Meeting convened at 7:05 m, Nancy Stull presiding

PRESENT: Board Members Nancy Stull, Ken Russell, Daun Botta Pillo, Marianne Shotwell-Sowers, Mark Simard, Larry Kosterewra, George Emmett

1:  Reconstruction of reportable events at special board meeting of August 20, 2003, at which no minutes were taken.

TIME:  Subject board meeting convened at 4:00 PM, Aug. 20, 2003.

PRESENT:  President Nancy Stull, Ken Russell, Daun Botta Pillo, Mark Simard, Larry Kosterewa, Marianne Shotwell-Sowers, guest Paul Kenner representing Snapper, Shuler Kenner.

ABSENT:  George Emmett

SUBJECT: Unexpected withdrawal by Mutual of Enumclaw of its favorable bid for Mariner’s Cove insurance coverage

RECONSTRUCTION: (as drawn from the memory and consensus of directors who were present):  Daun had elicited from Mutual of Enumclaw a favorable bid for Mcove’s insurance coverage, based on our 5-year claim record.  Rice, then our insurance broker, had failed or neglected to provide new competitive bids.  A Rice employee then gratuitously informed Mutual of Enumclaw of an older insurance claim on the property by Excel, Mcove’s developer.  Basing its action on the outdated claim, Mutual of Enumclaw withdrew its bid.  Invited guest, Paul Kenner of Snapper Shuler Kenner Insurance, presented a proposal from his firm to broker Mcove’s insurance at terms equal to or better than those from Rice Insurance.

Disc:  Except for presenting facts as requested, Daun, who is employed by Snapper Shuler Kenner, abstained from discussion.  It was unanimously decided to sever the relationship with the Rice firm, in order that outdated insurance claims by the original developer not be appended to MarCove’s 5-year record.

MOTION:  by Larry, Marianne 2d, to move our insurance business to Snapper Shuler Kenner.  Voting yes: Mark Simard, Marianne Shotwell-Sowers, Larry Kosterewa, Nancy Stull, Ken Russell.  Abstaining:  Daun Botta Pillo

Meeting of August 20, 2003 then adjourned.

2.  (Resumption of special meeting of Wed., Sept. 24, 2003)

Discussion, insurance:  Our present insurance coverage is based on replacement costs roughly estimated at $63 per square foot. It appears unlikely that our buildings and facilities can be duplicated for that amount at today’s construction prices. Informal replacement cost estimates obtained by board members range to in excess of $I00 per sq. ft.  This would reduce our insurance coverage to less than full value, violating Mcove’s bylaws and the board’s fiduciary responsibility to maintain insurance coverage at replacement value. 

Increasing our coverage to replacement value will require a more accurate estimate of present-day building costs.  Consideration of a dues increase to meet the prospective increase in premiums may become necessary.  Applied-for credit for sprinklers installed in Phases II and III could significantly reduce such an increase.  Daun and Larry will more closely estimate square footage for insurance purposes.

Disc: Board of Directors letter to the membership re the above: Mark Simard distributed copies of a letter he had written, directed to the membership, announcing and explaining the board’s majority decision to eliminate the position of on-site facilities administrator.  He requested that it be read and signed by the entire board for prompt distribution to the membership. 

MOTION: by Mark Simard, Ken Russell 2d: That the board read and sign the proposed letter for distribution to members.

DISC:  Three board members objected, stating they had not anticipated such a letter and wanted time to read, consider and amend it.  After discussion, a fourth member agreed that time for consideration should be granted.  The MOTION was withdrawn.  It was agreed that all members would have five days to submit any suggestions for changes or inclusion in the board letter.

Meeting adjourned at 8:45 PM.

Submitted by:

George Emmett, Secty.