Investigative Journalism and Learning Hub - BCS Strata Management ignored request for access to SP52948 documents before general meeting on 29 July 2014

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From: SP52948 owner
To: Russell Young BCS Strata Management
Subject: Re: ADVANCE NOTICE: Access to Strata Plan 52948 documents before AGM 2014
Date: 29/7/14, 2:41 pm

Hello Russell,

I am aware of the Deed. It only applies to me "protecting" the OC and the Strata Manager for PAST actions. The Deed does not indemnify the owners corporation from future events. Also, it does not mean that I will raise a new case with Department of Fair Trading, NCAT (old CTTT), or the Criminal Courts. There are many better alternatives at no-cost to me.

Nobody can prevent other current or ex-owners from raising all or some of the issues that I did in past. Owners Corporation and the Strata Manager are not protected from other entities.

As an example, there is full evidence that some townhouse owners claimed back-payments for personal water and gas reimbursements up to seven years in the past. That means any other current or previous townhouse owner can do the same, which makes ME liable too because I, as an owner in the complex, have to provide funds for it, although I am not guilty for this misdemeanour. Special By-Law 13 is void in that regard because it was blatantly breached even in FY2014. During this financial year, the Strata Manager failed to comply with the Special By-Law 13 several times. My claim cannot be challenged by anyone.

Or, engagement of Grace Lawyers who charged $4,171.35 in this financial year and were "dismissed" in June because no significant progress was made in regards to illegal business BigAir running in the complex. On 31 January 2014, Grace Lawyers sent letter to BigAir to remove their equipment by 4 February 2014 and it seems the telecom carrier failed to comply. At the same time, owners lost rightful income and any benefit from their business since 2004. That cannot be good for owners.

One more item to clarify: my Deed applies to NSW only, not any other jurisdiction.

I am asking for access to documents as per Section 108 to check enforcement of Special By-Laws, SSMA 1996, and other State and Federal Laws. What I will do with the documents is entirely my problem. I am an investor and owner, and I have absolute right to get these documents. They are given in other complexes free of charge and automatically (when there is nothing to hide).

Because I indemnified the parties for the past actions does not mean that practices against the law can continue because the Executive Committee and the Strata Manager are now "safe" to do whatever they want.

Duty of the Strata Manager is to provide access to documents, uphold SSMA 1996 and other State and Federal Laws, and ALL the By-Laws of the strata plan in an equitable manner.

I will pay for Section 108 and submit request for the documents in about one month time.

On 07/29/2014 09:26 AM, Russell Young wrote:

Good morning,

I acknowledge receipt of your email dated 26 July 2014.

I am not obliged to send you copies of the documents specified in your email.

If you want to obtain copies of those documents, you will need to apply to inspect the books and records of the owners corporation in accordance with section 108 of the Strata Schemes Management Act 1996 (as you indicate you intend to do prior to the AGM).

I remind you that on 13 February 2014 you entered into a deed of release with the owners corporation.

In accordance with the deed of release, you agreed to release the owners corporation from, and you covenanted not to make any further claims against the owners corporation in respect of, all issues that you raised in previous litigation before the Strata Adjudicator, the CTTT and the District Court.

The documents specified in your email, particularly (but not limited to) points (b), (e) and (l), concern issues which you raised in the previous litigation and in respect of which you are not allowed to make any further claims against the owners corporation because of the deed of release.

If you breach the deed of release, you will be liable to indemnify the owners corporation against all costs and expenses it incurs concerning any legal action you take in contravention of the deed (including legal costs on a full indemnity basis).

I trust that you are fully aware of your obligations under the deed of release and will not breach those obligations.

Kind regards,

Russell Young

Portfolio Manager

Raine & Horne

Level 2, 51 Rawson Street, Epping, NSW, 2121

Locked Bag 22, Haymarket NSW 1238

-----Original Message-----

From: SP52948 owner

Sent: Saturday, 26 July 2014 11:15 PM

To: Russell Youn BCS Strata Managementg

Subject: ADVANCE NOTICE: Access to Strata Plan 52948 documents before AGM 2014

Hello Russell,

This is an advanced notice of my intent to access strata plan 52948 documents in accordance with NSW Strata Schemes Management Act 1996, Division 4 - Inspection of records and issue of certificates, Section 108 Inspection of records of owners corporation.

There are two ways these documents can be obtained:

a) Voluntarily: in most other complexes they are provided by the strata manager and the executive committee by default.

b) Through my payment as per Section 108 of the SSMA 1996.

I envisage that the official request will be generated one month before the scheduled Annual General Meeting 2014, which no0rmally occurs in October each year.

a) Full details of audited financial statements (balance sheet, income and expenditure statements, debtor financial status report, cash book payments by account code, cash book payments summary, and similar).

b) Proof of Special By-Law 4 compliance in whole FY2014 by owners of Lot 3 who obtained exclusive use rights to common property in 2002.

