APC President’s Quarterly Report- Ending September 30, 2010
FINANCIALS:
I am pleased to report that APC is in a relatively good financial situation. Despite the lean summer months, we ended the Quarter with a net income of 480,000 pesos for the year 2010 compared to a net deficit or loss of 212,000 pesos for the same period in year 2009. The total income from APC dues for the year 2010 was 3.642 million pesos compared to 3.172 million pesos in 2009. These sums reflect strictly the income from APC dues and do not include additional income such as from the sale of property, fees for vehicle identification cards, bulk garbage pick up and other services.
While increasing revenues in 2010 we were also able to curtail costs through optimization of worker output. The total expenses for the same period were 3.16 million for 2010 compared to 3.4 million in 2009, a savings of a few hundred thousand pesos despite an added expense of 160,000 pesos in 2010 compared to 2009 for employee benefits and severance costs.
For the year 2010, the net additional income amounts to about 135,000 pesos that include 68,000 pesos from the sale of a dilapidated truck. For the same period in 2009, the net additional income was about 191,000 pesos, including 131,000 pesos from the one time extra-ordinary assessment to cover previous shortfalls.
SECURITY:
As I reported in the last Quarterly report the deployment of security personnel was optimized and a communication network of ham radios with a dedicated frequency and a transmission station was established. The communication Network now consists of 15 radios/persons and has proved its usefulness and efficacy in foiling attempted thefts and robberies in Costambar. Recent pattern of thefts and attempted thefts in Costambar suggest that we have a relatively long period of calm or lack of successful thefts followed by a burst of attempted and successful robberies. It also appears that these episodes or bursts of thefts are “inside jobs” conducted by individuals either familiar or somehow connected with the target properties or by people living temporarily in Costambar. The longest recent period of calm that we have had in Costambar was 4 months and 17 days (Sandro’s data) that was interrupted by a burst of inverters being stolen and cars broken into. In most cases, however, our security personnel working with the national police were able to apprehend the alleged culprits.
Sandro and I had a very productive meeting with new Chief of Police (who happens to be a lawyer by education) for Puerto Plata and were assured of the continuing collaboration with and the support of the National Police.
Edenorte and Electricity:
I am displeased to inform that in the past 2 weeks the service of electricity in Costambar has deteriorated. First, Edenorte has instituted a decrease in the supply of electricity to Costambar resulting in a daily cut-off of 8 hours instead of the 4 hours that had been the norm until the last 2 weeks. Secondly, the stability of the supply appears to have deteriorated.
We have had two meetings with the new Director of Edenorte who took charge recently. In the first meeting attended by Sandro and myself and facilitated (interestingly) by the new Police Chief, we had general discussions about the problems of Costambar, the need to replace underground cables with their aerial counterparts, and how much it would cost. In the second meeting, attended by myself, Alex (board member), the owners several apartment complexes and hotels, we discussed the problem of the daily cuts in electricity. We were informed and shown data that indicate that at present there is a loss of 44.3% of the electricity provided to Costambar by Edenorte. This loss is the difference between the total amount of electricity sent to Costambar and the total amount of electricity billed.
This loss apparently comprises of a loss of 14% in underground transmission lines (as opposed to a norm of 1%) and a loss of 30% due to theft. And we were told by the new Director in no uncertain terms that unless the loss ratio decreases below 30% Edenorte will not decrease the daily cuts from 8 hours presently in effect.
In an attempt to forestall further deterioration in the supply of electricity and reduce the number of hours of daily interruption, we have worked up a joint plan with Edenorte to identify the sources of energy loss other than through transmission lines. This plan will be put in action in the next few days.
Also, Edenorte gave an estimate of the cost of replacing the underground cables by areal counterparts. It amounts to about 27 million pesos of which 24 million is capital costs and 3 million labor costs. Such an investment would go a long way in solving the electricity problems of Costambar by substantially reducing the transmission loss and averting line problems.
There are various options for funding such an investment that include advancing 24 million pesos to Edenorte, who in turn would return the investment over a period of 2 to 3 years as they receive money for energy consumption by individual users. The Director and we agreed to wait until the return of absentee property owners to explore further such options.
JUNTA DE VECINOS:
We have had several meetings with the “representatives” of the Junta de Vecinos of Costambar (J VC) under the aegis of a Commission created by the Ayuntamiento of Costambar. The mission of the Commission, consisting of representatives of APC, JVC, and Governmental authorities, is to address the “problems” of Costambar, reach a unified position, and press appropriate Government agencies/ministries to implement solutions. Despite the questionable legal status of JVC we decided in the interim to collaborate with them to form a common front on issues of maintenance and repair of the streets of Costambar and the infrastructure and cleanliness of the Costambar beach.
Several meetings with JVC are in the works in the coming days to forge a common strategy. In our discussions we have insisted and intend to continue insisting that all property owners including those sympathetic to JVC and presently not-paying the APC dues must pay their fair share if indeed they are serious about solving the “problems” of Costambar.
We are having similar conversations with Vallarino's representatives and intend to continue exploring possibilities of mutual cooperation on issues of common concern.
Other Issues:
STREET LIGHTS:
Five new streetlights were installed along the Beach road. Liana has graciously volunteered to take charge of streetlights and oversee the maintenance of the streetlights in coordination with the Bethania, the APC Administrator.
COSTAMBAR ENTRANCE ROAD:
The work is going on slowly and in fits and starts. Hopefully it will be done before most of you return to Costambar. Keep your fingers crossed.
APC OFFICE:
We had a breakdown in the office computer system, resulting from an electrical overcharge and malfunction that lasted more than a week. The problem has been resolved. Bethania, our Administrator, deserves a lot of praise and thanks from our part.
Respectfully Submitted by:
Yash Aggarwal- APC President
Tue Mar 22, 2011 10:05 am