Board of Directors
Regular Meeting
March 3, 2003

President Chuck Baker called the regular meeting of the Lake Moovalya Keys Board of Directors to order March 3, 2003, at 6:10 p.m.

President: Chuck Baker
Vice President: Chris Chambers
Board Members: Bob Stroud, Russ Derby, Neil Kleine, Joe Price, Tonya McPherson

Secretary/Treasurer: Sandy Brown
Board Members: Joe Hanen, Sandra Warmoth, Gary Svider

Homeowners: Al McPherson, Steve Lassere, Trish Wikoff, Howard Wikoff, Jack O'Connel, Jack Sweeney
Homeowner and General Manager Applicant: Don Kaufman
General Manager Applicant: Richard DiNolfi
Legal Counsel: John Churchill
Business Manager: Debora Schlosser
Recording Secretary: Becky Braska

Joe Price motioned to approve the minutes of February 3, 2003 as presented. Neil Kleine seconded. No further discussion. Motion carried unanimously.

Advanced Gate Systems $450.00
Churchill & Frame 364.50
Becky Braska February Meeting 80.00
Earl Schmidt 1500.00
Don Braun 556.38
Desert Works Computers 755.55
Woodside Painting 1380.00

Prepaid Bills for Approval
Complete Tax Service $475.00
Verizon 667-4484 37.54
Verizon 667-2840 57.04
River Cities 2/2003 1710.00
National Bank 3110.28
Brooke Water 70.84
APS 19.01
APS 1043.94

Payroll - Business Manager
Debora Schlosser 193.93
IRS Taxes 941 136.05
IRS Taxes 940 6.80

Mr. Baker explained some of the charges. Earl Schmidt, has requested 50% ($1500.00) to cover the cost of the materials to build the trash bin gates; the balance will be billed upon completion of the project. Desert Works Computers $755.55 is for the purchase of the Association computer, this item was approved at the February 3, 2003 meeting. Woodside Painting, $1380.00 was previously approved and funds retained from Kenko Construction covered the cost of having the bridge rails painted.

Ms. Schlosser informed the board, the bills presented were available for review if members wished to examine.

Chris Chambers motioned to approve the bills as presented. Neil Kleine seconded. No further discussion. Motion carried unanimously.

The board was presented with financial statements for the following periods: period ending December 31, 2002; period ending January 31, 2003 and February 38, 2003. Due to the untimely presentation of the financial statements to the board, this item was tabled until the next regular meeting.

Patricia Wikoff asked why the Association lots have been restricted to "car" parking only. Mrs. Wikoff stated that since the board designated the lots be used for cars only, no one uses the lots. Mrs. Wikoff felt allowing boat trailers parking in that area helped with the congestion on many of the streets. Mr. Baker explained that at the last annual meeting, the majority of homeowners wanted car parking only. Due to complaints received by the board the past few months, there will be a written vote at the up coming annual meeting to formally allow homeowners to decide the use of the those lots.

Mrs. Wikoff inquired about the business manager position, she wanted to know where to go with problems. Mrs. Wikoff also inquired as to the hiring of the business manager, she stated she had submitted a resume, but had not been contacted. Mr. Baker informed Mrs. Wikoff that her resume was received of the position was filled. With respect to complaints, the general manager (currently vacant) will be the contact person; for administrative questions or requests i.e., gate clickers, post office box keys, etc.,, the Business Manager, Debora Schlosser is the contact person. Mr. Baker stated that a website is currently in the making. Once the website is up and running, Association news will be posted and regularly updated, and homeowners will have the ability to email board members directly with questions and concerns. Mr. Wikoff asked if there was a list of board members with contact numbers. Mr. Baker stated that there is not a list, homeowners will have to contact board members via email.

The Wikoff's expressed their concern over several matters, their primary concern is security and safety. Several homes on their street have been burglarized; in another situation, a neighbor was having a party, "apparently some kids showed up to the party uninvited and a fight broke out; kids were throwing rocks and bottles in the street", according to Ms. Wikoff.

