Covid-19 – Strata Budgets

Strata Corporations are self-funded entities and at this time there is no government relief funding available for them to assist in the management and cashflow of their funds. 

A Strata Corporations has a statutory duty to repair and maintain its common property in a good and structurally sound condition, which includes cleaning of common areas, maintain adequate insurance policy and provision of essential services (i.e. lifts, security, electricity, gas, and water).  

To ensure a Strata Corporations is able to meet its financial obligations, Owners are still required to pay their levied contributions, as approved at a General Meeting. 

In some instances, the Strata Corporations can review ways to reduce their expenditure during these times of uncertainty and to assist cashflow requirements. 

It is suggested that any non-urgent sinking/capital works should be placed on hold and consideration be given to temporarily cutting the sinking/capital works levy if owners require levy relief (further noting that this will not be possible unless a scheme has adequate savings, and if any works are able to be placed on hold). We recommend that the Strata Corporations undertakes a revision of their Capital Works Fund Plan, to defer all non-essential works for another 2-3-year period. This will provide for an opportunity to catch up, as well as maintain their legal requirements under the Act. 

Generally review your contracts, as sometimes a contract is on a rollover, and if the service is non-essential, it may be able to be suspended or services limited if possible. 

A breakdown of services considered essential and non-essential for a Strata Corporations is noted as follows (note: other services may be available to the building). 

Item Notes Action 
Strata Management base fee Contractual cost – no saving to be made, noting that we have an increased workload relating to COVID-19, additional costs incurred which are not recoverable and pressure on parts of our revenue  n/a
Strata – Additional Services These are costs that are effectively optional for an owners corporation/body corporate Committee consider undertaking the work themselves (e.g. running committee meetings themselves, preparing agendas/minutes) Lesser costs for meeting Put off non-urgent works 
Taxation Statutory Requirement – unchanged n/a 
Legal Costs Unless a legal matter is ongoing, these may be able to be delayed (e.g. tribunal action for a breach of by-law) Note that defect statutory timeframes still need to be complied with Consider whether matter important enough (or possible) to pursue legally and whether there is a requirement/obligation to do so 
Disbursements Must be incurred when owner has only provided a mailing address in relation to levies/statutory notices (e.g. agendas/minutes), as well as operating costs under the Agreement Owners/agents should provide email addresses to reduce disbursement costs and otherwise discuss with their manager how these costs might be reduced  
Software n/a contractual cost n/a 
Insurance Required As always, broker should be working to ensure owners get the best deal. Payment installment or premium funding may be options. 
Building Management Contractual cost Building Managers are now busier as a result of COVID-19 and are considered an essential service provider. Services delivery may be delivered by alternative means to ensure social distancing. Critical to scheme and resident management. 
Security/Concierge Generally contractual in nature This should be reviewed case by case. 
Cleaning Essential service – may increase due to extra cleaning required Cleaners are now busier as a result of COVID-19 
Gardening/Landscaping Possible to reduce cost but ensuring that gardening/landscaping doesn’t get out of hand Residents could consider undertaking the work themselves, but ensure you notify the insurer of the type of work being undertaken, in order to maintain liability coverage under Voluntary Workers Policy 
Fire Maintenance Essential service n/a 
Fire Monitoring Essential service n/a 
Fire Repairs Essential service n/a 
Lift Maintenance Essential service n/a 
Lift Telephone(s) Essential service n/a 
Air-Conditioning Essential service n/a 
Pumps/Irrigation/On-site detention Essential service  n/a  
Access Control System Essential service n/a 
CCTV Essential service n/a 
Electrical Essential service n/a 
Exhaust/Ventilation Essential service n/a 
Garage Doors Essential service n/a 
Garbage Compactor Essential service n/a 
Gym Equipment Gym should be closed Costs to maintain equipment/utilities in relation to gym offset 
Hot Water Equipment Essential service n/a 
Locks/Keys Essential service n/a 
Pest/Vermin Control Possible to reduce costs by decreasing the amount of sprays completed; not applicable to termite sprays due to warranty review 
Pool (Servicing/Chemicals) Pool should be closed Nb – Councils still require compliance and chemical/maintenance costs cannot be fully eliminated.  Costs to maintain equipment / utilities (heating/lighting) / chemicals in relation to pool offset  
Plumbing and Drainage Essential service n/a 
Window/Facade Cleaning Able to reduce cost Reduce the amount of window/facade cleaning visits NB – if cleaning is required under warranty, ensure that it occurs as normal 
Electricity Essential service n/a 
Water Essential service n/a 
Gas Essential service n/a 
Rubbish Removal Essential service n/a 
Carpet Cleaning Possible to reduce costs by decreasing number of cleans Review needs 
General Repairs & Maintenance that could pose OH&S (i.e. broken tiles) Essential service n/a 
Roof/Gutter Repairs & Maintenance Essential service n/a 
Telephone Expenses (i.e. lift/fire) Essential service n/a 

Covid 19 – Strata and Building Management Perspective

We have now entered an unprecedented period for the 21st century with the onset of Covid 19 virus and the measures which need to be taken to control the spread of it.

