5 Concrete Original 25% Concrete Original 25% REMAINING LIFE: COMPONENT DESCRIPTION: Poured concrete walkways are located throughout the property. Concrete paver walkways lead up to some entrances. CONDITIONS NOTED: Minor cracking was noted at various locations. Concrete in front of the garage doors has recently been replaced. A section of walkway leading to a front entrance of a unit was recently replaced. Original concrete walkway Replaced concrete in front of garage doors Replace concrete walkway Concrete pavers GOOD PRACTICE GUIDELINES: Replace deteriorated pavers as needed. Seal cracks as they occur. Do not use salt for deicing, as it can cause spalling and premature deterioration of concrete components. An application of a penetrating sealer will protect the surface from spalling and freeze / thaw damage. AKINSDE GARDENS FIN31

35 GARAGE FLOORS & CARPORTS GARAGE FLOORS & CARPORTS CURRENT REPLACEMENT COST: TYPE OF COMPONENT(S): Varies EXPECTED LIFE: ACTU AGE: OVERL CONDITION: Fair to Poor EFFECTIVE AGE: $75,600 Garage Floor Slabs 2015 $66,150 Garage Floor Slabs 2016 $66,150 Garage Floor Slabs 2017 REMAINING LIFE: $21,263 Carports Concrete Piles Repair 50% 2016 $21,263 Carports Concrete Piles Repair 50% 2017 $109,18 Carports Parking Surface 50% 2016 $109,18 Carports Parking Surface 50% 2017 COMPONENT DESCRIPTION: Garages have poured concrete slabs. Carports have a concrete slab that has been resurfaced with asphalt. The carport structures are supported by metal posts on concrete piles and wood beams. CONDITIONS NOTED: Localized garage floor slabs are deteriorating with cracking and heaving. Some slabs have been repaired over the last few years. The remaining slabs are scheduled for repair from 2015 to Carport parking surfaces and concrete piles are deteriorating. It is recommended that the concrete slab and asphalt topping be removed and replaced with a new asphalt surface. The concrete piles should be repaired in conjunction with asphalt replacement. Garage floor slab Carport Carport slab is deteriorating Deteriorating concrete pile SPECIFIC RECOMMENDATIONS: Continue with scheduled replacement of garage floor slabs. Repair concrete piles in conjunction with replacement of the asphalt. GOOD PRACTICE GUIDELINES: Schedule regular maintenance. AKINSDE GARDENS FIN32

36 AREAS OF CONCERN It should be noted that some deficiencies may not become apparent during the Reserve Fund Study site inspections since only a sample of components are reviewed. Not included are components considered to be the responsibility of the unit owners. Although a report on the cursory inspection of areas of concern follows, this should not be considered a technical audit. General comments relating to the condition of the components are included to give a better overall understanding of conditions of the property. Often these conditions may require further investigation for an accurate estimation of repair scope and funds required. No cost centres have been included in this report for these items. AREAS OF CONCERN AREAS OF CONCERN COMPONENT DESCRIPTION: A portion of a downspout is missing allowing water to drain in close proximity to the building foundation and should be repaired to direct drainage away from the building. A downspout is in the upright position and should be placed horizontally to direct water away from the building foundation. A section of a downspout is crushed and inhibits water drainage away from the building and should be replaced. A section of fascia is missing exposing the underlying wood to the elements and should be replaced. Missing section of downspout Upright downspout extension Crushed downspout extension Missing section of metal fascia AKINSDE GARDENS FIN33

37 FINANCI ANYSIS The financial spreadsheets that follow summarize and link the quantity survey, conditions noted, estimated life cycles, replacement costs and future expenditures. COST/LIFE DATA" SPREADSHEET Summarizes the following key information: Common Property Component Defines the components to be replaced by the Reserve Fund. Current Replacement Cost Estimates the current replacement cost of each component. Expected Life Expresses the expected life of each component. Actual Age Expresses the actual age of each component. Effective Age The expected life of each component, adjusted to reflect the conditions noted. Remaining Life Determines the expected life of each component, less the effective age of that component. Annual Replacement Cost The Current Replacement Cost of each component, divided by its Expected Life an initial indicator of annual reserve fund contribution requirements. "COST/LIFE ANYSIS" SPREADSHEET Analyses the information from the Cost/Life Data spreadsheet and determines the following: Percent of Total Contribution Determines the percentage of each component s Current Replacement Cost in relation to the Total Replacement Cost of all components. Actual Present Fund Determines the percentage (as calculated above) of the Actual Present Fund, allocated proportionately for each component. Expired Equity Represents the value of each component, that has been used up, calculated by multiplying the Effective Age by the Annual Replacement Cost. Shortfall Calculates the difference between the Expired Equity and the Actual Present Fund. Contingency In order to compensate for the variables discussed previously, a contingent amount is included in the totals. Based on 10% of the total replacement cost spread over a 30year period, and injected annually. AKINSDE GARDENS FIN3

