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(l) in reply to “mH’s” Solicitor from “PBC” on 30 June 2016 by return he states:
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2_ We have ever only had £98,262.75 available in Reserves (see Section 20 dated 22 June 2014) 3_ We are therefore short (meaning overdrawn, in debit, not enough money to pay) by £6756.25
4_Consequently it was agreed that all nine lesses would contribute additional funding to replenish Reserves of £2000 each. (see Section 20 dated 22 June 2014)
5_Consequently, Reserves, after payment of the £105,019 would total approx. £11,243.75 (multiple email announcements)
6_This £11,243.75 is required to cover unexpected additional contingencies in the £105,019 bud- geted works AND any unforeseen emergency expenditure at Mitre House, such as the lift, plumb- ing AND AS WE HAVE NOW EXPERIENCED AN EMERGENCY REPLACEMENT MAIN COLD WATER STORAGE TANK.... for £7810.80 (or £867 per lessee) (multiple email announcements)
7_Had all lessees paid their £2000 dues as they initially agreed to do, there would not have been a reason to call on lesses for immediate voluntary contributions towards the replacement tank, but simply their agreement to utilise the funds without the necessity for a lengthy Section 20 and a far cheaper option than at a later stage due to a scaffolding requirement. (multiple email announce- ments)
8_The full and final cost of the Tank could have been requested (and required to pay) in the De- cember Quarter. (multiple email announcements)
9_I hope that is now abundantly clear, makes sense and will be appreciated as being NO FAULT OF MANAGEMENT but only those defaulting lessees who have caused some lessees untold grief, time and aggravation.
Please NOTE: rear scaffolding goes up this coming Sunday - so it'll be a bit disruptive. (Folder_00 Item_49)
(k) in a letter from “mH’s” Solicitor to “PBC” on 21 June 2016 he states [correctly re: funds]:
Having collected in the supplement of £2,000 per flat you had total reserves available to you of £116,262.75 (£98,262.75 plus £18,000). This was more than enough to complete the budgeted works, including a reasonable 10% contingency reserve. However you pleaded lack of money to Mr White to justify a reduction in his specification. After making "savings" against the original budget totalling £32,496, achieved primarily by reducing this agreed specification, (a 'Saving of £3,185 against the anticipated surveyor's bill, plus a saving of £29,311 against the anticipated AR Lawrence bill) your actual expenditure on items within the reduced Schedule of Works totalled only £72,523 (comprising £62,010 paid to AR Lawrence and £10,513 paid to the surveyor).
You will note from the content of email correspondence between lessees and MHML in
September 2014, to which you repeatedly refer, a serious lack of funding because of Mrs Hillgarth’s canvassing of other lessees to refuse to oblige/pay the previously agreed £2000, and the voluntary agreed contributions for the Water Tank and SkyTV installs. As such, MHML made clear that due to a lack of funding as agreed by lessees [and Mrs Hillgarth as evidenced in the 23 May 2014 minutes of the meeting she attended with her fellow directors] would result in a reduction of works to be accomplished - all as stated in 48pt large typography on our website [and still in evidence] as well as made abundantly clear in replies and requests to lessees well into mid Octo- ber 2014. Works were progressing but underfunded!