February 2020 Dear Owners and Residents,

Welcome to your February 2020 GQRC Newsletter covering all the latest News, together with a reprise of the recent, well-attended Surgery, despite the awful weather! Given the comprehensive nature of our monthly Newsletters, the attendees were asked if there was a desire to continue with Quarterly Surgeries; the overwhelming response was a resounding “Yes”, allowing residents to have direct face-to-face access to the Board of Directors. One of the main topics for discussion was the „2018 Canalside Redecoration Project‟ (covering Anson, Brecon and Centurion); some owners may already have been aware of the mismanagement of this major project, but the Board felt it appropriate to explain the case in some detail, where obvious mistakes were made, and to advise owners of our findings. Some owners may wish to take this up with Encore privately, especially where you owned your property in Canalside in 2014 – this “Canalside Redecoration Project‟, was also mismanaged in the same way. Some of the owners at last weeks‟ Surgery have requested the Board to investigate “the legal recourse available to GQRC” – rest assured that process is in hand. We will keep Owners advised of progress.

1. Service Charge bills

Service Charge bills have been issued by Dack Property Management this past week. Owners in Canalside (Anson, Brecon or Centurion) may have a query and, if so, please discuss this directly with Ellie or David, Dack‟s Accountant.

2. The GQRC Spend Limits: We now have a Spend Policy:- - Our Staff: Up to ₤50 with approval and prior permission from Ellie. All purchases are checked monthly against actual receipts. - Our Estate Manager (Ellie): purchase or approval up to ₤1,000 without prior permission and approval from the Board of Directors (checked monthly against actual receipts) -Maintenance Sub-Committee: up to ₤10,000 without prior permission and approval from the Board of Directors (checked monthly

against actual receipts) -The Board: over ₤10,000 (checked monthly against actual receipts by PDPM) Historically, there appears to be no Board resolution or Board Policy on spending or “project approval limits” for the site staff. [One major ₤240k project was specified, approved and managed (start-to-finish) with no Building Surveyor involvement, no project management oversight and no involvement by Encore whatsoever. This will never happen again on our estate.]

3.Canalside Redecoration Project 2018 explained. (Anson-Brecon-Centurion = A-B-C) The “Canalside Redecoration Project” (2018) was not professionally managed and this has resulted in changes to Service Charge invoices for which you deserve an explanation. The project commenced with the Section 20 letters sent to all Owners of A, B and C. The documents relevant to the external painting were sent in January & February 2018; those relating to the „carpet replacement‟ were sent in March & May 2018. The s20 letters clearly stated that reserve funds „were available‟ to cover these projected costs - they were not! These letters also referred to all three blocks as a „collective‟ – i.e., as one project. This was highly inappropriate, as each block should have been dealt with as a separate s20 entity, with separate costs clearly defined. Encore and the Board should have made this clear, also noting that „Funds‟ were NOT available. This major ₤240k Project was overseen (i.e. “project managed”) by our estate painter. It appears there was no „spend limit‟ involved, no Building Surveyor involvement, no tender

oversight, no approved bidders list oversight and no project management oversight! When asked what part ENCORE played in this project, Mr Simon Gwynn (Encore) informed the GQRC Board: “we would have simply been advised by the site team at the time, as they dealt directly with all the contractors, received and approved the invoices and knew the buildings….” OUR CONCLUSION IS: ENCORE PLAYED NO ACTIVE PART IN THE SPECIFICATION OR MONITORING OF THIS MAJOR PROJECT – “THEY SIMPLY PAID THE INVOICES”…

The total cost of the project was £240,371.50, comprising: 1 EXTERNAL REDEC'S + LEAVES REDEC £147,516.43 2 SCAFFOLDING £35,888.54 3 SITE TEAM TIME SHEETS £ 1,056.26 4 DEEP CLEAN WINDOWS £ 3,686.27 5 NEW CARPETS £ 52,224.00

