Kennett Heath Management Limited (KHML) is moving ahead
Acoustic barrier and bund will not be adopted by West Berkshire Council
Meeting with one of the developers highlighted:
- With all houses almost sold, KHML could be handed to resident directors within six months
- Clearing up of legal situation on the estate will mean CPM/RMG collection of arrears
Three major developments occurred this month concerning the resident management company, Kennett Heath Management Limited (KHML) and its managing agent organisation, CPM/RMG.
The three developments – a meeting with an MD of one of the Kennet Heath Developers; notification from West Berkshire Council that they will not adopt the acoustic barrier and bund and full disclosure of the KHML 2008 accounts to all residents – continue to underline the complexity of the situation and the need for constant vigilance to ensure that the best outcome possible is established for all residents on the Kennet Heath estate.
Key points that came out of the developments showed:
- The developers are at a point where they hope to hand over the managing company to residents as early as December, this year. The developers, having fully investigated the legal situation on the estate, are now at the point where they will be asking CPM/RMG to ensure recovery of all outstanding resident payments to KHML. This is designed to ensure the company is on a sound financial footing for the hand over to resident directors. They will equally be sending out invoices for the next year in December or January following budgets which will be approved personally by the David Wilson MD, Kelvin Tutill.
- West Berkshire Council will not be adopting the acoustic barrier and bund and therefore, has left the path open for continuation of the situation with the managing company, KHML, adopting the mound and associated responsibilities and liabilities.
- CPM/RMG has provided homes on the estate with the service charge accounts for 2008.
Background
When the majority residents of the Kennet Heath estate purchased their homes, the deeds contained clauses detailing that contributions were to be made towards the maintenance of an acoustic barrier and bund. This is be managed by KHML. The acoustic barrier and bund is the mound of earth that runs alongside the railway line to the south of the estate which provides noise attenuation from the passing trains, resulting in a quieter estate.
KHRA investigations have identified that this is the only area of land on the estate to be maintained in this way, currently all other public areas will be maintained by the developers and, when adopted, the West Berkshire council. It should be noted that parts of the bund (up to the fence in the public open spaces – playing fields) will also be adopted by the West Berkshire Council.
Following identification of CPM/RMG being a major challenge on the estate, a sub-group of KHRA was formed to investigate the problem. The hard work undertaken by this team of KRHA committee members has paid dividends. The initial reaction and support received, following the 2009 invoice where CPM/RMG hiked the invoices incorrectly due to a “typographical” error, ensured a reduction in the management agent fee and a reduction in the invoice to each home on the estate of around £15. In addition, the sub-group’s persistent questioning of KHML and CMP/RMG’s practices resulted in open dialogue being established. The first step in this open dialogue was a meeting with the managing director of David Wilson Homes, Kelvin Tutill, at the end of August and his assurance that situation was getting attention at the board level of his organisation.
Meeting with the developer MD
During the meeting, in addition to the points raised earlier, it was established that:
- A proper members list has now been produced
- There is no written contract between KHML and CPM/RMG
- There are a number of properties being excluded from the requirement to contribute towards the maintenance of the bund due to a legal paper work error. Some compensation has been offered for this error by the solicitors concerned and currently, this is being considered by the KHML Directors
- The developers complete this year and the bund will be transferred to resident directors via an Annual General Meeting – anticipated to be early 2010.
- Developers’ planning discussions with West Berkshire Council showed that the council would not adopt the whole of the bund due to the associated liabilities with the land.
- Confirmation that all budgets prepared by CPM/RMG for the next year would be formally approved by Mr Tutill prior to any invoices being issued to residents on the estate.
- A confirmation on submission of further questions that Mr Tutill would undertake to look into them and provide answers in the near future.
The KHRA sub-group believes that the management charges related to the 2009 invoices would not have been reduced without the efforts of the team and support from the wider estate through posts to the forum and direct contact. However, there are still concerns that the 2010 charges will show a further hike in fees. This in spite of assurances given that significant price rises are not currently planned.
Even now, there is no visible evidence of work conducted in the area of the bund conducted by the managing agent, CPM/RMG, on behalf of KHML. This will need to be monitored as it will become the residents’ responsibility when the acoustic barrier and bund is adopted and handed to resident directors.
Confirmation from West Berkshire Council
In correspondence from West Berkshire Council following an official request by KHRA to adopt the bund, it was confirmed that they would not do so. A formal written response is expected shortly.
CPM/RMG has provided residents with copies of the service charge accounts for 2008
During the first week of September, residents have been provided with signed copies of the accounts for KHML for 2008. The sub-group will be looking at these in detail and add any questions based on these to points to be raised with Mr Tutill.
Next Steps
KHRA sub-group has submitted a list of further questions to Mr Tutill and CPM/RMG. We will continue to monitor the situation and ensure that pressure is applied to all parties concerned for responses to residents’ questions.
Once further information is known this will be communicated to residents as appropriate. A shorter summary of this information has been included in the latest KHRA newsletter which has been distributed to all households on the estate.
If you have any questions that you would like to direct to the sub-group, please send an email to residentsassociation@kennetheath.co.uk