Welcome to the blog of NSW strata investigative journalism
| From: | SP52948 owner |
|---|---|
| To: | Committee members: Stan Pogorelsky, John Gore, Genelle Godbee, Ramesh Desai, Kathryn Cutler, Carlos Fornieles Montoya, Andrew Ip, Jeffery Wang |
| Subject: | SUMMARY EGM on 30Nov2023 will have to be challenged - unnecessary costs to owners when Admin and Capital Works Funds already have serious deficits |
| Date: | 29/11/23, 18:56 |
Good evening.
Maybe you wish to know about what is happening with your
property.
If you wish not to be notified, your name will be removed from the
notification list.
Pending EGM on 30 November 2023 brings very bad news for all
owners and investors.
Status one day before EGM 2023, which will, unfortunately, have to go to court for non-compliance with strata laws. Waratah Strata Management and committee members declined to take appropriate actions and carry personal responsibilities for unnecessary litigation and waste of owners' funds...
a) As of today, negative balance in Admin Fund reached -$131,161.52, and for the next two months, until next collection of levies on 1 February 2024, there is no income for SP52948, just lot of expenses.
b) As of today, according to information from Waratah Strata
Management, Uniqueco Property Services monthly salary was not
paid.
Early in November 2023, Lot 158 predicted that Waratah Strata Management:
Reasonable estimate is that real negative balance in Admin Fund is at least -165,000.00.
c) Waratah Strata Management failed to provide access to
financials in accordance with Strata Schemes Management Act 2015
(NSW), Sch1, Part 10(1) - full copies of Administrative Fund, the
Capital Works fund, and any other fund of the owners corporation
(term deposits and trust accounts, and others as applicable).
None of the committee members and strata managers could provide an answer to simple question: how is SP52948 paying bills when Admin Fund have no money for most of 2023 and will continue with same problem in 2024.
d) None of the questions for misconduct of AGM 2023 and expenses in amount of $122,843.87 (GST excl) before, at, and after AGM 2023 were answered.
Most critical one, from criminal perspective: Auditor Report for
FY 2023 was 43 days late and not presented to owners at any
meeting, which removed $10,000.00 (GST incl) from accounting data
and obtained signature from the auditor. $10,000.00 is missing in
allegedly audited accounts!
SP52948-AGM-2023-misconducts-and-risks-24Oct2023.pdf
SP52948-Motions-by-Lot-158-EGM-public-30Oct2023.pdf
SP52948-AGM-2023-dubious-invoices-24Oct2023.pdf
SP52948-negative-trends-with-Admin-Fund-under-Waratah-Strata-Management.html
e) Alleged "tender" for building management contract is completely flawed and void. Building Management Australia is a fictive competitor.
SP52948 has not had a legally valid tender for strata and
building management contracts since 1999 (24 years!).
f) Auditor Report for FY 2023 is still not available or published
- 34 days after due date.
Since 2017, Waratah Strata Management failed to comply with SSMA 2015 and SSMR 2016 six times, whilst in other two years the Auditor's Report in our complex was highly dubious and questionable:
Waratah-Strata-Management-non-compliance-of-SP52948-Auditor-reports.html
There is much more to report. If you want evidence, just ask.
Regards,
Good morning,
1) Lot 200 (Mr. John Gore) sold his townhouse on 4 November 2023, without disclosure to owners.
He is effectively not a valid member of the committee even before AGM on 26 October 2023 due to non-disclosure of his advanced plans to sell his property.
Attachment "SP52948-Lot-200-sold-prior-to-auction-4Nov2023.png".
2) Lot 200 had six proxy votes at AGM 2023 without disclosure that he planned sale of his townhouse before the meeting.
Attachment "SP52948-six-proxy-votes-for-Lot-200-AGM-26Oct2023.png".
3) Whilst already defunct committee member, Mr. Gore received Building Management Australia tender, which offers higher services.
However, they are not directly comparable to offer by Uniqueco Property Services so another round of talks with Building Management Australia is required.
Details of the tender documents provided to Building Management Australia must match those for Uniqueco Property Services to give everyone a "fair-go".
4) On 19 July 2023, Uniqueco Property Services made an offer for new three-year contract, asking for increase of 26.68% over next three years, in spite of clear evidence of poor services, decreased quality of services, lack of proactive maintenance, and repetitive repairs without warranties.
Lot 200 (Mr. Gore) strongly supported Uniqueco Property Services and recommended their contract renewal.
Attachment "SP52948-Lot-200-justification-to-support-Uniqueco-Property-Services-through-false-statements-for-committee-meeting-in-Sep2023.png".
5) On 1 September 2023, Waratah Strata Management prepared agenda for committee meeting and in Motion 4 listed:
BUILDING MANAGEMENT FEE PROPOSAL
That the fee proposal submitted by Uniqueco Pty Ltd for building management pricing for 2024, 2025 & 2026 be tabled and discussed.[Explanatory Note: The fee proposal will be tabled at the meeting and reviewed by the Strata Committee before being put to the Annual General meeting.]
6) Strata Plan SP52948 committee meeting dated 7 September 2023, as organized by Waratah Strata Management, did not satisfy requirements of Strata Schemes Management Act 2015 (SSMA), Schedule 2, Section 4 (1) and (2), and section 7, and Interpretation Act 1987 (NSW).
Agenda was created on 1 September 2023 and scheduled for 7 June 2023. Excluding date of creation, meeting date, and the weekend, only three days were allowed for delivery of notice to all owners:
The minutes of the meeting stated:
BUILDING MANAGEMENT FEE PROPOSAL
Resolved that the fee proposal submitted by Uniqueco Pty Ltd for building management pricing for 2024, 2025 & 2026 was tabled and discussed. It was noted that countless comments of positive feedback regarding Steve's services contribute to a recommendation from the committee to accept Uniqueco's fee proposal. The Chairperson Report tabled at the AGM will provide more detail of this recommendation.Attachment "SP52948-extract-from-minutes-salary-increases-for-building-management-contact-7Sep2023.png".
