All references are to the agreement appointing Archers BCM (Gold Coast) Pty Ltd ABN 29088272913 and The body corporate for Somerset Gardens CTSS25221 signed on the 14th October 2020.
It is worth noting that the second sentences after listing the parries to the agreement the appointing Archers BCM (Gold Coast) Pty Ltd to provide for the engagement of a professional manager by the body corporate says:
This agreement is may only be used by professional manager hold a practice certificate issued by SCA (QLD)”
SCA (ALD) list membership categories, that presumably allowed the issue of a practice certificate issued by SCA (QLD), as either a corporation or individual and corporate can have nominees. There is the ability to complain about members of SCA[1] if members do not adhere to the SCA code of conduct[2]. This is relevant to the categories that are applied to schedule C & D charges.
In term 4.5 of the agreement it states:
“The manager will at all times comply with:
- The Act
- the module,
- the code of conduct in the Act applying to professional manager and
- the Code of Ethical Conduct published by SCA (QLD).”
In term 4.6 of the agreement it states:
“the body corporate will use it’s best endeavours to ensure the voting committee member at all times (are) aware of their obligation under and shall comply with the code of conduct in the Act applying to voting committee members”
The agreed, under section 6.1(a) fees for service in item B, is that for payment of 4 x fees instalments of (excluding GST) for $11,550, per year indexed by CPI that was 3.0% in October 2021, and was 7.3% in October 2022. It is worth noting that the caretaker agreed to cap their contract increase in 2022 to only 5%.
For that $11,550, per year indexed by CPI, the body corporate gets,
“Receive and administer routine correspondence (ie simple request and providing general information)”
“Maintain and keep records”
“attend committee meeting based on 4 meetings up to 3 hours each meeting”
“prepare and distribute the notice of AGM and ancillary documents for statutory motions”
That figure is not unreasonable. However, why is the amount that is paid to Archer each year so much more?
Look at the contract. Section 6.1(b) state, the body corporate must pay Archers BCM (Gold Coast) Pty Ltd
:
“for the performance of the additional service – the fee stated in items C & D (as reviewed in accordance with this agreement) payable at the end of each month or as otherwise agreed between the parties”
There is no cap on what Archer’s can charge for and they can changed without approval by the committee. The things they charge for are:
Voting outside Committee (flying minute) $97 “per flying minute”
Archive and data storage fee per lot $4.70, that is $455.90, for what exactly?
On charging of expense per invoice $20.50
Item D states Archer is entitled to an “Hourly rate / additional professional services” , and lists what it can charge those rates for:
“any reasonable and lawful request of the Body Corporate which is not stated in item B as an agreed service”
“provide advice to individual lot owners”
“enforcement of by-laws including preparation of breach notices”
“prepare and issue ballet papers (associate community manger rate)
“received and administered non routine correspondence (in circumstance where we must obtain committee instructions)
Item D lists the scheduled hourly rate for additional professional service as
Associate Community Manager at $132.00 per hour
Stata Community Manager as $193.00 per hour (46% increase from an associate)
Senior Strata Community Manger $214.00 per hour (10/8% increase from a manager)
Remember how Archer’s use SCA documentation. Would it surprise anyone if the people they employed do not hold the SCA (QLD) has levels of accreditation[3] possible for it’s member as being:
Accredited Strata Community Manager/Associate.
Certified Strata Community Manager.
Fellow Strata Community Manager.
It appears that every person that works for archer’s is a “senior strata community Manager” because that is what the body corporate is charged. Even David Burke, who started his first role at Archer before he was “let go”. It is worth noting that It is noted that section J “special condition” of the agreement states
“the nominated body corporate manager for somerset gardens within Archer the Strat Professional will be Jason Boatswain. No change will be made to the nominated body corporate manager with the written approval of the committee which will not reasonable be withheld.”
Such approve was never sought or given by the body corporate.
