Board of Directors
Regular Meeting
JANUARY 6, 2003

President Chuck Baker called the regular meeting of the Lake Moovalya Keys Board of Directors to order January 6, 2003, at 6:30 p.m.

President: Chuck Baker
Vice President: Chris Chambers
Secretary/Treasurer: Sandy Brown
Board Members: Gary Svider, Sandra Warmoth, Joe Price, Tonya McPherson

Board Members: Russ Derby, Neil Kleine, Joe Hanen, Bob Stroud

Homeowners: Gene Heines, Jack Sweeney
Legal Counsel: John Churchill
Recording Secretary: Becky Braska

Chris Chambers motioned to approve the minutes of December 2, 2002 with the following corrections noted: OTHERS PRESENT (pg 1) "Kinney" should read "Kennedy"; CALL TO PUBLIC (pg 1, Para. 1) "Mr. Heime Means asked to board…" should read "Mr. Heime Means asked the board…"Tonya McPherson seconded. No further discussion. Motion carried unanimously.


Paid Prior to Meeting:
National Bank (Jan 2003 payment) 3110.28
Brooke Water 110.71
APS 1043.74
APS 23.72
Complete Tax Service 475.00
941 Tax Deposit 136.05
Verizon 37.19
Verizon 56.98
River Cities Waste 1710.00
Don Braun 491.60
Sandy Brown Salary

Presented for Approval:
Becky Braska (Jan. 03 Mtg.) 80.00
John Churchill 189.00
Davis Hardware 15.12
PO Box Fees 68.00
Advanced Gate 85.00
Advanced Gate 234.80

Discussion: Mrs. McPherson questioned the bills presented by Advanced Gate. Mrs. Brown explained:
The $85 charge is for one trip charge. Mr. Braun contacted Eric (Advanced Gate) on at least four occasions, requesting that Eric come down to repair the gate. On each occasion Mr. Braun had the power disconnected with the gate propped open when Eric arrived. Eric turned the power back on, closed the gate, and waited at least one hour each time, but no problems were encountered with the gate. Normally Eric does not charge for callouts, but after four unsuccessful trips he felt he had to charge for at least one trip.

Joe Price motioned to approve payment of the bills as presented, with the exception of Advanced Gate. The check for Advanced Gate will be held for one week from the date of this meeting. If in that week there are no problems with the gates, Sandy Brown may release the check to Advance. If the gates become inoperative during the week, the check is to be held until the problem is properly corrected. Tonya McPherson seconded. Motion carried unanimously.

Mr. Baker reported the financial statements for December 31, 2002 are presented un-audited. The checking account balance is currently $22,267; the money market account balance is currently $87,745. The board authorized Mrs. Brown to transfer $10,000 from the checking account to the money market account.

Chris Chambers motioned to approve the un-audited financial statements for the period ending December 31, 2002 as presented. Tonya McPherson seconded. No further discussion. Motion carried unanimously.

The board reviewed the Groundskeeper report submitted by Don Braun for the period of November 29 through December 30, 2002.

Mrs. Brown reported that six lots have not complied with the requirement to connect to the sewer. Five of the six property owners have already contracted with contractors to have the work performed. The remaining property owner, Cynthia Merchant is currently out of the country. The board determined that the association will hire a contractor to hook-up any lots that have not complied within a specified time period (undetermined) and bill the property owner. In the event the property owner does not agree to reimburse the association; the board will lien the property to recover the costs associated with the sewer connection.

Mrs. Brown stated that Bill Woodside will begin painting the bridge rails no later than January 15, 2003.

Mr. Baker reported that $19,980 was retained from Kenko's final payment. Mr. Churchill has written three letters to Kenko regarding drainage issues, and damages to property that has not been corrected. The board reviewed a list of damages reported to Kenko. Mrs. Brown will obtain a copy of the punch list to determine what the contractor has not completed, and report to Mr. Churchill.

Mrs. Brown was directed to have a water truck spray the streets to identify flood areas and report to Kenko. The board wants requested representatives from both the homeowners association and Kenko are when this is done to "hash-out" any disputes regarding liability. Mrs. Brown was further directed to ascertain and document the areas that had drainage problems prior to paving and have not been changed in any way by the paving.