7) In agenda for AGM 2023, Lot 200 (Mr. Gore) mislead all owners by providing false statements in effort to push for Uniqueco Property Management renewal without any tender.
Attachment "SP52948-Chairperson-John-Gore-misleading-and-false-statements-agenda-AGM-2023.png".
In spite of 92 owners being presented at the meeting (only 15 in person of which 9 were FY 2023 committee members, all others were proxy votes), Lot 158 decisively prevented renewal of the contract with Uniqueco Management Services.
Waratah Strata Management did not "forget" to include Motion for building management contract at AGM 2023. It was a deliberate, premeditated plan.
8) Waratah Strata Management again "forgot" to add Lot 158 motions for EGM on 30 November 2023 (Motions were well-prepared and sent on 30 October 2023).
And Auditor's Report is yet again not provided to owners in agenda for EGM on 30 November 2023. That is sixth general meeting (out of eight) that did not comply with Clause 21 of the Strata Schemes Management Regulations 2016 and Section 95 of the Strata Schemes Management Act 2015.
That is a serious misconduct and effort to bankrupt owners corporation:
SP52948-Motions-by-Lot-158-EGM-public-30Oct2023.pdf
9) Negative balance (deficit) in Admin Fund on the last day of the quarter (31 October 2023) was record -$312,113.03.
Event after collection of new levies on 1 November 2023, negative balance in Admin Fund on 9 November 2023 was already deep into negative: -$122,658.53. And there will be no new income (only mounting expenses) until next collection of levies almost three months away on 1 February 2024.
Attachments "SP52948-Income-and-Expenditure-Report-1Sep2023-to-31Oct2023.pdf" and "SP52948-Income-and-Expenditure-Report-1Sep2023-to-9Nov2023.pdf".
Where will the money come from for all standard expenses in next three months and throughout FY 2024?
10) Alleged building management tender is incomplete, and recommendation to increase Uniqueco Property Services contract by 26.68% over next three years is excessive, not based on real value and quality of their services.
Real costs to owners already increased for Uniqueco Property Services too much in the past, whilst their services decreased and became poorer.
2015 Uniqueco Property Services $275,838.00 (difference to previous year: 8.78%, contract RS/RH 081394 signed on 7 December 2014 by two committee members of which one of them - Mr. Moses Levitt of Lot 147 was unfinancial due to unpaid levies since 2001) 1.51% 2016 Uniqueco Property Services $292,912.00 (difference to previous year: 6.00%, minutes of committee meeting held on 21 March 2016 renewed contract for another year without any tender, although its expiration date was nine months later on 7 December 2016, contract value increased by 2% without owners corporation decision at general meeting on 22 April 2016) 1.28% 2017 Uniqueco Property Services $291,507.13 (difference to previous year: -0.48%, contract renewed without tender at general meeting on 24 October 2017 and signed by two unfinancial owners - Mr. Moses Levitt and Mr. Stan Pogorelsky of Lot 147 and 181 due to unpaid levies since 2001 and 1999 respectively, increasing the contract value by 4% per year) 1.95% 2018 Uniqueco Property Services $306,837.99 (difference to previous year: 5.12%) 1.91% 2019 Uniqueco Property Services $293,031.44 (difference to previous year: -4.60%) 1.61% 2020 Uniqueco Property Services $330,986.89 (difference to previous year: 12.16%, contract renewed without tender at general meeting on 22 October 2020) 0.85% 2021 Uniqueco Property Services $339,249.60 (difference to previous year: 2.46%) 2.86% 2022 Uniqueco Property Services $339,741.00 (difference to previous year: 0.14%) 6.59% 2023 Uniqueco Property Services $343,507.47 (difference to previous year: 1.1%, undisclosed increase of 2.0% since February 2023) 5.4% as published by ABS on 25 October 2023 Attachment "SP52948-building-management-contracts-1999-to-2023.png".
11) On 27 October 2023, Lot 158 sent direct request to Waratah Strata Management and Uniqueco Property Services to complain about delays in maintaining common property in Block A.
Attachments "SP52948-Lot-158-unresolved-common-property-issues-Oct2023.pdf" and "REQUEST to BUILDING MANAGER - Overdue repairs and actions for SP52948 Lot 158 common property-27Oct2023.pdf".
No reply was received, or any action taken by them.
12) On 27 October 2023, Lot 158 sent direct request to Waratah Strata Management and Uniqueco Property Services to justify FY 2023 invoices and expenses in amount of $122,843.87 (GST excl).
Attachment "SP52948-AGM-2023-dubious-invoices-24Oct2023.pdf".
No reply was received, or any action taken by them.
Regards,
On 30/10/23 09:00, SP52948 owner wrote:
Good morning,
AGM 2023 proved to be a complete failure due to lack of planning and proper procedures, as anticipated.
To avoid any further "games", Lot 158 submits updated Motions for EGM or AGM (whichever comes first) on 30 October 2023.
My wife also resubmitted my candidacy for the committee because Lot 200 failed to notify owners corporation about him leaving the complex, so his name should not have been on electronic poll.
In fact, Domain website claimed that Lot 200 sale was known to them since 24 October 2023 (two days before the AGM). Lot 158 collected such evidence.
Another question would be if any owners gave proxy votes to Lot 200 without having knowledge that Mr. Gore had plans to "abandon" the complex before the actual meeting.