However, there are more charges that we have to pay.. Schedule E on the contract is for “disbursements” the. This charge is for administrative services, like scanning $0.71 cents per page, $0.52 for each call (presumably made and received) and $1.00 pre recipient for each email sent! But again look at the fine details. The contact says “flat rate” of $7,760 per year. So why at the last committee meeting was the Archer representative telling the meeting that there was a fee of approximate $500 to send out the caretaker’ report when it was able to go with the minutes for free?
For that mater, why also was a “per item disbursement” being considered as charge when the contract say we have a “flat rate of $80 per lot of $7,760”per year. Notice again that amount was not disclosed on the motion to appoint Archer’s
But that is note the worst of it. You could reasonably think that “a flat rate” meant that. IT would not change. Sorry, look at the contract further:
Notice that the increase is not by CPI, and Archers dose not even have to tell the body corporate or negotiate the increase with the body corporate. Archer can make the increase what ever it wants. Look at the figures on the statement of accounts for 1/8/21 to 31/7/22 the there was “$7,762.42” charged for disbursements and an additional “$3,404.30”, 43.8% extra charged as “Disbursements – additional”. That is a total of $11,166.72 for the year.
Was that an exception situation. The figures for this financial year suggest it is a way for Archer’s to get more out of the body corporate. Till the 19th June this year the Disbursements have been $14,038.47. That is up another 25% for only 10 ½ months.
Did anyone in the body corporate vote for this?
To make it worse the committee would not disclose who it was speaking to about the next body corporate manager engagement.
Question that are reasonable to answer from Archers BCM (Gold Coast) Pty Ltd are:
- Is a request sent to Archers BCM (Gold Coast) Pty Ltd from an owner or the caretaker asking for communication attached be sent o the Secretary of the committee a “non routine correspondence”, under Item D of the agreement?
- What would be an example of “non routine correspondence”, under Item D of the agreement?
- Would the action of the service for “non routine correspondence”, be charged at the rate of Stata Community Manager?
- For a single email with one attachment that was “non routine correspondence”, what portion of an hour would that be charge to the body corporate?
- Has Archers BCM (Gold Coast) Pty Ltd charged the body corporate for the preparation and issue ballet papers at $132 per hour for the 2022 AGM under item D?
- Concerning the commination that was sent to Violet Blackstock on the 24th May 2023, and to the owner of lot 77, as they were not a “any reasonable and lawful request of the Body Corporate, since there was not motion passed to send it to Violet Blackstock” can Archers BCM (Gold Coast) Pty Ltd assure the body corporate that no charge will be made to it for the communication?
- Has Archers BCM (Gold Coast) Pty Ltd ever charged the body corporate for “advice to individual lot owners” under item D?
- If asked, as the service for “advice to individual lot owners”, listed under item D, would Archers BCM (Gold Coast) Pty Ltd provide that service?
- Would Archers BCM (Gold Coast) Pty Ltd charge the body corporate for advice provided by it to members or any member of the body corporate committee?
- Would Archers BCM (Gold Coast) Pty Ltd provide “advice to individual lot owners” under item D without the approval of the committee?
- Does Archers BCM (Gold Coast) Pty Ltd charge the body corporate Archive and data storage fee of, per lot $4.70, being $455.90? and what time frame is that charge applied for, or each access to the data or yearly?
- How much data does Archers BCM (Gold Coast) Pty Ltd store under item 13.3 for the body corporate?
- Is Archers BCM (Gold Coast) Pty Ltd aware that there is 15GB of free storage available on google drive?
- Is Archers BCM (Gold Coast) Pty Ltd aware that the cost of storage on google drive is 100 GB. $1.99 / month, 200 GB. $2.99 / month, 2 TB. $9.99 / month ?
Noting
All care no responsibility, in these condition on the agreement
There is the condition to keep things Electronically
Both parties or Archers alone can terminate the agreement.
[1] https://www.qld.strata.community/qld-code-of-conduct
[2] https://www.strata.community/code-of-conduct
[3] https://www.qld.strata.community/qld-accreditation