AGM 2017 – Chairman’s Annual Address

by | Nov 15, 2017 | AGM

TENOA Chairman’s Annual Address

1st November 2017

Here’s a story about a tired old man who found himself between a rock and a hard place. It began when a younger friend suggested a trek in The Arctic Circle.   Like an excited toddler about to start nursery school he couldn’t wait to begin.   Reality struck when it was too late to turn back.   If only…..   Half way into the first day he began to feel far too old for this: really heavy backpack, it would be dark before he got to the over-night hut 10 hours and 16 miles away; exhausted at the top of the first mountain, another one loomed and in the distance yet another. His old brain fought weary body: “Whose stupid idea was this? I can’t do this at my age”.   He wanted to blame someone but that was pointless. He was where he was, literally between rock and hard place, no going back to “if only….”

Then everything changed – yet nothing changed. The mountains didn’t move; darkness got closer, load only lightened when he ate something.   What changed was waking up to reality. “Get on with it if you don’t want to die here”.   And the old man started to feel younger. Spurning weakness he began to enjoy the view he’d come for.   And days later when some girls sang “Happy Birthday” by candlelight he felt like Brad Pitt as Benjamin Button, younger not older as he trekked on into his 80th year.

Tonight you are that old man!     We are where we are, not where we might have been. Trying to blame someone makes no difference.   Tomorrow nothing will have changed except the will spurring us to “get on with it”.   A Chinese proverb notes, “If you have an arrow in your side you don’t stop to ask who made it, how long it is or who put it there; you take it out.”   Two years ago we took the arrow out.   It had left a gaping wound to be dressed. Recovery would be painful, take a long time, requiring skill and dedication.   If, after taking the arrow out it made sense to check so no others could hit us, far more important was to nurse the wounded body back to health. Tonight a progress report on how we’re doing.   I’ll headline the treatment since our last AGM, when we were told The Element would survive but need more surgery and aftercare.

We began to gain confidence in our new Factor TEF (though TUF might a better name) but were much less sure of ourselves.   TENOA was unsteady, not helped by a weak constitution – that’s the physical body by the way!   Another arrow had to be taken out. Tonight we’re stronger having done just that.   I’m not going through the new constitution bit by bit but there are two important points that will help us recover: membership and aim.

Of the 278 owners 197 have registered as members of the new TENOA and already more tonight.   Paradoxically smaller doesn’t make us weaker but stronger than when every owner was automatically a member. What of those who couldn’t care less about TENOA, yet whose indifference was a hazard in our way, whose disregard for any attempt to put things right a weight on our back dragging us down?

What about our legal status because our Title Deeds don’t say TENOA must exist at all? We couldn’t do anything when owners ignored us as irrelevant. But owners can’t ignore the Factor – “Property Manager” in the deeds. TEF exists under Scottish Law, obliged and empowered to charge every proprietor: each required by the burdens of their Deeds to pay all levies imposed. They’re not negotiable or optional – “I’m won’t pay that much!” An inescapable legal burden. Like the old man facing the mountain, complaining is pathetic.

So what’s the purpose of TENOA if owners must obey the Factor?   Here’s the subtle point. There has to be a single Factor for all. You can’t each have your own, like popes in that phrase “Everyone his own Pope!”   One for The Element. First only FM the developer could appoint the Factor. In 2015 TENOA signed up TEF.   And only TEF or TENOA can terminate the contract. Tonight, you who’ve registered as members of a reconstituted TENOA, have inherited that contract with TEFnot individual owners; yet each of the 278 are bound by it. TENOA can now influence owners we might regard as “bad”.   I leave that at the back of your mind as I come to our aim.

We must monitor TEF’s work, but we’ve added: “…to foster co-operation and a sense of wellbeing in the interests of everyone within The Element…. Members, Owners, Tenants… families and visitors.” – this community.   I’ll tell you why that’s important after a comment on our perception of owners, ranging between responsible and irresponsible. You might think all resident owners are good and all who let and their tenants are bad. That’s not true. Many owners let responsibly to good tenants, while some resident-owners are an absolute pain. I have a catalogue of both and the range in between. So be careful before you generalise – as I’m now about to do but with great care.

When a fire-alarm goes off or a bike is stolen or rubbish is left in the corridor or lifts are damaged, it’s not a big issue if you live in Singapore. But for everyone here, owner, tenant, someone staying with family, these are real problems. We should not want anyone to feel The Element is a bad place to stay but the very best place for miles around.   That’s now our aim.   Fulfilling it will add capital value of this property – which is good news for all investors.

