[rhea]

We have a Strata committee and I am one of the 6 members of Strata committee. I have not received any communication regarding the matter. Usually as committee member we receive a group email from the Strata manager. I will have to confirm this with other members.

Since 4 committee members out of 6 still have plant pots on walkway, I assumed they were unaware of this incident. Else they would have removed their pots/figurines from walkway if the matter was brought to their attention.

Thank you for answering my earlier question ” Strata managers usually do not direct owners to do or refrain from doing anything unless they have been directed to do so by the strata committee.“

Thanks once again.

[rhea]

Hi proudsceptic,

 

Really appreciate your suggestions.

I took the photos of all the 3 common walkways the day I became aware of the incident.

The direction to remove the pots came from the Assistant working for our Strata manager and not our Strata committee.

As far as I know neither the strata committee members nor the occupants are aware of this direction from the Strata management. 

4 out of 6 committee members have plant pots on walkway. Therefore, I do not believe they would object other’s having it as long as it is safe and does not obstruct the walkway.

Do you think it is a good idea to request the strata guy to inspect the common walkway and draw his own conclusion? Because I believe the cleaner has been selective in disclosing information to strata management.

 

Cheers

Rhea

[rhea]

Thank you proudsceptic for explaining the process so well. I do refer to https://www.austlii.edu.au but sometimes I find it hard to interpret without an example. 

Thanks Peter C, I understand your frustration. I am assuming there are owners like myself who are not well versed with the Strata law. For us some part of law does not makes much sense unless someone explains it, just like proudsceptic did. 

[rhea]

Hi proudsceptic,

Thank you heaps for your response. The Strata Manager has kindly agreed to provide his comments regarding amending a motion:-) 

I have also added my response in bold. 

I would also ask a lawyer about how to apply to NCAT for an Order varying the way the levies are raised should you not achieve the outcome that you desire at the AGM (as Jimmy T said this is Section 87 in the new Act, and Section 149 in the old Act). (In case we do not reach an agreement at AGM, I will go through NCAT. Knowing all the relevant sections of Act helps a lot.)

To clarify the levy amounts, are you being asked to contribute 1/12th of the total levy i.e. 1/12 of $178,200 = $14,850? (YES, this is current estimated amount. The Strata Manager and the Treasurer are waiting for more quotes. Therefore the levy could be more than $14,850; if approved by the majority of owners at the AGM next week)

Would that be in addition to the 1/12 of $600,000 you were required to pay in 2015? (YES, I paid 50k as 1 instalment in Oct 2015. $14,850 to be paid as 1 instalment before Jan 2016)

In my opinion the Motions dealing with the quotes for the repair on the balcony and the balustrades should be separate from the Motions dealing with the quotes for the replacement of the single glazed windows with double glazed windows. As such I believe that both AGM Motions could be Out of Order due to them being in breach of the SSMA.

The repair of the balcony and balustrades falls within Section 62 of the SSMA (where there is a strict duty to maintain and repair) whereas the replacement of the single glazed windows with double glazed windows falls within Section 65A (which deals with Improvements to common property) because the windows are not being replaced with like for like. In my opinion both should be treated as being separate. (95% balcony and balustrades work has been completed.)

If these 2 Motions are not in breach then they at least should be amended.

As well as Section 62 and Section 65A motions being separated, Item 1 matters should be dealt with in 4 separate Motions rather then being bundled into one Motion. This is particularly so if each item contains a mix of Section 62 and 65A issues.

(80% windows have been installed. I think it is too late to discuss this point at the AGM. I wish I had come to Flat-chat last year. You guys are a wealth of information about Strata! )

The Committee are only permitted to vote on matters with a 10% variance of an original quotation. Any variance greater than that should be resolved at a General Meeting. If the Committee have made a mistake and resolved matters with a greater variance than 10% outside a General Meeting then they should be asked to explain why they did so. (I will raise this at the AGM)

Anyone who is entitled to vote at a general meeting can ask for a motion to be put on the agenda for a general meeting. Written notice must be given to the secretary. The secretary must put the motion on the agenda for the next general meeting [Schedule 2, Part 2, Clause 36]. Your building has a Strata Manager so your Motions will need to be addressed to the Secretary via your Strata Manger at the Strata Manager’s address or email address. (Spoke to Strata Manager earlier and he has agreed to provide his comments)

Only motions on the agenda for that meeting can be voted on.  You have a right to request assistance from your Body Corporate manager to get the wording correct, both on a Motion and on an Amendment to a Motion. NB: An incorrectly worded Motion, or one that may be in contravention of the legislation, runs the risk of being ruled out of order at the meeting by the Chairman and not put to the meeting.

If you have run out of time to put a Motion on the Agenda then you may amend a Motion at the actual meeting itself. Only motions on the agenda may be amended at the meeting. Anyone who is entitled to vote at the meeting may ask the chairperson for a motion to be amended [Schedule 2, Part 2, Clause 35 (3)]. Ask the Strata Manager when and how to do this. (Strata Manager has agreed to provide his comments on the motion)

I don’t think we have enough information on this complex issue to fully assist you and that is why I would recommend seeking help from the Strata Manager in wording Motions and Amendments, or seek professional help if you can. (I believe better planning and timely guidance from Strata Manager would have simplified the situation. Currently the show is run by the treasurer, chairman and investors put together who have the majority votes.)

