Board of Directors
Regular Meeting
MAY 12, 2003

President Chuck Baker called the regular meeting of the Lake Moovalya Keys Board of Directors to order May 12, 2003 at 6:02 p.m.

President: Chuck Baker
Vice President: Chris Chambers
Board Members: Joe Price, Russ Derby, Gary Svider, Bob Stroud, Joe Maxwell, Bill Risen, Trish Wikoff

Board Members: Tonya McPherson, Neil Kleine

Guests: Jack Sweeney, lot 197, Al Moroff, lot 178, Gary Cosper, lot 173
Legal Counsel: John Churchill
General Manager: Richard DiNolfi
Business Manager: Debora Schlosser
Recording Secretary: Becky Braska
Groundskeeper: Don Braun

Chris Chambers motioned to approve the minutes as presented for April 7, 2003. Russ Derby seconded. No further discussion. Motion carried unanimously.

A guest reported that J.D. Liggett offered the association use of a buoy. The board directed Mr. DiNolfi to contact Pam Liggett (J.D.'s wife) regarding the buoy.

Homeowner addressed the board regarding RV hookups. He was told he could not hook up his RV at any time, yet his neighbor had their RV on the street hooked up. The homeowner wanted to know why this was allowed and why the violation was not sited. Mr. Baker explained that the association recently hired Mr. DiNolfi as General Manager. Mr. DiNolfi is responsible for identifying these violations. Mr. DiNolfi stated, during his patrols he did not see this particular violation. Mr. DiNolfi noted that the motor home is not currently parked in the street, but he will watch for any such violation in the future.

Ms. Schlosser reported the current balance in the checking account to be $42,965.39 and the money market account to be $55,152.29. The board directed Ms. Schlosser to transfer $20,000 from the checking account to the money market account.

Joe Price motioned to approve the unaudited financial statements for the period ending April 30, 2003 as presented. Russ Derby seconded. No further discussion. Motion carried unanimously.


Prepaid Bills for Approval
T&C Seal Coating $42,882.00
Verizon 667-4484 114.92
Verizon 667-2840 72.16
River Info 395.00
River Cities 1710.00
Mike's Contracting 1250.00
Becky Braska 240.00
APS 1043.94
Brooke Water 178.83
T&C Seal Coating 750.00
Complete Tax Service 475.00
National Bank Loan 3110.28
Lemon Tree 140.00
Tipton Auto 40.00
R&D Maintenance (Rich) 842.99
SCF Work Comp 310.00
Don Braun 769.92
Lemon Tree 152.18

Bills for Approval
Russ Derby 510.00
Parker Office Supply 106.75
Radio Shack 108.70
Davis Building 101.16
Davis Building 127.24
Chad Campbell 54.11
Advance Gate System 85.00
Advance Gate System 138.50

Payroll - Business Manager
Debora Schlosser 734.38
IRS Taxes 941 179.17
AZ Tax 21.63

Russ Derby motioned to approve the bills as submitted. Joe Price seconded. Discussion: Mr. DiNolfi was directed to breakdown the lots represented on Mr. Derby's billing for clean up. The association will then recover these costs from the homeowners or responsible party. No further discussion. Motion carried unanimously.

Mr. Sweeney asked the board to consider setting up a petty cash fund for Mr. DiNolfi to use for incidental expenses. The board will review the amount necessary and procedures to ensure accountability.

The association paid for street patching in front of the following homes 8710, 8719, 8748 and 8768 on Hopi and 8875 on Papago. The cost was $150.00 per lot. The board will need to determine who is liable for the cost of the repairs. Kenko will be back charged if it is determined they are liable. Homeowners will be billed if the repairs resulted due to inadequate work performed by contractors hired by the homeowner.

Mr. Churchill commented that Kenko was sent a letter along with a copy of the punch list on March 24th. As of this date Kenko has not responded.

Ms. Schlosser reviewed the Business Manager's report for April 2003.

During the month the association computer crashed. Most of the data was restored. An auto backup system was established for the Quick Books program.

Annual meeting notices were sent to homeowners. The notice included proxies and past due notices.

After several attempts the insurance company provided loss runs on April 28th. Information was forwarded to Beaver Insurance. La Paz Insurance has not yet responded. State Farm (Vince Gill) has relocated. The board directed Ms. Schlosser to contact AJS Insurance Company and Farm Bureau Insurance for quotes.

