Subject: CHINQUAPIN HOA

Neighbors,

Since I wrote to you in early December 2018, there have been new developments that require our attention.

Every year our insurers notify us in late December as to what policies and premiums we are being offered.  As expected, the California fire seasons have caused some insurers to flee the state and premiums to soar for those who have remained in the game.

Our benefits were slashed and our deductible went to 100K for all perils. Our insurance premium in 2018 was approximately 170K. The premium for the renewal with the reduced benefits and higher deductible was approximately 210K. To bring our coverage as close as possible to the previous level required another 177K. After much consultation and even an emergency board meeting during the holidays the board was able to obtain coverage for the property.

Mr. Miles, your board member who handles insurance issues, has adequately summarized the details in a recent update.  I urge you to contact your insurance agent as soon as possible in order to adjust the deductible of your HO6 Policy.  I can assure you I have.

I have been reminded that California and Chinquapin went through a similar insurance “crisis” a decade or more ago. Rates went up and coverage became scarce. Eventually things settled down and so did availability. When there are more providers there is naturally more competition and one can shop. There was only one company of a multitude that would give us additional coverage.  I can also recall occasional “crises” in the medical malpractice field during my years of practice. It is interesting these are always solved with higher premiums and higher deductibles. Hopefully, this situation will settle down as it has in the past.

The second issue to bring to your attention is that we were not able to reach a contract agreement with Mr. Kohler. Subsequent to that he informed the board of his desire to leave our employment in September of this year.  He generously offered to stay until we identified a successor.

Over these past several months we have weighed our alternatives.  These have included performing a search for a new general manager; engaging the services of another local property manager to function as the general manager; or, engaging our own maintenance company to perform the services of general manager.  It is fairly common in the Tahoe Basin among properties of our scope to contract with their maintenance company to provide general management services as well as maintenance.

After careful consideration of the pros and cons of each approach the board has decided on a trial of contracting with our maintenance provider to supply general manager services as well.  We have contracted with Aidan Miles of WMC, to be the general manager for a 6-month trial period. During this trial period, Aidan will be on the property using the Carriage House as his office. We will then reevaluate the situation.  Hopefully, this will be a successful trial. If not, we will pursue the other alternatives.

Thank you for your attention.

Charles E. Quaglieri
President, Board of Directors
Chinquapin Homeowners Association