On 31 March 2018 the reserve funds for Anson, Brecon and Centurion were:- 1 ANSON £56,993.00 2 BRECON £66,421.00 3 CENTURION £45,894.00 TOTAL FUNDS AVAILABLE = £169,308.00 [Source: the Service Charge Accounts Year Ending 31 Mar 2018] OUR CONCLUSION: THERE WERE INSUFFICENT FUNDS TO COVER THE PROJECT COSTS; THIS PROJECT SHOULD NOT HAVE BEEN APPROVED. There had been no „management activity‟ or oversight to increase the „Reserve Fund‟ contributions in previous years, in preparation for this “pre-planned” expense….(poor planning) The “Estimated” Reserve Fund contributions for 2018/2019 were declared as: 1 ANSON £11,967.00 [similar to previous years] 2 BRECON £11,972.00 [similar to previous years] 3 CENTURION £7,250.00 [almost similar to previous years] OUR CONCLUSION: THIS CLEARLY DEMONSTRATED THAT THERE WAS „NO FORWARD PLANNING OR BUDGETING‟ (DESPITE THE EXISTENCE OF THE METCALFE BRIGGS REPORT) BY THE BOARD OR BY ENCORE! In late September 2019, ENCORE produced their Service Charge Accounts for the Year Ending 31 March 2019 and had amended the reserve fund contributions as follows:- 1 ANSON £18,825.00 2 BRECON £16,023.00 3 CENTURION £25,677.00 Investigation by our current Managing Agent [PDPM] and the Board suggested that the distribution of costs for the project had been unfairly apportioned! These concerns were immediately raised with Encore. Dack Property Management advised Encore to amend these costs (based on the number of apartments per block and the „lease apportionment‟), which is payable in accordance with the Sixth Schedule of the Lease. Encore immediately agreed to do so and instructed their Accountants to produce an „alternative set‟ of Service Charge Accounts, reflecting this new and fair cost distribution. The proposal was discussed in detail with the GQRC Service Charge Sub-Committee and the recommendation put to the GQRC Board was „Approved‟. These modified invoices were sent to residents recently, together with an explanatory covering letter. BOARD STATEMENT: THE FUTURE WILL BE VERY DIFFERENT -ALL FUTURE SECTION 20‟s will be CLEARLY APPORTONED TO INDIVIDUAL BLOCKS. (NOTING THAT IT IS INAPPROPRIATE TO ADD BLOCKS TOGETHER IN A S20) -ALL quotations for works will be FOR INDIVIDUAL BLOCKS. -ALL future major works will be dealt with by the Managing Agent [MA]. -The MA will take responsibility for the supervision of works. [Greater attention by the MA to Annual contributions to the major works fund.]

OUR CONCLUSION: - THE UNDERFUNDING, THROUGH POOR MANAGEMENT, OVERSIGHT AND LACK OF ANY GOVERNANCE (AND THE SUBSEQUENT CONSEQUENCES) MUST NEVER HAPPEN AGAIN WITH MAJOR WORKS. REST ASSURED - WE WILL PLAN FOR THE FUTURE ! 4. Barclays Banking The final outcome of our on-going exchanges with Barclays Bank over the suitability of our Reserve Fund Account is completed. Barclays has apologized to the Board and paid us a settlement fee On the 30 January 2020, we received an apology letter from Barclays Bank HQ in London. These are the main points that emerged, the GQRC Board having taken the matter to the Barclays Group CEO in London.