An audit of the construction deposits was completed. The accounts are reconciled and balance with the bookkeeper.

Homeowners are all in QuickBooks; balances are currently being set up.

The gate board was cleaned up. Seventeen (17) names were removed. Letters were sent to homeowners not currently on the board. Four homeowners have responded stating they wanted their names on the board. Ms. Schlosser reported that Mr. Lastra will not do name plates one at a time. He requires that several plates be done at once. Ms. Schlosser located a company in town that will do the plates as needed, but the charge is more than what Mr. Lastra is currently charging.

Joe Price motioned to authorize Ms. Schlosser to have "Things Forever" do the nameplates for the gate board. Russ Derby seconded. No further discussion. Motion Carried unanimously.

Ms. Schlosser asked the board if Vista Del Monumento homeowners could have their names on the board at the gate. The board responded that Vista Del Monumento homeowners who are paying for trash service ($150) would be permitted to put their names on the board. Ms. Schlosser noted that she did not have a list of current homeowners for Vista Del Monumento, and therefore could not bill these homeowners for trash service. Ms. Schlosser was directed to contact the County Assessor's office for current information.

Ms. Schlosser reported problems with formatting posting the minutes on the website. Chuck Baker directed Ms. Schlosser to fax the minutes to River Info and they will post to the web site.

Ms. Schlosser reported that she is in the process of implementing a new "*" code for the gate. This code will be given to emergency agency only. Utility companies will be provided with one clicker to open the gate. Additional clickers will have to be purchased by the utility companies.

Ms. Schlosser advised the board that Liz from Complete Tax Service has requested the board purchase a self-inking stamp for the return address.

Ms. Schlosser was directed by the board to pay the Annual Fee to Buckskin Sanitary District.

Ms. Schlosser was directed to contact Steve Jackson to perform the backflow test being requested by Brooke Water.

The Board reviewed and discussed the Groundskeeper report for the period of March 30,2003 through April 29, 2003.

The final tally from the Annual Meeting regarding parking on the association lots are as follows:

53 votes for parking of both cars and trailers for a maximum of seven (7) days
9 votes for car parking only
7 votes for trailer parking only

Mr. DiNolfi recommended the board establish fines for parking violations and provide him with a ticket book to post on vehicles violating the seven-day maximum. Mr. DiNolfi stated that he could tag and log vehicles to monitor the length of time vehicles are parked.

Vehicles parked on the lots will have to be identified with a particular lot number. The board discussed several ways to mark vehicles that would identify a particular lot number.

Mr. Chambers will contact Jason to have the signs redone. Mr. Churchill will provide Mr. Chambers with the legal language for the sign. Mr. Braun recommended the board send a letter to homeowners notifying them of the outcome of the vote.

Ms. Wikoff volunteered to do the Association Newsletter.

The board discussed the street striping. Mr. DiNolfi marked several of the streets. Mr. Baker feels it would be best for the board to visually inspect the striping marks prior to finalizing the striping. Mr. Churchill stated he did not feel sixteen (16) feet is adequate. Mr. DiNolfi said that the State of Arizona states that whoever signs off on anything less than twenty (20) feet will be held liable. Striping will begin at the first set of houses.

Joe Price motioned to change the striping from sixteen (16) feet to eighteen (18) feet. Chris Chambers seconded. Discussion: The striping will dovetail in at the bridges. The eighteen foot mark will be eighteen foot clear, not centerline; discussion regarding cul-de-sacs, no decision made regarding cul-de-sacs. Motion carried 5-3. Yea votes: Joe Price, Joe Maxwell, Chris Chambers, Russ Derby, and Bob Stroud. Nay votes: Trish Wikoff, Bill Risen, and Gary Svider.

Mr. Baker questioned Mr. Churchill regarding the status on the boat ramp. Mr. Churchill responded he is still waiting for Brooke Water to respond. Mr. Derby contacted Bud Graham, he did develop the ramp for the subdivision when it was built, but later conveyed the land to the water company.

The last fire hydrant will be installed tomorrow. The board discussed flooding the streets and clearing the drains when the hydrants are tested.

The board discussed bridge signs. Mr. Braun felt the signs should be metal when replaced.

It was determined the problem with the gate phone is the actual phone lines.

A battery backup is on order for the "Out Gate". The battery should resolve the recent problems with the out gate.

