LAKE MOOVALYA KEYS, INC.
Board of Directors
Regular Meeting
JUNE 2, 2003

CALL TO ORDER
President Chuck Baker called the regular meeting of the Lake Moovalya Keys Board of Directors to order June 2, 2003 at 6:08 p.m.

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

ABSENT
Secretary Treasurer: Trish Wikoff
Board Member: Gary Svider

OTHERS PRESENT
Guests: Jack Sweeney, lot 197, Al Moroff, lot 178, Scott Coykendall, lot 198, Al McPherson
Legal Counsel: John Churchill
General Manager: Richard DiNolfi
Business Manager: Debora Schlosser
Recording Secretary: Becky Braska

MINUTES
Joe Price motioned to approve the minutes as presented with the following corrections: page 5 paragraphs 1, 2, and 3 should read "Elected" versus "Appointed". Russ Derby seconded. No further discussion. Motion carried unanimously.

FINANCIAL STATEMENTS
The board discussed past due accounts (60 days or more). Ms. Schlosser was directed to contact Eleanor Kaufman regarding lot 60 (Cindy Merchant) past due amount of $315.00. Ms. Schlosser was directed to write Kurt Northrup a "nice letter" regarding his past due amount of $615.00. Mr. Churchill was directed top lien lot 240 (Brahman) immediately for past due amounts. The board agreed to reverse late fees for lots 10, 166 and 238.

BILLS FOR APPROVAL

Prepaid Bills for Approval
Verizon 156.40
APS 17.29
APS 21.99
APS 1043.94
Buckskin Sanitation 106.21
Buckskin Sanitation 106.21
Buckskin Sanitation 322.45
Buckskin Sanitation 322.45
Brooke Water 227.00
SCG Work Comp Renewal 141.00
Rolyan Buoys 1189.06
National Bank 3110.28
Property Taxes 443.25
River Cities 1710.00

Bills for Approval
Bulldog Lock 4.00
Office Supplies 26.17
Staples 81.58
La Paz Awards 47.24
CSW (Guards) 840.00
Advance Gate 85.00
Moore Construction Deposit 750.00

Payroll - Business Manager
Richard DiNolfi 863.65
Don Braun 739.91
Expenses 70.66
Debora Schlosser 4/16-4/30 356.45
Debora Schlosser 5/1-5/15 348.83

Russ Derby motioned to approve the bills as submitted. Joe Price seconded. Discussion: Buckskin Sanitary District only billed for two assessments, it is unknown why the association was only billed for two assessments. The original quote for the gates was $3400.00. Additional costs incurred were due to the additional panels the total cost of the gates is now $5001.00. The following is a breakdown of the gate costs to be added to the bills for approval: DD Painting Inc. $1900.00 and Earl Schmidt $1601.00. Other bills added to the bills for approval are: Becky Braska $160.00 (May and June Meetings) and Buckskin Fire Department $76.28. No further discussion. Motion carried unanimously.

CALL TO PUBLIC
Scott Cokendall, Lot 98 - 8611 Moovalya Drive, informed the board that the County determined the front of his house to be on Moovalya Drive. Mr. Cokendall requested the board approve his proposed dock and seawall. Mr. Cokendall stated that the width from dock to dock will be 38' wide. The existing shoreline bends in to the bridge approach at 30'. Bill Risen asked if there s any expected change in water flow, since this part of the canal is fed directly from the rive. Chuck Baker stated he did not feel a change in flow would affect the seawall and dock.

Neil Kleine motioned to approve the plans contingent upon scale drawing being submitted to the board and final approve is obtained prior to construction. Russ Derby seconded. Discussion: The 30' return must expand to 38' feet from dock to dock as soon as possible as deemed by a qualified engineer. No further discussion. Motion carried unanimously.

Chris Chambers motioned to approve the requested setbacks subject to final approval when scaled plans are submitted: Navajo and Yaqie 5 feet, and 10 feet on Moovalya. Joe Price seconded. No further discussion. Motion carried unanimously.

BUSINESS MANAGER'S REPORT
Letters to Vista Del Monumento residents ready to be mailed.

Ms. Schlosser received and posted the new name tags from Things Forever./

Ms. Schlosser was directed to provide a list of all outstanding construction deposits to Mr. DiNolfi, in order for Mr. DiNolfi to monitor jobs that are in progress.