Extracts taken from the Barclays [Executive Client Relationship Manager] letter: [Intro] “I am sorry for the uncertainty and confusion which we have caused….having investigated your complaint, I agree with my colleagues, in that :” 1 “more questions should have been asked at the time of the Account opening …“this would have cleared some misunderstandings which occurred as a result”…. 2 “it's also the business's responsibility to know the exact classification of the funds they hold, and to seek the appropriate account”. This was not done. 3 “..it was correct that you were made aware in December 2018 that the Active e-Saver Account was a Basic Saver Account and NOT a Client Account... 4 “..you were advised we could open a Client Premium Account, which was subsequently completed”… 5 “I am sorry for the letter my colleague, Ian Jarvis, sent to one of the former directors which was incorrect”. 6 ….“it was clear this letter created and caused uncertainty”…. 7 “Ian Jarvis should not have sent this letter”. 8 … “we have agreed to cover all your legal costs and honour the original compensation payment, as arranged with my colleagues”. COMPENSATION OF OVER ₤2400 RECEIVED - JOB WELL DONE BY THE BANKING SUB-COMMITTEE. NEXT STEPS: WE HAVE MOVED OUR MONEY TO LLOYDS AND ARRANGED THE CORRECT “CLIENT ACCOUNT“…WHERE YOUR MONEY WILL ALWAYS BE SAFE. NOTE: Our Barclays account is now „closed‟ and our banking requirements have been passed to Lloyds, under the stewardship of Dack Property Management.

5. GQRC Parking Update If we issued a report card on Parking, it would read: “Could do better!” We are evaluating options and reviewing our parking processes and management, which are clearly not working as well as we would have expected under the current structure. We are also in discussion with East Side Plaza, Gunwharf Gate and Portsmouth City Council, in an attempt to alleviate the chaos that prevails around the main South Gate entrance from Gunwharf Road, especially at weekends. Discussions with AquaCars and other taxi companies are also ongoing.

6. Berkeley Homes Following initial discussions with Dack Property Management and GQRC, the original Gunwharf Quays developer, Berkeley Homes Southern Ltd (BH), recently undertook some initial inspections of the estate to assess the condition of the „fire protective elements‟ which were installed at the time of construction. Progress is slow but steady and we are hoping that the works will be completed within 4-6 months – please be patient, as it is in the best interests of the estate and will restore the Riser Shaft fire ratings to their former glory. We have had some complaints about the mess left in lifts and corridors, so please contact Ellie if you experience any mess in your core or corridor. Message is “please be patient while we get this sorted.”

7. Mortgage Advisement Some useful Mortgage Information : Leasehold properties can sometimes be complex with regard to mortgages. Mortgage brokers are finding that more lenders are taking their own approach as to “what constitutes an acceptable risk” to them. It is paramount that Owners seek advice from professionals before mortgage decisions are made. It is critical that you give them detailed information regarding your property and your situation. In the case of Gunwharf Quays, you will need to advise them that there is a “tri-party lease” involving the freeholder, head lease and under-lease.

8. Short Term Lettings The Board has been made aware of recent re-offending STL cases. These owners have received a final warning letter and if the breach of lease does not stop, court action will be taken! There is a mountain of information on this subject via our Newsletters, notice boards, website, Regulation-001, various emails and letters from DPM. There is no ambiguity around the subject of STL or HMO issues. It is NOT allowed. The Board has issued Regulation 001 covering the rules on STL and HMOs. We will not back down and will take court action, just as our neighbours at Gunwharf Gate are doing.

9. Fence (at rear of Perseus Terrace) The fence is approved by the Board. The fence is approved by PCC. The Board has written to Fairhold Athena (Landlord) for their consent. There will be No pedestrian Access – vehicles only - due to Nuisance, Security and Safety, as explained at the Surgery. The temporary fence will be taken down and the „rat run‟ closed off once and for all.

10. Intercomm Replacement Some of the bids are in and being evaluated (the target award in Q1). The Board currently has three (3) companies on the pre-qualified Bidders List for the replacement of our ageing intercom systems on a core-by-core, block-by-block basis. Meetings and site visits with Bidders have taken place and bid clarifications are on-going.

We are asking these bidders to tender for a basic handset / video option system, similar to our current, but updated version. Any other features (such as wi-fi devices) will be optional.

