Hi,
SUMMARY SP52948 meeting with Director of Waratah Strata Management, dangers in strata management contract,
legal threat from CHU Insurance, latest Motions for AGM 2017, and other problems in the complex - 4Mar2017
If you are interested in knowing where your strata levies go and how the
property is really managed...
If you wish not to be "annoyed" by my emails, just let me know.
I organised meeting with the Director of Waratah Strata Mr. Robert Crosbie
recently.
It has now been confirmed in written form that EC members Mr. Stan Pogorelsky
and Mr. Moses Levitt had knowledge of Mr. Robert Crosbie and strata manager
Mr. Simon Wicks previously working for BCS Strata Management and that
Mr. Simon Wicks was planned to be a new manager for our complex before the
general meeting on 19 October 2016. They failed to disclose this information to
owners corporation, basically manipulating owners' decisions.
Waratah Strata Management attempted to organise illegal EC meeting on 2 March 2017.
It was in non-compliance with:
Strata Schemes Management Act 2015, Schedule 2, Part 2, Section 4
Interpretation Act 1987, Section 76
Upon pressure, Waratah Strata Management and EC members withdrew the meeting and
organised another one for 16 March 2017.
I pressed Mr. Crosbie and he accepted responsibility for organising illegal meeting.
I did not accept his explanation because the regulation about agenda for the
EC meetings has been in place since SSMA 1996 (more than 20 years).
Mr. Crosbie came on site and we checked number of issues in the complex and talked for
two hours on 1 March 2017. We stayed together between 180:00 and 20:05 hours.
The meeting was respectful and without any incidents.
Caretaker Mr. Steve Carbone (or any of his staff) was requested by me
to give us access to various protected areas of the complex, and he
did it.
Some items that were discussed and documented:
1. Firstly, this will come as a little shock to most owners.
Item 13 in the agenda for the EC meeting scheduled for 16 March 2017
shyly states:
McCulloch & Buggy Email
Here is the short story. In CTTT case that I lost in 2013 (over 1,000 pages of evidence
about mismanagement of our complex due to actions by BCS Strata Management), Tribunal
ordered that I pay $8,800.00 and the same amount was requested from owners corporation.
Tribunal was of the opinion that owners corporation was equally guilty of mismanagement
of the complex. This information was hidden from owners until now.
I paid my share (actually overpaid by around $16,000.00).
BCS Strata Management and EC members failed to meet their obligation.
To remind everybody: BCS Strata Management secretly changed insurance policy for
the complex on 1 August 2012, without owners corporation approval at any meeting.
Then, they started making claims for legal fees for non-existent CTTT case
"defending Lot 3", engaging Solicitor Mr. Adrian Mueller (without valid owners
corporation decision). Insurance claims in amount of $24,919.31 for alleged "defence"
of Lot 3 at CTTT in 2012/2013:
First claim on 31 August 2012 $367.64
Second claim on 7 December 2012 $12,714.65
Third claim on 26 April 2013 $1,320.00
Fourth claim on 4 June 2013 $10,517.02
McCulloch Lawyers, on behalf of CHU Insurance, is now requesting owners corporation
to repay $8,800.00 for insurance claims that BCS Strata Management made in
non-compliance with CTTT orders.
BCS Strata Management was aware of this at least since since October 2016,
so it is up to EC to provide all owners who kept this undisclosed.
In legal terms, owners corporation has to pay or risk bigger litigation if
we do not do it.
Personally, I am requesting that this money be repaid by BCS Strata Management and/or
EC members who were on the committee in 2012, 2013, and 2014.
I do not think owners should pay for something they are not guilty of and
did not ask for.
The claims that I made at CTTT have now been fully confirmed and passage of time
showed who was right and truthful.
2. Contract with Waratah Strata Management changed without owners approval
at any meeting and knowledge, and concerns.
I obtained full copy of the strata agency contract and can sincerely say that
it is not good for owners corporation. Some area are potentially dangerous for us,
some areas allow abuse (due to ambiguous statements).
Over last 16 years it has been proven over and over that EC members do not know
how to manage or check contracts for hidden agendas.
