SANDGATE HERITAGE TRUST LIMITED.
51, SANDGATE HIGH STREET, SANDGATE, FOLKESTONE. KENT CT20 3AH
Company Number 1645228 U.K. Charity Number 287281 REGISTERED OFFICE, Town Hall Chambers, 148 High Street, Herne Bay, Kent CT6 5NW
Please reply to:- Zoe Varian The Hermitage, 6 Castle Road, Sandgate, Folkestone, Kent CT20 3AG
Telephone 01303 248114 email:
Minutes of Board Meeting held on Saturday 29th August 2015 at 10.00am in the Reading Room at the Old Fire Station
Present: Chair Mrs Zoe Varian, Mr John Cutmore, Mr Ken Gorrie.
In attendance: Mr Michael Chalk (attendance requested by Directors at meeting on 26th July 2014)
Apologies: Margaret Stopford, James Sayers
The minutes of the board meeting held on 30th May 2015 had been circulated prior to the meeting and were approved unanimously. Proposed by Mr John Cutmore and seconded by Mr Michael Chalk.
Matters arising
Kitchen: the replacement of water heater is not now needed as the spout has been repaired by Mr Michael Chalk.
Accounts for year ended 31st March 2015 were filed at Companies House on 9th June 2015. No Corporation Tax return is due and the Charity Commission return is due 1st January 2016 and being prepared by Philip Gambrill & Co.
Insurance
A survey by Andrew Beggs & Associates gave an insurance replacement value for the building of £160,000. The building is currently insured for £190,000 so we are well covered. (Copy attached) He raised question of VAT on listed buildings. Zoe Varian is to check with Ansvar whether we have to pay this at the point of any claim and then subsequently claim exemption and if so whether we are covered for additional outlay. We should also check whether we are covered for loss of earnings.
Sandgate Society Revised Rent and New Lease.
Lloyds Bank plc has been contacted for return of original lease, which was deposited with them on 1st May 1984 and has not been seen since. It appears that no copies of the original were kept by either the SHT or the Sandgate Society. James Sayers has drafted a new lease (based on the original) and this is currently being reviewed by Sandgate Society. In the absence of notice by either landlord or tenant, the original lease continues.
Zoe Varian outlined her discussions with the Sandgate Society as follows:
Euan Williamson, President, Marjorie Findlay Stone, Chair and Roger Joyce, former Chair attended. The meeting was occasioned by the suggestion that the Sandgate Society annual rental payment be reduced to £800 per annum. This figure had been arrived at by taking the original rent payable in 1984 of £300 and applying the Retail Price Index to it. The original lease allows for the application of RPI but ZSV explained that it should be applied to the last reviewed rent NOT the first. The current rent is due for review on 1st January 2016.
Euan Williamson pointed out that the rent had increased at each review and ZSV commented that this was in line with other consumer price increases. Roger Joyce felt that that a fair market rental should be paid and ZSV agreed to have the Engine Room assessed and to report back with her findings.
Marjorie Findlay Stone pointed out that the Sandgate Society membership roll was falling and that their subscriptions did not cover the rent. The Society therefore had to fundraise to cover the rent and the membership resented this. They had other projects and calls on their income. ZSV pointed out that the Engine Room was under utilised by the Society and that it was in effect a storage facility for the archives.
ZSV explained that since the appointment of Michael Chalk as caretaker and bookings secretary, enough income was generated from the letting of the Reading Room to cover utility bills, annual expenses, such as PAC tests and Fire Extinguisher maintenance, and the caretaker’s salary and other running expenses. The rental income from the Sandgate Society covers the Insurance premium and inputs into the Sinking Fund for repairs and maintenance.
ZSV explained that Andrew Beggs would also provide an insurance value for the building and that the amount of the current premium may go up. She also confirmed that a broker specialising in charities was used and that the premiums were competitive.
ZSV also agreed to provide a resume of building works undertaken since 2011, together with details of expenditure and grant income.
It was suggested by ZSV that the Sandgate Society might pay the insurance premium and a small amount towards repairs, together with proportion of any large bills for maintenance.
The meeting ended amicably with an agreement to meet again to discuss the market value rental.
Matters arising from ZSV’s report:
ZSV has prepared a schedule of building works, which has been circulated to the Directors and the Sandgate Society. (Copy attached)
Andrew Beggs & Associates have also given an annual rental value of £3,200 per annum for the Engine Room, which is more than the £2,600 currently being paid. (Copy attached)
Since the meeting ZSV has received a copy of the minutes of the Sandgate Society committee meeting on 24th February 2014 at which the current rent was unanimously approved, together with a copy of their accounts, showing an available surplus of £12,718 at 1st January 2015.
A general discussion ensued on the advisability of having a fluctuating rent based upon maintenance needs. ZSV pointed out that the makeup of the Sandgate Society committee had changed since the unanimous agreement of the current rent in 2014. Mr Ken Gorrie noted from the SS AGM on 12th March 2014, “This included a good arrangement in terms of our financial relationship with our Landlords The Sandgate Heritage Trust. An increase in rent had been agreed that will help us work together to secure the future of the Sandgate Society HQ at The Old Fire Station.” This positive affirmation was now being questioned by the current committee. In the light of this, it was felt that a flexible arrangement may be difficult to manage over time.
It was therefore agreed that the rent should be fixed at 75% of annual market rental to be reviewed every three years (75% of £3,200 = £2,400) or today’s market rental plus RPI. In addition, no charge is to be made for committee meetings, two free weekends are to be offered for exhibitions and every Monday evening is to be offered for fund raising activities or meetings. ZSV was to report back to the Board.
Lighting to front elevation: In abeyance until above settled.
Repair and maintenance of barometer: In abeyance
Repair to Reading Room window: ZSV has contacted Tim Ayling, who estimated work at £450. Mr Michael Chalk pointed out that the smaller window needed similar work. We should therefore allow £1,000 plus scaffolding and VAT.
Chairs: Mrs Melanie Chalk has expressed her interest in joining the Board. She has agreed to fund raise for the purchase of new chairs for the Reading Room. The existing chairs do not meet the current Fire Regulations.
Date of next meeting: 10.00am on Saturday 26th September 2015 - TBC