Minutes of the Annual General Meeting 2007 of the Community of

Owners of Faro Park Phases 1 and 2 called by the President, Mr Tony Matthews.

Time:              Wednesday, 3rd October2007 at 10:30 am – second call

Venue:           Hotel Natura Palace in Playa Blanca, Yaíza, Lanzarote

At 10:30 AM the President, Mr Tony Matthews, called the Annual General Meeting to order in the second call, pursuant to notifications of 14th September 2007 with the following 

AGENDA

1.  Registration of participants, presentation of proxies.

2.  The President's Report.

3.  The financial statements for the year 2006/2007 and approval, if appropriate, of the annual accounts.

4.  Elections

a .President

b. Vice-President

c. Secretary - Administrator

5.  Proposals from

a. Rose and Bob Armstrong (10):

Garden Area – That all the grass should be removed as it is unsightly and high maintenance and it should be suggested to villa owners that they donate a plant for this area to cut down the costs.  Also, could Señor Canada be asked if he would be willing to donate some picón to re-dress the ground once the grass was removed? (Simple majority)

b. Val Morgan (16):

The expenses for the English television system should only be charged to the participants who requested the installation of the four extra channels. (Simple majority)

c. Mario Ojeda Douillet (26)

The pool area should be enclosed by a fence and gates for security reasons. (Simple majority)

d. Alonso Morillo (28):

That a wall is built and some plants are added on the border between his house and the satellite dish for the English TV. (Simple majority)

e. Roger Stansfield (76):

No owner may serve for more than 2 consecutive years on the board in any capacity. (Unanimous)

6.  Swimming pool. Information, debate and instructions, if appropriate, to the President.

7.  Proposal for the yearly budget and stipulation of annual fees.

8.  Any other business.

1.   Registration of participants, presentation of proxies

Villa nº            Representation:

4                    Meineck proxy to Jackie James

9                    Millard proxy to Tony Mathews

11                  Rubio Plasencia proxy to Tony Matthews

14, 21             Bautista González proxy to Tony Matthews

15                  Bookless proxy to Jackie James

16                  Mr and Mrs Morgan

24                  Highfield proxy to Roger Stansfield

26                  Ojeda Douillet proxy to Tony Matthews

27                  Mr Jesus Martínez Lebrusan

28                  Morillo proxy to Tony Matthews

33, 34, 38, 39  Betancort S.L. proxy to Edward Head

41                  Haigh proxy to Edward Head

44                  Blanchfield proxy to Edward Head

45                  Scott proxy to Anne Head

46                  Wingrove proxy to Edward Head

48                  Page proxy to Anne Head

51                  Mrs Theissen

52                  Mrs James

58                  Mr Magee

59                  Johnson proxy to Roger Stansfield

61                  Martin         proxy to Sam Magee

62                  Mr and Mrs Edwards

63                  Ludvigsen proxy to Edward Head

64                  Whelan proxy to Emma Whelan

65                  Mr and Mrs Head

66                  Blayney proxy to Sam Magee

69                  Paluch        proxy to Tony Matthews

70                  Harvey proxy to Edward Head

72                  Harvey proxy to Edward Head

73                  Herz proxy to Roger Stansfield

74                  Mrs Branford

75                  Mr Koch

76                  Mr Stansfield

77                  Mr Crabtree

78                  Billington proxy to Roger Stansfield

79                  Skipper proxy to Edward Head

80                  Pieper         proxy to Roger Stansfield

83                  Hernandez proxy to Roger Stansfield

85                  Mr and Mrs Matthews

86                  McDonnell proxy to Edward Head

88                  Lee proxy to Sam Magee

89                  Jones proxy to Tony Matthews

91                  Teifel proxy to Sam Magee

92                  Shaw & Smart proxy to Valerie Morgan

95                  McLauchlin proxy to Tony Matthews

102                 Jones proxy to Tony Matthews

The President, Mr Tony Matthews, and the Secretary Administrator, Mr Jon W. Olsen, were both present.

