As we approach another AGM it seems timely to update you on developments within Fase 1 community at Sol Andalusí. The AGM will be held on Saturday 17th March 2012.
I had prepared a series of blogs which I had intended to publish every day next week but there have been some unpredicted developments which I think you will find of great interest. A meeting was held on Monday 20th February and a brief report can be found below along with “edited highlights” similar to that which I had intended to blog next week. The report below is also in your pack of AGM info coming in the post.
Monday: Budget past, present and future
Tuesday: Debtors
Wednesday: Medical
Thursday: Legal actions
Friday: AGM, More about proposed budget and explanation of community fees
But first:
Manolo, one of our gardeners, is going to retire in May. Not only has he worked extremely hard for us over the last 7 years, but has done so, always with a smile. I hope you will make a contribution to a collection for a retirement gift for him to show our appreciation. Ricardo will collect on site, and if it is not viable to transfer funds, then perhaps you could make a pledge to Ricardo and pay in cash when you next come so it isn’t left until the last minute? I implore you to work out a way, as he really deserves a thank you.
Could you do it now?
The Tipping Point
Please read the following which introduces some of the topics, and anticipates questions arising from the AGM. Without doubt this will be the most important meeting we have had to date. This is our chance to “put our house in order ”.
If you cannot attend the AGM, it is essential that you register your proxy vote*
Community fees received over the year have been insufficient. Sol Andalusí S.A. has made no contribution for their residential and commercial properties nor those owned by their direct and extended family. Phase II has not met its shared payment for Ricardo, our swimming pool and lifeguards, nor for our doctor and nurse. Community debtors have not increased significantly but not having Sol Andalusí S.A. and Phase II contributing puts immense pressure on us.
Community fees are reduced in the proposed 2012 budget but will never be reduced further while we have the excessive utility costs in the Central Building. The refusal of Sol Andalusí S.A. to accept more of the Central Building costs continues to be a humililating and frustrating burden.
Unaffordable energy costs in Central Building
At a recent meeting with Sol Andalusí, with lawyers present, we handed over an updated technical engineer’s report which illustrates why Sol Andalusí SA should increase their contribution to all energy costs in the Central Building. We invited Sol Andalusi to start by paying their share of the current gas bill of €24,000.
Mr. Luis Martínez declined and said that similarly Sol Andalusí S.A. were unable to pay the current electrical bill of €30.000,00. (NB the electricity invoice is in Sol’s name and the VAT is deducted from their returns. We refuse to pay the electricity bill under these conditions, and we have commenced legal action against Sol Andalusí S.A. for this reason.)
Change of ownership
Mr. Luis Martínez stated that:
· Sol Andalusí S.A. has an outstanding debt with its Bank for €20m.
· The Bank will appropriate 102 properties in Phase II including 9 properties in Phase I with a “Dación en pago” (in lieu of payment) in other words liquidate their outstanding debt before the Bank repossesses.
· The Bank will also acquire all the commercial properties from Sol Andalusí S.A., but would let SA rent and manage the business perhaps with an option to buy back in three years time.
· Nothing is signed and negotiations continue between Sol Andalusí S.A. and the Bank; a decision is expected within six months.
Efforts must be redoubled to distance ourselves from Sol Andalusí S.A: to take control of our environment, generally in the complex and specifically in the Central Building. The Community will organise and offer practical support to enable each central building apartment to:
Ø Install its own electric hot water boiler, to eliminate the enormous monthly gas bill ;
Ø Install its own air conditioning unit utilising the existing ducting and eliminate the tremendous electrical cost of maintaining the cooling tower, The Community would:
Ø Negotiate with the electricity supplier to provide directly to individually metered apartments
Ø Negotiate with the water authority for direct invoicing to each individual user within Phase I, and the installation of more water meters.
Ø Refuse to pay for irrigation water invoices until we are informed who is connected to the well, who uses it and where, and who is paying to water the football pitch.
Emergency Additional Payments
To keep our community afloat we have proposed a lower budget but we also seek 3 additional payments which I hope you will approve so that we may bail ourselves out of our current dire position.
It will cost you today but reduce your community fees over the year and set us up for the future
1.
To galvanise the pursuit of debtors who have been choking our cash flow for years, we need funds for legal expenses, which would eventually be recovered. (see Agenda)
2.
We must, unfortunately, reduce our staffing level by two. This year salaries and associated insurance and social security costs took up over 60% of our income which is completely unacceptable. The proposed extra payment covers the dismissal compensation (see Agenda).
3.
Pending agreement and installation of our own water boilers, the extortionate gas bills must be paid as this is a legal obligation. To avoid disconnection in the immediate future, I seek a further one off extra payment from all the properties in the “Central Building” (see Agenda) for the payment of six months gas bills.
Don't forget to come back on Monday for the first instalment of Things you should know before the AGM
Don't forget to come back on Monday for the first instalment of Things you should know before the AGM
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