Because the concrete cancer rectification work was not completed as planned, insurance costs remain high. The 2025 renewal is $220,820.30 as outlined in the 2025 AGM minutes.

The below was emailed to all owners in February 2024.

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Last week we were successful in getting insurance coverage for The Sands.
 
Committee members have worked with both BRS and Honan Insurance Group to make sure that the Insurer had all the necessary and correct information for the insurance of the building at The Sands. This is great news and getting this insurance is a huge relief and protects your investment in The Sands.
 
Please note:

• The insurer has agreed to provide a 6-month term to enable the Committee to continue the ongoing maintenance works; Stages 3, 4 which have been approved by owners and have been included in the budget; and Stage 5 (the pool podium) which will be funded in 2025.
• The Insurer regards all works Stages 1 through 5 as known defects and requires that the body corporate to manage any emergency issues or issues stemming from repaired areas or to act on any identified safety concerns. They require an updated report on progress of the works including a safety assessment so they can continue to ascertain the risk profile.
• NO INCREASE to Administration and Sinking fund levies
• NO SPECIAL LEVY to cover the concrete cancer and maintenance works.

Unfortunately, the cost of the insurance policy has increased significantly.
This means that Capitol strata managers will need to increase the insurance levy to cover the cost of the premium for the year, as below.
 
Insurance Cost Increase - How did we get here?
 
The increase in insurance cost is because of the active refusal to maintain the building during the 10 years that Colin Evans was chair. During this time owners’ levies were used to fight the legal case. These funds could have been used to maintain the building. Financial information on the legal spend has been provided on this site. The information is also available in QCAT records and in the strata management files.
 
The purposeful neglect in maintenance has resulted in a significant increase in our insurance policy to $108,356.91 for the next 6-month term.  
 
The lack of maintenance and running down the building also enabled Colin Evans, Wayne Nolan and Charmaine Sando to meet with Mahoney’s lawyers in 2022 in an attempt to take control of the asset and place all units at The Sands in a trust - see Plan to terminate. Had they been successful, owners who paid around $100k for Orchid Wing units in the developer fire sale in 2012 would have received an equal amount to owners who bought at market rates and paid for ocean view or penthouse apartments. These people should be disclosing their intentions to profit at significant advantage when they make decisions that impact all owners.
 
On the positive side, and despite coming very close to losing our insurance, in less than a year hard work has made sure that The Sands remains insured. Experienced, ongoing management of the building by the body corporate is essential and will ensure the insurance costs return to previous levels. Unfortunately, efforts are still being made to stop the repair work - see 
 
Had The Sands Insurance policy been declined

• your tenants would not be allowed to live here
• your tenancy investment income would cease
• Council would require owners to continue to pay council fees and to fund the demolition of the building

Owners have been bombarded with emails about selling The Sands. There have been a number of polls taken by the strata managers to gauge interest however none of these have resulted in any significant numbers aligned to a sale or in support of Charmaine Sando's plans.

Charmaine Sando has also emailed owners with misleading information about the legislation. Please note

• BODY CORPORATE & COMMUNITY MANAGEMENT LEGISLATION AMENDMENT BILL 2023.
• The termination of Body Corporate Schemes has changed to 75% ​**BUT WITH CONDITIONS**
• The Sands scheme is economically viable and cannot be terminated.
• The Sands has reasonable levies in comparison to other local apartment blocks and therefore DOES NOT meet those conditions to allow 75%
• The Sands still requires 100% of owners to agree to any development site sale 
  
  The law changes are not relevant to The Sands owners despite misinformation by the rumour mongers.  It s vitally important we continue to maintain the building.
   
  Please be extremely attentive of who you vote for in the upcoming AGM. Please consider which individuals have the skills required, the experience and the best interest in maintaining your investment in The Sands