On Friday 9th October a meeting was held between GCROA committee members and GCD management, including Ashraf Othman, Bala, Guna and two members of the GCD Accounts Department who are responsible for Glenmarie Cove maintenance and security accounts.
A spreadsheet was presented showing Income and Expenditure for 2013 to 2015, with a monthly breakdown for the current year. This is a document with a detailed breakdown of billing to Bungalow and Semi D lots in different areas, together with around 30 different items of major and minor expenditure.
The accounts as presented show a deficit for the last three years, with expenditure considerably higher than billings. Non payment by residents increases this deficit.
A detailed discussion took place regarding costs, and what could be justifiably be assigned to residents. GCD staff costs have been particularly high, with far more people than necessary assigned to manage GC. This has changed recently, with staff costs much lower in September, when expenditure was lower than billing for the first time.
Security charges have risen due to an increase in guard numbers not discussed with residents. Water charges are also very high, due to leaks and the fact that Syabas has not adopted the main pipeline yet (this should happen by March 2016).
GCROA insisted that a number of these charges must be borne by GCD and not by residents, and this was generally accepted.
This meeting proved very useful for committee members to understand in much more detail the expenditure required to run Glenmarie Cove. Our development is complex in that the housing area is still only partly adopted by MPK and they provide some services but not all. We will need to provide extra maintenance services paid for by residents.
GCD still proposes to hand over maintenance and security in the first quarter of 2016. GCROA are currently obtaining proposals from Managing Agents, working on a budget, gathering information on the best appropriate internal structure and putting together a list of requirements for repair work to be funded by GCD.
GCD will need to inform all residents by letter and call a meeting, probably in December, to explain the hand over and to form a new Management Corporation of similar.
Statement on payment:–
GCD has agreed that the separate allocation of the security rates stated in the invoices to residents since April 2015 (90 RM) contradict the agreed budgetary allocation (that predetermined the current rates charges) that was agreed upon and effectively implemented since January 2014. To ensure future misunderstanding and/or dispute with this regards, GCROA asked that GCD must acknowledge in writing before GCROA advice the resumption of payment.
Roy Lee Jeff Harris