Businesses across Australia and the world are all affected in one way or another – there’s very few that will be able to thrive in the circumstances due to the effect on our workplaces, clients, and staff.

The response in Australia is increasingly drastic and we need to adequately prepare for a difficult period over the next few months as services and facilities are shutdown or become increasingly stressed. We are blessed with one of the worlds leading health systems, however, we need to act with caution and be ready to give our support to the most vulnerable within our society.

Bright & Duggan and Cambridge Management Services have introduced a policy of having all frontline strata management staff work from home and ceasing face to face meetings – I applaud our Executive Management Team in reaching this decision as quickly as it did. The update is available on the front page of our website – https://www.bright-duggan.com.au/ . We have different policies for Building managers and other staff within the business – these are being continually updated.

Strata and building management business are very much affected by the fact that we have workforces that have a lot of external meetings, have a number of visitors to our offices, that we provide a variety of onsite services at buildings and have large numbers of office-bound administration staff. That said, we are able to offer a great number of our services remotely.

Some strata and facility businesses have the ability to enable their workforces to work from home (which wholly depends on the staff member having the technology to do so); it’s very difficult to offer building management services offsite when the contract requires onsite services.

We manage people’s homes (and in some cases workplaces, where we manage commercial schemes) and thus have very serious obligations to the occupants to show leadership during this time and do whatever we can to assist authorities in mitigating risks.

What should we all do as soon as possible:

  • Give staff the ability to work from home where possible and ensure that we are aware of the workplace that staff are working from – employers still have work health safety obligations where their staff work from home;
  • Support your staff with whatever circumstances are put on them (sickness, schools/childcare services ceasing for a period);
  • Cease face to face meetings and adopt alternate means of meetings provided for under legislation – this may include meeting via proxies, phone/video conferencing, online or paper voting papers, etc;
  • Take practical steps at your buildings to reduce the risk of infection – additional cleaning, signage, etc.

Some of the potential issues we need to overcome

  • Continuing compliance with strata legislation which can become difficult without being able to conduct certain meetings, arrange onsite inspections, etc;
  • Annual inspections – particularly annual fire safety statements;
  • Defect timelines and the potential inability to do defect inspections/commence proceedings;
  • Contractor attendance – what happens if electricians, plumbers, etc won’t attend site?;
  • Waste management (we presume that council and private collections will continue as normal – if they didn’t it would be bedlam) – we may have to deal with much-increased levels of waste in the event that buildings have all occupants at home for long periods;
  • Residents needing help and assistance throughout any period of enforced isolation;
  • Conflicting and complex legal obligations;
  • Owners/occupants coming under financial stress – non-payment of levies; and
  • Continuing to facilitate strata searches, collection of keys, etc.

One of the great opportunities we have here is to change the way we operate our businesses (with a move to electronic meetings) and provide help and support to people that need it most.

It’s not business as usual but we need to make sure this is the best business we can do.

Beaches, Beaches, Beaches (of the Hunter region)

Stunning Nobbys Beach on New Years Day

It seems rude not to write a post on beaches after spending the Christmas period enjoying some of the best beaches that the Hunter region has to offer. Plenty of people live and holiday in strata-title close to beaches, so it’s definitely a relevant topic!

Within 1 hour of the Newcastle CBD, you have 40+ beaches to visit (is there anywhere else in the world where you have the beach variety?)- from the Central Coast to Lake Macquarie, through Newcastle, north to Stockton, Port Stephens and Tea Gardens. There’s swimming, surfing, sunbathing, snorkelling, water sports, sandcastle building and a range of other recreation activities.

We went no less than 10 beaches over the 16 days of holidays in Port Stephens, Lake Macquarie, and Newcastle. That is but a drop in the ocean of the total number of beaches given that Port Stephens alone has over 20 beaches.

Here are a few of my favourites (one from each of the coastal Hunter region Local Government Areas) and all my own photos.