In Motion 28.1 at AGM 2016 on 19 October 2016, owners corporation approved
appointment of Waratah Strata Management at base value of $21,800.00 +
disbursements $13,300.00 inclusive of GST.
a) members Mr. Stan Pogorelsky and Mr. Moses Levitt signed the Contract with
Waratah Strata Management on 14 December 2016, changing the base value to
$23,110.00 + fixed disbursements $11,990.00 inclusive of GST without owners
corporation approval or knowledge,
b) Default yearly increase of contract with Waratah Strata Management is 5%
(more than three times the official CPI), or as agreed at each AGM.
Normally, yearly increases in contracts like strata management relate to base value
of the contract but Mr. Crosbie told me that in this case it should apply to all
parts of the contract, which is completely arbitrary interpretation and
not defined in the contract.
c) Waratah Strata Management reserves the right to earn all rebates, discounts
and commissions in Disclosure Schedule from the following providers:
CHU Underwriting Agencies Pty Ltd 20% of base premium
Strata Unit Underwriters Pty Ltd 20% of base premium
Strata Community Insurance 20% of base premium
Finn Foster & Associates 15% of base premium or as agreed
Whitbread Insurance Brokers 20% of base premium
Driessen Insurance Brokers 15% of base premium
Austbrokers Sydney 20% of base premium
CRM Insurance Brokers 50% of all commissions
Honan Insurance Brokers 20% of base premium
BCB Insurance Brokers 75% of policy commission
d) Section 7 of the contract with Waratah Strata Management provides avenue for strata
agency to transfer the agreement to another agency or related persons upon approval by
owners corporation which must provide a response to Waratah Strata Management within
28 days after receiving such notice from the agent, and owners corporation must notify
new agent of its decision within 28 days after receiving a request from new agent
to enter into a new agency agreement.
Basically, this strange item in the contract allows Waratah Strata to almost
select next strata agency for us!
3. Sudden proposal to terminate contract with ThyssenKrupp Elevator.
Item 6 on the agenda for EC meeting scheduled for 16 March 2017 lists sudden wish to
terminate contract with ThyssenKrupp prior to 30 March 2017 (90 days before its natural
7-year expiry period).
It also tables a plan to hire another lift consultant to conduct a condition report
on the lifts.
Here are the dangers of this plan that are not disclosed to owners:
a) We already had three professional assessments of lifts in recent years (and
all of them were not presented to owners):
Napier & Blakeley in July 2012. Total cost of the report (GST inclusive) was $12,144.00.
This report was also hidden from CTTT and Department of Fair Trading,
ThyssenKrupp Elevator report on elevators in December 2013,
Vertical Transport Management Services report on elevators in February 2014.
Total cost of the report (GST inclusive) was $1,430.00,
I requested that EC, Caretaker and strata managing agent present to owners
these summaries immediately:
- What was completed in our complex in relation to elevators after these
professional assessments were generated,
- What was dismissed as unimportant in regards to elevator repairs,
- What and when are the remaining rectification steps planned and how are
they going to be funded?
b) EC and Caretaker are now wasting time and money of owners for yet another report.
c) I approached ThyssenKrupp and asked them the reasons why they believe
their contract is planned for termination in the complex. Specifically, I asked:
- Has ThyssenKrupp failed in maintaining the elevators in the complex?
- Has ThyssenKrupp received any complaint about elevator maintenance
in recent times?
- Has ThyssenKrupp declined to maintain elevators at any time?
I do know that their plan to rectify major faults with elevators was
rejected by EC and BCS Strata Management silently in 2014.
d) ThyssenKrupp contract was approved by ex-EC member and BCS Strata Management
in very unfavourable terms in 2010 for seven-year period and at higher than necessary costs.
No other member of the EC was consulted, no tender was run, and owners corporation did
not have any say in it.
The problem with early termination is also the extra costs. Take a look at the attachment.
Basically, owners will pay for services for each unexpired month of the contract (in this case,
three months). In other words, EC wants owners to pay two cpmpanies for maintaining
elevators in period April to June 2017 inclusive.
e) Another problem is how will owners corporation select a new service provider for
elevator maintenance. Shall the EC again do it without proper tender and without
disclosure of information?
For the record, I asked three providers to bid for the contract. One of them already
visited the complex.
The selection of the elevator maintenance provider should be done at a general meeting
by whole owners corporation.
