Calamvale Gardens [2008] QBCCMCmr 113 (3 April 2008)

Number of Scheme:	22938
Name of Scheme:	Calamvale Gardens
Address of Scheme:	121 Golden Avenue CALAMVALE QLD 4116

TAKE NOTICE that pursuant to an application made under the abovementioned Act by

I hereby authorise the body corporate for Calamvale Gardens to spend the sum of $29,655.75 plus GST for the purposes of paying Quik Electrical Services Pty. Ltd. for urgent repairs to the underground sub-main electrical cable that supplies electricity to some 16 lots and common property.

Calamvale Gardens is a 70 lot scheme regulated by the Body Corporate and Community Management Act 1997 (Act) and the Accommodation Module Regulation (Accommodation Module). The scheme is registered on a Standard Format Plan, previously known as a Group Titles Plan.

Application
This application is made by the body corporate, seeking authorisation for emergency expenditure of $29,655.75 plus GST for the purposes of meeting the cost of replacing an underground sub-main cable to a switchboard which supplies electricity to 16 lots and common property.

Following a power outage at that switchboard, an electrical contractor was engaged to trace the cause of the outage. Following replacement of the circuit breaker and excavation of the underground cable, the contractor found that there were faults in the cable and conduit which were being penetrated by water. Owing to its poor condition, it has been recommended that the cable and conduit be replaced as a matter of urgency.

At an interim measure, the contractor has erected a temporary service across a roadway but has indicated that the temporary repairs are dangerous and a new underground cable should be installed as a matter of priority. The contractor, Quik Electrical services Pty. Ltd. has provided a quotation of $29,655.75 plus GST to cover the cost of replacing the cable and conduit as well as costs incurred to date. This amount is above the relevant limit for committee spending.

Decision
Maintenance of a sub-main electrical cable that supplies electricity to a switchboard servicing a number of lots and common property, is the responsibility of the body corporate. While the Act limits committee spending on a particular project, it does recognise certain exceptions to this general rule. In this regard section 101 of the Accommodation Module Regulation provides as follows:

Spending by committee
(1) The committee may only carry out a proposal involving spending above the relevant limit for committee spending for the scheme if—
(a) the spending is specifically authorised by ordinary resolution of the body corporate; or
(b) the owners of all lots included in the scheme have given written consent; or

(c) an adjudicator is satisfied that the spending is required to meet an emergency and authorises it under an order made under the dispute resolution provisions; or
(d) the spending is necessary to comply with—

(iii) the judgment or order of a court.

The matter for my consideration is whether, in the circumstances, it would be just and equitable to make an order declaring that the Body Corporate Committee is entitled to commit funds for the purpose of effecting emergency repairs to the underground cable

In the circumstances, I believe it is appropriate for me to authorise emergency spending for the purposes of effecting the emergency repairs and replacement of the underground sub-main cable and conduit, so that a safe source of electricity can be made available to 16 lots and common property. I therefore propose to order that the body corporate be authorised to spend $29,655.75 plus GST as emergency expenditure to meet the cost of urgent electrical repairs.

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

Calamvale Gardens [2008] QBCCMCmr 113 (3 April 2008)