December Bendemeer Property Management Report

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1 December 2012 Bendemeer Property Management Report

2 Mac Property Services Mac Property Services Limited (MPS) have been appointed by Bendemeer Management Limited (BML) to provide property and facilities management expertise and resources required to professionally managed Bendemeer. MPS employ a team of full time property managers, including in house accounts and office administration resources. MPS have been involved in re-establishing systems and actioning tasks to ensure that Bendemeer is being appropriately, and cost effectively, looked after to ensure good governance of the property and its infrastructure. Your contact is: Angela Davis or or angela.davis@macproperty.com Property and Infrastructure Update Charlie Fraser of Landcare Queenstown (LQ) has been contracted to provide grounds maintenance services to Bendemeer. LQ primary role is the mowing of common area grass (for which LQ provides all the equipment and fuel required to complete this work.) He is also engaged to ensure a tidy presentation of the overall property, including the pavilion, and to be on site at least three times a week to monitor and address any issues that arise. Caretaker Over the warmer months the majority of LQ s time has been taken up in mowing of the common areas grass. Over summer the grass grows at a phenomenal rate and requires all of the common area to be cut three times per month. Prior to the warmer weather LQ has organized the re-grassing bare verges along Baird Lane and Bendemeer Lane using Hydroseeding. This has been successful and will be used next spring to re-grass all the remaining bare patches and verges if funding allows. LQ has been hand seeding, using grass seed, some bare areas around the Pavilion pond and Bendemeer Lane. These areas are watered regularly and we expect the growth to be successful LQ has attempted the planting of tussock on a bare mound near the pavilion with limited success. The resident rabbit population tend to have an appetite for new plants and ate a lot of the new tussock despite being sprayed with a rabbit repellent. LQ has now placed a small rabbit proof fence around the mound to 2

3 give the plants a chance to establish. Other duties LQ are involved in is: weed spraying, cleaning of the pavilion deck, monitoring pond levels, pond water treatment, liaising with lot owners whilst on site and assisting with information on plants needed for the QLDC resource consent requirements for planting. Potable Water Sewerage System Fire Hydrants Irrigation Water Supplied by the Lake Hayes Scheme with Bendemeer having a privately owned pump shed and water pump. Fulton Hogan (FH) regularly monitor and maintain the pump system for potable water into and around Bendemeer to ensure that this facility is maintained to a best practice standard. FH are contracted to regularly check and maintain the system including three pumps and associated sewerage infrastructure to ensure that this is maintained to a best practice standard. FH been appointed to maintain the fire hydrant system throughout Bendemeer to ensure that this is maintained to a best practice standard. August Irrigation water is supplied via the Arrow Irrigation Scheme which is supplied to the Hawthorne pond located on the neighboring Bendemeer Estate. Water is then conveyed via easement and by pump up to the Matagouri pond also on neighboring land before being gravity fed down to a holding pond within Bendemeer. This system has had issues over recent years that relate to an instability problem with the Hawthorne pond, and the expiry of 15 year old water pump that necessitated replacement at a time when the majority of sites within Bendemeer were in receivership. A number of meetings have taken place to determine how to address the problems with the Hawthorne pond that has had cost estimates to rectify of up to $100,000. A recent meeting determined that a simpler solution was at hand and it is now estimated the upgrade cost is likely to be far less than projected, but to date not resolved. Bendemeer while not currently using a lot of water, has 40 shares in the Arrow Irrigation Scheme and accordingly has rights to 80% of the water pumped into the Hawthorne Pond, accordingly we are in the process of negotiating a fair proportion of upgrade costs that protects this water resource into the future, but also reflects the current water usage. As lot owners start creating gardens within Bendemeer there will be an increased need for irrigation water, accordingly we wish to assure lot owners that they will have a ready supply of irrigation water, and also that the irrigation pumps will be supplying water on demand to all lot owners. Please be advised that there will be a ready supply of irrigation water available to all lot owners this summer. FH have been contracted to maintain the irrigation water pumps within the pump shed, and manholes and control valves linking ponds, to ensure that this is maintained to a best practice standard. LQ will be checking K line irrigation systems over 3

4 coming months to ensure the system is up and available for use this summer. December 2012 we have had no further contact from the neighboring property owner regarding this and so no further action has taken place. Ourselves, LQ and Fulton Hogan are working together to get the irrigation system repaired and in good working order so that all lot owners will be able to use it. We have had some delays in getting this project started due to lack of funding but can now move forward. From the investigations so far it seems that the Kline irrigation system capacity is limited. The pump system will not be able to support all lot owners irrigating at the same time or at similar times. We will need to put the pump for irrigation water on a timer with lot owners given specific timings on when they will be able to irrigate. From the drawing we have it appears that not all lots have irrigation points. This can be resolved by connecting to the nearest irrigation point and running Kline piping to the effected Lot, burying the piping using a mole plough or similar. Fulton Hogan will be checking that the as built plans we have of the irrigation system are correct. Given this, we form the conclusion that lot owners may need to consider including onsite irrigation water storage tanks for all lots. This will allow each lot owners the freedom of irrigation whenever they wish with no timing restrictions. Some repairs have been completed to ensure the new grass seeding has sufficient irrigation water to grow. Roads Electrical Fulton Hogan to complete repairs to the road using a stone emulsion which will blend in better with the current roading. Resurfacing of the road will need to be put into the 10 year maintenance plan and progressively done over a number of years. August Some repairs have been completed to in-ground common area lighting including along the avenue roadside. The electrician reports that half of the in ground lights are dysfunctional due to moisture problems and have in ground cable faults. Flood lights hi-lighting the entrance rock face are also dysfunctional for similar reasons. Repairs have been considered but are not essential at this time, and will be further considered as more lots are developed. We have recently changed Bendemeer's power supplier on the basis of a projected 15% saving in power cost over the next 12 months 4

