*** A new Reserve Fund Study was made in 2011 ***
This report is old!
Reserve Fund Study Update Based on Site Inspection - TSCC 1431
This report was prepared by Brown & Beattie - Building Sciences Engineering at the request of Elaine Waller of Newton-Trelawney Property Management Services acting on behalf of Toronto Standard Condominium Corporation No. 1431.
This Study is an update of the Comprehensive Reserve Fund Study carried out by Halsall Associates Limited in 2004.
This report contains their recommendations based on their site inspection and their understanding of the building standards we wish to maintain.
They have summarized the revisions from the previous Study in the “Summary of Significant Changes from 2004 Study” column in the attached Repair/replacement Information table. The “Life Remaining” values have been reduced in general by 3 years to reflect the time passage between this update and the original Study. Budgets have been adjusted by an Assumed Inflation Rate of 2% per year.
General Building Description:
Toronto Standard Condominium Corporation No. 1431 is a high-rise condominium complex located at 11 Lee Centre Drive in Toronto, Ontario. It includes 271 units. The complex was constructed around 2001. Some facilities are shared with the condominium located at 1 Lee Centre Drive. These shared facilities are excluded from this Study.
From the Ownership and Repair & Maintenance sections of the Corporation's declaration the building components that are to be maintained by the Corporation as part of this Study are summarized as follows.
Common Elements Included in Study
- Exterior building elements including foundations, roofs, walls, exterior doors and windows.
- Parking garage underneath the building.
- Interior finishes in common areas.
- Common mechanical equipment including storm and sanitary systems, etc.
- Common electrical equipment including interior common area lighting, transformers and intercom system, etc.
The following components are understood to be the responsibility of the individual unit owners or form part of the shared facilities and are excluded from the Study.
Elements Excluded from Study
- Interior building elements including framing, finishes, etc.
- Interior mechanical equipment servicing one unit only.
- Interior electrical equipment servicing one unit only.
- Shared facilities including main garage, site finishes, landscaping, pool, etc.
The cash flow analysis associated with the replacement costs and timing recommendations is based on the following assumed financial values (Please refer to the “Reserve Fund Concepts” for related definitions):
- No. of Units: 271
- Opening Balance (as of June 30, 2008): $575,820
- Present Annual Reserve Contribution: $132,000
- (Present Average Reserve Contribution/unit/month): $40.59
- Minimum Desired Reserve Fund Balance: $200,000
- Present Reserve to Operating Ratio: 10%
- Total Operating Budget (Excluding Reserve): $1,310,063
- Present Maintenance Fee/unit/month: $443.44
- Interest Rate: 4.00%
- Inflation Rate: 2.00%
- Post-”Catch-up” Reserve Contribution % Increase: 2.00%
Run 2-5-Year “Catch-up” Period:
This analysis calculates that if present contributions are increased above inflation as shown in this table for 3 years, future anticipated expenditures should be met. Subsequent contributions may be reduced or need only be increased to match inflation.
5-Year “Catch-up” Period
- 2008-09 Contribution: $148,896
- Average Contribution/unit/month: $45.79
- Average Contribution Increase: $5.20
- Initial % Reserve Increase: 12.8%
- Subsequent % Reserve Increase: 2.00% (to match inflation)