Evergreen Soaring

Special Board Meeting

February 6, 1997

The meeting was called to order at President Chris Chantrill’s home at 7:38PM. Present were President Chantrill, Craig Kramer, John Gilbert, Jerry Painter and Mike Delaney.

President Chantrill reviewed a letter received from Costello Insurance indicating no hull insurance would be available through them for the year beginning in March, 1997, because of our accident history. The cost of hull insurance for the year ending at the end of February is about $4500.00. He indicated John Daly had talked with Costello to see whether coverage at a higher premium would be available, and the answer is “NO.”

Several comments were made regarding the need to eliminate accidents, regardless of coverage. The Chief CFIG and CFI’s need to make sure members are qualified to fly before signing them off, whether students or experienced pilots. President Chantrill noted that this month has been designated “Bust the Rust” month precisely to bring members up to speed for the upcoming season.

It is usual for commercial operators to rent aircraft “naked”, i.e., no coverage of any kind is provided to the renter pilot, although the operator will be covered, at least for liability. Because of the age of the rental fleet today, many operators do not carry hull coverage, unless the they are leasing the aircraft. All board members agreed liability coverage is necessary for the club and members, but hull coverage may be optional, depending on costs and safety controls.

We are faced with selecting one of three alternatives:

1. full hull and liability coverage from another carrier

2. hull and liability coverage for the Pawnee but liability only for gliders

3. liability only coverage

Cruz Reyes had volunteered to contact people he knows in the insurance business to see what coverage could be obtained. John Daly will also contact other brokers and carriers to see what is available. Only when we know what coverage is available and the cost will we be able to make a choice.

A general discussion followed regarding the pros and cons of full coverage vs. liability only coverage. Because of the agreements the club has with Mike Friend (contract seller of the Russia AS-4 recently purchased) and Jerry Painter (lessor of the 2-33), the club is obligated to carry hull insurance on those ships. The Pawnee, essential for club operations, represents a value of approximately $25,000 we couldn’t afford to lose for any length of time. If liability only was carried, we could save approximately $4500/yr. that could be set aside for a self insurance fund.

The bank used for club checking has offered to provide a $25,000 line of credit that could be used as a source o funds in the event a hull loss was suffered. Should we set aside cash, also? Mike Delaney is working on a club budget based on past experience. We also need to establish both long and short term club goals, such as fleet composition, hangar and clubhouse needs etc.

Decisions needs to be made by February 20 so that coverage can be secured before the end of the month.

The meeting was adjourned at 9:30PM.

Respectfully submitted,

Jerry Painter, Secretary