There were thus 12 owners present and 33 proxies had been given, so that a total of 45 owners were present or represented, each with a quota of participation of 0.9804 %, making a total of 44.11 %, this being insufficient to hold the general meeting in the first call at 10:00 a.m.; the meeting was held in the second call at 10:30 a.m.

2.   The President’s Report

The President, Mr Matthews, opened the meeting by welcoming everyone.  He thanked the Owners’ Representatives, Anne Head and Brenda Hargreaves, for their work over the past year, Ian McLauchlin for his work on the website, Sam Magee and Stuart Jones for their work on the English television project and Jon Olsen for his administrative assistance.

Notice boards have been placed around the pool. An amount of € 5.000 has been included in next year’s budget to continue work on the garden area, and a working group should be set up to supervise this.

The change of maintenance providers was not successful and the incoming Board will need to employ a new maintenance company.

The swimming pool was re-grouted and re-filled. This subject will be discussed further under item 6 of the Agenda.

A number of water leaks were experienced during the year all of which have been repaired, one of these being in particular expensive.

The President suggested disposing of the encryption boxes so that all owners will be able to get all TV programmes.  Maintenance of the TV system is included in the proposed budget for next year.

In May the maintenance company reported that the sewage pumps were worn out and replacing them would cost €8,000.  We are currently paying €180 per month to empty the tank.  The President recommended that we stop paying €0.34/m3 for water treatment, and as we have not been having this service since May, we should ask for a refund from Club Lanzarote.  A meeting should be arranged with Mr Cañada to discuss this further.

Copies of the Bye-Laws are available from Jon Olsen in English and Spanish and the Horizontal Property Act is available in Spanish, English and in German.

The Board should consist of a President, Vice President and Secretary.  Any changes to this require a unanimous change of the bye laws.

3.   The Financial Statements for the year 2006/2007 and approval, if appropriate, of the annual accounts.

The Administrator reported that water leaks during the year were mainly responsible for the year-end deficit of €4,433.  A claim has been presented to the insurance company and we have been advised that they will reimburse some of the costs, but not all.  The claim will not be included in the Accounts until the insurance money is received.

Water losses through leaks are of major concern.  Unfortunately there are no drawings available to show where pipes are running.

€12,000 has been transferred to a deposit account to accrue interest.

Collection of “back water” debts has continued through the year.  Alonso Morillo (28) has contested the debt and legal action is being taken against him, with the community paying the court fees.  Several debtors have not been located and one will seek sentences in Court so that future pursuit of the claims can be made.

Val Morgan (16) requested that quicker action be taken against debtors in the future and to impose penalties to encourage owners to pay on time. 

Monthly analysis tests will be carried out on the pool and owners can inspect the reports.  The analysis company will alert the Administrator by telephone/fax if the tests are below standard.  Concerns were expressed from a health point of view about the water quality even though the maintenance company should test the water each time they clean the pool.

The Financial Statements for the year 2006/07 were approved unanimously by the meeting.

4.   Elections

a.  President – there was only one candidate – Anne Head (65).  As there were no other candidates, Anne Head was elected unanimously.

b.  Vice President – one candidate – Sam Magee who was elected unanimously.

c.  Secretary/Administrator – Jon Olsen was elected unanimously for a further year.

5.   Proposals from

a. Rose and Bob Armstrong (10):

Garden Area – That all the grass should be removed as it is unsightly and high maintenance and it should be suggested to villa owners that they donate a plant for this area to cut down the costs.  Also, could Señor Canada be asked if he would be willing to donate some picón to re-dress the ground once the grass was removed? (Simple majority)

€5,000 has been included in next year’s budget to continue the garden project work.  It will be up to the new Board to use the fund as they deem fit.  Teifel (91) have asked whether it would be possible to incorporate a boules court in the garden area.  Other suggestions were the inclusion of a children’s play area and a tennis court.  McDonnell (86) were against the idea of plants being donated by individual houses.  The Administrator remarked that no owner should take it upon themselves to tend the garden or any of the communal areas. 