In regards to that Special By-Law, I am now warning Raine & Horne and the Executive Committee that this by-law is DELIBERATELY UNDISCLOSED in official strata documents, as can be seen in BCS DocID 2541110, published at hub.communitye.com.au on 10 October 2011. This document has to be updated and all owners notified about the updated version, along with newest By-Laws 10, 11, 12, and 13.

As a reminder, owners of Lot 3 must indemnify and keep indemnified owners corporation by having at least 5 million public liability insurance at all times.

A copy of their current insurance policy that proves compliance with the Special By-Law 4 will have to be made public.

c) Proof of valid contract allowing BigAir Group to run wireless services in our complex without proper reimbursements to the owners corporation since 2004.

d) Correspondence between Strata Plan 52948 and ACMA (Australian Communications and Media Authority). If ACMA was never notified of the contractual breaches by Whome (and their current owner BigAir Group), that would be considered a huge lapse of duty of care by the executive committee and the strata manager who failed to manage the contract since 2004.

e) Summary of the audit of townhouse owners who enjoy payments for private water and gas usage having additional gas connections. The same audit was conducted twice for owners in the four building in last four years but never for townhouse owners.

The notion by some owners, especially, one EC member, that townhouse owners deserve to be paid for their own gas and water usage because "they pay too much" for services that only owners in buildings enjoy is false because:

* The water and gas reimbursements are not applied fairly even between townhouse owners;

* The owners in buildings do not spend common water and gas usage as much as most townhouse owners get paid for.

* Strata Plan was registered that way.

* By receiving reimbursements for private water and gas usage from the Admin Fund, a group of around 18-19 owners (depending on the year), effectively decreases their voting rights which are exclusively based on contribution to common funds! Therefore, at the AGM 2014, all such townhouse owners will have will have to get lower entitlement rights to vote (proportional to the final figure of their contribution to the common funds, including their water and gas reimbursements).

f) Copies of all bids for the renewal of the following contracts and large projects that have to be approved at the Annual General Meeting 2014 (all these contracts are well above $30,000.00 and there must be at least two quotes for each of them):

Strata Manager

Caretaker

Fire Services (currently managed on a month-by-month basis)

Insurance

Painting and repairs of external walls on four buildings

g) Response by ThyssenKrupp in regards to lift inspection report by Vertical Transport Management Services dated 25 February 2014 and full report on the schedule of major repairs (as required by proper 10-year Sinking Fund plan, which owners certainly do not have at this stage).

For example, the report by Vertical Transport Management Services carefully avoids details of the lift repairs which are outside the contractual agreement with ThyssenKrupp.

Note that professional report by ThyssenKrupp in December 2013 paints much bleaker status of the lift maintenance requirements. In December 2013, ThyssenKrupp released their Risk Implementation Plan for elevators and the cost for dealing with:

* High Risks (rectification required within one year, during 2014) is quoted at budgeted price of $149.644.00;

* Medium Risks (rectification required within three years from now) is quoted at budgeted price of $20,336.00;

* Low Risks (rectification required within five years from now) is quoted at budgeted price of $99,400.00.

* Major upgrade item within one year, during 2014:

Lift Car Landing Door Equipment $250,000.00

Other upgrade items within next five years come up to figure of $385,000.00, additional $150,000.00 in the following two years afterwards (within seven years from now), and additional $200,000.00 within next 10-15 years.

h) Grace Lawyers' reports in regards to BigAir Group contract and current actions in regards to removing unwanted business from the complex permanently.

i) Full 10-Year Sinking Fund plan, as prepared by a professional body, not a few laymen in the complex who believe that 3% inflation rate growth can account for major works expenses.

j) Full report in line with the Work Health Safety (WHS) Laws that commenced on 1 January 2012 and are accompanied by the Model Work Health and Safety Regulations (MWHSR). The Strata Manager and the EC are to report what actions were completed and which ones are still outstanding since July 2012 (more than a year ago), which Napier & Blakeley's building inspection documented.

k) Updated building inspection report by a professional body, in similar manner as Napier & Blakeley completed in July 2012 and the summary which items from that report are still outstanding.

l) Proof who authorised and audited water and gas reimbursements for selective townhouse owners three years after they were incurred (paid in 2014 but invoices are from 2011), which is against Special By-Law 13, Section 2 b. and d.. Plus, some townhouse owners received GST component and some not.

The fact that some townhouse owners received reimbursements so late after the original invoices, in non-compliance with the By-Law creates a litigation risk and allows all townhouse owners to make such claims for any previous year since 1998 (especially those who left the complex and were never told about such scheme as it was hidden until I uncovered it in 2011).

Regards,