A voting machine

Electronic voting is easier for owners

At the 2017 AGM the body corporate voted overwhelmingly in favour of electronic voting
‘when the technology became available’. Compliant electronic voting systems became available in 2019 and in 2020 Body Corporate legislation was amended in 2020 to simplify the introduction of electronic voting to ‘allow voters to cast a vote using a computer, smartphone or computer tablet.

However, at the 2021 AGM, the committee, rather than encouraging owners to vote and engage in body corporate decision making, proposed a motion without explanation to revoke the 2017 motion, which unfortunately passed. This intentionally limits the opportunity for owners to vote where they cannot attend meetings. Instead, they must download, complete, scan and email their voting papers (which is not always possible) or rely on postal services which are expensive and unreliable – especially for owners living or travelling interstate or overseas.

This complicated process is eliminated entirely when an owner can ‘cast a vote using a computer, smartphone or computer tablet’.

Southport Central Residential is languishing behind many other bodies corporate. Electronic voting is convenient, cost-effective and improves transparency and accuracy in vote counting. It will enable YOU to vote from anywhere. It is not compulsory, and you can still vote by traditional means or vote in person at the AGM, if that is your preference.

VOTE YES to introduce electronic voting and let owners vote online at all body corporate general meetings.

Flooding in Tower 1 at Southport Central Residential

Replacing Aquatherm pipes could cost a fortune

Catastrophe struck tower 1 on 20 February 2023 when a polypropylene Aquatherm water pipe on level 10 burst and unleashed a torrent of hot water that collapsed the level 10 foyer ceiling, and flooded apartments, stairwells, lift shafts and common areas on levels 10 and 9. Lifts, electrical boards, security systems and lighting were taken out and one lift took months to return to service.

Residents on upper floors unable to navigate dozens of staircases were initially stranded. The volunteers who brought them supplies/assisted those who could navigate the stairs deserve our gratitude.

Eight months on, and the body corporate committee has offered only limited information about the progress of repairs and the estimated cost of repairs. Two building managers reports in March and April 2023 describe action to be taken and provide a schedule for reparation works. But that’s it. That’s not good enough.

The body corporate manager, who maintains all the body corporate records, when requested to provide a copy of the ‘expert reports’ obtained by the committee replied: “We are not aware of the documents you refer to.”

The Chairman of the Committee has ignored a similar request for information. Why the secrecy?

We still don’t know whether the damage to common and personal property will be covered by the body corporate insurance or to what extent. We don’t know what steps have been taken to prevent or minimise the prospect of a second pipe failure. We don’t know if insurance would cover a second event, particularly if we’re slow to replace the Aquatherm system.

We do know that in 2019, US$23.5 million was needed to repair a US jail’s extensive Aquatherm system which was under a decade old.

We do know that in February 2016 a Brisbane body corporate made application for an adjudicator’s order to authorise spending to replace the Aquatherm hot water line at a cost
above the committee’s spending limit and that numerous bodies corporate including Watermark Kangaroo Point, Marquis On Main Beach,  Signature Park Apartment
Merrimac, Regatta Riverside Toowong, Ocean Pacific Broadbeach, Metropolis On Ann Brisbane CBD, Tempo Apartments West End, and Quest Riverpark Central Brisbane CBD have all replaced their Aquatherm piping.

We do know that Aquatherm, a German plumbing invention of the 1980s, is expected to fail if the pipes are NOT PROPERLY clamped, became prone to failure if certain
chemicals are in the water such as chlorine, and if the water is particularly hot, as is common in Australian installations.

There had been problems with the hot water pipes at Southport Central in the year before the pipe burst. The Mantra Building Manager’s report of 31 August 2022 advised of significant leaks in the Aquatherm hot water feed pipes in Tower 1, and noted it had been suggested that a secondary hot water feed line be installed using copper pipes to do away with the Aquatherm (polypropylene) pipes to avoid a potential major flooding incident.

At the AGM in late 2022, owners approved a committee motion to set aside $600,000 of sinking fund money to urgently replace “the failing Aquatherm pipes”.

A year on from that, and some extensively water damaged apartments and infrastructure on levels 9 and 10 are still being repaired. It appears a secondary hot water feed line will need to be installed to replace on all residential levels. The
installation includes cutting core holes in the concrete fire stair landings to reroute the hot water feed line.

Insurance usually covers only replacing like-with-like, but it seems the proposal is to not only reroute the hot water feed line but replace all Aquatherm pipes with copper
pipes from the rooftop down through residential levels 39 to 9, and through the foyer ceiling spaces in each level.

Aquatherm pipes are installed in Tower 1 only, but ultimately all owners contribute to the sinking fund and cost of repairs beyond that covered by insurance.

Beyond what insurance will cover, all owners in Southport Central Residential will bear the cost of this work and must be provided with access to all relevant reports, which can be simply posted on the Portal maintained by the Body Corporate Manager) detailing the scope of works, estimated cost and timeframe for this work to be carried out.

We know it is not possible to predict when and if further failure of the existing Aquatherm pipes will occur, but all Tower 1 owners and their tenants must be told what steps, if any, have been taken pending replacement of the existing Aquatherm pipes to minimise the prospect of a further flooding event. Their safety is at stake.

Should an Aquathern pipe burst on a much higher level, it could have an even more widespread, catastrophic effect and send water cascading down dozens of floors with massive cost consequences.

Image of a secret meeting

LPE power deal isn’t transparent

In 2023 the body corporate committee sought to enter into a 60-month agreement with Locality Planning Energy Pty Ltd (LPE) to be the designated power provider at the complex from January 1, 2024 until December 31, 2028.

Our view was that this is lengthy agreement, especially given the lack of transparency on aspects of this would operate.

For example, the then proposal made no mention of the ‘offset’ arrangement it had negotiated with LPE for common property electricity.

We were told in official Newsletter No.27 that “the body corporate is expecting to receive an annual offset of approximately $291,155 including GST to be applied against common property electricity charges . . . which is expected to cover all future common area electricity charges.”

A one-year initial agreement would have been wiser, especially considering possible electricity charges that we could be locked into paying.

Nevertheless, the committee’s motion passed at the 2023 Annual General Meeting unamended. The motion said:

That the body corporate agrees:

  1. to enter into a 60-month Agreement with Locality Planning Energy Pty Ltd ACN 148 958 061 (LPE), for a term commencing on 1 January 2024 and expiring on 31 December 2028, in the terms and conditions of the attached Agreement and Schedules, to continue as the retailer for the scheme’s existing embedded network for the supply and billing of electricity, water heating and cooker gas to the common property and all lots;
  2. that LPE will operate a tender for the energy supply through an independent third Party;
  3. that the committee has the authority to do all things necessary to provide relevant information to LPE and to sign any documentation to allow the tender to be conducted by LPE;
  4. that LPE will endeavour to achieve agreement for all parent meter NMIs to be included in one contract to ensure that the best wholesale rate is secured and all NMIs align with the same contract end date;
  5. that LPE will endeavour to ensure the electricity rate applied will be same across all Community Titles Schemes on the site;
  6. that the committee has the authority to accept the best available wholesale offer received through the tender process;
  7. that the committee has the authority to agree to the wholesale energy rate within 7 days of receiving the results of the tender process;
  8. that LPE will bill electricity at Passthrough (cost price) plus the recovery cost of the tender process and the billing fee;
  9. that all residential customers will have access to consumer rights, protections, and financial support in accordance with current legislation;
  10. that the seal of the body corporate is to be affixed to the Agreement and two members of the committee be authorised to sign it.