Final urgent call for funds - Demorilo to finish at end of contract

Dear OH5 Owners

We take this opportunity to inform you that Demorilo will cease all services at the end of the current contract (end of September 2013).  According to Demorilo’s own accounts the OH5 debt reached just over 2,900 euro and they feel that it’s unsustainable to manage the complex, as so many owners were not paying.

While some owners in our complex have taken issue with Demorilo in the past, they remain popular locally and manage 11 complexes. We have spoken to the Committees of many and they are satisfied. The facts of the matter means that in the current economic crisis with Demorilo out of the picture, it will be very hard to find another professional management company willing to take on the complex and even individuals will show caution. Moreover, individuals either demand money up front or paying exactly on time, which is something we have not been able to do until now due to the volume of non-payers.

As the debt is mounting we are forced to start limiting services. Demorilo have been financing our complex for the past few months, so to avoid more mounting debt, we negotiated cheaper prices for August / September 2013 at 800+ euro per month (including sewage, pool maintenance, gardening, basic admin and cleaning) instead of 1480+.  Considering that the cost of the sewage disposal is now 400 euro per month alone due to the forced new system involving an increased frequency of disposing sewage we had to adopt, which includes stamps from Nicosia, the rest of the services are in reality being subsidized. The temporary fee will however mean we will receive limited and reduced services.

As a Committee, we gave strong warnings to all owners on the Blog and by email in July. Moreover, a number of owners were contacted individually and sadly the response was not as good as we hoped for regarding payments. We did however get a positive response from the usual core of responsible paying owners, but this was unfortunately not enough to pay the debts. Apart from a list of regular persistent non-payers, which has always caused the maintenance challenges (Quality, Palm View, Absolute all in debt), a new set of owners started not to pay (some are even resident in the complex) and this has of course caused the extra damage, which may affect all of us. This lack of funds in turn also meant that we could not start the sewage repairs that were voted on at the AGM in May 2013.

At this juncture, all Committee members will discuss this new development as a matter of urgency. Owners should be aware that services might well be affected as a result. There are only limited funds to work with at present, however all incoming funds will be used to cater for critical services such as the sewage (now more expensive than before) and the Swimming Pool. The last Electricity Bill was paid by Grant Holmes and we still have a few weeks before the next one.

We welcome the individual input from fully paid owners that have supported the OH5 community until now, as we are in a critical situation and they have the right to influence what happens from here on.

We advise all owners not to pay any money into the Demorilo Account any more.

Currently we have no funds and debts to Demorilo (mentioned above), Insurance and water Irrigation. Utility bills will come in soon and we risk even Demorilo stopping services sooner if we cannot pay at least something towards the debt.

Despite what may have passed, this is an opportunity to clear the decks, let bygones be bygones and come together as a community of caring owners. All owners with outstanding debts now have an opportunity to show their good will to the community by depositing into the Committee Account (details attached) by 1st of September 2013. As bank transfers take a few days, simply send details of your deposit to this email address. For owners with large debts a minimum deposit of 500 euro is expected, thereafter we can create a payment plan. Owners with lower outstanding payments, we just ask to bring your account up to date until the end of August. If you are experiencing financial difficulty please make contact with us and we will arrange something, however in all cases we need to see a token of good will.

Owners that do not show a token good will and have outstanding debts, will be placed on a list of non-payers, then contacted by someone from the Committee or a Credit Agency. The list will be shared with all fully paid owners owners, as everyone paying regularly has the right to know who is causing such harm to our complex.

In closing, please act quickly, as this is a matter of urgency.

OH5 Committee

Demorilo Office Summer closing over bank Holidays

Advice to OH5 Owners

Please be advised that the offices of Demorilo Holdings, both in Larnaca and Oroklini will be closed on the below dates, which incorporate the national bank holiday of Assumption Day (a religious event):- 

• Wednesday 14th August Closing from lunchtime
• Thursday 15th August Closed 
• Friday 16th August Closed

The Demorilo offices will re-open as normal on Monday 19th August.

Should you need to contact Demorilo in the event of an emergency,  dial the Larnaca office number (00357- 24400343), which will be diverted to the out of hours phone.

Concern for Utilities

Dear OH5 Owners

Further to our recent communication which urged all Owners to bring their accounts up to date due to a low level of funds and looming Utility costs in addition to the costs of ongoing services.