5 November 2012 Further lighting faults have occurred. The electrician is needing specialist equipment to detect the fault and will be more costly than anticipated. This work is considered non-essential and placed on hold until we have funding available to complete the works. We have been investigating different types of algae control for the main holding pond that is non-toxic. The main holding pond is used for irrigation water for the whole property including stock water for the farm. The management of holding pond water is complicated as it must remain non-contaminated/non-toxic so that it can be used for irrigation and stockwater. Accordingly the balance between good aesthetics and functional utility requires some compromise. Ponds Some of the non-toxic options we are investigating are: installation of filtration ponds; planting of bull rushes or similar types into the pond which will remove nutrients from the water that feed the algae; purchasing an ultrasonic algae control device that kills algae by sending out an ultra-sonic signal. All these options have their positive and negative aspects. Once we have an idea of cost we will make our recommendations to BML to consider. We are trialing copper sulphate in the ponds not used for irrigation to see if it keeps the algae growth to a minimum with all ponds being sprayed for duck weed by Dunstan Sprayers shortly. FH will be asked to service the court on annual basis. Pavilion and tennis court Rabbits Pavilion is being cleaned once a month. Some repairs to the Pavilion decking will take place over the next few weeks with some of the timbers in poor conditions and in need of replacing. A Pindone drop was completed in August; we have had the burrows gassed and have a regular shooter on Bendemeer on a Tuesday. All of these have reduced the rabbit population with the Pindone drop and gassing of burrows done again next year. Long term we will be looking into fencing the perimeter with rabbit proof fencing. The types of rabbit control that we can use at Bendemeer will start to become limited as more residence are built. A rabbit proof fence 5

6 will help keep rabbits out from neighboring properties,who may not have a regular rabbit control program, and make the rabbit control we use more effective. Re-grassing LQ has had the bare verges along Baird Lane and Bendemeer Lane hydroseeded with good results. With limited funds we were only able to have these areas completed this season and plan to have the remainder done next spring. LQ also completed some hand seeding using grass seed along Bendemeer Land and around the Pavilion pond. This has been irrigated regularly and we expect the grass seed to take successfully. QLDC are holding a bond (circa $8,000) for the use and completion of the landscaping as part of the original Resource Consent. It has been agreed that they will release this bond in increments once we have put a specific planting plan together showing all the outstanding landscaping is completed over a number of years. We have investigated how many plants we currently have planted and what is outstanding in and around the pond areas. Landscape Plan We have obtained quotes for the 4,773 plants required ($16,000 + GST) and an option including the planting ($42,000 + GST). The quotes were for smaller plants then specified in the resource consent. We did this in the assumption that Lakes Environmental will agree to this provided we get the planting completed over an agreed time. The smaller plants cost less and we are therefore able to plant more over a shorter period of time. These quotes have been given to BML directors and we will complete a plan around the planting looking at the best option for BML. Common Areas The first baleage of the season is complete. We are yet to confirm the total bales cut but expect a similar amount to last year of around 600 bales. This will bring BML an income of $10 per bale. We expect to be able to have a second cut later in the summer. We are negotiating with a farmer, who is currently running some of his sheep on the farm area if Bendemeer, to agree on a rent free period in exchange for some repairs and maintenance work needed on the fences, troughs and weed control in and around the farm. 6

7 The farm area is looking good after having the sheep and lambs on it for a few months. Long term asset management plan We are in the process of obtaining quotes to have a long term infrastructure plan completed for Bendemeer. This plan being essential to understanding the lifecycle cost of Bendemeer infrastructure and providing the basis for maintenance schedules and for setting long term sinking fund budgets. We now have budget funds to resource this plan and will engage the preferred expert in the new year. Accounts Mac Property has issued the second levy change for the year which is due now as well as first half of the extraordinary contribution (deferred maintenance). We will be invoicing the second half of the extraordinary contribution (deferred maintenance) in February in order to complete the work budgeted for. While the majority of lot owners are now up to date with levy payments, there are some notable exceptions. Considerable time and effort goes into pursuing such levies, supplying BML directors with information, coordinating responses etc. Once levies are all up to date we expect MPS input to be reduced. We have been instructed by BML to pursue and charge interest on any levies that are overdue by more than 90 days. It is imperative that levies are paid on time so that operating costs are paid and ensuring prudent maintenance is continued. We have followed up the auditors to have the accounts for last financial year completed and sent out to all lot owners. We hope to have these financials by the middle of February once WHK have re-opened for

8 In Closing Bendemeer common area is well on its way to being brought back to a good standard. With a clearer understanding of how the property runs and some good systems and contracts in place we should see it improve further. We have a number of maintenance items in the pipe line that will be implemented once sufficient funding is available. These include (but not limited to) upgrading of the irrigation system, planting of ponds in accordance with the Resource Consent, repairs to the pavilion fireplace, regressing of verges, alternative rabbit control methods and a more long term system for non-toxic algae control for the ponds. Our focus and much of our time is currently being spent on collecting any outstanding levies so that we are not hindered in the service we would like provide to you in making Bendemeer look and run at its best. We would like Bendemeer to be known as a well-managed, well maintained gated community. This will be beneficial for lots owners who make Bendemeer their home and for those who wish to sell or hold onto their lots as an investment. 8

9 Photos Grass verges along Baird Lane that have been Hydroseeded 9

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