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september 09
GNTOWER
GNT Residents’ meeting Radisson Hotel Tuesday 15th September: 6.30pm
UPDATE
Agenda: 1. Party Conference security: implications for GNT presentation by PC Ivan Hewitt, Outer Zone Officer, Greater Manchester Police 2. Security measures within the block - update: car park and pedestrian fob reprogramming; lift access; additional CCTV; Concierge team training (the Head Concierge will be in attendance). 3. Commercial units, ground floor. 4. Individual water metering. This update has been produced by a group of leaseholders and residents who have a positive commitment to the Great Northern Tower; three of them agreed to act as initial Directors of GNTMC Ltd, the GNT management company, on takeover from the developers in spring 2009.
5. Management resources, including managing agents and client representative. 6. GNT Management Company Ltd. 7. Website 8. Reception area redecoration 9. Any other business 10.Date of next meeting
water metering: agreement When the block was built, the developers agreed with United Utilities that a bulk water meter be fitted in GNT, and that one large bill be received, which is then divided up using the “square footage” of every apartment to apportion the cost. This is what we all agreed to in our leases, despite there being individual meters on every landing. This has long been an irritation to some leaseholders: some feel that they use little water, either because they live alone, or use their apartment only at weekends, or are just careful. Other leaseholders who rent their apartments don’t like the arrangement because it is retrospective, and clumsy to recharge. We have been pressing United Utilities on this since the beginning of this year, and
are delighted to be able to report that we now have their agreement to fit individual water meters to every apartment, allowing individual metering and charging according to actual consumption, as requested by so many of you. UU won’t adopt the existing meters as they don’t meet their standards and requirements, so will fit new meters that will perform and measure to their satisfaction. We have negotiated the price down to £135 inc VAT per apartment. Although this is a direct cost to the residents, the Board has taken the decision to go ahead: savings for many occupiers will recoup this cost very quickly. We are waiting for the date when installation will start: UU is organising this with its contractors: surveyors are currently (9/9) in the block.
Ground floor units We are all keen to have good neighbours in the ground floor commercial units; these can add so much to the attractiveness and vitality of the block and wider area. However, in recent weeks, the works that have been carried out in the ground floor units have clearly been a disturbance to some residents. The tenant wishes to sub-let and fit out the currently vacant units for various uses and sub-tenants. We are extremely concerned about the activity and plans, for which we have not given any consent, despite extremely aggressive behaviour and threatening language by those concerned. Advice is being taken from our lawyers. Unfortunately, this is an ongoing legal issue on which we cannot comment in any further detail at this stage. However, we will continue to strive to avoid nuisance, agree appropriate future management measures and ensure the structural integrity of the block.
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arrears News in brief: - the Concierge team recently undertook confrontation training, as recommended by Greater Manchester Police - window cleaning starts next on 19th September - carpet cleaning and paint freshening shortly to take place on ground floor - with thanks to Shaun - new GNT website address: www.gntower.com (comments would be appreciated) If you’d like to get involved, please contact Alex Normand at Stevens Scanlan in the first instance: 0161 233 3066, or alex.normand@ scanlans.com
We need funds to pay GNT’s bills: whether insurance, water, electricity, contractors (eg lifts) or to pay our Concierge and caretaking teams. There are still those who pay erratically, pay late or don’t pay at all - often with some ridiculous “excuses”. To have to borrow to avoid a shortfall in cashflow should be unnecessary: it would just put costs up for everyone, when we’re striving to maximise value for money. We’ve instructed our agents to continue to take strong and swift legal action on non-payment where necessary - which involves notification to lenders. Perhaps some leaseholders don’t realise that default on service charges can lead to forfeiture of their lease and loss of their home: but it can, and, unfortunately, looks like in some cases it will. At the moment, the way the management company was set up by the developers of GNT, non-payers can apply to be directors of the management company. We have asked our lawyers to draft an alternative structure that debars non-payers from either standing as or, indeed, voting for directors of your management company. A discussion paper will be circulated as soon as possible to seek your views: and it will also be placed on the notice board and website.
Resources: how to manage GNT effectively and efficiently into the future...? Despite the three blocks at GNT being occupied from autumn 2006, the developers continued to run the management company until 30 March 2009. While the company, GNT Management Company Limited, was (and remains) owned by the 250+ leaseholders, until then, Taylor Wimpey provided the directors. The company sets a budget for each year, and employs the managing agents, the concierge and caretaking team and relevant service providers and contractors. To move things forward and avoid “management from a distance” continuing, three resident leaseholders agreed to step forward this spring, after some months of discussion. Working with a wider group of residents and leaseholders, many of whom have taken responsibility for particular areas, they have, in the five months since then, made efforts to understand the issues and problems facing the Tower, addressing matters such as water charging, arrears and cash-flow, and a range of security issues. They have appointed legal advisors to assist, for example, with the requirements of the commercial units on the ground floor; a possible litigation case, and residential leaseholders who would like to purchase common areas within the block, where, if this is agreed, the company would be required to prepare an appropriate lease. In the last month, a careful review has been made of demands, progress and aspirations; it is clear that the resourcing available is inadequate. Not least, the legal and technical issues involved in a large, mixed-use, complex city-centre block like GNT require tailored and highly professional solutions, particularly, we suspect, in the first year after takeover from the developers. Having spoken with resident directors in other similar blocks in the city centre, we are not alone in this conclusion, nor in having to take action to rearrange management resources. We have, therefore, commenced a formal review of the property management contract with Stevens Scanlan. The scope of the contract we inherited is in our view insufficient, and may well require a full redefinition and re-tendering. As you may imagine, the group of residents and leaseholders who offered to help progress the interests of the Tower have been struggling with the time and other demands placed upon them, as they try to ensure that the Tower is not put into a vulnerable position. The parties involved in the discussions on the commercial sub-leases have been making alterations without consent, as have some of our residential neighbours, not least bringing fire safety and structural integrity into question. This cannot continue: so we have this week instructed David Guest as the GNTMC Ltd “client representative”. David was previously director of Bruntwood, the largest office/mixed-use property landlord in the North-West, and brings the necessary expertise to GNT. He has agreed to work with us on a part-time basis for the next six months, which is the limit of his availablity. While he will, of course, indeed come at a cost, some of those costs will be recoverable from 3rd parties. He will assist us with resolution of current pressing issues, as well as our review and reorganisation of resourcing, to ensure that we put the GNT “house” in order for the medium to long-term. We believe this will be a valuable investment in the best interest of all leaseholders, will protect our individual and collective assets, and will help us avoid possibly far greater liabilities in future.