The board discussed the signs that need to be replaced, it was determined the following signs should be replaced:
Ø Complex sign at the entrance
Ø Caution sign at the gate
Ø Dogs Leashed sign
Ø Warning AZ Code Vehicle
Ø Household Trash signs (2)
Ø Transfer Station hours and location
Ø No Wake signs (6)
The "No Wake" signs are to be placed on the sidewalls of the bridges (large sign placed at the up river entrance) and on the buoys.

The board discussed quotes for new buoys. Mr. DiNolfi reported he found a buoy with a solar strobe light for $126.00.

Gary Svider motioned to purchase two buoys with lights at $126 each. Bob Stroud seconded. Discussion: The old buoy will be moved inside the canal and the new buoys with the strobe lights will be placed at each river entrance to the canals. No further discussion. Motion carried unanimously.

Discussion regarding street repairs. Mr. DiNolfi is to ensure that repairs are compacted properly and filled with black concrete and slurry sealed.

Mr. Chambers reported that Sergeant Alan Nelson, of La Paz County Sheriff's Boating Division informed him that the canals cannot be made "one way". The canals are federal waterways and as such, the association cannot dictate their use.

Mr. Stroud asked if the board had made a determination regarding the drainage problems. Mr. Stroud stated that the pipes currently hooked to his neighbors drain lines are inadequate to resolve the problem. Mr. Stroud wants to know the board's position on the situation because he is at the point he is going to begin proceedings if nothing is done. Mr. Stroud had the street surveyed and the street flows directly into his driveway. Since the association installed speed bumps the situation has become worse. Mr. Baker requested Mr. Stroud obtain an estimate to have the necessary repairs completed.

Ms. Wikoff reported that a gray Dodge Van with Nevada license plate "667MAE" had been spotted sitting in front of 8831 Apache. The occupants did not enter the house, but did sit on the porch. She said that the situation was very suspect. Ms. Wikoff feels the subdivision would be well served by the installation of surveillance cameras. Ms. Wikoff provided the board with information and prices on surveillance cameras. The VCR is $400.00 and cameras ranged in price from $69.00 to $150.00. The board will review the information provided and discuss at the next regular meeting.

Nominations opened for President: Chris Chambers nominated Chuck Baker for President. Bob Stroud seconded the nomination. Russ Derby motioned to close nominations for President. Chuck Baker was elected to serve as the Association President.

Nominations opened for Vice President: Russ Derby nominated Chris Chambers. Joe Price seconded the nomination. Russ Derby motioned to close nominations for Vice President. Chris Chambers was elected to serve as the Association Vice President.

Nominations opened for Secretary/Treasurer: Chris Chambers nominated Trish Wikoff. Russ Derby seconded the nomination. Gary Svider nominated Tonya McPherson. No second. Trish Wikoff was elected to serve as the Association Secretary/Treasurer.

Joe Price motioned to appoint the following individuals as authorized check signers for the Association's checking accounts (National Bank): Board members, Charles Baker, Chris Chambers, Russ Derby, and Bob Stroud, and Business Manager Debora Schlosser. Chris Chambers seconded. No further discussion. Motion carried unanimously
Russ Derby motioned to establish a petty cash fund for Richard DiNolfi to use for incidental expenses in the amount of $200.00. Joe Price seconded. Discussion: The board designated the petty cash fund to be used for supplies only. Mr. DiNolfi must keep receipts and/or invoices for expenditures and an outline of the what the expense was used for. The petty cash fund is not to be used for services, i.e., contract labor, no matter how small the cost of the service. No further discussion. Motion carried unanimously.

Ms. Schlosser was directed to provide each board member with copies of the new bylaws. The board members will review and approve/disapprove at the next regular meeting.

Guard service for Memorial Weekend is scheduled. The board discussed the need to have the streets striped prior to the holiday weekend, to help control the large crowd anticipated.

The board discussed remodeling of the guard shack. Joe Price was asked to provide a design for the structure for review at the next meeting.

The board discussed lots that need to be cleaned up. Mr. DiNolfi was directed to note the lots that need to be cleaned and the Association will notify the homeowners in writing.

The Board adjourned the regular meeting at 8:00 p.m. and convened to executive session.

Rebecca A. Braska - Approved as amended 6/2/03.

Submitted by Recording Secretary - Rebecca A. Braska

Approved by