Investigative Journalism and Learning Hub - BCS Strata Management ignored request for SP52948 extraordinary general meeting and evidence of water and gas reimbursements to selective townhouse onwers on 10 June 2013

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From: SP52948 owner
To: Peter Bone BCS Strata Management
CC: Bruce Copland, Moses Levitt, Stan Pogoreslky, Maureen McDonald, Jeffery Wang
Subject: SUMMARY: OFFICIAL REQUEST FOR RESPONSE for EGM 2013 and CTTT: SP52948 Water and Gas Reimbursements in FY 2013 - 10 Jun2013
Date: 10/6/13, 4:45 pm

Hello,

The following documents are submitted for the owners corporation and the CTTT for several reasons:

a) 16 owners approached me with questions if I had attempted to deal with the EC and the Strata Manager in regards to water and gas reimbursements for townhouse owners in a reasonable manner.

The attachments enclosed herewith easily prove that I had been very patient in seeking answers. Not a single response with any worthy details from the Strata Manager or the EC has been received so far.

The more the EC avoid the scrutiny and answers, the more I continue with the cross-examination.

I have made every possible effort to deal with this (and many other issues) without the CTTT and DFT. With the current Strata Manager and the EC, that is not possible, so the CTTT case is going ahead.

b) There are rumors reaching me that some members of the  EC claim the following:
  
* There is no requirement of the committee, or the Strata Manager, or the Secretary to enter  into correspondence with every owner.

Lot 158 response: That is absolutely false because the Department of Fair Trading is clear about it:

If the powers of Secretary have been delegated to the managing agent and the lack of response continues, then the agent has failed to perform their duties as Secretary in not answering a communication. Refer to Strata Schemes Management Act 1996, Clause 22:

22 What are the functions of the secretary of an owners corporation?
The functions of a secretary of an owners corporation include the following:
(a) to prepare and distribute minutes of meetings of the owners corporation and submit a motion for confirmation of the minutes of any meeting of the owners corporation at the next such meeting,
(b) to give on behalf of the owners corporation and of the executive committee the notices required to be given under this Act,
(c) to maintain the strata roll,
(d) to enable the inspection of documents on behalf of the owners corporation in accordance with section 108,
(e) to answer communications addressed to the owners corporation,
(f) to convene meetings of the executive committee and (apart from its first annual general meeting) of the owners corporation,
(g) to attend to matters of an administrative or secretarial nature in connection with the exercise, by the owners corporation or the executive committee, of its functions.
In addition, our Strata Manager acts in breach of the terms of the Management Agreement Number 2671 on 26 May 1999, Schedule of Services Part 3. Communication, Correspondence and Records.

* There is also a "fear" factor presented to some owners that my actions would generate huge issues for the Owners Corporation if any of my current CTTT requests are met.

Lot 158 response: If the motions that I presented to the CTTT (and offered to deal with at the general meeting) are dealt with, we would have proper management of the complex, long-term planning, proactive maintenance, equitable rights for all owners, and full transparency of the actions by the EC and the Strata Manager.

c) How secretive the water and gas reimbursements were, shows the document from Lot 217 who complained not knowing about it for seven years  until the neighbor told him about it! Sadly, I am pushed to publish it because we are now dealing with serious financial fraud.

d) The latest water and gas reimbursements are provided in the PDF format with watermark.

Another owner just claimed more than $850 for water and gas reimbursements. Not only this is a significant expense from our common funds for private use but as well this owner claimed it for period of two years and three months, which is against the Special By-Law as voted at the AGM 2012 that "allowed" only last quarter from the previous financial year to be claimed.

These old invoices claimed very late happened number of times (including this financial year several times). Refer to attachments.

e) At my own cost I did the search of registered By-Laws at the NSW Land and Property Information site (enclosed herewith). The Special By-Laws at AGM 2012 are not registered yet (not that they would be legal anyway). So, seven months after the AGM, they are not listed as per legal requirements.

