Can the Board of Trustees of a Sectional Title Scheme commit to supporting the Umdloti Village NPC?
A written trustee resolution is the only authorisation required under Prescribed Management Rule 21 of the STSMA. THE SECTIONAL TITLES SCHEMES MANAGEMENT ACT PRESCRIBED MANAGEMENT RULES. PART 5 – FINANCIAL YEAR, FUNCTIONS AND POWERS
PMR 21(3): The trustees may, on the authority of a written trustee resolution …. enter into written and signed contracts in respect of its powers and duties under the Act and the rules; (and) join organisations and subscribe to services to further its purposes under the Act and these rules;
As per Professor Paddock: “As long as the trustees are convinced that the body corporate's participation in this security initiative will have the effect of increasing security within the boundaries of the scheme itself, the decision to join can be authorised by a trustee resolution under PMR 21(f). However, the amount of the body corporate's contribution will also have to be covered by a budget item approved by owners, as required under PMR 9(c), before the trustees are entitled to authorise payment of the subscription.”
How does the NPC handle procurement and Service Level Agreements?
The Umdloti Village NPC board follows strict procurement rules for all capital expenditure and contracts with service providers.
Procurement procedures are clearly defined in the Memorandum of Incorporation that has been lodged with CIPC.
In short, the process is transparent and fair, and all major expenditure requires three quotes and will be measured against a strict Service Level Agreement.
Who will appoint the service providers?
The Umdloti Village NPC Board of Directors will make the decision in line with the procurement rules set out in the MOI.
The Umdloti Village model is designed purposefully around ensuring independence where the Village NPC has a formal service level agreement with all providers. A breach of this agreement will result in corrective action.
The NPC will send tightly defined Requests for Proposals (RFP) to locally active:
Armed response companies
Technology companies
and "Clean & Green” service providers
These will then be reviewed by the NPC in line with the objectives and budget available for the Smart Village initiative.
As per the MOI, the NPC board will continually evaluate the services and make the necessary changes/improvements as and when required.
Who will run the Umdloti Village NPC on a day-to-day basis?
The initiative is currently run by a team of volunteers (the Manco) and a Precinct Manager, who is a part-time employee of the NPC.
The boards non-executive directors will have ultimate fiduciary responsibility for the governance of the NPC.