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The Body Corporate of Wedgewood Green MINUTES OF THE ANNUAL GENERAL MEETING OF THE BODY CORPORATE OF WEDGEWOOD GREEN THAT WAS HELD ON THURSDAY 27 MAY 2004 AT THE CLUB HOUSE AT WEDGEWOOD GREEN, 1 SMITH STREET, BEDFORDVIEW
1. Attendance Register The following registered owners were duly represented at the meeting:
Twenty seven percent of the registered owners were duly represented at the meeting, a quorum was present and the meeting was duly constituted. 2. Opening and Welcome The meeting was declared duly constituted and everyone present was welcomed. It was pointed out that the agenda would be followed as an Annual General Meeting is held to discuss the financial position of the Body Corporate and other matters as determined by the Sectional Titles Act No 95 of 1986. Matters of a general nature should be addressed at Trustees’ meetings. It was explained that owners are entitled to attend Trustees’ meetings. 3. Report by the Chairman of the Trustees The report by the Chairman of the Trustees was presented to the meeting as presented in the notice of the meeting. A question was raised as to where the complaints book was kept, as referred to in the report. The complaints book is kept in the guardhouse, Mr. Olfsen reported that he looks at the complaints’ book every day. A question was raised regarding the cleaning of the paint spills on the patios and balconies. It was explained that the painting contractor has employed someone to clean up all the paint that has been spilt; this is currently being undertaken. A question was raised regarding the election of the Trustees and the duties of the Trustees. It was explained that sufficient nominations were received before the meeting and no further nominations will be accepted at the meeting. Information regarding the duties of the Trustees was included in the notice of the meeting. A question was raised about the security at the bottom of the complex, it was felt that additional security is needed in this area. It was explained that action has already been taken. An infrared sensor has been installed, and if the beam is broken a siren will sound. Residents who hear the siren must please contact the guards. It was reported that tow trucks sometimes come into the complex in the early hours of the mornings and rev their engines. Incidents such as this should be reported in the complaints’ book. The report by the Chairman of the Trustees was accepted by the meeting. 4. Audited Financial Statements for the year-ended 31 December 2003 The Audited Financial Statements for the year ended 31 December 2003 were presented and explained to the meeting. The following anomalies in the income and expenditure statement were explained:
A question was raised regarding the proposed “Property Rates Bill”. It was explained that the idea behind this is that each homeowner will be responsible for assessments rates based on the value of the improvement of the property. This is however contradictory to the Sectional Titles Act No 95 of 1986. The Act states that the Body Corporate is responsible for the payment of assessment rates. It was also pointed out that no official notification regarding the proposed “Property Rates Bill” has been received. A question was raised regarding the cost of the painting project and the funding thereof. The cost of the painting project is R980 000.00 and will be funded out of the reserves. The type of paint being used is Plascon. Two coats of paint are being applied, the contractor is also offering a seven year guarantee. The contractor is being paid on a progress basis and retention will be held. A question was raised regarding the percentage of outstanding debtors in relation to levies receivable. The portion of debtors currently outstanding is 8.9% of levies receivable. One of the main problems is with an owner who owns five units. The amount outstanding in respect of these units is approximately R85 000.00, and the matters are currently pending litigation. It was explained that the Body Corporate is not at any risk. A unit cannot be sold and registered into a purchaser’s name without the Body Corporate issuing a clearance certificate certifying that all amounts outstanding have been paid. The current procedure regarding outstanding debtors is that when accounts are in arrears for thirty days, a final notice will be issued, if the account is still not paid, the electricity shall be disconnected. A question was raised regarding the increase of funds in the call account; this was due in part to better debtors’ collection and in part to a reduction in the amount in the current account. A question was raised as to why the Annual General Meeting was not held within four months of the end of the Financial year. It was explained that the council bills water and electricity three months in arrears and these accounts must be obtained before the books can be audited. The Audited Financial Statements for the year ended 31 December 2003 were accepted without any objections. Mr. Cumming expressed his thanks to the Trustees for the strong financial position of the Body Corporate. 