Investigative Journalism and Learning Hub - Waratah Strata Management Ignored Concerns About SP52948 Mismanagement on 11 February 2017

Welcome to the blog of NSW strata investigative journalism

From: SP52948 owner
To: Robert Crosbie Waratah Strata Management
Subject: Re: SP 52948, 1-15 Fontenoy Road, Macquarie Park.
Date: 11/2/17, 11:49 am

Hi Robert,

Every meeting of people bears some consequences, even when they are informal. Whilst they are non-committal, the purpose of the meeting is not to waste my and your time. We have business relationship where you get paid for services that you need to provide in accordance with the laws. Your email suggests that you think it is only me who wants changes in the way how the complex is managed. That is very wrong assumption. After all, just think why 50 owners voted against BCS at AGM 2016. There are lot of quiet owners who do not wish to be exposed to ridicule and bullying that I had, but they do want better management without formally being involved.

Before we go any further, would you please provide email address of the new Secretary of the EC? If you wish not to be involved in unnecessary relaying of messages that must be given to the Secretary, then it is important that all owners have direct method to communicate with them. One of the By-Laws in the complex is strongly supporting electronic deliveries. The alternative is to simply send items to Waratah Strata, which then must take care of all correspondence.

Evening on Wednesday 1 March will be sufficient. It will be on site in the complex as it is important that you visually see some things that are crucial for delivery of good services by your company. I am sure you would want to see some items you are certainly not aware of. It is pointless to have meeting at any other place.

Please bring a copy of contract between SP52948 and Waratah Strata. That will be important to view in regards to what can or cannot be expected from you.

Here are some of the items that are expected to be dealt with immediately.

1. Online access to ALL financial transactions (income and expenditure, along with term deposits) paid from/to common funds. All good strata managing agents provide it without being asked.

2. At Section 92 of the Act, the reporting period is defined and its intent is for a 12 month period. This is a major deviation from the current practice by most Strata Management firms of producing and disseminating a Report on the Financial Management of the Funds at the six monthly interval between AGMs. Rather than being more open with reporting to owners, this new requirement reduces the amount of information owners receive about the health of their funds.

Schedule 1 of the Act (Cl 10) allows for owners to individually request a copy of the financial statements and allows the OC to resolve that financial statements form part of the notice of an AGM.

It will be one of the documents I will request to have access to during strata document search sometime during March 2017. The full listing of what I require for the last five years will be provided in due course of time. Some documents relate directly to Mr. Simon Wicks' work in relation to my complex while he was at BCS.

I will also ask for copy of contract with Waratah Strata.

3. Application of Special By-Law 12 and 13 to all owners (including members of the EC) as registered.

4. Timely payments of all invoices without delays.

5. We have three serious elevator maintenance professional reports. Two of them are independent assessors that cost owners good money:

Napier & Blakeley in July 2012

Vertical Transport in February 2014

They also document OH&S non-compliance in number of areas.

I will insist that a report be compiled immediately about corrective work that was (or not) done in last four years. In business, when assessors provide reports, somebody is assigned duty to go through it and create spreadsheet with items that:

a) Were resolved (including dates when they were applied) and costs,

b) Were discarded because they did not really apply and reasons why,

c) Were put on pending list with plan when and how to address.

That, then, goes to ALL owners (no hidden like it usually is). At general meeting, owners decide what to do.

I approached three vendors to send their bids for the elevator contract which expires on 30 June 2017. Here is what is expected from them:

a) Details of the yearly maintenance contract,

b) Details of what they currently see as immediate problems.

c) Details of expenses that go into 10-Year Sinking Fund for major repairs. I know we are overdue for some of the works, as shown in reports I sent you. Some examples are enclosed herewith. Their costs goes above million dollars.

6. Tenders for full roof membranes on Block A and C. The cost for Block B and D, without any tender or competitive quotes, was above $171,000.00 in 2015/2016.

Note that building report in 2000 listed membranes with lifespan of around 10 years. Block A and C membranes have not been properly resurfaced for 19 years now.

7. Rendering for the buildings before painting. This was not part of the painting "contract" and this expense will certainly be questioned.

8. I also note that five lattices and pergolas in townhouses are not common property, so they cannot be painted from common funds during this year unless someone produces a document from Department of Land. I will personally monitor the painting work and take photos of all items that are not compliant with the laws.

Same applies to Special By-Law 4, which gave exclusive rights to common property to EC member (Lot owner 3) in 2003.

9. All by-laws for the complex to be consolidated into one document and presented to owners, including Special By-Law 4 which was hidden from owners and investors since 2003.

10. Tender for proper garden bed repairs and removal of metal plates which are posing OH&S risks, especially to children playing in the gardens.

11. Tender for Block A hot water system. Enough of temporary fixes.

BCS Strata Management and EC members failed to disclose large expenses for Block D hot water repairs and failure to enforce warranties in period 2010-2012.

BCS Strata Management and EC members did not disclose full details of total expenses amounting to $77,062.70 (GST inclusive) for hot water repairs in Block B and D in 2015/2016 period.

12. Australian Hot Water was paid $9,639.00 (GST inclusive) in January 2017 for Rinnai internal commercial gas continuous flow HWS x 5 for Block C, with only five-year manufacturer warranty and one-year warranty on installation. Balance on completion of work: $22,681.71. Total cost: $32,320.71. I will question this work and evidence of tender.

13. Tender for proper repairs of water leakages in units on top floor in block A.

14. Fire safety maintenance contract. We do not have contract since 2013 and pay per quarter. The cost increased last year, without notification to owners by more than 54%.

15. My Motions for next AGM/EGM, whichever comes first. If EC wants to remove some (or al of them), then they must have do it at legally-convened meeting, with proper agenda sent to all owners and minutes of the meeting afterwards. In addition, no matter what decision they make, agenda and minutes of such public EC meeting must contain note that owners corporation can still force inclusion of all Motions at the general meeting.

Since your company does not have active role as an EC member, you can advise the others of what is legal or not, but you cannot vote on Motions at EC meetings or at any other time, unless specifically delegated a role to do it. It is up to owners corporation to make such decisions.

16. Results of six-monthly fire safety reports and corrective actions as required by stringent laws. The report is due now.

17. 10-Year Sinking Fund. What we have is a joke and not based on any valid estimates and does not even include any elevator maintenance.

18. Vacated position on the EC. My candidacy before AGM 2014, 2015, and 2016 was public and official. If there are no other candidates, EC should accept me at the very first meeting in March 2017. If there are more candidates, the EGM has to be organised, when my other Motions must be included as well.

Regards,

On 09/02/17 17:20, Robert Crosbie wrote:

We have now completed loading the strata records on to our systems, so are now able to meet with you to discuss your correspondence and outstanding issues. Please understand that this is intended to be just an informal meeting with you so we can understand the concerns you have so these can be raised as necessary with the Strata Committee or at the next available general meeting. A Strata Committee meeting is being scheduled for early March, so I would like to meet with you prior to that so we can raise your issues at that meeting if possible.

Unfortunately I do have a lot of evening meetings booked over the next few weeks. At this stage I am only available in the evenings on Monday 13, Mon 27, Tues 28 Feb and Wed 1 March. If you are available during the day am generally available at any time. Please advise when would be convenient for you to meet.

Regards,

Robert Crosbie

Waratah Strata Management

P.O. Box 125, Eastwood NSW 2122