 

Thank you heaps. Really appreciate all your help in the matter.

Rhea

[rhea]

Thank you Jimmy T for the clarification. Appreciate it! 

[rhea]

Thank you Jimmy T.

I went though the interim order form on NCAT website. It says” An application for an interim order must be accompanied by a substantive application, or relate to a substantive application already received by NCAT.”

What is a substantive application? 

Thanks in advance.

Rhea

[rhea]

Unfortunately I do not have picture for before the event only after. I guess there is no point pursuing it anymore. 

[rhea]

Hi Scotandx,

Thank you once again. I apologies being new to the FC forum I was not sure about the appropriate topic under which I could post my questions. I realised I posted further clarification to my original questions under a different topic. I am getting hang of this now:-)

The OC entered contract in Jan 2016 and the additional variation works proposed are outside the scope of the contract. Also no work will be done during Christmas and Jan period. Therefore it does not make sense to collect money before end of the year as one installment. I will speak to strata manager and see if we can come to some arrangement regarding my payment plan.

Rhea

[rhea]

Thank you scotlandx for your suggestions. Unfortunately the tenant has left. They moved their possessions during office hours when most of us were at work. I saw the damaged wall after I got back home. I spoke to few neighbours but unfortunately the incidence was not witnessed.

Rhea 

[rhea]

Hello proudsceptic,

Thank you for your detailed response. I live in Sydney. Unfortunately I do not know much about Strata law nor the processes that are in place.  I was under the impression that if 75% of committee member agree then the rest 25% cannot do anything. Can NCAT help me if the majority of committee were in favour of the special levy?

Answer to your question:

Was an option of the Strata scheme borrowing money to conduct this major work ever voted upon? We were not given an option to raise the money via a Strata Finance loan,  but asked to pay 50k each  as one instalment within the month, to which all the other owners agreed. I asked the committee to source competitive quotes but no one was in agreement to my proposal. They told me it was waste of time and they did not want to spend money on structural engineer.

Originally two quotes were sourced for window replacement but one company withdrew therefore they engaged the other one. They did not source any more quotes.

Excerpt from AGM minutes held on 1st Sept 2015….

“Subject to either of the next two succeeding motions being passed, the Owners Corporation SPECIALLY RESOLVE pursuant to S65A of the Strata Schemes Management Act (1996) to authorise replacement of existing single glazed windows on common property with double glazed windows. (Balcony doors and windows are not common property).

RESOLVED that a Special Levy contribution be raised to the Administrative Fund, pursuant to Section 76 (4) of the Strata Schemes Management Act (1996), based on Units of Entitlement such levy to be for an amount of $600,000 including GST, to be raised in one instalment due and payable on 1/10/2015, for the specific purpose of funding the balcony works and window replacement project.

LEVY CONTRIBUTIONS: RESOLVED that levy contributions be determined pursuant to Sections 76 (1) (2) and 78 of the Strata Schemes Management Act 1996 commencing 1 October 2015:

1. To the Administrative Fund – at the rate of $31,000 including GST per annum payable quarterly in advance (last year: $31,000).

2. To the Sinking Fund – at the rate of $6,500 including GST per annum (last year: $5,800 including GST).”

As you can see the strata manager has quoted all the relevent sections from the Act. I read the Section 76 there is no reference to imposing special levy nor does it sets the limit to contribution towards special levy.

Raising another special levy before christmas is not fair. Honestly I am quite lost.

Regards

Rhea

[rhea]

Hello,

Thank you for your response. 

– when the special levy was approved at the General Meeting, did the owners also approve entering into the contract for the remedial works?

Yes 9 owners agreed. I was the only one who disagreed with the way the special levy was imposed without considering regular periodic instalments and also my suggestion to sourcing competitive quote was disregarded.

– does the notice of meeting for the variations include approval of those variations, and not just the raising of the special levy?

The notice of meeting includes 8 new variations of which 1 was already approved by Treasurer without the knowledge of committee members , other 7 variations have costing and instruction to raise special levy before Christmas.

If not, the special levy will be approved but not the entering into the contract.

I did not understand this part.

If I were you I would be putting in an urgent application for appointment of a managing agent, on the basis that the scheme is dysfunctional.

We have a strata manager who worked with the treasurer to prepare the meeting agenda that details the variations, costings and recommendation to raise another special levy.

I agree the scheme is dysfunctional because it is run by the treasurer and investors and for some reason no one will speak up against their decisions.

Can the treasurer approve variations for approx $6000 without taking approval from the committee members?

Regards

Rhea

p.s Apologies I am newbie to this forum and do not know how to reply to post hence PM’ed you.

[rhea]

Thanks for the reply. The strata manager is aware of my financial position but at the end of the day the majority of committee  members decided to go ahead.

Most of these proposed variation work is not for the common property but for ceiling works within the units and store room area that belongs the investors ( owns 3 units +2 car spots), the Treasurer ( 1 unit+ 1 car spot) and the Secretary ( 1 unit). They are pushing the agenda and others members are too meek to stand up to them. They are also aware they are within the Strata scheme management act.

I feel the current Strata law is flawed because there is no special levy ceiling nor specific conditions set in relation to frequency of special levies that can be imposed without an instalment options. Law usually favours the rich:-(

[Author]

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