Anyone wishing to pay for additional upgrades will be free to do so, and the vendors will be offering more advanced models, perhaps one with functionality by way of a Smartphone App. We will keep you updated as more detail becomes available.

11. CCTV Upgrade

We currently have six (6) tenderers engaged and have detailed our requirements into various bid options in three (3) separate categories, as follows:- 1. The whole estate above ground, including all lobbies 2. All Lifts 3. The Millennium Walkway, around the waterfront perimeter of our estate

The goal is to balance value-against-cost, taking into account the estate security as our priority. The plan will enable us to continue to identify the few owners who continue to ignore their leases, in particular those who are still trying to run short-term let operations. It will also help us to establish those who abuse our estate through vandalism, anti-social behaviour and “fly tipping”.

The tendering companies have a range of views and we will keep you appraised as options develop. 12 New Regulations -Regulation 001 = STL & HMO USE OF PROPERTIES -Regulation 002 = SALE AND RENTAL OF PARKING SPACES -Regulation 003 = NOISE & NUISANCE -Regulation 004 = DIRECTORS‟ REMUNERATION -Regulation 005 = E-CHARGERS -Regulation 006 = Littering / Penalties Note: More „Board Regulations‟ may be created to enhance our quality of life. These are in addition to the terms of our Leases and will assist the Board in the providing tools to protect us against breaches.

13. Final Notification: BIKE RACKS RELOCATED

Most bike racks at the foot of the Canalside car park ramp have been moved to the far ends of the garage.

Two (2) racks remain, one on each side of the ramps.

If your bike is secured on either of these 2 remaining racks, please move it to the new locations, as they will be moved at the end of this month! If you are a landlord, please advise your tenants accordingly.

14. Estate Rules

1. Estate Rules were issued two weeks ago…

2. These rules MUST be shared by Owners with their Tenants. If you are a Landlord, it is IMPERATIVE that you pass this information to your tenants.

3. Rules cover such things as Moving In and Out / Contractors working hours etc.

4. GQRC Ltd is empowered to make and enforce such Regulations as it may, in its absolute discretion, consider necessary and desirable to enable all residents to enjoy the Estate.

15. New Door handles

1. Some of you may have noticed the new door handles recently installed on apartment doors at Blake and Arethusa.

2. All other blocks are now being completed. 3. What we now have are matching handles inside-

and-out. 4. Some of our elderly residents were having

trouble opening the doors using the small latch mechanism. These new handles are much more user-friendly

16. The Big Clean Up continues … The high pressure washer is now being used regularly as part of the BIG CLEAN UP campaign – used on a weekly basis. All paved areas will be cleaned across the estate by Q4-2020 and a plan is being created to advise residents which parts will be cleaned on what dates.

17. Labeling on Pipes and Cables Some of you may have noticed that we are commencing a program to label pipes in basements and communal cupboards for ease of maintenance. We believe that labeling all of the pipework will make fault-finding and troubleshooting easier in the future, thus reducing costs in wasted time.

18. Estate Plan 2020-2030 We are commencing a program to produce a new Ten Year Plan (2020-2030).

We believe that this 10YP, in the form of a Surveyor‟s Report will enable the Board to better forecast costs and budgets for the future, as we covered at the recent Surgery.

19. Neighbourhood Watch Signs are now placed strategically around the estate!

Window decals are now displayed on all entry level doors.

These decals are still available from the Site Office (FOC) for any residents who wish to display them on their home

Our co-ordinator is Cheryl Jewitt and she can be contacted via her GQRC email address – social@gqrc.net

20. Speeding Concerns on the estate The Maintenance Sub-committee is considering speeding measures. Once we have extended CCTV coverage, we will be issuing warning letters to habitual offenders. We would also remind owners to adhere to the speed limits, both in basement car parks and on the above ground estate roads.

