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FRUCHTMAN & ASSOCIATES CONSULTING MECHANICAL ENGINEERS September 27, 2018 Ocean Towers Housing Corporation 201 Ocean Avenue Santa Monica, CA 90402 Attn: Mr. Gerry Suenram General Manager Re: Ocean Towers 201 Ocean Avenue Santa Monica, CA 90402 Report on Condition of HVAC and Plumbing Systems On September 11, 2018 we were retained to perform a cursory evaluation of the common area heating, ventilation, air conditioning (HVAC); and plumbing systems serving the building. Plans of these systems were requested, but are apparently not available. As part of our work we conducted one site visit. This visit was limited to an observation of piping and equipment which is readily visible. No destructive testing was performed to examine piping and equipment within walls or above ceilings. This report summarizes our preliminary findings and recommendations for moving forward. In formulating the opinions stated in this report, we relied upon the following: A cursory site visit on September 26, 2018, with Adam King of Wolf Plumbing. Conversations with Mr. Gerry Surenam General Manger Conversations with Mr. Adam King of Wolf Plumbing. Correspondence with manufacturers representatives for Baltimore Air Coil (cooling tower manufacturer) and Raypak (heating hot water and domestic hot water boiler manufacturer). Building and Systems Description Ocean Towers is a high-rise residential complex consisting of approximately 317 dwelling units in two high-rise towers. Each high-rise tower has 17 floors. The towers sit on a podium structure which includes three levels of parking - one subterranean level, one ground level, and one above grade parking level. There are also common area spaces including a large lobby area, fitness center and various support spaces. The complex was constructed in 1971. The sanitary waste and vent piping and storm drainage systems are cast iron with no-hub couplings. The domestic water piping systems are predominately copper. However, some active sections of galvanized steel piping were also noted. One domestic water service supplies water to the entire building. This service is piped to a triplex booster pumping system. Water is pumped from the pumping system to both residential towers, and to a mechanical room, which houses two domestic hot water boilers and a vertical storage tank. Hot water is distributed from this system to the building. The hot water distribution 11315 WASHINGTON PLACE PHONE: 310-915-6110 LOS ANGELES, CALIFORNIA 90066 FAX: 310-915-6107 w w w. f r u c h t m a n e n g. c o m W:\Project Folders\o\otsm2345\otsm2345 - M&P report.doc

Ocean Towers Santa Monica, CA M & P Report page 2 system includes pressure reducing valves on the lower 14 floors of the building, and a series of recirculating pumps which are intended to recirculate hot water through the building back to the hot water system. Each of the two residential towers in the building are supplied with condenser water from two separate HVAC central plants. Each central plant consists of a closed circuit cooling tower, a heating hot water boiler, and two condenser water pumps. The heating hot water boilers are located in the same room as the domestic hot water heaters. The condenser water pumps and piping systems distribute condenser water throughout each building. 201 Ocean Avenue

