DCOA 23, April 2009 AGM
DIAMOND COMPLEX OWNERS ASSOCIATION
Minutes of Annual General Meeting 23rd April, 2009
Venue: PFA Offices Time: 19:30 hrs
Prior to the meeting a way to allow interested Owners to “patch” in was investigated, but proved to impracticable.1. Certify Quorum – Call to Order – at 19:30 hrs
As a quorum was present, 10 Owners in person, plus 13 Proxies, 50 % of the 46 Owners, exceeding the 30% or 14 Owners requirement, Julian Barnwell called the meeting to order. Mr V Yurchenko came to the meeting, but was not allowed to speak as he owed outstanding dues.
2. Proof of Notice of Meeting
Julian Barnwell stated that the Notice of Meeting was distributed to Owners January, 2009.
3. Adoption of Minutes AGM held 4th May, 2008
The minutes of the AGM held on 4th May, 2008 were unanimously approved and signed.
4. Chairperson’s Report
Overview – Julian Barnwell stated that during the year 2008 there had been little change in Diamond. There were no major emergency maintenance items and the committee composition was constant. Generally Owners are generally satisfied with the common area cleaning and garden appearance. There were comments regarding the lack of swimming pool security and the building rundown appearance. It was noted that the Cyprus change to Euros at the start of 2008 has affected inflation. As last year none of the DCOA committee received any payment or expenses for their work.
Financial – DCOA’s money, as from DCOA’s inception March 2006, is entirely held by PFA. On 15 April 2009 DCOA working assets were € 15,093 (€ 15,008 in 2008). Bank deposits were € 12,005 (€ 9,863 in 2008), plus € 4,088 (€ 5,495 in 2008) outstanding dues, less committed expenditures of €1,000 (€ 350), equalling € 15,093 (€ 15,008 in 2008). In addition DCOA holds € 7,858 (€ 7,350 in 2008) of fully refundable Owner deposits. In addition PFA hold € 10,200 in the painting fund. The total PFA holds for DCOA is:-
Bank Balance € 12,005
Owners Deposits € 7,858
Painting Fund € 10,200
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Total € 30,063
This is subject of discussion in Any Other Business, under “Custody Account”.
Projection of expenditure through end of the year 2009 indicates sufficient funds are available to cover some emergencies and additional Work Authorisations. This assumes the provisional budget is approved, some outstanding dues are be paid and allows for a slight increase in year end assets retention. Such a retention is necessary to pay the common area contractor in January 2010.
Water Cost – is a major concern. Cost of water has risen due to a large cost per metre cubed increase, plus an increase in usage.
Year Cost/M3 Usage Cost €
2006 € 1.9 N/A N/A
2007 € 4.2 610 M3 € 2,547
2008 € 7.6 626 M3 € 4,735
Note:- Due the step tariff system individual users do not see such large increases.
It is estimated that about 10% of the water is used for cleaning. Thus the pool supposedly used say 570 M3 in 2008, which amounts to filling the pool to a depth of 1060 cm in a year. (Pool surface area is 54 M2 [14M x 3.9M]).
Guidelines indicate evaporation rate losses of say 3 cm per day are “normal”, i.e. 600 cm during the 200 days of the summer. The unaccounted 560 cm is equivalent to nearly 300 M3 a year, or roughly half of total water usage. Possibilities are leaks, car washing, unknown external user and these are being investigated. If an Owner observes a vehicle being cleaned PFA should be directly informed.
Options to reduce water costs are, trace any unauthorised usage, using well water, buying truck water, or more dramatically, closing the pool. This is to be a discussed later in the meeting.
Time Payment Graded Invoicing – introduced in 2008 continues to have the desired affect. Most Owners pay promptly.
Payment of Dues – Auditors reported at the end of year 2008 that 39 of the 46 Owners had paid in full. Except for Demetrio it is expected that all others will eventually pay their outstanding dues as they have historically paid. The delinquents as of 14 April 2009 were:
Mrs. Pouchkova A1 – 105
Mr IllettA1 – 103
Mr V Yurchenko A1 -205 / Mr. D M Rogers A1 – 101
Mr. Mrs S & C Andrews A1-3
Mr. Parker A2-206
Mr P Kharabanda A2-3
PFA are in the process of pursuing Mr C Demetrio through the courts. A lawyer has been instructed and papers were sent to Demetrio 15th December 2009 indicating court action is to taken. The Lawyer is to send papers to the court soon. (Note R & N David debt has been written off, about € 731, this Owner having sold and left Cyprus).