21. Emergency Contact Details: We are asking Owners to provide us with an Emergency Contact Number and to let us know where we can access a key to your apartment (where necessary). During the recent Storm Ceara we found a window left wide open (in the Vulcan Building) which was almost ripped off its hinges. We would like to know how to access properties in the event of extreme weather events or reported leaks.

22. English Heritage Plaques We are in contact with English Heritage to place signs on our estate relating to :

1. The Vulcan Building (The Grand Storehouse) 2. The Old Infirmary 3. Nelson Gate (opposite) 4. Sir Alfred Lapthorn Blake, KCVO, MC, DL

23. Potential Incident on the Millenium Walkway: There was a „potential‟ incident on Monday, 13th January, 2020 at around 18:48hrs! Did you hear it?

Owners and Residents in Blake and Arethusa felt the „shock‟ effect.

We have met with Wightlink to review their CCTV. Nothing to report.

We have been in touch with LandSec to review their CCTV too! Nothing to report.

We have been taking statements from Residents and Owners and will be grateful if you have further information.

24. Contractor Renovations - REMINDER Reminder: Complaints have been received regarding noise from contractors and / or DIY residents at unsociable hours. We remind Residents that such activity is limited to 08.00–17.00 on weekdays and 08.30–12.00 on Saturdays.

PLEASE consider your fellow residents and avoid disturbances during the evenings and on Sundays.

Thank you in anticipation of your cooperation and consideration on this matter.

25. Folding Lockable Parking Posts We are in discussion with Portmouth City Council (PCC) to arrange a „special price‟ for the installation of folding parking posts on the above-ground parking spaces. We will advise on the costs involved when available. Some owners (in Lysander) already have folding parking posts in their demised spaces (outside the entrance barrier) and these have proved very effective in deterring illegal parkers. If you would like a folding parking post installed in your demised space, please contact Ellie in the Site Office with your name and space number (location) or email her and she will add your name to the list.

26. A very Special Event at GWQ The Board are proud to give a mention to Mr John Sale of Arethusa House, who has just reached 100. On behalf of all the owners at Gunwharf Quays we would like to congratulate John on his momentous achievement.

27. Reminder – Ownership of Parking Spaces and Storage Cupboards: We urge all owners to confirm ownership to the Managing Agent before the end of February 2020. If you own a cupboard in a communal

hallway, please confirm which one this is

and in which location, block, floor, etc.

Confirm which is your parking bay or bays. We require the letters / numbers which are marked on the actual bay, i.e., A46, and the location on the estate e.g., underground car park / Old Infirmary, etc. This applies to all parking spaces relating to your property.

28. Replacement Fobs: In future, and as an additional security measure, anyone requiring a replacement entry fob will be asked to produce a current "proof of address" document (such as a recent Council Tax bill, bank statement, utility bill) and to sign for the fob.

29. Litter / Rubbish / Fly Tipping: The Board is introducing a new Regulation (006) to deal with the plague of people dumping waste materials and unwanted personal items in and around our estate. Our hard-working staff spend many unnecessary hours folding boxes and clearing such items (e.g. mattresses, sofas, cabinets) that should be disposed of via the City Council - this new Regulation will give the Board the power to impose financial penalties on offenders and / or their landlords. With the current inclement weather, may we also ask residents to "lend a hand" with the litter being blown around. Please pick up any small items of rubbish as you pass and dispose of it in the accepted ways. "Thank you in advance".

27. GQRC Social Events The Social Events are listed on the pages below.

AGM DATE:

18.00 Thursday, 1st October, 2020

Beckett Hall, St Thomas‟s Street.

REMINDER : MANAGING AGENTS – CONTACT DETAILS:

Ellie Savidge is in our Site Office between 11.00 and 13.00 each weekday; she can be contacted via her mobile (07802.325.609), via the DPM main number (023.9289.6999) or by email at:

eleanor@dackpropertymanagement.co.uk

Wishing you all a great month ahead…

The Board of Directors GQRC