KWM  NEWS    November 2023                   

Lithium-ion (vessel) Batteries

The debate around the safety of lithium-ion batteries continues. Insurance companies are now making heavy demands to mitigate the now well-recognised risks associated with these batteries. Needless to say, fire from any source on a marina can be catastrophic and is an ever-present risk.

Some marinas have resorted to inspecting vessels and if they don’t comply with recognized safety requirements (refer September KWM News) have banned such vessels from their marinas.

At this juncture, Management is refraining from such measures, instead, relying on the integrity and honesty of owner/skippers to take all possible measures (refer September KWM News) to protect themselves and our Marina from this risk.  Meanwhile, Management is keeping a watching brief on lithium-ion battery development and marina industry trends on how to manage this area of concern.  

Head Lease and Sublessee Compliance

As foreshadowed in September, Board and Management have been undertaking a review of our Head Lease and Subleases requirements as there have been amendments to Government leasehold property legislation and regulation. A particular area of concern is compliance with public liability insurance demands under the legislation.

A legal firm has been engaged that specializes in property law and provides advice to other marinas in Queensland. Early indications suggest some difficult and complex issues need to be addressed. As this work reaches completion, probably in the March quarter next year, any impacts on members and tenants will be communicated.

2023 AGM

Another reminder for the 2023 AGM set down for 3.00pm Friday 1st December 2023. If you cannot attend, we encourage members to give their proxies to another (attending) member, director or the Chair. Your vote is important. Access via Zoom will be provided for non-attending members however voting cannot be accommodated through this medium. Please refer to the statutory AGM documents emailed at the end of October for more details.

Again, this year the meeting venue is the Buddina Tennis Club.

Christmas Party

The Marina Christmas party this year will be held on Friday the 15th December 2023 starting at 4.00pm through to 8.00pm. Food and drinks will be supplied, and once again we will be having live music. This is a great opportunity to celebrate the year with other Berth owners, tenants and staff. We hope to see you there.

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KWM  NEWS    September 2023             

Fire Drill

As forecast last month, Management was planning a fire drill for September. The date has been moved out to 11:00am 12thOctober 2023. The following tasks have been completed:

  • A fire alarm has been installed.
  • Fire alarm (continuous) will be sounded.
  • Fire wardens have been appointed: James Freemen, Colin Plant, Peter Mackman and James Murphy (any one of these wardens will assume the Chief Warden role).
  • Wardens will have identification vests.
  • Evacuation assembly points have been addressed and signed.
  • Evacuation maps/routes established depending on fire location.

Fire drills have been sadly missing over the years. This important function will identify the areas for improvement, familiarize everyone with the process, emphasize its importance and provide confidence in the Marina’s ability to manage such events. This drill will be conducted annually.

If unable to participate on this occasion, please contact the Office to get a copy of documentation supporting the drill. 

Lithium-ion Batteries

Further to last month’s comments regarding lithium batteries, the following information is offered on lithium-ion batteries and their propensity to catching fire. Risks in lithium-ion batteries include:

  • Overcharging or use of non-compliant charging equipment
  • Overheating or exposure to heat or extreme temperatures
  • Physical abuse (dropping, crushing, piecing, vibration)
  • Short-circuiting, battery cell malfunction or system faults
  • Defects or contamination introduced during manufacture

The establishment of a Marina charging station in an appropriate location away from buildings is proving problematic. As Government regulation is well behind developments in this area and recommended industry solutions on charging locations and risk mitigation are sadly lacking.

Management has placed lithium-ion specific fire extinguishers in the laundry as an interim measure. In the meantime, members and tenants need to research this area and develop their own mitigation strategies (on-board boat batteries and scooter devices).

Insurance

The difficulty in managing the Marina’s insurances from a compliance, cover effectiveness and cost perspective, is constantly under review.

There is a vast range of impacts to consider and, given the increasing litigious nature of society today, public liability cover has become a prominent part of the Marina’s insurance portfolio. Unsurprisingly, the marina environment with its inherent extra risks demands deeper and broader public liability consideration and risk mitigation.

Assisted by MOL solicitors and our Insurance Broker, Board and Management have been undertaking a review of this area, taking particular note of compliance with legislation and regulation, Head and Sublease documentation and a granular examination of current insurance policy ‘small print’.

Early indications suggest some changes may be required. Plenty of notice will be provided should any of these changes directly impact members and tenants.

Satellite Mooring

For some time, rumours have circulated that the Marina was investigating the option of a satellite mooring in the middle of the adjacent Jessica Haven ‘pond’. This would require an extension of the Head Lease to encompass more seabed. This marina extension was certainly being considered and exploratory work undertaken. It was being promoted on the basis that a ‘waiting’ mooring facility would be advantageous operationally and financially.

The first option was for two normal (2) swing moorings to be installed. After much discussion, this option was denied by the Harbour Master due to an unacceptable swing diameter which, in their view, would impede marine traffic.

The second and more expensive option of a Star or rectangular dock requiring heavy capital outlay that would cater for probably at least four boats, was dismissed as unfeasible on financial grounds.

