Investigative Journalism and Learning Hub - Waratah Strata Management in Large Strata Complex SP52948, NSW, Australia

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From: SP52948 owner
To: Robert Crosbie Waratah Strata Management, SP52948 committee members
Subject: FOR SP52948 OWNERS NOTICE: Examples of continuous discrimination of owners and lack of proper care of the complex on 26Aug2018
Date: 26/8/18, 8:31 pm

For SP52948 owners' attention. Please let us know if you wish not to be notified about what is happening in the complex.

All attempts to reason with Waratah Strata Management and EC members were met with silence and refusal to act with duty of care.

The email shows some of many examples of continuous discrimination and lack of duty of care at owners corporation expense:

a) Annual General Meeting 2017, like others before, failed to satisfy quorum.


b) Two members of Executive Committee having special privilege for electricity connections in their garages without disclosure, whilst Lot 83 was denied the same rights at EC meeting on 21 June 2018.

Waratah Strata Management refuses to deny or confirm the following:

Lot 147, EC member Mr. Moses Levitt, has been using his garage as work-space for many years,

Lot 151, Mrs. Maureen McDonald, a long serving EC member is the only owner in the complex who has four fluorescent tubes in her garage in the basement - all other owners have maximum of two fluorescent tubes. 

Lot 114 has non-standard housing for lights in garage.

More details in the attachment.


c) Townhouses, with four Executive Committee members in various periods since 1996, had four major painting projects so far.

Minutes of EC meeting on 13 April 2011 confirmed that owners corporation paid $61,490.00 was approved without evidence of tender (strata searches never found any competitive quotes).

In 2017, unexplained alleged costs for townhouses in amount of $92,950.00.

Details of the contracted values for the painting, including undisclosed details what painting was done on 26 townhouses which already had THREE paintings of pergolas over 20 years (against one poorly-done painting of buildings). In spite of all efforts, EC members and Waratah Strata Management could not provide any valid justification why painting of 26 townhouses that do not even have render cost owners corporation $84,498.00 (plus GST) against each seven-storey building (including roof tops) which required minimum two coats of Dulux paint, massive number of repairs for cracks and paint blistering at cost of $107.000.00 (plus GST).

In addition, five lattices in townhouses were erected without approval by owners corporation and are not part of common property: Lot 194, Lot 197, Lot 199, Lot 202, and Lot 216.

More details in the attachment.


d) Roof membrane - secret quote with competitive price was never disclosed to owners. A saving of around $30.000.00 would have been achieved had that quote been presented to owners for a roof on a single building in 2014.
 
On 9 June 2014, Dural Building Services (DBS) submitted the quote DBS Q14-048 for SP52948 roof repairs on Block B to BCS Strata Management. That information was known to maintenance staff.

BCS Strata Management paid their invoice in amount of $385.00 six months after it was submitted.

DBS quote reported that complete roof of Block B (above unit 47) would be properly waterproofed and repaired at cost of $74,800.00 (GST inclusive).

That quote was never presented to owners and was not even included at General Meeting on 26 November 2014.
The only "competitor" was Kintyre Building Services, which "won" the contract through deliberately misleading Motion at the General Meeting, without stating that their quote for HALF ROOF repairs on lock B would cost $53,960.00 plus GST, which would make that quote MUCH MORE EXPENSIVE THAN DBS.

In addition, owners were not told in clear terms that:

Kintyre's quote provided ONLY FIVE YEAR warranty for the work due to long-term neglect of roofs in the complex.

Waterproofing one whole roof in a building cost SP52948 around $107,000.00 (GST inclusive). The same work, by DBS would have cost around $74,800.00 (GST inclusive).

More details in the attachment.


e) Undisclosed huge losses to owners for illegal operation of BigAir ISP in the complex since 31 January 2014 and attempts to disregard owners decision at AGM 2014.

In addition, the sum of $12,000.00 allegedly agreed by owners corporation (without any knowledge of the contract), has two additional problems, apart from the fact that the sum is negligible and does not cover market values for renting common property, solicitor's costs, electricity costs, 5% of all earnings by BigAir since 2004, and similar:

Expenses paid to Grace Lawyers who were approved to deal with removal of BigAir in 2013/2014 without decision to general meeting, then failing to meet the expected tasks and causing expenses in amount of $4,171.95 (GST inclusive).

On 25 November 2015, The Australian Taxation Office issued Taxation Ruling TR 2015/3. Of special importance to owners is their personal liability for tax:

Income from common property (other than personal property) is taxable in the hands of the individual proprietors in proportion to their unit entitlements.


f) Carpet is a common property, for selective owners. Lot 157, who suffered major water flooding in December 2014, was allegedly caused by water leak in Lot belonging to Executive Committee member Mr. Stan Pogorelsky (Lot 181), had their carpet repaired from owners corporation funds in amount of $3,025.00 (GST inclusive) in 2014.