The board discussed a drain that was requested by Mr. Moody. The homeowners association did not approve installation of this drain. Mr. Moody purchased the materials and requested the contractor install the drain. The homeowners association is not liable for the cost of this drain.

The board discussed center markers. Joe Price stated he wasn't aware of any center markers prior to the sewer construction. Jack Sweeney stated his contractor had located monuments prior to the sewer construction, but was unable to locate any after the construction. Mr. Sweeney will attempt to document where the monuments were located prior to the sewer construction.

Mr. Baker directed Mrs. Brown to contact Don Foster to determine if he has received work orders to perform any repair work within the Keys. If Mr. Foster does not have pending work orders, Mrs. Brown is to contact the Buckskin Sanitary District and the contractor to notify that pending problems still exist.

Mr. Churchill was directed to write a letter to the Buckskin Sanitary District notifying that effective immediately the Lake Moovalya Keys Board of Directors requires contractors and utility companies to obtain prior permission before "saw cuts" are made in the roads.

Mr. Baker reported that he is awaiting a bid from T&C Seal Coat to "seal coat" the streets. A seal coat will help preserve the streets. Striping will be completed after the seal coat.

Mr. Chambers reported that one fire hydrant was installed on the bridge by Papago Loop. Mr. Baker stated that the hydrant "looks good". It was suggested that the hydrants be painted the same color as the bridge rails. Mrs. Brown will try to coordinate with Mr. Woodside to have the hydrants painted at the same time the rails are painted. Mr. Chambers recommended having the hydrants painted before installation.

Mr. Churchill advised the board that Clint Wells has filed a lawsuit against the Buckskin Sanitary District, the Contractor, and numerous other to include the homeowners association. Mr. Churchill responded to Mr. Wells attorney that the homeowners association did not contract with the sewer contractor to have the work performed and has no liability. The contract was established and engaged in by the Buckskin Sanitary District board.

Mr. Baker stated that the county has requested a current copy of the associations CC&R's. Mrs. Brown stated that she had provided the County Zoning Department with a copy, but will give them another copy. Mr. Chambers stated that the county inspector informed him that the county is requiring all projects, even if previously approved, to submit a variance request. The inspector stated that the county is requiring the variance request due to the problems encountered in the association, i.e., Glass project. Mr. Baker requested that Mr. Chambers direct Mr. Heberling to contact Mr. Churchill regarding this matter.

Mr. Baker asked why the "dead" palm tree had not been replaced. Mr. Braun was not available to respond.

Mrs. Brown reported that she does have an American Flag to replace the worn flag.

Mr. Baker was to have plans for the "Association Building" for the board to review. Mr. Baker did not have plans drawn up due to differences among board members as to what is needed.

Mr. Baker wants to have proposals for the trash gates, stucco work, the building, and any other projects ready to present at the annual meeting. Homeowners will be given the opportunity to vote on these projects at the annual meeting.

Mr. Baker asked Mr. Churchill about the status of the quit claim deed for the common areas. Mr. Churchill responded that he had not received the "meets and bounds" description from the surveyor at this time.

The board discussed the antenna at the gate.

Joe Price motioned to purchase a longer antenna, disregarding the gate company's recommendation. Tonya McPherson seconded. No further discussion. Motion carried unanimously.

The board received plans to be considered for lots 245, and 216. Construction deposits were not received from either property owner nor were the plans received in sufficient time for the board to review. Therefore, the board will review and make recommendations at the next regular meeting.

Mr. Price discussed having Mr. Parsell examine the bridges while the water levels are down. Mrs. Brown was directed to contact Mr. Parsell and request that he travel to Parker while the water levels are down to physically examine the bridges and make his recommendations.

Mr. Baker stated that Mr. Derby had not had time to obtain bids to replace the wood under the bridges. Mr. Chambers will try to research.

The regular meeting recessed at 7:35 p.m. and the board convened to executive session for the purpose of discussing the Sandy Brown's position as business manager. At this time all guests left the meeting room. The board reconvened the regular board meeting and adjourned at 8:14 p.m.

Becky Braska - Approved 2/3/03 as amended

Submitted by Becky Braska - Recording Secretary

Approved by