The DSRA had 2 big meetings last week and I have reports from each to share with you.
Firstly, our Buildings & Maintenance sub-committee had their regular inspection tour and meeting with Consort and Barratt. In brief, progress continues in many areas including news that the replacement canopy for Blues Street will be fitted soon. We also again received a commitment from Barratt that the matters of flooding beneath phase 3 and cooking smells in phase 1 will not be put to bed until permanent solutions have been found. With regard the cooking smells issue, the local council are to be approached by Consort to confirm that all building regs with regard air extraction are being met. Ben Collins’ full meeting report can be downloaded and viewed, as always, from the DSRA-specific section of our forum HERE. The only other thing to mention is the subject of the lifts problem in Thomas Tower. For at least the past year residents of Thomas/Burke have had continual lift outages. OTIS, the suppliers/maintainers of these lifts are now claiming that some very expensive belts need replacing at a cost (because warranties have now expired) of over £9000.00! Consort, armed with resident testimony, are arguing that this issue has been ongoing since before the warranties expired and should therefore be rectified free of charge (the belts in discussion should last for 10 years or more and so should not need replacement after just 2 years). Hopefully OTIS will come around and get this sorted out sooner rather than later.
The other meeting was the latest in a long line of meetings between Consort and our Finance group. This report, from Jane Collins, I will share with you right here (a copy will also be stored in the Document Depository over at the forum):
We have been in discussion with Consort over recent weeks regarding the 2014/15 Service Charge estimates.
Our concerns regarding the proposed 2014/15 Service Charge estimates have been:
• Previous estimates for major items had variations between buildings and phases that could not be explained
• A proposal to contract out the cleaning appeared to be very expensive
• All phases had variations in increases that suggested that the original estimates were very inaccurate
• Insurance brokerage is provided in-house
• All phases had proposed increases above inflation, with double-digit increases in phases two and three
We now feel that we have had the opportunity to challenge Consort on these points, and we are more confident that the proposed estimates are accurate. The proposal to contract out the cleaning has been withdrawn and a number of other changes have been made resulting in small savings. We have been given evidence allowing us to compare our Service Charges with other similar properties. We now have proposed estimates for Dalston Square across the phases of the development, which suggest that we are all now being charged the correct, roughly similar, amounts in comparison to each other, based on the charge per square foot.
Unfortunately the large increases in Service Charges in phase two and three seem inevitable as phase two and three charges were significantly underestimated in the first place.
The evidence of past inefficient management of our finances by Consort, particularly the failure to set a realistically increased budget last year, will make this a very difficult year. We have seen evidence that financial management has improved recently but we believe, and asked, that there should be no increase to our service charge this year.
Ground rent demands have been sent and we have been told the new Service Charge demands will be sent in the next few weeks.
When you receive your Service Charge, we urge you to make your concerns known to Consort. Individual personal responses have the greatest impact, and please use the Forum to share these concerns.
One thing I wish to reiterate is that, although phases 2 and 3 will see potentially large increases in their service charge bills when they are sent out in the next couple of weeks (phase 3 will see the largest increases), these charges are correct for a development like ours, with our amenities, in London (around £2.50 per square foot of apartment space). Yes, there have been problems with the way Consort was apportioning costs (mostly now sorted), but the biggest problem has been the way Barratt, and by extension Consort as their agents, have been underestimating and under-billing service charges for the first couple of years of each phases life. Accusations have been made (although denied) that this was a ploy to make selling the brand new flats easier. How can it be that phase 3 was so drastically underestimated when the cost of running the 4/5 year old phase 1 was already known, unless it was done deliberately?