Lot 201 was notified that that carpet maintenance could not be paid from common funds on 9 September 2013.

Lot 123 was notified that carpet maintenance could not be paid from common funds on 9 January 2015.

More details in the attachment.


g) Exhaust fans in Lots in four buildings are secretly managed from common funds for selective owners. An example for Lot 88 in 2012, when owners corporation paid for their repairs in amount of $512.00.

More details in the attachment.


h) Exhaust fan in Block A not operating properly since May 2018. Video evidence ignored, in spite of strong concerns about OH&S and breach of SSMA 2015 Section 106.

Video evidence provided to Waratah Strata Management. Ignored so far.

More details in the attachment.


i) 24 repetitive repairs due to water damages and leaks in Lot 191 in last seven years, costing owners corporation above $20,000.00 and causing shutdown of water supply to owners in Block A around 30 hours in cumulative terms.

More details in the attachment.


j) Lot 158 web account with Waratah Strata Management deliberately blocked since March 2018, with full video evidence presented to Waratah Strata Management. This:

Discriminates against my family and me,

Prevents us from accessing strata files that are published on website,

Prevents us from accessing invoices for levy payments,

Prevents us from reviewing current balance sheet of strata plan,

Prevents us from reviewing current payments for our levies,

Possibly provides out web account details to third-party as there is
no evidence of proper keeping private information at Waratah Strata.

In addition, Waratah Strata Management has confirmed that they have full knowledge of every owner's password,even when it is changed by an owner.


k) In one year, without owners corporation approval, or knowledge, base contract value for Waratah Strata Management raised by around 11.5%:

Base value of $21,800.00 (GST inclusive) as approved at AGM on 14 November 2016, whilst preventing superior quote by Ryan Strata to be included in the agenda for the meeting.

Base value $23,110.00 (GST inclusive) plus rebates, discounts, and commissions disclosed in Disclosure Schedule, signed by EC members Mr. Moses Levitt and Stan Pogorelsky without evidence that they settled areas for unpaid levies for second gas connections on 14 December 2016.

Base value $24,310.00 (GST inclusive) plus rebates, discounts, and commissions disclosed in Disclosure Schedule C1 and C2, signed by EC members Mr. Moses Levitt and Stan Pogorelsky without evidence that they settled areas for unpaid levies for second gas connections straight after AGM on 24 October 2017. Competitive bid by Complete Building Management Group was not allowed to be presented to owners in the agenda for the meeting.


i) For four months, in period between AGM 2017 in October and EC meeting on 15 February 2018, the complex did not have legally elected Chairperson, Secretary, and Treasurer, making Waratah Strata Management fully responsible for all roles without transparency and disclosure.


j) Consolidated By-Laws registered by Mr. Robert Crosbie on 30 October 2017, without disclosure to owners and still listing Special By-Law 13, in spite of opposite decision at AGM 2017.


k) Electricity supply contract expired on 8 July 2018. Strata Manager Mr. Gary Mills, without official decision at General Meeting, or official decision by the Executive Committee, signed the electricity supply contract for three-year period on 8 July 2015, two months before the expiration of the contract. No owner received any information about it.

Strata Manager Mr. Simon Wicks, who was removed from managing SP52948 in 2011, was approached by Energy Action to renew electricity supply contract for number of strata plans as early as 11 March 2015. Mr. Simon Wicks was not an official representative of SP52948 since 2011.

Current renewal process was not disclosed to any owner and the process of who and how approved the latest contract not made at any general meeting.


l) Minutes of EC meetings and agendas deliberately not sent to Lot 158. Investigation was opened with Australia Post who confirmed that Waratah Strata Management did not send the letters via post.

Agenda for the Executive Committee (EC) meeting on 30 June 2017 (must arrive at least 72 hours before the meeting).

Minutes of the EC meeting held on 30 June 2017 (must arrive within seven days after the meeting).

Agenda for the Annual General Meeting on 24 October 2017 (must arrive at least seven days before the meeting).

Agenda for the EC meeting on 15 February 2018 (must arrive at least 72 hours before the meeting).

Minutes of EC meeting on 15 February 2018 (must arrive within seven days after the meeting).

Agenda for the EC meeting on 12 April 2018 (must arrive at least 72 hours before the meeting).

Minutes of EC meeting on 12 April 2018 (must arrive within seven days after the meeting).

Agenda for the EC meeting on 21 June 2018 (must arrive at least 72 hours before the meeting).


m) Some minutes of EC meetings and agendas not published on notice boards.


n) Elevator maintenance contract not disclosed to owners. Mr. Robert Crosbie is on record for saying that he would not provide a copy of it in February 2018.


o) Selective townhouse owners receiving reimbursements for private water and gas usage in inequitable manner and without since 1999, including four members of the Executive Committee in different time periods. Special attention is given to ANN payments since AGM 2017 as owners did not approve renewal of Special By-Law 13.


p) Refer to attachment for photo or video evidence of other issues and concerns.

Regards,