Mrs. Wikoff asked if the board has considered installing security cameras. Mr. Baker explained the board has considered cameras at the gate and the trash bins. It was determined that cameras would not be a cost effective way to resolve some of the issues such as the ones brought up by the Wikoff's.

Jack O'Connel stated he is experiencing a problem with his neighbor on lot 230. Mr. O'Connel wanted to know if it is legal to build an eight-foot high, 20 feet long dog kennel in the five-foot setback. Mr. O'Connel stated he did not think it was legal and it should not be there. The kennel is next to Mr. O'Connel's front door and the dog is a nuisance. The homeowner of lot 230 has sufficient room on the other side of his lot, but did not want to locate the kennel on that side because it would be next to his front door, according to Mr. O'Connel. The board did not know if the homeowner had violated any zoning regulations. It was suggested to Mr. O'Connel that he contact the appropriate authorities if the problems persist.

Mr. Sweeney discussed the inspection of Mr. Coykendall's request from the last meeting. Mr. Sweeney stated that Mr. Coykendall did not know exactly what he wanted. Therefore, Mr. Coykendall is reconsidering his plans.

Mr. Baker explained the job description for the general manager position. Mr. DiNolfi asked to whom the position would report. Mr. Baker stated the position would report to the board. Mr. DiNolfi asked if the board would be providing procedures and guidelines to handle various situations. Mr. Baker stated the board would work with the general manager to develop procedures and guidelines.

Mr. Baker excused the applicants explaining the board would call each person in for a personal interview with the board.

Mr. Baker informed board members that two interviews would be conducted at this time; the board will recess the regular meeting and convene to executive session to discuss the interviews later in the meeting.

Mr. Don Kaufman was called back to the meeting for his personal interview.

Mr. Kaufman gave a brief introduction to the board. Mr. Kaufman has belonged to the Association for the past twelve years. Mr. Kaufman stated he appreciates what has been done to improve the area, but realizes there are areas that need to be addressed. Mr. Kaufman stated he feels the job would be a challenge, but he cares about his neighbors and the Association. Mrs. McPherson asked what would be the most challenging part of this position for Mr. Kaufman. Mr. Kaufman stated that he felt late evening problems; especially during holiday weekends would be the biggest challenge. In the past, he stated he has been able to address situations during holiday weekends with success. Mr. Kaufman stated he has been a street monitor.

Mr. Baker expressed to Mr. Kaufman his concern with having someone who lives in the Keys fill this position. Mr. Baker feels it would be more difficult to deal with some situations because of the fact that you are dealing with your neighbors.

Mr. Chambers asked if Mr. Kaufman would have a problem receiving calls late at night or very early in the morning. Mr. Kaufman stated he would not; he receives calls at 6:00 a.m. and sometimes as late as 1:00 a.m.

Mr. Kaufman asked what the salary would be for this position. Mr. Baker stated at this time the board was unsure what the salary for this position would be. Mr. Kaufman stated he is willing to do the job for three months at no charge. This would give him an opportunity to evaluate and "get a feel" for the position. He stated the two tools he would need to do the job are a list of homeowners and a street map with addresses. Mr. Price asked what Mr. Kaufman would charge after the three months. Mr. Kaufman responded that he really needed to analyze the position to determine what all is entailed before he could say, but felt that it would be less than $800 per month (Mrs. Brown's current salary).

The board asked Mr. Kaufman is he would have a problem maintaining a log of his activities. Mr. Kaufman stated that he would not have a problem keeping a log.

Mr. Baker explained that the board may or may not be making a decision this evening, but Mr. Kaufman would be notified when a decision is reached.

Mr. Kaufman was excused and Mr. DiNolfi was called in to the meeting for his personal interview.

Richard DiNolfi introduced himself to the board and discussed his background.

Mr. DiNolfi stated he has thirty-two years experience in construction, fire protection trade. He is the Homeowners Association President for Keys II. In Keys II he ensures contractors compact and repair the streets, and listens to and addresses complaints.