Voting           :        Against         :        11, 73, 83, 86

                             Abstains        :        63, 88

                             In favour       :        all others

b. Val Morgan (16):

The expenses for the English television system should only be charged to the participants who requested the installation of the four extra channels. (Simple majority)

 54 owners had paid for installation of the English television system.  It was agreed that encryption will be removed so that the system can be viewed in more than one room.   In view of this, Val Morgan (16) withdrew her proposal.

c. Mario Ojeda Douillet (26)

The pool area should be enclosed by a fence and gates for security reasons. (Simple majority).

 The proposal needs to be costed properly.  This subject has been discussed at previous meetings but deemed to be too expensive.  Costings will be obtained and proposals submitted for another meeting.  If a children’s playground is incorporated in the garden area, the pool will certainly need to be enclosed by a fence. This item is referred to the next owners’ meeting.

d. Alonso Morillo (28):

That a wall is built and some plants are added on the border between his house and the satellite dish for the English TV. (Simple majority)

It was asked as to why Alonso Morillo (28) had not complained earlier.

Voting           : In favour     :        11, 28, 59, 61, 89

                   Abstentions    :        26, 27, 44, 70, 79, 88

                   Against         :        remainder of meeting – proposal not accepted

e.       Roger Stansfield (76) withdrew his proposal.

6.         Swimming Pool

When the swimming pool was emptied in January of 2007 for routine repairs, it was detected that there are serious faults in the base of the pool. This may be due to faulty construction or other reasons. The pool needs to be emptied again and that experts investigate the reasons for the large water losses and determines who is responsible .The President asked the meeting whether the pool should be emptied now and a construction engineer instructed to assess repairs needed and costs involved.  Water is being lost each month – August 523m3 at a cost of €1,224 and September 650m3 at a cost of €1,440.  The compensation tank has recently been sealed, but the pool is still leaking.  Sam Magee (58) asked whether arrangements can be made with Mr Cañada that resident owners can use the pool at the Natura Palace Hotel.  It was agreed to close the pool on 1st November with one vote against that of Mrs Theissen (51) was against closing the pool on 1st November and suggested that it should be closed after Christmas.

7.         Budget

The Administrator commented on the general increase in prices and high maintenance costs on Phases 1 and 2 due to the elements.  In particular the street lights on Phase 2 are more exposed than those on Phase 1.

The budget figure for the pool is high because it includes the cost of water and maintenance costs which are allocated on a monthly basis.  200m3 of water will be lost when the pool is emptied. 

A Schedule of Works will be given to the new maintenance company.  

At present the pool and rubbish rooms are cleaned on Tuesdays and 

Fridays each week.  Negotiations will take place with new maintenance 

providers stressing the need for 24 hour call-out facilities.

Pool water loss can also be due to evaporation and the wind.  The pine trees give some protection and this will increase as they grow in size.

Roger Stansfield (76) stated that when the pool is closed, it should be securely fenced for safety reasons.  The lights in the pool do not work when the pool is empty.

General maintenance charges have increased from €13,500 to €21,000 mainly because of the ongoing refurbishment of the street lights and the fresh water distribution system.  In answer to a question from Sam Magee (58) it was stated that the light bulbs used are energy efficient, but they are more expensive.

It was unanimously agreed that the Budget for 2007/2008 be accepted and therefore the annual fees will increase to €78/month or €936/year.

8.         Any Other Business

Anne Head (65) thanked the retiring Board for their work over the past year.

Sam Magee (58) thanked the President and Administrator for the efficiency and professionalism of today’s meeting.

Martinez Lebrusan (27) has built an extension and wall at his property which has been denounced, but not by the community.  He is unhappy that other owners have undertaken similar work. Val Morgan (16) commented that proposals for alterations should have the approval of the President on behalf of the community, and also from any neighbours affected by the changes.

The President thanked the other owners for their support and wished Anne Head every success in her role as President.

The next meeting will be held on Wednesday 1st October 2008.

The meeting closed at 12:35.

Playa Blanca, 4th October 2007

                                                                   Approved by

Jon W. Olsen                                                  Tony Matthews

Secretary Administrator                                    President