Investigative Journalism and Learning Hub - Waratah Strata Management Ignored Report on Failure to Comply with Decision to Keep Register of Approvals Granted to Owners on 30 June 2019

Welcome to the blog of NSW strata investigative journalism

Subject:
SUMMARY: SP52948 failure to comply with decision to keep register of approvals granted to owners since 2 May 2001
From:
SP52948 owner
Date:
30/6/19, 07:50
To:
Frank Tallaridi Waratah Strata Management
CC:
Robert Crosbie Waratah Strata Management, committee members

Hi,

a) Waratah Strata Management and Uniqueco Property Services failed to comply with EC decision at meeting dated 2 May 2011. Attachment "SP52948-EC-meeting-register-of-approvals-granted-to-owners-2May2001.webp".

In spite of repeated requests, including Motion at AGM 2017 and 2018 which was deliberately removed by Waratah Strata Management without valid reasons (and will be resubmitted for the next EGM/AGM), the register of items that are not common property any longer does not exist. The document was also requested at file strata file search on 31 May 2019 and was not found.

b) One of the consequences of not having the register is that owners corporation paid for PRIVATE facilities over many years, significantly depleting common funds.

c) Attachment "SP529489-gas-and-water-reimbursements-and-gas-levies-Waratah-Strata-Management-31May2019.webp" shows secret summary of water and gas levies and reimbursements. The document is VERY INACCURATE and lot of data missing. At least, it should be now official that Lots 194, 198, 199, 206, and 2013 are not entitled to receive gas usage reimbursements. So far, Waratah Strata Management failed to publish the latest version of the register of second gas connections and full levies owed to owners corporation.

An example of inaccurate register: Lot 209 has second gas connection and Waratah Strata Management was fully aware of it since 12 April 2017 (attachment "SP52948-Lot-209-second-gas-connection-12Apr2017.webp" which also confirms that EC member from Lot 181 was fully briefed about it). Lot 158 tried to approach Lot 209 in person in late 2018, but Lot 209 declined to act so far.

Most of those townhouses claimed gas reimbursements for many years.

d) Note that even the outstanding amount of $0.10 for an owner was enough for EC members and strata managers to disallow their proxy vote at general meetings (attachment "SP52948-proxies-disallowed-to-vote-due-to-outstanding-small-amount-owed-in-levies-as-small-as-10-cents-AGM-2013.webp").


Lot 158, fully acknowledging that all townhouse owners should have equal rights will again propose Motions that guarantee all 26 townhouses fair reimbursements for private water and gas usage. The EC representative from Lot 200 has no understanding how owners corporation pays for common water and gas usage (attachment "SP52948-Lot-200-does-not-understand-correct-structure-for-gas-usage-in-the-complex-4Jan2017.webp") and that MAJORITY of gas usage charges are for swimming pool which is common property (bundled in invoice with Block B).

Regards,


On 16/6/19 12:56 pm, SP52948 owner wrote:

Hi,

SP52948 Audit of second gas connections and conflicting information by Waratah Strata Management and Uniqueco Property Services

In accordance with SSMA 2015 Section 106 (Duty of owners corporation to maintain and repair property) and SSMA 2015 Sections 83, 84, 85, 86) (duty to issue levy notices and enforce payments with 10% simple interest per year for overdue invoices, maintain accounting records, prepare financial statements and other financial records, collect GST on behalf of ATO, and much more) and in compliance with Motion 19 at Annual General Meeting 2018 (strata affairs directly affecting Lot 158), it is requested that full audit on two items be conducted immediately and levies charged as per applicable laws:

Lot 158 has collected significant evidence (with full backing through strata files) that levies for second gas connections were deliberately mismanaged in order for strata managers and building managers to obtain personal benefits through contract renewals without tenders in spite of poor performance.

At present, the lack of proper actions by Waratah Strata Management and Uniqueco Property Services create serious conditions:

a) Owners corporation is denied rightful income,

b) Owners corporation does not apply correct simple interest of 10% for late payments,

c) Owners corporation supports discriminatory behaviour where not all owners are treated equally,

d) Owners corporation does not collect correct GST for ATO. Strata title bodies corporate are treated as public companies under the tax law and must lodge a tax return for any year in which they derive assessable income,

e) Owners corporation provided reimbursements for gas usage to selected group of townhouse owners who have second gas connections ("double-dipping" from common funds),

f) Owners corporation risks higher insurance premiums due to possibility of litigation for unpaid levies for second gas connections over 20 years.

g) Owners corporation does not apply Special By-Law for second gas levies correctly.

h) Apart from financial implications, the additional risk is safety (carbon monoxide poisoning and other faults that can occur with heaters). Carbon monoxide has no smell, taste or colour. When the gas is inhaled, it enters the blood and takes the place of oxygen, which can cause death. Every two years a licensed gas fitter needs to check the heater, flue and the surrounding environment for combustion gasses in the living space.