09 June 2017 — CHS Newsletter 11 — Rising Insurance Costs
Dear Member,
We all complain about rising insurance costs but our management company has seen the premium treble over the last three years.
Insurance Premiums
These are the premiums for the last four years:
* 2014 46,516 (Source — CRO Accounts 2014)
* 2015 62,847 (Source — CRO Accounts 2015)
* 2016 85,000 (Source — Budget 2017 — the Board has prevented me from seeing the actual figure)
* 2017 136,500 (Source — Zurich Insurance — see attached renewal)
We are now paying three times as much for insurance compared to 2014. This is a huge rise and needs an explanation.
If you look at the graph in the attachment (Insurance by Year) you will see that after the owners’ directors took over from the developers in 2010, the insurance steadily decreased. When I was on the Board from 2010 to 2014, we took steps to reduce the insurance claims and premiums came down. After I left in 2014 the costs rose dramatically.
Insurance Claims
There are two major claims which have increased our insurance. There may be other claims but I am barred from seeing company information.
In 2015 an unfortunate woman slipped in the basement car park and broke her pelvis. She was off work for 6 months, has permanent injuries and now works a reduced week. Her claim is based on alleged negligence by the company in not removing oil and/or water on the car park surface. This claim is likely to be settled for an amount well into six figures, the largest claim we’ve ever had. The claimant is an employee of Sherry FitzGerald Lettings, our managing agent.
We also have two outstanding Personal Injury claims from employees for alleged bullying and harassment. Together these two claims are likely to cost another six figure sum.
Budget
At the AGM on 22 April we were asked to approve a budget for 2017 from which our service charges are calculated. The budget for insurance was 100,000 euros. Three weeks later the renewal arrived with a figure of 136,500 euros — see attached.
It is difficult to understand how the Board could get such an important figure so wrong. It casts doubt on the veracity of the rest of the budget. It’s another indication that the Board is losing control of the company’s finances.
Electricity
Previously I informed you that Bord Gais had offered us an alternative quotation for electricity saving 27,500 euro. I went back to our current supplier, Energia, for a competitive quote. They responded with even better prices which will now save us 30,000 on the budget. I signed the contracts with Energia and the lower prices became effective on 1 July.
That’s a 25% reduction on the budget for electricity and we didn’t even have to change supplier, saving 2% off our service charges. This is the sort of work we expect from our Building Manager/Company Secretary. We pay him to get the best value for our money and not to involve himself in the politics of the Board.
Tenants
A tenant has set up a Facebook page for residents of CHS. Most of the residents are tenants and they are in close touch with what’s happening day-to-day: https://www.facebook.com/chsresidents/
And someone has set up a Twitter account: https://twitter.com/chs_update_feed
EGM Proxy Form
The only director who is informing you about what is happening in your company and who is reducing costs is to be removed at the EGM on 27 July.
The Board is determined to remove me as a director. And I am determined to see the accounts and stop the financial meltdown of our company. If you won’t be attending the EGM then please sign the attached proxy form and post or email it.
Regards,
Kevin Fitzpatrick
Director
Custom House Square Management CLG
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