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| From: | SP52948 owner |
|---|---|
| To: | Robert Crosbie Waratah Strata Management |
| Subject: | REQUEST FOR IMMEDIATE CORRECTIVE ACTIONS: Lot 158 levies used for payments of private gas heating - Jan2019 |
| Date: | 6/1/19, 3:15 pm |
Hi,
In accordance with Motion 19 at Annual General Meeting 2018 (strata affairs directly affecting Lot 158 which includes financial affairs), a request is issued to rectify the losses to Lot 158 for their funds being used for private gas heating of selective owners, enforce 10% overdue levies for owners who did not pay prescribed fee for gas heating in amount of $220,00 in any period before 2016, and provide full audit of current owners with gas heating and those with gas heating connections who are now sealed and not in use.
a) If the second gas inlet had been disconnected and sealed, it would had to be done by a certified and licensed staff. A license is required before any plumbing, draining, or gas fitting (including LP gas fitting) work can be undertaken in NSW, regardless of the cost of the work and regardless of whether the work is residential, commercial, or industrial.
That work would have to come with a written warranty and invoice which would have to be presented to strata manager and kept on strata files to avid wrong invoicing.
Each owner with gas heating, if it had been disconnected, had to prove that it really happened and on which date.
Provide certified evidence of sealed gas heating inlets and the authoritative listing of owners with currently active gas heating connections (examples: photo evidence or signed statutory declarations by owners).
b) Provide full details why Lot 158 levies were/are used for unpaid levies for private gas heating of selective group of owners (including 10% simple interest).
c) Provide full disclosure of levy payments for gas heating, as per public promise by Lot 181 in attachment of EC meeting dated 21 July 2017, in which he encouraged all owners (including Lot 158) to be free to contact Waratah Strata Management to get FULL details of gas heating payments in period 1991 to 2017 (presumably applies to 2018 too).
d) Provide full disclosure details of why maintenance staff failed to properly audit second gas connections in their report to BCS Strata Management on 21 March 2016, where he declared only the following owners having them:
3, 59, 62, 68, 102, 127, 144, 147, 148, 163, 167, 181, 182
By Lot 88 own admission, maintenance staff knew of Lot 88 gas connection and decided not to report it (whether it was active or not at the time of the audit, it is difficult to confirm, however, her predecessor had it in active use).
Maintenance staff failed to report an active gas connection for another owner who used to be an EC member - Lot 192.
e) Provide full details of why Waratah Strata Management failed to document all owners with gas heating in Minutes of EC meeting on 16 March 2017:
3, 8, 59, 62, 68, 102, 127, 144, 147, 148, 163, 167, 181, 182, 194, 199, 206, 209
The last four (194, 199, 206, 209) were townhouse owners who never paid gas levies but enjoyed getting gas reimbursements for private gas usage (double-dipping from owners corporation and Lot 158 funds).
f) What evidence is there to make this decrease in revenue from gas heating valid in FY 2018:
Waratah Strata Management claimed that $3,600.00 (plus GST) was earned from owners with second gas connection in FY 2017. The figure of $3,600.00 in FY 2017 matches exactly 18 owners who were reported in Minutes of EC meeting on 16 March 2017.
The income from levies for second gas connection (gas heating) suddenly dropped to $2,537.54 in FY 2018.
g) Why is the information about valid levies for gas heating not dicsloseed to owners, directly affecting Lot 158 levies:
Minutes of EC meeting held on 17 November 1999 confirmed levies for the second gas connection applied to units in buildings and townhouses and payable in advance in December of the current financial year and be subject to annual review.
Minutes of EC meeting held on 24 May 2000 introduced GST to all levies.
h) Two owners admitted having second gas connection but BCS Strata Management, Waratah Strata Management, and maintenance staff failed to report it:
Lot 192 – signed PDF and emailed to BCS Strata Management on 5 July 2014
Lot 213 - signed PDF and emailed to BCS Strata Management on 7 July 2014
Lot 213 claimed reimbursements for private gas usage whilst having second gas connection for heating as per approval at EC meeting on 21 April 1998, which Waratah Strata Management failed to report at EC meetings in 2017 and 2018.
EC meeting 17 May 1998 reported application by owner of townhouse 213 and the EC approval that all future gas costs were to be met by the owner, so this owners should have never received reimbursements for personal gas usage that they claimed for 19 years.
i) Lot 175 is not listed in any public report but evidence exists that they paid PARTIAL gas levies as early as year 2003.
j) Lot 154 is not listed in any report but evidence exists that they paid PARTIAL gas levies in year 2006.
k) Lot 209 claimed reimbursements for private gas usage whilst having second gas connection and stopped doing it when new tenant moved in on 25 September 2014. They were claiming gas reimbursements for private gas usage, effectively double-dipping from owners corporation and Lot 158 funds.
l) All overdue levies attract 10% simple interest per year. They apply even if the invice was never sent by strata managers.
Illustrative example: for the owner who only paid $55.00 (GST inclusive) for second gas connection in year 2000, whilst correct levies were $220.00 (GST inclusive), the outstanding value is $165.00 plus interest (if full levies were not paid until year 2014):
A = 165 x (1 + (0.1 × 14)) = 396
A = $396.00
The total amount accrued, principal plus interest, from simple interest on a principal of $165.00 at a rate of 10% per year for 14 years is $396.00.
Audited financial statements for SP52948 until 2017 confirm that no owner paid $200.00 (pre-GST) or $220.00 (post-GST) for second gas connection per year before FY 2017, causing loses to owners corporation funds and forcing other owners to carry out costs for private use.
EC member from Lot 181 confirmed to Waratah Strata Management on 27 April 2017 that the first time owners were charged $220.00 per annum for second gas connection was in 2016.
Only Special Resolution at general meeting, with full disclosure, can waive 10% simple interest for some or all owners. Strata managers or EC members do not have such powers.
Regards,