38 FUNDING PLAN SCENARIOS The ideal Reserve Fund scenario would see adequate contributions being made from the start of the project s life. Unfortunately, this is a rare occurrence. As the age of a project advances, the catchup of underfunding becomes increasingly difficult. The first step in establishing appropriate contribution figures is consideration of the expenses for which the fund is responsible. It is not practical or reasonable to suggest condominiums maintain a level of funding sufficient to accommodate a major catastrophe. In those situations, it is anticipated the Condominium Board will levy a Special Assessment. However, it is prudent to maintain a reasonable minimum level of funding (Safety Margin), to help offset unpredictable expenses. The Study Provider determines a Safety Margin taking into account various factors including the age, size, and location of the project. The purpose of this Study is to determine a Reasonable Annual contribution figure that will generate a cash stream Sufficient to cover predictable expenses (Annual Replacement Costs), and to help offset unpredictable expenses (random sewer collapse). Various contribution figures are tested, to find the funding scenario that maintains a cash stream that flows as closely to the Safety Margin as possible (Reasonable), without dipping below it (Sufficient). Each funding scenario follows the projected flow of cash over a 25year period, starting with the base year (now), and incorporates the effects of interest and inflation. The cash flow is tracked through: Opening Balance begins with current fund balance Expenses cost of components to be replaced or refurbished for each year, with inflation compounded annually Interest calculated on the closing balances for each year, after expenses, and compounded annually Annual Contributions are treated as being contributed at the end of each year, and do not factor in interest accrued for that year; inflation is compounded annually Additional Assessments may be included in some funding plan scenarios, usually when major capital replacement or refurbishment of common property is required within the first few years. Closing Balance each year s closing balance The effects of each funding scenario are illustrated in graph form, by plotting the Closing Balance for each year, along with the Safety Margin. Two Funding scenarios are presented: Present Course Reasonable and Sufficient AKINSDE GARDENS FIN35

39 PRESENT COURSE This spreadsheet predicts the flow of funds, based on the current fund balance, current contributions (inflated over time), and predicted expenses. This enables the Board to preview the longterm effects of current funding levels. Review of this funding Scenario can confirm the adequacy of fund balances and contribution levels, or reveal the need for change. REASONABLE AND SUFFICIENT This funding plan suggests the collection of an Annual Contribution approximately equal to the Annual Replacement Cost, in conjunction with the portion of Shortfall required to generate and maintain a cash flow that is: Reasonable covers predictable expenses, yet maintains a cash stream that flows as closely to the Safety Margin as possible Sufficient does not fall below the Safety Margin, required to help offset unpredictable expenses TEN YEAR REPLACEMENT SCHEDULE To assist the Board, replacement scheduling of common property components is summarized in chart form. It starts with the Base Year (now), and schedules the predicted replacement of components for a 10year period. The 10 Year Replacement Schedule is included with all scheduling scenarios. CONCLUSION The estimate of life expectancies and replacement costs is, at best, a good guess. However, the Reserve Fund Study Report allows management decisions to be made with the best long range plan available, which is far better than reacting to immediate needs or being surprised with a substantial unbudgeted expense. Review of the "cash flow" and 10year replacement schedule, will help facilitate decisions regarding the scheduling of component replacement and collection of shortfalls required to meet the financial demands of the Corporation. To maximize the effectiveness of the Reserve Fund Study Report, updates are required on an ongoing basis. AKINSDE GARDENS FIN36

40 QUIFICATIONS Wade Engineering Ltd. was established in 1986, as an independent consulting firm, specializing in preparation of specifications for and/or review of work in progress for the restoration and repair of building envelopes and exterior finishes. A combination of technical expertise and hands on experience has resulted in an extensive understanding of the repair and replacement procedures for common property components. Years of involvement in the condominium industry, including involvement with some education based organizations, has resulted in a sound understanding of the Reserve Fund requirements for condominiums, as well as the challenges facing Managers, Board Members and owners. Wade Engineering Ltd. carries Commercial General Liability insurance, Professional Liability insurance and Document Replacement Insurance. AKINSDE GARDENS FIN37

41 STUDY PERSONNEL The Reserve Fund Study is conducted through the combined skills of the following personnel: A. C. (Al) King, B.A.Sc., P.Eng., A.C.C.I., F.C.C.I. University of Waterloo, Bachelor of Applied Science degree University of Waterloo, Professional Engineering degree Association of Professional Engineers and Geoscientists of Alberta (APEGA) Alberta Roofing Contractors Association (ARCA) Accepted Roof Inspector Roof Consultants, Inc. (Member) Canadian Condominium Institute (Associate) Canadian Condominium Institute (Fellow) Ron Shannon, Manager, Building Envelope Services Building Envelope Consultant with Wade Engineering for 1 years. Southern Alberta Institute of Technology (SAIT), Certified Moisture Control Technician Roof Consultants, Inc. (Member) Tony Foster, Manager, Roofing Services Roof Consultant with Wade Engineering for 15 years. Alberta Advanced Education & Career Development, Journeyman Roofer with an InterProvincial Red Seal. Alberta Roofing Contractors Association (ARCA) Accepted Roof Inspector. Roof Consultants, Inc. (Member). Jennifer Watson, C.Tech, Architectural Technologist Reserve Fund Study Coordinator and Supervisor with Wade Engineering for over 7 years. Southern Alberta Institute of Technology (SAIT), Certified Moisture Control Technician. Association of Science & Engineering Technology Professionals of Alberta (ASET), Certified Technician. Northern Alberta Institute of Technology (NAIT), Architectural Technologist Diploma. Shantel Murray, Director of Reserve Fund Studies, Business Manager Business Manager with Wade Engineering for over 10 years. Director of Reserve Fund Studies managing team that has completed hundreds of Reserve Fund Study Reports. Company liaison presenting Reserve Fund Study Reports to the Condominium Corporations. Canadian Condominium Institute (past Board Member) Past Condominium Owner (served as Vice President) Other individuals employed by Wade Engineering Ltd. may be called upon for technical and/or clerical assistance. Outside professionals may also be consulted. AKINSDE GARDENS FIN38