At this juncture the the utility bills have arrived which all owners can download here below: 

• Page 1
• Page 2
• Page 3
• Page 4 
• Page 5

The total bill is 821.33 euro. The Lions share of the cost is Block B which amounts to 571.26 euro. Block B operates the Pool, however the amount is still high compared to last summer and in view of the fact EAC have reduced Electricity costs. We have asked Demorilo to investigate the matter.

Meanwhile, some owners living in the complex on a full time basis in addition to others visiting the Complex for holidays are using the services and not contributing. All of these owners will be contacted in the next couple of days in an assertive way. All means to recover funds are being considered.

In closing, we kindly remind all owners to bring their accounts up to date as a matter of urgency to avoid a cut to Utility services. 

The OH5 Committee

Sad news concerning our Head Gardener

Dear OH5 Owners

It is with deep sadness and regret that we write to advise you that Richard Brown, Head Gardener for Demrilo passed away 19 of June, aged 29 years. At the present time the cause of death is unknown.

As you can imagine the entire Demorilo team are in a state of shock and upset at this tragic loss.

The Demorilo offices, in Larnaca and Oroklini will remain closed for business on Thursday 20^th June. The Oroklini Office will also be closed on Friday 21^st June in addition to Monday the 24th of June. 

We greatly appreciate your understanding and patience at this very difficult time.

If any owner has an emergency please call the office on +357 24400343 and it will be diverted to someone managing the line. 

UPDATE
A fund raising evening was held Friday 28th June 2013 to raise money for Richard.

The Committee considered to contribute, however due to low funds it was decided that ore personal contributions would be appropriate.

The Committee would  like to take this opportunity to thank all owners that already contributed to the cause.

OH5 Committee

Urgent request for funds

 Dear OH5 Owners

We kindly request all owners to bring their accounts up to date with immediate effect.

The balance of accounts is alarmingly low. Income is required urgently to cover ongoing utilities, maintenance charges and to ensure the general upkeep of the complex.

Owners that do not contribute promptly, penalize other owners in the complex. To illustrate this point, with the lower fixed charges in place now (compared to previous years) it is possible to reduce the monthly fee, however due to the non-paying rate, the fee has to stay higher than necessary to cover the lack of payments coming in.

Moreover, the non paying rate impacts on other areas as follows:

• Limits our options with regards to services, as we can only work with companies that will accept irregular and late payments (including insurance).
• Our capacity to negotiate costs with suppliers.
• We cannot set up direct debits to pay utility costs, due to the fact we cannot be sure there will be money in the account. If direct debits are returned charges are incurred.
• We need to fix tiles, drainage, painting, plumbing and many other general maintenance jobs, which often owners request, however without the funds it's simply impossible.

As a result of this somewhat vicious circle created by non or late paying owners, the OH5 Committee will take all reasonable measures to secure funds for the benefit and best interests of the complex as a whole.

If an owner reading this message is unsure of their funds owed or is experiencing difficulty to pay please contact Alison York from Demorilo on:

• Telephone: +357 24 644995
• email: creditcontrol@demorilo.com

For owners in difficulty, the Committee is willing to set realistic payment plans, however non compliance, avoidance or refusal will result in assertive action.

We want to avoid any impact on utilities and the next payment for Insurance, however we can only manage the money that comes in. It is not naturally sustainable or realistic to expect the Chairman or other Committee members to pay from their own pocket for Utility and Insurance bills any longer.

The OH5 Committee

AGM main Action Points - originally sent by email 23.5.13

Copy of email sent to all owners on the 23rd of May.

Dear OH5 owners

With reference to the AGM held on the 6th of May, we would like to first apologize for not getting in touch earlier, however Grant had to travel to Dubai and then Italy on business and the follow up was also delayed.

Minutes have been drafted and are currently being checked. These will be posted in due course on the OH5 Blog http://oroklinihills5.blogspot.com/

First and foremost we would like to thank all owners that cared enough to attend the AGM personally, especially those who flew in specially. Meanwhile, we thought you would all appreciate a brief overview of the outcome:

Details

Date: 6th May

Time: 11:00hrs

Location: Lithos (very quiet and we were the only ones there – only water served)

Attendance: 12 OH5 people present and 14 apartments represented with 4 proxy votes.