This year we’ve had an unwelcome challenge through the Grenfell Tower tragedy.   Details later – but we must obey the law; and in any case as responsible owners we’ll want to ensure the safety of everyone in The Element. So we’re tackling many fire-related issues, including the vexed problem of smoking; taking action to minimise risk for everyone here. That points to irresponsible owners – resident and landlord – whose selfish disregard for others has a detrimental effect on us all.

Now you may begin to see the importance of TENOA:   a body of owner-members determined that our corporate will prevails in The Element.   We can’t stop owners acting within the Law concerning their own property. But we can – as the huge “majority shareholder” – produce a code of conduct constructed within the Law.   That’s no sinecure but a challenge as we pick our way across difficult terrain strewn with rocks. We must proceed step by careful step.     But as Churchill once said, “It would be an inconvenient rule if nothing could be done until everything can be done”. We’ve started and we’ll carry on. Of course, TEF is new to this, just two years old, feeling its way over a rocky path. Why on earth did we appoint a novice? Because 2 years ago things were so bad no other Factor would touch The Element. We took a risk – and later we’ll be shown some of the debris behind us, so we can cope with what lies ahead.

We’re fortunate to have a company on site, with a vested interest of 50 flats. No wonder TEF wants to do their best.   We’ll make sure they don’t just feather their own nest; and to avoid any such suspicion they put their own block at the back of the queue. Partnership is essential when we’re still licking our wounds from previous factors.   I’ve uncovered horror stories of owners doing shady deals of personal favour we’ve all had to pay for. We’ve won’t go down that slippery path again.

But this is encouraging.   TEF goes further than their contract requires, not just in touch with your Committee occasionally but daily – that’s never happened before and doesn’t happen anywhere else: your interests safe-guarded.

Here’s an example. Last year we were shocked by a Critical Risk Analysis from an Independent Surveyor – David Bonar here again tonight – on what has to be done to bring The Element into tip-top condition.   £13M – £50K each.   As we hadn’t got 13M tucked away the task has to be spread over years. What must be done in the first year? What did the first day of the trek look like?   The Factor could have demanded £1,000 from each owner immediately.   Could you have found a grand on top of your monthly payments?   TEF asked your Committee and we reckoned about a 1/3 of that – £360 was all most could afford: a total of 100 grand instead of ¼ M. TEF will tell us how far they’ve got down the long “to do” list. They’ll also show a plan for 2018, the next day of the trek; and explain the two funds: Green for routine things – food for the journey and Red: “Danger!” Falling rocks ahead”.     And they’ll show how their prudent Green housekeeping means we can now put more towards Red works, without any increase.

This is where we are. Not everything at once – and the more we’re distracted by unwarranted things the longer and harder the road will be. That doesn’t mean neglecting little things to help sugar the pill.   At an Open Evening in March those who’ve been around for years met new owners, eager get to know what’s what and what to do. There were lots of ideas. One was a social event in the summer to build a sense of community, in your Courtyard Garden, the upkeep of which you pay for, appropriately from the Green Fund! It’s much better than the garden next door.   But why waste money on a social event, when the Red list is so daunting?   The net cost of the Garden Fest to each owner was 56p. Who would begrudge a great success, more people getting involved in making TENOA work – shown in a new committee here: not a bad return on 56p?

I’ve almost finished this year’s catalogue but want to add a bit about the Chairman’s role. I’ve been on in a steep learning curve since the committee elected me, making mistakes as I’ve discovered the demands. I’m sure I’ll make many more.   But I’m pleased when both old and new owners share individual concerns with me because the result is mutually beneficial: I’ve learned much trying to solve problems, often with TEF, all of whose staff I applaud for their singular dedication and good humour. There’s no weak link in this team; we need to cherish them. If they walked away our wounds could yet be fatal!

Yet sometimes I stand between individual and Factor and I believe my role will increasingly be just that: safeguarding the interests of all equally. Some of you have had long emails from me, (because I don’t have time to write short ones); others face-to-face meetings and there’s no need for that to change all the time it creates trust. But I feel more confident now, appointed by you all and not just by the committee. I aim to ensure fairness, with no issue ignored but put into context. But we must rely on those we’ve chosen. No point in having a dog and barking yourself.

I finish with an inspiring quote and a flippant postscript. In “The Long Road to Freedom” Nelson Mandela wrote: “It always seems impossible until it’s done.” And the postscript? I was going to ask you to buy a Chairman’s zimmer frame, but tonight I feel more like Benjamin Button, younger as we trek on. And what better scenery could there be.

Rodney Matthews