... the Grand has been neglected
In the past, Administration Fund fees have been too high and Maintenance Fund fees have been too low - that needs to change. Competitive quotes and renegotiated contracts will reduce administration expenditure and those costs savings can be allocated to long term maintenance.
I used your proxies at the last AGM to vote for lower Administration Fund fees and higher Maintenance Fund fees - your total fees were reduced. But, it is important that Maintenance Fund fees increase otherwise the value of your investment will decrease.
Your new committee approved the drafting of a Maintenance Plan that would comply with the requirements of the Owners Corporations Act:
- the major capital items anticipated to require repair and replacement within the next 10 years
- the present condition or state of repair of those items
- when those items or components of those items will need to be repaired or replaced
- the estimated cost of the repair and replacement of those items or components
- the expected life of those items or components once repaired or replaced
- any other prescribed information
If we repaired everything next year it would cost more than:
- $200,000 for external walls
- $300,000 for windows
- $100,000 for doors
- $200,000 for fences
- $500,000 for roof
- $100,000 for Grand staircase
- $100,000 for pool area
- $100,000 for carpark
- $300,000 for elevators
1,2,3,4,5,6 - internal painting and carpets alone will be very expensive.
However, our new Maintenance Plan provides for repairs spread out over the next 15 years, with a cash surplus remaining to provide for the repair of longer
term items. It will be reviewed and updated every 5 years.
Our new Maintenance Plan will require nearly $4,000,000 to be raised in Maintenance Fund fees over the next 15 years. To meet this need, Maintenance Fund fees next year will be $192,821.
But, don't despair - last year I used your proxies to reduce the Administration
Fund fees proposed by representatives of Fulbright by $50,000, and next year,
if you give me your proxies again, I will use them to reduce your Administration Fund fees again.
During the last year, your new committee has negotiated cost reductions in
many areas – for example, your Administration Fund fees next year will be
lower than they were 12 years ago for:
you paid this year - your new Committee of Management, your new Owners Corporation Manager and your new Facilities Manager are a team that can deliver increased value and reduced costs.
But, don't despair - last year I used your proxies to reduce the Administration
Fund fees proposed by representatives of Fulbright by $50,000, and next year,
if you give me your proxies again, I will use them to reduce your Administration Fund fees again.
During the last year, your new committee has negotiated cost reductions in
many areas – for example, your Administration Fund fees next year will be
lower than they were 12 years ago for:
- insurance
- rubbish removal
- security surveillance
- elevators
- owners corporation management
you paid this year - your new Committee of Management, your new Owners Corporation Manager and your new Facilities Manager are a team that can deliver increased value and reduced costs.