GENERAL MANAGER'S REPORT
Mr. DiNolfi contacted River Cities Waste regarding their definition of "Household Trash". Representatives of River Cities stated any item that is non-toxic is considered household trash. All hazardous materials, large appliances, and tires are not considered household trash; items such as these should be deposited at the transfer station.

Mr. DiNolfi reported that the street striping should be completed this week.

Three lots were cleaned up.

The channel buoys will be sent when the company receives the payment.

The primary concerns during the Memorial weekend involved children on ATV's and golf carts.

Chuck Baker spoke with Jim Shipley and Art Irwin regarding telephone line installations. Verizon will not put up a cash deposit prior to performing work. If the homeowner or contractor will not provide a cash deposit, mandatory certificates of insurance naming the association as "Additional Insured" will be required prior to commencement of work.

GROUNDSKEEPER REPORT
The Board reviewed and discussed the Groundskeeper report.

OLD BUSINESS
Chuck Baker spoke with Charlie Philpot regarding a letter from the Fire Department waiving the twenty-foot requirement for fire lanes. Mr. Baker explained that the association is marking an eighteen-foot parking lane, noting that twenty feet was not feasible and would be impossible to enforce. Mr. Philpot gave a verbal waiver but refused to put it in writing.

The striping crew will provide a one-day notice prior to striping. Cul-de-sacs will be marked the same as all other areas.

The third fire hydrant was installed and testing will be scheduled for the near future.

Frequently asked questions and answers will be added to the website. The welcome information for new homeowners will also be added to the website.

Mr. Baker asked Mr. Churchill about the status with the water company. Mr. Churchill explained that the water company wants to investigate whether or not the land has any value. Mr. Churchill advised that it may be cheaper to pay the water company for the land versus going through litigation.

The board discussed insurance renewals. As of this date no quotes were received.. The Dishonesty bond renewal notice was received from the current carrier and is due June 17, 2003. Ms. Schlosser was directed to follow-up with insurance company and obtain renewal dates for all of the associations policies.

Mrs. McPherson asked if the board should set up a system in the even a homeowner was unable to get through the gate.

Joe Price motioned to put in a new code to distribute to homeowners and various delivery and contract personnel. Russ Derby seconded. Discussion: *2810 will be give to repairmen, delivery personnel and contractors. No further discussion. Motion carried unanimously.

Ms. Schlosser stated that Steve Jackson was contacted to perform the backflow test, but she has not received a bill and has not received confirmation that the work was performed.

The guard service over Memorial weekend was less than acceptable. Mr. DiNolfi requested the board advise him what the guards are to do and he will provide the service with written instructions to follow. Forth of July weekend guard service is to start Thursday at 6:00 p.m. and end Sunday at 6:00 a.m.

Ms. Schlosser was directed to mail copies of the by-laws to board members for approval at the July meeting.

The board discussed a letter received from Tom Hale. He has a large palm tree located within the association's easement and wants the association to pay for the upkeep. Mr. Hale requested the board reimburse him for the past two trimmings at $90.00 and to requested the association assume future liabilities.

Joe Price motioned to assume future liability for the palm tree, but to deny reimbursement for past expense. Russ Derby seconded. No further discussion. Motion carried unanimously.

Joe Price presented the board with a picture of a guardhouse similar to the associations and recommended using this model to remodel the associations "Guard Shack". Mr. DiNolfi was directed to obtain bids to have the guardhouse remodeled. Mr. Baker stated he will meet with Mr. DiNolfi after the meeting to go over the specifications.

Mr. Baker asked the board if it would support construction of a small facility for association business and storage. The majority of board members did not support this idea. Mr. Baker stated that if the board did not support this option rental of a small storage unit would be necessary.

Mr. DiNolfi was directed to review Mr. Braun's recommendations for signs; make his own recommendations and submit to the board for approval at the next regular meeting.

Mr. Kleine advised that latches were not installed on the gates due to the difficulty of getting if the gates were closed. Mr. DiNolfi was authorized to check into latches that can be opened from inside or outside of the gate.
Joe Price discussed street sweeping. Mr. Price will present the board with outside quotes for a second time for consideration.

Mr. Stroud asked about lot clean-ups. Mr. DiNolfi will prepare a list of remaining lots.

NEW BUSINESS
No new business.

OPEN DISCUSSION
None

ADJOURN
The Board adjourned the regular meeting at 7:50 p.m. and convened to executive session.

Rebecca A. Braska - Unapproved.
Submitted by Recording Secretary - Rebecca A. Braska

________________________________________________________
Approved by