4. We visited all four roof tops. State is below reasonable standards. Caretaker,
Mr. Crosbie and I agreed. Here are some of the photos I took:
http://www.nswstratasleuth.id.au/Macquarie-Gardens-photos/gallery/index.php?/category/60
In short, two and a half roof tops need to be completely resurfaced with
new membranes (not fully done for almost 20 years, in spite of two professional
reports documenting that it should be done every 10 years). There were partial repairs
in 2004 and 2012 (cost in 2012 was $28,892.00, without tender or any competitive quotes).
As a side note, one and a half buildings were done without tender or any competitive quotes
in Block B and D, costing owners above $171,006.00 in 2015/2016.
BCS Strata Management and EC members failed to confirm warranty period of 15 years, as Kintyre
advised in their invoice on 27 February 2015 that liquid membrane applied to roof in
Block B came with only 5-year warranty due to excessive cracking and water ponding on the
existing concrete substrate, which was reported in Napier & Blakeley building assessment
as early as July 2012 and never disclosed to owners corporation.
Warranty for Block D (the only block fully resurfaced with new membrane) is unknown and
strata agency and EC member hide that information.
Caretaker Mr. Carbone confirmed in front of Mr. Crosbie that the previous EC member
(who left complex last year) was personally responsible for not allowing Block B to be
fully resurfaced in 2015. Resurfacing the other half or roof in Block B will now come
at a higher cost to owners.
In short, membranes in these buildings need to be replaced as a matter of urgency:
Block A (whole roof)
Block B (half roof)
Block C (whole roof)
5. Garden beds are in appalling state. Metal plates are OH&S hazard for children who play
in the gardens due to sharp edges and distortion of their position as walls move.
Garden beds look very "unmaintained" and unmanaged.
6. Hot water tanks.
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.
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 asked Caretaker if there were multiple quotes and who approved them. He told me that
there were three quotes but he failed to produce copies when I requested them.
Allegedly, EC members will present them.
Block A is outstanding for replacement of hot water system.
7. In spite of all warnings to the Caretaker and the EC, Mr. Crosbie and I were able
to confirm that fire doors in the basement were still not compliant with fire safety standards.
We personally checked the doors.
8. I personally enforced that all fire doors in the basement have sound alarms after
around 22:00 hours in the evening. The logic was simple and effective: nobody had
real reason to walk outside the complex by using those doors late in the evening
or overnight. It was a good deterrent for leaving fire doors open ajar at night,
which number of owners like me observe.
Somebody has removed all sound alarms from the fire doors without decision at any meeting.
I am now requesting them to be reinstalled for safety reasons.
9. Motion 2.41 at AGM 2016 required EC members to complete some kind of training in
Strata Management Act and Regulations within three months. I requested an update
at the EC meting on 16 March 2017.
10. Finally confirmed that pergolas are common property.
BCS Strata Management and EC members failed to disclose evidence and proof of
pergolas being common property, in non-compliance with SSMA 1996 Section 108
for strata document search in 2013, 2014, 2015, and 2016,
BCS Strata Management and EC members failed to disclose this information to CTTT,
hindering their investigation, in non-compliance with the strata laws,
BCS Strata Management and EC members misconstrued statements about pergolas
at the following meetings:
EC meeting on 17 November 1999
EC meeting on 19 January 2000
EC meeting on 24 May 2000
AGM on 5 October 2000
EC meeting on 14 February 2001
EC meeting on 8 August 2001
AGM on 14 October 2010
EC meeting on 1 December 2010
EC meeting on 16 February 2011
EC meeting on 13 April 2011
EC meeting on 20 July 2011
EC inquiry to Solicitor Mr. Adrian Mueller on 21 January 2015
BCS Strata Management and EC members failed to disclose costs of repairing and
repainting pergolas three times since year 2000 exceeding $90,000.00 without evidence
of competitive tenders as requested in SSMA 1996 Section 108 searches in 2013, 2014,
2015, and 2016, and without decisions at general meetings,
New Strata Management Agency for SP52948, Waratah Strata Management, produced photocopy
of Determination of Title Boundary, dated 27 July 2000, printed on 11 January 2013.
11. We confirmed concrete cancer on the pillar in front of Block A.
It is not known how many other areas of the complex have it. We had such case
in Lot 150 and it took a year and a half for Caretaker and EC to act upon it.