PFA was again congratulated on doing a great job collecting money and tracing Owners.
Common Area Contractor – PFA were awarded a continuing contract for the common areas which lasts until 31 December 2009. PFA’s fixed cost for these services had been higher than expected and the DCOA committee is considering options. (Recently PFA has offered to make a fixed quote for the next two years 2010 and 2011).
Maintenance Items
Drains – in Block B have been repaired. Recently a smelly leak has been reported and is continued to be investigated.
Smoking – is prohibited in enclosed common areas. No Smoking notices are being strategically placed.
Dish Aerial Block 2B – is to be removed, target end of April, as it maybe unsafe.
Light Bulbs – have been replaced during the year, but there is a continual challenge with Block 1A.
Owners Participation – it was again reflected that, like last year, the many absent Owners had failed to input into the decisions regarding the Diamond Complex common area. Your chairperson is seeking Owners who would be able to approach other Owners on a one to one basis. Owners have a responsibility to set spending priorities within DCOA’s limited budget, with the goal of improving the common area. This would allow Owners and their tenants to better enjoy their surroundings and cause the value of Diamond to increase.
Property Bubble – in Paphos is continuing except apparently at the high end. The selling market is slow. There are many new builds most of which seem to have ceased work. Owners report that sale of a Diamond flat is very difficult in the absence of deeds. Some Paphos developers are de-staffing.
Deeds Release – is the subject of much activity in Cyprus, as reported in the press. When such action will result in success for Diamond is debateable. Banks hold deeds as security against loans to developers. About € 4 billion of debt associated with about hundred thousand properties, seventy percent of which are Cypriot owned. A recent article concerning deeds issuance was circulated. This thorny subject was raised many times during the meeting. (Note the Cyprus Property Action Group (CPAG) is an organisation dedicated to deed issuance. If an Owner wishes to be updated on this subject please contact CPAG at www.cyprus-property-action-group.net ). In response to the question “Should DCOA sue Aristo for the deeds?” It was stated that one Owner had already taken this route. About two years ago the court found in their favour. This Owner, like others in Diamond, has yet to receive their deeds. It has been reported that in a “Test Case” CPAG are sueing for deeds.
PFA performance – The unanimous view is that the common areas are cleaned and maintained to a very acceptable standard. Many Owners had expressed their satisfaction at continuation of the standard PFA has set. In addition PFA has continued to improve the timely distribution of invoices and other documentation. Julian Barnwell and those present congratulated PFA on their performance.
Registration of DCOA as an organisation is unregistered. It is reported that DCOA may register even without deeds. To be further discussed under Any Other Business.
Public Liability Insurance of Diamond Complex common area is mandated under Cyprus law and DCOA continues to buy such insurance.
5. Secretary’s Report
Carol Price – did not attend. Carol automatically resigns from the Committee having served two years and was thanked for her input.
6. Committee Report(s)
Margaret Riley – indicated that the items she had wanted to mention were already covered.
Garry Owen – also indicated that his items had been covered.
Makis Polatoglou – did not attend.
Colleen Cockerill – did not attend due to medical issues, but provided input:
· The garden could be better tended.
· There were good relations with PFA, but PFA were expensive.
· A notice prohibiting large unwanted items, i.e. furniture from being abandoned.
· Colleen thanked Julian Barnwell for his efforts
7. Agenda Agreement
As there were no comments the Agenda was agreed
8. Audit Report
Committee Members have been send a copy of the Auditor’s Report. No comments had yet been received. As instructed by the Auditor there could be no further discussion of the Report at the AGM as it was being held in PFA offices.
9. Provisional Budget Consideration/Adoption
Julian Barnwell stated that the only firm provisional budget figure was PFA’s services fee inclusive of their insurance and taxes, all other numbers are estimates. The provisional budget covers PFA costs, emergency building maintenance, DCOA administration and minor items. It is noted that water costs are escalating. The provisional budget does not include any major 2009 expenditures, such as painting the outside and inside of the building, however, swimming pool security might be covered.