Consequently, for the immediate future, this project has been taken off the Board’s agenda.

AGM Notice

This is a further reminder of the 2023 AGM which is set down for 3:00pm Friday 1st December 2023.

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KWM NEWS August 2023

Fire Drill
The Board and Management have been deliberating on possible emergency events across a multitude of
marina structures and functions. Obviously, a fire event is the most common and potent risk that a
marina must be capable of managing.


A critical mitigation task is to schedule regular fire drills. In addition to installing fire alarms and setting
out evacuation processes, Management has programmed a fire drill for 11:00am 20th September 2023.
As this drill comes closer, specific instructions will be provided.


Lithium Batteries
Lithium batteries are becoming more popular across a range of activities. There is now unassailable
evidence that these batteries can explode, especially when the charging equipment is incompatible.
Local fire authorities advise at least 3 recent Sunshine Coast house fires have started due to faulty
electrical scooter charging.


Whilst legislation/regulations are yet to be established, insurers are leading this agenda by clearly
stating that fire events caused by lithium batteries will not be covered. There is a general expectation
from industry that lithium batteries will soon be fully regulated to require collision proof compartments,
specific alternator capacity, heat diffusion capacity, charger compatibility and licensed installation to
name just a few requirements.


From the Marina’s and its Insurer’s perspective, taking early precautions seems reasonable. This means
that Management will be identifying vessels that have lithium batteries and do not have compatible
charging equipment and more importantly a certificate issued by an authorized installer. Once identified
remedial options will be considered.


Further, Management will be establishing scooter and bikes (with lithium batteries) an isolated and
dedicated charging station.


Carpark Repairs
The concrete ‘apron’ adjacent to the boatshed is now complete so water will not puddle into the
Adelong Crescent carpark. The run-off now flows to the storm water drains. The curb damage, incurred
by the rubbish and fuel trucks, has had temporary repairs completed.


A dedicated motorbike parking area next to the boatshed has also been designated, marked by
appropriate white lines.


Thank you for your patience over recent weeks while this work was completed. The apron on the canal
side of the boatshed is the next project however this will not impact the users of the carpark.

Test and Tag
The second test and tag day (Monday 21st August) was very successful. Management will be following up
on the few vessels yet to produce ‘tag’ certification.


We continue to receive ever more stringent demands from our Insurers to mitigate risks. Needless to
say, the more we adhere to these demands, the less chance of an unfortunate event, a failed claim and
of course, reduced insurance premiums.


AGM Notice
This is an early reminder of the 2023 AGM which is set down for 3:00pm Friday 1st December 2023.

2022 AGM Minutes – DRAFT

MARINA OWNERS LIMITED

ACN 010 468 498

REGISTERED OFFICE: Kawana Waters Marina, 16 Orana St, Buddina Qld 4575

MINUTES OF THE ANNUAL GENERAL MEETING HELD AT BUDDINA TENNIS CLUB, BUDDINA, FRIDAY  25TH NOVEMBER 2022

Present As per sign-in on member role.

Meeting commenced at 3.10pm

  1. Welcome

The Chair opened the Meeting and welcomed members.  He noted that this was the first general meeting of an entirely new Board of Directors and introduced each to the Meeting.

The Chair also noted the return to the old Meeting format while retaining some new innovations. He expressed his desire to bring more formality to the Meeting process after the difficulties experienced at the 2021 Meeting.

The Chair declared he held 5 proxies.

He commented that the agenda was standard but highlighted special attention will be required when considering the financial reports given the Love & Partners Audit incorporating new accounting standards and the two (2) Notices of Motion.

2. Apologies

Patricia Brown D26

Gary Marrable F10

3. Confirmation of 2021 AGM Minutes

The Chair explained the difficulty the minute secretary had in compiling the 2021 minutes given the chaotic nature of last year’s Meeting.

Don Amoore questioned why, in the absence of the then Chairman, were the members not asked who they wanted to chair the 2021 meeting.

The Chair replied that due to the chaotic nature of the meeting it’s best to consign the meeting to history and move on.

Moved             Rex Roubin

Seconded         John Waller

That the minutes be approved and that the Chair sign the minutes as a true and correct record of the AGM held Friday 25th November 2021.

                                                                                                                        CARRIED

4. Chair’s Report

The Chair referred the Meeting to his circulated Report. He made two overarching points.

Firstly, the Board is following proper governance process by being cognizant of its fiduciary responsibility, ensuring an accountable manager in place, adopting regular reporting and ensuring integrity and probity in all matters and respecting all stakeholders.

Secondly, the Board is adopting accepted business practices such as rigid budget and cashflow management, proper capital management, accrual accounting with full and timely reconciliations and enterprise-wide risk management.

He further noted the Company had experienced a major re-set after a troubled beginning to the financial year but had come out the other end in good shape. He expects future years to be more stable and prosperous.

Moved             Rex Roubin     

Seconded         Stuart turner

That the Chairman’s report be received.