Mr. DiNolfi stated he is available on major holidays and weekends. He stated that there will be approximately 30 days a year that he will be unavailable because he and his wife take a couple of vacations a year.

Mrs. McPherson questioned what type of problems Mr. DiNolfi encountered in Keys II. Mr. DiNolfi stated he deals with dog problems and nuisances; problems with the [pink] motel next to Keys II; the biggest problem in Keys II is trespassers at the beach and launch ramp.

Mr. Price asked what salary range Mr. DiNolfi felt was appropriate for this position. Mr. DiNolfi asked if a fuel or vehicle expense was going to be supplied. The board responded that reimbursement for expenses would be provided. Mr. DiNolfi stated that $800 per month would probably be the minimum. Mr. DiNolfi stated it was difficult to say how much without knowing the actual demand and scope of the position.

Mr. Baker stated that $800 was basically a base that could be re-negotiated once the person selected for the position "got a handle" on the demand and duties of the position.

Mr. Baker stated the board would require this position to maintain a log of activities. Mr. DiNolfi stated that would not be a problem. He would need a map with street information and the authority from the association to enforce violations.

Mr. Price asked who would cover the position in his absence, should he be selected. The board discussed Mr. Price's question. The board could not expect someone in this position to be available at all times. In the absence of the general manager, the board would have to arrange to cover his/her duties. The board will address this issue when the time comes.

Ms. Schlosser asked if the association would have a telephone line installed at the general manager's home. The board had not had time to consider if this would be necessary. Mr. DiNolfi expressed his willingness to use his home telephone for Association business.

Mr. DiNolfi stated, "Once the parking lines are painted and signs are posted it will make a big difference in the level of enforcement." Mr. DiNolfi was excused from the meeting.

Ms. Schlosser reported that she is waiting for quotes on Insurance for the upcoming insurance renewal. Ms. Schlosser stated the board will need to discuss the current directors liability policy, if the current policy is changed, the board will need a binder to cover prior acts. The two agencies submitting quotes are Ramco Calzone and Beaver Insurance.

Ms. Schlosser forwarded a letter to APS authorizing relocation of the light in front of Mark Warmoth's home. Bob Stroud signed the letter because Mr. Baker was out of town. The light will be moved three to four feet near a transformer. Mr. Warmoth requested the relocation because the light blocked his garage.

Discussion regarding homes violating the sewer connection deadlines. Currently the association has three homes that are not connected to the sewer; Smith (lot 21), Merchant (lot 60) and Morken (lot 67). Buckskin Sanitary District has notified each homeowner that they have until March 7, 2003 to comply with the order to connect. If not in compliance, the District will address the issue.

The board discussed seven other lots that have sewer connections, but did not repair and compact the street material to an acceptable level. The street was dug up, but only dirt was put back in. The property owners will be notified of the noncompliance and given a specific time- frame in which to repair the streets. If the repairs are not completed within the specified time frame, Chris Chambers was authorized by the board to repair the streets. The repairs are to be completed prior to T & C Seal Coat applying a seal coat to the roads. The Association will bill the homeowners for the cost of the repairs.

Mr. Baker reported that he received three bids from T&C Seal Coat.
1) Basic Seal Coat $21,389.00
2) Double Layer Seal Coat $36,000.00
3) Slurry Seal $42,882.00
T&C said they would like to do the work as soon as possible.

Joe Price motioned to accept the first bid from T&C Seal Coat for $21,389.00; the work is to be done at the contractor's earliest convenience. Russ Derby seconded. Discussion: Ms. Schlosser was directed to notify T&C Seal Coat of the board's decision and schedule a date to lay the seal coat. Once a firm date is set, Ms. Schlosser is to notify the seven property owners, discussed above of their noncompliance. The homeowners will be given a specified period in which to have the repairs completed. For example if T&C Seal Coat is available in fourteen days, the property owners will have 10 days to have the repairs completed; if T&C is available in twenty one days, property owners will have 15 days to comply. No further discussion. Motion carried unanimously.

