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  • #9146
    eddie
    Flatchatter

      I own an apartment in inner city Sydney. Have just received Notice of AGM and surprised to see a motion that the owners corp pay the outgoing Secretary of the Exec Cttee an honorarium of $6.6k in recognition of the time & effort spent on building upgrade work. I don’t know amount of time & effort spent but isn’t that what I pay a strata, building & property manager to do? Is this a common practice? If not, could it create a precedent? THANKS

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    • #20119
      Whale
      Flatchatter

        Whilst I don’t know how common it is, Sect 25 of the NSW Strata Schemes Management Act (1996) makes provision for a payment of the type that you describe to be made retrospectively; that is for the “time & effort” of an Executive Committee Member since the last AGM.

        So there’s no precedent, and as for whether the payment is justified in your case, your Owners Corporation needs to take into consideration if the costs of your Plan’s Strata/Building Manager have been reduced as a consequence of its Secretary’s efforts; clearly somebody thinks they have.

        #20120
        larry_vincent
        Flatchatter

          Confused Ask for further details from the strata manager e.g. number of hours and rate per hour, copies of receipts or further details for phone calls, printing and postage costs. This could easily be provided by the secretary and demonstrates transparency. Usually payments are agreed in advance by owners at the AGM for designated member/s of the Executive Committee for phone calls and printing costs. Some owners corporations support reimbursement for costs incurred particularly for those volunteers on the Executive Committees on fixed incomes and are agreed up front and in advance.

          #20121
          Jimmy-T
          Keymaster

            If one member of the committee has given up an exceptional amount of their time and energy for the greater good of everyone else, why shouldn’t they get some sort of retrospective reward?

            That said, I wonder about those who come to the AGM with a detailed account of their hours spent etc etc.  If you want paid, say so up front and let people at least know that’s what you’re thinking (regardless of whether or not they intend to comply with your wishes).  

            And be careful that the EC’s ‘generosity’ isn’t just creating a precedent for future payments all round. 

            By the way, I have heard of an Owners Corporation Chair who gets more than $100,000 a year in ‘consultancy’ fees for ‘advising’ the EC on matters related to their strata scheme.  Make of that what you will.

            The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
            #20122
            Kangaroo
            Flatchatter

              @eddie said:
              I don’t know amount of time & effort spent but isn’t that what I pay a strata, building & property manager to do?

              What you haven’t told us is:

              1) How many Lots in your scheme?

              2) What proportion of your annual budget does $6.6K represent?

              3) How many past years does this honorarium cover? Just last year, or many years of tireless voluntary effort?

              You seem a little unclear on the roles of various managers and the EC.

              The Strata Manager (SM) is largely administrative. Calling meetings, minuting meetings, issuing levy notices, collecting levies, receiving bills, paying bills, answer correspondence, etc. Some (most?) of them never even visit your building.

              Only larger schemes will have a Building Manager (BM), because smaller ones just can’t afford them. Their role is to fix things, either personally, or by arranging a tradesman, and to organise and supervise scheduled maintenance such as painting.

              I don’t understand the inclusion of a Property Manager (PM). That term is usually reserved for the “Leasing Agent” of a landlord, and so deals only with the Lot.

              But, there are some things that simply cannot be delegated to the SM or the BM, and they are:

              1) The Owner’s taste. Suppose you want a boundary fence erected. If you delegate that “bare” requirement to the SM/BM, you will get their taste, or the tradesman’s taste. Someone from the EC/OC must specify the requirements. How much of the boundary? What material (barbed wire, brick/stone, brushwood, flat metal, tubular metal, height, colour, etc.)?

              2) The “noticing” of things which need fixing, and communicating with the SM/BM about them.

              3) If you don’t have a BM, the arranging of access so the work can be done, and the supervision of the work to ensure things go right and the OC gets “value for money”.

              And that’s the sort of voluntary work your EC does for you.

              #20134
              scotlandx
              Strataguru

                I do a lot of work for the OC (I am the secretary).  This has ranged from managing a building project, to drafting submissions to the CTTT, to briefing lawyers, to searching council records, to just general “stuff”.  The only reason I have done that is because no-one else seems inclined to and it generally saves us time and money.  However, after a very eventful year last year I added up the hours I had spent and it exceeded 150. 

                I am not inclined to spend any more time on this sort of thing unless in certain circumstances I am paid for it.  I think it is reasonable that if someone does certain types of work then they should be paid, the fact that they are an owner and/or on the EC shouldn’t preclude that as long as it is transparent.

                I have my doubts about the propriety of a $100K+ consultancy fee, and I hope the person getting it has some decent indemnity insurance.

                 

                #20136
                DaveB
                Flatchatter

                  Hi Eddie

                  Having spent a lot of my time on Executive Committees I’m happy to do it without recompense for the majority of owners who appreciate it.   It takes too much time to painstakingly detail all the phone calls, photocopies, postage etc for my liking.  Though there are owners out there who continually complain, and take up an inordinate amount of time of the Executive Committee over trivial matters.  I’d say that in the past I’ve spent 80% of my time on 20% of the owners.  The worst complainants are often the non-resident owners who don’t bother to attend meetings or even put in a proxy, and expect the resident owners on committees to ensure that they keep up the value of their properties with little or no investment, and endure the mess and abuse of their tenants.   In strata schemes where there is a large proportion of non-resident owners I’d maintain it just isn’t fair to expect the few resident owners available to be on committees to do the work for nothing, where the majority of owners are only in it for purely financial reasons.  Some schemes do leave it all to the Managing Agent but in my books having it unsupervised by an EC doesn’t result in the best outcomes for the property.

                  #20374

                  Why should the secretary of an EC be paid when the strata manager does all the work?  The members of our EC and our secretary do B-ALL!Frown

                  #20376
                  Jimmy-T
                  Keymaster

                    That’s your EC, What about when an office-bearer has done sterling wol filling in the gaps left by strata managers?
                    Every building is different. You really shouldn’t apply your frustrations to other people’s circumstances.
                    I know some EC secretaries who deserve a medal … and I know some who deserve a bullet. There are no hard and fast rules,

                    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
                    #20398

                    Hi All, I have been on my EC for a number of years and was secretary for most of those , often done more work than the SM has ever done. I have heard of a Sec being given a token payment in other plans and as much as I would have appreciated payment for my services I personally don’t believe a person that is volunteering should be paid.

                    Cheers CBF

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