Strata Plan LMS 9012 in Coquitlam requires a full review of its building envelope due to persistent moisture issues. A specialized engineering firm, 'B.C. Building Diagnostics Ltd.', has proposed an investigative report and remediation recommendations for $25,000. The strata's operating budget has $10,000 allocated for 'Consulting Fees', and the CRF has sufficient funds. How should the strata manager advise the council to fund this engineer's report?

Question: Strata Plan LMS 9012 in Coquitlam requires a full review of its building envelope due to persistent moisture issues. A specialized engineering firm, 'B.C. Building Diagnostics Ltd.', has proposed an investigative report and remediation recommendations for $25,000. The strata's operating budget has $10,000 allocated for 'Consulting Fees', and the CRF has sufficient funds. How should the strata manager advise the council to fund this engineer's report?

Answer options:

• Approve the expense from the operating budget, overspending the 'Consulting Fees' line item by $15,000.
• Fund the entire $25,000 from the contingency reserve fund (CRF) with a 3/4 vote. ✅ Fund $10,000 from the operating budget and the remaining $15,000 from the CRF with a 3/4 vote.
• Decline the report due to insufficient operating budget funds and postpone the issue.

Correct answer: Fund $10,000 from the operating budget and the remaining $15,000 from the CRF with a 3/4 vote.

Explanation: Expenses beyond the annual budget for common expenses, such as this engineering report which exceeds the allocated amount, fall under Section 96 of the Strata Property Act and typically require approval by a 3/4 vote of owners if funded materially from the CRF.