Birubi Beach

Beautiful Birubi beach, looking down Stockton Beach

Located in Port Stephens in Anna Bay, Birubi is the at the northern end of Stockton Beach.

The water is turquoise, it’s great for pitching an umbrella on, kids love it as there is plenty to see and do exploring the rocks and it’s easy/free to park and get a shower as you leave. Birubi is a leisurely 45-minute drive from Newcastle and you can stop for a meal and a beer at Murrays or Valhalla on the way home.

Bar Beach

Bar beach at low tide

Bar Beach is the northernmost beach on the 1.3km stretch of sand which includes Merewether and Dixon Park Beaches.

We went to Bar Beach repeatedly throughout the break. It’s easy and free to park at, quick to get onto the beach (no long trudge over hot sand) and has a great cafe and facilities. Once on the beach, you have surf to the right and then a sand bar which is above water at very low tide and otherwise underwater and a great safe place to swim. On the left, there is a man-made tidal pool which is perfect for kids.

Bar Beach is one of the best beaches you will find this close to density, anywhere.

Redhead

Looking down Redhead down 9 mile beach/Blacksmiths

Redhead reminds me of the beautiful Port Stephens Beaches (without needing to go to Port Stephens to get there). Endless sand and waves and a great coastal shelf allowing you to get out in the surf without it being too deep. Whilst it can be rough, it’s well patrolled (swim between the flags!) and nearly always great for swimming. It can be prone to sharks, but that’s largely a concern for the surfers – they’re further out!

Parking at Redhead is plentiful and free and the facilities/cafe are great. There’s also an awesome SLSC which is open to the public for drinks and live music of a Sunday during summer. They also occasionally do markets in the car park behind the SLSC.

Redhead beach markets

The beaches in the Hunter region are stunning – there’s so many to check out and each has its own unique characteristics. Here’s a non-exhaustive list of beaches to check out over summer:

Lake Macquarie

https://www.visitlakemac.com.au/see-and-do/beaches-and-swim-spots/beaches

Caves Beach – check out the caves and Caves Coastal Bar and Bungalows

Redhead Beach

Dudley Beach – The Royal Crown Hotel is a must-visit if going to Dudley.

Catherine Hill Bay – Amazing historical area, formerly a coal-mining town.

Blacksmiths Beach – The other end of Redhead which isn’t quite as good (I haven’t been there so this isn’t an educated opinion!).

Nine Mile Beach – between Redhead and Blacksmiths – known for 4wding.

Burwood Beach (in the amazing Glenrock State Conservation area) – desolate and unspoilt.

Port Stephens

https://www.portstephens.nsw.gov.au/play/recreation-in-port-stephens/beaches-and-foreshores

Box Beach

Zenith Beach

Fingal Bay

One Mile Beach

Samurai Beach

Shoal Bay – stunning beach albeit very small at high tide, check out Shoal Bay Country Club when there.

Boat Harbour Beach – personal favourite as we have holidayed there since I was young.

Kingsley – Tiny surf beach – it’s a stunner.

Kingsley – not my photo!

Fishermans Bay

Taylors Beach

Little Beach – Little Beach boathouse is a must visit

Fly Point

Dutchmans Beach

Newcastle LGA

Newcastle Beach – an amazing piece of sand in the middle of the CBD. Check out the SLSC Sunday arvo for drinks. $3 drinks at 3pm!

Stockton Beach – Australia’s longest coastal dune system stretching from Newcastle Harbour to Anna Bay, it has the largest continuous mobile dune system in the Southern Hemisphere.

Nobbys – stunning beach right in the CBD with free parking and again, check out the SLSC on a Sunday.

Horseshoe Beach – On the harbour – dog beach

Glenrock Beach

Susan Gilmore – only accessible at low tide – once a beach for rogue nudists I’m told…

Bar Beach/Dixon Park/Merewether – one of the best stretches of sand in Australia. Check out all the venues along it – Cooks Hill surf club, Bar Beach Bowling Club, Merewether SLSC, Merewether Surfhouse and the Beach Hotel.

Merewether Surfhouse

Bogey Hole – not a beach but you gotta check it out – rock pool built into the cliff by convicts.

The Bogey Hole

Defibs in strata and community schemes – the facts

Defibrillators (or ‘defibs’ for short) are a hot topic right now – deservedly so as having one close at hand can mean the difference between life and death.

We recently had the pleasure of a visit from Guy Leech who now spends his working life as a defib ambassador (Founder & CEO) for Heart 180, one of the worlds leading suppliers of defibs.