To explain how differently the EC and the STrata Manager work when they want to push (or rush) for something shows the following fact about the Extraordinary General Meeting (EGM) in 2012 when they wanted to grant exclusive rights to common property to owners of Lot 137 and 137:

* EGM agenda sent on 24 April 2012

* The EGM held in business hours on 7 May 2012 (failed due to lack of quorum)

* The adjourned EGM held in business hours on 14 May 2012

* The Special By-Law registration submitted on 16 May 2012

* The Special By-Law registered on 24 May 2012

f) I even attempted to involve the Branch Manager Mr. Paul Banoob and Raine & Horne business owner (or director?) Mr. Greg Freeman on 11 May 2013. Nobody replied. One needs to ask questions what kind of managers would not investigate allegations of misconduct straight away.

Whilst I (and many other owners) would support the equitable manner in which the water and gas reimbursements might be distributed to ALL townhouse owners, the current scheme that was hidden from owners for 13 years is UNLAWFUL AND UNENFORCEABLE. The EC, upon recommendation by the Solicitor Mr. Adrian Mueller (full proof about his involvement in setting the agenda for the AGM 2012 exists), acted against the Strata Scheme Management Act 1996, Schedule 2, Clause 14 (a) by approving the motion to be included in the agenda for the AGM 2012 and preventing ANY details of the reimbursements to be provided to owners prior to voting:

14 Motions out of order
The chairperson at a general meeting of an owners corporation may rule a motion out of order if:
(a) the chairperson considers that the motion, if carried, would conflict with this Act or the by-laws or would otherwise be unlawful or unenforceable

Houston, we have a serious problem.

On Sun, 2013-05-12 at 00:01 +1000, SP52948 owner wrote to the Strata Manager and all EC members:
Before I publish it for all owners and give to the CTTT, I am officially asking you to respond as per:

NSW Strata Schemes Management Act 1996
  Division 2 – Members and office holders of the executive committee
  22 What are the functions of the secretary of an owners corporation?
  (a) to prepare and distribute minutes of meetings of the owners corporation and submit a motion for confirmation of the minutes of any meeting of the owners corporation at the next such meeting,
  (c) to enable the inspection of documents on behalf of the owners corporation in accordance with section 108,
>  (d) to answer communications addressed to the owners corporation ...

I do not have much patience or time to wait for your response. It should come immediately since it will have to be given to all owners for EGM 2013 and the CTTT.

I have just calculated water and gas reimbursements for FY 2003, 2004, and eight-month period in 2013. Your office still owns me the data for other missing years, but that will certainly come in time.

a) Please give me the name of the person(s) who approved these rebates in FY 2013 when some owners claimed water and gas reimbursements for periods as far behind as 2011 or charged excessive "fees"?

At the present time, 16 owners in townhouses charged for water and gas reimbursements around 12% of what the whole complex (218 owners) spent together on common property and buildings in the first six months of FY 2013.

The figure for gas usage for the whole complex is only six-month calculation, whilst the water is for eight-month calculation.

16 owners who claim water and gas reimbursements represent only 7.34% of the total number of owners.

Just one single townhouse owner claimed $1,166.69 for private water expenses in the first half of FY 2013, and if we add their gas usage of $251.72, this owner claimed already $1,418.41 alone!

b) Based on the "approved" Special-By Law, where are the equitable rights of all owners (especially all lot owners in the buildings) to share the costs?

The summary of water and gas invoices in FY 2013 show extreme abuse of common funds by some townhouse owners and no member of the EC and the Strata Manager took any actions to correct it.

I do support equitable rights for all owners, but certainly not abuse of these kinds. Once we remove the Special By-Laws for these reimbursements, if owners really want to share the costs, we will have to come with some better calculations how to implement them.

The one that the EC "implemented" for the last 14 years is criminal. Not only all 192 owners in the buildings are abused, but even those townhouse owners who use water and gas lightly and those who do not claim it at all.