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Sunday, May 30, 2010

NOTE

Sub: Annual maintenance contract of 12 lifts


Ref: Special General Body Meeting held on 23.05.10 and formation of working
committee of seven members from block A,B & C.
AMC Renewal contract papers dated 21.04.10 are said to be returned by IRWO to RWA
for arranging payments at their end. The elected body of IRWO Ph.II society is not able to
meet both hands for paying the contract amount to Service provider. Till now the AMC
amount was paid by IRWO out of funds lying with them after due approval of General
Secretary of residents association.
A special general body meeting representing residents of A, B, C Blocks and part of office
bearers held on 23.05.10 and followings were discussed in the meeting:

 Gen Secy. RWA informed that AMC of LIFTS was due renewal for the period 1 st
May’10 to 31st April’11, Renewal contract papers dated 21.04.10 forwarded to GM
EL & AR/IRWO have been returned with advise to arrange payment of Rs.
2,40,600/- (Inclusive of all taxes) for signing the AMC contract for the period 1st
May’10 to 31st April’11 with M/s. Olympus (OEMs).

 Last AMC signed and paid by IRWO for annual payment of Rs. 2,26,800/- after due
consents of Genl Secy Sh.Sumanta Ghosh of RWA has been expired on 31.04.10.

 Gen. Secy. RWA informed that entire maintenance funds of Rs. 82,19,600/- have
not been handed over to RWA to meet day to day maintenance activities at the
society and part amount received by the association has been deposited in
Nationalize Bank & payment of interest shall be quarterly.

 Gen. Secy. RWA informed that they will not be able to meet existing maintenance
expenditures (excluding Lift & Generator operation and AMC of Lifts) with the
interest amount on the FDs of maintenance fund. Short fall are to be meet with
the additional fund generated by regular monthly contribution from residents to
the tune of Rs.250 per flat per month plus additional contribution of Rs.200 per
flat from Block A, B & C towards operation of Lifts and DG Set.

 Gen. Secy. RWA announced that Block A, B & C have more maintenance and
operation expenditure than the rest of blocks, therefore payment of expenditures
of user blocks has to be meet by respective USER instead from common kitty of
maintenance funds.

 In view of above to deal with the crises, anonymous decision to form a committee
of resident members from Block A, B & C is taken during Special General Body
Meeting. A committee of SEVEN resident members has been formed to deliberate
5 responsibilities listed in the CIRCULAR dated 23.05.10 which includes total
responsibility to arrange funds to meet Expenses towards DG Set & Lift AMC,
operation and maintenance exclusively from USER blocks A, B & C only.
On study of the contract & availability of the maintenance funds for different heads,
following are the details for information of all concerned:
The amount of AMC was known to RWA since beginning and Gen. Secy. did sign all the
contracts before making payments every time. To meet the well known short falls RWA
did not taken any step to generate additional funds to meet their requirements and
suddenly announced their view point of dividing the society is not appreciated as
maintenance fund has major contribution from type III & IV Flat owners only.
Vide letter No. IRWO/AR/PKL-II dated 24.12.2003, Lift maintenance charges were kept low
by IRWO (in line with phase-I) and revised charges towards the lift maintenance of Ph.II
Type-III & IV flats has not been reviewed by IRWO being not cared by the then office
bearers and neither by the present members holding positions from the last FIVE years.
Gen Secy expressed reasons of inability for the maintenance and operation of lifts in
Blocks A,B & C during Special General Body Meeting called on 23rd May’10 and sought
separate committee according to geographical layout of the blocks in Ph. II which was
accepted in the interest of residents. As per work authorisation to the appointed
committee, they hold responsibility to Select, negotiate & Sign the AMC with bonafide
servicing company and shall also be responsible to generate funds to pay all other
operation and maintenance services. (Vide circular No. NIL dated 23.05.10 of RWA Ph.II
issued by Gen Secy.)
This means committee thus appointed in special general meeting shall be operating as a
separate fund managers to meet all expenditures of block A, B & C towards maintenance
activities & operation of Lift and DG Set including payment of AMCs.
On deliberations made continuously by the committee members to find out solutions to
the problem created by IRWO using lack of knowledge with RWA office bearers on the
subject.
Following known exclusively variable Maintenance FUNDs (Except water supply funds
being uniform for all type of flats and can’t be distinguished by any means) as paid by
allottees of Block A B & C before possession of each flat is detailed below:
1. Lift Maintenance fund : 27900 x 92 = Rs. 2566800/-
2. Basic Maintenance : 18600 x 48 = Rs. 892800/- (Block B & C)
3. Basic Maintenance : 23200 x 44 = Rs. 1020800/- (Block A)
Total: Rs. 4480400/-
Addition to this, Association has collected Rs. 30000 & 40000 respectively as
maintenance money at the time of issuing NO DUES/OBJECTION Certificate for each
request for transfer of ownership for Type III & IV and there are number of such instances
occurred till now. The amount thus collected should also be added to the above amount
to increase capital amount of maintenance fund. Declaration of the total amount with
Interest accrued on these funds is required to be furnished by the RWA Gen Secy.
Committee recommends for AMC of the lifts to be awarded to OEM M/s. Olympus for TWO
years and with quarterly payments on satisfactory service at each quarter end. Terms
and AMC amount is being negotiated by the nominated committee and reply is expected
from the OEM by 03.06.2010.
At this point of time, it is suggested to approach back to IRWO for arranging immediate
payment to the service provider for AMC for the notified period till 31.04.2011 as was
done in the past and from next year arrangements of funds for rest of the AMCs shall be
generated in due course of time. The deficits may be met by any of the following means:
a) Collecting enhanced charges for the maintenance fund and supplemented
nominal monthly collection to meet with minor gap and operational charges. OR
b) By fixing monthly collection to cover MAJOR gap in required expenditures on
account of AMC as well as for operational charges and any saving in collected
funds shall be added in Maintenance fund corpus regularly.
Expenditures towards Maintenance & Operation of Lifts, DG Set, common area lighting
and maintenance of Roads, Service lanes, Parking area, Stairs, Electrical controls etc for
all the 92 Flats in Block A, B & C is estimated as;
AMC of Lifts : Rs. 280000
AMC DG Set : Rs. 25000
Opn DG Set : Rs. 60000
Elect Bill : Rs. 240000
Security : Rs. 240000
Gardener : Rs. 50000
Sweeper : Rs. 72000
Electrician : Rs. 50000
Total Estimate Expenses Rs. 777000
Funds Available : Rs. 313628 from payments of Interest on
maintenance fund @7% per year.
Proposed collection Rs. 441600 @ Rs. 400 per month per Flat (Min)
without increase in one time maintenance money
The committee will also work on the measures to reduce the running expenses
in due course of time on Electricity and Security Bills with the consents of
resident owners of block A, B & C.
Discussed and finalized by all the committee members for communications to
the Gen Scty to call AGM to take final decision to operate the RWA in safe,
Secured and comfortable manner.