Defibs have started to become common in larger strata and community schemes (particularly in pool/gym areas), however, we believe they should be common at any size scheme because of the concentration of residents and the absolute difference they can make in the event that someone has a Sudden Cardiac Arrest (SCA).

As we get further into the needs and wants of those living in strata and community schemes, we see health and safety as one of the paramount (but passive) issues for residents. Defibs have a very important role to play in the area of health and safety and we’ll be spending a lot of time in 2020 and beyond talking to building owners and developers about the benefits of having these onsite.

We are all about smarter buildings and this is the key to making ‘heart smart’ buildings.

The following is a fact sheet that we prepared with the guys at Heart 180.

Sudden Cardiac Arrest is the leading cause of death in Australia. Having an accessible Defibrillator in your building can make the difference.

A Sudden Cardiac Arrest (SCA) is a condition that occurs when the heart unexpectedly stops pumping. Each year, SCA strikes approximately 30,000 Australians.

Unfortunately, only around 6% survive, often because help cannot reach them in time. The average ambulance response time is between 9-14 minutes. SCA is not gender or age-specific!

Without defibrillation, for every minute that passes, the chance of survival is reduced by approx 10%. Application of pads on patient within 180 seconds increase the survival rate to over 70%. With good CPR & a defibrillator up to approx 90% survival rate.

We are in an increasingly cautious world and one of the protections that can be provided to residents is an accessible defibrillator located in key common areas, that they are able to access in the event that someone is having a cardio event, giving them a chance at survival.

What are theyDefibrillation is a technique used in emergency medicine to terminate ventricular fibrillation or pulseless ventricular tachycardia. It uses an electrical shock to reset the electrical state of the heart so that it may beat to a rhythm controlled by its own natural pacemaker cells. A defibrillator is a commonly used medical device which can deliver this shock. A defibrillator delivers a set amount of electrical shock to the heart after it analyses the heart rhythm. It determines whether a shock is required to the heart via adhesive electrode pads attached to the person’s chest. The shock delivered by a defibrillator interrupts the chaotic rhythm of the heart and gives the heart the chance to return to its normal rhythm.
The DevicesThe common defibrillator is highly advanced and will guide the user through the process. A device cannot be used on people without a cardiac issue. The Heartsine samaritan PAD 500P AED (Automated External Defibrillator) with integrated CPR Advisor meets the needs of two key links in the chain of survival. Not only can the SAM 500P deliver a lifesaving shock, it provides real-time visual and verbal feedback to the rescuer on the force and rate of CPR compressions during an SCA resuscitation – effectively assisting the rescuer to perform CPR. Defibrillator’s assess the status of a person’s heart and will not shock a normal heartbeat.
Training for using defibrillatorsAnyone can use a defibrillator – it is just a matter of following the voice prompts provided by the unit. However, training is recommended to give the user greater confidence. Heart180 provide an online CPR & Defib course or can arrange face to face training.
Where they should be installed at a buildingDefibrillators should be able to be accessed by a rescuer within 180 seconds of a person having a SCA anywhere in the building. This means locating devices as close as possible for quick access by all units – if not every floor, in ground floor/lobbies, recreation areas and possibly lifts.
MaintenanceMinimal maintenance required – will need to be serviced if discharged, however the devices have an 8-year warranted life span with a battery replacement at Year 4.
LiabilitySpecifically mandated that training is not required. No liability attached to misuse of devices. Held less liable than if administering first aid to someone, given verbal consent is required. Civil Liability Act 2002 No 22: https://www.legislation.nsw.gov.au/#/view/act/2002/22/part8 ANZCOR Guideline 7 – Automated External Defibrillation in Basic Life Support: https://secureservercdn.net/184.168.47.225/777.066.myftpupload.com/download/section_7/anzcor-guideline-7-aed-jan16.pdf

If you have a SCA in Australia outside of hospital – the survival rate is around 6%.

If you have a SCA in Seattle (US) outside of hospital where defibrillator use is common – the survival rate is around 64%.

Parkrun Australia (Case Study)

Parkrun organise free, weekly, 5km timed runs around the world. They are open to everyone, free, and are safe and easy to take part in. Heart180 have supplied 225 defibrillators over an 18-month period to Parkrun Australia.

The first save at a Parkrun in Australia occurred 3 months after Heart180 began supplying defibrillators.

Please find more information at the following link on Brett Orpwood’s survival story: https://heart180.com.au/a-shocking-lifesaver-as-brett-enjoys-his-second-run-of-luck/

If you want to no more about defibs – get in touch with Paul Dineen.

Phone: 0447 772 300
paul@360healthcare.com.au