DIO VELENTO BODY CORPORATE

MINUTES OF THE ANNUAL GENERAL MEETING HELD ON TUESDAY, 6 MARCH 2007 AT 18:30 IN THE CLUBHOUSE, DIO VELENTO

1. ATTENDANCE REGISTER AND APOLOGIES

PRESENT:

Owners of units:

9, 35, 65, 73, 53, 27, 20, 30, 34, 51, 17, 16, 41, 03, 10

IN ATTENDANCE:

Glenn Andrews & Claudie Vercuiel for managing agent.

APOLOGIES:

Unit 48 - Limbada

Unit 37 – M. Nicolaou

2. REGISTRATION OF PROXIES

Unit 68 – App. D. Erasmus

Units 25, 50, 6, 8, 22, 39, 54, 58, 76 – App. C. McGowan

Units 49, 78, 61 – App. Chairman

3. NOTICE OF MEETING AND QUORUM

Fourteen days notice of the meeting having been given, the meeting was declared duly constituted and open, as a quorum was present.

4. MINUTES OF PREVIOUS AGM

Minutes of the Annual General Meeting held on 24 January 2006 were accepted as a true reflection (Proposed Unit 9 & Seconded Unit 34).

5. CHAIRPERSON’S REPORT

The Chairman Mr. A. Cacouris apologised and wasn’t able to attend the meeting. Connie McGowan presented a report to the meeting.

During 2006 the pool was renovated and solar heating installed. The painting project was completed. Some of the geyser covers were replaced and the remainder that needs replacement will be done during this year. The water pressure at the top units has been a lot better. This morning there was no water due to a leak that was discovered by Jhb Water and the water needed to be turned off in order to repair the leak. The pigeons are causing damage to the building, residents are requested not to feed the pigeons or allow them to nest, and if anybody has a solution on how to get rid of these problematic pigeons, advice would be appreciated. During the 2006 year it was found that Conduct Rules are being discarded. Residents are reminded that fines will be imposed on residents not adhering to the Conduct Rules. Dio Velento E-Block are still leaving refuse bags all over the show, causing an unhygienic environment to the rest of the residents. Refuse bags are only to be put at collection points: MON – FRI 6am – 8am ONLY (Excluding public holidays and week-ends), fines will be imposed on any residents caught disregarding this conduct rules. Residents are reminded that noise violations by your neighbour or other residents are a disturbance of peace and therefore you may call the SAP for assistance. Any complaints need to be in writing before it will be considered or acted upon. Owners are requested to oil the hinges of their windows, this is not the responsibility of the Body Corporate, owners need to see to it that the hinges are maintained to be in good working order.

Connie thanked Chairman Amiras Cacouris for the 200% effort and assistance put in during the past years. The Trustees, CSTM and wonderful staff members were also thanked for their help and assistance.

Owners at the meeting thanked Connie for her hard work and dedication.

6. FINANCIAL REPORT

The financial report dated 30 September 2006 was unanimously accepted by the meeting. Trustees given permission to sign the financials off.

7. BUDGET

7.1 Approval with or without amendment of proposed budget

Sewer Account: Jhb Water

CSTM received a backdated sewer account for Dio Velento for the amount of R203 788.26. Jhb water explained that Dio Velento Body Corporate is a “Domestic Multiple Dwelling” and not “Flats. Glenn Andrews from CSTM explained to the meeting that in 2001, after an advertisement in the local newspaper, CSTM applied (with the permission of the trustees), for a credit at Jhb Water as Dio Velento at the time was considered to be “flats” (units on top of each other), and was being billed for “Domestic Multiple Dwellings”. The application was granted and the Body Corporate received a credit of: R 23439.41. It would appear that Jhb water have now changed their wording and says that Dio Velento is not considered to be “Flats” anymore, and backdated the sewer charge to 3 years, and produced an account of R203 788.26. Jhb Water also told CSTM that they went to the Deeds Office and found that the description on the Sectional Title Plans of Dio Velento says that it is a Townhouse complex, therefore cannot be considered as flats. CSTM is seeking legal advice on behalf of the Body Corporate, and trying to find out when their description of “Flats” changed to “Multiple Dwellings”. CSTM explained to the meeting that the council would not have granted the credit, if they were not in full agreement that Dio Velento was considered to be flats.

CSTM has lodged a query and flagged the account with the council until answers and clarification can be obtained. CSTM suggested to the meeting that the current account (new billing rate of Multiple Dwellings R 7943.45 instead of Flats R4032.60) is kept up to date, to avoid disconnection of services to the building. And that this shortfall of R4355 (vat inclusive) be included in the 2006/2007 budget.