42 REFERENCE SOURCES Information used in completing this Study was collected from the following sources: Condominium Plan ByLaws Financial Statements Technical Reports on Common Property Components Site Investigations Property Manager and/or Board Members Technical Resource Material The life cycles of common property components were determined using a combination of the following: Recognizable conditions Experience factors Discussion with manufacturers, suppliers and service contractors Replacement costs of common property components were determined using a combination of the following: RSMeans Repair and Remodelling Cost Data 201 RSMeans Square Foot Costs 201 Experience with similar developments Discussion with manufacturers, suppliers and service contractors Review of financial documentation AKINSDE GARDENS FIN39

43 COST/LIFE DATA 06/11/201 CURRENT ANNU REPLACEMENT EXPECTED ACTU EFFECTIVE REMAINING REPLACEMENT NO. COMPONENT COST LIFE AGE AGE LIFE COST 1 Roofing Laminate Shingles Buildings $ 217, $ 8,700 2 Roofing Laminate Shingles Carports $ 13, $ Roofing 3Tab Organic Shingles Carports $ 1,20 25 N/A 2 1 $ 1,69 Eavestroughs & Downspouts Buildings $ 6, $ 2,588 5 Eavestroughs & Downspouts Carports $ 1, $ Fascia Buildings $, $ 1,9 7 Fascia Carports $ 13, $ 5 8 Soffit Buildings $ 58, $ 1,956 9 Soffit Carports $ 1, $ Vinyl Siding Buildings $ 82, $ 28, Vinyl Siding Carports $ 1, $ Sealant Replacement $ 7, N/A 11 $ 3, Sealant Repair $ 5,250 5 N/A 0 5 $ 1,050 1 Parging Repair $, $ Windows $ 595, $ 19,81 16 Windows Basement $ 39, $ 1, Patio Doors Sliding $ 75, $ 2, Patio Doors Hinged $ 23, $ Exterior Unit Lighting $ 13, $ Exterior Unit Accessories $ 17, $ Window Wells $ 13, $ Doors Entrance w/ Sidelite $ 7, $ 1, Doors Entrance $ 25, $ Doors Garage $ 66, $ 2, Asphalt Surface $ 227, N/A $ 9,08 26 Curbs Precast Replaced $ N/A 3 22 $ Curbs Precast Original $ 2, N/A 23 2 $ 8 28 Entrance Steps Front $ 51, N/A 27 8 $ 1,85 29 Entrance Steps Front Precast Slab $ 15, N/A 5 30 $ 3 30 Entrance Landings $ 3, N/A $ Entrance Steps Rear $ 61,25 35 N/A 2 11 $ 1, Fencing $ 120, $, Fencing Stain $ 22, $ 3,170 3 Fire Hydrants $ 10, $ Fire Hydrants Paint $ N/A 9 1 $ Landscaping $ 5,250 5 N/A 1 $ 1, Light Standards $ 17, N/A 26 9 $ Light Standards Paint $ 2, N/A 1 9 $ Property Signage $ 2, N/A $ 8 0 Walkways Concrete Original 25% $ 29, N/A 26 9 $ Walkways Concrete Original 25% $ 29, N/A 21 1 $ Walkways Concrete Original 25% $ 29, N/A $ Walkways Concrete Original 25% $ 29, N/A 11 2 $ 850 Walkways Concrete Replaced $ 16, N/A 2 33 $ 68 5 Walkways Pavers $ 5, N/A 20 5 $ Contingency 9, $ 9, TOT $ 3,008,989 $ 119,766 NON RECURRING EXPENSES 112 Garage Floor Slabs $ 75, Garage Floor Slabs $ 66, Garage Floor Slabs $ 66, Carports Concrete Piles Repair 50% $ 21, Carports Concrete Piles Repair 50% $ 21, Carports Parking Surface 50% $ 109, Carports Parking Surface 50% $ 109, Landscaping Regrading (2015) 1 1 $ 26, Landscaping Regrading (2016) 1 2 $ 26, Landscaping Regrading (2017) 1 3 $ 26, Landscaping Regrading (2018) 1 $ 26,250 FIN 123 Landscaping Regrading (2019) 1 5 $ 26,250 TOT $ 599,970 Akinsdale Gardens 0 WADE ENGINEERING LTD.