Mr. Baker stated he is working with La Paz County to do the striping.

Mr. Stroud reported that Dave from Buckskin Sanitary District came out and took pictures of the problems during the recent rains. Mr. Baker stated there is still a pond near the corner of Papago and Apache. Mr. Derby asked a homeowner in that area if he would give the Association permission to run a six-inch drain line through his property. The property owner agreed. Mr. Derby said there may be problems installing the drain line in that area due to existing utility lines and a palm tree. The palm tree is in the middle of the utility easement. The tree belongs to the association. Mr. Price suggested running two six-inch drain lines versus one if it is going to be done. Mr. Baker wants to have the line(s) installed prior to the seal coat.

When bids are obtained to have the drain line installed, Mr. Baker will conduct a telephone poll of board members to obtain authorization to have the work completed.

Mr. Price stated the existing drain lines are blocked and need to be cleaned out. Ms. Schlosser will contact Don Braun and inform him that the board has requested that he clean the existing drain lines.

Mr. Churchill was asked about the status of the quitclaim deed property. Mr. Churchill responded that he is still waiting for the meets and bounds description. He will have his office contact the surveyor tomorrow.

Mr. Derby asked why the remaining dry fire hydrants have not been installed.

Joe Price motioned to give Buckskin Fire Department a twenty-day written notice to complete installation of the dry fire hydrants or refund the association for the entire cost expended to date. Neil Kleine seconded. No further discussion. Motion carried unanimously.

Mr. Churchill received the Kenko "punch list", but is waiting on the surveyors for the markers. Mr. Price asked Mr. Churchill if the association is in danger of losing the ability to sue Kenko because of the amount of time that has past. Mr. Price stated he thought the time frame to sue was one year. Mr. Churchill stated the association is in no danger of losing the ability to file suit, the time frame is much longer than one year.

Ms. Schlosser contacted Steve Stanton Construction to request a bid for the slump stone, but as of this date he has not responded.

Preliminary drawings from Howard Parsell should be complete within the next two weeks.

The board discussed setting a date for the Annual Meeting.

Joe Price motioned to hold the Annual Meeting at the Board of Supervisors Board Room, April 19, 2003 at 9:00 a.m. Russ Derby seconded. Discussion: Neil Kleine stated that he and several other Keys residents will be attending a wedding in Orange County on that weekend. No further discussion. Motion carried unanimously.

The board discussed agenda items and information for the Annual Meeting.

Street (paving) problem will be discussed. The board hopes to have the seal coat and striping completed prior to the annual meeting.

The board discussed the Simpson home (lot across from Circle K) construction started without board approval.

Joe Price motioned to remove board members Sandy Brown and Joe Hanen from the board due to excessive absences. Russ Derby seconded. No further discussion.

The board recessed the regular meeting and convened to executive session at 8:05 p.m. for the purpose of discussing general manager candidates; Mr. DiNolfi, Mr. Kamiski (previously interviewed, Mr. Kaufman, and Mr. Kennedy (previously interviewed).

The board reconvened to the regular meeting at 8:15 p.m.

Joe Price motioned to offer the position of general manager to Richard DiNolfi with a starting salary of $800 per month and reimbursement for expenses. Russ Derby seconded. Discussion: Mr. Baker directed Ms. Schlosser to notify Mr. Kaufman, Mr. Kamiski and Mr. Kennedy that another applicant was selected for the position. No further discussion. Motion carried unanimously.

Mr. Baker appointed Tonya McPherson as Secretary/Treasurer replacing Sandy Brown.

The board reviewed plans submitted for Spencer (lot 47), The board could not approve due to noncompliance with CC&R's of setbacks. In order to approve the radius of the setback on the northeast corner must be verified. As presented the plans showed the house encroaches the setback.

The meeting adjourned at 8:30 p.m.

Rebecca A. Braska - Corrected version approved 4/7/03

Submitted by Recording Secretary - Rebecca A. Braska

Approved by