THE GLEN OF
PACIFIC GROVE HOMEOWNERS ASSOCIATION
BOARD OF DIRECTORS MEETING
February 22, 1999
36 Glen Lake Drive
1.0 CALL TO ORDER
2.0 ROLL CALL
Jack Rutherford President
Present
Anna Lorenzen Vice-President
Present
Glen Grossman Secretary-Treasurer
Present
Mark Risley Director
Present
Chuck Adams Director
Present
Joseph Chaffers M C C
Present
Also Present: Wolfgang Haas, Virginia and Jack Capra, Jeff Kane and Phil Coniglio
3.0 AGENDA REVIEW, RESIDENT REQUESTS, CONSENT CALENDAR APPROVAL
The following item was added to the agenda: 7.03 Footbridge
4.0 APROVAL OF PREVIOUS MEETING MINUTES
Motion by
5.0 REPORTS
Delinquency Reports – 2.28.99
Financial Reports – 2.28.99
Bank Statements – 2.28.99
MCC Billing Report – 2.28.99
Motion by Grossman, seconded by Risley and carried, to approve the reports as presented.
The Glen Of Pacific Grove HOA
Minutes
6.0 UNFINISHED BUSINESS
Painting: Board to approve suit against Saleh and hire an attorney. DEFER.
Architectural Control proposed guidelines: DEFER.
Insurance Policy: Motion by
*Note: Jeff Kane made a presentation regarding insurance policies to the Board and handed out a packet. A narrative will be provided to the Board at a later date. DEFER.
Service on Gate: Four bids will be forthcoming. DEFER.
Allocation of Committee Functions: Anna Lorenzen’s Flow chart to be reviewed by Board members. DEFER.
Yearly Association Policy Packet: Any necessary reports to be sent out in 45 to 60 days before the beginning of the Association’s fiscal year. CLOSED.
Termite Extermination: Orkin has done a survey of the Glen’s needs. MCC will provide a past report from Casner DEFER.
Light Motion Detectors: DEFER.
ECHO Seminars: Risley and Adams volunteered to go to the February 27th seminar which will address legal concerns. Motion by Grossman, seconded by Lorenzen and carried unanimously, to cover expenses of Board members who wish to attend an additional seminar on April 10th which addresses reserve studies and maintenance. Adams, Grossman and Risley expressed interest in attending. CLOSED.
Dennis Sullivan License Number: License was supplied and
MCC will file it.
The Glen Of Pacific Grove HOA
Minutes
Diseased Tree Removal: Discussion of a special assessment over three years to fund removal of diseased trees and to monitor the trees. Referred to Gardening Committee to study situation and report back to Board.
*Note: Virginia Capra was appointed to Gardening committee. DEFER.
7.0 NEW BUSINESS
Lawyer Contracts: Motion by Grossman, seconded by Risley
and carried, to retain Gray and Battey for civil action against Saleh Paint
Company. Motion by Grossman, seconded by
MCC Contract: Discussion regarding having MCC more involved with daily activities. Joseph explained the Association would have to pay for any increased services. Joseph also explained there is an increase in the accounting fees of fifty dollars per month and that MCC’s rates have not been increased since 1991. No motion made. DEFER.
Law Book: Grossman requested authorization to obtain the
1999 supplement to “Advising California Condominium and Homeowners
Associations,” a law book put out by Continuing Education of the Bar (CEB) at
a cost of $95.00. Motion by Lorenzen, seconded by
Pon & Stiff: Where is the audit for
1997-1998? MCC to report back. DEFER.
The Glen Of Pacific Grove HOA
Minutes
Civil Code Section 1368 Compliance: The February 1999
ECHO Journal contained a discussion of section 1368 and a suggested resolution
and form for complying with requests from sellers for documents and
information. Motion by Grossman, seconded by
8.0 CORRESPONDENCE
General Correspondence:
8.02 Board Correspondence:
9.0 ADJOURNMENT
9.01 Set Next Meeting Date, Time and Place:
9.02 Adjourn:
Addendum to item 6.03 of minutes from Board Meeting of
Presentation by Jeff Kane of KBK Insurance
Jeff is a partner with KBK Insurance in
Jeff discussed the various coverage:
Bodily Injury -- If the Association is sued for bodily injury, our policy provides up to one million dollars for each occurrence but not more than a total of two million per policy year. However, we do have an umbrella policy of three million so we actually have coverage of up to four million for each occurrence subject to an annual limit of five million dollars. We do not pay any deductible.
Medical Payment -- Traveler's will pay up to $5,000 for medical payments without regard to liability. We do not pay any deductible. If someone alleges we should pay for their medical bills, we must turn those claims in to KBK.
Directors & Officers -- With the exception of insurance, Traveler's will defend and cover the Board for any wrongful acts. Traveler's will not defend and will not cover the board for any allegation regarding the sufficiency of any insurance. In other words, if the Board or any individual member is sued for purchasing earthquake insurance or for not purchasing enough earthquake insurance, Traveler's will neither provide us with an attorney nor will it cover any judgment against us. We are on our own!
Property Damage -- Subject to a $5,000 deductible, we have blanket protection up to eight million dollars. The coverage extends to the interior walls, cabinets, and fixtures but excludes furniture and personal property. It also covers new building ordinances. There is no coverage for land and the lake. The "occupancy clause" (which negates coverage for unoccupied units) applies only to buildings, not to individual units.
Earthquake -- Eight million dollars blanket policy. The deductible is ten percent of the replacement cost of the damaged building subject to a minimum $25,000 deductible. We may not be covered in the event of damage just to a garage (because the replacement cost may not exceed $25,000).
We have no coverage for damage from landslide, flood, rockslide, or mudslide. Jeff says no standard company is writing landslide insurance. He suggests hiring a geologic expert to advise us on how to stabilize unstable areas. Unfortunately, it appears that we have received contradictory recommendations from experts hired in the past (see Terratech's 1995 report).
Jeff will get back to us with answers to the following questions:
1. Our policies are "claims-made policies." What coverage do we have for prior acts?
2. Does the D&O provisions cover the Board for acts by the Association manager? What if Joseph misappropriates Association funds? Will Traveler's pay $25,000 for that event?
3. On page 9 of the Businessowners Property Coverage, is coverage for glass shown on the Declarations?
4. On page 16 of the Businessowners Property Coverage Discretionary, what is meant by "we may elect to defend you?" Does this mean that the Insurer can choose not to defend us? What kind of insurance coverage is that?
5. On page 9 of the Commercial General Liability Coverage Form, what is meant by "temporary workers?"
6. Who is an employee within the meaning of employee on page 9? Is the Association covered for loss caused by a Board member, officers (who except for the president, need not be elected to the Board), non-board- non-officer committee member, or volunteer who uses their personal vehicle for Association business?
7. Jeff will see if there are any standard companies writing landslide coverage.