Ocean Towers Santa Monica, CA M & P Report page 3 Observations/Comments A. Sanitary waste piping system Sanitary waste piping from the residential dwelling units and other plumbing fixtures throughout the complex collect together within the parking garage, and exit the building, where it connects to the municipal sewer system. There is an extensive network of cast iron piping which is visible within the parking garage areas. Many sections of this piping have been replaced. Where piping has not been replaced, we observed many segments of piping which are corroding and exhibiting evidence of leaks (present and imminent), and cracking. In older cast iron piping systems such as this we often recommend that random sections of piping be removed for analysis at a laboratory. This is used to assist in determining how much life remains in the piping. However, based upon our observations, and the history of pipe leakage within the garage, we recommend that all of the sanitary waste piping within the garage be replaced as soon as possible. We did not see any of the cast iron piping within the residential towers, as it is concealed behind ceilings and walls. It is likely in similar condition as that which was observed in the garage. However, if there is not an extensive history of leakage, it may be possible to defer replacement of this piping for a while if necessary. Random removal of segments of piping and laboratory testing could assist in determining the expected remaining life of this piping, but regardless, periodic piping failures should be expected until the piping is replaced. B. Sanitary vent piping system Sanitary vent piping in the building is not under pressure, and is not typically exposed to water flow. Accordingly, water leakage is not generally an issue with this piping. However, leakage from cracks in the piping, or separations of the couplings or joints could cause odors to discharge from the piping. As with any 50 year old piping system, problems could arise at any time, so ideally, replacement would be prudent. This could be done most cost effectively if done in conjunction with the sanitary waste piping replacement. However, if the homeowners choose not to invest in replacement, at a minimum we would recommend that the piping be visually examined and repaired or replaced where problems are evident. C. Storm water piping system This piping system is nearly 50 years old, and consequently, leaks could occur at any time. We understand that there has not been an extensive history of leakage in this system, accordingly, it may be possible to defer replacement of this piping for a while if necessary. Random removal of segments of piping and laboratory testing could assist in determining the expected remaining life of this piping, but regardless, periodic piping failures should be expected until the piping is replaced. D. Domestic cold water piping system At some point in the past, most of the domestic water piping in the building was repiped in copper, from galvanized steel. Major work to the copper piping system does not appear to be necessary at this time. However, there is still an active section of 6 diameter galvanized

Ocean Towers Santa Monica, CA M & P Report page 4 steel pipe which extends from where the water service enters the building, to the suction of the domestic water booster pumping system. Parallel to this is a 6 diameter copper pipe, which was apparently installed within the past couple of years, but for some reason was never placed on line. The copper line work should be completed, pressure tested, and placed on line as soon as possible so that the galvanized system can be removed from the system. All fittings and couplings should be checked to ensure that they are suitable for domestic water systems. Any other segments of galvanized piping which remain should also be removed and replaced with copper. E. Domestic hot water piping system We understand that the domestic hot water piping system was re-designed and re-piped in copper sometime in the mid to late 90 s. We have also been advised that the building is experiencing water pressure problems, recirculation problems, and mixing of hot and cold water. These symptoms are characteristic of an improperly designed hot water recirculating system. We recommend that the building retain the services of a qualified firm to create asbuilt drawings of the entire domestic water piping system. Once these drawings are available, they should be provided to an engineering firm for review and repair recommendations. F. Domestic water booster pumping system Water pressure for the entire complex is generated at a triplex domestic water booster pumping system. However, at the time of our visit, two of the three pumps were off line, and valved off. Only a single pump is currently operational. We do not know why this is the case. The entire pumping system (all three pumps) should be placed in operation as soon as possible. This is urgent as there is currently no redundancy in the system, so should the one active pump be lost, the upper floors and possibly the entire complex will be without water. G. Domestic hot water heating systems The building has two domestic hot water heaters serving a single vertical storage tank. The heaters were manufactured by Raypak in 2008, and should, if properly serviced and maintained, have 10 or more years of life remaining. While at the site it was noted that the air filters which serve these heaters were loaded up with dirt. These filters should be washed, at least quarterly. Failure to do so could result in heater failure. The hot water storage tank was manufactured in 1971. This is very old for a storage tank. For it to have lasted this long, it has likely been serviced and re-lined, perhaps several times. The access cover should be pulled and the inside of the tank should be examined by a qualified service company. If the tank has not been regularly serviced and maintained, then there could be sufficient loss of metal to warrant a new tank. There is an existing expansion tank adjacent to the hot water heater. Expansion tanks are required to help regulate pressure in the system when there is no hot water demand. The installed expansion tank appears to be too small for the size of the hot water system in the complex, and may be partially responsible for some of the pressure problems that the