Committee

A temporary Committee was elected

Chairman: Grant Holmes

Treasurer: Brian Walton

Member: Reg Swallow

Member: Malcolm Price

Note: The committee agreed to stand only until the end of September at the point the Demorilo Agreement ends.

Main Action Points

1. Communication: Many owners present expressed the stress of over communication by email by some owners and the volume of exaggerated complaints, which were realized upon visiting the complex. All agreed in principle that future communications should be kept to the Blog, positive, collaborative and productive.
2. Solutions: It was determined that in future all owners should focus on a solution based approach, as to criticize or complain was destructive, it provided no help, solutions or way forward. Only by focusing on solutions with owner collaboration could we progress as a complex.
3. Demorilo: All agreed to maintain the Demorilo agreement until it expires at the end of September 2013, thereafter the situation should be properly evaluated with new tenders sent by 1st September 2013 (all comprehensive and serious proposals are welcome. Meanwhile, Grant Holmes will seek to negotiate to reduce the Demorilo cost yet further.
4. Sewage: The sewage issue was discussed and all owners unanimously voted on the least expensive quote (previously indicated). A follow up will be sent out in due course.
5. Insurance: Issue discussed and a copy of the current policy was agreed to be posted throughout the complex (done).
6. Public Toilets: All agreed the outside toilets should be kept open in the summer months, then closed 1st December – 1st of March.
7. Reporting: All agreed a reporting procedure was required. This will be set up via the Blog and automated.
8. Swimming Pool: Flaps urgently required (already ordered), Net needed (already in place and donated by Demorilo), more loose tiles needed repairing (others previously fixed – pending new quote), One cover necessary (ordered).
9. Lighting: Times to be changed to 7pm – Midnight to save on electricity cost. Some bulbs to be removed (every other one) to save electricity cost in Car Park area.
10. Blocked drains: Letters to be distributed to all residents of OH5. Also a sign recommended. Drain-pipes are to thin, so all residents must adopt best practices.
11. Non-payers: Main cause of current price is to cover the effect of non-payers (fact) and not the actual cost of the operation. No owners have the right to tell others t=not to pay. All assertive means available will be taken to collect funds. Demorilo to report to all owners quarterly fees paid, fees owed and balance.
12. Trusted Traders: A couple of Owners suggested a trusted Traders list could be posted on the OH5 Blog. This was warmly welcome.
13. Accounts: Brian Walton will oversee accounts. Each quarter a balance of accounts will be posted on the Blog. Owners that require more detailed information should request to Brian Walton, who will arrange for owners to see the accounts personally with Demorilo. It was suggested by Brian that Andrew N could audit the accounts.
14. Blog: The Blog will become the main means of communication. The existing Blog already features the most comprehensive information of a complex that any committee is offering in Cyprus we know of. It has long since answered many of the frequent questions repeatedly raised in the multiple emails sent in the past. Grant Holmes will yet further develop the concept in due course.

New OH5 Committee

See Minutes, voting and updated Action Points on the left hand column. 

Sewage Update - Pending proposal

Dear OH5 Owners

We would like to inform all owners that on Wednesday, April 3rd 2013, as a Committee we delegated the task (by email) of analyzing all the various quotes to repair the sewage plant and improve the situation (including sewage distribution) to the two owners that were dedicated to this task. We asked them both to formally make a formal proposal, as they initially raised the issue and made the complaint. We vowed to forward their proposal to all owners in order to decide by vote, as the investment is likely to be significant.

We took this decision as both above-mentioned owners reported the challenging situation we face concerning sewage issues in our complex (common to many complexes in the area, as we are not on the main sewage mains) to the Environment Agency on a European level, which naturally affects all owners. Moreover, the detail in the quotes and input became extremely complex and was out of our professional capacity to analyze in addition to the fact the 2 people in question did not want to follow the advice of our professional management company. This in essence took the matter out of our hands and out of the direct influence of the local Oroklini council who initially supported us, until the sewage issue was reported. In short our complex has been singled out above all other complexes in the region for a common problem and our options have been severely compromised, meaning the only options available would be expensive at a time when funds are low partly due to recent events, instability and the economic crisis in Cyprus. 

Until the date of this post we have not received any proposals whatsoever and the deadline for all motions for the AGM on the 6th of May has also passed.

This communication was simply made to inform all owners of the prevailing situation. A copy of the original owners in question is available on request. 

The OH5 acting Committee