                                                                                                                        CARRIED

5. Financial Statements……including Auditors Report 

Company Secretary Gary Graham introduced the financial statements and provided background to the 2021/22 year’s trading results.

He also provided background to the Love & Partners Audit particularly the new accounting standards regarding the capitalisation of the operating Head Lease over the seabed. The asset to the written-off over the term of the Head Lease agreement on a straight -line basis.

He further noted that the adoption of accrual accounting (recognising income in the period in which it was earned) and a once off surplus adjustment of $39,674 primarily resulting from Rental Pool income being brought forward to the 2021/22 year produced a surplus of $79,119.

Don Amore questioned an item on Page 22 of the financial report and the absence of liveaboard income.  The Secretary advised this was a supporting accounting schedule detailing bundled line items and that the live-a-board fees are a dedicated line item in the Profit & Loss statement.

            Moved                         Gary Graham

            Seconded                     Stuart Turner

            That the Financial Statements, Directors Statement, Directors Report AND  Audit Report be received.

                                                                                                                        CARRIED

6. Audit 2022-23

The Chair advised that the Board had considered a further audit for the 2022-23 financial year and after consulting with the Auditors, has deemed it not necessary.

Moved             Gary Graham

Seconded         Iain Nye

That no external audit be conducted for the financial year 2022-23.

                                                                                                            CARRIED

Kerry Kelly questioned the new procedures in place for the rental pool accounting and, given the Auditor’s qualification in this area, perhaps the rental pool should be audited again next year.

The Chair noted that this was the first year in which the rental pool was included in any audit.

He further noted that historically an audit was conducted every second year and expected that to continue.

The Secretary added that it was software limitations that was underpinning the qualification and the Board will be working closely with the Auditors to correct the problems over the next year.

Ross Lemass stated that things should be given a chance to settle before another audit is conducted.

7. Director Election

In accordance with Clause 22.3 of the Constitution, Director Stuart Turner retired from the Board and renominated. There being only one nomination received that being Stuart Turner the Chair declared:

That Stuart Turner duly elected as a director of Marina Owners Limited for a 3-year term.

8. Notices of Motion

8.1 Special Notice of Motion

The Chair introduced the Notice of Motion regarding amendments to director terms in the Constitution. He noted that this was a Special Motion requiring 75% of those voting to be carried.

He referred members to the explanatory note stating that the motion clarifies the transition to staggered 3-year director terms and better enshrined 3-year director terms.

            Moved             John Hensby

            Seconded         Rex Roubin

            That the following Clauses be amended to the Constitution:

  • Directors shall be elected for terms described in Clause 22.9

Replaced with:           

Subject to the transition provisions described in Clause 22.9 Directors      shall be elected for 3-year terms.

22.3     Each year at the General Meeting one third of Directors whose 3-year service expires will retire from the Board and may re-nominate.

Replaced with:

Each year at the Annual General Meeting a Director whose term has expired shall retire from the Board and may re-nominate.

 22.9     By way of transition the first election after the institution of this Constitution will cause five (5) Directors to be elected and the highest  polling two (2) Directors will hold office for 3 years, the 3rd and 4th polling for two (2) years and the lowest polling for one (1) year only.  Subsequent elections will proceed as in this manner.

Replaced with:

By way of transition the first election after the institution of this Constitution shall cause five (5) Directors to be elected and the highest polling two (2) Directors shall hold office for 3 years, the 3rd and 4th polling for two (2) years and the lowest polling for one (1) year only.

                                                                                                            CARRIED

8.2 Ordinary Notice of Motion

The Chair advised the Meeting that this was an ordinary motion requiring  only 50% of those voting for it to be carried.

Given that the Board had not provided the Meeting with a rationale to the previous and current Boards’ considerations to levy a member live-a-board fee, the Secretary provided background to the Board’s decision.

The Chair invited Ken Gould to move and speak to his motion however he deferred to his seconder Don Amoore to introduce his motion.

Alternate speakers for and against the motion addressed the Meeting. The Chair invited the seconder Don Amoore to close the debate.

The Chair put the motion

                        Moved             Ken Gould

                        Seconded         Don Amoore

That the March 2021 Board resolution on live-a-board fees and subsequent Board ratifications be reconsidered by the Board so that any or all shareholders of MOL not be required to pay for the use of MOL common property.    

LOST (27 to 12)

9. General Business                   

Helen Innes raised her concern about the excessive use of water, specifically the excessive pressure of the current shower heads. Helen suggested that water saving measures be investigated.

Ross Lemas asked that the Board consider the implementation of water saving devices that are non-removable.

Colin Plant stated that the washing of boats is also a problem, in particular the fuel dock, and suggested a ‘locked’ hose guns regime be considered.

Nick Cox thanked the Board for the work that they have done and offered his congratulations for all their hard work.

Ross Lemass also offered his congratulation to the Board, Management and Staff.

10. Close

The Chair reminded everyone that the Christmas party will be on the 9th of December and hoped to see everyone there.

The Chair thanked the other Board members, Marina manager and staff who had contributed to the year and especially members for their support during a difficult time.

The Meeting declared closed at 4.25pm.