Provisional budget was unanimously approved and is to be implemented by the Committee.
10. Owners Dues Collection - Resolution
It has been reported Cyprus courts require an organisation to have clear rules regarding debt collection and treat all debtors the same. PFA advised that a lawyer retained they had retained had stated that this is not so. However, it seems prudent to pass a resolution on this subject, just in case.
RESOLUTION – If an Owner is overdue more than one year for an amount of € 500 (Five hundred Euros) or more, the Common Area Contactor must pursue the debt through the courts. The resolution was carried unanimously carried.
11. Building Painting
Painting Fund – has accumulated € 10,200, i.e. 51 advance payments. Requests were made for € 200 in June 2008 and January 2009 from each of the 46 Owners, i.e. 55% contribution. Julian Barnwell expressed concern the low take-up may portend difficulties in collecting all Owner contributions. Unless money was received before committing, DCOA might be completely depleted of funds.
Julian Barnwell proposed that Owner’s cost to paint the building be related to the area of their flat, the same as way common area costs are distributed. The meeting voted to accept this method.
Exterior and Interior Painting – separate indicative ballpark quotes for painting the outside and the inside of the building have been received. Rounded the quotes were:-
Exterior Interior
€ 30,000 € 15,000
€ 15,000 € 6,000
€ 25,000* € 10,000
* Exterior Plastic Masonry Paint
Assuming say € 35,000 expenditure there is a need to raise a total of € 760 from each Owner, about say a further € 400 from Owners who have already contributed. Obviously the amount an Owner finally pay will depend on area of the Owners property and the final costs to paint. All agreed that:-
o The painting needs to also include hole filling and surface maintenance.
o A good quality paint must be specified and a sealant pre-applied.
o To save money the option to paint the front and sides of Diamond and leave the rear of the building was suggested. The Committee is to consider this idea before painting is approved.
o The painting should include other items to make Diamond more appealing, i.e. improving the appeal of the parking area, removing unwanted signs etc.
An Owner stated that a leaking roof which might allow damp to ingress, after the building was painted. Ideally the way to complete the refurbishment is to repair the roof leaks, then paint the outside, before smartening up the interior. This sequence avoids water damage, first to the exterior, the roof is whole, then to the interior, the exterior is sealed. Another option was discussed, completing roof repairs, then the interior and lastly the outside of the building. This way costs would be kept low to start and the corridor “dark corners” be removed soon.
A majority voted for this last option, namely to complete in the order:-
(Clarification – subsequent to the meeting a number of painting contractors confirmed that ensuring roof drainage is essential. This avoids water spilling over the edge of the roof and marking the building sides. Painting the outside of the building and with sealing roof leaks are unrelated. Taking this clarification on board roof drainage will be attended to prior to building painting. Roof leaks are a separate issue).
Roof Drainage – Interior – Outside
Julian Barnwell stated that DCAO has always understood that according to Cyprus Law roof repairs are the sole responsibility of the Owners of the top flats. This had been established by Mike Cole who owns a top flat. It was noted that the removal of the abandoned aerial on Block 2B is a safety issue. Action had to be taken soon. The cost was relatively small, probably less than finding and pursuing the original Owner for payment. At the meeting it was pointed out that there is a “rattling” aerial on Block 1A. It was agreed that this should be removed at the same time as Block 2B was serviced.
One Owner said that Cyprus Law allowed for either top flat Owners to be responsible, or for all Complex Owners to be responsible. Julian Barnwell stated that till now top flat Owners had always paid entirely for Diamond roof repairs. DCOA may not pass a resolution nor perform any action that is against Cyprus Law. Forcing Owners of lower floor flats to pay would be a departure from current practice. Nonetheless a majority of Owners present thought that charging all Owners for roof repairs should be investigated.
It was pointed out that ideally a Block roof should be repaired in its entirety, not piecemeal as is now the case. This reduces the chance of leaks by avoiding a way in for water to enter between adjacent properties. It was agreed that the Committee is to determine if there is a practical way for all top flat Owners to combine and contribute the roof being repaired in one go.
The meeting unanimously approved the painting of Diamond once funds are available. It is intended to request a further contribution to the painting fund in July 2009.