5. Insurance Replacement Values The insurance replacement values, and the calculation thereof, were explained to the meeting. The insurance replacement values are the total costs of rebuilding the building should it be totally destroyed. Included are the rubble removal costs, the surveyors’ fees, etcetera. The value of the land is not included, as the land cannot be destroyed. The basic value for each unit is calculated at R3725.00 per m². This amount is determined by three factors, being the insurance company’s valuation, the bondholder’s valuation and the insurance index. It was explained that each owner also owns a portion of the common property. This in turn is insured according to the participation quota of each section and added to the basic value for that section. The common property is the area outside the individual units and includes items such as paving, perimeter walls, gates, gate motors, electric fencing, etc. The figures in italics in the schedule represent where the bondholder of the unit has requested that the unit be insured for a greater value. The owner of the unit is responsible for the additional premium charged on the additional amount insured. It was noted that where owners have extended their patios, the extended portion is not included in the size of the unit. The policy is that of a homeowner’s policy and does not cover the contents of the individual units. The insurance replacement values were accepted by the meeting with no objections. 6. Estimate of income and expenditure The estimate of income and expenditure (the budget) was presented to the meeting. It was explained that while the Trustees did not want to increase the levies by 12% it was felt that it would be prudent to do so. The Trustees took the following factors into account when compiling the budget:
It was explained that the main impact on the budget was the assessment rates. It would not be prudent of the Body Corporate to ignore this factor. However if the assessment rates are reduced by the tribunal, the levies will be adjusted accordingly. It was explained that an amount of R200 000.00 has been included in the budget for future painting projects and reparations. If this amount is not included in the budget every year, a special levy shall have to be raised when the complex is painted in the future. An estimated amount of a special levy in five years time shall be approximately R8000.00 per unit. A question was raised as to whether the Body Corporate did the right thing by installing additional security, bearing in mind the other priorities. It was however explained that the security issue was a serious concern. The Trustees were also not aware of the problems with the structure of the buildings when the security project was carried out. It was noted that in the past a comparison of the rate per square meter charged for levies had been undertaken. Wedgewood Green’s levies had compared favourably when compared with other complexes. It was proposed that an increase of 12% was too high and the acceptance of the budget should be put to the vote. The outcome of the vote was as follows: - 2 votes were cast against the acceptance of the budget; one abstention was noted and fifty votes were cast in favour of the acceptance of the budget. The proposed budget was thus duly accepted by the majority decision. 7. Appointment of an Auditor P R Niven and Company was appointed as the auditor for the year ending 31 December 2004. 8. Determination of the Domicilium Citandi ET Executandi The Domicilium Citandi Et Executandi is the legal address of the Body Corporate, where all the records of the Body Corporate are kept and where any legal notices must be sent. It has, in the past, been the address of the Managing Agent. The Sectional Titles Act, No 95 of 1986 states that this address must be the address of the Chairman of the Trustees or the address of the Managing Agent. The meeting determined that the legal address of the Body Corporate will remain the address of Jowen Property Management (Pty) Limited, being 146 Monument Road, Aston Manor, Kempton Park. 9. Determination of the Number of Trustees for the Ensuing Year The meeting determined that six Trustees should be elected to serve in office until the next Annual General Meeting. 10. Election of the Trustees It was noted that eleven nominations had been received forty eight hours before the meeting. No further nominations were therefore needed. The election of the Trustees was by means of a ballot voting system and the following Trustees were duly elected to office:
The counting of the votes was adjudicated by Ms Kamp and Mr. Cumming. The outgoing Trustees were thanked for their hard work and dedication to the complex over the past year. 11. Restrictions and Directions in Terms of Section 39(1) of the Sectional Titles Act No 95 of 1986 No directions or restrictions were imposed on the Trustees: THERE BEING NO FURTHER BUSINESS THE MEETING WAS ADJOURNED AT APPROXIMATELY 20H30 CERTIFIED A TRUE RECORD OF THE EVENTS OF THE MEETING
CHAIRMAN : R OLFSEN (SNR)
FOR JOWEN PROPERTY MANAGEMENT (PTY) LTD
DATE Copy of this AGM minutes in MS-Word format here (116Kb) |
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