Ocean Towers Santa Monica, CA M & P Report page 5 building has been experiencing. We recommend that the sizing be checked, and the expansion tank be upsized as needed. H. Sewage ejection pit covers There are a series of sewage ejection and sump pits in the lower parking level of the building. The covers of the sewage ejection pits are not properly sealed, allowing sewer gases to escape into the room. Foam spray has been applied to the joints around the various openings around the sump pit cover. We recommend that the covers be modified or replaced with suitable tight fitting sealed and gasketed covers to prevent sewer gases from escaping into the room. I. Cooling towers Each building has a cooling tower. The towers were manufactured in 1999, and are therefore nearly 20 years old. The towers have galvanized steel basins. If well maintained, these types of towers generally have a 20 to 25 year expected useful life. We were unable to examine the inside of the tower basins, which are one of the most critical parts of the tower. The external portions of the basins which we were able to see did not appear to have any surface corrosion. However, pipe connections and other parts were corroded. The fan shafts have heavy corrosion. The bearings on one of the towers sound like they have failed, and have caused the fan wheel to spin improperly. Replacement of the towers should be planned for the very near future. The tower which has the bad bearings should be attended to as soon as possible. In lieu of replacement, the towers could be refurbished. A comprehensive refurbishment would include grinding the interior of the basin and other wetted surfaces to bare metal, and re-coating; replacing the shafts and fan wheels with new; replacing the bearings with new; replacing the belts with new; replacing the fill material; etc. While less expensive than a replacement, a refurbishment will increase the remaining life of the tower, but it will not provide the longevity, reliability, and efficiency of a new tower. J. Condenser water piping system One of the two condenser water piping systems observed in the cooling tower room appears to have been fairly recently replaced. The other condenser water piping system observed appears to have an older, and possibly original piping system. We recommend that samples of the remaining older condenser water piping be removed and evaluated in a laboratory to determine the condition and remaining useful life. Replacement of this piping may very well be recommended. K. Miscellaneous Drains While walking the site, Adam King noted that the drains in the heater room, the fire pump room, and other mechanical spaces no longer function. Since these rooms are vulnerable to pipe leaks and water discharge, it is important that these drains function properly. Suitable troubleshooting and repairs should be made to minimize damage in the event that water is discharged into these rooms.

Ocean Towers Santa Monica, CA M & P Report page 6 L. Heating hot water boilers The two heating hot water boilers were manufactured in 2001 and in 2002. They are therefore approximately 17 years old. Copper fin tube boilers such as this typically have a 20 to 25 year life, if maintained well, and the building has maintained a good water treatment program. Funds should be set aside for replacement in the next couple of years. M. Fire sprinkler heads We did not evaluate the fire sprinkler system as part of our work. However, it was noted that many of the fire sprinkler heads in the parking garage appear to be original, and are therefore nearing 50 years of age. According to the National Fire Protection Association (NFPA) Pamphlet 25, and local requirements, heads which are 50 years old must be either replaced, or tested to ensure that they will function if needed. If the heads are able to be retained, then this procedure needs to be repeated every 10 years until the heads are replaced. Accordingly, funds should be set aside for possible replacement. Longitudinal Crack in Sanitary Waste Pipe

Ocean Towers Santa Monica, CA M & P Report page 7 Corrosion and Leak in Sanitary Waste Pipe Corrosion and Leak in Sanitary Waste Pipe

Ocean Towers Santa Monica, CA M & P Report page 8 Foam Spray Used in an Effort to Seal Sewage Ejection Pit Vapor Leaks Severely Corroded Cooling Tower Fan Shaft

Ocean Towers Santa Monica, CA M & P Report page 9 Condenser Water Piping Surface Corrosion This report is just a brief overview of the issues observed during our single site visit, and was limited to a cursory evaluation of readily visible piping and equipment in the lower portion of the building. As noted, significant work is needed to restore these systems to a reliable condition. Further testing and evaluation is needed to have a full understanding of all the potential issues in the complex. Please review and contact me with any questions you may have. Very truly yours, FRUCHTMAN & ASSOCIATES David J. Fruchtman, P.E., CEM, IAPMO Certified Plumbing Inspector, IAPMO Certified Mechanical Inspector President