The meeting agreed and accepted the proposed budget by CSTM. The levies to be increased from April 2007. CSTM to include a copy of this new budget schedule when distributing the minutes of the AGM.

The meeting unanimously agreed that under no circumstances should the backdated account be paid, as this would be settlement of the account, and that once the money is paid, it would mean that the Body Corporate is in agreement with the account received, so it would difficult / impossible to get the money back from the council.

CSTM instructed not to pay the backdated arrear account, to investigate this matter properly and then call a Special General Meeting to explain / discuss it with owners.

7.2 Replacement values

A professional valuation was done on the replacement value last year, which brought it to R3820 per sqm.

Owners are requested to contact the Body Corporate’s insurance broker to arrange for any improvements to their units to be included in the insurance policy. Contact Person: Wayne Cronje (Inson Insurance Brokers) Tel: 011 646 0970

8. AUDITORS

Furter Carstens was appointed as auditors for the ensuing financial year. Furter Carstens to include a detailed general ledger with next audit (date & description).

9. CONSIDERATION OF ANY DIRECTIONS OF THE POWERS OF THE TRUSTEES IN TERMS OF SECTION 39(ii) OF THE ACT

It was unanimously agreed that the trustees may spend up to R30 000.00 on any one item without calling a special general meeting.

10. IMPLEMENTATION OF SECTION 38(i) OF THE ACT

It was unanimously decided to implement Section 38(i) of the Act. i.e. entering into an agreement with owners and occupiers for the provision of amenities and services to their section. This allows the trustees the power to take any action they deem necessary against any owner who fails to pay his/her levy and electricity.

11. DETERMINATION OF THE DOMICILIUM CITANDI ET EXECUTANDI OF THE BODY CORPORATE

It was determined for the ensuing year as:

Constantia Sectional Title Management (Pty) Ltd

127 Constantia Drive P O Box 5860

CONSTANTIA KLOOF WELTEVREDEN PARK

1709. 1715

CSTM were unanimously re-appointed for the ensuing financial year.

12. DETERMINATION OF NUMBER OF TRUSTEES

It was proposed that 5 trustees be elected.

13. ELECTION OF TRUSTEES

The following trustees were elected:

1. Graeme Peacock - unit 24

2. Ramon Captieux - unit 27

3. Paul van den Bergen - unit __

4. Yusuf Kaka - unit __

5. S. Thomas - unit __

Election of the chairman will take place at the first trustee meeting.

GENERAL

14. AMMENDMENT OF CONDUCT RULES:

INCREASE DEPOSIT FOR CLUBHOUSE

The meeting agreed that the deposit for the clubhouse be increased to R500.00. If the clubhouse is in order and left clean, the full deposit will be refunded. If the clubhouse not left clean, R50 to be held to have the area cleaned.

The meeting suggested that an inventory list be set-up for the clubhouse.

TILING OF UNITS 2^ND & 3^RD FLOORS

It was brought to the attention of the meeting that some owners have tiled their units, disregarding the conduct rules. A heated discussion followed during which many people left. A decision was unable to be taken due to there not being a quorum. This will be addressed again at a future meeting. (At the 2002 AGM permission was given for wooden (formica floors) to be allowed providing adequate insulation be properly laid. All applications to any changes for flooring need to be approved by the trustees.)

(Should neighbouring residents find these floors are causing a disturbance, address this in writing to the trustees. Loose carpets will then have to be laid.)

15. BALCONY TILES

Problems are being experienced with some balcony tiles where water seeping through to garages. It is brought to the attention of the meeting that funds will have to be spent to have these areas waterproofed in the future.

16. SECURITY

A suggestion was made to install an intercom system inside the guardhouse. This will mean that 24hr security will have to implemented, and that the extra 12 hour guard will have to be added to the budget in order for the levy to cover this expense. The meeting agreed that the trustees may investigate this matter further and obtain quotations to have it done, as well as a cost evaluation on how it will affect the levy amount. Trustees will then proceed based on findings. No further meeting required for approval.

17. LAUNDRY

Complaints have been received by a resident using the washer of oil marks. It was decided that since the manufacturer / agents were no longer in the country and there were no spare parts available, the machine would not be repaired. Since there have been no complaints from other residents, no further action will be taken. When it is no longer viable to use the washer the laundry will be shut down since most residents have their own machines.

18. CLOSURE

There being no further business to discuss, the meeting closed.

CHAIRPERSON

DATE