12. We confirmed, without any doubt, that ventilation louvres in many areas of
the basement are impossible to repair (doe to excessive rusting) and that the
only way to fix the efficiently is to replace them.
13. In spite of OH&S risk with tripping hazard due to raised pavers in the courtyard,
as reported by Napier & Blakeley in July 2012, nothing has been done to fix it.
This was tabled to Mr. Crosbie.
14. Repetitive water leaks on top floor in Block A. Caretaker confirmed that this would require
lifting whole ceilings in several units and I questioned why was this hidden from owners
since 24 February 2016 (as reported by NCB Plumbing for Lots 189, 190,192, and 192).
Just Lot 191 alone had 16 repairs in period 2012-2016, costing owners close to $13,000.00.
15. Mr. Crosbie confirmed that we do not have reasonable 10-Year Sinking Fund Plan as it
was not updated since 2010.
In addition, that Sinking Fund Plan is based on arbitrary items, without real
consideration of warranties and proper professional evaluations.
16. Item 5 in the agenda for the EC meeting scheduled for 16 March 2017.
Painting of buildings.
According to Mr. Crosbie and Caretaker Mr. Steve Carbone (without providing any evidence),
building painting tender included rendering costs.
As well, additional painting tasks are seemingly extending the scope of the project, without
disclosing costs to owners. In other words, EC plans to spend more money but without owners
corporation approval at the general meeting.
17. Visit to the pool area uncovered the following:
a) Rust protruding in the ceiling at various places,
b) Mirrors in both bathrooms are unsightly and require replacement,
c) OH&S risk with uneven sink area on the floor in the female bathroom.
18. Item 2 in the agenda of the EC meeting scheduled for 16 March 2017.
Vacant position on the EC.
I demanded that, whatever decision EC makes, the minutes of the meeting must
disclose all candidates for the vacant position, confirm reasons why such
decision was made, and ensure owners are notified that EC and BCS Strata Management
prevented my candidacy at the last three general meetings, in direct non-compliance
with SSMA 1996.
19. Rumours are going around that I was "not willing" to talk to the EC.
They are, as always, false and misconstrued. In fact, I am still waiting for
Mr. Pogorelsky to respond:
http://www.nswstratasleuth.id.au/SP52948-Continuous-Desperate-Protection-of-BCS-Strata-Management-by-EC-Chairperson-Stan-Pogorelsky-27Nov2016.html
I asked Mr. Crosbie to pas sit on to EC members that they can contact me at any time,
as long as access to strata documents is provided. Hiding them is not the way to
be "transparent".
If they have nothing to hide, why that fear of showing strata files?
20. Areas around hot water systems on the four buildings are full o various
rubbish that Napier & Blakeley reported as OH&S risk in July 2012.
Nothing was done to clean them up.
After our visit on 1 March 2017, Caretaker Mr Steve Carbone was requested to
organise the clean-up of rubbish.
21. Visit to MDF room. BigAir system is still running without benefits to owners,
and in spite of eviction orders on 31 January 2014.
Due to high power consumption by BigAir equipment, the air temperature in the MDF
room is excessive. It was terrible to be inside the room. It is a fire risk and owners
could lose phone line cabinets and NBN cabinet if it happens.
BCS Strata Management and EC displayed absolutely pathetic attempts to evict this
company from the complex for the last three years (and mismanaged the contract before
its expiration in 2013).
I gave Mr. Crosbie ideas about four methods how to deal with it
immediately.
As EC and almost everybody else in the complex has no expertise in telecommunications area
(or at least not as much as I do), I offered to help.
22. My Motions for AGM/EGM 2017. I made it very clear to Mr. Crosbie that the
EC must respond and document in public minutes of the EC meeting every decision
for or against my Motions appearing on the agenda for the general meeting.
If they prefer, EC members can meet me in person to speed up that process.
In addition, they must disclose that owners can demand any Motion to appear at the
general meeting, thus overturning the decisions of the EC members.
23. I will organise visit to Waratah Strata Management to view ALL strata documents
for the last five years in later part of March 2017. I politely advised
Mr. Cosbie that any missing document would be treated very harshly.
There was more we talked about but this should be enough for the moment.
Regards,
Lot 158
